LCC I | E N A E X A F R I CA | E A M A
w w w. a f r i c a o u t l o o k m a g . c o m
Issue 95
MTN CONGO
Mobile services to support greater digital and financial inclusion
TRANSCOM SHARAF
Freight forwarding from Beira
KANSANSHI MINING PLC Mining metals from the heart of Zambia
Adama Soro, CEO at the CMB explores the organisation’s role in realising socio-economic transformation for Burkina Faso
travel magazine ISSUE 07
SOUTH AUSTRALIA T R AV E L G U I D E
Natural wonders and Aboriginal culture in the continent’s gem
T R AV E L B U S I N E S S
T R AV E L G U I D E
Accommodating the remote work revolution
The rock that’s on a roll
OUTSITE
GIBRALTAR
Award-winning photographer, NORI JEMIL, discusses dismantling industry stereotypes and the tireless thirst for travel
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n a changing world, where the travel industry must adapt to challenging global situations, our mission at Outlook Travel remains the same. We will continue to showcase some of the world’s most inspiring destinations, offering real insight and comprehensive travel guides for when global mobility resumes. The major component of the publication takes the form of our Outlook Travel Guides, providing executives, avid travellers and our existing 575,000 international subscribers with the ultimate rundown of all the major economic drivers and thriving hubs across the world, with exclusive input from tourism industry associations and stakeholders – the people who know these places the best. You can join the vast numbers of tourism sector players enjoying the exposure we provide across our digital and print platforms with a range of options, from advertising through to free-of-charge editorials, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and increase exposure.
THAILAND TRAVEL GUIDE
THAILAND This Southeast Asian country is a perennial favourite, thanks to an intoxicating combination of beautiful beaches, world-renowned cuisine and incredible temple complexes Writer: Dani Redd | Project Manager: Jordan Levey
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nown as the ‘Land of Smiles’, Thailand is a friendly country that welcomed 38.27 million tourists to its shores last year. There are plenty of reasons why this Southeast Asian destination is so popular. For a start, there’s the beaches. In the south, Thailand’s two coastlines stretch for miles, populated by swathes of icing-sugar soft sand, the bays speckled with dramatic limestone formations. Thailand is also home to 1,430 islands, ranging from full moon party spots like Koh Pha Ngan to the more off the beaten track Similan Islands, a national marine park popular with scuba divers. Then, there’s the food. Thailand’s noodles, stir fries and curries are beloved around the
world, characterised by the fragrant taste of lemongrass, kaffir lime leaves and tulsi. Every town is bursting at the seams with floating markets, street food stalls and high-end restaurants where you can try delicious local dishes. Thailand’s rich spiritual heritage also attracts tourists. Golden temples and larger-than-life Buddha statues can be found across the country. Visitors can experience colourful religious festivals in the northeast of the country or explore the underground cave shrines in Kanchanaburi and Phetchaburi. Despite Thailand’s popularity, it’s easy to find a quiet corner to relax, be it on a deserted island or an eco-retreat in the craggy mountains north of Chiang Mai.
SEYCHELLES TRAVEL GUIDE
S E YC H E L L E S Most people visit this archipelago in the Indian Ocean for the beaches, but it has much more to offer than that Writer: Dani Redd | Project Manager: Jordan Levey
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escribing the Seychelles, it’s easy to veer into cliché. These picture-perfect islands are blessed with white sand beaches lapped by translucent water, fringed with palm trees and interesting rock formations. The dramatic sunsets, laidback atmosphere and a wide range of luxury accommodation make them a popular spot for honeymooners. The Seychelles consists of 115 islands and some small islets, located
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in the Indian Ocean at a crossroads between Asia and Africa. Most of the action is concentrated around the three major islands: Mahé, La Digue and Praslin. Mahé is the largest and most populous; home to the capital, Victoria, and transport hub to the rest of the islands. La Digue is renowned for having some of the best beaches in the archipelago. Praslin, meanwhile, is home to the idyllic Vallée de Mai nature reserve. But there’s more to the Seychelles
than just the beaches. Trek through the granite mountains and lush rainforests of the Morne Seychellois National Park. Try some of the island’s traditional Creole dishes at a local restaurant. Or if you’re a nature lover, head to Bird Island to observe its population of fairy terns and common noddies, as well as the giant Aldabra tortoises endemic to the archipelago. You’ll be bowled over by what the Seychelles has to offer.
WELCOME FROM THE EDITOR
Mining Matters
EDITORIAL Head of Editorial: Phoebe Harper phoebe.harper@outlookpublishing.com Senior Editor: Marcus Kääpä marcus.kaapa@outlookpublishing.com Junior Editor: Jack Salter jack.salter@outlookpublishing.com
The name Kansanshi is synonymous with Zambian
Junior Editor: Ed Budds ed.budds@outlookpublishing.com
copper mining. As one of the largest copper producers
PRODUCTION Production Director: Stephen Giles steve.giles@outlookpublishing.com Senior Designer: Devon Collins devon.collins@outlookpublishing.com Designer: Matt Loudwell matt.loudwell@outlookpublishing.com Production Manager: Courtney Solomon courtney.solomon@outlookpublishing.com Social Media Manager: Fox Tucker fox.tucker@outlookpublishing.com BUSINESS CEO: Ben Weaver ben.weaver@outlookpublishing.com Managing Director: James Mitchell james.mitchell@outlookpublishing.com Sales Director: Nick Norris nick.norris@outlookpublishing.com Commercial Director: Joshua Mann joshua.mann@outlookpublishing.com TRAINING & DEVELOPMENT DIRECTOR Vivek Valmiki vivek.valmiki@outlookpublishing.com BUSINESS DEVELOPMENT DIRECTOR Thomas Arnold thomas.arnold@outlookpublishing.com HEADS OF PROJECTS Callam Waller callam.waller@outlookpublishing.com Eddie Clinton eddie.clinton@outlookpublishing.com Matt Cole-Wilkin matt.cole-wilkin@outlookpublishing.com SALES MANAGERS Sales & Partnerships Manager: Donovan Smith donovan.smith@outlookpublishing.com Jordan Levey jordan.levey@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Krisha Canlas krisha.canlas@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com PROJECT MANAGERS Cameron Lawrence cameron.lawrence@outlookpublishing.com Kyle Livingstone kyle.livingstone@outlookpublishing.com
ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Finance Assistant: Suzie Kittle suzie.kittle@outlookpublishing.com Office Manager: Daniel George daniel.george@outlookpublishing.com CONTACT Africa Outlook East Wing, Ground Floor, 69-75 Thorpe Road, Norwich, Norfolk, NR1 1UA, United Kingdom. Sales: +44 (0) 1603 363 631 Editorial: +44 (0) 1603 363 655 SUBSCRIPTIONS Tel: +44 (0) 1603 363 655 phoebe.harper@outlookpublishing.com www.africaoutlookmag.com Like us on Facebook: facebook.com/africaoutlook Follow us on Twitter: @africa_outlook
in East Africa, the historic Kansanshi deposit is amongst the oldest in the country and has rewarded humans with precious resources of burnished copper ever since the fourth century AD. This issue celebrates the formidable institution of Kansanshi Mining Plc, as we offer unparalleled insight into the mine and its operations. Peruse an in-depth interview with the company’s executive team, as they endeavour to keep pace with innovation and remain the competitive and relevant enterprise to which the mine owes its esteemed legacy. “We are now one of the world’s top 10 copper producers, operating in multiple countries. We are focused on providing a tangible benefit from everything we do for investors, employees and the many communities that host our operations,” says General Manager, Anthony Mukutuma. “Copper is critical in the global drive towards energy change, and we are at the heart of African copper mining,” states Arnold Malambo, Environmental Manager. Moving north to the climes of West Africa, we unearth the relevance of mining in Burkina Faso to propel the country forwards with the Chambre des Mines du Burkina (CMB). “For a country such as Burkina Faso, this is a defining moment - this is the time to accelerate the socio-economic progress of the country,” says Adama Soro, CEO at the CMB. Meanwhile, Enaex Africa expresses its vision of humanising mining in South Africa through the incorporation of tele-operations in a bid to protect human life in a high-risk working environment, whilst preserving and creating jobs for the local community. Complementary to this, discover the partnership between diamond mining giant HB Antwerp and African talent incubator, WomHub, as they seek to encourage greater gender parity in the STEM workforce. As always, we promise a range of eclectic and inspiring business profiles from diverse companies across the continent; from MTN Congo to the Kenyan Flower Council and many in-between. We hope that you enjoy your read. Phoebe Harper Head of Editorial, Outlook Publishing Africa Outlook issue 95 | 3
CONTENTS A F R I C A
O U T L O O K
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I S S U E
9 5
68
8
I N D U STRY S P OTL I G H TS
14 Chambre des Mines du Burkina (CMB) A gilded future for Africa’s fourth largest gold producer
34 Lesotho Chamber of Commerce and Industry (LCCI)
6 222
The flourishing business climate of Africa’s Kingdom in the Sky
REGULARS
6 NEWS Around Africa in seven stories
8 EXPERT EYE
34
The Age of the Intrapreneur
TOP I C A L F OC U S
10 Women in Business 10
Female-Founded Innovation The collaboration driving job creation and gender parity in STEM
222 THE FINAL WORD What trends do you forecast for the year ahead within your sector?
44 Kenya Flower Council (KFC) Inside a blossoming sector that’s coming up roses
54 East African Manufacturers’ Association The BMO advocating for the new dawn of manufacturing across the EAC
60 Kenya Bankers Association (KBA) The resilient and pioneering finance sector that Kenyans can bank on
4 | Africa Outlook issue 95
AFRICA OUTLOOK ISSUE 95
196
00 68
202
F E AT U R E S
66 SHOWCASING
LEADING COMPANIES
176 Blueline Fibre Optic Across the Water Inter-connecting Madagascar and the world
MINING
F O O D & DR I N K
68 Kansanshi Mining Plc
202 Uganda Breweries
Copper Leading the Way
Brewed to Delight
Mining metals from the heart of Zambia
Iconic brands that celebrate and transform lives
150 Enaex Africa Pursuing explosive growth across subSaharan Africa
150
Zone of Opportunity Stimulating sustainable economic development within Saldanha Bay
Tell us your story and we’ll tell the world
Humanising Mining
196 Saldanha Bay Industrial Development Zone Licencing Company
208 Tanzania Distilleries Limited
176
Spirit of the Nation
SU P P LY C HA I N
Heritage and development in the food and beverage industry
182 Transcom Sharaf Connecting the Cargo Corridor Freight forwarding from Beira
182
208 T EC H NOLOGY
158 MTN Congo
216 Sunseed Group
Connectivity for Congo
Complete Cooking Oils
Mobile services to support greater digital and financial inclusion
Edible vegetable oils manufactured in Malawi
Africa Outlook issue 95 | 5
NEWS
Around Africa in seven stories… TECHNOLOGY
A G R I C U LT U R E
COCKROACH FARMING FLYING INTO FASHION
AFRICA’S GAMING CULTURE LEVELS UP AFRICA’S LARGEST GATHERING of game developers and players has taken place at the annual Africa Games Week in Cape Town. Avid game enthusiasts such as Alexander Poone had the opportunity to celebrate and show off their latest creations at the exciting hybrid event. South Africa boasts the largest gaming market across the continent, with a rapidly rising 40 percent now obsessively playing in some form. A further spike is expected with an estimated high of one billion gamers
across Africa within the next five years. Traditional barriers to the African gaming market are gradually being broken down, with issues such as poor infrastructure, as well as unpredictable electricity and telecoms vastly improving in recent years. There is a high demand for African-made content on a developmental level, and experts believe this is the last untapped consumer audience in the gaming world.
DESPITE NOT BEING a huge crowd pleaser in the animal kingdom, and the less than hygienic reputation they carry, cockroaches are being declared as Africa’s “new oil” as insect farming is on the rise across the continent. This tiny downtrodden creature could provide future solutions to poverty, hunger, and economic struggles all over Africa. They contain surprisingly great nutritional value and are one of 18 species of insect identified as suitable for mass farming. Requiring only scraps of waste to feed on, there is huge potential to this market, as some farmers in Tanzania have already discovered. Daniel Rwehura is a pioneering frontrunner in cockroach farming. Selling each kilo for five euros, he commented in a report by Africa news that he considers the insects his new goldmine.
ECONOMY
THE GIG ECONOMY RISES IN SOUTH AFRICA IN THE CONSTANTLY evolving modern world, we are slowly seeing the decline of the typical ‘9 to 5’ jobs, where you clock in and clock out five days a week. In the face of such global challenges as the COVID-19 pandemic, this outdated structure’s 6 | Africa Outlook issue 95
gradual decline has been rapidly sped up. To combat mass unemployment across South Africa, the Temporary Employment Services (TES) provide the perfect retaliation to this crisis. Therefore, the more adaptable and risk free ‘gig economy’ is being embraced nationwide by businesses looking to avoid being tethered to giant permanent workforces.
TECHNOLOGY
ARTIFICIAL INTELLIGENCE (AI) CENTRE OPENS IN CONGO THE VERY FIRST AI centre for research in Africa has been impressively inaugurated in Congo. The nation’s Prime Minister H.E. Anatole Collinet Makosso recently opened the ground-breaking new facility in the capital of Brazzaville. This research
FINANCE
centre for AI, the first of its kind in the continent, will undertake cutting edge research in AI technology by channelling its focus through a human centred approach. Congo will now act as a regional hub of development for the deepest possible pool of AI focused talent, with Agenda 2063 as the master plan for evolving Africa into a technological powerhouse of the future.
Mastercard and CIH Pay launches in Morocco AFTER THE ANNOUNCEMENT of CIH Pay in Morocco earlier in 2022, the CIH bank and Mastercard have hosted a launch event to celebrate the innovatory new mobile payment method. It will now be possible for upwards of 1.7 million cardholders to effortlessly digitise their existing bank cards, in order to make direct purchases through their mobile devices. This advance in technology circumnavigates the need for a physical bank card for Morocco’s consumers. The lavish unveiling took place at the spectacular Sofitel Tour Blanche Casablanca, where a selection of the nation’s top comedians, musicians and entertainers provided a memorable show for the influencers and key partners in attendance. This comes as CIH Pay’s latest advance in the extension of its omnichannel strategy to enhance the user experience (UX). TRANSPORT
ENERGY & UTILITIES
ETHIOPIA TURNS ON NILE HYDROPOWER PLANT A MULTI-BILLION-DOLLAR HYDROPOWER plant has begun producing electricity in Ethiopia. The Grand Ethiopian Renaissance Dam (GERD) is set to become the biggest of its kind in Africa. Situated on the Nile, the dam neighbours both Egypt and Sudan and has previously raised concerns of a water shortage further downstream, for those nations that depend heavily on the Nile’s waters. However, Prime Minister Abiy Ahmed has reiterated that the dam will eventually aim to export some of its production of electricity to these
neighbouring countries, and such concerns will not be realised. This giant project will eventually cost $5 billion once complete. Ethiopia is Africa’s second most populous nation, whilst also having the continent’s second largest electricity deficit. This project aims to tackle that issue and to provide light for 60 percent of the population that are currently enduring darkness.
Clean mobility progressing in Kenya AIR POLLUTION HAS been a major problem in Nairobi in recent years, with 5,000 premature deaths recorded in 2019 alone. However Swedish-Kenyan electric vehicle manufacturer Opibus is at work to reduce the smog and convert the city’s many motorcycles with traditional combustion engines into electric bikes. These will prove to be extremely beneficial in terms of road safety, financial saving, fuel efficiency and preventing high maintenance cost. Electric buses have additionally started to operate in Nairobi as Kenya makes progressive leaps towards a greener, safer economy and transport infrastructure. Africa Outlook issue 95 | 7
The Age of the Intrapreneur M
ost of us are uncomfortable with being uncomfortable. But, pushing yourself in new ways unlocks new thinking. You end up seeing the world from a different perspective, and as a result, your true potential and purpose starts to shine through. As one of our clients, Lauren is an Account Director at a large advertising agency in New York. Through her agency, she was chosen to engage in a professional development programme with The International Exchange (TIE) whose focus is to disrupt the comfort zones of seasoned professionals, with a view to impact them, their companies, and the world. She found herself working with a marine conservation organisation called the Marine Megafauna Foundation (MMF) in Tofo, Mozambique for 30 days, while still fully employed by her company. 8 | Africa Outlook issue 95
Philippa White, Founder and CEO of The International Exchange talks through the rise of the intrapreneur, and the importance of leaving your comfort zone to create positive change Written by: Philippa White, Founder and CEO of The International Exchange
Her objective was to work with the organisation to create cut through communication materials that would help position them to potential donors. Everyone at MMF was completely dedicated and passionate to the cause – cleaning the plastic from the beaches and working to preserve the ocean life. The impact of their work is extraordinary.
At the end of Lauren’s experience, she wondered how on earth she could go back to the corporate world. But after working closely with the coaches on the TIE programme, and reflecting on the experience further, she was reminded that if everyone left the private sector, how will it ever change? She realised that she could use what she’d learnt about herself and the real world from her programme in Mozambique, to make a positive impact on the planet – using what she knew and leveraging the financial and human resources she had at her fingertips. She realised she needed to look at impacting the private sector from a systemic point of view – which could be a bigger change than simply cleaning up the plastic from one beach. She returned to New York inspired, saying that she could start to be the driver of change by being the one to
EXPERT EYE EDUCATION
come up with the solutions for her clients, rather than sitting back and waiting for that “perfect brief”. Changing perspectives can impact you and your work. But to be able to see the world differently, you need to find innovative ways to really shake things up. This experience got her thinking differently. Lauren commented, “This programme was more of a mindset shift than anything else. It was the catalyst that pushed me to think differently and changed the way I tackle problems. My experience fundamentally changed how I interact with the world.” The TIE programme that Lauren embarked on has been shaking up people’s perspectives about themselves and the world, so they can be and do more. Lauren didn’t know how to articulate it then, but what she unearthed from her programme was the desire to be an intrapreneur. She had that niggle that was ignited from changing perspectives, and she discovered that she wanted to be a changemaker. She wanted to create a
future that she knew was possible but hadn’t arrived yet. By staying where she was and rewiring how things work at her company, and her client’s company from within, she became an intrapreneur. So, what makes intrapreneurs so effective in driving significant change? Intrapreneurs look at the status quo, and it makes them feel uneasy. They can bridge borders, network with different people, and transcend adversity. They are self-aware, flexible, and lead from the heart. They are empathetic, embrace diversity, take calculated risks, and are comfortable in uncomfortable situations. They can collaborate and gain the trust of people different from themselves, see connections between different products, solutions and think innovatively. Everyone has the potential to be an intrapreneur. But the key is unlocking it and all the competencies necessary to make being an intrapreneur a success. This self-awareness and potential to drive change are unlocked by going out into the world and by being pushed in new ways. It doesn’t happen inside of our comfort zones, our areas of expertise or our professional bubbles. And this is where these types of experiential learning opportunities are vital. By taking professionals from their comfortable lives in London, New York or any other big city and having them immersed in issues in Malawi looking to find cleaner cooking solutions, or Ghana to help get African literature out to the world, or in Zambia with Street Children, we help people gain the essential competencies, knowledge, experiences, and confidence that they need to thrive in today’s world. Through these immersive experiential learning opportunities, professionals discover how to both think and feel, and become comfortable in ambiguous situations while remaining flexible and empathetic. They become professionals who want to challenge the
status quo, and fight for more human and responsible business practices. If you want better people, better companies and a better world, you need to combine the three. You can’t work with any of them in isolation. Companies and individuals need to step out of their comfort zones to be the best that they can be. As a result, companies not only need to invest in this type of growth and discovery, but they also need to be open to doing things differently, to adapt to this changing landscape, and to link their work with their employees’ personal purpose. They need to not only empower employees to be a part of this new beginning but also be willing to embrace the change that will be created. For a better world, it’s all about being comfort zone disruptors to create these changemakers, and intrapreneurs.
ABOUT THE EXPERT Philippa White is Founder and CEO of The International Exchange (TIE), a world-leading international leadership programme for commercial professionals looking for personal and professional growth through experiential purpose-driven learning. Following a career in advertising at some of London’s biggest agencies, Philippa launched CPD-accredited TIE in 2006. TIE cohorts receive experiential learning, helping to effect tangible change by working directly with NGOs globally and expanding their horizons. By so doing, they learn how to step out of siloed thinking, work collaboratively, communicate more effectively, and discover their purpose and newfound confidence. www.theinternationalexchange.co.uk
Africa Outlook issue 95 | 9
TOPICAL FOCUS WOMEN IN BUSINESS
Female-Founded Innovation As a boutique pan-African talent incubator for female-led innovation, WomHub is committed to enhancing gender parity in STEM. By partnering with leading diamond company HB Antwerp, we explore a sparkling future for Motswana women Writer: Phoebe Harper
I
n a bid to address the gender disparity prevalent across Science, Technology, Engineering and Manufacturing (STEM), one significant new partnership is breaking new ground for opportunities in Botswana. Enter, the Innovation Lab. A platform dedicated to gender parity and job creation, Innovation Lab results from the partnership between WomHub - a boutique Naadiya pan-African incubator Moosajee for female led innovation, and the diamond mining company HB Antwerp. Bridging the invaluable exchange of knowledge between Belgium and Botswana, the HB Innovation Lab programme offers 30 soon-to-be and recent Engineering and Technology graduates a comprehensive training programme intended to cultivate sector-specific skills and attract local talent for HB Antwerp’s operations facility in Botswana.
The programme honours the traditional artistry of stone polishing and cutting that Belgium is known for, whilst identifying and implementing innovative approaches to diamond manufacturing using diamonds from Botswana. We speak with Naadiya Moosajee, Co-Founder of WomHub, and Margaux Donckier, Communications and External Affairs Director at HB Antwerp to find out more. Africa Outlook (AO): Could you tell us more about the foundation of WomHub – what inspired you to create the boutique incubator? Naadiya Moosajee, Co-Founder of WomHub (NM): WomHub has developed the entire ecosystem for women and girls in STEM across Africa, first through our foundation
WomEng, and over the last six years, through WomHub as a way to create more financial sustainability to the foundation work we have been doing since 2006. We have seen first-hand the gaps in diversity, equity and inclusion in the sector, and made it our mission to support talented, diverse people entering the engineering industry, working from attraction (how to get more women and girls into engineering) to ownership (how to develop and grow women-owned
businesses in the engineering and tech industry) and everything in between. AO: What is your current take on gender diversity across the STEM industry? NM: We have come a long way, but there is still a long way to go. We have a strategy here to build an ecosystem, because the challenge of gender diversity is at every point of
entrance into the STEM industry. Girls as young as five and six are told they are not good at maths and science, or engineering is something that boys do. These formative thoughts have lasting negative consequences. When women eventually make it into the industry, they face a tougher challenge, often working more than twice as hard. We work with female founders on ownership of the sector, the challenges around harassment, and the lack of capital going to female
founders that limits the growth of their businesses. In Africa in 2021, of the almost $5 billion of venture capital that went to entrepreneurs, only 0.98 percent went to female founders. Entrenched gender norms still perpetuate, and biases against women are still rampant, which makes the work that we do and the partnership with HB Antwerp so powerful around building local, diverse manufacturing capabilities in Botswana. Africa Outlook issue 95 | 11
AO: What led to HB Antwerp’s launch of the Innovation Lab? Why now? Margaux Donckier, Communications and External Affairs Director, HB Antwerp (MD): We launched the HB Antwerp Innovation Lab as part of our mission to develop a diverse, equitable and inclusive workforce. The HB Antwerp Innovation Lab prepares and supports Motswanan soon-to-be graduates and new 12 | Africa Outlook issue 95
graduates with skills for the engineering and technology industry. The programme develops leadership, innovation and intrapreneurship skills Margaux required by young Donckier graduates to succeed. We recognise that young graduates don’t just need another training programme — we
need to provide real job opportunities, and we are proud that job creation and gender parity are key areas of focus for this programme. We are extending job offers to some of the participants upon completion of the programme and that for us is really exciting.
TOPICAL FOCUS WOMEN IN BUSINESS
“ G E N D E R E Q U A L I T Y I S N O T O N LY A F U N D A M E N TA L H U M A N R I G H T, B U T A N E C E S S A R Y F O U N D AT I O N F O R A P E A C E F U L , P R O S P E R O U S A N D S U S TA I N A B L E W O R L D ” – MARGAUX DONCKIER, HB ANTWERP
AO: Why is HB Antwerp seeking to attract more female talent in engineering and technology? Do you feel that more progress needs to be made in terms of gender diversity in the diamond industry? MD: We must foster entrepreneurship and innovation in order to cultivate a workforce that is inclusive and equitable for the future. This includes supporting more women in STEM fields. Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful,
prosperous and sustainable world. There’s always more work to be done, and we believe there should be an urgency for the diamond industry to actively embrace a strong ESG charter with more transparency from mine to retail. Businesses can play a critical role in changing attitudes, through supporting the empowerment of women and girls and gender equality, building responsible practices throughout the supply chain and creating inclusive and safe work environments for everyone.
AO: What made WomHub the perfect partner for this project? MD: WomHub is an award-winning organisation created by women to nurture female-led innovation in STEM fields in Africa and to deliver real, tangible outcomes. We have come together from different sectors to collaborate, to drive change and to collectively acknowledge that the time for action is now.
www.womhub.com Africa Outlook issue 95 | 13
INDUSTRY SPOTLIGHT
BURKINA FASO MINING SPOTLIGHT We take a deep dive in to the untapped potential of Burkina Faso’s mining sector and the critical need for the formalisation of artisanal mining Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin
M
ining in Burkina Faso is big business. In this landlocked West African country, whose name literally translates as, ‘Land of the Incorruptible People’, the mining sector is a key ingredient to economic prosperity. As one of the country’s largest industries, second only to agriculture, mining in Burkina Faso contributes approximately 12 percent to the national GDP and employs approximately 65,000 people. As of 2019, the industry was reportedly worth two billion USD. The industry has been carried on a steady upwards trajectory of expansion since the early 2000s, with an average of 1.5 mines per year being established since 2010. Consequently, it is an attractive source of foreign investment. Indeed, in 2018, large-scale commercial mining operations resulted in $600 million of revenue for the national government.
14 | Africa Outlook issue 95
Burkina Faso’s status as a centre of economic attraction is evidenced by the large number of mines that have opened in recent years, the number of foreign investors who have entered the country, and its status as one of Africa’s most important gold producers. The scale of foreign investment has flourished since the 1990s, as the government began to privatise some state-owned entities. This, combined with intensified investment into industrial mines and the evolution of regulatory and legal framework has fed the sector’s development. Nevertheless, challenges prevail that hamper the industry’s progress. Burkina Faso’s status as a landlocked country represents a natural logistical hurdle due to the lack of sea access, on top of heightened security costs. This is complicated further by the relatively small size of the market economy.
CHAMBRE DES MINES DU BURKINA (CMB)
THE MODERN GOLD RUSH Gold is the lifeblood of Burkina Faso’s trade economy, as the country’s top export commodity. Indeed, Burkina Faso stands as the fourth largest and the fastest growing gold producer on the African continent. Other notable resources across the country include zinc, lead, copper, iron, manganese, cassiterite (tin ore) and phosphate. From 1986 to 1997, when gold production was at its peak across the country, Burkina Faso produced over 26 tonnes of pure gold, including 13.93 tonnes from large scale industrial sites, and an additional 12.26 tonnes from artisanal mining. These other resources have a key role to play in the diversification of production that is needed across the sector. Manganese, zinc, lead, copper, nickel, and limestone in particular have all been identified as areas of enormous potential for the industry. This will help to circumvent the fluctuating and unpredictable value of gold on the market, although conditions at present are extremely favourable. Gold and zinc are the two key players behind Burkina Faso’s potential mineral wealth. Gold mines are dotted across the country, particularly in Poura, southwest of Koudougou, and Essakane with smaller gold deposits found in the northern region near to Sebba and Dori-Yalogo. In terms of manganese, substantial resources lie in the northeast surrounding Tambao. Although potentially boasting one of the globe’s richest deposits of manganese, an inadequate transport infrastructure limits its full exploitation.
ARTISANAL MINING It is estimated that there are over 1,000 businesses related to mining spread across Burkina Faso. This is split between major projects and a thriving smallscale and artisanal mining sector. The latter is an area fraught with risk and complications, with many informal operations relying on the use of smuggled explosives. Such sites are also frequently targeted in attacks. Indeed, a report by Al Jazeera suggests that there are presently 800 active artisanal sites throughout Burkina Faso, with the informal mining sector employing and indirectly supporting approximately three million people. Artisanal mining is a historic activity in Burkina Faso, and one that dates back to when this area of Africa was known as the ‘Gold Coast’. To this day, such sites mainly consist of gold mining operations,
with the precious resource at risk of being smuggled into neighbouring Togo, Benin, Niger and Ghana. On top of this, using mercury to separate gold from the ore is a common practice amongst artisanal miners – a method that carries serious health implications. Miners lack awareness of other mercury-free methods, nor is there the sufficient training or financial investment available to access alternative options. As such, more supervision and regulation of these smaller sites is critical, as part of their wider formalisation. Agencies such as the Agence Nationale d’Encadrement de l’Exploitation minière Artisanale et Semi-mécanisée (ANEEMAS) play a crucial role as public structures organising the artisanal mining sector and bringing greater transparency to an area that has the potential to improve the economies of local communities. Complementary to this, the Local Community Development Fund, embedded in the national mining code in 2015, is instrumental in ensuring that host communities benefit from mining operations. This enables the return of wealth at a local level, thereby improving the general business climate of the industry. As evidenced by the rife dangers of artisanal mining, security is a paramount concern across the industry and represents one of the greatest challenges facing exploration companies. Operators must confront significant costs primarily in both security and logistical aspects, as two areas that require a level of investment that can impact margins. In the northern and eastern regions of Burkina Faso in particular, this has impeded drilling operations to the extent that such activity has practically stalled. This is a hurdle that must be overcome if the country is to continue diversifying its mining and increasing production, since the industry’s future relies on new discoveries. In addition to this, active mining companies must adapt their operations by liaising with both government and public administration to maintain uninterrupted activity at the mines, particularly during the recent crisis of the COVID-19 pandemic. This calls for coordinated strategy across the country’s ministries of mining, health, finance and security. Burkina Faso is widely acknowledged as an area of untapped potential in terms of exploiting its full mining capabilities. Yet the dynamism and progress of the sector over the past 50 years and the improvements to come, suggest a promising goldtinted future. Africa Outlook issue 95 | 15
BRANCODI, Leader in the distribution of construction protection equipment
ince 2008, Bran-Codi has stood out as an industry leader in the provision of protection equipment (EPI) across Burkina Faso and beyond. Designed for the ultimate protection of employees working across high-risk industries, Bran-Codi’s comprehensive product range includes steelcapped boots, high-visibility outerwear, hard hats, ear plugs, face masks and much more. The company has an established reputation as a
reliable provider and trustworthy supplier of highquality products dedicated to health security at work. In addition to personal EPI, Bran-Codi can also provide essential products for construction or accident site operations, such as flame cones and signal lights. From its base in Ouagadougou, Bran-Codi and its team of experts are at the disposal of all clients for a range of projects and are fully equipped to cater to a wide variety of undertakings. This spans
sectors including mining, construction, security, and healthcare. Across all projects, Bran-Codi understands that safety is always the priority.
benefit from the company’s extensive distribution network and their expertise in the area as a leading distributor of EPI equipment.
The company boasts a connection with esteemed partners, all of whom are reputed as industry leaders in their respective markets. All partners are rigorously selected thanks to their compliance with Bran-Codi’s strict expectations of quality, performance, reliability and innovation. Some of these professional partners include Delta Plus, Cover Guard, Jallatte, Rabbi, and many more. By becoming a Bran-Codi partner, you can expect to
Bran-Codi’s mission is to satisfy your requirements, whatever the job. We speak with Deputy Director, Chris Alex Bamogo, to find out more about the company’s crucial role in occupational health and safety services.
• 17 years of experience • Over 25 certified partners • 8 countries covered
Africa Outlook (AO): Briefly introduce us to BranCodi with a brief overview of your main products and services, locations, client base, number of employees. Chris Alex Bamogo, Deputy Director (CB): Bran-Codi is a company that sells personal protective equipment (PPE). We have been number one since 2008, in accompanying our partners across different sectors. These include mining, construction, drilling, and others. We are extremely attentive and pride ourselves on a wellAfrica Outlook issue 95 | 17
organised approach to work. We have now grown to over 20 employees, and our main customers include IAMGOLD, Essakan, Roxgold Sanu, SOMISA SA, CIM BURKINA, Geodrill – all of whom can testify to the quality of our various services. AO: What, for you, differentiates Bran-Codi from the competition? CB: We manage to stand out in spite of the competition thanks to our expertise, the quality and price of our products, our large inventory, and the wide range of technical products that we offer. AO: Could you tell us more about your working relationship with CMB? CB: We are linked with the Chamber of Mines of Burkina Faso (CMB) since we are a member of the Alliance of Mining Goods and Services (ABSM). AO: How important are relationships with partners in the success of your business? CB: The success of our company is closely linked to the selection of our internationally recognized business partners. AO: How has Bran-Codi navigated the COVID-19 pandemic? CB: Despite the consequences of the COVID-19 pandemic, we have been fortunate to not have any supply problems. Thanks to our large inventory, we have been able to address the concerns of our customers on time. AO: Looking ahead, what are your priorities for the coming year? CB: Our objective for the year ahead is to maximise on our organisation in order to better meet the expectations of our customers and obtain new partnerships. We will also aim to increase the expertise of our staff and our means of communication, in order to ensure full trust in our services.
E info@bran-codi.net | ventes@bran-codi.net, T 25-38-62-62/25-38-74-00/ 226 70-65-62-09 www.bran-codi.net
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INDUSTRY SPOTLIGHT
Interview: Chambre des Mines du Burkina (CMB) Adama Soro, CEO at the CMB explores the umbrella organisation’s role in realising socio-economic transformation for Burkina Faso through the sector’s progress
GOALS OF THE CMB
Adama Soro
INTERVIEW
CEO, Chambre des Mines du Burkina (CMB)
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ince its inception in 2011, the Chambre des Mines du Burkina (CMB) has acted as a key constituent behind the institutional force of the country’s mining sector. Encompassing over 50 members, the CMB unites all the sector’s major players to advocate for its collective progress. As part of the wider Ecowas Federation of Chambers of Mines, CMB participates on an international level in discussions concerning governance and competitiveness and works closely with government for the sector’s best interests. The CMB provides both national and international audiences with a reliable source of information concerning the mining sector’s status. As a non-profit association, CMB guarantees both transparency and fairness in ensuring the promotion of various actors within the sector as mining in Burkina Faso continues to rise in prominence on the African industrial stage. Amongst its major objectives, CMB is dedicated to the communication and exchange of information related to mining issues with other chambers of mines, national institutions, and international
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The CMB has as its main objective the promotion of the interests of its members. It has the following specific goals: •
To defend the interests of its members and those of the mining industry in general.
•
To promote, develop and defend the competitiveness of the mining industry in Burkina Faso in partnership with the administration.
•
To communicate and exchange information relating to mining issues with other chambers of mines, national institutions and international organisations related to the mining industry in Africa and around the world.
•
To identify and promote cooperative relations with any organisation, association or institution whose objectives are similar to those of the CMB.
•
To carry out operations of any kind, likely to promote, directly or indirectly, the objective pursued by the CMB, its extension and its development.
To achieve its goals, the Burkina Chamber of Mines adopts a strategy, in particular to make known both nationally and internationally, the potentialities and needs of the country.
Protéger l’Homme et la Plante
Saphyto, Burkina leader in public health
INTRODUCTION
© Saphyto
Hygiène Publique by Saphyto has established many partnerships with public services and private companies present in Burkina Faso. These companies operate in various sectors (mines, banks, mobile telephony, lubricants, agri-food, breweries, etc.)
© Saphyto
The areas of intervention of Hygiène Publique by Saphyto are: the treatment of vectors of malaria and dengue fever, industrial and domestic rat extermination, disinfection and fumigation of warehouses and stored products, training, and controlled incineration of waste industrial and domestic.
© Saphyto
© Saphyto
Through its specialized branch, Hygiène Publique by Saphyto, Saphyto is a committed player in the fight against pests and the prevention of diseases such as malaria in Burkina Faso. Hygiène publique by Saphyto firmly believes that coordinated actions between the different actors of society allow an efficient fight against malaria and the control of pests. In addition to our service activities for the population, we work to raise awareness and mobilize companies on the socio-economic benefits of a commitment against malaria.
About Saphyto Saphyto is the leader in Burkina and a major company in West Africa in the supply of agricultural and public health solutions. Its activity revolves around its industrial facilities with a capacity of more than 7 million liters per year.
1937, Av. Gal Sangoulé Lamizana - 01 BP 1390, Bobo-Dioulasso 01 Burkina Faso Tel : +226 20 97 20 18 / 36 - saphyto@saphyto.bf - www.saphyto.bf
INTERVIEW
INDUSTRY SPOTLIGHT
organisations related to the mining industry both across Africa, and around the world. The CMB provides a relevant and clear strategic framework of information in an effort to streamline and consolidate the sector’s activities and best interests. The operation of the chamber is divided between the three major components of the general assembly, the board of directors, and the executive direction. As the voice of the country’s private mining sector, the CMB unites players in exploration, exploitation and mining geoservices, including analytical laboratories, survey companies, and mining subcontractors. Through both its website and the information that the chamber collates, the CMB constitutes an invaluable database of research for the enrichment of mining in Burkina Faso and beyond. CEO at the CMB, Adama Soro, tells us more. Africa Outlook (AO): Can you talk us through the origins of the CMB, how it came about, and its initial vision? Adama Soro, CEO (AS): The mining sector in Burkina Faso has experienced a great expansion since the 2000s. To date, there are 18 mines in operation with the start of the production phase
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“FOR A COUNTRY SUCH AS B U R K I N A FA S O , T H I S I S A DEFINING MOMENT - THIS IS T H E T I M E T O A C C E L E R AT E THE SOCIO-ECONOMIC PROGRESS OF THE COUNTRY” – A DA M A S O R O, C E O, C M B
of the Orezone Bomboré mine due in 2022. This promotes the country to the stage of major mining countries, ranking fourth among mining countries in Africa behind Ghana, South Africa and Mali. Today the sector contributes up to 322 billion CFA F (West African francs) to the state budget, which equates to 15 percent of total state revenues. By 2010, at least 60 international companies were already involved in exploration and mining in Burkina Faso. These included companies from Australia, Canada, Russia and South Africa. More than 600 permits were awarded at that time. Consequently, we can state without hesitation that the mining sector occupies an important position in the country’s economy and with regards to its huge potential, this has been
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INDUSTRY SPOTLIGHT
unveiled by eminent personalities such as the late Dr. Emile Gansonre, a renowned and highly respected precursor of mining in Burkina Faso. It was thus crucial, to gather the key players of the sector under an umbrella organisation which will become not only a defender of the interests of the sector but also an active player in the process of optimising the sector’s contribution to the growth of the national economy. This led to the creation of an organisation that would grow to become the Chamber of Mines that we know of today. The Chamber of Mines is a non-profit association and currently comprises about 50 local and international companies operating in the fields 24 | Africa Outlook issue 95
“THE CHAMBER OF MINES IS A N O N - P R O F I T A S S O C I AT I O N A N D C U R R E N T LY C O M P R I S E S ABOUT 50 LOCAL AND I N T E R N AT I O N A L C O M P A N I E S O P E R AT I N G I N T H E F I E L D S O F E X P L O R AT I O N A N D MINING AS WELL AS G E O S E R V I C E S ( A N A LY T I C A L L A B O R AT O R I E S , D R I L L I N G C O M PA N I E S , M I N I N G S U B CO N T R AC TO R S ) ” – A DA M A S O R O, C E O, C M B
of exploration and mining as well as geoservices (analytical laboratories, drilling companies, mining subcontractors). Since its creation, it has not ceased to make major achievements thanks to the dynamism of its members and the will of the various Presidents who headed the organisation since its creation. I would like to take advantage of this platform to pay tribute to all my predecessors.
