May 2016 | www.africanbusinessreview.co.za
DELIVERING FOR AFRICA
DHL Supply Chain Africa’s regionally-led growth strategy
INTERVIEW
Djibouti’s Minister of Energy
FOUR TIPS FOR IMPACT INVESTORS PwC
SA businesses need to factor cybercrime into their risk assessments
SPECIAL REPORT iSON Group’s Ramesh Awtaney, discusses onshoring in Africa
IN THIS ISSUE
EDITOR’S COMMENT
African Institutions H E L L O A N D W E L C O M E T O the May edition of
African Business Review. This month we speak to DHL Supply Chain Africa’s CEO Paul Stone, who reveals how the globally-present logistics company has enhanced its commitment to the continent by rolling out a series of technological innovations, developing the skills of its workforce, through a regionally-focused strategy. We also explore the successes of iSON Group. Trevor White and Junaid Amra from PricewaterhouseCoopers explore data collected in the company’s Global Economic Crime survey. Together, they focus on South Africa – an African country that has reaped the benefits of high tech innovations more than most – and reveal some quite interesting (and startling) statistics about cybercrime. We also feature an exclusive interview with Djibouti’s Energy Minister, Ali Mahmoud Yacoub, covering the country’s $4 billion mega gas project and the effects that this will have on the nation’s economic development. Lastly, as Foreign Direct Investment (FDI) into the continent climbs to an all-time high, we explore the top four tips for impact investing in Southern Africa, looking at research compiled by Global Impact Investing Network. We hope you enjoy the read; feel free to share your thoughts on Twitter @AfricaBizReview
Enjoy the issue! Nye Longman Editor Nye.Longman@bizclikmedia.com
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CONTENTS
Features
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LEADERSHIP
Fuelling Djibouti’s future the country’s $4 billion mega gas project
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TECHNOLOGY
PwC Forensic Services 4
May 2016
Four tips for impact investing TOP TIPS
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Company Profiles
28 DHL Supply Chain Africa
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Mineral Deposits (GCO)
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iSON Group
5
Q & A
Fuelling Djibouti’s future
African Business Review speaks to Djibout Yacoub, about the country’s $4 billion meg with the government of Ethiopia and China’ E d i t e d b y: N Y E LO N G M A N
ti’s Minister of Energy, Ali Mahmoud ga gas project developed in tandem ’s POLY-GCL Petroleum Group 7
Q & A
What contribution can the Ministry of Energy make to the economic progress of the country? Mr Yacoub: The energy sector is one of the main pillars of socio-economic growth in Djibouti. We are currently working on the implementation of energy policies and have taken a number of steps to drive sustainable development, achieve energy security, create jobs, and reduce poverty. Under the leadership of President Ismaïl Omar Guelleh, Djibouti is committed to becoming the first country on the continent to generate all its energy requirements through renewable sources by 2020. To reach this goal, we are working with a number of international partners and the private sector to harness our geothermal, wind, and solar resources, as well as develop our energy infrastructure in order to achieve energy independence, attract investment, boost the local economy, and create employment opportunities. In parallel with the development of renewable energy, Djibouti has embarked on several major energy infrastructure projects with Ethiopia,
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including the construction of a 550 kilometres refined petroleum products pipeline linking Djibouti’s ports to the city of Awash in central Ethiopia, which is scheduled for completion in 2018, and most recently the launch of an LNG project, which comprises a 700 kilometre natural gas pipeline, a liquefaction plant and an export terminal at Damerjog. These projects, which form part of the Government’s plan to develop infrastructure across the country, will enhance regional integration, and will accelerate the process of socio-economic development across the region, as well as reinforce Djibouti’s position as a commercial and regional economic hub.
What are the indirect effects on the local economy? Mr Yacoub: The LNG project, which will take three years to complete, is expected to create employment opportunities for thousands of Djiboutians both during the construction phase and following completion, and will have a positive impact on the local economy. Our
FUELLING DJIBOUTI’S FUTURE
Government’s top priority remains creating jobs, growth and longterm prosperity for Djiboutians. This new venture along with other major infrastructure development projects will support economic growth, accelerate job creation, and thus reduce poverty. In addition to generating jobs, this ambitious project will expand the capacity of Djibouti’s sea ports, which contribute directly to inward investment and GDP growth.
