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BUSINESS TRAVEL GUIDE 28

KENYA PIPELINE COMPANY

102 Transforming into Africa’s premier oil & gas Company

Cape Town: Nature meets nurture in South Africa’s leading economic hub

EAST AFRICA’S LNG 18 Beating Asia and the Middle East to the punch

VENCO FOOD PROCESSORS 50 Optimising innovation to be South Africa’s leading fruit processor

AFRICA OUTLOOK ISSUE 41 FEATURING: AFRICAN DEVELOPMENT BANK | ATHENA PROPERTIES | MANUFACTURING INDABA EAST AFRICA


“I wanted to say a very big thank you for again publishing a fantastic Oracle in Africa profile in your June issue of Africa Outlook. As always, working with you has been a professional and pleasurable experience. I appreciate your immense efforts and input to ensure the quality of the profile which is a valuable asset for us in the region� Claire Alexander, Corporate Communications, Oracle Africa


W E L C O M E Putting Food on the Table

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EDITORIAL

Reading this month’s edition of Africa Outlook on an empty stomach or with ambitions of an international business venture may not be advisable, as our showcasing assortment comprising some of the continent’s leading food & drink exponents, and our new Business Travel section on the beautiful Cape Town dominate July’s instalment.

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

The latter represents the first insertion of our now monthly focus on the leading industrial hubs around the continent, and all the must-sees, must-dos and must-experiences from a new city in each publication. We kickstart the feature here with a trip around Africa’s third largest economic hub city, Cape Town, in providing a run-down on the best places to eat, sleep, shop and experience, as well as providing all the logistical knowhow on travelling around the area. Stay tuned in future months as we turn our attentions to Pretoria, Lusaka, Johannesburg, Dar es Salaam and Durban; in formulating the perfect guide for corporate travel in each location. BUSINESS TRAVEL GUIDE 00

KENYA PIPELINE COMPANY

00 Transforming into Africa’s premier oil & gas Company

Cape Town: Nature meets nurture in South Africa’s leading economic hub

EAST AFRICA’S LNG 00 Beating Asia and the Middle East to the punch

VENCO FOOD PROCESSORS 00 Optimising innovation to be South Africa’s leading fruit processor

AFRICA OUTLOOK ISSUE 41 FEATURING: AFRICAN DEVELOPMENT BANK | ATHENA PROPERTIES | MANUFACTURING INDABA EAST AFRICA

Our traditional stalwart of company showcases is still going strong alongside the new addition to the Outlook fraternity, and is this month saturated with a mouth-watering food & drink section comprising eight business profiles on some of the leading enterprises driving industry development on the continent. Leading the way is the revolutionary Greenway Farms; its Rugani Carrot and Carrot Juice products thriving as a result of the Company’s golden hour optimisation and its overall commitment to spreading the word of 21st century food.

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

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

Complementing South Africa’s leading carrot producer is the likes of Berfin, Butler Foods, Melissa’s The Food Shop, VENCO Fruit Processors and Winelands Pork to create our largest ever portion of sector spotlights.

Matthew Staff Editorial Director, Outlook Publishing

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

OUTLOOK PUBLISHING Managing Director: Ben Weaver ben.weaver@outlookpublishing.com Chairman: Mark Weaver

Elsewhere this month, we catch up with a few old friends including Athena Properties, STAG African and Kenya Pipeline Company to track their progress amid vastly differing industry fortunes, while our front-of-book section provides an update on East Africa’s progress on the LNG front as well as coming back full circle to the theme of travel by taking a look at the African Development Bank’s most recent Continental Tourism Monitor.

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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Enjoy the issue!

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In this issue of Africa Outlook...

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NEWS

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AFRICAN DEVELOPMENT BANK Scratching the Surface of African Tourism

All the latest top stories across the month from Africa

Optimising the potential of tourism to kick-start continental economic growth

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OIL & GAS East Africa’s LNG: The Global Race Intensifies

Beating Asia and the Middle East to the punch

S E C T O R

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F O C U S

FOOD & DRINK The Future of Grocery Retailing in Sub-Saharan Africa

Discussing the pace of change in the grocery industry

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CAPE TOWN

Nature meets nurture in South Africa’s leading economic hub


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

REGIS HOLDINGS LTD Trust, Reliability, Performance Exceeding client expectations with safety and quality

F O O D & D R I N K

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GREENWAY FARMS (PTY) LTD Fruitful Entrepreneurship The golden hour produces a golden generation for carrot farming

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VENCO FOOD PROCESSORS Reaping the Fruits of Hard Labour Optimising innovation to be South Africa’s leading fruit processor

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BUTLER FOODS Innovative Convenience Foods with a Premium Taste

Capitalising on the convenience trend through continuous product development

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WINELANDS PORK Top Quality from Farm to Plate South Africa’s first Pork 360 approved abattoir

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MANUFACTURING

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BJK INDUSTRIES Quality, Reliability, Nutrition

Continuously investing to stay one-step ahead

Looking forward to a 20th year of growth on an increasingly large scale

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DICKON HALL FOODS Passionate about Flavour Continuous product innovation drives positive market performance

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ATHENA PROPERTIES Breathing Life into East African Real Estate

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GEOSEARCH INTERNATIONAL Following a Roadmap to Success

Adopting a grand vision to develop landmark projects

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Guiding Africa through the green learning curve

MELISSA’S THE FOOD SHOP South Africa’s Trendsetters

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Aligning with its 2020 vision to shape the future of the business

STAG AFRICAN Accommodating an African Transformation

A brand anchored by timeless values of quality and integrity

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ESLON PLASTICS OF KENYA LTD East Africa’s Piping Pioneers

E V E N T

F O C U S

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MANUFACTURING EAST AFRICA

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WEST AFRICA REAL ESTATE INVESTOR FORUM

Manufacturing Indaba launches in East Africa

Unlocking opportunities in West Africa’s real estate sector

BERFIN Quality Foods from South Africa Tailor-made products bring African tastes to clients around the world

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KENYA PIPELINE COMPANY Realising a Vision

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Transforming into Africa’s premier oil & gas Company

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AFRICA OIL WEEK

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ELECTRICX

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SOLAR-TEC

Governments and corporate players shaping Africa’s LNG game A truly international gathering of power distributors and retailers Showcasing the latest solar technologies from local and international markets

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ECONOMY

The Impact of Brexit on South Africa According to EXX Africa’s special report, the South African economy is now more likely to fall back into recession, and extreme currency volatility indicates that a downgrade of its credit rating to non-investment grade in December is now almost inevitable. Bi-lateral security cooperation and aid programmes face less disruption The South African economy is the most exposed to the global economy and in particular its currency is the most volatile among its emerging market peers. South Africa is reliant on foreign capital to finance its wide current account deficit. Additional fears of euro-scepticism in other EU countries have also stoked fears that South Africa’s trade with the EU is under threat. South

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African exports to the EU reached more than US$14.2 billion in 2015. However, the impact on the South African economy would be shortlived and relatively manageable. In a worst case scenario, where the UK economy were to shrink by five percent and UK imports were to drop by 10 percent, South Africa’s economic growth would fall by only 0.1 percent; according to research by North West University.

South Africa’s Finance Minister, Pravin Gordhan has said that the country’s Treasury and the central bank would take any additional measures to cope with the implications of the Brexit vote, while South Africa’s President Jacob Zuma has assured markets that South African banks and financial institutions could withstand the shock, as demonstrated during the 2008-09 global financial crisis. While a 0.1 percent loss in GDP growth is relatively small, the country’s economic growth rate has already slumped, recording a 1.2 percent contraction in the first quarter of 2016, as mining and farming output shrank. The UK exit vote thus indicates that a recession will be increasingly likely for the South African economy in 2016. The impact on the currency would be more significant and have longerterm implications on the country’s debt rating. The rand has already lost 21 percent against the dollar so far in 2016. On 24 June, the South African rand was the worst performing currency after the UK pound, before paring some of its previous losses. This is due to South Africa’s close financial ties to the UK and the fact that many large South African companies have a dual listing on the London and Johannesburg stock exchanges. According to research by Unicredit, UK banks’ claims on South African companies account for 178 percent of South Africa’s foreign currency. South Africa’s already volatile currency and a probable recession further would increase the prospect of a downgrade of the country’s credit rating to noninvestment grade by December. The long-term implications would lead to weak growth, higher inflation and interest rates, as well as extensive capital flight.

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E C O N O M Y

produced in Africa is exported, mainly to the European Union, China and the United States. In comparison, more than 65 percent of Europe’s trade occurs on its own continent, and in North America, the figure is around

half,” said Heymans. According to the latest IMF April 2016 World Economic Outlook report, developing economies and emerging markets will continue to account for a large portion of the world’s economic growth in 2016, which is expected at a rate of 3.2 percent. Heymans added: “Sub-Saharan Africa’s dwindling growth is influenced by factors such as slowed, moderate growth in advanced markets such as China, as well as the downward revision of growth for the region’s oil-exporting countries. “To ensure that Africa is equipped to maintain and exceed its growth trajectory of four percent in 2017, business leaders, the government and the community need to work together towards making Africa an easier place to do business and to stimulate trade between the various African countries.”

models can play. However, the report cautioned that advanced renewable technologies and storage solutions could also threaten the existing business models of power

utilities across the African continent in the future. On current trends, two-thirds of the world’s population will remain without electricity by 2030, which is the target year to achieve the newly agreed post2015 UN Sustainable Development Goal of universal access to energy. John Gibbs, Africa Deals Power & Utility Lead, PwC, said: “For the millions of people who don’t currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities. 634 million people without electricity are in Africa. Faster progress is needed, and we believe it can be achieved if national energy policies adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by standalone renewable technology and mini-grids.”

Intra-African Trade to Play Larger Role in Local GDP Contributions As growth in developed markets such as Europe, China and North Africa continue to stagnate, greater regional integration in Africa, among all role players, is needed to capitalise on the continent’s growth potential. This is according to Hennie Heymans, CEO of DHL Express sub-Saharan Africa, who says that when comparing intraregional trade statistics, Africa’s rates are among the lowest in the world, with fewer than 20 percent of what is produced in the region, remaining on the continent. “This, in essence, means that more than 80 percent of what is

Hennie Heymans, CEO at DHL Express, sub-Saharan Africa

ENERGY & UTILITIES

Approaches to OffGrid Electricity need to be Amended to Improve Access A new report from PwC, titled ‘Electricity Beyond the Grid’, says a new approach is needed when it comes to rural off-grid technologies; in combination with innovative business models and mobile payment systems. The report says that new approaches to beyond the grid electrification need to be adapted to achieve the UN 2030 target of ‘electricity for all’ and this includes policymakers, who need to get out of a top-down mindset and support the role that a range of renewable energy off-grid technologies and new business

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

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Turner & Townsend Opens New Hub in Kenya Turner & Townsend is to open a new office in Nairobi in reaction to local economic growth that has exceeded expectations. Currently involved in more than 40 projects across Africa, Daimon Keith was recently appointed Country Manager with his team expected to C O N S T R U C T I O N quadruple in next two years in line with the forecasted increase in demand. Daimon Keith, Country Manager for Turner & Townsend in Kenya, said: “Nairobi is our second East African office, joining Kampala, Uganda, setup in 2012. In Kenya, and other East African countries, the significant GDP Bakhresa Group has appointed growth rates mean that we will see Verde Hotels to develop and manage multi-location property programmes the total overhaul and upgrading of the old Mtoni Marine Hotel in and ambitious infrastructure plans, seeking inward investment that will require new skills. There are also substantial natural resource reserves in OIL & GAS East Africa. “The opportunities for us are significant across the sectors we support. Over and above traditional quantity surveying services, we offer project management, project controls and dispute resolution services.” Africa Finance Corporation (AFC) is acting as lead arranger for an up-to US$425 million senior mezzanine facility for New Age (African Global Energy) Limited, a privately held oil & gas exploration, development and production Company with assets primarily across Africa. The investment will allow New Age to refinance an existing loan facility and develop projects in Nigeria, the DRC, and to expand operations in several other African countries. The lenders include other EIG Global Energy Partners and a Middle EastDaimon Keith, Country Manager for Turner & based Sovereign Wealth Fund. Townsend, Kenya Andrew Alli, President and CEO of

Bakhresa Group and Verde Hotels to Build Zanzibar’s Greenest Hotel

AFC Fuels Expansion at New Age with New Investment

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Zanzibar, located two kilometres from Stone Town. The brand new five-star property will be known as Hotel Verde, Zanzibar’s greenest hotel. “We are serious about being the leaders of the Green Economy sector and therefore we approached the developers of Africa’s Greenest Hotel, Verde Hotels to ensure that Hotel Verde Zanzibar will be the Greenest hotel in East Africa,” stated Mr. Said Salim Awadh Bakhresa, Chairman of the Bakhresa Group. Hotel Verde Zanzibar is set to take sustainable development to new heights in East Africa and become a flagship for tourism in Zanzibar and Tanzania. Verde Hotels intends to integrate sustainability into every facet of their involvement in the construction, as well as throughout the hotel’s daily operation. AFC said: “While the recent volatility in the oil industry has been challenging, AFC believes the current market provides opportunities for long-term investors across the value chain. “The significance of this investment is in the linkages between the Company’s gas production and the power sector in Nigeria in particular, and the ability to replicate this energy infrastructure network across Africa.”

Andrew Alli, President and CEO of AFC

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B U S I N E S S

FINANCE

GE Invests R500 Million to Innovate in Africa, for Africa

Private Equity Fundraising for Southern Africa Reaches Record High According to the SAVCA 2016 Private Equity Industry Survey, funds raised by private equity managers investing in South Africa and other African markets reached R29 billion in 2015, the highest on record for the industry and up a significant 145 percent from R11.8 billion in 2014. CEO of SAVCA, Erika van der Merwe, said that the notable pick-up in fundraising was the outstanding theme to emerge from this year’s Survey,

R E TA I L

Jumia Becomes the One-Stop Online Destination in Africa After four years of successfully establishing and growing its online services, Jumia has become the number one ecommerce platform in Africa. “We founded our Company with a very strong belief that the internet

Jeremy Hodara, Founder and Co-CEO of Jumia

Erika van der Merwe, CEO of SAVCA

and is an indication of the sustained interest by local and international institutional investors into private equity investments in Southern Africa. can improve people’s lives in Africa. Uniting all services allows us to better help our customers fulfil their daily aspirations. This is all possible because people connect to our platform to access those services and products in an environment that we have designed for them, addressing their needs and expectations on quality, choice, price, trust and convenience,” said Sacha Poignonnec and Jeremy Hodara, the Founders and Co-CEOs of Jumia.

GE has officially opened its R500 million 2,700 square metre facility, the GE Africa Innovation Centre, in Johannesburg, South Africa. A first for GE in Africa, the centre is another big investment for the Company that reaffirms its long-term market presence and commitment to finding solutions to Africa’s challenges. The centre is the 10th GE Innovation Centre globally and is the first GREEN and LEED-certified GE building in sub-Saharan Africa. As part of GE’s continued commitment to support SMEs, the building was 90 percent built, designed and executed by local businesses. It will be the home of GE Healthcare’s Africa headquarters. HEALTHCARE

Improved Healthcare Delivery Models Transform the Industry According to Frost & Sullivan, increased investment in both the pharmaceutical and healthcare IT sectors will see local business flourish in South Africa, Kenya, Ethiopia and other emerging economies throughout 2016. The report finds that the global shift towards value-based healthcare is improving the provision of health in Africa. A host of factors are anticipated to have a positive effect on the African healthcare industry, including the rising middle-class, introduction of local manufacturers and support from national governments. Handheld medical devices, mobile health (mHealth), micro health insurance, and in-country manufacture of drugs will also gain momentum, resulting in vast improvements to client care delivery models.

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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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Scratching the Surface of

AFRICAN

Tourism

The African Development Bank’s latest Tourism Monitor alludes to a notable rise in visitors exploring the continent’s riches; an exciting statistic given the amount of potential still yet to be reached Writer: Matthew Staff

Tourism in Africa is on the rise, but has not yet reached its full potential,” is the rallying cry from the African Development Bank’s Africa Tourism Monitor 2015 with a view to 2016 and beyond, as it alludes to a wealth of opportunities, continent-wide, to capitalise on rapidly growing international interest. The third annual instalment of the study – in conjunction with New York University’s Africa House and the Africa Travel Association – was aptly titled

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17.4

million Back in 1990, Africa welcomed just 17.4 million visitors from abroad

‘Unlocking Africa’s Tourism Potential’ upon its release at the start of the year, and through comprehensive insight into facts, figures, contributions, accounts, industry representatives and tour operators, the general consensus suggests there is so much more to come. And this isn’t to say that the current figures make for grim reading either. “One of the key findings of the report, as indicated in its introduction, is that the tourism sector in Africa is growing,” reported the African Development Bank upon the


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65.3

million In 2014, a total of 65.3 million international tourists visited the continent

document’s release. “In 2014, a total of 65.3 million international tourists visited the continent, around 200,000 more than in 2013. Back in 1990, Africa welcomed just 17.4 million visitors from abroad. The sector has therefore quadrupled in size in less than 15 years. “According to the World Tourism Organisation (UNWTO), Africa’s strong performance in 2014 (up four percent) makes it one of the world’s fastestgrowing tourist destinations, second only to Southeast Asia.” The multicultural, multifaceted nature of what Africa has to offer

seems to be the reason behind the ever-rising interest among international tourists; diverse attractions from the pyramids in Egypt, to Table Mountain in South Africa, the Sahara, Victoria Falls, rainforests, safaris and plains combining to present a range unparalleled anywhere else on earth. The only drawback remains the way in which the countries in question continue to market such lures, and how they can continue to build an infrastructure and industry capable of housing the scope of people who would hope to one day grace their shores.

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AFRICA’S

TOP 3 TOURIST DESTINATIONS IN 2014

“Two North African countries top the list of most-visited countries in Africa. Egypt experienced the strongest growth in the sector in 2014, with 454,000 more international arrivals than in 2013, an increase of five percent in just one year. “Second on the list is Morocco, which once again recorded more than 10 million incoming international tourists in 2014, an increase of 236,000 when compared with the previous year. “In third place is Côte d’Ivoire in West Africa. The country is experiencing a strong economic recovery. Although it recorded ‘only’ 91,000 more international arrivals in 2014 than in 2013, this figure represents a 24 percent rise in just 12 months. This double-digit growth provides yet further evidence of the country’s vast tourism potential.” - African Development Bank’s Africa Tourism Monitor, 2015

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Asilah is a fortified town on the northwest tip of the Atlantic coast of Morocco, about 31 km south of Tangier

Simplistic initiatives

Ultimately, the long-term benefits of meeting these demands speak for themselves. Already, the influx of tourists to the continent has had a dramatic effect on each country’s economies and in 2014 alone, Africa recorded US$43.6 billion in revenue from the sector. In total, international tourism now accounts for 8.1 percent of Africa’s total GDP, and the benefits extend far beyond the initial fiscal statistics as well. “More tourists also mean more jobs,” the African Development Bank

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emphasised. “Across the continent, there are around 20 million people working directly or indirectly for the tourism industry. This means that the sector accounts for 7.1 percent of all jobs in Africa. “Jobs supported by the sector include guides, hotel staff, interpreters, aviation staff and small businesses.” Beyond that, individual sectors are also thriving as a consequence of the rise, with industries such as hospitality experiencing particularly rapid growth in both developed and emerging nations; once again driving higher


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The Pyramid of Khufu at Giza is the largest Egyptian pyramid. It is the only one of the Seven Wonders of the Ancient World still in existence

Basilica of Our Lady of Peace is a Catholic minor basilica dedicated to Our Lady of Peace in Yamoussoukro, the administrative capital of Côte d’Ivoire (Ivory Coast).

levels of employment and domestic business relationships as a result. The Bank continued: “The hospitality sector is expanding into new countries such as Mauritania, which has, until now, remained largely on the fringes. According to the report, it is subSaharan Africa, rather than North Africa, that is benefiting most from the expansion of hotel chains and the corresponding increase in the number of available rooms. “Nigeria, the continent’s most populous country, comes top of the rankings in this respect, followed by

US$43.6 billion In 2014 alone, Africa recorded US$43.6 billion in revenue from the tourism sector

Egypt and Morocco. However, the biggest hotel development project in sub-Saharan Africa can be found in Equatorial Guinea, in the Grand Hotel Oyala Kempinski, which, when complete, will feature 451 rooms.” Again, the onus now is to not only ride the wave of the trend, but to proactively leverage it to its full extent, and numerous initiatives are beginning to manifest around the continent to this end; both to harness the increased number of tourists already visiting the continent, and to attract even more in the future.

