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Transnet Pipeline’s ‘Africa strategy’ follows 50 years of safe, efficient, cost-effective and reliable operations as head of SA’s national network

JAVA HOUSE 16 Rising to prominence in its quest for the perfect cup of java

PWC AFRICA REPORT 22 Africa is poised for a digital revolution with growth on the continental business agenda

ARCELORMITTAL

SOUTH AFRICA 38 Driving profitability back into South Africa’s steel industry

QUICKSURE 58 Award-winning insurance built on a reputation for excellence

AFRICA OUTLOOK ISSUE 39 F E A T U R I N G : K I N G & W O O D M A L L E S O N S | E I L B E C K C R A N E S

| AIRC 2016


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Business Travel Guides

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i qui ea estota quod , us es repero qui imus. cimi repudan disti sto minvere, Port Elizebeth arciisc iamu iandusdamdis energy ilitaes excearc nology and t, towards tech cone a is omn Jarvis Writer: Emily

managing proactively ld the key in tion of energy to Eskom’s alloca the future with a strict in South Africa the potential ce routine le maintenan more reliab securing a to ion ved longsolut for an impro electricity flow ok. exactly term outlo solution is A long-term short-term red too, with what’s requi ded in negativity; shrou tly making forecasts utility recen the country’s at a local power ers 1,000 work continent’s dant as the continues plant redun ced economy most advan e power sever most to suffer its

th Port Elizabe g resigned Tsotsi havin Chairman Zola the CEO, Tshediso tics could nding after suspe fellow dvanced analy three of his in y is held into Matona and hold the key while an inquir led utility. managing executives proactively troub tion of tions of the Eskom’s alloca Africa in the opera r court in labou a h, South to Marc In an attempt energy . rg dismissed enance suspension Johannesbu a strict maint his urn with e ion to na to overt the futur gement potential solut flow by Mato has there been a mana ioned routine the le electricity ment Not only more reliab since the afore minated outlook. securing a problem, but ved long-term was disse impro ly which – an exact for has redundancy solution is – another union A long-term with short-term text message walkout. It is clear via too, red a new what’s requi ded in negativity; s have threatened and suspen-sion tly making forecasts shrou in Eskom’s that job-losses utility recen of confidence its reliability. the country’s at a local power plant led to a loss ers rnance and 1,000 work nent’s most corporate gove has suffered from as the conti to suffer utility redundant tment The power my continues ing and inves up advanced econopower shortages since years of underfund e failed to keep has sever and s most . its in new plant is about using in 2008. in nd. Now, it they began is currently with dema y, the firm gement; Additionall its senior mana conflict with

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. began in 2008 since they in shortages is currently y, the firm gement; Additionall its senior mana conflict with Tsotsi having resigned Chairman Zola the CEO, Tshediso nding after suspe fellow his three of y is held Matona and while an inquir troubled tives execu tions of the into the opera

in utility. labour court In March, a an rg dismissed urn his Johannesbu overt Matona to a attempt by there been . Not only has since the suspension but nt problem, manageme dancy – which ioned redun message – ment afore ed via text was disseminat threatened a new has another union walkout.

dence suspenLoss of confi job-losses and dence It is clear that of confi led to a loss rnance and sions have corporate gove in Eskom’s utility has The power rfunding its reliability. years of unde suffered from t in new plants and tmen inves demand. and keep up with ’s funds has failed to t using Eskom Now, it is abou nt and logical efficie labour in the most this, ble. Not only ways possi faults hav. and technical disruption

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Our Business Travel section not only gives executives the complete guide to the world’s most popular and populous locations, but also gives said locations the perfect opportunity to showcase their own businesses, events, venues and services to a truly international audience and readership of more than 165,000 each month. To share in this unrivalled exposure and to put your own offering on our map, then please contact our Sales Manager, Jake Aldridge to find out more.

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W E L C O M E South African Success Stories Amid a sea of negative stories emanating from the traditional continental gateway over the past year, we felt it was time to revisit the positives from South Africa this month. Engulfed in energy, oil and economic crises, the search for success may seem challenging on the face of it, but a country doesn’t just lose all of its business acumen overnight, and there are still plenty of internationallyTransnet Pipeline’s ‘Africa strategy’ follows 50 years of safe, efficient, cost-effective and reliable operations as head of SA’s national network acclaimed businesses and astute business leaders ready to strike once the South African iron is hot again. Leading the way this month is Transnet Pipelines, the aptly named ‘pipeline custodian’ for the country, celebrating 50 years in its role through the unveiling of its ‘Africa strategy’ and via a series of installations that now takes its national network beyond 3,800 kilometres. The Company’s Manager of Communications and Marketing, Saret Knoetze enthuses: “Our aim is to be a Company that has a well-established footprint in Africa, to be able to reflect on the continued integral part we played in the economy of South Africa...” Such goals are also pillars followed by global steel and mining leader, ArcelorMittal, who is working closely with the South African Government in a bid to overcome some of the country’s commodity challenges. “The global steel crisis has undoubtedly affected our business and we have had to respond swiftly and decisively to ensure that we survive into the future,” acting CEO, Dean Subramanian explains. A further South African instalment comes from up-and-coming underwriting management agency and short-term insurance specialist, QUICKSURE; a Company situated in a finance sector that continues to watch on expectantly in the hope of a general industry upturn. Abelard Underwriting Agency and Sumac Microfinance Bank are two more businesses featured within our showcasing assortment that are in this financial state of limbo at present; paving the way for our usual smorgasbord of industry leaders from the length and breadth of the continent. Eilbeck Cranes, Malplast Industries, MTN Benin and Airtel Seychelles all share their secrets to success, while PwC Africa and Java House Kenya also offer rare and welcome positives in what continues to be a challenging period for African Matthew Staff business. Editorial Director, WWW.AFRIC AOUTLOOKMAG.COM

JAVA HOUSE 00

Rising to prominence in its quest for the perfect cup of java

PWC AFRICA REPORT 00

Africa is poised for a digital revolution with growth on the continental business agenda

ARCELORMITTAL SOUTH AFRICA 00

Driving profitability back into South Africa’s steel industry

QUICKSURE 00

Award-winning insurance built on a reputation for excellence

AFRICA OUTLOOK ISSUE 39 F E A T U R I N G : K I N G & W O O D M A L L E S O N S | E I L B E C K C R A N E S

Outlook Publishing

| AIRC 2016

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

PRODUCTION Production Manager: Daniel George daniel.george@outlookpublishing.com Art Director: Stephen Giles steve.giles@outlookpublishing.com Advert Designer: Mandy Farnell mandy.farnell@outlookpublishing.com Images: Thinkstock by Getty Images

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 Project Managers: Callam Waller callam.waller@outlookpublishing.com Eddie Clinton eddie.clinton@outlookpublishing.com Joshua Mann joshua.mann@outlookpublishing.com Natalie Cole natalie.cole@outlookpublishing.com Stuart Parker stuart.parker@outlookpublishing.com

ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Admin Assistant: Sophia Curran sophia.curran@outlookpublishing.com Office Manager: Katie Park katie.park@outlookpublishing.com WEB DESIGN: Hamit Saka IT: James Le-May

OUTLOOK PUBLISHING Managing Director: Ben Weaver ben.weaver@outlookpublishing.com Chairman: Mark Weaver CONTACT Outlook Publishing Ltd Woburn House, 84 St Benedicts Street, Norwich, Norfolk, NR2 4AB, United Kingdom Sales: +44 (0) 1603 959 652 Editorial: +44 (0) 1603 959 655 SUBSCRIPTIONS Tel: +44 (0)1603 959 655 Email: matthew.staff@outlookpublishing.com

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

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QUICKSURE A World at Your Fingertips

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ABELARD UNDERWRITING AGENCY Partnering for Strategic Growth

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TRANSNET PIPELINES Integrity in the Pipeline

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50 years of safe, efficient, costeffective and reliable operations

Award-winning insurance built on a reputation for excellence

Upholding an ethos of professionalism, integrity and service excellence

MANUFACTURING

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NEWS

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KING & WOOD MALLESONS The Evolving Paradigm of Chinese Investment in Africa

All the latest top stories across the month from Africa

ARCELORMITTAL SOUTH AFRICA Transforming South Africa’s Economy

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Driving profitability back into South Africa’s steel industry

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EILBECK CRANES Engineering Flexibility

Making mobile banking a walk in the park

Consolidating expertise with strategic R&D investments

T E C H N O L O G Y

Africa’s largest trading partner feels the effects of the commodity crisis

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SUMAC MICROFINANCE BANK Empowering Entrepreneurs

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JAVA HOUSE East Africa Wakes up to the Smell of Coffee

MTN BENIN Driving Innovation as a Cultural Change

Making customers’ lives a whole lot brighter

Rising to prominence in its quest for the perfect cup of java

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MALPLAST INDUSTRIES LTD Quality and Efficiency at All Times Delivering quality, on time and with innovation

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TECHNOLOGY Poised for a Digital Revolution

Growth is on the African Business Agenda

AIRTEL SEYCHELLES Island Nation Innovators Airtel’s first foray into Africa remains a key Group asset

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An innovative avenue for brainstorming business strategies

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OIL & GAS

The Outlook for Africa’s Oil & Gas Sector Prices are just one part of the puzzle in Africa’s energy industry, according to Peter Roberts, Head of the Global Oil & Gas Practice at Orrick, Herrington & Sutcliffe LLP Africa is home to some of the world’s largest petroleum discoveries in recent years. A relative lack of exploration throughout the continent offers huge potential for the further exploitation of untapped resources. But there are also plenty of difficulties ahead for much of the continent.  Mozambique and Tanzania continue to vie for the title of principal exporter of LNG from East Africa. Continuing offshore gas

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discoveries indicate huge reserves but regulatory and commercial progress continues to be slow and the present global glut of LNG offers a reduced incentive to race to the market.   Still on the eastern seaboard, significant reserves promise is held by Kenya and Madagascar, although in Madagascar’s case the economic profile of commercialising heavy oil deposits will always be challenging in a low price environment. In Uganda, there are continuing difficulties relating to agreeing an export pipeline

route across Kenya and/or Tanzania so that Uganda’s significant but landlocked oil discoveries can be commercialised. On the other side of the continent, each of Mauritania, Senegal and Benin indicate attractive reserves bases ripe for further exploration, albeit with the attendant cost consequences of deep-water exploration and production.   The nascent oil industry in South Sudan has suffered badly due to the civil war that broke out in early 2014, with reduced production from the Unity region. A working group established between the governments of South Sudan and Sudan earlier this year has recognised the severity of the situation, and is working to recast the current tariff arrangements to create something that benefits both countries.  It is obvious that now is the time for private sector participants to invest (whether through licensing rounds, farm-ins or acquisitions) to secure relatively low priced reserves. But for potential investors, much will depend on them being comfortable with the various non-economic project risks.   For all of the promise, a lot of Africa’s petroleum estate is stricken with major political, constitutional and regulatory problems that make any investment case a hard sell. This can only be hidden behind the more obvious problems of the current low oil price environment for so long.   There is a ray of hope however: these problems have frequently been faced elsewhere in history and geography in the maturation of petroleum–producing provinces. Lessons learned from other jurisdictions could be applied for the benefit of Africa, if there is a willingness to do so.

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


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Banking Security in Africa Reaches Tipping Point Entersekt CEO, Schalk Nolte, looks at the growing security risks for banks and financial institutions in Africa and explains why complacency is no longer an option Despite some consolidation in the African banking market, most of the banks we are speaking to remain confident about future opportunities on the continent. However, we have noticed security steadily making its way towards the top of the agenda for bank executives, and rightly so. Africa’s relative lack of infrastructure is both a blessing

and a curse for banks. While access to traditional services is still a challenge, innovation in technology can offer big opportunities. Mobile has become the de facto means of banking in many parts of Africa and, as mobile penetration – particularly smartphone penetration – increases, this is allowing banks to connect with more of the population than ever before, and to do so in a more targeted, personal way. A study looking at trends in banking in sub-Saharan Africa (SSA), released in June, 2015 by the European Investment

Bank, noted that SSA leads the world in mobile money accounts. While just two percent of adults worldwide have a mobile money account, in the SSA region, 12 percent have one. Although the base is still low, financial inclusion through mobile is growing fast. While this is encouraging for the continent and the banks involved, banking CEOs are increasingly concerned about systemic risk and, more importantly, about the growing risk of cybercrime.

in Africa by 2040. It may seem ironic that Angola, Africa’s second largest oil producer, is committed to pursuing renewable energy. The reasons go beyond the drop in oil prices or the need

for diversification of the country’s economy. It’s a question of meeting basic human needs. More than 13 million Angolans, or about 26 percent of the population, have no access to electricity, according to the International Energy Agency (IEA). Rural areas, especially those in the rural south of the country, have no access to a grid. Due to the exceptionally sunny climate, solar energy holds huge potential for Angola, especially in rural areas. Solar Solutions West Africa reports that solar generation systems constitute an important part of Angola’s Rural Electrification Programme, issued in 2012, which focuses on building mini-systems and distribution of electricity. The goal is to benefit some eight million people, increase capacity by four times and to achieve an electrification rate of 50-60 percent.

ENERGY & UTILITIES

The Case for Solar Energy in Angola Zandre Campos, a global entrepreneur emerging out of Africa, is making a major impact through his company, Angola Capital Investments (ACI) recently turning its attention to opportunities in Angola’s renewable energy sector. The International Renewable Energy Agency notes in its Africa 2030 report that renewable energy on the continent has the potential to quadruple to 22 percent. Abundant solar energy potential – as much as 10 terawatts – and substantial wind resources in Africa’s eastern, northern and southern regions, have the potential for rapid development and scalability. Renewable energy may provide up to one quarter of electricity

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

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Seven African Ministers of Energy to Attend AEF The 18th Africa Energy Forum (AEF) will welcome 2,000 investors to London from 22-24 June to draw on the existing UK-Africa trade relationship and take advantage of the expertise and experience of UK companies. AEF is an annual conference designed as a meeting place for decision-makers active in Africa’s power, energy, infrastructure and industrial sectors. According to EY’s 2014 Africa Attractiveness Survey, in recent years the UK has overtaken the US to become the biggest foreign investor in Africa. South Africa remains the UK’s largest trading partner in Africa, followed closely by Nigeria. Nick Hurd, Parliamentary Under Secretary of State for International Development, Government of the United Kingdom, will be joined by UK speakers from Fieldstone, Barclays Africa, CDC Group, Globeleq, Norton Rose Fulbright, EleQtra, InfraCo Africa and PwC to examine why Africa continues to remain a top investment destination for the UK; taking a look at the success stories of established investors.

