Africa Outlook - issue 87

GRAND CEREALS | BASIL READ MINING

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

Issue 87

Living Smart

How Uber continues to leverage the power of technology to bring smarter solutions to several African markets, not only in the field of travel, but much further and deeper into the communities it serves Orange’s Patrick Roussel examines the numbers of unbanked across Africa and how mobile money could solve the problem

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WELCOME

Uber and Out

EDITORIAL Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com Editor: Dani Redd dani.redd@outlookpublishing.com Deputy Editor: Marcus Kääpä marcus.kappa@outlookpublishing.com

The US multibillion-dollar brand Uber is synonymous with smart living.

Editor: Sean Galea-Pace sean.galea-pace@outlookpublishing.com PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com

Whether it be getting from A to B at the touch of a button or ordering your favourite takeaway,

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

app-based transactions are becoming more

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

commonplace by the day.

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

Our cover story looks at how the company continues to make life easier for

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

people across the African continent. Frans Hiemstra is the firm’s General

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 Ryan Gray ryan.gray@outlookpublishing.com PROJECT MANAGERS David Knott david.knott@outlookpublishing.com Krisha Canlas krisha.canlas@outlookpublishing.com Lewis Bush lewis.bush@outlookpublishing.com Sam Love sam.love@outlookpublishing.com

ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com

Manager for Sub-Saharan Africa, and here he takes time out to speak to us about Uber’s advances in several markets, including South Africa, Nigeria, Ghana, Kenya, Tanzania, Uganda and the Ivory Coast.

“When we entered the market seven years ago, we knew we were going to be part of one of the world’s richest cultural bio-diversities, with a massive population of well over one billion, and saw this as one of our greatest opportunities,” he says.

This issue also focuses heavily on food, drink and agriculture thanks to exclusive interviews with the likes of South Africa family farming dynasty ZZ2, craft brewer Darling Brew and Nigeria’s Grand Cereals.

Elsewhere you will find an Expert Eye contribution from tech multinational Orange, a sustainability-themed exclusive from Omnia Group and education-themed topical focus in the form of a Q&A with Luis Lopez, CEO of Honoris United Universities.

Finally, it is with sadness that I announce this to be my final issue as Editor of Outlook Publishing. It has been a privilege to speak with business leaders across a tremendous array of industries, each with different and inspiring stories to tell. Likewise, I must thank the brilliant Outlook team

Finance Manager: Sophia Curran sophia.curran@outlookpublishing.com

who continue to produce quality storytelling content that showcases the

Office Manager: Daniel George daniel.george@outlookpublishing.com

best of African business and innovation – good news stories that, frankly,

CONTACT Africa Outlook East Wing, Ground Floor, 69-75 Thorpe Road, Norwich, Norfolk, NR1 1UA, United Kingdom.

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

the world needs right now given the hardships brought about during an extraordinary 2020.

After more than two thoroughly enjoyable years at the helm, the time has come to handover to our extremely capable editorial team, each of whom has contributed to this edition. Africa Outlook is certainly in safe hands.

Enjoy the read!

Tom Wadlow Editorial Director, Outlook Publishing Africa Outlook issue 87 | 3

CONTENTS

134

8

24 12

REGULARS

6 NEWS Around Africa in seven stories

8 EXPERT EYE Overcoming Barriers to Financial Inclusion in Developing Countries

BUSINESS INSIGHT

12 Sustainability

16

Adapting for the Future Demonstrating the business case for sustainable strategies

16 Tourism

Kenya: The Country with a Plan Exploring ideas to reboot the Kenyan economy

TOPICAL FOCUS

18

18 Education

Powering Pan-African Digital Education A Q&A with Luis Lopez, CEO of Honoris United Universities

4 | Africa Outlook issue 87

INDUSTRY SPOTLIGHT

24 South Africa’s Solar Photovoltaic Industry Exploring South Africa’s most promising renewable energy resource

EVENTS

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

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

138 THE FINAL WORD What, in your view, makes a successful business leader?

AFRICA OUTLOOK MAGAZINE

46 78 36 F E AT U R E S

34 SHOWCASING LEADING

78 Basil Read Mining

Tell us your story and we’ll tell the world

A compassionate mining company

COMPANIES

TECHNOLOGY

36 Uber Africa Living Smart

Leveraging technology to enable smarter living

FOOD & DRINK

46 Grand Cereals

Feeding West Africa Meeting the region’s nutrition needs

54 Darling Brew

Brewing a Better Future Championing sustainability in the South African beverage industry

Digging Deep

86 T3 Projects

Remaining Resolute Delivering turnkey mining and construction solutions

AGRICULTURE

92 ZZ2

Growing for the Future Spearheading innovation in the South African agriculture sector

SUPPLY CHAIN

98 Musika Development Initiatives

Responding to a Crisis

Agriculture for All

Committed to Zambia’s smallholders

62 Habibo Group

RETAIL

Reducing reliance on imports with quality homemade products

Big Business, Small Island

Producing for Madagascar

MINING

68 Allterrain Services Group (ATS)

Anyway, Anyhow, Anywhere Servicing Africa’s remote sites, from exploration camps to large scale mines

104

104 Solomons – St Helena Growing alongside the small island of St Helena

120 Pindulo VDM

A story of safety-first, sustainable development and diversification

ENERGY & UTILITIES

128 Virunga Power The Rural Energiser

Exploring innovation in African green energy generation and distribution

FINANCE

112 Ithala SOC Limited

Building Financial Freedom Generating economic prosperity across KwaZulu-Natal Africa Outlook issue 87 | 5

NEWS

20 October – 26 November 2020

Around Africa in seven stories…

Yo u r d i g i ta l g at e way t o e n e r gy i n A f r i c a H E A LT H C A R E

4G Capital partners with Turaco to offer Kenyan clients health insurance

UTILITIES

H o s t p u b l i c at i o n

DIGITAL AFRICAN UTILITY WEEK AND POWERGEN AFRICA HOLD ONLINE S i x w e e k s .EVENT F o u r e v e n t s . O n e p l at f o r m .

O N NOVEMBER 24-26, digital dialogues, fireside chats, w w w. c l a r i o n - e n e r gy. c o m / d i g i ta l- e n e r gy- f e s t i va l Digital African Utility Week technology innovations, networking and POWERGEN Africa will be and much more. delivering a fully immersive digital This event represents the organevent. Its main goal is to connect isation’s 20th anniversary – for two the entire power, energy and water decades it has led the conversation value chain – it will be welcoming on transforming Africa’s energy and over 10,000 attendees for three water economy through sharing indays of business and networking. novation practices and helping form The event will consist of energy strategic partnerships. industry insights, masterclasses, To participate, register here.

SPORTS

Billionaire Patrice Motsepe runs for leadership of African football SO UT H AFRICA N billionaire mining magnate Patrice Motsepe has 6 | Africa Outlook issue 87

been nominated as a candidate for the leadership of the Confederation of African Football. He is the third candidate to be nominated, alongside incumbent Ahmad Ahmad and Jacques Anouma, a former FIFA executive committee member.

Motsepe is the owner of South African team Mamelodi Sundowns

4 G C A P I TA L Group Ltd – a market leader in tech-driven financial inclusion – recently partnered with insurance tech innovator Turaco to provide its 104,000 Kenyan clients with affordable micro-health solutions.

Many of its clients work in the informal sector, where an unexpected financial burden could put them out of business – 42 percent of low income households in Africa experience a financial catastrophe caused by hospitalisation every five years.

However, according to the Kenyan Government’s statistics, 62 percent of Kenyans do not have health insurance.

Turaco will offer 4G Capital’s clients affordable policies (starting at just nine US dollars a year) to ease the burden of hospital admissions and death – claims will be received in mobile money wallets within 72 hours.

“We are delighted to partner with Turaco to bring this most urgent health insurance to our clients in their hour of greatest need. Informal market traders are the spark needed for national economic recovery. 4G Capital provides the fuel, and now with Turaco we can support the health and wellbeing of our incredible and inspiring clients,” said Wayne Hennessy-Barrett, CEO and Founder of 4G Capital.

and has made it a dominant domestic force. It won the African Champions League four years ago.

“His business acumen makes him a revolutionary choice to change the landscape of African football and make the game on the continent more profitable,” said Danny Jordaan, President of the South African Football Association.

ENTREPRENEURSHIP

TECHNOLOGY

Orange reveals winners of Africa and Middle East Social Entrepreneur Prize T EL E COMS GIANT Orange recently celebrated the 10th anniversary of the Orange Africa and Middle East Social Entrepreneur Prize (POESAM). Alongside the customary three prize winners and ‘Jury’s Favourite’ prize it added two new awards – the International Women’s Prize and the Special 10th Anniversary Prize.

The winners were announced at the Africa Tech Festival, which took place online between the ninth to 12th November. They were: For the International Grand Prix, the 3 winners were: 1st prize: Ahkili (Tunisia), an innovative psychological assistance telephone hotline covering the whole of North Africa

R E N E WA B L E E N E R G Y

African Trade Insurance Agency (ATI) supports $67 million solar plant in Malawi AT I IS supporting the Nkhotakota Solar Power Plant in Malawi, which is expected to add 37 MW of clean energy to the national capacity, providing electricity for 150,000 Malawian households.

AFRICAN DEVELOPMENT BANK TO SUPPORT RWANDA CODING ACADEMY

2nd prize: Teliman (Mali), the first Malian on-demand motorbike taxi service in Bamako 3rd prize: Weeglo (Liberia), a project offering an online learning solution specific to the Liberian education system For the International Women’s Prize, the winning project was Ahmini (Tunisia), a digital platform to facilitate access for rural women to the Tunisian welfare and healthcare system.

The prize-giving ceremony can be viewed online here.

It is doing so through its Regional Liquidity Support Facility (RSLF), designed to cover late payment risks of publicly owned power utilities. The RSLF was established in 2017 by ATI and the German Development Bank to tackle climate change and attract investment in ATI’s member countries by funding renewables.

“COVID-19 has laid bare the link between social infrastructure and economic development. Access to adequate electricity underpins both. This project demonstrates that there is still opportunity and demand for renewable energy projects in Africa. ATI is excited to be part of this potentially transformative project, particularly now, when it is so important to show the world that it is still possible to build sound renewable energy projects that can have lasting change,” said Benjamin Mugisha, ATI’s Chief Underwriting Officer.

TH E A F R I C A N Development Bank recently signed a grant agreement for $150,000 with the Ministry of ICT and Innovation in Rwanda to support the Rwanda Coding Academy.

Rwanda Coding Academy was set up as a proof-of-concept model school for developing ICT skills, cyber security and coding skills in high school students interested in pursuing careers in computer science.

Grant funds will be used to acquire equipment for an ultramodern innovation centre, teacher training and organisation of career oriented events.

“The Rwanda Coding Academy is part of our broader vision to grow a local pool of highly talented Pan-African workforce in science, technology and innovation,” said Paula Ingabire, Rwandan Minister for ICT and Innovation.

OIL & GAS

TOTAL MAKES SIGNIFICANT GAS DISCOVERY IN SOUTH AFRICA TH E F R E N C H oil company Total recently discovered a significant gas condensate discovery in the Outeniqua Basin, off the south coast of South Africa. It follows a discovery in an adjacent area in 2019.

The latest discovery was made in an area cover 19,000 square kilometres, with a water depth between 200 to 1,800 metres.

Total has a 45 percent interest in the stake: the remainder is shared with Qatar Petroleum (25 percent), CNR international (20 percent) and Main Street (10 percent).

Africa Outlook issue 87 | 7

EXPERT EYE

Overcoming Barriers to Financial Inclusion in Developing Countries Orange’s Patrick Roussel examines the challenges faced in reducing the number of unbanked across Africa, highlighting the power of mobile money as part of the answer Written by: Patrick Roussel, Executive VP, MEA Mobile Financial Services, Orange

V

ast areas of the developing world continue to struggle with financial inclusion.

According to the latest Global Findex report, there is somewhere in the region of 1.7 billion adults globally who are unbanked. Unsurprisingly, the vast majority of these people live in low-income economies. 67 percent of the population of developing countries worldwide do not have a bank account, this is compared to 95 percent in the developed world.

This problem is not new, and a lot has been done to correct this imbalance. However, with figures such as these, it is clear that more can, and needs to be done to provide people with the financial services they need for their own prosperity, in turn benefitting the broader economy.

Barriers to financial inclusion There are many reasons for an individual to be financially excluded.

However, there are a number of reasons which crop up time and again when the unbanked are surveyed, especially in the developing world.

The first and probably the most obvious comes down to affordability.

Bank accounts are either too expensive, or individuals simply do not have enough funds to warrant having a bank account. In most of the developing world, there is a 8 | Africa Outlook issue 87

strong correlation between low-paid, informal or seasonal workers and being unbanked.

Another reason frequently cited is that the financial infrastructure simply does not exist to support unbanked populations around the world. This can be a simple matter of distance – in large swathes of low-income countries, people live in rural or remote locations where the

“DUE TO THE GROWING AVAILABILITY OF AFFORDABLE DEVICES, GLOBALLY TWOTHIRDS OF UNBANKED ADULTS OWN A MOBILE PHONE, ALLOWING INSTANT ACCESS TO MOBILE PAYMENTS” nearest bank or financial institution is too far away. While in high-income countries we use credit or debit cards extensively, bringing convenience, their use in developing countries is far less ubiquitous.

Finally, having a less extensive and less mature financial infrastructure can lead to a heightened risk of crime, fraud and therefore distrust

of financial systems. As a result, borrowing in many African countries, to take one region, is done informally and outside of financial institutions.

In Africa, 83 percent of loans are concluded in this way, outside of the protection of regulation.

The impact of mobile money In recent years, mobile money has seen huge success in providing many of the most basic financial services to people who previously did not have access to them. Not only has the digitisation of payments helped to reduce the cost of distributing and receiving payments, it has also reduced associated crime and corruption by increasing transparency of transactions.

It is no surprise that mobile money has taken off in the ways that it has, especially in Africa.

Due to the growing availability of affordable devices, globally two-thirds of unbanked adults own a mobile phone, allowing instant access to mobile payments. Having a mobile device that can be used for simple financial transactions removes many of the frequently cited barriers that people face. The ability for people

on low incomes to make small digital transactions has integrated millions of people from disadvantaged populations into the banking system.

This increase in financial inclusion also allows these populations to take part in their country’s economic and societal development.

With our own Orange Money service, we are processing €1 billion of cash every week and we are among a number of others providing mobile money services in the region.

However, as impressive as the success of mobile money has been in Africa, there is more that can be done to promote financial inclusion. Whilst having a mobile money account is a clear first step into the formal financial system, until people have the ability to effectively save money, manage financial risk or take out suitable loans, then they are yet to benefit from everything that genuine financial inclusion has to offer.

“WE BELIEVE THAT MOBILE BANKING HAS A HIGHLY SIGNIFICANT ROLE TO PLAY IN AFRICA AND IT IS THE VERY ESSENCE OF OUR INTENTION TO PROVIDE EVERYONE WITH THE KEYS TO A RESPONSIBLE DIGITAL WORLD” Orange Bank Africa This is why at Orange we decided to expand our bank services to Africa beyond mobile money.

Orange Bank Africa takes the success of mobile money further by offering loans and savings services geared towards non-employee

customers, with seasonal and low income, or those that live in rural or remote areas as well as SMEs. Our bank will offer simple loans that most importantly are within everyone’s reach and meet a wide range of needs.

We decided to launch first in Cote d’Ivoire, a country where we already have a strong mobile money base and trusted brand. In Côte d’Ivoire, there are around eight million adults who are unbanked, and many of them are already in vulnerable positions. However, there are also over 5.2 million adults in the country who are unbanked but own a mobile device. Until we provide instant access to mobile financial services, designed specifically to suit these disadvantaged populations, then attempts to increase financial inclusion will simply remain stalled.

With plans to expand Orange Bank to Mali, Burkina Faso and Senegal, Orange Bank Africa aims to illustrate a new way to integrate a large part of the population who have traditionally been excluded from conventional banking.

Orange’s financial services strategy in West Africa is specifically designed to offer solutions that are accessible to the broadest possible range of people, regardless of their income, or their location.

We believe that mobile banking has a highly significant role to play in Africa and it is the very essence of our intention to provide everyone with the keys to a responsible digital world.

ABOUT THE EXPERT Patrick Roussel has served in a broad range of senior positions across the Orange organization, which he joined in 1994 when it was then France Telecom. He also worked briefly for Microsoft, taking charge of the Telecom and Media Division. Patrick is now Executive Vice President, MEA Mobile Financial Services at Orange.

Africa Outlook issue 87 | 9

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

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

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

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

LEADERSHIP FOCUS

Adapting Omnia’s Kavita Pema tells us about the achievable and realistic application of sustainability practices for businesses around the globe Writer: Marcus Kääpä The biggest danger is to separate sustainability and profitability as concepts.

When isolated, the two become competing factors of a business rather than complementary parts of a fully integrated process.”

Kavita Pema lives and breathes sustainability in her role as Group Executive for Safety, Sustainability and Risk at Omnia.

Based in South Africa, Omnia Group was founded in 1953 and currently supplies various companies with products and services across the globe. The company manufactures and supplies chemicals, specialised services, and solutions for the agriculture, mining, and chemicals application industries, 12 | Africa Outlook issue 87

as well as conducting research and development for said industries. Omnia’s ethos surrounds environmental preservation and business sustainability practices, and it promotes such an ethos through its service.

Pema has spent the majority of her career dedicated to the sustainability sector. Originally taking the medical route to train to become a doctor, she realised that her passion lay within the ecological sphere after switching to Earth Sciences. Her university studies included environmental management, geography, geology, and advanced earth science. These were the academic tools that gave her an insight into what needed to be achieved to impact the environment in a positive way.

Pema ended up working as a Water Pollution Control Officer for the South African Department of Water Affairs. This position dealt with the states of bodies of water and looking for cooperative solutions alongside industries to address the issues of negative environmental industry impact.

“It felt so rewarding. I built on from there and my expertise grew into a larger environmental focus,” she says.

Omnia was her chance to really make a difference. She had, prior to this point, been working for a competing company as its Group Environment Specialist. Her work saw progress that would lead the group towards targets set for Environmental, Safety and Governance (ESG) performance, and she had no planned intention of leaving.

However, she joined Omnia after realising how much of an impact she could have.

“I have a very strong background in the environmental space and the challenge of building the safety and risk portfolio was very attractive to me,” Pema recalls. “After having a conversation with the management at Omnia, I realised that it would be an extremely good fit.

“The company was open to new ideas and were keen to really build their safety, health, environment, risk and quality profile.”

Pema’s career to date has spanned 25 years, during which she has been part of an advisory team representing South Africa at the United Nations Commission on Sustainable Development.

SUSTAINABILITY

“It was the most amazing and aweinspiring experience to sit alongside leaders from different countries and contribute to the development of international policy,” she adds.

On top of this, Pema has chaired the Responsible Care Standing Committee of the Chemical and Allied Industries’ Association. This role saw her as a representative of the board reviewing management practice, strategy development, and training initiatives for the Responsible Care programme (that regards the sustainability of the sector) for four years.

Now, sitting as Omnia’s Group Executive for Safety, Sustainability and Risk, Pema focusses her efforts on industry scale environmental and sustainability practices.

Pema’s work surrounds incorporating environmentally supporting business practices into companies to intertwine the aspects of profit, practicality, and sustainability.

On a broad scale, it is still unrealised that environmentally friendly methods of business are easily applicable and can work in conjunction with the aspects of business that achieve results.

“In my opinion, sustainability and profitability are so closely tied that they cannot succeed without each other and need to be in complete alignment,” she says. “The general perception is that sustainability is a cost, which means it contradicts profitability agendas.

“In the long-run, sustainability actually provides a basis for sound business management which, in turn, saves the business money, builds its credibility, and gives businesses intangible mileage in the form of support and goodwill from its stakeholders. It does not need to be a touchy-feely green thing; it can definitely be a business enabler.”

However, it is now apparent more than ever that companies which do not take sustainability seriously are in danger of suffering a significant loss in reputation and credibility. Across major industries such as mining and construction there are huge issues surrounding their effects on the environment. To this end, Omnia has answered the call to further the sustainability practices of multiple industries such as these.

“With the direction in which the world is moving, sustainability is the top of all agendas across all stakeholders, particularly investors and the new generation,” Pema says.

“Businesses are being challenged to create value and contribute to a better world for future generations.

“If we want to make sure we grow as a business and continue to attract the right talent in the future, sustainability is an imperative.

“BUSINESSES NEED TO SHOW THAT THEY ARE TAKING THEIR MORAL RESPONSIBILITY TO FUTURE GENERATIONS SERIOUSLY AND THAT THEY ARE ADDRESSING THE IMPACT OF THEIR CURRENT ACTIVITIES” – KAVITA PEMA

THE THREE DIVISIONS OF OMNIA AGRICULTURE: Omnia’s Agriculture division, Omnia Nutriology, is the market leader in southern Africa and comprises Omnia Fertilizer and Omnia Specialities.

The division produces granular, liquid and speciality fertilisers for a broad customer base of farmers, cooperatives, and wholesalers throughout southern and East Africa, Australia, New Zealand and Brazil.

CHEMICALS: Protea Chemicals is a well-established manufacturer and distributor of speciality, functional and effect chemicals and polymers, with a major presence in every sector of the broader chemical distribution market.

Operating throughout South Africa and widely across the African continent, the company represents a large number of domestic and international principals, counting among its suppliers many of the world’s leading chemical producers.

MINING: BME (another divisions of Omnia) is the leading supplier of explosives to the South African open pit mining and quarrying industry. It offers ground-breaking solutions to all its customers and has operations in South Africa, Namibia, Botswana, Zimbabwe, Mali, Swaziland, Sierra Leone, Mauritania, Malawi, Senegal, and Zambia.

It also trades into Mozambique and the DRC.

Africa Outlook issue 87 | 13

LEADERSHIP FOCUS Businesses need to show that they are taking their moral responsibility to future generations seriously and that they are addressing the impact of their current activities.”

The recent pandemic has ground many industries to a halt – however, COVID-19’s effects on human activity and behaviour has helped bring about

DOS AND DON’TS According to Pema, one of the biggest problems regarding the implementation of sustainability practices is implementing such a practice in isolation.

Sustainability must be a collaborative integrated process.

This is down to the languages of both sustainability and business not always coinciding with one another. Open communication and creating awareness are key.

Incorporating sustainability practices into all areas of the business is another aspect of this company-wide communication.

“Right from the start, you need to make sure that you have high-level management, executive management and board commitment, support and input to the process,” Pema adds.

“A dual process of top-down and bottom-up consolidation is required for successful implementation.”

14 | Africa Outlook issue 87

the realisation of the instantaneous benefit to the environment. In response to this, people shifted in their methods of work. Simple differences such as the lack of need for an office environment, due to the large majority of workers being able to work digitally and from their own homes, saw a large decline in commuters and therefore vehicle emissions. This lack of need for a set business HQ allowed companies to realise that they could save money by reducing office numbers, size or space (or getting rid of them altogether).

For Pema, this was one of the many examples of human workplace and business adaptation that proved everything she had worked towards in her career.

“COVID-19 brought about the realisation that by doing something differently,” she says. “We will see a much more beneficial impact on the state of our planet and our businesses.

This drove conversations around how we can minimise our impact while continuing to grow businesses and keep the economy thriving.

“The sustainability discussion has changed direction for the better with enhanced business integration. Some of the lessons learned are that we can

“COVID-19 BROUGHT ABOUT THE REALISATION THAT

BY DOING SOMETHING DIFFERENTLY, WE WILL SEE A MUCH MORE BENEFICIAL IMPACT ON THE STATE OF OUR PLANET AND OUR BUSINESSES” leverage technology and adapt our practices to reduce our environmental footprint. Remote working and less travelling are a part of this discussion.”

Regarding this adaptation of businesses, ESG is growing in its application within companies in the present day. Proactivity of practices such as these will lead to them being embedded within business strategy as a norm.

“These sound management strategies need to be more intuitive rather than reactive to ensure the resilience of businesses which are focused on being future ready and leaving behind a better world,” Pema concludes.

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COVID-19

KENYA:

With a huge tourism industry, Kenya was one of the worst hit African nations by COVID-19, but plans are underway that aim to reinvigorate the economy Writen by: Marcus Kääpä

A

ccording to the World Economic Forum, Kenya and Gambia rely on tourism for nine and 20 percent of their respective GDPs. COVID-19 has caused the complete halt of various industries across the globe. None, however, have been as negatively affected by the spread of the virus than the travel and tourism industry. For many African countries this has posed a major problem.

Until recently, travel and tourism has been a large and productive industry for the whole African continent. Before coronavirus, Africa offered a limitless variety of holidaying and exploration experiences for the seasonal tourist, from urban city visits and street markets, to tropical coasts, jungle hiking adventures, and exotic safari resorts.

16 | Africa Outlook issue 87

Growing from the branches of this industry are smaller businesses that thrive off the tourism season. The bulk of business revenue, and consequently that of the individual worker’s income, is gained from tourists who are willing to spend their money abroad on African wares and services sold by such businesses.

But with the upset caused by the pandemic still hanging over the industry, profit has fallen drastically to the point at which many businesses can no longer keep their workforce in employment.

According to the World Travel and Tourism Council, tourism may lose 120 million jobs worldwide due to the pandemic, and the number of tourists travelling abroad is estimated to cut in half during 2020. This will lead to more

than $3 trillion being stripped from global tourism GDP. For Kenya, the nation and its government have been forced to go to huge lengths to restabilise its society and industries in the wake of the pandemic.

The Kenya National Bureau of Statistics found that unemployment had doubled from 5.2 percent (March) to 10.4 percent (September) in 2020.

THE RESPONSE According to World Economic Forum figures, tourism revenue provides a living to around 10 percent of Kenyans and nearly a fifth of Gambians, while acting as an important source of foreign exchange. Tourism makes up the second largest industry for both Kenya and Gambia (coming after the

TOURISM agriculture industry that dominates general African GDP).

However, these countries (as well as the rest of the continent) have risen to the challenges.

In Gambia, tour guides who have been hit hard by the pandemic are being redeployed as coronavirus guides for their local communities.

They inform urban and rural communities, raising awareness regarding hygiene methods and prevention steps (such as social distancing) to lessen the spread of COVID-19.

As for Kenya, its government has provided financial aid to those members of the industry most affected. In the Seventh Presidential Address on the Coronavirus Pandemic (23 May 2020), President Kenyatta highlighted the government’s attempts.

One example of this is through the economic stimulus programme that has provided food relief and direct cash transfers to families.

The cash transfers have sent 250 million shillings (around $2.3 million) to the total amount of targeted families each week, money that has kickstarted local economies and prevented the reduction of spending, allowing local economic systems to pick back up.

On top of this, the Kenyan government is currently engaging the younger Kenyan generations with the National Hygiene Programme – Kazi Mtaani Initiative. Through this programme, 10 billion shillings (around $92 million) will be invested to restore standards of public hygiene, urban civil works, and alternative undertakings.

The aim of the government is to increase the engagement of 26,000 of the younger generations to 200,000 across Kenya.

In addition to these plans, the president declared an Eight-Point Economic Stimulus Programme. This will see a total of around 53.7 billion Kenyan shillings (around $495 million)

CASE STUDY: KAZURI BEADS The business was founded in 1975, and before coronavirus arrived it exported products (predominantly handmade jewellery) globally as well as directly into the hands of seasonal tourists.

More than a business, Kazuri Beads is a social enterprise that employed 235 vulnerable, single mothers in order to provide them a living wage of $200 a month, as well as free medical care.

