July 2017
www.africanbusinessreview.co.za
ENERGISING
AFRICA
WITH SEAN MARITZ,
Promoting internet safety in Africa
BOSCH
Power to the people
FOREWORD WELCOME TO THE July edition of African Business Review. Our cover story this month is with South Africa’s largest energy company, Eskom. We talk to CIO Sean Maritz about how the business is seeking to transform the country into a serious technological hub. If any company is in a position to do so, it is Eksom, supplier of 45 percent of electricity to the entire continent. Bosch is also powering communities in Africa through its Power Box project, which acts as a hub for craftsmen and women who are in need of access to tools and training. Vonjy Rajakoba, Vice President of Bosch Power Box Tools, answers our questions. While Bosch is helping African workers to use tools efficiently and safely, Facebook is teaming up with a number of NGOs to educate young Africans in internet safety. As part of its corporate social responsibility (CSR) strategy, Facebook chose the EU’s Safer Internet Day to launch a series of initiatives aimed at increasing internet safety in Africa. We caught up with some of the key stakeholders. Enjoy the read, and as always, tweet your feedback @AfricaBizReview
Enjoy the issue! www.africanbusinessreview.co.za www.bizclikmedia.com
F E AT U R E S
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PROFILE
promotes internet
safety in Africa
TECHNOLOGY
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POWER TO THE PEOPLE 4
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TOP 10 AFRICAN HOTEL COMPANIES
C O M PA N Y P R O F I L ES
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Eskom Energy
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Global Broadband Solution Technology
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Peak Resources Limited Mining
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International Rescue Committee Supply Chain
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PROFILE
promotes internet
safety in Africa
A number of African NGOs are working alongside Facebook to help keep the continent safe online Writ ten by: W EDAELI CHIBELUSHI 7
PROFILE 7 FEBRUARY 2017 marked Safer Internet Day, an annual EU initiative aiming to promote safe online activity across the globe. As a major stakeholder in the internet, Facebook naturally got involved. The social network has over 1.9 billion people, and expresses its ongoing efforts to “help build a safe community on and off Facebook”. As part of its corporate social responsibility (CSR) strategy, Facebook chose Safer Internet Day to launch a series of initiatives aimed at increasing internet safety in Africa. Five months on, we catch up with Facebook and a couple of its African partners to examine the legacy of Facebook’s initiatives. Did its vision for a Safer Internet outlast 7 February? Will this CSR initiative benefit Africans well into the future? It’s well-known that internet usage in Africa is growing at a rapid rate, thanks to increased penetration of mobile technology. Felix Iziomoh, Executive Director at International Centre for Leadership Development Nigeria (ICLDNG) explains the trouble with this advancement. “We have a growing number of young people accessing the internet 8
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via mobile phone, who do not understand the positive uses of the internet and/or the requirements for safety online,” he tells us. ICLDNG is Nigerian nongovernment organisation (NGO) focused on youth empowerment. As part of its plan to increase internet safety in Africa, Facebook partnered with ICLDNG, and other NGOs and public sector agencies. Facebook tells us that these partnerships
INTERNET SAFETY IN AFRICA
“We have and will continue to support these non-profit organisations with advertising credit to help raise awareness of the tremendous work that they do”
“ensure the safety and education of their communities, and addresses the needs of vulnerable people.” To forge these partnerships, Facebook encouraged applications while also seeking out worthy ventures. “Facebook approached us with the proposal,” Awo Amenyah, Executive Director of youth-focused NGO J Initiative Ghana explains. “At that time, we were looking forward to having industry players onboard
to empower children and young people”. Facebook, a dominant force in the social media sector, used its industry clout to provide partners with financial and marketing support. Facebook stresses that this is not a one-time investment. “We have and will continue to support these non-profit organisations with advertising credit to help raise awareness of the tremendous work that they do, and to 9
PROFILE
‘Facebook seems to acknowledge that its CSR initiative is a longterm commitment, rather than a brief aside at board meetings’ ensure that more youth find out about who to turn to when they want to learn more about how to stay safe online,” a Facebook spokesperson tells us. In order for these lessons to be widespread and ongoing, Facebook recognises that Africa’s governments need to collaborate with NGOs. “In some countries, the government is very involved and focused on online safety for children,” Facebook tells us. 10
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Before Safer Internet day, Facebook helped ICLDNG to partner with the Lagos State Ministry of Education District IV. This collaboration boosted national awareness on the positive uses of the internet. Facebook also followed up its Safer Internet Day efforts by inviting its African partners to its EMEA Child Safety Summit 2017 three months later, in Ireland. “This has led to
INTERNET SAFETY IN AFRICA
country-level discussions of some crucial protocols the country needs to accede to in order have international cooperation,” Amenyah explains. Along with young people, Facebook also recognises that women are a common target for online abuse. The network teamed up with Women’s Aid to produce an online safety guide for women last year. Facebook also hosted a Women’s
Safety roundtable in Kenya. This year, Facebook furthered its efforts by partnering with womenfocused NGOs for Safer Internet Day. The Women’s Technology Empowerment Centre in Nigeria and Tech Women Zimbabwe both receive support from Facebook. Furthermore, the social media firm partnered with ICDLNG and the Nigerian government to deliver a 11
PROFILE
workshop devoted to 300 female students. Facebook has demonstrated sustained effort before and after Safer Internet day to better women’s online experience, so potential for a long-term impact is looking strong. Generally, Facebook seems to acknowledge that its CSR initiative is a longterm commitment, rather than a brief aside at board meetings. Maintaing relationships with progressive partners is key to Facebook having a lasting impact in Africa, and the NGOs we spoke with had positive feedback. ICDLNG praised Facebook for its “real commitment to improving society” and “ease of communication”. J Initiative Ghana, on the other hand, noted Facebook’s up-to-date safety information for the NGOs audience. And finally, Facebook itself is confident its initiatives will have a lasting effect on sub-Saharan Africa. “We are constantly listening and learning,” its spokesperson says. “Through partnerships and supporting organisations who are experts in the field, we can continue to ensure that the conversation about online safety continues even after the Safer Internet Day ends.”
