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Africa beckons

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Hyprop feels this is the time to invest in Sub-Saharan Africa where many countries are showing good growth

Marikana II

New iron ore mine for Namibia 64

Zep-Re

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Towards a better future

Lodestone’s third phase of drilling at Dordabis commenced in March 10

Amcu warns of more strike action

AFRICA OUTOOK ISSUE 06 A L SO T H IS ISS U E: NuWat e r | L e s i r a-T e q | I n t e r s w i t c h | C o c a-C o l a S a b c o M o z a m b i q u e


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W E L C O M E SA braced for strike wave a year on from Marikana

Editorial Editor: Ian Armitage ian.armitage@outlookpublishing.com

production

August was a dramatic month for the African continent. On the political front, we saw a new leader elected in Mali, Mugabe re-elected (rather controversially) in Zimbabwe, South African union Cosatu axed its General Secretary Zwelinzima Vavi and Kenya signed some huge business deals with China. August has also seen floods ravage Sudan (an escalating humanitarian crisis), a trial date set in the Oscar Pistorius case, and South Africa’s auto industry has been rocked by strikes. And it seems that the motor industry isn’t the only one that has to fear strikes – mining, textiles and construction are all likely to face industrial action in the coming months. Violent wildcat strikes in the mining industry last year cost billions in lost output, dented economic growth and led to damaging downgrades of South Afric’s credit rating. Sadly, and perhaps more significantly, 50 people also lost their lives, many at Marikana. A year on, little progress has been made and the families are still awaiting justice - the Farlam Commission extended to October this year. Analysts predict difficult months ahead for South Africa. This month we look at Marikana a year on and also bring you some of Africa’s most exciting growth stories. From Mozambique’s growing drinks industry to Nigeria’s moves to become a cashless economy, we’ve got it all and Ian Armitage much more. Editor, Outlook Publishing Enjoy the magazine.

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In this issue of Africa Outlook... 06

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NEWS All the latest news from across Africa

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C h i nese l ess o ns Why Africa needs greater transparency to take over as the ‘next China’

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m a r i k a n a II A year on from deadly strikes, SA is braced for a ‘second phase of Marikana’

C o nnec t i n g w i t h t h e C o n t i nen t Partnership building key to success in Pan African markets

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telecoms FOCUS

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Airtel Nigeria Taking a megabyte out of the competition

finance FOCUS

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i n t e r sw i t c h Nigeria’s transition to cashless economy z e p- r e Towards a better future

property FOCUS

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H y p r o p In v es t m en t s Africa Beckons

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa


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mining FOCUS

healthcare FOCUS

L o d es t o ne N a m i b i a New iron ore mine for Namibia

T- S y s t e m s A Healthy Business

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Octea Diamond Group Sierra Leone sheds its image of war and “blood diamonds”

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Q & A : At l a s C o p c o Inside the Swedish mining and construction equipment manufacturer

supply chain FOCUS

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A f r o t eq FM S o l u t i o ns Specialists in the built environment

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fo od & drink FOCUS

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rushing in where copper fears to tread Copper theft has sky-rocketed making the use of copper piping in SA’s plumbing systems risky

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Coca-Cola Sabco Mozambique The untouchables D e Ke u r E s t a t e ( P t y ) Lt d Fruits of Love

manufacturing FOCUS

water FOCUS wisa Profile: Water Institute of Southern Africa

K o r l e B u Te a c h i n g H o s p i t a l Pioneering healthcare in Ghana

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M a r c é F i r e F i g h t i n g Tec h n o l o g y Marcé launches fire station turnkey solutions

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s . a . m . e w at e r Safe water for future generations n u w at e r Leading the way with water

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A m a n z ’ a b a n t u S e r v i ces Water for the people L es i r a -Teq Intelligent water metering

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Amplats confirms job cuts Anglo American Platinum (Amplats), the world’s biggest platinum producer, is to begin laying off an estimated 6,000 workers in South Africa on September 1. Chris Griffith, Chief Executive Officer of Anglo American Platinum, said “We are at a critical stage of the process and this restructuring will be a crucial step to enable us to return to profitability and to focus capital allocations on our mines that are best placed to sustain the business and create employment opportunities over the long term.” “A month`s notice period for affected employees will commence on 1 September. We are very aware of the impact this process has on our employees and we are working hard to finalise the details of our Social Impact Mitigation Plan aimed at minimising the impact on employees and affected communities.” “The implementation of our proposals will help us create stability for the business and we look forward to working constructively with all our key stakeholders during this time for the benefit of all. Once we have restructured the business, we expect to be in a better position to provide more secure employment for our employees and add the much needed value to all our key stakeholders.” The plan, initially put forward in May this year, comes after talks with the government and unions. Amplats - one of several major international mining companies that have been rocked by labour unrest - had first proposed around 14,000 job cuts. The firm, which accounts for

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Mugabe vows “total” indigenisation Fresh from his recent election win, Zimbabwe’s Robert Mugabe has vowed to press ahead with a controversial “indigenisation” policy that will force all companies to surrender economic control to black Zimbabweans. Speaking at a rally to mark Defence Forces Day Mugabe, 89, said: “The indigenisation and empowerment drive will continue unabated in order to ensure that indigenous Zimbabweans enjoy a larger share of the country’s resources.” He called the policy the “final phase of the liberation struggle”. “Now that the people of Zimbabwe have granted us a resounding mandate in the governance of the country, we will do everything in our power to ensure that our objective of total indigenisation, empowerment, development and employment is realised,” he said. Foreign-owned companies in Zimbabwe are already supposed to ensure they are at least 51 percent locally owned, a move that has put off investors. Mugabe won Zimbabwe’s Presidential election ahead of former Prime Minister and Movement for Democratic Change (MDC) leader Morgan Tsvangirai, garnering 61 percent of the vote. He denies opposition claims that the voting was rigged in his favour. News

Keita wins Mali presidential election

almost 40 percent of global platinum sales, said it will aim for production of 2.2 to 2.4 million platinum ounces per year. National Union of Mineworkers spokesman Lesiba Seshoka was “shocked” by the news. “We are shocked. Our agreement with Amplats was to cut 3,000 jobs and those jobs would not be forced retrenchments but voluntary severance packages. This agreement was reached a week ago,” he said.

Ibrahim Boubacar Keita has won Mali’s presidential race. He was up against rival and ex-Finance Minister Soumaila Cisse, who admitted defeat in the second round. Mr Keita, 68, served as prime minister from 1994 to 2000 and will now oversee the rebuilding of the West African state which has been promised some $4 billion in international development aid. International observers called the election a success. “This election, from a democratic standards point of view, is a success,” said the head of a European Union observer mission, Louis Michel. “It is an election that allows Mali now to start finishing the process that it has begun: the return to a normal democracy.” Maintaining peace in northern Mali will be one of Keita’s main priorities.

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News

Oscar Pistorius murder trial set for March South African athlete Oscar Pistorius will stand trial in March next year accused of the premeditated murder of his model girlfriend Reeva Steenkamp. The Paralympic star was formally charged with Ms Steenkamp’s murder on what would have been her 30th birthday at Pretoria magistrates’ court. Mr Pistorius was granted bail in February and denies murdering Ms Steenkamp. The double-amputee fired four shots through a bathroom door at his Pretoria home on Valentine’s Day. He says he shot her after mistaking her for an intruder. The prosecutor in the case said the dates of 3 to 20 March had been mutually agreed for the trial and he handed over details of the prosecution’s case against Mr Pistorius, 26, including a witness list and forensic reports. If convicted, he faces a life sentence with a minimum of 25 years in prison.

B u s i ness

South Africa’s Cell C announces Gauteng network upgrade Cell C, one of South Africa’s a leading mobile providers, will roll out an additional 100 sites in Johannesburg over the next three months to increase network capacity and improve quality, it has announced. The first 19 will be “on air” by the end of August and is “in addition to the existing 959 sites in Johannesburg,” the company said.

Some of the areas earmarked for additional sites in Johannesburg include Sandton, Fourways, Bryanston, Morningside, Soweto and Benoni amongst others. Cell C will also be building an additional 70 indoor coverage sites in Johannesburg and Pretoria. “Traffic on our network has doubled over the past year and we’ve been hard at work rolling out new sites and installing additional capacity to cater for this growth and restore quality,” said Alan Knott-Craig, Cell C CEO. “In particular, the network in Johannesburg and Pretoria has been taking strain. In addition to the new sites, we have also embarked on a project to optimise close to 900 existing sites in Johannesburg and Pretoria to improve coverage and minimise interference on the network in high-density areas. We expect these activities to be completed by the end of November 2013.” Knott-Craig added that Cell C will continue to roll out new sites, upgrade and optimise existing sites and add additional capacity across its network nationally.

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South African mining output slumps in June South African mining production decreased by 6.2 percent year-on-year in June, according to data released by Statistics SA during August. The 6.2 percent drop follows a series of unprotected strikes and violence that has rocked the sector, which has lost R10 billion in production in the past year. Output has also been hit by weak commodity prices and subdued demand from Asia. The largest negative growth rates were recorded for ‘other’ metallic minerals (-38.0 percent), diamonds (-22.9 percent), PGMs (-18.9 percent) and gold (-14.1 percent). The main contributors to the 6.2 percent decrease were PGMs (contributing -4.6 percentage points) and gold (contributing -2.3 percentage points). Iron ore (contributing 2.0 percentage points) was a significant positive contributor. Seasonally adjusted mining production increased by 0.1 percent in the second quarter of 2013 compared with the previous quarter, Statistics SA said.

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lessons C h i nese

Why Africa needs greater transparency to take over as the ‘next China’. Writer Kylie Barton, Ecodesk

According to new research conducted by Wharton Business School, rising production prices in China will force companies to look elsewhere for cheaper suppliers. As a rapidly expanding economy, this trend clearly provides African businesses with an opportunity. But will the continent learn from China’s lack of transparency, something which has dogged the country’s reputation and longer term viability as a reliable supplier? As the global economy shifts towards a model which incorporates increased

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visibility and accountability in supply chains, can African businesses exploit the world’s thirst for transparency to create new business opportunities and a more stable, economic and responsible supply base for world business? The International Monetary Fund (IMF) says that African GDP will rise by at least five per cent this year, compared to the global average of three per cent. As China’s dominion wains due to lack of transparency, higher wages, and a stronger currency according to the report; many commentators are looking to the continent to find the new home for global mass production.

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This has increased the interest surrounding the currently fluid concept of what Africa’s capitalist development looks like. Termed ‘Africapitalism’ by Tony Elumelu (a Nigerian Banker and leader in the African business world who met with Obama in June), the concept is being constructed to include a generous focus on sustainable development and social factors unlike the traditional notion of capitalist development. Far departed from the Chinese model, Africapitalism demonstrates a willingness to not simply ‘develop’, but to innovate - to outdo existing models to ensure that Africa’s presence is sustainable and not simply a flash in the pan.


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Union, an organisation central in the shaping of Africapitalism, UK Deputy Prime Minister Nick Clegg said that African countries Africa is being transformed and is needed to improve now looked to as a great “continent governance, and the world’s of opportunity.” “African countries,” he added, richest nations should help “face a choice between the introduce global rules on economic models of authoritarian transparency… transparency capitalism and liberal democracy... lasting stability depends not just is a powerful tool” on opening up our economies, but creating open societies too. We [UK Government] want to support a safer bet in both the short and the greater transparency; and to publish The model turns the traditional longer term. more G8 government data in an open concept of CSR on its head and It is no secret that Africa suffers and accessible format – so it’s of suggests that growing Africa’s from corruption but so does China, real use to citizens across the world. economy should start with socioIndia and Indonesia. However as Information empowers citizens and environmental concerns and work allows them to take control of their openly to minimise risk for overseas a ‘developing’ nation it still has the opportunity to change this own development.” investors to ensure that the growth culture. Ex UN Chief Kofi Annan who Transparency will be imposed on generated as a result is sustainable was born in Ghana said: “African Africa from the West in one way in the long term. For some, this is countries needed to improve or another. It has already started merely rhetoric. The United Bank governance, and the world’s richest with conflict mineral declarations. of Africa started in Nigeria and nations should help introduce The Dodd Frank legislation forcing now a pan-African business is proof American companies to look into however, that the model is working. global rules on transparency… transparency is a powerful tool.” the use of conflict minerals and the Elumelu says: “We [Africa] are This is a unique opportunity socio-political issues surrounding starting late and there are implicit to ingrain sustainability and their use will filter down the supply benefits to this. People have made transparency into the meaning chain to the smallest of African certain mistakes and you learn from of Africapitalism, to ensure that businesses. It is perhaps only a these mistakes.” businesses who wish to minimise matter of time until this evolves Supply chain risk is one of the risk and ensure continuity of supply into a culture of transparency and results of those mistakes. This year head to Africa. Transparency is is extended to other materials of alone there have been multiple an issue that is at the top of the interest and environment metrics. examples spanning the globe; global business agenda post G8 Pressure from procurement Eastern Europe, Bangladesh, and with members signing the Open departments will only force the Vietnam to name a few. These Data Charter. This states that open issue, as we are already seeing in disasters are the result of a lack of data ‘sits at the heart of a global the UK and U.S. with a number of transparency, and of multi-national movement’ and contains the potential companies making it mandatory corporations being ignorant to the to enable greater accountability, for suppliers to be open about latter tiers of their supply chains. efficiency and growth. These are three sustainability. So the opportunity for Instead of simply relying on a top qualities where Africa could excel African businesses is to be pro-active down solution, this issue must be from the offset by mixing low cost and use transparency as a selling tackled from both sides. African point, a benefit to business, not a businesses have a chance to develop development with transparency to provide international investors with hindrance. This will give businesses in such a way that transparency the assurance that services will have increased confidence in the region starts from the bottom, giving continuity and be low risk. and will go some way to making customers more confidence in the Speaking at an event to celebrate Africa the alternative to a ethical effect of their product or faltering China. business; making investment in Africa the 50th anniversary of the African

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Marikana II

Amcu warns of ‘second phase of Marikana’ in South Africa. Writer Ian Armitage

welve months on from the horror that unfolded at Marikana, are we heading for a second wave of violence? If the rhetoric from South African labour union the Association of Mineworkers and Construction Union (Amcu) is to be believed than the answer is a resounding ‘yes’. Amcu is now officially recognised by Impala Platinum as its majority union and has cemented its position as a serious player in the South African mining industry. And, following the breakdown of the latest round of wage talks between the unions and the Chamber of Mines, which represents major gold companies such as AngloGold Ashanti and Gold Fields, Amcu’s president Joseph Mathunjwa has warned that South Africa is being set up for the second phase of Marikana. Rivalry between Amcu and the National Union of Mineworkers (NUM), a political ally of the ruling African

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National Congress, was a major catalyst in what led to the deaths of 34 mineworkers at Marikana on August 16 last year. The event has left simmering anger against the backdrop of employer-labour relations that are the worst in the world according to World Economic Forum. A year on, the turf war between Amcu and NUM continues and the government is seemingly unable to end or control the unrest, with Amcu infamously refusing to sign a government-brokered stability pact, the Framework Agreement for a Sustainable Mining Industry. South Africa’s Chamber of Mines, Fedusa and Cosatu, and mining minister Susan Shabangu all signed however. “All parties agree that it is important to ensure that peace and stability prevail and that human beings and property are protected so as to create an environment conducive to development,” a statement issued by the presidency said. “Government will act decisively to enforce the rule of law, maintain peace during strikes


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members and gaining seats at the table when it comes to wage negotiations. Although the NUM still has 270,000 members, it is fast losing popularity.

Watershed moment

Commentators believe Marikana, often compared to the Sharpeville massacre of 1960, was a watershed; a turning point that is likely to have a profound and long-term impact on the social and political environment. The saga rumbles on and state officials have angrily rejected Sharpeville comparisons, arguing that Marikana was not a massacre at all, but was a tragedy pitting violent workers against the police, leaving the police with no other option but to shoot. South Africa does have a culture of protest - demonstrations against local government for the failure of the delivery of services like housing, sanitation and electricity and water have become commonplace – but Marikana was different and it has opened up opportunities for political

opponents of both the government and the economic system itself, with Julius Malema making a huge impact - not only by quickly intervening after the tragedy and organising legal representation for mine workers, but also by being barred from the area by police. Malema has a lot of supporters on platinum belt and will be looking to boost his profile ahead of 2014 elections. With the fire being stoked and The Farlam Commission of Inquiry charged with uncovering the truth about the massacre – limping along, the country is facing a challenge to avoid a repeat of last year’s deadly strikes. Analysts predict difficult months ahead. “It’s going to be very tough,” a commentator told Africa Outlook. The Farlam Commission has been extended to October this year. A year on, have we learnt anything? The death of taxi driver Mido Macia seems to show that we haven’t.

and other protests relating to labour disputes, ensure protection of life, property and the advancement of the rights of all.” A few months on, Mr Mathunjwa feels that South Africa might be headed in a lethal direction. “Members from the ANC have been calling us cockroaches... saying we should be sprayed and eradicated. “I am sure everyone remembers what happened in Rwanda when people were called cockroaches and snakes. A million people died,” he said. Amcu is one of the big winners of the Marikana tragedy - if there is such as thing - boasting more than 120,000

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C o nnec t i n g with the Continent

Partnership building key to success in Pan African markets. Writer Nick Durrant Managing Director of Bluegrass Digital Image courtesy of Thinkstock

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telecoms

Image courtesy of Thinkstock

outh African companies have been slow off the mark when it comes to expanding their interests beyond local borders, while European and Chinese enterprises have been establishing infrastructure in some of the continent’s key markets for many years. Yet, with the rapid advance of mobile technology in countries like Nigeria, Ghana and Kenya, Africa is quickly becoming a continent rife with opportunity for local enterprises, particularly those in the digital sector. Digital spend increased by 58 percent in Nigeria alone in 2012, and other territories are demonstrating similar growth. The growth is driven by the gradual move from feature to smart phones as well as the advent of widespread m-commerce initiatives. There’s no doubt that conducting business on the continent is riddled with complexities. In Nigeria, for instance, the business environment is characterised by a lack of trust, meaning that companies need to engage in difficult contractual negotiations and be paid upfront for their services. Entering this type of market unprepared and unaided can spell disaster for small South African businesses with an eye to expansion. So how do these companies go about bridging the gap and establishing a successful and lasting presence in Africa? The key to success in Africa lies in collaboration. Finding a trusted partner on the ground that understands the market not only reduces the hassle of having to negotiate the various cultural idiosyncrasies of an unexplored territory it also exposes businesses to a number of varied and sometimes unexpected opportunities. Rather than attempting to build a client base from scratch, local businesses would be better advised

The lack of specialist digital skills in Nigeria, Ghana and Kenya means that agencies on the ground are now forced to look elsewhere in order to provide the level of service that their clients now expect” to provide their services to locally based agencies, who can then in turn supply these as part of their offering to existing clientele. The lack of specialist digital skills in Nigeria, Ghana and Kenya means that agencies on the ground are now forced to look elsewhere in order to provide the level of service that their clients now expect. As a result, partnership opportunities are plentiful for local companies, who, thanks to internet technologies, can now supply their services without ever leaving South African soil. In fact, it’s no longer uncommon for businesses to be working on a number of high-profile projects in pan-African markets from their hubs in Cape Town and Johannesburg without ever having set foot in the countries in question. That’s not to say that partnering with agencies solves all the problems associated with doing business in Africa. Poor telecommunications systems mean that it’s not unheard

of to lose contact with partners for significant periods of time, something that can prove frustrating for local businesses that tend to take these kinds of things for granted. Yet despite the sometimesunexpected frustrations that form part and parcel of African expansion endeavours, the general consensus is that the rewards far outweigh the intermittent ordeals. With African clients boasting big budgets, and happy to pay in U.S. dollars for the type of world-class service they require, local companies that establish a strong presence in these markets can look to significantly boost their bottom line. Africa’s doors won’t remain open indefinitely. With the continent’s burgeoning business landscape attracting increasing foreign interest and service delivery on the ground constantly improving, South African businesses need to move swiftly in order to make their mark on a continent bursting with opportunities.

