www.africanbusinessreview.co.za September 2014
marketing
SMEs embrace the BYOD revolution
finance
Calculated risks contribute to entrepreneurial success
TOP 10
Female Leaders
IBM’s Research Lab
Rises to Meet Africa’s Challenges
Q&A: Richard Bodin of fastjet
edi t or ’ s commen t
Modern Technologies to Solve Continental Challenges A s o n e o f t h e world’s fastest growing economic
markets, Africa has been a familiar stomping ground for rapid technological innovation for many years now, so it should come as no surprise that the leading companies and dominating trends have found their way into the continent’s core makeup as well. IBM’s 12th research laboratory has recently been opened in Nairobi, Kenya with a view to bringing its world leading technological solutions to Africa in an attempt to not only solve various social and economic problems, but to surpass other regions’ capabilities in some areas too. Sheree Hanna delves into the company’s strategy following an interview with Chief Scientist, Osamuyimen Stewart. BYOD is a trend similarly etching its way into the business consciousness in Africa and Manoj Bhoola of SAP Africa analyses its plus-points from a marketing perspective. Elsehwere, our monthly ‘Who’s the boss?’ feature takes us into the skies where Richard Bodin discusses fastjet’s pan-African quest, and Christo Botes pinpoints four tips on risk management for entrepreneurs.
Enjoy the issue!
Matthew Staff
Associate Editor matthew.staff@wdmgroup.com 3
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CONTENTS
Features Finance
8 Q&A: Who’s The Boss? Richard Bodin takes low cost airline fastjet on a pan-African quest
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Calculated risks contribute to entrepreneurial success
22
TOP 10
African Women Business Leaders
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16 Marketing
Technology
Lessons for SMES as they embrace the BYOD Revolution
IBM’s Research Lab Rises to Meet Africa’s Challenges 5
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CONTENTS
56 SENET
94 66
Kirloskar Oil Engines Limited
Metorex
Company Profiles
Lumotech South Africa
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MINING 56 SENET 66 Metorex 94 Kirloskar Oil Engines Limited
Mota-Engil
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MANUFACTURING 108 Lumotech South Africa
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Medtech Ethiopia
CONSTRUCTION 116 Mota-Engil
HEALTHCARE 124 Medtech Ethiopia 7
Q & A : W H O ’ S T HE B O SS ?
Richard Bodin takes low cost airline fastjet on a pan-African quest 8
July 2014
The Chief Commercial Officer of one of the continent’s fastest growing low-cost airlines reveals his journey in getting the start-up airline off the runway E d i t e d b y: M a t t h e w S t a f f
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Q & A : W H O ’ S T HE B O SS ? Richard Bodin is Chief Commercial Officer (CCO) a low-cost panAfrican airline, fastjet. Born in Exeter in the UK, Bodin assumed his current role when the airline launched operations domestically in Tanzania in November 2012, and has helped grow the fastjet to where it is today. ABR: Where were you educated and what is your career background up to your current position? RB: I was schooled in the UK but my 10 years working overseas was my real education – understanding how business works, the importance of cultural influence on performance and what success really looks like. I also completed a full time MBA in a top UK business school. This proved to be an exhilarating experience, one that allowed me to springboard into the aviation world. After working for a major Tour
Operator in various destinations across the world (Barbados, Bulgaria, Spain, France, Malta etc.) and after completing my MBA, I was lucky enough to join easyJet at the very beginning. This start up airline was at the very front of the Low Cost Carrier revolution in Europe and my role, in charge of procurement, allowed me un-paralled access to all areas of the business. This proved to be an excellent grounding. Since easyJet, I have been involved in another airline start up (Jet2.com), launched and run a few UK based tour operators and Online travel agents. I started exploring the possibilities surrounding the launch of fastjet in 2011. ABR: Who in your career has been your biggest influence? RB: I have been lucky enough to work for some excellent people; some who have taken the time to mentor me which helped me develop but in fairness, it’s probably my family that
“The diversity of my role, along with working with some of the brightest people in the business, really motivates me. I also never tire of the travel industry” 10
September 2014
R ichard B odin
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Q & A : W H O ’ S T HE B O SS ?
“It’s h
has given me the license and freedom to explore new boundaries and pursuits. ABR: What does success mean to you? RB: The safety and security of my family, a satisfying role and people benefiting from my labours. ABR: What motivates you? RB: I enjoy a broad role that allows inputs from all directions. As CCO 12
September 2014
at fastjet I get involved in a variety of activities - a working day can see me signing off the next marketing campaign, discussing network development strategies, liaising with staff about a variety of things or meeting investors - or none of the above! The diversity of my role, along with working with some of the brightest people in the business, really motivates me. I also never tire of the travel industry.