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AO: Since inception, how has CMB developed and progressed in terms of its key objectives and the messages it tries to get across? AS: The Chamber of Mines concentrates its efforts on defending the interests of its members. It is thus one of the most influential players in the sector. This strategic position allows it to carry out noticeable actions aimed at improving the socio-economic paradigm in Burkina Faso. Since inception, the Chamber of Mines has thus worked relentlessly to promote, develop and defend the competitiveness of the mining industry in Burkina Faso in partnership with the state government. It also acted as the spokesperson of the mining sector with regards to the public, to whom it must communicate and exchange information on mining issues in Burkina Faso. In fact, the mining sector in Burkina Faso is plagued by many prejudices that overshadow the immensity of the results that are achieved every single year. Indeed, at the close of the 2020 fiscal year, the mining sector alone had generated nearly 2,000 billion CFA F in exports. The mission of defending the interests of its members requires the Chamber of Mines to be in direct collaboration with the government in
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INTERVIEW
INDUSTRY SPOTLIGHT
To achieve its goals, the Burkina Chamber of Mines adopts a strategy, in particular to make known both nationally and internationally, the potentialities and needs of the country.
order to negotiate the implementation of laws and regulations that could both maintain the competitiveness of the sector and make it more effective in terms of the role it plays in the economy of Burkina Faso. The points of negotiation touch on various issues of equal importance. Among them is the mining code, which governs all exploration and production operations within the sector. In order for the sector to foster, there must be a competitive legal and fiscal environment that firstly promotes the development of current operations and secondly attracts more foreign investors operating in the sector. The points of negotiation also touch on the implementation of the law on local content, covering issues of supply, human capital strengthening, and development of the economic fabric. We can also mention points related to VAT, the collective agreement of workers which is under negotiation with the Ministry of Labour, and of course security matters.
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“SINCE INCEPTION, THE CHAMBER OF MINES HAS THUS WORKED R E L E N T L E S S LY T O P R O M O T E , DEVELOP AND DEFEND THE COMPETITIVENESS OF THE MINING INDUSTRY I N B U R K I N A FA S O I N PA R T N E R S H I P W I T H T H E S TAT E G O V E R N M E N T ” – A DA M A S O R O, C E O, C M B
AO: What do you find most exciting about Burkina Faso’s mining industry? AS: It is interesting to see the immensity of the potential of the mining sector in Burkina Faso. The pace at which it grows is phenomenal with an average of 1.5 mines per year being created since 2010. The exploration efforts have unveiled interesting perspectives for the future of mining and for gold in particular. This shows that mining is on
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INDUSTRY SPOTLIGHT
“ I A M G L A D, I N T H I S PA R T I C U L A R P E R I O D, TO B E S E RV I N G AS A P R E S I D E N T O F T H E CHAMBER OF MINES AND AS A VP PUBLIC A F FA I R S O F O N E O F T H E B I G G E S T G O L D PRODUCERS IN THE COUNTRY” – A DA M A S O R O, C E O, C M B
the cusp of being the top contributor to the GDP of the country. It is also exciting news for investors and local communities who will highly benefit from the exploitation of gold. This is what led the government and its mining partners to introduce the law on local content in order to optimise the impact of the industry on the core of the national economy. For a country such as Burkina Faso, this is a defining moment - this is the time to accelerate the socio-economic progress of the country. And for us as mining operators, it’s time to augment our investments and create more assets. I am glad, in this particular period, to be serving as a President of the Chamber of Mines and as a VP Public Affairs of one of the biggest gold producers in the country.
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CHAMBRE DES MINES DU BURKINA (CMB)
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Africa Outlook issue 95 | 31
INTERVIEW
INDUSTRY SPOTLIGHT
The CMB is working with local security forces and the government to guarantee the safety and the continuity of mining and exploration operations.
AO: On the flip side, what are its biggest challenges? AS: Despite the promising aspect of the mining industry in the country, there are still some challenges which I strongly believe can be tackled if all the actors including government and private partners work closely together. The current security situation can slow down exploration activities if a solution is not found. Thankfully, we are working with local security forces and the government to guarantee the safety and the continuity of mining and exploration operations. Another challenge is the COVID-19 pandemic. However, as soon as it hit, mining companies in Burkina Faso deployed their business continuity plans to maintain their production. In light of that and with vaccination efforts, the mining industry has only minor worries and remains confident to surpass its objectives.
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“AT T H E E N D O F O U R M A N D AT E , W E WA N T G O L D T O SHINE FOR ALL IN BURKINA FA S O A N D A S A VA L I A N T O P T I M I S T, I A M C O N V I N C E D T H AT W E W I L L A C H I E V E T H I S , B U T O N LY W I T H T H E I N V O LV E M E N T A N D T H E W I L L O F E AC H AC TO R ” – A DA M A S O R O, C E O, C M B
AO: Have you got any projects in the pipeline you wish to highlight? AS: We are currently exploring different avenues that will allow the Chamber of Mines to no longer depend exclusively on the contributions of its members. Among these avenues we can mention the financing of joint projects with the World Bank, and possible partnerships with the Chamber of Commerce and Industry for the management of airport warehouses exclusively dedicated to the mining sector. All these
CHAMBRE DES MINES DU BURKINA (CMB)
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successfully implement the new law on local content. All our members are onboard and proactively working to make these projects a tremendous success. AO: How do you see the CMB developing over the next five years? AS: My vision and that of my peers is to build a strong, dynamic and autonomous Chamber of Mines that has everything it takes to defend the interests of the sector while working to position mining as a major player in the socio-economic development of Burkina Faso. At the end of our mandate, we want gold to shine for all in Burkina Faso and as a valiant optimist, I am convinced that we will achieve this, but only with the involvement and the will of each actor.
opportunities must be carefully analysed and our experts in the specialised commissions are looking into them. Meanwhile, we are working closely with the state to address the issue of security, to settle the delivery and the renewal of exploration permits and to
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Office 1: 00 226 25 50 50 50 • Office 2: 00 226 25 41 12 92 • Mobile: 00 226 70 25 31 00 contact@cielvertburkinafaso.com • www.cielvertburkinafaso.com
Tel: (011) 314-4021 Info@plasticssa.co.za www.plasticsinfo.co.za Africa Outlook issue 95 | 33
INDUSTRY SPOTLIGHT
SPOTLIGHT ON INDUSTRY IN LESOTHO Katse Dam, Lesotho
In line with its socio-economic development, Lesotho is catalysing a conducive business environment. We discover more about industry in the country Writer: Jack Salter | Project Manager: Krisha Canlas
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he business community in Lesotho, and around the world, has been affected by socioeconomic and political issues in recent times, not least due to the COVID-19 pandemic. Business leaders, who understandably remain busy with the day-to-day running of their respective organisations, tend to find it difficult to constantly
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engage in public policy and advocate for legislation that contributes to growth and prosperity in their country. Working in a conducive business environment is one of the prerequisites and key drivers of economic growth, and the small, mountainous and landlocked nation of Lesotho is no exception.
LESOTHO CHAMBER OF COMMERCE AND INDUSTRY (LCCI)
Economic development With a population of just over two million and nominal gross domestic product (GDP) per capita, The World Bank classifies Lesotho today as a lowermiddle-income country. As Lesotho continues to progress from a predominantly subsistence-oriented economy to one that exports manufactured goods and natural resources such as water, a significant portion of the population now benefits from a higher, more secure level of income.
The economy of Lesotho has historically been based primarily on subsistence agriculture, especially livestock. According to the World Food Programme, the food assistance branch of the United Nations, more than 70 percent of the population in rural Lesotho remains engaged in subsistence farming. Agricultural productivity has been on the decline in Lesotho since the 1990s, however, with unpredictable weather conditions and persistent, recurring droughts necessitating the transition of the country’s industrial landscape. With droughts affecting harvest yields and causing significant loss of livestock, it is clear that Lesotho is highly vulnerable to the impacts of climate change. Complementing Lesotho’s subsistence economy is a well-developed downstream oil sector and
SACU – AT A GLANCE Vision – An economic community with equitable and sustainable development, dedicated to the welfare of its people for a common future. Mission • To serve as an engine for regional integration and development, industrial and economic diversification, the expansion of intra-regional trade and investment, and global competitiveness. • To build economic policy coherence, harmonisation, and convergence to meet the development needs of the region. • To promote sustainable economic growth and development to create employment and reduce poverty. • To serve as a building block of an evercloser community among the people of Southern Africa. • To develop common policies and strategies for areas such as trade facilitation, effective customs control, and competition. • To develop effective, transparent and democratic institutions and processes.
INTRODUCTION
Thankfully, as a member of the Southern African Customs Union (SACU), Lesotho benefits from the conducive nature of the world’s oldest customs union. SACU eliminates tariffs on the trade of goods between Lesotho and the four other member countries, namely Botswana, Namibia, South Africa, and Eswatini. For just over a century, SACU has played an important role in promoting regional integration and the economic performance of all member states. Members such as Lesotho are mindful of the different levels of economic development of each state, and the need for their integration into the regional and global economy. Recognising the challenges presented by regional and global developments, SACU can be a vehicle for deeper integration both within the union itself and the wider region of Southern Africa. Moreover, the African Continental Free Trade Area (AfCFTA) recently commenced trade as of January 2021. This free trade area is the largest in the world in terms of the number of participating countries, comprising all but one of the 55 African Union nations, including Lesotho. As a member of AfCFTA, Lesotho is helping to accelerate intra-African trade and boost Africa’s trading position in the global market, by strengthening the continent’s common voice and policy space in global trade negotiations. AfCFTA aims to boost trade by providing a comprehensive and mutually beneficial trade agreement among member states, covering trade in goods, services, investment, intellectual property rights, and competition policy. Lesotho is also tied into the Common Monetary Area (CMA) of Southern Africa, a longstanding and successful monetary union allied to SACU in which member currencies are valued and exchanged on par with the South African Rand.
Africa Outlook issue 95 | 35
PETROLEUM FUND’S FUTURE PRAGMATIC APPROACH TO THE SUPPLY OF PETROLEUM PRODUCTS IN LESOTHO
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he Lesotho Energy Policy, read together with the Petroleum Fund’s Strategic Plan, both provide a strategic direction that the country should follow in the petroleum sector, noting the pivotal role that petroleum products play in driving socio-economic development. They provide mandate to address issues around their importation, storage, distribution, investment and consumption. Accordingly, the Petroleum Fund undertook a country-wide needs assessment exercise, to determine supply and other gaps, relating to petroleum products, with a view to developing necessary interventions to fill them. The exercise entailed identifying gaps within the petroleum sector value chain; assessment of the structural policy and legislative framework, and any other factors that could be impeding on the supply of products in Lesotho. Following these assessments, recommendations on corrective measures that could be undertaken, and in particular, on capital projects that could be developed, to mitigate supply challenges, were made.
Gap Analysis A sample survey was undertaken in all districts of the country. It covered the whole petroleum sector value chain, within both the supply and demand sides. On the supply side, questionnaires were sent to suppliers of products, while on the demand side, a sample of households, across the country were interviewed. The results show that for the rural households, 95% use paraffin and candles as their main source of energy, 37% have access to electricity and that 66% of the energy consumed is still from biomass. It revealed that for cooking, wood is dominant at 65%, LPGas at
14% and illuminating paraffin (IP) at 5%. For lighting, 62% use IP, 19% candles and 14% use grid electricity, and for heating, 39% use illuminating paraffin (IP), 37% wood and 2% LPGas. The survey further assessed the country-wide demand for petroleum products in the country and an indication is that IP remains the key petroleum product for rural communities and it is utilised by a vast majority of households in Lesotho. Furthermore, the analysis revealed that there was lack of storage infrastructure and limited local participation in distribution networks; the restriction around regulating limited products at different levels; supply of petroleum products remained a challenge, in relation to paraffin and petrol, in the rural areas; and poor Health and Safety Standards in the sale and distribution of products.
Structural Policy and Regulatory Framework This part of the assignment examined the existing laws, institutions, and policies within the Lesotho petroleum sector, in relation to how they singularly, and collectively, make for an enabling environment. The results reveal the necessity to undertake a comprehensive policy and legislative framework review as the current one is deemed as antiquated, and out of touch with global industry standards, market trends, and generally throttling to investment. Among the key legislations that are recommended for immediate review, are the following: • The Fuel and Services Control Act 23 of 1983, and all its ancillary regulations. • Safety guidelines and necessary facilities for filling/ service stations
Projects The following projects are recommended based on the Gap Analysis and on satisfaction that they would meet the Project Evaluation Framework:
will allow the Fund to leverage existing infrastructure, reduce the potential costs of establishing the infrastructure, and other operational costs.
Centralised Information and Procurement System (“CIPS”)
Projects Transaction Structures
The purpose of this system will be to improve reporting, information collection and data analysis for the Fund, by creating a centralised information platform through which all stakeholders will be required to report information to the Fund. It will be rolled out to all stakeholders, across the petroleum value chain.
Internal Distribution Network The Fund will select and appoint 3 key distributors to deliver petroleum products to all registered retail outlets on the Centralised Information and Procurement System (“CIPS”). Each of these distributors will be granted a concession in terms of a region where these distributors will have the exclusive right to deliver to registered outlets in the region, in return for delivering to all of these outlets at an agreed price, including existing filling stations.
Mobile Filling Station Network Development of a network of mobile filling stations in key locations to improve access and distribution of petroleum products in many areas. The purpose of these mobile filling stations is to improve access to petroleum products in under-serviced areas, specifically the highlands and rural parts of the country.
There are various models that have been recommended for financing of these projects, which include the following: • • • • •
Build Own Operate Transfer (BOOT) Build Operate Transfer (BOT) Build Transfer (BT) Build Own Operate (BOO) Rehabilitate Own Operate Transfer (ROOT)
Projects Financial Feasibility For each project, the following key elements will need to be determined: a) Capital requirements b) Estimate funding needs c) Alternatives
Conclusion The Fund will be holding a series of consultative meetings with relevant stakeholders, such as business, financial institutions, and many other institutional players, who will be critical in the successful roll out of the identified projects, and endeavours to ensure that Basotho become direct beneficiaries of this initiative, in regard to job creation and stimulating the economy.
Paraffin Automatic Dispensing Machine (“ADM”) Network Establishing a network of Paraffin ADMs across the country, through which paraffin can be bought directly, with the use of a prepaid card or code, similar to acquiring airtime. The Fund will create a concession for the roll out, support and maintenance of the paraffin ADMs nationally, with a locally-owned company.
Mohasoa is the Chief Executive Officer of the Petroleum Fund.
Self-Contained LP Gas Cylinder Filling Stations
Petroleum Fund
There shall be established the LP gas cylinder filling stations to existing infrastructure such as traditional filling stations, as well as mobile filling stations. This
(+266) 22312137 administrator@petroleum.org.ls www.petroleum.org.ls
Africa Outlook issue 95 | 37
INDUSTRY SPOTLIGHT
other small-scale industries such as clothing, footwear, textiles and food processing, whilst the likes of manufacturing and mining are now also on the ascendancy in Lesotho. Economic and industrial growth in the country is expected to be boosted further in the medium-term by a number of construction-related projects, including the Lesotho Highlands Water Project (LHWP), whilst it is anticipated that Lesotho’s water and electricity subsectors will be enhanced by green energy endeavours. LHWP is a multi-phased transnational project that first commenced in the 1990s, consisting of a system of dams and tunnels to store and transfer water from the catchment of the Orange River in the highlands of Lesotho to the industrial heartland of South Africa, as well as a hydropower plant at Muela. Water is the only major natural resource in Lesotho, yet domestically the country consumes less than six percent of its supply. It therefore made sense for Lesotho to commercialise the excess water it was not consuming, and South Africa represented the ideal customer. Similar to Lesotho, South Africa is an arid country troubled by periodic droughts, unevenly distributed rainfall and unequal water availability, with a considerable portion of the population still without access to clean, safe water and adequate sanitation. LHWP generated growth in the Lesotho economy from the very outset. The country registered an impressive economic performance at the time as a result of the initial construction works associated with LHWP, with a real GDP growth rate that ranked Lesotho amongst the top 10 performers in Africa. Phase two of LHWP is currently underway, implementing a water delivery system to augment the delivery of water to South Africa and a 38 | Africa Outlook issue 95
hydropower generation system, which will increase the current electricity generation capacity in Lesotho.
Private sector development The recovery of the tertiary sector in Lesotho from COVID-19, meanwhile, is set to be accelerated by lessened restrictions and increased travel, as the world learns to live with the disease and gets back to normal. However, COVID-19 has exacerbated Lesotho’s otherwise weak macroeconomic performance and subsequently limited its fiscal capacity to respond to such shocks. For example, more than 60 percent of households in the country rely on remittances received from South Africa every month, but these have dropped significantly as a result of the pandemic. In order to attain its macroeconomic objectives, the Lesotho government strategically places a high priority on parastatal privatisation and private sector development as a primary source of growth and employment creation. Through its National Strategic Development Plan (NSDP), the government of Lesotho recognises the vital role of domestic and foreign investment, and the development of the private sector to drive shared economic growth. Foreign direct investment is actively encouraged in all areas of Lesotho’s economy, with the agriculture, manufacturing, technology/ innovation, and tourism/creative industries in particular earmarked for their potential to promote growth through the private sector. Lesotho has a free-market economy with a relatively open business climate and capital markets, and as a member of both SACU and the Southern African Development Community (SADC), foreign businesses are able to use Lesotho as a gateway to larger regional markets.
Alliance Insurance OUR STORY Formerly known as Alliance Insurance Company, Alliance was founded in 1993 with the vision of creating a unique insurance financial solutions entity. The company, now called Alliance Group Investment Holding Company Limited has expanded its business since then to offer different solutions which are tailor-made specifically for Basotho and their way of life. Alliance majority shareholding is Basotho with over 80%, while the remaining 20% is owned by Alliance Employees Share Trust and non-residents. It employs over 300 Basotho and has over 13 branches. We are proud to be recognized over the years as a leading pioneer of innovation and service excellence in the insurance industry in Lesotho. In 2021, Alliance won 4 awards in the Africa Top 100 Most Admired Brands, becoming the only local brand in the top 10. SOLUTIONS We offer innovative risk and wealth creation financial solutions to all businesses, individuals, retirement funds, corporates, stokvel schemes and public sectors in Lesotho. Short Term Insurance Protect your valuable assets with competitively priced insurance for buildings, plant and machinery, contents, motor vehicles, construction work and livestock. Life and legal Insurance Market leading life insurance and savings products for individuals, families, and societies to cover funeral expenses with cash benefits of up to M164 000. You also have a partner to stand by you throughout your legal problems at an affordable cost. Employee Benefits To maintain a decent quality of life after working years, we introduce the First licensed Umbrella Fund in Lesotho. The fund can be joined by multiple and unrelated employers for their most important assets-employees. The fund not only offers retirement savings benefits, but also risk benefits such as life cover, disability cover, income protection, critical illness, and funeral cover. CORPORATE SOCIAL INVESTMENT – ploughing back to our communities We are proud of our noteworthy achievements in contributing to meaningful and sustainable courses under the CSI umbrella, the latest being a Covid-19 relief fund to more than 2000 street vendors and all registered orphanage homes in Lesotho with M2 million in 2021.
www.alliance.co.ls
INDUSTRY SPOTLIGHT
Interview: Lesotho Chamber of Commerce and Industry (LCCI) Playing a critical role in the development and implementation of policies that affect the business community, the Lesotho Chamber of Commerce and Industry is the country’s ‘Voice of Business’. Executive Secretary and CEO, Fako Hakane, tells us more
INTERVIEW
Fako Hakane Executive Secretary and CEO, LCCI
Africa Outlook (AO): Can you talk me through the origins of LCCI, how it came about, and its initial vision? Fako Hakane, Executive Secretary and CEO (FH): The Lesotho Chamber of Commerce and Industry (LCCI) is a business membership organisation that was established in 1976 under the Societal Act of 1966. As LCCI first came about to address the need for organised business in Lesotho, it is a non-partisan business association that supports, protects and advocates the interests of its members operating legal business in Lesotho and beyond. LCCI has three tiers of membership (Associate, Affiliate, and Ordinary) that pay annual subscriptions. AO: Since inception, how has LCCI developed and progressed in terms of its key objectives and the messages it tries to get across?
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FH: Since inception, we have managed to develop business activities when it comes to trade, goods and services, promote internal and external investment, as well as mobilise resources to promote and support export oriented industrial development. LCCI trains, develops and promotes businesses using local facilities, and instils high standards of customer service amongst the chamber’s membership. We also undertake an educational role to promote the strive for excellence in all commercial undertakings to LCCI members, customers and communities. Finally, LCCI keeps members informed with opportunities, matters affecting trade, commerce, industry, retail, tourism, and so on. AO: What do you find most exciting about working in Lesotho’s industrial sector, and equally, what are its biggest challenges? FH: Working in Lesotho’s industrial sector can be frustrating; however, it poses a challenge that needs serious attention. Much more groundwork has to be put into making the industrial sector tick. LCCI’s biggest challenge is our inadequate resources, as our revenue streams stem from annual subscriptions. AO: How has LCCI navigated the COVID-19 pandemic? FH: The COVID-19 pandemic has affected all spheres of our lives. We could not hold or host
LCCI Members are awarded their Certificates of Participation
INTRODUCTION
LESOTHO CHAMBER OF COMMERCE AND INDUSTRY (LCCI)
Africa Outlook issue 95 | 41
INDUSTRY SPOTLIGHT
LCCI head office
INTERVIEW
LCCI board members meeting
revenue generating activities such as gala dinners or fun walks to name but a few. In the midst of the pandemic, we established a solidarity fund that members have contributed to, and we were able to assist with providing PPE to vulnerable communities. Businesses that were seriously affected by the shutdown were also assisted through LCCI, the government’s COVID-19 relief fund, as well as other organisations. AO: What trends are currently transforming the sector and how are you responding to them? FH: Lesotho is one of the countries that has ratified the African Continental Free Trade Agreement to create the African Continental Free Trade Area (AfCFTA), which reduces tariffs among member countries. LCCI will also help to address barriers that delay the flow of goods and services, and this will in turn encourage investment.
just come to an end. The objective of FAPA was the capacitation of business associations, which was well-executed, and we have some tangible proof of the success of the project. AO: How do you see the chamber developing over the next five years? FH: LCCI in five years will be a force to reckon with because we are finally being recognised by the public sector, which involves us in some policy making decisions. The International Chamber of Commerce also affords us the recognition we desire and assists in training programmes and all of its other activities.
AO: Has LCCI got any projects in the pipeline that you wish to highlight? FH: We were running the AfDB Fund for African Private Sector Assistance project (FAPA), which has 42 | Africa Outlook issue 95
Tel: +266 22321066 lcci@leo.co.ls info@lcci.org.ls www.lcci.org.ls
www.tharolloconsultancy.com Maletsunyane Office Park, Opposite Mpilo Estates, New Parliament Road, Qoatsaneng, PO. Box 2317, Maseru 102, Lesotho +266 525 12345 /+266 22326092 lnfo@tharollo.org.ls
LABOUR LAW AND INDUSTRIAL RELATIONS BUSINESS DEVELOPMENT • Company registration including traders licenses and tax clearance applications corporate governance • Operations management • Human capital management and development • Risk management • Project management • Quality management and compliance
• Development of workplace policies, procedures and systems • Training on various areas of the labour law and labour relations • Mediation & arbitration • Chairing of disciplinary hearings including appeals • Assistance with public and private labour dispute resolution processes • Work permit applications • Occupational safety and health • Assist with workplace compensation and workplace claims
INDUSTRY SPOTLIGHT
SPOTLIGHT ON FLORICULTURE IN KENYA A major industrial force, Kenya feeds the world’s supply of fresh flowers. We delve into the auspicious growth of this vibrant sector Writer: Phoebe Harper | Project Manager: Krisha Canlas
O
n the global floriculture stage, Kenya stands as a world leader. The country is the lead exporter of rose cut flowers to the European Union (EU) and provides fresh cut flowers to over 60 countries across the world. As one of Kenya’s vital industries, the floriculture sector directly impacts the livelihoods of over two
44 | Africa Outlook issue 95
million Kenyans, employing over 200,000 people. Production is centred around the Great Rift Valley, in Lake Naivasha, Mount Kenya, and also Nairobi, extending into the country’s eastern regions. Roses, carnations and Alstromeria are some of the iconic staples of Kenya’s flower supply, alongside a host of other colourful varieties that are stocked and
PHOTOGRAPH ©MARGINPAR
sold in supermarkets around the world. The combination of a favourable climate, robust infrastructure and strength in human resources continues to propel the sector’s growth. Indeed, in recent years the industry has grown rapidly to become the country’s top performing sector, after remittance, tourism and tea. This growth largely results from the sector’s prominent stance on incorporating ethically and environmentally responsible standards, particularly in terms of workers’ welfare and the conservation of natural resources, which have improved significantly. It has also been fuelled by innovation in the utilisation
of technologies such as drip irrigation, fertigation systems, greenhouse ventilation systems and fertiliser recycling processes to name just a few. Despite this promising trajectory, the industry must confront challenges including a strict taxation regime, limited freight capacity, and stringent plant health regulations enforced by the EU. Nevertheless, the future is optimistic with the possibility of sea freight opening new doors in terms of increasing capacity. Indeed, the sector is geared for an anticipated growth of five percent every year over the next five years.
INTRODUCTION
KENYA FLOWER COUNCIL (KFC)
Africa Outlook issue 95 | 45
Digitizing the Floriculture Industry
D
eveloping the biggest marketplace for floriculture in the world into a digital B2B platform with the broadest, deepest and most sustainable range of flowers and plants available worldwide, we speak with Fred Van Tol, Manager International Sales and Account Management and Edwin Gakonyo, General Manager Africa of Royal FloraHolland, to discuss how Royal FloraHolland plans to take Kenya to the World. Royal FloraHolland is a cooperative of growers that has brought together growers and buyers for over 100 years. The cooperative strives for sustainable success for its members by working together with all parties in the floriculture industry, so that the industry continues to grow. At Royal FloraHolland we believe that we are smarter and better together and can do more at less cost than if we each operate on our own. Together, we are becoming increasingly efficient and sustainable and are working towards a future-proof floriculture industry. In 2019, Kenya represented 43.3 percent of the total import of cut flowers representing a turnover of over €361million, making it the number one import country to Royal FloraHolland. Kenya represents an important hub for the global floriculture industry and for Royal FloraHolland.
With Kenya being the fourth largest exporter of cut flowers worldwide, we believe that with Floriday, Kenyan growers will have increased access to new international trade lanes. Via Floriday, we always provide a complete service, from ordering through to delivery and payment. It is how we unburden growers and deliver tailor made solutions to customers. As Royal FloraHolland, we are changing with the industry so that we can continue to do what we have done for more than 100 years: connect growers and customers so that they can get the most out of the market, enabling them to grow with the market and continue to supply the world with fresh flowers. ROYAL FLORAHOLLAND AFRICA AO: Locally, can you tell us about Royal FloraHolland’s footprint in Kenya? Edwin Gakonyo, General Manager Africa: The Royal FloraHolland Local office covers a portfolio of over 120 flower farms in Kenya. Our members harvest flowers across a total of 4,000 hectares in various counties across the country. Every day flowers are harvested, packed and shipped out from our members to reach over 60 destinations across the world. Although the rose is by far the most popular product, more than 110 varieties of flowers are farmed in Kenya. The COVID-19 pandemic resulted in cut flower exports from Kenya to the EU drop especially from April to August 2020 as a result of the shortage of air freight capacity. This logistical disruption directly impacted the turnover of our growers, however, they are showing resilience despite the shortage of freight capacity being an ongoing issue.
ROYAL FLORAHOLLAND ‘CONNECT TO GROW’ Africa Outlook (AO): Can you tell us about Royal FloraHolland’s strategy on going digital and how this will impact the future of the Kenyan floriculture industry? Fred Van Tol, Manager International Sales and Account Management: In order to remain a strong marketplace, we have designed a long-term strategy in close consultation with our members and their customers. At the core of our strategy, lies our transformation from a physical marketplace into a digital B2B platform. On our platform Floriday via order, pay and deliver, our growers sell the broadest, deepest and most sustainable range of flowers and plants to buyers worldwide. These buyers can purchase directly from growers or through the clock auction for same day delivery whether in the Netherlands or anywhere else across the globe.
T +254731069092 E fhservices@royalfloraholland.co.ke W www.royalfloraholland.com
Our local office in Kenya, supports our growers by providing market access services through Global Sourcing Services, and other services like post-harvest and financial services.On Global Sourcing, we facilitate direct trade via Floriday for a range of international clients who purchase products directly from our member growers. Via our Post-harvest services we offer trainings and workshops to farms on post-harvest topics as well as offer farm audits and assistance with sustainability certification. As a cooperative we remain fully committed to sustainable development. We see sustainability as an opportunity and a responsibility to improve the sector together with the stakeholders across the international floriculture supply chain. In Kenya, over 80 percent of our member growers are environmentally certified in line with the FSI basket of standards. We are working diligently to support our growers to get to 100 percent environmental certification. To learn more about Floriday visit https://www.floriday.io/en or if your flower farm in Kenya is interested in becoming a supplier to the Royal FloraHolland auction, kindly contact the Local office via email on fhservices@floraholland.co.ke or call +254731069092
Africa Outlook issue 95 | 47
INDUSTRY SPOTLIGHT
Interview with Kenya Flower Council As the sole voice engaging all the relevant players behind Kenya’s floriculture industry, the Kenya Flower Council continues to support a flourishing sector. CEO Clement Tulezi tells us more
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Africa Outlook (AO): Can you talk us through the origins of the Kenya Flower Council, how it came about, and its initial vision? Clement Tulezi, CEO (CT): The KFC has been in existence for 26 years. The council was born from a necessity, as the floriculture and flowers and ornamentals sector began to grow very fast in the
1990s. It had started as a very small sector back in the 1980s, when the bulk of investors were people from the Netherlands and the UK. In the 1990s, it took a steep trajectory upwards. From the perspective of investors, the country needed an institution that would represent them. Initially, all the institutions that were handling fresh produce in Kenya were united under one umbrella, with one institution handling everything from flowers to fruit and vegetables. But out of all of this, fresh cut flowers and ornamentals was growing the quickest.
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INTERVIEW
A
s a voluntary association assembling independent growers, exporters and service providers in the realm of cut flowers and ornamentals, the Kenya Flower Council has been in operation since 1996. Championing responsible and safe production across the country, with an emphasis on environmental sustainability and workers’ welfare, we explore the Council’s mission and ambition with CEO, Clement Tulezi.
48 | Africa Outlook issue 95
AO: Since inception, how has the Kenya Flower Council developed in terms of its objectives? CT: Since the beginning, there has been a push to demonstrate how responsible we are as a sector. We are an industry that can get a lot of criticism as far
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as environmental and workers issues are concerned. This entails environmental management, within our sector, and also how we manage social issues concerning wages, workers’ welfare, freedom of association and workers safety – everything to do with the people that we work with, including the communities around the farms. As a result, the association educates both the producers on what to do and the market on what we are doing. As a standalone association, we represent the growers, exporters, and investors in the cut flowers and ornamentals sector. We also ensure that they adhere to a strict level of compliance that demonstrates how ethical and responsible we are in our activities. We have been developing and implementing this standard since our foundation in 1996. This is known as the Flowers and Ornamentals Sustainability Standard (FOSS). Our membership has now grown to the extent that we represent 90 percent of Kenya’s growers and exporters of cut flowers. We remain a voluntary association and by no means do we force anyone to become one of our members, but many people want to associate with us because of the value that we bring to their business. We address all the issues concerning growers
50 | Africa Outlook issue 95
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Kenya Flower Festival 2021
and exporters, including improving their capacity, supporting them in all matters of compliance, and showing how responsible we are in terms of how we conduct our business. We help to manage all factors of production, including water, energy, chemicals, and fertiliser. We work closely with government and other local institutions to link them to the market, negotiate with them on trade and help them to understand what compliance regulations are needed. We manage almost the entire supply chain, right from building the capacity of our growers
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INTERVIEW
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INDUSTRY SPOTLIGHT
KENYA FLOWER COUNCIL (KFC)
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Africa Outlook issue 95 | 51
INTERVIEW
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INDUSTRY SPOTLIGHT
all the way to the market. We also represent the members and the industry in engagement with government, regulating bodies and a myriad of other stakeholders. It’s a role that we are pleased to do and one that is as necessary today as it was in 1996. We have remained extremely relevant. We were founded with just six members, but today we boast over 140 growers of cut flowers, and we have close to 80 members who support our sector in terms of services and goods. With our audits and certifications, we have been benchmarked across many other internationally recognised standards, and we sit at an international level in almost all the other organisations that manage our business. AO: What do you find most exciting about Kenya’s floriculture industry? CT: Through the role that we play, we foster and enable Kenya to continue to be on the world map as a major producer of cut flowers and ornamentals. We have grown, and we are now one of the top three producers of cut flowers and ornamentals in the world. We have improved a lot in the cold chain
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“ W E H AV E S O M E S U P P O R T F R O M G OV E R N M E N T I N T E R M S O F R E G U L AT I O N , B U T W E H AV E R E M A I N E D S O L I D O P E R AT I N G AS ONE UNDER KFC AND B E C A U S E O F T H AT W E H AV E G R O W N T R E M E N D O U S LY ” – C L E M E N T T U L E Z I , C E O , K E N YA F L O W E R COUNCIL
systems, meaning that we are able to maintain temperatures that ensure our product arrives on the market as fresh as it would on the farm. We have truly moved in great strides. We take particular pride in our human resources. Even in Rwanda, Tanzania, or Ethiopia, you will find the majority of flower farm managers are Kenyans. We take pride in the skills that we have been able to hone and cultivate within the industry and that has come with a lot of innovation. We are extremely innovative in terms of how we manage our resources, particularly around our skills in agronomy and how we are now managing
our water resources. Since the industry uses a lot of water, we are now using innovative ways to harness and manage this resource, including harvesting it from the rain. We then recycle this water to ensure there is as little waste as possible. In terms of energy, most flower farms now run on solar and geothermal power during the day. We are also doing a lot of research into alternative fertilisers, using natural composites rather than chemicals, and incorporating integrated pest management systems. AO: What are the council’s priorities for the years ahead? CT: We are now moving into sea freight with many ongoing projects in this area. This will be a real gamechanger for the industry. We may overcome the constraints associated with air freight. This will also help to reduce our carbon emissions. Our vision is that by 2030, we will be able to move 50 percent of our flowers by sea. The industry is working on a number of experiments, trials and pilots. Largely, it’s been successful. In Kenya, we are among one of the best paying sectors. I think this is because of the standards that we have initiated through KFC, since all our growers
and exporters must comply. Therefore, when it comes to wages and workers’ welfare, we are way ahead of many other sectors. We have some support from government in terms of regulation, but we have remained solid operating as one under KFC and because of that we have grown tremendously. Yes, we have many challenges, but we have continued to grow every year. We are currently among the top four sectors in Kenya in terms of the foreign exchange that we bring in, so, we have a lot of pride in what we do. We don’t just look at the short term; we have a strategic plan and a long-term view of where are going - for the next 20 years. Despite the challenges that we have, whether local or international, we will believe we can continue to survive and grow.
INTERVIEW
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KENYA FLOWER COUNCIL (KFC)
Tel: 0110098196 kfc@kenyaflowercouncil.org www.kenyaflowercouncil.org Africa Outlook issue 95 | 53
INDUSTRY SPOTLIGHT
SPOTLIGHT ON EAST AFRICAN MANUFACTURING Unpacking manufacturing as a staple for economic prosperity and stability across the entire East African Community (EAC) Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin
E
ast Africa’s manufacturing sector is an area ripe for investment opportunities. The sector represents a key component in securing both stability and economic prosperity across the continent, as a major driver of socio-economic progress. In 2015, it was reported that there were 251,774 firms in manufacturing across East Africa, with an overwhelming majority comprised of small companies employing less than 500 staff each. Today, that number amounts to some 12.5 million manufacturing workers in East Africa, representing 8.5 percent of the workforce. The East African Community (EAC) extends to
54 | Africa Outlook issue 95
Uganda, Rwanda, Kenya, South Sudan, Tanzania, Burundi, and most recently, the Democratic Republic of Congo (DRC). Within these states, Kenya stands as an industrial leader, mainly as a result of the country’s significant private sector activity in the realm of consumer goods. The country has come a long way since the 1980s, when manufacturing accounted for 10 percent of Kenya’s GDP. Kenya’s developed transport infrastructure is also a boon to this development, which has hampered progress in other EAC countries. Indeed, with four of the EAC member states land-locked, whilst two are coastal, different logistical challenges prevail in connecting the region.
EAST AFRICAN MANUFACTURERS’ ASSOCIATION
The African Development Bank is championing the promotion of technology, innovation, productivity and linkages within the manufacturing sector across the EAC to boost its industrial prominence. Numerous trade agreements are in place to streamline and improve trade access, in order to fully exploit the region’s collective force, resources and potential. One such example is the EAC Single Customs Territory, designed to facilitate logistical operations in moving manufactured goods from their port of entry to point of destination. Non-Tariff Barriers (NTBs) are also being removed to streamline trade between partner states. Trade integration through these linkages will help to overcome roadblocks in inadequate infrastructure, and industrial parks with special economic zones are being implemented in
certain areas to experiment with favourable business conditions. Aside from this, there are significant constraints in policy by the politicians across the region that need to be overcome in order to create a truly enabling business environment, including access to finance. This also entails improvements in technological and skills development to ensure a supply of talented labour. Ultimately, this will result in improved market access for industrial players. In keeping with prevailing trends across the global manufacturing stage, many national governments within the EAC are committed to boosting circular economy activities within their respective manufacturing industries. This is a crucial step in maintaining the sector’s competitiveness and appeal to worldwide investors. Africa Outlook issue 95 | 55
INDUSTRY SPOTLIGHT
Interview: East African Manufacturers’ Association
INTERVIEW
Founded in 2005, EAMA continues to unite industrialists in regional manufacturing. Executive Director Godfrey Busiku explores sustaining the sector’s competitiveness and advancing market access
Godfrey Busiku Executive Director
A
s a business membership organisation (BMO), the primary mandate of the EAMA is to ensure the continued competitiveness of East Africa’s manufacturing sector as a major economic force. EAMA’s operations presently span the East African countries of Kenya and Uganda, but the association has ambitious expansion plans to reach Rwanda, Kenya, Burundi, Tanzania, South Sudan, and the Democratic Republic of Congo (DRC). As a consolidated body and united voice championing the sector’s best interests, EAMA prides itself on working closely with institutions across the East African Community (EAC), including regional governments, private sector players, BMOs and other development partners. The association’s activities include targeted digital marketing, the distribution of critical research and publications, networking platforms, financing options and trade promotions. We explore the need to increase the sector’s competitiveness and improve market access with the Executive Director at EAMA, Godfrey Busiku.
56 | Africa Outlook issue 95
Africa Outlook (AO): Can you talk us through the origins of EAMA, how it came about, and its initial vision? Godfrey Busiku, Executive Director (GB): My background is in the private sector, particularly in working with promotions of trade and businesses in Nairobi and Kampala. As a co-founder of the association back in 2005, I had realised after interacting with many manufacturers (especially in Uganda where I was living at the time), that there was a lot of politicking amongst politicians and the EAC. Although we did have BMOs in Kenya, Uganda, and Tanzania, each of these organisations were only addressing the individual concerns of their respective countries. There was no BMO that clearly addressed regional business interests. After conducting some surveys, we saw the East African Business Council (EABC) had similar concepts on how to address the concerns of manufacturers. EAMA was therefore cofounded with intent to complement all these individual efforts towards achieving a vibrant manufacturing industry in East Africa. Ours is a young association. In 2005, we legalised in both Nairobi and Kampala and registered as a business association. So far, we have started operations in both Kenya and Uganda. Ahead of us in 2022, our biggest task is to start operations in Tanzania, Rwanda, and we also want to touch Kinsansha, since the DRC is the newest member of the EAC.
