Africa Outlook Issue 42 by Outlook Publishing

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Zuva Petroleum looks to replicate its national success on a regional level

BUSINESS TRAVEL GUIDE 28

Pretoria: The Jacaranda City full of hidden tourist treasures

AUMS 58 Delivering best practice with safety, integrity and excellence

KCB GROUP LTD 102 Transitioning from the traditional banking formula

GOGO FRUIT | EKM EXPORTS 114

Leaving a legacy for local growers

AFRICA OUTLOOK ISSUE 42 FEATURING: SUZUKI AUTO SA | AFRICAN TRADE INSURANCE AGENCY | FUCHS LUBRICANTS SOUTH AFRICA

Business Travel Guides A complete guide to the world’s most popular locations B

P R E T O R I A

Transport links

of from the hustle and bustle Considered a quiet getaway s the Afrikaner sburg, Pretoria embrace neighbouring Johanne spirit of days gone by Writer: Emily Jarvis

Pretoria

While it may not be res are meaning average temperatu of South Africa’s warmer than in one midst the jacaranda tree’s invariably a few degrees most popular tourist purple haze of vibrant Joburg’s metropolis. destinations, Pretoria all of its own, blossoms, South Africa’s Pretoria has a beauty makes a fantastic is regarded as administrative capital and the slow pace of life base for a multitude of many of whom presents a true taste residents; its by a bonus of sightseeing and s who seek a the country’s rich heritage ties. are Joburg commuter city once at the to commute opportuni fascinating history. A quieter existence, prepared Mandatory highlights regime, Pretoria amongst the heart of the apartheid daily rather than live in when visiting the city number of bustle of city life. is now home to a growing are the Pretoria Botanical embassy hustle and foreign blossoms and jacaranda servants of black civil The profusion Gardens, the National the city with r is the workers, who are infusing October and Novembe Gardens, the Union during Zoological with ralism. come alive museums a new sense of multicultu best time to see Pretoria Buildings; and various talked best showcase Melrose Considered the lesser Spring festivities that and galleries that include to the spirit and its Sammy about city when compared the capital’s Afrikaner House, the Pioneer Museum, a stark neighbouring Voortrekker e urban centre forms wealth and glamour of Marks museum and the leafy Pretoria lies picturesqu its more chaotic neighbour to Johannesburg, sedate, contrast Monument. surrounded in a warm, sheltered valley 56 miles away. erg range; Magaliesb the of by the hills

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African hubs, Facts and figure s Unlike other Key South is more Pretoria’s transport system safest the best, limited which means to get around and most efficient way There is an is by private car hire. highways and of network excellent in the city, with well-maintained roads located in many car rental agencies areas to make tourist and business simple. getting around fairly the safety It is advised to follow company; directions from the hiring and up South Africa Country: keeping the car windows stopping Gauteng the doors locked, never Province: leaving City of Tshwane for hitchhikers and never Municipality: car when it is 11 including anything visible in the Languages: Afrikaans, English, parked in a secure place. – the N1, N3, Northern Sotho and Five national highways Gauteng the in Tswana join – N4, N12 and N14 2 687.54 km region, making it accessible Area: million from all cities in the country. Population (2011): 1.76 $49.9 billion However, most national GDP (2011): routes are now toll roads, Rand Currency: system with an e-toll UTC+2 Time zone: introduced as part of +27 Dialling code: the Gauteng Freeway .za Internet TLD: Improvement Marthinus Pretorius Founder: Project launched in 1855 (named after in 2007, so it is Andries Wilhelmus important to Jacobus Pretorius) research your to route prior to start your and comfortable way travelling. journey. Pretoria If you are there is also It is worth noting that travel to looking of informal, a very extensive network further afield, mostly used by cheap minibus taxis, then the hightaxis have a local commuters. These but this speed Gautrain rail unsafe, reputation for being years link is the perfect greatly improved in recent has relatively means of transport and most taxis are now ed, between Pretoria, luxurious and not overcrowd locals Ask Johannesburg and except during peak times. nal about regular OR Tambo Internatio waiting at taxi stops access wish to have a you if Airport. Travellers can rates and routes arrivals experience. a direct link from the more authentic travel as a safe hall of the latter, serving

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W E L C O M E Light at the End of the Tunnel For much of the continent over the past 12 months, business has been slow and outlooks have been bleak when it comes to industries that have previously affirmed Africa’s position in the global value chain. Oil & gas and mining, in particular, have suffered as a consequence of international downturns; namely the commodity crisis surrounding the former and flailing oil prices in regards Zuva Petroleum looks to replicate its national success on a regional level to the latter. However, there is now light at the end of the tunnel, and this month’s Africa Outlook shares in this fresh optimism via interviews with two of the continent’s leading exponents in each domain; both of whom are looking towards late 2016 and 2017 as turning points for their respective sectors. In the oil & gas corner, Zuva Petroleum has enjoyed a rapid rise to prominence since going solo in 2011, incorporating a rebranding in 2015 and strong diversification of its key business arms to make it Zimbabwe’s leading operator. Chief Operating Officer, Zwelithini Mlotshwa now has eyes further afield as Zuva looks to replicate its success in the wider region. Representing mining is an old friend, African Underground Mining Services; a Company first featured back in mid-2015, and who is bookending the intermittent sector slump with achievements which epitomise the Group’s role as a gateway for international investment into Africa. Chief Operating Officer, Blair Sessions talks us through the Company’s key projects in Burkina Faso, Ghana and Tanzania, as well as the business’ ongoing nationalisation drive. The rest of our company showcase assortment spans a host of industries much more comfortable in the current climate, dictated by some of the businesses thriving as a consequence. Fuchs Lubricants, Suzuki Auto South Africa and Universal Corporation Limited are backed up by foodies, Denau and GOGO Fruit in demonstrating the continent’s manufacturing and production prowess, while African Trade Insurance Agency and Kenya Commercial Bank bring a sense of financial stability to proceedings. Finally, our front-of-book segment focuses on Nigeria, a country affected more than most by the ongoing oil crisis, but is recovering thanks to initiatives such as Made-In-Nigeria, as we discover. Matthew Staff WWW.AFRIC AOUTLOOKMAG.COM

BUSINESS TRAVEL GUIDE 28

Pretoria: The Jacaranda City full of hidden tourist treasures

AUMS 58 Delivering best practice with safety, integrity and excellence

KCB GROUP LTD 102 Transitioning from the traditional banking formula

GOGO FRUIT | EKM EXPORTS 114

Leaving a legacy for local growers

AFRICA OUTLOOK ISSUE 42 FEATURING: SUZUKI AUTO SA | AFRICAN TRADE INSURANCE AGENCY | FUCHS LUBRICANTS SOUTH AFRICA

Editorial Director, Outlook Publishing

EDITORIAL Editorial Director: Matthew Staff matthew.staff@outlookpublishing.com Deputy Editor: Emily Jarvis emily.jarvis@outlookpublishing.com

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BUSINESS Sales Director: Nick Norris nick.norris@outlookpublishing.com Operations Director: James Mitchell james.mitchell@outlookpublishing.com Heads of Projects: Arron Rampling arron.rampling@outlookpublishing.com Donovan Smith donovan.smith@outlookpublishing.com Tom Cullum tom.cullum@outlookpublishing.com Sales Managers: Jake Aldridge jake.aldridge@outlookpublishing.com Joe Palliser joe.palliser@outlookpublishing.com Project Managers: Callam Waller callam.waller@outlookpublishing.com Eddie Clinton eddie.clinton@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Joshua Mann joshua.mann@outlookpublishing.com Kane Weller kane.weller@outlookpublishing.com Stuart Parker stuart.parker@outlookpublishing.com

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In this issue of Africa Outlook...

NEWS

OIL & GAS The Oil Market’s Red Herring

All the latest top stories across the month from Africa

Oil’s biggest wildcard could see short-term stability

CREATIVITY IN AFRICA Africa’s Cultural and Creative Revolution: A Saga in the Making

The continent’s talent presents vast opportunities for creativeled jobs

S E C T O R

F O C U S

MANUFACTURING Kick-Starting Made in Nigeria

Restoring Nigerian industry to its former glory

B US I NE S S T R AVE L G UI D E

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PRETORIA

The Jacaranda City full of hidden tourist treasures

34 O

T E C H N O L O G Y

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

124

ZUVA PETROLEUM Energy Everyday

NAMCOR Creating Value through Strategic Investment

Thinking safe, clean and smart for your home or business

Striking the right balance between cutting-costs and client satisfaction

UNIVERSAL CORPORATION LTD Improving the Quality of Human Life

Reinstating Namibia as a top oil & gas destination

AFRICAN UNDERGROUND MINING SERVICES A Model of Excellence, Continent-Wide

Delivering best practice with safety, integrity and excellence

MEDTECH ANGOLA Evolving with the Pace of Change

The pharmaceutical Company of choice in East and Central Africa

AFRICAN TRADE INSURANCE AGENCY Taking the Risk out of Africa

S H I P P I N G & LO G I S T I C S

130

Creating a centre of underwriting excellence

102

TAZARA Rehabilitating a Transport Lifeline Restoring a historic rail line to its former glory

KCB GROUP LIMITED Going Digital Transitioning from the traditional banking formula

E V E N T MANUFACTURING

FUCHS LUBRICANTS SOUTH AFRICA Lubricants. Technology. People.

The world’s largest independent lubricants manufacturer meets Southern African demand

SUZUKI AUTO SOUTH AFRICA A Suzuki Way of Life

Adapting to changing consumer tastes to stay ahead

F O O D

108 114

& D R I N K

DENAU Focused and Fresh

F O C U S

136

ACA WORLD CASHEW FESTIVAL & EXPO 2016

138

POWERING AFRICA: NIGERIA INVESTMENT SUMMIT

A sustainable, biologically friendly approach to farming

Africa takes centre stage as the largest regional cashew producer

Nigeria’s power, finance and energy investors to meet in Abuja

GOGO FRUIT | EKM EXPORTS The Quest for Fruit Excellence Leaving a legacy for local growers

120

CAPESPAN SOUTH AFRICA PTY LTD A Fresh Fruit Focus

A leading global partner in marketing, procuring and distributing fresh produce

140

MANUFACTURING FOOD

A closer look at Nigeria’s food manufacturing supply chain

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starting with South Africa, we saw GDP growth decline sharply to below one percent and the country averting a credit ratings downgrade; in Nigeria, the slowdown in that economy was impacted further by the decline in the oil price and currency devaluation pressure.” In 2015, East Africa recorded its highest share of FDI across Africa, achieving 26.3 percent of total projects. Southern Africa remained the largest investment region on the continent, although projects were down 11.6 percent from 2014 levels. The West Africa region saw a rebound in FDI projects by 16.2 percent, and interestingly in 2015, the region became the leading recipient of capital investment on the continent, outpacing Southern Africa. Michael Lalor, EY’s Africa Business Centre Leader, added: “In a context of heightened concerns about economic and political risk across the continent, FDI flows remain robust, and in line with levels we have seen over the past five years. A key factor here is the structural shift in FDI; from a high concentration of source countries and destination markets and sectors, to a far more The latest survey from EY shows a seven percent rise in FDI diverse FDI landscape. As a result, risks and opportunities are being projects on the continent, with East Africa the biggest gainer spread much wider, and there is while other key economies recover ground no longer an overdependence on a According to EY’s 2016 Africa US$71.3 billion in 2015 – this was still limited group of investors or sectors attractiveness program 2016 higher than the 2010-2014 average of to drive FDI performance.” – entitled ‘Staying the course’ US$68 billion. Similarly, jobs created Sita summarised: “The reality is – despite a relative slow down, were down year-on-year, but, again that economic growth across the sub-Saharan Africa remains one ahead of the average for 2010-2014. region is likely to remain slower in of the fastest growing regions in Ajen Sita, Africa Chief Executive the coming years than it has been the world. This is reflected in the Officer of EY, commented: “Over over the past 10 to 15 years, and foreign direct investment (FDI) the past year, global markets have the main reasons for a relative levels in 2015, where FDI project experienced unprecedented volatility. slowdown are not unique to Africa. numbers increased by seven We’ve witnessed the collapse of In fact, Africa was one of only two percent. Although the capital value commodity prices and a number of regions in the world in which there of projects was down year-on-year currencies across Africa, and with was growth in FDI project levels – from US$88.5 billion in 2014 to reference to the two largest markets, over the past year.”

FINANCE

Sub-Saharan Africa Remains One of the Fastest Growing Regions in the World

GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA

C O N S T R U C T I O N

Eko Atlantic City Completes Nigeria’s First Eight-Lane City Road Eko Atlantic City, a unique and innovative mixed-use development situated in a vibrant environment with 21st century facilities on the coast of Lagos, has reached the advanced stages of the first phase of development. The city will boast an independent power and water supply, seamless communications network and an extensive citywide road network; the first of its kind in Nigeria. Divided into eight districts, Eko Atlantic is a new coastal city being built on Victoria Island adjacent to Lagos, Nigeria, to solve the chronic shortage of real estate in the world’s fastest-growing megacity. It is a

FINANCE

Letshego Granted Full Commercial Banking Licence in Namibia Letshego Holdings Limited has secured a full commercial banking licence for Letshego Bank Namibia, marking the Company’s fifth deposittaking licence across sub-Saharan Africa. Letshego has held a presence in Namibia for more than 14 years through its micro-lending institution, Letshego Financial Services Namibia. The Company has been dedicated to embracing financial inclusion through helping more than 55,000 customers, including the rural and underserved populations, in Namibia with meeting their housing, health, education

Eko Boulevard, Nigeria’s first eight-lane city road

focal point for investors capitalising on rich development growth based on massive demand and a gateway to emerging markets on the continent. The road design and construction has been built according to worldclass best practices. One of the considerations when developing the Eko Atlantic city was to guarantee free flowing traffic. This has now been achieved with the major road network recently reaching completion, spanning an area in excess of 200,000 square metres. Eko Boulevard, an eight

lane, 1,500 metre-long boulevard – similar to the 5th Avenue in New York – is now fully completed and will be the focal point of the business district from Ahmadu Bello Way in Victoria Island to the ocean front. “We are extremely proud to have achieved another major milestone in the development of Eko Atlantic City. This futuristic city is not just for residential and commercial activities but it is a tourist attraction,” said Ronald Chagoury Jr, Vice Chairman of South Energyx Ltd.

allow access anytime, anywhere. Letshego’s strategic intent is to become Africa’s leading inclusive finance Group by offering customers simple, appropriate and affordable solutions. Letshego Namibia has assisted customers to fund education; construct and own homes; and expand and business needs. Through this, micro and small businesses. The full Letshego aims to drive socio-economic banking licence will accelerate the development across its African Group’s inclusive finance strategy in footprint. Namibia. The approval to commence banking Ester Kali, CEO, Letshego Bank operations for Letshego Namibia, Namibia, said: “Our strategy will granted by the Bank of Namibia, will continue to focus on leading the allow the Company to expand its range development and provision of inclusive of simple, appropriate and affordable finance that encompasses broadsolutions. Further, its deposit-taking based financial services. We actively capability will enable Letshego Namibia look to align with the Government’s to broaden its inclusive finance agenda agenda for sustainable socio-economic to target the under-banked and development and to this end, we are underserved in the informal sector committed to supporting the National using service delivery platforms that Harambee Prosperity Plan.”

GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA

T E C H N O L O G Y

Gauteng Emerges as Enterprise App Development Hub According to Cassie Lessing, Managing Director at Strato IT Group, Gauteng is fast emerging as a centre for enterprise app development; which is expected to create trillions of dollars worth of opportunity in the next few years. Africa’s highly mobile market is poised to leapfrog directly into the era of apps. In South Africa, the app economy is dynamic and evolving, and as the country’s economic powerhouse, developers in Gauteng are keen to maximise its innovative potential and benefits for all sectors of the economy and society. “Economies rely on information to function effectively and the app economy represents a leap forward towards the goal of an informed and efficient knowledge-based society. Organisations that do not adopt and utilise the emerging technologies like mobility, digitisation and cloud will be disadvantaged and lose out to the early adopters,” explained Lessing.

Cassie Lessing, Managing Director at Strato IT Group

Anne Aliker, Head of Investment Banking, Standard Bank

F I N A N C E

Partnerships Crucial to Fuelling Kenya’s Growth According to Anne Aliker, Head of Investment Banking (Rest of Africa), Standard Bank, the prospects for East Africa as a trading bloc remain promising despite the current

headwinds being faced in the global economy. “As a bank that calls Africa its home, we want to continue supporting her growth and enabling companies to achieve their growth potential. We believe powering Africa and its regions is crucial if these higher levels of growth are to be achieved. This is why a deal like this is so important, as power and transport are intertwined with economies, regions and the continent as a whole. For example, the capacity of this new pipeline is designed to meet the projected petroleum products demand for the East African region through to the year 2044,” she said. A strong understanding of regulatory and legal requirements is going to become even more crucial, as more deals happen to finance the infrastructure gaps.

FINANCE

Sage Sets out the Vision for African Businesses Speaking at the Sage Summit at the end of July, Anton Van Heerden, EVP and Managing Director, Sage South and Southern Africa, outlined the Company’s strong commitment to future technologies with a focus on new and existing initiatives that power business growth. “... our smart people are using the smartest technology to reinvent and simplify business accounting. Our research teams are working on making concepts like the Internet of Things, machine learning, blockchain and data sciences into a reality for African businesses, accountants and partners. We are committed to helping African

Jeremy Hodara, Founder and Co-CEO of Jumia

entrepreneurs exploit these gamechanging technologies to win and grow.”

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T E C H N O L O G Y

TECHNOLOGY

Mobile Technology Further Connects Africa with Global Markets

Orange Drives Digital Transformation in MEA

Speaking at its fourth annual strategy and activity update in July, senior executives from Orange identified a number of sectors in which Orange can play a key role in delivering digital transformation to the MEA region. Bruno Mettling, CEO, Orange MEA, commented: “... Today, we are present in 21 countries in the zone, with more than one-in-10 Africans being Orange customers. We are investing for the long-term and plan to continue playing a major role in the digital

transformation of the region, from providing infrastructure and access to communications services through to developing new models that will help the region grow.”

Home to one of the world’s fastest growing middle classes, Africa has seen multiple opportunities emerge for both local and global retailers from mobile and digital growth. “With operations across 51 markets in sub-Saharan Africa, servicing more than 40,000 customers, delivery efficiency is an important factor for us. With our investment in technology and retail touch point strategy across the region, we seek to leverage the huge potential in Africa, to ensure that citizens have access to the opportunities and services that mobile presents to the region,” said Hennie Heymans, CEO, DHL Express subSaharan Africa. HEALTHCARE

Growth of FinTech in Africa Surges C O N S T R U C T I O N

Swisatec Embraces Live-Work-Play Ethos at $14 Billion Blue Rock Village Swisatec, the architect and project manager for Africa’s first green village, Blue Rock Village, has announced two multimillion rand additions to the Village; the Santa Luzia lifestyle centre and the five-star Blue Rock Hotel and conferencing centre. Both will add more value to the village through the creation of an exclusive lifestyle

that embraces the ‘live-work-play’ Blue Rock Village ethos. “The Santa Luzia lifestyle centre will be a multifunctional centre boasting 14,000 square metres of floor space over seven-stories, with a 10,000m2 exhibition street designed for hosting conferences and other interactive events such as local produce markets, product launches, and concerts or music festivals,” said Mr Reichmuth, Director of Swisatec and owner of Blue Rock Village. Construction of the Santa Luzia lifestyle centre is envisioned to begin in 2017 with Phase 1; Giovanni luxury terraced apartments to be officially on sale at the end of July, 2016.

According to Frost & Sullivan, the FinTech sector in Africa is poised for exponential and rapid growth that will challenge existing financial services providers. “Africa’s under-developed banking infrastructure means that the FinTech wave will more likely be an enabler of financial inclusion than the typical disruption seen in more developed markets. With at least 60 percent of the adult population on the continent still without a bank account, Africa offers significant opportunity for the industry,” noted Wayne Houghton, Director of Growth Implementation Solutions for Africa at Frost & Sullivan.

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TELL US YOUR STORY

AND WEâ&#x20AC;&#x2122;LL TELL THE WORLD AFRICA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Africa. We reach an audience of 165,000 people across the continent, bridging the full range of industrial sectors: mining; oil & gas; logistics; resources; manufacturing; construction; engineering; technology; food & drink; retail; finance; and healthcare. In joining the leading industry heavyweights already enjoying the exposure we can provide, you can benefit from FREE coverage across both digital and print platforms, a FREE marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to grow your business. To get involved, please contact Outlook Publishingâ&#x20AC;&#x2122;s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for free, in one of our upcoming editions.

W W W. A F R I C A O U T LO O K M A G . C O M Tel: +44 (0) 1603 959 650 Email: ben.weaver@outlookpublishing.com

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Nigeria:

The Oil Market’s

Red Herring

By the end of the year, experts are optimistic that crude oil prices could recover to US$50 or above; however Nigeria’s summer gasoline glut could be a major drag on global energy prices Writer: Emily Jarvis

espite crude oil having recently brought the nerves back among energy investors thanks to a recent brush with levels close-to US$40 a barrel, market analysts believe that international events over the next few months will conspire to send oil prices sharply upward; once the gasoline glut eases. This being said, it is believed that Libya and Nigeria are the two ‘red herrings’ of the OPEC member states, with both countries marred by instability and the latter having recently had its supply cut

in half as militants target the country’s pipelines. “Since March, Nigeria has struggled with an insurgency in the Niger Delta region, where the bulk of its oil and natural gas industry is located. Violence in the Niger River Delta escalated when the Nigerian Government, under tremendous financial pressure due to the collapse in oil prices since 2014, cut subsidies to militia groups and ended its traditional protection of oil facilities. The violence reflects both the worsening economic conditions and historic grievances of groups living in

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the Niger Delta region,” commented Gregory Brew, Researcher and Analyst, oilprice.com. The country’s oil production steeply declined from 2.2 million to 1.3 million bpd over the period of insurgency. In a promising move at the start of August, however, Nigeria resumed payment of allowances to former Niger Delta rebels under the 2009 amnesty scheme on the condition that they stop carrying out oil pipeline attacks in this volatile, oil-rich area. It is still too early to tell the speed at which violence will settle and oil production

will recover, but the early signs are promising as the Government recently announced a promising increase to 1.9 million bpd.

Strengthening investments

According to Helima Croft, Global Head of Commodities Strategy at RBC Capital Markets, “there’s this view that because Nigeria [has] resumed these amnesty payments, it’s going to bounce back as well [with] 400,000-500,000 barrels”. These disruptions in Nigeria’s oil

1.3 million BA R R E L S A DAY The country’s oil production steeply declined from 2.2 million to 1.3 million bpd over the period of insurgency

production have been a major factor behind the latest rally in crude oil prices, but future changes in the domestic political climate and a recent influx of new investment looks set to change that, with possible ramifications on the crude price for later this year as the country’s producers remain under pressure. “The Nigerian oil industry desperately needs this new investment, as structural weakness and crumbling infrastructure takes its toll, together with the damage done by militants. Maintaining a new level of production would require US$40-50 billion. Now that money is materialising, with the announcement of a MoU with China North Industries Group Corp. totalling $8.5 billion,” added Brew. Saudi Arabia’s Government has also announced plans to list around a five percent stake in its state producer, Saudi Aramco. Russia’s state-owned exporter, Rosneft PJSC is also seeking buyers for a 19.5 percent stake in its Company. It seems Nigeria is keen to strengthen its ties with Europe as well, having agreed to bolster its existing bilateral cooperation with Spain at the start of August, 2016. In a bid to improve its oil & gas technical capacities and bilateral trade, Maikanti Baru, Group Managing Director of the state-run Nigerian National Petroleum Corporation (NNPC) said it would work closely with the Spanish National Oil Company to improve local refineries. “We have challenges with our refineries and with Spanish National Oil Company refining about 900,000 barrels of crude oil a day, we can collaborate on that in our efforts to go forward,” Baru said, noting that the two countries already share more than $5.1 million in oil trade each year.