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competition Airtel is redefining the data experience in Nigeria and is reaping the rewards – including a 92 percent increase in its internet customer base. Writer Ian Armitage Project manager Donovan Smith

ur pages are littered with investment opportunities. Whether it is opportunities in Kenya’s insurance market or new mines in Namibia, we’ve pretty much covered it all within the pages of Africa Outlook over the past six months. Investors are definitely excited by what Africa has to offer. And they are particularly excited about opportunities that exist within the telecoms sector. To quote the UK’s BT, “it’s good to talk”. Nigeria is one market causing quite the stir and according to U.S.-based research firm Pyramid Research, the rate of growth in Nigeria’s telecommunications industry and a large population are parameters that will continue to make the country one of the most attractive markets to investors in Africa and the Middle East. Pyramid Research is a company that provides international market analysis and consulting services to the communications industry and its study took a five-year look at the country’s telecommunications sector returns, saying that demand profile in the country, both for voice and data services, is high and by far, the largest in Africa. It also identified the sound regulatory regime put in place by the Nigerian Communications Commission (NCC), the industry regulator, as a key factor bringing about and sustaining the growth potential. One of the country’s leading mobile telecommunication services providers is Airtel, a firm that has seen its fortunes transformed and is now close to becoming Nigeria’s second-biggest mobile phone company. Nigeria accounts for 35 percent of Airtel’s sales in Africa. Its market share in the country is now at 20.2 percent. Continued

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Airtel Nigeria celebrates International Women’s Day

What’s that down to? Airtel is committed to “driving positive change” in the nation’s telecoms industry by ensuring a “steady stream of innovative product offerings to the market”, says Managing Director & CEO of Airtel Nigeria, Segun Ogunsanya. “We have redefined the data experience in Nigeria,” he says. Airtel was recently rated the fastest growing Internet/data operator in Nigeria based on a recent study carried out by industry regulator, the NCC. According to the report, covering the period of June 2012 to March 2013, Airtel recorded a 92 percent increase in its internet customer base while another major operator grew only by 41 percent.

Without a doubt this report confirms our leadership position in providing reliable and fast 3.75G network coverage to telecoms consumers across the country”

“Without a doubt this report confirms our leadership position in providing reliable and fast 3.75G network coverage to telecoms consumers across the country, especially as we have the widest data/ internet footprint in the country,” says Ogunsanya. “I must say it is a great feeling that telecoms consumers in Nigeria are beginning to realise that Airtel has the widest and most reliable 3.75G network in the country. I want to specially thank all our customers for the confidence they have reposed on us. As a network, we always feel a sense of constructive discontent; and this will, without a doubt, deepen our resolve and commitment as we continue to provide excellent network and service experience to all our customers.” Continued

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London

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“We are passionate about providing the most amazing hitch-free Internet experience to telecoms consumers across the country.” In the last 12 months Airtel has introduced revolutionary High Definition voice services and a Google cache solution. It has repeatedly been voted the best telecoms brand in the country and at the prestigious eight edition of the Nigerian Telecoms Awards beat other Telcos to emerge the Industry’s Most Innovative Telecom Company of the Year, Telecom Brand of the Year and Customer Friendly Operator of the Year. Leadership newspaper also named it Best Telecom Company of the Year 2012.

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We are passionate about providing the most amazing hitch-free Internet experience to telecoms consumers across the country”

Airtel is determined to make the best services easy and affordable to the majority of Nigerians and make the most of existing and future “opportunities”. “There are opportunities in the Nigerian market,” says Ogunsanya. “We have a strong youth population. The uptake of trendy gadgets is on the rise and there is a huge demand for data just as there is demand for voice. Certainly, high penetration of smartphones is defining the mobile telephony landscape. The transition from voice to data keeps gaining traction and this is changing the game. You must also single out the extreme and huge demand for mobile broadband. The youths are early adopters with a large appetite for mobile broadband.” Continued


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Background Founded in 2003 by Nigerian telecoms entrepreneur Bassim Haidar, Channel IT forms part of the Channel Group, a diverse pan-African company operating in the fields of Telecom and related Infrastructure, Distribution and Power Solutions, and increasingly active in the provision of Value Added Services (VAS) for the mobile industry.

Low Cost Rural Site Solutions- Solutions which Unlock revenues from new subscriber bases, on the edge, or outside the coverage of Operators, at remarkably low investments, and rapid returns

Channel IT is Africa’s largest independent distributor of Mobile Network Services, and is a trusted partner of Mobile Network Operators, boasting a portfolio of both integrated and stand-alone services and products specifically tailored to the region, falling under two broad categories:-

Our Vision Through collaboration with specialised partners, enabling access to leading global technologies, Channel IT aims to provide an integrated service which supports mobile operators in Africa, Asia and the Middle East.

1. Value Added Services (VAS) Airtime Credit service- Offering a convenient recharge facility to subscribers and enabling Operators to retain and support customers Electronic Airtime and Mobile Money PlatformA transaction platform which enables the sales of Electronic Airtime and Mobile Money transactions over POS terminals, mobile phones, ATMs and websites, 2. Mobile Network Infrastructure Tower Supply- Supply, installations and Maintenance of Angular, Hybrid, Rapid Deployment, Guyed Towers Base Station Antennas- Supply and Installation of Top of the Range 2G, 3G, and LTE Antennas providing high quality reception Cables and RF- Installation of Lightweight cost saving aluminium Feeder Cable, Connectors and RF Sub-Systems, enabling Operators to optimise existing infrastructure and ensure faster deployment of network upgrades.

SERVICES PROVIDED: • TOWERS

• MICROWAVE BACKHAUL SOLUTIONS • POWER SOLUTIONS

SIM and Bio Registration (KYC)- Supply of locally appropriate technology enabling an accurate registration process for SIM and Mobile banking • LOW COST RURAL SITE SOLUTIONS • DATA OFFLOADING

A Word from the CEO I founded the company on two principles ‘innovation and delivering value’. Put simply, we have targeted areas where there have been key needs. We encourage our teams to collaborate with partners, combine this with product research, and then bring the idea through from germination through the process of development, and guarantee timely implementation. CIT builds a relationship built on trust with vendors, supplier and operators – and strengthening this through on time delivery of products and solutions. Channel IT is currently investing significantly in the introduction of Value Added Services (VAS) across networks in operational areas, and I envisage that products and services will only form approximately 30% of our revenue in the future, as VAS becomes a core part of our business.

Tel +234 (0) 14 616 716 www.channelit.com

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First class group limited From our humble beginnings in 2002, FCGL commenced operations within the telecoms industry with the sales, installation and maintenance of specialized high precision cooling units Today, we have evolved into a formidable enterprise with footprints in virtually all major telecoms operators and some other reputable institutions both in Nigeria and on the West coast of Africa, where we provide high quality installation and support service solutions to critical data and switch center infrastructure

The company recently completed is Long Term Evolution (LTE) trial operations in Lagos and taken a huge step forward in launching a service that will support faster data speeds on mobile networks. “At Airtel, we pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers across the country,” says Ogunsanya. “Lagos is the commercial nerve centre of Nigeria and with the successful completion of the first 4G LTE trial we are ready for test in the other major cities across the country including the country’s capital, Abuja and Port Harcourt. “The Lagos trial threw up exciting results as data users could open up simultaneous HD Videos on Youtube without buffering. Download speed, under ideal conditions was 37 Megabits per Second (Mbps), while under non ideal conditions, was 32 Mbps; Upload speed was Continued

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These activities include but are not limited to site acquisitions, Turnkey deployment of (prefabs & permanent) data centers, Installation & maintenance support for high precision cooling units, DC power solutions such as inverters and Ups’s, power filtration equipment such as AVR’s, fire suppression systems such as (FM200) etc. In addition, FCGL provides data center monitoring and facility management in several Data Centers throughout Nigeria and beyond

We have a strong youth population. The uptake of trendy gadgets is on the rise and there is a huge demand for data just as there is demand for voice”

With over 160 dedicated staff with diverse expertise and ethnicity spread across 15 states in Nigeria and led by a very responsive and customer-centric management, FGCL is capable of responding very promptly to client’s requests and is recognized widely for its cooling, power, fire suppression and DC facility management capabilities which it can provide at very short notice To deliver prompt and efficient services to it’s clients, FCGL partners either commercially or technically with strategic principals such as Emerson Network Power (SA) (PTY) Limited, LG, DAIKIN etc. FCGL has in recent times worked either as main or subcontractor with some of the following clients namely, Airtel, MTN, Glo, MainOne, GT Bank, Emerson, Ericsson, Lagos State Government and some Federal Parastatals etc. Email office@firstclassgrouplimited.com

www.firstclassgrouplimited.com


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- 10.6 Mbps. Measurement under non ideal condition was done using www.Speedtest.net. This shows our commitment to strengthening our position as a true pioneer of innovation in the Nigerian telecommunications domain in line with our overall corporate vision of becoming the most loved brand in the daily lives of Nigerians. At Airtel, we pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers across the country. At present, we are taking the Lagos success story to other parts of the country so that Nigerians will benefit from this innovation when finally unveiled.” Airtel’s burning passion is to create a new culture of services in the telecoms industry and become the “most loved brand in the daily lives of Nigerians” – its brand promise. Amongst other things, it has deployed mobile device and data

Continued

Commissioner for Education, Cross River State, Professor Offiong E. Offiong and Regional Operations Director, Airtel Nigeria, Godfrey Efeurhobo

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We pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers”


VIRGO SERVICES NIGERIA

Designing, installing and servicing electrical and mechanical equipment

• Fuelling Services • Preventive Maintenance • Air-Conditioning • Lightening • Janitorial • PHCN • Power Utilities • Shelter Maintenance • Emergency Response

For more information pleace contact Adeoye Omololu on 07085340660 or visit www.virgoengineeringservices.com Plots 2,3,6&8 Chief Adeoye Adis Layout, adegbayi Area, old Ife Rd, beside Buso Rock Hotel, Ibadan


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Aviat Networks

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viat Networks, head office at 5200 Great America Parkway, Santa Clara, CA 95054, is

the wireless expert in advanced IP network migration. Aviat Networks is in the business of manufacturing telecommunication equipment for Mobile Operators, Oil & Gas Companies, Network Service Providers and Public Safety establishments. We are building the foundation for the 4G/LTE broadband future. Our Solution Aviat delivers complete wireless solutions to evolve communications networks globally. Our products and services extend from the core to the edge of private and enterprise

experts to its shops to provide customers with data and device solutions to boost their product knowledge and enhance their experience. “This is to provide customers with data and device solutions to boost their product knowledge and enhance their experience on our products and services,” says Ogunsanya. “The ‘Airtel Techies’, a team of tech-savvy young men and women are always on hand to attend to customer queries and concerns at our Continued

networks. Our LTE proven Microwave backhaul solutions provide the most comprehensive IP transport features Commissioning of Airtel’s Adopted School, St. John’s Primary School

of any other wireless backhaul solution in its class. Our key products IP Mobile Backhaul solutions to

Mr Femi Oyewole, Regional Director of Airtel presents gift to First Lady Dame Patience Jonathan

enable mobile operators transform their backhaul networks to meet the explosive growth in new HSPA/4G/ LTE-based mobile broadband data services. Our innovative and marketleading Eclipse™ and WTM® microwave transport solutions provide a smooth migration path from existing TDMbased backhaul infrastructure to all-Ethernet/IP. Our solutions combine scalable capacity architecture to support future traffic growth while delivering fiber-like performance under the toughest conditions. Tel +234 1 270 1923-4 Fax +270 1 270 1888 Email info.nigeria@aviatnet.com

www.aviatnetworks.com

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Aviat Networks, Inc. (NASDAQ: AVNW) is a leading global provider of microwave networking solutions transforming communications networks to handle the exploding growth of IP-centric, multi-Gigabit data services. With more than 750,000 systems installed around the world, Aviat Networks provides LTE-proven microwave networking solutions to mobile operators, including some of the largest and most advanced 4G/LTE networks in the world. Public safety, utility, government and defense organizations also trust Aviat Networks' solutions for their mission-critical applications where reliability is paramount. In conjunction with its networking solutions, Aviat Networks provides a comprehensive suite of localized professional and support services enabling customers to effectively and seamlessly migrate to next generation Carrier Ethernet/IP networks. For more than 50 years, customers have relied on Aviat Networks' high performance and scalable solutions to help them maximize their investments and solve their most challenging network problems. Headquartered in Santa Clara, California, Aviat Networks operates in more than 100 countries around the world.

• All IP Packet Microwave • Hybrid Microwave • Trunking Microwave • Packet Network Synchronization • Network Management Nigeria Head Office Plot 274 Ajose Adeogun Street Victoria Island, Lagos, Nigeria. Tel: +234 1 270 1923-4 Fax: +270 1 270 1888 Email: info.nigeria@aviatnet.com www.aviatnetworks.com


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helios towers HTN was established in 2002 by Helios Investment Partners (HIP), a UK-based private equity fund and is Nigeria’s pioneer independent telecommunications co-location service provider, commencing operations in 2005. By December, 2009 the Company portfolio has grown to over 1500+ sites up from 100 as of 31st Dec. 2007. HTN is the only true co-location company in Nigeria offering Infrastructure sharing, Managed Services and Backhaul. HTN’s customer base includes all Wireless Operators MTN, Zain, Etisalat, Glo, Smile,Spectranet ,IPNX, Swift Networks, Vodacom, Visafone, etc. Value Proposition Speed to market- less than 10 days guaranteed Opex reduction of up to 30% guaranteed Zero tower site Capex investment by 70% Best Industry uptime of 99.99% guaranteed which exceeds the 70% industry average. Benefits Helps customers focus on core business of selling airtime Cost effective site roll-out and management Segun Ogunsanya, CEO, Airtel Nigeria

Improved network Quality of Service (QoS). 24/7 site monitoring through Lagosbased Network Operations Centre (NOC)

showrooms and contact centres. The introduction of Airtel Techie further confirms our customercentricity and innovativeness. It emphasised that the drive to consistently delight customers with best in-class service delivery remains Airtel’s priority as the company exists primarily to meet the expectations of its numerous customers.” “As telecom consumers, especially the youth, increasingly embrace Airtel’s robust 3.75g network that

covers the 36 states of the federation and Abuja, there is a corresponding increase in the use of data-enabled and high-end phones. Naturally, enquiries on data and devices as well as other concerns are on the increase. That informed our decision to provide round-the-clock solutions to customers in this regard.” Airtel is a great place to work, an exciting organisation with a highly motivated workforce, which is “truly passionate about enriching the lives of Continued

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Well programmed Procedures for site issues escalation and response Environmental cooling, site and shelter security Zero regulatory and security concerns. Our passive Infrastructure will reduce Capex requirements of the users and will enhance their financial flexibility and cost efficiency due to reduced set-up and operating costs Tel +234-1-4616349 Email info@heliostowers.com

www.heliostowers.com


Nigeria

Providing site solutions as the heart of wireless operators By providing wireless operators with FULLY-MANAGED tower sites on a leased basis, we deliver the highest levels of QOS and the vast coverage that our customers need to grow ROBUST and EFFICIENT networks. At Helios Towers, we focus all our activities towards meeting and exceeding the needs and expectations of our customers by providing the highest quality service possible in an environmentally friendly manner. We do this through continuous strategic and technological innovation.

Address: 9, Alfred Rewane Street(Old Kingsway Road) Ikoyi,Lagos OďŹƒce Tel: +234-1-4616349 Email: info@ heliostowers.com Website: www.heliostowers.com


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our stakeholders and creating positive impact”, he adds. “Our corporate vision is to become the most loved brand in the daily lives of Nigerians. We are clear in our key objectives as we want to be the preferred by more customers, targeted by top talent and benchmarked by more businesses.” “As a business, our core values include: Empowering people, Being flexible, Making it happen. Being open and humble and creating positive impact. At Airtel, we are connected as a team and we are committed to our corporate vision of becoming the most loved brand in the daily lives of Nigerians.” Airtel invests heavily in CSR and its concept of social responsibility is not limited to a concern with welfare schemes, charity work, or the occasional support for Health, Education, Security/Emergency, Sports, and the Arts. The company perceives and positions itself as an “integral part of society”, which must

swap

As part of our social investment in Nigeria we have initiated a partnership with the Ministry of Education to build and maintain schools, where rural children across the country will be provided free education, free books, and free school uniforms”

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stablished in 2001 in Lagos, Swap is a leading independent owner and operator of

towers for wireless communications companies in Nigeria, with operating subsidiaries in Cote d’Ivoire and Ghana. Its primary business is leasing space on its multi-tenant tower sites to all major wireless operators in Nigeria pursuant to long term lease agreements. In addition, Swap offers site build as well as managed services to wireless operators in Nigeria, Cote d’Ivoire and Ghana. In Nigeria, Swap currently owns and manages approx 700 tower sites across Nigeria and executed one of the largest tower transactions in Nigeria to date, with the acquisition in Dec 2010 of over 400 towers from Starcomms PLC and over 100 towers from zoom in 2009. Swap has over 1,174 tenants

Continued

as at 31 July 2013. For the fiscal period ending June 2012, Swap recorded revenue of USD($) 40 million. Segun Ogunsanya, CEO Airtel Nigeria

Headed by its founder, Mr. Olatunde Titilayo, Swap, with approx. 120 employees in Nigeria, Ghana and Cote d’Ivoire, is led by a highly experienced management team with diverse backgrounds in tower management, operations and deployment, telecommunications services and engineering. Tel +234 1 730 6995 / +234 1 844 9415 / +234 812 221 6081 / +234 803 203 1015 Email info@swap-ng.com / sales@swap-ng.com

www.swap-ng.com

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SWAP

“we share our space...your concerns...”

Setting International standard in Telecommunication infrastructure sharing across AFRICA.

We are a leading infrastructure sharing provider in Nigeria with “Best in class” SLA of 99.9% uptime. We guarantee quick time-to- market, which in turn translates to increased revenue and profitability for our customers. Our state of the art Network operating centre provide the best customer centric services across Nigeria.

SWAP Technologies & Telecomms Plc Plot 1 | Block 128B New Creation Street | Off Remi Olowude Way Lekki Phase 1 | P.O. Box 72990 | Lagos Telephone: +234 1 730 6995 | +234 1 844 9415 | +234 812 221 6081 | +234 803 203 1015 General Equiries: info@swap-ng.com | Sales & Marketing: sales@swap-ng.com

www.swap-ng.com


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ADOLD ENGINEERING DEVELOPMENT COMPANY ADOLD is an indigenous engineering company that has emerged as one of the leading construction companies with participation in the Telecommunication sector for Turnkey base station projects Solution provider in the most prudent way Quality is our watch word as we strive to maintain the highest quality in the industry

Airtel is committed to social investment

We use our capabilities to provide innovative and individualistic solutions for our clients ADOLD provide services to the Oil and Gas sector through manufacture and sale of surface gathering equipment systems and design of platforms

be socially responsible at all times in all its dealings, maintaining high ethical standards and compliance with the rules and regulations in its methods and practices of doing business. “We are currently partnering with the government in the provision of education for less privileged children,” says Ogunsanya. “As part of our social investment in Nigeria we have initiated a partnership with the Ministry of Education to build and maintain schools, where rural children across the country will be provided free education, free books, and free school uniforms, etc. In May, 2011, we commissioned our first Adopted School, Oremeji Primary School 2 in Ajeromi Ifelodun Local Government Area of Ajegunle, Lagos State.” “The commissioned Oremeji Primary School 2 is a six classroom block with an office for the head teacher and water borehole with lavatory facilities for the boys and girls as well as male and female teachers. As part of the programme, we also provided school Continued

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We offer full range of services in engineering and management related to the construction industry Tel +234 1 761 1256 Email adold@adoldengineering.com

Airtel will always support initiatives that will unleash the talent and innate abilities of the Nigerian youths and open doors of economic abundance for all”

www.adoldengineering.com

Mahindra & Mahindra Ltd. & Scoa Nigeria Plc

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ahindra group, a US$ 16.2 billion company is present in the Nigerian power generation segment through its brand Powerol along with its Nigerian partner, SCOA Nigeria Plc. Mahindra Powerol products from 7.5kVA to 200kVA are presently available in over 20 Countries across Africa, Middle East & Asia. Tel +23412802072 / +2348034027262 Email scoatrac@scoaplc.com

mahindra.com


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uniforms, furniture, books and school bags for the children. All these were accomplished within a record time period of three months. This year, we have renovated and commissioned schools in Oke-Agbo, Ogun State and Ediba in Cross Rivers State. Our school in Amumara, Imo State, will be commissioned soon. It is our intention to also get into more communities as we plan to commission five more schools this financial year.” “We are delighted to partner with the government and people of Nigeria in the quest to chart a new course for the development of education. Without a doubt, quality education offers children the best opportunity in life to realise their dreams and become the leaders of tomorrow. A great environment is also critical to the development of a sound mind. It is, therefore, in recognition of the Continued

Ubah Ubasi of Alcon Nig Ltd; Airtel Nigeria COO, Deepak Srivastava; Samuel Ekpuk, CEO, Pierce Green Associates Ltd and Williams Ajayi at the Airtel Corporate Consumer Forum

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The Lagos trial threw up exciting results as data users could open up simultaneous HD Videos on Youtube without buffering”


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TELCOMMUNICATION INFRASTRUCTURE | ELECTRICAL ENGINEERING POWER ENGINEERING

Tel: +234-12955150 | Email: info@pilotscience.com | www.pilotscience.com

Leading provider of facilities, infrastructure and project management

Plot 908, Lateef Jakande Road, Omole, Ikeja, Lagos Telephone: (234)-1-8988281, 08023628086 Email: info@hatfieldconsult.com | www.hatfieldconsult.com

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Official commissioning of Tech Mahindra’s Call Centre Facility in Abeokuta

importance of education and as part our Corporate Social Responsibility initiative that we have committed to the adoption of public primary schools across Nigeria.” Airtel Nigeria recently pledged to help grow and develop Nigeria’s economy through sustained empowerment of SMEs. “We will always welcome every opportunity to continue its role as a catalyst; nurturing entrepreneurial dreams and aspirations of Nigerians and creating wealth across the country. We are committed to the growth and development of the nation’s economy through a sustained empowerment of the Small and Medium Enterprises (SMEs),” says Ogunsanya. “Airtel will always support initiatives that will unleash the talent and innate abilities of the Nigerian youths and open doors of economic abundance for all.”