EAST AFRICAN MANUFACTURERS’ ASSOCIATION
We need more partners for our activities and our projects, to get bigger and better. COVID-19 has hampered our plans, but we have great prospects” – Godfrey Busiku, Executive Director, EAMA The motivation behind our foundation was that we initially wanted to contribute to increasing market success through regional advocacy – not just through the EAC but also via regional governments. This is something we continue to do as we speak, since we are officially recognised by the national governments of the countries that we operate in. As such, in some scenarios, EAMA will be invited on behalf of the private sector to present on any matters concerning manufacturers. Slowly, we are becoming a visionary and outstanding association that fights for the best interests of manufacturers. Although our initial vision was to increase market success, this agenda is now shared by Trademark East Africa, and various associations
and BMOs – including the Kenyan Association of Manufacturers – who are doing the same. As a result, we are now moving into promoting manufacturers beyond market success. We mainly do this by implementing trade policies to ensure production and also through consultancy work with the National Association of Manufacturers in the US to understand the feasibility of funding to allow manufacturers to take control of their entire supply chain. Apart from advocating for control of the supply chain to government, we want to actualise our dream of handling financing on behalf of the manufacturers we represent. There’s a lot in the pipeline but we are set to go! Africa Outlook issue 95 | 57
INDUSTRY SPOTLIGHT
INTERVIEW
AO: What do you find most exciting about East Africa’s manufacturing sector? GB: First of all, we have the diversity. When my team and myself thought of co-founding this association, we wanted to question where the untapped potential was in the manufacturing industry. One such area was minerals, which is a rich space with diverse resources, particularly in Uganda or Congo. Both Congo and Uganda are endowed with diverse minerals but both nations lack capacity and expertise to tap into their respective potentials. When you look at the dynamics, the politics, and the competition, it’s all so interesting and exciting. But from a personal point of view, in terms of EAMA’s revenue model, it is an exciting time because we are dealing with a sample space of seven nations. This includes a huge population with an estimated size of 400 million people. That was a decade ago, so it is probably closer to 500 million now! For a business mind, that translates to a huge potential market. When we look at China and India, these countries progress well because they tap into their own market – which is huge due to the population size. So for East Africa, we believe that the sky is the limit because our sample space is so big.
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AO: On the flip side, what are the biggest challenges facing the industry? GB: Of course, COVID-19 hit us badly. Aside from this, we are a region with natural challenges. For instance, Uganda, Rwanda and the DRC – these are all landlocked countries. In contrast, both Kenya and Tanzania benefit from access to the coast. Across the region we have seen something of a trade imbalance. I believe that in Uganda, there is a limited mindset in terms of exports. For instance, Ugandans manufacture maize and export to Kenya. But recently, we have observed that Kenyans have decided that they no longer want Ugandan maize, which causes disputes amongst the ministers and government officials in Nairobi and Kampala. The main cause of this trade imbalance between Uganda and Kenya is lack of consultancy. Each nation produces in anticipation, which at times results in collisions especially in scenarios where each country has surplus production for the same type of good. This is not supportive of the EAC – we are supposed to be a free market, we have so many treaties and the East African Customs Union, but I believe that the region suffers from a local of consultancy and coordination.
EAST AFRICAN MANUFACTURERS’ ASSOCIATION
As an association, we hope to address these trade conflicts through our member companies, through a networking function or whatever meetings we set up, where we can link companies and make sure they are looking at their business plan, and ensuring that there is a guaranteed market for what they are doing. AO: How do you see the industry developing over the next five years? GB: If I can use Uganda as a case study, this is a nation whose manufacturing sector is skyrocketing. As a result of the President’s deals with the Chinese, this has mushroomed various industrial parks across almost every district. One such industrial park might host approximately 100 manufacturers, and every day they are constructing more manufacturing industries.
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In 2007, according to a report from the EAC, an estimate of the number of manufacturers in East Africa, excluding the DRC, was 126,000 companies. As we speak, that number should exceed 300,000 companies and is subject to growth. So, in terms of our prospects for the next five to 10 years, the sky is the limit! Especially now that more people are using technology and our education sector is moving away from a colonial British curriculum to be more focused on creativity which includes manufacturing – even something simple like making a candle. To progress, we need more skilled labour to hire, so that’s why EAMA has been trying to instil vocational training in institutions to learn new skills. We have been trying to actualise probational learning in manufacturing academies and have coordinated with several governments on vocational policies to ensure students are streamlined to be what manufacturers want.
discussions on things that can be of mutual interest to manufacturers. We believe that together, we can. Please contact us and we can talk! We need more partners for our activities and our projects, to get bigger and better. COVID-19 has hampered our plans, but we have great prospects. We have been sleeping, since we have been unable to enter new countries but now that governments are beginning to relax restrictions, we are beginning to re-exist. EAMA is an interesting, unique, and friendly association – people want to associate with us, and we invite manufacturers and service providers to join our membership. Our member base is open and diverse, allowing hands-on interaction with manufacturers and other members at networking events. Our membership is extremely attractive, and we all need such win-win relationships.
INTERVIEW
Tel: +256 393 108 816 M: +256 752 340 350 info@btsuganda.com | www.btsuganda.com
AO: Similarly, what are your hopes for the development of the association? GB: As a young association, we are happy for any support – technical or otherwise – from friends, wellwishers, partners and we are open to ideas and
Tel: +256414671391 Admin@ea-ma.org www.ea-ma.org Africa Outlook issue 95 | 59
INDUSTRY SPOTLIGHT
KENYA FINANCE SPOTLIGHT Interview: Kenya Bankers Association (KBA) We speak with Habil Olaka, CEO of the Kenya Bankers Association as the pioneering association to champion an innovative and inclusive banking sector in Kenya
INTERVIEW
Writer: Phoebe Harper | Project Manager: Krisha Canlas
Habil Olaka CEO, Kenya Bankers Association
A
s an umbrella body for all commercial banks regulated by the Central Bank of Kenya (CBK), the Kenya Bankers Association (KBA) stands as the collective voice behind the East African country’s dynamic finance sector. Promoting industry development and economic growth, we explore the association’s origins and current objectives with CEO, Habil Olaka. Africa Outlook (AO): Can you talk us through the origins of the KBA, how it came about, and its initial vision? Habil Olaka, CEO (HO): The KBA was registered as an industry association on 16th July 1962 by the Registrar of Trade Unions. In its formative years, the main aim of the association was to cater for the interests of the member banks in negotiating terms and conditions of service amongst employees
60 | Africa Outlook issue 95
unable to unionise, and as far as possible to standardise management practices to ensure harmony in the industry. Over time, the ambition of the association has evolved to include promoting industry development and economic growth by engaging the government and sector regulator, Central Bank of Kenya (CBK). Under the current Strategic Plan (2019- 2023), KBA is working closely with its members and stakeholders to intensify efforts towards deepening financial inclusion across all segments of the economy by facilitating access to affordable banking services through enhanced technological innovation and sector-wide efficiency programmes. As the umbrella body of the commercial banks licenced and regulated by the CBK with a current membership of 46 financial institutions, KBA continues to reinforce a reputable and professional banking sector in a bid to best support Kenyans, who entrust their ambitions and hard-earned resources with its member banks. AO: Since inception, how has the KBA developed and progressed in terms of its key objectives and the messages it tries to get across? HO: As the leading industry advocacy group of the financial services sector, it is our ambition to ensure that we continue to be relevant to
KENYA BANKERS ASSOCIATION (KBA)
banks and the banking public. We recognise as banks that our market is dynamic, and we face increased competition both internally across banks and externally from new entrants such as non-bank FinTech’s. We seek to ensure we stay connected to our customers by improving service delivery, lowering the cost of banking services, and advocating for an enabling environment that promotes financial services innovation. In line with our commitment to promote financial inclusion for all, the association has rolled out various initiatives aimed at facilitating access to credit and deepening the participation of vulnerable groups in the financial system. One of these initiatives includes the Inuka SME Programme, which seeks to build capacity among small businesses to formalise and run smoothly in order to access credit. In 2021, the programme reached over 10,000 MSMEs in Kenya. The association has also been keen to remove technological and physical barriers that limit the participation of persons with disabilities in the financial system. Under the Digital Accessibility Project being coordinated by KBA, 31 banks have articulated their initial accessibility plans, setting the stage for a phased-out implementation of accessibility initiatives. The blueprints have been consolidated into a harmonised industry roadmap which we hope will see all banks achieve full accessibility by the year 2024 or sooner. They
include setting up mechanisms to identify persons with disabilities whenever they visit bank branches and having service counters dedicated to this important segment of the banking public. The industry has also developed a Kenyan sign language application called the Deaf Elimu Banking Mobile App, to support bank staff to learn bankenvironment sign language and serve customers better. The association has also sustained research to inform the sector’s policies, regulations, and strategic positions. We are proud of the gains achieved through our research efforts, which have enabled us over the years to coordinate our advocacy programmes from a fact-based perspective. AO: What do you find most exciting about Kenya’s finance sector? HO: I think one of the most inspiring aspects of Kenya’s financial sector is the pace of innovation. This market continues to pioneer some of the most transformative financial innovations that resonate with the prevailing needs. These include trendsetting solutions such as mobile money transfer service, M-PESA. We also have the bank account to bank account funds transfer service, PesaLink, which facilitates the transfer of funds from one bank account to another in real time. Africa Outlook issue 95 | 61
OPPORTUNITIES IN DRC FOR EAST AFRICAN INVESTORS An interview with DR. JAMES MWANGI, CBS Equity Group Managing Director & Chief Executive Officer
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here has been excitement across the East African Community (EAC) about the impending admission of the Democratic Republic of Congo (DRC) as the seventh member state of the regional economic bloc. Kenya’s largest financial institution, Equity Group Holdings, was among the first Kenyan businesses to take a leap of faith in investing in the Central African Country when it acquired two banks in the DRC. It is also at the forefront of promoting trade between the two countries through facilitating business exchange programmes and provision of financing. We recently caught up with the Group’s Managing Director and Chief Executive Officer, who shed more light on the significance of DRC’s entry into the EAC. Equity Group Invested in DRC at a time when not many local or regional businesses were interested in the country. What advised Equity’s bold step? Equity Group’s strategy is to promote financial inclusion by reaching 100 million individuals and enterprises in fifteen subSaharan African countries in line with
our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation. DRC has huge untapped potential and a large market with a youthful population and labour force of almost 100 million people, very few of whom have access to banking services. Equity was best placed to drive financial inclusion for the youth, women, smallholder farmers and micro, small and medium enterprises (MSMEs). The country is also very urbanised with over 40 million people living in urban centres. Other factors that informed our decision include the close proximity to countries we already operate in like Tanzania, Rwanda and Uganda that informed our decision. Additionally, the country has a favorable business environment brought about by the peaceful political transition which has enhanced stability. The current government has been intentional about attracting foreign investment and is working hard to improve infrastructure in a bid to modernise the economy. DRC’s economy is also poised to grow exponentially in the coming years owing to the mineral wealth which is valued at over USD 24 trillion. This makes the country an attractive destination
for those looking for opportunities in the mining sector which range from oil, precious stones, industrial and manufacturing metals and high tech metals. We wanted to be a facilitator and a catalyst as DRC takes off. For businesses across the EAC region looking at investment in DRC, what specific opportunities does the country offer? The DRC government has gazetted nine prioritised sectors but investors in other sectors are free to invest as the economy is liberalised. The mining sector provides investment opportunities and is already contributing to over 41 percent of the country’s GDP. Agro-processing, infrastructure and the ICT sectors also provide prime investment opportunities. Other sectors include health, education, water and sanitation which can be explored by private sector investment to accelerate DRC’s efforts in deepening the quality of life demanded by an increasingly growing middle class. The forestry sector in the Congo Basin is the world’s second largest contiguous equatorial tropical rainforest, covering 314 million hectares. Tourism has a huge
potential as DRC’s ecosystem varieties cover 145 million hectares. The country also boasts of seven National Parks, 57 Reservation Areas and many other tourism sites. How is Equity positioning itself to facilitate trade between the two countries? Equity views MSMEs as the largest vehicles for indigenous capital and entrepreneurship. We have continuously financed the MSME sector across the six countries we operate in. This segment now constitutes 72 percent of our loan and credit portfolio. Additionally, we have recently launched the Africa Recovery and Resilience plan which aims to inject over USD 6 billion into the economies of East and Central African countries to stimulate trade and enterprise as we emerge from the COVID-19 pandemic. This plan will see us lend and advance loans to five million MSMEs and 25 million individual young people and women over the next five years. Equity has also been providing linkages to continental markets for Kenyan and DRC traders. We facilitated a 15-day trade mission to DRC in December last year by mobilising MSMEs from Kenya and DRC. The mission allowed over 350 Kenyan businessmen and women to network and link their businesses with their over 2,000 counterparts in the DRC. We have continued to innovate around our financial services provisions to enable cross-border trade between the countries we operate in. Today, a trader with a bank account in Kenya will transact seamlessly in DRC without the
need to open a local bank account under our integrated banking services offering.
population of 284 million people and a GDP of USD 284 billion.
How does DRC’s entry into the regional bloc plug into the African Continental Free Trade Area (AfCFTA) agenda of promoting intercontinental trade?
What role do you see Kenya playing going forward when it comes to EAC’s engagement with DRC?
The overarching objective behind the AfCFTA is the elimination or reduction of tariff and non-tariff barriers amongst the 54 countries that agreed to be members of the bloc by providing a single market for goods and services, facilitated by movement of persons in order to deepen economic integration and prosperity. The admission of DRC into EAC will provide strategic access to the Atlantic coast of Africa, linking the Indian Ocean to the Atlantic Ocean and providing shorter, strategic and lucrative trade routes across the continent. AfCFTA offers a huge market with a combined population of 1.3 billion people and a GDP of USD 3.4 trillion. EAC after DRC’s entry will contribute a combined
Kenya is an anchor to regional trade, establishing itself as a transport and logistics gateway to East and Central Africa. Kenya Airways continues to be the pride of Africa driving air transport in the region, having established new routes, including to Goma and Lubumbashi in DRC. Kenya’s investments in Mombasa and Lamu ports as well as LAPSETT and Northern Trade Corridors are bound to deepen trade within EAC and beyond. DRC and Kenya have a cooperation agreement under which, Kenya has already started the process of establishing consulate in Goma, North Kivu, and appoint an Honorary Consul in Lubumbashi, Greater Katanga region to deepen Kenya’s diplomatic footprints and facilitate trade. Kenyan SMEs and corporates have also developed a healthy appetite for trade within EAC and the robust private sector will therefore play a key role in deepening trade and investments in the region. Additionally, Nairobi is a globally recognised and mature regional financial hub with a well-developed financial sector that is bound to become even more critical once the Nairobi International Financial Center is fully operationalised. Kenya is thus a key partner in mobilising finance and investments into DRC and the region from both domestic and foreign investors. Africa Outlook issue 95 | 63
INDUSTRY SPOTLIGHT
Indeed, it is on account of innovation that the COVID-19 pandemic health crisis did not degenerate into a financial crisis. The digital readiness of the industry enabled banks to quickly switch to online and mobile banking services, ensuring that there was no disruption of financial services. Beyond technology, the banking industry has also excelled in designing products customised for various customer segments. Innovation accounts for the longstanding reputation for resilience of the Kenyan industry.
“ K B A CO N T I N U E S TO R E I N F O R C E A R E P U TA B L E AND PROFESSIONAL BANKING S E C TO R I N A B I D TO B E ST S U P P O R T K E N YA N S , W H O ENTRUST THEIR AMBITIONS AND HARD-EARNED RESOURCES WITH ITS MEMBER BANKS”
INTERVIEW
– HABIL OLAKA, CEO, KBA
Dr. Olaka with Kamukunji Innovation Hub Patron Hon. Yusuf Hassan during the signing on an agreement that will see over 3,000 youth-led enterprises trained under the Association’s Inuka Enterprise Programme
64 | Africa Outlook issue 95
AO: On the flip side, what are its biggest challenges? HO: Financial inclusion remains a key challenge for the financial services sector. Although access to financial services has risen to 83.7 percent in 2021 compared to 26.7 percent in 2006, more needs to be done. In fact, the 2021 Fin Access Household survey indicates that despite growth in access to banking services, exclusion also grew from 11 percent to 12 percent in 2021. In a bid to deepen inclusion, Kenyan financial institutions are already on a digital transformation journey, primarily aiming to create more channels to access customers. The second aspect is reducing the comparatively high cost of credit in the market. As banks are working to serve MSMEs and clients in remote areas, they need to offer products adapted to the budgets of those clients. We aspire to continue facilitating further access to affordable banking services through enhanced technological innovation and sector-wide efficiency programmes, as well as through enterprise capacity building initiatives.
KENYA BANKERS ASSOCIATION (KBA)
AO: What trends are currently transforming the finance sector in your region? How are you responding to them? HO: While the industry’s growth trajectory has been slowed to some extent by COVID-19, I think the pandemic has also transformed traditional operating and customer service models. In my view, COVID-19 triggered new possibilities. For instance, financial institutions have now introduced the working from home model. The number of customers that need to visit a bank physically to transact has also shrunk, thanks to the enhanced use of technology at the peak of the pandemic. Banks also continue to expand their regional presence, extending the frontiers of their operations beyond geographical borders. I think the industry continues to respond well to this and other prevailing dynamics through continuous innovation. AO: How do you see the sector developing over the next five years? HO: The next five years will without doubt continue to be defining for the industry. The rapid integration of technology will continue to have a massive impact
on the industry, facilitating further access to financial services especially in remote areas. I also see Kenyan banks continuing to expand their footprint in the region, initially into East Africa and then beyond. This will align with the trend being set by their West African counterparts (such as UBA, Ecobank, Access Bank, and Guarantee Trust Bank), which are expanding their footprint in the East African region. The other aspect of projected growth and expansion I would like to highlight regards the constraining nature of regulation. Rapid growth will attract enhanced regulation to contain threats such as fraud, money laundering, financing of terrorism, and issues to do with corporate governance. With expansion, the regulations are bound to continue tightening, causing the cost of compliance to continue spiralling. Talent wars are also bound to escalate in tandem with growth. With increased sophistication, a skilled workforce will demand a premium for their services.
INTERVIEW
Ms. Lucie Pulschke, GIZ Water and Energy for Food (WE4F) East Africa Hub Manager (Centre); Mr. Armin Kloeckner; GIZ Head of the Agriculture Programme (Far Right) and Kenya Bankers Association CEO Dr. Habil Olaka during the signing of an agreement to support agri-based enterprises
Tel: +254-20-222401 info@kba.co.ke www.kba.co.ke Africa Outlook issue 95 | 65
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LEADING T H E WAY
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here are few discoveries that have been as impactful to human development as that of fire. Fire, and the result of energy transference onto solid and liquid matter to varying effects and degrees, entirely changed the way that we - as 2 | Africa Outlook issue 95
a forward thinking and innovative species - have moved ahead, and has spearheaded the way that we have manipulated the environment around us to our benefit and survival for thousands of years. It has been thanks to this
An ancient metal key to modern global growth, we take a look at one of Africa’s largest copper producers, Kansanshi Mining PLC, and speak to executive members of the company about its impact on communities, the environment and the globe Writer: Marcus Kääpä | Project Manager: Joshua Mann
rudimentary energy source that we have been able to cook food, sterilise water, light settlements and warp materials to our will. Where fire was the root of our revelation, the impact of the raw element on such materials allowed us to realise a breadth of opportunities that lay before us, and when we first mined metal ore, we saw only a greater opportunity to grow and evolve.
Indeed, copper stands as one of the oldest metals discovered to date (with its use dating back as long ago as 9000 BCE) and was one of the first metals used to make tools, implements, weapons, coins and status objects such as jewellery, followed by other metals such as tin, lead, gold, silver and hardy iron. Both copper and gold, with malleable natures combined with a shining aesthetic, helped
forward the already embedded and fledgling concepts of trade and commerce that would themselves birth the first basic markets and lead forward collaborative societal growth and prosperity in later ages. Today, the use of copper varies, yet it retains its status as a high-value metal all the same. It is no longer beaten into sharp edges to do battle, nor widely seen
as a status symbol when it comes to jewellery but is instead a key component used in a vast array of industries, tools, technologies and necessities of the 21st century world. Durable, malleable and superconductive, copper is present in almost all forms of battery across the globe, which in turn makes it a critical resource to machinery, vehicles and electric motors worldwide. Africa Outlook issue 95 | 3
Adama Soro, CEO at the CMB explores the organisation’s role in realising socio-economic transformation for Burkina Faso
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rtunity
LEADING T H E WAY
T
here are few discoveries that have been as impactful to human development as that of fire. Fire, and the result of energy transference onto solid and liquid matter to varying effects and degrees, entirely changed the way that we - as 68 | Africa Outlook issue 95
a forward thinking and innovative species - have moved ahead, and has spearheaded the way that we have manipulated the environment around us to our benefit and survival for thousands of years. It has been thanks to this
rudimentary energy source that we have been able to cook food, sterilise water, light settlements and warp materials to our will. Where fire was the root of our revelation, the impact of the raw element on such materials allowed us to realise a breadth of opportunities that lay before us, and when we first mined metal ore, we saw only a greater opportunity to grow and evolve.
KANSANSHI MINING Plc MINING
An ancient metal key to modern global growth, we take a look at one of Africa’s largest copper producers, Kansanshi Mining Plc, and speak to executive members of the company about its impact on communities, the environment and the globe Writer: Marcus Kääpä | Project Manager: Joshua Mann
Indeed, copper stands as one of the oldest metals discovered to date (with its use dating back as long ago as 9000 BCE) and was one of the first metals used to make tools, implements, weapons, coins and status objects such as jewellery, followed by other metals such as tin, lead, gold, silver and hardy iron. Both copper and gold, with malleable natures combined with a shining aesthetic, helped
progress the already embedded and fledgling concepts of trade and commerce that would themselves birth the first basic markets and lead forward collaborative societal growth and prosperity in later ages. Today, the use of copper varies, yet it retains its status as a high-value metal all the same. It is no longer beaten into sharp edges to do battle, nor widely seen
as a status symbol when it comes to jewellery but is instead a key component used in a vast array of industries, tools, technologies and necessities of the 21st century world. Durable, malleable and superconductive, copper is present in almost all forms of battery across the globe, which in turn makes it a critical resource to machinery, vehicles and electric motors worldwide. Africa Outlook issue 95 | 69
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The metal helps power machinery used in industries at the centre of urban growth, such as that of building construction, electronic product manufacturing, and power generation and transmission, with the root of this growth coming from the mining of copper deposits internationally. These mining reserves exist as the start of a process that ensures people all over the planet have access to travel, technology and the digital realm to keep the world moving at a swift and continuous pace.
MINING IN AFRICA The construction industry exemplifies exactly why copper is a high-value and chosen material for use. Copper’s bacteriostatic properties make it the standard material for potable water and heating systems in most developed countries. Copper is considered the safe choice in plumbing, heating systems, taps, valves, roofing, heating and air conditioning systems as it is resistant to oxidation, extreme heat corrosion and chemical corrosion, will not burn, melt or release toxic fumes unlike other metallic options. 72 | Africa Outlook issue 95
AT A GLANCE - COPPER Copper is the most conductive metal after silver. Copper is also ductile, malleable, corrosion-resistant and tough. There is no practical substitute for copper in applications where energy efficiency, safe conductivity, resistance to corrosion, complex geometries or very fine wiring are required. This includes silver - although it may be more conductible, it less resistant, less durable and more expensive. From the tiniest computer microprocessors to the tonnes of wiring, tubing, busbar, cable, bushings and bearings in a power station, copper keeps systems operating longer and at higher efficiencies. A cleaner, greener, more connected future will depend on copper. Its superior electrical and thermal conductivity is essential for the safe and efficient production, distribution and transmission of heat and electrical power and for the batteries, windings and charging infrastructure required for electric vehicles. Renewable energy systems use four to six times more copper than fossil fuel systems. Copper is also essential to telecommunications. ADSL cables, HDSL wiring and UTP lines are constructed of finely wrought copper wires, and interface devices such as modems and routers remain dependent on copper, making it the key to future societal growth across the planet.
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Founded in 1933, Access World is an ‘end to end’ global integrated logis�cs service provider with capabili�es in EUROPE & MIDDLE EAST, ASIA PACIFIC, AFRICA and the AMERICAS. Ac�ve in over 25 countries, with 150+ warehouse facili�es, we employ in excess of 1,000+ staff members handling approximately 20 million tonnes of various commodi�es each year. Reliable and professional, our seamless logis�cs services and extensive interna�onal reach provides for the efficient and first class handling of commodi�es across the en�re supply chain. We can transport your product from one end of the world to the other and everywhere in between.
KANSANSHI MINING Plc MINING
Copper is also a sustainable material; its recycling rate is higher than that of any other metal in the world. Each year, nearly as much copper is recovered from recycled material as is derived from newly mined ore; around 80 percent of the copper that has ever been mined is still in use today. As for gold, in addition to its use in jewellery, the precious metal plays an important role in modern health applications and research, and is used in medicines, lasers, thermometers and genetic research. Gold is the most ductile metal in existence and is a good conductor of heat and electricity, present in computers, and also used when it comes to telecommunications, digital technology and space exploration. Africa is home to a substantial metal and mineral deposits, most notably gold, diamonds, iron ore and gypsum, and two of the globe’s top 10 copperproducing countries are in Africa, with production mostly concentrated across four countries: the Democratic Republic of Congo (DRC), Namibia, South Africa and Zambia.
Gold is the most ductile metal in existence and is a good conductor of heat and electricity, present in computers. It also plays an important role in modern health applications and research.
FIRST QUANTUM – ALTERNATIVE METALS First Quantum’s primary product is copper, but it also produces and has access to significant deposits of nickel. As part of the company’s processing operations, First Quantum also realises significant value from zinc and cobalt. NICKEL Nickel is a strong, lustrous, silvery-white metal that is essential to modern life, from the batteries in your television remote to the stainless steel in your kitchen sink. Nickel is predominantly an alloy metal. Its inclusion in steel, particularly with chromium and other metals, produces strong, corrosion-resistant, heat-resistant stainless steels. About 65 percent of all nickel produced goes into stainless steel. Modern construction, engineering, transport, power infrastructure and consumer goods simply would not be possible without it. Non-steel uses for nickel include magnets, coinage, rechargeable batteries, electric guitar strings and special alloys. It is also used for plating and as a green tint in glass.
76 | Africa Outlook issue 95
The Copperbelt, a natural region in Central Africa that borders northern Zambia and southern DRC, is widely known for its mining operations, and Zambia’s own Copperbelt Province sits in this region. Within this province, operations in the Kansanshi coppergold deposit exist with a long history stretching back for over 1,500 years to the indigenous people who mined high-grade copper from its rich veins. The Kansanshi copper-gold deposit is based near Solwezi, around 160 kilometres (km) west of the coppercobalt reserves of the Zambia Copperbelt and remains today an active area live with open-pit sites.
A
ccess World is a leading provider of specialised warehousing and logistics solutions in Africa and across the globe, for both producers, consumers and traders alike. We offer reliable, value-adding and efficient services to our clients across a broad spectrum of industries within Sub-Saharan Africa. We manage a vast portfolio of customers and commodities throughout Africa, combining the immense capabilities and networks of the Access World Group, as well as our partner agents. Our suite of world-class warehousing operations in South Africa, Mozambique, Namibia, Zambia, and Tanzania, help us to provide our valued customers with a competitive advantage whilst making Access World the obvious choice for logistics and warehousing services throughout the African region. Our warehousing footprint consists of over 250 000 square meters across our African operations, servicing 11 major ports, and with over 17 000 cross border truck movements our presence and expertise are almost unrivalled. With over 20 years’ experience in the mine to market space, Access World leverages our longstanding partnerships with the mines, traders and service providers alike to bring our customers the worldclass service they require. With the knowledge and expertise acquired over the years, our team manages
your shipments from start to finish, allowing our customers to focus on their business requirements Access World not only serves the mining industry by managing southbound logistics flows, but by servicing our Chemicals and Reagents customers we have significantly increased our Northbound cargo flows as well. In addition, Access World boasts Project Forwarding and Handling expertise with a rich history of proven success in executing services to both EPCM’s and Mining entities alike within Africa. This, coupled with our years of experience and expertise in the export of metals and minerals, makes Access World the obvious choice for supply chain solutions across Sub-Saharan Africa. Access World have been honoured to recognise Kansanshi Mining Plc as a strategic partner in the region for over a decade. As a business, we are proud to have provided services over this period to both the mine and it’s trading arm for both metal exports across Sub-Saharan Africa, as well as important import reagent materials that form a critical component in the manufacturing process. We look forward to continuing our long and rich partnership with Kansanshi Mining Plc, whilst providing worldclass supply chain services that will support their strategic long term growth plans in the region well into the future.
E AFR_Commercial@accessworld.com
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KANSANSHI MINING Plc MINING
THE COPPER GIANT Operating the country’s copper deposits via the site is the globally reputed Kansanshi Mining Plc (Kansanshi), a copper and gold mining company under the banner of the international conglomerate First Quantum Minerals Limited (First Quantum). First Quantum is a global copper company that produces copper in the form of concentrate, cathode and anode, and boasts inventories of nickel, gold and cobalt as well. First Quantum operates long life mines in several countries and employs approximately 20,000 people worldwide. The Kansanshi copper-gold mine was the company’s flagship operation since 2005 for a number of years until FQM Trident’ Sentinel
Mine and Conbre Panama came into production. From its two open pits, the Kansanshi copper-gold reserve produces more copper than any other mine in Africa. Since production at Kansanshi commenced in 2005, the company has installed several expansions, and the operation is now capable of producing 340,000 tonnes of copper and more than 120,000 ounces of gold per year.
KANSANSHI MINING Kansanshi employs more than 13,000 people, primarily made up of a localised Zambian workforce, and utilises state-of-the-art technology to extract copper and gold from three different ore types, with world-class efficiency. The Kansanshi mine is
Anthony Mukutuma, General Manager of Kansanshi
owned and operated by Kansanshi Mining, which is 80 percent owned by First Quantum. “The Kansanshi deposit is the site of one of the oldest copper mines in the whole of Zambia and dates back to the fourth century A.D,” introduces Anthony Mukutuma, General Manager of Kansanshi. “It has been mined intermittently since that time by various parties including ZCCM Investment Holdings (ZCCM - formerly Zambia Consolidated Copper Mines Limited) which, in 1969, approved the development of an open pit mine to treat high grade oxide ore.” In 1998, ZCCM formally ceased operations at the Kansanshi deposit and initiated closure and reclamation activities. Subsequently, Cyprus Amax Minerals Corporation (Cyprus Amax) acquired a majority of the ownership of surface leases and selected assets associated with the area from ZCCM and the Government of the Republic of Zambia (GRZ). After completion of metallurgical test work and a feasibility study to determine the potential for a 124,000 tonne per annum copper production 80 | Africa Outlook issue 95
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ith more than 28 years of experience in the mining sector, at AMSI Zambia we know how challenging the mining environment can be, and what it takes to deliver projects on time, every time with the highest level of client satisfaction. Spanning more than a decade, AMSI Zambia has proudly been of service to FQML. Over this time, we have focused our efforts on delivering a world class level of service to ensure that everything we do is done with professionalism and integrity, two of our core company values. From humble beginnings back in 2010 when we first installed a small part of our fuel management system at Kansanshi mine to monitor the offloading of one fuel bowser, it was evidence enough that the Jigsaw Fuel Management System would be of great value. Over the past 11 years we have grown with FQML and a lot of the system has been designed around experiences at Kansanshi mine. The system itself has always been a world leader but through the opportunities and passion of our teams on the ground we can say with confidence that there is no better fuel management system on the market. With our dedicated teams on the ground, We Supply Specialised labour contracts covering both Expatriate and national labour teams. We proudly have our own designated “shut pad” on site where we carry out full rebuilds and refurbishments on most of
the large earth moving equipment and have a large focus on safety, compliance, and professionalism, that extends across the whole company. It has also been a big drive of AMSI Zambia to empower and assist national Zambians by upskilling them and supplying their services to the mine. Through empowering the Zambian people, we are helping to build a brighter future in Zambia. Additionally, we have an engineering and steelworks workshop located 200m from the entrance of Kansanshi. This allows us to design and fabricated customized pieces of equipment, signs, Cable trees, customised trailers and much more. We are currently putting the final touches on our new warehouse to accommodate filtration components; we will stock and keep spares of most common filtration products used on site to ensure that our client’s fleets are always in operation and eliminating down time. We expect our first shipment of filtration to arrive end of March 2022. In partnership with FQML, AMSI Zambia always keeps one eye on the future as we are always looking for new ground-breaking technologies that will assist us in building a robust and sustainable future for our clients. We are excited for what the future holds and look forward to every opportunity that comes our way.
WWW.AMS.SC
The Power of One partner for your mining solutions Combining sensor, software and autonomous technologies, Hexagon helps mines solve complex challenges by integrating critical workflows. Digital transformation demands more than partial solutions. Hexagon is the complete solution, connecting all parts of your mine.
One platform. One partner. For the life of your mine. | Visit hexagonmining.com
site, Cyprus Amax was acquired by Phelps Dodge Corporation in 1999. “First Quantum Minerals purchased its 80 percent interest in Kansanshi from Cyprus Amax in August of 2001 and went on to redesign the process flowsheet to treat sulphide and oxide ores separately,” Mukutuma explains. “Commercial production at Kansanshi was achieved in April of 2005, and four years later, a plant to treat transitional (mixed) ore was designed and commissioned. “Today, the Kansanshi operation includes three concentrators producing copper concentrate and gold dore (from gravity concentrators in the milling circuit and the associated gold plant) and a leachSX-EW circuit that produces Grade A copper cathode. The concentrates are treated at the Kansanshi Smelter (commissioned in 2013), to create copper anodes and at the highpressure leach plant to produce copper cathode.”
MINING AND PROCESSING Kansanshi is a vein deposit, with economic copper and gold 84 | Africa Outlook issue 95
“THE KANSANSHI DEPOSIT IS THE SITE OF ONE OF THE OLDEST COPPER MINES IN THE W H O L E O F Z A M B I A A N D D AT E S B A C K T O T H E FOURTH CENTURY A.D” – A N T H O N Y M U KU T U M A , G E N E R A L M A N AG E R , KA N SA N S H I MINING PLC
mineralisation occurring in three ore-types: primary sulphide, mixed supergene and oxide. Mining is carried out in two open pits, Main and Northwest, using conventional open pit methods employing hydraulic excavators and a fleet of haul trucks with electric trolley assist on the waste haul. Ore treatment is flexible to allow for variation in ore type either through an oxide leach circuit, a sulphide flotation circuit and or a transitional ore (mixed ore) circuit. Sulphide ore is treated via crushing, milling and flotation to produce copper in concentrate. Mixed ore is treated through a similar circuit with the option to treat the flotation concentrate via the high-pressure
leach (HPL) circuit. Oxide ore is treated via crushing, milling, flotation, leaching and the SX/EW process to produce a sulphidic and gold bearing flotation concentrate as well as electro-won cathode copper. Gold is recovered from all ore types by six gravity concentrators. Gemini tables treat the gravity concentrates and produce a high-grade concentrate for direct smelting to gold bullion. A portion of the copper concentrate produced from the sulphide and mixed ore circuits is treated in a HPL facility. Copper is recovered by oxidation and leaching in autoclaves, and gold is recovered from HPL residues via an acid-resistant gravity concentrator.
Autonomous mission management system is next generation of fleet management
N
o vision of mining’s autonomous future can be fully realised without the technology to manage your fleet and equipment. Hexagon’s autonomous mission management system is the beating heart of this vision, and the key to advancing the next generation of mine automation. Launched in partnership with Liebherr at last year’s MINExpo in Las Vegas, NV, the autonomous mission management system – or mission manager, for short - orchestrates autonomous fleet and unmanned mine traffic movements throughout the mine for optimised autonomous haulage. It is fully integrated with Hexagon’s fleet management and enterprise analytics and reporting portfolio products. The mission manager will be used in the mine automation options offered by Liebherr to customers. A high level of safety, flexibility and seamless integration are the hallmarks of Liebherr’s offerings, which include its complete autonomous haulage solution. The partnership embodies both companies’ vision of open architecture, next generation mine automation The one-platform approach to integrating multiple life-of-mine solutions empowers mines pursuing an autonomous future. Hexagon, a global leader in digital reality solutions, calls this the Power of One - a holistic, life-of-mine smart solution connecting sensors and software, infield apps and cloudware to empower digital transformation.
For the first time, one technology partner connects the mine to the boardroom via a single onboard ecosystem comprising a smart computer, antenna and display. Fleet management is now addressed by a scalable, platform-agnostic answer to challenges previously addressed by point solutions and multiple vendors. Mission manager follows in the footsteps of Hexagon’s vehicle intervention system (VIS), which was launched in 2017 to detect and prevent collisions by automatically slowing down or even stopping a haul truck if an imminent collision is detected. VIS has since been deployed on three continents, in 10 mines and almost 500 haul trucks with more than two million operational hours. “For mission manager, we followed the strategy that made the vehicle intervention system a success,” said Andrew Crose, VP-Autonomous, Hexagon’s Mining division. “This meant being OEM-independent but working directly with OEMs like Liebherr to develop the system, listening to customers to innovate beyond the legacy state of the art that existed, and building towards ISO and other standards with our OEM and customer partners to ensure a more futureproofed solution. “Usability, scalability, state of the art and nextgeneration technologies – all of this helped to deliver a solution capable of addressing the challenges facing our customers and the industry.”
hexagonmining.com
Turnkey Project Solutions
Z A M B I A
basic concepts, dynamic solutions
COMPANY SERVICES ZinPro provides services such as Draughting, Turnkey Project Solutions, Civil Construction, Structural and Plating Manufacturing, Structural Erection, Mechanical Installation, Electrical Design and Installation; and Instrumentation.
CONSTRUCTION Our dedicated construction crew are capable of erecting and installing major deliverables on surface and underground.
DESIGN & DRAUGHTING
ABOUT US ZINPRO Zambia is an EPCM (engineering, procurement and construction management) company specialising in turnkey construction projects for the mining industry. ZinPro Zambia aspires to support the mining industry by applying its experience and expertise to provide Turnkey Project Solutions in a safe, effective and efficient manner. Plot No. 2 Monmouth Close, Off Chiwala Avenue, Kitwe, Zambia +260 962 904 261 info@zinpro.co.zm www.zinprozambia.com
ZinPro’s in-house engineering and design team are capable of advanced mechanical, structural, civil and process design.
STRUCTURAL MANUFACTURE & PLATING Structural manufacture of tip structures, shaft bunton sets, loading bins, conveyor structures, pipe stands and pipe fittings. We have a CNC Profile cutting machine for all kinds of steel plates and liners shapes.
COMPREHENSIVE PROJECT MANAGEMENT The ZinPro Zambia management team comprises of over 300 years of combined experience in the mining and construction industry.