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INTERNET SAFETY IN AFRICA
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POWER TO THE PEOPLE
Writ ten by: WE DAE LI CHIBE LUS HI
Vice President of Bosch Power Box Tools, Vonjy Rajakoba, talks to us about his team’s ventures in Africa 15
TECHNOLOGY IN JUNE 2016, German technology firm Bosch launched (what it calls) a “mini industrial revolution” in Ghana’s Kumasi region. It introduced the Bosch Power Box initiative. The idea is this: artisans and tradesmen from across the country will receive access to the very latest Bosch technology, training and micro-financing. A year later, African Business Review catches up with Bosch to review the Box’s first year of existence. We talk to Vice President of Bosch Power Box Tools, Vonjy Rajakoba.
ABR: How did you begin working for Bosch, then on the Power Box project? > VR: I am originally from Madagascar and immigrated to Europe for studying. I have played several roles in Sales and Marketing within German and Asian companies before I joined the Bosch group in 2009. I started at Bosch Sensortec, at that time a start-up developing and marketing sensors for consumer electronics. I was leading the global sales organisation and was mainly
Ghana Bosch launch event in West Africa
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POWER TO THE PEOPLE
active in Asia, Europe and the US. I returned to the continent in 2014 when I took up the role of Head of Sales of Bosch Power Tools Africa. ABR: Tell us about the Bosch Power Box. > VR: In a nutshell, the Bosch Power Box is a container that we placed on permanent basis at the very locations where artisans and craftsmen are gathered. In the Bosch Power Box we conduct trainings and demonstrations, rent and sell tools, enable with micro-financing and offer service as well as repair. Bosch Power Box is a revolutionary initiative designed to create, up-skill and grow small businesses and bring them into the formal, mainstream economy. It is made with the intention for all artisans who work on producing items such as furniture, doors, partitions and the like, to transform their work efficiency. It is a long-term project designed to foster entrepreneurship and ensure a smooth transition for small businesses from the informal to formal sectors. Each Power Box has managers, technical staff and trainers, all of whom have received dedicated training from Bosch.
Vonjy Rajakoba Vice President of Bosch West Africa
ABR: Sounds like a useful initiative, but how exactly does the Power Box improve accessibility to Bosch’s tools? > VR: By providing the Power Box we create channels across different African markets, enabling our existing and potential users (e.g. carpenters, electricians, metal workers and plumbers) to easily access our power tools, accessories and measuring tools. Through the Bosch Power Box, we will provide demonstrations and training to further enhance production/service efficiency/output for all artisans. The Box will provide 17
TECHNOLOGY
“In our interactions with these African artisans we have identified a knowledge gap, an affordability challenge and strong serviceability expectations� 18
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Bosch power tools demonstration various tools, some of which are cordless. Cordless Bosch power tools come with rechargeable batteries thus creating convenience and ease of use on the go. Just like the concept of the mobile phone, users will be able to recharge their power tools’ batteries and use them at multiple locations for several hours without having to bother about an additional power source. ABR: What research and development (R&D) was done prior to the Bosch Power tools launch?