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MARK ET

R SKS

Nigeria’s once booming economy has fallen on hard times and has been left in limbo with a barrel load of problems. Relying heavily on oil revenue for Government funding, the country faces a weak naira; which on the one hand means investors are having issues getting money out of the country, and on the other, the country becomes more attractive to new investors thanks to a lower cost of producing goods and services in the country. Rather than remaining a one-trick pony that relies on huge profits from oil and natural gas, this will eventually open opportunities in other vital industry areas such as bolstering the country’s infrastructure, agriculture and tapping the country’s significant resource wealth; much like the economic diversification strategies currently underway in the Middle East. Minister of Power, Works and Housing, Babatunde Fashola agreed in a recent interview with the BBC that Nigeria can no longer build its future on oil revenue following the fall in global oil prices and that wiser investment choices need to be made to secure a better future. “...where there is a global economic downturn and there will be local consequences... You can’t plan a future around extraordinary income that you don’t control the circles. This budget will be driven by resources from taxation and any serious government, any forward-looking government like this Government must understand that the boom that comes from commodity prices really is extraordinary income. “We may have made some very poor choices over the time about how we spent that money [oil money], this administration has a focus now that we will deal with our funding issues first from taxation, corporate taxation,” he said.

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Navigating turbulence

The speed at which Nigeria’s Government can overcome its adverse economic conditions and make progress on reforms, particularly addressing corruption and infrastructure constraints, will dictate whether international investors begin to look towards the country for new opportunities. Coupled with the lower naira, the country has the potential to attract new investors in other core markets, which may help the country pull away from its

traditional mainstay in oil & gas. “No country survives on her own investment but every country thrives first on the investment of her people and as first Nigerians are responding and investing on that economy I think that we will turn this corner,” summarised Fashola. Globally, if high inventory levels can be cleared out, oil prices could rise as high as $70-80 per barrel in 2017, said Croft, as dynamics in the oil market remain bearish in the shorter-term. Despite the country’s own

US$80 A BARREL

Oil prices could rise as high as $70-80 a barrel in 2017

economic and political problems, Fashola shared his optimism for the Nigerian market to recover: “There is a global downward trend. National growth projections are being revised downward and in these downward global times, there will be diverse local consequences. Ours is no different. We are not under-performing. We are facing a turbulent time; a difficult time but we will navigate. We will come through and I see that happening in the short-term rather than the longterm.”

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AFRICA’S CULTURAL AND CREATIVE REVOLUTION:

A Saga in the Making Africa’s creative sector is evolving into an intrinsic part of the continent’s economic diversification and is a positive indication that its nations are waking up to their inherent creative prowess Writer: Jean-Claude Bastos de Morais

here’s been a lot of talk in recent times about the potential for Africa’s creative sector to lend itself more effectively towards ongoing economic diversification efforts, and that in itself is a positive indication that African nations are waking up to their inherent creative prowess. Be it film, music, arts, crafts, fashion, design or multimedia, the talent available on the continent is monumental and presents vast opportunities for creative-led jobs for Africans. But so far, what I’m observing is a lot of discussion and not enough collaborative action on catapulting the African creative sector into a high value sector. In the December, 2015 EY study, ‘Cultural Times – The First Global Map of Cultural and Creative Industries’, the global creative sector is said to have generated US$2,250 billion in revenue per annum; creating 29.5 million jobs. The

2.9% OF SA GDP

In South Africa, another study found that the creative sector had contributed 2.9 percent to GDP

study revealed that Asia-Pacific is the world’s largest market for cultural and creative industries (CCI), accounting for US$743 billion in revenue – 33 percent of global CCI sales – and 12.7m jobs, representing 43 percent of CCI jobs worldwide. Europe and North America are the second and third largest CCI markets, while Latin America and the MEA (Middle East and Africa) region rank fourth and fifth, respectively. The MEA region apparently generates US$58 billion in revenues – three percent of global CCI revenues – and 2.4 million jobs, or eight percent of total CCI jobs. In comparison, these statistics may appear small but they are in no way negligible. In South Africa, another study conducted in 2014 found that the creative sector had created between 162,809 and 192,410 jobs, about 1.08-1.28 percent of employment in the country, and that they contributed 2.9 percent to the GDP. In the North, Morocco’s publishing and

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Financial institutions such as ADB are reforming mechanisms to support the fashion industry

printing industry employs 1.8 percent of the work force, and is an industry that is worth more than $370 million. Just imagine what these numbers would look like if all of Africa, as the world’s second-largest and secondmost-populous continent, unleashed its full creative potential.

Commercialising creativity

While it’s true that African nations currently lack the infrastructure, regulatory frameworks and capacity to commercialise its creative sectors, I believe that the more pertinent point

here is to look at what’s at stake if we don’t make moves to support the creative sector right now. That stake is youth employment; high stakes considering that youth represent the largest demographic across the continent and that more than 11 million young Africans enter the workforce every year. The reality is that the current key growth sectors are simply unable to create the necessary jobs at the pace required. A recent report from The Cultural Times also estimated that cultural

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goods in Africa are largely provided through the informal economy, which is believed to employ 547,500 people and generate US$4.2 billion in revenues. This is a sector that employs largely women and youth, incidentally the two most vulnerable demographic. How then do we bring this segment into the formal fold? Since it is generally a labour-intensive sector with the potential to generate both skilled and unskilled jobs, why not prep the creative sector to absorb these entrants? Governments, policymakers and other stakeholders need to be attaching much greater importance to investing in creative industries throughout the value chain of education, creation, production, distribution and consumption. Doing so will simultaneously stimulate other industries such as leisure, printing, tourism and transport. On the upside, there are strong moves in the right direction with institutions such as the African Development Bank (ADB) and the Economic Community of West African States (ECOWAS) looking into reforming policies and introducing innovative financing mechanisms to support creative industries such as fashion and art in order to create new economic opportunity in Africa. The buck doesn’t stop with the public sector alone though. The private sector too has an immense role to play in upscaling and commercialising the current talent pool on the continent. Local investors, industry experts and the diaspora need to step up efforts to invest and provide much-needed knowledge transfer to support the growth of creative-led SMEs within this eclectic sector.

Combining innovation and creativity Here’s where innovation comes into play. There is a natural symbiotic relationship between innovation and the creative sector. Given that

US$4.2 billion

A recent report from The Cultural Times also estimated that cultural goods in Africa are largely provided through the informal economy, which is believed to employ 547,500 people and generate US$4.2 billion in revenues

The informal economy, a sector that employs largely women and young people

modern technology can be adopted somewhat cost effectively today, Africa’s cultural and creative industries are in the position to create, exchange and export creativity at a faster and simpler rate than ever before. It is one of the few sectors where one can operate virtually in a fairly lean and low capital environment. As innovation ecosystems continue to unfold across the continent, be it in the form of creative clusters, technology hubs and media hubs, there are incredible opportunities to upscale Africa’s creative sector entrepreneurs,

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elevate the overall quality of the region’s creative output and enhance Africa’s share of voice in the global creative market across all genres. Take Nollywood for example, Nigeria’s massive film industry that produces some 2,000 films annually and directly employs around 300,000 people. Nigeria has the potential to become Africa’s digital, entertainment and film making hub provided it can start tapping into new technologies that are available today especially in special effects and animation. Nigeria should really look at creating a film and entertainment-led innovation hub, where youth can be trained and mentored by local, regional and international veterans. In the typical

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co-working set up offered by most innovation hubs, youth can be exposed to peer-to-peer networking and creative exchange to script, direct and produce their own films via innovative financing mechanics such as crowd sourcing. Virtual classrooms make it possible to extend knowledge transfer into non-urban areas if infrastructure and electrification can be improved. In Angola for instance, where there isn’t a specific creative sector that is thriving as yet, I’ve collaborated with the public sector to construct the country’s first hybrid innovation hub, Fábrica de Sabão, comprising of an incubator and accelerator hub as well as co-working and MakerSpace. Built in the heart of Luanda’s largest slum, it is designed to be an ecosystem for inclusive and creative exploration to thrive. One of the key initiatives currently being set up is the hub’s dedicated radio station through which local youth can be trained in the world of media and broadcasting. It’s also a space for local, regional and international artists to exhibit their works and conduct workshops for Angolan children and youth so that they stand a chance to build sustainable and creative-led businesses for themselves in the future.

Keeping it intrinsically African

In the bigger scheme of things there is certainly strong headway in the right direction. Africans are increasingly aware that there always has been and will be global demand for African creativity especially in textiles, art, crafts and music. They are now starting to question why other nations in the developed and

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Fábrica de Sabão is an innovation hub in Angola where international artists exhibit their works and conduct workshops

300,000 people Nollywood, Nigeria’s film industry produces some 2,000 films annually and directly employs around 300,000 people

developing worlds should continue to economically benefit from their creative output when it can be channelled towards strengthening Africaâ&#x20AC;&#x2122;s regional creative license that will in turn create new trade patterns between African and global markets. There is pride in being African and sharing African creativity with the world. The diaspora are increasingly playing a bigger role in mobilising knowhow and capital in Africa. We need to see a stronger push in elevating the

media and advertising skillset in Africa, because the continent is poised to become the next big consumer market as the middle class segment continues to grow and I expect that this sector will take off in a big way very soon. At the same time, it is important to ensure that the cultural and creative industries protect and project African authenticity and ingenuity rather than emulate global ideas for the sake of being in trend with ideas and thoughts from other developed regions. Africaâ&#x20AC;&#x2122;s cultural and creative revolution is only a matter of time, a reality that can be met in the very near future, but it takes creative vision as well as intellectual and financial capital from both the private and public sector to nurture these industries from ground-= up. They often cannot deliver a quick return on investment. But in the long-term they offer socioeconomic growth, a rich supply chain and cultural transformation; and these are industries that will outlive the riches generated from the finite natural resources that have for too long been at the centre of economic policy and economic growth in Africa. Jean-Claude Bastos de Morais is an internationally active Swiss-Angolan entrepreneur and innovation influencer and has founded and led numerous businesses over the course of his career.

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Kick-Starting Made-in-Nigeria A major overhaul of Nigeriaâ&#x20AC;&#x2122;s industry is needed in order to reduce foreign exchange pressures and ultimately stimulate economic growth Writer: Emily Jarvis

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igeria’s Federal Government is on the verge of kick-starting the Made-in-Nigeria campaign in a move designed to reduce the current pressure on foreign exchange, strengthen the local currency and stimulate economic growth through local patronage and job creation. This renewed commitment to industrialisation has been many years in the planning, with the abundant oil & gas resources bringing billions of dollars into the economy since the early 1960s. However, these revenues from oil exports have hampered efforts to diversify the economy, leading to industry stagnation and the need to revisit the additional cogs that keep the country turning.

NIRP & NEDP

Dubbed the most ambitious industrialisation programme ever pursued in the country, designed to accelerate growth in those industries where Nigeria has comparative and competitive advantages

Further compounded by the support of the Manufacturing Association of Nigeria (MAN) in May through the creation of its Large Corporation Group, MAN’s President, Frank Udemba said one of the most crucial tasks before the Group is the facilitation of effective linkage between SMEs and largescale industries in the production and supply value chain. “This linkage is critical in the task of making Nigeria a manufacturing hub in the sub-region and beyond,” he said. The commencement of the National Industrial Revolution Plan (NIRP) and simultaneous launch of the National Enterprise Development Plan (NEDP) – announced by the Minister of Budget and National Planning, Senator Udoma Udo Udoma while

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inaugurating the 22nd Nigeria Economic Summit in mid-July – also share similar enablement goals; to increase indigenous manufacturing capacity by operationalising industrial parks, creating free export processing zones and employment. Dubbed the most ambitious industrialisation programme ever pursued in the country, it is designed to accelerate growth in those industries where Nigeria has comparative and competitive advantages; including manufacturing, food processing, agriculture, metals and solid minerals processing, oil & gas, construction and more.

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“We are... calling on all our economic agents to re-orientate to Nigerian made goods and services first, before considering imported products” – Senator Udoma Udo Udoma, Minister of Budget and National Planning

The Government has been very vocal about encouraging local production and this initiative comes on the back of the Public Procurement Act 2007 (amendment bill 2016) passed into law in June, which makes it mandatory for Government agencies to patronise goods made in the country. However, many challenges are on the horizon with strong commitments and fiscal changes required to ultimately make the nation’s efforts a success. With the country currently importing more than 90 percent of raw materials needed in the petrochemical and agricultural sectors alone, it will be a gradual

unemployment is one of the big factors that will drive change and grow President Buhari’s vision for a more diverse industrialised Nigeria. “The Nigeria Industrial Revolution Plan will address age-old constraints that have persistently limited manufacturing. It will build-up industrial infrastructure, prioritise power for industrial use, reduce borrowing costs and mobilise funding for the real sector. It will also facilitate youth training in industrial skills, improve our investment climate, raise our product standards, link innovation to industry, and promote local patronage of ‘made-in-Nigeria goods’,” assured President Jonathan in 2014. Speaking last year while receiving a delegation of foreign investors at the State House in Abuja, President Buhari further backed up his predecessor: “We’ll move very quickly to see what we can do to help you and other investors in the country so that you can

help us to create jobs for our people,” the President said, adding that as part of its plans to reduce unemployment in the country, the Government would pay attention to the rapid revival of ailing and moribund textiles, mining and agro-based industries. This key objective on the economic agenda would be pursued with “the greatest possible dedication”, Buhari emphasised: “I still recall with clarity that at some point, the textiles industry in Nigeria was employing about 320,000 Nigerians. But today, the same industry employs fewer than 30,000 people and the factories operate below capacity or they’re completely closed. “I’ve made a promise to Nigerians that jobs will be created as part of efforts to revive the economy and that promise will be fulfilled. We’ll move as fast as we can to resuscitate the textile and mining industries and also improve production in our agricultural sector.”

JOB

change that will not happen overnight. “We must challenge ourselves to do better,” Udoma said. “By encouraging patronage, we are challenging our manufacturers to invest in the technology required to upscale our quality. We are therefore calling on all our economic agents [Government, corporate organisations and individuals] to re-orientate to Nigerianmade goods and services first, before considering imported products.”

Job creation

Set in motion by his predecessor, Goodluck Jonathan, tackling

CREATION I’ve made a promise to Nigerians that jobs will be created as part of efforts to revive the economy and that promise will be fulfilled – Muhammadu Buhari, President of Nigeria

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The President also assured in 2015 that his Government would encourage investments in agriculture and other sectors by creating a more enabling environment and laws. Within a year of flagging off the new policy, the Government has already attracted around US$3 billion in investments to end sugar imports. Unlike in the past, businesses will now receive generous tax concessions, cheap funding through long-term bank loans and single-digit lending rates from Bank of Industry, thanks to NIRP. The Government is also determined this time to protect

domestic manufacturers from cheap and inferior imported goods and lack of local patronage. Moreover, Government offices are mandated to buy locally made goods. Some industries will also enjoy export processing zone status and provision of infrastructure. In order to ease the burden of chronic power shortage on the manufacturing sector, the private sector is stepping in to boost power generation following the Governmentâ&#x20AC;&#x2122;s divestment last year from former state-owned generation and distribution utilities.

AGRICULTURAL INVESTMENT

The President also assured in 2015 that his Government would encourage investments in agriculture and other sectors by creating a more enabling environment and laws

Change from within

According to the Economic Commission for Africa, prominent local investor and industrial figurehead, Aliko Dangote has already given his endorsement to the new policies; having recently announced plans to commit US$9 billion to a petrochemical industrial complex in Lagos. When completed, it will have, among other things, a petroleum refinery capable of ending current fuel imports and present ample employment opportunities locally. Under NEDEP, it is projected that at least 17 million jobs will be created, assuming that each one of the SMEs

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Petrochemical industrial complex in Lagos

US$9 billion

Aliko Dangote has announced plans to construct a new petrochemical plant in Lagos commiting a sum of around US$9 billion

registered in the country as of 2012 employ one person; which is not a small feat in a country with a 24 percent unemployment rate, according to the National Bureau of Statistics. The vital organs of Nigerian industry still have some major hurdles to overcome before the renewed commitment to industrialisation will take hold. However, the transition back into the former economic powerhouse will have to largely come from within through diversification of its mainstays to prevent Nigeria slipping back into industrial stagnation.

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P R E T O R I A

Considered a quiet getaway from the hustle and bustle of neighbouring Johannesburg, Pretoria embraces the Afrikaner spirit of days gone by Writer: Emily Jarvis

Pretoria midst the jacaranda tree’s purple haze of vibrant blossoms, South Africa’s administrative capital presents a true taste of the country’s rich heritage and fascinating history. A city once at the heart of the apartheid regime, Pretoria is now home to a growing number of black civil servants and foreign embassy workers, who are infusing the city with a new sense of multiculturalism. Considered the lesser talked about city when compared to the wealth and glamour of neighbouring Johannesburg, sedate, leafy Pretoria lies in a warm, sheltered valley surrounded by the hills of the Magaliesberg range;

meaning average temperatures are invariably a few degrees warmer than in Joburg’s metropolis. Pretoria has a beauty all of its own, and the slow pace of life is regarded as a bonus by its residents; many of whom are Joburg commuters who seek a quieter existence, prepared to commute daily rather than live in amongst the hustle and bustle of city life. The profusion of jacaranda blossoms during October and November is the best time to see Pretoria come alive with Spring festivities that best showcase the capital’s Afrikaner spirit and its picturesque urban centre forms a stark contrast to its more chaotic neighbour 56 miles away.

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While it may not be one of South Africa’s most popular tourist destinations, Pretoria makes a fantastic base for a multitude of sightseeing opportunities. Mandatory highlights when visiting the city include the Pretoria Botanical Gardens, the National Zoological Gardens, the Union Buildings; and various museums and galleries that include Melrose House, the Pioneer Museum, Sammy Marks museum and the Voortrekker Monument.

Transport links Unlike other key South African hubs, Pretoria’s transport system is more limited which means the best, safest and most efficient way to get around is by private car hire. There is an excellent network of highways and well-maintained roads in the city, with many car rental agencies located in tourist and business areas to make getting around fairly simple. It is advised to follow the safety directions from the hiring company; keeping the car windows up and the doors locked, never stopping for hitchhikers and never leaving anything visible in the car when it is parked in a secure place. Five national highways – the N1, N3, N4, N12 and N14 – join in the Gauteng region, making it accessible from all cities in the country. However, most national routes are now toll roads, with an e-toll system introduced as part of the Gauteng Freeway Improvement Project launched in 2007, so it is important to research your route prior to travelling. If you are looking to travel further afield, then the highspeed Gautrain rail link is the perfect means of transport between Pretoria, Johannesburg and OR Tambo International Airport. Travellers can access a direct link from the arrivals hall of the latter, serving as a safe

Facts and figures

Country: South Africa Province: Gauteng Municipality: City of Tshwane Languages: 11 including Afrikaans, English, Northern Sotho and Tswana Area: 687.54 km2 Population (2011): 1.76 million GDP (2011): $49.9 billion Currency: Rand Time zone: UTC+2 Dialling code: +27 Internet TLD: .za Founder: Marthinus Pretorius in 1855 (named after Andries Wilhelmus Jacobus Pretorius)

and comfortable way to start your Pretoria journey. It is worth noting that there is also a very extensive network of informal, cheap minibus taxis, mostly used by local commuters. These taxis have a reputation for being unsafe, but this has greatly improved in recent years and most taxis are now relatively luxurious and not overcrowded, except during peak times. Ask locals waiting at taxi stops about regular routes and rates if you wish to have a more authentic travel experience.

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The business end

Known as a tourist-friendly city that caters mainly for the mass market and business travellers, Pretoria also offers numerous advantages to global companies looking to set up shop in South Africa. According to Jim Myers, President of the American Chamber of Commerce in South Africa, nearly half of the chamber’s members are Fortune 500 companies; with 90 percent of them also operating beyond the country’s boarders in sub-Saharan Africa. “The sophisticated business environment of South Africa provides a powerful strategic export and manufacturing platform for achieving global competitive advantage, cost reductions and new market access,” said Myers. In line with this, Pretoria’s growth in infrastructure shows no signs of slowing, with new shopping centres, business hubs and housing complexes springing up in the city’s most lucrative growth areas. With its close proximity

The BMW i8 Protonic Red Edition will be available in limited numbers in South Africa from September, 2016

to Johannesburg, businesses such as BMW South Africa have chosen the outskirts of Pretoria as the perfect manufacturing location. Moreover, the city is home to one of Pretoria Portland Cement’s (PPC) main manufacturing facilities. As South Africa’s leading supplier of cement, PPC is known as one of the most significant names in the construction industry; with a combined capacity – across its Below: Pretoria Portland Cement – South Africa’s leading supplier of cement

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operations in South Africa, Botswana and Zimbabwe – to provide more than seven million tonnes of cement products annually. Preparing the city for the next generation, Pretoria is home to more than 45,000 students studying at the largest and most respected university in the country, and several areas have become student hotspots for these future talents as a result. Ranked fourth in South Africa, the University of Pretoria proudly produces the highest number of graduates in the country every year; 67 percent of whom are from the Southern African Development Community (SADC countries).

Outlook recommends

MUSEUMS

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Ditsong National Museum of Natural History Pretoria Art Museum

Centurion Mall Menlyn Park PHOTOGRAPHY: BEZUIDENHOUT

“Pretoria offers visitors a unique glimpse into a city brimming with history and simultaneously embracing cultural change” – worldtravels.com

NATURE

Pretoria Art Museum

University of Pretoria Museums South African Air Force Museum

Sterkfontein Caves Pretoria National Botanical Gardens (SANBI) The Tree of Wonder

Menlyn Park

Hatfield Flea Market Crawdaddy’s

FOOD & DRINK La Pentola Bistrot BOER’geoisie Pachas Restaurant Mosaic

The Wonderboom (translated “Tree of Wonder” or “Miracle tree”) is a unique 1,000 year-old fig tree found north of the Magaliesburg Mountains in Pretoria

South African Air Force Museum

Groenkloof Nature Reserve WWW.AFRICAOUTLOOKMAG.COM

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Pretoria National Zoological Gardens

Voortrekker Monument

Situated in the Voortrekker nature reserve, this unique monument commemorates the pioneer history of Southern Africa and the history of the “Afrikaner”. The 40-metre tall granite structure houses the Hall of Heroes and Cenotaph Hall and is the most visited heritage site of its kind in Gauteng; considered one of the top 10 cultural-historical visitor attractions in the country. Over the years, the complex surrounding the Monument has been expanded several times and now includes an indigenous garden, For Schanskop and amphitheatre, a Wall of Remembrance and the Arikaner heritage centre.