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The African Development Bank noted: “The report is particularly complimentary about recent simplifications to the visa system and regional cooperation mechanisms, including the introduction of the e-visa and the single visa scheme, enabling tourists to visit all Southern African Development Community (SADC) member states using just one visa. “Other examples include the ‘KAZA’ (Kavango Zambezi) common tourist visa developed by Zambia and Zimbabwe,

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New visa schemes enable tourists to visit African countries more easily

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and the single visa covering three countries – Kenya, Uganda and Rwanda – launched by the East African Community (EAC) in February, 2014.”

Untapped potential

These simple but effective schemes are already expected to boost tourism revenue and job creation by as much as 25 percent in the coming years, replicating a successful model adopted across Europe, North America, South America and Australasia over the decades. It is just the beginning though, with more and more calls coming for an improvement in the infrastructure awaiting tourists once


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US$1.3 billion

NEPAD could create155,000 jobs and US$1.3 billion extra GDP

on the continent, as opposed to solely improving the logistical proposition for people choosing Africa as a destination in the first place. “Transport infrastructure and services is one of the key constraints limiting growth of the tourism sector,” the Bank offered as an example. “As the report indicates, ‘journeys in the African continent are not always seamless’. In fact, it is more difficult – and more expensive – to travel across Africa than to get there from Europe, America or the Middle East. “The report also points to other barriers to tourism sector development in Africa, including a lack of dedicated incentive policies, the need for closer

regional cooperation, weaknesses in infrastructure and security problems.” As such, The New Partnership for Africa’s Development (NEPAD) launched its Tourism Action Plan back in 2004 to help develop a more sustainable approach to tourism, but the effectiveness and extent of the initiative is still yet to be realised despite the potential 155,000 jobs it would create, and the US$1.3 billion extra GDP it would generate. “Security issues have posed a particular problem for the sector since 2013, especially in North Africa, Mali and coastal regions of Kenya,” the Bank added in regards to some of the key drawbacks. “The report indicates that, of the 80 countries for which travel warnings were issued by the US State Department, 30 were located in Africa. “Moreover, although the 2013-2014 Ebola virus outbreak only affected West Africa, it created a climate of fear that spread to many other countries on the continent; even those far from the source of the outbreak.” Negative impacts on some of the continent’s natural lures, including the increased number of animals on the brink of extinction and damaging connotations associated with poaching and illegal trading of species are further areas which Africa needs to address in order to turn around the continent’s global perception entirely; and these epitomise a general status which highlights that the recent positive growth in tourist numbers is barely scratching the surface of what can be achieved in the future. The African Development Bank concluded: “Although international tourism is on the rise in Africa, the continent currently accounts for just 5.8 percent of the world’s incoming tourists and 3.5 percent of global revenue in the sector. “As such, the sector still has vast untapped potential; potential that, if exploited, could kick-start rapid economic growth.”

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East Africa’s LNG: THE GLOBAL RACE INTENSIFIES Facing intense competition from exporters in Asia and the Middle East, Tanzania and Mozambique must act quickly to secure long-term supply contracts Writer: John Roper, Head of Middle East, Uniper Global Commodities SE he vast and welldocumented gas reserves in East Africa continue to whet the appetite of investors along the New Silk Road – stretching from Beijing to Lagos – especially as the global population and subsequent energy demand soars. China, Japan, India and the Middle East are particularly hungry for liquefied natural gas (LNG) and so the intensifying global competition among LNG exporters means East Africa’s window of opportunity is shrinking, or facing stiff competition at the very least. Tanzania and Mozambique – home to East Africa’s largest natural gas reserves and with a combined capacity of nearly 250 trillion cubic feet (tcf) – must quicken their pace as the race for supply contracts accelerates. East Africa benefits from convenient geography, with the coastline acting as a springboard to market to rising demand in the Middle East, India, China, Southeast Asia and Northern Europe.

Tanzania and Mozambique boast East Africa’s highest cubic feet levels of natural gas reserves

Global LNG production hit 250 million metric tonnes (m/t) last year, rising by four million when compared to 2014, according to a Wood Mackenzie report. The consultancy cautions that a further 125 million m/t of LNG under development means that the majority of market growth will come post-2016. East Africa’s plans to ramp up its LNG exports in the early 2020s will face strong competition from both emerging and established exporters, with everyone jostling to lock-in Asian clients where possible. Qatar remains the world’s biggest LNG exporter, while Iran – home to the world’s second largest gas reserves – has started increasing its marketing efforts in Europe, India and Pakistan after the Western-imposed sanctions were lifted on January 17. Russia, a long-term and reliable European supplier, is also focusing on Asian clients, while Australia is in the running to displace Qatar as the world’s largest LNG exporter by 2018. Westwards, the first LNG exports from Sabine

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$8-$11 Pass in the US, marked a milestone in February in the country’s journey from an energy importer to an exporter. In addition, China and some Middle East energy producers – most notably Kuwait – are looking to possibly develop their shale gas reserves, which, if successful, could narrow the LNG import market over the medium to long-term.

Eager investors

Amid this abundant supply, natural gas prices are unlikely to recover in 2016, according to 69 percent of

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respondents to a GI Industry Survey in January. Despite this hefty competition, investors are still eager to develop infrastructure that leverages East Africa’s coveted gas assets. The Dubaibased Dodsal Group has discovered natural gas reserves estimated at 2.7 tcf in the Ruvu Basin near Dar es Salaam, that they estimate to be the country’s largest onshore gas discovery with a value of $8-$11 billion. The Company has earmarked $300 million to invest in Tanzania over the coming two years.

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Estimated worth of natural gas reserves discovered by the Dubai-based Dodsal Group in the Ruvu Basin near Dar es Salaam


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Securing future business

State-run Tanzania Petroleum Development Corporation (TPDC) is working alongside Shell, Statoil, Exxon Mobil and Ophir Energy after securing a land deal for an LNG plant on Tanzania’s coastline in January. The plant is well-positioned to utilise the country’s offshore gas reserves when it starts up in the early 2020s. The national significance of Tanzania’s LNG export market is vast; the country’s central bank expects LNG to be the main driver of the country’s transformation into a middle-income nation by 2025. This is a valid target considering that the International Monetary Fund (IMF) expects Tanzania to continue reporting the seven percent growth it achieved in 2015. Tanzania will also partly help fill the economic vacuum left by the weak economic performances in historical powerhouses Nigeria and South Africa. Flows of cross-border trade, investments, human capital and politics are entrenched throughout Africa’s economies and Tanzania’s bullish streak could act as a support for the continent’s sliding performance. Low commodity prices mean the IMF has put Africa’s 2016 growth rate at three percent, down from the initial 4.3 percent outlined last October. Meanwhile, the incentive for Mozambique to nurture political stability and lure more investors to Maputo is clear; the country could earn up to $5.2 billion a year by 2026 from LNG exports, creating more than 70,000 jobs in its gas sector.

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Length of the gas pipeline running from Rovuma Basin in northern Mozambique to South Africa’s Gauteng province

The country’s national oil company ENH, South Africa’s SacOil Holdings, China Petroleum Pipeline Bureau and China Petroleum & Technology Development Corp are pushing ahead with a joint-venture to build a $6 billion natural gas pipeline by 2020. The 2,600 kilometre gas pipeline will run from Rovuma Basin in northern Mozambique to South Africa’s Gauteng province, where there will likely be offtakes for others in the South African Development Community; including Botswana, Namibia, Zimbabwe, Angola and Malawi to name a few. Mozambique supplies two-thirds of South Africa’s current consumption and is also eyeing supply deals with India. The vast potential of East Africa’s LNG reserves faces little debate. But, Tanzania and Mozambique must quickly court investors to leverage their assets and secure clients in Africa and along the New Silk Road before other LNG exporters cross the finish line.

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The Future of GROCERY RETAILING in Sub-Saharan Africa Coinciding with the 2016 Consumer Foods Forum, IGD’s new report reveals the market ups and downs in sub-Saharan Africa’s grocery industry Writer: Jon Wright, EMEA Region Manager, IGD

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t’s all too easy to focus on the numerous challenges of operating in grocery in subSaharan Africa; yet there are, in fact, some extremely positive, longer-term prospects for this region’s fast-growing grocery market. Economies are growing at an admirable rate and subsequently experiencing fast-paced urbanisation, resulting in a positive long-term outlook for consumption in the region. IGD forecasts that sub-Saharan Africa’s grocery industry is set to enjoy a compound annual growth rate of 10 percent in value sales to 2021. This pace of expansion will see the region’s shoppers buy US$740 billion worth of products by the end of that period; making it worth more than the combined size of Brazil’s and Russia’s markets.

Short-term bumps

With many sub-Saharan economies reliant on commodity exports, fluctuations in local economies can be sudden and dramatic. This can manifest itself both positively and negatively. In good times, export growth can lead to an associated fast-paced rise in sales, as the effects can ultimately filter down to shoppers. Unfortunately, the negative effects of relying on commodity exports have recently been put into sharp focus. Forecasts have been cut as demand and prices have dropped. Confidence and spending have fallen, as the expected five percent GDP growth at the start of 2015 ended between three and four percent, with the same pattern emerging in 2016. The past year has seen import and currency restrictions put in place in Nigeria, affecting small suppliers and distributors’ ability to pay for products, while currencies such as the Angolan kwanza, Malawian kwacha and South African rand depreciated by more than

6.6%

Share of global grocery retail sales accounted for by countries in sub-Saharan Africa in 2021

10%

CAGR for sales in grocery retail markets of countries in sub-Saharan Africa between 2016 and 2021

US$640

Average grocery retail spend per capita in the region in 2021, underlining long-term opportunities

US$740bn Estimated value of the region’s total grocery retail market by 2021

35 percent against the US dollar in the space of a year. This depreciation has had a big impact on costs for companies; an impact that has sometimes had to be passed onto shoppers. While this experience is not unique in the region’s grocery markets, it nevertheless remains a challenge. Given that such depreciations and commodity price falls have occurred relatively recently, retailers, manufacturers and their

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suppliers have the possibility to learn from past experiences, by seeking help and advice from people who have worked through similar conditions in the region previously.

Thinking long-term

The need to think long-term is underlined by the continued discussion around how big Africa’s middle-class is; how to define someone as being in that group and finally, what that can mean for purchasing power and opportunity. Away from these questions though, the long-term trajectory of GDP growth is positive

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‘Grocery companies should not introduce numerous premium products for the sake of it; instead, they should focus on providing basic goods and services really well’

and so that group is growing, however it is defined. Grocery companies should not introduce numerous premium products for the sake of it; instead, they should focus on providing basic goods and services really well. There are pockets of opportunity, especially around health, but these will remain niche, high-end products, rather than driving mass demand.

Kenya leads the evolution

Only about 25-30 percent of Kenya’s grocery market is estimated to be in supermarkets and hypermarkets, with


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the majority of sales coming through informal kiosks, markets and familyrun stores. However, in the mediumterm, divided between rising levels of middle-class spending and the need for everyone to shop for food, the grocery retail market will benefit; especially as it modernises and more spending switches into the ‘formal’ trade. The country’s leading grocery chains have been setting out ambitious expansion plans to take advantage of growth, entering new towns and cities to build scale. This is opening up availability to new

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shoppers and driving the sector’s modernisation. Despite the growth of modern stores, traditional channels dominate with their proximity, availability of unpackaged goods, small pack sizes and breadth of product range across multiple sites helping them to remain competitive. This is leading to a general improvement in some traditional stores, with many employing similar tactics to those seen at more modern chains. Some supermarket operators are also looking to partner with informal retailers to drive volume growth and improve overall standards through franchising models. Kenya’s two largest grocery retailers, Nakumatt and Tuskys, are driving forces, growing in both skill and scale. Nakumatt, market leader in the country, is expanding quickly both in Kenya and into neighbouring countries like Uganda and Tanzania, helping to expand its buying power and pass on some of those savings to shoppers through lower prices and promotions. The retailer has been improving its stores to drive basket size, adding health and beauty areas and signing agreements with international apparel brands to attract new shoppers. The launch and expansion of its private label ranges, under the Nakumatt Blue Label name, has provided the Company with a further opportunity to differentiate and provide value across its grocery offering.

DOING THE BASICS WELL NON-GROCERY RANGES

SUSTAINED VALUE

WIDEST RANGE

ECOMMERCE

STORE-IN-STORE DEPARTMENTS

Digital disruptors

The opportunity provided by the digitisation of certain parts of the shopper journey in sub-Saharan Africa is clear, but as with other developments, it is also causing issues for retailers and suppliers alike. While full-blown grocery ecommerce is a long-term prospect, the chance to engage with, and market to, shoppers are benefiting manufacturers and retailers in 2016. This will only grow in the medium-term.

PRIVATE LABEL EXPERTISE

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SPOTLIGHT ON CONNECTED SHOPPERS The number of digital literate shoppers is growing as access to content becomes easier and people demand it more. However, while numbers are growing quickly, it does not mean that it is uniform and companies need to be aware of how to best to target their shoppers, whilst assuming that one campaign or method that proves successful in one country will work across the region. This is especially the case given the low incidence of online sales, with most purchases closed in-store, which makes digital a key part of engagement, but not necessarily having to conclude a sale.

CONTINENTAL FIGURES

Building brand awareness around a new launch will increasingly be driven through mobile technology, while moving coupons or offers to a digital medium will help increase loyalty. Finally, given its relative cost, standing out and cutting through the noise will become harder for grocery companies. With online selling and engagement set to skip PCs in many countries, thinking and planning has to move straight to mobile. However, while smartphone best practice can be shared from other countries, penetration rates are low and are set to remain so into the mediumterm, requiring international brands to generate local, more low-tech solutions. ‘Simple’ text messages can help drive awareness, as getting shoppers to reply is relatively easy and can help build engagement. They can also be used to attract new shoppers, if the enticement is big enough to get someone to try a new product. Coupons or money-off offers can help here too. One trend that could spur further levels of digital engagement is the adoption of digital payment solutions. While not a success everywhere, digital payment has flourished in underserved countries.

Active internet users: 349 million Active social media users: 129 million Mobile Connections: 986 million Active mobile social users: 102 million

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Somalia has become a success story for mobile money accounts, with the World Bank estimating that around 40 percent of adults there use them. The market’s lack of retail banking and the relative safety of the service, compared to cash, have made mobile banking appealing. It has therefore acted as a driver for mobile phone uptake, which could enable fuller digital engagement.

Local solutions for local questions

The evolution of grocery retailing in sub-Saharan Africa will not follow


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the same pace or model as that seen in other regions; nor will it be uniform across the region. It must be remembered that Africa is made up of 54 different countries, which all vary massively in size, identity and history. For companies that see it as one region, they are likely to ignore the differences and the potential to market to each country’s shoppers in the most effective way possible. While more developed markets, such as South Africa, could follow similar paths as those seen in Europe or North America, the evolution of grocery markets in other countries will be more affected by macro-trends such as mass urbanisation and fast-paced digitisation.

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‘Country-specific solutions for countryspecific or cityspecific challenges will be crucial’

Country-specific solutions for country-specific or city-specific challenges will be crucial. These will likely see entrepreneurs – not always locals – drive change in the grocery retailing industry that is local to them. This could lead to concentration at a local level, as small chains build clusters of stores to minimise costs, or traditional channels build expertise and focus on specific products or ranges to maximise returns. It could also create fragmentation at a national level, which will be potentially harder for suppliers to interact with. The pace of urbanisation and the sources of population movement, both within countries and across the region more widely, will require planning from central government. Where this does not occur, cities’ expansion will be irregular, which will make it difficult for retailers to plan where to invest and where to build stores and supply chain infrastructure. Local knowledge and being adaptable will be increasingly critical to success as populations flex and change, creating huge contrasts in affluence levels and enormously varying demographics within very small distances. Short-term bumps aside, subSaharan Africa’s increasingly settled operating environment and openness to foreign investment, plus its positive long-term outlook, mean this is a region that merits closer investigation. An anticipated shopper spend of nearly US$750 billion by 2021 is surely too great an opportunity for manufacturers and retailers operating in grocery retailing to ignore. Jon Wright is Europe, Middle East & Africa Region Manager at IGD and is responsible for conducting and shaping the research programme across these regions. Jon has been analysing global retailers and emerging markets for more than a decade.

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South Africa’s legislative capital and the continent’s third largest economic hub has perfected the blend of business and pleasure as inexplicable natural beauty plays host to globally-significant industry Writer: Matthew Staff

CapeTown hen it comes to the leading business hubs of Africa, there are a few immediate names that spring to the fore, and – shining like a beacon above the continent’s traditional gateway – Cape Town perhaps stands head and shoulders above them all. The sights of Table Mountain down to the stunning coastline of Clifton Beach are renowned on a global scale, and far from the norm of neighbouring cities and urban hubs around Africa, Cape Town’s reputation as a desirable tourist destination, migration opportunity or business travel centre is

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firmly set in stone already. Very little marketing or promotional work needs to be done to drill home the appeal of South Africa’s second most populous urban area and provincial capital. And Western Cape’s finest asset somewhat inevitably carries a similar cachet when it comes to the business world and its appeal to the executive fraternity. As the seat of the National Parliament and the legislative capital of the country, the city’s ability to marry business with pleasure is undoubted; only with the added bonus of being wedded on some of the most stunning backdrops in the world. By proxy, its hugely diverse and

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multicultural make-up ensures its status as a key hub for business travel from all continents, and despite the wider country no longer being the sole point of entry for industry in Africa, South Africa’s tradition and history as the continental front door has already done the hard work in making Cape Town’s infrastructure one of the most varied, developed and lucrative for miles around.


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Transport links Facts and figures

Given the city’s positioning, status and urban responsibilities – as well as the widespread nature of Cape Town’s suburbs and both high and low-lying areas – it comes as no surprise that the transport system is extensive and hugely refined. Initially geared up as a port city, the longstanding tradition as such has culminated in The Port of Cape Town hosting one of the busiest shipping corridors in the world, while also setting the scene for the scope of consumer travel avenues as well. Cape Town International Airport, the city’s rail network, road infrastructure and general public transport have all been labelled as traditionally one of the best on the continent, and received a further boost in the early 2000s in preparation for the 2010 FIFA World Cup. As the first country on the continent to host such an esteemed global sporting occasion, all eyes were on how an African city could cope with the sudden influx and demand; a challenge that was risen to via investments into a

Country: Province: Languages:

South Africa Western Cape English, Afrikaans, Xhosa Area: 2,445 square kilometres Population (2011): 3.7 million GDP: $58.9 billion Currency: Rand Time zone: UTC+2 Dialling code: +27 Internet TLD: .za Climate: Warm-summer Mediterranean Highest recorded temperature: 42.4°C

new airport terminal, improved rail and Metrorail links, a significantly enhanced public transport set-up and upgrades to the city’s roads. As a result, Cape Town – much like Johannesburg who also benefited from the national focus on the World Cup – is up there with anything the west can offer in terms of moving from place to place and, especially given the natural challenges and logistics of the city, this blend of nature and nurture will make any business trip far more simple than you would perhaps expect.

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The business end

The World Cup in 2010 not only had a positive influence on the city’s transport network, local economy and business outlets, but also provided Cape Town with an opportunity – or necessity, at the time – to improve its levels of accommodation; in preparation for welcoming the largest influx of people at one time ever seen in the area. Not only was capacity an issue, but the pressure was also on to meet stringent quality and sustainability standards in improving the state of hotels, hostels, apartments and resorts around the city; a benefit that

‘...it is once again the mix of leisure and industry that keeps driving Cape Town forward...’