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Angola Dominates African Hotel Development The number of planned hotel rooms in Africa has soared to 64,000 in 365 hotels, up almost 30 percent on the previous year, according to new figures from the annual W Hospitality Group Hotel Chain Development Pipeline Survey. A major shake-up in the rankings by country saw Angola, never before listed among the top 10, push Egypt SHIPPING & LOGISTICS

Safmarine Moves Headquarters to South Africa Safmarine, the international container carrier focused on trade to and from Africa, West and Central Asia, is to relocate its head office to Cape Town, South Africa in a move that will see the Company return to its roots, having been established in South Africa in 1946. Since 2012, Safmarine’s head office has been located in Copenhagen, one of the results of the prior acquisition by Marsk Line in 1999. “Safmarine has a clear strategy and a strong outlook. And Africa is core to the Safmarine strategy. Therefore it is an obvious choice to move Safmarine’s head office to Cape Town in South

out of second place, due to a major deal there signed by AccorHotels. The increase is largely down to strong growth in sub-Saharan Africa, which is up 42.1 percent on 2015 and is significantly outstripping North Africa which achieved only a modest 7.5 percent pipeline increase this year. The Survey has been published ahead of the African Hotel Investment Forum (AHIF), organised by Bench Events. The conference attracts all the major international hotel investors in Africa and is being held for the first time in Lomé on 21-22 June. Africa,” said Vincent Clerc, Chief Commercial Officer of Maersk Line. “We have two strong brands in Africa: Safmarine and Maersk Line. In order for them to continue to be successful, we need to strengthen the local coordination. We believe this can best happen under one leadership team based in the region,” says Vincent Clerc.

Safmarine’s CEO, David Williams will relocate with the head office

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


T E C H N O L O G Y

Nokia Shows Latest Innovations at MWC-R in Accra

ENERGY & UTILITIES

100 MW Kathu Solar Project to Begin Construction ENGIE has announced that the Kathu Solar Park project in South Africa, owned by an ENGIE-led consortium with South African partners, has signed a 20-year Power Purchase Agreement (PPA) with Eskom, with construction

Underlining its strong presence in Ghana, Nokia demonstrated its latest innovations to local telecom operators, Government departments, enterprises and business partners at the MWC-R (Mobile World Congress Roadshow) in Accra in May. at the site due to begin shortly. The The demonstrations include in key concentrated solar park, situated areas like IoT, public safety network, in the Northern Cape Province, 600 small cells, customer experience kilometres South-West of the national management, IP backhaul network, capital Pretoria, is expected to be transport network and Software operational in the second half of 2018. Defined Networking (SDN). Kathu Solar Park is a 100MW Ramy Hashem, Country Senior greenfield Concentrated Solar Power Officer, Nokia, said: “We see this as (CSP) project with parabolic trough an opportunity for the Ghanaian ICT technology and equipped with a molten market to benefit from our state-ofsalt storage system that allows 4.5 hours the-art technologies and concepts to of thermal energy storage, limiting the transform telecom networks to be intermittent nature of solar energy. more dynamic, agile and evolving.” TECHNOLOGY

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Ghanaian Diaspora Drive MTN Mobile Money Transfers MTN Mobile Money has become the fastest growing method of receiving WorldRemit international money transfers in Ghana; driving a new phenomenon of ‘micro remittances’, where people send smaller amounts, more often. The number of transfers received on mobile accounts is growing by 13 percent a month on average, as Ghanaians abroad utilise MTN Mobile Money. “Ghanaians are taking advantage of low-fee, instant mobile transfers to send money for specific purposes, right when it is needed... Today,

Standard Bank Group Secures US$95 Million Facility Upsizing for Helios Towers

Alix Murphy, Senior Mobile Analyst at WorldRemit

with MTN Mobile Money, they can help with unexpected bills or family expenses whenever they arise,” said Alix Murphy, Senior Mobile Analyst at WorldRemit.

Standard Bank Group has increased the loan facilities for Helios Towers Tanzania Ltd (HTT) to US$95 million to finance the next phase of its telco tower expansion across the country. HTT has built a leading market position in Tanzania which is home to a fastgrowing mobile telecommunications sector, with more than 36 million mobile subscribers as of December, 2015, growing at an annual rate of 14 percent. The recent launch of a new entrant in the mobile sector bodes well for HTT’s future business as demand for new tower leases from all mobile operators continues to grow.  

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

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TELL US YOUR STORY

AND WE’LL TELL THE WORLD AFRICA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Africa. We reach an audience of 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 Publishing’s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for free, in one of our upcoming editions.

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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R E L A T I O N S

The Evolving Paradigm of Chinese Investment in Africa Writers:

Barri Mendelsohn, Managing Associate, Corporate, London, King & Wood Mallesons

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George Zhao, Partner, Beijing, King & Wood Mallesons

James Douglass, Partner, Energy & Infrastructure, London, King & Wood Mallesons


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key economic factor that has enabled foreign direct investment (FDI) in Africa to increase over the past decade was the surge in commodity prices and demand for raw materials. More recently, the rise of the African consumer has generated investment, with some predicting that Africa’s consumer-facing industries will grow by more than US$400 billion by 2020 due to the acceleration of a growing middle-class. In 2009, China became Africa’s largest trading partner – overtaking the United States – and in 2015 it announced that its cumulative FDI into Africa from 2000 to 2014 was US$30 billion, a significant amount but still behind France and the United Kingdom. The Chinese State and Stateowned banks, in particular, finance a substantial amount of investment on the continent. This is supported by the Chinese Government’s ‘Go Global’ strategy aimed at promoting the export of Chinese goods and services by national champions and increasing the competitiveness of Chinese companies globally. However, it has been well documented that the commodities ‘super-cycle’ has come to an end and so with it China’s seemingly insatiable demand for resources and raw materials from Africa and elsewhere. At the 2015 World Economic Forum in Davos, Premier Li Keqiang stated that China is entering a ‘new normal’ status in which its economy grows at a slower but healthier pace. However, as a leading investor into Africa, the slowing Chinese GDP growth rate has caused concern that China’s outbound investment into the continent will decrease substantially. In November,

2015, China’s Ministry of Commerce announced a 40 percent year-on-year decline in investment to the continent. The decreasing demand from China and the impact of lower commodity prices is having profound implications for African economies and has exposed the lack of diversification in these economies. Current policy and currency volatility in the larger economies such as Nigeria, Angola, Ghana and South Africa are directly linked to dramatic falls in global commodity and oil prices. In addition, the commodity slump has put pressure on African currencies, pushing up consumer prices, cutting government revenue and leading to higher inflation. Such changes are likely to impact FDI into Africa in the immediate future, whether from China or elsewhere. However, there are initiatives underway which should provide stimulus to counterbalance these forces. Notable examples include the Chinese Government’s newlylaunched/approved projects and plans which, to some extent, should increase China’s demand for mineral resources. From January to September, 2015, the PRC National Development and Reform Commission (NDRC) approved 66 infrastructure projects with expected investment reaching RMB 1,440 billion in total. In addition, the Chinese Government’s ‘Silk Road Economic Belt’ initiative serves as a trading and investment booster to Africa. In the first six months of 2015, African countries along the Belt witnessed a 12.9 percent increase in throughput of containers handled in international waterways. In the first seven months of 2015, Chinese contractors concluded US$49.94

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billion worth of contracts which mainly involves power construction, house-building and construction of transportation facilities. African governments have stepped up their efforts in creating a conducive environment to facilitate FDI. Governments have taken steps towards fighting corruption, increasing transparency and establishing legal and regulatory frameworks across major sectors. Such initiatives provide a more welcoming environment for FDI and thus foster increasing flows into Africa. Development finance institutions (DFIs) and export credit agencies have emerged as key enablers for FDI in Africa. These institutions and agencies enable FDI through the provision of guarantees and credit enhancement instruments, such as partial credit guarantees, partial risk guarantees and political risk insurance to facilitate FDI, especially in PPP and infrastructure projects. Countries like Nigeria, Kenya and South Africa have been the biggest beneficiaries of such products and as such, have witnessed, on average, a higher rate of FDI. Development institutions such as Africa Development Bank, the World Bank Group and the International Financial Corporation provide such products, and have been important advocates for FDI in Africa.

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Will China continue to invest?

Despite the fallout in commodity prices and China’s internal economic slowdown, the question remains whether China will continue investing in Africa at previous high levels. In May 2014 during his visit to Africa, Premier Li Keqiang indicated that by 2020 China’s outbound foreign direct investment (FDI) stocks in Africa should reach US$100 billion. However, China investments in greenfield projects and in expansion of existing projects in Africa have fallen far below these targets. The fact that large Chinese State and state-owned enterprises (SOEs) have been reducing their investments is perhaps the most significant reason behind the lag in FDI, although some have continued to invest, such as the stateowned Zijin Mining Group Co. Ltd, which in May, 2015 announced that it had acquired an interest in the DRC’s Kamoa copper mine and Porera gold mine for the price of RMB 2.52 billion and RMB 1.82 billion respectively. Another notable example is the Simandou project in Guinea which is one of the largest untapped, high grade iron ore resources in the world with more than 1.8 billion tonnes of estimated reserves. The CIOH consortium (comprising Chinalco, Baosteel, China Africa Development Fund, China Rail and China Communications Construction) has a 41.3 percent interest in this project with Rio Tinto holding a controlling interest. Increasingly, there has been collaboration at State-level aimed at

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boosting Chinese investment in Africa. This culminated recently in December, 2015 with the Forum on China-Africa Cooperation (FOCAC), hosted in Johannesburg, which comprised delegations from 50 African countries, the African Union, and China. In the context of the Forum, President Xi Jinping pledged US$60 billion to African states expected to be allocated to preferential loans and export credits, the China-Africa Development Fund and also other facilities targeting loans to SMEs. President Xi Jinping also presided over the signing of agreements and loan deals with South Africa worth 94 billion rand (HK$50 billion), mainly for infrastructure and in a recent state visit to China in April, 2016, Nigeria’s President Buhari negotiated a reported US$6 billion loan from China for support of various projects covering power, road, rail, infrastructure investments. There has also been reports of a proposed US$500 million ‘panda bond’, a first African sovereign bond issued on the capital markets denominated in RMB.

Chinese private enterprise

Unlike SOEs, the number of Chinese private enterprises investing in Africa and the volume of their investment are rising. The new Measures for Administration of Overseas Investment promulgated by the PRC Ministry of Commerce (MOFCOM) in September,

Agriculture is becoming more attractive to Chinese investors


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2014 relaxed overseas investment procedures to facilitate outbound commercial activities. With various funds such as the China-Africa Development Fund, as well as support from the Chinese banks and less stringent financing conditions, private companies have more chance of obtaining financing support. The African Yellow Book: Africa Development Report (2014-2015) launched on 29 September, 2015 states that as of the end of 2013, 70 percent of Chinese enterprises investing in Africa were private or small and medium-sized enterprises. By way of example, Jinan Yuxiao Group, a private Company in the real estate sector, has obtained more than 40 exploration licenses and four mining licenses and Zhongsu James Mining Co. Ltd, established by a Chinese private firm, acquired mines in Mozambique with a value of more than RMB 200 billion.

Diversification of sectors

It is predicted that significant funds will be spent by Chinese investors on high-speed trains, electricity, telecommunication, engineering machinery, automobiles and aircraft manufacturing in the near future. China has also agreed plans to build a new railway line in East Africa by providing financing of approximately US$3.8 billion for the first phase of this project, and in November, 2014 China Railway Construction Corp agreed to build a 1,400 kilometre railway in Nigeria, which amounts to China’s largest-ever FDI deal outside of the extractive industries. Chinese telecoms companies have already contributed significantly to bridging the ‘telecoms divide’, developing telecoms infrastructure and providing low-cost handsets to millions of rural inhabitants. Indeed, Huawei has recently launched new networks in South Africa and Nigeria, while ZTE Corp is overseeing a 4G

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China’s Silk Road Economic Belt serves as a trading and investment boost to Africa

‘The industrial transformation and slowdown of domestic demand in the ‘new normal’ Chinese economy has caused a reduction in China’s demand for mineral resources from Africa’

mobile infrastructure expansion in Kenya. In March, 2016, Huawei entered into a partnership agreement with Africa’s leading custom software application provider, Techno Brain, whose main goal is the transfer of technology in the information and communications technology (ICT) sector. Agriculture is also becoming more attractive to Chinese investors; China has acquired 12 million acres of land for the purpose of grain-growing. As of 2015, the Chinese Ministry of Agriculture has signed 31 cooperation agreements with 17 African governments/ organisations and has built 22 agriculture demonstration centres. Signs of further diversification include the approach taken by Djibouti, which, in January, 2016, signed agreements with China to set up a trade zone and establish a legal framework to allow Chinese banks to operate locally.

The ‘new normal’

The industrial transformation and slowdown of domestic demand in the ‘new normal’ Chinese economy has caused a reduction in China’s demand for mineral resources from Africa. Consequently, Chinese outbound investment, especially those made by SOEs, has been impacted. However, for private commercial entities, the ‘new normal’ presents new opportunities in Africa and these are being exploited by Chinese investors with continued State and DFI assistance.