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“We will continue to be innovative in our offerings and strategic in building capacities to ensure that both existing and potential customers enjoy the best telecoms service experience that human ingenuity could offer. The good news is that we have a culture of supporting SMEs and, thus far, we

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have thrown our weight behind several SME initiatives.” The future is bright. Airtel is positioned as the operator of first choice for Nigerians, in a market that is shows so much potential. As a country, Nigeria has a population of over 160 million people and the vast

Our corporate vision is to become the most loved brand in the daily lives of Nigerians”


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ALLIANCE SYNERGY POWER AND ENGINEERING LIMITED MECHANICAL SERVICES: •Design and construction of water systems •Water distribution systems – Pipe laying and reservoir construction •Heating & Cooling System S Design and Installation •Erection of steel structures and stanchions

ELECTRICAL SERVICES: •Power Distribution Design and Construction •Lighting Design & Construction •Communications Design •Elect •Electrical Systems •Linkage and connection to national grid •Maintenance of estate and municipal power services •Erection and commissioning of transmission towers

MAJOR CLIENTS: •Airtel Networks Nigeria Ltd •TKM Maestro Ltd. (MTN) •Westcom Technologies and Energy Services Ltd •Bank PHB Plc (Keystone Bank) •Banksome Global Resources Ltd LAGOS OFFICE: Maria Lodge, 19, Ikorodu Road, Maryland, Lagos. Nigeria. Tel: 08033236835 OR 08129023528 Email: info@aspelengineering.com www.aspelengineering.com

majority fall in the youth segment. “Nigeria is a rich country of determined, energetic, and industrious,” says Ogunsanya. “The country is moving fast towards the direction of a connected society, a positive and interesting development.” Most network providers are adopting a data-focused approach and with huge demand for data, it is definitely interesting times for broadband service providers. To learn more visit www.airtel.com.

SAGAMU OFFICE: 80, Hospital Road, Sagamu. Ogun State. Tel: 08062147620

• Project Implementation • Sourcing and procurement • Turnkey/Civil Site Built • Microwave Transmission • Antenna System/Feeder Sweep Test • Resource Vending • 2G-3G BTS Swap/ Capacity Upgrade • GSM Radio Base Station • Installation of Synchronization Equipments • Tellabs DXX Transmission Nodes • Fabrication and erection of Towers • Managed Services Tel: +234(0)8022909835 | +234 (01) 8441343 Email: intelligenceera.ng@gmail.com | www.intelligenceera.net

Site Build / Civil Works TE Installation - BTS & MW Deployment, 3G, 2G, Upgrades etc Fibre Optics Laying, Commissioning & Maintenance Technical Site Survey / Site Audit for both active & passive elements Outsourcing - Manpower Resources & Equipment Hybrid Installation & Commissioning Project Management and Control Drive Test & Optimization Power Soloutions & Installation Site Management / Diesel Supply

40 Saka Tinubu Street, Victoria Island, Lagos. Tel: +231-1-7430914, +234 - 806 - 630 - 2564, + 234 - 805 - 555 - 5133, +234 - 708 - 149 - 6058 E-mail: bukola@safarigroupltd.com | www.safarigroupltd.com Nigeria | Ghana | Benin | Cameroun

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cashless economy Changing the way forward: Interswitch’s Group Managing Director and Chief Executive Officer Mitchell Elegbe is the founder of Nigeria’s first electronic payments system and the leading figure in its move from a largely cash economy to embracing online payment facilities. Writer Susan Miller Project manager Donovan Smith

t’s unusual for a leading businessman to welcome competition but that’s what Interswitch Transnational Holdings Group Managing Director and Chief Executive Officer Mitchell Elegbe is doing. The founder of Nigeria’s first electronic payments system and the leading figure in its move from a largely cash economy to embracing online payment facilities, he emphasises that he is happy about the entry of international players like Mastercard and Visa into the domestic market. This may well have to do with his holding company’s move on 1 April 2013 which divided Interswitch’s core businesses into Verve International and Interswitch Switching and Processing. Continued

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Verve International, led by Charles Ifedi, will concentrate on growing its pan African chip + PIN payment card and compete with its international rivals at a banking level. The split also leaves Verve able to drive its payment card business into the international market and focus on its new business alliance with the Discover and Diners Club International network. Thanks to the deal its cards will be accepted at ATMs and PoS machines in over 185 countries for cash transactions and purchases. And this is something Elegbe is excited about as it also signifies a big shift in Nigerian society. While traditionally only the wealthy have travelled abroad, the “middle-class is growing and people you never thought would travel are saving enough money and wanting to go on vacation to the UK and to see family in the U.S.,” he says. However there was dissonance between this new travel and reluctance on both their part and by some overseas institutions to use and accept the Verve card. This can now change and as Elegbe says “through Discover we can use these cards in the U.S. and the UK”.

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He is happy with the strategic alliance which is he feels “value for Verve, value for Discover, value for Interswitch, and most importantly, value for our customers.” The company division leaves Interswitch Switching and Processing, led by Akeem Lawal, free to forge alliances with all competitors, look at ways to transfer its infrastructure expertise to other African countries and process transactions from all payment cards. “We realised that if we were going to

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We realised that if we were going to compete in equal ways and use the infrastructure then there had to be a way to separate our domestic business”

compete in equal ways and use the infrastructure then there had to be a way to separate our domestic business, which was going to compete with the likes of Mastercard and Visa and the Switching infrastructure which is something to be shared,” says Elegbe. A pioneer who started his business in 2002 when there was wide scepticism in Nigeria about trusting electronic banking and virtually no connectivity between banks electronically, Continued


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he says he is happy to have the international companies “focus on creating a serious and valid market”. Of course, the fact that they are using and paying to use his infrastructure, built partially to provide ATM card technology – must make it all the more enjoyable. And it’s an impressive infrastructure as after a mere 11 years, Nigeria has almost 12,000 ATMs, several internet portals and over 130,000 point-of-sale machines. And more than 18 million Nigerians carry a Verve card. Elegbe feels the customers have benefited as well as they now have more choices and says “there is a business case for a domestic card scheme in Nigeria and for an international card scheme so they will have choice in both markets.” “I have a long-term view of the market and you have to take long-term self-interest into account,” he says. While the split is more than amicable, Elegbe had to ensure that the right governance structure was in place because while the holding company structure was retained there also had to be segregation and an arm’s length approach. “Verve has a separate board and we also had to get approval from the regulator and the Central Bank of Nigeria (CBN) approved the separation and confirmed that it meets the arm’s lengths requirements,” he says. However, this is not the end of the story as Elegbe says he is looking, in the near future, “to announce the creation of three or four more companies that will become wholly owned subsidiaries.” The shareholders, which include private equity firm Helios Investment Partners with a majority stake, also provide a degree of corporate governance, he says.

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The entry of Mastercard and Visa with their chip-and-pin cards forced Interswitch to adopt the technology to comply with a mandate from the CBN, which was pleased to find a new way of preventing the country’s high levels of card fraud and cloning. Elegbe was happy to do so, saying getting people’s trust was a ‘full-time job’ but that with the support of the regulator and the new technology, fraud has dropped considerably in fact “over 90 percent in the last few years” and it’s a much bigger market than it was in 2002 when people were sceptical. He’s seen some big changes over this period of time especially in challenging the perceptions of people about using electronic payments in Nigeria and other neighbouring countries which have chronic power cuts. That answer has been standalone ATMs that rely on generators to kick in during the cuts.

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ACI Payment Systems In Africa ACI’s solutions are used by more than 120 banks, processors, and retailers. ACI has powered electronic payments for Interswitch and 22 of Nigeria’s existing financial institutions since 2002. ACI solutions include payments processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. ACI’s Universal Payments Platform provides true enterprise payments capabilities when combined with ACI’s retail, wholesale, merchant, fraud and mobile payments solutions.

www.aciworldwide.com


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When Elegbe started there was a shortage of skills as “nobody went to university to learn electronic payments” but because of Interswitch’s success and the emergence of other players, people “now see a career in the field and view it as long-term and sustainable,” he says. And he welcomes an increased interest from the regulator and the “recognition that electronic payment is not an area to be ignored”. Personally he’s enjoyed watching the business grow and employ 230 people and its effect on the increasingly prosperous Nigerian population. After all, Africa’s secondlargest economy is expanding at up to seven percent a year. Elegbe is also excited about the company’s expansion into Gambia and Uganda and is happy to be exploring “how to take the model into many African countries”.

As he points out, “no two markets are the same and you have to sort our particular needs” but this is a businessman who has made opportunities out of all sorts of challenges. Looking back he is glad to have done well on electronic payments and all the benefits they bring. Looking forward, aside from the company divisions and expansion into neighbouring and international markets, he is interested in how the company’s structure can help build up the infrastructure of health, transport and even government institutions. Interswitch has worked together with various public sector institutions and recently set up Smartgov.CRSG Limited, a joint venture with the Cross River state government which covers the government’s identity management and payment systems. It seems competition is what Mitchell Elegbe does best.

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This is a great time to be involved in Africa as a territory as the demand for insurance and reinsurance continues to grow. Africa Outlook profiles ZEP-RE (PTA Reinsurance Company), a specialised institution of COMESA and a regional reinsurance player in Africa. Writer Ian Armitage Project manager Nick Norris

emand for insurance and reinsurance continues to grow globally, but nowhere as quickly as in Africa. Africa has been the second-fastest growing economy in the world, with GDP increasing on an average of five percent a year. The middle class ranks are swelling, driving demand for goods and services. Africa is also resident to the fastest growing youth demography in the world, well-educated and better informed; a growth opportunity waiting to be tapped. Demand for insurance products, new or otherwise, is building and should balloon. Continued

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There is immense potential. One company that is very much aware of this is ZEP-RE, a COMESA institution created 20 years with the sole aim of promoting insurance trade in Africa. “It is an exciting time in Africa and we feel we are in the right place at the right time,” says Hope Murera, the firm’s general manager. ZEP-RE was set up in 1990 by the member states of COMESA (common market for Eastern and Southern Africa) and started reinsurance underwriting on January 1, 2003 under the name of PTA Re, with its headquarters in Nairobi. With an authorised capital of $100 million and a market that stretches from Djibouti to Senegal and Libya to South Africa, the firm had the necessary tools for success and has

enjoyed significant growth in size, coverage and turnover. “We have seen our client markets grow between 30 and 40 percent year-on-year for the last five years or so and we are on target to writing $100 million by the end of this year,” says Ms Murera. “Our major growth areas are still our traditional core markets and we see impressive growth in East Africa and the greater COMESA region where we operate in. We have also made inroads into new markets in Asia and are currently among the top reinsurers in the Nepalese market.” Last year we opened an office in Zimbabwe and it serves Botswana, Swaziland and South Africa - Entry into Zimbabwe was also designed to boost the country’s reinsurance capacity,” Murera explains. Continued

J. B. Boda Group

J

. B. Boda Group was founded by our Late Chairman Mr. Jagmohandas Bhagwandas

Boda together with his Late Brother Mr. Dhirajlal Bhagwandas Boda, way back in 1943, when they set out from the coastal town Porbandar in Gujarat State to Mumbai to start “Reinsurance Broking” operations. Their painstaking professionalism, unimpeachable standards of conduct and reputation for fair dealing enabled J. B. Boda Group to develop an organization of respectable size. Late Mr. Bharat J. Boda was third Chairman following his late father Mr. Jagmohandas Boda, founder Chairman and late uncle & Chairman Mr. Dhirajlal Boda. The present Group Chairman is Mr. Atul D. Boda – son of Late Mr. Dhirajlal Boda. J. B. Boda pioneered Reinsurance Broking in India and today we are the largest and oldest Reinsurance Brokers in India and Afro-Asian region. J. B. Boda is first Indian Broker to be accredited as Lloyd’s Broker. The Group is involved in other insurance related services such as Non-Marine & Marine Surveys, Protection & Indemnity Insurance, Life Reinsurance, Valuation & Product Development. The legacy of the pioneers has stood us in good stead. Our fundamental principle is “SERVICE” - with trust, sincerity & integrity. Tel +91 22 66314949 Email jbbmbi@jbbodamail.com

www.jbboda.net

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ZEP-RE provides reinsurance capacity in life and short-term insurance products such as marine, property, engineering, liabilities, motor and aviation; and accident and health. “We see great opportunities in infrastructure, energy, oil, gas, engineering and life all over Africa, a continent that is home to some of the world’s fastest growing economies, many of which are new democracies bouncing back from years of war, military rule or economic mismanagement.

“Insurance and reinsurance follows economic development; there is no magic about it.” Reinsurance is where insurers transfer portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from claims. “Our mission all over Africa is to provide first class security and services to our clients.” In order to achieve its goals – and for the industry to register faster

Continued

Afro-Asian Insurance Services Limited “Professionalism & Excellence Redefined” is a motto that the company and its key personnel have stood by and exercised in its 25 years’ existence since 1988. The founder and promoter of “AfroAsian”, after a long and distinguished career in large insurance/reinsurance broking organisations, wanted to create an entity that delivered the “large broker” service without the “large broker” constraints. The vision of Rasik Patel is now being rolled out by the core “Afro-Asian” team headed by his son and Managing Director, Udai Patel. The focus of “Afro-Asian” remains African and Asian countries. Although the Head Office of the Group is the City of London, “Afro-Asian” is focussed on only handling reinsurance business from these territories. Additionally, whilst “Afro-Asian” is an accredited Lloyd’s Broker with agreements in place with many Lloyd’s Syndicates, it also places a majority of the business emanating from Afro-Asian territories back into its select panel of preferred Afro-Asian reinsurers. The access to Lloyd’s capacity is a value addition offered to the “Afro-Asian” clients on specialist and large risks.

Mr. Rajni Varia

“Afro-Asian” has a network presence in India, Pakistan, Kenya and Nigeria, with more locations under consideration, in order to be nearer to the client base. The company continues on the path of accelerated growth which began in 2009, with the ultimate aim of enhancing the quality and range of service that it can deliver to its client base. Tel +44 207 375 7420

www.afroasian-insurance.com

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growth – ZEP-RE has challenged insurance companies to invest more in training employees. One of the objectives at the formation of ZEP-RE was to provide Reinsurance Training and manpower development in the region. The company has a dedicated training department committed to developing capacity within the region. “Our mission is to provide quality training solutions geared at enabling the whole industry to operate optimally; we are here to encourage success,” Murera says. “Through our training publications, workshops and seminars we share with our clients the knowledge of business, risk management and new practices that are being adopted by leading industry players. We trust that our clients value our service and commitment.” Training is just one challenge. Others include stiff competition, unsustainable price cutting and little product differentiation.

With an authorised capital of $100 million and a market that stretches from Djibouti to Senegal and Libya to South Africa, the firm had the necessary tools for success and has enjoyed significant growth in size, coverage and turnover”

Continued

ZEP-RE’s board of directors and management team

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Caring for our customers

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Head office: Britam Centre, Mara/Ragati Road Junction, Upper hill Phone: +254-20-2833000/+254-0703094000 Email: info@britam.co.ke | www.britam.co.ke Britam EA KENYA | UGANDA | SOUTH SUDAN | RWANDA Britam EA

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Our mission all over Africa is to provide first class security and services to our clients”

the right products to the right people, using the right channels. “And although we have been growing well, we have not scratched the surface just yet. We are challenged on a daily basis to grow our skills. We are challenged to make sure we are able to offer the right support and capacity. It is exciting.” The company is currently rated “B+” by AM Best and enjoys a unique position with diverse mix of shareholders who include countries of the region, public and private sector companies and international development finance institutions. Currently discussions are underway to bring on board other DFIS to augment the investor base of the Company. ZEP-RE runs five offices in Africa, including the head office in Nairobi and regional offices in Douala, Harare, Khartoum, and Lusaka. Plans are underway to open other offices in the region. To learn more visit www.zep-re.com.

We are proud to be associated with PTA (Zep) Re

Low levels of awareness of the importance of insurance among potential consumers of insurance also plagues the industry, as well as low disposable incomes and the inability to purchase insurance, which in most cases is not regarded as a necessity. Only about seven percent of Kenyans, for instance, have one form of insurance or another. Climate change is another major problem and leaves insurance providers exposed. National disasters are growing year by year especially floods in this region of the world. “Insurance is absolutely vital,” says Murera. “It plays a key role in supporting economic growth and development, providing medical and other health benefits, providing adequate retirement incomes in the face of global ageing, and finally driving improvements in risk management, related to the development of new technology.” What insurance offers is protection. It exists for one reason: to help prevent losses. “ZEP-RE strives to provide its clients with a little more than the traditional reinsurers used to offer their clients in the past,” says Murera. “We’ve adopted a holistic approach including best practices in risk management training in underwriting and claims.” Central to ZEP-RE’s growth plan is the idea that “Africa must develop Africa”. “We believe that Africa must develop Africa. Our vision is to be able to provide support for the African market so that premiums generated in Africa, will remain in Africa. “The demands of the marketplace in terms of products and services are changing by the day and providers have to be innovative to meet the evolving and increasingly more sophisticated insurance customer needs. Because insurance penetration has traditionally been very low there is an opportunity for a much bigger slice of the cake. The challenge is bringing

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h y prop

i nvestments

Beckons Africa

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y

Hyprop Investments is South Africa’s largest listed retail property fund and it recently co-invested a 37.5 percent in Atterbury Africa, which develops and owns quality shopping centres in Africa. Writer Ian Armitage Project manager Stuart Shirra

outh Africa’s Hyprop Investments doesn’t need much of an introduction. It is the country’s largest listed retail property fund and its portfolio is valued at a cool R21.5 billion. It is a giant and its property portfolio includes 11 prime shopping centres located in South Africa’s largest metropolitan areas.

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Its shopping centres are distinguished by their prime locations, extensive and superior tenant mix and popular anchor tenants, making them the preferred shopping destinations in South Africa. Flagship assets in the fund include Canal Walk in Cape Town, Clearwater Mall and The Glen in Johannesburg and Woodlands Boulevard in Pretoria. “Listed property, with a market capitalisation of R210 billion, was the best performing South African asset class in 2012, yielding a total return of 35.9 percent,” says CEO Pieter Prinsloo. “As South Africa’s largest listed shopping centre fund, Hyprop’s premium regional and super regional shopping centres performed well during 2012, demonstrating their core strength.” “Our portfolio comprises of high quality shopping centres in South Africa,” he adds.“The centres distinguish themselves from their

peers by their key locations as well as size. Our centres are classified as Super Regional, Large Regional, Regional and Value/Lifestyle, servicing a broad spectrum of shoppers in South Africa. Retailer growth and demand drives the development and expansion of our current centres’ footprint in the respective provinces. This enables us to sustain footfall and income growth throughout the portfolio.” For the year ended December 31 2012, Hyprop reported distribution growth of 6.8 percent, buoyed by positive rental growth and increased trading densities - up seven percent on average - across the portfolio. The year also marked Hyprop’s expansion in the African continent through its investment of 37.5 percent in Atterbury Africa - with a commitment to invest R750 million in the fund over the next five years.

Supercare Supercare Services Group (Pty) Ltd is proudly part of the international Compass Group plc. We are one of South Africa’s leading contract cleaning services companies, and the only South African company to have won the title of “Cleaning Company of the Year” for three years in a row (2010, 2011 and 2012). Established in 1959, our core services include contract cleaning, labour outsourcing, hygiene solutions, pest management services and specialised cleaning services. Our high quality, cost-effective solutions, as well as our constant dedication to innovation and service has earned us the business and recognition of thousands of satisfied customers throughout Southern Africa. At Supercare, our professionally trained crews clean and maintain a wide range of environments including commercial, industrial, healthcare, education, hospitality, retail and transport nodes. Supercare Hygiene offers a range of commercial janitorial services, hygiene rental solutions and other washroom services. We are 100% percent committed to providing you with pioneering, consistent services and solutions that add value to your business. After all, adding value to your business is the best way of adding value to ours. Tel +08000 SUPER

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Canal Walk is one of South Africa’s premier super-regional shopping centres

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h y prop

i nvestments

“2012 was a good year and a major success was the conclusion of the Attfund Retail portfolio deal and integration of the respective centre and regional management and information systems into the Hyprop Group,” says Prinsloo. “Hyprop also co-invested with the Atterbury Group in line with our Africa investment strategy.” “Another highlight was the start of the Rosebank Mall redevelopment at a total cost of R920 million.” Many investors feel that it is the time to invest in Sub-Saharan Africa, where many countries are showing good growth. Atterbury Africa is taking a focused approach, working with South African retailers and targeting countries that can accommodate several investments. Ghana has been the focus of its attentions, where it has acquired a significant interest in the successful

Accra Mall in Ghana and where it is planning to develop further shopping centres. The Atterbury Group is a valuable partner to have as it has experience both in domestic and African property development, Prinsloo says. “Atterbury Africa purchased a 47 percent interest in the 19,000m2 Accra Mall in Ghana and, in addition to this development, West Hills Mall in Accra has also commenced. The malls follow similar trends as in South Africa with the presence of national tenants and design criteria, which supports Hyprop’s high quality philosophy.Hyprop’s focus is to develop and own quality shopping centres and this joint venture affords us the perfect opportunity in Africa.” Redefine Properties announced the disposal of 19 percent of its holding in Hyprop in March, reducing its stake in the fund to just over 11 percent.