The oldest and largest zoo in the country, the Zoological Gardens in downtown Pretoria has a collection of wildlife that is second to none; including an extremely rare white tiger, a plethora of unusual insects, a host of large carnivores and the largest inland aquarium in the country. One of the top-rated zoos in the world, it is the only zoo with national status in South Africa, attracting more than 600,000 visitors annually. As you’d expect, the zoo features a full range of tours and programmes, including overnight camping options and moonlight tours.

The Union Buildings

Easily the most famous building in South Africa, The Union Buildings tower over Pretoria city centre serving-up uninterrupted views of the city’s skyscrapers, Freedom Park, the Voortrekker Monument and the jacaranda-lined suburbs. Housing the country’s presidential offices, the architecturally-stunning 285 metre-long building also provides a spectacular backdrop to special events and public gatherings of national significance; including paying respects to Nelson Mandela, graduations and hosting the annual FMX competition.

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Cullinan Diamond Mine Tour and Adventure Zone

A 30 minute drive from Pretoria, the Cullinan Diamond Mine offers an informative glimpse into the operations and history of this historic mine; where the world’s biggest diamond was found in 1905. Cullinan’s main street, Oak Avenue, has a whole host of shops and eateries within the town’s Victorian setting. Somewhat unexpectedly beyond this area of tradition and tranquillity is Cullinan Adventure Zone, home to some of the best adrenaline-fuelled activities in Gauteng; including gorge gliding, abseiling, quad biking, paintball and more.

Jacaranda Agricultural Show

“A mammoth agricultural show that places the spotlight on farmers in the northern part of the country. There are many agricultural competitions and a hoard of interesting exhibitions, relating to the industry. This is an established annual event and is the largest agricultural show in the country.” – Gopretoria.co.za

THE MAIN EVENTS Fijnwyn Food & Wine Festival

“From wine tastings and loads of deli food stalls, to live music and kiddies entertainment, there is something for both young and old to enjoy. You can expect to see a variety of boutique wines from renowned estates across the country, including Vrede & Lust, Creation Wines, Hermanuspietersfontein, Glen Carlou and many more.” – Joburg.co.za

Venue: Tshwane Events Centre Date: Between August and September, 2017 Website: http://www.jacarandashow.co.za

Gauteng Motor Show

“If you are looking for an adrenalinepumping day out, then be sure not to miss out on the Gauteng Motor Show which is jam-packed with a number of activities that will certainly get your pulse racing. In addition to loads of rip roaring activities... visitors can also experience what it’s like to drift with professionals in a safe and secure environment.” – joburg.co.za

Venue: Shokran Events Venue, Pretoria East Date: (‘innie lente’ edition): 24-25 September, 2016 Website: http://fijnwyn.co.za

Jacaranda Festival

“This event is held annually when the Jacaranda trees are in full bloom. It is a rainbow of colours with footstalls, markets and entertainment for the whole family. Flea markets, concerts and shows all make up for an entertaining time ahead.” – Pretoria.com

Date: TBD, 2017 Venue: Rock Raceway, Brakpan, East Rand

Venue: Throughout Pretoria Date: 1-31 October, 2016

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is a leading business-to-business publication promoting and showcasing the leading companies across an array of sectors on the continent. Appearing in both digital and print, the publication is aimed at boardroom members and hands-on decision makers, reaching more than 165,000 business executives. Each month we feature leading companies and business executives by profiling their operations and success stories. Covering areas of best practice, capital investments, the supply chain, innovation and continuous improvement, we aim to promote all that is good about the industry and the region, with your company taking centre stage throughout it all. Producing business profiles across the full range of sectors and every corner of the continent, Africa Outlook is the platform to promote your business success.

Read on for this monthâ&#x20AC;&#x2122;s profiles. Emily Jarvis, Deputy Editor emily.jarvis@outlookpublishing.com

If you want to enjoy the exposure and coverage we can offer, please feel free to contact us to discuss the opportunity further. Tell us your story and weâ&#x20AC;&#x2122;ll tell the world. Matthew Staff, Editorial Director Tel: +44 (0) 1603 959 655 matthew.staff@outlookpublishing.com

ame Z U V A

P E T R O L E U M

ENERGY Everyday As Zimbabweâ&#x20AC;&#x2122;s leading integrated energy company, Zuva Petroleum is now looking to replicate its national success on a regional level Writer: Matthew Staff Project Manager: Josh Hyland

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ore than 80 years of tradition and lineage has transcended into a more recent six years of industry dominance in Zimbabwe, as Zuva Petroleum looks to capitalise on its position as one of the continent’s leading integrated energy companies. Incorporated initially in 1969 under the trading name, BP & Shell, the rich petroleum heritage that comes attached with names of such repute has set the tone for the evolution that has occurred in the decades following, and following a rebranding in 20151 - as a result of both brands leaving the Zimbabwean market - an era for Zuva was ushered in to boost the introduction of local participation in the petroleum industry. “So what has changed? Nothing and yet

everything,” opens the developing market. “Our range includes Company’s Chief Operating Officer unleaded petrol, (COO), Zwelithini diesel, Diesel 50, paraffin, avgas, jet Mlotshwa. “Nothing A1, lubricants, HFO (heavy fuel oil) because the same asset and human and LPG (liquefied petroleum gas),” capital that were a driving force to the Mlotshwa adds. BP & Shell brands are “Zuva has the widest coverage of all still at the Company’s Zwelithini Mlotshwa, COO petroleum companies in disposal through its senior staff members and retail the country. We are represented in every major town and city dealer network. And yet everything, across all our product lines and as local participation in the industry has brought more focus to the we have 10 main fuel terminals, eight LPG terminals, 35 LPG retail contribution of the petroleum sector installations, seven aviation airfields, to the Zimbabwean market.” Now 51 percent owned by local 72 owned service stations, and the biggest lubricants blending plant in stakeholders and 49 percent owned by a leading international commodity Zimbabwe.” trading enterprise, the expansion Boasting such saturation comes with its challenges of course, but and diversification that has taken with infrastructural progression a place since 2011 has been extensive key element of Zuva’s continuous to the point where its three business units comprise the widest range improvement strategy, the scene is of petroleum products in the now set for the Company to not only country; ensuring a portfolio refine its domestic offering further, that can cater for all but to also replicate its success on a specific needs in a broader international scale. “Zuva’s main focus in the next three years is to enter the African region and is currently working on various entry strategies with key partners in the region,” Mlotshwa affirms.

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Fuel Proof

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Fuel storage capacities: • 250, 500 and 1,000 Litres • 1,000 - 3,000 Litres • 4,500 - 10,000 Litres • 12,000 - 30,000 Litres • 40,000 - 60,000 Litres Bunded fuel tanks: • Diesel, AdBlue, Petrol • Jet A-1 and Avgas • Generator tanks • Waste oil tanks • Water bowsers

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For more details on our products please call +44 (0)1524 850685 or visit www.fuelproof.co.uk

uel Proof Ltd was formed in 2000 by business partners Andrew Hargreaves and Roger Pilkington. The Company began by hiring out fuel tanks to companies across the UK, and quickly expanded its fleet to meet the growing demand for safe, compliant fuel storage. Since its inception, the Company has established itself as a leading global manufacturer of fuel storage equipment, with a client base spanning every continent including many of the world’s largest companies, across a vast range of industries; including construction, quarrying and mining, power generation, haulage and agriculture. The product range covers storage capacities from 250 to 60,000 litres, with units available in static, highway and site tow, bulk and containerised configuration, for use with diesel, aviation fuel, petrol, waste oil and water. Each product is available with a choice of dispensing equipment and optional features to suit each customer’s own requirements. Working with a very diverse range of customers has been a key driving force behind the rapid growth and

development of the Company’s product range, particularly given how demanding many of these industries and environments are, as Company Director, Andrew Hargreaves explains: “Each industry we work with places its own unique demands on our equipment, and the window of conditions and environments the products have to operate in is very wide. From temperatures approaching -90°C during an expedition across Antarctica, to the other extreme in regions such as Africa and the Middle East, our products need to be up to the job to keep machines refuelled and projects on time. You couldn’t have a better proving ground for your products. We’ve gained a huge amount of knowledge and experience from all the projects we’ve been involved with, and this gets fed in to the constant development of the range. “A recent example of this is our range of containerised diesel and aviation fuel tanks. These tanks feature an integrally bunded (double skinned) cylindrical tank fitted inside a standard shipping container, which makes them ideal for export. In recent months we have shipped two of these to a customer in Botswana, one unit to an aviation company in Abu Dhabi, and have just finished building a tank for Zuva

Petroleum in Zimbabwe. These units have become very popular for overseas customers, as they require minimal installation or civils work meaning once they are delivered, all that is required is a power supply and they are ready for action.” Another example of rapid product development driven by demanding industries is Fuel Proof’s range of bulk aviation tanks, which have evolved significantly since the range was launched in 2006. Company Director, Roger Pilkington explains: “The aviation industry is the most demanding of all the industries we supply to; it’s a very tough proving ground for any manufacturer. Areas such as reliability and fuel quality are absolutely critical, so every aspect of the equipment has to be optimised and tested rigorously; there can be no weaknesses. Supplying to the aviation industry has been a key driving force behind our product development in recent years, and the great thing for us is that we can pass on many of the innovations and improvements as they are relevant for all the industries we’re involved in. “For example, all aviation fuel tanks are sloping, creating a sump low point allowing all water and condensation to

be easily removed. This has been carried over to our high capacity diesel tanks, ensuring cleaner, dryer fuel, reducing bacterial growth and minimising the risk of damage to vehicles and machinery. The unique overfill prevention system increases safety and minimises the risk of spillage when refuelling. Some of the fuel dispensing equipment we use on the aviation tanks is also carried over, which means better reliability and usability and an increase in efficiency.” By taking the complete production process in-house, from design all the way through to delivery, the company have full control over the manufacturing operation; helping to maximise efficiency and ensure the highest standards of quality of workmanship. In addition, the Company has invested heavily in machinery and facilities at its UK base, including the latest 3D design systems which allow models to be load tested and analysed before production even begins. This software is fully integrated with state-of-the-art machinery in the factory, including a laser cutting machine, press brake, tube bending machine and robotic ‘column and boom’ welding system. Once fabricated, units are pressure and water tested, and then sent to be ‘shot

blasted’ to prepare the surface prior to painting. This process helps the paint form a bond with the tank surface, increasing longevity and durability of the 2-pack coating used on all the products. Tanks are painted in a spray booth which incorporates an oven to ‘bake’ the paint to a super tough, resilient finish. The final assembly stage involves the fitting of fuel dispensing equipment, including pumps, filtration equipment, hose and reels, and fuel metering equipment. This equipment will differ depending on each customer’s requirements; ranging from smaller units with a simple hand operated pump setup, up to more complex tanks with high flow mains powered dispensing systems, advanced filtration, and fuel management systems which provide detailed monitoring of driver and fleet fuel usage. Once the dispensing equipment is fitted, tanks will go through a rigorous testing process to ensure everything is working correctly, before being delivered to the customer.

T +44 (0)1524 850685 E info@fuelproof.co.uk www.fuelproof.co.uk

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Leading supplier

The belief that Zuva can replicate its model outside of Zimbabwe derives from a flexibility and customisability that exists within the business, setting it apart from the majority of competitors. The three business units within the Company ensure that industry trends can be negotiated and that sector slowdowns can be overcome with other strands of the organisation stepping in to take some of the slack. First and foremost across the Zuva offering is its retail subsidiary which accounts for almost two-thirds of the Company’s volumes and profits. Mlotshwa explains: “Zuva operates in excess of 100 service stations in the country, owning 72 of them and leasing the balance through independent retailers. “Through our retail network we employ 1,500 employees and this number continues to grow with additional service station acquisitions. Our retail sites offer a one-stop shopping experience including fuel forecourts, a convenience shop called Presto , LPG dispensing facilities , truck washes and - in selected sites - quick service restaurants.” On a business-to-business (B2B) level, the commercial sector accounts for a further 30 percent of the Group,

again making Zuva the leading provider of petroleum products to a growing number of industries. At present, mining, agriculture, telecoms, transport and energy domains all benefit from the industrial expertise that Zuva brings to Zimbabwe, and the Company has subsequently repaid that faith via vast investments into enhanced sector support; introducing innovative fuel and lubricating storage and dispensing equipment to improve the offering further. The last, but by no means least, addition to the remit hones in on the aviation industry, catering for the final five percent of Zuva’s unparalleled portfolio. “Zuva has the widest aviation terminal coverage in the country,” Mlotswha notes. “With seven aviation terminals we are the leading supplier of aviation fuel in the country and provide aviation fuelling facilities to leading African airlines that land in Zimbabwe. “All of the above business units are supported by an integrated distribution system that includes 10 main fuel terminals, the largest LPG terminal in the country, and a delivery fleet of more than 30 delivery vehicles delivering aviation, LPG and main fuels (unleaded petrol and diesel).”

POWERMEC

t Zimplow we contribute to the national agricultural output, infrastructure development and mineral wealth extraction. Both our largescale machinery and equipment can be seen in action at most of Zimbabwe’s mines, construction works, fields, plantations and estates. We are one of the largest distributors of agricultural, infrastructure and mining equipment in the country. Starting operations in 1939, we now have a number of business units representing major brands such as Massey Ferguson and Valtra tractors, Caterpillar mining and the popular Perkins generators and a variety of other equipment. Zimplow serves a whole range of customers, from large-scale agricultural corporations through to the smallest subsistence farmer anxious to get ahead. We offer premium quality agricultural, infrastructure and mining products, but most importantly, loyal support to all our stakeholders. Zimplow is committed to honour the vision to offer our customers with premium quality equipment and power generation solutions. We are action oriented and offer cutting-edge technology to our customers, providing convenience and value. Together with our customers, we collaborate and service equipment well, in such a way that cultivates the success of our customers. We provide innovative production solutions that maximise output, at the same time setting our customers apart. We are here for our customers today, tomorrow and the future. Zimplow is serious about service. Look out for our business units: Farmec, Powermec, Barzem, Mealie Brand and CT Bolts. T +263 4 754612/19 E powermec@powermec.co.zw

www.zimplow.com

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Official distributor for Perkins parts and engines in Zimbabwe

Powermec are the specialists in providing internationally accepted Perkins generators and genuine parts and provide installation service, maintenance contracts, after-sales customer support and technical advice. Powermec Perkins generators provide standby and prime power to mining operations, agriculture, hospitals, factories, retail, telecommunications systems and other facilities where reliable power is essential with full warranty standard on all power units.

C O N TA CT D E TA I L S 36 Birmingham Road, Southerton, Harare P.O. Box 590, Harare T: +263 4 754612/19 F: +263 4 754623 E: powermec@powermec.co.zw www.zimplow.com

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Products and services Zuva Fuel Card

On March 11, 2016, Zuva Petroleum launched its new Fuel Card that will revolutionise the energy industry. “We value the security and peace of mind of our customers,” Mlotshwa says. “They have a lot to do in a single day and if we can offer them a sense of relief in one aspect, then we know we have done a good job. Our fuel card offers security, convenience and flexibility and because we are passionate about innovation, we will continue to develop these products based on customer needs. “We will achieve this by operating responsibly, executing with diligence, leveraging innovative technologies and continuously seeking new

opportunities for sustainable growth. We are excited about our new products and my sincere hope is that everyone will find them beneficial in their day-today lives.” While this product is new to Zuva, it’s certainly not new to the market. Their competitors have been running these two products for more than three years now and the question is, why has it taken Zuva until now to launch a fuel card? “We have taken our time to craft these two products to suit the needs of our customers,” Zwelithini answers. “Our unique fuel card offers SMS updates at every purchase, online updates on all transactions, and alerts when your fuel account balance is low, ensuring you never run out of credit unknowingly. This aspect is especially important to people that are always on the go. .One of the values of Zuva Petroleum is “curiosity” so it’s no wonder that they will introduce a card with a unique offering. To make life convenient for customers, the card is a complete travel companion, which has two wallets; a fuel wallet and an instant bank account wallet.

Fuels and Lubricants

Across the Group’s fuel and lubricants array, LPG, aviation, lubricants, diesel and petrol are all accounted for, meeting the highest of specs in each case, while developing the extent of each strand on a continuous basis to ensure that all requirements are met within the country. Issues of sustainability, durability, longevity, health and

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LIQUID CONTROL CORPORATION

iquid Control Corporation (LCC) is a Zimbabwean Company formed in September, 2004 to bridge an obviously existing gap in the supply of fuel handling equipment, oil & gas handling and aviation equipment. It has several divisions, facilitating the provision of a wide range of services to the wider fuel, oil & gas industry: • Fuel handling equipment • Road and tanker division • Service station and depots division • Services division • Aviation division • Water division LCC is a popular and established Company with an excellent track record for customer satisfaction. Notable projects completed include the supply and installation of service station pumps to Zuva Petroleum during their rebranding programme. As registered members with the Ministry of Industry and Commerce and the State Procurement Board of Zimbabwe, LCC’s management team are well qualified to control the operational areas of every facet of the Company. The Company complies with the requirements of the workplace health & safety acts. In addition site safety officers are appointed on all projects to ensure that all have personnel with current first aid certification.

T +263 77 627 324 E liqcon@ecoweb.co.zw

LIQUID CONTROL CORPORATION 197 Gravesend Road, Willowvale, Harare P.O. Box ST 578, Southerton, Harare, Zimbabwe Switchboard: +263 777 627 324 / +263 777 627 279 Tel: +263 4 668821, 666110, 666170, 2910999 Fax: +263 4 669302 Cell: +263 712 775 476 /+263 772 385 259 /+263 733 200 502 Email: liqcon@ecoweb.co.zw / liqcon@africaonline.co.zw

Liquid Control bridge the gap in the supply of fuel handling equipment, oil handling and aviation equipment. SERVICES » Service station design & construction » Depot design, rehabilitation and construction » Pipeline cathodic protection » Service station maintenance » Pump services » Tank calibration » Tank & line testing

AVIATION » ROAD & RAIL TANKER EQUIPMENT » SECURITY SEALS » LUBRICATION EQUIPMENT » SERVICE STATIONS & DEPOTS » SCALES DEPARTMENT Proud to work alongside Zuva Petroleum in the supply and installation of service station pumps during their rebranding programme.

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safety, the environment and of course quality are all taken into account throughout, as the quest for cleaner, higher standards of fuel are strived for, for the betterment of both the Company and the industry. Kozanai Munerenyu, National Key Account Manager says: “At Zuva, we aim to give our customers the best products. We encourage our customers that each time they fuel their car, they get their oil checked to ensure that the quantities are right. The main function of lubricants is to reduce wear, to clean, inhibit corrosion, improve sealing, and cool the engine by carrying heat away from moving parts, which is crucial in increasing longevity of your engine. Godfrey Madanha, LPG Business Manager continues: “We pride ourselves in the care we take with our cylinders to ensure that the product the customer purchases at the end of the production line is of utmost quality and safety.”

FRAZIER SHIPPING Presto

The final - and perhaps the most dynamic - of Zuva’s products is its state-of-the-art convenience one-stop shop, Presto; delivering “an unmatched fast, fresh and friendly service at competitive prices”, as the business promotes. “Shopping made magical, PRESTO is used to create anticipation and excitement,” Zuva continues. “This is exactly what we want to bring to our customers; a shopping experience so simple, so convenient, yet absolutely magical! “The introduction of PRESTO shops in the Zuva network is a reaction to the changing trends and preferences of our clients in a fast-paced and time-starved environment. The introduction of PRESTO follows a successful rebranding exercise of the Zuva forecourts and will complete the transformation of Zuva service stations to service centres.”

The shepherd of logistics Once upon a time, there was a strong and brave shepherd. So strong he was that he fought lions and bears to protect his father’s sheep. So determined he was that he practiced throwing stones in a sling until he could strike the exact place he aimed for. So brave he was that he conquered the great Goliath with a stone from his sling. So great he was that, David was anointed as King. Guided by this biblical philosophy that has bolstered its work ethic and dynamism during the economic downturn, Zimbabwe-based logistics expert, Frazier Shipping offers attractive customs clearing, freight forwarding, warehousing, logistics and allied services for clients seeking sustainable growth. “Underpinned by superior services, operational efficiency and environmental sustainability for more than 10 years has led to greater and more secure earnings as epitomised in our slogan; ‘shepherding your shipments’,” said the Company’s Board Chairperson, Bridgitah Jameson. “Serving the agro-processing, mining, health, retail and transport sectors, we are proud to have worked with several big brands in Zimbabwe, among them ZUVA Petroleum who, through our commitment to excellence, have a highly visible, well recognised and respected brand; a feat we continue to defend and protect,” the Company’s COO, Brian Chikuruwo added. “Our unrivalled experience and industry insights enable us to create business volume and value for clients who seek end-to-end supply chain solutions. Our extensive customs clearing network allows for ubiquitous accessibility of products and services to all our client’s customers in Zimbabwe and beyond.” Customer Hotline: +263 772 670 004 Operations: +263 731 002 333-5 E frazshipping@gmail.com E customs@frazier.co.za

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Amhlope! Congratulations! Makorokot Amhlope! Congratulations! Makorokoto! Board Chairperson Management & Staﬀ Board Chairperson, Management & Staﬀ COO

COO

The Board Chairperson, Mrs Bridgitah Jameson, Chief Operating Officer, Board of d BoardManagement Chairperson,&Mrs Bridgitah Jameson, Chief Operating Boardtoofcongratulate directors, Staff of Frazier Shipping Zimbabwe Pvt Officer, (Ltd) wishes nagement & Staff of Frazier Shipping Zimbabwe Pvtof(Ltd) wishes Revenue to congratulate ZUVA Petroleum Pvt (Ltd) on the attainment Zimbabwe Authority Tax pa VA Petroleum Pvt (Ltd) on the attainment of Zimbabwe Revenue Authority Tax payers Appreciation Awards in of the following categories: reciation Awards in of the following categories:

Amhlope!

Congratulations! Makorokoto!

Compliant Contributors HighestHighest Compliant Contributors

The Board Chairperson, Mrs Bridgitah Jameson, Management & Staff of Compliant Growth (Customs) HighestHighest Compliant Growth (Customs) Frazier shipping Zimbabwe wish to congratulate ZUVA Petroleum Pvt Highest Compliant Growth (Overall) (Ltd) on the attainment of Zimbabwe Highest Compliant Growth (Overall) Revenue Authority Tax Payers Appreciation Awards in the following Excise Excise Duty Dutycategories:

Excise Duty (National) Excise Duty Excise Duty (National) Excise Duty (National) Highest Compliant Contributors

Frazier shipping cherishes your altruistic role in Highest Compliant Growth (Customs) Frazier is proud to partner a giant in improving the welfare of the less fortunate Highest Compliant Growthmembers (Overall) social standing trendsette of our society, integrity, which role will be greatlyand enhanced Weyou are proud proud partner We are toexploiting partner a a giant giant in qua we are alsoto those by theIndirectly knowledge have amassed. in integrity integrity and trendsetter trendsetter as ours as like and minded corporates.

shipping & antatives

ZI M FRAZIER

IS CIAL TS

E SP

frazshipping@gmail.com Address: customs@frazier.co.zw Office 118, Block 2, Long Cheng Complex,+263 Cnr. Samora Machel Customer Service Hotline: 772 670 004 & Mutleybend, Harare, Zimbabwe Operations:+263 731 002 333-5 Customer Service Hotline: +263 772 670 004 Operations: +263 731 002 333-5 frazshipping@gmail.com/customs@frazier.co.zw Oﬃces & Represantatives frazshipping@gmail.com / customs@frazier.co.zw Harare, Bulawayo, Gweru, Beitbridge, Mutare, Chirundu, Nyamapanda, Hwange, Chiredzi E SP

E CUSTO BW MS

Offices & Representatives Harare, Bulawayo, Gweru, Beitbridge, Mutare, Chirundu, Nyamapanda, Hwange, Chiredzi

E CUSTO BW MS BA

i i ...Shepherding your sheepments. ...Shepherding your sheepments.