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EAST AFRICA

WAKES UP

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Java House is one of a new breed of authentically African businesses embracing global standards of best practice and growing responsibly to meet the needs of Africa’s rising middle-class consumers Writer: Alex-Handrah Aimé, Managing Director, Emerging Capital Partners (ECP)

ack in 1999, a small coffee shop opened up in Adams Arcade along Ngong Road in Nairobi. It was the first of its kind in the region to offer export-quality Kenyan coffee, brewed and served in the region. Fast-forward 17 years and the chain has now expanded to 39 branches across Kenya and Uganda with around 1,400 staff serving thousands of customers daily. At the helm is Chief Executive Officer (CEO), Kevin Ashley and a management team that has helped drive Java House’s extraordinary growth; motivated by a passion for good food, good coffee and good service. The CEO first arrived in Africa as a 22-year-old American backpacker and fell in love with the continent. He came back in 1991 to work as a volunteer teacher in Kitale, Kenya. Nevertheless, as he describes, the region had one major flaw: the absence of a good cup of coffee. Although Africa accounts for around

12 percent of world coffee production, African producers largely export coffee beans, and consumption on the continent is quite low. In fact, it is far more likely that a Kenyan working in coffee production will have eaten the cherry-like coffee fruit than tasted what we know as coffee. In Kenya, the beverage favored by many is a milky English tea, a tradition remaining from the country’s colonial past. For coffee lovers, finding a decent cup of ‘java’ was no small feat. “When I first came to Africa, I couldn’t find a good cup of coffee. As a relief worker in 1993 on the border of Kenya and Sudan, we went to great lengths to create a decent cup. We would drive down to the Kakuma refugee camp, buy green coffee beans from the Ethiopian traders, roast them in frying pans, pound it up, and make our own coffee.”

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Ashley found this coffee better than what was already available, spurring on the idea to create a brand that has since democratised great coffee. He explains: “We went to the US to learn how to roast coffee; flew in equipment from Dubai, and started the first Java in Adams Arcade on Ngong Road in Kenya. Nairobi needed a good coffee house and a place to have breakfast which made this an ideal location to set up our business.”

Rising demand

When Java House started in 1999, the majority of its customers were expatriates seeking good coffee. In 2012, the Financial Times reported:

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“Java House was the first chain to introduce the successful coffee house model in Kenya: a ’feel good’ place for the upper-middle class and expat population to have coffee, lunch or dinner, with a consistent offering and quality across locations.” Over the past decade, however, there has been a steady rise in demand from the nation’s consumer class as coffee culture began permeating the continent. Global behemoths have begun to take notice, with Starbucks opening its first branch on the continent in 2016. Ashley had not predicted the extent of the demand for Java House, nor had he anticipated opening several

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branches, but as he explains: “If you have the capacity to bring something that someone wants to their neighborhood, then why not? If we have people in Donholm – a Nairobi suburb – who want a Java but they have to come to town to get one, why not build one in Greenspan Mall [in Donholm]? Why should we sit and let international brands come and dominate Africa when we understand this market better, when we know what people want?” Nearly 40 branches later and Java House – originally known as Nairobi Java House – has dropped ‘Nairobi’

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“Java House was the first chain to introduce the successful coffee house model in Kenya: a ’feel good’ place for the uppermiddle class and expat population to have coffee, lunch or dinner”

from its name following the opening of stores outside the city as well as five in Uganda. The Java Group has also launched 360 Degrees Artisan Pizza, a modern upscale pizzeria, and Planet Yogurt, a chain of seven self-serve frozen yogurt shops. The Group has reported revenue growth of almost 30 percent per annum since the end of the financial year 2010 up to 2016. “I can confirm that we are profitable, and as a result, we are able to finance our strategic growth plan using mainly internally-generated funds,” says Ashley. The Group also plans to open an

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additional 12 outlets in Nairobi, Eldoret, Thika, Nakuru, and Nanyuki in Kenya as well as three stores in Uganda this year. In addition, the Group is looking to expand outside of the region to explore opportunities in other African countries. “Expanding across Africa is an exciting prospect for us. We are slowly beginning to penetrate Uganda, but the potential for further regional expansion is great. We are extremely ambitious about our potential reach and aim to have every major African city bustling with Java House restaurants over the next decade,” says Ashley, who remains committed

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‘46 percent of its workforce is made up of women; who are encouraged to stay with Java thanks to aboveaverage market wages, paid maternity leave, healthcare, pensions, and more flexible working time factored in for childcare’

to providing quality coffee to the African public.

Mindful employers

Alongside its commitment to great coffee, the Group also takes its responsibility to its people very seriously and takes pride in being a great place to work. Many of the team who staff its 47 sites – including Planet Yogurt and 360 Degrees Artisan Pizza – started out as waiters and cashiers, and a significant number have been trained and mentored to grow into managers. In addition, 46 percent of its workforce is made up of women;


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who are encouraged to stay with Java thanks to above-average market wages, paid maternity leave, healthcare, pensions, and more flexible working time factored in for childcare. In 2016, Java House became the first restaurant Group in East and Central Africa to receive the ISO 22000:2005 certification for food safety management systems. The Company also treads lightly on the environment in terms of energy and water consumption and waste production by using the latest equipment, systems and processes. There are many examples of how this translates into practice such as converting used cooking oil into biodiesel and using foot-operated faucets with smaller nozzles to lower water use. Java’s supply chain sources locally, buying in KES 80 million of fresh produce monthly from East African suppliers. This reduces food miles and improves traceability while supporting local farmers. Locally-sourced milk goes into many products, including Java’s own delicious ice-cream. The board of directors, which includes CEOs and executives from

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‘Java House is one of a new breed of authentically African businesses embracing global standards of best practice, growing responsibly to meet the new consumer demands of a continent that is indisputably on the rise’

some of the largest East African companies and international industry experts, is committed to supporting Java’s growth, promoting good corporate governance, including zero tolerance for uncompetitive business practices. Java House is one of a new breed of authentically African businesses embracing global standards of best practice, growing responsibly to meet the new consumer demands of a continent that is indisputably on the rise.

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Poised for a Digital Revolution frica remains one of the preferred frontiers for investment opportunities and doing business, according to a report released by PwC Africa. The global network committed to delivering quality in assurance, advisory and tax services released its Africa Business Agenda survey which highlights how Africa and the emerging markets remain a vital growth opportunity for Chief Executive Officers (CEOs); following results compiled from 153 CEOs and public sector leaders across the continent.

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Growth and foreign direct investment has continued in Africa amid recent global economic uncertainty, and PwC Africa positions technological innovation at the forefront of this continental transformation

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Writer: Matthew Staff

Hein Boegman, CEO of PwC Africa, says: “CEOs in Africa are ramping up their efforts to innovate and find new ways to do business on the continent in a move to stimulate growth in a challenging and uncertain global business environment. “The global financial and economic crisis has revealed Africa’s vulnerability to a number of external economic shocks. These include the decline in commodity prices fuelled by the economic slowdown in China; a marked decline in the demand for commodities; and the collapse in value of the emerging market currencies


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against the US dollar in anticipation of an interest rate hike. “Notwithstanding a multitude of challenges, many of which are cyclical, we remain confident that Africa’s prospects remain positive. Africa’s business leaders have the opportunity to pursue new business opportunities on the continent, more particularly in the light of rapid innovative and technological advances that have the potential to transform and shape industries.” Africa’s CEOs are critically aware of these issues and the impact they may on their businesses, believing that global

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“Notwithstanding a multitude of challenges, many of which are cyclical, we remain confident that Africa’s prospects remain positive” - Hein Boegman, CEO, PwC Africa

economic growth is unlikely to improve and that it will stay the same in the short and mid-term. Nonetheless, more than three-quarters remain confident that there are opportunities for growth over the next 12 months, and nine out of 10 believe they can deliver growth in the next three years.

Defining trends

The global business environment has become increasingly complex and challenging and the report shows that CEOs in Africa share many of the same concerns with their peers globally. The top three concerns include exchange

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‘Partnerships and alliances feature prominently in their plans, with more than half of African CEOs planning to enter into strategic alliances over the next 12 months’ rate volatility, governmental response to fiscal deficit and debt burden, and social instability. CEOs in South Africa have similar concerns as their counterparts on the continent, with the report showing that there are uncertainties about government response to fiscal deficit and debt burden, social instability, and high unemployment or underemployment. Across the continent, shifting demographics, rapid urbanisation,

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rising disposable income and – perhaps most importantly – technological change are all influencing growth opportunities and strategies. Africa’s CEOs rank technological above all the defining trends that will transform their businesses over the next five years and, in addition, new advancements and breakthroughs in frontiers of R&D are opening up more opportunities for businesses.

Catalysts for growth

In Africa, the environment is constantly changing and the growth opportunities are unparalleled. After more than a decade of urbanisation, Africa is poised for a digital revolution. Increasingly, organisations are using technology to challenge business models and disrupt competitors in markets. Technology was seen by CEOs in the survey as the best way of assessing and delivering on customer expectations by implementing customer relationship management systems, interpreting the complex and

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evolving needs of customers through data and analytics, and improving communication and engagement by means of social media. Corporate governance has also brought IT to the fore. In South Africa, the draft King IV report recognises that IT has become an integral part of doing business today.


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Going forward, CEOs in Africa indicated that they will be more actively looking for partners, while keeping an eye on costs. Partnerships and alliances feature prominently in their plans, with more than half of African CEOs planning to enter into strategic alliances over the next 12 months. In addition, 16 percent say they intend to carry out cross-border merger and acquisition (M&A) activities in the next year. Looking at investment prospects, China, Kenya, Uganda and South Africa remain the countries African CEOs view as most important for growth in the next 12 months. While many organisations across the globe are expanding or seeking to expand in Africa, the availability of key skills stands out as a key concern for CEOs both in Africa and South Africa though. More than half of Africa’s CEOs expect to increase their headcount over the next year. “The talent trends that we are seeing suggest that the market is becoming more and more competitive,” Boegman adds. “As a result, companies are having to review their talent management strategies.

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‘African CEOs surveyed not only believe that success is dependent on more than just making money, they also believe that their organisations should do more to report on the broader impact of their activities’ Around half plan to invest more in their leadership pipeline and focus on developing their institutional culture.”

Stakeholders’ expectations

Across African boardrooms agendas are changing, with many additional focus areas being brought to the table. The corporate landscape continues to undergo constant change, with companies being confronted by shareholders and other institutional investors who

demand explanations around financial reporting and performance. In the process business is encountering a range of challenges in responding to wider stakeholder expectations. These include additional costs of doing business, unclear or inconsistent standards or regulations, and customers’ unwillingness to pay. Dion Shango, CEO for PwC Southern Africa, says: “More successful companies tend to be collaborative and collective in their engagement with stakeholders. Business leaders need to have a business rationale for engaging and collaborating with stakeholders, while being acutely aware of the risks posed by not engaging with all relevant stakeholders. “One of the most significant benefits of engaging and collaborating with stakeholders is that an organisation may be able to engage new markets in Africa and speed up the introduction of new products and services.”

Communicating shared prosperity

It is positive to note that Africa CEOs are increasingly recognising the importance of reporting on non-financial matters. In addition, most African CEOs surveyed not only believe that success is dependent on more than just making money, they also believe that their organisations should do more to report on the broader impact of their activities and how these activities create value for stakeholders. Shango concludes: “Africa and South African CEOs have built on the experience of the past few years and are better prepared to deal with the host of challenges and uncertainties. CEOs have and also continue to reshape their business strategies to take advantage of new opportunities for growth, both in existing and new markets.”

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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 month’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 we’ll tell the world. Matthew Staff, Editorial Director Tel: +44 (0) 1603 959 655 matthew.staff@outlookpublishing.com


ame T R A N S N E T

P I P E L I N E S

Integrity Pipeline IN THE

ransnet Pipelines is celebrating more than 50 years as the custodian of South Africa’s strategic pipeline assets across both petroleum and gas via a series of recent installations that takes its total network to 3,800 kilometres. As one of five operating divisions under the Transnet SOC Limited banner – a state-owned Company of the Government of South Africa – the Durban-based business has fulfilled its strategic role in the supply chain of petroleum products in the country since its inception in 1965, and while the nature of its operations have remained consistent throughout the decades, the Company’s success is epitomised by the dramatic increase in volumes that have occurred. A rise from 1.5 billion litres to more than 17 billion litres is compounded by the transmittance of more than 550 million cubic metres of gas each year; facilitated by an infrastructure conducive to logistical optimisation and continuous improvement. “Our Tarlton storage facility has rail and road load-out facilities with the main focus of facilitating transportation of petroleum

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Transnet Pipelines’ ‘Africa strategy’ looks set to see South Africa’s pipeline custodian extend its influence deeper into the continent Writer: Matthew Staff Project Manager: Eddie Clinton

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LIBERTY FREIGHT

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iberty Freight’s solid business foundations can be attributed to its experience, efficient processing, modern technology and unequivocal customer satisfaction. We are small enough to offer a personalised service yet large enough to handle all transactions whether local, national or international. At Liberty Freight we have a competent, hands-on team, providing a comprehensive, high quality service to all our customers. We have developed a set of principles and guidelines that guarantee the client receives the best service and the highest level of support available. Our vision is to be a world-class one-stop shop for sea and air freight!

www.libertyfreight.com The dramatic increase in volumes has been a major contributor to the Company’s success

products to Botswana as well,” adds the Company’s Manager of Communications and Marketing, Saret Knoetze. “This facility now also has additive dosing capabilities to inject oil Company-branded additives which will allow each client to uplift products and go direct to market. “[Additionally], the refractionator was constructed to deal with internal intermixture, but will soon be offered as a service to industry. Furthermore, Transnet Pipelines has aspirations of offering its services to other African countries in the near future.”

Continually improving

Such services comprise the operation and maintenance of petroleum storage and distribution terminals, engineering consulting, optimisation support and training; all being offered on a more widespread scale as part of Transnet’s ‘Africa strategy’. “We have been confined to South Africa, but have now developed

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WOODHEAD BIGBY INC.

We have been confined to South Africa, but have now developed our ‘Africa strategy’ which entails reviewing opportunities to operate and maintain pipelines, depots and terminals in Kenya and the SADC region

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oodhead Bigby Incorporated, founded in 1922, is a Level 1 AAA+ BEE-rated firm which has built a solid and proud reputation, rooted in its capacity to provide its clients with practical and reliable legal advice and services for fair value. The firm has a broad range of clients, both local and international, including corporates, organs of state and individuals. It is particularly proud of its longstanding relationship with Transnet Pipelines. The firm’s comprehensive and specialised areas of expertise include: property and conveyancing, litigation, commercial, trusts and estates, and employment law. T +27 31 360 9700 E mail@woodhead.co.za

www.woodhead.co.za


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LIBERTY FREIGHT Your link in freight!