Standard Bank Standard Bank Real Estate Finance is proud of the strong and established relationship with the experienced management team of Hyprop Investments Limited (Hyprop). The Standard Bank team has worked closely with Hyprop, in structuring the financing solution for a large number of property acquisitions and developments over the years. Standard Bank provides senior debt funding to Hyprop, and in 2012, was mandated as the lead arranger and JSE Debt Sponsor in Hyprop’s ongoing R5bn Domestic Medium Term Note Programme (DMTN). Hyprop has a wealth of experience, offering investors access to ownership of the highest quality shopping centres in South Africa. The R20bn fund has a proven track record of consistent growth in returns, averaging 17.1% distribution growth per annum, and 27% unit price growth per annum since 2004. Standard Bank continues to work closely with Hyprop, recently advising on the Hyprop Mauritius corporate structure, and providing US$60m of funding that will be used to fund Hyprop Mauritius’ 37.5% investment in Atterbury Africa, an African property development fund.

Development at Rosebank Mall

Standard Bank has also advised Hyprop and successfully executed appropriate interest rate hedging strategies. Standard Bank’s depth of property knowledge and experience, and the full range of products and services on offer, locally and across the African continent, will continue to enable Standard Bank to partner with Hyprop and help drive their business forward. Tel +27 (0) 11 721 8367 Email Bevan.Williams@standardbank.co.za

www.standardbank.co.za

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h y prop

i nvestments

It has further indicated that it will look to exit its entire stake in Hyprop later this year and this will result in a significant improvement on Hyprop’s liquidity. The future is bright for the fund, where a focus on large dominant centres has worked well. It has arguably the best quality portfolio in the South Africa listed property sector and, in addition to making investments such as it has in Atterbury Africa, Hyprop is focusing on “getting the most of and expanding its existing assets” and has been disposing of non-core assets during 2012, says Prinsloo. “We are a specialist retail property fund. We disposed of some of our noncore assets during 2012, which included the selling of our stake in the Southern Sun Hyde Park Hotel toTsogo Sun. We also sold our 50 percent interest in Southcoast Mall. Our strategy is to invest in sizable shopping centres and the hotel therefore did not fit our long-term investment profile,” he says, before adding that the redevelopment taking place at Rosebank Mall is progressing “well”. “The Rosebank node has been under major development for the past five years. The Gautrain infrastructure has seen the node grow to the second busiest business district in Johannesburg, resulting in large corporates moving their head offices to Rosebank. Rosebank Mall is doubling in size to 62,000m2. The construction programme is on schedule and we anticipate the completion of the mall in September 2014. Interest from the market in the mall has been phenomenal with 95 percent let. Rosebank Mall will see the first Edgars inRosebank, a double level Woolworths Platinum store and a Dischem are among the top national retailers incorporated into the scheme.” Hyprop is celebrating 25 years since listing on the JSE and has consistently been ranked as a top performer on the exchange. To learn more visit www.hyprop.co.za.

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fidelity security group

For the year ended December 31 2012, Hyprop reported distribution growth of 6.8 percent, buoyed by positive rental growth and increased trading densities”

Fidelity Security Group is Southern Africa’s largest integrated security solutions provider and the industry leader in protection innovation Fidelity deploys well-trained and experienced personnel supported by state-of-the-art technology With over 55 years of experience, the company’s strength lies in exceptional leadership, an unwavering commitment to excellent corporate governance and a comprehensive infrastructure Fidelity Security Group provides an all-encompassing security solution to a broad base of clients in a range of industries Customised security solutions are tailored to each client’s needs Tel 0861 234 335 Email media@fidelitysecurity.co.za

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L odestone

N am i b i a

New iron ore mine for

Africa Outlook discusses the challenges and opportunities of opening a new iron ore mine in Namibia with the CEO and CFO of Lodestone Namibia. Carsten Mosch, Lodestoneâ&#x20AC;&#x2122;s CEO, and David Hinsley, its CFO, are principal investors in the project in Dordabis, which is located 70 km south-east of Windhoek. Writer Ian Armitage Project manager Debbie Clark

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Namibia is a middle income country which has enjoyed considerable successes since it gained independence from South Africa in 1990. It is renowned for sound economic management, good governance and inherited a well-functioning physical infrastructure, a market economy, rich natural resources, and a relatively strong public administration. Namibia has made significant progress too in addressing many development challenges like job creation, education, primary healthcare services, safe water, poverty and inequality. In the 2013 World Bank /IFC Ease of Doing Business Study, Namibia ranked third out of 25 African countries. In the Ernst and Young Emerging Markets country rankings, it ranks ahead of the likes of Turkey, Colombia, Mexico and all of the BRIC economies. It is this that has attracted international investors (Namibia has attracted the 15th most FDI projects in Africa since 2003, which ranks it as the top African investment destination on a per capita basis). It is in this context that Africa Outlook interviewed the management of Lodestone - just as they were drawing a close to their latest round of exploratory drilling and were finishing their Namibian mining license application, which they expect to submit at the end of August. Lodestone’s third phase of drilling at Dordabis commenced in March 2013 and will produce 6,500 metres of core samples. It had previously drilled 5,400 metres as it proved its high grade iron ore deposit. “We’re close to completion. This round of drilling threw up a few pleasant surprises, revealing an extension of our main ore body that we hadn’t foreseen,” says Carsten

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Lodestone’s third phase of drilling at Dordabis commenced in March 2013 and will produce 6,500 metres of core samples”

Mosch, CEO of Lodestone, who before joining Lodestone’s board in 2010 was an international investment banker in Europe for 19 years. “For us it will mean bringing in far more material to our mineral resource and geological block models. Exploration and drilling demand time, money, and patience. We invested the resources to prove the viability of the project and now is the time to move from exploration to production. Fortunately everything is progressing better than we would have predicted.”

In addition to applying for its mining license, Lodestone is currently conducting a pre-feasibility study (to be completed in late 2013) and a bankable feasibility study (to be completed in May 2014) on the project. Lodestone has retained ATEC from South Africa as its EPCM contractor to oversee the feasibility studies. “Namibia is unlike almost any other country in sub-Saharan Africa with the exception of perhaps Botswana, in that it is quite a transparent jurisdiction, has a clear legal system, respect for the rule of law, contracts are almost always obeyed, and, if they aren’t, there is a predictable legal system to protect investors,” says David Hinsley, who joined the Board of Lodestone as its Chief Financial Officer in early 2013. Prior to joining Lodestone, he was a Managing Director at Deutsche Bank in Global and Emerging Markets in London and New York from 1999 until 2012. “I worked with Carsten for a decade while he was in charge of a large part of Deutsche Bank’s trading operations in Frankfurt. Carsten knew I had relevant banking experience in emerging markets and Africa. When he asked me to get involved with Lodestone, I did my due diligence and I realised he and the rest of the Board had created a fantastic investment opportunity. I was particularly attracted to the jurisdiction. Namibia is great. It is the kind of place where we, as private investors and on behalf of our investors, feel comfortable risking capital.” Mosch was quick to distinguish Lodestone from other African iron ore projects. “This project is distinct from many that have been announced in areas such as Guinea, DRC and even Botswana. Most of those projects need major rail and port infrastructure before they can proceed. Many of the announced projects presuppose the installation and development of large scale infrastructure. It is not clear that they will succeed. Continued

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ATEC

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L odestone

N am i b i a

Lodestone’s third phase of drilling commenced in March

While Lodestone’s initial export goals may be modest (1.2 million tons/annum production), we can send a good amount of iron ore into the seaborne market using Namibia’s existing infrastructure,” he says. “If we were producing tomorrow we could use the existing rail lines and the port at Walvis Bay.” Mosch’s enthusiasm is strengthened by the fact he believes an “increasing dependency” on iron ore imports in “key” world markets “presents a substantial opportunity” for the intensified development of African iron ore projects like Lodestone’s Dordabis project. “Our Exclusive Prospecting Licenses cover a significant iron ore deposit,” he says. “There have been a number of analysts saying some rather alarmist things about the iron ore price and the demand and supply balance over the next couple of years. We are optimistic for the outlook for the demand for our product because it is much higher grade than the market standard. Regardless, Lodestone will be a low cost producer so we will still enjoy solid margins in the event of a bearish pricing scenario.” The project will submit its mining license application to the Namibian Ministry of Mining and Energy “momentarily”.

“Currently the project team is investigating logistical issues, water pipeline construction, energy issues, and considering Namibia’s skills shortage which will need to be overcome to initiate the project. The project will shift to an execution phase at some point in 2014 or upon granting of the mining license, whichever happens sooner,” Mosch says.

The project has everyone at the firm excited. Hinsley sees Lodestone’s end product as its key strength. “The product we are going to be mining is liberating at a 67 percent Fe content. The market traded standard for iron ore is 62 percent. Much of the iron ore trading through the ports in China is sub-62 percent so ours is a premium product. We have had many discussions with procurement professionals and offtakers, mostly based in Europe and we can see clearly the demand for higher graded iron ore. Most of our investors are German and because of Carsten’s history and my history within Deutsche Bank, we know those entities throughout Europe that need iron ore and we see many are having a hard time finding reliable new sources of high grade ore – many have little choice currently but to take inferior supply. We have been encouraged by the enthusiasm among European buyers to secure offtake agreements for alternative higher graded supply. Iron ore is iron ore - an element on the periodic table - and the world has a lot

Continued

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ATEC Project Management and Consulting (PTY) LTD is a privately owned Engineering company, specialising in a variety of Plant and Infrastructure solutions. ATEC PMC provides solutions for the mining, minerals processing and industrial environments, turning client ideas into successful projects. Our approach to engineering and project management is anything but typical, because current industry projects are seldom predictable. We are engineers, project managers and problem solvers who see unusual project challenges as opportunities to innovate. We utilize specialist software and design tools to ensure efficient and accurate development of solutions. With ATEC PMC your ideas become a successful reality.

ATEC PMC was established to provide innovative multidisciplinary engineering and project management services, as an alternative to the typical EPCM consulting services that are available in the industry. From our base in Southern Africa, we have successfully completed studies for clients across the globe and built plants in various countries across Africa. Our services include concept development, preliminary assessment, detail design, implementation, project management, project controls and assistance with all project related aspects, to ensure your goals are achieved. Clients receive a full range of technical and management capabilities in a single dedicated team that is committed to utilizing available opportunities and expertise to unlock potential and add value to each project. We have worked in commodities ranging from iron ore, manganese, coal, diamonds and graphite, to gold and platinum. We adhere to recognised standards to ensure quality of work and are flexible when it is required to find a better solution. The changing physical and economic environment we work in demands a new way of thinking to make the most of limited resources and improve on past results. At ATEC PMC we continually strive to learn from past experience and challenge ourselves to find the best answers. ATEC PMC can help advance your project from concept through to implementation.

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L odestone

N am i b i a

CEO Carsten Mosch

of it, but to mine it effectively and in an economically viable fashion and to be able to produce 67 percent Fe content is becoming increasingly rare. Steel producers who have quite technical demands, or that insist on running at higher levels of efficiency, they need something better. Something Lodestone can supply.”

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And it would have positive ramifications for Namibia. “We have had encouraging conversations with export and economic development bodies, both official and quasi-official in Germany and Europe. There is a great deal of enthusiasm and support from public bodies as well as private investors and offtakers to secure as much international business between Namibia and Germany as possible,” Mosch says. “The resource we have in the ground can support far more than 1.2 million tons a year of exports which is our current base case assumption but we can ramp that number up significantly and rapidly at the point that the infrastructure of Namibia grows. “We can evolve from being a modest-sized mine to being a large iron exporter when Namibia does invest the resources required to improve its rail and port infrastructure. We think Lodestone can be the catalyst to encourage the Namibian government perhaps with investment from Europe - to improve that infrastructure. It is a chicken and egg thing where Namibia lacks the public resources to build out its infrastructure to foster economic growth and that growth can only occur with expanded infrastructure. However, Germany Inc needs high grade iron ore which they are having trouble sourcing from the world market. Lodestone can drive real economic growth and employment in Namibia using the existing rail and port to deliver the natural resource Europe needs.” Hinsley has high praise for the country. “Namibia administers itself incredibly well but currently lacks the resources to support the wholesale expansion of its infrastructure. At the point the infrastructure in Namibia grows, this company really, really gets exciting.” To learn more visit www.lodestonepty.com

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MINROM MINROM, was launched in 2010, with a dedicated mineral resource management team consisting of qualified professional geologists and specialists. We are agile, flexible, self-sufficient and independent MINROM specialises in resource development exploration identifying and addressing the mineral resource risks to the investor. This is achieved by deploying best practice in exploration drilling programmes, 3D geological block modelling and the compilation of Competent Person’s Reports. In addition Minrom performs due diligence studies, geological project reviews, and mineral resource management audits and reviews Minrom Namibia developed the Lodestone Dordabis Project from geological concept to geological bankable feasibility standard by means of 3 phased geological resource delineation, definition drilling and mapping programs The director Oscar van Antwerpen has 18 years of experience in the mineral resource management sector; he is regarded as a competent person to declare manganese resources in line with the Joint Ore Reserves Committee (JORC) MINROM operates in strict accordance with the guidelines and procedures of SACNASP, with a focus on best practices in safety, environmental management, mineral resource management standards, transparency and ethics. Choosing MINROM as your exploration partner will enable you to make the best mineral exploration decision Tel +27 (0) 12 664 7427 Email info@minrom.co.za

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Sierra Leone diamond company the Octea Diamond Group owns two mining leases: the Koidu Kimberlite Project and the Tonguma Project. It also has exploratory licences including for newly created subsidiary Boroma, east of Koidu. Sierra Leone diamond exports increased 43 percent in the first half of 2013. Writer Susan Miller Project manager Debbie Clark

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hen the civil war that wracked Sierra Leone ended in 2002 the first company to enter the country and invest was Koidu Holdings, a diamond mining subsidiary 100 percent owned by Beny Steinmetz’s BSG Resources. Since then the fortunes of both company and country have improved with stability bolstering both business and investor confidence. Renamed the Octea Diamond Group after restructuring, the company owns two mining leases: the Koidu Kimberlite Project and the Tonguma Project and also exploratory licences, including for newly created subsidiary Boroma, east of Koidu. The Koidu Project - situated in the Kono District, 330km east of the capital Freetown in the diamond-rich area where the rebel war began in 1991 - boasts two kimberlite pipes, four kimberlite dyke zones and blows. In size 4.9km², its production capacity was boosted in 2012 with the unveiling of a $200 million, 180 tons per hour (tph) processing plant which increased output to 45,000 carats per month. The group’s intention is to move from open pit mining to underground mining at the site – with CEO Jan Joubert stating that “resources of over 14 million tonnes have been delineated at Koido”. Indeed its mining licence has been extended to 2030 and can be renewed for a further 15 years. The Tonguma Project at 142.07 km² is situated over a much larger area mining lease, is about 68km south of Koidu and contains several narrow kimberlite dykes zones. There are promising exploration results at the site but the narrowness of the dykes will require specific equipment as there is a risk of dilution. Octea will have to come up with a method to maximise its Continued

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Caterpillar, Hitachi, Komatsu, Volvo, Liebherr, CNH (Case & New Holland), O&K, Doosan, Hyundai, Terex, JCB, Samsung, John Deere. Ground Engaging tools MTG

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value but this should not be too much of a challenge for a company that has expanded and invested exponentially as Sierra Leone stabilised and peace held. The company restructuring at the end of 2011 – aimed at attracting another $600 million to $1 billion into the country’s mining sector - left holding company Octea Diamond Group with four wholly owned subsidiaries: Octea Mining Ltd, Octea Diamonds Ltd, Octea Services Ltd and the Octea Foundation. The name Octea was chosen rather poetically as reflective of the spectacular quality of the octahedral diamonds characteristic of the area but there is nothing poetic about the company’s investment, which has transformed mining and the changed the lives of many Sierra Leoneans. While Octea Mining holds the company’s mining assets, Octea Services will provide support services to the other three and Octea Diamonds was created to add value to the product and work on marketing and image.

As Reuters reports, thanks largely to increased production at Koidu Holdings, Sierra Leone exported $102 million worth of diamonds in the first half of 2013 as opposed to $71 million for the same period last year”

In a country recovering from prolonged conflict and with high unemployment, social responsibility by a large corporation is possibly imperative. The Octea Foundation handles all corporate responsibilities for the group including development issues and was created because it allowed the mining side to get on with what it does best and brings in professionals to deal with social and community issues. While the parent company’s website currently claims to employ 900 permanent staff members, of whom 90 percent are locals, during short-term projects last year, it was closer to 2,000 locals. And because the group is going to be looking at a move to underground mining at Koidu, thus increasing the size of the operation and production in the next one or two years, we’re sure the increased activity will lead to the hiring of more local people. Indeed, the industry is playing a positive role in this respect. Sierra Leone has over the years suffered from diamonds because diamonds played a key role during the civil Continued

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TMS UK Any Part, Any Time, Anywhere! Technical Mechanical Services, with its Database of 42 million part-numbers, has grown to become the supplier of choice for genuine spare parts used in mining operations worldwide. Supplying the complete range of parts from transmissions, engines through to filters and seals for mining, earthmoving and drilling machines, cranes, forklifts and trucks, the company also helps support the infrastructure which invariably develops around a mine. ‘’We have been around for almost 20 years, the African side of the operation is well established and I have been travelling there since 1997’’ explained managing director, John Rogerson. ‘’We started by supplying the gold mines in Ghana, Copper in Zambia, Bauxite in Sierra Leone and Diamonds in Botswana, and we continue to capitalise on the wealth of opportunities Africa Holds.’’

Tel +44 (0) 161 427 2384 Email info@tms-worldwide.com www.tms-worldwide.com

TMS has people on the ground covering huge swathes of the African Continent, including South Africa, Angola, The DRC, Ghana, Kenya, Zambia, Mali, Morocco, Nigeria and Tanzania. Each country has a dedicated team on the road almost constantly to meet with and support clients. As well as a dedicated UK-based team offering support upon their return. ‘’TMS are now official distributors for a select number of industry leading brands; joining forces with MTG – a supplier of GET (Ground Engagement Tools); Berco – involved in all aspects of undercarriages; and Rockmore – which supplies percussive rock drilling tool’’ explained Mr Rogerson Investing in securing TMS’s future and exploration of new markets is a continuous process, with plans afoot to move in to three new regions – Nigeria, Liberia, and Ethiopia – before the end of 2013.

‘’At the moment, with the economic fluctuations in Europe and America, the With its headquarters and central warehouse amount of quality suppliers in the market is reducing. TMS is a name synonymous with in Liege, Belgium the location is the perfect quality and service and this is empowering choice, nearly all the major brands have us to really develop the business in this substantial facilities in the region. time of narrowed competition’’ ‘’All parts are funnelled through our ‘’Our five year plan is to cover Africa in Belgium warehouse and shipped directly Spare parts: that’s the goal and everything to the end user wherever they happen to we do works towards achieving it’’ he be. We have invested a lot in our supplier concluded. accessibility and if one doesn’t have the part, we have another that probably does’’ Don’t forget to check out their stand This method eliminates the need to tie up H2.520 at Bauma. capital in unnecessary stock.


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conflict but Octea’s vision is to demonstrate clearly that diamonds can be a social good and a source of hope and a key element in developing the country. While the company’s educational and social upliftment programme is handled by the Foundation, it had to take responsibility for five settlements of people who were affected by the development of the Koidu Project and who in December 2007 agreed to be relocated. The initial agreement covered five settlements but the mine’s expansion plans mean that more people will have to moved. While the communities affected by the 2007 agreement were all settled by last year, Octea is now embarking on a second phase that will involve building houses within an extended area. The company has done the assessment and signed a co-operation and action plan agreement and is now embarking on the second phase. And these kinds of negotiations are necessary because production is soaring. As Reuters reports, thanks largely to increased production at Koidu Holdings, Sierra Leone exported $102 million worth of diamonds in the first half of 2013 as opposed to $71 million for the same period last year. Around 10 percent of Octea’s revenue goes to the government, five percent to the host community, three percent to the district council and two percent to the city council. And this is over and above mining fees and exploration fees and the 0.25 percent it contributes to community development. To date, Octea is the largest diamond mining company in the country and that makes it very important as far as developing the country is concerned. Thus the lifting in 2003 of a UN implemented worldwide ban on diamonds exported from Sierra Leone was important to both.