What measures are you taking to ensure that the construction of the project is carried out efficiently and in an environmentally sustainable manner? Mr Yacoub: We are committed to constructing, maintaining and operating the new LNG project in an efficient, safe and environmentally sustainable manner, consistent with internationally accepted technical standards for construction and operation of pipelines. To achieve 9
Q & A
this, we have complied with various regulatory processes, as well as prepared a feasibility analysis to determine the pipeline route and ensure that it does not adversely affect the environment. We are working with Chinese company, POLY-GCL Petroleum Group Holdings Ltd, which has extensive experience with largescale energy infrastructure projects and a good track record of being environmentally responsible. Together, we will develop a transportation system which will allow the efficient and safe movement of natural gas from Ethiopia to Djibouti. Further, the LNG processing plant, which will have the capacity to produce up to 10 million tonnes of liquefied natural gas per year once completed, will be equipped with extensive systems to store and process LNG safely. The Government is determined to
make the liquefaction plant and both the LNG and oil pipelines operate safely and reliably. We are also working with Black Rhino Group and Mining Oil & Gas Services to establish extensive preventative measures to ensure that the construction of the 550 kilometre refined petroleum products pipeline linking Ethiopia and Djibouti is safe and sustainable. Our goal remains the construction of efficient and safe transportation systems with minimum risk to the population and to the environment.
What are the current energy challenges faced by the Government of Djibouti and how do you plan to resolve them? Mr Yacoub: Energy is essential for the success of Djibouti’s economy. As our economy grows, so does our demand for energy. Djibouti remains heavily dependent on imported fossil
“The launch of this important project constitutes a new chapter in our country’s energy sector, a chapter in which we will generate economic growth and consolidate Djibouti’s position as an energy hub” 10 May 2016
FUELLING DJIBOUTI’S FUTURE
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Q & A
fuels and power, which exposes it to market price volatility, creating uncertainties and hindering socioeconomic development. In order to address these energy challenges, we have developed a strategy for the next decade and an action plan for the coming five years, which aim to reduce energy dependency through the use of renewable resources that will allow all Djiboutians to benefit from abundant, reliable, and affordable energy. In addition, in its Vision 2035 long-term development plan, the Government has set out its strategy to
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address energy challenges and aims to make Djibouti the first African nation to use 100 percent green energy by 2020. We recognise the importance of developing our abundant geothermal, wind and solar resources to meet both our economic and social development objectives. We are currently working with our development partners and private investors from the US, Japan, Australia, and Italy to develop Djibouti’s geothermal potential, which is estimated at more than 1,000 MW throughout the national territory. We are also working with companies
FUELLING DJIBOUTI’S FUTURE
including Qatar Electric and Green Enesys of Germany to develop wind and solar power projects. We have set a target of connecting 30 percent of the rural population to electricity using solar energy by 2017. The development of renewable resources will not only provide Djibouti with a sustainable, secure and affordable energy supply, which is vital for our future prosperity, but also boost employment. By increasing the share of renewable energy sources, Djibouti will also cut its greenhouse gas emissions. The Government continues to work with other countries to tackle climate change. As part of its national commitment to the Paris climate conference, Djibouti has pledged to decrease CO2 emissions by 60 percent by 2030, which cannot be achieved without the development of renewable energies.
In what ways will this project strengthen ties with the countries involved? Mr Yacoub: The LNG project is the largest joint energy infrastructure project between the Republic of Djibouti and Ethiopia. This project will
increase energy security for Djibouti, Ethiopia and our Chinese partners, who are providing funding; alleviate poverty in our country, as well as aid economic development in the region. Djibouti is committed to regional integration among the countries of the sub-region and is creating conditions to further strengthen economic ties with Ethiopia. In accordance with the COMESA’s vision, we are looking to achieve economic prosperity through regional integration. The launch of this important project constitutes a new chapter in our country’s energy sector, a chapter in which we will generate economic growth and consolidate Djibouti’s position as an energy hub. Djibouti has a special bond with Ethiopia and this new project will further cement these ties. The two countries are making progressive steps to make the Ethiopia-Djibouti belt the main logistics hub for East Africa; working to enhance cooperation in the energy sector; as well as setting an example for other countries in the region in terms of advancing the regional integration policy.