Clearing. Forwarding. Transport. Warehousing. We are small enough to offer a personalised service yet large enough to handle all transactions whether local, national or international.

We’re your ONE-STOP-SHOP for sea and air freight! Contact us:

Address - Durban:

Tel: +27 31 305 5471 Fax: +27 31 305 5474 Email: info@libertyfreight.com www.libertyfreight.com

Corporate Place 9 Dorothy Nyembe Street 4th Floor, Durban, 4001 KZN, South Africa

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TOTAL SOUTH AFRICA

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otal South Africa is a significant player within the TOTAL Group. Through our global alignment, we strive to ensure that our Company is able to benefit from shared access to internationally acclaimed best practice, technological expertise and top flight business innovations. Our business focus encompasses the manufacturing, sales and marketing of a range of petroleum products for the retail, commercial, agricultural and industrial markets. With a portfolio of 547 service stations located throughout South Africa, we are a key player in the country’s petrochemical market. T +27 (0) 860 111 111

www.za.total.com www.total.co.za Deploying its ‘Africa strategy’ to access new opportunities on the continent

our ‘Africa strategy’ which entails reviewing opportunities to operate and maintain pipelines, depots and terminals in Kenya and the SADC region,” Knoetze explains. “Through our accredited school of pipelines we are able to offer other petroleum pipeline companies pipeline-specific training courses. “With more than 50 years experience we are now ready to share our skills, knowledge, pipeline training and operational services.” Keeping abreast of the latest and best technologies and practices enables such an ethos to flourish, and the Company has evolved accordingly from a manually controlled system to now boast a fully-automated pipeline network system; unveiling a fullyautomated Order-to-Cash process as a result. Knoetze continues: “We provide a safe, efficient, cost effective and reliable service to our customers which are the major reasons behind our success.

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SAP

A “We also benchmark ourselves globally via the international benchmarking Company, Solomons. From these benchmarks we develop key performance indicators (KPI’s) and set ourselves annual improvement targets. We have been successful in achieving our targets and hence have been continually improving in all aspects of the business.” These internal enhancements have helped culminate in what Transnet is ultimately renowned for though; it’s projects.

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s market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP empowers people and organisations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 300,000 customers to operate profitably, adapt continuously, and grow sustainably. Contact Kiveshen Moodley for more information: T +27 11 235 6000 E kiveshen.moodley@sap.com

www.sap.com/africa


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COMMITTED TO BETTER ENERGY National Customer Centre Number 0860 111Â 111 www.total.co.za www.za.total.com

PO Box 579, Saxonwold, Sandton, 2132 Total House, 3 Biermann Avenue Rosebank, Gauteng, 2196

How can you get answers to these questions? Contact SAP.

How can we excite our workforce in a hyperconnected world?

How can we connect our assets and products real time to create the live enterprise?

How can we have no technological limitation in our core business?

How can we transact faster in our supplier network, sharing smart data securely and in real time?

How can we build the digital front-end for better customer experience?

Contact Kiveshen Moodley for more information: T: +27-11-235 6000 E: kiveshen.moodley@sap.com www.sap.com/africa

Run Simple

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FABRICON PIPE & LABOUR HIRE CC

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abricon Pipe & Labour Hire cc forms part of the engineering industry concentrating on on-site & off-site development and maintenance contracts. An ISO 9001 accredited and CIDB registered Company in the ME, CE and SL sectors, the Company has undertaken a large number of capacity upgrade projects for clients in recent years. Some of its projects for Transnet Pipelines include both the NMPP Terminals 1 Durban SA Coastal project, and Terminals 2 Heidelburg SA Inland project; comprising the fabrication and installation of 14,500 metres of piping - from 30 inches down to half-inch in size - including inline equipment and supports.

Health, safety and environment policies are well embedded in the Company culture

The construction of a new 24 inch diameter pipeline with associated accumulator facilities of 354,450 cubic metres has been the Company’s major focus for the past few years, and attentions have now turned to its new multi-product pipelines project (NMPP); Phase 1 of which seeing the construction of coastal and inland terminals, the 555 kilometre 24 inch trunkline, and three 16 inch inland network pipelines. “The trunkline has three pump and two metering stations,” Knoetze says. “The system is designed to ensure that future market demands are met by adding pump stations along the route to reach the design capacity of 3,000 cubic metres an hour.”

New pipelines

Transnet Pipelines is simultaneously reviewing other pipeline development projects in both the hydrocarbon and gas domains on the continent in order to expand the Company’s portfolio and footprint.

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The system is designed to ensure that future market demands are met by adding pump stations along the route to reach the design capacity of 3,000 cubic metres an hour

www.fabricon.co.za www.fabricon.edx.co.za Upgrades to its security and fire fighting systems on the current facilities are being conducted from a maintenance perspective, while there are also plans to construct a dedicated fuel jet line from Jameson Park to ORTIA as a prelude to Phase 2 of the NMPP which entails an expansion of capacity by installing additional pumps and pump stations. The complexities and nuances that go hand-in-hand with operations like this represent an even more remarkable Company journey when taking into account the vast evolution that has taken place from its origins back in the 1960s. Knoetze recalls: “Back in the early 1960s it became evident that with South Africa’s economy expanding rapidly and the oil industry forecasting a 12 percent growth in the demand for petroleum products, the decision was made to construct a pipeline from Durban to the ‘inland’ market area. “This new 500 kilometre Durban-


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SCOPE OF SUPPLY: We have segmented our main objects into six categories as follows: Fabrication and installation of piping systems in accordance with asme, api, bsen or to client needs

Transnet 50 year celebration!

Fabrication and erection (workshop component manufacture and site fabrication and installation) Rotating equipment (overhaul, management of change, selection of new equipment, service/ manufacture of spare parts)

Fabricon would like to congratulate Transnet Pipelines on its 50 years of excellence. We want to thank them for their excellent support over the past years and we look forward to continuing the relationship for many years to come.

Installation, and

Laser Alignment Labour Hire Condition Monitoring

BRANCHES IN DURBAN AND JOHANNESBURG.

ZAMBIA AND MOZAMBIQUE BRANCHES OPENING SOON Durban - Tel: +27 (0)31 461 5174 / +27 (0)31 461 5180 | Johannesburg - Tel: +27 10 003 7501

WEBSITES: www.fabricon.co.za I www.fabricon.edx.co.za EMAIL: service@fabricon.co.za I Reg. No. 1990/030574/23

Johannesburg pipeline was commissioned on 1 November, 1965 and since then, as the inland market demand has grown, additional pipelines were constructed. “In 1969, a crude oil pipeline was constructed to ensure dedicated supply to the inland crude refinery (Natref) C O N T R Adone C to T the RS Orefined and in 1971, further expansions were pipeline and a dedicated aviation turbine fuel pipeline was commissioned from the Natref refinery to the Johannesburg international airport (now known as OR Tambo international Airport).” Further significant developments occurred in 1977, 1993 and 1996 as the pipelines were extended, the infrastructure around them was improved, and the technologies incorporated evolved. And later, after the turn of the millennium, attentions also turned towards renovation and upgrading the initial constructs; leading to the phased upgrades and additions that have been instigated ever since. “As the aging infrastructure was running into capacity problems it was decided to construct the 24” diameter NMPP from Durban to Gauteng to ensure the security of supply to the inland market,” Knoetze details. “This new pipeline was brought into operation in January, 2012 – conveying only diesel – while the accumulation facilities in Durban and Jameson were still under construction. Each of these facilities has a capacity of approximately 170 million litres.

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CONTRACTORS Civil and Architecture

Tel: 011 867 0808 Cell: 082 496 8179 Email: jairacontractors@worldonline.co.za www.jairacontractors.co.za

72 Hennie Alberts Street Brackenhurst 1448

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“This trunkline will now be brought into multi-product transportation mode in November, 2016 with the completion of the inland accumulation facility and with tightlining of the coastal facility.”

Competitive value proposition

Ensuring the smooth and ongoing development out in the field is the equally consistent commitment to honing Transnet’s internal processes, whether that’s from a technological,

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administrative, personnel or supply chain management perspective. The former has recently been addressed through the introduction of supervisory control and data acquisition (SCADA) software comprising advanced technology installed on all sites to help the automation transition. The station is then controlled centrally allowing for safer pipeline start-up and shutdown. “Testing equipment at the depots have also been upgraded to the latest technologies to ensure that adequate quality control can be executed on products with new upgraded specifications,” Knoetze adds. “The automated Order-to-Cash process is also being further enhanced and, in addition, as the Company has both regulated and unregulated business, a strong financial reporting system is in place.” From a supply chain management perspective, excellent planning is required to maintain consistent quality across an ever-growing geographic footprint, and especially with the current focus on the provision of an integrated rail and pipeline service offering to clients in order to maximise the volumes transported and to minimise logistical costs. “This will allow for an integrated service to customers and improve the overall pipeline and rail efficiency, thereby providing a distinctive, competitive value proposition of the entire fuel supply chain from source to destination,” Knoetze states. Paramount above all of that however is the Company’s dedication to wider social enrichment; beginning through the support of the Government’s socioeconomic upliftment programme which etches its way into areas of enterprise development and black economic empowerment, while being equally instilled into Transnet’s own human resource philosophy. “Transnet Pipelines has a unique set of skills, and it is therefore extremely important to ensure that the wholelife employee value chain from hire to

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Transnet is the proudly exclusive operator in the country

retire is effectively managed,” Knoetze continues. “This includes attraction, retention, reward and recognition plans as well as talent and succession management. “Being the only pipeline Company in the country, it is difficult to find a pool of skills and experience in the industry from which we can recruit; hence we recruit personnel that have talent and the necessary qualifications and allow them to gain experience by working with mentors in the Company.”

Reliable pipeline network

A dedicated workforce of 650 employees repay the faith showed in them in taking pride in their work and in ensuring a safe, reliable and environmentally friendly process is carried out across all segments of the Company. Safety in particular is an area of great pride for Transnet with an exemplary record hugely attractive to its customer base. “We realise that any long-term


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Engineering • Procurement • Construction Offering our clients end-to-end solutions for planning, engineering design & construction work.

Our highly skilled teams will assist our clients with project development/planning, design engineering, procurement assistance, site supervision and project management services.

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Tel: +27 31 764 1528 Email: enquiries@thulanda.co.za Cell: +27 71 588 5727 (Benson) Cell: +27 76 508 4048 (Thulani) Compass Gardens, South Building, 15 Old Main Road, Gillitts, KwaZulu Natal, South Africa WHEN YOU NEED TO BE SURE ABOUT ENGINEERING AND CONSTRUCTION WHEN YOU NEED TO BE SURE ABOUT ENGINEERING AND CONSTRUCTION

disruption in the fuel supply to the economic heartland could have a major impact on the economy and therefore, an effective maintenance plan is crucial,” Knoetze says. “A defect or equipment failure could shutdown the entire pipeline, and as the network is a continuous process, a shutdown at one station could affect the entre pipeline network. “Due to the nature of the products we transport, we also know the consequences of an event and our emergency response and rehabilitation plan is vital. Safety, health and quality policies are therefore well embedded in the Company.” Ultimately, the goal then becomes to bridge these two core facets of internal operational excellence, and external quality along the pipeline to ensure that the same successes enjoyed in South Africa over the past 50-plus years can be replicated further into the continent over the next 50 years. Knoetze concludes: “Our aim is to be a Company that has a well-established footprint in Africa, to be able to reflect on the continued integral part we played in the economy of South Africa, and to still have a fantastic safety record. “We would also like to have successfully commissioned all aspects of Phase 1 on the NMPP and to have a fully-functional, reliable pipeline network.”

ENGINEERING AT ITS BEST Our practice is multidisciplined and has the expertise to handle projects of a civil, structural, hydraulic, geotechnical, electrical, architectural and project management disciplines. GET IN TOUCH Office : +27 31 764 5497 Mobile :082 441 6194 Email: sharmanconsulting@gmail.com Unit 12 Hibiscus, Fairway Green, 3 Abrey Road, Kloof, 3610

Proud to be appointed by Transnet Capital Projects to design and supervise the construction of all protection works around their pipes that pumps fuels between our major cities.

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TRANSFORM Africa’s largest steel producer, ArcelorMittal is working closely with the South African Government in a bid to overcome some of the country’s commodity challenges by responding to the changing needs of industry Writer: Emily Jarvis Project Manager: Stuart Parker

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ligning with the wider ArcelorMittal Group’s globally-renowned industry excellence, ArcelorMittal South Africa has adapted to changing local needs by continuously developing higher grades of steel in line with increasing demand across core industry verticals. With shareholdings in the Company changing hands numerous times over the course of its 88-year history, the Company has taken up additional business in order to answer the current and future market demand for steel products by increasing its production and output of steel plate; despite

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facing tough competition from foreign imports and an overall weakening economic climate. As Africa’s largest steel producer, ArcelorMittal South Africa has installed capacity to produce six million tonnes of steel per annum across its operations in Gauteng, KwaZuluNatal and the Western Cape. The Vanderbijlpark Works in the former region is one of the world’s largest inland steel mills and the biggest supplier of flat steel products in subSaharan Africa. Across its four major facilities, ArcelorMittal South Africa has a sizeable local capacity from which to manufacture products for the heavy


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RMING engineering, construction, mining, automotive, furniture, cabling, fencing and fertiliser industries. This commonly includes slabs, plates, cold and hot rolled coil (HRC), galvanised, tinplate, Corex, Midrex, billet rebar and other bars and rods. Showcasing its depth of technical and managerial expertise across not only its primary business vertical, the Company also has interests in coking coal and is able to process and beneficiate metallurgical and steel products into coal tar pitch. With domestic sales accounting for 90 percent of its revenue, the Company proudly contributed R43 billion to South Africa’s economy

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in 2015, an amount equivalent to 1.1 percent of the country’s GDP. This is further compounded by a team of 9,315 permanent employees, in addition to supporting more than 90,000 jobs directly and indirectly across South Africa, as well as investing a total of R12.6 million back into local communities last year, impacting 18,300 people through a multitude of socio-economic development initiatives.