Efficiency • Effectiveness • Flexibility
SHAWONGA Enterprises Ltd
Engineering Solutions For The Mining Industries Telestack
Mobile Bulk Material Handling
GET IN TOUCH
LU B R I C AT I O N
MacLean Engineering
Tel: +260 212 230 331 - Mobile: +260 966 993 469 / +260 966 860 811 Email: info@shawonga.co.zm Web: www.shawonga.com Physical Address: Plot 1254 Zomba Road - P.O. Bo x 21724, Kitwe, Zambia
KANSANSHI MINING Plc MINING
LEADING THE WAY Today, Kansanshi operates in Zambia as Africa’s largest copper provider in the region’s mining industry. It is the company’s forward-thinking and people-centric mentality that stands it apart from others in the sector, leading through a mixture of expertise and perseverance. “Kansanshi’s differentiation is a result of First Quantum’s ethos evident in the company’s history over the last 25 years,” Mukutuma says. “First Quantum’s people are well-known for a ‘can do’ attitude and specialist technical, engineering, construction and operational skills, which allow us to develop and successfully run complex mines and minerals processing plants. “As a company and as individuals, we strive to go beyond the goals set by other companies. After 25 years of operations, we are now one of the world’s top 10 copper producers, 88 | Africa Outlook issue 95
“ I T I S O F C R I T I C A L I M P O R TA N C E T H AT WE KEEP ABREAST WITH DEVELOPMENTS I N T E C H N O LO GY A N D CO N T I N U E TO B E I N N O VAT I V E T O S T R E A M L I N E A N D B E T T E R O U R O P E R AT I O N S F O R O U R S H A R E H O L D E R S , C U S TO M E R S , E M P LOY E E S A N D T H E ENVIRONMENT” – A N T H O N Y M U KU T U M A , G E N E R A L M A N AG E R , KA N SA N S H I MINING PLC
operating in multiple countries. We are focused on providing a tangible benefit from everything we do for investors, employees and the many communities that host our operations.”
ZAMBIAN MINING The mining industry itself is vast in Zambia. The country has access to a multitude of rich metals and minerals that are key to the production of modern necessities and core to the
continued growth of infrastructure all across the world. “The mining industry in Zambia and the wider African continent has supported economies and wrought development, and continues to do so to this day,” Mukutuma elaborates. “However, the industry also continues to largely divide opinion - in my view - due to the huge expectations that large scale investments inherent in mining come with.
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rom the time First Quantum Minerals Limited started the construction of the Kansanshi process plant, Shawonga Enterprises Limited, a Zambian engineering company based in the city of Kitwe, was a business partner. While representing the OEMs of world class capital mining equipment, which include Breaker Technology Inc. and Osborn Engineered Products, both belonging to Astec Industries Group, Shawonga Enterprises Limited has been involved in the design, supply and installation of the conveyor system, feeders and rock breakers. Shawonga services and maintains equipment to the OEM’s standard, whilst equipping the operators and maintenance personnel with the necessary skills and continuous training. Shawonga Enterprises Limited is the leader in rock breakers in Zambia. Shawonga has invested in highly trained technicians and keeps aftermarket parts worth over USD1million in its warehouse in Kitwe, to support its customers within the region. Shawonga believes in excellent aftermarket support to ensure the lifespan of equipment is fully supported by investing heavily in aftermarket support in terms of highly trained and highly skilled technicians, good in-country parts stock holding, and a well-equipped workshop facility. Shawonga, in partnership with various OEMs, supplies mining equipment ranging from the design stage to a whole crushing plant, as well as individual equipment including but not limited to crushers, modular crushing plants, feeders, screens, rock breakers and underground utility vehicles. The underground utility vehicles range
T +260 212 230 331
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includes personnel carriers, scissor lifts, rock bolters, shotcrete sprayers, concrete mixers/transporters, scalars, explosives chargers, fuel bowsers, fuel and lubrication service trucks, flat beds trucks, crane trucks and cable bolters. The equipment ranges from basic editions to more intelligent versions, with battery powered, energy efficient equipment also available. OEMs represented include Astec Industries, MacLean Engineering, Boundary Equipment, PMSA and Ionic Mechatronics. Other OEMs Shawonga represents, who are providers of specialised services, include Beka Lubrication, Linburg Engineering and Gray Tools. Through its subsidiary, Zinpro Zambia Company Limited, Shawonga has been offering full house engineering services, from engineering designs to procurement and construction management. Zinpro specialises in turnkey project solutions and offers a wide range of engineering services, including but not limited to draughting and engineering designs, mechanical installations, structural manufacturing and plating, construction, electro-mechanical installations, specialised services such as shutdown services, and many more. Zinpro has been involved in various projects at various mine sites with a strong success rate, as well as a very good safety record. Zinpro, whose strength is in utilising basic concepts to come up with dynamic solutions, is very flexible, efficient and effective in its operations.
E info@shawonga.co.za
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KANSANSHI MINING Plc MINING
“For example, the expectations of localised host communities when it comes to job provision and business opportunities tends to be huge. Given this setting, mining operations have to engage a diverse and dynamic stakeholder base and find win-win situations in order to be successful and sustainable. “This combination of geology, the many disciplines of engineering, finance and a diverse and dynamic stakeholder base makes for an exciting space indeed - challenging for sure, but very exciting!” However, the last two years have had their impact on the Zambian mining industry and Kansanshi itself. “The COVID-19 pandemic has impacted life around the world, with a number of lives lost, and people’s livelihoods altered in profound ways, with many people losing their source of income or having their earnings reduced drastically as a result of the pandemic,” Mukutuma informs us. “I always state that the most significant impact has been on children’ education. Growing up in lockeddown communities for the children of this generation will inevitably have long-term impacts. “As a business, we were determined to keep operating through the pandemic. We achieved this by instigating protocols in the workplace to mitigate COVID-19 transmission (using the five golden rules) and investing in state-of-the-art COVID-19 testing, contact tracing and medical facilities, and working with the Zambian Ministry of Health to make vaccines available to the workforce and their families.” Kansanshi continued operating throughout the pandemic and is currently taking the lead in driving vaccination campaigns at the mine site and within the local community.
INNATE INTEREST For Mukutuma, this dedication towards employees and the 92 | Africa Outlook issue 95
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ega Industries Limited is a name synonymous with pioneering achievement in the mineral beneficiation, mining and bulk solids handling industries, world over. Tega’s philosophy is “Partnerships in Practice” i.e to uphold traditional values through the empowerment of professionals, providing technical and economically unrivalled solutions to complex problems in mining, beneficiation, material handling and engineering.
cases, processing plant taking seven to nine days for installation of liners, waiting time has been reduced to approximately three days with DynaPrime. As a result, mines got additional days of production which is a huge advantage,” Gautam says.
Less manpower and increased safety:
DynaPrime liners do not need a lot of people for installation. “Back in the day you’d need five to ten Tega Industries Limited is a Public Listed Company people to do the installation of steel liners inside the in India and has manufacturing set up in India, mill. Right now, you can reduce that number to do the South Africa, Australia and Chile. Through these 6 such Tega Dynaprime liners,” Gautam An idealinstallation liner forofhigh-aspect SAG mills Manufacturing Units, Tega supplies its products in explains. from 34 to 40ft in diameter more than 90 countries in the World. During the installation of the liners, safety aspects of According to Vishal Gautam of Tega Industries, the liner have been improved whereby installation of DynaPrime liners have various advantages such the Liner can take place from the outside the mill with as easier handling of the liners and increased mill less people inside the mill. availability. Gautam further adds that this range of mill liners gave Tega a competitive advantage which Reduced mine stoppages: Resilient design cushions encouraged the company to tackle bigger mills in Unique design ensures high-energy impacts and the global market. The company has since become Depending upon the Operating in a better controlConditions, on lifting avoids player in the market with the DynaPrime a dominant lot of cases, theangle liners last longer than steel liner, throughout liner life liners. mines can run more continuously rather than having regular stoppages during the year. Less stoppages subsequently lead to increased tonnage production Tega DynaPrime and sustainability which leads to more revenue for mines. In addition to having numerous advantages for Grinding Mills, Tega DynaPrime also contributes to Servicing, product quality and design of Tega the sustainability in the mining industry. Gautam DynaPrime takes on a customer centric approach. outlines three ways in which DynaPrime supports a “That’s how we are bringing in the product, sustainable mining environment. supporting the customers, increasing their mine life in their operations. That’s how we are doing our bit to build a sustainable environment,” Gautam concludes. Bigger and lighter
maximizes mill
availability
unlocks mill
capacity
liner cracks
In most cases, DynaPrime is bigger and lighter info@tegaindustries.co.za compared to a steel liner and has a reduced installation time. Gautam explains that in some
| www.tegaindustries.co.za
Collaborate.Innovate.Transform
Wheals Construction Ltd was established in 2001. Majoring in Civil Engineering and Thermal Plastic Engineering. The company was established because of the big response to the need in Zambia and Congo DRC : Due to increase of demand in the construction sector in both the mines and government sectors to develop the concept of providing the best services to the construction and mining companies. Adopting high new science and technology in thermal plastic piping systems in Zambia and the neighbouring countries. The limited resources to supplying and installation of thermoplastic piping products and equipment. Create employment opportunities for the Zambians and neighboring countries communities.
For more information: Email: misheckmumba@yahoo.co Cell: 260966848595 Cell: 260976138032w Kitwe Office: +260 212227420 www.whealsconstruction.com
Wheals Construction Ltd is committed to developing and introducing good new products and services with high technology, super and efficient services for its customers, the company seeks for co-developing forever and will develop forever. This is by developing work force and management strength by ongoing training. The company strategy is to increase turn over annually by training building, installation personnel and sales represtative in this dynamic market. Our equipment’s and personnel levels are very carefully managed to meet the demand.
KANSANSHI MINING Plc MINING
ACTOM Turbo Machines ACTOM Turbo Machines (Pty) Ltd is a turbomachinery and high-speed rotating equipment specialist company based in Sasolburg, South Africa. We offer turnkey solutions from mechanical to electrical, turbines and generators, with a 24-7 standby crew providing excellent response time and quality workmanship. ACTOM Turbo Machines provides site services and workshops for the maintenance, overhaul, repair, erection, engineering and mechanical servicing of gas and steam turbines, gearboxes, pumps, compressors, blowers, fans and centrifuges including all mechanical auxiliaries. We also hold strategic international OEM partners to complement our local services.
FIRST QUANTUM – A BRIEF HISTORY First Quantum was incorporated under the Company Act (British Columbia) on December 21, 1983, under the name of Xenium Resources Ltd. The company changed its name to Xenium Resources Inc. on January 25, 1984, to Zeal Capital Ltd. on November 29, 1989, and to First Quantum Ventures Ltd. on June 16, 1993. On July 18, 1996, the company entered its carnation as First Quantum Minerals Ltd. Today, First Quantum Minerals Limited has operations in Australia, Finland, Spain, Mauritania, Panama, Turkey and Zambia; and projects in Argentina and Peru.
community at large is an invaluable part of Kansanshi as a business. The COVID-19 period has pushed forward the necessity of digital communication and connection on top of other aspects of life, and also represents the ever-changing nature of the mining industry that Mukutuma has been intrigued with since his youth. “I grew up in Kabwe (Zambia), a major mining town at the time. I was intrigued by how the miners got dirt out of the ground and processed it into valuable products such as zinc and lead, in the case of Kabwe Mine, or copper and cobalt for the mines on the Copperbelt,” he says. “I liked 96 | Africa Outlook issue 95
the physical side of mining. After all, underground mining to a child sounds like an adventure, and I was engaged by the science and the business side of things too. “Even as a 10-year-old child, it was clear that mining as a business was the anchor of the economy of Kabwe and I was keen to be part of this important industry. I wanted to get into an industry that was considered key to the country.” This led Mukutuma to study the sciences in secondary and high school, and thereafter leading to studying Chemical Engineering with Minerals Engineering at the University of Birmingham (UK).
Our premises includes a 3000m2 workshop and offices with over 140 permanent employees, comprising of a machine shop with various CNC and conventional lathes; a fabrication department for welding and boiler making; a white metal department for casting and machining bearings; a fitting department for inspections and assembly; as well as sandblasting, glass-bead blasting, painting, nondestructive testing, and wash bays. Our field service contingent is one of the largest in South Africa; including more than 15 rotating equipment technicians and more than 30 mechanical fitters, spread over various sites and shutdowns. We hold the long-term maintenance contract for rotating equipment of a large petrochemical air and oxygen plant, comprising 14 trains of steam turbines and oxygen compressors. We also holds the long-term service agreement for the maintenance and repair of the centerline of a 360 MW power station, comprising six trains each with a HP turbine, LP turbine, gearbox and all auxiliaries.
www.actomturbo.co.za
ACTOM Turbo Machines, a subsidiary of ACTOM (Pty) Ltd is a leading service provider of turbomachinery and highspeed rotating equipment services, offering comprehensive workshop and site services to the petrochemical, mining and steel, and power generation industries in South Africa, Africa, and internationally.
Specialising in: • Steam and gas turbines, gas expanders • Compressors: centrifugal, axial and integrally-geared compressors • Reciprocating, screw and lobe compressors • Pumps, multi-stage, single-stage, highpressure pump, large water pumps • Blowers and fans, ID/FD fans, gas and • Gearboxes; high-speed, epicyclic and mill gearboxes • Centrifuges and separators • All mechanical peripherals and auxiliaries • Steam, gas, and oil piping and fabrications • General machining and fabrication • Complimentary electro-mechanical services by Marthinusen & Coutts and the ACTOM Group 18 Venus Street, Naledi Industrial Park, Sasolburg, 1947 Postal Address: PO Box 1579, Sasolburg, 1947, South Africa +27 (0) 16 971 1550 commercial@actomturbo.co.za
www.actomturbo.co.za
24/7 emergency breakdown response service
KANSANSHI MINING Plc MINING
AECI AECI WATER, part of #ONEAECIFORABETTERWORLD is a leading manufacturer of water treatment solutions in Africa. In Zambia specifically AECIWATER is adding value to various operations ranging from Mining, Cement Manufacturing, Refinery and Food and Beverage Industries. AECI WATER differentiates through their local, very responsive and highly trained on-site service and technical support team.
The smelter ramped up quickly, achieving commercial production in 2015
KANSANSHI - SMELTER The Kansanshi copper smelter, commissioned in the first half of 2015, has enabled First Quantum to optimise the value of the copper it produces in Zambia, and has created a further 700 specialist jobs. It has a nominal capacity of 1.2 million tonnes per annum of concentrate to produce more than 300,000 tonnes of blister copper annually. The smelter efficiently traps 100 percent of sulphur dioxide by-product and converts it into sulphuric acid. This recycling produces more than one million tonnes per annum of sulphuric acid, reducing reliance on imported acid for use in the treatment of oxide copper ores. Acid produced by the smelter is neutralised in the leaching circuit.
98 | Africa Outlook issue 95
“This launched my career in mining – first with the Zambia Consolidated Copper Mines Limited on a number of operations, Konkola Copper Mines Plc, Anglo American Corporation and then First Quantum Minerals at their Bwana Mkubwa Operations in Ndola,” he adds. “With First Quantum, I have taken on a number of roles in Zambia, Mauritania, Finland and Australia, and now I’m back in Zambia again, here at Kansanshi - full circle.”
INVESTMENTS AND AUTOMATION Mukutuma has had the privilege of watching Kansanshi grow and develop its operations both internally and externally. Over the course of his tenure, Kansanshi has undergone multiple investments – additional capacity, new product initiative, quality improvement and/or cost reduction/ efficiency improvements. “Kansanshi is currently mining from the Main and Nortwest Pits,
We do not just produce world-class chemical and monitoring and control solutions. Our focus is on equipment integrity, process efficiency as well as availability and reliability through unmatched optimal solutions. As one of our key customers in Zambia, Kansanshi Mining PLC cooling water management is critical to secure copper production by ensuring smooth SMELTER operation with minimal reduced downtime related to water systems. AECI WATER has a long and secure relationship and continue to work with the mine in this area. Bruce Mwewa, regional Business Managers states: “We take pride in having Kansanshi Mining PLC as our key customer in water treatment solutions at the Kansanshi Smelter. At Kansanshi Mining, AECI WATER makes use of State of the Art Gengard™ technology, differentiating with its Stress Tolerant Polymer Technology. The unique programme is economically viable and designed for calcium scale control and particulate dispersion. It provides unparalleled deposition control at high temperature and low flow conditions.” Monitoring and Control is key to the operation. AECI WATER use SUEZ TrueSense™ technology to continuously control and optimise the right amount of product. Consistent application with minimal variation ensures system performance and the confidence to engage in other improvements that contribute to lowering the Kansanshi Smelter total cost of operation, improve plant availability and sustainability.
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KANSANSHI MINING Plc MINING
and will develop the Southeast Dome Pit next,” Mukutuma says. “One investment of note in the recent past is the Kansanshi Copper Smelter, commissioning for which commenced in the third quarter of 2014. “The smelter ramped up quickly, achieving commercial production in 2015, and it has a nominal capacity of 1.2 million tonnes per annum of concentrate to produce over 300,000 tonnes of copper metal annually and more than one million tonnes per annum (Mtpa) of sulphuric acid as a by-product. The main processing steps are smelting, converting, fire refining and casting. We are looking to expand the smelter to 1.6 Mtpa and take the high-pressure Leach Plant’s treatment rate up by 40 to 60 percent. This will ensure that Kansanshi has capacity to treat additional concentrate arising from the planned concentrator expansion.” Kansanshi is also looking into increasing its fleet of electric vehicles 100 | Africa Outlook issue 95
“FROM THE USE OF HIGH PRECISION M I N I N G I N M I N I N G O P E R AT I O N S T O E X P E R T CONTROL SYSTEM IN PROCESS UNIT O P E R AT I O N S , T H E U S E O F A U T O M AT I O N , ARTIFICIAL INTELLIGENCE (AI) AND M A C H I N E L E A R N I N G ( M L ) I S P E R VA S I V E THROUGHOUT THE BUSINESS” – A N T H O N Y M U KU T U M A , G E N E R A L M A N AG E R , KA N SA N S H I MINING PLC
(EVs) - in this case electric mining haul trucks that will operate in and around the pits - as well as investing in renewable energy in the form of solar and wind power. Among these core investments is that of automation, a key part of Kansanshi’s business plan moving forwards. “The level of automation in our operation in mining and the process plants (concentrators, hydrometallurgical plants and the smelter) is significant,”
Mukutuma explains. “From the use of high precision mining in mining operations to expert control system in process unit operations, the use of automation, artificial intelligence (AI) and machine learning (ML) is pervasive throughout the business. “It is of critical importance that we keep abreast with developments in technology and continue to be innovative to streamline and better our operations for our shareholders, customers, employees and the environment.”
African Mechanical & Superlift Limited African Mechanical & Superlift Limited (AMSL) are a leading mechanical and civil engineering company founded in 2008 in Zambia. AMSL undertakes projects such as civil, mechanical fabrication / erection, piping (CS/SS/HDPE/FRP/PTFE etc.) & structural steel fabrication / erection, installation of conveyors, flare stack, large diameter site fabricated storage tanks like cone roof, dome roof, floating roof including cryogenic tanks, in Zambia and Democratic Republic of Congo, in the areas like smelter, concentrator, sulphuric acid plants, WTP and tailings leach plant, for our esteemed clients KCM, Mopani (Glencore), MUMI, Ruashi mining, etc. We also specialise in the construction of civil industrial, commercial and residential buildings and roads etc.
AFRICAN MECHANICAL AND SUPERLIFT LTD, Plot No: N-852, P.O Box: 11152, Along Chingola-Kitwe road, Near Zalawi, Chingola, Republic of Zambia. T: +260 212350973 C: +260 977191186
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First Quantum runs trades and apprentice training programmes
“FIRST QUANTUM HAS INVESTED IN THE DEVELOPMENT OF SKILLS AND ITS PEOPLE FROM ITS INCEPTION IN 1996” – A N T H O N Y M U KU T U M A , G E N E R A L M A N AG E R , KA N SA N S H I MINING PLC
The automation of Kansanshi’s operations has resulted in reduced environmental footprint. The use of energy efficient in-pit trolley-assist technology has resulted in 100,000 tonnes of CO2e saved annually, and approximately one-million tonnes of CO2e is saved annually through the operation of the Kansanshi smelter.
PEOPLE-CENTRIC SINCE 1996 During 2022, Kansanshi’s main objectives are to push its current operations to 29 Mtpa to compensate for dropping sulphide ore grades and diminishing oxide and mixed 102 | Africa Outlook issue 95
resources as the open pit deepens, and continuing discussions with key stakeholders to pave the way for an expansion to the current operation, to double annual mined volumes and process throughput. “First Quantum has invested in the development of skills and its people from its inception in 1996,” Mukutuma continues. “For the said growth to be sustained, it must be underpinned by employees and the right leadership; people that understand the First Quantum values of ‘Bolder, Smarter, Driven and Together’. “First Quantum runs trades and
apprentice training programmes, local and international graduate programmes, various specialist and professional development programmes for employees and a CEO Programme, the latter of which is a leadership development programme with First Quantum’s CEO being the principal mentor. “A decision was made during 2020 to create a programme to develop ‘ready now’ leaders using the CEO Programme model with the principal mentor being the General Manager. “The programme is called the General Manager Programme (GMP). The first cohort of GMP’s have just completed the 12-month programme with excellent results; six ‘ready now’ leaders from the Human Resources, ICT, mechanical, process engineering, and metallurgy disciplines. The next cohort will start in April 2022.”
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Curechem was established in 1998 and over the past 2 decades has become a leading supplier of high-quality chemicals, headquartered in Johannesburg, South Africa and located in Zimbabwe, Zambia, Tanzania and India, including an Agrochemical formulation plant in Mozambique. Curechem is a distributor of chemicals for the beneficiation of the industrial (food, pharmaceutical, detergents, personal care, paint etc), water treatment, mining, and agricultural sectors. The company’s distinctive competencies are premised on efficiency, personalised client service and quality products and service and an international presence of renowned suppliers of chemicals and related products.
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KANSANSHI MINING Plc MINING
“ O U R P E O P L E A R E O U R G R E AT E S T A S S E T, AND BECAUSE OF THIS, WE MAKE SURE T H AT W E E N C O U R A G E T H E M T O D O A N D B E THE BEST THEY CAN, WHILE SUPPORTING T H E M AC R OSS T H E B U S I N E SS ” – T E Z A K AS E N G E L E , SA F E T Y M A N AG E R , K A N SA N S H I M I N I N G P LC
SAFETY FIRST This dedication to training and developing its employees and management is a key part of Kansanshi’s overall business practice, to ensure the best for both the company and the people involved. This is due to First Quantum’s overarching safety-centric values that echo throughout its companies and their divisions. First Quantum’s THINK! Safety programme is a practical, sensible approach to risk management, all 104 | Africa Outlook issue 95
framed within the company’s Health and Safety Management System, which conforms to ISO 45001 standard. “It features sensible rules without excessive red tape,” explains Teza Kasengele, Safety Manager at Kansanshi. “We avoid unnecessary bureaucracy, and we vigorously defend against the false sense of security that comes from having blanket rules and indiscriminate procedures. Whilst we insist on key safety rules in specific environments, we find that
overall safety improves when we teach workers to assess their environment, identify hazards, take action using their own critical judgement and support their colleagues in the same way. “The THINK! Safety programme started at Kansanshi as an off-shoot of crew resource management (CRM) – the famously successful aviation industry safety programme that has been adopted and adapted for use in many different industrial sectors, including healthcare, firefighting and shipping handling. CRM training focuses on non-technical skills (teamwork, decision making, and communication) to improve situational awareness and problemsolving, which all help to better safety performance. In our early trials, we found CRM helpful but lacked a mining-specific focus. So, we have developed our own, First Quantum Safety Programme.”
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KANSANSHI MINING Plc MINING
International Facilities Services Zambia Operations (IFS) International Facilities Services Zambia Operations (IFS) has been a proud service provider to Kansanshi Mining PLC since 2016. IFS operates in Zambia and throughout Africa and is a market leader in providing full facilities management services. We pride ourselves on delivering personalised, bespoke solutions to all our clients, assuring them a level of service that is unmatched in our industry. We deliver a full range of services including catering, laundry, cleaning, camp management, maintenance, waste management, vector/pest control, hygiene services, access control, recreation, and resident wellbeing. With over 20 years’ experience and over 34 sites managed across Africa, we provide peace of mind for our clients by ensuring that their employees’ needs are being taken care of at the highest standard, leaving them to focus on their core objectives and activities. Our clients are made to feel Closer to Home no matter where their sites are located.
The THINK! Safety programme is incorporated into the company’s Health and Safety Management System and has been implemented at all of its sites. First Quantum has embedded the Health and Safety Management System through the formal training of employees and contractors, practical on-the-job training with on-the-job followups and extensive workplace communications and employee engagement. “We want everyone who works at our sites to go home safely to their families at the end of every shift,” Kasengele says. “We also want them to stay safe at home. The next step for THINK! Safety is to roll out the concept to the communities located near our operations to improve safety and reduce accidents in homes, farms, businesses and schools.” 106 | Africa Outlook issue 95
THE FOUR PILLARS Kansanshi’s four Safety Pillars embody the company’s ethos and drive towards ensuring the highest level of personal safety for each of its employees and associated workers.
IFS is proud to launch our IFS Home App. With one seamless platform for all camp functions, the app makes camp life easier and allows you the ability to provide real-time feedback on our services. We aim to make you, our client, feel Closer to Home.
Pillar One - Prepare Kansanshi’s health and safety policy is aimed at preparing employees and business partners to uphold their occupational health as well as remaining safe both at work and elsewhere. Employees and business partners are also prepared to keep the environment and equipment safe in their execution of duties. At Kansanshi, this preparation to work safely is mainly achieved in four separate ways. “The first is through training,” Kasengele elaborates. “Both employees and business partners
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KANSANSHI MINING Plc MINING
JVCHANTETE Earthworks JVChantete Earthworks Limited is a Zambian company registered and operating within Zambia; formed after the amalgamation of two Zambian companies, viz: JV CIVILS LTD and CHANTETEMINING SERVICES LTD, with a vast wealth of expertise and experience gained over a period of 21 years from many successful contracts delivered within Zambia. JVChantete Earthworks Limited specializes in macro earthworks and civil projects, also offering open pit mining services right from Mine development and planning, drill and blasting, surface mining (load and haul), ore preparation (crushing and screening), ore extraction (DMS, gravity separation) and heap leaching and tailings. Selecting and providing the correct equipment is only part of the foundation for every successful project.
FIRST QUANTUM First Quantum Minerals is a Canadian-based mining and metals company whose principal activities include mineral exploration, development and mining. Its main product is copper, which accounts for 80 percent of revenues (as of 2016). Resource focus: • Copper • Nickel • Gold • Zinc • Cobalt
operating on site undergo various stages of training, depending on their roles, to ensure that they are competent to work safely before they can be allowed to work at Kansanshi. “This is followed by understanding the work processes. Standard operating procedures (SOPs) have 108 | Africa Outlook issue 95
been developed for critical tasks based on their hazard potentials and how such hazards can be prevented, dealt with or how their impacts can be minimised by following outlined steps in the execution of such tasks or work processes.” The third of these ways is hazard identification. All personnel on the mine, regardless of their roles or work location, are encouraged to identify and report hazards so that they can be eliminated before they result in any harm. Examples of methods used to identify workplace or potential hazards are Visible Felt Leaderships (VFLs), Near-miss Incidents, Safety Inspections and Hazard logbooks. Lastly, internal and external Health and Safety Management System audits are a regular feature of important annual activities at Kansanshi.
Our experience and competent personnel and business partners are an essential requirement to ensure safety on all our operations and timely execution and successful delivery of our projects. We have adopted the elementary rule of selecting and retaining the most experienced and qualified personnel and business partners in their fields, who are also best able to work in a team structure within the required environment. JVChantete Earthworks Limited through its amalgamation has become recognized as a leading contracting company in Zambia. Through the hands-on management of its core assets, comprising its skills base and earthmoving fleet, JVChantete Earthworks Limited’s focus is to deliver efficient, professional, and cost-effective solutions to its client base business partners together with a guarantee that production targets and derivatives are sustained and exceeded.
Pillar Two - Prevent Once personnel have been prepared to work safely, preventative measures are used to prohibit the
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JVChantete Earthworks Ltd Mindola North Road, Mindolo, Kitwe, Zambia 0965 333 007 info@jvchantete.com
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KANSANSHI MINING Plc MINING
Olibul Investments OLIBUL Investments Ltd is an enterprising, values-centric and growth oriented Zambian company. OLIBUL (among multiple business interests) is steadily growing its footprint in the intra-country, and cross border freight/ haulage of commercial and industrial commodities within and across the breadth of the Southern Africa region. OLIBUL was incepted in 2011, and received it’s breakthrough market opportunity from Africa’s most progressive mining house (FQM Kansanshi Mining) in late 2015; producing and beneficiating a bulk metallurgical fluxing agent for their smelter. Since that initial market opportunity, OLIBUL has been able to grow it’s workforce from 26 people in 2015 (then operating as a licensed artisanal quarry) to the current 100 employees (now operating as a fully licensed small scale miner/ quarry of industrial minerals) in 2022 primarily due to the same initialmarket-opportunity that was graciously availed by FQM Kansanshi.
FIRST QUANTUM – ZINC AND COBALT ZINC First Quantum produces zinc at Pÿhasalmi Mine (Finland) and Çayeli (Turkey). Corrosion-resistant zinc plating of iron (hot-dip galvanising) is the major application for zinc. Other applications are in electrical batteries, small non-structural castings, and alloys such as brass. COBALT Cobalt is primarily used in lithium-ion batteries, and in the manufacture of magnetic, wearresistant and high-strength alloys.
identified hazards from resulting in or causing harm. Preventative measures are aimed at eliminating known or anticipated hazards from coming into contact with personnel, the environment or equipment. 110 | Africa Outlook issue 95
Signage, waste and hazardous material management are some of the principal methods used in the prevention pillar. In addition, risk assessments, which are aimed at identifying preventative methods to address hazards specific to the task at hand, are conducted on all critical tasks before such jobs can be allowed to commence or proceed.
Pillar Three - Protect Like most mining environments in the world, Kansanshi employees and business partners have to deal with various hazards in their different lines of duty, as is the nature of the mining industry. “Having identified these hazards in the first pillar, procedures and policies have been formulated to protect personnel who work directly with such hazards (which cannot be avoided or prevented),” Kasengele tells us. “Some of the most common protective measures are appropriate personal protective equipment (PPE), machine guard installations,
That business growth opportunity has enabled OLIBUL to build the necessary in-house company systems and processes to enable us meet the stringent product and service requirements from FQM Kansanshi Mine, and the relatively complex government regulatory environment (permitting and licensing) for small scale mining/ quarrying. The above business growth has also capacitated OLIBUL to exponentially grow and mature in the areas of corporate governance, statutory compliance and corporate social responsibility. That continued business exposure and growth facilitated by FQM Kansanshi has also allowed OLIBUL to start to look outward for business growth opportunities outside of FQM Kansanshi’s value chain and even outside of Zambia particularly in the in-country/ regional and cross-border freight and haulage of bulk industrial commodities like cathode/ anode copper, mining reagents and consumables, agro-inputs & commodities, FMCG’s, imported-CAPEX equipment, etc. We are currently looking for progressive & forward thinking local & international investors/ partners to collaborate with and expand the scale and scope of the current business.
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libul Investments LTD
Get the advantage of a partnership with OLIBUL Inspired by... Market opportunities enabled by... Driven to grow, & positively impact... Quarrying, (primary, secondary & tertiary) beneficiation & supply of industrial minerals (metallurgical & other industrial process inputs such as high purity quartz [HPQ], feldspar, apatite, gypsum, limestone, graphite & zeolites)
In-country & cross-border road freight & haulage service for bulk industrial commodities (also currently-developing a scalable bulk commodity freight/ haulage sharing e-platform service solution, & a pilot/ proof of concept heavy duty “grid power to freight/ haulage” service offering initiative)
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PARATUS CORPORATE ZAMBIA PRESSES THE ‘ON’ BUTTON The Zambian government’s new technology and science ministry has declared digital transformation as the conduit for Zambia’s future growth and boosted economy. Zambian businesses are now actively looking at how they may grow and move into a digital future. “Businesses are realising they need excellent data security, back-up, and hosting supported by quality connectivity”, explains Marius van Vuuren, Country Manager of Paratus Zambia. “By investing in these elements, they can actively participate in digital transformation which is needed to do business in the world today.” A renewed business confidence is already being seen by Paratus Zambia, which witnessed a boom in connectivity sales and high levels of interest in its new Data Center (DC). The new DC in Lusaka provides carrier neutral data management solutions in a highly secure and fully redundant environment. The DC was completed last year to support the Paratus corporate internet solution offering which has been growing over the past decade.
work rotations to limit exposure and ergonomic studies and guidelines.”
Pillar Four - Respond Kansanshi has implemented various methods and channels to respond to health, environmental and safety incidents which may occur on site or involve Kansanshi employees and business partners. Foremost of these methods is the establishment of a well-equipped hospital (such as Kansanshi Mine Hospital) to which all employees and their families have access, including Kansanshi’s contractors. In addition, a wellequipped emergency response team has been set up to respond to all 112 | Africa Outlook issue 95
incidents involving personnel, the environment and equipment. Incidents are also managed through rigorous incident investigations which are aimed at developing or enhancing the preparatory, preventative and protective pillars.
BEHIND KANSANSHI Kansanshi prides itself on having a diverse and multicultural employee base with various backgrounds and stemming from a variety of nationalities. Following the company’s core values of being Bolder, Smarter, Driven and Together, Kansanshi’s staff members understand that they are part of a greater whole that is
Van Vuuren adds: “We’re being urged to build Zambia from within. This promotes national pride while allowing us to support our clients’ growth ambitions. We had the foresight to build the necessary infrastructure and we are mirroring government’s vision. Our DC and connectivity services can support any business in future-proofing their prosperity. We are enabling business to confidently compete in the digital world.”
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KANSANSHI MINING Plc MINING
Pure trade Africa Modern society is advancing at an ever-increasing rate; and the industries that drive this progress – from technology to agriculture – rely on the extraction and processing of natural resources more than ever before. The industrial processes found in various Sub – Saharan countries provide these resources, and ultimately ensure that modern society can continue its rapid development. The processing of these commodities requires a variety of chemical inputs that must be sourced from around the globe, and then carefully managed through the various points in the supply chain to reach commodity producers in Sub – Saharan Africa.
integral to the company’s culture and empowering for every individual associated. “Our people are our greatest asset, and because of this, we make sure that we encourage them to do and be the best they can, while supporting them across the business,” Kasengele tells us proudly. “Safety comes before all else. We make sure that our employees are empowered to act and work safely through a mixture of educative guidance and materials, reinforced by our company slogan: ‘no job is so important that it cannot be done safely’. “In line with this, we have 12 ‘Think Fatal’ dangers that highlight hazards found in the workplace, and we make sure that staff know that if a situation is not safe to work, no one should work until it is restored.” On top of this critical element of daily operation, Kansanshi helps motivate its workforce with a sense of collective achievement through teamwork. “At Kansanshi, we set our 114 | Africa Outlook issue 95
employees clear goals and targets early in the year in line with corporate, company and departmental targets which helps everyone maintain a vision and sense of drive in their work,” McGerald Mvula, Supply Chain Manager at Kansanshi continues. “And in recognition of hard work, our many leadership programmes remind our staff that they can achieve anything that they set out to. “Both leadership and mentorship programmes are available to all employees. For now, we host four levels of leadership programmes: internal graduate, local graduate, general manager leadership programmes, and business improvement programmes. Each of these is designed to promote the skills of individuals and provide Kansanshi with top-class business leaders. As for mentorship, we have management and superintendents mentoring and coaching young high-potential employees to help them gain the necessary skills and experience to
Pure Trade Africa seeks to forge progressive and sustainable partnerships with commodity producers, to work towards supply chain solutions which enable them to focus on the production of their outputs and not the management of their inputs. When building these partnerships we incorporate all factors of our clients requirements – from technical and commercial, through to compliance and supplier vetting. Our presence at key infrastructure points across the supply chain further mean that we are able to supply bulk or niche products on a spot or recurring basis. Pure Trade Africa is proud to work with Kansanshi Minerals, and organisations similar to it in ensuring that the commodity producers of Sub – Saharan Africa are able to enjoy an end – to – end solution which ultimately drives modern society.
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Enabling commodity producers
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KANSANSHI MINING Plc MINING
Saro Agro Industrial Ltd SARO AGRO INDUSTRIAL LTD SARO - , a Zambian owned company, has been in operation for over two decades. We have 6 branches across the country. We supply/provide/undertake: • Water Pumping Solutions for Industrial, Mining and Agricultural/ Irrigation applications • Solar Pumps and Solar Powered Lights • Fire Pumpsets • Agricultural Equipments • Generators and Compressors and • Machining and Fabrication works, etc. We deal with well recognized brands of equipment, namely: • Kirloskar, SPP and CAPRARI Pumps • Kirloskar Compressors • Perkins & Kirloskar powered Generators Our have well Equipped Engineering & Fabrication workshop, we undertake:
grow into fine business leaders of tomorrow.” Amid the focus on safety and progression, Kansanshi ensures that its employees feel valued and rewarded for their efforts. Various forms of incentive schemes and programmes are in place to reward outstanding performance.
A HISTORY IN THE COPPERBELT Mvula has been associated, and indeed part of, the copper mining space for a long time, with the industry having existed as a part of his childhood, and standing as a defining factor to influence his future career. “I grew up on the Copperbelt and supported a mine sponsored team, Nkana football club,” he tells us. “My father, a miner, would bring me a seasonal ticket to watch our favourite sport - football. Everything revolved around mining during my childhood. I graduated in electrical engineering and worked in the copper 116 | Africa Outlook issue 95
electro-winning processes and the smelter in 2000. I was eager for growth, and it occurred to me that a commercial path could be the best way to combine my technical and business skills.” From electrical engineering, Mvula moved into a materials engineer role that launched his transition into a commercial role. “I have worked mostly in mining with brief stints in cement and electrical utilities,” he continues. “The impact of having technical acumen combined with business made me a highly attractive talent and I grew very quickly in the ranks to the Supply Chain Manager position. “My role mainly includes creating an interface between the business and the external stakeholders (suppliers, manufacturers, regulators etc). It also involves interpreting the enduser requirements into scopes and inquiries that are sent to the suppliers for goods and services the business
• Machining of large components required for mining and industry • Fabrication of Chimney, Water Bowser, etc. • We fabricate the Skid mounted fuel tanks up to 100000ltrs. • We manufacture the trailers up to 10T • Design and fabrication of Pontoons for mounting Pumps on We: • Couple Pumps with Electric Motors/ Diesel Engines. • Trim Pump Impellers, and repair Pumps, Generators and Compressors, etc. We have well trained Engineering Staff to service our equipment and supply spare parts.
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KANSANSHI MINING Plc MINING
Strika Strika is an award-winning communications company with a record of providing world-class safety campaigns that assist mines in reducing safety incidents. With a team that includes creatives and staff with extensive on-site knowledge, Strika takes dry or complex subjects and turns them into memorable campaign tools. Comic books, posters, billboards and safetyprocedure animations are just some of their innovative, personalised product offerings. Their safety campaigns are designed is to equip mines, big or small, with a set of curated safety tools that help drive down incidents (e.g., vehicle accidents, mishandling of chemicals) and protect mine workers, visitors and contractors. This is done by informing readers/viewers of the risks associated with unsafe habits, supporting the training of mine employees, and where necessary, changing behaviours.
“IN RECOGNITION OF HARD WORK, OUR MANY LEADERSHIP PROGRAMMES REMIND O U R S TA F F T H AT T H E Y C A N A C H I E V E A N Y T H I N G T H AT T H E Y S E T O U T T O ” – M C G E R A L D M V U L A , S U P P LY C H A I N M A N A G E R , K A N S A N S H I MINING PLC
requires. This role interfaces with the various other requirements of the business in meeting our objectives of safety, quality, environment, production, corporate social responsibility (CSR), cost and value management in relation to our dealings with external stakeholders.” Throughout his time with Kansanshi, Mvula has recognised that people form the bedrock of success for the business, and that each of them are critical to the future of the company.