> VR: As a market leader in power tools, we have to strive more than just increasing our market share. We need to reach out to new users, the majority of which do not use power tools but rather hand tools. These target users are typically craftsmen in the informal sector and they are often gathered in one location. In our interactions with these African artisans we have identified a knowledge gap, an affordability challenge and strong serviceability expectations. These observations have led us to propose the Bosch Power Box. 19
TECHNOLOGY
ABR: After proposing the Box, how was it received by Ghanaians? > VR: Artisans in Ghana welcomed the holistic approach that Bosch has adopted: we were not there just to try and sell power tools to them but enabled or empowered them with education, affordability and service. We are already opening additional Power Boxes at other locations in Ghana. ABR: If Bosch’s expansion across Ghana goes well, will you be 20
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planning to introduce the Power Box to other African countries? > VR: Thanks to the receptiveness that we have seen in Ghana, we have already deployed the Bosch Power Box in Nigeria and Kenya. We are considering to scale up the concept in West and East Africa using a franchise model. We are engaging with young entrepreneurs ready to act as franchisees. ABR: Let’s talk funding. How much has the Bosch Group invested into the Power Box?
POWER TO THE PEOPLE
> VR: Bosch has invested in the concept and mostly in training - those who teach on the Power Box, the Power Box manager and the persons conducting after sales service and repair. We will keep on investing in order to ensure that the Power Box meets the demanding standards that we have set to better serve our users. As we are now in the process of scaling up the initiative, the business model that we are promoting is a franchise model in which the Power Box manager makes an initial investment and benefits from
the expertise, the products and the strength of the Bosch brand. ABR: Where do you see this initiative in five years’ time? > VR: We would like to see at least a Power Box in each of these locations in Africa where there is a concentration of artisans, and that it is truly an agent of change for the better. A change from hand tools to power tools, change for an increased efficiency, change from the informal to the formal sector. Our vision is to improve skills and change livelihoods in a very tangible way. 21
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TOP 10 AFRICAN HOTEL COMPANIES Throughout the year, tourists pile into African resorts to watch the incredible wildlife, taste some of the world’s best food, and view nature uninhibited. African Business Review lists its favourite hotels on the continent W r i t t e n b y : C H R I S TA D O N O V A N
TOP 10
RADISSON BLU
SINGITA FARU FARU LODGE
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The northern part of Tanzania is home to this incredible riverine lodge that is right along the famous wildebeest migration route. Aside from viewing this natural phenomenon, you can also partake in private pools, a botanist camp and other features that will bring you close to the wilderness of Africa without endangering your safety. The Lodge only has seven beautiful one bedroom suites, so be sure to call for your booking well in advance. 24
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The Radisson is one of the leading hospitality investors on the continent of Africa, and its Blu brand expands to more than 5,000 rooms across the landscape. Featuring luxurious European minimalist and Victorian stylings, the Blu branding also incorporates some of the character traits of the more famous resorts of the area. The result is a marriage of Western and African architecture.
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BEYOND NGORONGORO CRATER LODGE
08 ROYAL MALEWANE This private reserve within the Greater Kruger National Park is also one of the most expensive hotels in South Africa. The location is a favourite hideaway for celebrities, including Bono. Only 20 guests at any time can use the private suites, safari experience, air-conditioned library, infinity pools and incredible views of the surrounding area. The hotel accommodates groups up to 12 within its selfcontained Africa House.
Just along the edge of Tanzania’s volcanic Ngorongoro caldera rests the aptly named Beyond Ngorongoro Crater Lodge. Safaris that start from this Lodge are reputed to be some of the best in the continent because of the wildlife resting along the floor of the crater. However close to the wilderness you may be, the room interiors offers the elegance of an elite Baroque château, complete with beaded chandeliers, gilt mirrors and brocade sofas. You will also experience bathtubs lit by chandeliers and floor to ceiling windows that will maximise the view of the incredible landscape.
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06 LITTLE KULALA This hotel is situated in the middle of Namibia’s Kulala Wilderness Reserve. An oasis in the middle of a desert landscape, you will experience luxury dining, craft boutiques, a wine cellar, library and some of the most beautiful pools that African hotels have to offer. If you venture out of the hotel and into the reserve, you will be able to view some of the larger carnivores of the continent up close and personal, including cheetah and brown hyenas. 26
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Ibis Styles is the top foreign hospitality investor in Africa. Owned by AccorHotels, the chain has a network of 37 hotels in Africa, including ones in Algeria and Morocco. It plans to stretch 3,822 rooms across the continent, bringing the most luxurious trappings to the experience possible. Although the best has yet to be built, from this brand’s reputation, tourists should expect some incredible accommodations.
A F R I C A N H O T E L C O M PA N I E S
MOMBO AND LITTLE MOMBO CAMP
04 MERCURE International company Mercure has introduced more new investment into Africa than any other hospitality company since 2015. This year, Mercure will add 606 percent more rooms than in 2016. Residents will enjoy extravagant luxuries including ornate interiors that combine the Western culture with the African decor. The company also plans to partner its wares with some of the local companies in the area for specific amenities depending on the location.