Regaining local market share

With the recent economic climate presenting difficult trading conditions, ArcelorMittal South Africa has adapted and restructured several internal

departments to optimise its operations. Over the past few years, the Company formed a Business Improvement division to continuously identify and implement measures to improve operational and financial performance in a bid to regain local market share; a feat which has become increasingly challenging as a result of Chinese imports and over-supply in the market. Dean Subramanian, ArcelorMittal South Africa’s Acting Chief Executive Officer (CEO) explains: “Until last year, South Africa was one of only two steelproducing countries (out of a total of 69) that did not have protection measures in place to counter the impact of foreign imports. Based

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ALL IMAGES BY JACO BOSHOFF, MARDO FOTO

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Manufacturing | Fabrication | Reconditioning |

MEDIUM TO EXTRA HEAVY ENGINEERING Heavy fabrication and precision engineering

TECHFAB (PTY) LTD BEE COMPLIANT


Medium to heavy machining | Specialised welding

11 Pienaar Road, Selection Park, Springs T: 011 730 8600 F: 086 272 1268


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on the recent approval of import duties by the International Trade and Administration Commission (ITAC), I am confident that stability will be restored in the coming years. “Our innovative and creative investments in research and development (R&D), as well as the significant spending allocated to environmental and health & safety initiatives, will also serve to counter over-supply and distinguish us from the competition; boosting efficiencies and optimising costs. We continually monitor the quality of our products and are quick to respond and address any problems by applying the necessary knowledge and technology to find a solution.” Benchmarking itself against similar manufacturing plants through the Global Technical Benchmark System used by the Group, ArcelorMittal South Africa also embraces the latest technologies that can enhance and

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Vanderbijlpark North Works

We continually monitor the quality of our products and are quick to respond and address any problems by applying the necessary knowledge and technology to find a solution

Acting CEO, Dean Subramanian with Marietjie Lotter, Projects and Continuous Improvement Manager at the CEO Recognition Awards

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streamline business activity. “We are continuously working to increase the level of automation in all our plants and now utilise SAP as standard across our ERP systems. Moreover, on a Manufacturing Execution System (MES) level, we have adopted various bespoke developed systems,” Subramanian details. In spite of the industry slowdown, the Company has experienced growth in the automotive and renewable sectors in particular, due to increased localisation of products and the need

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to develop higher grades of steel. “There has been huge but somewhat erratic growth in the renewable energy sector in recent years and we have been working hard to extend our product range in relation to steel plate products for wind turbines, which are largely being imported from China,” he adds. “Similarly, the rising cost of electricity in South Africa means that we are making internal investments in energy efficiency initiatives and exploring viable alternative sources of power generation.”

Proudly South African

Working closely with the South African Government to identify and implement various measures to ensure the sustainability of the local steel industry – including the introduction of import tariffs on 10 locally-produced steel products as well as the consideration of anti-dumping measures – ArcelorMittal South Africa continues


TECHFAB (PTY) LTD BEE COMPLIANT

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ince foundation in 1972, Techfab has identified an ever increasing demand for local manufacture and replacement of imported industrial components, equipment and specialised machinery. Continuous growth and adoption of innovative processes by our professional and highly qualified team since then means we are currently located in premises of 20,000m2.

These premises, located in the town of Springs, enable us to provide a quick response and turnaround time to meet our clients’ demands who are located in the five major industrial areas; namely, Johannesburg, Pretoria, The Vaal Triangle, Middelburg and Secunda. Our modern manufacturing facility has allowed us to increase our capacities, which include: • Vertical milling to 5,000mm in diameter • Turning to 3,000mm in diameter and 12,000mm long • Material handling to 50,000kg Our facility also allows us to store customers’ property safely under roof away from the harsh weather conditions. Techfab is an IS09001:2010, ISO3834 and ASME IX certified company. All our welders have been re-certified to ASME IX welding specification. We now also have a qualified international welding specialist. Techfab also provide a variety of services to the steel mills and mining industries which include the refurbishing of hot mills processing roll and highly successful substitutes, some of which is listed below:

• Hot strip mill down coiler segments and wedges • Continuous casting machine, end and side copper plates • Special purpose, low speed, high load antifriction bearings • Design and manufacture of metal shredder (for scrap metal industry) • Design and manufacture of complete scrap metal processing plant We have a fully-fledged and independent health and safety department which vehemently keeps control of all health & safety, environmental and labour issues. Our association with ArcelorMittal and its predecessor goes all the way back to the inception of Techfab. During this time we have built up a very solid and reliable relationship. We place on record our thanks to ArcelorMittal for trusting us with the opportunity investigating and providing solutions to enable them to decrease downtime, increase longevity and drastically reduce costs. Techfab invests large amounts of time and monetary resources to enable our highly qualified and professional research and development department to continually conduct research into all aspects of our manufacturing processes. This enables us to provide our clients with the latest technology and materials. Our clients can be assured that what they receive from Techfab is the BEST. Techfab stands ready to meet your manufacturing and reconditioning requirements and the challenge of your business. For further information please contact David Green on +27 11 730 8600 or +27 83 534 0837


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HYDRO PRECISION ENGINEERING

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ydro Precision Engineering, established in 1980, serves the engineering and industrial sectors in South Africa. We specialise in hydraulics, engineering, fabrication, construction and site work throughout South Africa and neighbouring countries. As an approved supplier to Arcelor Mittal for the past 35 years, we have completed many major projects in hydraulic systems, pipe work, cylinders, general engineering, fabrication, site work, plant maintenance and shutdowns. We have a platinum (five-star) safety rating, and also comply with ISO 9001 and ISO 3834 quality management systems. Hydro is a level 3 B-BBEE supplier.

ArcelorMittal’s Vaal operations produced 38 percent of South Africa’s steel in 2015

to work with the best interests of the wider economy in mind. “First and foremost, we are a proudly South African steel-producing Company and this is heavily reflected in our emphasis on local employment, B-BBEE emphasis, and community and Government involvement,” says Subramanian. “Our employment strategy is designed to provide local opportunity through apprenticeships, learnerships, bursaries and other skills development initiatives to ensure there is a pool of qualified talent available to meet both current and future requirements.” He adds: “In partnership with the Department of Science and Technology and the Department of Education, our Science Centres represent our biggest investment in the local communities in which we operate; providing local students with extra tuition in science, technology, English and mathematics (STEM subjects). This year, our flagship Science Centre in Sebokeng is

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ANGSTROM ENGINEERING

First and foremost, we are a proudly South African steelproducing Company and this is heavily reflected in our emphasis on local employment...

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ngstrom invite and embrace collaborating partnerships with stakeholders.

Extending our 25 year relationship with ArcelorMittal SA’s plants is a priority. Successfully servicing ArcelorMittal SA’s plants largely depends on our clear understanding of their technical requirements. Modern facilities and well trained personnel are key to our success. Angstrom successfully transfer skills as a function of B-BBEE and adherence to ISO 9001 and 3834 is an operating culture. Specialised capabilities regarding roller refurbishment were developed in collaboration with Weldclad. Our partnership with Primetals secures technology acumen and access to original plant equipment and spares. T +27 16 362 0300 E sales@angstromeng.co.za

www.angstromeng.co.za


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Hydro Precision Engineering undertake complete turnkey projects from the design, installation and commissioning stage of any engineering or fabrication project including the design and manufacture of hydraulic systems, cylinders, power packs and specialized machinery. Tel: +27 16 9814055 Email: sales@hdp.co.za 38 Edison Boulevard Vanderbijlpark, Gauteng South Africa

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celebrating 10 years of existence, and we plan to celebrate this milestone with the former learners who have been part of the initiative.” Policies and procedures at ArcelorMittal South Africa ensure that all employees are afforded with equal opportunities and individual progression. The Company’s Transformation department has also undertaken a robust and ambitious programme to develop local entrepreneurs via a six-month pilot programme in partnership with the Vaal University of Technology aimed at enhancing the skills of local business people. The division will also launch an industrial and manufacturing hub later this year which will provide at least 12 local fabricators with a facility to work from, access to markets and the opportunity to exchange ideas. “We are cognisant of the role that we play in the socio-economic development of local communities and

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MANUFACTURING FACILITIES VAAL OPERATIONS, Gauteng Comprising the Vanderbijlpark Works and the Vereeniging Works, ArcelorMittal South Africa’s Vaal operations produced 38 percent of South Africa’s steel in 2015 and created R13 billion in value through beneficiation. The operations added R14 billion to the Gauteng Province through wages, supporting local suppliers and indirect contributions.

Pretoria Works focuses on production of commercial coke & chemicals

VANDERBIJLPARK WORKS IS THE LARGEST OF THE FACILITIES, PRODUCING PLATE AND HOT ROLLED COIL (HRC). IT HAS A CAPACITY OF 2.9 MILLION TONNES OF LIQUID STEEL PER ANNUM

NEWCASTLE WORKS, KwaZulu-Natal The Newcastle Works is South Africa’s foremost supplier of profile products, producing about 1.6 million tonnes of final product. This highly efficient and low-cost operation, rated among the lowest billet cash-cost producers in the world by a leading commodities research institute, bears testimony to the success of the intensive reengineering programmes undertaken at ArcelorMittal South Africa. In 2014, ArcelorMittal South Africa undertook by far its largest Capex project at the ISO 9002, 14001 and 18001 certified plant: a R1.8 billion reline of the blast furnace. The project helped create jobs and boost the

economy of the town as well as the northern KwaZulu-Natal region. Newcastle Works also invested R230 million in a Zero Effluent Discharge (ZED) plant to ensure compliance with environmental requirements.

SALDANHA WORKS, Western Cape

Vanderbijlpark Works is the largest of the Company’s facilities

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All coke & chemicals’ plants are ISO 9001, ISO 14001 and OHSAS 18001 listed

Saldanha Works produces HRC for local and export markets. It produced 16 percent of the country’s steel in 2015 and has a capacity of 1.3 million tonnes of liquid steel per annum. The operation has created R3.1 billion in value through beneficiation and contributed a further R1.3 billion to the province through taxes, wages, local suppliers and indirect contributions.


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as the country’s and the region’s largest steel producer, we will work with all stakeholders to ensure the sustainability of the South African steel industry for the benefit of all stakeholders,” Subramanian further details.

Quick to respond

The global steel industry contributes enormously to the growth and development of economies around the world. With the crisis in the steel industry continuing unabated, it is more important than ever before to ensure that ArcelorMittal’s Group-wide stakeholders understand the threat to the industry and the implication for national and local economies. “Currently, we are focused on stabilising the business and returning our operations to profitability. Above all, we aspire to be the preferred steel producer on the African continent as we understand what steel products are needed to satisfy the demand,” notes Subramanian. On a local scale in South Africa, the Company is more than half-way through its 2012-2019 strategy, which the CEO says will grow ArcelorMittal’s footprint on the continent. “We hope to double our tin product capabilities for the packaging market, continue modifying our facilities to produce galvanised products for the automotive industry, bolster our construction market offering and conduct a mini-reline of our blast furnace at Saldanha to extend the life of our operations,” Subramanian concludes.

Jefrey manufactures a large range of materials handling equipment including:

The Jeffrey brand has been a highly successful product, which has been locally manufactured and supplied in South Africa, for the past 50 years. We serve large industry including mining, steel-making, construction and forestry across the continent. We provide after-market support including parts and service for our full range of products.

Tel: +2711 849 8103 Cell: +2782 880 2325 Email: info@jefrey.co.za

ArcelorMittal South Africa staff at the 2016 CEO Recognition Awards

The Vereeniging Works has two electric arc furnaces

“The global steel crisis has undoubtedly affected our business and we have had to respond swiftly and decisively to ensure that we survive into the future. We are confident that with the important steps we have taken - together with the positive interventions agreed by Government - that we

will be able to turn the business around in the medium-term. We will continue our engagements with the Government to ensure that the necessary protection measures are fully implemented, including the designation of locally produced steel for use in Government infrastructure projects.”

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ilbeck Cranes has been capitalising on lucrative opportunities across the oil & gas, mining, power, construction and infrastructure sectors, bolstering its reputation among the world’s industry elite as the leading manufacturer in Australia. Responsible for maintaining more than 2,000 cranes of various brands, the Company has spent the past century of operation adjusting to the changing needs of its clients, retaining a flexible attitude towards business opportunities in order to satisfy customer requirement. Peter Heinrichson, the Company’s Operations Director explains: “Our core markets are never set in stone;

Engineering Flexibility Eilbeck Cranes has stood the test of time by refining its business strategy in line with industry trends to emerge as an industry leader unafraid of challenge and equipped with a flexible set of solutions Writer: Emily Jarvis Project Manager: Arron Rampling

a century ago it was the forestry industry, then the rail industry some time after. 15 years ago it was manufacturing, for the past decade it was mining and today, the focus is on infrastructure projects. We never leave any market but focus on what is required at the time. “This makes our ability to change very quickly and deliver what client’s want very desirable. A lot of companies back away from projects where the risks are considered too great, whereas Eilbeck takes pride in taking on challenging requests, which at the end of the day makes us a stronger Company.”

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BONFIGLIOLI TRANSMISSION AUSTRALIA

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onfiglioli Transmission Australia is now in it’s 27th year of supplying quality gearmotors to industry and is supported by an extensive network of distributors offering unprecedented gearmotor choice, engineering support, prompt service and a vast selection of at-call gear reducers assembled in Australia. Drives include: • New generation Heavy Duty Parallel Shaft and HD Bevel Helical multi-purpose gear units in sizes > 210,000Nm • Trasmital Planetary Gearboxes, series 300, 600, 700 & 800 with outputs > 1,128,000Nm • Worm Gearboxes, VF, W, WR & W-Ep for hostile environments. 2015 Bulk Handling Award Winner – Excellence in Application of Gears, Motors or Drives

The Company’s services are propelled by its flexibility; allowing for the design and manufacture of specially tailored cranes on a case-bycase basis. The Operations Director adds: “As the majority of our business is repeat business, garnered from our continually strengthening presence and reputation – also backed by a strong health & safety track record – we spend a significant amount of time and investment in research & development (R&D) to retain these clients and make sure we can satisfy their needs through valueadd services. One of the ways we do this is by offering a post-installation maintenance service should the customer require.” Eilbeck’s engineering team is just as flexible as the Company’s philosophy, displaying excellent knowledge of local markets and a huge passion for the job at hand. “The team at Eilbeck represent one of the key drivers of the business. They

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The team at Eilbeck represent one of the key drivers of the business. They are lovers of engineering and invest a personal interest in building new and innovative machinery

are lovers of engineering and invest a personal interest in building new and innovative machinery. We never flinch when the going gets tough; we have a reputation of getting things done on time and to a high quality,” Heinrichson adds.