R ichard B odin
hundreds of times safer to fly than cross the road!�
ABR: If you were recommending fastjet to someone who has never used the airline before, what would you say? RB: Yes, they really are that good! ABR: fastjet’s arrival in Africa has been successful so far, but what do you think have been the main ingredients for that success? RB: I think there are three key elements:
1. fastjet fly to European standards of safety, reliability and on-time performance. Operating modern Airbus jets (A319s) to high standards we [fastjet] have fundamentally improved the standards of air travel in East and to Southern Africa. 2. fastjet offers market stimulating fares (as low as $20 plus tax) to offer a real alternative to other modes of transport such as buses etc. We know that a huge amount of our domestic passengers are new 13
Q & A : W H O ’ S T HE B O SS ? to aviation (38 percent) – it’s our low fares that have given them the opportunity to fly. 3. We love our passengers! We give our customers un-equaled access to us via Facebook, Twitter, Instagram and various blogs and forums. This gives us amazing feedback on our service and allows us to take the opinions of our customers into consideration when launching new routes and services. ABR: What is the best piece of advice you would give a nervous, first-time flyer? RB: It’s hundreds of times safer to fly than cross the road! ABR: What was the worst business advice you ever received? RB: I have been to many conferences and meetings where so-called experts took pleasure in telling me that the low cost airline model won’t work in their particular region. I think it’s fair to say that they have been proved wrong in all corners of the world and now the revolution is coming to Africa with fastjet. Africans do recognise the value of 14
September 2014
R ichard B odin
safety, do have an appetite to travel, will book early if they trust the brand, will turn up on time and will seek out the best value suppliers! ABR: What do you do in your free time? RB: Because I travel so much, I really value the time with my family. However a few hours spent on my motorcycle really clears the mind and brings me great enjoyment.
ABR: What are your hopes and aspirations for fastjet’s panAfrican quest? RB: I was fortunate enough to meet President Mills of Ghana and share with him our plans for fastjet. He declared that if we were successful we would democratise air travel across Africa. I can’t think of a better goal for us to aim for.
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M a r k e ti n g
Lessons for SMEs as they embrace the BYOD Revolution Manoj Bhoola of SAP Africa provides a blueprint for BYOD success amidst the modern minefield of marketing and IT w r i t t e n b y: M a n o j B h o o l a , D i r e c t o r D &T a n d M o b i l i t y a t S A P A f r i c a
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July 2014
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M A R KE T I NG Just like mobile analytics, big data, the internet, and social networks changed the way companies do business, so the adoption of mobile devices has become a catalyst for change in corporations and small-tomedium-enterprises (SMEs). Smartphones and tablets are increasingly being used for more than just leisure activities, as mobile functionality has become a key driver for employees to start using their personal devices to access work files and programs from home or on the road. Data analytics firm, Strategy Analytics predicts that global smartphones purchased for business use by enterprises and individual users for business purposes increased by 24 percent year-on-year during the first quarter of 2014. Enterprise mobility boosts employee productivity and also assists in bringing down capital expenditure because companies are able to leverage devices that employees have already acquired. The latter also has the added benefit of workers taking better care of said devices since they bought them themselves. There is a downside to this uptake 18
September 2014
in mobile connectivity at the office, as having a lot more devices gaining access to sensitive and sometimes even highly classified corporate data increases security risks for threats such as espionage, data theft and device hacking. In case of the latter, IT needs to
shor t headline
assume complete control over the mobile devices and applications installed on them. For this to happen, there needs to be a Bring Your Own Device (BYOD) policy in place and a secure mobile device management platform that includes mobile device management, mobile app security
Increase in Smar tphone use for business
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M A R KE T I NG and mobile content management capabilities. With a comprehensive device management solution, businesses can manage a wide range of mobile devices in the cloud or on premise, quickly detect compromised mobile devices, help ensure compliance with security policies, and manage devices throughout their life cycle. In addition, mobile content management allows users to securely
Employees need the flexibility to choose any device and mobile operating system that they feel comfortable with
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September 2014
share files, view mobile documents, present and collaborate with co-workers on corporate content. Key considerations for a successful BYOD implementation include: • Companies need to be able to manage data and not mobile devices, while employees need the flexibility to choose any device and mobile operating system (iOS, Android, Windows Phone, BlackBerry).