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TECHNOLOGY
PwC Forensic Services Organisations
need to incorporate cybercrime into their risk assessments While the uptake of technology and the proliferation of the Internet of Things presents South African businesses with a wealth of opportunities, the threat of cybercrime remains a largely overlooked threat, as reported in PricewaterhouseCoopers’ recent Global Economic Crime survey. Written by Trevor White, PwC Forensic Services partner and Global Economic Crime Survey Leader and Junaid Amra, PwC Cybercrime and Forensic Technology Services Associate Director
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TECHNOLOGY
WORLDWIDE, DIGITAL TECHNOLOGY continues to transform and disrupt the world of business, exposing organisations to a multitude of opportunities and threats. Therefore, it is hardly surprising that cybercrime continues to rise rapidly, ranking as the second-most reported crime in this year’s PwC Global Economic Crime Survey and taking fourth place from a South African perspective. The fast take-up of cloud-based systems to store information by businesses and the growing use of the ‘internet of things’, where everyday objects are connected to the internet, are particularly more vulnerable to cyberattacks. The rise in cybercrime has caught many businesses off guard with no plans in place to fend off online fraud. Most organisations are still not adequately prepared for it, or even understand the risks faced, with only 35 percent of South African organisations reporting they have a fully operational cyber incident response plan in place. The 2016 Global Economic
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Crime Survey interviewed 6,337 participants in 115 countries. In South Africa, 232 organisations from a broad spectrum of industries took part in the survey. The incidence of reported cybercrime among our respondents is substantially higher this year, with a 23 percent increase reported from the previous survey conducted in 2014. So although cybercrime in the South African context has shifted two places from sixth to fourth position, it is the percentage increase that is more alarming. A third of respondents said they had been affected by cybercrime. Another 16 percent said they didn’t know whether they had or had not been victims of cybercrime. In terms of financial losses, at least 27 percent of respondents who have experienced cybercrime had losses between $1 and $50,000 while 3 percent had experienced losses greater than $100 million. It is concerning to note that 14 percent of respondents don’t know or were unable to quantify financial losses even though they
PWC FORENSIC SERVICES
“Only 35 percent of South African organisations have reported having a fully operational cyber incident response plan in place”
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TECHNOLOGY
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May 2016
PWC FORENSIC SERVICES
had been victims of cybercrime. of credit cards or personally South African businesses identifiable information can also be considered financial losses to be harmful. This comes in the wake the most damaging impact of a of the promulgation of privacy cyber breach, followed closely by legislation such as the Protection legal implications and reputational of Personal Information (PoPI) Act damage. This differed from and the impending Cybercrimes and the global perspective, where Cybersecurity Bill. South African reputational, legal and regulatory organisations will increasingly impacts were considered to find themselves ‘The be the most significant. having to deal with Over the last few regulators and rise in years, cybercrime other authorities cybercrime has evolved to a in the event of an has caught many point where it can incident arising. businesses off guard with According be classified into two categories: to the survey no plans in place to Firstly, the kind that findings, almost fend off online steals money or data three quarters of fraud’ that is monetisable and organisations (69 bruises reputations; and percent - a 15 percent secondly, the kind that steals IP increase on 2014) see an and lays waste to an entire business. increased risk of cyber threats. A The latter are usually classified disparity was noted between the as transfer-of-wealth attacks. responses of CEOs and CFOs: Although the long-term damage 83 percent of Chief Executive to organisations and the economy Officers and only 57 percent of is far-reaching and far higher for Chief Financial Officers see an transfer-of-wealth attacks, the increased risk in cyber threats. damage arising from the theft Responsibility for redressing
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TECHNOLOGY
cyber vulnerabilities requires input from the board to ensure risks are properly addressed and identified. However, the survey suggests that many boards are still not sufficiently proactive regarding cyber threats and many do not understand their organisation’s digital policies to assess the risks. Only 48 percent of boards are requesting information around cyber-readiness locally; this is slightly higher than the global average of 43 percent. Only 35 percent of respondents have a fully operational incident response plan; 13 percent don’t know if they have one; and 12 percent do not have one nor do they intend implementing one. Should a cyber crisis arise, only 34 percent of organisations have personnel that are ‘fully trained’ to act as first responders, and 20 percent of organisations indicate that they will make use of outsourced personnel. Through the investigations we have conducted we often find that organisations which make use of outsourced digital forensics providers only start procuring services when an
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incident occurs, and delays in the procurement process often result in a time lag during which critical evidence is lost or damaged. On a closer study of incident response teams, we noted that teams are still weighted towards having more IT security personnel (73 percent) and IT staff (62 percent), while only 28 percent of organisations include digital forensic specialists. Although organisations have made significant strides, in particular regarding the sophistication and preparation around cyber-attacks since 2014, most organisations are still not adequately prepared for them to understand the risks they face or manage the incidents effectively. It is critical that companies incorporate cybercrime into their risk management assessments. Organisations need to understand and plan for cyber threats in the same way as any other potential business threat. This includes drafting a response plan, as well as monitoring and scenario planning.