Market adaptation

Despite the global economic downturn, Eilbeck has used the past few years as an opportunity to consolidate expertise with strategic investment decisions in R&D that serve to distinguish the Company from the competition. “Ironically, the downturn in the Australian economy has been the driver behind our recent growth,” Heinrichson says. “In fact, our biggest growth modes have been during downturns in the past. When times have been good, Eilbeck has made shrewd investment decisions and kept up with demand of the market; and when times turned we used these


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investments to tool-up, upskill our employees and develop future-ready products. Contrary to the current economic slump, Heinrichson believes that the oil & gas industry is a market that will be in high demand well into the future; having recently manufactured a new EX range of equipment for Africa’s oil & gas sector; allowing them to stay firmly afloat during the ongoing market conditions. “As always with ongoing growth there is continual investment in R&D, and we hope to unlock new opportunities in Africa, the Middle East, Russia and South America; as well as the Australian market which is expected to rebound in the coming years,” he highlights. Over the next 12 months, Eilbeck estimates its current investment in R&D to be in excess of $500,000 AUD. “We embrace the use of technology as a general rule, but it has to be as

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flexible as our teams and fit with our ‘anything is possible’ core philosophy; facilitating a more tailored service offering that can outperform the competition,” Heinrichson details. Eilbeck’s long-held ISO9001 and AS 4801 certifications further support the Company’s aptitude for continuous improvement which spreads throughout the entire value chain. “By monitoring our internal system improvements with the help of our staff, we have openly embraced change and are willing to try different things; we have been able to recognise the lessons learned as well as those that didn’t work so well, but we always learn from the experience and set to improve from that point,” he summarises.

Pushing boundaries

Having recently commissioned its CNC machining workshop with new

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Growing in line with industry trends and capitalising on customised solutions


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Embracing the use of technology

Tom Eilbeck, Owner

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equipment – including a eight metre mill, four metre lathe with 900 millimetres over the saddle, a five-axis Nakamura machining centre and a Kasto saw – Eilbeck Cranes is keen to continue growing in-line with industry trends and capitalise on customised solutions across as broader range of industry verticals as possible. “We have assessed that there are many opportunities for expansion and going forward, our export plans will be very aggressive as we see every corner of the globe as an opportunity. Moreover, we are currently submitting plans which will house another fiveaxis machining centre, and waterjet and automated storage systems for our new EX hoist series of products, the first of which are being despatched at the end of May, 2016,” says Heinrichson. These investments will be a welcome addition to Eilbeck’s six manufacturing facilities across Australia, which currently produce a range of cranes from 100 kilograms (kg)-500,000kg capacity. “Although 90 percent of our custom is repeat business, we have taken part in many high-profile projects such as a bogie system to move the Sydney 2000 Olympic Games Stadium, as well as underdeck gantries for the Sydney harbour bridge,” he explains. “Backed by our strong reputation, it is quite humbling to see people recognising the large investments we have made in our passionate engineering team and equipment by supporting us, which we believe has stemmed from our proven performance and ability to complete even the most challenging project, safely and efficiently.” He concludes: “Ultimately, we want to be the best at what we do, and this is very much reflected in our success to date. We are a hardcore Australian Company and we seek out people who have a hardcore Australian Company aspiration; those who strive to push the boundaries.”

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EFFICIENCY AT ALL TIMES

Malplast Industries has expanded outside of Kenya to take a stronghold of East Africa’s rigid plastic packaging sector Writer: Matthew Staff • Project Manager: Stuart Parker

s a leading manufacturer of rigid plastic packaging (PET & HDPE), Malplast Industries Ltd’s (MIL) influence across a whole host of industry sectors in Kenya has made its bespoke products the go-to range; creating a positive and profitable chain, from manufacture, to consumer, to stakeholder. Serving the pharmaceutical, beverage, edible oil, paint, cosmetics, lubricants, chemicals and power sectors, Malplast’s offering ranges from 60ml to 20 litres in volume, customising each individual product to suit every

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customer’s unique needs. For the past 12 years, this cachet within a competitive market has led to an unrivalled reputation across product branding, customised moulding, product delivery and innovation, as the Company’s Director, Dhrupun Shah notes: “Our differentiators include a strong focus on bespoke packaging solutions tailored to specific customer needs and preferences, as well as a culture of key supply chain and stakeholder relationships. “MIL is a private limited Company and since inauguration, operations have expanded eightfold, and we are now capable of efficiently managing


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Dhrupun Shah, Company Director

hundreds of SKUs; providing bespoke solutions to our clients in stretch blow moulding, extrusion blow moulding and alternative injection moulding across various industries.”

Expansion and diversification

MIL’s ownership structure is divided among five members, four of which also serve as executive directors of the business with a combined total of more than 110 years’ industry experience. Keeping the management structure simple and flexible subsequently lends itself to enhanced levels of entrepreneurship and quick decision

making; attributes that have led to Malplast’s rapid evolution over the past decade. “As part of our expansion and diversification efforts, we have now ventured into alternative moulding

for electrical components and have expanded our PET preform producing capacity twofold to enhance our presence in regional markets,” Shah says. Such expansion is not just limited to Malplast’s product offering either, with demand taking the business outside of Kenya and into the surrounding East African region also. Uganda, Tanzania, South Sudan, Rwanda and Burundi are all now catered for with MIL’s management team keen to venture into other countries in the region – and even Central and Southern Africa as well – moving forward.

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Dispacth station

Display shelf of product range

“In line with MIL’s strategic initiatives, the management of the Company continuously scans the environment using various market research and other tools to gain insights into trends, technology and opportunities to exploit,” Shah adds in regards to the market indicators driving such expansion plans. “It’s a case of being where our customers are while staying in touch with end-user perceptions and preferences. “How they have been changing over time and anticipating how they will be changing in the future is integral in establishing and retaining our position as packaging thought leaders in our markets.”

Efficiency and quality

Never one to sit still and rest on its laurels, Malplast looks to complement its external growth with continuous internal refinements, most recently epitomised by new and advanced ERP

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Reception area

MIL has staff turnover levels that are significantly lower than industry and geographic averages with close to zero percent in the C-suite

systems introduced from a technology perspective, and the addition of a multi-storey storage facility from a logistical standpoint. New state-of-the-art equipment is also brought into the fold on an ongoing basis, in order to give the Company’s workforce the best platform possible to innovate from. “MIL has staff turnover levels that are significantly lower than industry and geographic averages with close-to zero percent in the C-suite,” Shah continues. “This is because of the culture of a strong relationship focus, as well as continuous staff training and development.” Falling within this human resource ethos is a similarly honed local commitment which sees not only the majority of employees sourced from the surrounding area, but the vast majority of raw materials sourced from locally registered parties also. Extensive corporate social


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“BLUEKAT – in an oil free class of its own!” Markus Henkel, Product Market Manager Oil free class 0 compressed air (regardless of intake air quality), water-white condensate and a virtually maintenance-free system: That’s what we call no-compromise oil free air! BOGE BLUEKAT models replace classical filter treatment with their built-in converter. This makes them especially safe and environmentally friendly. It has never been so affordable to consistently invest in Class 0 oil free air – tested by TÜV Süd!

For further information see: www.boge.com

Product stored at the Company’s warehouse facility

Directors office

responsibility efforts compound this philosophy having sponsored a local Kenyan football team and contributing regularly to social welfare and community development initiatives in its regions of operation. All of these carefully monitored facets across personnel, the supply chain, local sustainability and business acumen have led to an ambitious yet achievable target of 20 percent yearon-year growth, driven by Malplast’s two overriding principles: efficiency and quality. “Malplast Industries enjoy an efficient working staff dedicated to excellence, and here at Malplast industries, ‘efficiency’ and ‘quality’ are our watch words,” the Company concludes. “Working with us is basically dependent on professionalism, experience and the ability to deliver quality products, on time, and with innovation.”

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ame Q U I C K S U R E

A at your orld

ingertips

QUICKSURE continues to live up to its name in bringing quick and effective short-term insurance delivery to a client base assured of satisfaction Writer: Matthew Staff • Project Manager: Callum Philp n historic deal signed in 2015 with renowned finance specialists, Mutual & Federal Insurance Company Limited has ensured that South African short-term insurance experts, QUICKSURE have the perfect foundations for further market growth in the coming years. With offices in Gauteng and KwaZuluNatal, comprising a workforce of more than 130 employees, the Company’s expertise in the underwriting management domain spans across its two divisions - QUICKSURE (Pty) Ltd and QUICKSURE Commercial (pty) Ltd - thus catering for both personal lines insurance and commercial and business insurance simultaneously.

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Shaheen Rajab, Chief Executive Officer, QUICKSURE

While this has been the core business strategy of the Company since its inception, the backing of Mutual & Federal has given QUICKSURE the scope to now capitalise on the philosophies and experience that have already brought the Group such a positive name in the industry. With a market share exceeding 22 percent, “our mission is to be the preferred partner to both brokers and insurers by creating an environment that is competitive for policyholders, yet sustainable for insurers”, notes Chief Executive Officer, Shaheen Rajab. “QUICKSURE performs all of the functions of an insurer with the backup of our insurance partners, Santam


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Ltd and Mutual & Federal Insurance Company Limited, and our highly innovative and flexible product range covers almost every aspect of the short-term insurance business.� Ultimately delivering an exemplary service and value to all stakeholders, its personal line portfolio bridges buildings, house contents, risk management, motor, watercraft, personal liability and personal accident; complementing a commercial line remit that ensures that no sector is left underserved. Agriculture, general enterprise, engineering, transport, marine, construction and a market-leading motorcycle underwriting service at competitive premiums epitomise the dedication that QUICKSURE shows to its clientele across the board. “We are passionate about and committed to our partners, as well as their clients, and are totally focused on

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utual & Federal was established in 1831 and are 100 percent owned by Old Mutual PLC. We operate within a wide network of branches located in South Africa and is integrated into Old Mutual Africa in Namibia, Botswana, Zimbabwe and Nigeria. We are experts in agriculture, engineering and marine insurance and have extensive range of insurance products and solutions to fulfil personal, commercial and corporate needs. In 2013/2014, the Corporate Research Foundation Institute named us Best Employer for the second consecutive year. T +27 860 225 563 E callmf@mf.co.za

Catering for both personal lines insurance, and commercial and business insurance

their every need,” Rajab emphasises. “Since our establishment we have built a reputation for excellence as well as reliable, trustworthy relationships with our insurers, brokers and their clients.”

Customised services

Founded by John Edward Bunting in 1990 as a brokerage firm with facilities in place to work alongside Mutual & Federal, the formulation of QUICKSURE CC as an underwriting management agency in 1994 signalled the first significant stage of its evolution. Rajab continues: “In 1998, QUICKSURE CC was transformed into QUICKSURE (Pty) Ltd and in 1999; QUICKSURE Commercial (Pty) Ltd was established to expand the commercial product offering of the Group.” Expanding and diversifying its operations in the intervening years, its efforts were recognised in 2012 when receiving a Silver Arrow award in the national survey on underwriting

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Since our establishment we have built a reputation for excellence as well as reliable, trustworthy relationships with our insurers, brokers and their clients

www.mf.co.za managers in South Africa for ‘General Commercial and Domestic’; an accolade compounded two years later when receiving both Diamond and Silver Awards across commercial and domestic and personal lines respectively. Developing and time again up to the present day, QUICKSURE’s entrepreneurial nature and subsequent ability to make quick decisions in a sector often challenging to navigate has ensured that it remains ahead of the industry curve with a continuous stream of new products and services being unveiled. “QUICKSURE has launched a mobile application (‘Mobi App’) for our ‘Your QUICKSURE’ clients,” Rajab offers as an example. “ It is designed for policyholders to access an array of customised services, which include but are not limited to a panic button with access to 24-hour emergency services; access to emergency locationbased services such as nearby hospitals


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BUILDING PARTNERSHIPS & SECURING TOMORROW

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As one of the South Africa’s most trusted short – term insurers, we understand the value of building and protecting the right relationships. That’s why we’ve partnered with Quicksure. Here’s to seeing our partnership flourish as we protect what is important to our customers, together.

Policies underwritten by Mutual & Federal Insurance Company Limited (FSP12)

A member of the

Group

Authorised Financial Services Provider

7132_M&F_QuicksureAdvert_96x160w_FA.indd 1

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QUICKSURE APP & VALUE ADDED SERVICES

Value - Added Solutions Provided by

ASSIST SERVICES • Motor Vehicle Roadside Assist • Home Assist • Home & Convenience Drive • Accident Protect • Legal Assist MOBILE APP FUNCTIONALITY • A built in panic button with access to 24hr emergency services • Motor & Home Content claim forms • An Accident Manager to guide the policy holder to collect the right data after an incident • Vehicle pre-inspection functionality www.oneloyaltyrewards.co.za

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and police stations; a claim-lodging facility with the ability to upload incident-specific images; the ability to request an alteration or a copy of your policy schedule; travel services, a VIP concierge desk and discounted offers from more than 300 retail partners; and up-to-the-minute news, weather and traffic reports.” Such introductions to the market are always revealed off the back of substantial research and development, as well as close collaboration with its partners to ensure that the clients’ short-term insurance needs are always fulfilled in line with the modern climate.