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STANSERV

tanserv Genuine Services (Pvt) Ltd is a specialist volumetric calibration and fuel management services provider, offering supply, installation and maintenance of petroleum equipment and tanker cleaning/degassing. We adhere to all international standards and using the latest technology allows us to guarantee accuracy and quality. For organisations where lubricants, fuels and optimum/accurate processes tend to be critical to profit/loss, we are the service provider of choice, being first for all forms of wet stock accounting and volume measure. Our demanding and extensive clientele base would expect nothing less! T +263 4 613 344/613 613/613 711/613 729 E info@sgs-stanserv.com

Mr Bethwell Gumbo, CEO and Mr John Mushayavanhu, Chairman, presenting a fuel cheque for the year to Maureen, Kidzcan

Transformation projects

Naturally, as one of the country’s largest organisations, Zuva’s national footprint is extensive, and as the saturation continues to grow and its service stations continue to expand, so too do the Company’s marketing campaigns and associated projects; epitomised by its franchising programme. “The franchising initiative is part of our commitment to develop indigenous entrepreneurs by offering them an opportunity to manage and run service stations in the mainstream of economic activity,” the Company emphasises. In just the past two years, the transformation that has been seen within the business from the remnants of BP & Shell’s influence has comprised as much as US$20 million being injected into key structural areas of the organisation. From a rebranding perspective, this has involved an entire overhaul of its

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Zuva has also invested in LPG installations at strategic sites around the country to meet the growing demand for LPG

www.sgs-stanserv.com terminals, delivery trucks and service stations into the new-look, green Zuva identity that is so synonymous within the country today. “The project involved transforming not only fixed assets but also mindsets of staff and forecourt attendants,” Mlotshwa notes. “We also had to change the ERP we had used for more than 15 years as it was no longer adequate to meet the growing needs of both the Company and the clientele it serves.” The next phase witnessed a change within its fleet structure, veering away from an outsourcing methodology to ensure more engaged communication throughout the business via an in-house strategy that has led to numerous benefits across aesthetic, cost and customer service indicators. “Zuva has also invested in LPG installations at strategic sites around the country to meet the growing demand for LPG,” the COO continues. “This investment has seen volumes of

VOLUMETRIC CALIBRATION Road/Rail tanker, Ullage Bar, Vertical/Horizontal Tanks, Fuel Pump/Dispenser, Bulk Flow Meter, Etc

VOLUMETRIC CALIBRATION SERVICES & VOLUMETRIC CALIBRATION SERVICES FUEL MANAGEMENT SOLUTIONS

VOLUMETRIC CALIBRATION AND FUEL MANAGEMENT SERVICES & 595 Simon Mazorodze Road, Waterfalls, Harare MANAGEMENT P.O. Box AYFUEL 128, Amby, Harare, Zimbabwe SOLUTIONS www.sgs-stanserv.com 595 Simon Mazorodze Road, Waterfalls, Harare

ESSENTIAL SERVICES Tanker Degassing, Pressure Testing, Hydro leak Testing, Road Tanker Cleaning, Fuel Monitoring, Inspections and Custodial services

SUPPLY, INSTALLATION & MAINTENANCE Bulk Flow Meters, Couplings, Loading Arms, Fuel Pumps/ Dispensers, Filtration Systems, Ect

FUEL MANAGEMENT SOLUTIONS Forecourt Solution, Fleet Solution, Lube Solution, Terminal/Depot Automation

P.O. Box AY 128, Amby, Harare, Zimbabwe

d Ofﬁce: ax: (+263 4) 613 613, 613 729 (+263) 772 349 467 ail: info@sgs-stanserv.com

Calibration Bay: Truck Wash Bay/ Degassing Bay: Tel: (+263 4) 613 711www.sgs-stanserv.com Tel: (+263 4) 613 344 Cell: (+263) 772 283 838 Cell: (+263) 772 421 901

Head Ofﬁce: Tel/Fax: (+263 4) 613 613, 613 729 Cell: (+263) 772 349 467 E-mail: info@sgs-stanserv.com

Calibration Bay: Tel: (+263 4) 613 711 Cell: (+263) 772 283 838

Truck Wash Bay/ Degassing Bay: Tel: (+263 4) 613 344 Cell: (+263) 772 421 901

BUSINESS HOURS Monday - Sunday SUPPLY | INSTALLATION | MAINTENANCE | CALIBRATION 0800hrs - 1700hrs

BUSINESS HOURS DISTRIBUTOR OFFICIALOFFICIAL DISTRIBUTOR Monday - Sunday 0800hrs - 1700hrs OFFICIAL DISTRIBUTOR

Head Office: Tel/Fax: (+263 4) 613 613, 613 729 Cell: (+263) 772 349 467 E-mail: info@sgs-stanserv.com

Calibration Bay: Tel: (+263 4) 613 711 Cell: (+263) 772 283 838

Truck Wash Bay/ Degassing Bay: Tel: (+263 4) 613 344 Cell: (+263) 772 421 901

www.sgs-stanserv.com

SUPPLY | INSTALLATION | MAINTENANCE | CALIBRATION

(L-R): Zwelithini Mlotshwa, COO of Zuva Petroleum; John Mushayavanhu, Zuva Chairman; Doctor John Mangudya; Bethwell Gumbo, Zuva CEO; Ketan Joshi

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MOYO AND JERA

stablished in 2011, Moyo and Jera is a highly focused commercial legal practice, offering a wide range of expertise and skills. Valuing all our clients, we tailor solutions to suit their particular needs. Having been founded on the principles that law drives commerce, we constantly aim to add value to our clients by giving them legal solutions which result in the best outcome. Zuva has been one of our founding clients and we value the relationship which has been maintained over the whole period to date. We are proud to be associated with their brand.

T +263-4-708056/7 E office@moyoandjera.com The beautifully decorated interior of PRESTO Montagu

LPG grow from 24 tonnes in 2014 to 1,500 tonnes in 2015. “Finally, and most recently, 2016 saw the launch of our new convenience offering, Presto, with two sites having been completed. Zuva plans to rebrand 10 extra sites by the end of the year and offer a one-stop shopping experience.

Beyond compliance

As well as the rapid improvements witnessed by an expectant customer base externally, the extent of internal enhancements being made behind the scenes at Zuva over the past five years have been equally comprehensive, putting in place a host of new and upgraded processes and systems to facilitate the Company’s plans for future growth. From a technological perspective, the introduction of the Zuva card is indicative of the kinds of interactive, communicative and smart processes that Zuva is looking to instil within

its offering; compounded by the aforementioned ERP revamp which has allowed for instantaneous monitoring of the KPIs that drive the business. New state-of-the-art pumping equipment has also been introduced to all of Zuva’s sites as part of its capital expenditure blueprint; ensuring not only the ongoing evolution of a business in demand, but the ability to cope with some of the most pressing industry demands affecting the region at present. “The major trends being monitored by Zuva to stay ahead in the petroleum industry include oil prices, the exchange rate and regulatory frameworks,” Mlotswha states. “With the former, procurement at the correct prices translates to competitive prices in the market, which translates to volumes and market share. “Meanwhile, the exchange rate has become important in a multi-currency regime and our finance team ensures

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THROTTLE CLOTHING

ver the past twelve years, Throttle Clothing has grown to become a major clothing manufacturer, supplying both Zimbabwe and the region. The Company now offer a wide choice of various clothing wear that can be specially tailored to each client’s specific requirements. With a large factory based in Harare and a new dye-sublimation printer, we are ready to supply every clothing request. Harare: Unit 7, 1st Floor, Kelvin Corner, Graniteside. T: +263 4 759040-2|+263 772 417 411 E: sales@throttle.co.zw Bulawayo: Shop 6, Ascot Centre, Ascot, Bulawayo. T: +263 773 240917 E: tracy@throttle.co.zw

www.throttle.co.zw

Moyo and Jera are pleased to be associated with Zuva Petroleum offering our legal expertise and hope to be partnered with them for many years to come as the Zuva brand continues to grow and conquer the market.

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that we are not affected by exchange losses. “Finally, regulatory frameworks have been changing greatly over the past two years and Zuva has been fortunate to be endowed with a lot of skills in the petroleum sector, allowing us to stay ahead of any regulatory introductions. Zuva has consistently gone beyond compliance.” A more continual trend being addressed is in the area of sustainability, recognising that “people, planet and profit together form the foundation of Zuva’s longterm growth and success drivers”, as

“Have you ever noticed how when the morning sun rises, it explodes in brightness and the world suddenly comes alive with renewed hope? Every single morning, the effect and impact of the sun is different and yet so familiar? This is who we are as Zuva. We are an organisation that is consistently searching for different and revolutionary means of making energy provision simple and basic but with an all-familiar customer service excellence experience that Zuva customers have become accustomed to.” – Mr. Bethwell Gumbo, Chief Executive Officer, Zuva Petroleum

its website emphasises. “This implies that, as a Company, we find the right balance between environmental prudence, financial growth and social investment in all the decisions and activities we undertake.”

Leadership position

Driving every new unveiling, every rebranding, every upgrade and every Zuva philosophy is a team of employees whose commitment to perform to the highest standards has been rewarded by a Company who

gives each individual the responsibility and trust to bring their own ideas and innovations to the fore. To do this, Zuva’s training and progression ethos is of paramount importance, while also addressing areas of corporate social responsibility and by giving priority to local skills where possible. Mlotshwa says: “A number of inhouse programmes and contracted services are developed to improve the skills of our staff. We make use of advanced performance management

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tools in identifying any training needs.” This culture of internal efficiency continues within the business’ formulation of business partnerships and its supply chain management structure - despite the lack of local resources on this front - as the COO continues: “Cost and quality have become fundamental aspects of the supply chain, especially in a business environment with declining volumes and margins. “The bulk of our product is sourced internationally as Zimbabwe is not an oil-producing nation and Zuva’s focus is on downstream procurement and then interfacing with the supplier at a local level. Operational efficiencies are easy to determine and manage as they are controlled in-house.” Combine all of these facets, and Zuva has an organisation which, only after six years, has a structure conducive to achieving its main vision of being an energy brand of choice in Zimbabwe, and a mission of serving customers with excellence and innovation.

The leader in Customs Clearance and Logistics Services Specializing in oil & gas engineering, mineral processing & consultancy and fluid flow control systems.

Established in 1990 as a Customs Clearance company. Duly registered and headquartered in Harare, Zimbabwe, SBS business provides a full supply chain service for the handling of imports and exports of goods through sea, air, rail and road in Zimbabwe and the region. The company’s structure is designed to provide our customers with a 24/7 service to satisfy their needs at an optimum cost. HARARE OFFICE

Sandringham drive, Alexandra Park, Harare Switchboard: 04 798959 / 799008 / 250731-2 reception@sbsgroup.co.zw www.sbsgroup.co.zw

And it is this latter notion which the Company hopes to optimise further in the years to come, in order to enjoy the same rapid growth outside of Zimbabwe too. “Innovation has been the major differentiator at Zuva, scoring a number of firsts in the industry,” Mlotshwa concludes. “The introduction of the Zuva card with two wallets and the fleet management system has set Zuva apart from all other players. This was coupled with being one of the first companies to introduce Diesel 50 in the market. “Our retail LPG installations are a first of their kind in the market and have made Zuva the leader in the LPG industry. Our Presto offering incorporating Wi-Fi hot spots, CCTV, delicatessens, and a grocery offering also makes our convenience offer a cut above the rest. “Our main focus in the next three-five years is regional representation. We have made our mark in Zimbabwe and aim to replicate our leadership position in other regional markets.”

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ame N A M C O R

Creating Value through Strategic Investment NAMCOR is facing Namibiaâ&#x20AC;&#x2122;s looming energy crisis head-on through the Kudu Gas-to-Power project and subsequent diversification strategy to regain stability in challenging times Writer: Emily Jarvis Project Manager: Josh Hyland

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y adopting a strategy of consolidation to foster a stricter focus on financial performance and Namibia’s energy needs, NAMCOR is hoping to create value through the discharge of its mandate as the national oil company in a bid to remain sustainable during the oil crisis. Oil prices have dropped significantly while dealer margins and fuel levies in Namibia are on the rise, as NAMCOR’s Chairperson, Johannes Gawaxab alluded to in the Company’s recent annual report: “In every crisis innovation is born. The oil price has dropped significantly during the review period due to sluggish global growth, while Namibia is entering a period where it needs to make important decisions regarding its future energy needs and in particular regarding the development of the Kudu Gas-toPower project.” Focusing on prioritising projects, operational excellence and governance, the Company is showing good progress consolidating its upstream and downstream activities while retaining a strong value proposition to its partners across various market sectors; including mining, construction, commercial road transport, manufacturing and agriculture. “NAMCOR’s operating environment remained rather challenging...with a decline in crude oil prices as a result of continued growth in global inventories. Our operations were also affected by the fall in oil prices. Global economic activity and volatility in exchange rates also added their fair share to some of the uncertainty in the current environment,” said Gawaxab. “[Ultimately,] the country needs to make crucial investment decisions regarding its energy needs.”

Kudu Gas-to-Power project

Leveraging its diverse range of skills

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N A M C O R

and longstanding partnerships in the upstream segment, NAMCOR has placed emphasis on diversifying its offering in order to combat Namibia’s looming energy crisis; as highlighted by its 44 percent share in the N$35 billion Kudu Gas-to-Power project. Touted as the answer to the country’s electricity needs, this lucrative opportunity for NAMCOR and the Namibian Government promises to provide 400MW of much needed power locally, and an additional surplus of between 100-300MW which would be purchased by Eskom South Africa and Zambia’s Copperbelt Energy Corporation. “NAMCOR seized the opportunity presented by the low oil prices to acquire services to the Kudu Gas project at reduced rates. The situation also enabled upstream and downstream partners to reach consensus on a gas price, following months of negotiations. NAMCOR continues to enjoy an 85 percent participating interest in hydrocarbon

NAMIBIA

Location of Kudu Gas Field

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The Company continues to play a significant role in community upliftment through various corporate social responsibility interventions

exploration licenses,” affirmed Gawaxab. “The strategic importance of Kudu to Namibia cannot be overemphasised, as it will ensure energy security for achieving the targets of Vision 2030 and NDP4 [and] will realise the macro-economic benefits of a gas resource [that] will ensure Namibia’s electricity tariffs remain competitive.” On-track to produce first power at the start of 2019, the 1.4 trillion cubic feet of gas produced from the Kudu Gas Field will be transported through a 170 kilometre pipeline to a power station situated at Uubvlei, strategically located approximately 25 kilometres north of Oranjemund in southern Namibia. According to the website, NamPower and its partners will be responsible for the purchase of the gas, the design and construction of an 885MW combined cycle gas turbine that will be utilised for the generation of electricity.

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Business Continuity Plan

Based on the successful positioning of NAMCOR in playing its rightful role in ensuring security of supply of oil and related products and to accelerate upstream exploration, the Company has deployed a six-point interim strategy revolving around improving upstream exploration and the development of Kudu Gas-to-Power. “[We hope this will] improve reach and profitability of our downstream operations and prepare NAMCOR to restore its 50 percent import mandate,” added Gawaxab. Elsewhere, the Company is continuing to invest in its people, a comprehensive HSEQ policy, and strengthening its governance and control environment, as well as assisting national efforts regarding storage facilities. Supported by a fully-fledged Business Continuity Plan (BCP) to guide NAMCOR through these challenging

The Company is continuing to invest in its people

times, Gawaxab is confident in the steps the Company is taking on the path back to stability; further summarising that its strategy also benefits the wider community: “The Company continues to play a significant role in community upliftment through various corporate social responsibility interventions. These included donations for the setting up of recreational facilities for the David Shingo Combined School, computer equipment to the Gobabis Combined School, a career fair for high school learners, sewerage facilities for the elderly and the disabled as well as food for the elderly among many others.”

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ame AFRICAN UNDERGROUND MINING SERVICES (AUMS)

Excellence Continent-Wide A Model of

African Underground Mining Services has successfully instilled its contractor mining model into the continental landscape over the past decade and is being rewarded for its efforts via key projects in Burkina Faso, Tanzania and Ghana in 2016 Writer: Matthew Staff | Project Manager: Arron Rampling

frican Underground Mining Services (AUMS) is celebrating almost 10 years in Africa via a series of ongoing, forthcoming and prospective projects – continentwide – which are set to cement the Company’s prominence in numerous regions’ mining domains; compounded by a nationalisation strategy that is set to ensure long-term sustainability for the business. While the industry situation has left much to be desired globally, AUMS’ business model uniquely positions itself to benefit in times such as these, taking the pressure off organisations looking to move into the continent via a plethora of different outsourced operators, by offering a value-for-money, quick, mobile, one-stop shop gateway into the continent. As such, the Company’s success over the years – since moving into Africa via a joint

venture in 2007 – has derived from its success in carrying out underground mining contracts for both local and international clients looking to formulate quick and holistic works with a limited physical presence on the ground themselves. The past 12 months especially have epitomised this ability and the

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Blair Sessions, Chief Operating Officer (COO)

subsequent prominence that AUMS has been able to establish across both West and East Africa; with two defining projects underway, and a third on the horizon. “2015 was pretty good for AUMS. We won three of the four contracts available for the Group – including new projects in both Tanzania and Ghana – as well as achieving internal growth at our other sites previously touched upon last year,” affirms the Company’s Chief Operating Officer (COO), Blair Sessions. “We have embarked on an intensive capital programme which will realise benefits through new technologies at our upcoming operations and we look forward to rolling out these technology improvements to all our sites in time. “Our revenue continues to grow through contract awards and organic growth in the operations we are involved with, and ‘almost all operations’ are in the growth phase, with scope in the near-term; doubling and sometimes tripling the current activities at our sites.”

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M I N I N G

S E R V I C E S

( A U M S )

All of this comes despite working under a model that remains largely underused and previously unfamiliar on the African continent. With traditional methods usually following an owneroperating ethos, the willingness to embrace the notion of contractoroperated mining works has taken some coercing by AUMS over the past decade, but Sessions believes that inroads have been made to this end; especially during cost-cutting times that have been endured more recently. “Industry trends are still all about cost cutting at the moment,” he says. “The foremost driver for the industry remains ‘how do we drive down our costs?’ But there is now a bit of sunlight on the horizon and we’re starting to see activity in the market that’s a bit more positive compared to the end of last year.

Yaramoko mine

Much of this acceptance derives ...there is now a bit of sunlight on the horizon from the Company’s ability to instil a strong sense of indigenousness into and we’re starting to see activity in the its operations, finding a right mix market that’s a bit more positive compared to the within the workforce to ensure longterm sustainability and wider social end of last year enrichment from a skills development perspective. Such a philosophy can be attributed to AUMS’ early successes in Ghana, “Certainly, gold project metrics and is now being replicated in each are now far more favourable than new project undertaken; especially in they were, and it’s a case for us of Burkina Faso where one of its flagship maintaining our key focus on delivering projects continues to go from strength premium performance, by achieving to strength. higher physicals, driving down unit “The Yaramoko mine in Burkina costs for our clients, and allowing Faso is a Roxgold operation, part expenditure in other areas where it of an exciting, Greenfields complex may not have previously been possible; which represents their first operation such as in exploration for example. in Africa. We have been contracted to “Subsequently, while it’ll always be establish and operate the underground a challenge to break companies out of operations, in close cooperation their traditional methods, there is now with the client, which has been a real an acceptance of what we do in the success story for the whole team Focused on delivering premium performance marketplace.” collectively.

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upply Direct provides industrial products, global procurement and supply chain management services with offices in Australia, United Kingdom and South Africa. As a products and services provider, Supply Direct knows that no matter what industry you operate in, supply chain effectiveness is a key part of your success. This is why Supply Direct combines its extensive industrial product offering with a range of services to support your supply chain. With Supply Direct as your industrial distributor, you will not only benefit from a world-class product offering, but also from dedicated procurement and supply chain management services. This will reduce your costs, increase your productivity and leave you free to focus on your own core competencies to grow your business. Wherever you are in the world, no matter how remote, we will deliver what you need, when you need it. Our clients range from major mining companies in remote Africa to underground mining and drilling contractors in Australia to facilities in Southeast Asia and Eastern Europe. We have access to a comprehensive range of products & equipment in warehouses across the globe and provide supply options based on lead times, currencies and availability to suit your individual requirements. Supply Direct is your partner to improving productivity, efficiency and cost reduction.

African Underground Mining Services (AUMS) is not only a subsidiary company to Supply Direct but has been a valued customer from inception. As both organisations have a common goal in terms health and safety,

environmental impact, efficiently delivering the products to our customers, and importantly sustainability. The inherent symbiotic relationship between Supply Direct and AUMS is what makes us leaders in both our market segments. Further to our customer interaction is our relationship with our manufacturers, OEM’s and global dealers. Our model is to bring together our suppliers and customers and therefore our suppliers are as important to us as our customers, the balance is critical. A prime example is one of our longstanding OEM’s, Steel Blue, a premium safety shoe and boot manufacturer. This mutual business relationship has taken us to a next level in the supply of PPE to our respective customers. Steel Blue’s philosophy and commitment to our end user is simple, if you work on your feet all day, comfort is absolutely essential. So whatever game you’re in, demand the 100 percent Comfort of Steel Blue work boots. At Steel Blue, we are dedicated to providing you with the most comfortable work boots available. In fact, by utilising the latest technology, Steel Blue boots are similar in quality and flexibility to high-performance sports shoes. Steel Blue not only meet the world’s highest safety standards; we also produce a range of boots with legendary levels of comfort. That’s why we offer a 30-day money back comfort guarantee on every style in our range. No arguments: just a rock solid promise to stand 100% behind our product.

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“As part of our remit, we have supplied and installed the power station and infrastructure associated with establishing the underground operation, and then together we share the technical services aspect of the operation where we combine to deliver best-for-project practices, in terms of engineering, design, scheduling and implementation,” Sessions explains. “This is now to the point where we’re into the ore and have delivered the two key milestones for the project two and three months ahead of schedule respectively. “The mine is up and running and is a success story in the marketplace, with it going on to be stronger and longer in 2017 and beyond.” Not without its challenges, AUMS’ work at Yaramoko has made up for delays in order to establish the decline and further developing ahead of target to establish the mine to a state of production two months ahead of schedule.