PWC FORENSIC SERVICES
“Many boards are still not sufficiently proactive regarding cyber threats and many do not understand their organisation’s digital policies to assess the risks” 21
TOP TIPS
4 tips to improve impact investing in
Southern Africa A new report compiled by the Global Impact Investing Network (GIIN) sheds light on impact investing activity in Southern Africa, and looks at trends, challenges, and capital flows Written by: Nye Longman
IT IS CLEAR that every country in Southern Africa has its own particular set of conditions that affect the ways in which impact investing is handled. Impact investors must therefore take their time to carefully learn about
the conditions in each individual country. GIIN researchers, in their report entitled Landscape for Impact Investing in Southern Africa, have compiled four key considerations that apply to Southern Africa, which are: 23
TOP TIPS
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LEVERAGE TECHNICAL ASSISTANCE (TA) FACILITIES TO BUILD THE PRE-INVESTMENT PIPELINE More pre-investment support is required in order to to develop a strong pipeline of investable opportunities for businesses; TA funders like USAID and DFID are recognising the importance of getting companies to the point where they can successfully raise capital. The report says: “Targeted, tailored support requires an upfront commitment of resources but has proven effective in preparing potential targets for investment and in building highquality deal flow. This process can also dramatically reduce diligence timelines if the investor is able, before investment, to increase familiarity with and visibility into a business.� 24
May 2016
F O U R T I P S F O R I M PA C T I N V E S T I N G
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DEVELOP SECTOR SPECIALISATION
Impact investors can also drive growth, impact and solid returns by narrowing down their focus on sector-specific portfolios. This has enabled some to use their existing knowledge to target some less well-known
opportunities earlier and also to reduce diligence timelines. The report expands: “Sectors such as agriculture, energy, and financial services present large opportunities where different companies often face similar challenges; learnings can be shared across portfolio companies.� 25
TOP TIPS
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EXPAND INVESTMENT INSTRUMENTS
There is a rich variety of earlystage businesses in the Southern African ecosystem - structured investments (for example: milestone-based conversion and profit-sharing debt) can fulfil a
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significant need for financing that more conventional equity and debt deals cannot. The report says: “Such creative structures can help entrepreneurs meet their ongoing cash-flow requirements while delivering long-term returns in line with investor expectations.�
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ESTABLISH LOCAL PRESENCE Locally-situated impact investors across Southern Africa have reported gaining a markedly significant advantage in their ability to source investment opportunities, in an environment that typically lacks investable businesses. “Currently, only a handful of
F O U R T I P S F O R I M PA C T I N V E S T I N G
impact investors have staff in the region outside of South Africa, and limited impact capital is available there. Locally-based impact investors will be able to identify opportunities more easily and will incur fewer costs than investors operating with a fly-in, fly-out model that may require multiple trips in order to perform due diligence and manage the portfolio.� 27
Delivering for Africa
Written by Nye Longman Produced by Charlotte Clarke
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D H L S U P P LY C H A I N A F R I C A
H
aving successfully operated in the continent for nearly 50 years, DHL Supply Chain Africa is now well positioned to further develop its presence. While adopting a range of technological innovations, the logistics company is engaged in a regionally-focused growth strategy that will see its award-winning services and solutions rolled out across even more businesses. Operating in Africa is challenging for any business, but DHL’s success is so intimately tied to that of its customers and partners that an entirely new level of performance is demanded on a daily basis. Backing
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up its operational and regional growth, the company has also made a concerted effort to develop its talent base, while maintaining its exemplary CSR initiatives.
Operations DHL Supply Chain Africa also offers a broad spectrum of supply chain services which cover everything from sourcing, storage, supply chain analytics and lead logistics provider (LLP) services. Leveraging its extensive crosssector experience, the company is also able to provide warehousing services for everything from raw materials to finished goods.
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DHL Supply Chain Africa’s CEO much embedded in the DHL Paul Stone emphasises that on top Supply Chain team culture.” of delivering a diverse and often challenging remit, the company is Supply chain management also able to maintain an ethos of Stone explains that, while the continuous improvement: company’s SCM strategy “We have a team that is consistent across drives continuous all countries, it improvement in remains flexible, the business depending on the and a culture situation: “We have of striving approximately 700 Number of Employees to be better of our own vehicles at DHL Supply year-on-year. on the road on any Chain Africa “This is striven given day and also for, budgeted for and partner with a number driven from the top, and we of subcontractors across have a group of people who are Africa to different degrees. managing to drive that through a “We manage this on a number of different initiatives and straightforward SLA basis processes. Those might be new currently with the aim of forging systems, enhancements to existing long term partnerships. Most of systems or process reviews. So the subcontractors have worked continuous improvement is pretty with us for 5 years or more and
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during this time they have come to understand our business and our customer’s needs.” Due to the unpredictability of local markets, supplier investments are, by necessity, made over a shorter time period, as Stone explains. He says: “Our business is cyclical. A contract will typically run between three to five years so we always have that ongoing real time view rather than a 10 or 15 year view because that would be impossible for me to predict.” In order for DHL Supply Chain Africa’s remit to be executed seamlessly, the company has spent a great deal of resources on ensuring that its staff are qualified
and motivated to achieve worldclass results. Stone explains: “We have dedicated training programmes at all levels. We also have development programmes where we identify
Paul Stone CEO Africa and Managing Director South Africa
talent and nurture that talent to get to the next level. We have a clear plan which includes, amongst others, mentorship programs, planned events and personal development plans.”
Technology While Stone compares South Africa’s infrastructure favourably to more advanced European
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upply Chain Africa’s ed seamlessly, the great deal of resources taff are qualified and e world-class results’
economies, he and his teams are intimately aware of the challenges that lie outside of the continent’s second largest economy. He is also keen to leverage technology to make the best of a sometimes unfavourable situation: “Every customer needs to have information in real-time. I don’t see any customer who doesn’t want to have a real-time dashboard on their smartphone so they can understand what is happening. “So we offer a consistent solution that gives that visibility across the continent. We’ve invested in technology and visibility tools and this is to be enabled for our customers as well. This is a key differentiator in the market for us.