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While the civil war was notoriously funded by “blood diamonds” mined under rebel directive, the country is now a signatory to the Kimberley Process. This joint initiative by governments, civil society and industry was aimed at stemming the

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flow of conflict diamonds and the country and company have adhered to it strictly. We’re sure that Sierra Leone has turned the corner and with the scope of the Octea Diamond Group’s plans and its input, the country even may be able to speed up.


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Q&A: Inside Swedish mining and construction equipment manufacturer Atlas Copco, one of the continentâ&#x20AC;&#x2122;s leading mining equipment and services suppliers. Writer Ian Armitage Project manager Debbie Clark

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wedish mining and construction equipment manufacturer Atlas Copco has had a presence in Eastern Africa since 1938 and over the last few years has literally “struck gold”. However falling gold prices have forced the company to adapt, says Henry Ngugi, Regional General Manager - Mining & Rock Excavation. Mr Ngugi was kind enough to answer our questions all the way from Tanzania... Atlas Copco has spent the past few years consistently capitalising on the opportunities afforded to it by Africa’s burgeoning mining industry, especially in regards to gold. But the gold price has been plummeting. How has that affected things? As you say, our mining and exploration activities are mainly focused on gold and therefore negatively affected by the drop in world gold prices during the last six months. However, the construction and industrial businesses, though smaller in absolute terms, are performing well. Overall, we have adapted our organisation and focus and as a result have been able achieve satisfactory growth targets in most our business segments. Where has Atlas Copco been most successful in the last year then? Is there anything you would like to improve? We have been most successful in ‘use of products’ - that means service, spare parts and consumables business. Delivering good service is not an event, it is a continual process, improvement comes in form of small steps, and we would like to be more consistent in the service we deliver to mining customers across the countries we cover. Continued

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How would you sum up the current state of the industry? Are there lots of opportunities for you? Looking at reduced world gold prices, the cheese has moved, and only those players who adapt quickly will be successful. There are opportunities however. We are strongest in Tanzania, but have room for improvement in emerging mining markets such as Ethiopia, Eritrea, Sudan and Kenya. Atlas Copco technicians taking a break after servicing a blast hole drilling machine

We utilise innovation and latest technology to produce equipment that have least possible impact on the environment”

Atlas Copco’s Diamec U8 core drilling mineral exploration rig working in an underground mine operation.

What are some of the recent trends you’ve witnessed? Mine owners are focused on productivity, are more cost conscious, and prefer to subcontract most of the specialised activities. One sector that excites us is mineral exploration, focusing on gold, coal, copper, cement and to a smaller extent diamonds and uranium. We also see that new technologies are being applied in the region. Potash ‘solution mining’ is under development in Ethiopia and Eritrea, and for several decades Kenya has been at the forefront of ‘geothermal steam’ mining in Africa. In a broader sense, Oil & Gas is a new segment in the region, especially in Uganda, Kenya and southern part of Tanzania. Tanzania has the largest and most developed mining sector in Eastern Africa and has an investor friendly legislation, but we are seeing strong development in Ethiopia, Sudan, Eritrea and Kenya. Most of these activities are relatively new, and require skills and technologies that are not well developed in the region. It will take time. Please tell me about your aims, targets and projections for 2013 and beyond? Our vision is to be the preferred supplier and partner for investors in the mining industry. We have quite a well developed infrastructure in the region, both in terms human resources, as well as workshops, warehouses and at the moment our focus is to make better utilisation of these resources. We are customer focused, agile and will invest in locations and segments that position us to serve our customers optimally. How long has Atlas Copco been present in Africa? Atlas Copco has been in East Africa since 1938, at that time it was called Craelius, and was one Continued

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of the companies that pioneered mineral exploration in the region. We have been expanding in Africa and will continue to do so, and in the last five years have established customer centres in Mali, Burkina Faso, Cameroon, Mozambique, Nigeria in addition to long term presence in South Africa, Namibia, Botswana, Zambia, Zimbabwe, Ghana, Morocco, Egypt, Tanzania and Kenya, among other countries. We have been in Africa for a long time, and will continue to invest and be present in Africa. This is time for Africa. Atlas Copco has signed equipment-maintenance contracts with many of the major players in Africa. What does that tell us about Atlas Copco? Why are you so popular? We believe we are a customer focused organisation, and pay more attention to increasing our customers’ long term productivity. All our actions are geared in this direction and it resonate well with our customers. We are a global organisation with a culture that has evolved since the Group was founded in 1873 and this culture unites us, and enables us to work with common aim - “To be first in mind and first in choice’ for our customers, by delivering sustainable productivity in whatever we do”. Are you a company that understands that people are your biggest asset? We are continually investing in our people... in their development, in their training; in diversity, we give them long term careers and provide an environment that allows them to develop their potential. We believe that there is always a better way, and continuous improvement is part of our culture, and a philosophy that all employees embrace. We believe that each and every employee has the ability to contribute to the growth of their business unit by continually improving the processes for which they are responsible. We offer products and application training; we have been selected by Forbes as one of the world’s top 100 most innovative companies, we believe that our employees should be experts in the industry segments we operate. This way we can help our customers improve their productivity. Operating sustainably is something that is becoming more important, especially in the mining industry. Do you subscribe to this? Yes, we strive to be a good and reliable corporate citizen and operate with a long-term commitment to the customers in each country and market served, and

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we develop close relationships with customers in order to be able to meet and exceed their expectations. We conduct business in a manner that preserves the environment for future generations and we respect fundamental human and labour rights. We recognize that environmental or social considerations at times might override purely commercial aspects. In what ways are you operating more sustainably? We have long term investments in people, production, distribution and customer service facilities in the markets where we operate. We utilise innovation and latest technology to produce equipment that have least possible impact on the environment. Are you optimistic about the future? Yes, Atlas Copco has consistently scored high as one of the most sustainable and innovative companies, and we have performed well even during challenging economic times. We believe that we are well organised to adapt to the future and deliver long term value to all our stake holders, including employees and shareholders. To learn more about Atlas Copco visit www.atlascopco.com

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Specialists I N T H E B U I LT E N V I R O N M E N T

Companies become successful when they focus on their core revenue generating activities. However they can become even more successful by minimising costs of non-core activities. In order to manage these functions eďŹ&#x192;ciently to maximise proďŹ ts requires specialist intervention and know-how. Writer Susan Miller Project manager Stuart Shirra

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ention FM to most people and they will probably think of their favourite radio station but to Lydia Hendricks, Director of South Africanbased Afroteq FM Solutions, it means “Facilities Management”, something she’s passionate about. As a Director of Afroteq FM Solutions, a company specialising in full turnkey facilities management solutions, she has been active in the industry for close on 20 years and is determined to see the industry increase its professional recognition in South Africa. She claims that currently the facilities management function is often perceived as an “in-the basement” function when it should in fact be brought in at senior executive level as it is a key integrator and enabler of the core business strategy and if ignored could have a significant impact on cost and business effectiveness. To this end, Facilities Management is still undervalued in SA. Hendricks explains that Facilities Management services include approximately 80 different services and if put under one umbrella contribute to one of the highest operational spend for most businesses, and in most cases hidden and in some cases replicated, because the service often reside in each respective department to serve their specific need or the management of the essential services are passed on to Departments such as Human Resources who are not subject matter experts in these areas of service. “The most critical and risky services are usually executed by blue collar people and hence the natural assumption is that facilities management belongs in the basement, and engaged only when needed,” Hendricks says. This often leads to costs being expended only when systems fail or damage control applied due to lack of communication and planning. In most cases this approach ends up

costing the business more than it should – “penny wise and pound foolish!” “Astute businesses outsource their Facilitlities Management to allow them to focus on their core business,” says Hendricks. “This provides the business with effective service support that can be measured financially and operationally. “Non-facilities management staff that may have the support of procurement, finance or legal departments of the business, cannot leverage spend as well as FM companies can as they cannot offer the economies of scale. Another benefit of engaging FM specialist allows for staff to grow in their chosen career as those services are the FM specialist’s core business.” The South African Facilities Management Association defines Facilities Management as “an enabler of sustainable enterprise performance through the whole life management of productive workplaces and effective business support services.” Read that again slowly and absorb it as you do. FM should “enable” and support the enterprise. From this philosophy it becomes clear that FM is a strategic function that requires high-level thought; it is as vital to the lifeblood of the enterprise as the procurement plan, marketing plan or business plan for that matter. An integrated facilities management strategy and plan will ensure the following benefits for business: Space Optimization – Space cost Money! Reliable Service Delivery and pleasant and effective work environment – retention of key personnel is vital for any business Improved company image – Service and business environment leaves an indelible impression on prospective staff and clients Reliability of building systems – A business cannot function without core services such as electricity, air conditioning, lifts in a high rise building Continued

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Remove these elements and the enterprise will not reach its full potential and may even collapse. “You need expert know-how to unlock the hidden costs and enable best practice which can make or break your triple bottom line,” says Hendricks. “We need only look at the current situation of State facilities to understand the consequences of not having a strategic plan for Facilities Management. The same rings true for most enterprises simply because they don’t fully understand the concept and value of FM.” An interesting story lies behind the success of this dynamic industry leader. In 2009 Afroteq and FM Solutions merged - offering multidisciplinary professional services to the built environment. FM Solutions, specialists in providing engineering project and programme management services, added their engineering expertise to Afroteq’s success in the facilities soft services industry, Academy and Space Planning and Design and resulted in what Hendricks calls a “good marriage”. Both companies collectively have 20-years of experience and reside within Arcus Facilities Management Solutions, their holding company. “Through the merger we are making great inroads into new markets and have grown our national footprint. The company has expanded exponentially from a small entity to a buoyant, medium sized company that is well positioned to offer clients, both large and small, a personal, professional and value–driven service,” Hendricks says. FM Solutions was originally started as a small new venture in a sister company to one of the largest engineering companies in South Africa, the intention was to supplement the engineering business with the diversification of services through the acquisition and development of the FM business.

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Today, it is a standalone business and, through the merger with Afroteq, it has significantly improved its footprint, expertise and customer base. As a consequence, FM Solutions and Afroteq now have four core offerings and services through these two brands: FM Solutions for programme and project management and facilities management and Afroteq for space planning and interior design as well as the training academy, Afroteq Academy. “We are very proud of the fact that we can offer companies a turnkey Facilities Management solution encompassing a range of specialised as well as generalist services. We have a unique advantage over competitors as we train what we practice and we manage what we design, so we really listen to our clients and tailor a solution to meet their needs and their budgets as it must yield beneficial results,” Hendricks explains. “Afroteq FM Solutions strive to act as an enabler for clients by taking the burden of risk and turning it into a value-adding construct instead. We do this by identifying the high risk within facilities’ operational areas and then manage it according to the level of risk. By shifting risk and non core functions to FM specialists, an enterprise’s core processes are brought to the fore. This in essence allows greater clarity within enterprise strategic functioning which in turn means that potential opportunities can be better harnessed for growth by “freeing” previously encumbered resources. It really is all about rendering a facility ‘Fit for Purpose and enabling the business to operate at its optimum’.” This is key philosophy and the cornerstone of a successful FM strategy. “Facilities Management is essentially about applying processes that enable people to function at their optimum within the work place. Apart from applying expert insight to add value to enterprise functioning, the team go one step further and

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Acumen Software The Forcelink mobile work and asset management solution is now in use with a wide variety of South African customers. Key benefits include savings in time and costs, data accuracy and ease of use. References include the City of Cape Town, CityPower in Johannesburg, and the Department of Health, Eastern Province.

www.forcelink.net

Routine maintenance being carried out at the Main Chillier Plant at Dora Hospital


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also address the lack of skills within an enterprise resources skills base. Through the Afroteq Academy division, clients who manage their own facilities can benefit from tailored training solutions to better manage their facilities.” A key example is FM’s maintenance solution for the department of health’s clinics and hospitals in the Makana, Cambedoo, Kouga and Nelson Mandela Bay Districts, under the control of the Coega Development Corporation, as an implementing agent for the department of health. “We have been implementing maintenance solutions for the Department’s health facilities for just over a year now and have been instrumental in BBEE and SMME enterprise development through job creation whilst addressing the dire need at facilities where maintenance needed improvement,” says Hendricks.

“Through customised training and exposure on maintenance solutions we are confident that the site managers will become better equipped to implement processes that ensure better control and best practice for their sites.” She compliments the Department of Health on their strategy and their structured approach in getting to the root of the health service delivery challenges and tackling them head on. In doing this, their process carries integrity and sustainability demonstrating that cost effective service delivery is indeed taking place and will continue in that vein. But, this strategy also forms part of a bigger picture. “When FM was at its infancy in this country, we realised that we needed to draw people into the industry to build capacity; we realised that an academy was needed. Through Afroteq Academy, Continued

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we continue to build capacity in organisations and smaller support companies – in other words, our contractors – to create a greater resource pool for our industry because we believe that the more competent resources available, the more we can leverage pricing and the bigger pool we have to choose from. And, in so doing, we increase the opportunity for a competitive edge; not just price-wise but also in terms of quality.” The company has no shortage of key projects and in April acquired a fiveyear contract to operate all the bus stations for the City of Cape Town’s new MyCiti Rapid Transport system. Afroteq FM Solutions is responsible for the cleaning, the security, maintenance, and cash management at all the stations as well as the basic validation of tickets. Currently running 22 stations, its remit will grow as the system is expanded into more areas within the greater Cape Town area. “Using a tap-in card system similar to the Gautrain system in Johannesburg, the MyCiti – which rolled out in 2011 - provides reliable and safe public transport for the locals,” says Hendricks. “It also offers tourists a safe and cost-effective route straight from the airport into the CBD with feeder routes within the City and parts of the West Coast. “We are very proud to be associated with this prestigious contract which is a great boost for the local economy.” In taking on the management of the contract, Afroteq FM Solutions inherited a large staff component from the City of Cape Town. “We have recently embarked on a wide-scale training plan to up skill all the resources ensuring a high quality service delivery to the public. The client-public interface is critical to the overall value perception of the MyCiti system and the company want to

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ensure that it is rated as a world-class service by its users.” Hendricks adds that this necessitates continuous training and quality management strategies must be applied. To crown these notable achievements the company’s design division Afroteq Design were appointed as the Interior Design Facilities Management, Acoutics Design and Space Planning for the construction and refurbishment for Department of Public Works’ Agrivaal building in the Tshwane CBD. What is even more notable is that the building has been given a 4 Star Green Rating by the Green Building Council of South Africa- the first Government building in Tshwane to receive this prestigious award. At the helm of this design was the Afroteq team that ensured that all the green specification requirements were met. The building incorporates an HVAC system with an economic cycle and ice storage system, DALI system – a lighting that controls the lighting of spaces in use and a “grey water system” to collect treats and reuse grey water. Hendricks is thrilled that Afroteq FM Solutions was the first Facilities Management Company to lead the project’s consortium, usually led by architects. “The Department of Public Works was adamant they wanted a building that took cognisance of facilities management best practice at the planning stage,” she says. The prestigious project has attracted environmental praise and to Hendricks it’s a wonderful platform to promote Facilities Management as a discipline that needs cognizance at the planning stage of building and business construction which adds intrinsic value. “The new tenants of the Agrivaal Building will be able to concur as

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Afroteq celebrates Mandela Day

they experience this value first-hand when they move in towards the end of 2014,” she says. “All they will need to do on commissioning is simply bring along their files and settle in – everything else will have been fitted and all the required services will be fully functional.” Surely businesses must now start to take cognisance of that kind of service delivery. “If you take a small pilot project, learn from it and apply the lessons

to the big picture, then you will start to carve your path to success,” Hendricks concludes. With a full multi-disciplinary team including highly skilled professionals, architectural project managers and their own in-house draughting as well as QS departments that compliment a high technical Facilities Management team, Afroteq FM Solutions is perfectly poised to continue on its path to success.

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WISA provides a forum for the exchange of information and views to improve water resource management in Southern Africa. Writer Melissa Wheal

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A f r i c a


foreword

he Water Institute of Southern Africa (WISA) provides a forum for the exchange of information and views to improve water resource management in Southern Africa, with focus on South Africa. It has been in operation since 1937 and is the only indigenous South African organisation for professionals in the water industry. A voluntary non-profit association, WISA has one international branch and seven regional branches, plus 14 specifically focused technical divisions providing support to its 3,000 members. Its mission is to “Promote professional excellence in the water sector through building expertise, sharing knowledge and improving quality of life” by providing platforms for the promotion, integration and application of scientific, engineering and management knowledge in the water-cycle through its newsletters, magazines, events and websites. WISA has two websites to assist in promoting its aims in the water sector: www.wisa.org.za (institutional) and www.ewisa.co.za (knowledge). eWISA was born in 2006 and is known as the capacity building arm of WISA. WISA understands the dire need to capacitate people working in the water sector and as such the WISA Capacity Building and Training Strategy was developed. The strategy focuses on three key areas: Coordination, Quality Assurance and Professionalisation. Coordination is being addressed through the partnerships with the Department of Water Affairs (DWA) and the Energy & Water Sector Education & Training Authority (EWSETA). WISA will address Quality Assurance through influencing the development and quality of training in the sector. Professionalisation will be addressed through the registration and professionalisation of the Process

Controllers designation. This project is one of WISA’s most important undertakings and will have a strong impact on the water sector.

WISA has recently approved the establishment of the 14th technical division whose focus will be on Water Reuse. With Southern Africa being an arid region the reuse of water has become critically important to ensure sustainable growth and development in the country” WISA has recently approved the establishment of the 14th technical division whose focus will be on Water Reuse. With Southern Africa being an arid region the reuse of water has become critically important to ensure sustainable growth and development in the country. The mission of this new division will be to facilitate the implementation of safe water reuse practice in the region. WISA is renowned for arranging the largest local water events in Southern Africa. The WISA Biennial Conferences have been running since 1987 and have been held almost every second year since then. The next Biennial Conference and Exhibition is set to take place 25-29 May 2014 in Nelspruit, Mpumalanga at the Mbombela Stadium. WISA expects over 100 exhibitors and more than 1,800 delegates. This

conference provides networking opportunities for the professionals of the sector as well as a strong technical programme which enables delegates to keep up to date with the latest advancements and research within the sector. WISA has partnered with DWA to host the Municipal Water Quality Conference, this is an important event for the sector as its main purpose is to award the top ten drinking and wastewater treatment plants in South Africa for excellence in achieving the highest standard of water quality. The most recent conference was held from 7-11 July 2013 at Sun City - the conference was well attended by over 800 delegates from both the public and private sector. The Young Water Professionals (YWP) form an integral part of WISA, these young professionals are the successors of the current stalwarts of the industry. The Young Water Professionals serve Southern Africa and have a strong partnership with the International Water Association (IWA). The YWP’s are assisting up and coming students and graduates by providing them with the platform to discuss and learn as well as hosting courses not only on technical issues but also softskills to enable the graduates the best start possible! WISA gives back to the community! As part of our social responsibility WISA visits various underprivileged schools and educates the young learners on the importance of water as well as providing them with stationery and water bottles, in addition to this WISA is also involved in various ‘career days’ where visit are made to secondary schools and learners are informed of the various career opportunities in the sector. To find out more or to join our dynamic organisation please visit: www.wisa.org.za

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rushing in Where

Copper fears to tread

Copper theft has sky-rocketed making the use of copper piping in the SAâ&#x20AC;&#x2122;s plumbing systems risky. Is composite pipe a viable alternative? Writer Nicholas Owsley

very once in a while industry will come up with a solution to a social challenge. Copper piping has been an industry favourite for residential and commercial plumbing for many years due its highly accommodating physical properties. In the past few years, however, copper theft has sky-rocketed and made the use of copper piping in plumbing systems risky and burdensome from a security point-of-view. Largely in response to this challenge, composite pipe technology has made major strides in recent years at improving product quality, and is increasingly becoming a viable alternative to copper. The product of 20 years of research and development in Germany, Ginde South Africaâ&#x20AC;&#x2122;s multi-layer composite pipe system is one of the larger players in the market.