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The mine is up and running and is a success story in the marketplace, with it going on to be stronger and longer in 2017 and beyond

The ability to move seamlessly from its base in Ghana has gone a long way to facilitating exponential growth

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( A U M S )

Sessions continues: “This has been of great benefit to Roxgold who were also ahead of schedule with their mill, so have been able to get started earlier than they told the market and had planned for. This brings down the cost curve for them and had similar benefits for the national Government and the local communities too. “Now that the mine is in full production and delivering substantial benefits to all concerned, the possibility for expansion of the project is real, and with exciting prospects on the lease for Roxgold, organic growth at the operation is expected.”

Geita gold mine

The ability to move seamlessly from its original base in Ghana to neighbouring West African nations like Mali and Burkina Faso has gone a long way in facilitating the Company’s exponential growth over the past 10 years. However, Sessions has always maintained that a service such as AUMS’ has no jurisdictions when it comes to geography, and this notion has more recently been put to the test via a much more expansive migration into Tanzania. The COO notes: “We were awarded the Star and Comet contract at Geita gold mine in Tanzania on behalf of AngloGold Ashanti; a large, fantastic complex with plenty of scope in the underground sphere. “We were awarded that in November and we started the mine in late January, and that has been a major success story in terms of how quickly we were able to mobilise into a new country.” While Tanzania is one of the continent’s more accomplished mining jurisdictions, the physical logistics of crossing eight countries to set up a presence in a new nation inevitably comes with complications, but these were rapidly overcome as AUMS relied on the same model that has already proved so lucrative to the west of the continent.

“It was an intensive start-up with a somewhat ‘Greenfield’ site in terms of the underground set-up we went into a pit with three portals and three declines which meant a significant amount of infrastructure was established,” Sessions continues. “It was a very successful start-up as part of a fantastic complex, one of AngloGold Ashanti’s flagship operations.” As just the first underground section of the total complex, the scope for further development and contracts is vast for AUMS, with announcements set to be made soon surrounding future expansion. The initial achievement of mobilising in a new country so quickly and effectively, however, is evidence enough that the Company really can replicate its model on an equally fruitful basis, anywhere on the continent; embracing not just the logistical challenges of migrating so far afield, but also the regulatory,

The expansion in Geita with AngloGold Ashanti is an enormous focus for us moving forward

governmental, and nationalisation considerations that need to be made when entering a new jurisdiction. “The expansion in Geita with AngloGold Ashanti is an enormous focus for us moving forward. The underground aspect of Geita is the next phase, with the underground scope to potentially increase significantly in the near-term, compared to what was originally scheduled, it will continue to be one of our main areas of focus in the coming years,” Sessions sums up.

Growth across borders

The notion of international migration may sound complicated, especially across such a widespread continental footprint, but the AUMS model is every bit as conducive to such broadenings as it is to harnessing the effects of the industry downturn at present. As such, the Company hasn’t found moving into Tanzania any more difficult than its previous forays into new West

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Feel at home in the middle of nowhere

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www.fea-catering.com Faladie, 6448 Avanue de Iâ&#x20AC;&#x2122;OUA BP E 1160 Bamako - Mali

Catering: Maintenance: Logistics: Constantly evolving menus with a wide variety of food are on offer. Special menus are offered for celebrations and events that apply and respect the HACCP standards and religious customs.

Maintenance and repairs to buildings, vehicles and associated equipment, with followup processes in place. Other services we offer include water and waste treatment and pest control.

All our transportation routes are temperature controlled, with our equipment and supply chain ready to adapt to changing conditions.

Pierre Zghaib Managing Director tel: +223 66 75 01 30 e-mail: pierrez@fea-catering.com Hubert Hayek Business Development Manager tel: +221 77 333 06 30 e-mail: hhayek@fea-catering.com

Fire safety: Personnel training is offered as well as control and follow up of monitoring tools, and replacement of extinguishers where required.

Hotel Management: We offer management of different accommodations, with additional housekeeping services.

Quality Catering Services Leisure:

Equipment:

Access Control: Medical: Gardening:

A range of leisure activities can be implemented in living compounds, on site shops, bars and clubs. We also offer installation and management of TV circuits and room equipment.

All types of equipment are purchased and supplied, along with installation, testing and after-sales customer service.

Trained technicians are on hand with their own specific hotline to control access to different areas.

All necessary medical needs are attended to, with focus on upgrading equipment and training where necessary.

Maintenance of gardens, offering treatment and pest control where needed.

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African domains, and was further aided to this end by its sister Company, AMS’ exploits in the country previously. “The projects in each part of Africa are still bubbling along and we can showcase each of these operations to clients in providing an understanding of what we can do, in line with what they’re trying to achieve,” Sessions states. This same principle applies to all future and potential projects, relying on AUMS’ experience in Africa to conduct works where they themselves may have never had a presence, or require a more comprehensive solution. Sessions adds: “That’s what we’re trying to do with every project. We remain headquartered here in Africa and a group with a corporate office in London, New York or anywhere in the world can come and tap us on the shoulder and ask us to get things started for them.

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AUMS looks to retain strong business relationships where possible

The projects in each part of Africa are still bubbling along and we can showcase each of these operations to clients in providing an understanding of what we can do, in line with what they’re trying to achieve

80 percent Across its entire Burkina Faso operations, AUMS is operating with an 80 percent national workforce with half the remaining staff members comprised of African expatriates

( A U M S )

“We provide a great opportunity for institutions like these to get involved in a lucrative continent like Africa.” In turn, AUMS’ international expansion has facilitated similar growth for some of its longest standing and most significant business partners, as the Company looks to retain strong business relationships where possible and to re-utilise successful supply chain partners when the opportunity arises. “A lot of our local partners are expanding with us,” Sessions confirms.

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“If they can offer us that same service in different countries then that’s the easiest way to go; especially in West Africa where all the countries sit next to each other. A lot of our service providers can grow across those borders. “Tanzania has obviously been more of a significant step, so it’s harder for them to join if they don’t have an Africa-wide presence already, but we try to bring them along with us if possible. If we can continually develop our supply chain management strategy where we’re getting the best deal in all countries, it can only be of great benefit to us, our suppliers and our clients.”

Nationalisation programmes

Paramount across the business’ entire structure and ongoing success is the ability to not just be a continent-wide operator, but to establish a strong local ethos in each individual case. AUMS’ nationalisation strategy has

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therefore been one of the key pillars of the organisation since day one, with the Company’s prospects “dead in the water” without it, according to the COO who places internal promotion, local development and wider social enrichment beyond the Company’s core mining capabilities in terms of long-term significance. “Our personnel strategy remains keenly focused around training of the local workforce and driving this aspect of our business to the benefit of the community in which we operate,” he enthuses. “The retention of key personnel and their skills is paramount to the business, and we ensure a vibrant, challenging and ultimately rewarding atmosphere is maintained. Our turnover is minimal in these key areas, we ensure a tight team environment of inclusion and rewarding roles drives this result.”

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Naturally ensuring financial stability and sustainability throughout, the dedication to training and individual progression for each member of staff is one that not only benefits the Company, but benefits the wider sector and industrial realm in Africa. For instance, across its entire Burkina Faso operations, AUMS is operating with an 80 percent national workforce, with half the remaining staff members comprised of African expatriates having come across from Ghana, Mali or other African Nations. Instantly, this relieves pressure on the business having to source more expensive key skills from further afield, but in the longer term, it ensures the general betterment of a generation in terms of the attributes now available in Burkina Faso; inevitably and initially being utilised within the expansions planned in the coming months and years.

( A U M S )

PRO MINING SERVICES

ro Mining Services (PMS) was formed in 1999 as a fabrication, erection and maintenance contractor under contract of Ashanti Goldfields in Geita, Tanzania. After this, PMS commenced operations as a maintenance contractor and registered as an individual Company. Expanding its operations, the Company established its own yard with a wellequipped fabrication workshop, offices, ablution, mess and change rooms for the workforce. Having accrued an impressive track record in project, design and engineering management, PMS can offer a wide variety of services including fabrication, construction and installation of process plant equipment and repairs on a variety of heavy duty mining equipment. Through the application of quality assurance controls and procedures and PMS’ long established relations with reputable suppliers and contractors, the Company ensures that top quality components are used for every project. PMS has an excellent industrial relations track record which is maintained by the development of a definite strategy for each project in accordance with the current Labour Relations Act of Tanzania. Industrial relations implications are considered for all activities of a project, including the client’s and other sub-contractors’ requirements. We also provide the necessary supervision, monitoring, quality control, planning, inspection and administration expertise , in conjunction with the relevant sub-contractors’ and suppliers’ capabilities to ensure the same exacting end results are produced every time.

Dedicated to the training and individual progression of each member of staff

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All of the above means that PMS is now considered as one of the leading contractors in fabrication, maintenance in process plants, and general civil and building works in the Tanzanian goldfields; with Class 1 contractor accreditation with the Contractors Registration Board of Tanzania.

Pro Mining Services Ltd P.O. Box 491 Geita-Mwanza Tanzania Joz: +255 784 504 073 Hennie: +255 784 397 056 Chris: +255 686 582 244 E: promining@prominingservices.com

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M I N I N G

S E R V I C E S

( A U M S )

ALFAGOMMA

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Training its own supervisors and managers in a way that is specific to AUMS’ operations

“Driving all of that are our nationalisation programmes and different training programmes that we want to continue developing and materialise in the future; to further benefit our training of graduates, fostering relationships with local universities, and in making sure we’re training our own supervisors and managers in a way that is specific to AUMS’ operations,” Sessions says. “It’s a lot easier for someone to learn something and know it intimately if they’re working on and using that machine, technology or process themselves, rather than coming into the Company in three years time and expecting to pick up all the different variables that might occur. “To that end, our key business driver of internal training and bringing up the national workforce through our own bespoke programmes will always remain paramount so that they can grow to be management material in the near term.”

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JA DELMAS

...our key business driver of internal training and bringing up the national workforce through our own bespoke programmes will always remain paramount...

or more than 80 years, JA Delmas has continued to develop its expertise and remains committed to excellence in all areas of the business, including our mining, quarry, power systems, construction, forestry and industrial equipment sectors. The company provides a wide range of new and used equipment, as well as equipment rental solutions. JA Delmas is dedicated to safety, customer service, quality and the environment. Our strong roots and strength of our dealership network in West Africa make JA Delmas the partner of choice in supporting current and future projects. T +33 5 56 79 62 00 E info@jadelmas.com

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Safety, integrity and excellence

The concept of enrichment continues internally via a health & safety commitment reaping its rewards over the past two years. As a primary driver within the Company’s day-to-day operations, the business’ two years LTI (lost time injury) free accomplishment – equating to more than four million man hours, and growing – is a statement to the wider industry in terms of complementing its rapid mining turnarounds with unparalleled safety processes. “I am particularly proud of this achievement, for a Group such as ours where 90 percent-plus of our workforce work every shift underground, in ‘hands-on – at the face’ roles, our lagging indicators stack up against anybody worldwide,” Sessions says. “Process improvement in this area has also delivered strong results, including nearly halving our TRI (total recordable injuries) rate in the business. Outside of the confines of AUMS’ offices or site operations, the business’

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corporate social responsibility (CSR) efforts are given equal importance; yet again compounding its position as a global operator able to thrive in accordance with local conditions and considerations. Initially, this emanates from the Company’s recruitment strategy and the aforementioned nationalisation drive, but this quickly escalates to each operation’s periphery through community engagement and in ensuring that each employee understands the area in which they are working. Sessions continues: “We continue to engage with and sponsor many charitable organisations; the newest being Bridge 2 Aid in Tanzania that provides dental training and equipment to local practitioners, to enable these skills to trickle down into the villages and communities in our location. This is a great initiative from these guys, providing a much needed resource and long-term benefit to the community. “Our latest contributions to the orphanage we sponsor in Burkina

( A U M S )

4 million Number of man hours saved through the Company’s LTI (lost time injury) programme over the past two years

also allowed us to construct a new borehole for the orphanage and the community to replace the unreliable current one, delivering water and subsequent nutritional benefits from the irrigation it provided. “We also continue to support the donations of medical supplies, food and miscellaneous requirements to local villages and communities, including sponsorship of sporting events and the construction of facilities.”

Investing significant capital

External enrichment is facilitated largely by internal evolution at AUMS, and while the on-site operations often speak for themselves in terms of showcasing what the Company does best, it is often the work and investments going on behind the scenes which lay the foundations for the business to flourish. And, especially during cost-cutting times, the ability to boost efficiencies and to provide evidence of this to prospective clients is worth its weight in gold. “We attempt to drive down our administrative costs at every opportunity, and pride ourselves on a slim structure, while focusing on operational capability,” Sessions elaborates. “This leaves administrative roles as high level support roles only, with the focus at site level.

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Tel: +233(0) 30 222 4623 +233 (0) 24 431 5385 Fax: +233 (0) 30 222 88 96 Email: sales@wireghana.com

REPRESENTANT DE LA TOLE HARDOX AU BURKINA FASO

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The Fero Group is focused on manufacturing and supply of an extensive range of underground support, ventilation products and mining consumables to the mining and tunnelling industries. With the capability to control the entire supply chain, from manufacturing, hot dip galvanising, stock inventory to packaging and dispatch of all products in one location the customer is guaranteed first-class quality products and on-time delivery.

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stratasales@fero.com.au

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“Investment in administrative systems is procured as a matter of necessity, but in terms of delivering process benefits and lower costs, I am happy with our current suite of systems and processes, that are internally updated to focus on the business on a yearly cycle. “From a facility perspective, we have invested significant capital at some of our sites in the establishment of infrastructure such as workshops, power stations and personnel facilities; including change house, ablutions, meeting rooms, mine rescue facilities and office complexes. We invest

The next 12 months AUMS will focus on Ghana and its projected expansion in Tanzania and Burkina

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heavily upfront, so the facilities see the test of time on site, and are hopefully not required to be upgraded in the future. Building a complex that is sizable and future-proofed is a lot more cost-efficient than continual expansion over time.”

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technologically advanced underground operation in Africa,” Sessions details. “It will therefore be a major focus area for us moving forward in getting that right and then trickling it down to the rest of the operations, if it all goes as planned and gives us the performance indicators we believe it will. Continued growth and success “We’ve partnered with Sandvik Among the Company’s more sizable on that operation who will deliver investments over the past 12 months us the exciting new fleet to take is the adoption of new technologies underground. One of these is not just aimed at enhancing levels of new to African operations, but to automation, quality, consistency and underground operations anywhere in safety within the business; largely the world, so it’s a really exciting focus targeted towards the final of the three for us.” contracts awarded recently, in Ghana. The upcoming Ghanaian contract Beginning in the coming months, the brings AUMS full circle from its new levels of autonomy to be achieved inception in the country almost 10 in Ghana will be complemented by years previously, and represents improved real-time monitoring for all that the Company is proud of as employees and further initiatives to an enterprise as it once again turns save its clients time, money and waste towards a local workforce it initially from production. began training in 2007. “This significant investment in Moving forward, the project also technology with the fleet we’re emphasises once again how the introducing to that operation as market has begun to adopt the well will see a lot of automation and previously untried and untested AUMS monitoring systems introduced, as model, indicating towards even more part of what I believe will be the most concerted business being attained in the future once the sector begins to pick up speed as well. Sessions concludes: “Looking ahead to the next 12 months, we’ve got this big operation in Ghana which will be a key focus, and projected expansion in both Tanzania and Burkina; along with keeping our eye on all operations to ensure we’re delivering the same performance and benefits across the board. “Continued growth within the organisation, continued success in our training and development of the local people – with further advancement of our graduates into not just supervisory, but management roles – and continued success of our African expatriate programme – where we take skills developed in-house, to all operations – will all combine as we look towards the rest of 2016 and beyond.”

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Lubricants. Technology. People. Fuchs Lubricants South Africa is replicating a global stronghold on the lubricant manufacturing sector in a region that is becoming more and more aware of the product benefits that derive from the Company’s extensive range Writer: Matthew Staff | Project Manager: Eddie Clinton UCHS Lubricants South Africa brings German manufacturing expertise to a highly lucrative regional market, and is looking to further compound its ongoing prominence on the continent via a host of acquisitions, expansions, facility enhancements and enrichment initiatives. As a subsidiary of FUCHS Petrolub SE - the largest independent manufacturer of specialist lubricants in the world - the Company’s ability to replicate such market success further afield should come as no surprise; but the ability to instil a local feel within an international environment is no mean feat, especially in Southern Africa. However, this is where an unparalleled product range and supply chain footprint comes into its own as the Company looks to hone in on its core goals of establishing itself as the foremost supplier of ultra-high

quality and specialised lubricants to the automotive, mining and industrial sectors, backed up by highly trained lubrication specialists. “FUCHS Lubricants South Africa offers the best of high quality German products, manufactured with only the highest quality mineral and synthetic base oils, and additive packages,” the Company states. National Commercial Sales Manager, Mitch Launspach adds: “FUCHS has an exceptionally wide range of products available in our portfolio, comprising the original Wm. Penn range of automotive products for vehicle owners wanting a decent quality oil at an affordable price, as well as the top-tier TITAN range of automotive products; many of which carrying a wide range of Original Equipment Manufacturer (OEM) approvals. “In fact, FUCHS is arguably the largest supplier of lubricants to automotive aftermarket and industrial

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manufacturers of original equipment in South Africa. We also have a comprehensive range of products for every type of industrial application, as well as a range of lubricants for all applications in the mining industry, including pin and bush grease, open gear compounds and any other products in use on open-cast and deeplevel mining operations.”

Additionally, Cassida and Lubrasa lubricants for food grade applications and the Silkolene brand for motorcycles and quads add further to the comprehensive product range, bringing new opportunities to a market which has benefitted from the footprint covered by the Company – bridging South Africa, Namibia, Zimbabwe, Zambia,

Swaziland, Botswana and Mozambique – while also enhancing the levels of manufacturing quality and compliance achieved by the business across all of its products in all of its countries of operation. “The quality of our blending plant and laboratory is of a standard that allows us to manufacture 90 percent of our entire product offering at our plant

in Isando, Gauteng. This includes most of the products that we manufacture as genuine oil for OEMs,” Launspach continues. “These products form part of the Group’s range of core products, which means that the quality of base oil, additives and manufacturing methods have to conform to the OEM specification, in every respect for the approval to be valid.

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F U C H S

L U B R I C A N T S

G L O B A L

C H E M I C A L

S O U R C I N G Unichem House; 27 Island Circle Riverhorse Valley Business Estate Durban 4017 South Africa Telephone & Fax TEL: +27(0)31 534-6000 TEL: +27(0)31 576-0600 FAX: +27(0)31 576-0620 Postal Address P.O. Box 4205 Riverhorse Valley East 4017

PA R T N E R S H I P T H R O U G H I D E A S

Email: sales@unichem.co.za Web: www.unichem.co.za

LU B R I C A N T S & P E T R O C H E M I C A L S - P E R S O N A L C A R E & CO S M E T I C S - CO N S U M E R C A R E - I N D U S T R I A L C H E M I C A L S

nichem is an ISO:9001-2008 certified speciality chemical marketing and distribution Company, servicing the Africa and Middle East territories as ExxonMobil’s authorised synthetics distributor in the region. We strongly believe in forging long-term strategic partnerships with our key customers and suppliers. It is no coincidence that Fuchs SA and Unichem’s growth during the past 20 years has been somewhat aligned. Fuchs Lubricants’ ability to grow and sustain a substantial synthetics product line, and their no-compromise approach to achieving the highest performance in their grease technology, is perfectly matched to Unichem’s core business offerings. With a product portfolio that includes pharma grade white mineral oils, the full spectrum of synthetic base oils (such as PAO’s, PIB’s, PAG’s, esters), performance additive chemistry, and renewable chemicals from the global leaders in these technologies, Unichem is well-placed to support any performance programmes for its customers. The recent addition of Tianhe Chemicals (automotive & marine additives) and Evonik Industries (MWFs) to Unichem’s principal slate, allows us to offer a more complete range of additive technologies to the formulator. Our approach to grease additive technology is markedly different to the traditional approach. Through our grease additive principals, The Elco Corporation, we have redefined the way grease manufacturers, blenders and marketers can extract more value from this growing market segment. Working on a blank canvas approach, we encourage our grease customers to give us a sample of their base grease, along with a shopping list of performance requirements.

The Elco Corporation, using their vast library of componentry, optimise a package that delivers the performance requirements in our customers’ grease, allowing them to create their masterpiece, batch after batch. Working on a concept of brand insurance we understand the huge risks to established brands when entering sensitive market segment such as food, pharmaceutical and personal care. Inadequate raw material selection may possibly result in serious incidents, which not only put human lives at risk, but can also destroy brand value. Unichem’s experience of supplying raw materials to the personal care and cosmetics industries over the past 15 years has proven invaluable in setting up infrastructure to maintain product stewardship and integrity, in line with international best practices. Global megatrends are directing the lubricant industry towards a bio lubricant segment that will grow substantially within the next five years. Unichem has positioned itself as the leading bio lube raw materials supplier in our region and beyond. Our partnership with Novvi LLC has enabled Unichem to develop a range of synthetic-performing renewable and biodegradable lubricants. Unichem’s product slate will always be aligned to the principles of Intelligent Chemistry. We believe that delivering molecules to our customers that will save energy, reduce waste, and perform better, ultimately provides a safer future for our planet.

T +27(0)31 534-6000 E sales@unichem.co.za www.unichem.co.za

GLOBAL CHEMICAL SOURCING

Durban Head Office Unichem House, 27 Island Circle Riverhorse Valley Business Estate Durban 4017 South Africa Tel: +27(0)31 534-6000 E-Mail: sales@unichem.co.za Postal Address P.O. Box 4205 Riverhorse Valley East 4017 Unichem Johannesburg The Woodlands Office Park Western Service Road, Building 16 Woodmead 2052, Gauteng Tel: +27(0)11 202-0400 E-Mail: salesjhb@unichem.co.za

LUBRICANTS & PETROCHEMICALS - PERSONAL CARE & COSMETICS - CONSUMER CARE - INDUSTRIAL CHEMICALS

Congratulations to Fuchs Lubricants on their growth and continued success! Unichem Services is proud to continue its longstanding service and support to Fuchs Lubricants in South Africa. Through our partnership, Fuchs continues to deliver environmentally friendly, cost reducing and energy saving products to the South African industrial market, and to the end user.

“The FUCHS Group understands that no two markets are completely the same, anywhere in the world, and this gives us the latitude to make our own decisions here in the region. However, this is done without compromising on the levels of quality, technology and service that have made FUCHS the largest independent lubricants manufacturer in the world.”