Will we be the cheapest in town? No, but we will deliver a superior service that allows the customer to enhance their own offer.” He adds that the business only uses the best-in-breed IT Solutions, particularly across finance, warehouse and transport management: “For example we have Mix Telematics in our IT landscape which provides some of the visibility that we’re talking about and then for warehouse management we deploy the market leading Manhattan’s WMS. “I can also put another view on top that we call Connected View, which is a DHL system that takes visibility to another level. Depending on the customer, they can have visibility right from when their order is picked through to delivery and individual case level if they wish to do so.” DHL Supply Chain Africa is
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D H L S U P P LY C H A I N A F R I C A
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backing up this technological offering with a number of physical assets which include fleet replacement which takes into account a number of new key customers moving forward.
Social responsibility “We want to grow in a way that is culturally balanced; I don’t just want a business that wins from a monetary side. It’s got to be a business that has got the right culture, the right ethos, and the right work ethic to go forward. That’s important to me and important for our group,” Stone explains. DHL Supply Chain Africa has a dedicated CSR team that operates on both local and regional levels, which works to achieve both environmental and social goals. Alongside funding and volunteering for a range of initiatives to this end, the company also uses its
strong internal governance measures to improve standards and drive out corruption. “We are already paperless in our warehouses and within the office environment we have a number of different initiatives to drive paper out of our business. I can’t say we are a completely paperless society but we are moving to that culturally.” Having been a logistics leader in Africa for so long has not given DHL Supply Chain Africa cause to be complacent. The company has invested in both its technological assets and its workforce to ensure that the business is robust enough to weather the often unpredictable nature of the developing continent. Ensuring that its operations are having a positive impact on both communities and the environment has cemented its reputation as a business that cares deeply about the future of Africa.
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Onshoring in Africa
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iI S O N G R O U P
iSON’s Founder, Ramesh Awtaney, describes how his company has created history with its unique African business model
i
SON Group is one of Africa’s largest IT and ITeS companies, with a strong presence in 25 African countries, and a staff team of over 10,000 in the continent. iSON caters to a host of clients in sectors such as Telecoms, Banking and Financial Services and Insurance (BFSI), Government, Retail, Oil & Gas, and Aviation. iSON is split into three operating arms: iSON Technologies, which concentrates on IT solutions; iSON
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BPO which provides call centre and process outsourcing services; and the newly-launched iSON Innovation and Investments, which is an initiative for driving consumer internet business in Africa. Ramesh Awtaney is the Founder and Chairman of the company, and has maintained a strict vision of the company since its inception: “Fifteen years ago, the words ‘outsourcing’ and ‘offshoring’ were used like synonyms,” he explains.
TECHNOLOGY
Ramesh Awtaney Founder and Chairman Ramesh Awtaney, a serial entrepreneur since 2009, is the Founder and Chairman of iSON Group. As a seasoned MNC executive and technology leader with nearly two decades of experience in Telecommunications and IT, Ramesh executed the path-breaking IBM-Bharti IT outsourcing deal on a revenue-share basis for the first time, which went on to become a benchmark for the industry. The telecom outsourcing arrangement is a Harvard Business case study that has been discussed globally in more than 50 boardrooms, and has also been referenced in the Global Strategies for Emerging Asia. Earlier at Ericsson, he managed sales and operations of all India GSM business. For more information: https://en.wikipedia.org/wiki/Ramesh_Awtaney
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Pravin Kumar Global CEO, iSON BPO Pravin is an industry veteran with more than 35 years of experience during which he has been credited with the creation of three large business empires. Pravin is a widely respected name in the Business Process Outsourcing space and is regarded as a pioneer in call center services. He is a Board member of iSON BPO - the leading ITeS services company in Africa. Under his strong leadership, iSON BPO now has operations in 16 countries in Africa and ASEAN regions with about 10,000 employees within 3 years of iSON BPO’s establishment.
TECHNOLOGY
“Whenever a US based company was sending work to India, the Philippines, or Bangladesh, they used to call it ‘outsourcing’, whereas the reality was that they were offshoring the work. Off shoring is mainly about labor arbitrage while outsourcing is about ‘let me give the job to somebody who can do it better, faster, and cheaper than me’. We do not use the two words as synonyms. iSON does outsourcing, not offshoring. “Africa is a developing continent with tremendous growth potentials, and availability of educated youths who lack relevant abilities and technological knowhow. We have used skills found in India, which is very mature in the IT and ITeS services industry, and applied this knowledge base to Africa to achieve optimal advantage. My motto is ‘let us not bring work
to intellectual property, but take intellectual property to work’.” Local recruitment Awtaney and his team are forming a unique and attractive business mix, and as such, the company has provided 10,000 jobs in Africa of which 99.5 percent are handled by locals, thus building an entire gamut of skills within the short space of five years. “What you have to remember is that Sub Saharan Africa is not one country but 46. What we have done is created a 17-country delivery model, each fully equipped with a skill development center. We hire mostly fresh graduates who then undergo a companysponsored skill development programme for six weeks, and upon successful completion, they are offered jobs in our call centers.”