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According to the manufacturers, these multi-layer hybrids of plastic and aluminium generally boast many of the best properties of copper piping while avoiding a number of the drawbacks. Typically, copper pipes display impressive temperature stability and can be exposed to very high temperatures, a property that traditional plastic pipes do not possess. Multi-layer pipes, however, due to their aluminium core, are highly heat resistant and can face a large range of temperatures without damage or contamination. Multi-layer pipes also match copper pipes in flexibility and strength, another of the major value-adds of copper piping. This allows the piping to be installed with far fewer fittings. Multi-layer piping technology maintains these benefits without compromising on necessities such as durability and pressure stability. This


water

Composite pipe technology has made major strides in recent years at improving product quality, and is increasingly becoming a viable alternative to copper”

technology is also exceptionally versatile and can be used in a wide range of applications, from underfloor heating and air conditioning systems to distributing natural gas. The physical properties of these pipes are evident, but in our local context what really gives them their special appeal is that people are not eager to jump fences in efforts to illegally procure them. Since 1998, copper theft has risen dramatically, and the theft of copper piping in residential and commercial plumbing systems has failed to escape the ambit of this illicit activity. Copper exposed on the outside walls of buildings is a prime target for copper thieves, but often even buried pipes have attracted thieves’ designs. Dudley Reid, the owner of Durbanbased Dudley’s Plumbers, notes that his customer base experiences on average two incidents of copper theft a week. Furthermore, the cost of this theft is often not limited to replacing the pipes, but can include

costly repairs as well since the process often causes widespread damage to property. Ryan Owsley, owner of Ryano’s Plumbing in Port Alfred in the Eastern Cape, says that he often encounters incidents of property damage from copper theft, often from thieves having to dig up piping or forcefully remove it from enclosing structures. “One of my customers had some piping wrenched from her ceiling and the water damage destroyed almost all of her furniture and caused major damage to her floor and ceiling. Almost everything in the house had to be replaced.” Owsley says that the insurance companies he works with are increasingly refusing to replace stolen piping with copper pipes due to the risk of second-time theft. Copper theft has a significant national impact. In 2012, Police Minister Nathi Mthetwa estimated that copper theft caused a R5 billion drain on the South African economy. This impact is driven predominantly by cable theft, but as the illicit trade in copper has grown so the theft in copper piping has grown with it. In light of these developments, multi-layer composite piping has gained traction as the product of choice in the global plumbing industry, and has also made inroads in plumbing systems in South African residential and commercial properties. Since 1999, Ginde Pipes, an international producer of Multilayer composite pipes, has expanded its distribution to 89 countries globally, and sells an average of 20 million feet of piping per month. Ginde SA, the South African branch of the international distributor, has also expanded its footprint and includes 33 agencies nation-wide, also supplying to 11 Southern African countries in total. U-Smart, another importer of multi-layer composite

pipes, has installed piping systems for a number of soccer stadiums and hospitals, indicating that this technology is becoming popular for use in large-scale projects. “The piping technology developed by Ginde and others has allowed residential and commercial property owners to enjoy many of the advantages of copper without the patent risk of damage to property, and the need to install sophisticated security systems to ward off wouldbe thieves,” explains Ginde SA MD Emil Visage. Undoubtedly, the scourge of copper theft needs to be stopped in its entirety, and it is up to the systems of justice to ensure that this harmful illicit trade is brought to a halt. The existence of illegal copper trade networks has significant ramifications for the economy as a whole, especially with regards to cable theft. However, multi-layer composite piping has proved to be a consumer’s solution to the problem of copper piping theft, and perhaps there are lessons here for other manufacturers who utilise copper and other precious metals in their products. Until such a time as the illegal copper trade is curbed, this technology appears to be the future of commercial and residential plumbing in South Africa.

Nicholas Ovsley

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S . A . M . E

W A T E R

W A T E R

WORKS The United Nations has declared 2013 the International Year of Water Cooperation. According to UN Secretary General Ban Ki Moon: â&#x20AC;&#x2DC;Water is central to the well-being of people and the planet, we must work together to protect and carefully manage this fragile, finite resource.â&#x20AC;&#x2122; Writer Ian Armitage Project manager Sheridan Halls

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ater. It is something we sometimes take for granted and it is often easy to forget its supply is finite. One day it will run out. So maintaining sustainable supplies for future generations is one of Africa and the world’s biggest challenges. And this fact makes water and wastewater treatment vital. Enter South Africa’s S.A.M.E Water, a “resourceful dynamic company which offers a wide range of services to the water industry”. The company was formed in September 1966 and has a “successful range” of wastewater treatment equipment “designed to fulfil an entire spectrum of needs from the most basic to the most sophisticated equipment available,” according to managing director Frank Schulz. “We have our own well-equipped manufacturing assembly workshops and skilled staff of approximately 80 people in our Johannesburg and Cape Town offices. Our technical skilled staff include: mechanical engineers, process engineers, environmental engineer, chemical engineers and auto-cad/solid worx drawing program operators and full time maintenance and installation crews,” he says. S.A.M.E. Water’s aim is to offer a “full scope” of services, “a type of one stop shop”. “We do tender preparation, project planning, design, manufacturing, installation, commissioning, successful handover and aftersales of a full waste and water treatment plant. It is all planned under one roof,” Schulz explains. Just how important is its work? Well to give this some context, South Africa’s Water and Environmental Affairs Minister Edna Molewa recently claimed that there could be a shortage of clean water if South Africans do not work to up conservation efforts.

“If we continue with this trend of using water as if it is an infinite resource, we may find ourselves in some form of trouble,” she said at a New Age breakfast briefing. “There have been many predictions and pronouncements in the past... that say South Africa will run out of [clean] water.” She said this was a possibility if South Africans did not help to prevent it. “We are, however, confident... because our water strategy and our plans for the future are all geared towards sustainability and security of supply,” Molewa said. “We are not sitting back and we want to rely on you as South Africans to work hard. Every one of us must contribute to ensure this statement that is always made is not a reality.” It means business for S.A.M.E is booming. “South Africa’s wastewater infrastructure is under capacity for its population size, and most existing water treatment plants do not meet environmental standards,” says Schulz. “We specialise in wastewater treatment solutions, from head of works equipment, sluice gates, grit removal, primary clarification, mixing, aeration, secondary clarification, sludge handling, pump stations, and pond/storage dam dredging. We have large manufacturing facilities, back-up on repairs, maintenance and equipment spares. Our repairs and maintenance of equipment is of high standard, so much so that it is very common for us to be called in to do repairs/maintenance on equipment we didn’t originally design or install.” “If our client buys our head of works screening equipment, they can get a complete supply: Inlet sluice gate, screen, conveyor system, waste compaction, waste washing and waste container system,” he adds. What makes S.A.M.E different is that most of its competitors will specialise in certain areas and don’t Continued

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offer the one-stop shop for which it has become famous. Over the past three financial years the business has seen turnover increase by 30-40 percent annum. “One of the highs of the last 12 months was being awarded the first phase of the mechanical equipment for the Acid Mine Drainage contract (AMD),” says Schulz when asked to summarise the year. “That contract does represent a challenge in itself, with its sheer size. It is equal to a year’s turnover and we also have to handle our normal yearly work.” The business has adapted to meet these new demands. New internal structures and processes have been put in place and dedicated managers have been appointed to handle “specific functions”. “Previously there was more multitasking. We’ve had to adapt,” Schulz says. Of course cash flow is always a challenge and S.A.M.E is no different to any other business in that respect. It is however in the fortunate position that its solutions meet almost every requirement. “With most of the government/municipal tenders that have been and are in process, our in-house technology will suit 70 to 80 percent of them,” says Schultz. “We can really pick and choose the contracts that we want to bid at the moment. It’s obviously another big task getting the award.” “As previously mentioned a large majority of our wastewater plants do not meet environmental standards, hence there is a definite increase in repairs and replacement of new equipment into existing plants.” Of course cheap imports continue to flood the market and S.A.M.E is quick to acknowledge that. “Like most manufacturing companies, one of our biggest challenges is cheap imports and our technology which is not suited for Africa conditions,” Schulz says.

S.A.M.E’s advantage is that it was quick to realise how fast the industry would grow. “Five years ago we realised that there was going to be a big growth in our industry, so we purchased adjoining property to our Johannesburg office and built additional workshops, stores and a complete new contracts/technical office block. We basically doubled our facilities. I’m hoping we are now okay for the next five to 10 years.” That though is difficult to predict. It is almost impossible to tell what contracts will pop up and when. Or what the demands of the market will be. “That is the unpredictable nature of the industry,” says Schulz. “The contracts definitely require equipment that is much bigger to say five or 10 years ago and at this stage we are going down the route of using sub-contractors to handle overload.” This allows S.A.M.E time to focus on innovation and new technology, he says. “We will listen to our clients, reengineer existing equipment or try and find new technology in other counties. The U.S. has been very good over the last three or four years.” In terms of future potential, Schulz is optimistic about the fortunes of S.A.M.E’s inland dredging equipment business.

A

s a newly established stainless steel processor, supplier and service centre National Stainless Steel Centre is the market leader in the South African Stainless Steel Engineering industry with over 30 years of combined experience and expertise in this industry. Our Head Office is conveniently located in Jet Park, Johannesburg. NSSC offer a broad range of value-added services to our clients’ requirements, and with our state-of-the-art processing machinery and experienced staff we supply a product of the highest quality, meeting TUV international standards. We carry a wide range of stock on all locally manufactured grades of stainless steel in 304L, 316L, 3CR12 and numerous other grades including oversized plates in 6x2m sizes. In addition we can offer imported grades of stainless steel plates, coils, pipes and tubing not available locally, specific to our clients’ requirements. We have the latest technology in laser cutting and high definition plasma cutting with processing facilities from 0.9mm up to 100mm thick. NSSC is proud to be an ISO9001 certified company. Tel +27 11 552 8800 Email info@nssc.co.za

www.nssc.co.za

Water is a finite resource

Continued

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NATIONAL STAINLESS STEEL CENTRE

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S . A . M . E

W A T E R

There is huge demand for the types of services S.A.M.E offersâ&#x20AC;?

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“We started that new division four or five years back and it is basically a big submersible pump mounted on a floating barge, which is driven up and down a sludge waste pond. The sludge is pumped out of the pond to land for further processing. The big plus is that our client does not have to isolate the pond being dredged.” And opportunities exist all over Africa, not just for this part of the business – but all of its services. “Our positioning is very good I believe, mainly because we have equipment experience that we know functions well in Africa. The equipment is simple to maintain and operate,” Schulz says. “We have started supplying some big projects over our borders; mainly Namibia, Zambia and Botswana, I hoping it will grow from here. Zimbabwe / Mozambique should also be interesting in time.” “Our biggest stumbling block would be to find active partners in these and other countries in Africa.” Growing populations and the increasing shortage of water means there will always be a huge demand for the type of services S.A.M.E offers. Schulz feels African governments could do much more to secure our water future. “Government decision makers must spend their finial allowances - which is generally not enough - wisely,” he says. “They have to choose contracting companies that have history to do the work. Often enough, these government departments will award work to European/American companies that don’t have Africa experience.” “I would also like to see companies in Africa have a financial advantage in local contracts. Our African nation is growing not only in population but also in wisdom and there is so much more we can do locally. I would like to see “In Africa” given the right opportunities.” To learn more visit www.same.co.za

EOH Automation Specification EOH Automation Specification combines state-of-the-art technology and best practice to create smart electrical engineering solutions that are efficient, integrated, safe and secure by enhancing efficiency, availability, creating optimum plant and process control and providing effective infrastructure installation. The EOH BU of Automation Specification focus on turn-key turnelectrical engineered solutions. We provide solutions incorporating integrated 11 KV intake substations to the final process control and SCADA requirements. We have a highly skilled team of engineers which are able to provide solutions, tailor made, to customer requirements. Automation Specification Business Unit: 1336 Howick Close, Waterfall Park, Bekker Road,Vorna Valley Midrand, 1685 Telephone: 087 295 0701 OR 087 295 0702

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N u water

water lEADI N G THE WAY WITH

NuWater is a specialist provider of solutions and services for the treatment, reclamation and re-use of wastewater as well as the desalination of sea and brackish water. Writer Ian Armitage Project manager Sheridan Halls

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w

a

t

e

r

hen apartheid crumbled in 1994, an estimated 14 million South Africans lacked access to a formal water supply and about half the country – some 21 million people – had no formal sanitation, according to the Department of Water Affairs. Since then, access to water has increased dramatically, but backlogs persist. At least 26 towns in the Free State, for instance, currently have no water at all in certain areas, water supply disruptions, or extremely unhygienic water coming from their taps. Water problems in these towns are mainly being caused through water treatment plants and pipes that are dilapidated while some dams are completely dry. Now, as that sinks in, this is a great point at which to introduce NuWater, a specialist provider of solutions and services for the treatment, reclamation and re-use of wastewater (and the desalination of sea and brackish water). NuWater can pretty much do it all and a central part of its offering is based on Reverse Osmosis (RO), the technology of choice for large-scale desalination applications, be that desalination of seawater or wastewater containing high levels of dissolved salts. “We service our two main geographical markets of sub-Saharan Africa and South-East Asia from our offices in Cape Town and Singapore,” says NuWater’s Michael Avant-Smith, who explains that the firm was established in 2010 following the acquisition of the GrahamTek largediameter RO technology patents and intellectual property. Since then the company has secured a number of significant projects, specifically in the mining sector. “We are continuing to develop large-scale wastewater reclamation and seawater desalination projects in a number of countries in Asia and Africa based on our 16” RO technology and our

successful projects in Singapore,” says Avant-Smith. More recently NuWater has similarly pioneered completely modular largecapacity wastewater reclamation and seawater desalination plants based on its 16” RO technology. These plants are extremely compact, rapidly deployable and where necessary re-deployable. “These new ‘modular & mobile’ plant designs are based on the technologies and learning’s in use in our more conventional Singapore plants but are engineered with a very different mindset – one that prioritises speed of deployment and flexibility,” Avant-Smith says. In addition to confirming the technical feasibility of large-scale completely modular and re-deployable plants, Nuwater has also taken the opportunity to prove that such plants present the opportunity for commercially viable shorter-term ‘own & operate’ models. In late 2010 Anglo American awarded NuWater a contract to treat up to 20 million litres per day (MLD) of mine wastewater at it New Vaal Colliery near Johannesburg. Counter-intuitively the issue at the mine was that they had too much water on site, were unable to store this water, and therefore needed to get rid of the water back into the environment. The nature of this wastewater, pumped from the coal pits, however made it unsuitable for either discharge into the adjacent river or reuse as industrial process water. Suspended solids and dissolved salts in the wastewater therefore needed to be removed first. “We were able to offer a complete service where the mine paid for the water treatment rather than investing in capital equipment and taking on the associated technology risk. While this ‘Build, Own and Operate’ model is not uncommon for conventional infrastructure with 15 or 20 year Continued

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N u water

contracts allowing sufficient time to recover the upfront investment in the plant, this contract was for an initial period of two years only. This project was therefore only viable due to NuWater’s unique large-scale modular and re-deployable plant design,” says Avant-Smith. NuWater commissioned the first treatment modules within 12 weeks of contract signing and then progressively added to capacity up to the current 20 MLD. This further demonstrated the flexibility of the plant as capacity could be added (or removed) without impacting the operation of the other existing modules. The high quality of the treated water was also such that it could be routed to the mine’s neighbouring Eskom Komati power station for use as cooling water thereby completing the wastewater ‘reclamation and re-use’ cycle. Following successful completion of the initial two-year contract period the contract has now been “renewed for a further three years”. “The success at Anglo American has resulted in strong demand for our solutions in mining sector,” AvantSmith stresses. NuWater has also demonstrated the suitability of its completely modular and rapidly deployable plants for seawater applications such as the 1.5 MLD seawater desalination plant commissioned for the Knysna Municipality in South Africa’s Eastern Cape Province. This plant is used to supplement potable water requirements during the peak summer holiday season when rainfall is low. “Having demonstrated our technology, pioneering plant designs and exceptional execution capabilities in both conventional and unconventional wastewater reclamation and seawater desalination applications, we believe NuWater is uniquely positioned to play a central role in both strategic and

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tactical projects, particularly in our target geographies and industry sectors,” says Avant-Smith. “We are often faced with the question of whether our modular plants are temporary in nature. We see our plants simply as flexible, able to meet our customer’s immediate requirements and to adapt to their changing needs, be that adding or removing capacity. NuWater plants are designed to have a useful life of at least 10 years, with final lifespan depending on the nature of the application and how demanding the operating conditions are. “Our next generation modular ‘packaged’ plants will also have a more permanent feel to them, as the individual modules will combine into a single plant structure. While this will not reduce their flexibility it will address some of the perception issues we find in certain sectors that these types of plants are temporary in nature.” Demand for safe and clean water is undoubtedly going to increasingly outstrip supply. This is no longer an issue specific to developing countries but is increasingly evident in more developed countries as reliable water supply challenges are exacerbated by unpredictable climatic conditions. The recent financial crisis has also highlighted the constraints on central and local governments in developing the required infrastructure. “Given the supply-side constraints it obviously makes sense for us all to conserve water,” agrees AvantSmith. “An important aspect of water conservation is however an appreciation of the value of water. This is an area where we believe there is still a long way to go. In many countries water is heavily subsidised, creating a false impression that water is cheap. In addition the true costs of water contamination are not

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FILCON FILTERS Filcon Filters has made a name for itself through a three pronged strategy: Quality service, quality products and providing clear solutions to filtration applications. Filcon is a certified and audited ISO 2001.2008 quality managed company which ensures quality service. Customers are treated fairly and with dignity. Quality products are sourced from a number of well known international filter manufacturers and we also manufacture a range of filters, separators and strainers in Johannesburgi. Management’s philosophy is to position Filcon as a solution provider, not just a seller of filtration products. This is achieved through management’s many years filtration experience. Tel +021 702 0979 0860 Email info@filconfilters.co.za

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NuWater is ‘leading the way with water’


water

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factored into the price we pay for our goods and services. Facing up to the true cost of water is therefore generally being deferred. The cracks however are starting to show and water distress will undoubtedly become more common over the coming years. “At NuWater we are focused on positioning ourselves to help provide some immediate solutions to reclaim and re-use otherwise unusable water, including seawater. We see ourselves having a role to play in both tactical and strategic projects.” 2013 is proving to be another year of solid growth for NuWater and it has “a strong and growing pipeline of projects for the next 18 months”. Together with local partners it has “growth plans in a number of Asian and African countries through 2014”. “Our main sector focus will be on Mining and increasingly on Oil & Gas, particularly relating to the provision

of injection water for Enhanced Oil Recovery and the treatment of produced water,” concludes Avant-Smith. “The Oil & Gas sector obviously has a number of things in common with the mining sector and we are therefore able to leverage our technology, expertise and experience in this sector. The industry is also growing rapidly across Africa and South East Asia and unconventional oil and gas projects often require specialist water and wastewater treatment. In some cases additional remediation work is also required. “At the same time we are engaged in a number of projects to provide potable drinking water to towns and private residential developments in Africa using our modular packaged plants.” NuWater has fantastic relationships with academic institutions and with industry bodies

such as WISA in South Africa. The broader water industry has been slow to adopt new technologies and is generally very conservative. Therefore in order to be successful as a technology-led company in the sector, NuWater has recognised the need to be creative about how to take its products and services to market and continues to put in the hard work in convincing customers that its technologies will solve their problems. The company has been very successful in positioning itself to address real and immediate water reclamation and desalination challenges, first in water constrained Singapore and more recently in the African mining sector where wastewater treatment is required to address operational and regulatory risks. To learn more visit www.nuwaterglobal.com.