Chief’s Island in the Okavango Delta is a great place to experience Botswanan wildlife under the comfort of shade trees, looking down upon the landscape from suite tents 2 metres over the ground. You will enjoy plunge pools and a full gymnasium, along with a full bar that you can access at any time. The food is known as some of the best in the area, and you can also reserve a spot at smaller hotel Little Mombo for an even more exclusive experience.
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SINGITA BOULDERS LODGE Known for its spectacularly decorated bathrooms, the Singita Boulders Lounge sits on the Sand River bank, in a completely private reserve. The South African reserve has over 45,000 acres of land, teeming with big game, like the elusive leopard. Its most unique physical characteristic, and the one from which it takes its name, is the beautiful geometry of the boulders that form its base.
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A F R I C A N H O T E L C O M PA N I E S
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CONSTANCE HOTELS AND RESORTS Constance Hotels and Resorts is a Mauritian company founded in 1973. The firm prides itself on having a unique, luxury vibe. The group comprises of seven hotels: two in Seychelles, two in Maldives, two in Mauritius and one in Madagascar. Constance Hotels owns and manages two 18-hole golf courses in Mauritius and one in the Seychelles. 29
ENERGISING
AFRICA
WITH SEAN MARITZ,
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How is South Africa’s largest energy company surging forward to turn the country into a technological hub?
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skom enjoys a captive market in South Africa, generating and supplying 95 percent of the electricity across the country and 45 percent in the entire African continent. Technology is the most vital component of the business, and as such, IT and its evolution is a huge focus; Sean Maritz, Chief Information Officer of Eskom, explains how and why in greater detail. “From a CIO point of view, at Eskom we’re responsible for the delivery of the IT systems, including the
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technology and the infrastructure,” he says. “In the past we had many different roles and different verticals within IT, but now it’s one streamlined organisation. We actually have a seat at the table, so we’re all directly influencing the business direction.” Being CIO of a utilities business comes with its own unique set of differentiators and challenges. One such focus of the energy sector has to be corporate responsibility, and balancing that with the necessary
ENERGY
development of Eskom’s economic growth. As such a large company, it takes its duties seriously. “For a company like us, we have to manage the energy mix that we supply to ensure that we are creating a valuable planet for the future, so that’s a responsibility on our side,” Maritz states. “We have a continuously evolving business model and we are currently focussed on ethics and the environment. We look at the way we use power at data centres, how we use water at power stations, and whether we can reduce coal burning emissions, as well as smaller things like capturing endangered snakes on-site and releasing them in the wild. We want to be a responsible organisation.” Technology and the economy Keeping up with technological innovations is a challenge in all countries and every sector, so for Maritz and his team, a key priority is consultation with the rest of the industry. Being involved in every part of the business – not just the portion any one worker is a part of – is paramount, to ensure that
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Number of staff working for Eskom
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Our Mission: Empower every person and every organization on the planet to achieve more Microsoft South Africa is a subsidiary of the world’s largest independent productivity and platform company. As a proudly South African company with a Level 2 B-BBEE rating, Microsoft SA strives to providing services, solutions and devices that assist governmental organisations, people and local businesses in getting more done in less time by using technology.
www.microsoft.com/en-za/
ENERGY
“What makes us unique is the full value chain we offer, right from generating the energy to delivering it to the customer” SEAN MARITZ CIO of Eskom
everybody is equipped with the ability to understand the landscape around them. Eskom has an advantage as such a pervasive presence in Africa, “but the fact is that carries a lot of responsibility to ensure the right value of the product that we deliver to people,” Maritz says. “Eskom has been a sound organisation for so many years because of our strong engineering capability. This company uses a mix of coal, hydro, and nuclear energy, and not a lot of companies can say that. This is why we’re one of the top 10 utilities in the world. “Of course we have strong knowledge content, but we should not sit back and relax because we have to grow the economy in Africa. We have a big influence on it, and we aim to rectify some problems of the past. We are trying to play a huge role in changing the economy of South Africa by improving things and creating jobs – things that have made Eskom what it is today.” All of this effort is slowly being funnelled towards the ultimate goal of making Eskom a key player in a South African equivalent of Silicon Valley. The main focus for Maritz is on peoples’ skills and their ability to innovate, as this is what will push the company ever closer to being able to compete technologically on a global scale. “The challenge lies in creating the capabilities
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of people,” he explains. “We can overcome challenges by using what we have. We need to think outside the box and be a little more innovative, create innovation maps and hone our industry. This really is just the start for Eskom. We are creating IT technologists and industry experts to take the work forward, and there’s no reason our people can’t continue to innovate. They just need confidence and we need to give that to them.” To work its way towards the advancements required for Eskom to make a sizeable impact, the business needs to adopt cloud “at a speed of knots,” in Maritz’s words. “Our big focus this year is the IT organisation, and by next year we want to turn our landscape into an infrastructure service landscape. That means lots of cloud adoption for us, and a lot of organisational initiatives that the business is undergoing and driving. For now, in the early stages, we must deliver a lot of foundational components soon for use in the future.” Beyond the competition This dedication to being as strong
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a force as possible is part of what differentiates Eskom from competitors. It extends beyond a desire to simply be the biggest, as it strives to prove itself as a positive force within South Africa. “We need to keep on saying to our customers that we are dedicated to the country and its economy first of all,” Maritz states. “Whatever we do is actually to deliver value to the citizens of South Africa.” Eskom works hard to prove this via its campaigns and initiatives in the market, and aims to create the kind of talent in its people that will further enrich the nation. This brings further value to South Africa, and the more innovative the business can be, the more savings it can offer to customers. The more money customers save, the more confidence they will have in Eskom.