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is still seen in the aftermath of the tournament for the business travellers coming into the country, and that is still being improved upon to this day as previous infrastructure for the World Cup continues to be renovated into offices and hotels. This level of innovation and business acumen is indicative of a city that has long been the economic hub of the Western Cape, is South Africa’s main economic centre, and is the third main economic hub city in the whole continent. While tourism inevitably comprises a sizeable portion of this ongoing GDP growth, it is once again the mix of leisure and industry that keeps driving Cape Town forward, and key sectors including manufacturing, agriculture, financial services, supply chain, electronics and textiles have all flourished over the years as a consequence of its strong trade routes and its FDI (foreign direct investment) attractiveness. Additional booms across real estate and construction markets – again largely thanks to the World Cup in

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2010 – further cements Cape Town’s standing as a key area for business growth, and subsequently, business travellers entering the city. Multinational giants including Johnson & Johnson, Nampak, GlaxoSmithKline and Adidas all house manufacturing bases in the city to emphasise the level of industry being enjoyed in the city to this day, and the extent to which Cape Town has to make itself suitable for the business domain as a consequence.


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Outlook recommends “You really can’t overstate the case for visiting Cape Town.” - Pippa de Buryn, TheTelegraph

TRANSPORT LINKS

MUSEUMS District Six Museum South African Jewish Museum

Airport Shuttle Cape Town

FOOD & DRINK Mzansi

Iziko South African Museum

Old Biscuit Mill Constantia Valley Vineyard Steenberg Vineyards

SPORT & LEISURE

Airport Hopper Award-winning affordability is provided by this personable shuttle service, with the corporate domain specifically targeted via its tailored offering.

Royal Cape Golf Club At 130-years-old, the oldest golf club in Africa attracts all skill levels to play a round against a backdrop of stunning proportions.

Animal Ocean Seal Snorkelling – Hout Bay

RETAIL Greenmarket Square Canal Walk Shopping Centre

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Striving for 100 percent customer satisfaction with each journey, Airport Shuttle Cape Town’s reputation and relationship with the leading corporate and travel agencies in the city has made it a safe, reliable, trustworthy and innovative service for nearly 15 years. Operating seven days a week, its motto, ‘Everyday we’re SHUTTLING’ epitomises the customer-friendly offering ASCT has built its success upon.

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Private tours & transfers “Passionate, proud & patriotic”

AIRPORT HOPPER Cape Town’s Premier Private Shuttle Service

Why choose us?

Airport Hopper offers cost-effective, private chauffeur-driven tours and transfers to suit your unique needs and interests. We’ll get you to your destination comfortably and on time!

CD0703_RC_AfricaOutlook_Ad_July_2016_FINAL.indd 2

Call Vanessa +27 76 646 6797 www.airporthopper.co.za

2016/07/27 12:11 PM

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Kirstenbosch National Botanical Garden

Table Mountain

Table Mountain is arguably Africa’s most renowned natural landmark and is a must-visit for tourist and corporate visitors alike in order to achieve the full Cape Town experience. As a natural backdrop to the city in general, seeing the spectacle is guaranteed, but with Devil’s Peak and Lion’s Head on either side, and the Cape of Good Hope offering the main chance to walk through the National park, there are no excuses not to turn scenery into an adventure for the day.

For something a little more cultural or structured, Kirstenbosch Botanical Gardens represents one of the largest and most beautiful of its type the world over. More than 50,000 square metres of indigenous plant species and guided walks make it one of the most authentic experiences in Cape Town, while giving a wider sense of South African beauty for those only on short-stay visits.

Robben Island

“Used as a prison from the early days of the VOC right up until 1996, this Unesco World Heritage site is preserved as a memorial to those such as Nelson Mandela who spent many years incarcerated here,” notes Lonely Planet regarding Robben Island; a site which can only be visited via a four-hour ferry tour, but that rewards you with a mixture of scenery, architecture and history to encapsulate the historical significance of some of South Africa’s most important events.

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Clifton Beach

For those who prefer to keep themselves at sea level, Clifton Beaches offer a far more relaxed experience for executives looking to catch a bit of sun in between meetings or for those simply looking to lap up the waves at the end of a long day. Regular bus services to each of the four hotspots make the areas every bit as accessible as they are idyllic.


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THE MAIN EVENTS

Taste of Cape Town

“Whetting the appetites of Cape Town’s most dedicated and sophisticated foodies, the calendar highlight brings together some of the city’s most acclaimed restaurants, artisan producers, award-winning wineries and carefully selected exhibitors to give residents a chance to sample a smorgasbord of distinctly local cuisine.” - Cape Town Magazine

Winelands’ Harvest Festivals

“During summer in Cape Town, everything comes alive: the mountain glows a brilliant green, the azure skies sing with cheerful birds, the seas dance with surfers and swimmers and even the nightclubs blossom with a multitude of foreign booze-seekers. So it’s no wonder that this happens to be the time that the Cape Winelands’ vineyards are at their ripest and readiest too, spilling over with plump grapes waiting to be plucked and blended.” - Cape Town Magazine Dates: January - April Venue: Stellenbosch, Paarl, Calitzdorp, Robertson Wine Valley, Franschoek Valley, Durbanville, Darling

Date: April, 2017 Venue: Green Point Cricket Club Website: www.tasteofcapetown.com

Cape Town Cycle Tour

Pinotage on Tap Wine Festival

“The Cape Town Cycle Tour is owned and staged by the Cape Town Cycle Tour Trust and it is the largest, timed cycling event in the world. It celebrated its 38th year in 2016 when, on the morning of Sunday 6 March, 35,000 cyclists lined up to ride the 109 kilometre route through some of the world’s most spectacular scenery that includes the iconic Table Mountain as a backdrop.” - Cape Town Cycle Tour Date: 12 March, 2017 Venue: City-wide Website: www.capetowncycletour.com

“Diemersfontein is known for its beauty, informal elegance, and grace; an idyllic wine estate only 45 minutes drive from Cape Town and is situated near the Cape’s famous Wine Routes. We warmly invite you to share with us the tranquil spirit of Diemersfontein; whether you are conferencing here, marrying here, staying for a few days of leisure (or even permanently), or taking some of it home in a bottle.” www.diemersfontein.co.za Date: April, 2017 Venue: Diemersfontein Wine Estate, Wellington, Western Cape

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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


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Fruitful Entrepreneurship

Rugani Carrots already accounts for 40 percent of the vegetable’s intake across South Africa, but Greenway Farms is keen to expand the secrets of its brand’s success even further to enlighten a sector still unaware of the carrot’s true benefits Writer: Matthew Staff • Project Manager: Joshua Mann

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ugani Carrots represents a move into 21st century food often neglected in South Africa, and the Company behind the now renowned products – Greenway Farms – is now honing in on a diversification strategy to ensure even more concerted growth in the future. Formulated in 1988, the Rugani journey to today’s thriving family-run enterprise can be split into numerous succinct periods of evolution off the back of financial struggles, outdated methods, industry epiphanies, fiscal revivals and revolutionary breakthroughs. Present throughout all of the above though has been the Managing Director, Vito Rugani; an executive who has never been one to rest on his laurels or to avoid exploring the unexplored in order to achieve the

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seemingly impossible. He recalls back to the Company’s early days: “My business partner and I brought the Company together in our late 20s-early 30s having both come from farming backgrounds ourselves, and we began with a very traditional farming business with numerous crops, everything done by hand and the products then loaded up to be taken to the various markets. “However, by the early ‘90s we realised we were going nowhere; our wages were low but still a vast percentage of our turnover, so something was wrong with our business.” A subsequent foray into international domains brought to light the mistakes that were being made, not just by Greenway Farms, but indeed much of South Africa’s farming community. Australia’s model,

for example, emphasised that such processes hadn’t been used there for nigh on a century, and it was clear that an ergonomic balance needed to be found. With financial support almost impossible to come by, but a very clear vision of what was needed to be done, the Company invested into a new strategy of mechanisation and specialisation to aid a better paid labour force; marrying the two for optimum production and paving the way for all stages enjoyed by the business ever since. “Within five years we’d paid back our financial partner the cash, and doubled his money, and we saw phenomenal wage increases as our labour force became more productive,” Rugani notes. “We began to realise that part of productivity and mechanisation was also specialisation.

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4 BYTES AUTOMATION

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Bytes Automation is an industrial automation systems integrator Company based in Pretoria, South Africa, specialising in the food and beverage industry. As an approved Siemens partner, a registered Wonderware Systems integrator and an Alfa Laval distributor, we provide a host of services that includes all the building blocks necessary to expand or upgrade various manufacturing facilities. Our solutions are scalable and can easily accommodate small and large applications alike. Services available to our customers: • Skid-mounted plants • Pasteurisers • CIP systems • Butterfat standardisers • In-line blending systems Industrial Automation • Programmable Logic Controllers (PLC)

Marrying man and machine in order to achieve optimum productivity

• Human Machine Interfaces (HMI)

So the mantra from ‘95 onwards was to mechanise and specialise, and to marry man and machine in order to become productive.” As a pivotal stepping stone on the road to profitability, the Company’s status more than a decade on epitomises the importance of that decision all those years ago, with Rugani carrots and carrot juice products distributed across Southern Africa and beyond, and a workforce feeling every bit as vital within the family as tenth shareholders and with subsequent input into the business’ ongoing development.

• Historical data capturing

The golden hour

The intervening years are where Rugani’s story becomes most interesting, however, embarking on a series of innovative strategies that have gone on to not only change the Company’s fortunes, but indeed the

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• Supervisory Control And Data Acquisition (SCADA) • Automated reports • Web interfaces to enable process monitoring • Remote support systems • Automated event based SMS or email messaging from the control system Electrical solutions • Panel building • On-site installation • System certification Instrumentation • Turnkey solutions Our team is committed to service excellence and will provide a professional service to all clients. Our knowledge base, skills and commitment to provide quality products is underlined by a passion for what we do. This driving force combined with a professional service enables us to deliver an end result that not only satisfies our clients, but lays the foundation for their continued support.


Bringing a food processing plant to life The world we live in today has increased demands and is ever changing. These trends necessitate a culture of continuous improvement and increased efficiency across all platforms and processes.

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Greenway Farms have made this culture part of their DNA. Their focus on continuous improvement and increased efficiency has made them leaders in their market segment. It was this focus that made it possible for them to expand their well established brand into a parallel market through the production of their carrot juice range.

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Greenway Farms decided to partner with 4 Bytes Automation to achieve this goal. Being a privately owned company we understood that this was not just another big corporate venture. This was an opportunity to turn a lifelong dream to reality, and that is something very special.

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Understanding the needs and vision of Greenway Farms was our first priority. We worked closely with them and looked at ways to make the daily operation of the factory as efficient as possible. Our aim was to present a solution that would yield maximum plant availability through process efficiency and good hygienic design. This approach translated into increased profitability and maximized capital investment through optimum plant availability.

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Experience taught us that the success of any system is reliant on the user experience and ease of use of the system. We took a holistic approach and considered each step of the process. The outcome was a system that was scalable and that could integrate systems across various platforms. With the conclusion of the conceptual process design, our focus shifted to detail design and equipment selection. Each piece of equipment was selected in view of its application in combination with proven reliability and ease of use.

PROC

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THE END RESULT 44 Venturi Crescent, B2 Venturi Park, Hennopspark, Centurion info@4bytes.co.za Tel/Fax: +27 12 653 4951 www.4bytes.co.za

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The next stage focussed on the control system and user interface designs. These systems had to provide an effortless user experience to the operator. Our solution allowed each of the production and cleaning routines to communicate with one another and required almost no further input from the operator once they were started. As a result the system implemented at Greenway Farms requires minimum operator intervention and allows the operator to focus on routine quality checks and production process monitoring; making the juice production process extremely efficient. In addition to this the system provides full traceability of all process variables, operator instructions and equipment activations. The historical data is analysed as part of Greenway Farms continuous improvement process, bringing the production of their carrot juice full cycle. Our passion for what we do inspires us to continually improve our solutions and to provide our clients with great service. Working with Greenway Farms in realising their vision and being part of their success story was a great privilege.

Christo Coetzer 4 Bytes Automation


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general outlook of the industry in South Africa as a whole. As such, the Company is now responsible for 40 percent of the carrots consumed in the country each day, but the rationale behind such success has been anything but simple. “Back then, as well as mechanising and specialising, we wanted to understand some of the fundamentals to drive carrot shelf life,” Rugani continues. “In 2000, our carrot market was around 100 tonnes a day and we did it in a way that was way behind how the rest of the world was doing it; hence hindering shelf life

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To become a specialist is to continually produce the same quality all the time, at the same volumes

enhancement. It was rushed.” The introduction of hydrocooling technology after the harvesting process proved to be a huge breakthrough in this area, taking a carrot’s shelf life from four days to four weeks; not only enhancing the Company’s attractiveness as a supplier, but also its footprint in terms of how far it could distribute products. And it all comes down to a theory known as the ‘golden hour’. Encapsulating the advantages that derive from reducing the time gap between harvest and hydrocooling, as much as 70 percent of a carrot’s


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shelf life can be lost if left for a day, and it is consequently the most pivotal time for harnessing the most energy from each carrot; a realisation that Rugani believes has revolutionised the Greenway Farms’ processes. “Our production increased, our economic balance rose, our shelf life expanded, and demand just exploded,” he enthuses. “We quickly had to move from a farm of around 20 hectares, and now have 2,500 hectares based on demand that has expanded between 1995 and 2012.” Not simply content with unveiling

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this landmark improvement, the next phase involved harnessing the power of the weather, and in particular, the seasonal aspect of carrot farming which often limits companies to optimal production for four months out of the year. “To become a specialist is to continually produce the same quality all the time, at the same volumes, and to do this you have to have multiple locations, and that’s what we innovated,” Rugani explains. “We now have three locations with four months at each piece of ground and a team there at different times of the year. “South Africa’s climate is unique in going through different climates so we have put these farms together to meet the different criteria. It has been a big breakthrough for continuity and quality.”

( P T Y )

Life force

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The next challenge to overcome was the issue with broken – or non first grade – carrots and reducing the amount of waste throughout the Company; leading to the business introducing a carrot juice product and a chain of events unforeseeable by even Rugani himself. After conducting thorough research and discussions with academics on how to produce the most refined carrot juice, he soon realised that the given concepts already in existence in the region – and largely around the rest of the world – were essentially incorrect. Subsequently trained in the art of 21st century food, he came back to South Africa with a very clear idea on how carrot juice should really be made. He says: “It was interesting to hear the advanced thinking which basically explains how carrot juice is not a fruit juice; it’s an extraction, so it cannot be produced in the same way. If you put an apple in a cupboard for a time then it will shrivel, change its shape or go rotten, but a carrot will begin to give life and come back to life. It’s all about harnessing its life force and slowing down the process, and not strangling its energy too soon. It is standard knowledge in carrot farming, but nobody had ever applied it to juice.”

STARKE AYRES

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ith nearly 140 years of experience in the development, production and marketing of high yielding vegetable seed varieties, Starke Ayres has established a significant marketing and distribution network that extends from its headquarters in Johannesburg, South Africa, to 25 countries in Africa, and more than 55 in the world. Starke Ayres is committed to research and innovation and is continually working to deliver new, improved vegetable varieties to fulfil the changing requirements of our clients. Key objectives include yield potential, disease resistance, and seed quality. In our research laboratories the key objectives include improving yield potential, increasing adaptability and disease resistance, ensuring high germination and seedling vigour, creating seeds that yield vegetables of the size, shape, flavour and colour that market demands. We have recognised the importance of research and development and are actively delivering new and improved vegetable seed varieties. The Company initiated breeding programmes in tomato, pumpkins and beans in 1995 and commercialised its first proprietary varieties in 2000. Since then we have established breeding programmes in squash, sweetcorn, hot peppers, hubbard squash, scallops and onions. Starke Ayres supplies a comprehensive range of commonly grown vegetable seeds to the commercial grower. Our product range includes both high quality performance tested hybrids and openpollinated seed varieties. While many are produced in South Africa, we also collaborate with offshore companies to produce selected varieties. Consult your area specialist for the range of products available in your country.

www.starkeayres.co.za

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STEAM GENERATION AFRICA (PTY) LTD

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team Generation Africa (Pty) Ltd specialises in steam, heat and energy generation technology.

All our products are sold and supported by a professional and experienced team, offering our client base cost effective after-sales services, repairs & maintenance and spare parts & statutory inspections. We also sell and service: • Steam boilers (coal, gas, light and heavy oil, biogas, biomass) • Hot water solutions • Co-generation heat solutions • Burners Steam generation also offer steam, hot water, natural gas line surveys, design, supply, installation, inspections and upgrades. “WE STRIVE TO BE THE BEST - NOT THE BIGGEST”

Harnessing the life force of the carrot

This new and deep understanding of how to optimise the life force of each carrot – whether it was first grade or not – resulted in a new form of carrot juice being unveiled to the market, with immediate acclaim, but even more incredible longstanding advantages soon to be discovered.

21st century food

“So we ended up with this product and initially gave it to our 200-odd staff on the farm, in the pack house or in the juice factory,” Rugani picks up the story. “Two months later they were coming to us saying it was unbelievable and how good it was for their bodies. “Around 50 percent of our staff are HIV-positive and one of the symptoms of that is irritable bowel syndrome, and people were commenting on how the symptoms were suddenly going away, they had more energy throughout the day, they slept better at night and their skin was in better condition.”

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BOTALA ENERGY SOLUTIONS

Around 50 percent of our staff are HIVpositive... and people were commenting on how the symptoms were suddenly going away, they had more energy throughout the day, they slept better at night and their skin was in better condition

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otala Energy Solutions has engineered and constructed the 3.5 MWth plant at Greenway Farms in Tarlton. The plant uses a combination of fruit pulp, silage and manure as feedstock to power their boilers. With a biogas plant you can simultaneously address your problems of electricity cost and waste/manure disposal. Biogas can generate electricity, or replace LPG gas for general use like heating systems and boilers as well as powering chillers from generator heat recovery systems. Botala Energy Solutions offers affordable and feasible turnkey package installations and custom engineered solutions for your farm or factory.

www.botala.co.za


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PROUD BOILER SUPPLIER AND STEAM INSTALLER OF THE GREENWAY FARMS CARROT JUICE PLANT THE BOILER, STEAM & ENERGY SPECIALISTS

Tel: +27 11 695-2500 Johannesburg, South Africa Email: info@steamgeneration.co.za www.steamgeneration.co.za

Biogas is a REALITY. Photo: 1.2MW plant in Gauteng, South Africa.

With a Biogas plant on your farm you can simultaneously address your problems of electricity costs and manure disposal. Botala offers turn-key package installations and custom engineered solutions for your farm or factory. Convert your manure stockpiles or manure-pond into energy and generate your own electricity in order to protect your business against the Eskom price escalations. peet.steyn@botala.co.za | www.botala.co.za | Telephone: +27 72 340 6234

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A call not so long later from the the medical science department at KwaZulu-Natal University confirmed the magnitude of what Greenway Farms had achieved through its revolutionary process of making Rugani 100 percent carrot juice, and a subsequent study was initiated by the institution to explore the exact relationship between a golden hour carrot juice extraction and its effects on the human body. Rugani continues: “It all comes down to the gut lining and the wonderful things that carrot juice does to the gut lining, and even in rehabilitating it. “Now, the consumer needs to be educated about this and about 21st century food in general. Lots of fruit juices contain large amounts of acid for example, and a lot of our diets are acidic; but if too much acidic food gets in your bloodstream you’re more prone to cancer.

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Sometimes you need to be ready to gamble a lot and that’s the problem with many enterprises now; they mock entrepreneurs but it’s entrepreneurship that makes the world go round

“Lemon, beetroot and carrots are the only alkaline based produce and cancer can’t thrive in those environments, so consumers really need to be educated about how much alkaline-based foods and drinks they take in, in order to get back in the neutrality zone. “At the moment, the world is short of that kind of food. People know carrot juice is healthy but they don’t know the reasons behind why it’s healthy.”