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A man z â&#x20AC;&#x2122;

a b ant u

S erv i ces

Water for the

people Amanzâ&#x20AC;&#x2122; abantu Services was established as a private South African company in 1997 with the aim of providing water supply and sanitation services for peri-urban and rural populations in the Eastern Cape, one of the poorest regions of South Africa. Writer Susan Miller Project manager Sheridan Halls

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ife without clean water and sanitation is hard to imagine for most city dwellers however that’s the harsh reality for many in South Africa’s peri-urban and rural areas – and the situation needs fixing urgently. One company, Amanz’ abantu Services (Pty) Ltd (the name means water for the people in Xhosa) has made its mark in this often-forgotten sector. Based in South Africa’s Eastern Cape, the company was formed after the 1994 elections when the newly democratic South Africa re-incorporated former ‘homelands’ like the Transkei and Ciskei under one umbrella – and took on the provision of their services too. The National Department of Water Affairs issued a challenge to the private sector to assist them in rolling out – on a turnkey approach – the then Reconstruction and Development Programme. Oliver Ive, Managing Director of Amanz’ abantu, says the company grew out of “five or six large, well-established firms who came together with the objective of implementing a turnkey rollout for water services for the rural poor.” And it’s kept going – even beyond the initial period governed by a government contract, which Mr Ive feels has given the firm “a certain character”. “We had to go out there and find opportunities. We have kept in the same or similar market place of water services provision, although we have expanded to look more holistically at human settlements – but it’s always a developmental focus that we’ve had,” he says. While the company has worked outside the Eastern Cape, it still finds most of its work there, which is an indictment on the conditions still facing the rural poor in the province. Ive is well aware of this. “A lot of people look at South Africa and say how well we are doing because we have got a First and Third World combined, they don’t see that there is still a lot of poverty… we still have millions of people who don’t have access to basic services.” He says while there has been major strides he has also seen “delays in getting the job done and people taking their eye off the ball.” Amanz’ abantu is a private company responsible to its shareholders – two thirds of which are historically disadvantaged firms and individuals, but Ive often uses language that sounds like he might be working in the Non-Governmental sector. While he’s clear that the company has to make a profit and keep its costs down, he’s also insistent that it works Continued

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a b ant u

S erv i ces

Ive is unsure of Impilo’s exact future but says “let’s see how it goes” because there is a space and someone needs to fill it. “It’s creating business where there was none and moving into a space where there is an appalling lack of service,” he stresses. There’s interest in the concept and the pilot project is being ‘extended out’ while other interested parties include the Departments of Health and Education and local municipalities. And it’s also about maintenance, as Ive points out – often toilets are pit latrines or cess pits as there is no running water – so they have to be maintained over a long period of time in a sustainable manner. And because of health and environmental concerns about for the community. He stresses that co- create its local partners and then gives unregulated work, he feels it’s important operation is “imperative” for working them a set of procedures to follow to to get the sector regulated. “We can in the rural areas and the involvement run their business in the water sector. work with small businesses and teach of the community is all-important. “It “We give them a packaged business them what is right but the Government is better to be part of the process and and expect that they will work with also needs to come to the party,” he says. know where the risks lie,” he says. us in collectively providing services to “We need to come up with solutions that While the company is still very municipal and public clients. The idea aren’t just small business and job-creation much involved in providing water is that we can create jobs with these and sanitation it is assisting with small businesses and a network of these friendly but that can also be responsible in the way it’s done.” rolling out social housing. Ive says small businesses where we can offer There is potential for growth in this there has been failure in providing our public service clients a well thought sector with the African Development social housing on the part of the through and sustainable business Bank and the Bill and Melinda Gates’ Government because they come out format to meet their needs.” Foundation ‘pumping money into with “huge plans” and then find the Impilo Yabantu’s first major service providers and contractors undertaking was the Butterworth Water research to see how things can be they have engaged don’t have the and Sanitation Pilot Project to service 400 done better’. Ironically for a private sector business, “necessary skills or capacity to carry schools in the Butterworth educational Ive is keen to see more competition out or finish the works.” district. Many of the Eastern Cape’s in the water services sector because It’s something Amanz’ abantu takes schools don’t even have toilets or their the sector and the market “need it to very seriously and Ive stresses that toilets and water systems don’t work. what’s needed is “an established set of Made possible by funding from Irish become good at what it does.” While he is hopeful that things are procedures and people who know how Aid, the project designed and tested moving he feels ideological constraints to do the work at the right quality.” the social franchising partnership can get in the way, especially from Indeed they took it so seriously model to carry out the operation and those who view the private sector that they created Impilo Yabantu maintenance of water and sanitation as simply profiteering and prefer (Hygiene for People) in 2009, a wholly- infrastructure and facilities. owned subsidiary and water services This meant in effect that 400 schools Government to step in. “I firmly believe that a private franchising service. Ive says the idea had their sanitation facilities overhauled solution allows so many more things to is to “have it as a franchised business – and in some cases had toilets built happen on the ground.” to employ or partner with small and for the first time. It was acclaimed At present Amanz’ abantu is helping emerging locally based businesses.” a success and the Department of to build the Mndwaka Dam near HoleMerely by identifying potential Education has already lauded its In-The-Wall on the Transkei coast. entrepreneurs, Impilo Yabantu helps to possibilities in future projects. A rural water project in Peddie from the early days of Amanz’ abantu

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water

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Working with business partners, the project employs labour intensive methods using a rubble masonry concrete technology which involves carrying the rocks and placing the rocks by hand into a mortar bed. It’s quite a sizeable dam, with a 29m high centre arch wall and it will help to secure water for the wider area. The point of adopting this labour intensive approach is to offer employment to local ‘unskilled’ people who might never have worked before – it’s a short-term solution but gives at least 150 people work for the duration of the project. As Ive points out, there are answers to the difficulties of providing rural water services. “There is definitely a need for a locally-based operations business or network that can provide services. Why should people be paying extraordinary amounts of money for highly-trained people to travel from the cities when a lot of it could be done – because of its routine nature – by self-motivated local entrepreneurs?” Many of those still waiting for sanitation or running water would no doubt agree…

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L es i ra - T eq

Intellig

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water

g ewater nt

metering Lesira-Teq sells and supports intelligent metering technology and equipment in South Africa. Writer Ian Armitage Project manager Eddie Clinton

esira-Teq has established itself as a leader in South Africa’s intelligent water metering market. The firm was established in 2003 and the innovative blackowned company has introduced a water meter solution to the market which has transformed the industry. “Lesira-Teq is a leader in the intelligent metering system industry in South Africa,” the company proudly claims on its website. “Lesira-Teq provides a comprehensive range of state-ofthe-art technology in over 350,000 intelligent water meters to some of the largest municipalities in South Africa including the City of Johannesburg, Mangaung Metro Municipality, City of Cape Town and many other water service providers, district and local municipalities.” Why the need for such equipment, you might ask. Well, there is a growing awareness that water is a finite resource and water demand management has become the mantra for water authorities across the globe – it’s why Lesira-Teq does so much work with local municipalities. Its meters provide the end user easy access to important information about their water usage, and, importantly also educates them on how best to manage and preserve water. Talking to Africa Outlook, LesiraTeq’s marketing manager Naphtali Motaung described its technology as “completely unique”. He said it offers various options for end users. “For instance, our water meter enables the end users to monitor their water usage throughout the month and therefore helps to save water - and we have step tariffs,” he said.

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Of course this is vitally important when it comes to South Africa’s water conservations efforts – one of the “biggest challenges” facing the water industry and the country according to Motaung. “It is a big issue,” he told our researcher. Lesira-Teq remains a leader in this important drive. “We need innovative products that can help educate our citizenry on the importance of water conservation. We need meters with functionalities that will enable end users to interpret numbers so as to contribute to a culture of water conservation on a large scale in our country,” Lesira-Teq’s managing director, Edwin Sibiya, said in a recent interview with Water & Sanitation Africa Magazine. For some years the electricity metering industry has been developing smart meters for various applications. Water metering technology has always lagged behind, but certainly seems to have turned the corner through the innovative approach of companies like Lesira-Teq. While populations increase every year, the quantity of water available remains constant, if it isn’t diminishing, making conservation extremely important. Experts agree that all that can be done on the supply management side is to increase storage facilities and improve reticulation systems to handle the water more efficiently. Much more progress can be made in terms of managing water usage and there is a realisation that a large amount of the water supplied, at great expense, to the end user, literally goes down the drain without being used for its intended purpose. Think here about instances when you brush your teeth – do you leave the tap running or turn it off? That’s just one example. This though is where meters play an important role, helping to educate consumers and help them manage consumption at consumer level.

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Lesira-Teq’s offering is ‘unique’


water

The challenge for the water metering industry is to produce a metering system that is flexible enough to accommodate the complex requirements of both water supplier and water consumer and Lesira-Teq seems to be winning the battle” Contact: Tel: 012 804 5678 Fax: 012 804 6502

The challenge for the water metering industry is to produce a metering system that is flexible enough to accommodate the complex requirements of both water supplier and water consumer and Lesira-Teq seems to be winning the battle. “The Lesira-Teq intelligent water system is a completely unique and totally integrated design which offers five modes of operation in one meter,” the company’s website says. “All our intelligent water meters are manufactured locally and... can detect water losses caused by theft or leakages, saving water resources and costs.” “Our system employs step tariffs; provides consumption and tariff rate information at a glance and provides a warning when set consumption limits are approached.” It also allows “the user to choose the type of meter required to meet individual needs” and “automatically rewards the user financially for exercising control”. “Large scale projects proved that up to 80 percent of normal water consumption can be saved,” Lesira-Teq says. To learn more visit www.lesira.co.za.

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A H ealth y

T-Systems are part of a multinational company that spans the globe. However that doesnâ&#x20AC;&#x2122;t stop them paying attention to the details when working with local communities in South Africa. Writer Chris Farnell Project manager Eddie Clinton

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eutsche Telekom AG is a telecommunications giant. The company behind, among other things, the T-Mobile network, is well known for providing landlines, broadband Internet and digital television. In amongst all of that are T-Systems, a globally recognised ICT solutions brand. “We have locations in more than 23 countries, we’re constantly opening new offices,” explains Ben Maree, head of Healthcare Sales and Solutions for T-Systems South Africa. “There are about 252,000 Deutsche Telecom employees worldwide, with around 48,000 of those working for T-Systems. In South Africa T-Systems have around 2,500 employees in our two major centres in Johannesburg and Cape Town.” T-Systems bring its global resources and local expertise to a whole range of environments in South Africa. “We work in a number of different market sectors but our main industry focus is on Energy, Healthcare as well as Travel, Transport & Logistics, and we’ve just started investing in the Education sector,” he explains. So what is the secret to T-System’s success? According to Maree it’s the product of the wide range of knowledge and skills that the company has access to. “We can really provide an end to end solution, touching on all the ICT elements,” Maree explains. “This, combined with our good geographical positioning, means we can get the right resources to locations across the country.” One tool that has become increasingly relevant to T-Systems solutions is the application of cloud solutions, which Maree is a determined advocate for. “From a technical point of view we have cloud solutions which we can provide to clients, saving them Continued

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25 percent or more on hardware and infrastructure,” Maree says. “T-Systems is supported by a particularly well built infrastructure between South Africa and the rest of the world, particularly Europe. This means that we can have South African companies hosting their data in Europe, which we use in tandem with our own data centres in South Africa, managing the data and infrastructure for multiple companies.” However, bringing in the latest techniques from outside isn’t enough for T-Systems to succeed in South Africa: they also have to have an intricate understanding of the issues for local businesses. “We’re a level-3 certified BBBE employer and we’re moving to level-2 certification soon,” Maree tells us. “We currently have a 30 percent BBBEE ownership in the company, which is actually pretty unusual for a multinational, but we see it as an important part of taking part in the South African economy.” While the company is part of an extremely large international operation, it’s also used to adapting to local circumstances. “We are focusing on verticals that are close to the important issues for South Africa,” Maree emphasizes. “Energy is a huge topic in South Africa right now. We don’t have enough energy provision from the suppliers, so across the country there are regular scheduled outages where energy is not available in certain areas for an hour or two. But the challenge is not the amount of energy available, but rather how the available energy is managed. So one of the big areas we’ve been focusing on is developing and implementing solutions for that.” Of course the other area that T-Systems are known for in South Africa - and Maree’s personal area of interest - is the healthcare industry. “We have healthcare solutions in several hospitals

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in South Africa; the most recent project we concluded was a rollout to 56 hospitals for one of the largest hospital groups in South Africa.” The achievements T-Systems have made in South Africa’s healthcare sector are truly impressive. When asked about the company’s greatest challenges, Maree immediately recalls implementing a less paper-reliant, digital solution for the first of the many South African hospitals the company would go on to service. “At that stage what we were proposing was seen as very new thinking,” he tells us. “We brought SAP solutions for healthcare to South Africa. Because it was so new, we had to bring into South Africa and establish the knowledge needed to implement and maintain those systems.”

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T-Systems is supported by a particularly well built infrastructure between South Africa and the rest of the world, particularly Europe. This means that we can have South African companies hosting their data in Europe, which we use in tandem with our own data centres in South Africa, managing the data and infrastructure for multiple companies”

This was where T-Systems’ international connections proved invaluable. Maree explains, “We brought a whole family of people to South Africa to help implement the system. They introduced thought leadership around how hospital information systems should work and it was a huge success.” Part of the reason T-Systems was able to be so effective in introducing these solutions was that they were involved in the project from the ground up. “We were brought in when they were laying the foundations, so we were part of the setup of the network, how Wi-Fi solutions etc. where we worked in partnerships with other specialists. The important thing is to partner with the right people in South Africa. We don’t just plug in a solution; we look at the challenges unique to every situation and how to get around them within the available time frame.” In the case of this hospital T-Systems was able to fully implement their solutions within nine months, a record for any SAP involvement in South Africa. “The hospital had a strict deadline for the opening date and we were brought into the project a little late, so we had to be creative,” Maree says. “In the end the taste of success with that first project is an achievement we’re extremely proud of.” Maree is philosophical about the difficulties these projects sometimes present. “You have to face challenges, and we’re currently looking at sharing our experience within the public sector. We are becoming recognised as an advisor to the government, due to our knowledge of the health, energy and transport sectors, and it’s because we’re willing to partner and work together to overcome challenges.”


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SHODEN Data management in Healthcare – saving lives through a holistic approach The healthcare sector has growing data management needs and a requirement to manage patient information securely while making it speedily available when needed and saving lives in the process. The cost of investing in Big Data solutions needs to be weighed against the value created. That’s why organisations that are faced with a challenging future from a budgetary and cost perspective should look at the Data Economics and how managing and extracting data can create value. St Josef Krankenhaus, a modern and successful hospital based in Moers in Germany, is an example of how the industry can evolve from a data management point of view. Rapid growth of the institution means that it now employs over 1150 people to provide care for patients. To support its huge data volumes securely, the hospital chose a File and Content solution based on Hitachi Content Platform and Hitachi Adaptable Modular Storage 2100. HDS was able to assess the need, examine the value the management and extraction of data could deliver and was able to show that the value created through a holistic data management approach would mean greater efficiencies and overall service, which compared to cost was far greater.

Tel +27 11 745 0100 Fax +27 11 463 9224 www.shoden.co.za

Another example is an HDS m-health project with Hitachi Medical, whose sensors are fitted on patients to pick up heartbeat, movement and skin moisture and automatically transmit the information to a computer system. This means that the patients’ lifestyles can be proactively managed and any issues can be flagged early and addressed. Data has no meaning on its own and there needs to be a shift in how we think about the potential use of data. The possibilities of tapping into that information are endless and we can literally save lives.

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Pioneering healthcare in Ghana

The Korle Bu Teaching Hospital is Ghana’s “premier healthcare facility”. It is also celebrating its 90th birthday. Writer Ian Armitage Project manager Eddie Clinton

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hana has made significant improvements in healthcare and there have been remarkable achievements when it comes immunisation rates and under-five mortality in the past few decades. A lot of thanks must to go to the government and its development partners. However more can always be done. Established on October 9 1923, the Korle Bu Teaching Hospital continues to “blaze the trail” when it comes to healthcare and over the last 90 years has grown from an initial 200-bed hospital to a world class medical facility with over 2,000 beds. That makes it Africa’s third largest hospital. It is also the leading national referral centre in Ghana. “Korle Bu, which means ‘the valley of the Korle lagoon’, was established as a General Hospital to address the health needs of the indigenous people under Sir Gordon Guggisberg’s administration, the then Governor of the Gold Coast,” the hospital’s website says. “Population growth and the proven efficacy of hospital-based treatment caused a rise in hospital attendance in Korle Bu. By 1953, demand for the hospital’s services had escalated so high that the government was compelled to set up a task force to study the situation and make recommendations for the expansion of the hospital. The government accepted and implemented the recommendations of the task force which resulted in the construction of new structures, such as the Maternity, Medical, Surgical and Child Health Blocks. This increased the hospital’s bed capacity to 1200,” it adds. Indeed, the hospital has changed considerably over the years and gained teaching hospital status in 1962, when the University of Ghana Medical School (UGMS) was established “for the training of medical doctors”.

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The UGMS and five other constituent schools are grouped under the College of Health Sciences to train an array of health professionals. All the institutions of the College however, undertake their clinical training and research in Korle Bu. “At the moment, the Hospital has 2,000 beds and 17 clinical and diagnostic Departments/Units,” Korle Bu’s website says. It has an average daily attendance of 1,500 patients and about 250 patient admissions. “Clinical and diagnostic departments of the hospital include Medicine, Child Health, Obstetrics and Gynaecology, Pathology, Laboratories, Radiology, Anaesthesia, Surgery, Polyclinic, Accident Centre and the Surgical/Medical Emergency as well as Pharmacy,” its website adds. “Other Departments include, Pharmacy, Finance, Engineering, General Administration.” The Hospital also provides sophisticated and scientific investigative procedures and specialisation in fields such as Neuro-surgery, Dentistry, Eye, ENT, Renal, Orthopaedics, Oncology, Dermatology, Cardiothoracic, Radiotherapy, Radio diagnosis,

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Paediatric Surgery and Reconstructive Plastic Surgery and Burns. The Reconstructive Plastic Surgery and Burn Centre, the National Cardiothoracic Centre and the National Centre for Radiotherapy and Nuclear Medicine in particular also draw a sizeable number of their clientele from neighbouring countries such as Nigeria, Burkina Faso and Togo. “Korle Bu Teaching Hospital continues to blaze the trail when it comes to the introduction of specialised services,” its website says. “It recently carried out the first ever kidney transplant in Ghana. It is one of the few hospitals in Africa where DNA investigations are carried out. Other specialised services the Hospital provides include brachytherapy intervention for the treatment of prostate cancer and keyhole surgeries. Plans are underway to venture into molecular testing and employ the use of cutting edge technology. All these are part of the grand plan to offer a wider spectrum of specialist care to position Ghana as the hub of health tourism within the West Africa Sub region.” Korle Bu’s cancer ward, which is amongst the best in West Africa, recently underwent a radical facelift with help from Vodafone Ghana.

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K orle

B u

T each i n g

The new “Herbert Osei Baidoo Cancer Ward” was established as a lasting legacy to Herbert Osei Baidoo, a member of the Vodafone board, who passed away last year and it uses “21st Century technology to enhance the treatment of cancer, which is one of the leading causes of death in Ghana and the leading cause of death worldwide according to the World Health Organisation,” Korle Bu says. The 650-square-foot ward is located on the second floor of the Surgical Department and was in need of renovation to “provide the necessary standard of care for patients with cancer”. It now has a brand new chemotherapy suite with reclining armchairs and entertainment; a new cytotoxic room, where pharmacists can mix and store toxic drugs safely; an increased and equal number of beds for male and female patients; new washrooms with en suite facilities; air

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conditioning throughout the ward; and a new waiting room for visitors and families. “In a further move to enhance the treatment and recovery of patients, Vodafone and RLG have supplied handsets and airtime, that will be given to doctors, nurses and patients, to help them stay in touch and ensure that care plans are being followed,” Korle Bu said in a statement. “Vodafone has also implemented a maintenance programme with Korle Bu to ensure the long-term sustainability of the ward.” Kyle Whitehill, CEO of Vodafone Ghana said: “We demonstrated our passion for healthcare with the launch of our award winning TV programme Healthline, which is all about empowering Ghanaians to take control of their health. Transforming this ward into a world-class cancer treatment facility is our way of

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contributing towards the delivery of improved health care for Ghanaians.” Vodafone has also completely transformed the Children’s Cancer Unit. “We are absolutely delighted and proud to have such world-class facilities in our hospital. The entire team is excited about continuing to provide improved standards of care to cancer patients in Ghana,” said Professor Afua Hesse, CEO of Korle Bu Teaching Hospital. Ghana has one of the best healthcare systems in Africa but there is always room for improvement. The government is looking at raising sector spending and reforming the medical system as it aims to honour the Abuja Declaration pledge and achieve the UN’s Millennium Development Goals and ensuring universal access to basic healthcare. To learn more about the Korle Bu Teaching Hospital visit www.kbth.gov.gh.