1923 The year that Eskom was founded
ENERGY
“What makes us unique is the full value chain we offer, right from generating the energy to delivering it to the customer,” concludes Maritz. “Unlike a lot of utilities companies who need to keep things cheap, we have the ability to innovate. We are in a country that is still developing, but we can do great things because we have a captive market. “We’re currently thinking about electric vehicles, on energy storage,
and looking at what the competition is doing. We have such a lot of knowledge and expertise, and we will provide services worldwide if we can get it right. Africa is going to experience a lot of changes in the future, and that too will open a lot of opportunities for Eskom. We can always make a change, because we have great partners, and they will help us to deliver these things. In two or three years, it will be a different picture for Eskom and for Africa.”
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FIBER IS THE FUTURE for global telecommunications company GBS Written by Jackie Cosh Produced by Richard Deane
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Global telecommunications company GBS is seeing advances in technology that mean internet access in the Congo is now becoming more reliable
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n the modern world everyone needs the internet. Increasingly it is no longer the luxury for the few, and African businesses, rural and in the cities, are looking for faster and more reliable connections. For Zubeir Mohamed, Director of Operations at Global Broadband Solution (GBS), this is good news, and has resulted in a steady growth in business over the past four to five years. Operating out of local bases in Kinshasa, Lubumbashi, Kisangani, Matadi and Goma in the Democratic Republic of Congo and Brazzaville in the Republic of the Congo, the company specializes in the design and delivery of global communication solutions, particularly in IP solutions, allowing companies to connect anywhere in Africa via Satellite, WiMAX and Optical Fiber.
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The ability to interconnect a series of sites and create a local intranet means companies can create their own company’s private network, allowing different offices to exchange telephone calls, emails and data, as well as performing CCTV monitoring across the sites. GBS’s engineers and technicians are permanently located on site to run the installations and to provide the necessary help and support after installation. Staff in Brussels take care of the management, design, logistics and interaction between the various parts of the company;’ Zubeir was studying in Canada when, in 2004, he had the chance of a placement with GBS. Four years later and the opportunity arose for him to work fulltime with the company. He says: “Bashir Mohamed, is
TECHNOLOGY
GLOBAL BROADBAND SOLUTION
“EVERYONE NEEDS THE INTERNET. NOBODY CAN LIVE WITHOUT IT NOWADAYS. IT IS AN ESSENTIAL SERVICE FOR EVERYBODY”
Expanded Capacity to Connect Africa, the Middle East, Europe and the Americas High performance C & Ku-band coverage will provide inter-regional and trans-atlantic connectivity and services. Contact ABS for your satellite solutions at: info@absatellite.com
www.absatellite.com
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KU BAND BEAMS
Americas | Europe | MENA | SAF
C BAND BEAMS Global | West Hemi | East Hemi
TECHNOLOGY
one of the three partners who began the company. He has always been interested in the technology industry. Before GBS started he was one of the first people to bring the internet to the Congo in the late 90s. In the 2002 they sold that company and then later started GBS as he wanted to get back into the internet business.” With insufficient funds to start a company, Bashir looked to Daniel Vanderstraete and Hassan Yahfoufi for help. They provided the capital and so the GBS partnership began. With Hassan as CEO, Daniel as Managing Partner from Brussels and Bashir on the ground in Kinshasa, they have built a company that has developed wireless and fiber Local Loops in most major cities as well as installed thousands of satellites for both residential and corporate clients, bringing the internet many parts of the Congo’s for the first time. GBS works across a very large area, where up until now there has been very little technological development. As Zubeir explains, the last couple of years has seen major changes in
150200 The number of Global Broadband Solution staff how internet service is provided. He says: “Today how we provide internet is either via satellite or via fiber, depending on where in the country the customer is. Up until two years ago it was all satellite, but increasingly fiber is becoming more essential.” “In the major cities our business is 60 percent corporate, 40 percent residential. But we also do a lot of projects for the government, for private institutions and for banking institutions. We have put up a private network for the Central Bank of Congo as well as for private banks and oil companies. These companies are often located in remote areas where there is no infrastructure around, so we are able to provide a secure a reliable way to transfer data back to their HQ’s in the capital city Kinshasa.” The introduction of fiber has brought its own challenges, as