lessons for S M E s embracing t he B Y O D R e v olu t ion
• Organisations must reduce the impact of BYOD on its corporate security and risk to legal, HR, or regulatory issues such as being compliant with the Protection of Personal Information (POPI) bill. • Ideally, the secure mobile platform needs to be able to separate personal data from corporate data. This will make it easy to securely wipe the personal devices of employees who leave the company, without the user’s personal info being affected. • Businesses need to reduce the corporate liability associated with potential private-data impact. • The BYOD policy must improve the ability of the company to fulfil any legal obligations that are associated with e-discovery requests in lawsuits or criminal procedures. • Companies must ensure full security when it comes to corporate data, which needs to be encrypted and password-protected to ensure that only employees have access to the data, especially in situations where multiple users have access to an employee’s personal device. • Businesses need to be able to protect corporate data in the event
of a device being lost, stolen, or used by non-employees. The modern office faces an unprecedented level of IT security risks and requires additional data protection as it embraces a BYOD policy. Businesses should not have to worry about whether valuable data may fall into the wrong hands because there are solutions that assist them in alleviating those concerns.
Manoj Bhoola biography Manoj Bhoola has more than 25 years of experience in the IT industry with extensive knowledge in software, hardware, consulting and networking. His experience also includes time as a lecturer, a business group lead and being the MD of a multinational company. Manoj has a passion for simplifying complexity and driving excellence in execution. He has worked for multinationals like Novell, Microsoft, HP, Avanade and more recently Samsung Africa. Manoj has worked both in South Africa, and in the Africa region driving go-to market strategies and enterprise sales.
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t e c h n olo g y
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September 2014
IBM’s Research Lab Rises to Meet Africa’s Challenges One of the world’s leading technology solutions providers famed for its research breakthroughs is now focused on solving some of the continent’s many economic and social problems
w r i t t e n b y: S h e r ee H a n n a
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T e c h n olo g y Scientists at IBM’s Africa Research Lab are on a mission to rise to the unique challenges that the continent has and find smart solutions that will ultimately benefit the population in some of its most critical areas such as healthcare and education. In August 2012, IBM, a world leader in providing technology solutions, officially opened its 12th global research laboratory at the Catholic University of East Africa in Nairobi, Kenya. An old library building at the host university was assumed by IBM which invested in refurbishing the premises and equipping it with its state-ofthe-art technology. It is now home to some of the best scientific brains in the world including 25 research staff, 21 of which have either PHDs or Masters’ degrees, and who have come from globallyrecognised academic institutions from around the world including Oxford and Cambridge in the UK and Harvard and Stanford in the USA. At the helm is Chief Scientist Osamuyimen Stewart, fondly known as Uyi, whose sheer passion and enthusiasm for the work now being 24
September 2014
Jayant Taneja, (Scientist) IBM Research Africa
carried out at the laboratory could probably provide enough energy to light up the whole of Nairobi. A better future Aside from the fact that the research work being undertaken is to ultimately provide IBM with new applications
shor t headline
for sale, the areas in which it is working the hardest are ultimately aimed at creating better futures for the continent’s inhabitants from a standpoint of improving economies to providing better healthcare and education for the millions in need in Africa.