The wage is a necessity for these employees, as many of them use it to pay for food for their families, education for their children, and even bank loans to help them realise further potential by taking entrepreneurial routes.

As a result of the pandemic and its effects on the tourism industry, 135 of these women lost their jobs. Many of them are still having to pay for their loans, in addition to the accumulation of interest, without currently earning a wage, not to mention paying for the basic requirements of food, education, rent, and utilities.

aimed towards helping families and companies as the country seeks its way through the coronavirus problem. This programme is aimed to build Kenya up and continue growth through the difficulties posed by the pandemic.

EIGHT POINT ECONOMIC STIMULUS PROGRAMME Tens of billions of Kenyan shillings will be poured into each of the following eight categories of industry required to get the country back on track: Local labour: to hire local labour to fix and maintain access roads and footbridges.

Education: to hire 10,000 teachers and 1,000 ICT interns to help with the support of digital learning.

SMEs: VAT refunds for small and medium scale enterprises.

Healthcare: to expand bed capacity in hospitals, as well as hiring 5,000 new healthcare workers with a diploma/certificate level qualification for one year.

Small scale farmers: to assist producers through establishing connections to international markets.

Tourism finance: soft loans for hotels and related establishments to support the industry.

Water management: flood control measures, as well as the rehabilitation of wells and waterworks for arid regions.

‘Buy Kenya Build Kenya’: reinforce Kenyan industry through purchasing locally manufactured vehicles.

Kenya, like every impacted country, still has a way to go before economic recovery takes hold. However, if these plans show anything, it is that the country is taking proactive steps towards overcoming the consequences of the pandemic and revive the livelihood of the Kenyan people and its industries.

Africa Outlook issue 87 | 17

TOPICAL FOCUS

POWERING PAN-AFRICAN DIGITAL EDUCATION A

frican education sees the highest rate of exclusion than any other area of the world. Over one in every five children (ages six to 11) are out of school, and one third of young learners between the ages of 12 and 14 are not involved in academic learning.

There are several factors that contribute to this level of exclusion. A basic example is the lower income on average per family in comparison to other areas of the world – a factor that naturally pushes forward a career and working attitude rather than that of continued education.

On the contrary, African higher education (in countries such as 18 | Africa Outlook issue 87

Luis Lopez, CEO of Honoris United Universities, talks about new ventures and the challenges brought about by the COVID-19 pandemic Written by: Marcus Kääpä

Ethiopia for example) has been expanding.

Honoris United Universities is the first private pan-African higher education network and has been preparing and educating the next generation of African leaders and professionals since 2017.

Alongside various institutions, such as Red & Yellow Creative School of Business – that has been an integral part of the creativity and media sector in South Africa for 25 years – Honoris provides aspiring students with the teaching and opportunities to reach the summit of their aims and achievements.

Honoris’s CEO, Luis Lopez, has had

EDUCATION

the privilege of working for the network since its inception, and answers our questions regarding the industry and the network’s part within it.

Africa Outlook (AFO): Tell us about your career and how you became interested in the education sector.

Luis Lopez (LL): Before Honoris, I partnered with a mentor to attempt a start-up agri-business. Prior to this entrepreneurial window, I worked in leadership roles at Laureate International Universities, building the network over 13 years across the globe.

That experience as an entrepreneur, and the period building an international education organisation, led me to Honoris.

It was during my time at Laureate that I accumulated a broad exposure to post-secondary education, especially in growth markets. I was

particularly drawn to Honoris because of its pioneering pan-African vision and the tangible commitment its founders displayed to preparing and educating the next generation for future challenges and opportunities at home, regionally, and on the global stage.

I was further motivated by the potential to establish the organisation’s core values of collaborative intelligence, agility, and mobility. The idea being that these values, together with the underlying formal and “real world” learning, lead to a cross-border, multicultural academic and professional experience, shared across Honoris, and this prepares our students, graduates, and their communities.

I am a strong believer in the transformative nature of learning and education, from the level of the

individual to helping build the nation.

Having had the opportunity to live education in various settings, from my own path to the professional stage, I continue to be optimistic about its merits and future expressions, particularly with the advent of advanced technologies.

AFO: What is your view on the provision of higher education in Africa currently?

LL: Higher Education is moving through a very exciting, rapidly evolving, and challenging period. The continent faces the well documented youth demographic boom, which is as much of a challenge as it is an opportunity.

The answer to this is to enable enterprise through the nurturing of an innovation ecosystem. Simply put, this requires the development of a population that has the skills needed Africa Outlook issue 87 | 19

TOPICAL FOCUS to leave education, set up a business, develop new products or services, compete globally, adapt to sudden changes and survive in the digital economy.

These factors make working in education exciting, but they are also a matter of urgency, which is why Honoris is so committed to widening access to as many young people as possible.

We’re doing this through the provision of affordable, on-campus and remote learning higher education opportunities that will equip graduates with the 21st century workplace skills they will need when they enter the new world of work as employee, entrepreneurs, freelancers, or otherwise.

Red & Yellow Creative School of Business

20 | Africa Outlook issue 87

“RED & YELLOW BRINGS PARTICULAR EXPERTISE IN CREATIVE AND DESIGN THINKING, CREATIVE PRODUCTION, MARKETING, ADVERTISING AND COMMUNICATIONS, MANAGEMENT AND LEADERSHIP – AS WELL AS HUMAN SKILLS AND BEHAVIOURAL SCIENCE” AFO: How has COVID-19 affected the industry, and how critical is virtual learning in light of the pandemic?

LL: COVID-19 has catapulted a variety of matters into our sphere. One of the most important items is the characterization of connectivity (internet, digital access) as an essential good.

We’re living in a moment in history where a huge percentage of schooling is taking place virtually. For those who

do not have access to reliable and affordable data and connections, this is an impossibly difficult period of educational exclusion.

There is a temporary challenge of proximity, yet face-to-face, real world collaboration is critically important in the development of a curious, solutions-oriented mobile mindset together with strong emotional skills.

EDUCATION

Despite this lack of face-toface learning, we are seeing other developments such as the emergence of virtual hubs, which have begun to evolve as youth are forced by circumstance to come together digitally. This goes hand in hand with the critical skills needed to compete in today’s job market.

AFO: What will Red & Yellow Creative School of Business bring to your network? Why are you excited to have them on board?

LL: The addition of Red & Yellow to the Honoris network further reaffirms Honoris’s position as the preeminent pan-African private higher education network focused on educating the next generation.

Red & Yellow brings particular expertise in Creative and Design Thinking, Creative Production, Marketing, Advertising and Communications, Management and Leadership – as well as Human Skills and Behavioural Science – and it has trained business leaders who have achieved remarkable career success, across the continent and internationally.

It’s exciting to have them join the network, particularly because Red & Yellow’s pedagogy encourages the ability to think differently, challenge accepted wisdoms, and apply creative

problem solving to today’s complex work environment – a timely and relevant academic model for the most in demand skills of today and tomorrow.

AFO: Looking towards the future, what are the priorities for Honoris?

LL: We will continue to focus on further enhancing the employability of our students by equipping them with the most in-demand software and digital skills required to thrive and be competitive in the modern world of work.

Our most recent development in this area is a unique program called the 21st Century Skills Certificate, which requires the completion of a fully

online, 100 to 120-hour programme that is mandatory for all students across the network.

It leverages our unique collaborative intelligence model and digital skills training, to impart the eight most demanded skills by employers for the future of work: behavioural intelligence, critical and creative thinking, problem solving, communication, collaboration, digital literacy, data analysis, and entrepreneurship.

This certificate will be issued via blockchain. The blockchain technology ensures that students have a life-long shareable access to their verified certificates and microcredentials for employers as well as for professional networks.

These employability, digital, and skill-based initiatives reflect Honoris’ commitment to embracing the digital transformation across the student journey, and our strategy to reshape and rethink education to continually improve learning outcomes across the continent.

As for Honoris itself, we are also continuing to explore opportunities to expand the network in Africa as part of our mission to provide Education for Impact across the continent. On top of our established presences in Morocco and Tunisia, we are planning to expand into Egypt, Kenya, and Ivory Coast in the future.

Africa Outlook issue 87 | 21

GRAND CEREALS | BASIL READ MINING

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MESINIAGA BERHAD

A mainstay in Malaysia’s technological story

SCHNEIDER ELECTRIC Futureproofing businesses postCOVID-19

SAINT JAMES HOSPITAL GROUP Innovation and adaption through COVID-19

Living Smart

STANDING SIDE-BY-SIDE WITH SLOVENIA

Redpath Australia continues to secure work despite the onset of COVID-19, building on its global standing and reputation as a go-to contractor

How Uber continues to leverage the power of technology to bring smarter solutions to several African markets, not only in the field of travel, but much further and deeper into the communities it serves Orange’s Patrick Roussel examines the numbers of unbanked across Africa and how mobile money could solve the problem

Danny Wilson, General Manager of Onsport, on the development of a new online sports arena in Australia

Richard Browning, the man inside the ‘Iron Man’ suit, tells us the story behind monetising the idea into Gravity Industries

across Africa and how mobile money could solve the problem Orange’s Patrick Roussel examines the numbers of unbanked

development of a new online sports arena in Australia Danny Wilson, General Manager of Onsport, on the

the story behind monetising the idea into Gravity Industries Richard Browning, the man inside the ‘Iron Man’ suit, tells us

the communities it serves travel, but much further and deeper into African markets, not only in the field of technology to bring smarter solutions to several How Uber continues to leverage the power of

Smart Living

standing and reputation as a go-to contractor despite the onset of COVID-19, building on its global Redpath Australia continues to secure work

SLOVENIA WITH SIDE-BY-SIDE STANDING

SAVIOLA HOLDING & COMPOSAD

A true pioneer of the circular economy

circular economy A true pioneer of the

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

COMPOSAD HOLDING & SAVIOLA

through COVID-19 Innovation and adaption

HOSPITAL GROUP SAINT JAMES

COVID-19 businesses postFutureproofing

ELECTRIC SCHNEIDER

technological story A mainstay in Malaysia’s

BERHAD MESINIAGA

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Issue 87

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Issue 38

Africa Outlook, APAC Outlook, EME Outlook and North America Outlook are digital and print publications aimed at boardroom and hands-on decision-makers, reaching an audience of more than 800,000 people around the world; spanning the full range of industrial sectors.

GRAND CEREALS | BASIL READ MINING

With original and exclusive content compiled by our experienced editorial team, we look to promote the latest in engaging news, industry trends and success stories from across the globe.

Your company can join the leading industry heavyweights enjoying the free exposure we provide across both digital and print platforms with a free marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to help you grow your business.

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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.

South Africa’s Solar Photovoltaic Industry (SAPVIA)

INDUSTRY SPOTLIGHT

SOUTH AFRICA’S

SOLAR PHOTOVOLTAIC INDUSTRY

In a country with 2,500 hours of sunlight a year, solar power offers the potential to help South Africa overcome its current energy crisis Writer: Dani Redd | Project Manager: Krisha Kanlas

S

outh Africa is currently undergoing an energy crisis. The national supplier, Eskom, is heavily reliant on coal-fired plants, which are unreliable and often break down. Whenever they do so – or are taken offline for maintenance – the sharp drop in supply results in widespread and unprecedented blackouts, lasting up to four hours at a time. Not only is this inconvenient for householders, it is disastrous for businesses and subsequently the economy.

The country is therefore seeking to make its energy supply more reliable and cost-effective.

Renewable energy is increasingly touted as an alternative, especially solar energy, which South

24 | Africa Outlook issue 87

Africa boasts an abundance of. In fact, according to Daniel Schroth, Acting Director for Renewable Energy at the African Development Bank, Africa is the world’s most ‘solar rich’ continent.

South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, recently announced that Eskom will be tendering 6.8 GW of renewable energy – predominantly wind and solar – from independent power producers. This will be connected to the grid to help meet escalating demand, and become more sustainable.

It is also indicative of the fact that solar is currently being explored as a genuinely viable solution to the

Total generation: 2 percent (2018)

make their electricity supply more secure.

There are also plenty of NGOs who have devoted themselves to providing solar solutions to South Africa’s rural population, many of whom lack access to the grid. Offgrid solar PV solutions can be used to charge mobile phones and lights, allowing small businesses greater connectivity and children a chance to complete homework in the evenings – in short, it has a valuable role to play in socio-economic upliftment.

Even industries not normally associated with sustainability are seeking to transition towards solar.

The Marula Platinum Mine in South Africa recently tendered for a 10 MW solar plant, claiming that Eskom’s unreliable electricity supply has affected its levels of production.

Both private companies and scientists within the country are also working on how to use solar in a wide array of different applications, especially in the agricultural sector.

Researchers from the University of KwaZulu-Natal and the Agricultural Research Council have been working on a solar powered air-cooling crop storage system. They tested the system in September with cold storage of tomatoes over a 28 day period – it is hoped the technology can be used for crop storage in remote parts of Sun-Saharan Africa.

Total production: 2,183 GWh (2018)

Industry challenges

FACTS & FIGURES SOUTH AFRICA’S SOLAR PV INDUSTRY Capacity of total energy: 6 percent (2019)

Uses: Water pumps, cooking stove technology, powering buildings, agriculture Hours of sunshine p.a in South Africa: 2,500

energy crisis. Solar is set to play a key part in the government’s Integrated Resource Plan (IRP), a roadmap detailing South Africa’s decarbonisation and its energy mix by 2030. It hopes that by then solar PV will represent 10.5 percent of energy capacity, representative of 8.3 GW.

Different solar applications in South Africa South Africa is one of the countries pioneering solar power on the continent. There are many private renewables companies within the country, which are able to provide businesses with solar PV solutions to

It is obvious that Solar PV is an area of vast potential.

However, the industry in South Africa is not without its challenges. Many stakeholders believe that Eskom’s 2022 energy tender doesn’t solve the energy crisis occurring in the country now.

“The real way to solve the current load shedding is to focus on the regulatory issues, to address the concerns around generation licences. [Rules should] allow potential producers to sell back into the grid, including small-scale solar projects and micro grids.

These solutions can be deployed quickly, and there is a lot of capital ready to mobilise to do that,” says Lido Fontana, a lawyer at law firm Covington & Burling in Johannesburg.

Many people believe that the government still has vested interests in coal, which will prevent solar PV being used to its fullest potential. However, there is increasing pressure from all areas for economies and governments to adopt clean energies in order to decarbonise.

I N TIRNOTDR U OC DTUICOTNI O N

SOUTH AFRICAN PHOTOVOLTAIC INDUSTRY ASSOCIATION (SAPVIA)

Africa Outlook issue 87 | 25

THE SCHLETTER GROUP The Schletter Group is one of the world’s leading producers of solar mounting systems, manufacturing aluminium and steel systems to exacting standards, and continually striving to perfect their design for safety and ease of use. Our sophisticated solutions deliver supreme quality and durability – wherever the sun shines.

Despite the Group’s transition from a small family business to a truly global enterprise, it has never wavered in its commitment to reliability and innovation: only the finest quality materials are sourced for manufacture, and Schletter’s insistence on product strength, durability, and absolute protection against corrosion, ensure that its systems can withstand the toughest weather conditions, from hurricane-speed wind loads, to tremors and earthquakes, or corrosive coastal climates.

Schletter prides itself on the calibre of its employees, whom it sees as the foundation to its success: engineers, metalworkers, service- and sales professionals are recruited from around the world, and combine their skills, local knowledge and diverse international experience to generate the unique synergy that sets Schletter apart from its competitors.

OPEN AREA SYSTEMS When Schletter designs its mounting systems, it doesn’t just focus on sunshine: it considers storms, heavy rainfall, snow loads, wind loads, and earthquakes, which are, after all, the extreme stresses that a PV system must endure during its lifetime. The result is a relentless focus on quality, from development through to the finished product. And it doesn’t stop there: this same commitment to quality is applied to large-scale ground mount projects, where the group will plan, calculate, and install turnkey photovoltaic systems – on a worldwide scale.

ROOFTOP SYSTEMS Schletter’s focus is not only on quality and durability: we listen to our customers, especially those who install our products, and make sure that we adapt what we know to what they want.

As a result, our products are tailor-made to fit any roof type or pitch, and more importantly, to make installation as safe and easy as possible, with the consequent saving on labour costs and returns.

There are countless varieties of pitched roofs, depending on shape, pitch and roofing material, making the installation of a solar system an individual challenge; with Schletter’s extensive product range and the modular structure of its systems, solar power plants can be installed on practically every pitched roof using any PV module currently on the market. And this adaptability applies equally to Schletter’s flat roof systems, which are especially quick and easy to mount on the appropriate structure: our engineers calculate the best design for your roof, taking into account the applicable building regulations and climatic conditions, to ensure that loads are optimally spread over the supporting structures without exceeding the reserve load capacity, while the number of roof penetrations is minimised for fastened systems through intelligent design and planning, ensuring that your roof remains permanently leak proof.

TRACKER SYSTEM The Schletter Tracking System combines the advantages of the highest ground cover ratio (GCR) on the market with our unique and patented design principle of mechanical selflocking - at any post, in any position. This gives the system the stability of a fixed tilt system and makes it resistant to aeroelastic phenomena, such as the galloping effect.

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Mounting a photovoltaic system requires more than a mere metal clamp. It needs a plan that has been thoroughly thought through and adapted to suit actual circumstances. Starting with initial soil or structural analysis and ending with tightening the very last screw, we accompany our customers through the entire process. With our uncompromising standards, we ensure that our mounting solutions realise their full potential. This care and holistic approach are an integral part of our company’s DNA, and as applicable in South Africa as in any other country.

SCHLETTER SOLAR (SOUTH AFRICA) Schletter Solar in South Africa has been through a fascinating learning curve since its incorporation in 2011. Starting life as a full-blown EPC, the company was involved in the successful development of several large solar farms, but as solar incentives were withdrawn, locally and internationally, and Eskom’s woes began, we realised that we needed to become leaner and more focused on product sales than on installations.

The upshot of this was the creation of a small team of dedicated employees, operating out of the Cape Town Head office, with a warehouse in Midrand, Johannesburg. Under the direction of John Proudfoot, a CA (SA) with nearly 30 years of experience, seasoned professionals, Dean Lewis and Adriaan Rootman, are on hand to provide clients with expert guidance in rooftop and ground

mount projects, respectively. Dean has been with the company almost since inception, and Adriaan brings over eleven years of hard-earned experience in both solar solutions and operational savvy; they are ably assisted from Johannesburg by Angelique Newman and Owen Bondi.

Manie Jacobs manages the finance department, with administrative and sales help from Portia Henkeman, who is also the voice of the sales enquiry counter. Kate Mosotho, our depot manager, and her assistant, Celiwe Mthembu, do a grand job of managing the warehouse, with very able assistance from our warehouse operatives, Oom Peet Julies and KB Mosenye.

For expert advice and superb quality products, please contact us in Cape Town (021 418 3187) or Midrand (010 595 1185), or mail us at info.za@schletter-group.com.

SCHLETTER SOLAR (SOUTH AFRICA) (PTY) LTD Unit F4, Pinelands Business ParkNew Mill Rd, Pinelands, Cape Town 7430 Unit 3, Stanford Business Park 800 16th Road, Randjespark, Johannesburg 1685 Africa Outlook issue 87 | 27

INDUSTRY SPOTLIGHT

Profile: South African Photovoltaic Industry Association (SAPVIA)

A S S O C I AT I O N

T

he South African Photovoltaic Industry (SAPVIA) was formed to represent the collective voice of the Solar PV industry in South Africa. Its vision is to ensure that solar PV becomes the electricity generation technology of choice in both South Africa and Sub-Saharan Africa, in support of the country’s socio-economic development targets. Its mission is to mobilise support for the sustainable growth of solar PV in South Africa and beyond, while staying true to its values of consistency, cohesion and collaboration.

SAPVIA’s mandate is to represent the PV industry in government on a regional and international level, and advise key decision-makers on the best policies to develop a sustainable PV market. It promotes a higher penetration of the technology by mobilising and supporting the sector, organising conferences and facilitating networking.

SAPVIA currently has over 170 members, operating across the entire value chain. They include PV manufacturers, renewable energy solutions providers, weatherproofing cable equipment providers and financers. Members are encouraged to network and form strategic partnerships at networking events. This year, during the coronavirus, SAPVIA has helped facilitate this through arranging digital networking events and virtual conferences.

Helping Aspiring Developers As well as working with established organisations, SAPVIA is also keen to expand the field and attract aspiring solar developers, making the sector more inclusive. It recently partnered with SAWEA (South 28 | Africa Outlook issue 87

SEVEN REASONS TO BECOME A MEMBER OF SAPVIA

1. Access to key up-to-date information 2. Networking opportunities 3. Invitations to SAPVIA workshops 4. Benefit from the off-spin of SAPVIA’s PR campaigns 5. Access to the Global Solar Council 6. Improve profile and visibility in the industry 7. Opportunity to influence policy

African Wind Energy Association), BEPA (Black Energy Professionals Association), IPPO and Reef SA to deliver a seven-part webinar series addressing key areas that aspiring developers need to know about.

The webinars – sponsored by Standard Bank – focussed in on topics such as ‘Bankability to Financial Close’, ‘Solar Energy Financing’ and ‘How high-powered modules enhance your solar investment’. The events involve speakers who are key players in the field, and are available to view after the fact, ensuring maximum participation.

INDUSTRY SPOTLIGHT

SAPVIA’S WORKING GROUPS SAPVIA has four working groups to help drive different focus areas within the solar PV value chain: Embedded Generation Subcommittee (EGS): Established to drive market access and the creation of a viable and sustainable embedded PV market in South Africa, through working with relevant stakeholders including government, local municipalities, Eskom and NERSA.

A S S O C I AT I O N

Manufacturer’s Subcommittee (MS): Set up to engage with relevant stakeholders (such as the IPP Office) on SAPVIA’s behalf around specific issues relation to development of local PV value chains.

It also aims to contribute to meaningful positioning of local content relating to government procurement programmes.

Grid Access Subcommittee (GAS): Tasked with engaging with stakeholders such as Eskom and Nersa, and local municipalities, to promote viable and sustainable grid access for PV plants. It has a specific focus on the large-scale market segment and mid-scale projects in the 5-50MW range.

Socio-Economic Development – Enterprise Development Subcommittee (SED-ED SC): Established to provide a platform to help coordinate members’ socioeconomic development initiatives.

It helps monitor, evaluate and report on SED projects, establishes and administers community trust funding and sets out industry best practices. It also ensures success stories are communicated to relevant audiences.

The PV GreenCard aims to improve the safety and quality of installations

in partnership with the German Solar Association (BSW-Solar) and the German International Corporation (GIZ).

The PV GreenCard aims to improve the safety and quality of installations by providing a comprehensive documentation of solar PV systems, which includes details of the installation such as what sort of PV modules and PV inverters were used, as well a checklist of all of the necessary installation steps that have been safely completed. It is presented to clients by the installer once installation has been completed, and can be used by the installer to show compliance with relevant standards. This will uplift the industry in line with global best practice and promote investor confidence.

The PV GreenCard Programme also focusses on education, training and skills development. This helps improve installer capacity and confidence, and thereby improve the industry.

Ensuring safe solar Solar PV in South Africa is in the process of transitioning from the utility-scale market into the residential, commercial and industrial (RCI) market segments. SAPVIA is supporting the development of mechanisms ensuring a responsible and sustainable transition into these markets. One such initiative is the PV GreenCard, which SAPVIA is developing 30 | Africa Outlook issue 87

Tel: +27 (0) 11 553 7264 www.sapvia.co.za

SOUTH AFRICAN PHOTOVOLTAIC INDUSTRY ASSOCIATION (SAPVIA)

Beyond Compliance, to Economic Change Our service offerings into the Sustainable Infrastructure space: • • • •

Economic Development Projects Reports and Monitoring Community Trusts Implementation and Management & Administration Economic Development Systems Development and Training Strategic Corporate Advisory

Advised Approx.

Advised Bid Submission of

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50%

63

50%

of REIPPPP Window 4 Projects

Projects Into the REIPPPP

of the REIPPPP Market Through Our Service Offerings

• 9 years in operation • Successful advised into all rounds of the South African Renewable Energy Independent Power Producers Procurement Programme (“REIPPPP”) • Currently working on a portfolio of projects to be submitted into the South African Risk Mitigation Independent Power Producers Procurement Programme (“RMIPPPP”)

• Have worked with global leaders in the development of renewable energy projects, supply of key technology components and infrastructure funding.

• Our team is comprised of a dedicated, vibrant and dynamic combination of economists, lawyers, community development practitioners, data scientists, financial managers, software developers and engineers, working together to provide clients with innovative, well-designed turn-key solutions.

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Africa Outlook issue 87 | 31

INDUSTRY SPOTLIGHT

Current Trends and Innovations Many industries are becoming digitised, and solar PV is no exception

T R E N DBUSINESS S & INNOVA INSIGHT TIONS

A

report by SolarPower Europe published back in January showed that digital innovation is fundamental to closing the electricity supply gap in South Africa, and driving off-grid solar market growth. The use of blockchain technology – which tracks supply and demand – and pay-as-you-go solar can help accelerate electrification, reduce tariffs and improve services.

“Digital innovation has created a sweet spot — delivering excellent products and services for customers, enabling low-cost operations for companies, and protecting assets and revenue streams for investors. The business model allows customers to pay for their off-grid solar product in small instalments,” the report reads.

Meanwhile, the fastest growing market within the sector is rooftop installation of solar panels.

They offer electricity benefits to households which previously had no electricity access, and are increasingly used to help power the daily operations of large buildings, such as malls and factories.

The GreenCape Smart Electricity Project has put significant effort to creating a conducive environment for rooftop PV and other small-scale embedded technologies in the Western Cape, which could lead to over 200MW of rooftop installation in the province in the upcoming year.

32 | Africa Outlook issue 87

Percentage of growth in Africa’s supply and consumption of electricity, 1990-2020

Percentage share as source of fuel for power generation, 2017

Pay-as-you-go solar can help accelerate electrification, reduce tariffs and improve services

SOUTH AFRICAN PHOTOVOLTAIC INDUSTRY ASSOCIATION (SAPVIA)

Key Players The companies shaping and disrupting the solar PV sector in South Africa

J A SOLAR SOUTH AFRICA J A Solar was founded in 2005 and since 2010 has been the world’s top producer of solar cells. It is firmly established as a top module supplier across the world, selling to 135 countries and regions, including having a presence in South Africa. It is renowned for its technological innovation, high-performance products and sales and distribution network.

It adopts a selective vertical integration model encompassing silicon wafer, cell and module production alongside PV power plant investment, development, construction and maintenance. To date, the company has achieved a cumulative shipment exceeding 23GW.

VICTRON ENERGY Victron Energy produces solar panels, solar inverters, transfer switches, batteries and more. Its products are distributed and sold around the world – it has an unrivalled reputation for technical innovation, quality and reliability. Victron products can be connected to the internet and monitored remotely.

SCHLETTER GROUP, SOUTH AFRICA The Schletter Group is a globally renowned manufacturer of solar mounting systems.

It develops and manufactures high-quality mounting solutions made of steel and aluminium for tracker systems, large-scale solar installations, and flat roofs and pitched roofs. The Group is headquartered in Germany, but has operations across the world, including South Africa, where it has a head office in Cape Town and a warehouse in Johannesburg. It has been growing its business in the country with a focus on rooftop systems, as well as mini-grids and hybrid solutions.

ED PLATFORM ED Platform offers a full range of solutions necessary for successful economic development within large scale infrastructures. It works with energy companies to provide regulatory compliance, skills development, corporate social investment and shared value creation projects.