Competitive edge

Facilitating the various updates, upgrades, launches and technological advancements is a plethora of investments and strategies going on behind the scenes to give the Company the best platform possible to go out and do what it does best. Substantial capital expenditures

QUICKSURE’s expansion and diversification strategy has been rewarded with both Diamond and Silver Arrow awards

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have been made in recent years to that end, especially around internal IT platforms to aid efficiencies and security among its own administrative systems. The QUICKSURE IT platform subsequently allows the Company to stay online around the clock to deal more speedily with brokers’ requests or queries. However, as is the case for any successful business; it is the people within the organisation that continue to drive QUICKSURE forward. “Ongoing staff training - internally and externally - is always maintained to ensure our ability to respond to clients’ needs,” Rajab says. “QUICKSURE is FAIS compliant and we ensure that all our staff members are equipped with the necessary training and expertise to perform their duties.” In line with its wider corporate social responsibility (CSR) commitments, this workforce is also made up primarily of


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The QUICKSURE team at the 2015 Gauteng Annual Awards

QUICKSURE office

local employees; an ethos which also extends into its supply chain decisions and its external charity works which is set to be ramped up even further over the next couple of years. Rajab continues: “Our belief is that

charity begins at home and in view of this we have a strong focus on looking after our staff first. Having said that, we are currently investigating certain charities that we may want to get involved with for the 2017-2018

financial year.” Over that same timespan, QUICKSURE intends to attain a national footprint with branch offices in the Western and Eastern Capes, as well as in Free State, North West Province, Limpopo and Mpumalanga. Other goals include streamlining all operations in accordance with TCF (treating customers fairly) incentives to achieve ultimate customer satisfaction; which will in turn increase its broker base to more than 2,000 across the country. He concludes: “What sets us apart is the fact that we are very technology focused to deliver better service. Having said that, QUICKSURE still retains the ‘personal touch’ when it comes to its clients. “QUICKSURE is ultimately focused on delivering competitive products which provides a competitive edge for our broker base.”

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Strategic Growth PARTNERING FOR

Abelard hopes that its newly formed relationship with Leppard and Associates will support its consolidation and diversification strategy, repositioning the business with an emphasis on simplifying its specialist insurance products Writer: Emily Jarvis • Project Manager: Callum Philp

onsidered market leaders in the provision of liability insurance to South Africa’s growing security industry, Abelard Underwriting Agency (AUA) has spent the past 12 months repositioning the business in close cooperation with local insurers to diversify and enhance its product offerings going forward. Driven by the Company mission - “to uphold an ethos of professionalism, integrity and service excellence in our endeavour to accommodate client needs with a view to building mutually beneficial and longstanding relationships”- Abelard has builtup an extensive history across a whole host of specialist and niche insurance segments since commencing operations in August, 1996. “After becoming a Lloyd’s Coverholder for accident and health products as well as obtaining a local facility for the medical schemes business during the first year of

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David Cox, Managing Director

Underwriting expertise and understanding of client needs sets the Company apart across all its markets


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operation, our initial focus was on the provision of reinsurance to medical schemes, closely followed by the provision of personal accident / stated benefits and medical expenses top-up cover,” recalls Managing Director, David Cox. “Further bolstering this business strategy was the wealth of experience gained in 1998 through the leadership of Clive Norrington, and shortly thereafter Craig Diederiks, who joined the ranks of Abelard’s management; bringing with them expert knowledge in liability and motor insurance and consequently extending our portfolio of covers by providing insurance specifically geared to the security industry.”

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Specialised segments

We consider ourselves to be market leaders in the provision of liability insurance to the private security industry, which represents approximately 60 percent of Abelard’s gross annual premium

Although Abelard occupy a small piece of the market when compared to the sheer size of South Africa’s overall insurance market, the Company has obtained a significant share of more specialised segments, today comprising directors and officers insurance; personal accident and health risks; security motor and motor fleet; security liability insurance; special events liability insurance; broad form liability insurance and professional indemnity liability insurance. “We consider ourselves to be market leaders in the provision of liability insurance to the private security industry, which represents approximately 60 percent of Abelard’s gross annual premium” says Cox.

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“Our underwriting expertise and understanding of client needs coupled with the fact that our no-nonsense approach to claims is what sets us apart from the competition in these markets.” There are currently more than 9,000 active security companies in South Africa; a number which Cox says is always rising. “The industry is being very entrepreneurial, and given the constant stream of new business being

On-hand to offer bespoke coverage

Informal training provides financial assistance to staff, to enable them to study and provide regulatory training when required

The scope of cover is limited to basic cover, smaller limits and reduced excesses with a more favourable premium. When the need arises, however, we are able to cater for a bespoke cover package

registered, a number of years ago we created a liability product specifically for small and/or new security businesses,” he states. “The scope of cover is limited to basic cover, smaller limits and reduced excesses with a more favourable premium. When the need arises, however, we are able to cater for a bespoke cover package.”

Market repositioning

Building local relationships to unlock further growth across new and existing markets

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In light of the Company’s strategy to diversify its insurance offering and enter other equally - if not more competitive - insurance verticals, Abelard has been working closely with local insurers to identify and capitalise on the latest needs of the market. Cox explains: “The increase in competition has put pressure on top-line income while costs have continued to rise for everyone in the market, thus Abelard has had to find alternative ways to deliver its product offering and consolidate expenses.”


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Problems Solved! One of the ways the Company is streamlining its existing business is by simplifying access to its products by means of a simplified online platform. “Our new partnership with Leppard and Associates (Pty) Ltd - who underwrite on behalf of Lombard Insurance Company Ltd and are based in Sandton - will see us utilise their online quote and bind system which will also simplify product distribution,” says Cox, who comments that the formulation of business relationships within the local market, in particular with brokers, is imperative for the continuation of business. “In respect of our motor class, we are in the process of making the change to the use of telematics (black box) in monitoring our motor business; designed to help safer drivers pay less for their insurance.”

Helping People Find Better Ways To Do Great Work! Proud supplier of digital solutions to AUA

Tel: (+2711) 315-8085 Email: info@xbc.co.za Web: www.xbcit.co.za

providing financial assistance to our staff to enable them to study and provide regulatory training as required. We have recently been involved with INSETA, taking part in their SMME learnership and mentoring programme and we were previously also involved in a UNICEF job-shadowing programme for young women as part of our continued emphasis on equal opportunities in the workplace,” Cox explains. Taking into account the current state of the insurance market, its competitive nature and the South African economy, Cox expects Abelard’s deal with Instilling a professional and friendly Company culture Leppard and Associates to enable the He adds: “We believe our Unlocking growth Company to enjoy substantial growth in relationship with Leppard and In addition to seeking out local the years to come. Associates will provide cross-selling business relationships, Abelard also “Ultimately, opportunities to build opportunities to their broker base. places emphasis on hiring the most local relationships represent a key pillar While Abelard is a strong brand in its suitable candidates for the job at in our consolidation and diversification respective insurance sectors, there are hand, who will fit in well with the strategy that will give us the competitive some verticals where the partnership professional and friendly Company edge and unlock further growth across with Leppard will only serve to culture. new and existing insurance markets,” enhance our reputation.” “We have an informal training policy, he concludes.

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Empowering Business Sumac Microfinance Bank’s rapid growth over the course of little more than a decade is showing no signs of slowing down as it stays true to a philosophy of helping others succeed Writer: Matthew Staff Project Manager: Callum Philp umac Microfinance Bank’s wide range of products has made waves in Kenya’s industry due to its bespoke nature and close adherence to the very latest market trends. Varying across fixed and savings accounts, short and long-term loans, the business which originally began as a credit-only financial services provider continues to diversify its offering with the most timely and appropriate solutions available in the sector. “The fixed account offers attractive interests while the savings accounts are flexibly designed to meet the banking aspirations of various customers,” explains the Company’s Chief Executive Officer (CEO), John Njihia. “The savings accounts include the Mapato Account that gives salaried customers more value and flexibility in account transactions; the Jumuiya

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Account designed for organised and investment groups; and the Jipange Account for customers who want to save regularly for a future project. “In terms of loan products, the Bank offers a wide range of facilities cutting across personal loans (salary advances), group loans and business loans, working capital, LPO financing, asset financing, insurance premium financing, bid bonds, bridging loans, and many others.”

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Established in 2004 with a seed capital of only $5,000, Sumac Microfinance Bank was able to mobilise the $600,000 share capital required by the Central Bank of Kenya in a span of just a few years to be licensed as a deposit taking microfinance bank. Today the Bank boasts a share capital in excess of $900,000 and

John Njihia, Chief Executive Officer

continues to innovate and update its service range to align itself with its ambitious growth plan and ultimate goal to transform into a fully-fledged commercial bank. “Sumac Microfinance Bank is driven by the inherent philosophy that ‘there is no more noble occupation in the world than to assist another human being to succeed’. Based on this philosophy, the Bank is constantly analysing the changing trends and needs of customers and responding with appropriate solutions,” Njihia says. He adds: “As the Kenyan economy continues to grow and businesses are more empowered, the demand for bigger loans is growing. As a response, the Bank has been mobilising for cheap and long-term loans from both local and international investors to shore up its capital base. Already a number of investors have come onboard and negotiations are ongoing with others. “In terms of products, the Bank has, in recent times, launched products like ‘PataRaha’ that is aimed to finance individuals and families who have not saved for a holiday but nonetheless wish to enjoy one; and ‘PepeanaKaro’ that enables parents to access school fee loans at affordable interest rates.”

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For individual & SME customers to acquire assets, Sumac finances up to 70 percent of the purchase of motor vehicles, machinery and equipment which are less than 10 years old

Seamless and real-time services

Agricultural and religious groups are also aided by Sumac’s commitment to quick market responses, which have been largely facilitated by its equally focused mission to embrace the very latest technologies and mobile banking avenues as alternative delivery channels. Extensive levels of research and development and market analysis have been the driving forces behind Sumac’s ongoing drive for operational excellence, the success of which is becoming all too evident when exploring its inception only 12 years ago. Sumac Microfinance Bank was established in 2004 by a group of 14 friends who came together as an investment club, popularly known as a chama (group methodology) in Kenya. The Bank subsequently started as Sumac Credit Ltd with a mission to empower entrepreneurs who could not unleash their full potential due to the tough condition of accessing credit from commercial banks. The Bank later transformed into a microfinance institution and upon the enactment of the Microfinance Act in Kenya, it applied and was licensed by the Central Bank of Kenya as a deposit taking microfinance bank. Today, Sumac Microfinance Bank is a fully-fledged operator with a clientele

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spanning both small and mediumsized enterprises and is one of only 12 licensed deposit taking microfinance institutions in Kenya with a presence in both the Nairobi and Kiambu counties. “There are now plans to venture into other parts of the country to follow our clients who are distributed all over,” Njihia continues. “Internally the Bank has invested heavily in a core banking IT system integrating all its branches, thus being able to offer seamless and real-time services.”

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Strong strategic partnerships with the likes of Kenswitch and Safaricom further compound the growing footprint that Sumac is enjoying in the country, with customers being the main beneficiaries as they are able to access banking services around the clock as well as a host of multiplatform banking opportunities and the full range of account services.

Competitive edge

When on such a steep growth


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trajectory, the need for equally ambitious and competent staff is heightened, and Sumac Microfinance Bank ensures this requirement is catered for by employing the most qualified and experienced personnel across all departments. Engulfed within this workforce is a similarly driven pool of young employees who also understand the dynamics of the ever-changing market, before receiving optimum training and guidance to hone those skills in the longterm. “While retaining talent in the industry is a challenge, we strive to hold on to our best talents through training opportunities, both in-house and external, and by creating a ‘family setup’ where employees feel their welfare is of importance to the management. Indeed, we strive to make Sumac an employer of choice,” Njihia explains. As a responsible corporate entity, this ethos stems further into the business via its corporate social responsibility (CSR) activities, understanding the environments in which it operates before striving to generate opportunities, innovations and competitive advantages for organisations while solving pressing social needs. “Product innovations are another critical strategy for Sumac,” Njihia adds. “The Bank is currently working on

While retaining talent in the industry is a challenge, we strive to hold on to our best talents through training opportunities, both in-house and external, and by creating a ‘family setup’ where employees feel their welfare is of importance to the management

a non-collaterised product as part of its commitment to continue serving the bottom of the pyramid customers who have largely been ignored by mainstream financial institutions.” Selling value and efficiency across everything the Bank does, its CSR initiatives aren’t too much of a stretch from its everyday functions, and this streamlined and entrepreneurial structure overall looks set to cement its position as one of the fastest growing and reliable

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Personalised banking solutions tailored to suit your needs.

Tel: +254 020 2283000 | Office Cell: +254 709 702 000, +254 738 222 300 Email: customerservice @creditbankltd.co.ke | www.creditbank.co.ke

microfinance banks in Kenya. “Sumac’s competitive edges include our unmatched speed in delivery of services and products – our turnaround time is 48 hours – our dedicated workforce and our flexibility; and our five-year strategic plan will see a significant transformation in terms of brand visibility – four new branches every year from 2016 – as well as our clientele base tripling in the next five years, and the size of our loan and deposit books doubling every year,” Njihia concludes. “This will be achieved by the continued focus on the micro, small and medium enterprises which is our niche market. Sumac is seeking to deepen its presence in the banking sector and the journey towards this noble proposition has begun with the introduction of current accounts, foreign exchange services and joining the national payment system, which are all in the offing.

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TN Benin’s pace of expansion has accelerated in the country over the past three years thanks to the Company’s alignment with the wider Group vision to lead the delivery of a bold, new digital world for customers, intertwined with Chief Executive Officer (CEO), Stephen Blewett’s endeavour to bring the latest telecom innovations to the people of Benin. Since acquiring the Africa and Middle East operator, Investcom for US$5.5 billion 10 years ago, MTN Benin’s operations have benefitted from significant backbone infrastructure investments and upgrades that have served to strengthen the Company’s

local coverage, resulting in a subscriber base of more than four million. Blewett has witnessed the Company more than double its business and evolve in line with the latest technology trends on the continent. He says: “MTN Benin is pushing innovation as a cultural change in recognition of the vital role that the new digital world will play in the continent’s development. Given the influx of smart devices and continued demand for data services, the Company has been responsible for many industry firsts in the country in this regard; becoming the first to have a licence for 3G, 4G, and LTE. “The thing we are most proud of is our unique positioning as one of the

most innovative telcos in the MTN Group. Benin is often the first market where new products are tested and developed due to its favourable economic environment and other influential factors,” the CEO adds.