Technically superior

The current situation for FUCHS in Southern Africa represents a familiar trend for the Group which has branched out to most corners of the earth over the years in order to bring its market-leading products to as wide a customer base as possible. For South Africa specifically, this journey began in the early 1990s, as Launspach recalls. “Our German parent company was looking at acquiring a presence in the lubricants market in South Africa, and acquired four small independent

A comprehensive range of products for every type of industrial application

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Many household names rely on the FUCHS offering to maintain their own internationally-acclaimed standards

lubricant manufacturers; Century Oils, Wm. Penn Lubricants, Noxal Lubricants and National Oils in the early 1990s. Between them they covered every segment of the lubricants market, and they were merged to form FUCHS Lubricants South Africa located in Isando, Gauteng. “As the Company’s business grew, a second property was purchased which became the head office, a new, larger warehouse was erected, and the filling

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We continuously look for ways to improve our product quality and will invest in plants and equipment to meet these standards

plant was relocated to provide space for additional filling lines.” Creating a snowball effect, this in turn allowed for a major expansion of the Company’s oil blending facilities, and has subsequently been complemented by a series of smaller expansions and significant acquisitions like the one of high-quality specialty lubricant manufacturer, Lubritene. “The other major acquisition was of a company called Lubrasa, who manufactures food grade lubricants,” Launspach notes. “This growth necessitated the purchase of a third property behind our original plant, which is now the official head office of FUCHS Lubricants South Africa.” Since establishing the brand in the region, the focus has been not only on continuous improvement, but doing so in a way that is being smartly conveyed to a market potentially unaware of the benefits that FUCHS’ products can bring to their organisations; whether from a financial, energy, quality or

A brand name very much in the driving seat within the industry

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durability perspective. “Many of our prospective customers do not fully understand the benefits and financial savings of using products that are technically superior to much of the opposition,” Launspach explains. “As a result, our job is to educate potential customers, before converting them to the FUCHS product. “We continuously look for ways to improve our product quality and will invest in plant and equipment to meet

Continuously looking for ways to improve product quality

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these standards. We pride ourselves in the technical support we offer the customer and, were necessary, harness the support of the entire FUCHS group.”

The largest independent lubricants manufacturer

Having such flexibility and diversity within the business aids this effort in attaining new clients and partners, but also assists in dealing with

situations that are a little more out of the Company’s control in regards to industry fluctuations and challenges; or indeed in capitalising on sector opportunities. In recent times, one such opportunity has been brought to light within FUCHS’ OEM business, as Launspach details: “The most significant industry move over the last few years that we have experienced is our OEM business. While OEMs have always had a significant impact on the development and sales of lubricants, these OEMs are now pursuing lubricant sales outside of their regular business area, as a way of ensuring the right quality lubricants are used in their equipment, and as a means of generating additional income. “This is creating a new dynamic with our key OEM partnerships and it’s an exciting time.” The extent of capital expenditures required to facilitate this level of dynamism is epitomised by a series

FUCHS’ Titan Unimax Plus MC product

of enhancements witnessed across FUCHS Lubricants South Africa in recent years; kick-started by continuous upgrades and expansions of the Company’s laboratory, blending plant and filling plants, and supported by the subsequent attainment of ISO 9001:2008 accreditation across its operations.

“This gives you the assurance that the quality of our products always meet or exceed the required standards,” the Company says. “Over the past 10 years, FUCHS has been in a continual phase of upgrades, in terms of blending facilities, bulk storage capacity and technical upgrades,” Launspach continues. “Due to the introduction of higher quantities of Group II and synthetic base oils in our products, we have also had to expand our tank farm considerably, as well as expand our production facilities to include dedicated blending vessels for these products. “We have also expanded and equipped our in-house laboratory, in order to ensure that we are able to accurately monitor quality control of all products that we manufacture and conform to the highest standards in the industry.” Current investments in a new stateof-the-art grease plant which will be one of the largest and most advanced on the continent provide further evidence of not only FUCHS’ dedication to operational excellence, but a refusal to rest on its laurels as it continues to adhere to its ultimate goal of optimum expansion in Southern African markets. “FUCHS is the largest independent lubricants manufacturer in the world and we continue to aggressively grow our market share through significant investments into R&D and through acquisitions; based on our motto ‘Lubricants. Technology. People.’,” Launspach emphasises. The Company concludes: “FUCHS remains at the forefront of developing lubricants in cooperation with the world’s most innovative automotive and industrial OEMs that provide the enhanced levels of performance that are required. “This dedication to excellence is highlighted by the number of products within our extensive range of products that carry approvals from the world’s best known manufacturers.”

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Way of L A Suzuki

ecognised earlier this year for its exceptional sales performance by the Company’s distributors and its dealers, Suzuki Auto South Africa (SASA) is keeping a close eye on the everyday needs of consumers in order to maintain a competitive value proposition that takes care of motor vehicles over their entire lifecycle. Monitoring these industry

trends since the founding as a direct subsidiary of SMC in South Africa in 2008, Suzuki Auto has pushed-on with an aggressive expansion programme, which saw its dealer network grow from 23 in 2013, to 44 in 2016. “Launching vehicles at regular intervals up until 2014, Suzuki became the second fastest growing brand in South Africa, setting us in good stead for 2015,” recalls Yukio Sato, SASA’s Managing Director (MD). The following 12 months saw us mount a

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strong sales drive that coincided with the growth of our dealer network and the introduction of exciting new products such as the Celerio, Ciaz and the new Vitara. This sales drive has helped Suzuki to outperform its peers in some segments in an otherwise declining market.” He adds: “In recognition of our expansion efforts, we subsequently took home top honours in the regional Suzuki Auto Sales Awards in February as well as receiving the runner-up prize

Life The award-winning South African arm of Suzuki Auto has ambitious plans to improve customer satisfaction in order to add to its already exceptional sales performance achieved in recent years Writer: Emily Jarvis | Project Manager: Kane Weller for the sales growth award.â&#x20AC;? Pitted against the strong competition of Suzuki distributors across Africa, the Middle East and Indian subcontinent, it was Suzuki Auto South Africaâ&#x20AC;&#x2122;s significant investment in capital and local personnel that made it stand out from the other operations.

Customer satisfaction

Aside from this sales growth, Suzuki Auto South Africa has set its targets

on radically improving customer satisfaction and, in line with this goal, to introduce new sales, service and part processes that are all aimed at providing customers with an even better ownership experience. Placing emphasis on the education and development of employees to ensure that the above is achieved, Suzuki Auto South Africa conducts both internal and external training at

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Suzuki Swift

Suzuki Super Carry

Suzuki Ertiga

Suzuki Ciaz

junior and middle management level in order to generate the leadership, supervisory and technical skills needed to ensure an adequate future supply of these critical skills. “Staff retention in a sales environment is often a challenge, but we undertake regular reviews of our incentives to reduce turnover. We strive to offer a competitive salary and set appropriate compensation benefits, performance recognition, and acting on insights from exit interviews,” says Sato. Supporting the South African operations is a streamlined procurement system, for which Suzuki utilise a sole agent, KWE, for the importation of parts and accessories (P&A) from Japan, India and Germany. “By utilising one agent and performing all P&A logistical functions in-house, we can focus our energies on making sure our stock replenishment reaches expectations when distributed to all our dealerships.

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Leveraging this structure, we also export to neighbouring countries such as Namibia, Mozambique, Angola and Tanzania,” the CEO explains.

Downsizing trend

Offering value-packed products that are fun to drive – epitomised in the global Group’s motto ‘WAY OF LIFE’ – Suzuki Auto South Africa has positioned its product range to answer the changing needs and tastes of the customer. “More and more customers are downsizing from bigger and more expensive vehicles; seeking out smaller cars that offer a high standard basic specification and excellent safety rating, while being much more fuel efficient,” confirms Sato. Offering a plethora of styles to suit a variety of tastes, the Company now import and sell nine different model ranges (10 including the Swift Sport) in South Africa and the nearby countries;

A Privately Owned South African Company

» Air & Sea Imports and Exports » International Freight Forwarding » Warehousing - Container Packing » Customs Clearing » Project Management » Distribution By Road Within South Africa » Cross Border Movements

namely Namibia, Zimbabwe and Swaziland. “Suzuki’s dealer network has expanded by approximately 60 percent over the past 24 months, reaching a total number of 44 dealers across these four countries. Led by this strong growth, we will be focused on reaching areas where the Suzuki brand is not represented yet; potentially adding up to six dealers to bring our total network to around 50, with further opportunities in Lesotho and Botswana also being investigated to enhance our reach,” he says. Adding to this already extensive vehicle portfolio in May this year, the Company launched the Suzuki Super Carry light commercial vehicle (LCV) in its first foray into this business segment. The launch coincided with a heavy marketing campaign, led by the slogan ‘gets work done’. Sato reveals: “The Super Carry is a no-frills single cab light utility vehicle that is drawing the

Suzuki Celerio interior

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attention of small business owners and entrepreneurs seeking a lightweight, user-friendly workhorse with exceptional load carrying capacity and low running costs. South Africa is the first market outside of India and native Japan to introduce the newcomer; proving just how important the South African market is to the Group who share our view of the vehicle’s potential here.” Arriving at a time when costefficiency, affordability and value for money have become key market requirements, the Super Carry promises the versatility and robustness that is important to small enterprises; while remaining the most fuel-efficient vehicle in its class. Sato concludes: “With the launch and subsequent marketing campaigns for the Super Carry currently underway, we hope to complement this launch with the all-new Baleno towards the end of the year.”

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Improving the Quality of

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Human Universal Corporation Ltd is enhancing levels of affordable medicines available in Kenya in line with Africaâ&#x20AC;&#x2122;s strive towards healthcare self-sufficiency on the continent Writer: Matthew Staff | Project Manager: Stuart Parker

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Life

niversal Corporation Ltd (UCL) is playing a vital role in Africa in reducing the continent’s reliance on imports in the healthcare sector; subsequently helping to create an environment of self-sufficiency across central and eastern regions in particular. Based in Nairobi, the 20-year old Kenyan pharmaceutical manufacturing Company has been integral to the country’s strive for excellence and internalisation since its inception, accredited as a consequence by some of the leading authorities in the industry, and ultimately pushing towards an end goal of ensuring quick, affordable and sustained access for the population to much needed medication.

Currently manufacturing more than 100 formulations of human medicines, UCL’s strong focus on quality and in improving its portfolio at an affordable rate has set it apart in the country and, following a 51 percent acquisition by Strides Cyprus Limited in 2016, the ability to push forward with such a defining and enriching goal has been brought even more concertedly to the fore. Founder and Managing Director (MD), Perviz ‘Palu’ Dhanani explains: “We are now present in 22 African countries with marketing representatives in a further six. Some of our products are even supplied as far afield as Afghanistan and all of our operations come down to playing a vital role in strengthening the need for these

countries to rely less on imports and to create self-sufficiency instead; to create local employment, nurture local talent, contribute towards improving the economy, and to enhance African pride.” “The long-term plan of the Company is to expand its specialty lines to cover all medical specialties,” UCL affirms on its website.”

Quality manufacturing

Beginning life as a family-run business back in 1996, headed by Palu and his brother Rajan, a series of business mergers, acquisitions and partnerships have brought UCL to the position it is in today, all the while driven by the evident gap in the market for the kind of products the Company could

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NIC BANK

ncorporated in Kenya in 1959, NIC Bank Group has seen rapid growth, from being among the first nonbank financial institutions to provide hire-purchase and instalment credit finance facilities in the country, to now comprise 36 branches across East Africa. The Bank’s three strategic business units strive to be leaders in corporate banking, offering competitive and customised funding solutions to meet clients’ specific account management, payments, collections and liquidity management requirements. Call us today and find out more about what we can do for your business. T +254 20 288 8217 E customercare@nic-bank.com

www.nic-bank.com Improving quality manufacturing has been one of UCL’s main focuses over the years

manufacture, and the skills it could bring to the sector. Dhanani recalls: “In 2005, Finnfund (the Finnish Fund for Industrial Development) invested a small amount which helped us grow to a certain level and in 2008 they invested a substantial amount which helped us achieve World Health Organisation pre-qualification for One ARV, Lamivudine and Zidovudine Tablets in 2011; prequalification that has also been found to be compliant with good manufacturing practices on site. “This then opened up doors for us to start supplying essential and opportunistic infection medicines to UNICEF, Global Fund and USAID projects. Especially with the UNICEF and USAID programmes supporting local manufacturing efforts, it took us to a better level both in terms of quality and volumes.” Since then, the range of affordable, high quality medications produced from UCL has increased and improved rapidly, with a portfolio befitting of its

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Improvising quality manufacturing has been one of our main continuous improvement strategies and key focuses over the years...

significant role within the country’s medical infrastructure. More recently, this continuous drive for betterment has resulted in diversification as well, branching out from its staple essential and opportunistic infection products to also aid areas including malaria, diabetes, cardiology, urology, paediatrics and dermatology. And with every new product and new breakthrough, UCL has the education, marketing and industry expertise on hand to unveil it to the market in the most effective way possible. “Improving quality manufacturing has been one of our main continuous improvement strategies and key focuses over the years, with more of a drive into marketing complementing our ongoing development of medicines in the lifestyle disease domain,” Dhanani emphasises. “We are also currently working on the introduction of newer and better molecules following a series of internal

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investments into more automated equipment, facility expansions and improved IT enablement.”

A strong, leading Company

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Facilitating such strong internal evolution and subsequent product expansion is a UCL workforce who is every bit as committed to the kind of enrichment the Company is trying to achieve, as the Dhanani brothers were when forming the business 20 years ago. To achieve this level of dedication, there is a strong local emphasis placed on the business’s human resource efforts, with local expertise always the preferred option when it comes to bringing new skills into the fraternity. “AT UCL we always try and get local expertise as much possible. Only when we can’t get these personnel locally, do we look to source from outside the country instead,” the MD states. “As quality is a major

concern, it is imperative that the manufacturing department is manned by highly qualified and trained staff who undergo regular training on GMP (good manufacturing practice) procedures.” This strive for efficiency and delivery is compounded by a supply chain management ethos which embraces the most modern of just-in-time methods on an internal note, and a corporate social responsibility (CSR) adherence which naturally complements the kinds of social enrichment already placed at the core of UCL’s operations. “Tree planting, diarrhoea treatments for children and supporting medical camps throughout the country are all included within our CSR efforts, and it fits within our overall goals for the future which include being a strong, leading Company on the continent with a customer-driven focus on manufacturing affordable medicines,” Dhanani concludes.

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African Trade Insurance Agency is on the verge of becoming the first port of call for investors in Africa, becoming the information source and risk mitigator of choice for anyone doing business on the continent Writer: Matthew Staff Project Manager: Stuart Parker

stablished in 2001 to support trade and investments across African member countries, African Trade Insurance Agency (ATI)’s 15 years of prominence has taken on extra importance in recent years following a revised membership strategy; a tact which is set to succeed by virtue of its on-the-ground presence across each operating nation. Providing political risk and trade credit insurance products with the objective of reducing the risk and cost of doing business in Africa, the Company now comprises 10 full members – Benin, Burundi, DRC, Kenya, Madagascar, Malawi, Rwanda, Tanzania, Uganda and Zambia and its facilitation of FDIs, export opportunities and trade avenues is making it an increasingly rich prospect for new members too. “A revised membership strategy that now incorporates partners such as the African Development Bank is expected to yield three new members within the next year - Côte d’Ivoire, Ethiopia and Zimbabwe - with more West African countries expected to follow in the near term thanks to a partnership that was formalised in 2015 with West Africa’s ECOWAS (The Economic Community of West African States),” explains the Company’s CEO, George Otieno. “In addition to African countries, our other shareholders include the African Development Bank; Atradius; SACE, the Italian Export Credit Agency (ECA); and UK Export Finance, the British ECA. “Our products have adapted over the years to try to fill gaps in the market. For example, when Kenya’s 2008 elections left a wake of destruction, insurers were unable to compensate victims of the violence. With our connections to the international insurance market – notably the Lloyds of London market – we were able to help insurers mobilise

additional capacity that evolved into locally-available cover against damages caused by political violence, terrorism and sabotage.” Through this necessary offering, ATI has built a positive reputation not purely as a consequence of its service remit, but by its uniqueness in being indigenously African, placing it closer to the risks it is helping to offset. “This allows us to have a more balanced approach to risk assessment and this is what our partners have come to value the most,” affirms Otieno. “We are also close to projects and the stakeholders. This translates to easier access to information, which can be critical to investors and other partners. “We are now beginning to receive accolades for our work from such international media outlets as the Global Trade Review, who awarded us with the prize for the best political risk and trade credit insurer in Africa in 2015. Africa Investor has also given us the award for Best Export Credit Initiative for two consecutive years in 2011 and 2012.”

George Otieno, CEO, ATI

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Created initially to fill a gap in the market in terms of trade and investment risk mitigation, ATI’s creation stemmed from the only viable solution in forming a multilateral agency that would provide more costeffective use of underwriting capital, reduced overhead costs and the ability to encourage private sector insurers to assume risk in Africa. “In response to the demand, a number of African countries came

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together to establish an insurance mechanism to protect their economies against losses caused by credit and political risks,” Otieno recalls. “They were confident that this instrument would help local companies compete globally and help Africa attract more foreign direct investment. ATI was subsequently launched in 2001 with a mandate to provide insurance and reinsurance products to help reduce the risks and costs of doing business in Africa.”

ATI products: • Political Risk (Investment) Insurance: Protects investors against any unfair action or inaction by a government that would negatively affect business or investments • Trade Credit Insurance: Covers non-payment or delayed payment to a supplier of goods or services by a public or private buyer or bank borrower • Off-taker guarantees for Energy Projects: Offers cover against the nonhonouring of sovereign obligations from a public utility • Surety Bonds: Protects government agencies and contracting companies to ensure that contracts are completed according to mutually agreed terms. We offer bid, advance payment, performance, customs and warehousing bonds • Political Violence, Terrorism & Sabotage Insurance: Protects investors against financial losses in the event of a political or terrorist-motivated event

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RFIB

frican Trade Insurance (ATI) has provided the support which has allowed for national infrastructure, economic projects and tourism initiatives to flourish across its 10 member states. RFIB is proud to support this African-led institution as it underpins trade and provides the necessary insurance cover to facilitate development and investment. For more than a decade, RFIB has worked in partnership with ATI to ensure it achieved the best terms and most appropriate reinsurance solutions, from the private insurance market, to allow it to continue to transform the economic landscape of its members. It is a relationship based on longstanding trust and one which we value highly. Many businesses and nations across Africa face political, credit and financial risks. RFIB has a long established presence and reputation in nations across Africa. We understand these risks and provide solutions to mitigate them. There are a multitude of hazards which can impact businesses in every sector and nations across the continent; including war and political violence, non payment, or the multiple hazards that arise in a challenging political environment. RFIB can help manage these risks by obtaining insurance coverage, tailored to the needs of African businesses, against possible losses arising from these risks. Projects across Africa have been brought to fruition through the work of ATI. RFIB will continue to stand beside this vital African institution and looks forward to further supporting businesses and nations by providing the necessary political risk and trade credit insurance solutions which enable them to flourish.

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POLITICAL, CREDIT AND FINANCIAL RISKS In a world full of political uncertainty any company with cross border interests in unstable or emerging markets may need protection in the form of political risk or trade credit insurance.

Toby Heppel toby.heppel@rfib.co.uk +44 (0)20 3004 2846

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Jon Bishop jon.bishop@rfib.co.uk +44 (0)20 7621 8314

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Hon. William Ruto, Deputy President of Kenya commends ATI during its 15th Annual General Meeting of shareholders, June, 2015

Broadening the remit in 2006 to support local businesses carrying out cross-border trade, the evolution of ATI’s portfolio in the intervening years has been one deriving from industry collaboration and foresight, in ensuring that businesses of all sizes were being aided against risks they were previously unprepared for. Today, the Company’s headquarters in Nairobi, Kenya acts as a sounding board for a further three field offices located in Tanzania, Uganda and Zambia, and provides a platform for the sustained period of growth it is currently enjoying. “ATI has maintained profitability for the past five years and we have doubled the size of our business portfolio with Gross Written Premium increasing from US$10 million in 2011 to US$23 million in 2015, and by 52 percent over the previous year,” Otieno continues. “Our net financial income rose by 145 percent during this five-year period despite the low interest rate environment.

Typically our clients are the starting point and we have become stronger with our growing network of partners in being able to provide more solutions to our clients

“Our mandate is to pave the way for other financial partners to follow. This typically means we operate in environments that many international players would view as very risky. However, we have now grown to a point where many international financial partners will only enter deals if we are involved, while, and even more positively, supporting transactions in member states they wouldn’t consider in the past. “This means that we have done our job. In light of this, our positioning within the market is also evolving.”

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Knowledge leader

The ability and commitment to regularly progress the ATI service range has further distinguished its proactive role in the wider industry over the years. This is most recently epitomised by the introduction of private obligor non-payment, bound counter-guarantees and solutions for banks that are allowing them to expand their loan book to SMEs that were historically deemed as too risky. “These solutions complement our original offerings and support our underlying mandate which remains

core to our business. At the heart of this is our bread and butter product, political risk insurance (PRI), which accounts for close to 60 percent of our entire business,” Otieno states. “Typically our clients are the starting point and we have become stronger with our growing network of partners in being able to provide more solutions to our clients. “This has allowed us to begin positioning ourselves as a knowledge leader in underwriting energy sector deals.” Such pivotal and esteemed partnerships - such as those currently being seen in the energy space include the likes of the European International Bank and Germany’s KfW while ATI is also in the process of implementing initiatives that will see it lead the charge in helping Africa to insure and, as a result, execute more energy sector projects.

“Securing ideal cover today.” Phone: +265 1 824 930 • Email: insurance@kingfisher.mw • www.kingfisher.mw

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Keynote speakers at ATI’s 16th AGM held in Kigali in June, 2016

Facilitating these partnerships is a refined and honed internal structure at ATI which has again been largely influenced by its core partnerships, and then deployed via the Company’s own extensive internal resources. A new underwriting system to better manage the business is one current example of this, thanks to a grant from the African Development Bank, while the European Investment Bank is working alongside ATI to strengthen the latter’s risk management framework. “These initiatives are expected to support our larger goal of becoming the premier African underwriter of energy sector projects,” Otieno states. “Being relatively new to Africa, we have also spent a lot of resources in training our staff. Most of our professional staff in the underwriting department come from the banking or insurance sectors and while they have

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the basic skills in terms of assessing the financial viability of transactions, underwriting such transactions requires different skills. “With a combination of in-house training and exposure to the Lloyd’s of London and other international insurance markets, our underwriters have developed a reputation for being thorough in their underwriting.” Additionally, the Company has set up its own training programme for partner organisations across Africa, instilling the same levels of indigenousness that has

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elevated the business to its own lofty heights, while leveraging the international expertise and influences that have been attained over the years. Otieno adds: “The success we’ve had means that we’ve created a desirable group of professionals for new players in the market. In the end, we rely on the unique experience of being exposed to global transactions, training opportunities, an attractive reward structure and a collegial working environment to retain our key staff.”