DRIVING SUSTAINABILITY For companies around the globe, 118 | Africa Outlook issue 95
especially those within heavy industries such as mining, the topic of sustainability has never been so prominent and important to address. New technologies that promote efficient and clean activities have taken the limelight not only from an ethical standpoint but also operationally, proving their worth as green and effective tools and methods to incorporate into business. In this new age of development, it is the beginning of an adaptive journey for heavy industry companies to recognise the necessity of change and accommodate it. For Kansanshi, not only is it important to address such a
Supporting this mission is a ‘visualfirst’ communication strategy, whereby key messages are delivered through striking, image-based communications. These simple yet highly effective visuals allow clients to address diverse audiences and promote relevant behavioural changes with a single tool – regardless of language, culture or age differences. Over the course of two decades, Strika has worked in multiple languages and partnered with over 20 mines on five continents. Amongst their esteemed clients, past and present, are Anglo American, Ivanhoe, Glencore and First Quantum, as well as other industry heavyweights. They are based in Cape Town, South Africa, and Lubumbashi, Democratic Republic of Congo.
www.strika.com
KANSANSHI MINING Plc MINING
Active Agencies Active Agencies Ltd specialises in all types of security fencing and gates. After having more than 30 years of experience in security fencing and non- lethal electric fences, we do offer the best in quality workmanship and reliable security units. All our fencing systems are installed under international safety standards with recognised electric fence installation procedures and by fully trained personnel. Our High Vis fencing provides an unparalleled security barrier. Our mission is to provide quality hassle free installations to our clients. We are proud to be associated with Kansanshi Mine in securing their assets.
“COPPER IS CRITICAL IN THE GLOBAL DRIVE T O WA R D S E N E R G Y C H A N G E , A N D W E A R E AT THE HEART OF AFRICAN COPPER MINING” – A R N O L D M A L A M B O , E N V I R O N M E N TA L M A N A G E R , KANSANSHI MINING PLC
www.activeagencies.com
Afrox Zambia change, but the company also realises its critical role in helping this international change taking place. “When you take an overall look at the mining industry in Zambia, it is a very exciting space to work in, especially the copper sector,” reflects Arnold Malambo, Environmental Manager at Kansanshi. “There is a current global push for decarbonisation and the mining industry is poised to be the major contributor to realising that vison. The negative effects of fossil fuels drive the need to evolve and change the energy mix. Also, the economic drive for value addition in Zambia brings our extractive industry to the centre of the discourse for economic growth and development. “Copper is critical in the global drive towards energy change, and we are at the heart of African copper mining.” 120 | Africa Outlook issue 95
CONTINUING SUSTAINABLE DEVELOPMENT Internally, Kansanshi is undergoing changes to best promote environmental practices both directly and indirectly. Kansanshi is implementing an environmental management system (EMS) which is aligned with the ISO14001:2015 standard and subject to external compliance audits to keep them in check. Key aspects of the company’s environmental programme include maintaining compliance with host country laws and regulations, and Kansanshi’s own environmental policy and international guidelines and standards, and sound baseline environmental and social risk assessments and mitigation strategies, among many others. For Kansanshi, the continuation of
Afrox Zambia has a strong reputation of supplying quality gases, welding products and safety products to the country’s mining industry and is privileged to be a supplier of choice to Kansanshi Mine Afrox Zambia is a member of Linde plc, the world’s largest supplier of industrial gases and the business is 100% owned by African Oxygen Limited (Afrox) Founded in 1929 as the Allen Liversidge Limited at Bwana Mkuba Mine area in Ndola Afrox was one of the oldest companies to be established in Northern Rhodesia subsequently Zambia
www.afrox.com
KANSANSHI MINING Plc MINING
HIGH VIS PANELS, DIAMOND MESH, ELECTRIC FENCING, RAZOR, GATES & AUTOMATION Cell/WhatsApp - Zambia: +26 0965 115093 Cell/WhatsApp - South Africa: +27 (0) 61 911 5093 mack@activeagencies.com
www.activeagencies.com
Making our world more productive
Plot 901 Chisokone Avenue, Ndola, Zambia E afrox.zambia@afrox.linde.com | T +260 212 611801 | M +260 966 861416 | W www.afrox.com Africa Outlook issue 95 | 121
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Bray Controls Africa Bray’s partnership with Nuco supports our Zambian customers. We deliver proven valve and actuation solutions for copper mining, processing, and refining that reduces maintenance, downtime and improves productivity. We are proudly associated with First Quantum Minerals as a key partner, supplying Bray Knife Gate Valves and a range of other flow control solutions. With over 30 years of continued success and operations in over 40 countries, Bray is one of the premier manufacturers of flow control and automation products and accessories, offering the best compatibility, economy and quality performance.
www.bray.com
CSR Kansanshi’s CSR programme is part of its sustainability strategy, which is built around four key pillars: • Economically viable investments • Technically appropriate operations • Environmentally sound practices • Socially responsible actions Within the CSR programme, Kansanshi’s initiatives and activities are consistent with international best practices and are carried out in a systematic manner across all sites. The company’s programmes are specifically targeted to ensure sustainable community development, environmental biodiversity and human rights.
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sustainable development is a definite element of the company’s future. “The business will continue with the current interventions, and expand the support where necessary, but remain open to other innovative ideas that would be adopted in the course of the current year,” affirms Malambo.
A RESPONSIBILITY BEYOND BUSINESS For such a global company operating within the mining space, CSR becomes an integral part of helping the people, community and environment that Kansanshi is associated with. Not only does mining involve a considerable number of operatives and skilled personnel, but it also revolves around the process of breaking open the earth in order to retrieve and filter valuable minerals and metals. This naturally can cause a detrimental impact on the surrounding
Canterbury Mining and Engineering Established in 1989, Canterbury Mining and Engineering has positioned itself as a reliable service provider and supplier of heavy duty geared transmission drives and components to the mining industry. By developing long-standing partnerships across Africa, CME have successfully delivered unique gearing solutions through the supply of custom-designed gear boxes and open gearing, along with design modifications and enhancements to existing installations. CME’s competent staff and workforce have decades of experience, ensuring that well-engineered, quality and innovative solutions prolong the life and availability of our customers equipment.
www.canterburymining.co.za
KANSANSHI MINING Plc MINING
ENGINEERED SOLUTIONS BUILT TO LAST.
Bray offers a complete range of valves and actuators optimized to handle your most challenging mining applications. Knife Gate Valves Ball Valves Butterfly Valves Check Valves
Slurry Valves Actuators Controls
Bray Controls Africa (Pty) Ltd Unit 11, ABC Business Park Mastiff Rd, Linbro Business Park Sandton 2090, South Africa Telephone: +27 10 007 3222 bray.com
Nuco Industrial Services Ltd. Plot 3756, Kariba Road Light Industrial Area, Kitwe Zambia Telephone: +260 212 210 731/0 nucoindustrialservices.com
YOUR PARTNERS IN COPPER PROCESSING
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Glamwa Engineering As the Managing Director of Glamwa Engineering, we are delighted to work with KMP and offering our vast experience in the mining industry working with Pump Barrels, Gear Boxes, Fabrication and repairing various crushers in the mining industry. As the Managing Director of the company I have more than 25 years of experience in the mining industry (Mechanical), with which am looking forward to use in working with Kansanshi Mine plc to develop our country and empower our community’s at large through this wonderful partnership. Eustace Simbile Managing Director
glamwaengineering@yahoo.com
natural world if not handled properly or carefully, and therefore, mine operators have an important duty to uphold environmental values alongside their operations. Equally, the welfare, safety and involvement of people (especially those local to the region in question) must continue to be a core focus of such companies, who must strive to integrate the business into the associated communities to further the betterment of host communities. “The mining industry is more involved than ever in diverse service provision and social investments that span a wide spectrum: health, education, agriculture, livelihoods, gender, infrastructure and many more. This makes working in the space only more exciting,” Victor Nsana, CSR Superintendent at Kansanshi, tells us. “Through working alongside institutions in these various areas, we give back to the people and environment, while integrating our 124 | Africa Outlook issue 95
operations with the wider community. “Everything from hiring and training skilled local staff to educating the community on safety and environmental practices helps bolster a better mining industry in Zambia.” Within this bracket also falls the many suppliers and partners that Kansanshi works with to achieve its business and operational success. “In an industry such as mining, with a diverse, growing and dynamic growing base of stakeholders, relationships are important,” Nsana explains. “The relationships allow for a clear understanding of stakeholder aspirations, concerns and objectives, and these can be addressed for the mutual benefit of all parties. “Incorporating our suppliers into our CSR activities allows our entire business chain to get involved with ensuring the best safety standards, employee and community welfare, and sustainable practices company-wide.”
Henderson Asset Protection Henderson Asset Protection specialises in managing above ground risk for the extractive sector. Henderson personnel have extensive security experience, coupled with a detailed understanding of the cultural and regional complexities of the countries in which they operate. At Kansanshi Henderson fulfil a specialist role in the field focussed on perimeter security. Operational teams are permanently deployed using bush camps from which they conduct vehicle and foot patrols, ambushes, tracking and arrests. In addition to field operations Henderson provides access control, CCTV monitoring, incident response and emergency planning.
www.hendersonrisk.com
KANSANSHI MINING Plc MINING
EUSTACE SIMBILE (DIRECTOR)
ESTHER NAMFUKWE (FINANCE DIRECTOR)
CONTACT: Telephone: +260 966 496 244 / 096 532 5895 Address: Opposite the weighbridge along Solwezi – Chingola Road Email: glamwaengineering@yahoo.com
ELIJAH SIABBABA (OFFICE ADMINISTRATOR)
ABBY NKOLE (WORKSHOP MANAGER)
WE SPECIALISE IN: º Mining mechanical repairs º Electrical º Rubber lining and tiling of mining components º Hire of labour º Instrumentation º Borehole Drilling º Mining Exploration º Construction of bridges
Henderson Asset Protection is a specialist in managing Above Ground Risk in the extractive industry. info@hendersonrisk.com +260 969 458 411 www.hendersonrisk.com
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Inara Investments Inara Investments has been associated with Kansanshi Mining (FQM) since, 2006. Our aim while working with Kansanshi is always to be delivering at our best efficiency and adhering to the environmental, social, and governance principles. We believe in transparency, sustainable growth & development, and inclusivity for all adding value and opportunity within the community. We have a shared interest in keeping up with the goals of our clients of keeping the supply value chain moving constantly and delivering efficiency all the time.
www.inarainvestments.com
“EVERYTHING FROM HIRING AND T R A I N I N G S K I L L E D L O C A L S TA F F T O E D U C AT I N G T H E C O M M U N I T Y O N S A F E T Y A N D E N V I R O N M E N TA L P R A C T I C E S H E L P S BOLSTER A BETTER MINING INDUSTRY IN Z A M B I A” – V I C TO R N SA N A , C S R M A N AG E R , K A N SA N S H I M I N I N G P LC
A PATH TO MINING Nsana didn’t begin his career in the mining space. After working in the textile industry, he studied environmental health and became involved with community work, especially regarding raising awareness around community health and hygiene, immunisations and public health interventions. This was Nsana’s first experience of serving communities to help better the welfare and lives of the people therein. “I later resigned and joined World 126 | Africa Outlook issue 95
Vision Zambia where I worked as a Development Facilitator. During my time there, I studied Development Practice at the University of South Africa (UNISA),” he tells us. “I was keenly interested in the community liaison work which the mining industry had started doing around communities in the Solwezi district. My interest grew to the point that I applied for a job and was hired as Assistant Community Liaison Officer. I rose through the ranks to the position of Senior Supervisor in the CSR Department.
Kachema Meat Kachema Meat, based in Zambia, is a leading processor, retailer and distributor of meat products. We have been a supplier to mine canteen operators for many years and distribute to sites all over the country. The remote FQM sites have been a great challenge and incentive to develop a reliable cold chain and this has contributed to further growth of our customer base and new destinations. We have been a very reliable supplier to FQM and aspire to further grow our deliveries to FQM in the future in Zambia
www.kachema.com
KANSANSHI MINING Plc MINING
YOUR RELIABLE SUPPLY CHAIN PARTNER Inara Investments is a leading transportation and logistics company in the East African market. We provide a full-range of services including warehousing and transportation to support our clients in every link of their supply chains. Our offices and facilities are located across the Democratic Republic of Congo (DRC), Tanzania, Zambia, and Mozambique to ensure end-to-end excellence in goods management and client services. Over the years, Inara Investments has earned its reputation as the most safe, dependable, and trustworthy supply-chain partner in East Africa.
Plot 12672/12673, Chinika Industrial Area Off Mumbwa Road, Towards Mwambeshi Road Opposite Chinese Hotel, Lusaka, Zambia T +260 97 5870117 | info@inarainvestments.com www.inarainvestments.com
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engagement with host communities. The committee considers and recommends best practices in key areas covered by its charter. “We are committed to continuous improvement through our environmental, safety and social management systems, which are subject to regular external audits. Each of our sites has a community social and economic development plan which is aligned with the United Nations (UN) Sustainable Development Goals. We seek to ensure that the positive economic impacts of mining are realised and to assist in improving the quality of life for those people and communities impacted by our activities.”
MARKING ACHIEVEMENT
CARING FOR THE COMMUNITY First Quantum has an established resettlement process that adheres to international standards of fairness and transparency. These processes guide the company’s actions when activities involve land access and displacement. As part of its process, in-depth consultations and negotiations are conducted with project affected people, under the leadership of experienced specialists in resettlement, and First Quantum staff dedicated to engaging with these communities ensure that activities and the community can work to an end goal.
“I am currently involved in supervisory functions and directly engaging with stakeholders, including governments, civil society organisations (CSOs), nongovernmental organisations (NGOs), faith-based organisations and 128 | Africa Outlook issue 95
community leadership. I have been in the industry for close to 14 years now. I love my job and it is both exciting and fulfilling for me to work here at Kansanshi.”
OVERSEEING OPERATIONS Kansanshi recognises the importance of such an element of business and aims to incorporate its activities into multiple facets of surrounding society to bolster the betterment of the business and those people associated. “Our goal is to integrate sound environmental, safety and social management practices into all aspects of our business,” says Nsana. “The board has a dedicated Environment, Health Safety and CSR Committee which reviews adherence by First Quantum to its environment, health and safety policies and practices in accordance with applicable environmental, health and safety laws and regulations. The committee also oversees First Quantum’s CSR strategy and extensive programmes, including its approach to human rights and
The core company values revolving around both people and planet have helped Kansanshi become recognised as an operational leader in the mining industry under First Quantum.
Kemira Efficient & sustainable mineral processing resonates deeply with the values that Kemira stands for. With our expertise and chemistries, we improve and optimize our customers’ processes in all sorts of different ways, whether it’s reducing emissions by helping to cut energy usage or minimizing waste by increasing thickener performance. “We are very happy with our relationship and the support we get from Kemira! They have been supplying us at Kansanshi for many years with their range of Superfloc® flocculants that deliver excellent performance supported by their team of highly skilled application experts.” Kemira is a global leader in sustainable chemical solutions for water intensive industries. In 2021, Kemira had annual revenue of around EUR 2.7 billion and around 5,000 employees.
www.kemira.com
KANSANSHI MINING Plc MINING
Kemcore is the preferred supplier to the mining industry for SMBS, MgO, Sulphuric acid and other reagents. We keep mining operations supplied with our comprehensive solutions and logistics to deliver the highest quality mining chemicals direct to your mine from ISO-certified factories. We are proud to partner with Kansanshi.
info@kemcore.com | +27 6627 11154 | +260-953-607487
www.kemcore.com
Maximum output Minimum footprint Kemira Superfloc® flocculants - the first choice in the Copperbelt. Proven efficiency and robust performance in thickening and liquid-solid-separation applications.
WWW.KEMIRA.COM
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Oriental Casting and Forging Co. (KML) Oriental Casting and Forging Co., LTD is a proud supplier of grinding media to Kansanshi Mine. The company holds quality certifications: ISO 9001 – 2008 ISO 14001 – 2004 Using our grinding media and working with your plant personal we can: • Lower wear rate: Resulting in savings • Reduce breakage rate: Improves mill operation (mill weight control) and higher grinding media surface/ effective area • Reduce Spalling: This is a safety concern and also affects costs • Maintaining Sphericity: This is important for higher grinding media surface area and recycling of used mill balls (cost saving)
FIRST QUANTUM – CSR CASE STUDIES ‘PAYING OUR SHARE’ - 2019 Each year, First Quantum pays a significant percentage of the total Zambian Extractive Industry Revenues to the Zambia Revenue Authority. WOMEN’S LITERACY BOOST An adult literacy programme is helping secure the future of vulnerable women in Mauritania. FUTURE BRIGHT FOR TURTLES Rare Leatherback and Hawksbill sea turtles are protected under First Quantum’s conservation programme.
Because of this, the company has gained a multitude of awards and accolades that represent its position 130 | Africa Outlook issue 95
in the sector, and the progressive nature of its operation and drive moving forward into the future. “Over the years, Kansanshi has received recognition of its efforts in corporate social investments and has received awards in various areas,” Nsana says. “These span everything from environmental promotion to community engagement and internal company programmes. “A prime example of this is our Conservation Farming – Support to Community award, given to us by CSR Network Zambia, that stemmed from our Conservation Farming unit, one that supports community farmers while doing good for the environment. The unit is already implementing a plan to diversify from the usual crop farming to incorporate fruit tree orchards in the local communities. This is going to target the export and local markets to help individual farmers reach a wider market.”
Matech Matech has a wealth of experience in the refractory industry, from installation of refractory products to the development and marketing of such products in South Africa, Zambia and Chile. Our focus is predominantly in the non-ferrous industry which includes, copper, platinum, chrome and manganese smelting. With this global knowledge and experience we have been able to assist our customers with effective solutions in reducing refractory costs by supplying superior refractory products timeously. We look forward to our continuous relationship with Mines and our other clients around the world.
tony@materialtech.co.za
KANSANSHI MINING Plc MINING
Oriental Casting and Forging Co., LTD will work with your process and supply chain teams to reduce your costs:
Technical investigations:
Supply chain investigation with a view to optimize:
• Mill ball sizes revised upwards & downwards as determined by specific mills critical speeds and predominant type of material, with a view to optimize media size • By studying the micro structure dynamics and adjustments reduced wear rates from 350g/t to 260g/t on one plant • Replaced expensive high chrome balls with cheaper hammer forged balls (saved costs) • By maintaining sphericity by using Oriental mill balls, there is a potential to recycle/reuse of used SAG mill balls in ball mills
• • • •
Packaging, drums, bulk bags, and bulk containers In-country storage to ensure reduction in working capital Close relationships with select logistic providers Use of rail where possible
Work with us to benefit from cost savings General Manager: Mr. Hou Songcun
Sales and Technical support: Mr. Greg Kruger
housongcun@grindingballs.net.cn +86-15764168666
kruger@grindingballs.net.cn +27 82 800 4435
Serving the Copper and Platinum Industry with High Quality Refractory Products and Solutions for over 20 years. Contact: Tony de Gouveia | tony@materialtech.co.za
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ME Elecmetal Grinding Media ME Long Teng Zambia (MELTZ) has created more than 130 local jobs in Zambia through direct hire — sixty through on-site contractors and many more through off-site contractors. MELTZ focuses on training the local staff to use the state-of-the-art machinery and technologies to produce the highest quality grinding media. MELTZ has enhanced economic growth in Zambia, and Kalumbila in particular, by providing various business opportunities to local Zambian companies, such as scrap metal and waste management services.
www.me-elecmetal.com
“ W E A L S O R E C O G N I S E T H AT O U R A C T I V I T I E S C O N S U M E R E S O U R C E S A N D H AV E I M P A C T S O N T H E B R O A D E R G L O B A L E N V I R O N M E N T, A N D T H AT W E H AV E A R E S P O N S I B I L I T Y T O M I N I M I S E A N D R E D R E S S H A R M F U L I M PAC T S A N D TO O P T I M I S E P O S I T I V E B E N E F I TS ” – V I C TO R N SA N A , C S R M A N AG E R , K A N SA N S H I M I N I N G P LC
Other awards include the Excellency in Environmental Stewardship – Game Management, Community Programmes – Water, Provision of Literacy Education – Infrastructure/Innovative Learning, Community Social Impact Award – Working with the Differently-Abled, Excellency in Literacy Support – Adult Literacy Support, and the Community Social Impact Award – Youth Development, each awarded by CSR Network Zambia.
BEYOND THE MINE First Quantum (and by default, 132 | Africa Outlook issue 95
Kansanshi) recognises that people and communities are affected by the company’s business activities, and that it has a responsibility to ensure that those people and communities benefit through opportunities such as employment, business development, education, training or community investment over the long term. “We also recognise that our activities consume resources and have impacts on the broader global environment, and that we have a responsibility to minimise and redress harmful impacts and to optimise positive benefits,” Nsana tells us. “We
build sound safety, environmental, and social management practices into all aspects of our business. We strive for continuous improvement in our environmental, safety and social management performance. “Our sustainable development strategy is built around four key pillars: economically viable investments, technically appropriate operations, environmentally sound practices, and socially responsible actions.” Kansanshi aims to deliver this strategy by implementing sound corporate governance practices as well as environmental management systems (in line with an equivalent to ISO 14001:2015 standard) and health and safety management systems (based on an equivalent to the OHSAS/BSI 18001:2015 standard), improving community relations through better communications, and supporting sustainable community development programmes.
KANSANSHI MINING Plc MINING
Your Partner for Mining Unrivaled Expertise in Positive Displacement Pumps NETZSCH positive displacement pumps cover a wide range of mining applications, for example thickener underflow or dosing explosives, and offer various benefits:
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NETZSCH Southern Africa Pte. Ltd. Block A, Unit 16 Kimbult Industrial Park Zeiss Road Laser Park 2170 Honeydew South Africa Tel: +2711 794 8975 Info.nsa@netzsch.com
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Orica We’re here to help our customers find success. It’s our expertise, scale and commitment to sustainable and safe solutions that opens up opportunities and creates enduring value. As the world’s largest provider of commercial explosives and innovative blasting systems, we remain committed to providing expert services to the mining, quarrying, construction, and oil and gas markets. From commercial explosives and blasting systems, supply of sodium cyanide for gold extraction and expert ground support services, we have the right people on the ground ready to partner with you in your region. What’s the enduring value your organisation is looking to create?
orica.com
“ OW I N G TO E F F E C TS O F T H E COV I D -1 9 PA N D E M I C , A LOT O F O P P O R T U N I T I E S TO H AV E FA C E -T O - FA C E I N T E R A C T I O N S W I T H S TA K E H O L D E R S H AV E B E E N D I S R U P T E D ” – V I C TO R N SA N A , C S R M A N AG E R , K A N SA N S H I M I N I N G P LC
ADAPTATION IN THE INDUSTRY However, this kind of collaborative community achievement has not been undertaken without its own challenges. For Kansanshi, the past two years have not only caused global obstacles and varying customer demand, but also prevented peoplecentric activities. “Owing to the effects of the COVID19 pandemic, a lot of opportunities to have face-to-face interactions with stakeholders have been disrupted,” continues Nsana. “Travel to project locations for monitoring activities and support has also been affected. This has interfered with developing and maintaining meaningful and effective 134 | Africa Outlook issue 95
relationships with business partners and other stakeholders.” The COVID-19 pandemic has only reiterated how important the link between Kansanshi, its partners and its wider community is to the overall success and positive external influence of the business. However, the pandemic has also helped push forward development in many spheres of the working world. For both businesses and employees, the past two years have prioritised digital communication and working, highlighted the importance of digital infrastructure, and driven everybody to become increasingly technologically adept.
SINVAC SINVAC is a leading HDPE pipe manufacturer in South Africa accredited for ISO9001:15; SANS4427; SAPPMA and IFPA memberships. It is based in Pretoria and has over the years earned the right to become one of First Quantum’s preferred suppliers by consistently supplying quality HDPE pipes and associated fittings. Currently producing 5 520m large bore solid wall pipe is scheduled to be completed in February 2022. SINVAC is proud to be associated with one of the world’s true powerhouse mining groups and will continue to provide top class service and assistance.
www.sinvac.co.za
KANSANSHI MINING Plc MINING
SOLUTIONS FOR THE FUTURE We’re transforming drill and blast to unlock mining value, with digital and automated technologies creating safer and more productive outcomes. Orica Zambia | orica.com | +260 2 721 310 /330
SINVAC Sinvac is the preferred one-stop supplier of HDPE pipes, fabricated plastic solutions, piping projects and related products in Africa. SINVAC specializes in: HDPE piping systems, HDPE fabrication, HDPE installation projects, SINVACLITE™: structured wall HDPE pipes, Sinvac Roto plastic products and product development. Sinvac House 163 Lloyd St, Pretoria Industrial, Pretoria, 0117 +27 (0) 12 386 6484
www.sinvac.co.za
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Shif Contractors and General Dealers With over 20 years of experience in supplying of safety clothing, mining equipment & offering great logistics services! Formed by Mr Francis Sichimba in the late 90s and officially registered on 16th September 2000, SHIF CONTRACTORS LIMITED has grown to be one of the highly recognised and recommended company in the country and has been successful in dealing with some of the biggest mines in Africa like: Kansanshi Mines , Barrick Lumwana, and many more. We are committed to providing our clients with the best quality of goods and services. We provide a safe and healthy working environment for all our employees and clients.
shif.ltd@gmail.com
INDUSTRY THOUGHTS “I was born in Kabwe, a mining town, and that is where my interest stems from. I liked what mining looked like, particularly the processing; how dirt was turned into value. “It was clear from the onset that mining was a reward and challenging environment. This view has been further reinforced over the years, working for First Quantum.” – Anthony Mukutuma, General Manager, Kansanshi Mining PLC
“Doing community programmes in the face of COVID-19 has not been easy. There has been reduced face-toface contact with stakeholders which is a key requisite to enhance relations between them and the mine,” Nsana elaborates. “However, some smart 136 | Africa Outlook issue 95
innovations have been put in place to ensure that programmes and services continue. The business training for micro, small and medium enterprises (SMEs), school lessons and other interactions had to be shifted onto local radio stations. These included our School on Radio Programme and our Small Business on Radio programme. These interventions proved to reach far more people than we anticipated, and we will continue with this after the pandemic. “We have also found ways of using virtual meetings on various platforms, such as Zoom, Webex, Microsoft Teams and more, to work with stakeholders. “With the availability of vaccines and increasing numbers of people getting vaccinated, face-to-face meetings are becoming possible again and will complement virtual meetings and activities very well. I have no doubt this will result in more effective collaboration and productivity. In light of this, the years ahead are promising.”
SULZER Dewatering solutions for the real world In the real world time is money, and worksites have no time for unwanted water. Sulzer has the solutions in a complete pump range for reliable dewatering. Whether you work in mining, tunneling or construction, the pumps here are your best insurance against water-related downtime. From purchasing to service, you can turn to Sulzer for dewatering solutions that make a difference in the real world.
T +27 021 231 2442/1740 E sales.zambia@sulzer.com www.sulzer.com
KANSANSHI MINING Plc MINING
Shif Contractors and General Dealers
SAFETY BEGINS WITH TEAMWORK!
+260965360375 shif.ltd@gmail.com
Sustainable Flow Control Innovation Sulzer is at the cutting-edge of design and technology. As an innovative manufacturer, Sulzer is the principle provider of solutions for pumps, agitators, mixers, and turbocompressors.
+26 021 231 2442/1740 sales.zambia@sulzer.com
www.sulzer.com
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Unirate Investments Unirate Investments has been business partners with FQM as suppliers since 2002, from the time FQM was operating Bwana Mkubwa Mine, during the era of people like Messrs. Hickman, Rowe, and Scott. These gentlemen were instrumental in getting Unirate established in FQM. When FQM were starting their operations at Kansanshi and Kalumbila it was easy for Unirate to extend its services to them. Unirate is grateful to FQM for having greatly contributed to the growth of the Company. From a 2 man show in 1998, the company now employs more than 50 workers and represents world-renowned OEMs.
www.unirate.co.zm
KEY PARTNERSHIPS This adaptive tech adoption and the digital tools that come alongside it are key to maintaining relationships across the globe, particularly when it comes to the critical partnerships that keep Kansanshi moving forward. In the realm of CSR, Kansanshi maintains multiple critical partnerships with various governing bodies, institutions and non-governmental organisations (NGOs) across Zambia and beyond to enhance the company’s positive impact on communities as well as to safeguard the environment. “Partnerships of immediate concern to the CSR department are slightly different from the commercial partnerships that are entered into for financial reasons,” Nsana says. “The CSR department seeks partnerships based on the need to address issues of mutual concern such as improving livelihoods, providing social services and building capacity for social change.” 138 | Africa Outlook issue 95
Grounded on this principle, Kansanshi has key partnerships in many groups across the region:
The Municipal Council The Municipal Council partnered with the company to improve the township roads by upgrading them to bituminous standards by providing a cost-effective service to the Municipal Council. According to Nsana, a lot of progress has been achieved in this area.
The Agriculture Department The company’s conservation unit has trained more than 40,000 local farmers and continues to give support to 7,000 of them. “Women and youth farmers are receiving training and technical support to improve their productivity,” Nsana tells us. “The Conservation Farming for Nutrition programme is one of the key interventions that is currently being rolled out to local
Verbena Trading SA Verbena Trading SA is a marketer, stockist and distributor of bulk industrial chemicals, minerals and raw materials to a diversified customer base. We physically source, finance, transport, stock and distribute essential commodities to a range of industrial consumers globally. We have long term off-take agreements with producers and encourage technical interaction between all parties. Our suppliers conform to all the various international accreditations and offer product support and after sales service to all our customers. Verbena Trading SA has been active in the commodity trading business for the past 40 years and has offices in Switzerland and Portugal, as well as Agents in Southern Africa who handle the logistical side of the business.
www.verbena-trading.com
KANSANSHI MINING Plc MINING
Unirate Investments Ltd is an industrial and mining supply & services contractor, established nearly 25 years ago. The company is managed and staffed by a management team with more than 100 years collective experience supplying and servicing the mining, manufacturing, engineering and support industry. The company specialises in the supply, installation and servicing of fixed plant equipment and spares and has global procurement capabilities, endeavouring to cater for the customer’s exact needs. Our range of products include: • Mechanical equipment & spares • Electrical equipment & spares • Reagents, process & water treatment chemicals
‘INDUSTIRAL & MINING SUPPLY CONTRACTORS’
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THREE SRATEGIC DIVISIONS TO SUPPORT YOUR OPERATIONS: • Supply Division • Contract Mining Services Division • Engineering Projects & Services Division The Brubin name is synonymous with the business of industrial pumps and dewatering. Brubin has built a solid reputation for fluid transfer, and are market leaders in pump rentals, well-known for selling internationally reputed pump brands. Brubin’s range comprises the following pumps: Hose pumps, magnetic drive pumps, gear pumps, self-priming pumps & many more!
Sepro Mixing and Pumping have been solving mixing and pumping problems for more than 48 years. They have visited hundreds of installations and solved thousands of problems all around the world. This attitude trickles down to their products as Sepro is constantly on the lookout for ways to solve new challenges on the market. Sepro supplies concentrator equipment and spares including crushers, screens, feeders, agitators etc. EIMCO-K.C.P. Ltd has a rich history that has endured for more than 50 years. From a small manufacturer serving customers in India, EIMCO’s territory now spans around the world. The EIMCOK.C.P. equipment product line consists of liquid solid separation products for the mining, mineral & metallurgical process with a wide range of related services. EIMCO’s range of products include thickeners, clarifiers, classifiers, flocculators, horizontal belt filters and drum filters, among others.
Tel/WA: +260 760 962 944 info@unirate.co.zm
www.unirate.co.zm
VERBENA TRADING SA
Supplying Essential Commodities to a range of Industrial Consumers, Globally.
Baarestrasse 11, 6302 Zug, Switzerland Telephone: +41 32 510 8990 Email: Richard@verbena-trading.com www.verbena-trading.com
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“ W E H AV E A S S I S T E D I N T H E P U B L I C AT I O N O F M AT E R I A L S T O D I S T R I B U T E I N S C H O O L S A S A WAY O F T E A C H I N G S A F E A N D R E S P O N S I B L E B E H AV I O U R T O Y O U N G PEOPLE” – V I C TO R N SA N A , C S R M A N AG E R , K A N SA N S H I M I N I N G P LC
women. Technical support to all conservation farming activities through field visits by extension workers (field officers) is being supported by the mining company.”
The Health Department The company’s Health Promotion Team is encouraging Primary Health Care Provision in communities near the mine and supporting the government health services by providing support to procurement of health care equipment and materials. The company helped to build and equip a number of health centres to 140 | Africa Outlook issue 95
provide primary health care. The Regional Referral Hospital was rehabilitated (including the reconstruction of a whole new modern maternity wing) and some equipment was provided. Kansanshi has continued to provide weekly medical oxygen supplies during the scourge of the COVID-19 pandemic.
Zambia National Parks and Wildlife Authority Kansanshi has partnered with the authority to start a wildlife ranch which has more than 16 species of wildlife that were introduced onto
the mine lease. The animals are breeding and the numbers growing to the extent that some have been donated to the government park, West Lunga Game Reserve, whose animal population was unfortunately decimated to near extinction over the years.
Zambia Road Transport Safety Agency In collaboration with the agency, the CSR department runs road safety messages on local radio stations and carry out campaigns to sensitise communities and schools of safe behaviour on the roads. “We have assisted in the publication of materials to distribute in schools as a way of teaching safe and responsible behaviour to young people,” Nsana explains. “Kansanshi carries out joint activities to commemorate international and national road safety events and helps with the road makings and road furniture rehabilitation.
KANSANSHI MINING Plc MINING
Rock Tech Limited is a Zambian owned company and always strives to improve in all areas of operations. We were incorporated in 2008. Since inception the company has worked with FQML (Kansanshi, Kalumbila, Lumwana, Lubambe, NFC and Mopani Mines) since 2017 in MECHANICAL HANDLING, Conveyor belts
components and other services. We have enjoyed a good partnership with Kansanshi Mining PLC and involved in Corporate Social Responsibility (CSR) by being the sponsors of Man of the match for Kansanshi Dynamos football club and other clubs such as Trident Football Club and Trident Cricket Club.
Mutentemuko Road, Kitwe, Zambia 5035 Mutentemuko Road, Heavy Industrial Area. Kitwe Zambia +260 212 214356 +260 212 214355
+260 966929422 +260 955 831752 ZOOM/Whatsapp
rocktechzltd@gmail.com | sales@rocktechzambia.com
www.rocktechzambia.com
INAFRICA DRILLING & EXPLORATION LTD
Lufwanyama Enterprises Limited The Seed to the finished product
SPECIALISED IN :
• • • •
Boreholes for Domestic, Industrial & Agricultural purposes Drilling of deep Dewatering boreholes up to 450m Drilling of Blasting holes, Environmental & Monitoring holes for mining Supply & installation of Hand pumps, Submersible pumps & Pump test
Striving to Achieve Zero Waste from the Timber We Harvest We are the longest established private operational sawmill in Zambia and have our own private Pine and Eucalyptus plantations which are well established and added to every year. Products include: Dunnage Blocks, Pallets, Building Timber, Wood shavings and sawdust for animal /poultry bedding and charcoal briquettes from any remaining waste. Solwezi Road, Chingola, Zambia T: +260966990443/+260969581288 E: lufent@iwayafrica.com
Contact : +260 973 476 476, +260 967 476 476, +260 950 476 476 • • • •
Head Office : Plot No. 14B, Kanyanta Avenue, Town Area, opp: Professtional Insurance, PO BOX 20082, KITWE, ZAMBIA Branch Office : Plot No. 318, 9 Freedom Avenue, Near Welcome to Chingola round about, CHINGOLA, ZAMBIA Branch Office : Plot No. 2115, Riverside, Chingola Road, SOLWEZI, ZAMBIA E-mail : iadexltd@gmail.com, kkpeddi@gmail.com
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KANSANSHI – ADDITIONAL AWARDS
accidents or incidents that happen on the roads in the local and surrounding areas.”
PRESIDENT’S AWARD
NGOs and CSOs
Outstanding Support towards the fight against COVID-19 (awarded by Northwestern Chamber of Commerce Trade and Industry) MINE COMPANY OF THE YEAR Business Award (awarded by Northwestern Chamber of Commerce Trade and Industry) BEST CSR PROGRAMMES (2014) Exemplary CSR Efforts Making a Difference in the Local Community (awarded by The Zambia Institute of Chartered Accountants)
“The agency forms and monitors the community safety links (volunteer first responders) with whom the community safety officer undertakes emergency response simulation drills and stands ready to respond to traffic 142 | Africa Outlook issue 95
Kansanshi has partnered with the Young Women’s Christian Association (YWCA) to campaign against early marriages and gender-based violence. Kansanshi supports the activities of the YWCA by providing financial and technical support. To ensure that this support is self-sustaining, Kansanshi has set up the Nsanshi Art studio that makes jewellery from copper produced at the mine, for sale locally and further afield. The proceeds from this venture are donated to the YWCA. So far, roughly $10,000 has been remitted to the YWCA’s operations account from this venture alone. The partnership with the Extractive Industries Transparency Alliance (EITA) facilitates monthly stakeholders’ information sharing forums. During these meetings,
stakeholders have an opportunity to bring any suggestions and concerns that they have for discussion and, where required, seek clarification.
Community and Leadership Traditional Leadership plays a very important role in the general operations of the mine. Kansanshi engages the community leadership on matters of mutual interest and assists to maintain the much-needed social license to operate. The company supports traditional values through participating in traditional ceremonies and works with traditional leadership to create awareness of pertinent issues such as early childhood education, nutrition, environmental stewardship, and social vices such as gender violence and early marriages. In addition, Kansanshi utilises the counsel of the Council of Elders to inform its engagement with such leadership and traditional bodies such as royal establishments.
KANSANSHI MINING Plc MINING
sales@ump.co.za | +27 11 452 1000 www.ump.co.za
Here is what we do:
Engineered solutions for reducing total cost of ownership and operating expenses
1. We Mine and supply silica (SiO2) for Copper Metallurgy 2. We buy Mild Steel and High Carbon Scrap metal 3. Supply Mill Balls and grinding Media and are agents of SCAW Limited 4. We supply steel products including Steel billets and Spongy
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Pipes and Pipe Fittings Knife Gate Valve Bodies and Seals Pinch Valve Sleeves Pump Parts Chutes, Bins and Launders Dump Trucks Flotation Parts Hydro Cyclone Parts Our+260 Contact And Address: 965 238 008 sinya@nshimatowers.com
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CHINGOLA OFFICE CHINGOLA OFFICE No 66 13th Street
Soltech House Number 5088/A
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Africa Outlook issue 95 | 143
KANSANSHI MINING Plc MINING
KANSANSHI – SUSTAINABILITY REGULATIONS • Regular auditing of environmental management plans and systems • Efficient use of natural resources • Proper management of effluent, emissions, waste and biodiversity • Frequent and regular stakeholder engagement, including at key project stages • Emergency preparedness and response plans • Climate change management and strategies Safe design, construction, operations and management of company Tailings Storage Facilities
North-western Chamber of Commerce and Industry Through the chamber, many local enterprises have received training in business undertaking. A key member of the chamber offers training to small enterprises through the funding from Kansanshi.
COMMUNITY DEVELOPMENT Kansanshi undertakes a lot of interventions in the area of 144 | Africa Outlook issue 95
community development with the help of such partners operating in the CSR space. The key areas cover education, conservation farming, community safety, livelihoods promotion and support, gender, sports, health promotion and more. “Within our social responsibility strategy, we have a strong focus on CSR projects that are specifically developed to assist the communities which host our operations,” Nsana adds.