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customers are obviously keen to have the latest development. Fiber is not reliable so the company has to purchase both satellite and fiber and absorb the costs. The company has a number of satellite providers that they work with - Asia Broadcast Satellite (ABS) being their most strategic partner. Fiber comes from the local national operator owned by the government - Société Congolaise des Postes et Télécommunications (SCPT). The state monopoly ensures that each ISP
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must purchase fiber capacity from the government owned operator. Despite being one of the top three ISPs in Congo, the market can still at times be tough. “So far 2017 hasn’t been that great” recalls Zubeir. “The political situation in the country is tense due to the uncertainty around the elections which were supposed to happen last year but didn’t and there is still the question of whether they are going to happen this year. This has prevented people from investing in the country which has
TECHNOLOGY
the economy suffering. Hopefully the rest of 2017 will be more positive.” The future, however is bright and GBS has been selected as a preferred partner by Konnect Africa. We aim to become the leading player in providing state-of-the-art satellite broadband solutions to customers throughout the Congo’s. Konnect Africa uses the High-Throughput Satellites (HTS) technology, offering dozens of times more capacity than provided by conventional satellites. We will aim to start service at the end of 2017.
Looking back over the past 13 years, Zubeir is happy with the progress of the company, and the role it plays in Congo. “I would say it has been a gradual growth but in the last four or five years we have really grown and especially when we started using the fiber. Prices have been going down and the population has increased. Everyone needs the internet. Nobody can live without it nowadays. It is an essential service for everybody.”
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Ngualla: Uncovering Tanzania’s rare earths Written by Catherine Rowell Produced by Richard Deane
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We speak to Peak Resources’ Managing Director Darren Townsend regarding the company’s development of the Ngualla Project in Tanzania
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ince listing onto the Australian stock exchange back in 2006, Peak Resources Ltd has come a long way. Whilst exploring for phosphate minerals in East Africa, the company discovered rare earth minerals, creating a significant buzz across the mining industry that led to the establishment of its flagship Ngualla Project. Managing Director Darren Townsend explains how the company has taken the project, located in southern Tanzania, from discovery, all the way through to the recent completion of a Bank Feasibility Study. “We found that there were very high grades of the magnet metal rare earths, neodymium (Nd) and praseodymium (Pr), called NdPr. There are seventeen different rare earth elements, but NdPr are the most important,” he says. Quickly becoming one of the world’s largest undeveloped neodymium and praseodymium rare earth
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projects, the company has received its environmental permit for the project and is now moving ahead with the submission of the mining license application. With plans to export approximately 28,000 tonnes of rare earth concentrate throughout a 30-year mine life, the company will undertake the initial processing in Tanzania, through an on-site multistage processing plant. “The high grade processed rare earth concentrate will then be shipped to the United Kingdom to a refinery that will use solvent extraction technologies to complete further processing,” says Townsend. He adds further, “I don’t like to use the term ‘world-class’, but Ngualla simply is a world class deposit. It’s extremely high grade and our aim is to get this project up and into production, whilst looking at additional opportunities to grow the company and build out the business further within the rare earths
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Number of staff at PEAK RESOURCES LIMITED
Peak Resources Corporate Video
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PEAK RESOURCES LIMITED
“I don’t like to use the term ‘world-class’, but Ngualla simply is a world class deposit”
www.alignenvrionment.com
space. We see the development of Ngualla as a starting position for us.”