Other services such as advisory, GIS and systems development allow companies to optimise growth strategies.

OTHER COMPANIES OF NOTE: Eskom EP Solar

Africa Outlook issue 87 | 33

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GRAND CEREALS | BASIL READ MINING UBER AFRICA

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

TECHNOLOGY

Marketi ng Oppo rtunity

Living Smart

Issue 87

When it comes to leveraging technology to provide innovative solutions in people’s lives, global giant Uber is second to none Writer: Dani Redd | Project Manager: Vivek Valmiki

U

ber is a company that most people in the world will have heard of. Not only does it has a net worth of $75 billion, but it is also currently operational in 85 countries, offering innovative transport and rideshare solutions.

“At Uber we have been expanding rapidly across the globe, with the goal to be everywhere and to offer everyone a mobility solution,” says Frans Hiemstra, the firm’s General Manager for Sub-Saharan Africa (SSA). “However, each market has its nuance, and a one size fits all strategy doesn’t work, especially not in Sub Saharan Africa (SSA).

“When we entered the market seven years ago, we knew we were going to be part of one of the world’s richest cultural bio-diversities, with a massive population of well over one billion, and saw this as one of our greatest opportunities.”

The company first penetrated SubSaharan Africa in 2013, establishing a

Living Smart

How Uber continues to leverage the power of technology to bring smarter solutions to several African markets, not only in the field of travel, but much further and deeper into the communities it serves 2 | Africa Outlook issue 87

presence in Johannesburg. Since then, it has expanded to operate in seven countries: South Africa, Nigeria, Ghana, Kenya, Tanzania, Uganda and Ivory Coast.

THINKING GLOBALLY, ACTING LOCALLY One of Uber’s strategies is ‘think global, act local’, which underpins its ambition to provide localised solutions to cities, communities, governments and individuals.

“Uber is solving one of the most prevalent issues faced by people on the continent – unemployment – by effectively leveraging entrepreneurial thinking. Our app has been able to bring a reliable integrated transport solution in some of the cities that require this,” Hiemstra says.

There is no ‘one size fits all’ when it comes to intercity transport solutions.

Each city has its own unique difficulties, requiring tailormade solutions – something that Uber is aware of.

LEVERAGING TECHNOLOGY TO ENABLE SMARTER LIVING

Africa Outlook issue 87 | 3

Orange’s Patrick Roussel examines the numbers of unbanked across Africa and how mobile money could solve the problem

www.africaoutlookmag.com/work-with-us

UBER AFRICA

36 | Africa Outlook issue 87

TECHNOLOGY

Living Smart

When it comes to leveraging technology to provide innovative solutions in people’s lives, global giant Uber is second to none Writer: Dani Redd | Project Manager: Vivek Valmiki

U

ber is a company that most people in the world will have heard of. Not only does it have a net worth of $75 billion, but it is also currently operational in 65 countries, offering innovative transport and rideshare solutions.

“At Uber we have been expanding rapidly across the globe, with the goal to be everywhere and to offer everyone a mobility solution,” says Frans Hiemstra, the firm’s General Manager for Sub-Saharan Africa (SSA). “However, each market has its nuance, and a one size fits all strategy doesn’t work, especially not in Sub Saharan Africa.

“When we entered the market seven years ago, we knew we were going to be part of one of the world’s richest cultural bio-diversities, with a massive population of well over one billion, and saw this as one of our greatest opportunities.”

The company first launched in SubSaharan Africa in 2013, establishing a presence in Johannesburg. Since

then, it has expanded to operate in seven countries: South Africa, Nigeria, Ghana, Kenya, Tanzania, Uganda and Ivory Coast, with Uber Eats available in several South African cities as well as Nairobi.

THINKING GLOBALLY, ACTING LOCALLY One of Uber’s strategies is ‘think global, act local’, which underpins its ambition to provide localised solutions to cities, communities, governments and individuals.

“Uber is solving one of the most prevalent issues faced by people on the continent – unemployment – by effectively leveraging entrepreneurial thinking. Our app has been able to bring a reliable integrated transport solution in some of the cities that require this,” Hiemstra says.

There is no ‘one size fits all’ when it comes to intercity transport solutions.

Each city has its own unique difficulties, requiring tailormade solutions – something that Uber is aware of.

Africa Outlook issue 87 | 37

UBER AFRICA is testing a new affordable transport option in certain areas called UberNam (Uber with me), which features hatchbacks – cars that are generally cheaper to run and maintain.

“In these difficult times, we want to ensure we deliver more affordable options with the same door-to-door safety standards while unlocking further earning opportunities for driver-partners,” Hiemstra adds.

UNIQUE AND ADAPTABLE The General Manager believes that Uber stands out from the crowd due to its ability to innovatively leverage technology and other owned assets to For example, Lagos (Nigeria’s most populous city) suffers from chronic traffic problems, with the commute between Mainland and Victoria Island taking hours.

“In response to this, for two weeks we piloted UberBOAT, making use of the city’s waterways as a way to cruise past the traffic, and making history for the continent by being the first-ever on-demand water-led transportation option,” Hiemstra says.

Uber has also made UberBODA (motorbikes) available in Kenya, Uganda and Tanzania, while UberPOA (tuk tuks) are available in Kenya and Tanzania.

“Both options are designed to provide effective transportation methods to our East African community that fits directly into the lifestyle in these markets,” the General Manager says.

In Tanzania, it has also launched Uber by the hour. This enables riders to book a driver-partner and car by the hour, enabling them to get essential errands done all in one go, maximising convenience and minimising social contact.

As well as being responsive to local specificities, Uber is also adept at responding to global and countrywide trends. For example, it noticed that a changing trend in South Africa was that consumers were becoming more price sensitive. In response to this it 40 | Africa Outlook issue 87

supplement income within a city. The Uber app gives drivers the flexibility to decide when and where they work, giving them control of their earning potential and allowing them to fit their current earning opportunities around other commitments, such as education.

“In a region where thousands of jobs are being shed, Uber has produced over 59,000 active and sustainable economic opportunities across SSA,” Hiemstra confirms.

A second differentiator is safety – in Sub-Saharan Africa (and in many other parts of the world), Uber is considered one of the safest modes of

LEADERSHIP FOCUS

Frans Hiemstra Frans Hiemstra joined Uber in 2015 as Head of Driver Operations.

“I have always been passionate about developing businesses in SSA and worked locally and abroad across various industries to gain more experience in this field.

Being at the forefront of solving complex problems has always been something I love, especially within today’s disrupted marketplace,” he explains.

“I was fascinated with the diverse group of innovative and competent people who were driven to create and define sustainable cities of the future to help communities across Africa.”

In June of this year, he took on the role of General Manager for Sub-Saharan Africa. This involved working closely with teams across Uber’s seven countries of operation in the region to build partnerships, leverage technology and adapt to the ‘new normal’ while supporting the needs of users, businesses and communities.

“I am fully committed to the business and our journey in SSA is just getting started. Along with my team, we will continue to build like never before!” Hiemstra adds.

Our journey so far Quite simply the easiest way to make and receive payments from anywhere in the world, Flutterwave has broken barriers in the journey to simplify payments for endless possibilities, in Africa, across emerging markets and globally. They have been able to build a network of payment interconnectedness, spanning 150 currencies, 15 countries, and four continents with the ultimate goal of helping businesses grow.

Flutterwave is able to support businesses at every stage of their growth cycle with features like payment links, Flutterwave Store and Flutterwave Checkout, that support freelancers, small businesses, startups, Scale-ups and enterprise organisations.

At Flutterwave, we handle the most difficult aspect of doing business, which is making and receiving payments. By doing so, we afford our customers the time and freedom to learn, unlearn, create, expand and grow your business. That there, is the foundation of our partnership with Uber in Africa.

“Our mission has always been to simplify payments for businesses in Africa - by doing this, we are able to provide them with the infrastructure to become global businesses from the comfort of the regions.

We enable merchants in countries like Kenya, to conveniently receive payments from their customers in Ghana, Nigeria, Uganda,” explains Olugbenga ‘GB’ Agboola, Co-founder and CEO of Flutterwave.

Since inception, Flutterwave has raised over $55 million with strategic investors like Greycroft, and global partnerships from fintechs like Worldpay. With over 200,000 merchants globally, and over $8bn processed, they have been listed on CB Insights’ list of 50 future unicorns.

Our partnership with Uber Recently, Flutterwave launched Uber Cash across several countries in Africa in partnership with ride-sharing company, Uber. Part of what Flutterwave offers enterprise partners is speed to market, personalised customer support, flexibility, affordability, security and reliability. These abilities are the driving force in the successful partnership between both companies over the years.

“Our arrangement with UberCash allows riders to top up Uber wallets using the dozens of remittance partners active on our Africa-wide network of payment providers. Uber Cash is available to Uber’s ride-hailing operations in South Africa, Kenya, Nigeria, Uganda and Ghana, Ivory Coast and Tanzania. We made that possible with our culture of customer-obsession, innovativeness and empathy for our customer’s customer,” says Olugbenga of the partnership.

“What we do is to relieve customers of the work and resources needed to head to market. We give our Merchants access to an infrastructure that connects a majority of the continent’s leading niche payment technologies into one reliable system.”

“All these are made possible by us integrating the most popular payment methods in these regions and making them available to merchants through Flutterwave. We are building the superhighway payments infrastructure for Africa with a stellar team that works tirelessly to achieve our vision,” he adds.

www.flutterwave.com

UBER AFRICA transport. It has incorporated multiple unique features into its app to ensure riders feel safe. For a start, it provides them with information about the car and the driver – including an image of the latter – as well as GPS tracking (so friends and partners can also monitor progress) and even an emergency button.

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

Frans Hiemstra: “Leveraging innovative partnerships and technology is the cornerstone to business survival in any industry.

Our business is all about leveraging our technology to build innovative partnerships and to adapt to the ‘new normal’ while supporting the needs of our Uber users, businesses and communities.

“To date, one of our unique partnerships include our work with Exclusive Books and Uber Eats to deliver bestsellers, and highlights how even non-related brands on different ends of the business to consumer spectrum can work when the opportunity arises via e-Commerce. Partnerships like this diversify an already engaged audience providing a completely new segment of potential sales.

In October, we rolled out a new reimagined experience in the Uber Eats app to users to find exactly what they are looking for—faster, in addition to offering new ordering categories such as groceries, speciality foods, and pet food. Through this redesigned version of the app provides tailored recommendations to the customer.”

42 | Africa Outlook issue 87

A third differentiating factor is Uber’s focus on community wellbeing. In the Sub Saharan Africa region and beyond, it has always tried to help communities in need during natural disasters through its UberCOMMUNITY initiative.

“Through this initiative, we opened our app to assist the Alexandra township in 2018 which experienced devastating fires that rampaged through the community, destroying at least 500 informal settlements, leaving thousands homeless,” Hiemstra explains. “As a result of this many had lost everything. UberCOMMUNITY was activated to assist the Alexandra residents, by asking for the wider community to use the option on the Uber App to donate any items (food,

toiletries, clothing). All in the attempt to help those who lost everything slowly rebuild.”

The initiative was replicated in 2019 to assist the Durban community when it experienced devastating floods, which swept away many homes in the community.

Finally, to Hiemstra, Uber embodies entrepreneurial evolution.

“While the primary outcome of our business is that our customers get from point A to point B, we have never considered ourselves a transport company,” he explains. “In fact, we don’t even own any vehicles. Rather, Uber is a technology business, and our success stems from our ability to leverage that technology.

“Given how quickly landscapes can change, proven by recent worldwide lockdowns, success in longevity lies in ingenuity and innovation.”

STAYING SAFE Considering that Uber is first and foremost a mobility-based company, it comes as no surprise that it was affected by the COVID-19 pandemic and subsequent restricted mobility.

Each country it operated in had different regulations and its own set of challenges that it needed to overcome.

“It became a litmus test; not only for global leaders, national governments, and the frontline workers stepping up to protect the communities they serve, but also for businesses and their

leaders. We needed to find ways to adapt the business models to ensure we respond to the ‘new normal’, which is why globally we are concentrating our efforts on our core mobility and delivery platforms,” the General Manager explains.

During the pandemic it remained agile by focusing on its food delivery service, Uber Eats, which increased in popularity as many food businesses were forced to provide takeaway services instead of sit-in dining. It also launched two new product offerings in the region – Uber Connect and Eats Essentials.

Uber Connect was launched during lockdown, aiming to keep users connected by allowing them to send Africa Outlook issue 87 | 43

UBER AFRICA packages to family friends as well as business delivery needs via the Uber app, which encouraged social distancing. Meanwhile, Eats Essentials was launched during South Africa’s 21 day lockdown, when even fast food takeaways were closed – it partnered with food outlets and pharmacies to deliver essential suppliers to customers who needed it. Uber Cash – a contactless/cashless payment option – was also launched in June to encourage social distancing.

“We realise that coronavirus has devastated many communities around the world by crippling economies and reducing the few earning opportunities available. Since the outbreak, we have partnered with organisations around the world to Move What Matters - free meals or rides to frontline workers, delivery of essential medicine to homebound patients and food parcels to those most vulnerable,” Hiemstra says.

Steps for safety To protect health during the pandemic, Uber is adopting the following measures: RIDER SAFETY: Uber has maximised seating capacity at 50 percent per vehicle, and riders need to sit in the back seat to encourage physical distancing between riders and drivers.

SUPPORTING PUBLIC HEALTH AUTHORITIES: A team is available 24-seven to help public health authorities respond to the pandemic.

SCIENTIFICALLY-BACKED RESPONSES: Uber is consulting with an epidemiologist to ensure its company efforts are grounded in medical advice.

HELPING AFFECTED DRIVERS AND DELIVERY DRIVERS: Anyone diagnosed with COVID-19 or asked to self-isolate by a public health activity will receive 14 days of financial assistance from Uber. During selfisolation their account must be suspended.

KEEPING CARS CLEAN: Uber is partnering with manufacturers and distributors to source as many cleaning products as possible, to ensure cars are kept clean.

DELIVERY OPTIONS: There are now options for socially distanced food delivery – you can ask your Uber Eats driver to leave the food on your doorstep.

44 | Africa Outlook issue 87

For example, in South Africa it partnered with the Bill and Melinda Gates Foundation and the Western Cape Department of Health to deliver chronic medication to those unable to visit local clinics.

Uber also had to ensure the safety of users. “During this time our focus has been supporting our drivers and delivery people with the information they need to stay safe,” the General Manager explains.

“In this period we have made significant safety upgrades to the app. We rolled out a number of new features and policies to help ensure their health and well-being while operating across our platform, including info in-app, no-contact delivery, providing them with masks and sanitising reimbursements, and more.”

The company also needed to ensure social distancing across its offices as

TECHNOLOGY

TECH FOR SAFETY SUMMIT During October, Uber hosted its second annual Tech for Safety summit in Johannesburg, where politicians, thought leaders, researchers and businesses converged to discuss how technology may be leveraged to create innovative safety solutions.

Although it was an ‘in person’ event, strict COVID-19 protocols were adhered to ensuring guest safety, the summit was adjusted to the new normal and allowed virtual attendees from across SSA to take part in the conversation.

The event featured a keynote address, panel sessions and an innovative hackathon battle or ‘Pitching Den,’ where startups pitched their ‘tech for safety’ ideas to an expert judging panel. The winner was Keletso Lekwakwe, creator of Password Kid – he will receive a year-long immersive support programme from Innovate Durban.

a way of helping ‘flatten the curve’.

Since March 6, it has requested that its global workforce make the move to homeworking, as a way to slow down the spread of the virus.

“While there were challenges, we were presented with a unique opportunity, to look at other ways we can

help businesses and riders ‘Move What Matters’ by leveraging our technology to find solutions for business, individuals and communities,” Hiemstra says.

The General Manager knows that the coronavirus will be here for a while, and that any plans for the upcoming year must take it into account. Uber

will concentrate efforts on core mobility and delivery platforms in a safe and reliable manner.

It will also be expanding into new markets with its Uber Eats app, enabling more customers to have a wide variety of food options. Furthermore, it hopes to roll out its affordable ride solution, UberNAM – initially piloted in Johannesburg and Cape Town – across more cities in the country.

In short, the company will continue to do what it has always done: to create innovative mobility solutions that enable business growth while economically uplifting communities in a secure, sustainable manner.

UBER AFRICA www.uber.com/za/en

Africa Outlook issue 87 | 45

GRAND CEREALS

Feeding West Africa Nigeria’s Grand Cereals provides nutrient-rich products to help meet West Africa’s growing need for healthy, affordable and accessible food Writer: Dani Redd | Project Manager: Ryan Gray

I

n West Africa, around half the population lives on less than $1.25 per day, according to a study by the International Food Policy Research Institute (IFPRI).

Persistent poverty leads to food insecurity, malnutrition and poor health. Roughly 75 percent of children 46 | Africa Outlook issue 87

under five and nearly 60 percent pregnant women in the region suffer from anaemia, while 32 percent of children under five are affected by chronic undernutrition (stunting).

Access to affordable, nutrient-rich food is of vital importance.

Meet Grand Cereals Limited, a

company aiming to be the preferred provider of both human and animal nutrition in West Africa.

“There are 200 million Nigerians with about five million babies born every year. We have to feed this population,” says Alex Goma, CEO and Managing Director of Grand Cereals Limited.

FOOD & DRINK

The food and beverage industry, he explains, is both a challenging and an exciting one, filled with opportunities.

“There is a lot of value to be created for consumers, supply chain partners, farmers, government and investors by feeding people the right way. There are many constraints that have to be dealt with across the whole spectrum, which makes every day exciting,” he explains.

FEEDING WEST AFRICA Grand Cereals Limited was established in 1983 and is currently a member of the UAC Group. It is an integrated nutrition company that operates in the

edible oils, consumer and industrial cereals and animal feeds categories.

It is currently led by an experienced board of directors, headed by Chairman, Chief Bode Emmanuel, with Alex having taken on the CEO position in 2019.

“I wanted to be part of a company that builds a world class institution and creates food security for Nigeria in the first instance and Africa in the second,” the now CEO explains.

The company’s head office and main factory is based in the beautiful Nigerian city of Jos. There are also factories in Onitsha and Kano, with divisional sales offices located in Lagos and Abuja. The organisation has more than 450 FTE and over 900-plus outsourced employees based across these locations with significant employment opportunities created via our farmers, key distributors and trade partners.

Grand Cereals has three master brands: GRAND (which sells consumer products); VITAL (animal feeds) and BESTMATE (pet food), the latter in the process of being established. All of these products are manufactured from locally sourced cereal crops and are intended to provide optimised nutrition at the best possible value for money.

When asked what differentiates Grand Cereals from its competitors, Alex cites the company’s brands.

“Grand and Vital, our flagship brands have been trusted for years by consumers and farmers,” he says.

“Our focus on delivering quality to consumers with clear tangible benefits has sustained the business and will continue to drive the growth of the brands. It’s the strength of the brands that has given Grand the right to extend from pure soya oil, maize flour, consumer grits to breakfast cereals like cornflakes.”

Vital has also expanded its product range in recent years, expanding from poultry feed to fish and ruminants.

“These brands of course have been built by our people, who live our GRAND Values (Growth, Reliability,

Agility, Networking and Drive). Our people create our brands and make the difference between us and our competitors,” Alex explains.

A second reason for the company’s popularity is the trust it has built up among the farming community in Nigeria and other West African countries.

It supports local farming communities and cooperatives by sourcing raw materials for its products from them. It provides technical assistance on sustainable production methods to these farms, and also optimises the delivery of raw materials from farms to production plants to ensure minimum waste.

Indeed, relationships with suppliers and other partners are critical to Grand Cereals’ survival. The company has an end-to-end supply chain from procurement and manufacturing to customer service and delivery.

“These operations are at the core of ensuring we can deliver customers requirement on time and in full,” the CEO says. “Our relationships with our suppliers are important to ensure we get quality input and also to work with them to reduce non value added costs. We are invested in ensuring their businesses are profitable, and we can work as partners rather than traders in delivering value for all.”

A SOCIALLY RESPONSIBLE EMPLOYER Grand Cereals’ corporate culture is to conduct business in an ethical, socially responsible and environmentally sustainable manner.

This begins in the workplace, which is characterised by trust, openness and visionary leadership.

The factories themselves have been optimised to reduce waste and limit the impact on the environment. These efforts have led to Grand Cereals gaining an ISO 5001 certification.

As part of its business culture, it also engages in corporate social responsibility (CSR), with a focus on Africa Outlook issue 87 | 47

Visible Value Chain has evolved into an end to end value chain solutions provider. We are dedicated to enhancing our partners’ value through the delivery of superior and cost-effective value chain services. Our principal objective is to be the leading and most valued provider of value chain solutions across West Africa.

www.visiblevaluechain.com

GRAND CEREALS

Hettmond International Ltd Hettmond International Ltd is proud to be business partners with Grand Cereals Ltd. Over several years, we have brought significant value to them and have enjoyed mutually beneficial business relationships. – being part of their success in the Animal Nutrition side of their business is anchored on the reliability of our business delivery and cost effectiveness of the premium raw materials and additives that we supply.

We very much hope and expect to continue our strong partnership over the years to come.

info@hettmond.com

education, nourishment, socio-cultural development and sustainability.

“We have been involved in community development especially around where our factory is located,” the CEO explains. “We have built and delivered a community centre in Jos and we have supported the recent government initiative to provide for the poor and needy during the COVID19 pandemic in the three states where we have operations.”

Back in June, for example, Grand Cereal Limited supplied food items to both Plateau State and Anambra State Governments to be delivered to vulnerable citizens. The donated items included 10 tonnes of fortified maize flour, 250 cartons of Grand pure soya oil, 900 crates of eggs source from the Poultry Farmers Association and 250 cartons of cornflakes.

However, CSR this year has gone beyond disaster relief.

“We also run a number of training workshops and schemes for farmers 50 | Africa Outlook issue 87

GRAND CEREALS’ BRANDS Grand Cereals has three master brands, each with its own range of sub-brands.

Grand consists of nutritional food products for human consumption.

These include: Grand Cornflakes; Grand Maize Brabusco; Grand Maize Flour; Grand Pure Soya Oil; Grand Soya Flour; Maize Grits and GrandVita Protein Cereal.

The Vital brand is an animal feeds brand and the leading choice among farmers as it helps them

increase their yield and productivity. The Vital Poultry Feed Range consists of a balanced poultry diet in pellets, mash and concentrate form, containing the nutrients to support optimum growth, laying and broiler production. The brand also offers a Vital Fish Feed Range, Vital Feed Horse and Vital Feed Ruminant for four stomach-chambered animals such as cattle, goats and sheep.

A pet food brand responsible for Binggo Dog Food and Binggo Dog Food – Puppy. These premium dry extruded dog foods are made with 100 percent Nigerian ingredients, and contain the best nutrients to optimise growth and performance.

FOOD & DRINK

Hettmond International Ltd

We Bring Value To Our Customers.

We are suppliers of Premium Quality Animal Nutrition Products, namely: Poultry Meal, Meat and Bone Meal, Blood Meal, Poultry Fat, Hydrolysed Feather Meal, L-Lysine, DL-Methionine, Threonine, Choline Chloride etc.

Tel: +234 8023164393 Email: info@hettmond.com

Mid-Century Agro-Allied Ventures Ltd.

Since 1990 Plot 29 Akanke Augusto Close, Off Augusto Avenue Beside Alinco Filling Station, by Idi - Oparun B/Stop, Opp, Abattoir Police Station, Lagos State Abatior Oko Oba, Agege Lagos Nigeria.

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PRODUCT RANGE A NUTRITIONAL * ANIMAL PROTEINS * GUT HEALTH OPTIMIZERS * AMINO ACIDS (ALL ESSENTIAL AMINO ACID) * SINGLE VITAMINS * MINERALS & THEIR SALTS * TOXIN BINDERS * ENZYMES - NSP/COCKTAILS * MANAN OLIGOSACCHARIDES * FAT EMULCIFIERS * ACIDIFIERS * ANTIOXIDANTS * CAROTENOIDS (COLOURANTS) * MOULD INHIBITORS * FISHMEAL * COCCIDIOSTATS * MINERAL CHELATES * PROBIOTICS * PELET BINDERS

* ORGANIC ACIDS THEIR SALTS IN BLENDS * MCP, DCP & TCP * BI-CARBONATES * SWEETENERS * FLAVOURANTS * ATTRACTANTS

B HEALTH * APIS * LIVER TONIC * GUT HEALTH STABILIZERS * POWDERS & LIQUID

C PUBLIC HEALTH * ODOUR CONTROL * RODENTICIDES * DISINFECTANTS

Advanced Turn-key Commercial Agricultural Projects

... Experienced and Committed.

Africa Outlook issue 87 | 51

GRAND CEREALS

LEADERSHIP FOCUS

ALEX GOMA Alex Goma has a degree in biochemistry from the University of Port Harcourt Nigeria and a Bachelors of Law (LLB) degree from the University of London.

He started his career in 1991 as a quality control assistant in a bottling company and has since moved across sales, customer service, logistics, marketing and general management. He has worked across a number of categories and companies in Nigeria, Ghana, Egypt and Senegal. These include Leventis Group, Procter & Gamble, British American Tobacco and PZ Cussons.

In 2019, Alex was approached for the position of CEO at Grand Cereals.

“I decided to join Grand Cereals in 2019 because of the vision that was shared and sold to me by the chairman and holding company, UAC Nigeria,” he says.

“UAC leadership’s vision is a keen desire and focus in building an African company capable of competing with the very best in the world.”

52 | Africa Outlook issue 87

across the country to help them improve their farming best practices.

Our next area of focus is looking at educational development and capacity-building for society,” Alex says.

One aspect of this capacity-building is a graduate trainee scheme which it hopes to roll out over the upcoming year, helping ensure it builds talent for the future.

The conversation turns automatically to the year ahead, with Alex outlining plans to expand the company’s oil refining capacity to meet the demand for oil for human consumption, as well as a material for its feed business. This is the latest in a

string of upgrades that includes the installation of a breakfast cereal plant at the Jos factory and a new fish food plant in the Onitsha factory.

“Our next focus, of course, will be about driving profitable growth, so we have to be ready as a business to push all levers to support this. We have specific projects in the factory we have to complete as well as the expansion of our oil business,” the CEO explains.

But its corporate expansion isn’t solely motivated by profit. Grand Cereals Limited also wants to do its bit to ensure it provides Nigeria’s growing population with affordable nutrition.

“With a young and growing population, we expect to be able to support the requirements for ready to eat meals as well as requirements for protein for nutritional wellbeing,” Alex concludes.

GRAND CEREALS Tel: 070 0000 0999 info@grandcereals.com www.grandcereals.com

FOOD & DRINK

Tony Okoro & Sons Nigeria.

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Africa Outlook issue 87 | 53

DARLING BREW

FOOD & DRINK

Brewing a Better

Future

With sustainability at its core, Darling Brew aims to preserve the environment, bring communities together, and generate health-related awareness through good quality beer Writer: Marcus Kääpä | Project Manager: Donovan Smith

Long Claw is a personal favourite of mine. We took a traditional recipe, dryhopped it with Citra hops, and it is exceptionally good. Very tasty, very colourful, smooth, loads of flavours, and a brilliant aroma.”

10 years ago, Kevin Wood knew little of the brewing process behind beer, craft or otherwise. So, when he decided to drop his corporate job to open a craft beer brewery, it is fair enough to say that it was an unconventional move.

“My knowledge of a good beer was as bad as everyone else’s. But I met this guy while travelling Africa who knew how to make craft beer, and that is pretty much where the story starts,” he recalls.