Pastures new

With the generation of mechanisation and specialisation moulding the Greenway Farms of today, the latest evolution has seen an acknowledgement that nature doesn’t always call for such a strategy, and in fact needs a more diversified

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natural approach; something which the Company has equally addressed by moving its eggs out of the one basket, and onto pastures new. Literal pastures, to be exact. The move into beef farming ensures the utilisation of the two-thirds of land being rested from the specialised carrot rotation, with the pastures subsequently bringing an entirely new product range into the fold in the form of grass-fed, free-to-roam beef. Furthermore, by grazing the cattle on the land, the Company is able to restore a more natural approach to farming through both the digestion of grass, and the use of dung and urine to revitalise the biodiversity in the soil. Rugani explains: “We’re still a specialist in carrots but instead of going horizontally and over-supplying the market, we are now going vertically by harnessing the life force of the carrots in juice form, and also now through beef which the world is calling for. “Additionally, we can also harness the energy from the juice production process by using the carrot pulp in the biogas plant to produce methane, which in turn powers the juice plant. The biogas plant also produces a slurry which is essentially organic fertiliser, which is then reintroduced into the lands.” Some companies in the industry are even making more money out of their by-products than they are from their core farming operations, and this move from Greenway Farms to capitalise on


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As a trusted logistics service provider to Greenway Farms over a number of years, Fatton Ariva wishes to pass on their congratulations on their recent successes and looks forward to extending the partnership into the future.

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› International Airfreight › International OceanFreight › Customs Clearing › Warehousing › National Distribution › Overborder Roadfreight › Packing www.fattonariva.com

Contact. Neil Pearson – npearson@fattonariva.com Tel +27 11 974 9198 Fax. +27 11 974 5261

its full potential epitomises the kind of smartness that has got the business from its rather precarious position in the early ‘90s to the nationally significant standing it currently enjoys. As such, the strategy is now a key driver of the Company’s current and future business vision. “Back then we thought we’d bit off more than we could chew, but life is made for the courageous,” Rugani muses. “If you look back at it, it was madness and it was very tough, but if there’s a will, there’s a way. Sometimes you need to be ready to gamble a lot and that’s the problem with many enterprises now; they mock entrepreneurs but it’s entrepreneurship that makes the world go round. “Now my partner and I are moving on in age but we have family members already involved in the business and a whole new generation ready to take over in the future.”

As the first and only land leveling contractor in South Africa for the agricultural and construction industries, all our products are supplied to customer specific needs to ensure quality.

Land leveling Plant hire Earthmoving Dam building

We supply equipment and services to various clients, including Rugani Carrots.

Workshop Address: Plot 181 Vlakplaats, Tarlton DeVilliers: +27 82 896 7950 Carike: +27 82 873 5697 Fax: +27 86 649 8242 Email: diwie@mweb.co.za www.jdhoffmanearthmoving.co.za

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ame V E N C O

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Reaping

the Fruits OF HARD

Labour 50

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With the support of five industry heavyweight shareholders, VENCO Fruit Processors is reaching new geographies and new production capacities as it strives for market dominance Writer: Matthew Staff Project Manager: Joshua Mann

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ith an astounding production volume of as much as 85,000 tonnes of citrus fruit per annum, VENCO Fruit Processors can confidently proclaim itself as one of the leading market operators in South Africa, but refuses to just stop there, with a host of innovative improvement strategies laid out for even more concerted future growth. Comprising a variety of lemon cultivars, Valencia oranges, Navel oranges and a plethora of soft citrus

fruits, the VENCO portfolio deriving from the Company’s head office in Sundays River Valley represents almost unparalleled levels of efficiency throughout the refined manufacturing processes; allowing for maximum return on raw materials, zero product waste, and the flexibility to upgrade and enhance processes according to capacity growth. Such consistent operations can be attributed to the strength of combined ownership across Sundays River Citrus Company (SRCC) (35 percent), San

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ESKOM

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skom Energy Advisors are ready to advise you on how to manage your electricity costs.

Eskom is strategically committed to supporting farmers and businesses in the agricultural sector with advice on how to reduce their energy use. Eskom Energy Advisors are on standby to assist you from walk-through energy use assessments to help identify a business’ energy needs, energy use patterns, areas of energy wastage and energy saving opportunities to expert guidance on energy efficient technologies and measurement and verification processes. Visit the Eskom Exhibition at the Nelson Mandela Bay Science and Technology Centre, Corner Drostdy and Algoa Roads in Uitenhage for more information. E advisoryservice@eskom.co.za

The VENCO processing factory is in the heart of South Africa’s citrus production region

Miguel Fruits South Africa (35 percent), Coerney Packers (10 percent), Sitrusrand Boerdery (10 percent) and Raptotron Investments (10 percent); a team that has seen VENCO branch out from its South African roots to export as far afield as Africa, Europe, the US, the Middle East, the Far East and Australia, and who can be lauded for setting the Company apart from its market competitors. “VENCO has a very strong business model where shareholders are also suppliers of raw materials, to ensure a guaranteed supply of raw material and to ensure customers’ product availability. Roughly 98 percent of the fruit we process is supplied by shareholders of VENCO,” General Manager, Andre Swart says. “We also differentiate ourselves by our close proximity to the citrus growers and the two export ports (Port Elizabeth and Coega) which becomes a significant benefit within our supply chain management.”

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By continuously developing new products and finding innovative applications for citrus raw materials, VENCO aims to be the preferred supplier of specialised citrus products...

www.eskom.co.za/idm VENCO’s ability to rapidly develop new and innovative products in line with customer demands, and off the back of its flexible process structure further cements its position as a provider of choice among customers; enabling the business to leverage its years of expertise to meet the most specialised and niche of taste demands.

Innovative applications

Originally established in 1946 in Port Elizabeth under the name Val-Orange, the initial objective was to market high-end orange crushes and juices to the English Ministry of Food, but following a strategic acquisition of its assets in 1984, and a later rebranding following the deal with the current five shareholders in 2013, VENCO in its current guise was borne. Despite the occasional change in the structure of the business, the overriding philosophies and targets have remained consistent though; to


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JBT- Proud Supplier of Juice Extraction Equipment to Venco Fruit Processors RECYCLE FOR A BETTER FUTURE ®

March to the sound of a different drum o Manufacturers and

reconditioners of 210 litre drums.

Filler & Closer Groups • Aseptic Systems • Sterilisers Thermal Process Control Systems • Evaporators Citrus Juicing Equipment • Fruit Coatings for Export John Bean Technologies (Pty) Ltd PO Box 891, Brackenfell, 7561 Tel: + 27 (0)21 982-1130 Fax: +27 (0)21 982-1136 Email: richard.collins@jbtc.com www.jbtcorporation.com

JBT AD - AFRICA OUTLOOK.indd 1

o Superior quality at reasonable prices. o More than 20 years’ experience. o Now manufacturing Conical Drums. Email : info@peninsuladrums.com, drums@iafrica.com Telephone: (+27)21 374 1161 / (+27)21 374 1162 Website: www.peninsuladrums.com

2016/07/20 1:41 PM

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VENCO CERTIFICATIONS - FSSC 22000: GFSIrecognised food safety system including ISO22000:2005 - ISO/TS 22002-1 - Kosher - Halaal Processing between 80,000 and 100,000 tonnes of citrus fruit per annum

- FDA registered

be the leading fruit processor in South Africa through innovation, and to maintain optimum value for money for its fruit among shareholders in order to secure a prosperous future for all stakeholders in the Company. To achieve this, VENCO’s continuous improvement strategy integrates a strong commitment to areas of innovation, process optimisation, raw material optimisation and robust quality systems. “By continuously developing new products and finding innovative applications for citrus raw materials, VENCO aims to be the preferred supplier of specialised citrus products, and by finding better and more efficient ways to process raw materials we also improve production yields year-on-year,” Swart affirms. “Also, by developing new markets for use of all citrus fruit components and citrus product derivatives, VENCO has managed to improve the percentage of yield from raw materials.” VENCO complements this ethos by continuously evaluating quality systems, legislations and certification systems to ensure it complies with all international regulatory requirements for manufacturing and exporting to global markets.

- PPECB freezer certification for direct export

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- South African R918 certificate for acceptability of food premises

Building team spirit through events such as Ironman Port Elizabeth

Updates to the factory’s capacity have helped reduce waste

In regards to the end-goal – the processes and products themselves – recent enhancements have been seen across the Company in the form of various new citrus comminutes and blends to meet more niche customer requirements, while the development of citrus extracts for secondary juice applications has also been introduced, including blending applications.

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SMART incentives

To facilitate ongoing external expansions and diversifications, the efforts put in behind the scenes from an operational standpoint are of paramount importance, and are fulfilled by the continuous involvement in wider industry research projects to evaluate sector trends, and through the installation of new equipment in reaction to these trends; including in


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more recent times a new R28 million lemon fruit processing line which has resulted in a 35 percent increase in processing capacity. A new thermally accelerated short-time evaporator has also been added to the VENCO repertoire, and by the end of 2016, the entire factory building will have been upsized by 30 percent to facilitate future expansions as well. And, of course, overseeing all of these improvements and ensuring their success, is a core team of loyal – and importantly, local – employees, as Swart discusses: “VENCO has a small contingent of permanent employees and management while the processing facility makes use of seasonal employees, all from within local communities to supplement the workforce during peak citrus production season. “The Company has also this year launched its first Graduate in Training (GIT) programme to support qualified incumbents from the local communities to gain work experience. Our focus on employment is always from within local communities and we believe in developing scarce skills from within the Company rather than sourcing such skills externally.” A strong corporate social responsibility presence in the local region further compounds the Company’s dedication to local communities and Swart firmly sees this enrichment of individuals as a differentiator in the market. “VENCO differentiates itself from other employers by offering an incentive scheme not only for top management, but also for every fixed employee in the organisation. Incentive schemes are paid out based on certain key performance indicators and we endeavour to keep these as ‘SMART’ as possible. “Employee development and training are key aspects to motivate and retain employees.”

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Leen MuLckhuyse ConstruCtion

Building and Civil Contractors

(Pty) Ltd

Fast, efficient, but above all, flexible with 53 years of commitment. Contract building done right. www.leenmulckhuyseconstruction.co.za T: 041 4513278 – F: 041 4533344 – E: arjen@zamaprojects.co.za

Proprietor - S and W Cooling (Pty) Ltd

Supply and installation of: • All refrigerated retail equipment • Bulk cold storage systems • Insulated structures • HVAC systems • Specialized controlled environments Tel: +27 41 451 1992 Cel: 0828764074 Email: aubrey@coastline-rf.co.za

Address: 90 Sidwell Avenue, Sidwell, Port Elizabeth

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Smooth production

South Africa is the second largest exporter of fresh fruit in the world, making the prospect of VENCO such an appealing one for its five shareholders back in 2013, but also making it a very competitive market in which to find extra quality. San Miguel, one of the leading shareholders, has an especially important role to play in extracting that quality from the business’ operations. “Our relationship with San Miguel is very special,” Swart emphasises. “They are responsible for selling all our products and also provide VENCO with technical knowhow and advice as they are one of the biggest lemon processors in the world. They sell fruit to VENCO and in some instances they also buy some of our final products. “Our success is closely related to the guidance from them while our other big shareholder, SRCC, provides us with

the biggest volumes.” Having a game-changer from a shareholder perspective also facilitates a much more refined supply chain management strategy in the case of VENCO, with most of what is not exported by its shareholders, coming to the Company. Swart continues: “Most of the fruit is coming from pack houses and not directly from farms so our logistics is important in the sense that fruit must be collected from a wide variety of sources in a timely manner and also to keep the factory running optimally. “Our logistics and communication with our transporters is key in all of this to not only keep VENCO running but to also ensure the smooth production at each pack-house.” Honing the distribution process is equally pivotal from a temperature, storage and timing perspective, especially considering that as much as

Our logistics and communication with our transporters is key in all of this to not only keep VENCO running but to also ensure the smooth production at each pack-house

Processing: Lemons are washed in a water bath

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70 percent of the produce is exported to different continents. VENCO has once again perfected this facet throughout its facilities and supplier footprint; all harking back to its primary – and seemingly obvious – mission, to ensure that the fruit is collected at the most suitable time, is then efficiently processed into juice and distributed across continents to ensure that its shareholders get the biggest return for their fruit. Swart adds: “In our region there is enough land but not enough water. We have irrigation water in the Sundays River Valley and that is key for producing quality fruit. You can erect a new juicing plant but if you haven’t got fruit volumes to process then you will not have a business. It’s pretty logical but that is what it is; you need fruit! But our shareholders provide us with the necessary fruit and as they are expanding, we will also expand.” As part of this expansion, new citrus orchard developments are taking place in strategic locations to prepare for anticipated volume demands, while VENCO continuously monitors the consumption of citrus concentrates in order to plan ahead for future trend fluctuations. “In the future, VENCO would like to further develop specialised and unique products and become known as a centre of innovation for citrus products,” Swart concludes in analysing the Company’s longer-term goals. “We would also like to diversify our operations to obtain maximum value out of secondary citrus products and citrus material derivatives. “A second VENCO plant is also a likely scenario at a different site, as the growth at the current site will eventually be limited by space and other constraints.”

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Innovative n with a Convenience

Foods By making strategic investments in its production processes, equipment and training, Butler Foods has positioned itself to capitalise on new growth opportunities in South Africa’s convenience food market Writer: Emily Jarvis Project Manager: Joshua Mann

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Premium Taste


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committed to developing innovative premium tasting foods. “Butler Foods has progressed from humble beginnings to exponential growth in just five years, with a total staff complement of 93 today,” says Francois Mouton, the Company’s Chief Executive Officer (CEO). “Our success is measured by the level of service we provide to our customers. Customer satisfaction and product development are what we pride ourselves on. Our customers know from the first day they do business with us that they will be greeted by a friendly face and treated with respect; and their orders will be handled correctly, quickly and efficiently.” This relationship with each and every customer is based on trust and respect, an ethos which is represented in the Company logo’s tagline, ‘how may we serve you?’

“It is our duty to continuously monitor market trends and make changes in accordance with the needs of our customers. Therefore, we listened to our customers and shifted our focus to the convenience market, offering meals in both frozen and chilled formats. Meanwhile, we continue to work hard to uphold great relationships with our clients; depending on them to provide us with regular, honest feedback so that we can continue to meet their needs,” explains Mouton. As a manufacturer and distributor of wholesale confectionery, convenience foods – including baked goods – and sauces, Butler foods is proud to distribute its products to more than 200 customers daily; with customers comprising the likes of schools, universities, restaurants, business canteens, hospitals and caterers.

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ce Age Management, in conjunction with Cubicool, has designed a refrigeration system for a blast chiller and blast freezer for Butler Foods. Designed for a room size of 4.7m (l) x 2.6m (w) x 2.4m (h), the blast chiller is capable of cooling down 800kg of warm products (stews, soups, sauces etc) from an incoming temperature of +85°C down to +4°C in 90 minutes or less. A 62kWR refrigeration plant comprising an outdoor weatherproof condensing unit with a six cylinder 40hP Bitzer compressor was installed. In addition, a remote three fan vertical-discharge microchannel condenser, in combination with two evaporators, each fitted with two 630mm Axial fans completes the system.

An employee melts Belgian chocolate for Butler Foods’ famous Lava Cakes

Convenient meals

Many South African households want an approach to cooking that better suits their busy modern lifestyle, and Butler Foods strives to be a Company at the heart of this trend; manufacturing hearty, wholesome, tasty and convenient meals. In order to do this the Company has invested in the development of its own in-house manufacturing and distribution system. Following strict food safety standards, the Company prides itself on upholding the highest quality processes and administrative procedures throughout the value chain, from the initial concept right through to finished product. “By streamlining our internal processes, we are able to serve our customers with the utmost efficiency at all times,” Mouton states. “Technology is a crucial pillar of our long-term growth strategy. Our custom-made software allows us to

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continuously improve our manufacture efficiencies now, and in the future. This system also aims to automate quality and food safety processes. Moreover, we have a CRM system which allows us to interact with our customers easily and in a professional manner. Meanwhile, we are also busy working on an app that will ultimately allow clients to manage their own orders; reaffirming our desire to be recognised as a transparent and honest business partner.” Supporting its software is a whole host of investments in the latest equipment, including the recently installed state-of-the-art blast chillers and freezers. “Further aligning with our culture and values, we have also improved our packaging vastly thanks to our dedicated product development team for R&D,” he says. Over the next 12 months, Butler Foods will continue to build on this already solid foundation to generate

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The blast freezer is designed to freeze up to 200kg of product (cupcakes and pastries etc) from an entry temperature of +50°C to a final temperature of -15°C in circa one hour. Within a freezer room of 5.2m (l) x 2m (w) x 2.8m (h), the design capacity is sustained by a 32kw refrigeration system which has a similar design to the blast chiller. All systems were designed to operate on R507A, a non-ozone depleting refrigerant. Having partnered with Butler Foods since their inception, we are pleased to be a part of their ongoing and future success, offering our wide range of refrigeration and aircon services to suit their needs. T +27 83 609 4699 E dyal@iceageman.co.za

www.iceageman.co.za T +27 11 974 6541/2 E info@cubicool.co.za

www.cubicool.co.za


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new product ideas of an equally high quality that complement its already impressive range of products. “Additionally, we strive to perfect our existing range by testing ingredients, monitoring health trends and new tastes. By demonstrating our unwavering commitment levels to customer satisfaction, we hope to look at taking on the development of client-specific products as well,” the CEO confirms.

Building relationships

With the Company only in its fifth year of operation, there is still plenty of room for growth and development of its brands and bolstering the awareness of its core product range in new regions. “Another key focus will be to build brand awareness of the Great Scott range of sauces in particular, and we have recently started the plans to expand our existing sauce production plant to be able to cope with the

projected increase in sales,” says Mouton. As a Level 2 BEE Company – with 90 percent of its workforce comprised of previously disadvantaged individuals – Butler Foods has always been keen to have a far-reaching impact in terms of social upliftment and empowerment. The CEO details: “Butler has a very unique employee culture and is something we are all very proud of. A very loyal and dedicated

By demonstrating our unwavering commitment levels to customer satisfaction, we hope to look at taking on the development of client-specific products...

Factory workers filling piping bags with chicken mayonnaise filling

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Butler Foods management team, with Francois Mouton, CEO pictured front right

WE ALWAYS SERVE OUR customers first WE ARE COMMITTED TO THE HIGHEST

FOOD SAFETY STANDARDS

WE ARE different | WE ARE ACTION DRIVEN

WE PRODUCE QUALITY PRODUCTS WE SERVE AND respect OUR COLLEAGUES

WE ARE HONEST AND OPEN WE ALWAYS communicate WE ARE PASSIONATE AND DEDICATED

IN AN UPLIFTING MANNER

WE ARE ACCOUNTABLE AND TAKE RESPONSIBILITY

WE ANTICIPATE CHALLENGES AND ACT IMMEDIATELY

WE CHALLENGE OURSELVES continuously

WE IMPLEMENT PROCEDURES AND

WE VIGOROUSLY STRIVE TO IMPROVE

WE are the best AT WHAT WE DO WE DO NOT ACCEPT EXCUSES, AVERAGE OR ORDINARY

follow THEM RELIGIOUSLY

WE MAKE A DIFFERENCE IN OUR COMMUNITY

WE ARE HERE TO disrupt AN INDUSTRY

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a motiv

staff base incorporated within this culture provides a fantastic working atmosphere. “To this end, we are incredibly excited about our new initiative, the Butler Academy, which will provide training opportunities for our staff and help them individually progress to new career heights.” With a dedicated workforce and training programme in place, supported by the wider continuous improvement strategies of the business, the Company hopes to be an attractive entity for local and international distributors alike. Mouton concludes: “We are currently on the lookout for international distributors. Strategic relationships with our suppliers enable us to share our vision with them and exactly what we stand for. “Ultimately, our goal is to produce higher volumes and reach a larger number of retailers with our tasty brands; and our significant growth in the past five years shows how keen we are to reach this target.”