WHO WE ARE Align Environment and Risk is a niche international consultancy committed to improving the quality of environments and livelihoods, and building professional capacity in the places where we work. Our primary focus is combining practical project de-risking measures and compliance with international investment standards for environmental and social sustainability performance. We help our clients to develop innovative, practical solutions to environmental and social risk through specific, appropriate planning and management. info@alignenvironment.com | carina@alignenvironment.com +255 766 602 155/762 054 422 | +1 720 924 8610
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Increased demand Whilst prices in cobalt have recently surged up by 150 percent, the demand for other metals including rare earths will ultimately also increase due to the same transforming driver – the electrification of the automotive industry. Rare earths are used to make highstrength magnets, which are 10 times stronger than traditional iron boron magnets. Such advantages enable this
MINING
technology to be utilised in a number of applications. Townsend explains that with 90 percent of drive motors for the new models of electric and hybrid cars using rare earth magnets, this energy efficient alternative transportation system is brought to the forefront of building and design. “The world hasn’t yet worked out that we need rare earths in the same way as everybody’s been talking about lithium, graphite and cobalt. If you want to get the energy from your lithium battery to the road, 90 percent of the time you’re
going to be using a rare earth magnet drive motor,” comments Townsend. Investors have not yet cottoned on to this potential investment opportunity, where NdPr will drive significant growth for companies and investors through the rise of electric vehicles. With this in mind, Townsend adds that “if we had 100 percent electric vehicles within global production, we would need to mine seven times the amount of rare earths as we do today.” “We will start to see a larger share of electric vehicles coming into the market, which will have a big impact over time on the supply side and quality. Projects like ours are going to be very important to keep up with this expected demand growth.” Peak Resources is developing Ngualla in partnership with two key strategic and high quality investors; International Finance Corporation (IFC) and Appian Natural Resources Fund, a private equity group based in London. Nonetheless, raising funding is not without its challenges. “When you’re a junior developer, you need to raise funds from the stock market to move the project forward,” explains
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Townsend. “There are times when rare earth prices are quite low, which makes raising equity a little bit more challenging. However, we’re really lucky in having Appian and IFC as partners to help us with that funding.”
Giving back to the community Throughout the 30-year project, the Ngualla Project in Tanzania will directly employ an estimated 209 people, predominantly from the local area, and the company will also undertake a significant amount of community projects, as well be an enabler of sustainable development activity that will provide economic and employment opportunities beyond the mining project. Over the next 30 years, the company will no doubt have a major role in making a positive long-term contribution to the local community. Additionally, Peak Resources aim to become a clean, ethical, sustainable
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source of rare earths to global industry. All processes will operate at top tier environmental standards, which will match well and feed into the supply chains of the products low carbon technological applications. “The project involves quite small scale, open cut mining,” adds Townsend. “With less than a two to one waste to ore strip ratio, it has quite a small mining footprint.” The processing will also be completed without the use of chemicals such as cyanide, and the naturally very low level of radionuclides in the deposit avoids any issues some projects have with their high contents of uranium or thorium. Peak Resources’ long-term investment in the local community and its strong environmental focus will support future business growth whilst bringing benefits to the local communities and enable the company to expand their operations and go from strength to strength.
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Community investments by Peak. TOP LEFT: Ngwala Primary School classrooms built in 2012. TOP RIGHT: Waiting area built for the Nwala village maternity clinic. BELOW: First bucket of water accepted by villager at handover ceremony for Madodomia village water bore and pump donated by Peak.
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INTERNATIONAL RESCUE COMMITTEE: IMPLEMENTING RESILIENCE WITHIN THE HUMANITARIAN SUPPLY CHAIN Written by Catherine Rowell Produced by Vince Kielty
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WE SPEAK TO REGIONAL SUPPLY CHAIN DIRECTOR PHOEBE KUNG’U, WHO DISCUSSES HOW SHE WORKS TO ENSURE THE ORGANISATION’S SUPPLY CHAIN OPERATIONS REMAIN ROBUST IN THE FACE OF HUMANITARIAN CRISES
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or more than 80 years the International Rescue Committee (IRC) has provisioned lifesaving aid and support to refugees throughout the world. Established in 1933, it is one of the world’s most renowned and respected humanitarian organisation’s. In order to remain resilient in the face of frequent unexpected crises, the IRC’s supply chain practices remain robust, creating efficiencies and providing world class service to individuals in need. With many conflicts occurring worldwide, women and children are the most affected. Providing sourcing practices and compliance within East-Africa is Regional Supply Chain Director Phoebe Kung’u, who has become the only senior female Supply Chain Director in the region. Whilst she explains that an increased female engagement and desire to help women grow within the supply chain is something she wants to see
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more of, “some countries present a lot of challenges for women, and therefore it is no wonder there are not many women in roles within the supply chain managerial roles. However, I also think that many organisations can do a bit more to encourage women to be part of this change.” Professionalising the IRC’s supply chain operations and creating efficiencies by setting up key strategies, relevant to the context of the different countries within East Africa, falls under Kung’u’s umbrella. “The supply chain is complex, especially the humanitarian sector,” she says. “It’s a field that has high risk, high challenge, but is very rewarding.” Supporting nine countries with different needs, Kung’u ensures all suppliers are able to respond to the IRC’S business operations, depicting a large piece of work with a wide scope. Through this role, acquiring an intimate knowledge about the context of the countries