With nothing but a passion for the taste of beer, Wood went on to create Darling Brew – named after the small village outside Cape Town that he currently resides in – alongside his wife and company co-founder Philippa.

“She called me crazy when I came up with the idea, but we both worked hard and we had a company mission in mind, and that is what drove us forward with Darling Brew,” Wood tells us.

Now the business stands as a beverage icon in South Africa and sells a wide range of quality beers with striking packaging, brand awareness, and unmatched taste.

The craft brewery was set up with the intention to provide brilliantly tasting beverages at the same time as helping directly promote environmental preservation and spread the awareness of the need for sustainability in business.

As for the South African brewing industry, Darling stands out as one of the first companies to launch a successful craft beer brewery in the country, hitting the market that previously barely consisted of beer brands outside well-known global corporations.

Africa Outlook issue 87 | 55

DARLING BREW THE SUSTAINABILITY STORY The company’s sustainability journey is the biggest brand factor and differentiator that places Darling Brew above and apart from its competitors in the industry. The brand story behind the brewery envelops issues surrounding the preservation of nature as well as the quality of the beers it produces.

“All of our beer is brewed in Africa, and conservation and environmentally-friendly lifestyle surrounds it,” Wood explains. “More people are environmentally conscious and looking after their personal health, and they want beer that can match that.

“I didn’t get into the business to take on large scale companies – I got in it to brew great quality beer using great ingredients and not cut corners on quality, and I think that distinguishes our brand in a big way.”

Darling focuses heavily on the message behind its brand – a story that customers can get on board with in the knowledge that they are supporting a business making a difference.

This environmentally mindful business focus is no better exemplified than the company’s carbon neutral

brewery. Claiming the innovative and forward-thinking title of being the first brewery of its kind on the continent, Darling’s carbon neutral brewery is set to offset a total of 687.96 tonnes of CO2 over the next year.

For comparison, this is akin to having eliminated the same amount of carbon from the environment as 17,829 trees for 10 years.

“Each year we give amounts of money to causes that, for example, re-plant hardwood trees that have been cut down over the years,” Wood adds. “There is also a move that we support towards encouraging the locals to increase the growth of gumtrees which, despite being harmful to ecosystems outside Australia when unregulated, when controlled are hugely beneficial for communities due to their quick growth and multiple uses.”

2016 saw the release of the company’s first ever carbon neutral beer – Blood Serpent – that was seen as a catalyst towards decarbonisation and company-focused carbon neutrality. And Darling has an extended range of these new beers in the works.

Stabifix LEADING TECHNOLOGY IN BEER STABILISATION AND CLARIFICATION FOR MORE THAN 50 YEARS STABIFIX has stood for decades as the method of choice to make beer brilliant and stable. We invented protein stabilisation with silica gels and have been perfecting it ever since.

When targeting long term clarity, brewers want to avoid one-sided excessive treatments. The aim is a well balanced stabilisation process which protects valuable beer components while removing critical fractions as is necessary. Therefore, we developed STABICLEAR PVPP to adsorb hazereactive polyphenols. It is optimised for a combined application with STABIFIX and STABIQUICK silica gels which ensure best possible results.

Contrary to other soluble or partly soluble stabilisers, STABIFIX products are fully removable. And with no chemical reactions taking place, one can be sure, that neither additives nor chemical reaction products are left behind in the beer that could be adsorbed by customers.

For many years, our new and innovative product, STABISOL has been adding value to brews around the world!

STABISOL accelerates particle formation and removal, thus supporting faster brewing by debottlenecking critical steps in the brewing process.

Advantages of using STABISOL during boiling, racking and filtration: • Brighter wort • Reduction of particles in pitching wort • Faster fermentation • Less sediment in fermenters • Faster sedimentation in maturation tank • Brighter unfiltered beer • Better beer filterability • Longer filter runs

Working in proud association with local South African distribution partner CARBOCRAFT.

Darling Brew founders Kevin and Philippa Wood

56 | Africa Outlook issue 87

www.stabifix.com

FOOD & DRINK

CARBOCRAFT is a proud supplier and customer of DARLING BREW….we love beer!

CARBOCRAFT is a leading ingredient and process raw material supplier in South Africa and Sub-Saharan Africa!

With a profound emphasis on customer service excellence and premium product quality, combined with a nationwide “JUST-IN-TIME” logistics philosophy, CARBOCRAFT has experienced rapid and sustained year-on-year growth since its inception in 2010.

For the brewing and distilling fraternity, we offer the following process aids and raw materials, on a JUST-IN-TIME basis: • • • • • • • • • • • • •

Activated carbon (granular & powder) AQUAGEL fining agent (based on carrageenan) Botanicals (juniper berries, cassia bark, etc.)

Brewing salts Dr. Weigert cleaning & disinfection chemicals Enzymes Filter Aid (perlite, diatomite, cellulose) Flavours (flavours, extracts and distillates) STABICLEAR PVPP STABIFIX WMF hydrogel STABIQUICK STRONG xerogel STABISOL silica solution And many more products

CARBOCRAFT collaborates with STABIFIX in South Africa & Sub-Saharan Africa – Please visit www.stabifix.com

With warehouse facilities in all primary commercial centres of South Africa, we provide fast, flexible, JUST-IN-TIME deliveries to all our customers nationwide. Through our diverse product portfolio and JUST-IN-TIME logistics, we add significant value to the supply chain of our customers.

Tel : +27 (011) 234 0675 Email : info@carbocraft.co.za Web : www.carbocraft.co.za

Africa Outlook issue 87 | 57

DARLING BREW “BUSINESSES NEED TO CHANGE THEIR PRACTICES AND PUT THE ENVIRONMENT AND HUMAN HEALTH FIRST, BEFORE PROFIT”

The use of recycled materials for canned packaging is an additional aspect of these carbon neutral beers, and this practice continues across the range of beers it produces.

Because when it comes to sustainability and healthy living, Darling Brew does make a difference.

Not only does it promote an awareness of environmental issues, and advocate the resolution of such problems, the business veers away from using cheap ingredients (used to mass-brew common beers found all over the globe) so that its customers receive nothing but the best collective quality from its beverages.

Glyphosate, for example, is one ingredient that the company completely excludes from all beer production. The chemical agent is a crop desiccant weedkiller used in the “dry-down” process in crop collection 58 | Africa Outlook issue 87

– that of killing crop matter so that it can dry out from its environmental conditions and be collected evenly and efficiently by farming machinery.

The problem with this chemical is that, despite regulated health codes regarding beverage production, residue from this weedkiller remains an element of production even after the long brewing process, which includes the eradication of bacteria or other potentially harmful substances.

The residue of glyphosate remains absorbed into the collected crops and then transferred into the end product. It has been scientifically proven as a carcinogen as well as being harmful to the liver and other organs. As for the amount of this chemical residue in mass-produced beers, the repeated inducing of small amounts of glyphosate causes longlasting damage to beer lovers, as well

as increasing the potential risk of cancer in later life. For Darling Brew, glyphosate is avoided at every turn.

“It should be outlawed full stop,” he says. “I will use an example of smoking: if something can cause you potential harm then it should warn you on the label, but glyphosate isn’t even shown on beer packaging. Something that sticks to and lines your stomach, linked to causing all sorts of damage: cancers, organ damage, and the list goes on, should be warned against, if not made illegal completely.

“Businesses need to change their practices and put the environment and human health first, before profit. Using the cheapest low-quality methods of food and beverage production causes major problems. Think of mad cow disease in the UK during the 80s for example. Look at the spread of COVID19 today.” Wood explains to us.

FOOD & DRINK DISRUPTING THE BREWING INDUSTRY Darling’s emergence in the South African market was a welcome difference to the options provided to the consumer at the time.

Craft beer was largely new in the beverage sphere and smaller brewers were in constant competition with the popular large-scale corporations that flooded the market with cheaper options. Darling entered an industry in an un-tapped area of the market, but despite this still faced some obstacles.

“It was an explosive market, but it plateaued quickly,” Wood explains to us. “I think there were a few reasons for that. The SA economy is a lot smaller than that of countries such as the US and UK. Another reason is that we have had a lot of start-up brewers who neglected quality, shelf life, and taste, and thought they can produce a beer with a “cool” label and lead the market.

“Because the market is based on the growth of the middle-class, it can be seen that there is still growth to be had. We aren’t going to get you 14 percent volume and 18 to 19 percent revenue like in the US, but the market is steadily climbing.”

Despite this, Darling’s success continues to be linked to its three key company attributes. If the first two sides to the business are sustainability and healthy living, the third is without a doubt community. As a company that serves to promote a healthy environment and individuals, community ties and association is an active and incorporated element of Darling’s business.

And the company has maximised this aspect of community through its recent tap room expansions. During the first lockdown period as a result of COVID-19, Darling refused to act like the ostrich – that is to say “stick its head in the sand” – and instead went forward and developed five new beverages – four of which were zeroalcohol, and the other a mainstream lager.

This promoted Darling in parallel markets such as the low-and-no beverage sphere, as well as producing an “all-rounder” beer that appeals to a larger customer base.

And while the COVID-19 pandemic uprooted industries left, right, and centre, the company invested heavily in the amount of, and quality, of its taste room facilities.

These taste rooms are synonymous with Darling Brew all across South Africa. They are places of social gathering where dedicated customers BEER IN FOCUS

ARROWHEAD The Namaqua Arrowhead is a rare butterfly native to the regions in South Africa and Namibia. The adults take flight from September to November and showcase their unmistakable beauty and rugged softness contrasting the harsh, arid environments they call home.

The beverage is a celebration of the delicate natural beauty within the continent.

or curious new visitors can socialise, eat great gourmet pub-style food, and taste the various beverages the company has to offer. They have become a very successful aspect of the company’s business.

“The taste rooms allow us to expand our own direct serving of our products in a sustainable volume without any financially limiting ties to outside businesses. And that is a massive BEER IN FOCUS

BONE CRUSHER Inspired by the spotted hyena.

An often-misunderstood creature, the Spotted Hyena’s social intelligence is on par with some primates. The Spotted Hyena is native to Sub-Saharan Africa, and it hunts up to 70 percent of its prey, making it more successful in its kill rate than the Lion. The name Bone Crusher was coined due to the extreme strength of the hyena’s jaw, with its upper and lower third premolars being conical bone-crushers.

Africa Outlook issue 87 | 59

DARLING BREW part of our strategy over the next two years,” Wood says.

Since the outbreak of COVID19 and its effects on the food and drink industry, Darling has resorted to socially distanced dining, drivethrough, and locally delivered plans, keeping it well in the game even during such a tumultuous time.

“The revenue produced from our taste rooms generates 30 percent of our turnover, so we have earmarked BEER IN FOCUS

BLACK MIST Inspired by the Verreaux’s eagle.

A majestic raptor found in the mountains throughout Africa.

Often like mist never seen.

Thought to be fairly safe from threats as it lives high in the mountains, recent surveys show an alarming distribution range reduction. Many birds of prey still suffer heavy persecution through illegal poisoning, habitat destruction, illegal animal trade and being knocked over by vehicles.

60 | Africa Outlook issue 87

three or four more for next year, and we have elected high-tourist orientated areas to place them, for example in the heart of Johannesburg, in an area near to the Kruger National Park,” Wood says.

“Because of COVID-19, South African people are restricted to BEER IN FOCUS

LONG CLAW The packaging representing the majestic African lion. Their elite status has made them targets for hunters, which is coupled with habitat loss - the major reason for the decline in lion population.

A new threat is lion bone trade to feed the black market due to the decline in tiger population.

Since the 1950s, Africa’s wild lion population has plummeted from 500,000 to just over 20,000.

After the infamous killing of Cecil the lion by an American hunter in 2015, the US announced that the African lion is now a protected species under the U.S. Endangered Species Act.

in-country locations, and so all domestic events, activities, and places to visit (such as these national parks) are fully booked. People are spending their money inside the country.”

In October of 2020 alone, Darling will have grown 100 percent based on the reception of these taste rooms. And due to the new, trendy, and fashionable locations offered up by the company, fewer people are looking to spend their money at traditional venues.

BEER IN FOCUS

WARLORD A hoppy, fruity, and strong beer promoting Africa’s black rhino.

The African population of black rhino was hunted from around 70,000 to below 2500 in 1990.

Animals were brought in from zoos around the world to breed with the population that was left to bring in genetic diversity. The population has grown to around 5,000 black rhinos but they are still a critically endangered species.

FOOD & DRINK

“We also find our business in one of those areas that is not mainstream. For example, standard hotels, they aren’t fully booked because people don’t want to stay in those kinds of things, and so they look to more interesting activities one of which is our brewery, taste rooms, or events that we hold,” Wood says.

On top of this, the community is integrated into the Darling business through public events held by the efforts of Kevin and Phillipa Wood.

“We are one of the biggest tourist attractions in the region, so we are expanding our offerings of entertainment venues,” Wood says.

“We have got one of the biggest single-day mountain biking races in South Africa starting from the brewery itself – that is the kind of thing we do.

There is quite a lot surrounding our sporting events, and we have got more in the works.

“There is a big sporting and community side to the business, that’s a big part of our market – offering entertainment for kids, families, and this is the business model we promote around the country.”

These events occur on a large scale.

One race being introduced in the near

future is the Winery to Brewery course (Wood comments on the number of brilliant wineries in the region), where the bicycle track will be anywhere from 30 kilometres to 100 kilometres.

A SUSTAINABLE FUTURE Darling Brew works alongside many business partners to achieve the production and distribution of brilliant beer in support of environmental sustainability and preservation. In line with these company aims, the brewery deems its partnerships incredibly important, especially as they are a part of what makes them so sustainable.

“Over the years we have built relationships with many of our partners from packaging to equipment, and everybody is on the same page. For example, our partners help us with labels using bamboo, and cans made from recycled materials, as well as beer holders made of cardboard,” Wood says.

In the long term this is beneficial for three reasons: it allows Darling to continue promoting environmental stability in its business, helps associate these partner companies with greener methods and, of course, actually benefits the environment through

sustainable methods of industry and broader influence and awareness of environmental issues. And this dedication extends to customer and human health as well.

“I refuse to use methods other larger companies use, like spraying their crops with glyphosate. If a country or company can’t prove to me that they aren’t using harmful chemicals or other substances, I refuse to work with them,” Wood tells us.

As the industry speeds through 2020 Kevin and Phillipa Wood view the future with optimism. Darling Brew’s sustainability, health, and community goals continue alongside the expansion carbon neutral brewing, new product variations that use only the best quality and healthiest options for brewing, and new taste room locations to bring people together in a globally troubling time.

DARLING BREW 48 Caledon Street, Darling, 7345, South Africa www.darlingbrew.co.za

Africa Outlook issue 87 | 61

HABIBO GROUP

T

he Republic of Madagascar is commonly associated with tropical conditions, teeming groups of lemurs, and the iconic baobab trees that tower above forest floors. As well as harbouring a perfect climate to grow fruit, the nation is home to a wide variety of natural resources and valuable commodities (graphite, chromite, bauxite, coal, tar sands, fish, vanilla, and hydropower, to name a few).

But with a population of over 27.5 million as of 2020, Madagascar relies heavily on imports to provide its people with the produce, products, and resources the country needs.

The largest of these imports is petroleum oils that make up over 15 percent of total imports to Madagascar. Rice (six percent), vehicles (more than four percent), medicine (over two percent), and palm oil (around another two percent), are just some of the primary import produce that the nation is reliant upon.

Producing for

Madagascar Habibo Group is determined to supply Madagascar and beyond with quality FMCG products at a fair price as the nation seeks to reduce reliance on imported goods Writer: Marcus Kääpä Project Manager: Donovan Smith

62 | Africa Outlook issue 87

FOOD & DRINK

HABIBO GROUP These products are brought in from its major trading partners: Europe (mainly France and the Netherlands), Asia (China and India), the UAE, the USA, and of course South Africa (with a closer proximity than any other partner).

But the nation is seeking to gradually move away from this reliance on imports.

As it has many important and widely used resources to offer (an example being bauxite, used in aluminium production, or tar sands,

THE HABIBO WAY Habibo provides customers with the best value-for-money options in many regions where it operates. This is largely down to the consistent quality of the products it provides in line with international brands, that in turn hold to international standards of quality in its factories.

Following on from this quality of produce, Habibo holds itself to certain company values that maintain the continuity of quality service. These include: • Consumer satisfaction • Teamwork • Integrity • Respect • Responsibility • Quality • Excellence • Proximity

64 | Africa Outlook issue 87

used in the production of petroleum), Madagascar is aiming to further develop its exportation industry to access lucrative markets abroad.

And there is one company in particular that is trying to reduce the nation’s reliance on imports.

The Habibo Group is a major player in Malagasy fast-moving consumer goods (FMCG) production and distribution, and has more than 80 years of experience in the industry.

Since 1936, Habibo has been owned and operated by CEO Malik Karmaly’s family, and has concentrated on the importation, exportation, and distribution of various consumer goods and food stuffs. In 2009 it added SOFIA, the distribution company under the banner of Habibo, to its business.

“The vision is to provide continuing quality goods with consistent and reasonable prices to the market. If the sales of certain products grow, the company will think of expanding into industry goods,” Karmaly says.

Habibo Group is subdivided into four businesses. Habibo Compagnie produces spices, vegetable fibres, and beeswax (on top of fabric goods like mattresses) for distribution. Another branch, Habibo Mills, stands as the leading producer of pasta goods in the Indian Ocean, and as a franchisee of French brand Panzani, it is equipped with high-tech machines capable of meeting international standards for recipes and quality.

Habibo Dairy is the only local producer of UHT Tetra pack milk, a product that is franchised in Madagascar under the well-known French brand CANDIA. The factory provides different milks (additional flavoured options) and produces fruit juices for the brand LeFruit.

But the jewel in the company crown is Sofia, the aforementioned distribution company of the Group. Sofia’s primary focus is the importation, sale, and exportation of produce all over the Indian Ocean.

Colombina Colombina is a Colombian food company with over 90 years of market presence. From its founding in 1918, it has interacted with its customers and consumers through a management model rooted in comprehensive transparency.

Such customer-centricity is just one of the reasons for Colombina’s global reach of 80-plus countries today, boasting nearly USD $600 million in annual sales from manufacturing and commercialising its wide array of food – a legitimate leader in major candy markets.

Colombina also observes employeecentricity with its over 7,300 workers.

This in-house pledge to its workforce inspires them to simply turn out the very best flavours and food experiences.

Colombina has operations in 21 African countries, making in-roads there with established well-loved brands, such as Bon Bon Bum chewing-gum filled lollipops, Tiger Pops chewy centre filled lollipops, Mini Bum chewing-gum filled hard candies and Crakeñas crackers. Its presence on the African continent grew from alliances with distributors, such as Habibo Group: a steady Malagasy ally since 2013. And the people of Madagascar have made Colombina’s Bon Bon Bum lollipop a star product!

Colombina has set its sights on expanding its brands more across the continent, particularly into Mozambique, Zambia, Malawi, Uganda, Kenya, Rwanda and Ethiopia. So, our company is putting out the call to any major importers and distribution heads able to handle national wholesale coverage throughout East Africa.

For more information, please contact our African-markets Commercial Manager: MARIO ANDRES JORDAN mjordan@colombina.com WhatsApp: (+57) 314-894-4579

www.colombina.com/ corporativo/en/index.php

HABIBO GROUP “The Group’s distribution network “FORTUNATELY, EVEN DURING THE WORST OF supplies more than 60 high-quality THE VIRUS, HABIBO WAS ABLE TO MAINTAIN family brands at the best prices to ITS ACTIVITIES, KEEP ITS WORKFORCE IN consumers covering Madagascar’s 22 regions and 33 countries across the EMPLOYMENT, AND HOLD ONTO THE DEMAND world,” Karmaly continues.

FOR ITS PRODUCTS IN ITS OPERATING REGIONS” “This is why our company motto is: The best for you.”

Collectively, Habibo employs 600 slowed companies in their tracks. For worst of the virus, Habibo was able individuals and focusses on the food Karmaly, the pandemic significantly to maintain its activities, keep its and beverage industry in line with over reduced business for the company. workforce in employment, and hold 50 international brands.

“COVID-19 made planning difficult onto the demand for its products in its for the company and has considerably operating regions,” Karmaly says.

CHALLENGES AND impacted our sales; they have not Another issue faced is that such an OPPORTUNITIES been following a steady trend. And on industry requires an environment of The events of 2020, paired with the top of this all marketing activities were long-term stability in order to thrive, nation’s recent history, have been completely ceased. The effects of the and several political crises that have significant factors which have slowed virus meant that we could not directly occurred within Madagascar in the Madagascar’s growth. address our customers,” Karmaly past decades have potentially limited COVID-19 has brought industries explains. this development. across the board, and indeed across With the pandemic still very present, An example of this was the 2009 the world, to a halt. The logistical the growth of Madagascan exports Malagasy Crisis that lasted almost a adaptations required alone amid new has been slower than desired. year and saw a split of national control safety and restriction practices have “But fortunately, even during the between the government and an

FOOD & DRINK

SUPPLY CHAIN FOCUS Habibo keeps strong relationships with its supply chain partners, focusing on shared goals beyond the standard pricing and transactions that form the norm of these relationships.

For a few years now the company has been a worldwide distributer of many international brands. It is due to the professionalism of its long-term partnerships that it has achieved this ability and status.

Habibo values long standing supply chain partners above all, and strives to maintain and expand these relationships to further the mutual benefits all parties involved.

aspiring faction vying for power. This crisis disrupted industry development across the board and threw into question whether Madagascar was (and still is) a nation reliable and stable enough to invest into its aspiring industry.

However, despite the pandemic and politically related challenges, Karmaly insists that the optimistic future plans of the company will be based on the needs of the market, the needs of the Malagasy people, and local pricing analysis. Madagascar export trade is expanding and reaching out for opportunities where they present themselves. Despite its past disruptions, the chance to develop and move forward in the exportation industry is a very viable and attainable goal.

“Investing in Madagascar is an exciting challenge despite all risks because the market is very responsive,” Karmaly adds.

He ends on a positive note regarding the opportunities the company provides to the Malagasy people.

“We have expanded our reach in society, helping out the local communities at least once per week,” the CEO says.

“As part of this outreach programme, the company decided to cover the tuition fees of the 20 best students coming from rural colleges for the next three years to take them up to their exams. This is aimed to increase youth integration for those who will end up potentially leading their own businesses and moving our country forward.”

As for future plans among the highs and lows of the past year, Habibo Group aims to maintain its position as a leader in the FMCG sector through its existing practices of best quality, availability, and priced products.

The wider African market sits in the company’s sights as a future industry to expand into, and all the while the firm seeks to maintain a healthy and attractive working environment for all stakeholders.

HABIBO GROUP Tel: +261 32 27 000 07 www.habibo.mg

Africa Outlook issue 87 | 67

ALLTERRAIN SERVICES GROUP (ATS)

Anyway.

Anyhow.

Anywhere.

ATS provides specialist facility and hospitality services to remote sites in Africa, taking on the most logistically difficult projects in the continent’s remotest corners Writer: Dani Redd | Project Manager: Joshua Mann

T

he African continent holds 30 percent of the world’s mineral reserves, including diamonds, gold and uranium, alongside significant oil and gas reserves. Before a mine is established, companies must prospect for mineral deposits and then conduct a preliminary exploration study.

All this requires temporary infrastructure – accommodation, washing facilities and catering for employees – which has to be set up and later disassembled. For many mining companies this can be problematic, as many exploration sites are in remote locations, near geographical borders or up nonexistent roads.

Enter Allterrain Services Group, or ATS, which was initially founded in Ghana to provide specialist camp management services that includes camp management, catering, maintenance, cleaning, groundskeeping, gardening 68 | Africa Outlook issue 87

and landscaping, energy optimisation, security services, supply chain solutions, logistics and facility designs to exploration camps around West Africa and the Democratic Republic of Congo.

From the beginning, it took on the most logistically difficult projects, expanding into a vast pan-African operation as the mining industry developed across the continent. It now has a diverse, highly-qualified international workforce of over 3,500 employees.

“We have worked in the most remote locations in Africa and have overcome every obstacle the continent can muster,” proclaims Kobus Engelbrecht, Group Operations Executive.

Engelbrecht, who has a career background in hospitality management, had always been interested in working in remote site operations. He began his career with ATS as Senior Accommodation Manager in August 2011, and rapidly rose through the ranks until he became Group Operations Executive in 2018.

GLOBAL STANDARDS, LOCAL EMPOWERMENT And for Engelbrecht, one of the key factors differentiating ATS Group from the competition is the nurturing relationships it cultivates with its clients.

MINING

Desire to serve our customers Since 1936

ASAS Group of Companies is one of the oldest and biggest business groups in Tanzania. The mother company which was formerly known as A. S. ABRI Transporters was established in 1936. As time went on and services were expanded, ASAS was formed in 1978 as a group of companies that went beyond transportation and cargo services.

Our numerous accolades can be attributed to our dedication to our personal philosophy – that everything we do, however big or small, be done to the utmost quality.

Transport

Dairy Real Estate

Dairy Farm Service Station

www.asasgrouptz.com

ALLTERRAIN SERVICES GROUP (ATS) “ATS is client focused and not only profit driven,” he says. “We understand the challenges our clients face at times due to market conditions and recently during the COVID epidemic; we want to be business partners and support the sustainability of our employees.

To do this we need to quickly adapt to change and provide the support needed by our clients.”

Another of ATS’s distinguishing factors, according to Engelbrecht, is the company’s simultaneous curation of local expertise and global standards.

COVID PREPAREDNESS Q: How has the COVID-19 pandemic impacted your operations and how have you responded?

KOBUS ENGELBRECHT: “ATS had extensive experience dealing with the Ebola pandemic in Sierra Leone, Liberia and more recently in the DRC. We were therefore able to quickly adapt our protocols based on global health practices for COVID and commence immediate staff training, and implementation with our clients at a very early stage.

“Together we rolled out our COVID-19 pandemic management plan and our business continuity plan.

On many sites, social distancing measures, takeaways and packed lunches and intensive deep cleaning became part of the standard scope of work.”

72 | Africa Outlook issue 87

“The key is to understand the local market and the diversity of cultures to sustain business and enable growth within the communities we operate in,” he explains. “We believe in constant training and development of the local foundations that provide raw materials to us, through the constant focus on development it allows us to still provide a global standard service across our business.

“Monitoring our standards and processes, we provide global service offering to our clients and uplift our employees. We understand that our biggest asset in our business is our employees and the support from the local suppliers and communities.”

Suppliers play an important role in the company’s business activity, particularly on the catering side, as it is reliant on a continuous supply of fresh food.

ATS has a base of around 500 active local suppliers, ranging from SMEs to larger companies. All suppliers are formally contracted, and must conform to high standards concerning operations and legislation. The company keeps track of suppliers through a strategically orientated centralised function supporting all divisions to manage sourcing and procurement.

“OUR SUPPLIERS SIT AT THE MOST CRUCIAL PART OF THE VALUE CHAIN AND OUR COMMITMENT TO BUILD STRONG RELATIONSHIPS HAS BEEN KEY TO OUR SUCCESS”

MINING

ALLTERRAIN SERVICES GROUP (ATS)

Groupe Industrie et Distribution Created in 1993, the company ‘’Groupe Industrie et Distribution’’ (G.I.D) aims to buy, sell, trade in distribution, manufacture, packaging, transport, import-export, and general supply, all products and in particular all food products of animal or plant origin.