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iSON GROUP
iSON began in Nigeria, consciously deciding on the most populous African country but avoiding its larger cities. “We chose to do this because these cities are more marginalized in terms of employment and in a bid to be more socially responsible, we decided to take business to the smaller cities,” Awtaney says. “We employ over 4,000 people in Nigeria, and less than 100 of them are in Lagos. We have a high turnover of call centre agents because it is a strenuous job, and many people are able to manage for only a short duration. However, having 10,000 people in this role at any time suggests that there is a demand for employment in this business. The agents that choose to leave are trained and better equipped for another job
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in other services industries.” Many company leaders would baulk at the concept of training their staff for future jobs, but not Awtaney, who is actually proud of this contribution to the African economy: “We are probably the largest services company which is creating employment and skills for those people and for society. We are very passionate about this and feel that we make a difference by changing the lives of people now and for posterity.” In addition to the focus on local employment, iSON is passionate about gender diversity, maintaining a ratio of 46 women in every 100 employed by the company, which even by global standards is exceptional. Technology iSON employs information technology graduates
TECHNOLOGY
iSON is headquartered in Lagos, Nigeria
iSON Group wins ASSOCHAM India- Africa Champion in Biz Awards for "Disinguished Achievement in IT & ITeS category " during Indo- Africa Summit 2015.
“Africa is a developing continent with tremendous growth potential, and availability of educated youth who lack relevant abilities and technological knowhow�
Jitendra Israni CEO, iSON Technologies Jitendra Israni is the CEO of iSON Technologies, the technology and systems integration arm of the iSON Group. GTS a Middle East based company acquired by iSON Technologies in 2015 and focuses on IT enabled business process engineering is also led by Israni. He has extensive experience in Telecom and IT industry and has been associated with leading Telecom and IT companies in senior management roles in India and abroad.
TECHNOLOGY
and postgraduates, as the skillset required above call centre level is more complex. These graduates are trained in Big Data, Analytics, Call Centre Technology, and mobile applications that enable a high level of efficiency in the operations of the company’s blue chip clientele. For Awtaney, Information Technology is about utilising a platform to create partnerships. iSON boasts of some impressively large clients – MTN, Airtel, Etisalat, Millicom, GT Bank, Nakumatt, Fast Jet, Aga Khan Hospitals, Kenya Tourism Board, Ministry of Finance- Kenya, Crown Beverages Uganda etc. iSON enjoys premium partnership privileges with A list companies such as Oracle, Avaya, IBM, Cisco etc. Owing to the company’s expertise, client and partner support, iSON
expects that its staff numbers will grow exponentially by 2020. “It took India’s largest IT company 18 years to get to 10,000 and over the next five years they grew from 10,000 to 100,000. We have hired 10,000+ in less than five years and believe we are poised to hit a 100,000 by 2020,” Awtaney says. “We’ve set a precedence and the market is confident about the company, so everybody wants to come and talk to us about doing their work efficiently and cost-effectively.” Innovation and Investments The company has also created a platform called iSON Innovation and Investments, which is enabling entrepreneurship in Africa. iSON provides local entrepreneurs with capital, but more importantly enables them by sharing a deep
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understanding of each local market’s nuances – ranging from regulation, local laws, and currency management, to local logistics. Another important aspect of this is mentorship and guidance;
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young entrepreneurs have an opportunity to interact frequently with Awtaney and his experienced management team, which is able to provide insights on scaling and managing sustainable growth in different markets across Africa. iSON Innovation has already made 2 investments in Africa: one of them is a leading taxi aggregation company called Mondo Ride, which is now live in Nairobi and Dar-esSalaam, with expansion plans to launch in 15 additional cities in Africa over the next six months. The second investment is in a mobile digital recharge platform called Oliza, which is expected to launch services this month. “The company operating system is an enablement platform,” says Awtaney. “Start-ups and large companies alike want to utilise our know-how; they want to build their
TECHNOLOGY
Akshay Grover CEO, iSON Innovation and Investments Akshay Grover is the CEO, iSON Innovation & Investments. He is responsible for capital raising, mergers and acquisitions and strategic initiatives for the iSON Group. Grover was associated with Ernst and Young India previously and has expertise in TMT sector across Middle East and Africa, Europe and India.