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and complex issues has been essential. Kung’u adds: “The supply chain needs to be strong, it needs to be efficient and we need to be accountable.” Working in partnership with key stakeholders and buyers, setting up long-term and regional agreements has enabled Kung’u to become what she describes as a ‘gatekeeper’ for the various countries, providing strong leadership throughout the organisation’s global initiatives. With a limited visibility of supply chain practices at regional and HQ level in areas such as data analysis, contract management, and spend with regards to a particular supplier or category of goods and services, the organisation has since placed significant investment in both staffing and recruitment. The IRC is also
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introducing new technologies, such as a new ERP system, which will automate supply chain processes. Whilst the new system is at design stage, the IRC is currently utilising an interim system which enables the tracking of all procurement activity for the nine countries. Kung’u explains: “I’m able to see the procurement tracking reports on a monthly basis. I know how much is spent on what categories, from which suppliers, and so we are able to come up with management strategies to determine whether we need to do global, regional sourcing or whether to do in-country sourcing.” Local versus global sourcing Although the organisation typically sources locally, it has adopted a decentralised procurement function in order to respond to its growing business needs. By identifying high spend suppliers and high-risk categories, the IRC selects global suppliers who can procure products or services which may not be available from local suppliers when required. With nine countries in EastAfrica, the organisation has over a hundred suppliers just within this area alone, of which $275 million is put aside for the IRC’s overall supply chain operations globally. However, Kung’u adds, “we wouldn’t be
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“I MEET UP WITH SUPPLY CHAIN TEAMS ON A FORTNIGHTLY BASIS TO DISCUSS WHAT THE PRIORITIES ARE, AND THEN DECIDE WHAT IS BEST IN TERMS OF STRATEGY”
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successful in our health programs without dedicated suppliers like IMRES. One of our global suppliers for pharmaceuticals and medical suppliers, they have provided supplies to various countries in Africa and beyond, such as Mali, Kenya, DRC, South Sudan, Yemen, Nigeria, Central African Republic and Chad.” Embedding quality controls within procurement operations has become imperative in order for the IRC to procure responsibly and implement a competitive bidding process. “Even though the procurement activity could be happening in a certain country, we are able to review the procurement and make sure the quality is good before the contract is signed off by the suppliers,” explains Kung’u. “Our controls ensure that we have quality suppliers and we are managing the financing responsibly.” However, with the location of some of the areas the IRC is situated, complex issues are apparent, such as lack of access and/or communication. Consequently, multiple means of communication are utilised to broker positive relationships with suppliers
and stakeholders. Whilst email is the most frequently used communication tool, Kung’u adds: “I make a point of meeting up with the supply chain teams in countries on a fortnightly basis to discuss what the priorities are, clarify, or give assurance to a particular task or initiative, and then we decide what is best in terms of strategy.” Complex challenges Nonetheless, working within a humanitarian supply chain could be interpreted by many as increasingly hazardous in comparison to more traditional supply chain settings. Planning ahead and identifying potential needs is of course dependent on a variety of factors. Crises as a result of a recent mandate can be predicted, but with ones which are unexpected the supply chain needs to be flexible and respond as quickly as possible. To this effect, Kung’u explains that developing strong relationships with stakeholders has remained key: “Our teams of programming staff identify the needs ahead of time so we can start preparing in supply chain,
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knowing where we are going to fall, what sort of items are we getting in the local market, or whether to get these from global suppliers.” There can also be restrictions the IRC has in relation to procurement, as funding mostly does not come without certain conditions from humanitarian donors, some of whom require that procurements are done through already established humanitarian procurement centers or donor pre-qualified suppliers. Sometimes, Kung’u adds, “suppliers that have been prescribed by the humanitarian donor have not established a presence in the country where the programs are, which can result in additional challenges like import restrictions, long lead times associated with shipping
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and delivery and most importantly responding to those most in need.” Additionally, with a consecutive process, the organisation has to bid for funding and win grants, which can create delays. Through such high pressures, Kung’u’s strong relationships with stakeholders and senior management ensures that the IRC is an organisation with a culture for planning. Despite such challenges, Kung’u explains that the IRC has achieved a significant amount, explaining that “with the new ERP system, which is expected to launch in 2018, functionality is being built in to enable the organization to plan at the proposal stages of grants, so that the supply chain is equipped with knowledge and information about what is needed ahead of time to undertake procurement more efficiently.” Job satisfaction With the high number of challenges attributed to the humanitarian supply chain, Kung’u explains that job satisfaction has become of prime importance, understanding
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that the organisation continually makes a difference to peoples’ lives. Encompassing numerous complexities, with various countries adopting different challenges and humanitarian situations, barriers in trade and number of restrictions, Kung’u concludes by stating that the role is “very exciting, and that I have kept myself informed by collaborating with others in humanitarian agencies working groups, sharing knowledge with likeminded individuals like myself – such as the UN Agency & INGOs – where we share expertise, knowledge and experience. Having someone who is able to keep themselves informed by collaborating with others is very good and has really helped me grow within the supply chain.”
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