A centre of excellence

Having such a strong and set internal structure also helps in negotiating unforeseen industry slowdowns or fluctuations; something which ATI capitalised on initially in getting its business model off the ground, and that it now needs to keep on top of for the sake of its clients moving forward. “From a broader viewpoint, Africa is positioning itself to attract more FDIs,” Otieno notes in regards to one pressing trend. “This requires tremendous investments to improve infrastructure, which we are seeing in

Berne Union energy sector specialist meeting in Nairobi, hosted by ATI; April, 2016

HE Erastus Mwencha, Deputy Chair AU

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AfDB Gabriel Negatu at ATIs 16th AGM in Kigali, June, 2016

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Jef Vincent, Chief Underwriting Officer at the 3rd Africa Finance Conference in Frankfurt; May, 2016

terms of projects in the energy sector aimed at connecting more people to the grid and offering lower-cost energy to consumers, improvements in transportation networks from roads to railways, and increasing housing and commercial property options. “Simultaneously, we’re seeing more African banks in a position to participate in syndications on these larger projects.” All-told, commitments such as these have amounted to as much as US$21.5 billion in support of trade and investments in its member countries, a vast amount considering the number

for the entire continent was only at US$87 billion in 2014; and largely dominated by only five countries. The levelling and expansion of riches that has been seen - and facilitated by ATI - even in that short space of time once again epitomises the need that is being filled by the Company; providing an opportunity for more countries to generate intra-regional trade opportunities. “We are helping countries to gain the confidence of international financial markets,” Otienoconcludes. “By building a global network of partners, who have come to trust

our risk assessments, we are sending a subtle message to the world that African risk is manageable and it is not the scary picture that has been painted in the past. “ATI is currently on the verge of creating a centre of underwriting excellence in the energy sector, becoming the first stop for investors in Africa, becoming the information source and risk mitigator of choice for anyone doing business on the continent. “We hope to take a giant leap in this direction and to arrive at our destination within the next few years.”

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Having upgraded its core banking system in mid-August, KCB is seizing the opportunity with the help of technology to bring financial inclusion services to Kenya’s youth dominated population Writer: Emily Jarvis | Project Manager: Nick Norris

CB Group Limited is moving away from the traditional banking formula in a bid to engage with the region’s youthful population and bring simple mobile banking and financial inclusion services to the customer’s fingertips. Driven by the accelerating popularity of mobile money – and subsequent financial inclusion services to simplify both short-term borrowing and longterm savings – KCB has been at the epicentre of entrepreneurship and economic expansion in Kenya and the surrounding regions for the past 120 years; with units across Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia. With an

KCB Group CEO and MD for Kenya, Joshua Oigara

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(L-R): KCB Foundation Chair, Catherine Kolac, KCB Group Chairman, Ngenny Biwott, H.E US Ambassador to Kenya and KCB CEO and MD, Kenya Joshua Oigara during the launch of the 2jiajiri programme

industry-leading asset base of US$5.6 billion across the KCB Group, the Company continues to align its digital strategy with global best practices across all its subsidiaries and associate companies; including KCB Insurance Agency, KCB Capital, KCB Foundation. “According to 2015 statistics, more than 50 percent of Kenya’s population are under 25,” writes Joshua Oigara, Chief Executive Officer (CEO) of KCB Group. “With this in mind, we have

focused on the youth and tailored our services to remain relevant in an environment where customers want more control over their finances and more accessibility; all achieved through the use of technology.” Enabling customers to access their account and transact on-the-go, the KCB App is now among the best performing apps in the country today, having been downloaded 100,000 times since 2014.

Digital future – together

Fashioning its products and services around the latest technology as part of a wider digital strategy, KCB has built the largest network in East Africa; comprised of more than 260 branches, 962 ATMs and 12,000 customer service agents all culminating together to form a 24-seven connected banking service. “The Bank believes that the future of financial services lies in digital and investment in this area has

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DOSHI GROUP OF COMPANIES - KENYA

ormed more than 86 years ago as a result of a shared desire among its shareholders to bring together value-add solutions in the building, sanitary, industrial and public utilities sectors, Doshi Group strives to be a world-class organisation; known for providing services that exceed customer expectations. Headquartered in Nairobi – with an expanded presence across other Eastern African countries such as Uganda, Tanzania, Rwanda and Burundi – the Group manufacture and trade more than 10,000 products across the steel, hardware, electrical, plastic pipes and telecommunication/IT markets. E pvc-info@doshigroup.com pvcnairobi@doshigroup.com

www.doshigroup.com The KCB property centre

been continual to complement the traditional brick and mortar model that was, in yesteryears, the hallmark of banking,” Oigara adds. In line with this belief, KCB has invested in upgrades to its IT platform to bolster its core banking system and enhance service delivery to customers. “We have placed a concerted focus on improving operational efficiencies within the shared services while exploiting our branch network to enhance service excellence,” says Oigara. “Demand for financial services has been rising over time, so the technology upgrades are helping us to increase our reliability and reduce downtime.” KCB is not going into this digital future alone. It is leveraging a wide network of correspondent relationships with more than 200 banks across the world to support its value-creation business model, which requires input from a whole host of financial expertise.

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We believe that partnerships are the next frontier for business growth as we seek to develop and provide solutions bent on transforming the lives of all the people we come into contact with...

“We believe that partnerships are the next frontier for business growth as we seek to develop and provide solutions bent on transforming the lives of all the people we come into contact with across all markets. KCB Group is a regional lender that thinks globally, but acts locally. In Kenya for example, we have partnered with the Government of Kenya to aid in the construction of roads, Safaricom the leading telecom Company in the region for mobile banking services, and USAID and GE to provide health financing across the country,” the CEO further explains.

Human capital

Building a strong heritage by deepening financial inclusion for the people and businesses in East Africa, KCB has no doubt been a vital catalyst and advocate for the region’s digital transformation. Central to this achievement is its dedicated workforce, cited as “the most important arsenal for growth in

KCB team receives an award at the Think Business awards, 2016

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the increasingly competitive business environment,” by Oigara. He says: “In 2015, the results of the training needs assessment survey conducted across the Group resulted in the creation of a five-pillar staff development strategy that focuses on multilevel leadership development; a branch managers’ development programme; staff career development programme; role competency framework library and staff on-boarding programme. “By continually updating our existing business processes and analysing our training needs on an annual basis, we

US$500 million Amount the Company invested in the ‘2jiajiri’ programme, launched in 2015 to equip Kenya’s youth with entrepreneurial training and essential business skills

[The KCB Foundation] is how we demonstrate KCB’s understanding of the challenging environment that its stakeholders operate in and the Company’s strategic capacity to address these issues

are able to embed sustainability in everything that we do.” This philosophy of sustainability is further compounded by the KCB Foundation’s social and economic development activities. “This is how we demonstrate KCB’s understanding of the challenging environment that its stakeholders operate in and the Company’s strategic capacity to address these issues,” Oigara highlights. “It also highlights an increasing recognition by the Bank that societal challenges also create business opportunities. One of our major projects in this regard has been the ‘Mifugo ni Mali’ which was launched in 2014. This is a value chain development programme that seeks to improve the incomes and livelihoods of small-hold livestock farmers, namely through market organisation via cooperatives/collectives; support for farm-owned enterprises to address productivity; nutrition and husbandry challenges; and the provision of appropriate financial services and facilitation of access to markets. So far, KCB Foundation team conducting interviews for high school beneficiaries

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we’ve managed to reach 30,000 farmers and grow membership participating cooperatives with an average increase of 40 percent.” Adding to this is the US$500 million ‘2jiajiri’ programme which was launched in 2015 to equip Kenya’s youth with entrepreneurial training and essential business skills. Since it began, more than 1,600 youths have successfully graduated with capabilities that will see them venture into entrepreneurship and, as the CEO puts it, “curbing the monster of unemployment” that affects a high percentage of the population. KCB Foundation (Mifugo ni Mali) livestock vaccination in Narok county

KCB rugby finals against Kabras Sugar at the RFUEA

KCB sponsored golf at Thika Sports Club

KCB Voi Rally, 2016

KCB staff team participating in the First Lady half marathon

2020 goals

As the biggest lender in terms of both asset and profitability in Kenya, KCB remains committed to guaranteeing stability and renewing confidence in the financial sector. “Guided by our vision and mission, we hope to be present in 10 markets by 2020, while continuing to strengthen our existing businesses and keeping abreast of global industry trends,” says Oigara. “Banks play a vital role in any economy. In Kenya, there are several positive developments in banking that have been celebrated and will remain talking points in the industry for years to come; including progress towards the Vision 2030 financial inclusion goal, introduction of enhanced pricing transparency, promotion of SME finance and enabling access to credit at micro level.” He concludes: “As a Banking Group, we support the consolidation efforts in the banking sector which we believe will enable Kenya to have strong, wellcapitalised financial institutions which are not only able to participate in financing the large projects envisaged in the vision, but that can withstand financial shocks and crises. Going forward, we will continue to support enhanced supervision in the banking sector as well as enriched governance frameworks in the industry to bolster confidence.”

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he production and export of both grapes and citrus products has distinguished South African-based fruit farming Company, Denau within a competitive market over the decades, and it is now looking towards conservative profits to ensure long-term success through innovation

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and careful custodianship. The producer, packer and exporter working out of Hex River Valley, 140 kilometres northeast of Cape Town, has thrived from origins which date back to the mid-1800s; instilling a flexibility within the business that can only derive from in-house expertise comprising its own packing, sorting and cooling facilities.

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Denau remains loyal to more than 150 years of family tradition by instilling new levels of farming innovation to ensure a successful handover to the next generation Writer: Matthew Staff Project Manager: Joshua Mann

“Denau is a family fruit farming business and is currently managed by the fifth and sixth generation of the Naudé family that has farmed in the Hex River Valley since 1841,” he notes. “Our receivers are mainly in the EU and the UK now and over time we have built up a remarkable business relationship with a shortlist of highly valued, reliable receivers. “However, much of the expansion and consolidation of today’s Denau has been implemented by Pieter Naudé, the current chairman, since the 1980s. He started farming in 1976 on the Welgemoed farm with 28 hectares of table grapes, and through the acquisition of more farming units – over time – the farming operations have increased steadily to our current 210 hectares of table grapes and 120 hectares of citrus under production.” Such is the relationship that Denau shares with each of its clients; the Company has an ethos whereby it would only prefer to look to expand its export footprint further if it could do so with its existing receivers, affirming a business philosophy that is compounded by an ongoing adherence to continuous improvements and sector expertise. Naudé continues: “From a productivity perspective, we have a proactive, professional management system with clear, measurable critical performance indicators, and we remain in touch with local and international industry developments to drive these systems through attending industry workshops and conferences.” Arguably the business’ greatest asset though emanates from the consistency and dedication that is achieved through being a family business; the current incumbent of which – Managing Director (MD), Fanie Naudé – realising all too well how much of a competitive advantage tradition and heritage can be in the agricultural sector.

Innovative approach

Over the years, it has not just been the processes and methods that have evolved, but most importantly, the product range has diversified also; targeted specifically towards consumer preferences. “This includes producing preferred products and packaging them in preferred packaging types,” Naudé explains, “and over the past few years

our citrus production has moved from hard citrus to mostly easy peeler varieties such as clementines and late mandarins”. He continues: “On the grape side, we have moved from seeded varieties to mostly red seedless grapes such as crimson seedless. As consumers

Farming T radition

“We realise that we are privileged to be the beneficiaries of a legacy of a farming tradition started by our forefathers six generations ago. I am also proud of what my father and brothers have achieved by making the decision to work together and sticking to this despite the challenges. We know that the growth and success of the business is more important than each of us as individuals. Moving forward successfully together requires ongoing good leadership, communication and hard work.” – Fanie Naudé, Managing Director

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SPECTRA TRUST

pectra Trust is a distributor of high quality packaging material to the agricultural industry. Our mission is to develop a world-class distribution network. We continuously develop better ways to service our clientele, easing the burden of managing packaging material. Whatever you need, we will source all your required material and have it ready by the time you need it. We also have a very close relationship with our suppliers, placing us in a better position to identify and eradicate any problems that might arise with the raw materials used in creating your purchase. T +27 21 8721272 E batron@spectratrust.co.za

www.spectratrust.co.za Pieter Naudé senior’s father with packed grapes

prefer purchasing pre-packed fruit, our products are now also marketed mostly in pre-packed offerings.” This epitomises a general balance that Denau has strived to find between organic growth of a successful business model, and more concerted, proactive innovation to drive ahead of the market. “Denau introduced the production of citrus to the Hex River Valley when the first 50 hectares of citrus orchards were planted in 1989. As a result of this pioneering initiative, Pieter Naudé was named Western Cape Farmer of the year in 1999,” Naudé reflects. “Pieter was one of the first producers to start experimenting and introducing drip irrigation in the production process which has since become popular standard practice in our industry. “Along with drip irrigation, we were also one of the first operations in our area to make use of fertigation, supplying optimal plant nutrition through the irrigation system. These

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We have developed our Denau brand over the years. We have our own identity in the marketplace and as we produce and ship both grapes and citrus, our brand has a market presence for nine months of the year

are some of the early examples of the innovative approach that we follow continuously within our production, packaging and logistical operations.” A more refined growth strategy has been facilitated as a consequence of Denau’s first-to-the-punch quest, with 850,000 cartons of table grapes and 150,000 cartons of citrus now produced each year; and further volume increases expected in the years to come. The idea of forward integration has also subsequently become a reality, moving away from producing and selling through the single channel marketing system, to the growerpacker-shipper model that the Company adopts as part of its larger value chain today. Naude says: “We have developed our Denau brand over the years. We have our own identity in the marketplace and as we produce and ship both grapes and citrus, our brand has a market presence for nine months of the year.

Spectra Trust is a family bussiness that was established in 1992 and is now one of the leading suppliers of packaging material in the Agriculture market South Africa.

Spectra Trust is proud of its longstanding asociation with Denau Farms. May they continue going from strength to strength.

Head Ofice Paarl Western Cape South Africa General Manager Barto du Toit Tel: 021 8721272 Mobile: 0832862632 barto@spectratrust.co.za

Excecutive Trustee Stephen Stofberg Mobile: 0829014601 stephen@spectratrust.co.za www.spectratrust.co.za

Fanie Naude, Pieter Naude, Marinus Naude, Fanieâ&#x20AC;&#x2122;s son, Stephanus and Pieter Naude Senior

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“We are proactively growing and developing our brand into the future.”

Long-term success

The Denau expansion story is a living organism, and the latest chapter has witnessed the acquisition of additional farming property and the current implementation of a new 65 hectare expansion of new clementine and late mandarin orchards in the citrus domain. Incorporating overhead netting to protect the products against the elements; quality, sustainability and consistency are once again at the forefront of considerations and it only scratches the surface of what Denau aims to improve in the near-term. “In our grape division, we have also just invested in a new Softpro packing system, a revolutionary home grown

Denau’s packing house

Sandhills view

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South African weighing and packing system based on a ‘per berry’’, not ‘per gram’ increment measurement system. The system provides a significant increase in productivity and also ensures the optimum weight and traceability of each punnet or carton,” Naudé explains. “Additionally, we are currently in the process of a complete overhaul of our fruit pack houses and packing systems and through this process we will be introducing a number of new equipment and technologies upgrades. “We have also recently upgraded our salaries and wages software to the latest VIP systems which will assist us particularly during the busy harvest seasons when our employee numbers increase sharply with the seasonal employees.”

The workforce provides another strand to Denau’s commitment to operational excellence; embracing relevant tertiary training, internal promotion and skills transfer throughout the experience hierarchy to complement a wider all-encompassing corporate social responsibility remit which ensures enrichment of individuals both in and outside of the organisation. “We promote a positive working environment of our management and staff and the success of this is evident in our low staff turnover figures,” Naudé affirms. “We invest in ongoing training for the entire workforce, thus enabling individuals to grow with the Company and to empower themselves through the continuous improvement of their practical and life skills. “This also helps towards our goals

of further maturing the organisational structure of the business successfully and in taking our business ‘from good to great’.” The MD concludes: “Our business is farming with products that require long-term planning as well as longterm focus and commitment, and the availability of the skills and resources to sustain this. This is the opposite of annual cash crop production. “We are in this for the long haul so would rather be content with a conservative profit margin for long-term success than take the risk of pushing productions aggressively with possibly disastrous consequences. “Through innovation and careful custodianship, we aim to grow the business and present this to the next generation as a successful, sustainable business.”

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The preferred brand among many retailers and wholesalers globally, GOGO has invested in the vertical integration of its supply chain as well as deploying the latest technologies to achieve fruit perfection Writer: Emily Jarvis Project Manager: Joshua Mann

uided by the ultimate objective to vertically integrate its supply chain, GOGO is on a mission to provide the best service to both local growers and buyers in all corners of the world. Known for the unrivalled quality and consistency of its fruit produce – epitomised by its reputation for delivering ‘the Rolls-Royce of fruit’ – the GOGO brand continues to stand strong and exceed customer expectation through strategic investment in its key processes and the equipment required to stay head and shoulders above the competition. GOGO’s ownership structure mirrors its founding philosophies of trust, local partnerships and putting the power back into the hands of the farmer. Consisting of five producing companies, some with shared ownership structures – namely EL Sundew Farming, Tian Kruger Farming, JJ Gouws Farming, Nyawa Farming and JFK Farming – all supported by a marketing, procurement, cold chain, logistics and export chain, the Company is able to engender a closeknit, transparent relationship between its customers and the business; while ensuring an ongoing supply of quality fruit all year round. Eben Kruger, Director at GOGO and Managing Director of EKM Exports affirms: “Success for us is a combination of many things but at its core is quality fruit and relationships with our buyers all over the world. From our facilities in South Africa, we have achieved a strong local and international presence across Africa, Canada, EU member states, the UK, the Middle East and Asia. Today, we are one of the preferred brands for many retailers and wholesalers around the world.”

Innovative approach

The Company’s efforts to streamline and take control of its supply chain

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or more than 50 years, MAF RODA AGROBOTIC has specialised in engineering and manufacturing turnkey sorting, grading and packing system solutions for post-harvest fresh fruit and vegetables. MAF RODA AGROBOTIC offers custom-made solutions using highend internal-external optical sorting systems associated with advanced industrialisation processes for grading and packing, meeting the needs of any requests. MAF RODA AGROBOTIC guarantees excellent after-sales service thanks to fifteen subsidiaries worldwide and a network of forty-five agents operating in the largest fruit and vegetable producing countries. T +33 5 63 63 27 70 E maf@maf-france.com

GOGO’s biggest investment in this regard has been to cover some 500 acres-plus of orchards

has been compounded in recent years by a series of spends: including the establishment of GOGO Cold Rooms; a US$3.5 million facility designed and built-in proximity to GOGO producers to ensure that fruit is packed and moved into the cold chain as fast as possible; a new $7.5 million pack house which was finished this year, comprising the best machine technology available; and ongoing investment covering the more than 500 hectares of orchards with netting to ensure consistent yields are achieved year-in, year-out. “The market is growing by the day and the fact is people want to buy good looking fruit with good taste. There is often a stigma attached in regards to consumer reluctance to eating healthily, so extra emphasis has to be placed on the aesthetics of the finished product; adhering to strict size and colour specifications,” says Kruger. “And these expectations are constantly being revisited and

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...supplying the changing needs of the market is a challenge that requires continuous investment. If we can satisfy customer expectations then we will succeed and keep people coming back for more

www.maf-france.com adjusted. Therefore, supplying the changing needs of the market is a challenge that requires continuous investment. If we can satisfy customer expectations then we will succeed and keep people coming back for more,” says Kruger. GOGO’s biggest investment in this regard has been to cover some 500-acres-plus of orchards with netting, at a cost of $15,000 per hectare. “In the past three years, we have managed coverage of approximately 300 hectares and will have 500 hectares or more covered by the end of 2017. This is an ongoing process that takes time but promises to improve the surety and quality of fruit each season, among other benefits,” he explains. “Furthermore, the new pack house was finished three months ago; representing a huge investment to ensure we have the capacity to pack our fruit with the most technologicallyadvanced machinery that is available.”

State-of-the-art turnkey presorting & packing solutions designed and built up by our French group GoGo Citrus Pack House Marble Hall - South Africa

with courtesy of

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Specifically for your farm Specifically for your field Specifically for your crop Tel: 013 261 2640 Fax: 013 261 2641 Mobile: 083 303 3310 E-mail: afrifert@loskopagri.co.za Address: PO Box 327, Marble Hall, 0450, South Africa

The new pack house is a key investment for the Company

For your future

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Fruit excellence

In a bid to pass on the best return for its growers and improve farm-tobuyer freshness, GOGO has taken a cost-conscious approach to bringing its supply chain in-house over the past decade. Led by its motto, ‘the quest for fruit excellence’, the Company strives to instil confidence in all who come into contact with the GOGO brand. “We are not simply a Company seeking to turnover huge sums of money, but rather, a Company seeking to leave a legacy. Guided by this legacy, we decided to eliminate the middle man and invest in our own fully-fledged supply chain locally. In terms of logistics, we created RON (Rotterdam Overseas Network) to streamline our freight forwarding and documentation to minimise our costs and encourage operational dynamism,” says Kruger. “Adding to this was the formation of Kholwa Logistics to oversee the

A name almost as recognisable in SA as cicketer, AB de Villiers

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We are not simply a Company seeking to turnover huge sums of money, but rather, a Company seeking to leave a legacy

movement of our containers via railway from Pretoria directly to the Port of Durban; presenting not only significant cost savings, but also addressing the country-wide challenge of excessive trucks on South Africa’s roads.” Alongside these divisions sits GOGO Cold Rooms – state-of-the-art inland cold storage facilities that serve as a central hub for all the local farms – which is situated next to the main pack house. “These strategic investments allow us to remain at the cutting-edge of industry; maximising efficiency and minimising costs. By doing this we are in control of the whole cold chain from start to finish. Our inland cold room facility is the only one in South Africa capable of fulfilling the cold treatment requirements for special markets such as China, Taiwan and India, to name a few,” adds Kruger. “Non-stop training is required as a result of a year-round demand for products across so many markets with

Fruit may be seasonal but demand is not

different regulations and requirements. We are constantly sending our staff – 98 percent of which are local – for training delivered through internal training, seminars and schooling.” Additionally, placing concerted focus on social upliftment in the local communities has always been an integral part of GOGO’s core focus; having previously taken part in housing projects that have benefitted its employees. Now that the integrated supply chain is in place, GOGO is working hard to expand export routes to EU countries; achieving an all-year round supply of citrus and kaki fruit as a result. “Fruit may be seasonal, but demand is not,” concludes Kruger. “Through strategic partnerships and relationships, we ensure that we have access to a year-round supply of fruit. We only deal with the best and it is our promise that those who deal with GOGO can expect nothing less.”

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Capespan South Africa is affirming its position as a truly global fresh fruit exporter by leveraging the country’s continental gateway positioning to reach numerous international markets Writer: Matthew Staff | Project Manager: Joshua Mann elivering exceptional fruit straight from the orchard and right on to the shelves of the world’s retail, wholesale and food service partners, Capespan’s Outspan, Cape and Goldland brands are synonymous with fruit quality, and the business is looking to leverage such prominence as it looks to broader triumphs in the future. Covering more than 60 countries on four continents via its ever-widening export footprint, the global name in fresh produce has established itself in every new country of operation over the years and South Africa is no different; optimising the same procurement, marketing and export standards that have been achieved elsewhere around the world, while embedding a strong local emphasis via partnerships with almost 200 SA growers. Subsequently reducing supply chain costs and securing the shortest route to market for optimum fruit value across all of its customers, the business has formulated an overall offering that is difficult for others to contend with within the market. “Underscoring our service to

specifications. “Thanks to our state-of-the-art IT systems, producers can enjoy the advantage of an integrated reporting programme with full supply chain visibility via a B2B web portal, ongoing feedback and tracking the fruit through the chain.” Capespan South Africa ultimately takes the stresses and strains out of each client’s value chain, also offering fully-integrated risk management consultancy across all business units. “Apart from our good corporate governance, we have the expertise to identify, evaluate, control and finance the risk, plus flexible payment options to suit individual needs,” the Company adds.