Education Kansanshi’s Education Quality Improvement Programme focuses on developing educational institutions across Zambia, including providing re-training of school heads and teachers to improve their leadership skills and enhancing teaching methods and practices. Furthermore, on the education front, Kansanshi provides teaching and learning materials and school desks, in addition to building classroom blocks. The company also facilitates mine tours for schools for educational purposes and providing computer lessons in schools to develop ICT skills in children at an early age.
Conservation Farming The aforementioned Conservation Farming unit revolves around training farmers and developing them from a subsistence level to farming for business and profit.
KANSANSHI MINING Plc MINING
Hire of access equipment and generators
Solvay Mining Solutions More than a miner difference
The closer we work, the more we discover. The more we discover, the further we go. LET’S CREATE SUSTAINABLE, SHARED VALUE. Boogart Technical Ltd | P.O. Box 28148, Kitwe, ZAMBIA Email: admin@btechzambia.com | Mob: +260 966 782 011 www.btechzambia.com
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Schenck Process continues to focus on customer proximity and is the first company to offer in-house production facilities in Africa for both vibrating equipment and screen media, all under one roof. Schenck Process Africa (Pty) Ltd 1 Crusher Road, Crown Ext. 3 Johannesburg, South Africa sales.pza@schenckprocess.com www.schenckprocess.com
Plot 2397, Longolongo Road, Light Industrial Area, Lusaka, Zambia T +260975828812 E info@siltekk.com W siltekk.com
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KANSANSHI MINING Plc MINING
“So far, over 40,000 households have been trained in conservation farming and 7,000 are receiving inputs and weekly visits for technical support” Nsana explains. “In this space, Kansanshi helps them look for market opportunities, provides seedlings for the farmers who practice horticulture, and supports the Conservation Farming for Nutrition initiative that seeks to better the health and wellbeing in our communities.”
Community Safety The company carries out activities of managing off site community safety, running radio programmes on safety, helping spread the awareness of COVID-19 sensitisation to communities, holding meetings with community safety representatives and patrons (including emergency simulations), and monitoring Acid Tankers along T5 truck road (Zambia). There has been 15 Safety Kinks 146 | Africa Outlook issue 95
formed along the T5 road to help as first responders in case of a road accident or community emergency.
Livelihoods Promotion and Support This involves the designing, implementing and monitoring livelihood projects such as community banking services (Village Banks) especially to women and youths, as well as identifying gaps in the access to incomes, while formulating training programmes to mitigate the issues.
Gender Stemming from supporting the livelihoods of individuals, Kansanshi works with partners to support female school pupils with sanitary materials, on top of facilitating the training in sexual, reproductive and menstrual hygiene, and providing support to a safe house for girls who have been sexually abused and keeping them in school by providing free educational
bursaries. The company promotes scholarships to help female pupils continue with their education to higher levels and works with teachers and parents to fight early pregnancies and marriages.
Sports In the realm of sports, Kansanshi supports various clubs including rowing, cycling, netball, volleyball, football and athletics, and provides bicycle spares and repair services to the communities around the mine.
Health Promotion Providing public health and health promotion services to the communities and employees, the recently launched Butuntulu bwa Nyaunda (meaning ‘Community Health and Wellness’) programme focuses on providing community health to communities.
KANSANSHI MINING Plc MINING
A WORLDWIDE LEADER IN PROCUREMENT SOLTUIONS With more than 18 years experience in Africa, Total Mining adds value and piece of mind to operations in the mining, exploration and civil engineering industries that rely on moving equipment and related supplies to all parts of Africa. It has been a privilege to be a preferred supplier to Kansanshi Mine since 2004 and we look forward to growing our relationship and working with you in the years to come!
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Choosing the right drilling company in Africa demands that you identify a company with the international experience, the diverse expertise, the technical capacity and the safety and environmental commitment to do the job right. Tectonic Drilling is a relatively small, highly experienced drilling company that offers the complete range of drilling services from exploration through to production, blast-hole drilling and geo-tech services.
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Mukuba Mining Services Limited Mukuba Mining Services Ltd is a private limited company wholly owned by women. It was incorporated in the Republic of Zambia to provide solutions to the mining industry in Zambia and the Democratic Republic of Congo. The products and services from our specialized departments range from industrial chemicals, reagents, laboratory equipment & consumables, electro-winning products, pyrometallurgical services, acid plants, heavy equipment hire, electrical installations, mechanical consumables, mining and general engineering services. For complete solution to your needs in mining, please contact us on sales@mukubaminingservices.com or visit our website.
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Africa Outlook issue 95 | 147
KANSANSHI MINING Plc MINING
COPPER FOR THE GLOBE
Support to the Regional Referral Hospital, Provincial Health Office and the District Health Office in various interventions also benefits communities.
Skills Training Kansanshi provides training to artisans in automotive mechanics, power electrical, metal fabrication and heavy-duty vehicle repair. Two successive intakes were reserved for female applicants in a role.
SMEs By identifying business opportunities that can be filled by local entrepreneurs and starting businesses, Kansanshi also includes training in basic business and financial management skills.
INVESTING IN THE FUTURE Moving ahead, Kansanshi will be 148 | Africa Outlook issue 95
continuing to invest in these kinds of community programmes and activities in line with its core values. “The department will continue with the current partnerships but remain open to other mutually beneficial ones that may arise in the course of the current year,” Nsana concludes. “However, there is already a plan to increase the farming aspect of Kansanshi’s conservation farming activities by introducing the fruit tree component in the local communities. “The key investment is in starting a programme to train apprentices who are making jewellery. The company has also invested in the training of artisans through the skills training programme that is based at the Trades Training Institute where young people are trained in automotive mechanics, metal fabrication, power electrical and heavy-duty equipment repair.”
Through 2022 and beyond, Kansanshi will continue to stand as not only a key industry player in the Zambian mining, but also a contributor to the development of the wider community surrounding the mine. Kansanshi will continue to be innovative and focused on decarbonisation and continuous improvement (cost, efficiency, productivity and quality) to ensure the operation is sustainable, recognising its obligation to extract resources responsibly, and that sustainability and social responsibility is an intrinsic part of everything the company does. Kansanshi’s primary objective is to push its current operations to double annual mined volumes and process throughput by 2025, but alongside this, the many environmental, staffcentric and community efforts are paving the way for the company’s progressive future as a people’s business. It is through Kansanshi’s continuation of sustainable development that the company will help provide copper in a clean and efficient way to contribute towards the increasing global electrification that we are currently witnessing, so that businesses and infrastructure around the world can incorporate renewable energy technology, made a reality through the facilitation of copper. In light of this, it is safe to say that copper is leading the way.
Tel: +260-212658203 www.first-quantum.com
KANSANSHI MINING Plc MINING
FLOTATION REAGENT
TECHNOLOGIES
Manufacturer & Supplier of Mining Chemicals and Flotation Reagents
Proud Partner & Supplier of Flotation Reagent Technologies to Kansanshi Mining
Spirit of Innovation We are a manufacturing company based in Kitwe, Zambia, specialising in structural steel fabrication and installation, machining and manufacturing of mining accessories, building and civil works and more. We currently service mining companies, utility companies, agriculture entities, Cement and Petro-chemical industry.
Martin Lusambo
Louis Hoffmann
+260 966 739 955
+27 82 416 2772
Technical Sales Manager, Zambia martin.lusambo@kemtec-africa.com
Technical Sales Director louis.hoffmann@kemtec-africa.com
www.Kemtec-Africa.com
Meltcast Engineering Limited P O Box 20027 Plot S/D/A/2/B1, Farm 839, Golf Club Road Nkana West, Kitwe, Zambia Cell Nos: +260 966 786216 / +260 966 786244 Email: meltcastengineering@gmail.com http://meltcast.weebly.com/contact-us.html
Africa Outlook issue 95 | 149
ENAEX AFRICA MINING
HUMANISING
MINING Enaex Africa stands as a South African company and subsidiary of the global explosives supplier, Enaex group. CEO Francisco Baudrand lifts the lid on a unique company culture and a teleoperated future Writer: Phoebe Harper Project Manager: Joshua Mann
Enaex has the ambition to be the best company in our industry, both for providing premium blasting solutions, and as the preferred choice for our customers,” opens CEO at Enaex Africa, Francisco Baudrand. The wider Enaex group boasts an esteemed legacy as a world-class explosives leader. With more than 100 years of history, Enaex, a company founded in Chile, is the third largest explosives company in the world and the third largest producer of ammonium nitrate. “Prillex, our production plant in Chile is the largest complex in the world, producing 850,000 tonnes a year,” Baudrand shares. 150 | Africa Outlook issue 95
As one of the group’s largest subsidiaries, Enaex Africa shares this ambition as it endeavours to become the preferred company on the continent for the distribution of explosives, blasting services and value-added solutions. These solutions pertain to the entire blasting process, including bulk emulsions, cartridge emulsions, Anfo,
boosters, conventional detonators and other products required to execute opencast and underground mining operations, quarries and civil construction. But for Enaex Africa, what truly differentiates the company is the entirely people-centric culture that pervades all aspects of operation. Indeed, the company’s offering
extends beyond its material role in the provision of commodities, with the belief that customer service and innovation make all the difference when it comes to being a supplier of choice. “We don’t believe that commodities and competitive pricing are going to change the industry – we believe in value-added products that can
increase the productivity of our customers. “We focus on our service and partnering with our customers – that is what it means to be the best,” he states.
JOINING FORCES Enaex Africa exploded onto the continental mining stage in July 2020,
born from a joint venture between Enaex, and Sasol Explosives Limited (Sasol) – a South African company that has been in operation since 1984. Enaex’s ability to secure this partnership amidst steep competition is testament to the company’s strengths. Baudrand himself joined Enaex prior to this in 2011, initially starting Africa Outlook issue 95 | 151
ENAEX AFRICA MINING
Universal Hydraulics and Expeditors Universal Suppliers & Expediters was established in 1990. We specialise in hydraulics, electronics, engineering and manufacturing. We did various designs for a wide range of clients throughout the industry in the mechanical, hydraulic, mining and agricultural engineering fields in South Africa and neighboring countries Our office, workshop and machine shop is situated in Witbank Mpumalanga, South Africa where we serve all fields with a vast range of hydraulic products, repairs, manufacturing and on site installations. We designed and manufactured various hydraulic cylinders and jacks for the mining and metal industry.
“WE FOCUS ON OUR SERVICE AND P A R T N E R I N G W I T H O U R C U S T O M E R S – T H AT I S W H AT I T M E A N S T O B E T H E B E S T ” – FRANCISCO BAUDRAND, CEO, ENAEX AFRICA
We have designed and manufactured various opencast and underground explosive loaders and related products for the explosive industry since 1994 (AEL, B.M.E, Sasol, Explotech, Problast BS, Enaex, Modern Chemicals and Service Company). We are distributors for:
in the role of Business Development Director when the company was yet to expand its operations outside of Chile. Leveraging his professional background across the shipping and airline sectors as an industrial engineer, Baudrand’s directorial position oversaw Enaex’s mergers and acquisitions processes, analysing new projects and guiding the company’s wider expansion into South America with the launch of significant subsidiaries in both Brazil and Peru, amongst others. As such, when the opportunity arose for Enaex to apply as a proponent to join forces with Sasol in South Africa, Baudrand was well equipped to oversee the process. “My last and most important project in this role was taking the lead on negotiations for our joint venture with Sasol. When Enaex was appointed as the selected partner and we signed the deal, I accepted the position as CEO of Enaex Africa,” he recalls. 152 | Africa Outlook issue 95
Today, Enaex stands as the controlling partner of Enaex Africa with a 51 percent share, with an additional 23 percent owned by Sasol and the remaining 26 percent by Africa Rising Explosives Ltd (Afris) - as the company’s official broadbased black economic empowerment (BBBEE) partner. “Enaex Africa is our vehicle of growth not only in South Africa (SA) but also across the continent. We already have a strong presence in SA as a leader in explosive supply for both underground and open cast mining operations. “We have established customers in Namibia, Lesotho, and not forgetting Botswana,” Baudrand comments. To date, the Enaex Africa enterprise comprises around 1,194 employees, the majority of whom are based in SA. With the entire Enaex Group encompassing over 6,000 staff members, Africa stands as one of its largest subsidiaries, after Chile and Brazil.
• Sauer Danfoss Hydraulic Equipment • Hydac Filtration and Hydraulic Equipment • Siemens, Unitronics, Modicon PLC’s • JLPC, Norgren, Bosh, Comozzi Pneumatic’s Due to our long (32 years) relationship with other Hydraulic Companies in SA we have managed to secure good discount structures with them and thereby can supply almost any hydraulic products at competitive prices. We offer PLC integration, Scada development, panel design and building. We also do a range of control and instrumentation Turnkey projects including installation. Universal Suppliers & Expediters are members of the following institutions: ECSA – Engineering council of South Africa. Registered Lifting Machinery Inspector (LMI 2009120050) COET – Chamber of Engineering Technology SAFPA – South African Fluid Power Association. Company and individual membership.
UNIVERSAL SUPPLIERS & EXPEDITORS www.usesa.co.za
ISO 9001/2015 Accredited Company
Hydraulics: Design, manufacturing and repairs of hydraulic cylinders, power packs and hydraulic systems. Suppliers of pumps, valves, hydraulic accessories, hoses and fittings. Arc furnace equipment: Design, manufacture and repair of clay guns, furnace drills, clay/drill combo, skimmer hoists, electrode clamping systems and rod gates. Explosive mixing/charging plant: Design, manufacture and repair of Opencast charging trucks and underground charging units. Industrial City, Warehouse 51, Voortrekker street, Emalahleni (Witbank), 1035, Mpumalanga, South Africa +27 (0) 13 656 1567 pieterp@usesa.co.za malcolm@usesa.co.za
Site services: Pipe installations, hydraulic installations, lubrication installations, general mechanical installations, electric/electronic installations. Electric / Electronic: PLC integration, Scada development, panel design and building. General Engineering: Boiler making, machining, gearbox repairs, water pump repairs.
ENAEX AFRICA MINING
“ W E A R E A N A G I L E C O M P A N Y T H AT TA K E S D E C I S I O N S L O C A L LY ” – FRANCISCO BAUDRAND, CEO, ENAEX AFRICA
As Baudrand affirms, it is the new ways of working that Enaex brings to Sasol that truly differentiates Enaex Africa. Whilst the company has inherited an overriding priority on safety, Enaex has introduced to the joint venture an unprecedented agility, focus on innovation, and a renewed emphasis on company culture. “Enaex has brought a different philosophy to the Sasol business. Sasol has great people, but Enaex is a smaller group that doesn’t care about bureaucracy – we are an agile company that takes decisions locally,” he says. In less than two years of operation, this has translated to heightened levels of productivity, speed and 154 | Africa Outlook issue 95
strong financial results, with products brought to market in SA in record time.
A COMMUNITY-LED COMPANY The company culture that stands Enaex Africa apart is one centred on the customer, service excellence, and innovation, with safety as a nonnegotiable factor throughout. Enaex Africa stands as a community-led company, and it is this factor that it seeks to emphasise compared to its predecessor in SA. Whilst Enaex has been committed to securing operational safety and excellence in its nascent years of operation, this community focus is being brought to the fore now that its foundation has been stabilised.
“We need to place more visibility and importance on communities compared to our heritage,” Baudrand comments. “As a supplier to the mining industry, we understand that community is very important, and we are committed to the communities around where we operate.” Enaex Africa believes in partaking in meaningful corporate social responsibility (CSR), in that all activities must be aligned with the company’s customers and their operations. Complementary to this, Enaex Africa intends to establish its own brand of CSR, taking the initiative as a leader in implementing beneficial changes in people’s lives. A key tenet of this is improving access to both employment and educational training. This is particularly pertinent in SA, as the country faces record levels of unemployment. Such initiatives have included the Assistant Blast Training Programme, where the company
ENAEX AFRICA MINING
• Labour Law Advise • Human Resources • Outsourcing / Contract Labour • Payroll Outsourcing • Recruitment & Placement We strive to be a unique and global labour service provider of First Choice. AB Labour Services is a well established and empowered labour service provider with branches in Thabazimbi and Rustenburg. For professional service and consultation to suit your complete labour provision needs. This is an invitation for your Company to become a Leader in your Industry and to have the edge on your competitors. While your competitors waste energy on means to avoid the pitfalls of Labour Laws you are able to channel your energy onto your core business. 103 van der Bijl Street, Thabazimbi, 0380 | T +27 14 772 1216 info@abls.co.za | www.abls.co.za
WE’LL KEEP YOU OPERATING
Pirtek manages the entire hose usage, supply of fittings and associated products and service requirements in the customers workplace by providing: 24 hours a day, 7 days a week on-site support • Rapid response time • Highest quality products plated or stainless steel • Hose management programs in the customers workplace • Tagging system recognised internationally • Vendor managed inventory • Convoluted metallic hose assembly and fitting kits • Satisfaction of customers bulk supply requirements • Periodic maintenance and scheduled replacement of perishable equipment • Supply and installation of various greasing and lubrication systems
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Africa Outlook issue 95 | 155
Staff are trusted with responsibilities and encouraged to take on new opportunities even if it results in failure
spent over 500,000 ZAR to enrol 20 unemployed youths into its Mpumalanga operations on a Blasting Assistant Training course. Enaex Africa has also spent over $1.3 million on a Rural Education Access Programme (REAP) designed to assist students from poor rural areas. Similarly, the company invests significant funding into early childhood development, including a national reading for enjoyment campaign to spark children’s potential through reading and storytelling. As a BBBEE compliant company, Enaex Africa is committed to providing employment opportunities for young black people who are unemployed and below the age of 35. The company aims to achieve a ‘Level 2’ rating in its next verification process in April, after attaining ‘Level 3’ certification in May last year. As a major component of the company’s strategic plan, BBBEE certification means that Enaex Africa allocates a portion of its profits to local employment opportunities, 156 | Africa Outlook issue 95
ENAEX AFRICA MINING
absorbing new learners in proportion to its headcount. “To do that, you need to be growing. We have increased at least 180 people in terms of our headcount - a company that is growing is giving opportunities,” he tells us. Alongside creating new opportunities, Baudrand places a huge emphasis on mentorship and empowering employees through giving the necessary training to allow them to progress and succeed. Enaex Africa implements a Young Professionals programme, whereby young members of staff whose potential has been identified are paired with a member of the executive team for mentorship opportunities. “I personally mentor these young professionals who show high performance potential. I will meet with such individuals throughout the year to inform them on strategy, or take questions, and I believe it is hugely appreciated,” he says. “I am obsessed with the development of professionals, particularly when so many of these people are the first professionals in their family. It gives people the opportunity to change their lives.” This translates to a sense of empowerment, as staff are trusted with responsibilities and encouraged to take on new opportunities even if it results in failure. “The empowerment of our employees goes across the company, from the executive team down to the ground. As an independent, agile company, my executive team today has more accountability than they would have in a big corporation. “By needing to make decisions and having this level of responsibility, each member feels more empowered. When you are accountable, you take decisions. We don’t worry about mistakes; we learn from them and prefer to focus on people taking accountability and coming up with solutions.”
INNOVATING WITH INTENT As an integral ingredient of the Enaex Africa company culture, innovation is used to both propel the company forwards and improve safety. “Life is our main value and our number one priority, and we are continuously putting new initiatives in place to improve in this area.” This is best evidenced by Enaex Africa’s trailblazing strides in teleoperations – which is not only advancing the mining industry as a whole, but also revolutionising safety by minimising risk through reduced employee exposure. “Enaex’ purpose is to humanise mining and that is part of what differentiates us. We believe in entrepreneurship, and we are one of the few explosives companies in the world that uses tele-operated equipment. “We already have tele-operated robots priming and loading explosives products in the ground in Chile, and we will be bringing this to SA in the next few years,” Baudrand tells us. For Enaex Africa, this effort in humanised mining concerns the understanding that mining is a highrisk industry where staff are faced with tough working conditions. “We hope to change this over time through the work that we are doing today. For example, we used to have Mobile Mixing Unit truck drivers on the ground and exposed to unsafe conditions. Now, that driver is 500 metres away in an office teleoperating the truck. “This new way of working is changing the world.” Whilst Enaex Africa understands that mining is a realm ripe for technological innovation, the company recognises the need to preserve jobs and retrain employees with the necessary skills to remain up to date with such progress. “Through time as artificial intelligence (AI) and other technology is introduced, you might see people’s job roles being replaced. But I believe
the skills will change instead, for those already working in programming and computers. “We will take care to preserve all jobs – we care a lot about them, and we create them. But if we don’t take the lead, someone else will,” says Baudrand. In the years to come, Enaex Africa will continue to focus on spreading its footprint across Africa, with Botswana identified as the next key area of growth. “We entered Botswana in 2021 with local partners – we already have two partners there but now we are really focusing on getting more Botswana business,” says Baudrand. Enaex Africa will also be championing a focus on localised production as it seeks to increase local procurement. “We are currently in the middle of an important project in establishing an assembly plant that will produce the electronic detonators that we have to import from France. This will create more jobs and means that we will be able to source major components locally.” Aside from this, the company is dedicated to furthering its CSR commitments, with a new CSR Manager having been appointed in February of this year. “Particularly in 2022, I want to put more focus on CSR. Personally, as the CEO, I intend to oversee the most important initiatives myself,” Baudrand concludes. With such projects and a solid company culture centred on safety empowering the people behind the business, Enaex Africa will continue to humanise mining across the continent.
Tel: 011 911 3412 insider@enaex.com www.enaex.com Africa Outlook issue 95 | 157
CONNECTIVITY FOR CONGO We discuss the future of telecoms and bridging the digital divide with Ayham Moussa, CEO of MTN Congo Writer: Jack Salter | Project Manager: Josh Hyland
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MTN CONGO TECHNOLOGY
A
s part of the MTN Group in the WECA (West and Central Africa) region since 2005, MTN Congo has embraced the spirit and values of Africa’s largest mobile operator. The company offers top-line technology and services to its customers in the Republic of the Congo (Congo), and is spearheading the telecoms space in the country. “We are a significant and dedicated contributor to the development of
Congo in terms of employment, the environment, and the economy,” opens Ayham Moussa, CEO of MTN Congo. Having invested over $1 billion over the past 20 years, built world-class networks, and established a very reputable brand, MTN Congo ranks among the top five contributors to the Congolese economy. Spanning almost 350,000 square kilometres, Congo is a sizeable country in which the company is
determined to reach and include the whole population, bridging financial and digital divides in the process. “It is heart-warming to travel and meet newly connected ultra-rural communities in Congo, and see them reaching out to this dazzling world of opportunities for the first time,” Moussa smiles. “Such endeavours fundamentally crystallise the purpose of MTN Group, to help overcome barriers and reach out to everyone throughout the continent, regardless Africa Outlook issue 95 | 159
The breath of innovation Asca Télécoms specializes in telecommunications and the provision of Internet access. As such, it provides Internet access to institutions, professionals and individuals; technical assistance, computer service and telecommunications; computer, telecommunications and tele-security installation work. This privileged position at the forefront of innovation, also allows it to intervene in the fields of communication, in particular web design and referencing, communication agency and commercial representation in areas related to telephony, in particular and new technologies in general. Asca Telecoms is also responsible for the provision and training of personnel in the IT, internet and tele-security field, the marketing of import-export in the IT, telecommunications and tele-security fields and finally the supply of tailor-made solutions for security professionals, institutions, businesses and individuals.
ascatelecoms@gmail.com | www.asca-telecoms.com
MTN CONGO TECHNOLOGY
of where they are.” Congo is fascinating from a technology point of view. With mobile user penetration of more than 160 percent of the addressable market in the country and a staggering 61 percent of mobile users utilising MTN Congo’s financial services, the highest across MTN Group’s operations, the company recognises the potential and appetite of the Congolese population for new technologies. Indeed, customers here have been impressively quick to react to new services in the digital space such as instant messaging, mobile TV and financial services, the latter of which MTN Congo is now heavily involved in with a large customer base engaged everyday through MTN Mobile Money (MoMo). MTN MoMo is a FinTech platform
providing consumers and businesses with a host of innovative digital financial services, enabling users to access payments, e-commerce, insurance, lending and remittance services, among other things. “Today, MoMo enables more than 1.9 million subscribers each month, thus becoming their main payment utility to perform quicker and more secure financial transactions in their day-to-day lives,” outlines Moussa.
INCLUSIVE SERVICES As the wider MTN Group continues to scale mobile financial service solutions and create an integrated FinTech platform and ecosystem, MTN Congo thereby supports greater digital and financial inclusion as well as cashless and digital economies. “MTN Congo is actively working to increase digital inclusion in the
AFRICA OUTLOOK: WHAT IS IT THAT DIFFERENTIATES MTN CONGO FROM OTHER TELECOMMUNICATIONS COMPETITORS? AYHAM MOUSSA, CEO: “Being part of an international group such as MTN means we are dedicated to offering our customers the best services of the highest quality. “Why are we different? Because MTN Congo is a responsible, transparent, and ethical organisation that offers the best and latest technologies. Our Pre-paid, Post-paid, Enterprise and MoMo customers receive a wide range of high-quality services and utilities designed to serve them and their homes. By establishing a treasured level of trust with our valued customers, it earned us our status as the leading telecoms and technology service provider in the country. “We maintain world-class telecoms, digital and financial services for each of our three million customers, and we would not be able to do that without our employees; they are the essence of our delivery. 98 percent of our 240-strong workforce are local employees, and we are recognised as one of the best employers in the country. “MTN Congo genuinely believes in a connected and cashless society for the betterment of the continent. This is imprinted into the heart and soul of the company, and our investments will always be driven and empowered by that belief.”
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economy through our business solutions, which connect small and large enterprises alike and digitise their daily activities. We hope to see people access high quality digital and financial services at any time, any place, to sustain better lives for themselves and their families,” Moussa adds. “Other ambitious services are also underway, and the more ambitious we grow, the more acceptance we get from our customers.” The unparalleled traction of MTN Congo’s newly built platforms is best evidenced by the success of MTN Ayoba, an all-in-one app that allows people to chat, call, read, play and listen to music. Users can chat with anyone regardless of whether they have the app or not, and MTN subscribers can chat with other Ayoba users on other mobile networks. Naturally, MTN Congo is also very excited to witness what 5G will bring to the future of connectivity, built around offering more customised and personalised telecoms services to create more engagement and higher quality applications. The company therefore strongly believes that 5G technology will uplift the user experience to whole new levels. “Rolling out 5G is a sophisticated process that involves spectrum allocations, considerable investment, complex designs, and delivery plans. MTN Congo will spare no efforts to undertake this new realm and lead the introduction of 5G to the market,” emphasises Moussa. “Congolese citizens can rely on us for 5G services on their mobile phones and inside their homes and enterprises.”
COMMUNITY FOCUS As a socially responsible company, MTN Congo has strengthened its CSR actions since the advent of the COVID-19 pandemic, focused on finding solutions and mitigations
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Together we can bring digital to every person, home and organization for a fully connected, intelligent world Adhering to the concept of “customer-centric and dedicated employees-oriented”, we have grown into a leading global ICT solution provider. We continuously innovate based on customer requirements, build end-to-end solution advantages in telecom networks, devices, and cloud computing, and provide competitive comprehensive solutions and services for telecom carriers, enterprises, and consumers to create maximum value for customers. We will continue to give back to society and strive to contribute to Congo’s economic development, talent training, and technology diffusion.
www.huawei.com
to help communities combat the pandemic. Once the first COVID-19 cases were discovered early in 2020, the company took specific measures to counter the spread of the virus within Congolese communities in line with World Health Organization (WHO) recommendations and guidelines issued by government. “When COVID-19 hit, we realised that it was time for big brands such as ourselves to step up and change the way we work and communicate,” Moussa explains. “We invested and expanded fast, and made it possible for the Congolese people and economy to continue operating and connecting seamlessly through our services.” Knowing that raised awareness among the population would help to reduce the spread of COVID-19, a communication campaign was initiated by MTN Congo via its social networks and SMS services. With the closure of schools due to lockdown measures in the country, 166 | Africa Outlook issue 95
“ M T N C O N G O I S A C T I V E LY W O R K I N G T O I N C R E A S E D I G I TA L I N C L U S I O N I N T H E ECONOMY THROUGH OUR BUSINESS SOLUTIONS, WHICH CONNECT SMALL AND LARGE ENTERPRISES ALIKE AND DIGITISE T H E I R D A I LY A C T I V I T I E S ” – AY H A M M O U S S A , C E O , M T N C O N G O
the company stepped up to help produce and broadcast free courses on its streaming platform, Télé Na Ngai (TNN), and on Congo’s national television channel. To further support the Ministry of Health in the fight against COVID-19, MTN Congo provided free-of-charge communications packages to health workers on the front line of battle. A number of computers, printers, and modems with 4G internet connectivity were also donated to the Congolese government, with the intention of creating 20 new COVID19 vaccination sites. “CSR is embedded into our
environmental, social and governance (ESG) strategy framework, and our ambitions go beyond being a responsible citizen. We continue to reinforce the positioning of MTN Congo as the partner of choice,” Moussa tells us.
PRESERVING THE PLANET One of MTN Group’s primary goals is to use technological advancements to play its part in preserving the planet. The company believes in the benefits of a healthy planet, and has pledged to achieve net zero emissions by 2040 as the impacts of climate change become increasingly visible around
H
uawei is a leading global ICT infrastructure and smart device provider. As a global leader in the ICT industry, Huawei products and technologies serve more than three billion people in 170 countries and regions. In 2007, Huawei established a local subsidiary in Brazzaville. Today, Huawei has grown into one of the leading ICT enterprises in Republic of the Congo, covering both carrier and enterprise businesses. Huawei owns dozens of employees, directly and indirectly created more than 300 local jobs, served three million local people through carrier and enterprise network services, and cooperated with multiple colleges and universities in education and science and technology.
ICT is profoundly changing the world and people’s lives. The “Digital Economy” has become a new model for economic development in the future. ICT has become a huge driving force for national modernization, social progress, and economic development. For example, according to EU statistics, ICT contributes 25 percent of its economic growth rate. In China, a 10 percent increase in broadband access will boost GDP growth by 2.5 percent, while in Africa, GDP growth will reach seven percent.) Broadband and Internet have become the “necessary” of every family and the basic rights of everyone just like water, electricity and gas. “Broadband for All” has also become a “universal service” provided by every Government to its people.
Currently, Huawei has established good cooperation relationships with state enterprises and institutions such as Congo Telecom, MTN, and Airtel, SNE, SNPC, BSCA Bank, and Ministry of Posts and Telecommunications. Huawei successively undertook the construction of the Central Africa Fiber Backbone Network (CABCongo), the Phase I and Phase II PCN project, the first modular bank data center (BSCA Bank), and the power company campus network project.
As a leader in the world’s ICT industry, Huawei has become an important participant, partner, and contributor to the economic and social development of Republic of the Congo. Huawei hopes and is very willing to act as the ICT industry strategic advisor and partner of the government to actively participate in the research, planning, and formulation of its “National Digital Economy Development Strategy”, and jointly promote the construction of its “Digital Economy”.
At the same time, Huawei actively fulfills its corporate social responsibilities and continuously promotes know-how transfer and local talent development. Huawei has trained nearly 500 technical talent for Republic of the Congo through these projects. In particular, Huawei has launched the “Seeds for the Future” talent development programme in Republic of the Congo since 2017. It has cultivated nearly 50 Congolese ICT undergraduates to get close to the world’s cutting-edge innovative technologies and applications like Cloud, 5G, and Big Data etc. Since the outbreak of the epidemic in 2020, Huawei has donated medical materials to institutions at all levels in batches to jointly fight the epidemic.
Due to the epidemic and changes in the international situation, traditional economic development has been challenged to a certain extent. However, the rapid development of the ICT industry will surely inject new vitality into the economic revitalisation of Republic of the Congo and lay a solid foundation for the development and construction of the digital economy. Huawei is willing to share global experience with the government and industry partners, provide the best innovative technology, financing scheme and talent training plan, and help Republic of the Congo to realise the transformation and upgrading of “Digital Economy” in the fields of national broadband, E-government, national data center and E-business.
www.huawei.com
MTN CONGO TECHNOLOGY
“ W E A R E A S I G N I F I C A N T A N D D E D I C AT E D CO N T R I B U TO R TO T H E D E V E LO P M E N T O F C O N G O I N T E R M S O F E M P L O Y M E N T, T H E E N V I R O N M E N T, A N D T H E E C O N O M Y ” – AY H A M M O U S S A , C E O , M T N C O N G O
the world. To realise its targets, Project Zero was launched in 2019 to leverage the latest technologies and service partners to enable business sustainability via greater energy efficiencies, low carbon emissions, risk reduction and cost control. The programme prioritises renewable solutions, efficient emerging technologies and energy storage. “The goal of Project Zero is to reduce CO2 emissions across all operators within the group. MTN Congo is thoroughly working with partners and has put solid plans in place to convert our power sources to total green energy in the coming few years,” shares Moussa. MTN Congo showcased two projects in 2021, the first of which was 168 | Africa Outlook issue 95
a cleaning project against pollution on GSM (Global System for Mobile Communications) sites undertaken quarterly in Brazzaville, Pointe-Noire and the Congolese hinterland. A system to monitor all MTN Congo facilities was implemented by the company to comply with reports, inspections and controls carried out in partnership with the Ministry of Tourism and Environment. Field trips were also organised to assess their condition, raise awareness among internal management stakeholders, and ensure that they maintain sites accordingly. “Through this project, MTN Congo aligns with the UN’s Sustainable Development Goal (UN SDG) 12 for responsible consumption and
production. It aims to promote environmentally friendly production, reduce waste, and stimulate recycling in partnership with technical partners in charge of maintaining all installations,” Moussa highlights. The second project showcased by the company in the past year concerned energy efficiency and carbon footprint reduction, focused on rural areas of northern and southern Congo. “We primarily tackled critical backbone and hub infrastructure, both of which have naturally higher energy demands than regular sites. They play a crucial role in bridging the digital divide by providing rural communities with access to vital communication and essential economic services such as mobile money, e-commerce, and social media,” notes Moussa. “Installing diesel generators increases carbon emissions and pollution in these remote communities, hence the urgent need to transition to a green and sustainable energy source.” To install innovative, renewable
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MTN CONGO TECHNOLOGY
Notion Shanghai Notion Information Technology CO., Ltd is a leading broadband terminal solutions provider and Internet of Things solutions, which is keen on establishing cooperative relationships with the operators and the clients of first-class brands at home and abroad. We provide services to ISP, MVNO in Europe, South&North America, South&East Asia, Africa. Notion Products include wireless broadband terminals 4G Mi-Fi, Dongle, NB-IoT modules, NB-IoT water-gas meter solutions. Notion has self-developed remote equipment management named TR069 acs circuit. Our aim is to make life better as we take clients as our priority.
www.notioni.com
and clean energy solutions in rural communities without compromising on quality and reliability, MTN Congo is investing to upgrade sites with new batteries, solar and hybrid energy technologies, which will allow these rural hub sites to generate fewer carbon emissions. The addition of nine solar-powered MTN Congo sites, an increase of 41 percent, will support MTN Group’s global ambitions to be carbon neutral by 2040.
PAPERLESS JOURNEY When it comes to sustainability, paper consumption has always been a challenge for large organisations. Workplaces have historically relied heavily on paper, however early in 2020, MTN Congo embarked on a paperless journey with three main KPIs in mind: sustainability, risk reduction, and business efficiency. “Our target is to eliminate printing papers from our offices, 170 | Africa Outlook issue 95
while adopting state-of-the-art technologies to digitally engage our employees, business partners and customers, eliminating the need to submit documents to us,” Moussa says. Set to complete its paperless transformation by the end of 2024, MTN Congo began by implementing technology to optimise document sharing and collaboration, enhanced by digital signatures to minimise the need to print paper for the sake of signing forms. The company’s next goal is to provide an enterprise-wide governance model for storing and securing this information, to be used in automated processes where MTN Congo can benefit from modern technologies such as AI and robotics. “This paperless journey requires a lot of change in terms of culture and the way we do business, but it also opens up a lot of opportunities. “We will continue to address them by
PQ International Congo Thanks to MTN Congo for your support and help to our company, let us work together to create a better future. Thanks to Africa Outlook Magazine, a platform for people to know African companies, especially MTN Congo and its partners in the process of modernizing the network, we hope Africa Outlook will become better and better...
MTN CONGO TECHNOLOGY
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SADA Motors SADA MOTORS CONGO is a Congolese company created in June 2020. The company was created by a Congolese in a context of crisis health and economic acute. Subsidiary of SADA HOLDING, Le Group is present in Kinshasa (DRC), Gabon, Congo Brazzaville and Ivory Coast. SADA MOTORS CONGO offers several brands: Ford, BWM, Mitsubishi, Hyundai, Renault, etc. At the inauguration of the new showroom in Pointe-Noire, the company presented the new department of SMC: SADA leasing. This department is responsible for offering vehicles at a lower cost to society and individuals. The objective is to see our fellow citizens acquire new vehicles that are less polluting.
www.sada-motors.com
“ W E P L AC E A ST R O N G E M P H AS I S O N U N S D G 4 , F O C U S E D O N Q U A L I T Y E D U C AT I O N T O E N A B L E U P WA R D S O C I O - E C O N O M I C M O B I L I T Y, E S C A P E P O V E R T Y, A N D P R O M O T E S C H O O L E N R O L M E N T R AT E S AT A L L L E V E L S , P A R T I C U L A R LY F O R G I R L S ” – AY H A M M O U S S A , C E O , M T N C O N G O
providing the right tools and creating awareness about the importance of this journey for our business and, more importantly, for the environment.” Aware of its social responsibility, the MTN Congo Foundation was created in 2007, which has given rise to many social projects in areas including health, education, sport and community development. For instance, MTN Congo has implemented projects such as Yellow Line, an HIV and STD information 172 | Africa Outlook issue 95
line supported by French nonprofit organisation, Sidaction, and contributed to the acquisition of mobile HIV testing units. To promote youth empowerment and entrepreneurship, meanwhile, MTN Congo has also trained a number of young Congolese women in the likes of office automation and computer graphics. “Our objective was not only to promote female youth empowerment, but also to reduce the skills gap and offer the same employment opportunities to both
women and men,” affirms Moussa. “Through this project, the MTN Congo Foundation successfully contributed towards UN SDG 8 focused on sustained and inclusive economic growth that can spur progress, create decent jobs for all and improve living standards, especially in the wake of COVID-19.” The same goes for Y’ello Startup, an incubation programme launched to help young Congolese entrepreneurs design and deploy innovative digital solutions that have a material socioeconomic impact. In 2019, during MTN Group’s annual employee volunteerism programme, 21 Days of Y’ello Care, MTN Congo even set up a business incubator together with the Pointe-Noire Chamber of Commerce. This was intended to host innovative start-ups in different sectors and provide private offices, open spaces, and coaching.
MTN CONGO TECHNOLOGY
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MTN CONGO TECHNOLOGY
SCHOOL CONNECTIVITY Through an ambitious school connectivity drive first launched in 2009, MTN Congo has installed libraries and connected rooms in Brazzaville, PointeNoire and the hinterland, with a further two launched in the past year. MTN Congo continues to develop and support education in the country, and position ICTs at the heart of primary and secondary education as a training and development tool. The focus is also to significantly reduce the digital divide in schools, and ensure that connectivity and new technologies are available for communities while promoting training and investing in human capital. “We place a strong emphasis on UN SDG 4, focused on quality education to enable upward socio-economic mobility, escape poverty, and promote school enrolment rates at all levels, particularly for girls,” Moussa outlines.