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South Africa’s

Trendsetters

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With ambitious plans to open additional stores outside its Western Cape mainstay, Melissa’s The Food Shop is to bring its unrivalled retail and restaurant combination to discerning new customers Writer: Emily Jarvis • Project Manager: Joshua Mann

orking tirelessly to bring a vision for a quality South African food store to life over the past 20 years, Mark and Melissa van Hoogstraten are an entrepreneurial duo to watch. A Company closely intertwined with key events in their own family history, Melissa’s The Food Shop was founded on solid principals and a set of core beliefs that continue to drive the business to new heights today. “We opened our first Melissa’s store in August, 1996 in Kloof Street,

Cape Town; in a South Africa in stark contrast to the one we inhabit today,” recalls Melissa van Hoogstraten. “The opening of our first store happened very much at the beginning of our life together and the business mirrors our lifestyle, values and appreciation for the classic and quality things in life. And so the story of our family has become the story of our business.” She adds: “Understanding the value of quality, where one appreciates that having less, but the best, more often than not leads to a richer experience. We value original, time-honoured

principles and philosophies and it’s this value system that has driven our Company strategy. Melissa’s is therefore unique in that it is really selling a personal mantra rather than a brand. This is reflected in our stores and products which embody these values.” Consisting of 12 stores, eight of which are franchises and four Company-owned, Melissa’s has evolved into a multifaceted business comprised of a number of key units, including Melissa’s Food Shops, offering an unrivalled retail experience

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spanning food, gifts, homeware and a restaurant experience; a hospitality range that is marketed and distributed to premium boutique hotels; and an extensive wholesale division which supplies and distributes products for its owned and franchised stores, as well as other business units. Distributing throughout South Africa and internationally to the likes of Botswana, Namibia, Zimbabwe, Seychelles, Hong Kong, the UK and more, Melissa’s moved to a franchise model in 2013 and has big plans to expand exponentially over the next four years; placing emphasis on areas beyond the Western Cape. “To the best of our knowledge, there is no other brand in the world like ours. We are trendsetters not followers; preferring to let our strong philosophy and deep customer knowledge – developed over 20 years – guide our decision-making. As a brand, we pride ourselves on being pioneers as opposed to following the latest fad or trend,” van Hoogstraten emphasises. “On an aesthetic level, this philosophy also translates into our physical store design and fit-out. We continuously modify the look and feel of our stores by striking a balance between using materials that are classic and timeless and at the same time anchoring the brand in the present with details that appeal to the modern discerning consumer to create a slick and sophisticated retail experience.”

Pushing the boundaries

Over the next four months, Melissa’s will continue to grow the reach of its franchise model nationally by opening another two stores outside the Western Cape. Further complementing this has been the 2016 launch of brand extensions Melissa’s Mantra – a pure retail concept offering customers a more intimate retail experience – and Melissa’s Café & Bar, with strong

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CATERMARKET

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stablished in 1998, CaterMarket carries a range of more than 5,000 products to meet the specific requirements of our clients. Having built up a wide range of locally manufactured and imported products, we represent several acclaimed brands which enable us to supply according to the needs of any restaurant, hotel, supermarket or catering facility. Our Cape Town and Johannesburg branches are ideally located to increase our footprint in Southern Africa and to ensure good before and after-sales service. Cape Town T +27 21 949 7325 Johannesburg T +27 11 708 0191

www.catermarket.co.za

Blending together timeless and modern design

emphasis on evening bar and dinner trade. Moreover, in response to demand from areas where Melissa’s products aren’t yet readily available, the Company has recently invested in an ecommerce division. This rapidly growing area of the business will provide more customers with access to a range of food and homeware products that can be purchased online. The use of the latest technologies to rapidly expand the business extends beyond its ecommerce model into Melissa’s internal investments, as


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Visit our website: www.catermarket.co.za

CaterMarket specialises in the design of foodservice facilities, as well as in the supply and maintanance of your food service equipment to the food service and hospitality industry. Our experienced staff understand and meet the needs of our clients and are passionate about providing full pre and post advice and service. Cape Town Office: Tel: +27 21 949 7325 - Email: info@catermarket.co.za Johannesburg Office: Tel: +27 11 708 0191 - Email: jhb@catermarket.co.za

We are constantly reinventing, researching and developing; pouring energy into remaining ahead of the curve and exceeding our customer’s high expectations

Melissa van Hoogstraten Co-Founder & Managing Director

van Hoogstraten details: “We are also migrating to a new software system and integrating it across the entire Company. This will help us drive greater efficiencies and synergies between our various business units and free-up valuable resources so we can focus on critical growth areas that will drive the business forward. Furthermore, we have a new and improved bookkeeping system as well as very comprehensive training manuals which are continuously improved upon.” She adds: “We are constantly reinventing, researching and developing; pouring energy into remaining ahead of the curve and exceeding our customers’ high expectations. Their expectations motivate us to push the boundaries, to inspire, delight and in turn, raise the bar in terms of what our brand can deliver. Mark and I are still very much leading this process day-to-day.

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“This year alone we have launched a number of unique new ranges including our exclusive tea range sourced in India, our new cordial range as well as home baking kits and, coming soon, a chutney range.” The vast majority of Melissa’s branded products are sourced and produced locally within South Africa; which makes working closely with partners to develop new product lines a streamlined and efficient process. “Logistically, our wholesale and distribution centre helps our suppliers deliver their products efficiently and avoid the barriers and complexity that so often stifles a company’s growth potential,” she further explains. “We are constantly establishing partnerships to facilitate the distribution of other worldclass brands besides our own with companies that lack the necessary infrastructure and assets to manage that distribution themselves.”

Brand advocacy

With some members of staff having been a part of the business for close-to a decade or more, Melissa’s has not lost sight of the importance of the people behind the brand. Offering inhouse training for new recruits as well

We have a strong philosophy of quality, originality and integrity in everything we do and our staff recognise this

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as refresher training for longer serving employees; the team is fully-equipped and well-nurtured to serve the brand and drive the van Hoogstraten family vision for quality food and excellent service delivery to discerning customers. van Hoogstraten firmly emphasises: “We have a strong philosophy of quality, originality and integrity in everything we do and our staff recognise this. The aforementioned mantra underpins the entire business and has determined our rapid evolution since day one. Distinguished from the competition by look and taste, the Melissa’s range of products are created with the best ingredients possible; with no artificial colorants and flavourings.” Based on its unique, allencompassing offering, Melissa’s plan to roll-out another five franchise stores in 2016, followed by a further five in first half of 2017 across its three brand pillars; Melissa’s, Melissa’s Mantra and Café & Bar. “The focus will be on expanding our footprint outside the Western Cape while in the meantime, our national sales footprint will have grown and we’ll be enjoying greater internal efficiencies as a result of our new software system,” she confirms. “Our brand awareness will continue to grow as we ramp-up our marketing efforts nationally. These are very exciting times for us and we can’t wait to see what transpires in the next 12 months.” van Hoogstraten concludes: “My husband Mark and I strongly believe in the competitiveness and appeal of South African products on the world stage and we hope that in the near future Melissa’s can become a hallmark for South African-made products internationally; introducing the rest of the world to the quality, unique goods that we are privileged to enjoy domestically.” For more information, please visit www.melissas.co.za.

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Quality FOODS FROM

South Africa Berfin’s team of in-house developers and traders continue to identify ways to build on its exceptional range of branded and private label goods available in 42 export markets Writer: Emily Jarvis • Project Manager: Joshua Mann argeting manufacturers, wholesalers, supermarkets and the world’s leading retailers across 42 export markets from its strategic base in Cape Town, FMCG marketer, Berfin is hoping to increase its production capacities and export reach even further with the help of its aptitude for continuous improvement and innovation. Founded more than 20 years ago, and borne from the need for a vehicle to capitalise of the booming South African FMCG manufacturing industry, the Company has firmly established the international connections needed to take its

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brands to the next level and place the nation’s best-loved foods in foreign markets. “We have a very well-established high quality food manufacturing industry here in South Africa, and we quickly identified the potential to take South African food products to new markets. The UK was our first foreign market and remains among our established trading partners, with North America, Europe, Asia, Australasia, the Middle East and Africa today,” recalls Grant McGregor, Managing Director (MD), Berfin. Now part of Libstar Group of Companies, which comprises a large group of FMCG manufacturers

and an extensive range of food and beverage products – from branded to private label products – Berfin continues to look for ways to retain its position as one of South Africa’s leading food marketers. By closely monitoring taste profiles and trends of customers around the world, and matching this with high quality products, the Company has maintained its reputation and good relationships which have stood the test of time. “From a logistics point of view, our unique positioning in Cape Town allows us to reach customers in both West and East Africa and this has


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The Company head office is in Cape Town

seen Berfin access trade agreements with various customers across the continent. By continuously adjusting our products to new taste profiles, we have been successful in unlocking new growth opportunities over the years,” he confirms. “Add to this our certifications and compliance with the regulations set out in the markets in which we operate, including being fully FDA-approved and compliant to EU standards, we have become a supplier of choice who remains flexible and adaptable to client needs. “South Africa has a reputation in the food industry of packing high quality products, in world-class facilities, and at the same time being very competitive. Most raw materials are grown and sourced in South Africa, which has some of the highest quality agricultural standards.”

The Berfin team

Taste profile

A preferred exporter offering turnkey solutions from concept to consumption, Berfin is keen to deliver on its reputation as a highly skilled institution that can develop, source, pack and deliver branded, as well as private label, options for most high quality food and beverage products. Leveraging its specialist team of inhouse food specialists, the Company is capable of manufacturing tailor-

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Grant McGregor Managing Director

made and packaged solutions for international markets. Drawing attention to one of many brands in the Company’s repertoire, McGregor highlights: “Among our most popular products is the Ina Paarman range; offering a diverse range of high quality dressings, sauces, spices and baking mixtures. Developed by one of South Africa’s most well-known food personalities, the brand has gained a loyal following in many countries around the world. Meanwhile, in the beverage segment we are one of the leading exporters of wine from South Africa, blended and packed by our own wine makers in our sister Company, African Pride Wines. We have also just re-launched the Sunripe range of tetra pack fruit juices with a fresh new look.” He adds: “The trend towards western-style food products and the growing middle-class in Africa have played significant roles in our market decisions; along with food television programmes and prominent chefs


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For free recipes visit www.paarman.co.za

A recipe this good needs LANCEWOOD , South Africa’s #1 cream cheese. ®

The trend towards western-style food products and the growing middle-class in Africa have played significant roles in our market decisions...

Find the recipe at www.lancewood.co.za Source: IRi Aztec: South Africa Defined Retailers MAT April 2016

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also influencing consumer spending habits and tastes. We work with our customers across Africa to develop products that suit their taste profile, and offer attractive pack sizes at the appropriate price point.”

Product innovations

Elsewhere, the Group’s divisions span confectionery, healthy snacks, frozen meat and dairy; with a range of other branded products available through Berfin’s subsidiary companies; most recently including the Gold Crest range, as well as a range of perishable products available via airfreight. “In addition to making sure that we adhere to the strict requirements of each export market, our in-house food technologists are continually exploring new product ideas and identifying ways to diversify our revenue stream in line with the latest industry trends,” explains McGregor. Also supported by an in-house logistics team, Berfin has a staff size of 40 – mostly locally sourced – employees today, who speak a combined total of eight different languages; enabling the team to communicate more effectively with customers and suppliers. “Equally important is our relationship with our international distributors and so we regularly attend all the important food shows around

Mrs Ball’s Chutney is a unique spicy South African condiment

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As we grow our aspirations, our partner companies will continue to feel the benefits of a strong relationship with Berfin, as well as experiencing continued growth

the world; including The Anuga Food Fair, Gulf Food and the upcoming SIAL in Paris, where we will exhibit, network and showcase our new and refreshed range of products,” he adds.

Traceability

The combination of exceptional people, the very best suppliers, and an ongoing innovation strategy to boost speedto-market has resulted in Berfin’s prominent market position today. “I believe that this winning blend and the diversity and traceability of our product range from a regulatory point of view will support our target to become the go-to Company for export in South Africa’s FMCG industry. In line with this, we will continue to increase our African footprint by distributing into new countries, ensuring seamless supply chain management,” McGregor says.


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Brands Ina Paarman Mrs Ball’s Sunripe Lancewood Goldcrest Cape Maclear Willow Falls Eureka Flour Mantelli’s Biscuits Amajoya Sweets

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“We are currently in the process of becoming ISO 9001 compliant, an achievement which we will proudly add to our already extensive list of international standard compliances and accreditations.” He concludes: “Of course, none of this would be possible without the continuous support of our packaging and manufacturing partners. I would like to thank them for their support on this journey with us as a critical growth component that has helped grow our business into the leader it is today. As we grow our aspirations, our partner companies will continue to feel the benefits of a strong relationship with Berfin, as well as experiencing continued growth.” For more information, visit www.berfin.biz or email info@berfin.biz.

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Winelands Pork is already the second biggest pig abattoir in South Africa, but is leveraging a series of accreditations, capital investments, and facility expansions to bring an even more refined product to the end consumer Writer: Matthew Staff Project Manager: Joshua Mann s the first Pork 360 approved abattoir in South Africa, Winelands Pork has seemingly mastered its profession in the country, but refuses to rest on its laurels as a new slaughter line and a continuous refinement of its processes ensures even more sustained longterm progression. Founded in 2001 when a couple of farmers saw an opportunity to start their own abattoir, the vast operations that exist today are a far cry from the few hundred pigs a day enjoyed 15 years ago. Now boasting an export abattoir of more than 1,600 pigs each day, the second largest pig abattior in the country – with an equally extensive international reach – is right on course to meeting its ultimate objectives; driven by a shareholder structure conducive to the most streamlined of strategies.

TOP QUALITY FROM

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“Winelands Pork is owned by its shareholders who are all farmers producing pigs for the Company, hence the fact that we only have good, consistent, quality meat,” Winelands’ Managing Director, Ken Polley explains. “We sell fresh carcasses, primals, value-added products as well as pre-packed merchandise

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for selected retailers, but only use pigs from our own shareholders to guarantee constant high quality and safe meat for our customers.” Continuous improvement is now the name of the game for Winelands Pork, with a major upgrade to its slaughter line in the past 24 months paving the way for increased production


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o PLATE capacities, an extension of its truck fleet to speed up deliveries, and the attainment of the all-important Pork 360 accreditation. “Pork 360 is a certified quality assurance programme developed by the South African Pork Producers Organisation,” adds Polley. “This programme starts at the piggeries

where they are registered and audited in terms of traceability, waste management, biosecurity, welfare and housing management. “Our SAPPO initiated, PORK 360 ASSURED programme ensures top quality from farm to plate.”

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Ken Polley, Managing Director

Reception desk

Meaningful and measurable contribution

As a nationally-significant supplier of pork carcases and primal cuts, the natural next step for the Company was to look further afield into the SADC region, a philosophy which has come to fruition via an expanded footprint embracing Namibia, Angola, DRC, Malawi and Sierra Leone. An even wider influence in the Far East, in locations such as Vietnam and Hong Kong, epitomises the quality of product achieved by the Company, and Operations Manager, Henry Shaw firmly attributes the success to the business’ internal structure. “We value our staff and therefore have a very stable staff compliment,” he says. “This in itself has given us the ability to continue production on a daily basis within a volatile and changing world. Upgrading our facilities to keep up with current technology for the demanding market has been vital.

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“There are a lot of in-house training programmes in the Company and we constantly strive to improve people and skills training. Some of our employees have been with the Company from the very first day.” The same ethos of enrichment emanates outside of Winelands’ core operations as well, with a social and ethics programme in place exclusively to ensure the reinvestment of the Company’s success into the communities supporting it. Shaw continues: “We strive to make a meaningful and measurable contribution within the sectors of operation; to develop partnerships as well as relationships with Government and communities and other foundations. “Our social and ethics policy ensures that we achieve our goals and objectives which are supported by top management.”


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AVE Distribution Services (PTY) Ltd

Our mission is to be the premium distribution Company, specialising in supplying Quality Protective Packaging.

With full BEE compliance, AVE Distribution Services offers a wide range of services, including:

Product Range > Pallet wrap - any size & any micron > Company branded strapping and tape > Food graded packaging > Bubble wrap > Plastic bags – any size > Wrapping machines manual or automated

> Fast delivery

Increased productivity

Creating such a positive atmosphere on the periphery creates the ideal platform from which to build internally, and a whole host of plant improvements, new equipment – including a new slaughter line, dehairing machine and derinders – upgrades, revamps and administration programmes have set the tone for the Company’s current proactive ambitions. Incorporated within this, Winelands’ supply chain management is also looked at and refined on an ongoing basis, as a key element of its efficiency goals. Shaw notes: “Your supply chain management is very important to running an abattoir efficiently and cost effectively as it is a low-margin, highvolume industry. Our shareholders are our suppliers who ensure consistent supply at the highest level of quality, and we are currently expanding one

Henry Shaw, Operations Manager

> Guaranteed product availability > After sales service, including training in product usage and packaging advice National Representative, Wayne Rykaart Office: +27 11 9742255 Cell: +27 82 7540649 avedistribution@outlook.com

of our supply farms which will result in 5,000 pigs per week from this farm alone. “We currently outsource distribution outside of the province and will continue to do so in the near future.” Having refined all facets of the organisation, from shareholders down to the communities in which it operates, Winelands can now positively look towards the next 15 years of development; kick-started by the adoption of new technologies and techniques to increase productivity and decrease input costs, and compounded by an increase in healthier animals in order to produce the best end product possible. Polley concludes: “Our aim is to increase production by adding more piggeries and to be well established in the export markets, with an added objective of possibly processing our own pork products in the future.”

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Quality, Reliability, Nutrition BJK Industries has evolved from one client serving one industry, to 53 loyal customers across three key domains, as it also branches out from its South African base to explore unlimited opportunities on the continent Writer: Matthew Staff • Project Manager: Joshua Mann

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ver the next 12 months, BJK Industries will be celebrating its 20th birthday, representing two decades of life at the top of South Africa’s import, manufacturing and distributing sector for the pet nutrition, livestock, pharmaceutical and aqua feed ingredients industries. Founded in 1997 by the then Tiger Brands Procurement Manager, Brendhan ‘Jock’ Kannemeyer, BJK was formed in collaboration with the globally renowned brand as a specialised outsource procurement agency to manage the influx of specialised essential ingredients to the organisation. Nearly 20 years on, and BJK’s customer count now stands at 53, highlighting the quick impact that the

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business has made in proving itself on the national and international stage. October, 2015 has more recently seen 50 percent of Kannemeyer’s Company sold to Leo Group UK, a world-leading producer that specialises in processed animal proteins and fats; the trading and distribution of which being BJK’s main business. Kannemeyer, the Company’s Chairman says: “Throughout the Company’s evolution the main continuous improvement strategies and philosophies have been around branding, quality, reliability and structured strategic partnerships with our suppliers and customers; and our focus on quality, reliability and nutrition especially ensures that the best ingredients are delivered directly to your factory door, in full, and on time.

“We currently service the pet food, animal and aqua feed manufacturing industries in South Africa, Zimbabwe, Zambia, Mozambique, and Nigeria and continue to focus on, and expand into, the sub-Saharan and West African markets.”

Leading supplier

Incepted with a view to source critical ingredients for several leading food processing factories throughout South Africa, the aforementioned geographical expansion that has occurred is testament to the positive reputation consequently formed in the sector, and represents a rapid overall rise to prominence for BJK. “A rapid transformation over the next three years [after 1997] with BJK investing in cold storage facilities, refrigeration equipment,

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DARLING INGREDIENTS SONAC adds substantial value to your business and helps you to reduce costs SONAC supplies worldwide natural animal proteins for poultry and aqua feed. With an active R&D programme, reliable processes and proven results, SONAC offers you high quality, natural ingredients. Due to the high biological value and great amino acid patterns of the proteins, its ingredients can be used to replace an important part of the fish meal in (aqua) feed diets.