Continuous innovation

Since taking the reins in 2015, Blewett has been careful not to put all his eggs in one basket and subsequently develop the country’s digital landscape by making vital investments not just in data and other existing traditional services; but leading the way in enterprise business, expanding coverage in rural areas and deploying the Group’s Mobile Money service. “MTN Benin is increasingly seen as,

Innovation as a Cultural Driving Innovation

Aligning with the needs of the country and Government to overcome local challenges, MTN Benin is placing emphasis on continued innovation to lead the delivery of a bold, new digital world Writer: Emily Jarvis Project Manager: Donovan Smith

The ECOM project is aimed at raising awareness of the necessity to protect the environment through proper management of electronic waste

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CHANGE and recognised for, its diverse and innovative basket of services; the result of the wider Group’s industry knowledge and distinct customer experience. We are always trying to innovate and think of new approaches to reach our customers,” says Blewett. MTN Mobile Money continues to transform millions of lives by providing access to financial services for people who are largely excluded from traditional financial services. Since the roll-out of the service in Benin, MTN has focused on offering more possibilities for people to use these services within their relevant ecosystems. He explains: “This year, we launched this model for the

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country’s motorbike taxi services to receive payments. This is the perfect example of how MTN Benin is taking a Group product and applying it in a locally relevant way. “We have done some amazing things to empower local businesses, individuals and communities; evolving as a Company in line with their needs. It is safe to say that enterprise business will be a big growth market for us.”

Connectivity

Stephen Blewett, CEO, MTN Benin

Having rolled out 3G in 2012, MTN Benin now has 31 4G sites that are LTE-advanced sites and signed its first managed rural coverage deal with Ericsson last year; designed to answer

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MTNers participating in the 21 Days of Y’ello Care

the need for mobile coverage in parts of central and northern Benin. “From a technology upgrade and investment point of view, Benin is moving fast and so we must not allow rural areas to fall behind. It is important that we provide our services across as much of the country as possible to contribute to lowering the number of people without access to the internet,” Blewett says. “The overall mission of the MTN Group is to make our customers’ lives a whole lot brighter, and that starts with the basics of providing mobile coverage. We’re always interested in finding new ways of connecting people from all walks of life in Benin.” He adds: “What matters to Benin, matters to us, and with Ericsson’s help, we are now able to provide mobile coverage in areas where it previously did not exist. This connectivity allows people in these areas to communicate with family, friends and acquaintances which they previously could not do.

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School Connectivity Project initiated by the foundation in Parakou

We are also proud to see members of these communities establishing themselves as MTN Mobile Money agents. We’re keeping true to our promise of leading the way and welcoming everyone into the bold new digital world.”

Plugged into the community

Nicolas Gomez, Head of Corporate Services receiving a prize from Ericsson

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MTN Benin invests in its operations to not only remain ahead in an increasingly competitive market, but it does so with a customer and community-centric focus that recognises the need for continuous improvement and innovation on all fronts; including the regular training of its 320 staff who remain “plugged into the community” at all times. “MTN Group is known for its corporate social responsibility initiatives which place emphasis on digital education, healthcare, provision of sport and other pressing local needs; funded through the MTN Foundation, where one percent of our


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CIS BENIN, Lot 118 Zone Résidentielle, Von du Pnud Tel: +229 21 31 75 16, Fax: +229 21 31 75 19, Email: support@cisbenin.com

As part of the 21 Days of Y’ello Care in 2010, MTN staff built a motorised canoe for the students of So-Ava, a lake village in Benin

The Solar Power Center in Detekpa financed by the MTN Foundation

The MTN Solar Cart allows customers in rural areas to recharge their phones

revenue is spent on CSR. Our 21 Days of Yello Care initiative commences in June and this annual activity will involve all staff,” Blewett explains. He concludes: “We hope that our activities in the community complement what we are trying to achieve in Benin. We want the MTN to be viewed as more than a telecoms Company, breaking the ‘one-industry, one-purpose’ mould to also be seen as a bank, an insurance provider, a TV services provider, an educator, and your connection to the world and local community. This range of value-added technology and telecommunications services will make our customers’ lives a whole lot brighter.”

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Innovators ISLAND NATION

Airtel Seychelles is answering the need for more innovative telecom services by investing in a whole range of value-add products Writer: Emily Jarvis• Project Manager: Donovan Smith otivated by its aim to bring exclusivity to customers in Seychelles, Airtel has forged ahead with the completion of its fibre network in a bid to make sure local customers can access the best and latest services across the technology and telecommunications sphere. 2016 marks 18 years since Bharti Airtel Group entered the international market with its first African foray in Seychelles. It was the first telecoms operator in Seychelles to bring prepaid and HSPA/EDGE and 3G services to the country, in addition to a whole host of value-added services that utilise cutting-edge and often industry-first technologies; such as expanding its 4G data and fibre capacities, entering the television services market, and bringing its staple Airtel Money and Airtel Premier services to Seychelles. “Our high level of innovation, emphasis on customer experience and inclusive technology will ensure we remain ahead of the competition, and our products are carefully designed so that when customers try us, they stay with us for life,” Managing Director (MD), Amadou Mahamat Dina stated back in 2015.

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Even through tough economic times, the Company has shown resilience and invested in the necessary backbone infrastructure to answer the developing needs of Seychellois customers; reportedly securing more than 65,000 mobile subscribers by the end of the first quarter of 2015.

Cutting-edge technology

Witnessing vast technological improvements and an ever-increasing mobile penetration rate - which currently stands at more than 150 percent - Airtel Seychelles has taken advantage of industry trends and quickly adopted 4G, becoming both the first 4G African venture for Bharti Airtel Group, and the first commercial LTE network in the country. “The service is a state-of-theart network based on FDD-LTE, making Seychelles among the first countries in sub-Saharan Africa to commercially deploy this cutting-edge technology,” explained Dina. At the end of last year, Airtel Seychelles provided 4G coverage across 70-80 percent of Mahé, Praslin and La Digue. He further detailed: “Initially, 4G coverage was available in urbanised and key areas of the country as part of phase one; with the service

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Amadou Dina, MD (left) at the launch of 4G in Seychelles, handing the country’s Vice President the 4G dongle


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available in corporate offices and the airport for example. As of May, 2015, we added 15 additional sites in phase two of the project.” According to recent statistics, more than 60 percent of Airtel Seychelles’ subscribers now own a smartphone, which points towards the organic evolution of a more technically-savvy customer base in the country, seeking more innovation for their money. “The 4G network was launched by the Vice President of Seychelles, Danny Faure, which demonstrates just how deeply rooted and valued the Airtel brand is in Seychelles. Mobile data usage has currently only reached 25 percent in the country and therefore, the market holds ample opportunity for Airtel to grow,” Dina added. Similarly, 3.75G has been rolled out over a large proportion of the country and its islands, with more sites planned for Mahé, Praslin and La Digue. “Our long-term goal is to achieve the same

EMORY OAK PROJECTS

The 4G network was launched by the Vice President of Seychelles, Danny Faure, which demonstrates just how deeply rooted and valued the Airtel brand is in Seychelles

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mory Oak Projects was realised in 2011 and specialises in telecommunications, civil construction and infrastructure developments. Our core competencies include turnkey GSM site builds spanning civils, rigging, reticulation, tower & GSM infrastructure maintenance and power solutions. Emory Oak Projects holds vast experience in working throughout Africa / Indian Ocean Islands having been involved with various network backbone and maintenance projects for a wide-ranging variety of clients, including Airtel Seychelles, delivering on client expectations. Our services in relation to the above include, but are not limited to: • Passive / active infrastructure audits which includes yet not limited to GSM sites, switches power plants • Site builds and complete, structural audits with recommendations and implementation thereof • Maintenance programmes, retorque programmes, load assessments and upgrades / retrofits. Fixed-line networks included. Key factors in the success of our business include an open policy coupled with a team possessing the passion and in depth knowledge of the industry, who offer feasible and practical solutions and guidance to all our clients no matter how big or small. We also offer a full range of professional design, installation, consultation and PM /IPM services. Emory Oak is a partnership as a service provider, thus forming a strategic long-term alliance with the client, forging a lasting and transparent business relationship. We have the ability to adapt to changing conditions and technologies, to suggest high-end world leading solutions and to provide and maintain excellent levels of service and reliability. We aim to ensure dependable and sustainable growth and development to become the service provider of choice across Africa.

VP sharing his thoughts on Airtel 4G and fibre plans

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We s p e c i a l i z e i n

Telecommunications, Civil Construction, Fiber Construction, Infrastructure Development, Graffiti Removal Services, Chemical Supplies, Industrial Cleaning & Hydraulic Services.

EMORY OAK PROJECTS: South Africa +27 82 081 8772

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South Africa Office +27 11 740 0375 / 0391

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Nairobi Office +254 020 367 3363

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Seychelles Mobile +248 2741888

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A I R T E L

S E Y C H E L L E S

quality of service, wherever you are in Seychelles, and the Government has been very supportive throughout these milestones,” summarised Dina. There was even more cause to celebrate this year as Bharti Airtel became the third largest mobile operator in the world; something which Dina was proud to be a part of. “Airtel has had a deep impact on the lives of the people and society,” he commented at the event. “Airtel serves the needs of major corporations as well as fishermen, farmers and construction workers. Being classed third in the world is admirable taking into consideration that Bharti Airtel is a Company which was launched only 21 years ago. Airtel Seychelles has been at the forefront of innovation, first to launch prepaid services, 3G, 3.75G, 4G and mobile money, and we will continue with this trend.”

Meeting local needs

Our long-term goal is to achieve the same quality of service, wherever you are in Seychelles, and the Government has been very supportive throughout these milestones

With telecoms representing one of Seychelles’ biggest growth sectors and a substantial GDP contributor, Airtel has worked hard to make sure that its investments fulfil the needs of its customers across the islands. Leveraging the Group’s wider investment support of 100 million rupees back into the development of the business in each country every year, Dina is committed to using this investment to make sure that “wherever our customers go, they will receive the same high quality service and connectivity levels”. Airtel Seychelles is driven by both Group strategies and an individually tailored approach specific to the country’s 115-island structure. “Working for a globally-renowned Company places us in good stead when it comes to industry challenges,” said Dina. “The in-depth knowledge that the Group has of Africa’s telecom market allows us to focus on the positives and get excited about what the future holds.” By adopting a local strategy to meet local customer needs, the Company is well on its way to adopting the qualities of a smart city, with the aim of becoming the best in Africa. “We are in the top three i-city African nations and strive to provide a high quality of IT communication and associated infrastructures not just in urban areas, but across each island,” affirmed Dina.

Only the best

Affordability and quality of service are the two cornerstones of Airtel Seychelles’ operations, and in order to provide this, the Company is proud to have brought only the best technologies to the unique island nation; including Airtel Money and Airtel Premier. “Given that more than 50 percent of Seychellois are banked, combined with the high mobile penetration rate of 150-plus percent, has guaranteed rapid

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Dignitory during the mobile money launch

uptake and has brought Airtel Money’s financial inclusion services to great heights which we are extremely proud of,” emphasised Dina. Alongside this, the launch of Airtel Premier in 2014 has pioneered exclusivity and inclusion in the telecom market for loyal Airtel customers. Those subscribed to Airtel Premier receive priority treatment from the Company and have access to the latest and greatest services. “Airtel Premier is for customers who have been with us for a long time and expect the best service. The Premier customer is fast tracked through any interaction with the Company, with priority routing on services on the network plus the ability to earn loyalty rewards in terms

The Company carries out regular CSR projects

of offerings like Priority Pass; a service that allows our customers to access hundreds of airport lounges in more than 120 countries worldwide,” he detailed. “So far, we have received positive

feedback in terms of our level of service and will continue to invest in Airtel Premier going forward, adding more destinations abroad to extend this VIP treatment.” This ethos for the best value innovations and service extends beyond Airtel Seychelles’ telecoms remit into its corporate social responsibility (CSR) activities in the community. “Above all, we want every single citizen to feel Airtel is part of their DNA,” Dina concluded. “On average, we complete two or three CSR activities every month that tackle every aspect of the community; education, healthcare, sport, environment, music and more... We have many more surprises coming up this year.”

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AFRICA

INSURANCE

&

REINSURANCE

E V E N T

CONFERENCE

2016

F O C U S

An innovative avenue for brainstorming business strategies

THE 6TH ANNUAL Africa Insurance & Reinsurance Conference 2016 (AIRC), scheduled to be held in Nairobi Kenya on the 28-29 June, 2016 will again gather key decision-makers from Africa’s leading regional insurance and reinsurance companies, regulatory agencies, brokers and financial organisations. The six edition of AIRC will provide an avenue for brainstorming the innovative product offerings and strategies for the Insurance and Reinsurance sector under the theme ‘Capturing Growth in a Transforming Africa Insurance & Reinsurance Landscape’. Since Africa is a strategic market for growth, AIRC 2016 aims to equip insurance industry players with a winning strategy for creating new market segments and incorporating technological innovations for exponential client-base growth. Besides revisiting issues from AIRC 2015, the discussions and sideline events at AIRC 2016 will explore several opportunities for growth including product development, better distribution processes and channels, among other topics. 

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Key discussion points of this event include: • The regional macroeconomic environment and trends • Assessing the business drivers for insurance and reinsurance opportunities in Africa: re-thinking growth strategies • The regulatory environment national issues likely to impact insurance business • Strengthening the human capital through training and development • Distribution strategies for unleashing growth across the region • Insurance and financial inclusion framework: cyber risk insurance Life reinsurance: areas of growth and opportunity • The landscape of Africa’s P&C sector • Capitalising insurance/reinsurance companies: the investment landscape • Leverage the opportunities in technology for growth and maturity • Pensions and retirement solutions

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Another key objective of the conference is to help discover and exploit the competitive advantages held by individual participating firms. Through this, a more enhanced customer experience and market share growth for individual firms is always reported.

E V E N T

D E TA I L S

WHEN: 28-29 June, 2016 WHERE: Crowne Plaza Hotel, Nairobi, Kenya REGISTER: +254 20 221 8114 WEBSITE: aidembs.com/insurance_conference


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Africa Outlook - Issue 39  
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