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iSON GROUP
Africa strategy on the back of our success and our presence. I truly want to monetise the Innovations and Investments platform for use of other companies to assist everyone’s presence in Africa. For example, one company came to
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us asking if we could bring them to Africa – it was live in Kenya within 45 days, and would go live in ten other countries in six months.” iSON follows a strictly onshore market – “for Africa, in Africa” as Awtaney says – and Africa is 90
T E C H Nto OLOGY Avaya and iSON Technologies Partner Drive Digital Transformation for Africa From its origins in AT&T, then Lucent, Avaya has
To give just one example, the two companies
continued to prove its leading reputation by providing
have successfully delivered customer experience
reliable services to its partners. Today, Avaya is the
transformation for one of Africa’s largest service
only company that specializes in complex business
providers, having designed and deployed contact
communications –internal for companies’ teams and
center technology and managed services across 16
external for their customers – based on open, mobile
countries. The solution leverages Avaya’s leadership
software platforms, with the network infrastructure to
in contact center technology and iSON’s extended
meet customers’ underlying needs.
reach
and
skilled
workforce,
providing
a
fully
integrated customer experience, supporting 60 million Avaya
specializes
solutions
and
in
services
vertical, that
industry-focused
focus
on
business
subscribers in 18 languages, while reducing costs and increasing performance.
outcomes for enterprises of all sizes and types, rather than the traditional one-size-fits-all approach. The
The successful contact center solution implementation
Avaya SDN-Fx networking architecture is the first
has led to iSON winning multiple Contact Center
to deliver automation and programmability from the
awards and delivered a reference for iSON and Avaya
network core to the user edge, providing “connect
in every country. iSON has also won multiple other
anything, anywhere” simplicity – the perfect platform
awards for its work with Avaya in different African
for building Internet of Things strategies and to
countries, including with one of the world’s leading
underpin smart digital transformation.
international banking groups.
iSON Technologies is one of Avaya’s most valued
Contact Center Solutions
partners in Africa, Strategic Win partner of the Year
Today, iSON and Avaya are providing contact center
at the Avaya Partner Forum event in 2015. The two
solutions to one of the largest mobile communications
companies have been working together since 2010,
companies in the world. iSON is working with Avaya
and now partner in 21 countries across the continent.
to deploy Avaya Aura Unified Communications and
iSON is an Avaya Platinum Partner, the highest level.
Contact Center solutions to the company’s operations in seven countries, and giving Avaya a presence in
Digital Transformation
90% of the service providers in Africa.
Together with iSON, Avaya is helping organizations in Africa to progress on their digital transformation
Avaya’s successful transformation into a customer-
journeys and enhance the customer experience.
centric company focused on software and services –
Governments and enterprises across the region are
which account for 73% of revenue – and the strength of
looking at digitization strategies to drive operational
its solutions fit well with iSON’s strategy of customer
excellence, customer and citizen satisfaction, and
experience management. With Avaya able to deliver
deliver greater competitive differentiation. Avaya’s
a complete solution for the customer experience,
client-tailored and outcomes-focused digital and
including voice and data, and offering stable, reliable
smart services elevate organizations of every scale
solutions, iSON is looking to extend the partnership
and accelerate growth through their digital journeys,
outside of Africa, with a goal of operating in the United
with vertical, industry-focused solutions and services
Arab Emirates and other countries in the Middle East.
that focus on outcomes.
Africa is fertile ground for development.
As African nations and businesses look to expand
Avaya and iSON have together planted the seeds of
and play a greater role in the global economy, Avaya
a lasting partnership that is flourishing and delivering
and iSON have strengthened their relationship. Today,
results.
Avaya and iSON work closely on key strategic accounts across Africa, helping to transform the customer experience for leading brands in the Telecom Service Providers, banking, and financial services industries.