Interested in cost reduction of your application? Contact Mr. Herbert Samsom T: +31 6 22 48 72 52 E: herbertsamsom@sonac.biz Developing an international supply network of sustainable products from audited and approved facilities

warehousing and vehicles broadened our scope of activities and entrenched our position as the leading supplier of animal proteins to the pet food manufacturing industry,” the Company recalls. “Our focus on local production and development of an international supply network of sustainable products from audited and approved facilities supported our expansion into the livestock and aqua feed industries across the African continent. “Our global reach and infrastructure enables us to always meet your pet nutrition and animal feed requirements.” Continuous and ongoing investments into BJK’s core consideration – the quality of its product range – subsequently manifests in the form of new additions to the range, and substantial investments across its internal infrastructure. Kannemeyer continues: “BJK has made substantial investments into high-tech stock management systems,

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Our global reach and infrastructure enables us to always meet your pet nutrition and animal feed requirements

www.sonac.biz warehousing, distribution vehicles and, most recently, plant and equipment for local manufacture. Through our partnership with Leo Group we have access to the world’s best technology, production and technical assistance.” Combining all these facets with a dedicated and extensive supply chain management strategy ensures that the optimum internal structure is in place to produce and deliver the best possible array of products on an external level. Within its pet nutrition division, BJK imports, manufactures and distributes valuable and essential ingredients for the production of dry pet food as well as canned and sachet pet food, promising clients the healthiest and tastiest option each time via the natural ingredients it continually sources during the procurement phase. Within the livestock and aqua feed range, BJK is renowned for its categories across proteins, animal fats,


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oils and minerals, while finally, in the pharmaceutical ingredient domain – in which BJK has been a partner for many years – “some of our natural ingredients are processed to isolate base elements used in medicinal and dietary requirements, such as the extraction of enzymes from animal organs and omega 3 fish oils”, the Company explains.

Continuous improvement

To achieve such reputable and successful operations across an increasingly wide geographic footprint, the logistics of BJK’s setup have become more and more important over the years, with its head office in Cape Town more of a figurehead for the numerous facilities that follow intow, rather than the one-stop shop it could originally perform as. Factories just outside of Johannesburg, Stellenbosch address rendering and plate-freezing facets of the highly refined process, and are compounded by equally important cold storage facilities in Montague

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Continually sourcing natural ingredients during the procurement phase


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We have two purpose-built eight-tonne vehicles and a 32-tonne taut liner dedicated to our northern distribution

Gardens and Pretoria; tonnages included in each rising as demand increases. “Our primary cold storage business with a capacity of 1,300 tonnes is based in Montague Gardens where we have two purpose-built 16-tonne vehicles dedicated to our Western Cape distribution, while our facilities in Pretoria include BJK offices, a 600-tonne cold store, and two warehouses with a total floor space of 1,500 square metres. We have two purpose-built eight-tonne vehicles and a 32-tonne taut liner dedicated to our northern distribution,” the Company

BJK’s logistical capabilities have become more and more important over the years

details. Rounding off the logistical efforts is a 700 square metre warehouse in Graaff-Reinet dedicated to the bulk off-loading, bagging and storage of as much as 900 tonnes of BJK proteins; all combining to complement a distribution network which is being updated and added to on an increasingly frequent basis. “BJK is all about our staff,” Kannemeyer emphasises. “We have a staff turnover of less than two percent, an average service of more than six years and BJK senior management and directors boast more than 10 – and in some cases, 15 – years with the Company. “Training and continuous improvement are high on our agenda and 90 percent of our promotions come from within the Company and we only employ local people.” Once again, and ultimately, this contributes to the levels of innovation, customer service, flexibility, quality and reliability that Commercial Director, Ricardo Louw lists as being BJK’s key market differentiators, and is also compounded by a Quality Assurance Programme that further guarantees customers the highest standard of ingredients.” Kannemeyer concludes: “The Company enjoyed 17 years of continuous growth until our first flat year in 2015. We now expect to achieve significant growth and expansion year-on-year for the next three-five years.”

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Passionate

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Reacting to market trends with the launch of new products has seen Dickon Hall Foods rapidly increase its reputation in Africa’s FMCG’s market Writer: Emily Jarvis Project Manager: Joshua Mann

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y aligning its service offering with wider Libstar Group’s core values, Dickon Hall Foods has strengthened its market position to become a one-stop shop provider for fast-moving consumer goods (FMCGs) in the retail, wholesale, out-of-home and industrial sectors. Celebrating 25 years of operating excellence in the food industry as one of the first subsidiaries to be acquired and subsequently housed under the Libstar banner, Dickon Hall Foods continues to place innovation at the forefront of its activities, inventing new and exciting products to a worldclass standard. This has long been a focus for the Company’s Managing Director, James Parkin. Supplying and manufacturing a diverse range of condiments, chutneys, salad dressings, mayonnaise, spreads, savoury dips, and sauces and marinades from its Southern

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Johannesburg facility in Southdale, Dickon Hall Foods proudly upholds a portfolio of more than 250 products available in both bulk and retail pack sizes; running at an annual production capacity of 25,000 tonnes. As the contract manufacturer for a whole host of multinational names including the likes of Nestlé, Tiger Brands, Nandos, Unilever and McDonalds, the Company has built a reputation as the trusted partner capable of “delighting and exceeding the expectations of key consumers, customers and their shoppers in selected markets in Africa and beyond”. Alongside this strong portfolio of branded products, Dickon Hall Foods has also been producing its own range of quality goods that the Company hopes to enhance by exploring growth opportunities in selected categories and markets. “Dickon Hall Foods is proud of its 25 years’ operating experience in


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the food industry, where it excels in contract manufacturing for leading food manufacturers,” confirmed the Company.

Value-add

More recently, and thanks to its rapid export-led growth strategy in selected African markets with a view to extend its presence, Dickon Hall Foods has added three additional divisions which each target a different set of products. Retailer Brands, Pasta Nova and Noodle Master were all established to capitalise on the increasing demand for new types of goods and to accelerate the Company’s innovation; while enhancing the business and creating further value for customers. “Libstar offers its customers a wide range of products with the convenience of a single supplier with a nationwide presence, and distribution and manufacturing capacity,” commented the Group.

Retailer Brands produces a wide range of dry food products including instant soups

With the objective of creating consumer, shopper and customer demand, our focus is on innovation...

From its 28 business units that operate nationally across 31 sites, Libstar drives operational and supply chain excellence in order to deliver low-cost, quality products and services that offer the best value to customers across the continent. With the slogan, ‘everyday flavours that make South African home cooking taste like home’, Retailer Brands manufactures a range of dry food products including soups, jellies, spices, baking aids, custard powder, colourants, essences and sauces under

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private label brands for the retail and wholesale trade in South Africa. Formed in January, 1995 with the goal of manufacturing food products under private brand labels for the retail and wholesale trade in South Africa, Retailer Brands operates to world-class standards at its stateof-the-art manufacturing facility in Chloorkop, Gauteng, which operates in accordance with Good Manufacturing Principles as approved by the prestigious American Bakers Institute. Furthermore, its quality control assurance programme ensures that high quality standards are consistently met. Through close collaboration with the Group’s all-important customers, Libstar was able to identify exactly what customers were looking for in terms of value-addition. Two categories that emerged were dried pasta and instant noodle products which gave birth to Pasta Nova and Noodle Master.


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The former produces a wide range of short, long and soup pasta shapes which are supplied to leading retail and wholesale chains, food manufacturers and catering supply companies while the latter principally manufactures and packages instant noodles in a variety of flavours from its state-of-the-art facility in Gauteng. Striving to continue with its expansion and diversification strategy in the next three-five years, Dickon Hall Foods feels that it now has a full portfolio of goods to move into the food service subsector with. This will be a significant area of interest for the Company in the short to medium-term, while retaining its market integrity by “doing business properly, and with solid values”. “With the objective of creating consumer, shopper and customer demand, our focus is on innovation... As a result we will be rewarded with

For all your sweetener needs... Cape Sweeteners, a Division of Tongaat Hulett Sugar South Africa Ltd, specialises in the development and manufacture of intense sweetener blends and bulking agents used in beverages, baking, confectionery, dairy and ice-cream manufacturing industries. The sweeteners are blended into working combinations to meet customer’s requirements. The range includes: Acesulfame K, Aspartame, Cyclamate, Fructose (Crystalline & Liquid), Isomalt, Neotame, Saccharin, Sucralose, Polydextrose, Xylitol, Erythritol, as well as a wide variety of sweetener blends. www.hulettssugar.co.za

Benefits: • A wide range of products • Long standing experience • National sales team, distribution network and technical services • Flexible pack sizes • Reliable, consistent quality • Products formulated to suit customers’ specific needs

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Honest business

sales, profit and value creation for our employees, customers, suppliers, stakeholders and the communities in which we operate,” the Group concluded. By taking positive actions that align with the wider Group’s vision and mission, Dickon Hall Foods will be able to strengthen its ties locally through mutually beneficial partnerships and ultimately secure new long-term business.

Today, Dickon Hall’s products include chutney, salad dressings, sauces, marinades, spreads and savoury dips

Pasta Nova

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Breathing Life

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into East African

aving firmly established itself as the preferred property developer and urban management services firm in East Africa, known for its mixed-use developments and the creation of urban nodes, Centum Investments’ subsidiary, Athena Properties is capitalising on the Kenyan Government’s decentralisation initiative to tap into new real estate

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opportunities. Meanwhile, the Company’s existing significant projects – including Two Rivers mall, the largest retail centre in sub-Saharan Africa, and Pearl Marina, Uganda’s destination of choice for tourists and locals alike – are taking shape as planned; showcasing Athena’s unwavering commitment to developing landmark projects that incorporate global best practices. “Two Rivers mall is now ready for

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opening and occupation. The two office towers located at the top of the mall are in the final stages of completion and we are extremely pleased with progress of Phase 1 so far and are keen to push-on with Phase 2,” says Chris Ochieng, the Company’s Managing Director (MD). “Moreover, Pearl Marin Phase 1 is currently under construction with the show cluster scheduled to complete by November, 2016.”


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Deploying its total master plan to accommodate East Africa’s real estate needs, Athena Properties continues to access new and exciting growth opportunities

Estate Writer: Emily Jarvis • Project Manager: Stuart Parker

Chris Ochieng, Managing Director

Construction of the entranceway facade of the Two Rivers Mall during the first quarter of 2016

Tangible wealth

Securing these high-calibre flagship projects was thanks to both Athena’s passionate workforce and alignment with the Company’s core values to create long-term value and sustainable, tangible wealth for clients and stakeholders. As one of many regional real estate giants stepping up to the plate to answer East Africa’s call for an end-to-end seamless construction service – comprising land acquisition,

master planning, urban planning, project management, construction management, development management and project finance right through to asset management – Athena is not afraid to push the limits of what others deem impossible. “We are the best because of who we are and what we value,” highlights Ochieng. “We strive to create an entirely new way of thinking for real estate in the region, doing our part

to put East Africa on-par with the rest of the world. We take a grand vision and breathe life into it.” To drive this grand vision, Athena is advantageously able to leverage the wider Centum Investment Group’s reputation and broader industry perspective of working in international markets to drive real estate opportunities across sub-Saharan Africa.

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FUNSCAPES GROUP

Two Rivers Situated on 100 acres in a prime Nairobi location, Two Rivers is a new urban node currently under construction that is set to become Kenya’s financial hub, business and residential location of choice. Aligning with digital transformation trends, the development will have a Tier 4-ready data centre that will provide collocation services, hosting, network and security services, and universally consistent operations. The data centre is more than 90 percent complete with testing currently underway “The relationship between Centum and Athena is built purely on the principles of synergy and leverage. Centum is a reputable investment Company in East Africa that has participated in sealing multimillion investment deals across East Africa, Middle East, parts of Europe and East Asia. There is synergy between the Group’s other subsidiaries which also present opportunities. For example, NABO Capital, Centum’s asset management subsidiary has been known to help Athena secure structured funding for its projects,” he further explains.

in the mixed-use sector. “Consumer spending has gone up by more than 65 percent in recent times, making Kenya one of the fastest growing retail markets. This is an attractive figure for both local and international retailers who are beginning to look for the best malls and geographic locations to set-up shop,” says Ochieng. “And growth is not just in the cities, it has spread beyond into the satellite towns outside Nairobi, which now also present opportunities for retail expansion.” In line with this, Athena has indentified that more can be done to strategically plan future urban Master planning nodes and mixed-use developments in the region; which is where the Given Kenya’s status as the second Company’s premium master planning biggest formal retail market in Africa, owing to the increased urbanisation skills come into play. The MD details: “We are moving in to fill these gaps and continuous growth among the middle-class, local real estate continues by bringing our all-encompassing offering that makes us stand out from to be a lucrative area that presents opportunities for expansion, especially the competition; like tackling the

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unscapes Group – consisting of Funscapes FZC, UAE; Funscapes India Pvt Ltd; and Funscapes Ltd Kenya – is a one-stop shop for entertainment, indoor family entertainment centres (FEC) and outdoor amusement parks. Services include creating feasibility studies, and designing, building and operating entertainment centres, amusement parks and standalone attractions. Formed by a Group of leisure industry professionals with years of experience from around the world, Funscapes has built a name for itself for not only setting up, designing, building and operating amusement parks and family entertainment centres, but doing so in a profitable way. What sets Funscapes apart is the Company’s ability to operate the facilities upon completion of the building phase, where projections are not only made a reality, but the best standards of operations are maintained to ensure optimum sustainability and profitability for the centres. In Kenya Funscapes already has three FECs operating and has introduced the first planetarium, the first 7D interactive ride, and a series of family rides within the confines of a mall. At Two Rivers, Funscapes is building a small outdoor park around the waterfront that will include a flume ride, a dancing fountain with a laser show, bumper boats and an interactive water play area.

Funscapes prides itself in incorporating the latest technologies and, in the levels of service standards it adheres to, the best experience possible for the families that visit the centres regularly.

www.funscapes.net


www.funscapes.net

Funscapes offers a complete solution for setting up, designing, building and operating amusement parks and family entertainment centers. We not only make our projections a reality but also see the best standards of operation are maintained and the centers are sustainable and profitable.

UAE Funscapes FZE, UAE P.O.Box. 16589 T: +971 - 501541047 +919 - 967887595 E: sanjaychakraborty@funscapes.net

INDIA Funscapes India Private Limited 12/90, Unnat Nagar-3, M.GmRoad, Goregaon (w), Mumbai - 400 062, India T: +91-22-28771872 / 73

Kenya Funscapes Limited 2nd Floor, TRM Off Thika Road Highway Nairobi, Kenya


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additional infrastructure needed with a growing population such as healthcare centres, schools, recreational facilities and so on. “Our strategy is to acquire land, conduct a feasibility study, master plan it, obtain approvals then put up developments that lift the value of the land and attract more developments. This has been successfully achieved at Two Rivers and Pearl Marina so far.” With earthworks scheduled for the fourth quarter of this year, the Company’s latest project in Vipingo is to put this master plan to the test once more. The exclusive, mixed-use 9,500 acre coastal city will be anchored by industrial development and supported by high quality infrastructure. “Already dubbed a future economic hub, Athena’s objective is to develop the most competitive/lowest cost location for doing business in Kenya,” explains Ochieng. “Phase 1 will provide serviced land with complete connectivity to a reliable state-of-theart trunk infrastructure to serve the development.”

Already dubbed a future economic hub, Athena’s objective is to develop the most competitive/ lowest cost location for doing business in Kenya

Pearl Marina Phase 1 Set to become Uganda’s tourism, business and residential destination of choice providing state of the art facilities and an urban experience, Pearl Marina will integrate world-class premium facilities supported by high quality centrallymanaged infrastructure. The development is being constructed in phases and when complete it will have an estimated built-up area of 1,450,000 square metres Capacity building

In preparation for the continued growth and demand for infrastructure in East Africa, Athena has been investing in its internal capacities to engage the youth of tomorrow in the future of real estate. Aligning with Centum’s capacity building strategy, the Company has absorbed more than 12 graduate trainees since establishment in 2013. “This is done with a lot of guidance, mentoring and

monitoring,” Ochieng emphasises. “I am happy to report that some of them are now lead project managers and competent leaders in their areas of specialty.” Crucial to its line of business, Athena has in-house engineering capabilities which are continually improved through training and secondment programmes so that staff are exposed to emerging trends and international real estate markets.

Aerial view of Two Rivers during construction in mid-2015

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Combining its strong project pipeline with these strategic internal investments, Athena is in the right place at the most fortuitous time in East African real estate history. “We have a lot on the cards and I believe that in a year’s time, we will be rolling out Phase 2 of the Two Rivers development – which will include luxury and branded apartments and development of a five-star hotel – and at Pearl Marina, we hope to begin delivery of apartments, a hotel and a residence club. Meanwhile, Vipingo’s trunk infrastructure, healthcare centre, vocational centre and social amenities will be under development,” Ochieng concludes. “We will continue to focus our attentions on Kenya and Uganda, however, we are keeping a close-eye on emerging opportunities in Tanzania and Rwanda; with the ultimate longterm vision of operating across the whole of sub-Saharan Africa.”

Corporate citizen As part Athena’s efforts to enhance local knowledge and learning, the Company has joined hands with its partners at Two Rivers and Nairobi City County to rebuild Mathari Primary School; which will see more than 700 children access a better learning environment. So far, Athena has completed the construction of 36 classrooms, a library and an ICT lab.

Chris Ochieng (left) explains the master plan for reconstruction of the Old Mathari Primary School to Nairobi Governor, Evans Kidero (centre-seated). The school will have more than 32 classrooms, an administration block, social hall, stocked library and computer labs. It will serve more than 1,000 pupils

Furthermore, in Vipingo, Athena is to take part in an initiative to develop vocational training courses for the local youth in a bid to enhance their future employment opportunities in the construction industry

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Accommodating an

AFRICAN Transformation STAG African believes that innovation can solve most of the world’s problems, and continues to put this notion into practice via its guiding principles and a dedication to local enrichment in making student accommodation affordable Writer: Matthew Staff • Project Manager: Stuart Parker TAG African’s dream of becoming the most innovative green Company on the African continent is well on its way to fruition following the completion of numerous projects ingratiated into its core model, while diversifying into myriad adjacent sectors through the optimisation of its guiding principles. Established in its current guise in 2008 as an organisation committed to producing more affordable student accommodation in South Africa, the pillars on which this vision was built incorporated sustainability, flexibility, technology, innovation and community. With affordability the umbrella keeping all of these facets aligned, STAG African soon made a name for itself in bringing much needed efficiencies and cost savings to a country having somewhat of an accommodation crisis. Education was required in most

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cases, and it’s not to say that the crisis is over, but STAG African, guided by its driven Managing Director (MD), John Schooling has certainly succeeded in making affordability and green solutions mainstream, with numerous opportunities both home and abroad being formulated as a consequence of these initial achievements. “It’s still a crisis in Africa as a whole with most students not able to afford the true cost of student accommodation and all of its operating costs,” he affirms. “Our new approach provides a sustainable solution guided by expectations of our own markets and bridging that gap to the expectations of universities and the current costs of student accommodation. “Our eight guiding principles can combine to drive affordable student accommodation, based on principles of the 21st century student lifestyle. Through these principles – namely innovation, sustainability, flexibility,

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technology, community, affordability, job creation and leveraging of grant funding – we’ve already shown we can bring down the average price per bed from R344,000 to 150,000 and operating costs from R20,000 to R10,000.” The latest challenge for STAG African following this long-established realisation in accordance with South African statistics is that the same figures may not apply in neighbouring nations, where the Company has been focused on spreading its influence to. In Lesotho and Zambia, for instance, the chasm between current accommodation costs and student affordability is even wider, requiring a more drastic approach by STAG African in order to find a solution.

to help unemployed youth find sustainable jobs.

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“In these examples, we’ve been able to access large amounts of grant funding to take capital costs down to zero and leaving only the operating costs and student fees to pay for,” Schooling explains. “That’s been our biggest advance in the past year; last year we were building the perfect residence for students based on affordability, but as we’ve gone into Africa we’ve realised that affordability is dependent on the country, and that

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even though we were building the best student accommodation we could, it still wasn’t affordable. “So we needed assistance and that’s’ where we’re working at the moment, working with people all over the world willing to find money to take our principles to other countries.”