Preferred global provider

Ensuring fruit quality

producers is our wealth of market experience,” the Company states. “This includes interpreting customer demands, transferring demands into packing specifications, ensuring fruit quality, and assisting on accreditations, certifications and auditing of pack houses and farms. In addition, we have a self-audit system for environmental issues, as well as safety and health

Via an innovative, engaging, solutionorientated approach, Capespan’s partner portfolio comprises some of the biggest names in international retail; naturally increasing the levels of responsibility in providing a top quality product, but epitomising the significance that the Group has been able to establish on a global scale. “A total service culture is entrenched across all areas of

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REDFERN LABELS

roudly partnering with Capespan for 38 years in different guises across it’s three divisions, Redfern supplies South Africa’s leading exporters and producers with a wide variety of customised label solutions, printing machines and systems. To stay ahead of the competition, Redfern’s services are available 365 days a year, 24/7. A spokesperson explained: “We get to know the business as well as the customer and live, eat, breathe and dream their business. Last season, we took an order from Capespan on the 26th December at 7.30am and had delivered it by 8.30am. Rapid response is the normal as we understand the wider industry pressures.” T +27 21 552 9680 E louisef@redfern.co.za

www.redfern.co.za

In every corner of the world, the names Outspan, Cape, Goldland and Capespan Gold are familiar brands

the Capespan business; including sales, marketing, product quality, procurement and administration,” its website emphasises. “This paves the way for strategic partnerships with our customers, providing them with a competitive advantage in terms of product quality, supply security, innovation, cost-efficiency, supply chain management and transparency. “Distinctive brands with a rich heritage support our expertise. In every

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From a product supplier perspective, we have regular reviews to maintain the ISA 9001:2008 requirements ensuring continuous improvement and to remain the preferred global provider of fresh produce and supply chain solutions

corner of the world, the names Outspan, Cape, Goldland and Capespan Gold are synonymous with meeting the quality fruit brand promise.” The former in particular has notched up more than 75 years as a recognised global fruit brand, ensuring consistency to a loyal customer base. The Company continues: “At Capespan, we develop a thorough understanding of our customers’ needs, utilising our competitive advantage - our people, sales and marketing methodologies, supply chain management, procurement and suppliers - to respond with appropriate products and value-adding service solutions to ensure that we own the customer relationship. “Our unwavering focus is to ensure that we exceed the needs of our customers worldwide through execution excellence.” Built within this ethos is an equally loyal workforce that ensures these standards are met on a daily basis and

with the most sustainable and safe redfern A5 ads processes in tow. 11 August 2016 10:45:30 AM “The Company supports all aspects of food safety, regulatory requirements and environmentally sound practices in fruit production,” its policies note. “This is achieved by promoting ethical fruit production, ensuring worker health & safety, fair treatment of farm and pack-house workers and maintaining traceability of products from orchard to store. “From a product supplier perspective, we have regular reviews to maintain the ISA 9001:2008 requirements ensuring continuous improvement and to remain the preferred global provider of fresh produce and supply chain solutions.”

Innovation, tenacity and sustainable risk-taking

With port facilities in Cape Town, Port Elizabeth, Durban and Maputo - complemented by strategically-

placed cold stores - the Company’s supply chain management strategy is understandably refined in order to meet such widespread criteria and in achieving direct-to-market channels for an industry where freshness is paramount. As such, the business has affirmed its position as a supplier of choice, enabling Capespan to focus on improving its offering and value-formoney at product level. Recent initiatives to this end include stabilising its prices for growers in South Africa, and improving its transportation logistics to ensure products arrive at their destination in the same condition as when they left Capespan’s facilities. A dramatic revamp of the Company’s procurement strategy has also been encompassed within this proactive approach, in response to market fluctuations; another indictment of the flexibility that can be achieved with a

Company of Capespan’s size, and the commitment to quality that is set to continue long into the future. “We strive to excel through continuous improvement in creating value for all stakeholders as a fresh fruit marketing company,” the business concludes. “We drive and build a performance culture that rewards innovation, tenacity and sustainable risk-taking, while we gain advantage from different ideas and perspectives by valuing diversity in the multi-cultural, global environment in which we operate “We also look to safeguard the livelihood of future generations and all our stakeholders by having due regard for the impact of the economic, social and environmental needs of the communities in which we operate, by operating with transparency, authenticity and fairness to create trust and ethical behaviour within the Capespan Fruit division.”

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Pace of Change Evolving with the

In order to stand out in an increasingly demanding business landscape, Medtech Angola has aligned its continuous improvement strategy with the Government’s ongoing efforts to streamline the country’s economy Writer: Emily Jarvis | Project Manager: Donovan Smith

uided by a vision and mission that has seen the Company through times of wider economic and political instability, Medtech Angola has adopted a continuous improvement strategy that combines international best practices

César Assis, Chief Executive Officer

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with the national resources required to prosper in an ever-changing market. Now focused on strengthening its partnerships and diversifying its client portfolio in line with the relevant products and services to suit a wider range of customer needs, the Company has to strike a balance between cutting costs while monitoring market trends to stand out in an increasingly demanding business landscape, strongly impacted by the current global downturn. “Founding the Company during a time of political instability in 1991, we quickly learned how crucial it was to adapt to both the local constrains and opportunities,” says César Assis, Chief Executive Officer (CEO). “After the war, the Government made substantial investments in order to streamline the economy. During this time, Medtech grew and increased its portfolio, striving to be known as an Angolan turnkey solutions Company

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APC Creating certainty through sustainable partnerships In 1992, Medtech Technology, based in Angola, became globally recognised as an elite partner, having invested significantly in APC by Schneider solutions and the requisite certifications. The APC by Schneider Electric and Medtech Technology partnership has resulted in the implementation of Tier III Uptime Institute certified turnkey data center solutions as well as making 650VA to 2MW secure power for industrial solutions available for all major financial and state owned institutions. APC by Schneider Electric, the leading global brand for integrated IT physical infrastructure and software, enables individuals and businesses to anticipate the unexpected, protecting critical information and data — providing certainty in a connected world.

Adopting the latest technologies and practices

serving a wide range of customers, including the Governmental and oil & gas sectors, which we ultimately were able to accomplish through a proactive approach to business and subsequent strategic restructuring.” Medtech’s Chief Operations Officer (COO), Ari Sanches offers: “In Angola everything happens very fast. One day you are constrained by a war and in the other you are in the middle of a development boom. Those changes make you develop and adapt expeditiously. In 2010, our major capital investments began and we achieved ISO 9001:2008 certification which was a process which made us really revaluate all of our internal procedures; including the decision to adopt a new ERP system and to centralise our different warehouses into a supply centre.” Not only did adopting the latest technologies and practices contribute to Medtech’s reputation for reliability, but the subsequent growth achieved

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By spreading out these investments through our continuous improvement programme, we invested in a state-ofthe-art data centre and developed a strategy to futureproof the organisation

and reinvestments made saw its four divisions – Medtech Divisão Médica, Farmácia Qualidade, Medtech Tecnologia and Shoptech – become more competitive on the national market.

Picking up pace

Seizing the opportunity for expansion six years ago, Medtech’s major capital outlays were led by a proactive set of internal targets stipulating investment not only in technology, but also in human resource and its support structure which in turn, proved to be crucial to achieving optimal operational efficiency. “To implement change is always a delicate process,” says Assis. “By spreading out these investments through our continuous improvement programme, we invested in a stateof-the-art data centre and developed a strategy to future-proof the organisation. We then established separate divisions with different target

Certainty in a connected world Integrated IT physical infrastructure,software, reliable power and availability solutions for IT and communications technology. APC enables individuals and businesses to anticipate the unexpected, protecting critical information and data. Itâ&#x20AC;&#x2122;s certainty in a connected world.

www.apc.com

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Medtech Business Divisions Medtech Divisão Médica (Medtech Medical Division) The Medical Division is specialised in the importation and nationwide distribution of hospital equipment and consumables, medicines and treatments, vitamins and supplements, products for the baby and mother, personal care and orthopaedics.

Farmácia Qualidade (Pharmacy Quality) Located in Luanda, Viana, Lobito, Malanje and Sumbe, Farmácia Qualidade has the usual wide range of medicinal products available from a pharmacy; with a fully-trained pharmacist on-hand to advise and provide support in all matters concerning health and wellness. Discounts are also available for Angolan employers and their staff through the +Saúde loyalty programme.

audiences across the IT, security and power, and pharma sectors; both in a retail sense, as well as the corporate segments to further showcase our diverse and flexible range of core skills.” Recognising the Company’s close relationship with clients and suppliers as a key tangible asset to its success, Sanches adds: “To succeed in the Angolan market requires continual monitoring of our customer feedback and optimising our internal resources in line with this in order to improve our procedures and behaviour. We believe in ongoing training throughout our internal supply chain and invest in the latest technology to facilitate this.” Adopting two main hiring strategies – taking on trainees straight from university or recruiting the right individual for more specialist and demanding roles – Medtech operates a very detailed training programme that is designed in accordance with the brands in which it works with. “We always try to have a junior employee working with a senior

Medtech Tecnologia (Medtech Technology) Located in Luanda, Sumbe, Lobito and Malanje, Medtech Tecnologia specialises in the development of IT, communications, and security and energy projects throughout the entire value chain. The Company has strong partnerships with the likes of APC by Schneider, Dell, HP, Oracle, EMC, Netapp, Cisco, Microsoft, Vmware, Dimep, Primavera, Symantec and Kaspersky.

Shoptech Established in 2004, Shoptech is a growing technology retail chain supported by a wide range of categories; namely informatics, control and security, power, communications, office supply, audio and image, photography, entertainment, and books and manuals. Shoptech’s Inauguration

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Ari Sanches, COO

one, contributing to an individual’s job satisfaction and continuous development,” confirms the COO. “In the case of Medtech Tecnologia, for example, we made significant investments in bolstering our presales team with the creation of an ICT Engineering Department to better define our clients’ needs, training our customer managers to improve our customer-centricity in the sales department and improving our

Shoptech shop

aftersales with the creation of both a customer service team and our own laboratory; officially certified by the suppliers, to guarantee adequate support,” adds Assis. A far-cry from Medtech’s original Company structure two decades ago, its enlarged portfolio of loyal customers and partners, ongoing local training since day-one and investments in marketing to raise brand awareness epitomise Medtech’s long-term investment strategy. “Marketing has been a growing focus in the past couple of years and has become an integral part of our ability to communicate our portfolio more effectively to new target customers,” comments Assis.

New obstacles

Upholding its reputation among suppliers, partners and customers for honesty and integrity has had a positive

...the Medtech Group is still currently a major player in both the IT and health sectors and our restructure has certainly helped us to reduce our costs and prepare us to face these new obstacles on the horizon

impact on the Medtech’s growth aspirations; further solidified by strong references and proven success stories in both the public and private sector. “Today, Angola is facing a new challenge, different from any other crisis that the country has faced before. To fully overcome it, we will need strong measures from the Government and perseverance from investors and companies alike,” the CEO summarises. “Nevertheless, the Medtech Group is still currently a major player in both the IT and health sectors and our restructure has certainly helped us to reduce our costs and prepare us to face these new obstacles on the horizon.” He concludes: “While the next threefive years will be challenging, Medtech has demonstrated its tenacity in the past and understands adversity very well, so we will continue to face it day-by-day. We are an Angolan Company and we wouldn’t have it any other way.”

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One of the locomotives recently delivered by China under the 15th protocol

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Rehabilitating a

Transport

Lifeline TAZARA’s new Managing Director will be the driver behind a restructure that will reposition the organisation as a market-driven commercial business known for excelling in the execution of the movement of traffic Writer: Emily Jarvis | Project Manager: Callam Waller anzania-Zambia Railway Authority (TAZARA) is woven into Africa’s history books as a transport lifeline able to navigate the often topographically challenging terrain between Tanzania and Zambia. Having commenced construction in October, 1970 with assistance from the Chinese Government, the finished track covering a distance of more than 1,800 kilometres now connects Dar es Salaam to Kapiri Mposhi in Zambia; providing strategic links to the nearest port for Zambia’s copper and mineral exports. Over the years the line has proven important in the transportation of other goods such as maize and fertilisers, while also helping to link the hinterlands in the Northern Province of Zambia with the northeast of Tanzania; where passenger rail services had previously been absent. “It is not easy to fathom the extent of heroism and ingenuity displayed by both the Chinese people,

represented by their great engineers and workers and the Tanzanian and Zambian people, who joined the Chinese for the construction of this unique railway at the time,” recalls TAZARA’s new Managing Director (MD), Bruno Tandeo Ching’andu, who was appointed in April, 2016.

Bruno Tandeo Ching’andu, Managing Director

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SHAMY INTERNATIONAL LTD

hamy International Ltd was established with an aim to meet the challenges of the everchanging freight forwarding landscape in Africa. Registered with the Tanzania Customs Regulatory Authority and also a member of the Tanzania Freight Forwarders Association, our office location is ideally located to serve our neighbouring landlocked destinations such as Rwanda, Malawi, Zambia, DRC, Uganda and Burundi. Our experience and commitment within the freight forwarding industry has enabled the Company to best serve all our customers’ needs. T +255 (22) 2129132 E info@shamy.co.tz

www.shamy.co.tz Steel coils being loaded from a ship to TAZARA wagons where TAZARA interfaces with the Port of Dar es Salaam

“The hostile environment, through which the line often had to pass, did not deter them. Almost 89 million cubic metres of earth and rock had to be moved, 320 bridges, 22 tunnels and 2,225 culverts were built. The line was finally completed two years ahead of schedule in June, 1975 and was officially inaugurated after trial operations a year later.” Recognising the revitalisation efforts now required to restore the railway to its former glory, the new Managing Director is hoping to restructure the organisation – with the help of an outsourced consultancy company – in order to improve efficiencies and transform the traditionally politicallycharged mindset of TAZARA’s 50-50 Government shareholders into a commercially-run attractive business proposition. “There have been a lot of changes since I joined the organisation. We are actively looking for people to help us with our restructure in order

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If we can continue making these adjustments to improve our line, then we hope to attract more attention from other markets, such as general goods markets

to position TAZARA – also referred to as ‘Uhuru Rail’ – as a marketdriven commercial business; known for excelling in the execution of the movement of traffic. In this regard, we have already reduced the transit time of cargo to Dar es Salaam, which has left our current customers incredibly pleased,” Ching’andu says. “If we can continue making these adjustments to improve our line, then we hope to attract more attention from other markets, such as general goods markets. We are already in talks with major logistics companies and hope to prove we have what it takes to grow into new segments.”

Rehabilitation

A challenge felt across the continent is the amount of congestion on the roads as well as gaps in road infrastructure making it difficult to transport from A to B. This is no different in Zambia and Tanzania where TAZARA strives to capitalise on the need to remove traffic

S H I P P I N G

L O G I S T I C S

Providing the best logistics solutions

Ocean freight

Transportation

Project cargo

Consulting

A clearing & forwarding company. We invite you to avail our high quality services at the most affordable prices. Rest assured and rely on us for quick cargo processing. So feel free to come and work with us, for efficient and very effective services.

Proud to be working alongside Tazara!

Storage & warehousing

Self-drive services Transport & & deliveries heavy-lift logistics 4th Floor, Elite City Building Samora Avenue / Morogoro Road P.O. Box 33504, Dar es Salaam, Tanzania Tel: +255 (22) 2129132 Fax: +255 (22) 2122 049 Email: info@shamy.co.tz

www.shamy.co.tz

TAZARAâ&#x20AC;&#x2122;s single lane track is the 1,067mm gauge that interconnects with Zambia, Zimbabwe, Congo and the rest of Southern Africaâ&#x20AC;&#x2122;s railways

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Passenger train at Chozi in Zambia

from the limited roads links and make the transition to rail. However, road infrastructures are improving, giving customers more choices for moving their cargo than they have had in the past. We know we are the answer, but we just need to make sure we can fulfil each customer’s requirements to their satisfaction before accepting new cargo opportunities,” he summarises. Thanks to the 15th Protocol in the form of an interest-free loan from the Chinese Government, TAZARA has received four new locomotives, two rescue rail cranes and a large number of materials for track maintenance to help achieve its vision of becoming the preferred transport organisation in the sub-region. Additionally, the organisation will now be actively involved in ferrying exports and imports from the DRC under a new agreement that will see locomotives from the latter country transport goods to the Zambian border

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Above all else, TAZARA is an important corridor in the SADC region that enables transport to the port from Zambia, the DRC, as well as products going to the Great Lakes in Burundi and Rwanda

at Sakania, then make their way to a Zambia Railways locomotive. “This trickle of investment is a good start, but we are now looking for capital to invest in new equipment and materials for the rehabilitation of the track and communications systems to increase our efficiency and output,” says Ching’andu. “Recapitalisation is essential at this time to strengthen our position, and ensure the provision of a reliable and quality transport service.” With the right capital in place, TAZARA’s vision over the next threefive years is to make the improvements required to remove speed restrictions with the hopes to move cargo along the track at a minimum of 100 kilometres per hour while having a better grasp on traffic monitoring through modern communication systems that enable continuous remote control. “Over the same period, we strive to have 80 locomotives available to cope with the expected increase in demand for our services,” the MD highlights.

S H I P P I N G

L O G I S T I C S

Passengers in the third class coach

100 kph

TAZARA’s vision over the next three-five years is to remove speed restrictions allowing cargo to be transported at a minimum of 100 kilometres per hour

Two female artisans working on the signals in Mpika

A fantastic opportunity

An increase in the use of technology to support the efficient transportation of cargo will also require expertise to be brought in as part of a skills transfer activity to enhance TAZARA’s internal processes. “Local training is something we are a strong advocate of. Right now, we are looking at ways to bring in expatriates to impart the skills required onto a streamlined workforce to improve our customer service,” Ching’andu comments. He concludes: “Above all else,

TAZARA is an important corridor in the SADC region that enables transport to the port from Zambia, the DRC, as well as products going to the Great Lakes in Burundi and Rwanda. We are the one Company that can help develop the area in which the line passes as there is very little other transport infrastructure in the area. In the long-term, the terrain poses fantastic opportunities for agriculture and other business segments, and we want to be the engine for economic development in the region.”

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ACA

WORLD

CASHEW

FESTIVAL

E V E N T

EXPO

2016

F O C U S

Africa takes centre-stage as the largest regional cashew producer

E V E N T

D E TA I L S

WHEN: 19-22 September, 2016 WHERE: The Ledger Hotel & Conference Centre, Bissau, Guinea-Bissau WEBSITE: www.africancashewalliance.com/ en/world-cashew-festival

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THE AFRICAN CASHEW Alliance (ACA) will host the 10th Annual World Cashew Festival and Expo from 1922 September, 2016 at the Ledger Hotel & Conference Center in Bissau, Guinea-Bissau. The ACA conference is consistently the world’s largest cashew event, bringing together a diverse array of cashew industry stakeholders from across the globe. During an exciting four days, the event will bring together stakeholders of all kinds to network and discuss the latest industry trends, developments, opportunities and challenges. The ACA World Cashew Festival and Expo 2016 is held in partnership with the Government of Guinea-Bissau, the National Agency for Cashew (ANCA) who oversee cashew-related policies in Guinea-Bissau, as well as a World Bank project focusing on private sector rehabilitation in the cashew industry (PRSPDA). The Festival serves as a unique opportunity for African

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and international stakeholders to converge and exchange ideas on the African cashew industry- growing approximately half of the world’s cashew supply. Africa is the largest regional producer of cashew and thus of vital importance to a healthy and productive global value chain. This year’s conference theme – ‘A Decade of Transformation’ – will focus on major developments in the cashew sector over the past 10 years and the future evolution of the industry. ACA, formed in GuineaBissau in 2006, will celebrate its 10th anniversary during the conference and reflect upon the progress of the African cashew industry; from farming to processing to international trade and competitiveness. The four-day programme will engage various local and international stakeholders in the industry that have contributed and are committed to the success of the African cashew industry.

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FIELD TRIPS TRIPS FIELD FIELD TRIPS Discover Guinea Bissau’s Bissau’s cashew cashew industry industry FIELD TRIPS Discover Guinea Discover Guinea Bissau’s cashew industry industry and beautiful beautiful cultural sites Discover Guinea Bissau’s cashew and cultural sites and beautiful beautiful cultural cultural sites sites and

For more more information, information, email email aca@africancashewalliance.com aca@africancashewalliance.com For For more more information, information, email aca@africancashewalliance.com aca@africancashewalliance.com or visit www.africancashewalliance.com For email or visit www.africancashewalliance.com or visit visit www.africancashewalliance.com www.africancashewalliance.com or twitter.com/africancashewalliance facebook.com/africancashewalliance twitter.com/africancashewalliance facebook.com/africancashewalliance twitter.com/africancashewalliance facebook.com/africancashewalliance twitter.com/africancashewalliance facebook.com/africancashewalliance linkedin.com/company/african-cashew-alliance linkedin.com/company/african-cashew-alliance linkedin.com/company/african-cashew-alliance linkedin.com/company/african-cashew-alliance

POWERING

AFRICA:

NIGERIA

E V E N T

INVESTMENT

SUMMIT

F O C U S

Nigeria’s power, finance and energy investors to meet in Abuja

E V E N T

D E TA I L S

WHEN: 12-14 October, 2016 WHERE: Abuja, Nigeria CONTACT: monique.bonnick@energynet.co.uk WEBSITE: www.powering-africanigeria.com/

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LEADING DEVELOPMENT FINANCE institutions and heads of Nigeria’s most accomplished energy companies will meet with national Government at EnergyNet’s Powering Africa: Nigeria Investment Summit, taking place from 12-14 October, 2016 in Abuja. More than 50 public and private sector decision makers will address 300 power developers and investors to discuss the driving factors behind power development in Nigeria. The Summit will underpin Nigeria as a hub for regional gas development as well as an important market for clean and renewable energy. Key themes of the conference include how to diversify Nigeria’s energy mix, regulation policy to promote international investment in renewables, and examining Nigeria’s off grid energy market; promoting energy access for everyone. This meeting follows EnergyNet’s recently concluded 18th Africa

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Energy Forum (AEF) held in London in June, which welcomed 2,200 vetted investors from the Americas, Europe and Asia, and government representatives from 30 African countries. Major deals were signed at the meeting; including a merger between Harith General Partners and Africa Finance Corporation (AFC), KFW’s US$150 million 15-year loan facility to AFC, Access Power’s US$7 million award to three renewable developers, Mainstream’s US$117.5 million Africa Clean Energy Equity Funding, and DFID’s two Compacts in Kenya and Sierra Leone to name a few. The meeting is officially endorsed by the Energy Commission of Nigeria, the Transmission Company of Nigeria and the National Power Training Institute of Nigeria. It has the official support of the UK’s DFID-funded Nigeria Infrastructure Advisory Facility, Germany’s GIZ and of the European Union.

Energynet’s initiatives

the

West

GRID CLUB

The Annual

Hilton Transcorp | Abuja

12-14 October 2016

Getting Electricity Investments Moving

Renewables - IPPs - Gas - Off - Grid

We all understand the scale of the opportunity in Nigeria, now it’s time to understand the priorities and pace of development. Endorsing Partners