For more information please visit our website: www.Avaya.com
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iSON GROUP
percent of the company’s revenue: “For most other large companies in Africa, it is 1 or 2 percent. We are focussed and committed to Africa. We do not have the kind of overheads a US company or even an Indian company would have, ensuring that we can concentrate on the business and the continent. These are a few things that set us apart, and we have got to the scale where there is nobody in the market even a fourth of our size. Once one gets to a particular level, the scale and the processes that have been built rigorously enable delivery of the highest standard of service in the most cost-efficient manner.�
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TECHNOLOGY
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EXTRACTING V Written by:Nye Longman Produced by: A. Munatswa
VALUE
MINERAL DEPOSITS (GCO)
How Mineral Deposits Limited is using its scale for good while maintaining an efficient, profitable mineral sands operation in Senegal
D
espite only being operational since the middle of 2014, Mineral Deposits’ Grand Côte Operations (GCO) in Senegal has already proved to the industry that a mining outfit can operate a profitable and productive business while making a positive impact in a developing country. In recognition of its formidable achievements thus far, GCO received an exclusive invitation to accompany the Senegalese government to last year’s COP21 conference – a well-deserved honour, as we shall explore. Operations Listed on the Australian Stock Exchange, Mineral Deposits Limited (MDL) is specialised in mining, integrating, and transforming mineral sands. In partnership with French company Eramet, MDL owns 50 percent of the TiZir joint venture, which consists of the Grande Côte
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MINING
operation in Senegal, supported by a titanium and iron ilmenite upgrading facility (TTI) in Norway, enabling the extraction and subsequent smelting of mineral sands in a single operation. Senegal’s Grand Cote Operations span over 445 square kilometres; the orebody present in this region is primarily made up of zircon and ilmenite, but also contains some high value co-products in the form of rutile and leucoxene. With an expected lifetime of just under 30 years (not counting some additional resources), the mine is set to be profitable for all involved if the correct strategy is adopted. GCO CEO Daniel Marini explains: “The operation covers a very large area, however due to the nature of the deposit we need to maintain a very elevated throughput; this achievement owes a lot to operating the largest dredge in the world.” A series of unique pumps supports this
800 Number of jobs to be supported by Mineral Deposits
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MINERAL DEPOSITS
Unearth a productivity gold mine without having to dig deep.
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MINING
exceptional piece of equipment that moves the extracted ore to a floating wet concentrator plant which separates the mineral deposits from the surrounding sand. The resulting product is then driven to a dedicated mineral separation plant – once fully processed at the mineral sand process plant, the mineral sand travels via rail to GCO’s dedicated dock at the Port of Dakar. Marini explains how a range of control measures certify that the minerals GCO ships are of the highest quality: “We have a laboratory operated by a technician with a Masters in Chemistry who takes hundreds of samples every single day. This ensures our product is free from pollutants and is up to international standards.” Strategy GCO’s scientific approach goes far beyond geology, hydrogeology, and metallurgy involved in mineral grading – every aspect of its operations is calculated to deliver the most value - from shareholders to the surrounding communities. Even Marini’s appointment as CEO just over a year ago was a decision based on his broad professional experience and technical capabilities. He says: “I earned a PhD in Geology and in Mining. I worked for the UN DP in Djibouti as a geologist and hydrogeologist. I also worked on a World Bank project in North Cameroon surveying over 400 villages for water, as well as in several executive roles ( as
“The Senegalese government is keen to help those looking to develop industrial operations in the country they want to have a mining industry and are prepared to make mining into a profitable business” – Daniel Marini, CEO
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MINERAL DEPOSITS (GCO) geologist, mining engineer and metallurgist) for mining companies part of Eramet Group. Operating a successful business in Africa does not come without its challenges but, as Marini explains, the government of Senegal (which owns a 10 percent stake in GCO) has proved to be a strong asset to its operations: “The Senegalese government is keen to help to those looking to develop industrial operations in the country - they want to have a mining industry and are prepared to make mining into a profitable business. “When we needed to speak to a government official, their doors were always open – perhaps
MINING
more so than in other African countries. There’s a level of respect, not solely from ministers, but from the people living near our operations as well. Senegal is a country with a culture of education and has a wealth of skilled individuals.� He adds that GCO recently hired an external auditor to examine the entirety of its supply chain operations in order to find savings and promote efficiency. While this is yet to be fully completed, it is increasingly likely that the company will be looking to simplify its logistics operations, enabling it to work with a smaller number of providers and therefore streamline many of its processes. Like many other mining companies faced by the fall in commodity prices, GCO has engaged in a process of optimising all of these costs. Positive impact Far from ignoring its role as a key employer in the Grande Cote region, GCO has made a number
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MINERAL DEPOSITS (GCO) of commitments which will ensure its successful operations benefit both its employees – a mixture of locals and expatriates – and the communities touched by its work. Taking into account the relatively long life-span of the mine, the company has worked hard to make sure that its CSR work leaves a lasting, long-term impact. Marini expands: “We have the potential to make a huge impact – out of the 800 people we employ, 740 of them are locals; our operations, directly and indirectly, are responsible for employing a total of 2,000 people. Alongside the training we provide on-site, we also take the brightest local people and give them top professional training across numerous European institutions.” GCO also left a permanent mark on the area by constructing a resettlement village for the local people; where there were once temporary structures, now stand concrete buildings, supplied with running water and powered by solar panels. With these initiatives, the company seeks to develop local economies and prove to the entire industry that ethical extraction is very much within reach. By challenging itself to do as much as it possibly can for local communities, it is not only improving living standards but also playing a major role in fostering Senegal’s local extraction talent pool. Furthermore, GCO is showing that Senegal is a country with healthy business opportunities and an environment that is investment-friendly. 66
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The benchmark in agricultural machinery conveyance.
AGRITRANS Serving the Southern African Agricultural Industry T: +27 58 813 1303 • F: +27 86 689 7623
www.agritrans.co.za