Flying the flag

So far, as much as $160 million has been raised in grant funding and


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has subsequently been targeted towards some of the most technologically advanced and greenest student accommodation projects ever seen in these countries. Result-wise, this means that the Company can look towards a rise from 1,200 completed beds a year to as many as 4,000 in the years to come. But more importantly perhaps, it represents a general change in attitude from the general population towards the crisis that STAG African is trying to overcome, and the trends it is addressing in overcoming it. “I think it’s the globalisation of the trends,” Schooling emphasises. “In South Africa, we were promoting the idea of sustainability at a time when it wasn’t the popular buzzword. It was a battle. “But now the trend has overtaken us and we need to rise to it. The protocol and the commitments around the world to reduce our total carbon emissions and things like that have become a reality. Five years ago, when we started, no-one was interested, but now everyone’s aware of it and everyone’s doing it. It was exhausting flying the flag on our own, but the education phase seems to have been completed at least.” This awareness now provides a readymade platform for STAG African to unleash its innovation and expertise with systems and processes that tick all the boxes expected from 21st century construction. Houses can now be

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We are a commercial & industrial building contractor based in the Eastern Cape, South Africa and our philosophy is to deliver a good quality product and service to our clients.

We are proud to be associated with Stag Property Developers Dewing Construction 4 Ray Street, Eureka East London, South Africa, 5200 Tel: 043 743 6479 Fax: 043 743 5908 andrew@dewingconstruction.co.za

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completed in less than a day, and the concept of green possibilities evolving into green jobs and green skills is aiding not just each individual project, but each country’s infrastructure as a whole. “We want to take the minimum number of people per solution and it’s much less expensive to use local labour so you don’t need to bring people from far and wide to Africa,” Schooling says. “You need a level of expertise to transfer the skills to the local people but once they are up to speed, it will be much more cost effective in future years to have local artisans with green skills. “We are continuously looking to pioneer and to innovate in order to get costs down, and to do that, the principles always remain the same in addressing both space and cost. For example, we’re not just looking horizontally but vertically in our designs now and are continuously interacting with our markets to see what they need and to then apply our solutions and innovations to those needs.”

Applying its solutions and innovations to individual market needs

Win-win basis for Africa

Continuously innovating to keep costs down

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Not only looking for expansion in terms of geography, there has been a similar realisation within the business that those same core principles can be spread wider in terms of sector diversification as well; an idea that has been driven by accolades such as being awarded the greenest residence in Africa through a recent Cape Town project, and one compounded by a more concerted drive into the development of biomass solutions and renewable energy projects. “Basically we’re being called upon to find more and more solutions in new spaces, and that really excites us,” Schooling adds. “Africa is in a really, really good time and space in terms

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of developing things and for them to quickly become a reality. “Green solutions may still be new in a lot of African countries, but the continent is keen on it and there is a high level of acceptance of these new innovative systems.” In both meeting these fresh requests and requirements while simultaneously boosting numerous social issues in the form of youth unemployment, internal economy building and domestic trade, STAG African is ensuring sustainability far beyond the confines of its constructs, and Schooling is as dedicated as ever to continue meeting the needs of a continent. “We’ve come full circle and are now back to where we believe we can


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Ensuring that student accommodation is affordable

John Schooling, Managing Director

solve problems, as well as address the biggest social problems,” the MD concludes. “Product development and manufacturing can be brought back to Africa, youth unemployment can be reduced and as soon as the market in general becomes big enough to sustain a local ethos, then it will do. “The learning curve has been steep and interesting in Africa, but internalising is an important concept, and if it’s possible to address the student accommodation crisis using world-class technologies, innovation, flexibility and sustainability – while at the same time employing local people and working with local suppliers – then it’s a win-win basis for Africa and by solving one crisis, we can help solve other crises too.”

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Realising a

VISION There aren’t many oil & gas operators around the world looking towards rapid growth, but Kenya Pipeline Company’s ongoing commitment to national enrichment has led to a positive 12 months of development en route to Vision 2025 Writer: Matthew Staff Project Manager: Eddie Clinton

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the Company’s most significant. “2015-16 was a year of many successes and challenges for KPC,” affirms the Company’s Managing Director, Joe Sang. “From a strategy perspective, we finalised and started by implementing our 10-year Corporate Strategic Plan, dubbed Vision 2025, which envisages our turnover growing to KES 150 billion and pre-tax profit to KES 80 billion by 2025. “Financially, our 2015-16 accounts are currently being audited, but we are confident we met our targets.” Completing the Sinendet-Kisumu pipeline and the leasing of the Petrocity Oil Depot in Konza over that time period, as well as advancing substantially on the landmark Mombasa-Nairobi pipeline project has ensured a natural continuation of its core objectives; and have been compounded also by a general broadening of the organisation via a more refined human resource and remuneration strategy, heightened shareholder engagement procedures, and perhaps most importantly, a more extensive model for engaging with customers.

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Sang explains: “We embarked on a major exercise to engage our customers, the oil marketing companies, who previously felt we took them for granted, and who were slowly starting to move away to rail and road transport alternatives. “We have stopped this customer drift away from KPC by working with our Parent Ministry and other Government agencies and have also started clawing back export markets through the removal of bottlenecks. “We now have a series of focus areas for 2016-17 that will translate into massive opportunities for advancement, training and career enrichment for staff as we transform into Africa’s premier oil & gas Company.”

Flagship projects

Complementing the Company’s revenue and employment successes over the past year has been a geographical expansion in line with its Vision 2025 goals, and an improvement in KPC’s industry ranking as a result

of its efficiency, reliability, safety and cost effectiveness. Ultimately though, the best gauge of the organisation’s prominence has been the projects themselves. “First and foremost is the new Mombasa-Nairobi pipeline which is a national Vision 2030 flagship project to replace the current 38-year old pipeline,” Sang says. “Due to cost about Kshs 48 billion, the line is a 450 kilometre 20-inch diameter pipeline complete with four new pump stations in Changamwe, Maungu, Mtito Andei and Sultan Hamud, and two booster pumps in Kipevu. “It will have an installed flow rate for Phase 1 of one million litres per hour by 2017, Phase 2 is 1.9 million litres per hour by 2023, and Phase 3 will be 2.6 million litres per hour by 2044.” Currently 50 percent complete, the landmark project will not only bring unprecedented volume and capacity to the country but also new, innovative and more sustainable construction techniques to ensure long-term reliability, safety and environmental

Bottom loading at the Embakasi Depot

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KPC’S 2016-17 FOCUS AREAS Conclude the Company-wide restructuring and job analysis exercise • Meet this year’s financial targets, including: Revenue - KShs 30.2 billion; Profit Before Tax - KShs 13.7 billion; and throughput - 6.5 billion litres • Fully embed within KPC the process efficiency drives we are already embarked upon • Complete all ongoing projects: Mombasa-Nairobi pipeline; additional storage tanks in Nairobi Terminal; Eldoret bottom loading facility • Confirm our role in the crude oil pipeline • Take the lead in the KenyaEthiopia petroleum products pipeline • Decide on and implement our strategy towards Kenya Petroleum Refineries Limited (KPRL) • Get started on devolution of the pipeline network across Kenya • Embark on discussions with neighbouring countries on working with them to develop storage and transport facilities • Ensure the ullage allocation process works smoothly • Work with Government to make the LPG strategy a reality • Get the Morendat Centre of Excellence for Oil & Gas Pipelines up and running • Decisively implant in the public consciousness a new and accurate narrative for KPC: critical, essential, competent, confident •


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benefits, at less operating cost. These same drivers have formed the basis for all of KPC’s operations at present, spanning across the Kshs 5.7 billion, 122 kilometre Sinendet-Kisumu Pipeline which will turn Kisumu into a focal point for oil & gas commerce in the region; the devolution of the National Pipeline Network which is set to generate vital revenue for Governmental sponsors of the project while also reducing the amount of transportation of petroleum projects via the less environmentally friendly road and rail routes; and the acquisition of Kenya Petroleum Refineries Ltd (KPRL) following the exit of former investor, Essar. Sang notes regarding the latter: “KPRL is now 100 percent owned by the Government and there have already been discussions between the Ministry of Energy and Petroleum, Kenya Pipeline Company and KPRL on the acquisition of the KPRL facilities by KPC; the benefits of which would create strategic and operational stocks, facilitate a crude oil export initiative, reduce demurrage costs, expand existing LPG facilities in Mombasa, and establish the city as an oil & gas trading hub for the region.”

Exciting oil & gas future

To ensure the business has an internal structure able to facilitate such high profile and large scale projects, the amount of investments that occur behind the scenes similarly become more grand each year, and the past 12 months have epitomised this notion via a series of technological and facility upgrades. “With the type of business venture that KPC aspires to enter under Vision 2025, the organisation’s internal communication infrastructure, diversified data communication, use of technology and integration of systems for business continuity and mitigation against risk will be a top priority,” Sang emphasises. “We are now

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Inspecting of the now complete Sinedet-Kisumu pipeline

Staff verifying product samples

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Jason Nyantino, Corporate Communications Manager


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Providing innovative and quality ICT and infrastructure solutions. Survey and design Implementation Fibre optic installation Civil works Shankan Enterprises Limited Unit 1, Feil Business Park Mombasa Road, Eastern Bypass Junction P.o.box 44432-00100, Nairobi Email: Vsharma@Shankan.com Tel: 254 020 4402236/ 254 722 527 814

Building & construction Equipment installation ICT solutions Supply & delivery KINDE ENGINEERING WORKS LTD +254 20 2308401/+254 707 151100 P.O. BOX 6911 – OO300 engineering@kinde.co.ke Nairobi, Kenya. www.kinde.co.ke

We are a premium partner with key international ICT security vendors. We give our clients safe computing through solutions that reduce organisation downtime while ensuring information confidentiality and integrity.

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focusing on improving our internal communication infrastructure and diversifying into the data communication sector to create a new revenue stream and also to aid the integration of systems. “In addition, the enforcement of systems through policies, the use of technology as a business driver, and enhancing business continuity and risk management will be part of our strategy this year going forward.” From a facility perspective, the upgrade of the Eldoret Truck Bottom Loading Facility at its Eldoret depot is set to increase loading capacities from 220 cubic metres an hour to as much as 578 cubic metres, while an upgrade to its storage capacities in Nairobi will also be ready by the end of 2016. And ensuring the smooth transition of all of these enhancements is a brand new human resource and restructuring strategy geared towards long-term efficiency and flexibility.

Tel +254 20 2106653, 2113271, 2715407/9 Cell +254 722 331935 Email info@isolutions.co.ke www.isolutions.co.ke

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“KPC is undergoing transformational changes and that is why we are in the middle of a Company-wide restructuring and job analysis exercise with the intent to refresh existing structures, re-equip and re-energise our people, and ensure KPC is fit-forpurpose for an exciting oil & gas future for Kenya.”

An efficient midstream player

A fruitful vision of the industry’s future does not just stop at the organisation’s core projects and internal structure either though, and emanates also into the wider Kenyan communities via a corporate social responsibility (CSR) strand which epitomises the kind of commitments KPC has to its stakeholders, customers and the country as a whole. Sang says: “Our commitment to our stakeholders and improving the quality of lives of communities surrounding our installations is central to our corporate identity. We always endeavour to have a positive impact on society through improving the lives of individuals, groups and communities while at the same time enhancing our corporate image and brand.

Our commitment to our stakeholders and improving the quality of lives of communities surrounding our installations is central to our corporate identity – Joe Sang, Managing Director

CSR donation of an ambulance worth US$95,000 to Marsabit County for the Beyond Zero Campaign

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“For us, reaching out to the communities and contributing to their socio-economic development constitutes our core agenda and over the years, we have supported weaker sections of society by increasing their capacities and potential through various initiatives.” Embracing education, youth empowerment, equal opportunities among women and people with disabilities, health, sanitation, energy conservation, the environment and sporting sponsorships, the KPC fraternity continues to volunteer their skills, time and funds towards community projects as a way of investing in the communities adjacent to the Company’s pipeline network, and forms a vital part of the organisation’s overall ethos looking forward. “Over the next year, we will have completed the Mombasa-Nairobi pipeline, the Eldoret Bottom Loading Facility and the additional storage tanks in Nairobi,” Sang declares, glancing ahead. But perhaps the most important indicator to hone in on is how KPC plans to continue reacting and innovating within the confines of a volatile and – at

Food donation to residents of the Thange area


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present – challenging oil & gas climate. Sang concludes: “The oil & gas sector is changing very quickly and presents various challenges and opportunities to our business. That is why we have to cement our place as an efficient midstream player in the Kenyan oil & gas industry, and strengthen linkages with upstream and downstream players to bring down the cost of energy. “To strengthen our status in the oil & gas arena in East Africa, KPC has set up the Morendat Centre of Excellence for Oil & Gas Pipelines with the aim of developing human resource capacity for partner states in oil & gas pipeline management, and operations and maintenance to reduce dependence on expatriate labour.”

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Reliability, PERFORMANCE

aking waves across Africa and Middle East’s oil & gas sector has become somewhat of a status quo for Regis Holdings Ltd, a Company who has expanded from its South African base over the past 22 years to become a diverse international operator capable of customising its offering to suit the full range of industry needs. Comprising seven divisions within its armoury, the business that initially made a name for itself in the logistics and procurement domain in Southern

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Africa, now boasts a whole host of services within its portfolio; including procurement management, capital equipment, personnel solutions, steel structures, integrated logistics services, drillstem testing, and consulting engineering services. Alone, they ensure reliability and quality difficult to replicate, but together, Regis Holdings ensures it has flexibility almost unparalleled in the wider region. “The Regis Holdings Group of Companies provides procurement, logistics, equipment and recruitment

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services to national and international oil companies, oilfield services companies, drilling companies, product and equipment manufacturers and other oilfield-related contractors,” the Company explains. “We have a highly experienced team of supply chain professionals equipped with all the skills required to service the oil & gas industry across our areas of operations. “Adherence to our founding principles of trust, reliability and performance has made us a key partner for each of our customers.”


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Regis Holdings Ltd has expanded from its South African HQ over the past 22 years to become one of the world’s leading logistics and procurement providers for the oil & gas sector Writer: Matthew Staff • Project Manager: Josh Hyland

Committed to providing the most comprehensive range of services to said clients, this vision is achieved on a backdrop of global influence – a reach which spreads as far as Australia – and a profound understanding of the cultural diversity that exists across these markets. The Company continues: “At Regis, our philosophy is to exceed our clients’ expectations without compromising safety and quality. To ensure that we deliver that quality of services we pursue a programme of continuous investment in the ongoing

development of our skilled personnel and management systems. “We believe that this underlines our commitment to our clients and ensures that Regis will continue to set the standard for service excellence in its field well into the future.”

Contractor of choice

& Van Eck South Africa; bringing a diversification to the business from both an operational and geographic standpoint.

Ingratiated into Regis Holdings Ltd’s subsidiaries are Regis Mozambique, Regis Trading International, Regis Management Services Ltd, DST Australia, DST International, Thomson & Van Eck Mauritius and Thomson

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Consequential migrations into new sectors or service lines therefore come about quickly and without too much overhaul and subsequently have a dramatic knock-on effect on the Company’s attractiveness as a contractor of choice. One recent example of this saw DST International awarded a drillstem testing contract in Mozambique where the Company’s clout in the wider oil & gas industry is perfectly illustrated. “DST International, a Regis Group Company, is proud to announce the award of a drillstem testing contract by Sasol Petroleum on a back-toback basis under Expro Gulf Ltd in Mozambique,” the Company explained in a press release in June, 2016. “The contract requires DST International to provide technical personnel and all drillstem testing equipment required for the testing and will run all openhole drillstem tests as required by Sasol. “As part of Sasol’s continued expansion into natural gas and

the regional energy landscape, it is appraising the area adjacent to the Panda and Temane gas fields in Mozambique. “This contract has a duration of 18 months with the possibility of an extension for a further two years.” In providing drillstem testing services to numerous onshore drilling operations around the world, DST International is able to utilise purpose built self-contained workshops and equipment stores available for

deployment at short notice to even the most remote of sites; emphasising a market stronghold that can only derive from having a parent Group with the largest inventory of such facilities on the planet.

Commitment to renewable energy

Such planetary saturation includes offices or satellite hubs in South Africa, Mozambique, Angola, Mauritius, Australia, the US and the UK, and is the culmination of efforts over the past 22

Regis has demonstrated its commitment to renewable energy by sponsoring a car for ESCP Europe’s Europe Electrical Vehicle Tour Drillstem testing services

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Protecting Protecting your your company’s company’s most most precious precious assets assets Life, Life, Disability Disability & & Critical Critical Illness Illness cover cover in in US$ US$ Savings & Retirement Plans Savings & Retirement Plans E info@ialpcc.com T +230 269 4400 E info@ialpcc.com T +230 269 4400 W www.international-assurance.com W www.international-assurance.com

years that not only include diversifying and expanding, but doing so in a way that reacts to the most pressing industry trends in an often volatile environment. This ethos continues to this day with the Company as committed as ever to fulfilling the current market needs and throwing itself headfirst into any initiatives and projects that will compound its philosophy to this end. The recent sponsoring of the solarpowered Tesla on its European Grand Tour epitomised the most recent of these dedications to the significant renewable energy trend in June, 2016. “Regis has demonstrated its commitment to renewable energy by sponsoring a car for ESCP Europe’s Europe Electrical Vehicle Tour,” the press release stated. “A team from ESCP took three Teslas around Europe from one ESCP Campus to the next to illustrate the capabilities of the Tesla battery technology and promote

An integral part of ESCP’s drive for renewable technology

sustainable transportation, energy efficiency and green technologies. “The London campus of ESCP Europe Business School hosted the launch of the road trip on 12 March, 2016 and the event included the first energy conference in a four-part series taking place in London, Berlin, Turin, and Paris. “Regis also sponsored the ESCP conferences in these cities and is proud to have been an integral part of this ‘drive’ for renewable technology.” Moving forward, Regis Holdings will continue to bridge the gap between existing industry expertise and the foresight towards innovative sector trends to retain its position at the top of the global market. And from an African perspective, its recent discussions with some of the world’s richest and most renowned players in oil & gas promises a similarly positive influence on its home continent for years to come as well.

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Piping Pioneers Helping to address East Africa’s water and sewerage needs for 50 years has put Eslon Plastics in a favourable position to capitalise on new growth opportunities Writer: Emily Jarvis • Project Manager: Stuart Parker

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aving built a name for itself as a leading supplier of uPVC and HDPE pipes and fittings for a significant number of East Africa’s biggest water and sewerage projects, Eslon Plastics is proudly celebrating half a century of operation and is excited for what the future holds over the next few years. With initial shareholdings divided between a multinational group and the Industrial and Commercial Development Corporation (ICDC), Eslon’s current shareholders took advantage of the opportunity to buy-out all the shares in 2004; making Eslon part of the Metro Group of Companies in Kenya. “The Company started with a few pipe extrusion machines and as the market kept growing, more and more machines were added,” recalls Satishchandra Shah, Managing Director. “Today, we have 15 lines of which 11 are for PVC Pipes and four for HDPE Pipes. Our core business is to tender and supply for large irrigation, sewerage and domestic water supply projects in East Africa. Due to the nature of our business, our customers are mainly Central Government, County Governments, water companies and foreign aided projects.” As the oldest existing pipe manufacturing Company in Kenya, Eslon Plastics has established an export foothold in the surrounding region, unlocking new opportunities in countries such as Tanzania, Uganda, Burundi, Rwanda and South Sudan. “Currently, we supply a number of large projects in these areas and we are expecting to see an increase in our business volume with more major projects in the pipeline,” explains Shah. Rated as one of the most reliable and conscientious Companies to do business with, Elson caters to a wide range of sectors including water reticulation, sewerage, irrigation, plumbing and fibre optic.