It specialises in the production of cold meats, cured meats and meat products based on raw materials of meat origin, and today presents itself as one of the main leaders in the West Afrincan market. GID has set itself the goal of providing its customers with healthy and quality products, meeting the applicable normative, legal and regulatory requirements.

Also, our strategy to achieve this sustainably is oriented around values essential to our sustainability, namely: • A lasting relationship of trust with our customers; • A culture of ethics and staff responsibility and; • Responsibility in environmental matters.

“Our suppliers sit at the most crucial part of the value chain and our commitment to build strong relationships has been key to our success,” Engelbrecht says.

ATS wants to give something back to its suppliers, which it does through business development initiatives as part of its Legacy Program, the embodiment of its Environmental and Social Governance (ESG) objectives.

The Legacy Program uses a participatory approach to harness the potential of a community by integrating it into the ATS value chain.

Its main focuses are consumables, services market support, agriculture, social support and integration, training and development, and agriculture.

The method is mutually beneficial: communities benefit from social and economic upliftment; ATS benefits from a network of local suppliers; and 74 | Africa Outlook issue 87

it is also good for the environment, as working with local businesses results in a much lower carbon footprint.

“The program is central to our quest for equitable, inclusive and sustainable growth and development,” the Operations Executive says. “We focus on activities that yield maximum social impact and that result in powerful transformations and opportunities for growth and innovation.”

The scale of support provided is unprecedented – over the past decade ATS has invested more than $120 million into the communities it operates in.

In the last quarter alone, its legacy project spent over $6.3 million domestically. At its Alphamin Bisie Project site it provided a six month kitchen internship for community youth. Not only does the comprehensive training allow trainees

While relying heavily on the establishment of good practices related to international standards required in food. This is why GID is part of an IFS version 6.1 standardisation process.

infogid@gidci.com

ALLTERRAIN SERVICES GROUP (ATS)

THE MD’S VIEW David Hutchinson, ATS Managing Director “It has been another challenging year for Africa’s resource industry in the wake of subdued commodity prices, short-term volatility in select markets resulting in increased cost reduction pressure. ATS understands these constraints and we have continued to enhance our operating model, expand our service offering and importantly increase efficiencies in our supply chain and passed the savings onto our clients while remaining focused and dedicated to global standards and continued investment in the communities. In just over a decade, I’m proud to announce that ATS has invested over $100 million in the local communities we operate in. It is this commitment and ethos that defines who we are, strengthens our partnership with our clients and highlights our flexibility to adapt to these difficult operating environments.

“Since its inception in 1996, ATS has continued to grow in geographical presence, services and industry expertise. Now operating in 25 African countries, ATS offers the full suite of facilities management services to our remote site clients; from camp builds, catering, cleaning, procurement and security. Our successful track record reflects our commitment to innovation, integrated service offering, and a deep understanding that the ability to foster a healthy and productive work environment enables our clients to focus on what is important to them.

“As we continue to expand, we remain committed to our core values of high ethical standards, commitment to the communities in which we operate, paramount health and safety practices while delivering international expertise at global standards – Anyway. Anyhow. Anywhere.

“We are your partner in Africa.”

to improve their food preparation skills; it also places them in a talent pool for future vacancies.

It also launched a full scale menstrual hygiene management programme for Kiasa Secondary School students. It partnered with Bridge for Children’s Hope (BCH), Trylink and Happy Messiah Foundation for the development and launch of the Menstrual Hygiene Education Booklet, an education awareness programme and donation of reusable menstrual materials.

76 | Africa Outlook issue 87

This is only the tip of the iceberg.

From providing funds to help female orphans to donating thousands of seeds and seedlings to its various community agriculture projects, ATS’s support for local communities is profound, long term and far ranging.

LOOKING AHEAD Despite the difficult year the company has had thanks to COVID-19, Engelbrecht believes that its relationships with its clients have strengthened during these troubling times.

Kachema Meat Kachema Meat, based in Zambia, is a leading processor and supplier of meat products, including cattle, pigs, lamb, goat and chicken.

The relationship with ATS has evolved over time to the benefit of both parties – for example, the strict ATS standards on hygiene and safe food have been a motivator to improve Kachema hygiene standards and production methods.

“The remote sites of ATS have been a great challenge and incentive to develop a reliable cold chain from our factory to ATS sites, and this has contributed to further growth of our customer base and new destinations.

We have been a very reliable supplier to ATS from the start and aspire to further grow our deliveries to ATS in the future also outside Zambia.” – Arie de Kwaasteniet, Managing Director

www.kachema.com

MINING

If it’s Kachema...

You’re guaranteed the best!

Over the last 20 years, Kachema Meat has established itself as a household name for being one of Zambia’s leading meat suppliers.

From our abattoirs to state of the art factory, supported by a robust nationwide distribution network, our pride is in supplying local butcheries, retail supermarket chains, the hospitality industry and large canteen operators with good quality processed cattle, pigs, lamb, goat and chicken products.

Our consistent growth has been established on a set standard of strict quality control, driven by our people and focused on results.

Kachema is for the Zambian people by Zambians.

Main Office/ Factory Farm 288 A/D/1, Makeni Konga, Chilanga.

Head Office +260 969 412 597 sales@kachema.com

/kachemameat

www.kachema.com

And over the upcoming year, ATS will continue to focus on an important goal: to become the largest remote site and facilities management company in Africa.

The Operations Executive concludes the conversation on an optimistic note, suggesting he is looking forward to the months ahead.

“We want to continue providing high quality service in challenges environments and in difficult circumstances,” he says. “As our clients grow and expand jurisdictions, we are often pulled into new markets and opportunities.”

ALLTERRAIN SERVICES GROUP (ATS) Tel: +27 10 590 0300 commercial.manager@atsgroup.net www.atsgroup.net

Africa Outlook issue 87 | 77

BASIL READ MINING

Digging Deep Basil Read Mining aims to provide value and support to clients, suppliers and the communities surrounding its mining sites Writer: Dani Redd | Project Manager: Joshua Mann

78 | Africa Outlook issue 87

MINING

I

f one theme has emerged from business owners during the COVID19 pandemic, it’s the importance of teamwork – sticking together with colleagues, partners and suppliers.

And Basil Read Mining definitely presents a united front.

On a Zoom call, I am introduced to the CEO, Nathan Williams, and five of his colleagues: Ismail Moosa, the Finance Director; Safety Head Joel Masebe; Deon Rajoo, the Engineering Director; Anton Cilliers, Operations and Contracts Director; and Sandile Masondo, Business Improvement and Supply Chain Director. Despite the difficulties they have encountered over the past few months, the team

remains upbeat.

“Even with the impact it has had on our operations, our team has handled it very well,” Cilliers explains.

“The most difficult part has been the logistics – getting supplies, and spares and equipment across borders was hard. The operations onsite were running very smoothly, considering the restrictions. But our people are well-aligned on the operations front and it seems like logistics is slowly picking up, as borders are beginning to reopen,” he adds.

Basil Read is no stranger to difficulty, as even at the best of times, mining is a very challenging space to be working in.

Africa Outlook issue 87 | 79

BASIL READ MINING “It’s very, very competitive, especially in certain bulk commodities like coal and iron ore,” CEO Williams explains. “That’s really because we’ve seen price declines from exports to China over the last couple of years.

There are also a lot of challenges in terms of digitalisation.”

By this, Williams means that there is a necessity – perhaps even a pressure – for mining operations to invest heavily in technology, which helps them improve profit margins and efficiency.

However, there is also an argument that digitalisation for communities surrounding the mines results in economic retrenchment and fewer employment opportunities. Williams has embarked on a PhD to research this in more detail. “I believe we need to write a different story,” he says.

DOING MINING DIFFERENTLY Basil Read Mining is part of the larger Basil Read Group, which was established in 1952. It specialises in surface contract mining, including but not limited to drill and blasting; material handling which includes excavating, loading and hauling; in-pit water management; and trackless mobile machine maintenance.

It operates under two companies – one is Basil Read Mining and the other is the B&E (Blasting and Excavating brand), predominantly operating in the quarry space, but also working in civil engineering. A third subsidiary is Hytronix, a mining machine repair and maintenance company that looks after the machines deployed across sites and specialises in full machine and major component rebuilds.

CASE STUDY

VENETIA MINE Venetia Mine, based in Limpopo, is owned by De Beers, the largest diamond producer in the world. Basil Read Mining has been contracted on the project since 2008.

The mine’s original requirement was drilling and blasted spillage to be loaded and dumped at a central point and re-handled by their larger equipment to the mine dump.

“They have been transitioning to underground mining and we were supporting them in doing some open pit mining,” the CEO explains.

“It has gone on to such an extent that they don’t trust any other mining contractor and want to release more of that open pit mining to us as they make the transition to underground, and they are also considering allowing us to maintain some of their bigger machinery. We are currently doing assessments for them to take on a maintenance contract on their behalf for the remaining open pit machinery.”

Compass Logistics International The Compass Logistics International Group (CLI), headquartered in Germany, has over the last five years become an important player in the Sub-Sahara African mining and project logistics field. Represented with own offices in South Africa and Mozambique, we offer bespoke transport and logistics solutions to some of the world’s largest mining, oil & gas and construction companies.

CLI has a strong pedigree in moving large machinery, from stackerreclaimers and a ship-loader for the Richards Bay Coal Terminal to dump-trucks, excavators and dozers to mines in West Africa, or mill shells to new copper mines in the DRC. We also specialise in mining re-supply logistics to large mines in Mozambique, where we handle the entire in-bound supply chain through our warehouse close to Johannesburg, South Africa. We provide services such as expediting, order quality and quantity checking, crating and buyers’ consolidations in addition to airfreight, seafreight (LCL and FCL), airfreight or ship charters from any origin in the world to and from destinations in Africa.

Over the years we have built up a large fleet of own trucks ranging from small LDVs, 8-tonners, tri-axles and super-links to step-decks, extendable trailers and low-beds. Our handling equipment includes our own container reach-stacker and truck-weigh bridge in addition to a large fleet of lift-trucks of all sizes.

Let us become an extension of your logistics team and forge a long-term partnership with you for mutual growth and success. Please contact us at enquiries.jnb@compasslog.com

www.compasslog.com

80 | Africa Outlook issue 87

WE GO THE EXTRA MILE

SPECIALISTS IN: MINING LOGISTICS PROJECT LOGISTICS AIR & OCEAN CUSTOMS CLEARANCES REPAIR & RETURN enquiries.jnb@compasslog.com

BASIL READ MINING

Basil Read Mining owns more Atlas Copco and Epiroc drills than any other mining operation in Africa

Basil Read Mining Group currently operates in South Africa and Namibia, Botswana and Lesotho. It works on various commodities, including diamonds, copper, phosphates, zinc and copper.

“We pitch ourselves in the hundred tonne dump truck market; that’s a nice market to be in because it’s a relatively easy machine to move up and down,” Cilliers says. “You don’t have to disassemble and put on two or three trucks to move; you simply put it on a lowbed and move it to another site.”

“We have about 60 100-tonne trucks,” adds Rajoo, the Engineering Director. “In total, our fleet is around 300-strong. Currently, we also play with 200 and 300 tonne excavators, and the future looks bright for the bigger machines.”

“And we are the biggest owner of Atlas Copco and Epiroc drills in Africa – we have around 70,” Cilliers chimes in.

But it’s not just its equipment and fleet size that differentiates Basil Read 82 | Africa Outlook issue 87

Mining from the competition.

“What really makes us different is our people. Everyone has access to quality equipment like Epiroc,” Rajoo says. “For us it’s all about the culture and the people that exist within Basil Read. We are driving towards developing strong leadership within the business, and everyone is along for that journey. Our people make the difference and will drive our competitive advancement forward.”

Each employee has their own career development path, even those in more junior roles. For example, B&E recently initiated a Learner Blaster Progamme – training 35 of its employees to become qualified civil and open-cast blasters – and a Graduate Programme, providing mining and mechanical engineering students with first class experience and training, allowing them to become experts in their field of study and considering them as full-time employment candidates.

“They can actually set up a career

over 10 to 20 years with Basil Read; there are few companies that can offer that. Because we operate in different geographical locations we can give people exposure to different operations and technologies. It’s a big differentiator,” the CEO explains.

Basil Read is also a certified Level 3 B-BBBE employer, scoring particularly highly in the areas of skills development and enterprise and supplier development. In fact, in March 2020 Basil Read received an Oliver Top Empowerment Award, South Africa’s most prestigious awards for transformative leadership, shown through vision, innovation, leadership and affirmative action.

Employee wellbeing is of paramount importance to the company. Two years ago it established an in-house occupational health clinic that provides employees with basic medical evaluations, alongside other services such as wellness days, counselling and HIV/Aids testing.

MINING

BOSANA GROUP (PTY) LTD

As a black emerging mining contractor of choice, Bosana was formed through a Musina & Pretoria Baobab Group company, as a Basil read enterprise development beneficiary, a Mokopane Based company specializing in civil and mining supply, known as Snac empire, and Gauteng-based Sabri Mining, with an African foot print on production management and Mining plant maintenance. This formation brought in expertise ranging across civil construction, mining exploration, Drilling and laud and hauling. Bosana is passionate about offering mining solutions in Africa, by Africans, for Africa. With the exception of various exploration and laud & hauling contracts, Bosana is currently active with Anglo Plantinum mokgalakwena, with Production blast holes drilling, Marula mine underground drilling and Modikwa mine underground drilling.

• • • • • • • • • •

Opencast mining services Underground mining services Quarryy mining services Mining consumables supply Engineering geology Underground water studies and borehole drilling Project management Load & Haul Crushing and Screening Drilling

www.bosanaholdings.com

Africa Outlook issue 87 | 83

BASIL READ MINING The free-to-employees wellbeing programe enables access to trained professionals in the legal, counselling, finance and mental wellbeing space.

This caring ethos extends beyond its employees to the surrounding communities.

“We have CSI projects in the communities where we operate,” Masondo explains. “For each project we engage in we have a predefined target or n-value of the amount we would like to spend in the community where we will operate. For example, we have one in Limpopo, whereby we support the surrounding communities

Q: HOW IMPORTANT ARE PARTNER AND SUPPLIER RELATIONSHIPS TO THE SUCCESS OF YOUR BUSINESS? SANDILE MASONDO, BUSINESS IMPROVEMENT AND SUPPLY CHAIN DIRECTOR: “Critical. For us to deliver what our clients expect of us we are directly dependent on our suppliers.

Currently, with COVID, there is an acknowledgement of the challenges and difficulties taking place. In this situation we see the strategic importance of our suppliers, and make sure they are always in a position where they’re making money. If they aren’t progressing, that will impact on us.

“We have programmes where we try to uplift SMEs. So we have deliberate actions and initiatives where we push some of the work to those small suppliers; we give them favourable terms, meant not just for Basil Read’s benefit, but for making a difference in the beautiful countries of Africa.”

84 | Africa Outlook issue 87

“ULTIMATELY, OUR VISION IS TO BE RECOGNISED AS A WORLD CLASS MINING SERVICES PARTNER, TO BE ABLE TO DELIVER ON THE TOUGHEST PROJECTS IN A SAFE, PRODUCTIVE AND EFFICIENT MANNER, TO VALUE OUR PEOPLE AND TECHNOLOGY AND STAY AHEAD OF OUR COMPETITION”

MINING with a sports facility in Alldays. We also support the local teachers, to ensure they provide quality education.”

“We do quite a bit of enterprise development that doesn’t just relate to mining as well,” Williams adds. “For example, we recently supported a local indigenous farming entrepreneur and put in irrigation systems for her.

And she actually won a prize as best farming entrepreneur in the state. So we have helped her establish a farming business that will continue long after we’ve left the mine.”

Another differentiating factor, according to the CEO, is that Basil Read Mining will always take on the toughest of projects, even when other contractors would long have left.

“On the one mine they had a flooding incident that nearly collapsed the mine, and that flooding continued for about 12 months. We were the only contractor who said, ‘we are going to support you; we’ll help you through this.’ We brought in our own pumping equipment just to keep it going,” he says.

EMBRACING TECHNOLOGY The company delivers these tough projects safely, with high productivity and outputs. One of the reasons it is able to do so is through its embrace of digitalisation and advanced technologies.

Basil Read Mining recently made the decision to invest into autonomous drilling and will be launching the first fully autonomous small drill on the African continent by early next year.

“We really are embracing technology as fully as we can, and this fully autonomous drill allows us to mine on steeper slopes,” the CEO says. “The equipment allows us to enable change in the design of certain mines, like Jwaneng, resulting in a $3 billion saving for them.”

The company is also using telematics on its trackless machines, to learn more about their efficiency levels and behaviour. Furthermore, and partially because of COVID, it has begun to do an increasing amount of

For each project Basil Read Mining engages in it allocates predefined budgets, depending on the community in which it operates

camera operation on its open pits.

“With COVID-19 it is really difficult to get onsite and into the mines, so we have been looking for the right technology to give us a view of the mine pit, equipment and operations as a whole,” says the Engineering Director. “Our target is to work remotely and change the norm. The way we worked six months ago to the way we will work in the future will be totally different, and that’s something we’re embracing as well.”

Even after the pandemic ebbs away, Basil Read Mining will continue to embrace digitisation and automation within its mines, to improve efficiencies within the contracts they take on.

And it intends to ensure that these digital improvements don’t result in economic retrenchments to the surrounding communities. The company is currently working on a project involving the donations and supply of IT equipment.

“We see the future as digital and want to take the communities around us on that journey towards equality,” Masondo says. “We can make a big contribution by sharing our pre-owned hardware with those communities so that they can start

utilising it and exploring technological opportunities.”

Alongside these noble goals, over the upcoming year Basil Read Mining desires to diversify beyond the commodities it currently mines, as well as expand its geographical footprint. It is currently seeking new work contracts across Africa and extending as far as the Middle East. A third aspect of its expansion strategy is to make an effective jump into using ultra-large equipment, which involves strategising how to be effective within that category.

“Ultimately, our vision is to be recognised as a world class mining services partner, to be able to deliver on the toughest projects in a safe, productive and efficient manner, to value our people and technology and stay ahead of our competition,” Financial Director Moosa concludes.

BASIL READ MINING Tel: +27 11 418 6300 communications@basilread.co.za www.basilread.co.za

Africa Outlook issue 87 | 85

T3 PROJECTS

Remaining Resolute Despite the disruption caused by the coronavirus pandemic, T3 Projects continues to deliver turnkey mining and construction projects safely and on time Writer: Dani Redd | Project Manager: Joshua Mann

86 | Africa Outlook issue 87

MINING

C

OVID-19 has had an unprecedented effect upon the global economy.

All around the world, thousands of SMEs have been forced to close, leaving millions unemployed. There have been disruptions across global supply chains, while social distancing measures have delayed mining and construction projects. Even so, Richard van den Barg, Managing Director of South Africa’s T3 Projects, remains optimistic.

“This year has certainly been a challenging one for the industry, but with challenges come opportunities,” he says. “Executing projects in remote parts of the African continent is something that we pride ourselves on doing well, and we see this as an exciting challenge.

“However, we have never before experienced the constraints arising as a result of the pandemic – lockdowns ranging from stage five to stage one, remote working, severe travel restrictions, closed borders, suppliers and fabricators being unable to produce, and more.

“These restrictions certainly forced us to think out of the box. We believe that current commodity prices are at levels that should promote expansion in the mining sector, so we look forward to getting busy again in 2021.”

T3 Projects is a multidisciplinary construction firm that is no stranger to overcoming difficult situations.

It was initially part of Group Five, one of South Africa’s largest construction groups, which entered business rescue in 2019 following years of stagnant economic growth and a reduction in spending on largescale public infrastructure projects.

However, after some tense months, in August last year Group Five sold its projects business to the Teichmann Group. The new entity, renamed T3 Projects, builds upon this expertise to provide turnkey solutions for construction and mining projects.

Africa Outlook issue 87 | 87

T3 PROJECTS

LEADERSHIP FOCUS

RICHARD VAN DEN BARG Richard van den Barg has been interested in construction and engineering from a young age, joining Group Five as a trainee in 1982.

“For the first few years of my career I spent time on site in various parts of South Africa, and eventually returned to Head Office to manage the estimating and proposals department. I was appointed a Director in 1994,” he explains.

In general, van den Barg was involved in the front-end of the business, including operational support, marketing, business development, estimating, tendering and contract negotiation.

“I took a sabbatical from Group Five for five years,” he continues, “during which time I managed a construction company based in Ghana, and then spent three years with another major listed construction group in South Africa. I re-joined Group Five in 2016, and moved across to T3 Projects as a Director and shareholder in 2019.”

“The fit within the Teichmann group has been rather seamless, and we are jointly pursuing projects with other group companies where there is synergy to do so,” the Managing Director says. “We enjoy the lean operational management structure, which gives us the ability to be agile and make swift decisions.”

TURNKEY PROJECT SOLUTIONS T3 Projects specialises in SMEIPP (structural, mechanical, electrical & instrumentation, piping and platework) construction in the mining and industrial sector, with a specific focus on the African continent.

It is headquartered in Boksburg, South Africa, but also has three permanent business hubs in Lubumbashi, Democratic Republic of Congo, Ouagadougou in Burkina Faso and Tarkwa, Ghana. These hubs function as regional springboards, not only mobilising projects but

88 | Africa Outlook issue 87

providing maintenance and support for existing mining operations.

“We currently have around 60 permanent employees, and our total headcount including all site resources at the moment is to the order of 500 people,” van den Barg adds.

The company has multiple capabilities within its ranks, including platework; piping and steelwork fabrication; painting and shipping; lighting installation; overhead electricity line installation; small civil works and earthworks. However, T3’s hallmark is how it delivers multidisciplinary, turnkey solutions for its clients.

“We manage the entire process of constructing mining and infrastructure projects, from receipt of construction drawings, through the supply, fabrication and delivery to site of all materials, plant and equipment required for construction using our in-house logistics expertise,” van den Barg explains.

MINING ai160500275598_CCG T3 Projects 78mm x 97mm R1.pdf

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Africa Outlook issue 87 | 89

1

10/1

T3 PROJECTS

“WE TRUST THAT THE WORLD WILL RETURN TO A DEGREE OF NORMALITY IN 2021 AND THAT THE PROJECT ENVIRONMENT IN THE COMMODITIES SECTOR WILL BOUNCE BACK” “We also facilitate the physical construction and erection on site and the cold-commissioning, making the plant ready for the hot commissioning and bringing into production.”

Customers who choose to do business with T3 Projects will gain the benefit of the company’s extensive project management experience, and will receive plenty of operational support in everything from procurement to the management of sub-contractors.

T3 Projects also adheres to high standards of quality control and has an in-house material tracking system to 90 | Africa Outlook issue 87

ensure seamless movement along the supply chain – meanwhile, all contracts are managed with strict adherence to health and safety procedures.

Alongside its many capabilities, T3 Projects stands out in a crowded field due to its adherence to ethical business principles. It firmly believes in safety first, so operates in accordance with ISO principles and all legal requirements. It provides social upliftment, training and experience through ongoing investment in its staff and outreach to local communities.

Further, the business has been built on foundations of integrity and

accountability, which permeates relationships with staff and suppliers, both of which are critical to the business’s success.

“Simply put, without the support of our fabricators and suppliers we could not succeed in this industry. Over the years we have built up many close relationships and we see our suppliers and fabricators as an integral part of this success,” says van den Barg, who goes on to describe some of the company’s recent project work.

Indeed, T3 Projects is currently involved in a number of construction developments. These include the

MINING Copper Project in the Democratic Republic of Congo.

“All of these fit within our sweet spot of capability, and are important for us to execute well so that the ‘new’ brand of T3 Projects can be promoted,” van den Barg comments.

LOOKING AHEAD

Wet Concentrator Plant (WCP) – B relocation project for Kenmare Resources plc at its Moma Titanium Minerals Mine in Mozambique.

“This has been a Teichmann Group collaborative effort, with TPH Mozambique responsible for the road works and civils, and T3 Projects completing the SMEIPP element of the project,” the MD explains.

“Our scope includes the construction of the infrastructure at the new mining location, and the relocation of the existing dry mining plant and overland piping. The move of the Wet Concentrator Plant, estimated

to weigh 7,100 tonnes, was completed in September under a separate contract with ALE / Mammoet. The work at Moma should be completed before year end.”

The company is also in the process of completing a supply and fabrication contract for the Shema Power Lake Kivu methane gas project, the work here consisting of shop detailing, supply and fabrication, corrosion protection and loading into containers of approximately 270 tonnes of structural steel, platework and bought out items.

T3 will also be undertaking a large E&I installation contract at the Kamoa

In the upcoming months, there are plenty of projects in the pipeline that the Managing Director is excited about, in countries where T3 Projects has operated in before – such as Mali, Burkina Faso and Guinea – as well as new territories such as Eritrea and Zanzibar.

“Our first priority is to see the back of 2020, and hope that we never experience another year like it!” van den Barg quips.

But despite the disruption caused by the pandemic, he remains positive about the months ahead.

“We trust that the world will return to a degree of normality in 2021 and that the project environment in the commodities sector will bounce back.

We have set some fairly aggressive financial targets to achieve, but we have a keen and eager team ready to undertake the challenges,” the MD says, bringing the conversation to a close.

“Our strategy is clear: we will ‘stick to our knitting’, executing projects within our capacity and capability with known customers and consultants, in geographies where we are comfortable operating. We will not be diversifying from our current product offering, and we will take care to not exceed our capacity to deliver a project safely, on time and within budget.”

T3 PROJECTS Tel: +27 10 060 3600 info@t3projects.com www.t3projects.com

Africa Outlook issue 87 | 91

ZZ2

Growing for the Future ZZ2’s farming roots date back to the 19th century, the van Zyl family continuing to honour its legacy while looking ahead to the future of an ever-changing agricultural sector Writer: Sean Galea-Pace | Project Manager: Donovan Smith 92 | Africa Outlook issue 87

Agriculture in South Africa, although incredibly challenging, is a very exciting space to be working in.�

Today, the agricultural sector in South Africa is regarded as one of relatively few industries within the country that can showcase real growth and potential for job creation.

AGRICULTURE

During the past two decades, the industry has transitioned away from mass large-scale intensive farming and the production of low-value food crops like wheat and milk to highvalue export products that include deciduous fruit, citrus and game.

The opening statement comes from Tommie van Zyl, CEO of South African

farming enterprise and fresh produce company ZZ2.

“Due to the unique diversity of our climate, we can grow many different crops,” he continues. “Despite South Africa being a water scarce country, we’re now at the forefront worldwide in managing our water resources.

By removing invader plant species,

careful planning of our resources and by employing the best technologies we have managed to overcome many of the water challenges facing us.”

And agriculture in the country is only expected to grow. The sector is anticipated to register a Compound Annual Growth Rate (CAGR) of 4.5 percent during the forecast period of Africa Outlook issue 87 | 93

ZZ2

Haifa Group

ZZ2 IN FOCUS

What makes ZZ2 different?

which must be innovatively created, conceived, invented and willed.)

VALUE PROPOSITION: ZZ2 has become an iconic brand in South Africa that people can associate with and have made an emotional connection with. The brand has become associated with quality, longshelf life and value for money.

VALUE CREATION WITH INTEGRATED OPTIMISED CONVERTERS IN THE VALUE CHAIN: ZZ2 has chosen not to go the vertically integrated route but has preferred to specialise in those functions it has control over. Production, packing and marketing are what it classifies as integrated converters.