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M o z am b i q u e

untouchables

The

Despite its huge share of Mozambiqueâ&#x20AC;&#x2122;s carbonated drinks market, Coca-Cola Sabco remains thirsty for growth. Writer Susan Miller Project manager Eleanor Watson

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&

ith its huge 87 percent share of the carbonated drink market in Mozambique’s burgeoning economy, Coca-Cola Sabco looks pretty untouchable. However Country Manager Simon Everest still has big plans to grow the brand - and expects double-digit growth in the next two to three years. Aware that new competitors are being drawn by Mozambique’s increasingly attractive economy as oil, gas and mining operations grow, he is working to raise the company’s game. One of the world’s most recognised brands, Coca-Cola has clear advantages in Mozambique. It’s been operating there since 1994 when restrictions on South African businesses operating in Africa were lifted and it’s built up enormous brand loyalty, a big factor in Africa’s markets. The company also has what Everest describes as “the best distribution system in Mozambique and 1,000 experienced staff members” and it’s strategically placed throughout the elongated country with three plants – one in Nampula servicing the North, another in Chimoio servicing central regions and a plant in the capital Maputo servicing the Southern provinces. Everest says the locations were carefully chosen because of their geographic and strategic importance, with Nampula covering Northern provinces and Chimoio placed equidistantly between the port of Beira and the coal-producing Tete region. While the country’s roads could “still do with some work” there is growing investment into its infrastructure to upgrade its railway connections, roads and ports. The company has committed itself to the country and to increasing its production capacity to meet market demands. “We’re investing $170,000 over the next three years,” says Everest.

dr

i

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This includes installing a brand new PET production line - a German-made Krones line at the Chimoio factory – that will triple PET capacity, which is desperately needed. They are also constructing a new factory in Maputo where the present facility is too small for production needs. The new facility will ultimately produce 140 million cases annually. Phase one of the process – which is due to be completed by the end of 2016 - will put capacity at about 95 million cases. “We are presently supplementing our own PET production with product from South Africa, which is obviously very expensive,” says Everest. The new technology brings its own requirements as from a quality perspective PET products don’t travel well. “It will be ‘better to have a PET line in each of our locations. Ultimately we will have a third PET line up in Nampula in 2015,” he adds. While one-way packaging is expensive, it’s a growing part of the company’s mix as “the Mozambicans have tried it and like it and there is a preference for it building.” The present plant in Maputo is still operating but it’s small and on the flood plains hence the move to the new 21-hectare Greenfield site in Matola Gare on the outskirts of the capital. The new site will not only offer room to expand but will also combine the company’s head office and distribution centre with the plant in one complex for the first time. The other two sites at Chimoio and Nampula are also Greenfield sites so there is plenty of room to expand at both too. “We are making a very significant investment because apart from the production plant we are also investing in coolers, vehicles and people,” says Everest. Mozambique’s favourite Coca-Cola product is still standard Coke “by far”

but Coke Lite and Coke Zero are also on sale as is Fanta in various flavours and Sprite. There’s also the Sparletta range of sparkling fruit drinks and Minute Maid, a juice range, which was introduced last year. Everest says Minute Maid is doing well but the problem is that it’s at a premium price because it’s being imported from South Africa and currently not manufactured locally. While that is something to possibly look at in the future, he’s excited to be launching Coke’s BonAqua water in October as he’s convinced there is a substantial “opportunity with water as the market in Mozambique is fragmented with regional players in all the regional hubs.” The water will be sold from the same outlets as Coke countrywide and he’s glad to have an excellent distribution system already as that’s “even more crucial with water.” Aside from the introduction of BonAqua and Minute Maid, he intends to bring in a juice production line and to launch other products in the CocoCola stable such as energy drinks and sports drinks. Some of these will be produced locally and others will be imported from South Africa. Everest, who joined the firm in November 2010, saw the potential of the country and the company but was also aware of big challenges like capacity constraints that had to be overcome to reach Coca-Cola’s full potential. While Everest’s happy with Mozambique’s – and his company’s - economic prognosis and growth rates, he’s aware that the rate of social upliftment is lagging behind. “If you look at Maputo you can see a lot of the infrastructure, housing being developed, you’ve got plenty of sports stadiums and there is a very nice airport there now so there are signs of wealth beginning to come through. Continued

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FRIGOGLASS Coca-Cola enjoys a 87 percent share of the carbonated drinks market in Mozambique

Frigoglass is the global leading manufacturer and solution provider in commercial refrigeration and glass producer, meeting the needs of beverage customers around the world. Frigoglass offers effective solutions in commercial refrigeration, supporting beverage customers. Frigoglass operates in 21 countries across five continents including production facilities Romania, Russia, Greece, Turkey, India, China, Indonesia, South Africa, Nigeria, USA and Dubai. Sales offices Poland, Norway, Ireland, Kenya, Malaysia, Philippines and Germany. Sales representatives in U.K. France and Australia. The company’s customer base consists of a broad spectrum of Bottlers, Brewers, dairy companies and others. Frigoglass provide, bespoke solutions in commercial refrigeration which support customer’s cold drink consumption channel sales and committed to promoting sustainable development towards its business, the environment and the society.

“Is there wealth actually getting down to the ordinary man in the street? Not at this stage, I think it will take another few years before it starts trickling through to smaller businesses,” he says. The Coco-Cola brand is strongly associated with social responsibility initiatives and he is especially proud of its campaign to boost local entrepreneurs, particularly women. The company provides each vendor with a big ice-chest and a certain amount of core product and support. There have been “a number of really good stories of women who have from starting with one ice box ended up owning a number of stalls,” Everest says. Even more importantly for the entrepreneurs, the company

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believes that each ice box placed out in the market “supports ten to 25 people.” The project falls into the global company’s 5 BY 20 campaign, launched by Muhtar Kent, Chairman of the CocoCola company, which aims to assist in the empowerment of five million women by 2020. Everest’s excited about the challenges facing Coca-Cola Sabco in Mozambique and happy with the moves to increase capacity. “I think by the end of this year we will, for the first time in a very long time, have sufficient capacity to satisfy demand… with the new investment and PET line we are in a very good spot,” he says. It’s going to be a bumpy ride for incoming competitors.

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Human resources are the cornerstone of growth. Focusing on people, performance continuously improves and the results show in safety, job satisfaction, productivity, innovation and profitability. Being aware of social, cultural and environmental responsibilities, Frigoglass has incorporated policies and practices that reflect its commitment to social accountability. Founded in the early 1980s as a single plant manufacturing commercial refrigerators in Greece, Frigoglass has developed through organic growth and strategic acquisitions, into a highly successful enterprise with a global footprint. Tel +27(0)11 248 3000 Email Rlensley@frigoglass.com

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D e

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FRUIT S

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De Keur Estate (Pty) Ltd is a long established family run agricultural business, producing first class agricultural produce and high quality customer service since 1934. Director Danell du Toit tells Africa Outlook more about how the business has adapted following the ‘farmworker spring’ last November. Writer Ian Armitage Project manager Eleanor Watson

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family run agricultural business, the De Keur Group has a long history - since 1934 in fact - of producing first class agricultural produce and there are currently two separate businesses under the De Keur umbrella: De Keur Estates, which produces a wide range of fruits and vegetables, and De Keur Packaging, the packaging facility. The group specialises in top “quality fruit with a short supply chain”. “If you look at our production operation, we currently have five farms on which we produce,” says Danell du Toit, whose grandfather founded the business. “Of those farms, De Keur itself is where the name of the company originates and it was purchased in 1934 by my grandfather Charl du Toit (Tippie). In 1973 we purchased a second farm, Leeuwrivier and in 1981 Rocklands. Both of these farms are also situated in the Koue Bokkeveld area.” In 2008 De Keur purchased two additional farms – Môreson and De Hoop – in the Wolseley area. This was specifically designed to “add earlier varietals” and “expand the De Keur’s product offering to meet customer demand,” explains du Toit, who adds that the business is continually planning for the future. “If you look at a typical fruit tree its life cycle lasts anywhere from 15 to 30 years and therefore there is a constant need for renewal of the orchards. During this time the market requirements can also change significantly so it is imperative to look at expansion from a marketing perspective to determine customer demand in the future. From a production perspective there is an aggressive approach to expand on the existing farms in order to continue to service clients with high quality, relevant produce,” she says. From a packing perspective, De Keur’s Packaging facility, which is based in Ceres, packs all of De Keur Estate’s fruit, as well Continued

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as offering contract packing options to other South African producers. There is also a vegetable packing facility on the Rocklands Estate and Môreson farm where all of De Keur’s vegetables are packed and processed for their respective markets. “At the fruit packing facility in Ceres we are planning on increasing the existing capacity for two reasons: Firstly in order to service our own expansion plans on the farms, and secondly, to ensure that there is adequate capacity to continue the partnerships with our contract packing partners,” explains du Toit, who was excited by expansion plans. “We are definitely investigating various marketing options, including partnering with certain companies on a long-term basis to ensure a sustained client base and true partnership approach.”

Harvest Bags Harvest Bags is a supplier of knitted, woven, mono and PP bags with a wide range of uses in the agricultural and commercial industry. We also supply pallet net, pallet wrap and twine. Our factory is situated at Babelegi Industrial Park, North West Province with agents servicing the entire country and our neighboring countries.

together, stood up, moved forward together and addressed the issues.” Subsequent to the unrest, the government announced in February 2013 an increase of 52 percent in the rural minimum wage to R105 per day. The new minimum wage came into effect on the 01 March 2013 and it has had an effect on De Keur’s operations and will likely have repercussions down Farmworkers spring the road. “Fortunately a big portion of our During the course of our discussion, workforce was already above the new we kept coming back to the minimum wage so it was only certain unavoidable - the much publicised ‘farmworker spring’ in November 2012, workers that had to be adjusted to meet which rocked the agricultural sector in the new wage standard,” du Toit says. “We’ve done the costing and it is an the Western Cape and cost millions of Rand in lost production and vandalism. immense amount of money that was all of a sudden needed that you hadn’t The experience is one from which budgeted for previously. many lessons have been learnt and “I believe one of the things that De Keur is looking forward to a doesn’t always come out in the bright future. media is the additional benefits that “I think for our region and the agricultural industry as a whole it was farmworkers receive, completely a very low point. On our farms we did separate from their wages. I can only speak on behalf of our own company, have unrest and lost millions of Rand where all the housing is provided to vandalism and lost productivity. at no cost, inclusive of services like The relationship between employer and employee was definitely damaged removal of rubbish, provision of water, maintenance of buildings and by these strikes and will take time so forth. At De Keur Estate we have to mend itself. Obviously when the unrest started it was a wakeup call for a proud heritage of looking after our employees. We identified the need everyone involved and it has taken for baby-care and after school-care time to regain the trust between the facilities at De Keur and Rocklands. employer and employees. But, what Today these facilities are thriving, came out of it has been extremely positive in that the people have stood with very positive feedback from parents Continued

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We are constantly extending our range further to incorporate more products that will service the agricultural, commercial and domestic sectors with the same quality, service and price that have become synonymous with this company. We are ideally suited for a wide range of products such as oranges, onions, butternuts, grapefruit, cabbages, pumpkin, avocados, garlic, lemons, chillies, potatoes, sweet potatoes and gem squashes. Tel +27 12 546 8721 Email info@harvestbags.co.za

www.harvestbags.co.za

MeGared traders Megared Traders is a supplier of packing material to the fruit and vegetable industry. We are situated in Ceres industrial area. Product quality- All our products are supplied by approved suppliers and all the products will be of the Service- All products ordered will be delivered to the farm or packhouse. Megared Traders is service orientated and this is one of the reasons for the success of Megared Traders. Products- Megared Traders supply any products to pachkouses to successful pack apples , pears or stonefruit. Cartons , trays , glue , strapping ect can be supplied We also supply knitted and woven bags to packhouses. Bags for onions , butternut , pumpkins , sweet patotoes , gem squash – in different seize and colour bags. We are proud to be the main packing material supplier of De Keur Fruit Tel 082 744 7569 Email megaredaa@gmail.com


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Website: www.harvestbags.co.za E-mail: info@harvestbags.co.za

Tel no: +27 12 546 8721 Fax no: +27 12 546 0602

packing material / agricultural products

Megared Traders

are proud suppliers of: • Onion and vegetable bags in all sizes and colours • Butternut export packaging material • Stonefruit packing material • Apple and pear packing material

Megared Traders is the main packaging supplier to De Keur Fruit Me for numerous years and wish them all success for the future.

Tel: 082 744 7569 / 086 547 8550 | Email: megaredaa@gmail.com | Skoonvlei Industria, Ceres 6835

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and teachers. In addition we have adult literacy programmes for our employees who did not have the opportunity of completing secondary school. There is a full-time nurse on our staff, who attends to the primary healthcare needs of our employees and liaises with doctors where and when necessary. We promote and sponsor various sporting teams from each production unit to participate in the local football, rugby and cricket leagues – two of our football teams played each other in the regional finals recently, while one of our choirs were regional finalists. De Keur Estate has also assisted some children of employees who wanted to further their studies at university. Perhaps our proudest export in this regard is Breyton Paulse, one of the most-loved South African rugby players who played 64 Test matches for the Springboks and grew up on the farm De Keur.” Farming is cyclical, some years are good, some years are bad, and you are essentially gambling with nature. Outcomes are uncertain. And it is a global market. Agriculture is subsidised in many other countries. The wage increase presents challenges in these respects too. “Seasonality can make things like the minimum wage difficult to manage – some years are better than others,” agrees du Toit. “In principle I’m not against a minimum wage, since measures are required to protect the most vulnerable of our workers and society. A minimum wage does however force the employer to look at the workforce differently. You start to look at how productivity can be increased without increasing the number of workers and you look at mechanisation options. So, your whole outlook on your workers changes with the change in minimum wages.” She believes there was a political element to the strikes.

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“It wasn’t our permanent workforce that was the driver behind it – it was predominantly seasonal workers that led the strikes. And although we believe there was a political element, we can’t ignore or dismiss what happened. It was a wakeup call for the industry and the region. What has come out of it is that we have made a concerted effort to improve relationships with our workers and put systems and processes in place to ensure that as we go forward, we address issues before they escalate.”

De Keur is famed for its apples

Pastures new

Now, all are looking to a bright future. This has been a spectacular year for fruit production in the region in general. “The quality of the fruit has been above average; and our yields per orchard have been fantastic, much higher than forecast; and this combined with excellent market conditions - locally and internationally

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The farms are committed to looking after their workers


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- plus the exchange rate, means it’s been a good year for farming in the greater Ceres area,” du Toit says. De Keur Estate is family-owned and managed. Brothers, Charl and Gys du Toit joined their father, Tippie, on the farm in 1967 and 1972 respectively and together they have been a formidable team ever since. Currently, they are joined by three of Charl’s children; as well as Gys’s son and son-in-law. There are many advantages to a family business, but certainly also challenges. Fortunately, in most instances the challenges can be channelled to become positive forces for business growth and success. “It is easy to work with a person when you know them inside out. But it does bring its own challenges, especially from a succession planning perspective,” says du Toit What does she feel is the secret to the firm’s success? “I will credit most

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of our success to the people who have led the business since 1934: Firstly, our grandfather, Tippie and after him my dad, Charl and uncle, Gys. They have always managed the business with integrity, always believed in trusted relationships with suppliers and clients, and they are known for treasuring their relationships with all of their employees. They believe people are their best assets as

The quality of the fruit has been above average; and our yields per orchard have been fantastic... it’s been a good year for farming in the greater Ceres area”

without them you can’t do anything. Promoting honesty and openness within the business, grounded in strong faith, they ensure everyone knows what is happening and when it is happening. Definitely also part of the success lies in our supply chain and our partners in that chain. Many of the contracts and partnerships we have aren’t necessarily written contracts; but rather “gentlemen’s agreements” based on trust. We deliver fruit and vegetables to some clients whom we’ve been delivering to for decades without a contract in place because there is a trust relationship in place. “We are proud of our history, our heritage, and the “De Keur family” and I know the dream of the next generation is to continue this fantastic legacy to ensure a bright future for De Keur Estate.” To learn more about the business visit www.dekeur.co.za

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M arc é

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Marcé l a u nc h es f i r e s t a t i o n t u r n k e y s o l u t i o ns

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man u fact u r i n g

South Africa-based Marcé Fire Fighting Technology is changing the face of the fire fighting industry. Writer Ian Armitage Project manager James Mitchell

With sirens ablaze and red lights flashing, a fire engine races through the streets of South Africa. Having arrived at its destination, the crews begin their rescue operation. Who supplied the fire engine they were driving? Marcé Fire Fighting Technology, a leading manufacturer, importer and exporter of fire fighting vehicles and emergency equipment. The firm was formed in 1998 and operates from premises near Pretoria. It started as an importer of fire fighting vehicles and equipment, but in 2001 management realised there was “potential” in manufacturing locally, providing that high quality standards were met. And this is what it has done. “We provide unparalleled customised solutions to the needs of emergency services and adding value to the industry,” says Jan Steyn, commercial manager whose wife Danielle has been the driving force behind the business. Marcé moved into its current design, engineering and manufacturing base in Centurion last year to cater for the “rapidly growing demands for its vehicles” and after enjoying “exponential growth”. The new building houses the head office and there is very tight control on quality. Virtually all the components are made on site, using the latest technology and modern equipment. This includes a large painting booth that delivers a very high quality level of finish. “Basically we have grown so fast over the last couple of years and we have had exponential growth of about 30 percent per annum so we have pretty much reached the point where we needed to expand to cater for the growth and we have invested in this plant,” says Steyn. “It is a world class facility and it puts us into Continued

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“We face strong competition but believe we now measure up to the world’s best in terms of quality and innovation.” When choosing the right partner for your emergency services needs, Steyn believes it is “essential” that you choose a supplier that can offer you everything under one roof. “You cannot afford to take any shortcuts because we are in a life and death business. We offer a onestop turnkey solution – and this is extremely exciting - that will enable a client to walk into a completely equipped fired station and operate. Marcé was established in 1990 and since then we have collaborated with various International suppliers and manufacturers and supplied various products to Africa and beyond.” This is the first time we’ve come across a company offering fire station turnkey solutions.

We provide unparalleled customised solutions to the needs of emergency services”

Bending process

another bracket when we compare ourselves with international manufacturers. We can now aggressively enter the international markets and showcase Marcé as a world class manufacturer.” Marcé now boasts the facilities that match its world class products. The foundations have been laid for “future growth”. “We invested some R40 million just in terms of facilities and then we obviously put a lot more into the equipment – laser cutting machines, spray booths, testing areas and overhead tanks etc. We invested a lot of money into this facility,” Steyn explains.

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The company employs 150 people in total and it has branches in Polokwane, Western Cape, Namibia, Mozambique, Zimbabwe, Botswana and various agents in Africa, so its footprint is rapidly expanding. “We have ambitious growth plans, targeting expansion in the African market. We would like a presence in every single country in Africa. We are looking at setting up a dealership and representation in new areas and are looking for well-established agents in all these countries, not just selected countries. We have a strong policy that we cannot sell into a market without our own network or service backup or a very good dealer that is able to provide first class aftersales backup and support.

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Huge demand lies in the mining industry and with local governments. “We have just recently started this one-stop solution for Africa where we can build the fire station completely,” says Steyn. “We can construct anywhere in Africa, on any site. It is pre manufactured and a complete turnkey solution with vehicles, furniture, computers and all the management and command and control software – anything. “We could, for example, put up a fire station for a mine or fire department within a period of about six months from start to finish in conjunction with a local partner who we’d bring in to do the building but we’d provide all the


man u fact u r i n g

Turnkey fire station

components, logistics, materials – everything – from South Africa. “Personally, I’ve never heard of a company being able to do this and this is a first time it has been done. Over and above the solutions themselves, we also have finance available from South Africa to fund these projects. We have had an enormous response on this and this is really a world leading type of innovation. We have developed it in the last two years and we are on the verge of signing our first contracts now.” Steyn sees a number of opportunities opening up. “You get a full turnkey offer, covering all you need. Yes, I see a bright future. We are more than capable of meeting all your fire fighting needs. Key to growth is to provide a good aftersales service, a good product and build good customer relationships. And if you don’t innovate – constantly improve your products - as the world market develops and improves in technology then you get left behind.” As it goes into “aggressive expansion mode” and the market becomes more and more aware of its fire station turnkey solutions, expect to hear and see much more of this fast-growing South African business. To learn more visit www.marce.co.za.

Stucky Motors

Contact: Wolf (Billy) Edmayr Tel: +27 34 328 1000 Newcastle, Kwa-Zulu Natal +27 17 735 1100 Volksrust, Mpumalanga +27 17 824 8470 Piet Retief, Mpumalanga Cell: +27 83 440 5000

Based in three branc hes

Email: wolf.edmayr@stucky.co.za www.stucky.co.za

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compan y

name

events IEEE AFRICON 2013

PHP South Africa 2013

The Mobile Show Africa

Le Meridien-Ile Maurice Village Hall Lane, Pointe Aux Piments, Mauritius

Venue to be announced Cape Town South Africa

Sandton Convention Centre Johannesburg South Africa

9-12 September 2013

4-5 October 2013

www.phpsouthafrica.com

29-30 October 2013

Tech4Africa 2013

The Enterprise Technology Show Africa 2013

http://africon2013.org/

Africa Hospitality Show 2013 Accra International Conference Centre Castle Road 1054 Cantonments, Accra Ghana

12-14 September 2013

www.africahospitalityshow.com

Heavy Haul Rail Africa Conference Radisson Blu Gautrain Hotel Sandton Johannesburg South Africa

18-19 September 2013 www.railconferences.com/ heavyhaulrail/africa

LogiAfrica The Gallagher Convention Centre Johannesburg South Africa

2-3 October 2013

http://www.wbresearch.com/ logiafrica/home.aspx

Focus Rooms The Core 1st Floor South, Cnr Kikuyu and Leeuwkop Streets Sunninghill Sandton South Africa

Sandton Convention Centre Johannesburg South Africa

29-30 October 2013 www.terrapinn.com

9-10 October 2013

http://tech4africa.com/event/tech4africathe-annual-conference/

Streamlining mining approval permits in Africa Montecasino 1 Montecasino Blvd, Johannesburg 2055 South Africa

14-17 October 2013

http://miningpermitafrica.com/

2nd East Africa Oil and Gas Summit (EAOGS) Intercontinental Hotel City Hall Way 00200 Nairobi Kenya

29-30 October 2013 www.eaogs.com

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Big Data World Africa Sandton Convention Centre Johannesburg South Africa

29-30 October 2013 www.terrapinn.com

BIG Africa Summit 2013 Montecasino 1 Monte Casino Blvd Johannesburg 2055 South Africa

4-6 November 2013

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REACH NEW

HEIGHTS Asia Outlook is a fantastic platform to share success stories and find ways of growing your business in Asia. To discuss your options contact Ben Weaver ben.weaver@outlookpublishing.com

www.asiaoutlookmag.com


Tel: (011) 841-7700 | Fax: (011) 894-3307 | Email: allenb@hcmsa.co.za | www.hitachi-c-m.com/za

Africa Outlook Issue 6  

All the latest business news from the great continent of Africa.

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