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Continuous upgrades

Currently, we supply a number of large projects... and we are expecting to see an increase in our business volume with more major projects in the pipeline

Now placing even greater emphasis on the quality of its products, Eslon Plastics has made a series of internal improvements to ensure quality throughout the value chain. “Aligning with our continuous improvement objectives, we have recently installed a state-of-the-art testing laboratory that is manned by professional staff to ensure quality and performance,” Shah says. “Additionally, we have installed a further three production lines over the past 12 months, upping our manufacturing capabilities for PVC pipes from 400mm outer diameter (OD), to 630mm; and from 200mm OD up to 450mm for HDPE pipes.” Adding to its achievements, these upgrades have made Eslon Plastics

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etro Rubber Tubes (K) Ltd has been in operation for more than 20 years and offers rubber moulding and extrusion engineering; while specialising in custom rubber, thermoplastic and rubber injection moulding. Our reputation is built around flexibility, technical ability, customer service and quality. We have the requisite production machinery and equipment, our own mold workshop and expertise; plus R&D which develops appropriate formulations, to produce a wide range of high quality precision parts and components to suit a variety of specialty industrial/machine and consumer applications.

Eslon can manufacture the largest range of pipes in Kenya, made to ISO specifications

the only Company in Kenya capable of manufacturing such a large range of pipes made to ISO specifications. “We try and keep ourselves one step ahead of the market. It has now been a year since the installation of the new machines and enquiries have started pouring in, and we are beginning to see the returns on our huge investment. We have a fleet of vehicles and a very efficient dispatch team to ensure timely delivery of pipes to various sites as well,” Shah highlights. As an extension to its range of PVC and HDPE pipes, Elson can also fabricate large size fittings including long radius bends, tees and Y’s, as well as made-to-order reducers and valve sockets as part of its value-add offering. “Value-add and continuous investments to lead the industry remain firmly-rooted in the Company’s core strategic pillars. On a regular basis, we have been replacing old production lines with new machines and utilising

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On a regular basis, we have been replacing old production lines with new machines and utilising new technologies in order to increase efficiency and improve the quality of our products while keeping in mind our duty towards a cleaner environment

Our extensive chemical and design experience coupled with cutting-edge production methods ensures the components surpass statutory and industrial standards thus providing maximum performance and reliability.

Investing in local staff

new technologies in order to increase efficiency and improve the quality of our products while keeping in mind our duty towards a cleaner environment. These new machines consume less power in the manufacturing process, resulting in a notable reduction in carbon emissions,” he further details.

Infrastructure need

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• Industrial rubber gaskets • Automobile & agricultural mountings • PVC pipe sealing rings • Bus body rubber • Aluminium glazing rubber • “O” rings and “O” ring cords And much more Kenya Industrial Estates, Furfural Street, P.o Box 50- 30100 Eldoret, Kenya www.metrorubberlimited.com | metrorubberltd@yahoo.com | T: +254 202 094 209 | T: +254 738 448 892

Congratulations to Eslon Plastics of Kenya on their 50th Anniversary. We are privileged to be associated with you as a business partner

Satishchandra Shah, Managing Director inspects the Company’s product

project – resolving any technical problems along the way – Eslon is wellplaced to achieve its significant growth aspirations in the coming years. As a founding member of Kenya’s Plastic Pipe Manufacturers Association (KEPPMA), the Company takes quality and consumer confidence very seriously. “Our finance and administration team is headed by a Chief Executive who is a qualified Chartered Accountant by profession. Moreover, one of our directors has a full-time position at our facilities to resolve any queries or issues as quickly as possible. We have experienced staff in all our departments and many of them are sponsored by the Company, at regular intervals, for further training both within and outside Kenya,” says Shah. He concludes: “Businesses around the world are keeping a close eye on the huge opportunities coming from Africa, especially in the manufacturing

Exciting opportunities are ahead

industry. This, combined with the need for infrastructure investment across the continent, presents exciting opportunities for Eslon in the future, which we want to be a key part of.” For more information, visit www.eslon.co.ke.

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Roadmap to Success FOLLOWING A

Change is the only constant for drilling and exploration Company, Geosearch International, having recently moved into Africa’s earthmoving industry to capitalise on new growth opportunities Writer: Emily Jarvis Project Manager: Josh Hyland

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acing an industry downturn in the drilling industry, Geosearch International has focused on consolidating its core operations while also exploring ways to unlock new revenue streams in Africa’s earthmoving industry. Aligning with its 2020 vision – which will allow the business to truly thrive over the next 10 years and beyond – the Company is actively evaluating business opportunities in all regions across the African continent on their individual economic merits. “We must look ahead and understand the trends and forces that will shape our business in the future and move swiftly to prepare for whatever is to come,” says the Company. “Change is the only constant in the exploration and mining industry and we must get ready for tomorrow, today. This is what our 2020 vision is all about. It creates a longterm destination for our business and provides us with a roadmap to achieve success together with our business partners.” Since Sentula Mining Ltd acquired Geosearch and all its subsidiary companies in October, 2006, the organisation has undergone subsequent expansions resulting in the formation of Geosearch International, a name representative of the Company’s operational development across the entire African continent. “Geosearch currently has more than 50 exploration drilling rigs operating on the African continent and employs in excess of 500 permanent staff. Exploration and mining companies have utilised our services across a diverse range of commodities; including platinum, gold, coal, copper, cobalt, nickel and uranium,” explains the Company. Focused largely on exploration and drilling projects in key mining hubs across South Africa, Botswana

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and Mozambique, the Company has retained fruitful business partnerships with the likes of industry giants; such as Anglo Gold Ashanti, Anglo American Platinum, Vale, Debswana, Rovuma, Aveng, Khoemacau Copper and Portucel. With a wide range of services in its repertoire – spanning drilling services, plant hire, earthmoving, rehabilitation services in land filling and clearing, mining services and forestry services – Geosearch International is able to work diligently and safely across the mining, natural resources, environmental, construction and industrial markets.

Wide-reaching opportunity

Monitoring the latest industry trends and identifying the need for earthmoving equipment not just in the mining industry, but to support Africa’s infrastructure-push, Geosearch International has been able to transfer its experience of working

We strive to create value and make a difference to all our stakeholders, to inspire careers and inspire moments of optimism and happiness in challenging times

Transferring its mining expertise into a new business division

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with specialist mining machinery into a new business division. Moreover, the strategic positioning of its head office in Mauritius and the subsequent spread of support functions across the continent – including regional operational offices in South Africa, Mozambique and Botswana – provide administrative, logistical and workshop services for the individual regions. “Our mission, which is enduring, declares our purpose as a Company and serves as the standard against which we weigh our actions and

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About Everard Thompson, CEO Everard Thompson is the Chief Executive Officer (CEO) of Geosearch South Africa/ Buenti Drilling and AguaTerra Lda, (Mozambique and Malawi Operations). Thompson has worked on numerous exploration programmes over the past 40 years in a host of countries during his illustrious career and has been involved in all aspects of managing an exploration drilling business. He plays a key role in the day-to-day operations of Geosearch. He joined Geosearch in 2001 as the Managing Director of Agua Terra Lda and this year, he was also appointed CEO of Geosearch South Africa.


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Working diligently and safely across mining and industrial markets

decisions. We strive to create value and make a difference to all our stakeholders, to inspire careers and inspire moments of optimism and happiness in challenging times,” says the Company. “[This means] Sentula Mining Services Mauritius, trading as

Geosearch International, is actively evaluating business opportunities in all regions across the African continent.” Priding itself on exceptional in-house expertise accumulated over more than 25 years, Geosearch International is committed to ensuring high levels of productivity; further demonstrated

through its DTI codes of good practice, broad-based economic empowerment initiatives, and in-house safety, health, environment and quality training. “[Our commitment to social upliftment] is paramount to our business philosophy... [This, and] our rapid response to our clients’ needs, and our supply chain’s ability to replenish and support our operations, has differentiated us from all our competitors,” emphasises the Company website. An ISO 9001, 14001 and OHSAS 18001 certified Company, Geosearch International has all the right elements in place to not only maximise stakeholder returns through strategic consolidation, but to ensure that its people are inspired to be the best they can be. Subsequently, the Company culture and values are trickling through the entire value chain and into partner relationships, securing these all important partnerships in the longterm.

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MANUFACTURING

INDABA

E V E N T

F O C U S

Manufacturing Indaba launches in East Africa MANUFACTURING EAST AFRICA is borne from the success of the Manufacturing Indaba conference and exhibition which is hosted annually in the city of Ekurhuleni, South Africa. There has been a call from South African manufacturers to expand and sell their products and services into Africa and to explore business partnerships and synergies with a focus towards regional integration. Within this context, the Manufacturing Indaba is launching an East African event, to be held on 8 September, 2016 at the Serena Hotel, Nairobi, Kenya. The South African private sector, together with the full support of the South African Department of Trade and Industry will be engaging and networking at Manufacturing Indaba East Africa with a strong trade delegation.  The objective of this inaugural event is to assess major opportunities and

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constraints for the development of the East African manufacturing sector. The event will focus on trade relations between South Africa and seven featured countries; namely Kenya, Tanzania, Burundi, Rwanda, Ethiopia, Seychelles and Uganda. Delegates will explore business linkages and opportunities to supply manufactured products from South Africa to these countries, promoting regional trade. South African manufacturers will have the opportunity to establish a presence, explore setting up manufacturing plants to deliver products and services to East Africa and develop additional markets to grow their South African manufacturing businesses. The event will look at suitable examples from other regions, and draw on these lessons to enhance the sector’s contribution to the region’s economic transformation.

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WHEN: 8 September, 2016 WHERE: Serena Hotel, Nairobi, Kenya WEBSITE: www.manufacturingindaba.co.za/ea


Manufacturing across borders into Africa east africa 8 September 2016 Serena Hotel, Nairobi, Kenya

South Africa at Manufacturing East Africa The South African private sector together with the full support of the South African Department of Trade & Industry will be showcasing, engaging and networking at Manufacturing East Africa with a strong trade delegation. The purpose of the engagement will be to: • Foster trade relations between South Africa and the 7 countries (Kenya, Tanzania, Burundi, Rwanda, Ethiopia, Seychelles, Uganda); • Explore business linkages and opportunities to supply manufactured products from South Africa to these countries, promoting regional trade; • Explore South African manufacturers establishing a presence, setting up manufacturing plants to deliver products and services to East Africa; • Develop additional markets to grow the South African manufacturers; and • To explore additional business opportunities for trade.

www.manufacturingindaba.co.za/ea Kenya I Tanzania I Uganda

I Ethiopia I Burundi I Seychelles I Rwanda


WEST

AFRICA

REAL

ESTATE

INVESTOR

E V E N T

FORUM

F O C U S

Unlocking opportunities in West Africa’s real estate sector ACE CORPORATE EVENTS is happy to announce the inaugural West Africa Real Estate Forum, set under the theme of unlocking opportunities in West Africa’s real estate sector.

WEST AFRICA REAL ESTATE INVESTOR FORUM

E V E N T

September 23rd 2016

D E TA I L S

Africa’s rapidly growing property markets are attracting increased interest from international investors, developers and occupiers. It is a particularly lucrative and profitable sector across West African countries, from Nigeria to Senegal and everything in between. The West Africa Real Estate Investor Forum will bring together business owners and investors with the advisory community to explore opportunities in this high-growth market. Taking place at Dartmouth House in the heart of London’s prestigious Mayfair, this event will host foreign investors who are attracted by the continent’s startling economic and demographic growth prospects and investigating opportunities in African real estate markets. This forum provides a platform for investors, lenders and developers to hear the latest insights on the key challenges and opportunities in West African real estate.

WEST AFRICA WHERE: REAL ESTATE Dartmouth House, London, UK INVESTOR REGISTER: info@acecorporateevents.co.uk FORUM WEBSITE: Dartmouth House, London, UK

WHEN: 23 September, 2016

REGISTRATION OPEN

www.acecorporateevents.co.uk

info@acecorporateevents.co.uk

http://acecorporateevents.co.uk/ index.php/west-africa/ September 23rd 2016 Dartmouth House, London, UK

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REGISTRATION OPEN

KEY KEYTOPICS TOPICS • Market outlook and attractive reasons to invest in West African real estate • Raising investor awareness in the region’s real estate market in the next few years • How best to deal with the limited supply of private housing and the lack of mortgage markets in Africa • Going it alone or finding a local partner? • Where are the best opportunities? • Risks vs. rewards • Inside the market: Nigeria and Cote d’Ivoire


WEST AFRICA REAL ESTATE INVESTOR FORUM September 23rd 2016 Dartmouth House, London, UK

REGISTRATION OPEN www.acecorporateevents.co.uk info@acecorporateevents.co.uk


23RD

AFRICA

OIL

WEEK

E V E N T

F O C U S

Governments and corporate players shaping Africa’s LNG game GLOBAL PACIFIC & PARTNERS together with ITE Group will host the 23rd Annual Africa Oil Week/Africa Upstream 2016 Conference from 31 October-4 November, 2016, at the Cape Town International Convention Centre in South Africa.

E V E N T

D E TA I L S

WHEN: 31 October - 4 November, 2016 WHERE: Cape Town International Convention Centre, South Africa REGISTER: judith@glopac-partners.com WEBSITE: www.africa-oilweek.com

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Africa Oil Week 2016 will once again highlight Africa’s upstream industry with insights, debate and discourse from Africa’s governments, national oil companies, licensing agencies and leading corporate players shaping the continent’s vast hydrocarbon future, providing extensive high-level senior executive networking opportunities for securing new ventures and investment opportunities. For more than two decades, and with a track record of more than 200 events held in and on Africa’s oil and gas game, Africa Oil Week is widely recognised for forging corporate and state relationships across Africa and beyond; driving direct/foreign investment into Africa’s upstream landscapes. Africa Oil Week/Africa Upstream Conference stands apart from all other events that sits at the top of the global oil & gas calendar. You’re only inside Africa’s oil and gas game, if you’re at Africa Upstream 2016.

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ATTENDEES Attendees can:CAN • Gain knowledge from an outstanding programme of more than 130 top-line speakers • Negotiate deals and farm-in/out opportunities with corporates and state oil firms • Meet 40 governments and participate in emerging acreage/ asset transactions • Discuss ventures with banks institutions, institutional investors and financiers • Network with Africa’s growing service and supply industry operators and firms • Meet 160 exhibitors and more than 1,000 senior executive delegates • Hear from top corporate and state decision-makers, leading thinkers and policymakers


Organised By:

Cape Town, 31st October - 4th November 2016 Total, Tullow Oil, ExxonMobil, BP plc, Ministry of Energy and Mineral Development - Uganda, Oando plc, Petroguin-EP, Petrosen, Pluspetrol, Eni Spa, Maersk Oil, FirstEnergy Capital LLP, Ministry of Petroleum, Energy & Mines - Mauritania, Agence de Gestion et de Coopération entre la Guinée-Bissau et le Sénégal, ONGC Videsh, Ministry of Mines - Ethiopia, PetroSA, Impact Oil & Gas, U.S. Department of State, Galp Energia, Richmond Energy Partners, SacOil Holdings, Lekoil, Shoreline Natural Resources, Moni Pulo Ltd, Rhino Resources, Petroleum Agency SA, JOGMEC, Velocys, Kalahari GeoEnergy Ltd, United Hydrocarbon International, FAR Limited, Shell International Exploration and Production, NVentures, Kosmos Energy, Mirabaud Securities, Stellar Energy Advisors, Moyes & Co, Orient Energy Review, Ghana Oil & Gas Service Providers Association, Gulf Reservoir Modeling Technology, University of the Witwatersrand, International Trade & Development - UK, Danvic Petroleum International Corp, Sonangol*, International Energy Solutions, Preng & Associates, Sound Energy, Monetizing Gas Africa, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Petroleum Training and Education Fund (PetroFund), Allen & Overy LLP, Engen, Africa Fortesa Corp, Geological Bureau (Union des Comoros), T5 Oil & Gas, Ministry of Energy and Mines - Eritrea, Ambit Energy Corporation, Woodside Energy, OMV, Oil & Energy Services Ltd, South African National Energy Association, Tower Resources, CGG, Makerere University, ACAS-Law, Ophir Energy plc, Manokore Attorneys, Fugro N.V., CMS Cameron Mckenna, Svenska Petroleum Exploration, Africa Oil+Gas Report, Africa Oil Corp, Mitsui & Co, Ministry of Mines & Energy - Namibia, Petrolin Group, Instituto Nacional de Petróleo - Moçambique, ONHYM - Morocco, Upstream Oil & Gas Newspaper, Ministry of Energy and Petroleum - Kenya, Discover Exploration, RPS Energy, NewAge, PGS, Ministry of Hydrocarbons - Republic of the Congo, Ministry to Presidency of Mines & Petroleum - Madagascar, NAMCOR, Seplat Petroleum Development Company plc, Aker Solutions, Subsea 7, Noble Energy, CNBC-TV Africa, Cairn Energy, Rystad Energy*, Veolia, Africa Energy Corp, Eland Oil & Gas, Bowman Gilfillan, Regalis Petroleum, AziNam, Empresa de Nacional de Hidrocarbonetos de Mocambique, Combifloat, AAPG Datapages, Spectrum Geo Ltd, Sogenal Oil & Gas, ITE Group plc, Global Pacific & Partners

Exclusive Media Broadcast Partner with onsite interviews and panel debates Sponsors

Lead Sponsor Titanium Sponsor

Rhodium Sponsor

Airline Partner

Register: www.africa-oilweek.com | +27 11 880 7052 | +31 70 324 6154


ELECTRICX

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F O C U S

A truly international gathering of power distributors and retailers THE 2016 EDITION OF Electricx will be the largest in the power exhibition’s 26-year history. Comprising more than 3,000 square metres of floor space, the event will be a truly international gathering of power distributors, retailers, consultants, Government representatives, electrical engineers and purchasers from Egypt. Following the major economic conference earlier this year where projects worth billions of dollars were announced, Electricx will provide a platform for suppliers to present their products and services to the companies who have been awarded the tenders for these major projects. Exhibition profile • Power generation, transmission and distribution • Electrical installations, cabling, wiring and lighting • Automation, testing, calibration and instrumentation • Renewable energy, smart cities, micro grid and smart grid • Energy storage systems (ESS) • New for 2016: LED products

Visitor profile: Distributor/agent of products and services, manufacturing, contracting/installation, energy supply, transmission and distribution, consultancy, project management, retail, facilities management, utilities/ municipalities, real estate/community development, and research and development. Exhibitor profile: Power generation, transmission and distribution, installation, regulators, energy utilisation, renewable energy, utility/government, nuclear energy, manufacturers, distributors/agents. The event is co-located with SolarTec, a PV-focused exhibition, and MEFSEC, an exhibition which services the Middle East fire, safety and security sectors.

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WHEN: 4-6 December, 2016 WHERE: Cairo International Convention Centre, Egypt REGISTER: info@electricxegypt.com WEBSITE: www.electricxegypt.com

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Showcasing the latest solar technologies from local and international markets IN RECENT YEARS, Egypt has been attracting the attention of major international solar energy developers and investors. In the next few years, the country is due to install more than 6.5GW of solar power capacity with investments totalling more than US$30 billion. Solar-Tec exhibition, co-located with the 26 year old Electricx exhibition, attracts thousands of regional utilities and regulatory authorities, leading developers, contractors, consultants, system integrators, project managers and distributors who are constantly looking to source the latest solar

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WHEN: 4-6 December, 2016 WHERE: Cairo International Convention Centre, Egypt REGISTER: info@solartecegypt.com WEBSITE: www.solartecegypt.com

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technologies from both the local and international markets. The exhibition is a key platform for leading international manufacturers who have been awarded tenders for major projects in the country. New at Solar-Tec 2016 • Dedicated solar hall with leading international brands and more of focus on manufacturing. Exhibitors include JA Solar, JINKO Solar, Conergy, PARU and more. • Prestigious conference highlighting major challenges faced by developers in the region and panel discussions suggesting solutions and best practices. • Knowledge seminars/workshops from key exhibitors who have the market knowhow. • B2B meetings pre-set between regional developers/contractors and international manufacturers. To enhance the knowledge sharing experience and to facilitate business networking, the organisers of Solar-Tec have designed various comprehensive programmes highlighting key project developments and investments in and around Egypt. This year, based on extensive research about the market and current demands, the exhibition and conference will touch upon key subjects like energy storage, both ongrid and off-grid.

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Africa Outlook - Issue 41  
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