Tommie van Zyl, CEO According to van Zyl, ZZ2 carries many unique characteristics which stand the firm apart: VALUES: Prudentia (Prudence) – consideration, wisdom and far-sightedness in dealing with its environment and stakeholders; Justitia (Justice) – honesty, impartiality, fairness, justness and integrity in its decision-making process; Fortitudo (Fortitude) – perseverance, fearlessness, determination, persistence and endurance in carrying out its duties; Temperantia (Moderation) – modesty, restraint, selflessness and tolerance as part of ZZ2’s daily drive.

AN OPEN SYSTEMS PHILOSOPHY: Other-directedness (Personalisation – the other is a precondition of the entity’s existence); Outer directedness (Decentralisation and exteriorisation); Horizontality (Democratisation and creation of opportunities); Mutability (The process of becoming: existence precedes essence); Discontinuity (Revitalisation: nonlinear, discontinuous processes.

Change in inevitable and must be managed); Irreversibility (The arrow of time is directed towards the future

94 | Africa Outlook issue 87

NATUURBOERDERY®: Farming with awareness and sensitivity towards the ever changing natural and human environment and adapting to this change with best efficiency in order to stay relevant and to prosper.

Stakeholder relations: ZZ2 has always believed in building long-term relationships with all its stakeholders.

The sum of the whole is greater than the sum of the parts.

DILIGENCE AND CONCENTRATED ATTENTION: The above two factors go hand in hand. ZZ2 has created a number of specialist support divisions which then allows the grower to put all their energy and attention into maximising their crop, and not to have to worry about all the ancillary farming functions. The specialist support services take care of these functions.

In this way ZZ2 has created highly specialised divisions that can render a world class service to its industry colleagues.

ECONOMIES OF SCALE: Due to the size of ZZ2’s tomato plantings, a huge infrastructure has been created to support this division. This has enabled newer products like blueberries, dates cherries and almonds to rapidly expand as the economies of scale in terms of the support services were already in place.

By combining vision and leadership, technology and innovation, Haifa Group has become the quintessential world expert in specialty fertilisers, delivering exceptional products.

A solid, stable company with a massive global presence Haifa Group delivers world class operation standards.

Passionately focused on farmers and their well-being, Haifa Group is committed to employees, customers, community and environment. With a pioneering attitude of creating inspirational solutions for a changing world, Haifa Group looks toward a future that embraces improving plant nutrition, efficiency, profit, convenience and environment.

www.haifa-group.com

2020-2025 – this follows a positive 2019 during which the price received by farmers rose by 4.3 percent alongside a five percent increase in the amount spent on agricultural inputs.

Van Zyl also recognises the plethora of workers at its disposal. “The pool of young, skilled and highly qualified employees available to us can only bode well for the future,” he says.

“We are already designing and building highly complex pack-houses using our own team of young skilled engineers. The diversity of cultures within South Africa also means that we can call on the talents and creativity of many different people within the country. We also have the ability (and have done so) to bring in some highly skilled individuals from the arms and mining industries to assist us in employing the best technology as these industries scale down their operations in South Africa.”

Indeed, van Zyl has a legacy of his own to uphold.

AGRICULTURE

Ask for The Best For years Haifa Group has been supporting ZZ2 with high quality, super-efficient fertilisers.

Haifa Group is proud to be associated with low impact, high purity plant nutrients that ensure healthy soils and plants. We believe that ZZ2 will grow from strength to strength for many years to come.

Haifa South Africa P.O.Box 1409, Brackenfell, 7561, South Africa Tel: 021 982 0309 | Fax: 021 981 7637 E-mail: Dawie.Fourie@haifa-group.com www.haifa-group.com

The family began their farming journey over 100 years ago. Today, van Zyl explains that the need for independence and a passion for farming has always been the lifeblood of his family for generations.

PROJECT SNAPSHOT

POME FRUIT ZZ2 has a partnership with VitroPlant South Africa, a plant biotechnology company situated in Somerset West, Cape Town, South Africa. “They operate a large modern ‘In Vitro’ plant tissue culture laboratory designed, custom built and equipped for large scale commercial tissue culture propagation,” explains van Zyl. “This partnership is going to enable us to bring new pome fruit cultivars to market far more quickly.”

“Willem van Zyl, our ancestor from the Netherlands, worked as a fresh produce farmer for the Dutch East Indian Company in the Cape of Good Hope,” he explains. “He later bought a farm in Franschhoek where he farmed with fresh produce, wine and livestock. His descendants left the Cape during the 1830s and gradually moved north. Eventually, they settled in the

region east of Polokwane in 1880.

“My father formed the present company in 1966. Tenacity, an eye for a business opportunity, a knack for communicating with employees in their own language and an unwavering self-belief stood him in good stead over the years. I grew up on the farm and it was always my dream to continue to grow the legacy my father had left us.”

Africa Outlook issue 87 | 95

ZZ2

PROJECT SNAPSHOT

CUTTING PESTICIDES With its Natuurboerdery approach to farming in mind, ZZ2 is collaborating with BioBee in order to farm in harmony with nature. BioBee’s biological control solutions assist South African farmers in growing quality fruits, vegetables and flowers that are free of chemical residues.

BioBee’s products, which reduce the use of pesticides for both conventional and bio-organic agriculture, are an indispensable element of a successful Integrated Pest Management program (IPM).

“This partnership helps us to live out our dream of using less chemicals and therefore providing our customers with safe, healthy and nutritious fruits and vegetables,” comments van Zyl.

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ZZ2 farms are primarily in the Limpopo Province where their sought-after tomatoes and avocados are cultivated. However, the firm also operates in the Western Cape, Eastern Cape, Gauteng, North-West Province, Mpumalanga and across the border in Namibia.

The enterprise also grows mangoes, onions, dates, cherries, apples, pears, stone fruit, almonds and blueberries.

The ZZ2 brand is well-recognised and possesses a proud history backed by a great customer value offering and superior economic value for all its stakeholders.

As a result of the South African economy being stagnant over the past few years, the enterprise decided to concentrate on superfoods that could be exported, a move which Van Zyl believes was essential.

“Our tomatoes and onions that are only destined for the local market were not showing any growth,” he explains. “Therefore, we decided to leave the hectares of the tomatoes and onions unchanged but to concentrate on improving the productivity of these crops.”

ZZ2’s portfolio has also been extended to include dates, cherries, blueberries and almonds. However, it is the avocado market that particularly

PROJECT SNAPSHOT

AVOCADO EXPANSION ZZ2 has teamed with Criterion Africa Partners (CAP) who possess access to large tracts of land in numerous parts of South Africa that are suitable to plant avocados. “CAP will be supplying the land while ZZ2 will supply the trees and intellectual property to grow avocados,” explains van Zyl. “The first 200 hectares of avocados have already been planted and we are in the planning stage to plant a further 500 hectares in the next year or two.

This joint venture, together with our nursery, is going to give us the ability to upscale our avocado plantings.”

AGRICULTURE

piques van Zyl’s interest.

“We’ve been farming with avocados since the early eighties, but we’ve always been hampered by the lack of planting material,” he explains. “We established our own avocado nursery a number of years ago and this has now enabled us to begin an expansive growth strategy.

“We are very positive regarding our avocados as we see the per capita consumption of avocados increasing on a yearly basis worldwide. Currently, South Africa only has access to Europe for its avocados. As South Africa is ideally placed to serve the east and far eastern markets, ZZ2 will be in a very good position once market access is gained to serve these markets.”

Another enabler for the future is technology.

With industries the world over beginning to digitise at scale, farming is no different, and van Zyl believes that embracing new technology is fundamental and will continue to have a growing impact.

“It is vitally important to embrace digital farming techniques and digitisation strategies in the agricultural sector,” he adds.

“Agricultural activities will continue to become more intense, detailed and have a greater emphasis on

PROJECT SNAPSHOT

ALMONDS AND CHERRIES ZZ2 has partnered with US-based firm Zaiger Genetics.

The organisation has licensed ZZ2 to sell the rights to the Independence Almond growing material in South Africa. Similarly, Zaiger Genetics has also allowed ZZ2 the rights to its low chill cherry varieties growing material in the north of the country.

ZZ2 has planted its own almonds and cherries and has licenced many farmers to also grow these crops. Due to the almonds requiring a lot of mechanisation, the licenced farmers together with ZZ2 will purchase the necessary machinery for harvesting and they will also invest in the necessary packing facilities. Today, South Africa currently only produces 10 percent of its almond needs, the rest being imported. Therefore, there are both local and export opportunities for almonds.

cost-savings. This will also lead to greater emphasis on effective resource utilisation and environmentally friendly farming practices as well as more effective packing facilities and increasingly optimised logistics flows.”

Looking ahead, van Zyl harbours ambitions of increasing the number of crops exported but stresses the importance of improving its current offering before extending its portfolio.

“We aim to become the preeminent supplier of avocados out of South Africa utilising the very early window we have to get into the market before Peru,” he says, bringing the conversation to a conclusion.

“We will continue to work with our government to get access to more markets especially in the East and Far East. We will probably not diversify too much further but rather concentrate on growing and improving on the productivity of the crops we currently have.”

ZZ2 Tel: +27 15 395 2040 info@zz2.co.za www.zz2.co.za

Africa Outlook issue 87 | 97

MUSIKA DEVELOPMENT INITIATIVES

Agriculture for All

Musika is committed to helping Zambia’s smallholders access vital agricultural technologies, financing and training initiatives, and making the agricultural sector more accessible and diverse Writer: Dani Redd | Project Manager: Donovan Smith

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AGRICULTURE

S

ince 2011, not-for-profit Musika has been supporting private investment into Zambia’s agricultural sector, focusing specifically on helping smallholders and Zambia’s rural poor.

It works according to the Making Markets Work for the Poor (M4P) methodology, which involves stimulating market systems so they allow greater involvement of the rural poor in economic development – in this case, by connecting smallholders

with agribusinesses and productivityenhancing technologies they would not normally have access to.

So far, its work has made a significant impact. Over 430,000 farmers across the nation are benefitting from improved access to capital and training, leading to an increased overall income of $45 million across Zambia’s smallholder farms.

When we spoke to Musika’s Managing Director Reuben Banda last year, we discussed the not for profit’s focus on

post-harvest support, the importance of crop diversification, and future plans of planting trees to mitigate the effects of climate change.

The Managing Director begins by catching us up on the occurrences of the past 12 months.

“The year 2020 started off on a positive note, with Musika’s investments more focused on implementing private sector-led interventions aimed at diversifying production for smallholders in order to increase their resilience,

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MUSIKA DEVELOPMENT INITIATIVES and safeguard their livelihoods against effects of climate change,” he explains.

It has also been working hard with its private partners to improve equal access to the market, by helping provide opportunities for women and

youth to access capital, technology and training. Finally, thanks to a good commodity harvest for the 2019/20 season, the agricultural sector looks set to be one of the few registering positive growth this year.

CASE STUDY

MEDEEM Musika is currently helping a company named Medeem – which has developed low-cost land rights documentation and survey products – to establish itself in the market. It plays an important role in introducing Medeem to traditional leaders who are committed to advancing the land rights of those in their communities.

“The vast majority of the population of rural Zambia lack formal recognition of their land rights,” Banda explains.

“94 percent of land in Zambia is under customary tenure based on informal agreements, and the number of farmers with formal title remains small, at four percent of the 1.5 million smallholder households, with women and the poor inevitably most disadvantaged.

“The inability of the poor to gain formal land rights is a major constraint to economic development. Without a recognised deed, title or lease, the poor cannot use their land to gain access to capital and also they lack the confidence to invest in long term land use decisions such as permanent infrastructure, resulting in poor production optimisation.”

However, between 2018 and 2019 Medeem helped issue around 6,500 parcel certificates (ParcelCerts) to smallholder farmers across six chiefdoms. This brings its total since inception to 14,000 – 30 percent of which have been issued to women.

Medeem also signed a memorandum of understanding with a commercial bank, allowing the ParcelCert to be used as an identity document, thereby improving access to finance for agricultural equipment.

Saro Agro Industrial Ltd Saro Agro Industrial Ltd, is a distributor and manufacturer of agricultural equipment with headquarters in Lusaka, and six branches and dealer network across Zambia.

Saro Agro Industrial Ltd supplies the following high quality, reliable agricultural equipment, including: TAFE, Landini and Kubota tractors; ploughs, disc harrows and planters; trailers suited to Zambian farming conditions; overhead irrigation; solar pumps and solutions; hammer mills; and motorcycles.

The company has technical teams to install, service and repair such equipment, as well as a healthy stock of spare parts.

Saro Agro Industrial also conducts training at installation and hand over of products to its clients/end users, and periodically conducts field training – some of this training is organised by Muskia, and the firm also invests heavily in R&D to stay abreast of industry trends.

www.sarozambia.com

“Musika’s partners offering asset financing benefited from the bumper harvest and recorded an upward trend around access to lease finance for various agricultural equipment,” Banda says – an opportunity which smallholders benefitted from.

COVID-PROOFING ZAMBIA’S AGRICULTURAL SECTOR The global coronavirus pandemic affected many sectors and industries, Zambia’s agricultural sector being one of them.

Musika conducted a study to assess the impact of the virus on agribusinesses and discovered that 84 percent had been negatively impacted by regulatory measures, their operations and revenue suffering.

Particularly affected were those offering financial services, input supply and environment services.

To help mitigate this, Musika created a $100,000 COVID-19 response fund to ensure business continuity, which

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AGRICULTURE

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helped 437 SME agribusinesses. As part of its CSR it also collaborated with government ministries to supply agrodealers with hand soap, sanitiser, footoperated hand washing equipment and masks. They were also placed in public areas – such as markets, aggregation points and abattoirs – with high touch points, accompanied by behavioural change messages in multiple languages.

“This intervention underscores the need for Musika’s corporate social responsibility (CSR) response, which aligns with and builds on Zambia’s current priority of supporting and strengthening its already vulnerable health and public system,” Banda explains.

However, despite significant disruption, the sector is proving resilient and may even record positive growth this year. One reason for this, according to Banda, was the recent adoption of digital finance.

“Digital finance, and particularly

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the use of mobile money, also offered great prospects for unlocking financial inclusion for rural communities and greater engagement of women in 2020,” the Managing Director explains.

“With the outbreak of the COVID19 epidemic in March, the use of ecommerce platforms registered positive results, with agribusiness utilising these to order stock delivered at their doorstep and transact in the midst of restricted movements.”

Another somewhat surprising result of the pandemic was that crops such as cassava were used as raw materials for ethanol production (which was used in sanitiser), which pushed up both the demand and the price of the crop, something that farmers directly benefitted from.

TRANSFORMATIONAL PROJECTS AND TECHNOLOGIES Despite the disruptive nature of the pandemic, Musika was able to continue working with smallholders

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and private sector partners to deliver interventions in the agriculture industry.

This year Musika has been stimulating the market to help bring a range of productivity-enhancing technologies – farm machinery, irrigation and effective business ideas – to small-scale famers.

“For farmers to get more out of their land they need to work more efficiently in carrying out their farm operations from land preparation, planting and harvesting by mechanising their farm operations,” Banda says.

“Additionally, the use of irrigation technologies enables them to diversify their production from the over reliance on rain-fed crops like maize to horticulture, and remain productive all year round, resulting in increased household income.”

This, in turn, helps climate-proof farms, meaning that in drought seasons their entire income won’t be destroyed by one failed crop.

Africa Outlook issue 87 | 101

MUSIKA DEVELOPMENT INITIATIVES In short, Musika’s current objective is to develop a vibrant agricultural technology sector, in which manufacturers and suppliers develop and market affordable and appropriate solutions for smallholder farmers. The technologies should be accompanied with relevant training and advice, after-sales support and accessible finance solutions so it can be used by a broader range of farmers.

Increased smallholder productivity will not only benefit individuals, but uplift communities and drive economic development within the country.

According to the Managing Director, one of the most transformational technologies this year has proven to be the two-wheel tractor. Musika supported an initiative to make twowheel tractors (TWT) more accessible to women farmers by using a subsidy.

In last year’s pilot study, 16 out of 20 tractors were purchased. But the

number rapidly increased – 49 have been sold to date.

On this initiative, Musika has been working with an asset financing company, AgLeaseCo, and agricultural manufacturer SARO Agri-services, which has a target to reach out to 150 women farmers across Zambia to help provide affordable TWTs. “This initiative is empowering for women, the majority of whom are engaged in back breaking manual labour, as it enables them to work more efficiently and leaves enough time available to engage in other economic activities,” Banda says.

“The women also have a business opportunity by using the equipment to provide tillage services to others within the local community at a fee, and part of the income generated is channelled towards loan repayment.”

Another project Musika has been working on this year is the Trees on Farms initiative. The initiative

is an integral part of one of its key focus areas to stimulate tree-based production systems on smallholder farms as a way of counteracting deforestation. Agriculture, especially arable land and mono-cropping, causes the destruction of a quarter of a million hectares of forest every year in Zambia, which results in erosion, loss of biodiversity and worsening of air quality.

However, tree crops and other perennials represent an opportunity to counteract deforestation, and furthermore, are more resilient to climactic variations.

“Musika is working with private sector partners to develop commercial nurseries and carry out sensitisation, training and distribution of tree seedlings,” the Managing Director explains. “There is more work to be done in the development of market oriented smallholder trees on farms systems such as addressing issues

AGRICULTURE

The agricultural sector necessitates forming strong, trusting relationships with both partners and suppliers

Musika is working with private sector partners to develop commercial nurseries and carry out sensitisation, training and distribution of tree seedlings

surrounding securing land tenure and use conditions; supportive policy conditions; access to and knowledge regarding the management of quality germplasm; tree management skills and information; and adequate market information and linkages.”

The organisation’s numerous interventions into the agricultural sector necessitate forming strong, trusting relationships with both partners and suppliers. Musika procures inputs for all its interventions, receiving funding support from the Swedish Embassy in Lusaka, the Norwegian governments NORAD, Irish Aid and WorldFish, following a competitive procurement process to attract the best partners.

“In terms of partnerships, Musika’s resources are not just spent or donated; all of Musika spending on activities is done on a cost-share basis with the partners to de-risk the initial cost of their investment and ensure a sense of ownership of the intervention by the partner,” Banda says.

Over the upcoming year, Musika aims to continue with its transformational initiatives, especially in widening participation for women farmers and enabling them to benefit from agricultural opportunities and technologies.

“Great strides are being made by Musika and its private sector partners in pushing equal access and control of productivity enhancing innovations available in the market space, with women and youth inclusion top of the agenda in poverty eradication,” Banda explains.

Musika will also be continuing to help smallholders diversify production in order to achieve profitability.

“On the aspect of diversifying smallholder production options, investments in the fresh fruit and vegetable (FFV) markets and aquaculture are expected to gain traction and contribute to better incomes and resilience at household level,” the Managing Director concludes.

MUSIKA DEVELOPMENT INITIATIVES Tel: +260 211 251371 or 250355 info@musika.org.zm www.musika.org.zm

Africa Outlook issue 87 | 103

SOLOMONS – ST HELENA

Big Business

Small Island Solomons is a vibrant, diverse company of 24 business units that has been running for 230 years on one of the world’s remotest islands Writer: Dani Redd Project Manager: Josh Hyland

S

t Helena – a windswept, volcanic island lying just under 2,000 miles off the West Coast of Africa in the South Atlantic. Its neighbour is the world’s remotest island, Tristan da Cunha. But despite its isolated location, St Helena is saturated with history.

The island was first discovered in 1502 by Portuguese navigator João da Nova, as it lay on the route of the Trade Winds, the route ships used to take when going around the Cape of Good Hope and across the South Atlantic. The Portuguese used the island as a rendezvous point on long voyages – ships could stop here to re-provision and sick sailors could wait for a passage home.

However, the Portuguese never set 104 | Africa Outlook issue 87

up a permanent settlement on the island, and by 1657 the British East India Company had annexed it, built a fort and levied a tax from all ships that docked. The British Crown later took over its management and began a tradition of exiling prisoners to its remote shores, the most famous of whom was Napoleon Bonaparte. St Helena has received several other illustrious visitors over the years, including Charles Darwin, who was fascinated by the island’s unique endemic flora and fauna.

These days, the island has a population of 4,500 ‘Saints’, made up of expats, islanders who moved away and then returned, and those who never left.

Mandy Peters, CEO of Solomons, belongs to the second category.

“St Helena is home to me – whilst I have worked abroad for some years, (as is often the case with many St Helenians), it was inevitable that I would eventually return to settle in St Helena at some point,” she says.

RETAIL

Africa Outlook issue 87 | 105

SOLOMONS – ST HELENA

Meihuizen International Meihuizen International, established in 1983, is one of the largest independently owned logistics companies in Cape Town, with a reputation in the marketplace for consistent excellence.

We have had the privilege of being associated with St. Helena Island since 1973 as a key partner to the operations of Solomon & Co., by providing logistic and procurement support. Our journey started on the RMS St. Helena and since her retirement we have continued with monthly shipments to the island on the M/V Helena with shipments carrying anything from retail to agricultural equipment.

Bamboo Hedge Coffee Plantation “It is unique to live in St Helena – although likely many locations could claim the same. St Helena grows on you over time and is multi-layered, revealing itself increasingly from an initial impression as a destination to visit, to the resilience required to achieve goals in a challenging working environment and capped by the many benefits as a home environment,” she continues.

“Working in St Helena requires strength of resolve and perseverance, an ability to be resourceful and an innovative approach to overcoming constant challenge due to the limited customer base, logistical difficulties and limited resources. Yet living in St Helena offers a wealth of positives which that same isolation delivers, in terms of the warmth of a closeknit community, the opportunity to reconnect with nature within minutes due to its proximity and the time and space for reflection.”

After five years of working in senior management on the island, Peters saw an advertisement for a CEO position at Solomons, which sought someone interested in people-focused leadership and offered a diverse range of business interests to manage. She was delighted when she got the job.

106 | Africa Outlook issue 87

A FASCINATING LEGACY Solomons has been in business for 230 years and has long been a household name on the island.

Its story begins with Saul Solomon, a boy travelling to India from the UK with his parents – upon falling ill, he was left on St Helena by his family to perish. But Saul survived and in 1790 started a general store. By 1800 he had opened a boarding house and was charging 30 shillings a day. Napoleon’s arrival on the island caused the population to double to 8,000, and Solomon began to specialise in luxury and commercial trade.

“Today the Solomon family no longer holds shares in the company and whilst the majority shareholder Great Peter Nominees holds for the St Helena Government (SHG), there are indications that SHG could divest itself of its shareholding in the future,” explains the CEO. “Other shareholders are largely local and Solomons is truly an island company.”

The company’s interests in mercantile and property development continue to endure, but the business portfolio has naturally expanded and diversified over the years. It now has a portfolio of 24 operating units. While over 50 percent of its turnover comes

Over the years sound friendships have been created, never affecting the professional approach we apply to them as valued clients – we deliver a personalised service, attending to all customs related documentation on their behalf and have in-person-onquay supervision of the loading of all their cargo.

We also played an instrumental role for the St. Helena Government in shipping the construction equipment for the airport project and feel privileged to be part of history as the first plane touched down on St. Helena airport in 2017.

Although we have been involved with the Island of St. Helena for 47 years, our experience includes involvement with Antarctica, Ascension Island, Tristan de Cunha, Falklands and Gough Island. Our other business units include ANGOLA SOUTH LINE, EAST AFRICA LINE and UNIATLANTICO South Africa, servicing East and West Africa.

As one of South Africa’s leading logistics agents, we offer sophisticated services in all major locations throughout the world. We are your one-stop bespoke solutions for procurement and shipping around the world. The loyalty and motivation of our team enables us to guarantee our clients a truly professional service at competitive rates.

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+27 21 440 5400

www.meihuizenint.com Angola South Line

SOLOMONS – ST HELENA

Q: HOW DOES SOLOMONS CONTRIBUTE TO ST HELENA? MANDY PETERS: “The company makes a significant contribution to St Helena, supporting an allisland workforce and enabling food security on the island along with other importers, wholesalers, retailers and local producers. We provide a significant market for the goods and services of other local businesses and individuals, last year making payments of £639,485 to other local businesses and individuals.

“We also facilitate land leases and licences to occupy for 64 local businesses or individuals enabling them to develop local production in vegetables and livestock on company lands through our Prosperity through Partnership approach.

“Over the years we have contributed considerably to the built heritage of St Helena through sensitive refurbishment of our historic properties. We have also contributed directly to local charities and non-governmental organisations through our modest sponsorship and donations programme. We take our corporate social responsibility seriously with our company Purpose being ‘Serving our customers through sustainable business for the benefit of our company and island’.”

108 | Africa Outlook issue 87

from wholesale and retail operations, it also provides bakery products, beef and pork for the majority of the island. Meanwhile, its St Helena coffee has gained international prestige – made with homegrown green-tipped Bourbon arabica beans imported from Yemen hundreds of years ago, it is exported as a luxury product to Japan, Romania, Belgium, France, UK, Germany and the USA. Alongside this, Solomons also provides a range of services in shipping, travel, freight, stevedoring and wholesale and retail fuels, together with resourcing contracts for airport operations. It offers an insurance portfolio of covers, whilst also providing small scale building, electrical and auto shop services.

Another string to its bow is its travel agency – it helps tourists arrange flights, hotels, accommodation, car hire and customised itineraries.

Across its 24 business units, the company supports over 200 employees, making it the largest employer on the island after the St Helena government. Indirectly, it supports many more.

“All local businesses are interconnected to some degree. Whilst there is a competitive environment with businesses all vying for market share in a very small customer base, there is also respect and support for partner and supplier relationships, as we are reliant on each other and generally value each other in a unique way perhaps not ordinarily associated with business relationships,” Peters says.

Alongside supporting its island community, the company stays true to its roots by sensitively restoring historical buildings and artefacts, while striking a balance with the tasteful modernisation its customers require.

For example, in 2016 the Solomons Works Team refurbished the company’s Malabar property (a late 19th century Grade II listed building) from a vacant warehouse to become

AW Ship Management AW Ship Management’s experience in serving St Helena and Ascension Islands dates back to 2001. We are proud of the part we played in supporting the RMS St Helena, and we are pleased to be able to provide a reliable cargo service via the MV Helena.

AWSM and our agents on St Helena, Ascension, and in Cape Town are always on hand to assist with shipment or passenger queries and we’re happy to discuss our services to the Islands – whether for you, or your cargo.

shippingagent@solomons.co.sh

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Below is an overview of the services we can provide for you.

Sourcing and procurement Whatever your needs, we can purchase and ship to you any goods that you may require. These can range from internet orders to plant machinery, vehicles and everything in between!

Shipping and freight forwarding Any goods you wish to ship through us can be delivered straight to our UK warehouse for onward shipment.

Again, these can range from online shopping orders to personal effects, electrical appliances and building materials etc.

richardjamesinternational.co.uk

RETAIL

AW Ship Management are proud to operate the only scheduled marine cargo service serving both St Helena and Ascension Islands. We have been committed to serving the Islands for nearly twenty years, so we and our agents can assist with any requests.

St Helena shippingagent@solomons.co.sh

From our warehouse facility in Bristol, UK, RJI is able to offer the following services to the South Atlantic:

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RJI are proud to be the largest independent shippers to the South Atlantic Islands of:

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With over thirty years experience of providing procurement, shipping and logistical solutions to local governments, public companies, large and small businesses and private individuals alike.

RJI offer a monthly consolidated container service to St Helena via Cape Town, South Africa where they are loaded onto the MV Helena for shipment to the Island. The containers have a transit time of approximately two months from leaving our warehouse in Bristol to arrival in Jamestown. RJI also offer a weekly airfreight service for the more urgent non-hazardous goods.