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Further contributing to the progress of UN SDG 4 is the Y’ello Back to School project, aimed at encouraging employees in the cities of Brazzaville and Pointe-Noire to donate school bags to help children in need to resume education at the beginning of the 2021-22 school year. MTN Congo Foundation was able to offer bags complete with important school materials such as pens, pencils and notebooks, an impactful initiative to increase the rate of children
attending school, especially in the difficult COVID-19 climate. The pandemic has also accelerated MTN Congo’s community commitment through the Home School project, which came into being at the onset of COVID-19. Through this initiative, the company prioritised bridging the digital divide and improving the Congolese education system through the digitalisation of teaching and the integration of products and services into the Ayoba app.
“ W E W I L L L E A P F O R WA R D S I N T E R M S O F C U S T O M E R S E R V I C E A N D S AT I S FA C T I O N , A N D I N A D D I T I O N T O S U S TA I N I N G T H E G R OW T H A N D R E AC H O F O U R S E RV I C E S , W E H AV E S TA R T E D M U LT I P L E P R O G R A M M E S R E L AT E D T O D I G I TA L T R A N S F O R M AT I O N . . . ” – AY H A M M O U S S A , C E O , M T N C O N G O
MTN CONGO TECHNOLOGY
TAKING THE LEAP For Moussa, “diversification” best describes MTN Congo’s ambitions for the year ahead. “This is the year where we take a giant leap; this is what my team is determined to do,” he states proudly. MTN Congo’s strategic plans revolve around accelerated growth, through superior customer experience and second-to-none networks. Digital and financial inclusion are imperative, driven by MTN Ayoba as a one-stop-shop for customers and the opening of MoMo APIs. As well as utilising the latest AI technologies to ensure better decision making, the company plans to enable environmental and socioeconomic progress in Congo through MTN Group’s We’re Good Together initiative, with a focus on human resources as its most valuable asset. “We will leap forwards in terms of customer service and satisfaction, and in addition to sustaining the
growth and reach of our services, we have started multiple programmes related to digital transformation, digital development, data-driven organisations, and offering platforms at scale,” Moussa reveals. Collectively, all these initiatives, supported by the introduction of the latest technologies and working models, will fuse into the successful transformation and conversion of MTN Congo from a telecoms service provider to a technology and digital service provider at scale. “This transformation is not something easy to tackle; many operators have failed to make it work. That is why we are carefully drawing our path, and getting the best-qualified expertise to help us triumph.”
Tel: +242 06 966 1100 www.mtn.cg Africa Outlook issue 95 | 175
FIBRE OPTIC
AC R O S S T H E WAT E R
Madagascar has great potential for broadband development. We speak to executive members at Blueline, and discuss the company’s significant fibre optic cable project that will facilitate internet connection across the country Writer: Marcus Kääpä Project Manager: Josh Hyland
176 | Africa Outlook issue 95
BLUELINE TECHNOLOGY
M
adagascar is home to around 25 million people. Separated from the mainland continent by the Mozambique Channel, the island nation also boasts a unique environment and iconic wildlife, of which towering baobab trees and lemurs spring to mind.
However, this stretch of water can sometimes buffer Madagascar’s progress when it comes to developing infrastructure and integrating technological networks that are far more common across the rest of Africa. “Despite the number of inhabitants, less than five percent of Malagasy households are connected to broadband,” begins Mohib Pirbay, founder and Chairman of Blueline, the
telecommunications and service provider based in Antananarivo, Madagascar. “However, there is also enormous potential for broadband development to catch up with the pan-African average and increase broadband penetration to around 40 percent.” One obstacle that stands in the way of Blueline is the current higher prices for broadband internet subscriptions (around 60 USD), which exceed that of the country’s minimum wage, therefore making broadband connectivity inaccessible for the majority of Malagasy people.
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BLUELINE TECHNOLOGY
“We have the ambition to change this state of affairs through our ongoing achievements and our plans for the coming years,” Pirbay says. “Our vision is to make information technologies, including the internet, videoconferencing, online streaming services and digital education, accessible to the majority of households and companies in the country to help them develop, grow and open themselves up to the global community and international markets.”
EXECUTIVE ROOTS After beginning his career in the oil industry and starting various manufacturing companies that continue to operate to this day, Mohib Pirbay founded Blueline in 1996. The growth of the company gained momentum after obtaining a telecom operator license in 2000, which led to the expansion of the team with the arrival of Damien de Lamberterie in the following years. Lamberterie started his career in France in the deployment of telecom networks amid the expansion of global systems for mobile communication (GSM), then in various other countries in Europe before joining Blueline as General Manager. The adventure was so enthralling he decided to make it a permanent move.
BLUELINE Blueline (www.blueline.mg) offers individuals and companies internet, TV and voice services throughout Madagascar. For large accounts, Blueline provides tailor-made services of international broadband access, international private links and voice over internet protocol (VoIP) solutions. Blueline supplies its managed services to companies (www.bluelinebusiness.mg) to support them with their IT development, whether this is outsourcing, auditing and consulting, IT security, or tailor-made solutions regarding WiFi, mail, online hosting or digital calling software. “We constantly seek to provide the best of the most accessible services possible for the Malagasy people,” Pirbay continues. “Blueline was the first operator to democratise highspeed internet access at home and to offer TV content for Malagasy households when there was only one very expensive satellite TV option on offer. “On the business side, we stand out across the country for offering the best value for money, with customer service recognised for its professionalism. We are offering a complete range of services (Blueline Business Services) to support our customers in the management of their networks and in their development.” From now on, Blueline will offer in addition to its broadband wireless network, the first alternative fibre optic offer in order to provide even more content while maintaining a high quality of service. With more than 40,000 customers, Blueline is made up of 400 employees spread over Madagascar’s main cities, able to help customers out all over the country at short notice.
Ribbon Communications Ushering the Multi-Terabit Era in Madagascar Ribbon Communications partner with Blueline for their Coherent Backbone in Madagascar High-speed connectivity is a requirement today, a necessary foundation to development and achieving economic objectives, and the pandemic has only highlighted this necessity. While achieving consistently available broadband service at speeds in the hundreds of gigabits or even terabits per second has been difficult to attain in many parts of the world, Ribbon is proud to support the Blueline Group and its subsidiary Gulfsat to help deliver a comprehensive solution in Madagascar. As a part of its state-of-the-art DWDM (Dense Wave Division Multiplexing) optical and OTN (Optical Transport Network) solutions, Ribbon is providing Blueline with multi-terabit capacity via its programmable Apollo optical systems. Since Blueline operates in areas where power outages occur with some frequency, Ribbon is also providing 36 hour backup capabilities on this advanced backbone, and dust-proof and environment controlled cabinets to significantly enhance reliability. “It’s been an honour to partner with Blueline on this very special project,” said Lior Tourgeman, Ribbon’s VP of Sales, Africa. “We were able to deliver a solution that provides them with multi-terabit connectivity, superior cost efficiencies and high reliability. We were able to overcome multiple challenges to deliver a customized, turnkey solution that is adapted to Blueline’s specific needs and look forward to further growing the relationship.”
HELPING MADAGASCAR THRIVE Mohib Pirbay
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One of the most significant projects that Blueline is currently undertaking is the first phase of development for a
rbbn.com
BLUELINE TECHNOLOGY
400 kilometre fibre optic cable valued at $12 million, that will immediately be put into service. “The cable will have the capacity of 115 terabits a second, which will address the country’s growing consumer demands,” explains Damien de Lamberterie, General Manager of Blueline. “This investment represents the promise that Blueline will continue to meet and exceed the demands of its client base today, tomorrow, and for years to come. “From a technical standpoint, fibre optic connectivity remarkably increases our capacity to move data while ensuring greater reliability of our services. Our client base is growing, and with it, so does its consumption of online content. The explosive popularity of video streaming, online gaming platforms, e-education, the ability to work from home and more, have
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put greater demands on bandwidth capacity that can be adequately met with fibre optic throughput.” According to Lamberterie, since this cable is open to all operators, it will also lower the cost of internet access for the general Malagasy public by enabling all the existing access networks. The companies on the Blueline network will additionally benefit from heightened security and reliability as the fibre optic connectivity will serve as a parallel to Blueline’s existing infrastructure, ensuring appropriate recourse in case of outages. “This security of reliability in particular will be fundamental for all companies, especially those that cannot allow interrupted service,” Lamberterie continues. “The increased capacity available has the potential to create thousands of jobs in the growing business process
outsourcing (BPO) sector and other services based on connectivity such as disruptive financial services and online education. “Completing this deployment on time in spite of the pandemic and its disturbances presented a significant challenge for our contractors and our technical teams, whose amazing efforts and hard work deserve to be recognised and have a special mention here.”
INTERNATIONAL COLLABORATION As a service provider, Blueline’s partners and suppliers are essential for the proper facilitation of company services and the satisfaction of its customers, and Blueline pays particular attention to its aftersales customer service with a team available to help 24/7.
Technical training day at Blueline
“THIS INVESTMENT REPRESENTS THE P R O M I S E T H AT B L U E L I N E W I L L C O N T I N U E TO M E E T A N D E XC E E D T H E D E M A N D S O F I TS C L I E N T B A S E T O D AY, T O M O R R O W, A N D F O R Y E A R S TO CO M E ” – DA M I E N D E L A M B E R T E R I E , G E N E R A L M A N AG E R , B LU E L I N E
“For this fibre optic project, we called on partners of international renown in the supply and deployment of such systems, including Nexans and Sogetrel, two French companies operating in the telecoms and fibre optic space, and Israeli company Ribbon Communications, to name a few,” Pirbay tells us. “We made the resolute decision to install the cable in order to guarantee our clients the best service available. It’s a complex challenge given the topology of the land, but our partners have done a remarkable job. When it comes to wireless, we have also been working with strategic partners such as Huawei (China), Radwin (Israel) or Ceragon (Israel) for over 10 years. We selected these suppliers mainly on the dependability of their solutions in a
complex climatic and energy context.”
MOVING FORWARD For the rest of 2022, Blueline’s primary objective is to prioritise the new fibre optic cable to ensure that it can offer the Malagasy people new, faster and more accessible services. “The stakes are high and we must live up to expectations,” concludes Lamberterie. “Furthermore, we are already working with other operators to allow fair and non-discriminatory access to this national asset. We are therefore aiming for strong growth in 2022 and feel confident in our capacity to achieve it. “Our next objective is to prepare the survey of the groundwork for the second fibre optic cable, which will connect Antananarivo and Majunga
to the rest of the globe. This is another project scheduled for 2023 that will represent a new investment of USD $20 million.” For Blueline, 2022 is a crucial step in company development. Given the stakes, the development potential remains significant, and it is a formidable challenge for Blueline and its teams. Therefore, Blueline will need to recruit new talent and train these employees in order for the company to create what will be the internet of tomorrow in Madagascar.
Tel: +261 20 23 320 10 contact@blueline-business.mg www.blueline.mg Africa Outlook issue 95 | 181
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Linked to multiple African regions, Mozambique is situated in a strategic location for shipping. Justin Jahme, Director of Transcom Sharaf, discusses the company connecting East and Southern Africa via water access ways, and the innovation required to keep freight moving forward Writer: Marcus Kääpä | Project Manager: Cameron Lawrence
TRANSCOM SHARAF SUPPLY CHAIN
ONNECTING THE CARGO CORRIDOR
M
ozambique is known for many things; myriad wildlife, a rich culture and heritage, and beautiful stretches of white beaches that look out over the Mozambique Channel, the swathe of sea that separates the country from its island
neighbour Madagascar. With such strategic access to Madagascar, the Southern African coast, the Indian Ocean beyond and a network of inland African waterways, it comes as no surprise that Mozambique is home to a large
freight shipping and logistics sector, one that acts as a gateway to East and Southern Africa. “There is a constant buzz and energy in the space to be sure,” introduces Justin Jahme, Director of Transcom Sharaf (Transcom), one of Africa Outlook issue 95 | 183
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AT A GLANCE TRANSCOM LOCATIONS AND SERVICES Transcom has offices in Beira and Tete in Mozambique, Lilongwe in Malawi, Johannesburg and Durban in South Africa, and Harare in Zimbabwe, which are each managed by experienced personnel. The Beira facility is an approved collateral management centre for various commodities such as tobacco, minerals, agricultural products and fertilisers, offering its clients a door-to-door logistics service, paying special attention to detail and always ensuring the highest levels of confidentiality and security. Transcom has long-standing and mutually beneficial arrangements with over 50 transporters in the Southern African region that allow the company to provide the best solutions for each corridor and satisfy a varied portfolio of commodities. Many of these transporters have supported Transcom and vice versa for many years, and for the company, these relationships are crucial to operating effectively in the sector. Transcom list of services: • Bulk Vessel Handling • Collateral Management • Container Handling • Customs Clearance • Fumigation • Ocean Freight
the leading players of the shipping industry in Mozambique. “It is a busy and extremely positive sector to be working in, and new projects, developments and the economic environment are improving in leaps and bounds year by year.” Transcom is a specialised freight forwarding and logistics service company which operates in Mozambique and the Southern African region, providing fast, secure, and reliable shipping, clearance, transport and warehousing services to cater to all of its customers’ logistics requirements, while supporting services with a drive towards global competitiveness and sustainability. “In the logistics sector there has been exponential growth in both exports and imports, with Beira Port, based in Mozambique, servicing not only the country, but also Zimbabwe, Zambia, Malawi and the Democratic Republic of Congo (DRC),” Jahme continues. “This can be attributed to the port improvements made by the port authority, Cornelder, but also the Beira corridor (one of Southern Africa’s main transport routes) initiatives supported by government that include the road improvements. “Since the start of the COVID-19 pandemic, and with the resulting border and country restrictions to South Africa, Beira Port saw a 40 percent increase in cargo volumes. This swing of new customers away from their traditional South African routes allowed suppliers to try the Beira corridor, and most have been impressed by the cost savings, improved efficiencies, and improved service offerings.”
PM Civil Limitada WHO? PM Civil Limitada moved to Mozambique in 2012. Trading in South Africa as Praysa Civils (Pty)Ltd for many years prior to this. In Beira, PM Civil focuses on the Port of Beira as there is a large portion still to be developed. We have an office in the port to facilitate easier operations within the area. Most of the machines and equipment used in the port as well as consumable stock are kept at this site. WHAT? We specialise in soil stabilisation and earthworks, subsoil drainage, platform construction, borehole identification and testing, water purification and reticulation plants, fire water systems and steel structure development. We have a soil laboratory for testing soils and concretes to ensure the best soil stabilisation possible and required concrete and preparation mixes. In the context of the port we can offer any complete project initiation. Our surveying department uses state of the art equipment and software to produce all our own drawings and plans. With drone operated cameras with GPS positioning we can produce the most economical and feasible plans for your project. HOW? With a Health & Safety Officer present on the site at all times, our accident and injury rate is well contained. All staff are issued the correct PPE as required for the task at hand. Equipment undergoes regular maintenance to be as efficient as possible allowing us to complete projects timeously.
• Port Handling • Rail services
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• Road Freight
Transcom is part of the Dubai-based Sharaf Group, one of the biggest privately owned companies in the UAE, with global offices allowing the business to offer its clients international logistics solutions efficiently and affordably.
• Stuffing and De-Stuffing • Transit Clearance • Warehousing and Storage
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www.pmcivil.com
• Specialist Concrete Works • Civil Construction • Soil Stabilization • Turnkey Warehousing
Beira, Mozambique hentie@pmcivil.com • nico@pmcivil.com www.pmcivil.com
TRANSCOM SHARAF SUPPLY CHAIN
AFRICA OUTLOOK: CAN YOU TELL US ABOUT TRANSCOM’S SUPPLIERS AND THE CRITICAL ROLE THEY PLAY? JUSTIN JAHME, DIRECTOR: “Our suppliers are an integral part of our development and day to day operations. As much as we are constantly trying to find a competitive advantage, it is important that our suppliers are aligned. “Companies like PM Civils are continuously developing new techniques and cost-effective solutions to carry out our civil works. As Beira has typical coastal conditions, PM Civils has utilised cutting edge techniques from countries like Israel and further afar to stabilise our ground for further development. “Up to 90 percent of our development costs are ground stabilisations and specifically engineered layered works. Mels Contruction is always looking for better ways to build our warehouses and infrastructure and has extensive knowledge in what the environment requires. They work very closely with our engineers to ensure the best result. “Innovate IT Africa is always on the cutting edge of IT developments and options to speed up and improve our communications and daily operations. As much as we try to procure our inputs locally when you are using advanced technology often it simply is not available. “Companies like Novasol are able to procure for us internationally and supply us via South Africa both by road and air and always look for cost effective but quality solutions. ECO2 is a critical supplier and their services and developments are an integral part of our recent success. As businesses we will continue to grow and expand together. “It is only possible to be where we are by working so closely with our key suppliers that they understand our internal culture and go out of their way to ensure we get the best support.”
Transcom commenced operations in Lilongwe, Malawi in July 2003. Since its inception, it has grown from a transporting company to one of the more dynamic freight forwarders in the region, providing total logistics solutions to its customers with its own resources and infrastructure that have been developed and designed with its clients needs and cargo requirements in mind throughout every phase of growth. “Our CEO’s vision was always to facilitate tobacco exports through Beira which is strategically situated much closer than the traditional Durban (South Africa) route,” Jahme tells us. “Initially, even trucks were not readily available in large enough quantities to support this, hence
we invested in around 350 trucks to facilitate these movements. “As Mozambique developed and further investment flooded into the country following the end of the long civil war, more transporters started up. This allowed us to move out of the transport space and focus more on our core business of freight forwarding. However, the experiences gained through running our own transport fleet is still invaluable and give us a competitive edge in the sector.” In Beira alone, the company has 280 employees and over 300 throughout the region. Transcom prides itself on creating a family orientated environment where employees can thrive and has managed to cultivate
an experienced team of service focused individuals who all work together to satisfy customer needs. “Our staff are our greatest asset, and this translates to a multicultural, positive, passionate, driven and competitive staff compliment,” Jahme says proudly. “We have a very high comparative staff retention rate which means we have a wealth of experienced employees who are constantly improving and thriving in a favourable work environment. Dedicated personnel per client provide a personal touch where we strive to build long term and lasting relationships. “We are a proud company with a family-like work environment. We are always excited to look for the best solution to any challenges our customers may need solutions to. Our close proximity to the port and our healthy relationship with the port authority and shipping lines allow us a lot more flexibility than other companies. We are continuously looking for ways to improve and having the right people in place and to manage the business is critical to this.” Africa Outlook issue 95 | 187
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INDUSTRY RECOGNITION This dedication towards clients and employees alike has manifested in Transcom being voted and awarded the position of Best Container Freight Forwarder of the Year for Beira in 2021, awarded by the aforementioned port authority Cornelder. “2021 was the first time Cornelder presented these awards. We are very proud to have been successful and hope to retain this title for the years to come,” Jahme tells us. “It is extremely gratifying to be recognised for all the hard work, and most importantly to see how much it means to the whole Transcom team. “It is also a great reminder that in order to retain it, we need to continue being as dynamic and creative every day and always put our clients’ needs first. Without the support of our clients, we would never have achieved the volumes to be a contender for the award. I personally believe that again it is our employees and the relationships they have created with our client base that allow us to be successful.” According to Jahme, this client
support has allowed Transcom to invest in the best infrastructure and show continuous improvement, and the company’s satellite offices are a further reason for the swift communication and smooth transition of its customers’ goods. “There is a confidence in every one of our investments and developments that these tools will allow our staff to further improve our service delivery efficiently,” Jahme continues. “We have also invested in a strong IT backbone to ensure multiple forms of communication are always available and we are not restricted by Africa’s relatively weak communication infrastructure. “We are fortunate to have Innovate IT Africa, the best IT contractor in the region, working with us to constantly provide the best solutions. This allows time for planning and co-ordination in a controlled and organised fashion. Our long-term relationships with our transporters and the other critical entities such as port authorities also allow for smoother operations, and these are based on trust-based relationships built over many years.
Cornelder Digital Innovation at the Port of Beira COVID-19 changed the world and forced businesses to reinvent themselves to remain relevant in the global economy. At Cornelder de Moçambique, prior to 2020 many of our internal and external worklows required physical paperwork and direct interaction with people. In February 2020, with the global lockdowns due to the COVID-19 pandemic, we made the radical decision to digitalize all our interaction with our customers. But doing this when our usual international system suppliers could not travel forced us to look for local solutions. We assembled an internal team of Mozambican software developers that within 2 months developed, tested and deployed an online customer portal that enables our customers to deal with all payments, documentation and service requests without setting foot in our offices. This system, named the Cornelder Document Management System, has now been working flawlessly for nearly 2 years with over 400 customers and having processed the administration of over 10 million tons of cargo. As the end of the pandemic nears, we have learned valuable lessons, including that the development team must keep working on introducing new systems to aid our operations— including the development of an OCR system to automate the registration of cargo upon arrival in the Port, and others to help address some of the local challenges faced at our port and region.
www.cornelder.co.mz
188 | Africa Outlook issue 95
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Mel’s Construction Lda MEL’s CONSTRUCTION, owns a large variety of Plant and Equipment, including heavy-duty machinery and is therefore internally equipped to perform any type of services which include the following, but are not limited to:
“ O U R S TA F F A R E O U R G R E AT E S T A S S E T, A N D T H I S T R A N S L AT E S T O A M U LT I C U LT U R A L , P O S I T I V E , P A S S I O N AT E , D R I V E N A N D C O M P E T I T I V E S TA F F C O M P L I M E N T ” – J U ST I N JA H M E , D I R E C TO R , T R A N S CO M S H A R A F
“This trust allows us greater flexibility than many other operators in the region.” On top of this, it is Transcom’s unique management structure that allows company decisions to be made instantly. For Jahme, this is an extremely important factor within the region as numerous levels of corporate approval lead to slow decision making and poor flexibility, that can cause delays and unnecessary costs at the expense of clients. Transcom’s trust in its management structure filters out these issues and allows independence, responsibility and accountability when it comes to forwarding operations.
HISTORY IN BEIRA Transcom was the first company to have tobacco standard warehousing in Beira. The first company facility was purchased in 2005 and following this, due to increased demand, a new site was purchased in 2008, from which Transcom has grown substantially over the last 14 years. 190 | Africa Outlook issue 95
“This facility started with a 15,000 metre-squared (m2) area of warehousing on an 84,000m2 footprint and is now the biggest privately owned single site in Beira, with 126,000m2 of handling area and 35,000m2 of warehousing in total,” Jahme explains. “We have recently purchased another 165,000m2 of adjacent land for further development. “Beira is our head office, and this shows the confidence we have that the Beira corridor is the most important port for the flow of goods in and out of the hinterlands of Malawi, Zimbabwe and Zambia. The facility is state of the art and has been developed initially to exceed the requirements of high value and more sensitive commodities such as tobacco. We have taken the view that in order to provide the best platform for our staff to provide the best services we have to back it with infrastructure that lends the best confidence.”
• Excavation and bulk Earthworks • Foundations and building of onshore facilities such as storage warehousing, residential and commercial buildings, workshops, sheds, road works, paving, and steel structures. • Erection and installation of structural steel buildings and warehouses. • Civil planning, designing, supervising construction and maintenance • Roofing, Refrigeration, Ablutions and Air conditioning for buildings MEL’s Construction executed these services on a broad range of heavy civil, infrastructure, earthworks and multi-disciplinary contracts for both public and private clients, operating in Mozambique. Our multi-skilled workforce allows flexibility in the selection of contracts and an ability to easily adjust to the changing needs of the markets highlighted by the Company motto.
Wynand Senekal - MD +258 826 394 852
We at MEL’s CONSTRUCTION, LIMITADA a registered Mozambican construction entity with a Class 5 License (nr. 241/2010), rely on the demand for engineered construction services with a focus on all round Civils and Warehousing projects. Specializing in various storage and handling warehouses such as Tobacco, Fertilizer, Sugar, and multi-purpose cargo. With over 20 years of construction experience, we align as a single team, our workforce, and collective skills to provide our local and
Wynand Senekal - Managing Director Avenida Centro Comercial n˚150 - 1˚andar Macuti, Beira, Mozambique
Mobile: +258 826394852 Mobile: +258 846045834
international clients with the highest and reliable standards for safety, quality and integrity in construction. Our Company and Team have proven their dedication to excellence through utilising innovative building methodologies, maintenance, and renovation skills to change and improve the way projects are designed, managed and build, emphasised by the Management Team’s 45 years of collective experience and a dynamic board of directors.
TRANSCOM SHARAF SUPPLY CHAIN
HIGH QUALITY SYSTEMS Transcom’s high standard of systems, processes, fire systems, security, capacity, flexibility and infrastructure mean that lower value commodities that are shipped indirectly gain such benefits without the additional costs that would be associated if such benefits were added on. “The majority of commodities imported and exported through the corridor can be split into two main groups: minerals and agricultural commodities,” Jahme elaborates. “Most are low value, high volume
goods. It would be difficult to invest at our level with only these goods in the portfolio, however our core business of tobacco shipping has assisted in these improvements. Off the back of this we then facilitate our export clients with their import needs. For mining this may be project cargo, machinery or other raw materials for processing, but for our agricultural clients, it may be fertiliser, chemicals or packaging. “These additional systems then lend confidence to our clients. For example, our auto upload photo
Novasol Africa Historically, Novasol Africa has its roots in a family-owned business that started operating in 1986. With expertise in builders’ hardware, timber and board products, it focused on the Botswana market. In 2005, Mozambique, with low levels of competition and a number new well-funded agri-business projects at the early stages of development was an attractive option. The limited local availability of materials and equipment to support this development, provided the opportunity for our Johannesburg based operation to service this market. We are now one of the larger procurement and logistics support businesses to the region.
www.novasol.co.za
system files photographs of our clients’ cargo into date folders, allowing us to respond to queries or potential claims in under 15 minutes with photographic evidence. On average you can expect a minimum of 35 photos per load throughout the handling process. Our processes are all documented with strict standard operating procedures (SOPs) per client, end customer and commodity. This ensures that through our shared regional server system, all origins have the correct information available at their fingertips. It is important to mention though, again, that the best systems in the world still require an excellent team of personnel to operate them and continuously improve on them.”
PROFESSIONAL MINDSET Another place of pride that Transcom holds dear is that of its hygiene policies and the importance of this to the company’s image, as well as 192 | Africa Outlook issue 95
TRANSCOM SHARAF SUPPLY CHAIN
PROCUREMENT & MATERIALS SOURCING EXPORT LOAD CONSOLIDATION LOGISTICS SUPPORT
Novasol Africa is a Johannesburg based export procurement and logistics support business to the Southern Africa Region; offering agri-businesses, mines, engineering, electrical and building contractors a one-stop source of materials, equipment, spares, packaging and more. We are proud to have been a supplier to Transcom Sharaf (or its affiliates) for over 10 years.
Office: +27 11 663 4600 | buying@novasol.co.za | John Lunderstedt: +27 82 651 3193 | john@novasol.co.za | www.novasol.co.za
Providing world class Information Technology, Risk and Security Solutions across Mozambique
Information Technology Services
EcO2 Mozambique provides services in pest control, its main focus being the Tobacco Beetle, for which it offers 2 specific treatment methods, controlled atmosphere (CA), phosphine fumigation monitoring by wireless sensors. So far, all CA treatment results have been 100% positive and we feel that this will be the future when the market is ready. We have also achieved great results in phosphine fumigation, with wireless sensor monitoring.
EcO2 Mozambique, Lda
Estrada Nacional 6 Manga – Beira, Moçambique
T: +258 23 304445/6 E: ojorge@eco2moz.biz
IT Support Managed Services It Consultancy Cloud Services
Cabling Solutions Wireless Networks VOIP / Telephony
Risk Management and Security Services
Access Control - Biometric Readers, Boom Gates & Turnstiles Fire Detection, Suppression, Safety and Evacuation Systems Time & Attendance and Time Management Video Surveillance Management Software Perimeter Intrusion Detection Systems (PIDS) Weighbridge and Security Solutions Closed Circuit Television (CCTV) Innovate IT offers a wide range of solutions that enable our customers to focus on their core business while we worry about their technology related needs. We work closely with our clients so that we fully understand their business strategies and objectives and implement systems that support these goals.
CONTACT: T +258 840 654 527 | +258 23 327 142 E info@innovateit.co.mz www.innovateit.co.mz BRANCH LOCATION: SOFALA: Rua da Madeira Nr 167 Ground Floor, Maquinino Beira, Sofala, Mozambique
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accordingly and cost effectively but that quality inputs are guaranteed. Companies like MELS Construction and PM Civils give us the confidence that what we build is the best of the best.” It is an integral part of Transcom’s nature to consistently encourage its current and prospective clients to visit the company in person, which is increasingly possible again as global COVID-19 measures ease. “It is these visits that allow our clients to fully appreciate how we define ourselves differently to our competition,” Jahme adds.
“THERE IS A CONFIDENCE IN EVERY ONE OF OUR INVESTMENTS AND DEVELOPMENTS T H AT T H E S E T O O L S W I L L A L L O W O U R S TA F F T O F U R T H E R I M P R O V E O U R S E R V I C E D E L I V E R Y E F F I C I E N T LY ” – J U ST I N JA H M E , D I R E C TO R , T R A N S CO M S H A R A F
the positive energy that is instilled in all of its employees from the top down. Transcom maintains extremely high standards in this regard, and according to Jahme, creates an oasis of professionalism for the company among its industry competition and a lasting positive impact on its clients. “We designed and built our most recent tobacco warehouse by starting with a single 200 kilogramme (kg), C48 tobacco carton,” Jahme elaborates. “From here, we designed a building to stack it at the ideal height, how best to segregate the grades and types, the most effective way to cover and protect it, and how best to maintain cleanliness. It also included how best to record location and the most efficient means to move the product into it from trucks and out of it into containers, with the most efficient product flow gained from our years of experience 194 | Africa Outlook issue 95
in the environment. All the while, we considered how to make the entire site as safe as possible for our employees to perform. “The design also had to consider factors such as insurance values per section so as not to overexpose our clients, smoke imaging detection for early fire detection, CCTV and security. This facility would not have been possible without the support of the engineers and contractors that assisted with the entire process, and who also hold the same exacting standards as us. Procurement in the region is a tough task, especially in a market with so many counterfeit products and often substandard materials. Novasol handles our procurement from South Africa when we cannot find suitable goods locally and we are safe in the knowledge that time sensitive items are road or airfreighted to us
COLLABORATIVE DEVELOPMENT This definition is present across the multiple developments that Transcom undertakes. One critical aspect of warehouse operations is security and maintenance, ensuring that goods are well kept, ordered and safe, ready for transportation to an end location. “A recent point of excitement is our wireless phosphine monitoring system that we have developed with Centaur Analytics,” Jahme says. “Around 2015, we realised the single biggest threat to our tobacco business was a tobacco beetle infestation, something that has
TRANSCOM SHARAF SUPPLY CHAIN
traditionally been a big challenge for all the tobacco producers in the region. The high temperatures and high humidity create ideal conditions for these beetles, and we knew that this could be improved upon. “To start with, we conducted a fumigation trial with controlled atmosphere technology (CAT), as this is definitely the future for its environmental benefits. Together with one of our suppliers - Universal Tobacco and their customer Phillip Morris - we facilitated the start of a joint venture regarding embodied carbon dioxide (ECO2) and brought
all the forwarders and fumigators in Beira that handled tobacco, including the port authority, Cornelder,” Jahme tells us. “Through stricter hygiene standards, training, synchronised warehouse fumigations and reduced port dwell times, this greatly reduced the cross-infestation numbers in transit. It also gave a focused understanding of the insect lifecycle to all parties in the logistics chain and how best to reduce ambient beetle counts.” Transcom then looked deeper into the process of phosphine fumigation monitoring. For many years, silo fumigations of stock such as maize and other cereal crops have been undertaken using wireless monitoring systems of some form. “We had to adapt these systems firstly to be able to take place in containers, and secondly to develop a network that could communicate through containers on an unprecedented scale - up to 500 at a time,” Jahme continues. “We then had to ensure the system was modified to meet the CORESTA standards of tobacco fumigation. “Through tireless trials and many years of work by the ECO2 team and Centaur Analytics, we now have the only system in the world that does this on tobacco and are passing multiple benefits to our clients.”
in the equipment from Europe. We successfully fumigated over 300 containers of tobacco with the first CAT fumigations on tobacco in Africa at the time. However, due to the expense of running this equipment, it was decided that the market would have to determine when this is more commercially viable to undertake.” For Transcom, this meant finding a new solution. The company had to improve when it came to limiting environmental negative impact and the way that traditional phosphine fumigations were carried out. “Firstly, we created a beetle task force that included our clients but also
PREPARING FOR THE DECADE Clients and business security are at the forefront of Transcom’s upcoming aims. For the rest of 2022 and beyond, the company is expanding its physical presence, growing its scope of business and introducing further solutions to streamline its operations. “On top of our recent purchase of the aforementioned 165,000m2 of land adjacent to our facility for future developments, we are very excited about some other new ideas that we have been discussing,” Jahme says. “We feel that there is a lot of scope in the mineral and bulk handling sector, and in order to be more competitive
in this area, we are looking for technological solutions to make this process a lot more efficient and cost effective for our clients, and to indeed expand this client base. “This diversification will also take the seasonality out of business and provide a more sustainable business model over the full year. With the worldwide pressures of international shipping and container shortages, we also need to look at handling traditionally containerised products in bulk. The increased prices of minerals out of Zimbabwe and Zambia have also led to a boom in their mining sectors that we anticipate will continue to grow rapidly.” Transcom has partnered with some substantial facilities in Johannesburg and Durban (South Africa) to be able to provide the same levels of service through these corridors as the company does in Beira. This is especially important as ocean freight rates are so variable and volatile globally, and Transcom would like to offer its clients the most costeffective solutions. “Since cyclone Idai in 2019, which was closely followed by the COVID19 pandemic, we have held back on infrastructural development to an extent, but the period has given us ample opportunity to identify new prospects,” Jahme concludes. “Following our rapid expansion up to 2019 we have also had the opportunity to focus inwardly and build a robust platform to launch forward. “This has also included the continuous assessment of how best to improve our service offerings to our long-term existing clients for the years ahead.”
Tel. +258 23 304 445 info@transcomsharaf.biz www.transcomsharaf.com Africa Outlook issue 95 | 195
ZO N E O F OPPORTUNITY
SBIDZ wants to achieve a future that delivers growth, sustainability and inclusion.” Kaashifah Beukes, CEO of the Saldanha Bay Industrial Development Zone (SBIDZ), promises socioeconomic prosperity for the people and businesses of the Saldanha Bay municipality. SBIDZ is the first Special Economic Zone (SEZ) to be located within a port, and caters largely to the energy and maritime industries. The formal award of an operator’s license to the SBIDZ Licencing Company in 2013 marked the beginning of the zone’s journey to create a vibrant hub of opportunity, job creation and sustainable growth in Saldanha Bay, by offering a world-class integrated engineering, fabrication, logistics and freeport environment to 196 | Africa Outlook issue 95
Kaashifah Beukes, CEO zone users and tenants. Through direct employment in the zone, or through small, local firms doing business with zone users and tenants, the overall expectation is that SBIDZ will change the lives of Saldanha Bay citizens for generations to come. “Our objective is to foster responsible investment in the
freeport, as an inclusive and sustainable economic catalyst that is part of the national government’s SEZ programme,” Beukes states. In doing so, it will see Saldanha Bay transform over the next 20 years from a fishing village to a thriving city, built on a maritime economy and benefitting all who live and work there. “We are undertaking pioneering work in partnership with a host of stakeholders to unlock the value of the freeport, located in the largest and deepest port in the Southern Hemisphere.”
BUSINESS DESTINATION Roughly 14,000 ships pass South Africa’s ports every month, of which more than 500 make use of the country’s port facilities. The Western Cape province, where
SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE LICENCING COMPANY SUPPLY CHAIN
The vision of the Saldanha Bay Industrial Development Zone (SBIDZ) is to be Africa’s premier maritime, energy, logistics and engineering freeport, as outlined by CEO, Kaashifah Beukes Writer: Jack Salter | Project Manager: Cameron Lawrence
Saldanha Bay is ideally located, is historically a well-established value creation node for the maritime industry. The province handles more than 80 percent of South Africa’s total ships, whilst 70 percent of boatbuilders are from the region. It is also the focal point of petroleum trade in the country, handling 59 percent of exported petroleum products in South Africa and 47 percent of total imports. “We command geographical proximity to sub-Saharan Africa’s regional ‘ocean economy’ markets, and are able to serve passing vessels operating in West and East Africa,” says Beukes. “The zone itself is established within the bounds of a declared SEZ in an operational bulk carrier port, which has a set customs-controlled area
(freeport) operating within the zone. The freeport is globally competitive in terms of customs and tax regimes, and of course, the port’s depth means that we can accommodate vessel drafts of up to 21.5 metres.” Thus, SBIDZ offers an optimally managed, skilfully facilitated, and world-class business destination that enables the Port of Saldanha Bay to take its place alongside other, more established maritime and energy ports worldwide. The benefits of a freeport, for instance, include import duty rebates and VAT exemptions on imported goods that remain within the zone or are exported, zero-rated movable goods supplied to an eligible firm within the customs-controlled area, and the supply of fixed property under specified conditions.
FACILITATING INVESTMENT SBIDZ provides an operating environment for clients that emphasises the ease of doing business and the convenience of access to governmental offices, banking houses, safety and security agencies, and health facilities. “Our Access Complex, a 2,000 sqm commercial office space with secure parking, meeting rooms, co-working spaces and conference facilities, is a unique site adjacent to the Port of Saldanha Bay, with easy access to the customs-controlled area and zone,” Beukes shares. “It houses the Ease of Doing Business (EODB) Centre, and is designed to extend the services offered by the EODB unit into a physical location where investors can consult with government officials and Africa Outlook issue 95 | 197
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private service providers co-located in the building and available by appointment. “We provide investment facilitation services where we offer support to investors in understanding the policy fundamentals of applications, licensing and permits, which are necessary for investing in project start-ups and business continuation,” she continues. One such service, a tax webinar aimed at professional taxation, accounting and legal stakeholders and zone investors, has been a tremendous success, showcasing and articulating the advantages of setting up as a Customs Control Area Enterprise (CCAE). Another core element of SBIDZ’s mission is its community and development initiatives. The company
proactively engages with local schools through initiatives such as the SBIDZ High School Development Programme, which seeks to galvanise and harness the intellectual capacity and imagination of young people in Saldanha Bay whilst simultaneously capturing the hearts and minds of their parents, guardians and grandparents. SBIDZ also wants to increase awareness amongst teachers of the vital and dynamic role they play as empowered agents and leaders of socio-economic change in Saldanha Bay. “For the year ahead, we have a storytelling and oral history programme planned for students, as well as a leadership development programme planned for teachers and students alike,” outlines Beukes.
IDZs AS A DEVELOPMENT TOOL
South African Maritime Safety Authority The South African Maritime Safety Authority (SAMSA) is proud of its association with the Saldanha Bay Industrial Development Zone Licensing Company (SBIDZ-LC). The two entities have synergised their resources and expertise to promote South Africa’s maritime interests and make the industry recognised as a key sector. SAMSA and SBIDZ-LC the collaborate on mutually beneficial projects spanning industry employment to sustainability investment initiatives. SAMSA is an agency tasked with safety, environmental preservation and the responsibility of small vessel safety, including along in-land waterways. It is in charge of utilising Long-Range Identification and Tracking (LRIT) for vessels along the South African coastline, aimed at securing the nation’s coastal waters.
An Industrial Development Zone (IDZ) is a type of Special Economic Zone (SEZ), generally defined as a purpose-built industrial estate, linked to an international airport or seaport, that leverages both domestic and foreign fixed direct investments in value-added and export-oriented manufacturing industries and services, to increase competitiveness and the development of linkages between domestic and zone-based industries. An IDZ is planned, designed and built around the activities to be located in it, and must be linked to an international port for the import and export of goods and services. As a tool for regional industrial growth and development, IDZs aim to increase competitiveness and attract investment via incentives and concessions, and require domestic goods and services to support the industries located in it.