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Africa Outlook issue 87 | 109

SOLOMONS – ST HELENA

Procurement team

a long journey by sea. But then an airport was built, and flights from South Africa signified a momentous opening up of tourism opportunities for the island.

“St Helena was still in its infancy in developing a commercial tourism product when the COVID-19 pandemic struck,” Peters says. “Cruise ship visits to the island were suspended; there have been no commercial flights since March 21, 2020, with the inevitable downturn in commercial tourism development.

“St Helena has, however, as a result of these measures, remained COVIDfree to date and the company is fully supportive of the protective measures and indeed has been at the forefront in protecting its employees through engagement with local authorities in support of COVID-19 prevention measures.”

According to Peters, the majority of the islanders support preventative measures – despite the damage to the economy, an outbreak of COVID-19 could have a devastating effect on an isolated community with limited medical resources.

Solomons’ shipping and travel

the hub for its shipping and insurance businesses. The exterior of the property was restored to maintain its heritage features; the corrugated iron shutters were removed from the windows and disabled access incorporated into the entrance design.

The interior was sensitively renovated, retaining the character of the huge girders and columns, re-using the original flagstones, exposing original stonework behind lighted panels and adding suspended lighting.

COVID-19 AND HOPES FOR THE FUTURE Over the past couple of years, Solomons has also been working on a tourism offering. Until 2017, any visitors to the island had to make 110 | Africa Outlook issue 87

Half Tree Hollow supermarket

interests have inevitably been affected, especially its airport operations resourcing contracts.

Earlier in the year, its supply of merchandise from the UK and South Africa was disrupted, although this has since stabilised. This bought home the importance of partners and suppliers, upon whom the company is almost entirely reliant.

“With limited local production on the island and with literally every item required for daily living needing to be imported, the support of our external agents and supply partners, particularly our partners and suppliers in South Africa, has been crucial to sustaining day to day life in St Helena,” the CEO says.

“Our agents, in particular the Master and crew of the MV Helena and Meihuizen International, were and continue to be invaluable in their support to ensuring the logistics of our supply from South Africa.”

Even before COVID-19 hit the world, Solomon’s Mercantile procurement team works with what Peters refers to as a ‘logistical nightmare’ – the island’s freight service operates once a month between South Africa (Cape

RETAIL

Cargo operations

Senior management team Town) and St Helena, with UK imports transhipped to Cape Town to connect with the freight service there.

“Our team orders goods today that customers will want to consume in three months’ time whilst balancing one shipment on the water already and one in the warehouse,” Peters says. “For any deficit in supply there is no option to request a next day delivery of a consignment of goods! Consequently, our supplier and partner relationships and their understanding of our logistical challenges have been established over years and are invaluable to our day to day survival.”

In the year ahead, Solomons’ immediate concern is to develop key

business interests that will allow it to navigate through this period, focusing on the limited customer base currently available to it. In order to do so, it will need to innovate and re-engineer itself.

“Continuing to contribute to the socioeconomic fabric of society in St Helena and fulfilling our purpose will be vitally important to us and we will strive to maintain our workforce, to provide opportunities for our employees to develop and grow, to enable us to sustain our service delivery to customers and to maintain our considerable presence in the local business environment, through these difficult and turbulent times,” the CEO proclaims.

But despite the difficulties

encountered by the pandemic, Peters remains positive about the endurance of both the company and the island.

She hopes that once COVID-19 is controlled, the resumption of tourism will enable St Helena to become a destination of choice once again.

And there’s another exciting development on the horizon – after many delays, St Helena looks set to be connecting to Equiano, a new fibre-optic subsea cable. This will give inhabitants access to a fast broadband connection for the first time, which will provide a wealth of social and economic benefits.

“Specifically for Solomons, we see potential for developing online systems, utilising cloud based storage to reduce costs and achieve efficiencies, exploring greater capacity and capability to enable innovation in our service delivery and to open new doors to new opportunities we perhaps have not yet even thought about,” Peters says.

In other words, St Helena is on its way to becoming a globally connected island with a rapidly digitising economy and a growing tourism market. Opportunities for investment are ripe, and Solomons is interested in partnering with like-minded businesses or individuals looking for a unique location from which to operate.

“Long-term success in business is achieved not by one leader but through the collective input of a diverse and engaged team of people,” the CEO explains.

It is clear that whatever happens on the island, Solomons will be there to help through the good times and the bad.

SOLOMONS – ST HELENA Tel: (+290) 22380 generalenquiries@solomons.co.sh www.solomons-sthelena.com

Africa Outlook issue 87 | 111

ITHALA SOC LIMITED

Building Financial Freedom By providing financial and banking services to those who need it, Ithala SOC Limited is playing its part in the development of South Africa’s KwaZulu-Natal province Writer: Marcus Kääpä | Project Manager: Sam Love 112 | Africa Outlook issue 87

FINANCE

An institution such as Ithala SOC Limited must implement sound, attainable and competitive, client-centric strategies in order to remain relevant.�

As Dr Thulani Vilakazi, CEO of Ithala alludes to in this opening statement, the South African banking and finance industry is undergoing change. New

businesses are taking the opportunity to establish themselves in what is an increasingly digitised environment where cash is no longer king.

As digital methods dominate financial transactions and consumers become more demanding, the ability to keep up with customer focused needs by implementing various

innovations does not just become a trend, but instead a necessity.

Digital solutions, low-cost operating models, and supply chain integration have shifted to the top the agenda for every business in the sector.

Institutions such as non-bank financial companies are pursuing various aspects of these developments, Africa Outlook issue 87 | 113

Put your business where it needs to be.

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On Yep!, your business can sell products and services that will help broaden your customer base and increase sales. That’s what growth is about, right?

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Benefits of Yep! • Trust – Yep! was born from the iconic and trusted Yellow Pages.

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• Create your own branded online store, list their services and find new customers.

• Post a service requirement or new business bid request.

ITHALA SOC LIMITED

A CAREER IN FINANCE Dr Vilakazi was chosen by the first African-American to chair General Motors USA, the late Dr Leon Sullivan, as one of the Top 30 Best and Brightest Bankers in Africa and attended intensive training at Chase Bank New York, now JP Morgan Chase – the third largest bank in the US, and Mellon Bank in Philadelphia.

Vilakazi holds a Bachelor and Honours degrees from the University of Zululand, a Certificate in the Art of General Management (Wits Business School), a Diploma in Business Management, US Banking Practicum Certificates and an MBA from Henley Management College UK. He obtained a Doctor of Business Leadership at UNISA School of Business in the field of banking mergers and acquisitions.

As CEO of Ithala SOC Limited, Dr Vilakazi seeks to respond to the needs of a diverse customer base through tailor-made product offerings as part of a broader “Build the Bank” strategy. The organisation aims to overturn the perception that wealth creation for the masses in South Africans is unattainable and an exclusive privilege of the elite.

“As a pioneer in banking the un-banked in South Africa, Ithala is committed to serving the ordinary people of the country, in line with the company’s development mandate, to manage their money and create wealth,” he says.

116 | Africa Outlook issue 87

giving them the ability to provide their customers with alternative in-house banking solutions.

The result of this is increased competition and a need for adaptation. Traditional banks are being forced into developing solutions that better serve their retail customers and at the same time compete with the new entrants to the market who are already taking advantage of the growing digital and customer-centric sphere.

Ithala SOC Limited is one company in the South African finance industry that is looking to disrupt the market.

Based in the city of Durban, Ithala is a licensed financial services and registered credit provider. It offers financial services that include personal banking, business banking, stokvel banking, and insurance across KwaZulu-Natal (KZN) province, contributing to the socioeconomic development of the region’s people through more than 38 company branches. The business spans the entire province, and for some rural areas of the region it remains the only physical financial institution around.

This is what really sets Ithala apart from its competitors – the fact that, in contrast to major banks in the country, it serves a large population of rural or poorer individuals.

Where the banks aim their services towards and cater to the upper echelons of the urban populace, Ithala focuses on the people of outlying areas that are, often, searching for a better quality of life.

And due to this outlook, Ithala has managed to gain a significant and trusted foothold (both economically and with its customers) in the market, at the same time providing financial aid to those who need it the most.

This trust is reinforced by Ithala’s mission to promote development across the province, providing a positive impact through job creation, skills development, and training, and helping to increase individual and family economic security to aid personal and domestic growth.

The company’s promotion of increasing welfare for those who need it is not only aimed to help the individual, but the resulting aid will strengthen infrastructure in KZN – a strengthening of economic roots in order to facilitate region-wide growth.

“It is often said that financial freedom is only for the upper class and not for the average citizens. This insight is a notion that Ithala SOC Limited is trying to dispel,” Vilakazi informs us.

The CEO has been working in the banking and finance for over 13 years and is something of an industry stalwart. He started out at Absa Group, rising to the position of National Manager of New Enterprise Finance in the company. After a successful career with Absa, he joined Standard Bank Group and later became Deputy Managing Director of the company.

At Standard Bank Group, and as a former non-executive director of the Malawian Stock Exchange, Vilakazi played a major role in the modernisation of the Malawian banking industry at the time.

Valikazi’s career path has seen him rise to the position of CEO for Ithala, and he welcomes the company’s beneficial impacts and industry challenges that accompany the position.

“Our brand position helps customers reduce debt, improves their financial situations, meanwhile irrespective of which stage in the

Why digital marketing is the way to go for small businesses There is no escaping the fact that small businesses have been the hardest hit by COVID and the resultant lockdown. According to a recent report released by business organisation, Sakeliga, five percent of the business owners they surveyed claimed that their enterprise would be closing down within the next 12-month period. A further 44 percent claimed that the future of their enterprises remained uncertain. 96 percent of the business owners who participated in the survey employed fewer than 50 employees.

In short, it is a sad reality is that a significant number of these small businesses simply do not have access to the tools, the finances, or the knowhow necessary to overcome the hardships with which they are currently faced. Telkom Business is determined to change this with the launch of its new application and online marketplace known as Yep!.

The case for going digital The transition from traditional in-store buying to online shopping has been underway for some time.

However, as many experts will agree, there has been an element of resistance amongst both South African consumers and SMEs. Since COVID arrived and the subsequent lockdown was implemented, it has become evident that investing in digital marketing and building a favourable online reputation is no longer optional – it is a necessity.

It has become evident that few consumers are leaving the safety of their homes to shop. Most are ordering goods using digital means and enjoying the peace of mind that those goods will be delivered straight to their door.

Keneilwe Gwabeni, Chief Information Officer at Telkom Business, insists that it is time for local businesses to embrace agility and the digital world. This means

completely revolutionising the way that they do business and adopting a more people-focused, customer-centric company culture. Small businesses must develop, test, and implement approaches to match consumer requirements and actively solve their problems. This level of innovation and adaptability is vital if these SMEs are to survive within the current competitive, ruthless economic climate.

But what is to become of those small businesses that have yet to take action to set up a website and create an enduring online presence? That is where Yep! comes in.

Yep! closes the gap of SME CTO skills through providing SMEs with a robust platform that is designed to enable a new business model that allows for the complete digitisation of a company’s product or service offering.

Yep! presents an online shopfront platform that the SME can set up themselves in minutes, following which, the businesses can immediately begin trading their products and services on a fully functional digital platform. Yep! draws inspiration from the agile world in which SMEs operate and also leverages the technology necessary to support an ecosystem that allows consumers, government, and large corporates to find trustworthy products and services from small businesses.

Yep! seeks to walk the winding path together with small enterprises in an effort to assist in solving the current issues with which they are faced so that they can better serve their customers in a more collaborative and responsive manner. The app also strives to extend the reach of local businesses, helping them to make that all-important digital transition, and to further aid them in surviving and thriving throughout the times of the COVID pandemic.

Digital is the key.

Yep! is the solution.

ITHALA SOC LIMITED

ITHALA’S IDENTITY VISION: Create a more prosperous and inclusive society where the previously disadvantaged have opportunity to a better life.

MISSION: Reduce poverty through implementing infrastructure programmes, providing access to financial services, building the economy of KZN, with a focus on rural and township areas.

VALUES: Respect, Service, Integrity, Passion, Future Focussed.

OBJECTIVES: • To mobilise financial resources and to provide financial and supportive services to the people of KwaZulu-Natal.

• To plan, execute, finance, and monitor the implementation of development projects and programmes in the Province.

• To promote, assist, and encourage the development of the Province’s human resources and its social, economic, financial, and physical infrastructure.

• To promote, encourage, and facilitate private sector investment in the Province and the participation of private sector and community organisations in development projects and programmes, and in contributing to economic growth and development.

• To act as the Government’s agent for performing any development-related tasks and responsibilities that the Government considers may be more efficiently or effectively performed by a corporate entity.

118 | Africa Outlook issue 87

wealth creation journey they are in. It is ‘Wealth Creation for Ordinary South Africans’,” he tells us.

PEOPLE-CENTRED SERVICE The people-centric focus of the company is no better exemplified than in its willingness to reach out to its customer base and provide the close physical access many of the region’s consumers need.

In a National Development Plan, the South African government challenged its financial sector to achieve a total financial inclusion of 70 percent of people in the country by 2013, with the target set to 90 percent by 2030.

Up until now, many people who are less affluent within KZN province (especially within remote areas) have had to deal with various issues surrounding banking. Travelling great lengths and incurring unnecessary expenses in order to proceed with financial transactions is one example of these issues, and traditionally access to basic banking services is not negotiable.

But Ithala has sought to change this through bringing financial services closer to those in remote areas. It makes the company the first financial institution to provide banking services

to townships and rural areas of KZN – a significantly positive achievement in the industry.

Currently, Ithala operates under a banking licence exemption, but one of the its primary aims is to acquire a Tier 1 Banking Licence in the near future that will open the door for the company regarding economic development, contribution, and most importantly for the firm, an increase in the general welfare of its customer base.

“Banks are important to a country, not just to its finances, but also to economic growth,” Vilakazi adds.

“A banking licence serves to achieve a sound, efficient banking system.

Licensing also ensures adherence to best banking practices and reduces systemic failure.

“Although Ithala is a pioneer in banking the unbanked and insuring the uninsured, with more than R6 billion in customer deposits, and having assisted tens of thousands of homeowners, it does not enjoy all the privileges of a fully-licensed bank thus far.”

With the benefits of a full banking licence comes the ability to participate fully in the national payment system.

This would bring further stability to

FINANCE

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Comcorp and Ithala have been trusted business partners since 2015.

As a leader in home loan technology and related services for the past 26 years, Comcorp has processed over 5.7 million home loan applications on behalf of our business partners.

In 2000 we submitted the first digital home loan application to a Bank via our BondTrak product, which directly interfaces with seven home loan lenders including Ithala.

Comcorp’s Mortgage Software products aim to continually innovate to provide digital home loan solutions, that are tailored to the needs of Banks, Mortgage Originators, Property Developers, Estate Agents and Home Buyers. Our digital home loan solutions equip our customers with the necessary tools required to process home loan applications efficiently and securely.

Comcorp has recently supplied a software solution to WeApply, SA’s premier fully digital home loan provider that harnesses the latest technology and standards such as biometrics, open banking and micro services to make fast lending decisions via a digital, seamless and transparent journey, empowering home buyers with more tools and quicker answers to create a better overall experience and give them full control of their home loan application journey.

Comcorp has numerous proprietary technology solutions in the credit lending space.

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Ithala and rid the problem of having to keep applying for extensions, therefore reinforcing the long-term strategic strength of the company on top of other benefits.

“Obtaining a full banking licence and becoming a fully-fledged bank would enable expansion of Ithala SOC Limited’s footprint beyond the borders of KZN, thus broadening our reach and impact on communities outside the province,” Vilakazi says.

The advantage of becoming a state-owned bank is that the company will be able to finance public infrastructure, services, and fiscal policy alongside major key economic sectors, like those of agriculture, small trades, and cooperatives.

“Currently, banking services that are provided to the state are put out to private commercial banks for tender. A state-owned bank will be able to provide financial services to

Find out more at www.comcorp.co.za

Ithala’s ATM machines enable customers typical banking services government entities, such as stateowned enterprises and all three spheres of government,” Vilakazi explains.

The future of Ithala will involve investing in the company and the

people and communities it serves, activity which will only serve to grow the potential of the region’s economy and society.

Vilakazi concludes by stating that the firm will overcome various challenges posed to the region and company by investing in the growth and development of KZN’s people.

Key priorities include instilling a high-performance culture, creating a sustainable balance of profit and growth and, of course, the acquisition of a full banking licence, a move which will enable Ithala to influence even more lives for the better in the future.

ITHALA SOC LIMITED Tel: +27 (0) 31 3662500 customerservice@ithala.co.za www.MyIthala.co.za

Africa Outlook issue 87 | 119

PINDULO VDM

As 2020 continues to be defined by the coronavirus pandemic, South Africa’s Pindulo VDM has realigned its business with a greater focus on safety, sustainability and diversification Writer: Tom Wadlow | Project Manager: Joshua Mann

Responding to a Crisis 120 | Africa Outlook issue 87

SUPPLY CHAIN

T

here is no denying that 2020 will be remembered as the year of coronavirus.

When China reported the first outbreak in the province of Wuhan towards the end of 2019, few anticipated that it would cause the health and socioeconomic hardship that has swept its way across the world.

In South Africa, a country already in the grips of an unemployment crisis, COVID-19 has only exacerbated the problem, and for multimodal logistics firms such as Pindulo VDM, the need to adapt, innovate and diversify has never been greater.

“Coronavirus has dominated every conversation as the world wrestles with the magnitude of the pandemic, and we are still experiencing the economic impact due to the sudden imbalance of supply-demand dynamics,” comments Co-CEO Kevin Changoo, who last spoke with Africa Outlook in June 2019.

“Statistics for a less than three month period between April and June show that there has been an increase in unemployment of 156 percent when compared to the full 2019 year, with a forecast of more than 14,747 private transport workers potentially being affected.”

Indeed, economists believe it will take between two and three years for the nation’s economy to return to a state seen before COVID-19 arrived.

Sudden, sharp shutdowns initiated in order to protect public health have had a devastating impact on economic activity – at the height of lockdown in April 2020, Pindulo could only operate 10 percent of its road services, the remaining 90 percent not classified as essential.

This caused the vast majority of company assets and all warehousing activity to be brought to, in Changoo’s own words, a screeching halt.

However, as restrictions were lifted activity started to pick up, and priority number one for the company was to Africa Outlook issue 87 | 121

PINDULO VDM ensure the safety of its employees.

“Pindulo VDM operates in all provinces in South Africa with our operational depots and employees working in noted hotspot areas,” the Co-CEO adds. “In order to ensure the health and safety of our employees, we established a Pindulo VDM COVID-19 Management Team which created and implemented policies and procedures in alignment with the South African legislation as well as with recommendations in terms of international best practices.

“The change engagement process included training and continuous communication regarding the mandatory use of face masks, hand washing, and social distancing.

In addition, the business had to adapt to the new environment and implemented systems for the remote working of office-based support staff.”

SAFE AND SUSTAINABLE The response has also led to unforeseen benefits – remote working has resulted in heightened and more frequent communication between different teams in the business, part of a wider cultural move which has seen the firm rally round to support each other like a close-knit family.

And from a business perspective, Pindulo VDM has also made some marked strides forward despite

operating against a severely challenging backdrop.

Two major priorities have been to promote safety and sustainability within the organisation, both now among the firm’s set of core values.

In the realm of safety, this stretches far beyond what Changoo has already described in relation to the COVID-19 pandemic, covering all aspects of road and land operations.

“The focus on safety was demonstrated by our Road Transport Management System (RTMS) certification in February 2020,” he says. “RTMS is an industry-led, government-supported, voluntary, self-regulation management system that has resulted in measurable key performance indicators and demonstrated compliance with road traffic regulations, improved road safety, increased efficiencies and productivity, and enables us to strive for continuous improvement.”

The introduction of RTMS, a process which took 18 months, has also carried sizable sustainability benefits.

These include a reduction and minimisation of overloading, traffics and speeding transgressions, as well as a more proactive and preventative maintenance system which has led to a reduced amount of unanticipated vehicle downtime.

MiX Telematics Pindulo VDM goes from strength to strength with MiX Telematics MiX Telematics, a leading global provider of fleet and asset management solutions, is a proud partner of Pindulo VDM, supplying them with a complete fleet management solution that addresses their operation’s efficiency, safety and security needs.

To help Pindulo VDM achieve better control of their fleet, the MiX Fleet Manager Premium solution was implemented to give their fleet managers greater insight into telematics data, helping them better manage their fleets and drivers. This cloud-based platform provides realtime GPS location and telematics data, accessible 24/7 via a mobile app and web interface.

The following value-added solutions were also introduced in Pindulo VDM’s fleet: • MiX Vision fleet cameras give context to driving events when used in conjunction with vehicle and driver data. Video recordings are triggered as soon as a predefined driving event, such as harsh braking or overspeeding, occurs.

• The MiX Vision Bureau service’s driver coaching programme provides detailed reports and coaching dashboards to proactively address risky driver behaviour.

• The MiX Track and React bureau service monitors exception-based driving event notifications and bring these to the driver’s attention in realtime. All theft and hijacking incidents are escalated immediately. This service increases driver compliance and reduces risk. A wireless stolen vehicle recovery device is also installed for additional security.

Pindulo VDM has achieved significant improvements in driver behaviour, leading to improved fleet utilisation and increased driver safety, as well as lowered risk.

www.mixtelematics.co.za

122 | Africa Outlook issue 87

PINDULO VDM Further, the system has enabled Pindulo VDM to prioritise the wellbeing of truck drivers and overall promotion of skills development within the sector.

“The COVID-19 pandemic has catalysed us to review our strategy and to investigate initiatives to improve our efficiencies by optimising the use of our assets,” Changoo adds. “The introspective look into the business has resulted in us experiencing an 18

THE PINDULO IDENTITY Pindulo VDM derives from the South African word for ‘problem solvers’, the letters VDM standing for Versatle, Dynamic and Multimodal.

In 2018 the company rebranded to reflect the transformation of its business, which now operates through six divisions that each reflect a colour of the South African flag: • Red – Fast Moving Consumer Goods (FMCG) • Gold/Yellow – Steel and Industry (SI) • Blue – Fuel and Chemicals (FC) • Black – Mineral Mining Commodities (MMC) • Green – Agricultural Commodities (AC) • White/Grey – Technical Consulting Services (TCS) MISSION: To add value by providing integrated supply chain solutions across the globe one delivery at a time.

VALUES: Safety; Accountability; Collaboration; Innovation; Sustainability

124 | Africa Outlook issue 87

percent increase in measured efficiencies, an improvement in fuel consumption, and a consequent reduction of our carbon footprint.”

DIVERSIFYING Prior to the pandemic, the company was also deeply engaged in a root and branch rebranding and diversification exercise, a series of activities which continues to shape the organisation through 2020.

For instance, its internal leadership structure has evolved – Pindulo VDM is now 30 percent black female owned as it seeks to improve its black economic empowerment credentials, the new shareholder also being appointed to the executive management committee.

The firm’s divisions have also been expanded and added to. There are now six units, each representing a colour of the South African flag.

“We have made excellent progress with our diversification strategy which includes mineral mining commodities, steel, and industrial and fast-moving consumer goods,” says Changoo. “In addition, we have also grown our fuel and chemicals division and increased the number of our fuelling stations to better align with our country-wide operations.”

Prior to the onset of COVID-19, much of the company’s diversification was aimed at the mining sphere and transport, warehousing and export of various mineral commodities.

However, Pindulo VDM adapted to the ever-evolving situation and has since heightened its focus on the movement of essential goods such as food, farming products and medicine.

And it is extremely well-positioned to play its part.

Pindulo VDM’s operations are based around strategically located backof-port hubs which offer in excess of 136,000 square metres of storage. In addition, with more than 400 vehicle combinations at its disposal, the company can provide truly innovative

Atlas360 Commercial Vehicle Services Atlas360 Commercial Vehicle Services, a proudly level 2 BEE compliant company, has gone from strength to strength since the current management took control 11 years ago. Atlas360 is a top-flight full-spectrum repair and refurbishing facility for the Southern African heavy-duty commercial vehicle industry. No customer is too big or too small – every customer is important.

Offering on time, quality, truck and bus accident repairs to all major brands, our facility is equipped to conduct major structural repairs and restore accident vehicles back to their original condition, be it cab rebuilding or chassis straightening, in accordance with OEM guidelines.

We have OEM approval from all the leading truck manufacturers as well as SAMBRA certification. We work with all the major insurance companies and insurance brokers. Atlas360 has the expertise required to ensure your vehicle is returned timeously and to the highest quality standard, which forms the basis of our solid business relationships with many transport companies, such as Pindulo VDM and its premium fleet of vehicles.

With guaranteed workmanship and dedicated sales representatives assigned to each customer’s account, Atlas360 is well known for our exceptional aftersales service.

Atlas360 is based on a 15 000 square metre ,24 hour secured and accesscontrolled site in Springs, Gauteng, where a new workshop which is scheduled for completion in mid-2021 is also being built.

A second yard in Brakpan, just off the N17 Freeway, is paved and secured for receiving of vehicles after hours.

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TRUCK AND BUS ACCIDENT REPAIR SPECIALISTS

360

COMMERCIAL VEHICLE SERVICES

+27 87 110 0301

info@Atlas360.co.za

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WHY ATLAS360 • • • • • • •

Approved by all the major OEM’s Approved by all major insurance companies SAMBRA Certification VDQ approval One of the largest commercial vehicle repairers in Southern Africa.

Customer satisfaction Transparent with all stakeholders

SCOPE OF SERVICES • • • •

We value spending time with Customers

We cater for all facets of the transport Industry

• • • • •

Minor and major repairs to accident damaged commercial vehicles Minor and major structural and chassis repairs Re-spray and colour coding of new trucks and busses to customer requirements Colour coding of chassis to customer specification for OEM’s Accident repairs and modifications to trucks, busses, trailers and loading bodies Refurbishment of trucks, busses and loading bodies Aluminium rim and diesel tank polishing Vehicle branding Valet and polishing of heavy commercial vehicles

PINDULO VDM

Q: HOW IMPORTANT DO PARTNER AND SUPPLIER RELATIONSHIPS CONTINUE TO BE FOR THE SUCCESS OF THE BUSINESS? KEVIN CHANGOO: “Our customer-centric strategy enables us to add value to our customer supply chain processes and to understand the evolving market, technology requirements and remain flexible to upscale our service offering based on increasing demands.

“At Pindulo, our customers and suppliers are considered our partners and we strive to add value and provide holistic solutions across their value chain and thereby ensure that we can foster long-term relationships which in turn facilitate the optimum environment for further business opportunities.

“In order to ensure a successful business, it is critical to establish positive business relationships with employees, business associates, suppliers, customers, and everyone else that contributes directly or indirectly to the continued survival of the business.

“Positive relationships are of paramount importance as the world of business is filled with people and not just products and consumers. People desire a connection with other people and sustainable operations are contingent on people who trust and who want to work with us in the long term.

“In addition, the importance of positive relationships is that it can result in increased repeat business, promotion of branding, and promotion of services to parallel operations and acquittances and critically also ensure customer satisfaction.”

and intelligent logistical solutions, including dry bulk, breakbulk, container and abnormal transport.

It also utilises a private haul road from port to intermediate facilities nearby, the fleet consisting of drop sides, side tippers, flatbeds, tautliners and back tippers, with all trailers fitted with air suspension. The firm also owns more than 2,000 containers.

Changoo also highlights the expansion of its Technical Consulting Division as an important development.

This unit of the business analyses data and operations of its partners to ensure it can provide leading solutions for the entire value chain.