“We have engaged with nine public schools in several initiatives thus far, and at a post-schooling level, we focus on skills training to build local capabilities and maximise local benefits being realised both in and from the zone.” SBIDZ is tackling the issue of community preparedness for future jobs, and has engaged in several community-directed skills training and development initiatives to enable new socio-economic possibilities for Saldanha Bay, with more than 2,750 training programmes implemented to the benefit of nearly 1,500 individuals.
ADVANCING INNOVATION
Teachers participating in SBIDZ High School Development Programme
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The first of two additional offerings highlighted by Beukes is the SME Co-lab Centre, a free, Wi-Fi-enabled shared office space for local micro, small and medium enterprises adjacent to SBIDZ that fulfils a gap in the SME ecosystem.
SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE LICENCING COMPANY SUPPLY CHAIN
SERVICES: • Seafarer • Small Vessels Safety • Sea Watch and Response • Shipping Safety • Naval Architecture • Ship Registry • Fishing
info@samsa.org.za | www.samsa.org.za
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SBIDZ VALUES AT A GLANCE PIONEERING – Dedicated to creating the conditions for collective success, achieving what is possible and overcoming what others see as impossible. PARTNERSHIP FOCUSED – Working together, growing together, and showing mutual respect. ACCOUNTABLE – Making the right decisions and taking the right actions to deliver sustainable growth to organisations, communities, and South Africa as a whole. SUSTAINABILITY – Creating sustainable transformation for lives, businesses and economies, driven by a belief in making a difference that matters and sustains itself.
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Offering access to networking sessions with relevant public and private stakeholders and partners, what makes the SME Co-lab Centre unique is its proximity, as it can support local SMEs mainly involved in various business activities in and around the zone, the port and surrounding industries. Second is the Saldanha Bay Innovation Campus, a vibrant and inclusive virtual space that connects people and organisations to advance innovation and technology in the marine and energy sectors. The role of the Innovation Campus is to convene research, development and innovation (RDI) partners across communities, academia and the public and private sectors to make a sustainable impact. Industry players are thereby empowered to become agents of innovation and co-create solutions to the most pressing challenges within their sectors. “The Saldanha Bay Innovation Campus engages with stakeholders
in several priority areas, such as collaboration within the energy and maritime ecosystem,” explains Beukes. “As well as driving sustainable RDI, which will become the physical nexus for identifying industry challenges, needs and opportunities, the Innovation Campus is helping members to navigate a complex regulatory environment, capacity building to respond to the specialised human capital needs of the industry, and supporting entrepreneurs and small businesses through incubation and acceleration programmes that provide resources for ongoing development and commercialisation.” SBIDZ has also recently signed an MoU with the Chemical Industries Education and Training Authority (CHIETA) to fund a Digital Smart Skills Centre in Saldanha Bay and advance digital capabilities in support of the maritime and oil and gas sectors. It will offer demand-led digital literacy and fluency skills solutions in
SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE LICENCING COMPANY SUPPLY CHAIN
the areas of robotics, IoT, 3D printing, augmented and virtual reality, and artificial intelligence through blended learning.
KEY PRIORITIES Meanwhile, SBIDZ is embarking on a R3.5 billion infrastructure development project, an especially important investment opportunity for the private sector. Working with the Transnet National Port Authority (TNPA), SBIDZ has completed a pre-feasibility study to define the potential of new port infrastructure for marine, energy and specialist services and activities. “Right now, we are working with the Infrastructure South Africa (ISA) team, as this is a registered project for private sector participation (PSP) in the national infrastructure drive,” Beukes reveals. “At a high level, we are targeting 2022 as the year for completing the bankable feasibility study and exploring PSP models with TNPA and
other role-players.” The port infrastructure project is a key priority for SBIDZ, together with unlocking the fullest potential of its status as a freeport. “When we started, we were focused on maritime and energy, and that will remain a big part of our target market focus. However, we are being seen more and more by other manufacturers as a valueadding location because the freeport, together with our investment facilitation services, saves a qualifying business time and money in their operations,” says Beukes. SBIDZ is tangible evidence of how, through collaboration, cooperation and partnerships, the socio-economic landscape of South Africa can be transformed. Indeed, the rejuvenation of Saldanha Bay will only succeed by fostering and maintaining long-standing and constructive relationships with SBIDZ stakeholders. “Overcoming the social and economic underdevelopment of
our communities requires local workforces, businesses and SMEs that will be able to operate and meet the demands of domestic and global market needs and priorities.” ‘Act local and think global’ – this is the adage that encapsulates SBIDZ’s vision to empower communities, create sustainable prosperity, and develop a profitable business environment.
SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE LICENCING COMPANY Tel: +27 (0) 87 095 0261 info@sbidz.co.za www.sbidz.co.za Africa Outlook issue 95 | 201
Emmy Hashakimana, Marketing and Innovations Director
UGANDA BREWERIES FOOD & DRINK
BREWED TO DELIGHT We speak to Emmy Hashakimana, Marketing and Innovations Director, who raises a toast to the premium alcoholic beverage company’s focus on developing great brands and great people Writer: Jack Salter | Project Manager: Kyle Livingstone
F
ormed in July 1946, Uganda Breweries Limited (UBL) has positioned itself as one of Uganda’s most important, iconic and well-respected entities. A subsidiary of East African Breweries Limited (EABL), which is under the stewardship of drinks giant Diageo, the origins of UBL came as EABL began to moot the idea of industrially produced beer being introduced to the Ugandan market. Just over 75 years on, UBL continues to celebrate and transform lives in Uganda, East Africa and beyond, with the delivery of high-quality brands to consumers and long-term value to investors. “As a consumer-driven business, UBL takes the time to study the market, understand consumer wants and needs, and how best to satisfy them,” opens Emmy Hashakimana, Marketing and Innovations Director at UBL.
Refreshing, high quality products brought to life by UBL include those of the company’s highly celebrated flagship brand, Bell Lager, which to this day continues to win prestigious international Monde Selection awards in recognition of its excellence. UBL brands play a leading role in redefining the industrial landscape in Uganda, with an offering that meets varying alcoholic or non-alcoholic taste preferences and levels of affordability. The UBL portfolio has a strong presence in the country and boasts more than 50 products, all expertly brewed to international standards and includes some of the world’s leading whiskies, stouts, beers and gins. Custodians of the two largest spirits brands in the world, Johnnie Walker and Smirnoff, as well as the likes of Guinness, Baileys, Pilsner Lager, and Tusker Cider to name a Africa Outlook issue 95 | 203
UGANDA BREWERIES FOOD & DRINK
few, UBL’s broad range of renowned international and local brands have a truly global reach. Now, UBL is tasked with continuing to leverage such strengths and building an even stronger position for its brands in the market, by focusing on their strategic imperatives.
THE AMBITION OF UBL As Uganda’s heritage brand, UBL’s ambition is to be the best performing, most trusted and respected consumer products company in the country. UBL is corporately committed to continue playing a positive role in society, especially through sustainable domestic value creation. In addition to providing access to clean, safe water to more than two million Ugandans since 2013, the company guarantees market to 25,000 farmers for locally grown grain and over 22,000 people are employed along the supply and distribution value chain. A direct employer of 300 people, UBL has exported Ugandan talent to various countries where Diageo has presence, including the United Kingdom, Cameroon, Ethiopia, Tanzania, Kenya, and has been recognised by the Federation of Uganda Employers for its excellent talent management programmes. In this regard, UBL is proud to be custodians of some of Uganda’s greatest talent. UBL prides itself on the fact that it is amongst the country’s top annual taxpayers, a great contributor to the development of Uganda, and a hub for best practices. The company benchmarks and competes against international standards in all the processes and steps taken to manufacture its celebrated brands.
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DIVERSITY AND INCLUSION UBL was founded and is sustained by people of extraordinary character, whose calibre ensures that the company is respected as a leading enterprise in Uganda. The staff at UBL are determined to perform and passionate about achievement, the latter of which is measured through the awards and positive reviews bestowed upon the company by Ugandan communities, in recognition of the role it plays in society. With an employee base of more than 1,000 direct and indirect staff, UBL’s focus on diversity and inclusion has enabled it to achieve the richest mix of top Ugandan talent. “We believe that we can only guarantee our plans if we have the right people and capabilities. Once we source top talent, we have a mix of structured and ad-hoc training programmes to develop our people; our goal is to prepare them to truly embody our purpose, values, and demonstrate the highest standards of integrity,” Hashakimana affirms. UBL’s robust brand portfolio, coupled with its talented, hardworking and resilient personnel, gives the company a huge
competitive advantage in the market, built to succeed in the short and long term. Being part of EABL and Diageo enables the people at UBL to gain international experience in East Africa and globally, helping them to develop professionally and promote an inclusive mindset. “Within the business, we also have structured schemes to develop senior leaders. All in all, we offer exceptional opportunities for people to experience and grow beyond where they thought possible.” Supplementary to UBL’s inclusive recruitment is Hashakimana’s passion for inclusive marketing. He notes that culture is shaped by the stories that we tell, and that as one of the largest advertisers in Uganda, UBL has the power to shape society. The success of UBL is therefore determined by how the company’s brands are marketed, to lead the way and keep up with societal change. “I’m really proud of what we are doing in this space at UBL and excited to be able to enact change, by ensuring that marketing is inclusive of everyone and empowered to address social issues and shape culture in a positive way,” he states.
UGANDA BREWERIES FOOD & DRINK
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UGANDA BREWERIES FOOD & DRINK
“A S A C O N S U M E R - D R I V E N B U S I N E S S , U B L TA K E S T H E T I M E T O S T U D Y T H E M A R K E T, U N D E R S TA N D C O N S U M E R WA N T S A N D N E E D S , A N D H O W B E S T T O S AT I S F Y T H E M ” – E M M Y H A S H A K I M A N A , M A R K E T I N G A N D I N N O VAT I O N S D I R E C TO R , U B L
“We live in times of great change; our communities, consumers and customers are experiencing change at an accelerated rate. It is affecting how and where people celebrate and socialise, as well as the environment and communities in which we live.” UBL’s Society 2030: Spirit of Progress sustainability action plan, meanwhile, offers a 10-year roadmap towards an inclusive, sustainable world. It comes as the company integrates environmental, social and governance (ESG) aspects into its business strategy to support the global sustainable development agenda, ensuring that the iconic brands are made and marketed sustainably. “Through Society 2030, we seek to create an inclusive and sustainable
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world by championing inclusion and diversity, positive drinking, and grainto-glass sustainability. “We want to change the way people in Uganda drink for the better. We celebrate moderate drinking and seek to reach over 10 million people with moderation messaging by 2030,” outlines Hashakimana. As a brewer and distiller, UBL also promotes responsible consumption with highly successful initiatives such as the Red Card campaign against underage drinking and driving under the influence.
INNOVATING AT SCALE A business that is sustained by innovation, UBL invests in marketing research and leverages the insights generated to respond to shifting consumer demands, develop vibrant innovation pipelines, and study purchasing behaviours in order to enhance brand distribution. The company constantly invests to innovate and renovate its brands, to stay on par with dynamic consumer
trends. For instance, in the last 12 months it has launched new innovations such as Baileys Delight and Gordon’s Pink Gin, despite COVID-19 restrictions. “We remain agile to respond to these changing dynamics, focused mainly on meeting new consumer demands. This is aligned with our ambition to be the best performing, most trusted and most celebrated business in Uganda,” Hashakimana says. “UBL will continue to innovate at scale to meet new and evolving consumer demands. The innovations we have lined up to disrupt the traditional beer and spirits categories really excite me.” Tusker Premium Cider, for instance, was also recently launched by UBL and has been well received in the Ugandan market. The rollout of this product perfectly exemplifies how the company harnessed customer feedback to cater to their tastes and preferences, and Hashakimana is excited about the prospect of
producing Tusker Premium Cider using locally grown apples. “This will create an explosive new value chain that will earn our farmers a new income stream and develop the agricultural sector. It demonstrates our endeavour to grow the business, whilst at the same time growing Uganda,” he tells us. “The success of UBL and the growth of Uganda as a nation go hand in hand. Owing to that, we seek to deliver value for our shareholders as well as government and society.” UBL’s value chain is long and complex; it requires raw materials to be sourced upstream, processed, and ultimately conveyed to consumers downstream. With the specialisation of different players in the value chain, there is an immense opportunity to grow its various actors, from the farmers who provide the raw materials to the distributors and
SOCIETY 2030: SPIRIT OF PROGRESS UBL’s sustainability action plan consists of the following pillars: • Promoting positive drinking • Championing inclusion and diversity • Preserving water for life • Accelerating towards a lowcarbon world • Becoming sustainable by design • Doing business the right way from grain to glass
service providers. For example, UBL currently offers a ready market to 25,000 sorghum and barley farmers, directly and indirectly creating value for 40,000 households in Uganda. “We value the relationships with our partners and the rest of the supply chain. To deepen these relationships, we have created various policies to promote our values and encourage integrity. “UBL has adopted the United Nations Guiding Principles on Business and Human Rights (UNGPs), and made commitments to embed human rights into our value chain. Through these principles and other governance standards, we ensure that all players in our value chain are treated fairly and with respect,” says Hashakimana.
UNMATCHED RESILIENCE During the height of the COVID-19 pandemic, UBL reviewed its business plans and adapted them to the realities of the situation. It offered consumers more convenient means of accessing its brands, for example by partnering with e-commerce companies such as Jumia and SafeBoda to facilitate home delivery. UBL also created its own ‘Party Central’ online purchasing platform, and increasingly leveraged the likes of supermarkets and convenience stores. In its efforts to help the hospitality sector build back better from the pandemic, UBL rolled out its Raise the Bar initiative under the flagship
Bell Lager brand. A charitable fund has supported more than 1,600 bars in Uganda, donating equipment and PPE to optimise safety at their premises. “The service package includes training and re-training in health and safety protocols, as well as targeted vaccination campaigns for bar staff and owners. Through this programme, we led the private sector to deliver a successful, commendable vaccination drive that has inoculated over 7.8 million Ugandans,” Hashakimana acclaims. Throughout the pandemic, UBL demonstrated unmatched resilience and determination to emerge stronger, and the company is now in a great position to take advantage of the recovery. “Owing to the economic recovery in Uganda this year, we are very optimistic about the future of UBL. Our focus will be on growing our portfolio and upskilling our people, while at the same time remaining a responsible and sustainable business,” Hashakimana concludes. “Our people are very determined, consistent, and have clarity on what to deliver. We have a broad portfolio of great brands that we can leverage, and an excellent route to market to reach our consumers wherever they are.”
UGANDA BREWERIES Tel: +256 (0) 312 210011 www.ugandabreweries.com Africa Outlook issue 95 | 207
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TANZANIA DISTILLERIES LIMITED FOOD & DRINK
SPIRIT OF THE N AT I O N
Timea Chogo is a leading female figure in the Tanzanian food and beverage sector. As Commercial Director of Tanzania Distilleries Limited, we receive a first-hand account of the industry and the company’s impact on the country’s development Writer: Marcus Kääpä | Project Manager: Kyle Livingstone
Our heritage with over 40 years’ existence and experience is a clear competitive advantage, it demonstrates the trust and confidence that our consumers have in us.” Heritage is a strength. In a world that is constantly evolving, where technological advancement and the demands of the market are growing, the notion of historic and cultural roots strikes a comforting chord in us all. For Tanzania Distilleries Limited (TDL), this is a key part of the company’s continued legacy. It’s embodied in its brands, marked in its quality, and drives the high level of care it shows its employees.
Timea Chogo, Commercial Director, Tanzania Distilleries
TANZANIA DISTILLERIES LIMITED FOOD & DRINK
“Our greatest strength is our people, each of which is a representative of the company,” says Timea Chogo, Commercial Director at Tanzania Distilleries. “Our flagship brand Konyagi is one of the oldest and most famous spirits in Africa. It is a pioneer in our market having been established in 1970 and has stood the test of time ever since. “It is a respected brand in the Tanzanian market as well as the nation’s local spirit benchmark. We pride ourselves on Konyagi being unmistakeably 100 percent Tanzanian. The brand stands for heritage, pride, togetherness, sharing, respect and strength of character. We are committed to ensuring that we remain
TANZANIA DISTILLERIES LIMITED TDL is a subsidiary of Tanzania Breweries Limited (TBL), a member of the Anheuser-Busch InBev group of companies. TDL’s key focus is the production, sale and distribution of wines and spirits. Konyagi is the flagship of the company, but it also boasts a diverse portfolio of other brands including Valuer Superior Brandy, Vladimir Vodka, Zanzi Cream
the benchmark for local spirits in Tanzania.” Strength is certainly a prominent aspect of the Konyagi brand. With a logo depicting a muscled man clasping his hands in a ring above his head - a symbol of character and unity – the brand both promises and reminds customers that they will continue to receive the same uncompromising quality and taste that they have experienced since the business was formed.
CONTRIBUTING TO THE NATION For Chogo, TDL’s impact in Tanzania extends beyond the drinks experience. The company stands as the largest single contributor to the country’s revenue and takes immense pride in this fact. “As part of TBL, our business makes us a key partner in the socioeconomic development of Tanzania as a whole, and an active player in the agriculture value chain,” she tells us proudly. “We have direct contracts with farmers in our main agricultural inputs: sorghum, barley and grapes. “TBL Group is also the top manufacturer and top employer, investing significantly in people, manufacturing, processes and the supply chain, creating over one million jobs in Tanzania, directly and indirectly.”
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Liqueur, Imagi Wine and Dodoma Wine to cater to consumer needs. Konyagi, dubbed as the ‘Spirit of the Nation’, was first produced in 1970, thus making it one of the oldest Tanzanian brands. In 2009-2011 and 2012-2014, Konyagi received the Super Brand Award. TDL has diverse national coverage within Tanzania ensuring that company products are locally available across the region. Konyagi is also being exported to other markets such as Kenya, Rwanda, Zambia and Burundi.
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TANZANIA DISTILLERIES LIMITED FOOD & DRINK
This year, TDL partnered with the Ministry of Agriculture, and the Tanzania Agricultural Research Institute (TARI), to introduce the direct contract farming model to 24 grape farmers in Hombolo, Dodoma, with the aim of developing the grape industry. The pilot project has so far proven to be a success; to date, TDL
has purchased 233 tonnes of grapes from the contracted farmers and is committed to expanding this project in the next grape season. On top of this, as part of TBL, sustainability is a significant part of business, and the group focuses on areas that drive the greatest impact in the communities in which it operates.
THE SPIRIT OF TDL TDL has over 125 permanent employees in the company and over 400 employed on a fixed term basis. People are the foundation of the business, and TDL strives to engage employees while focusing on frontline leadership. The company’s employees are the primary drivers of all its processes, and TDL fosters empowerment, autonomy and ownership among its people and its core values. TDL employs world class manufacturing practices in its supply chain operation. The company runs its supply and logistics operations based on two comprehensive management systems: voyager plant optimisation (VPO) and (DPO) distribution process optimisation. These management systems give
Salute Finance Limited Salute Finance Limited (SFL), the market leader in operating lease financing, has stood as a proud partner of Tanzania Distilleries Limited (TDL) for half a decade. In the period of continuous growth up to becoming Tanzania’s premier distiller, SFL has supplied best-in class Toyota vehicles on lease to TDL in support of its operations, sales, and distribution. This proud partnership is founded on mutual values of excellence in operations and customer experience. It’s on this foundation that SFL will continue to match TDL’s ambitions, and humbly enrich each of their successes. For more information about Salute Finance Limited or Karimjee Jivanjee Group: contact@karimjeetz.com
TDL the tools it needs to assure company operations run efficiently, achieving continuous and sustainable performance improvements.
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www.karimjee.co.tz
TANZANIA DISTILLERIES LIMITED FOOD & DRINK
Red prints to match PMS 186
FINANCE LIMITED – Master Logo 2014
GIVING YOUR FLEET A NEW LEASE OF LIFE 200mm
Salute Finance Limited is the Financial Services arm of the Karimjee Jivanjee Group (Est 1825). Since launching in 2012 SFL has become the leading leasing company providing tailor-made lease solutions in Tanzania, and now expanding across East Africa. Driven by its dedicated team of financial experts SFL’s key areas of strength and value are its unmatched customer experience, transparency and professionalism. This has been built on the principals of Honesty, Trust & Integrity. The parent company of SFL; KJL Group with its presence for 196 years has positioned itself as one of Tanzania’s successful companies. The group is committed to growing and enabling, expanding and diversifying its portfolio, currently operating in five business sectors in E. Africa with flagship brands such as Toyota Tanzania, Sterling generators and Salute Finance Limited. For more information about Salute Finance Limited or Karimjee Jivanjee Group: contact@karimjeetz.com www.Karimjee.co.tz
TDL has established itself as a reliable and responsible exporter of spirits, thereby contributing to Tanzania’s export drive and foreign earnings. The company’s Konyagi flagship spirit brand has been doing exceptionally well in the export business.
Africa Outlook issue 95 | 213
TANZANIA DISTILLERIES LIMITED FOOD & DRINK
AFRICA OUTLOOK: HOW DID YOU BECOME INTERESTED IN THE FOOD AND BEVERAGE INDUSTRY? TIMEA CHOGO, COMMERCIAL DIRECTOR: “I would say I probably stumbled upon it. I say this because there were two experiences early on in my career where I wanted to change jobs, and the opportunities advertised were in the fastmoving consumer goods (FMCG) industry. I was rejected for not having any FMCG experience, and this really frustrated me as I kept asking myself, ‘how do they expect me to get any FMCG experience if they won’t give me the opportunity to gain some?’. “From then on, I was determined to take this on as a personal challenge, to not only land myself a career in the FMCG industry, but also to ensure that it was a renowned multi-national organisation. I used this to fuel my career aspirations because I believed in myself, I had the potential, and I knew that if I kept working hard the opportunity would present itself when the time was right. Because of that perseverance, I landed an opportunity with Unilever. “I recall that when I received the opportunity back then to join Unilever, I mentioned that I was surprised to be considered for the opportunity and it was reiterated that the organisation seeks people with the right potential and culture fit, and that they train for the rest. At that point, I knew I had made the right choice. “This experience enabled me to be where I am today and heading for the commercial function for TDL under TBL is one of those life-long ambitions I have always aspired to have.”
“TBL is committed to employing sustainability at each stage of the brewing process from, ‘seed to sip’,” Chogo continues. “For this reason, we pour ourselves into our work. From farm to brewery, and brewery to market, we take pride and ownership in every step of our business. We are paving a road for a better tomorrow that we’re all proud to be part of. “Our first sustainable goal is Smart Agriculture, in which 100 percent of our direct farmers will be skilled, connected and financially empowered by 2025. As the largest consumer of grapes in the country (at 70 percent) we are committed to work directly with grape farmers to grow natural 214 | Africa Outlook issue 95
ingredients using good agricultural practices. Providing agronomic and financial support, we therefore ensure the quality of our products while actively supporting livelihoods of farming communities. “For us, being a key partner in the socio-economic development of Tanzania starts at the seed.”
ANSWERING MARKET DEMAND According to Chogo, TDL has been a part of an industry that is currently experiencing a positive and steady growth, one that comes down to the diversification of consumers buying across the various business segments of high-end, mainstream and mass products. On top of this, the increase in locally produced spirits in Tanzania also being introduced into the market in recent years, and the subsequent rise in consumption, had led to an expected annual market rise of 7.2 percent (CAGR 2012-2025). “It is definitely an exciting space to be working in at the moment, not only with respect to business growth but also with regard to working for a globally renowned organisation such as Anheuser-Busch InBev, where the consumer is at the centre and heart of everything we do,” Chogo
TANZANIA DISTILLERIES LIMITED FOOD & DRINK
informs us. “It is a privilege to be able to work with an organisation where our brands connect and bring people together to celebrate life every day. “But as well as this, being the first female to lead TDL since its establishment over 40 years ago adds to the excitement of turning around the business, reclaiming number one market leadership position, as well as an opportunity to leave behind a legacy I can be proud of.” TDL has established itself as a reliable and responsible exporter of spirits, thereby contributing to Tanzania’s export drive and foreign earnings. The company’s Konyagi flagship spirit brand has been doing exceptionally well in the export business.
“We currently export Konyagi to Zambia, Rwanda and Kenya and are looking to expand to more countries within and outside the African continent,” Chogo says. “In addition to our flagship brand, we intend on expanding our other brands in the TDL portfolio, namely Zanzi Cream Liquor and Valuer Brandy into these export markets. “Currently, Tanzania has two grape varieties locally, white - Chenin Blanc, and red - Makutupora red. As a key partner to the government, our
ambition is to introduce and develop other international grape varieties in the grape industry so as to explore and expand the export market, and to increase our competitiveness in the wine industry as well.”
TANZANIA DISTILLERIES Tel: +255 (22) 2860510/2 www.ab-inbev.com Africa Outlook issue 95 | 215
SUNSEED GROUP FOOD & DRINK
COMPLETE
COOKING OILS A producer of premium edible oils, Sunseed Group is serving up something special to become a leading manufacturer in Malawi. We take a closer look at the company Writer: Jack Salter | Project Manager: Kyle Livingstone
O
il is a truly unsung kitchen staple. From dressing salads to frying food, the uses of oil in day-to-day cooking are endless. As well as being an efficient conductor of heat and a vital enhancer of taste, oil also plays an important role as part of a healthy, balanced diet. Different cooking oils can provide their own unique flavours, smells and textures, and for thousands of years have been processed for a variety of cooking purposes. Over time, extracting vegetable oils has become more and more efficient, with some oils only becoming available recently as extraction technology has improved. In Malawi, a nation highly dependent on agriculture, Sunseed Group of Companies (Sunseed) was established in 2002 with aspirations to become a clear leader in the country’s premium cooking oil sector and that of the wider region. Two decades of oil production later and Sunseed is registering tremendous annual growth, through innovative business models which integrate local communities and smallholder farmers, and the Sunseed management’s prudent approach to taking risks.
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SUNSEED GROUP FOOD & DRINK
First and foremost, however, Sunseed’s growth is down to the company’s premium, edible oils and oil products. Satisfying the nutritional
SUNSEED’S MAIN OBJECTIVES With an enthusiastic and competent management team, Sunseed strives to achieve sustainable growth through the following objectives: MOTIVATION – Inspire and motivate employees to maintain a dedicated, committed and satisfied workforce. INNOVATION – Increase and maintain a high level of profitability by implementing innovative business approaches and risk management strategies. STRATEGIC RELATIONSHIPS – Create and maintain strategic relationships with other companies and organisations to strengthen and advance the business model of the company. EFFICIENCY – Continuous improvement of operations and processes to ensure effectiveness, efficiency, and cost reduction.
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needs and desires of domestic and international customers, Sunseed complies with international quality and safety standards at all levels of production to ensure safe consumption. Production takes place at Sunseed’s magnificent state-of-the-art factory located in the town of Lumbadzi, which has helped the company to establish itself as a top-class cooking oil manufacturer. Here, oil is extracted from locally grown oil seeds, after which it is refined, mixed with an alkaline substance, and washed in a centrifuge. The oil is then further washed and refined before it is filtered and/or distilled ready for packaging. Using these modern technologies and production methods, Sunseed is building a legacy of premium brands manufactured to the highest standards, including Mulawe, Lawani and Nona Plam.
OVERCOMING CHALLENGES Sunseed’s operations have contributed to efforts by the Malawi government to reduce unemployment in both the formal and informal sector. The ever-increasing demand from processors for raw materials such as soya, maize, sunflower and ground nuts has also created space for many
Growing Sustainable Partnerships Learn more at: olamagri.com
@olamagri
Sunseed focuses on initiatives that enable smallholder farmers and SMEs to overcome obstacles around their agribusiness endeavours
smallholder farmers who have been looking for potential alternative value chains. Soya is the very basis of Sunseed’s product catalogue, and soybeans are in fact one of the most important crops in Malawi. They have a variety of uses, are rich in vegetable oil, and production of this versatile grain legume is increasing in the country due to government policies surrounding value addition, domestic use, and crop diversification. Soybeans consist of 20 percent oil, which makes it a crucial crop for producing edible oil. However, Sunseed acknowledges that smallholder farmers are facing several challenges and obstacles in their efforts to become productive value chain players. 220 | Africa Outlook issue 95
‘ T H E M A I N O B J E C T I V E O F T H E D E PA R T M E N T I S T O C O O R D I N AT E T H E P A R T I C I P AT I O N O F S U N S E E D I N A L L I N I T I AT I V E S T H AT A R E F O C U S E D O N P R O V I D I N G S O L U T I O N S T H AT W I L L E N A B L E S M A L L H O L D E R FA R M E R S A N D S M E S T O O V E R C O M E T H E VA R I O U S O B S TA C L E S I N T H E I R A G R I B U S I N E S S E N D E AV O U R S ’
These challenges include a lack of access to quality inputs, a lack of timely and effective agricultural extension services, a lack of knowledge in agricultural practices, and a lack of access to structured markets. Timely access to quality, affordable inputs will continue to be a major challenge affecting the
productivity of smallholder farmers, the majority of whom have lowincome status and can’t access quality inputs without governmental support. Such factors have historically locked out smallholder farmers in Malawi from participating in the country’s rewarding market economy. In response, Sunseed has developed
SUNSEED GROUP FOOD & DRINK
The main objective of the department is to coordinate the participation of Sunseed in all initiatives that are focused on providing solutions that will enable smallholder farmers and SMEs to overcome the various obstacles in their agribusiness endeavours. This is achieved thanks to interventions directly financed by Sunseed and implemented by the Projects Department or through its partners, which include government departments, development partners, and financial and research institutions. Indeed, Sunseed has provided sunflower and soya inputs to over 1,000 farmers in the last five years, making it a partner of choice for many development partners, especially those who don’t have experience of working with farmer organisations (FOs) or have time to screen out inefficient FOs. Through the contract farming scheme offered by Sunseed, smallholder farmers have the opportunity to access quality inputs Sunseed has provided sunflower and soya inputs to over 1,000 farmers in the last five years
an inclusive business model that gave birth to the Projects Department, a non-profit making arm of the company.
in the form of certified seeds. The company also links cooperatives to other input providers whenever such opportunities arise.
FARMER EMPOWERMENT The majority of farmers have not mastered the necessary agronomical skills required to achieve optimal production. Sunseed recognises that farmers are not particularly well-versed or knowledgeable of the agricultural practices demanded by value chains, and thus still need to be handheld throughout the production process. Timely and effective extension services are therefore key to addressing these fundamental knowledge gaps, and Sunseed has invested to improve its extension services in order to facilitate the smooth transition of farmers into these value chains. In the face of limited resources and without reliable road networks to enable extension officers to offer timely and efficient services to farmers, the ratio of farmer to extension officer remains prohibitively high. This is one area in which Sunseed needs support, as it plans to reach out to many more producers in other production zones. Sunseed strongly believes that farmers need to be equipped with the skills required to efficiently manage their operations, maximise production through the use of modern technologies, make informed business decisions, and acquire strong leadership skills. This way, farmers will invariably be able to increase their raw material yields, facilitate aggregation, and understanding pricing mechanisms. As well as farmers, Sunseed is highly engaged in coordinating CSR activities involving surrounding communities, from development projects such as the construction of small bridges through to relief support with food rations. Not only is cooking oil the foundation of so many great dishes, meals and recipes around the world, but it is also the foundation of Sunseed. Africa Outlook issue 95 | 221
THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question
What trends do you forecast for the year ahead within your sector? Victor Nsana
CSR Manager, Kansanshi Mining plc
“I see more collaboration between various stakeholders and ourselves for the benefit of our communities. There is a lot that could be achieved if social development players came together with a single goal and teamed up to achieve it.”
Anthony Mukutuma General Manager, Kansanshi Mining plc
“In the year ahead, we expect an increased focus on responsible resource exploitation, decarbonisation and stakeholder engagement.” 222 | Africa Outlook issue 95
McGerald Mvula
Supply Chain Manager, Kansanshi Mining plc
“There will still be a lot of volatility across the supply chain, dealing with the issues around COVID-19, trade wars and shifting manufacturing bases from China to other regions. The increasing demand has already resulted in pronounced shortages and the supply side is yet to catch up. Congestion at ports, airlines and cross border points will continue in the near term but our industry is built for resilience and a pragmatic approach.”
Kaashifah Beukes CEO, Saldanha Bay Industrial Development Zone Licencing Company
“The reliance on and use of fossil fuels will continue for many years, but we need to start planning now for a world that will embrace decarbonisation, and an industry – maritime, energy, logistics and related
engineering and services sectors – that will depend on and invest in those who have the foresight to adapt, grow and build a sustainable economy that is resilient and inclusive.”
Mohib Pirbay Chairman, Blueline
“Madagascar has been profoundly affected by the COVID-19 pandemic, especially due to the closure of borders and the fall in economic activity that followed. We hope for an exit from the crisis during the first quarter of 2022, which will allow the sector to return to growth, beginning in the second quarter. As far as Blueline is concerned, we anticipate sustained growth of more than 30 percent for the next two years.” Are you a CEO/Director interested in telling your story? Contact Africa Outlook now!
Mining metals from the heart of Zambia... KANSANSHI MINING MINING
See page
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FOCUS ON RELIABLE, CONSISTENT SUPPLY WITH RESPECT FOR THE ENVIRONMENT Suppliers of: • Silica for smelters and furnaces • Filtration media • Concrete products • Construction sand
LEADING T H E WAY
T
here are few discoveries that have been as impactful to human development as that of fire. Fire, and the result of energy transference onto solid and liquid matter to varying effects and degrees, entirely changed the way that we - as
a forward thinking and innovative species - have moved ahead, and has spearheaded the way that we have manipulated the environment around us to our benefit and survival for thousands of years. It has been thanks to this
LOCAL PRODUCTION, GLOBAL STANDARDS
An ancient metal key to modern global growth, we take a look at one of Africa’s largest copper producers, Kansanshi Mining PLC, and speak to executive members of the company about its impact on communities, the environment and the globe
B
BM is the first and largest silica producer in Zambia. Founded in 2013, as a joint venture between Solwezi-based entrepreneur Brenda Kunda and Zambian based institutional investors, the company has built a brand of high-quality
Writer: Marcus Kääpä | Project Manager: Joshua Mann
rudimentary energy source that we have been able to cook food, sterilise water, light settlements and warp materials to our will. Where fire was the root of our revelation, the impact of the raw element on such materials allowed us to realise a breadth of opportunities that lay before us, and when we first mined metal ore, we saw only a greater opportunity to grow and evolve.
Indeed, copper stands as one of the oldest metals discovered to date (with its use dating back as long ago as 9000 BCE) and was one of the first metals used to make tools, implements, weapons, coins and status objects such as jewellery, followed by other metals such as tin, lead, gold, silver and hardy iron. Both copper and gold, with malleable natures combined with a shining aesthetic, helped
The metal helps power machinery used in industries at the centre of urban growth, such as that of building construction, electronic product manufacturing, and power generation and transmission, with the root of this growth coming from the mining of copper deposits internationally. These mining reserves exist as the start of a process that ensures people all over the planet have access to travel, technology and the digital realm to keep the world moving at a swift and continuous pace.
AT A GLANCE - COPPER Copper is the most conductive metal after silver. Copper is also ductile, malleable, corrosion-resistant and tough. There
forward the already embedded and as a status symbol when it comes is no practical substitute for copper in applications where energy efficiency, fledgling concepts of trade and comto jewellery but is instead a keysafe conductivity, resistance to corrosion, merce that would themselves birth the component used in a vast arraycomplex geometries or very fine wiring are required. This includes silver - although it first basic markets and lead forward of industries, tools, technologies may be more conductible, it less resistant, less durable and more expensive. collaborative societal growth and and necessities of the 21st century From the tiniest computer microprocessors prosperity in later ages. world. Durable, malleable and to the tonnes of wiring, tubing, busbar, cable, bushings and bearings in a power station, copper keeps systems operating MINING IN AFRICA superconductive, copper is present in Today, the use of copper varies, longer and at higher efficiencies. The construction industry exemplifies yet it retains its status as a high-value almost all forms of battery across the exactly why copper is a high-value A cleaner, greener, more connected future will depend on copper. Its superior and chosen material for use. Copper’s and thermal conductivity essential for the safe and efficient metal all the same. globe, whichelectrical in turn makes it aiscritical bacteriostatic properties make it the production, distribution and transmission of heat and electrical power and for It is no longer beaten intostandard sharp resource to machinery, and required for electric vehicles. material for potable water the batteries, windingsvehicles and charging infrastructure and heating systems in most develRenewable energy systems use four to six times more copper than fossil fuel edges to do battle, nor widely seen electric motors worldwide. oped countries. Copper is considered systems. the safe choice in plumbing, heating systems, taps, valves, roofing, heating and air conditioning systems as it is resistant to oxidation, extreme heat corrosion and chemical corrosion, will not burn, melt or release toxic fumes unlike other metallic options.
2 | Africa Outlook issue 95
Copper is also essential to telecommunications. ADSL cables, HDSL wiring and UTP lines are constructed of finely wrought copper wires, and interface devices
Africa Outlook issue 95 | 3
rehabilitate their quarrying sites and limit their emissions. For every tree cut, two are replanted. BBM initiated the Keep Solwezi Clean campaign in 2019 and have spearheaded a range of community initiatives. “Being a sizeable and reliable supplier,
products and consistent supply whilst genuinely whilst caring for the environment and improving We have a deep respect Our silica respecting the environment and community in state-of-the-art the livelihood of people in the community, is a We consistently upgrade for the environment. After which it operates. cornerstone in our investment approach across processing plant enables equipment extracting silica, we replant projects. BBM is a great example our of this, and we are to the best us to consistently produce lowsays emission twice many trees to is heavily dominated Theas mining supply chain truly proud of what has been created” Niels standards. world standard products. byrestore men, so it’s refreshing to see a female leader, Bojsen from Kukula, who co-founded BBM with sites. who has been part of building a market leading company from scratch. As a female entrepreneur in Zambia, Brenda has had to work hard to prove her capabilities. “It takes a lot of hard work, discipline, and professionalism. A woman can achieve and live her dream, but it takes determination.” She furthers that “Without FQM and the mining supply chain, BBM’s growth wouldn’t have been possible. We’ve had a close partnership with FQM from the onset and we are proud to operate in the same chiefdom.” For smelters, it is critical that there is a consistency in the silica products. Peter Bwalya, Head of Sales in BBM, remarks: “When we set up our silica production in BBM, it was very important for FQM that we could deliver consistent and conforming products throughout the year. It is critical for smelters that our product is consistent. We know that for our clients to deliver products of international standard, they need inputs of international standard.“
Brenda Kunda.
In addition to the production lines for silica for smelters and furnaces, BBM produces a range of concrete products including high quality building blocks and specialised concrete elements. A new production line for a range of silica filtration media is being established. “We have been testing production of a range of filtration media over the past two years and are now ready to start production at scale” says Brenda Kunda. Peter Bwalya adds: “Currently most filtration media is being imported to Zambia, which there is no need for if we can produce the same quality or better locally. This will reduce both costs and emissions and is hence very aligned with our overall strategy.”
BBM operates with care and respect for the environment and have done extensive work to
such as modems and routers remain dependent on copper, making it the key to future societal growth across the planet
Bresmar Building Material Ltd
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T + 260 969 280 201
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E pb@bresmarbuilding.com
72 | Africa Outlook issue 95
Kansanshi Mining has told its story. Now, why not tell yours? Our bi-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. Reaching an audience 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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Head of Sales Peter Bwalya +260 969280201 pb@bresmarbuilding.com
We recruit from the local district and provide training and educational opportunities.
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