“A key example of this was our analysis of one of the key steel manufacturing plants in South Africa, where we reviewed their production, warehouse management, loading, and transportation systems,” the Co-CEO says.

“In addition, the project included meeting with our customers’ key customers in order to understand the full value chain. Post review of these processes, we were able to formulate a comprehensive solution which has resulted in an annual saving in excess of R80 million to our customer. This in turn has resulted in a strategic and longterm partnership with Pindulo VDM, who is now a primary transporter in the long steel industry of South Africa.”

BROADENING HORIZONS The Technical Consulting Division is part of a formidable setup and network, one which Changoo is determined to expand across borders in the future.

The firm is already truly pan-South African after opening operational depots in Mpumalanga and KwaZulu Natal in 2019, and while 2020 has witnessed some disruption to further national growth, Changoo is pleased with how the firm’s footprint has expanded in the likes of Western Cape, Northern Cape, Gauteng, and the Eastern Cape.

However, the Co-CEO wants to 126 | Africa Outlook issue 87

SUPPLY CHAIN

venture even further afield.

“In terms of the scope of our operations in South Africa, we already travel more than 36 million kilometres per annum which equates to driving more than two and a half times around the circumference of the earth every day.

“Over the next 24 months, our ambition is to boost this key performance indicator by incrementally increasing operations within the South African Development Community (SADC) which includes Zimbabwe, Mozambique, Botswana, Tanzania, Angola, Zambia, Malawi, Lesotho, and Eswatini.”

And the ambitions do not stop here.

As well as growing geographically, Changoo identifies three key focus areas for the rest of 2020 and into 2021.

First is to further integrate information systems to ensure superior analysis of data which in turn will facilitate operational efficiencies and superior decision making. Second

is an expansion of Pindulo VDM’s patented trailer designs and material loading and management – this will lead to increased payloads and reduce the firm’s environmental footprint.

The third objective centres on people though the growth of the company’s Logistics Academy.

“This will include the training of our land-based operational staff as well as our drivers, with us identifying key areas for empowerment through education, counselling, and the provision of tools to ensure continuous improvement,” Changoo reveals.

“To date we have in excess of 200 graduates who have completed the learnership programme and our strategy going forward is to increase the geographical reach and target unemployed youth from previously disadvantaged groups in the different provinces that we operate.”

It is here, the importance of building relations with people, where Changoo

draws the conversation to close.

He highlights the ongoing partnership between himself and fellow Co-CEO Deon van der Merwe as one which has facilitated successful leadership of the business, a friendship which he hopes and expects will continue long into the future.

Changoo concludes: “Collectively Deon and I form a unit which, with the aid of constant communication, can concentrate on different elements of the business.

“This is one of the best collaborations of my working career. Deon has a background in finance and economics while I have one in process engineering.

The combination is therefore extremely complementary and value-adding to our internal and external partners. We act as coaches to the one other and this allows for a soundboard for brainstorming of strategy, critical projects, and essential decision making.

“It is a pleasure to work with a friend, collectively sharing the weighted responsibility of leadership and accountability to our employees.”

PINDULO VDM Tel: +27 (0) 22 714 3231 info@pindulovdm.co.za www.vdmsa.com

Africa Outlook issue 87 | 127

VIRUNGA POWER

Rural Electrification at Utility Scale Virunga Power Founder and CEO Brian Kelly talks to us about designing for scale and innovation in the African energy sector Writer: Marcus Kääpä | Project Manager: David Knott

T

he economic growth of much of the African continent hinges on reliable access to affordable power.

Large swaths of Africa, especially its rural areas, are woefully underserved by the basic utilities required for sustained economic growth and development. Electricity is one of these. Recent decades have witnessed an ongoing campaign by African leaders, international development banks, and the donor community to improve electrification rates. Their efforts, coupled with a more recent push by new ventures deploying solar home systems and other micro utility solutions, have resulted in progress.

However, the cost and inefficiency of extending national utilities to rural communities paired with the relative unaffordability of subscale solutions leave serious gaps for alternative longterm solutions.

Enter Virunga Power. Named after the impressive range of volcanic mountains that stretches across the border regions of Uganda, Rwanda, and the Democratic Republic of 128 | Africa Outlook issue 87

Congo, Virunga Power’s vision is to become Africa’s first rural utility that operates at scale. Over the last 10 years, Virunga Power has been developing megawatt-scale run of river hydropower projects and rural distribution grids across East and Southern Africa.

“There remains a significant need for energy in rural areas.

Affordable and reliable energy is essential for sustained economic growth, improvements in health and education, and greater rural industrialisation,” Brian Kelly, Founder and CEO, tells us.

Prior to starting Virunga Power, Kelly worked to finance the rapidly growing power generation sectors across Asia. This experience showed him how important infrastructure is to improving lives and livelihoods in emerging economies and informed his vision for Virunga.

“I spent much of my 20s as an investment banker advising large Chinese and Indian utilities on acquisitions of infrastructure assets and utilities in Asia and beyond. That

work gave me an understanding of how important scale and proper financing are to the viability of infrastructure projects,” he says.

After several years in this role, Kelly felt it was time to apply his experience in another part of the world.

“I had always wanted to be an entrepreneur. My banking work gave me exposure to the tail end of the electrification push in Asia and an up-close view of the impact infrastructure can have in improving lives. With Africa looking to move towards universal electrification, I saw an opportunity to try to meet the needs of African communities,” he continues.

“Providing reliable energy to a rural area at a reasonable price will stimulate development and productivity. Producers will produce more and consumers will consume more. Markets and entrepreneurial opportunities will expand. That is how it played out in Europe, America, Asia, and elsewhere over the past 100 years, and there is no reason that cannot be the case in Africa as well.”

ENERGY & UTILITIES

In 2011, Kelly founded Virunga Power with the intention of putting his idea to the test. “From the beginning we committed to building a solution to provide reliable, clean, and affordable energy. We did not want to be charging people $1/kWh or more. You can’t drive local growth in a globalised world with electricity costs that high.

It took a long time to understand the different technologies, markets, regulatory environments, and industry players, but we are confident our diligence and persistence will pay dividends for Virunga and its customers,” Kelly says.

THE “GOLDILOCKS” SCALE FOR RURAL POWER DISTRIBUTION

AN ANSWER TO MANY CHALLENGES

• Megawatt scale projects are large enough to attract infrastructure investors to provide loans for project construction at long tenors and relatively low interest rates, allowing for affordable end-user tariffs.

Virunga’s technology of choice is run of river hydropower, a renewable and environmentally friendly source of electricity.

Used throughout the world for over 100 years, it relies on the energy contained in the small to medium sized rivers and streams that are abundant in the rural areas of East and Southern Africa. Because bringing a

According to Kelly, extending centralised power grids into rural areas entails huge upfront costs, and network redundancies, presenting challenging economics for national utilities. On the other hand, household level power generation (i.e. solar home systems), while rapid to deploy, ignores potential economies of scale and is expensive for the consumer.

For much of rural Africa, the “just right” solution is megawatt-scale utilities of one to 20 MW capacity, serving tens or hundreds of thousands of customers. Here’s why: • Distributed mini-utilities avoid the wait for expensive, governmentfunded transmission projects to bring the grid closer to rural communities. By generating and distributing power on a local basis, rural households can have access to energy sooner and more reliably.

• Most of the energy can be distributed and fully consumed with lower voltage networks that connect rural farming communities and towns.

• Fully renewable, baseload generation from hydropower can be counted on at all hours of the day, making commercial and industrial use more viable, and can be supplemented by intermittent sources and storage

Africa Outlook issue 87 | 129

VIRUNGA POWER

SMEC SMEC has a strong partnership with Virunga Power International, having developed two run-of-river hydropower plants of four to six MW each, located in Western and Central Kenya respectively (Sakhala and Mathioya-Kirogori SmallHydropower Projects).

SMEC’s versatility, technical expertise and innovative, solutions-led approach has enabled it to become a leader in the hydropower sector in Africa, delivering projects in Kenya, Uganda, Sudan, Rwanda, Malawi, Zambia and Tanzania. SMEC supports clients to execute projects as small as 0.5MW to projects over 2,400MW in capacity, while offering reliable and quality work outcomes.

LOOKING AHEAD “We are excited about the future. Years of hard work by the team have produced a pipeline of high-quality projects at various stages of planning and development.

Recent successes validate the model. Zengamina Power, our subsidiary which provides power to approximately 5,000 people in northwest Zambia, is performing well. At an average usage of 100kWh per month, our customers use 30 to 50 times more power than their rural African peers. They can afford to use that much power due to our low rates and have built their lives around doing so.”

– Josiah Brand, Chief Operations Officer Eng. Dido Lumanyika, Virunga’s Head of Utility Operations, is no stranger to megawatt scale generation and distribution projects. Having worked as an Asset Manager and T&D Planner for Duke Energy and FirstEnergy, large US-based utilities, he knows the benefits of scale. He also knows how to translate that knowledge and experience into productivity in the rural African context. Prior to joining Virunga, Eng. Lumanyika was the General Manager of the West Nile Rural Electrification Company, a vertically integrated utility that provides electricity to approximately 20,000 people in Northwestern Uganda.

“I am excited to be part of the Virunga team. I have a passion for hydropower and electrification, and we are combining the two to add value, enable economic productivity, and make a positive impact on the lives of our customers.”

– Eng. Dido Lumanyika

130 | Africa Outlook issue 87

www.smec.com

project online requires significant development time, capital, and engineering expertise, most other private developers focus on technologies like solar and wind.

“For Virunga, run of river hydropower provides rural communities a very cost-effective source of electricity. Intermittent power sources (e.g. solar or wind) must rely on oversized battery or diesel backup to reliably serve communities,” Kelly says. “While battery storage costs are coming down and can be useful and costcompetitive solutions in developed markets over short periods of time, storing power for days at a time, which can be necessary for rural, off-grid applications can be extremely expensive on a per kilowatt hour basis (US$1 and up) and typically supports only low intensity uses such as lighting, cell phone charging, and domestic appliances.

ENERGY & UTILITIES

Through our specialist expertise we’re challenging boundaries to deliver advanced energy infrastructure solutions With over 1300 employees working across 25 countries in Africa, SMEC provides innovative and sustainable solutions in the hydropower and energy sectors. Our specialists have delivered more than 50 hydropower and dam projects and 6000 MW hydropower studies throughout Africa.

Learn more about our capabilities at www.smec.com

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Atacama Consulting is a leading Environmental and Social Advisory firm based in Uganda, East Africa.

We are glad to have supported Virunga Power as their international Environmental and Social Impact Assessment (ESIA) consultant for its hydropower projects in Southern Tanzania. The assignments were undertaken in conformity with the International Finance Corporation’s (IFC’s) Environmental and Social Performance Standards.

“Zengamina Power, our subsidiary which provides power to approximately 5,000 people in northwest Zambia, is performing well”

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Africa Outlook issue 87 | 131

VIRUNGA POWER

“Providing reliable energy to a rural area at a reasonable price will stimulate development and productivity”

“At the right scale, Virunga can deliver power to customers for between US$0.20 and US$0.30 / kWh and for 24 hours a day, 365 days a year. If we are successful, rural African communities will have electricity at a price and quality comparable to cities and on par with costs in many developed markets.

“Regional governments embrace the goal of providing electricity and other basic utilities to rural areas.

Electrification can be transformative, improving the quality of life, creating economic opportunities and stemming rural-to-urban migration.”

Currently, Virunga Power is working on multiple projects across East and Southern African countries.

“Virunga partners with local developers and operators to improve their facilities and grow the customer base. The data we collect enables us to refine our model. Five years from now, we hope to be working with governments across the region on larger rural utility concessions that will supplement the national utilities in areas that are hard to reach and reliably supply,” Kelly says.

“As the company strives to serve an additional 40,000 people in northwest Zambia and tens of thousands more elsewhere in its initial growth phase, continued success will require input from all. Strong and durable partnerships are incredibly important for us.

“Because the types of projects we are building and operating have analogues throughout the world, Virunga taps engineering firms, consulting professionals, and equipment suppliers with global knowledge and experience. Blending the latest improvements in technology around smart grids and metering, mobile payment systems, solar hybridisation potential, and flexible energy storage options with centuriesold hydropower principles can bring the lowest cost and most efficient power supply to rural communities.

ENERGY & UTILITIES

Q: WHAT DOES YOUR PROJECT PIPELINE LOOK LIKE? Josiah Brand: “Over the years we have focused on building diversity and resiliency into our pipeline by developing different style projects across multiple countries. This reduces the risk that a short-sighted political or policy change in one country damages our long-term prospects as a company.

“More specifically, over the next 12 to 18 months we have plans to add several thousand customers to our operation in northwest Zambia and also aim to reach financial close and start construction on approximately 20MW of generation projects in Kenya and Burundi.

“Beyond that is tough to predict, but we have a stable of projects in those countries as well as Zambia and Tanzania that we will push forward when the market dynamics are right.”

Our best partners and suppliers help us design solutions with the consumer’s interests in mind.”

Looking ahead, Virunga will continue to demonstrate that localised energy generation is a necessary and beneficial complement to the traditional centralised model.

The company also seeks to take advantage of the fresh opportunity rural African areas provide – that of simpler integration and implementation of innovative green energy production techniques inherently available in the rural environment.

“Some believe that solar and battery alone can solve Africa’s power needs, much as other markets are shifting away from their reliance on fossil fuels, but the reality is that there must be a reliable grid to serve as a base for that transition,” Kelly says.

“In Africa there is a way to adopt the best of both worlds, incorporating solar into localized distribution grids and captive industrial supply while utilising other renewable sources such as small hydro as a baseload supply.

If planned from the beginning, it can help reduce costs and optimise yearround output. We are confident that a

healthy mix of distributed generation sources at megawatt scale will enable the best outcomes for hundreds of thousands of our customers.”

The CEO ends with the reinforcement of Virunga’s company mission, an aim that encompasses each of its past and current projects.

“We must envision the ultimate goal, which is a fully integrated and reliable series of grids powered by a variety of localised, sustainable energy sources.

The continent’s long-term growth will not be driven solely by centralized fossil fuel power stations with transmission systems stretched over vast distances. Virunga is attempting to model in Africa what the developed world is only starting to realise about power supply: the most sustainable solutions are often local.”

VIRUNGA POWER info@virungapower.com www.virungapower.com

Africa Outlook issue 87 | 133

EVENTS

Digital Energy Festival October 20 – November 26 | Online | www.clarion-energy.com/digital-energy-festival

The largest power and water utilities exhibition, online DIG ITAL EN ERGY Festival for Africa kicks off on October 20 when four of Clarion Events’ leading energy brands join forces with an unprecedented six-week tour de force of quality content and engagement from one point of entry, making it the largest ever energy event for the African continent.

Three market-leading energy events, Africa Energy Forum, African Utility Week & POWERGEN Africa and the Oil & Gas Council’s Africa Assembly, alongside the leading 134 | Africa Outlook issue 87

energy journal ESI Africa, will bring you the Digital Energy Festival until 26 November 2020.

Several other Clarion Events’ market-leading trade publications are also partners in the digital offering, including Smart Energy International, Power Engineering International, Renewable Energy World, Hydro Review and Mining Review Africa.

Over 5,000 attendees are expected to register for the festival, which will employ AI technology to match attendees with relevant content

and networking opportunities for a personalised event experience over the six-week period.

Experts representing upstream oil and gas, power, energy, manufacturing, trade and mining will deliver critical business updates and information for Africa’s energy professionals, helping you stay at the forefront of innovation as Africa looks ahead to the fifth industrial revolution.

Access a world of content and AI-powered networking through intimate board rooms, fireside chats, digital dialogues, coffee mornings, online awards, country spotlights, masterclasses, digital-education, certified learning, online sales and lead generation via the digital marketplace.

20 October – 26 November 2020

Yo u r d i g i ta l g at e way t o e n e r gy i n A f r i c a

H o s t p u b l i c at i o n

S i x w e e k s . F o u r e v e n t s . O n e p l at f o r m . w w w.c l a r i o n - e n e r gy.c o m / d i g i ta l- e n e r gy- f e s t i va l

EVENTS

Market Access Africa November 23-26 | Durban, South Africa | www.access-africa.com

A global forum for food and agriculture buyers and sellers M ARKET ACCESS Africa (MAA) is the global meeting place for food and agriculture buyers and sellers – promoting African food and agriculture commodities, scaling up processing, development of robust supply chains as well as tailor-made financial schemes – while providing opportunities to access new and existing markets 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 136 | Africa Outlook issue 87

policies and raise the continent’s food and agricultural productivity to curb its annual import bill.

• Connect agri producers with exporters and buyers to expand into new markets to impact company bottom line • Connect food producers and processors with trade financiers, banks and impact investors to increase their turnover and get the right financial partners • Connect exporters and buyers to reliable commodity suppliers therefore creating an actual market place • Maximise profit across the agri-food value chain by connecting demand to suppliers • Value Chain Connect – plug and integrate African agribusinesses to regional and international value chains

WHAT TO EXPECT Pre-event workshops – tailor made breakout sessions designed to guide a large number of people through a specified topic in a structured way, encouraging communication and participation with structured, formal output.

Thinktanks – smaller break-out sessions (sector led) covering specific topics, opportunities and challenges. Discussions to feature in the business intelligence report.

Agritech and services expo – a dedicated space to enable key stakeholders to showcase their products or services to a broad audience of participants.

B2B matchmaking – designed to match business interests, the matchmaking service provides all attendees with the opportunity to make their time at the event more productive and will have the functionality to pre-schedule meetings.

23-26 November 2020 I ICC, Durban, South Africa CONNECTING THE ENTIRE AGRI-FOOD BUSINESS VALUE CHAIN Market Access Africa (MAA) is the global meeting place for buyers and sellers across the entire agri-food business value chain Participate as a SPONSOR or EXHIBITOR and expand your food and agri business network! Get in touch to customise an ideal package for your company – www.access-africa.com/get-in-touch

600+ Delegates

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Participate as a DELEGATE! Register online before 31 July and save R3000!

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THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

WHAT, IN YOUR VIEW, MAKES A SUCCESSFUL BUSINESS LEADER?

Malik Karmaly CEO, Habibo Group “First, having the vision, to be able to know clear objectives – but at the same time being able to navigate the business environment.

Second, integrity, equity, transparency and accountability for a long-term point of view. Third, innovation, but keeping feet on the ground – to keep having common sense. And the most important thing – to listen to the market.”

Dr Thulani Vilakazi CEO, Ithala SOC Limited “A good leader is only as effective as his or her team. A good leader will examine their vulnerabilities and shortcomings. Doing so makes the team stronger, allowing them to delegate tasks to team members with the abilities they lack. In order to delegate well, you also need to build trust with your team.

“Successful leaders will also identify their weaknesses so that they can improve upon those areas in the future.

“Communication is also important for a good business leader. You need to be able to communicate in a variety of ways, from transmitting information to coaching your people. And you must be able to communicate with a range of people across roles and different social strata.

138 | Africa Outlook issue 87

“Showing gratitude is critical.

Giving thanks will actually make you a better leader, and employees will not hesitate to work harder for an appreciative boss.

“Finally, treating people with respect on a daily basis is one of the most important things a leader can do. It will ease tensions and conflict, create trust, and improve effectiveness.”

Mandy Peters CEO, Solomons – St Helena “I am a staunch advocate for the value of people to an organisation and believe that long-term success in business is achieved not by one leader but through the collective input of a diverse and engaged team of people.

In Solomons, a cross-functional team of our employees developed a simple set of values – people count, service matters, integrity always.

Holding true to these values, in my view, is the key to successful business leadership.”

Kevin Changoo Co-CEO, Pindulo VDM “The best leaders are passionate about developing emerging leaders around them and that they constantly strive to read, learn, and improve their emotional intelligence. Team culture is a critical element for accomplishing a vision, and while leadership remains the articulation of a vision into reality, one cannot achieve any goals without the support of a greater team.

“A leader must therefore remain in a perpetual state of preparation and embrace the inevitable and dynamic changes of the external business environment as is the current case with the COVID-19 pandemic. Truly great and authentic leaders need to be prepared to make difficult choices, which includes self-sacrifice in order to enhance the lives of others around them. As a CEO, one must be cognisant of the fact that in addition to his/her family’s dependence so too, do the families of those who work in the business.”

Leveraging technology to enable smarter living...

UBER AFRICA

TECHNOLOGY

Living Smart

See page

36

When it comes to leveraging technology to provide innovative solutions in people’s lives, global giant Uber is second to none Writer: Dani Redd | Project Manager: Vivek Valmiki UBER AFRICA

U

that consumersSince were becoming ber is a company that most presence in Johannesburg. then,more price sensitive. In response to this it people in the world will have it has expanded to isoperate inaffordable seventransport testing a new option, UberNam, which features heard of. Not only does it has a countries: South Africa, Nigeria, Ghana, hatchbacks – cars that are generally cheaper to run andIvory maintain. net worth of $75 billion, but it is also Kenya, Tanzania, Uganda and “In these difficult times, we want currently operational in 85 countries, Coast. to ensure we deliver more affordable options with the same door-to-door offering innovative transport and safety standards while unlocking further earning opportunities for THINKING GLOBALLY, rideshare solutions. driver-partners,” Hiemstra adds.

ACTING LOCALLY “At Uber we have been expanding UNIQUE AND ADAPTABLE One of Uber’s strategies is ‘think rapidly across the globe, with the The General Manager believes that global, act local’, which underpins its due goal to be everywhere and to offer Uber stands out from the crowd to its ability to innovatively leverage ambition to provide localised solutions everyone a mobility solution,” says For example, Lagos (Nigeria’s most to cities, communities, governments Frans Hiemstra, the firm’s General LEADERSHIP FOCUS populous city) suffers from chronic and individuals.

Manager for Sub-Saharan Africa traffic problems, with the commute Frans Hiemstra between Mainland and Victoria Island “Uber is solving one of the most (SSA). “However, each market has its Frans Hiemstra joined Uber in 2015 taking hours. as Head Driver Operations. to this, we piloted prevalent issues faced by of people on nuance, and a one size fits all strategy“In response UberBOAT, making use of the city’s “I have always been passionate continent doesn’t work, especially not in Sub waterwaysthe as a way to cruise past– unemployment – by about developing businesses the traffic, and making history for effectively leveraging entrepreneurial Saharan Africa (SSA). in SSA and worked locally and the continent by being the first-ever abroad across various industries to on-demand water-led transportation thinking.

Our app hasgain been able to “When we entered the market seven more experience in this field. option,” Hiemstra says.

Being at the forefront of solving a reliable years ago, we knew we were going toUber hasbring also made UberBODA integrated transport complex problems has always been available inin Kenya, solution some of the cities that be part of one of the world’s richest (motorbikes) something I love, especially within Uganda and Tanzania, while UberPOA today’s disrupted marketplace,” he (tuk tuks)require are availablethis,” in Kenya Hiemstra and says. cultural bio-diversities, with a massive explains.

Tanzania.

There is noto‘one size fitsfascinated all’ when itdiverse population of well over one billion, “Both options are designed “I was with the transportation group of innovative and competent comes to intercity transport solutions. and saw this as one of our greatest provide effective methods to our East African people who were driven to create Each has unique difficulties, opportunities.” community that fitscity directly into its the own and define sustainable cities of the lifestyle in these markets,” the General future to help communities across requiring tailormade Africa.” solutions – someThe company first penetrated SubManager says. it hasthat also launched thing Uber is aware of.

Saharan Africa in 2013, establishing a In Tanzania, In June of this year, he took on Uber by the hour. This enables riders to book a driver-partner and car by the hour, enabling them to get essential errands done all in one go, maximising convenience and minimising social contact.

As well as being responsive to local specificities, Uber is also adept at responding to global and countrywide trends. For example, it noticed that a changing trend in South Africa was

LEVERAGING TECHNOLOGY TO ENABLE SMARTER LIVING 2 | Africa Outlook issue 87

the role of General Manager for Sub-Saharan Africa. This involved working closely with teams across Uber’s seven countries of operation in the region to build partnerships, leverage technology and adapt to Africa 87 the ‘newOutlook normal’ whileissue supporting the needs of users, businesses and communities.

technology and other owned assets to supplement income within a city. The Uber app gives drivers the flexibility to decide when and where they work, giving them control of their earning potential and allowing them to fit employment around other commitments, such as education.

“In a region where thousands of jobs are being shed, Uber has produced over 59,000 active and sustainable economic opportunities,” Hiemstra confirms.

A second differentiator is safety – in Sub-Saharan Africa (and in many other parts of the world), Uber is considered one of the safest modes of transport.

“I am fully committed to the business and our journey in SSA is just getting started. Along with my team, we will continue to build like never before!” the Hiemstra adds.

Our Journey So Far Quite simply the easiest way to make and receive payments from anywhere in the world, Flutterwave has broken barriers in the journey to simplify payments for endless possibilities, in Africa, across emerging markets and globally. They have been able to build a network of payment interconnectedness, spanning 150 currencies, 15 countries, and 4 continents with the ultimate goal of helping businesses grow.

Flutterwave is able to support businesses at every stage of their growth cycle with features like Payment Links, Flutterwave Store and Flutterwave Checkout, that support freelancers, small businesses, Start-Ups, Scale-ups and enterprise organizations.

At Flutterwave, we handle the most difficult aspect of doing business, which is making and receiving payments. By doing so, we afford our customers the time and freedom to learn, unlearn, create, expand and grow your business. That there, is the foundation of our partnership with Uber in Africa.

“Our mission has always been to simplify payments for businesses in Africa - by doing this, we are able to provide them with the infrastructure to become global businesses from the comfort of the regions.

We enable merchants in countries like Kenya, to conveniently receive payments from their customers in Ghana, Nigeria, Uganda.” explains Olugbenga ‘GB’ Agboola, Co-founder and CEO of Flutterwave.

| 3

Since inception, Flutterwave has raised over $55million with strategic investors like Greycroft, and global partnerships from fintechs like Worldpay. With over 200,000 merchants globally, and over $8bn processed, they have been listed on CB Insights’ list of 50 future unicorns.

Our Partnership with Uber Recently, Flutterwave launched Uber Cash across several countries in Africa in partnership with ride-sharing company, Uber. Part of what Flutterwave offers enterprise partners is speed to market, personalized customer support, flexibility, affordability, security and reliability. These abilities are the driving force in the successful partnership between both companies over the years.

“Our arrangement with UberCash allows riders to top up Uber wallets using the dozens of remittance partners active on our Africa-wide network of payment providers. Uber Cash is available to Uber’s ride-hailing operations in South Africa, Kenya, Nigeria, Uganda and Ghana, Ivory Coast and Tanzania. We made that possible with our culture of customer-obsession, innovativeness and empathy for our customer’s customer.” says Olugbenga of the partnership.

“What we do is to relieve customers of the work and resources needed to head to market. We give our Merchants access to an infrastructure that connects a majority of the continent’s leading niche payment technologies into one reliable system.”

“All these are made possible by us integrating the most popular payment methods in these regions and making them available to merchants through Flutterwave. We are building the superhighway payments infrastructure for Africa with a stellar team that works tirelessly to achieve our vision,” he adds.

www.flutterwave.com

6 | Africa Outlook issue 87

Uber Africa has told its story.

Now, why not tell yours? Our monthly magazine Africa Outlook is essential reading for business executives wanting to keep up with the latest in global news and trends affecting African businesses across all industries.

With a monthly coverage of over 185,000 readers, your company can take advantage of exposure in Africa Outlook with a FREE article and FREE digital brochure, as well as access to further digital and print-based marketing tools that could transform your business.

To share in this unrivalled opportunity, contact one of our project managers today!

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