Stewart summed up the mission: “It is to leverage science and technology to develop commercially viable innovation that will impact lives of more than a billion people on the continent of Africa.� For IBM, Africa was the last cog in its research wheel. It had already 25
T e c h n olo g y established its network of research labs strategically across the world but the vast continent had been left out because for many years education standards were not of a comparable level. Stewart explained: “The way we have set up labs traditionally has been to collaborate with a top-rate university and the reason for that is simple: so that the university can provide the lab with a steady stream of research talent. “In the past 30 or 40 years Africa has taken a downward turn in its educational life and there have only been a few in South Africa who have
‘It (IBMRL) is now home to some of the best scientific brains in the world including 25 research staff, 21 of which have either PHDs or Masters’ degrees’
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September 2014
turned up at the bottom of global top 100 lists.” Challenging circumstances A couple of significant things conspired to change the prospects for an IBM lab in Africa. The first was the establishment of IBM’s Smarter Planet initiative and the second was the realisation that the many challenges Africa presents were in fact an opportunity for research. “IBM’s Senior Vice President and Director of IBM Research, Dr John Kelly, was quoted as saying that we need to make the world our lab and when we looked around we saw there
B uilding D igi t al S olu t ions
was a gap and that gap was Africa,” said Stewart. “Africa more than compensates for its deficits in universities by offering us the possibility of doing first-class research because everywhere you look there are challenges.” The African scientists are now conducting research in five main areas: education, healthcare, human mobility, financial inclusion and utilities, which involve smarter management of the environment in three main areas; energy, water and waste management. The research work includes the development of cognitive computing Nathan Wangusi, Ph.D, IBM Research Engineer
technologies that can be applied to address all of the above issues and work on some of these projects commenced even before the lab was officially opened. Utilising information One example is traffic congestion where the scientists have been leveraging IBM’s Watson (Big Data) technologies to crunch information about the traffic situation in Nairobi. “A logistics business needs to be able to give an estimated time of arrival of when a delivery is going to be made to its customers, but if it can’t because of the traffic issues that can flare up in the city centre then we need to be able to utilise all the information that will help people make smarter decisions. “For instance if you knew that there was a traffic backlog around the airport you might decide to carry on working for a couple of hours at the office before attempting to make that journey,” explained Stewart. “What we are building up is made of two levels. At the ground level is a data hub that acquires data from all sources such as the ministry, CCTV images, sensors on the ground, data from Telco towers and then we can leverage 27
T e c h n olo g y
Dr. Osamuyimen “Uyi” Stewart, (Chief Scientist) and Dr. Kamal Bhattacharya (Director) in the lobby of IBM Research - Africa, Nairobi, Kenya
‘We want to help to create a new class of healthcare workers in Africa and therefore open up the services to those millions who do not have access to healthcare’ Watson technology to generate new models about traffic pattern, pedestrian flow etc to an application level that people can use in whatever way they want.” Within healthcare, where there is a dearth of skilled medical professionals across Sub-Saharan Africa, the researchers are looking at developing 28
September 2014
applications that will assist the education of the unskilled workers at health centres, such as clinical officers. “We want to help to create a new class of healthcare workers in Africa and therefore open up the services to those millions who do not have access to healthcare,” said Stewart.
B uilding D igi t al S olu t ions
Pan-African goals IBM is currently seeking to partner with the many utility stakeholders in order to provide better solutions for the supply of safe drinking water, power and waste management services, where currently there are many problems to address. Many Africans are currently digitally invisible which from an economic point of view means it is difficult to evaluate such things as credit worthiness. “We are trying to solve this problem too and if we can crack it then it opens up an economic and commercial gold mine to the whole community, and in particular those in rural communities who at present cannot get loans to help their businesses because there is no way of measuring their credit worthiness,” said Stewart. The Lab is working hard to bring about change and within the next five years or so it is aiming to expand across the continent and have all the work currently being carried out in Kenya replicated across all regions. “Our vision is to deliver our research across the continent, to become a truly pan African research facility and I believe we will achieve this,” said Stewart.
IBM Research Tunes-In to Africa’s Challenges & Opportunities
What happens when you ask an entire continent to illustrate its challenges and opportunities in photos? That’s exactly what IBM’s newest research lab wanted to find out. IBM Research – Africa, which opened its doors last November, was created with an ambitious mission: to conduct applied and far-reaching exploratory research into the grand challenges of the African continent by delivering commercially-viable innovations that impact people’s lives. Though it opened with clear objectives and an understanding of many of the infrastructural concerns across the continent, the Lab wanted a more personal understanding of the challenges. The following pages illustrate some of the potential challenges facing the African continent. >
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‘Bible Study’ by Kevin Amunze, Kenya Because of its low cost and accessibility, radio is still the biggest media in Africa and in some rural areas it plays a vital role in education.
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E mbracing e - learning
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‘The Sky Bridge’ by Nathan Stasin (Instagram: asterixorobelix), South Africa Huge amounts of money are being pumped into Africa’s infrastructure build out - a record amount of US$50 billion was invested in 2012. Photo: a pedestrian bridge in Cape Town.
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E mbracing e - learning
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E mbracing e - learning
‘Commuter Train’ by Thomas Mukoya, Kenya Passengers ride an overloaded commuter train at the Makadara station in Kenya’s capital Nairobi, January 5, 2010. The larger than normal numbers were due to a strike by matatu (minibus) drivers and conductors on allegations of extortion and corruption by police.
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E mbracing e - learning
‘Launch of Measles Vaccine’ by Stephen Mudiari, Kenya Two-years old Doris Nyambura cries as she receives a dose of measles vaccination during the launching of a vaccination exercise in Rongai, Nairobi.
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‘Boda Boda’ by Frank Odwesso, Kenya City Systems: “The ‘Boda Bodas’ (bicycle taxis) have always defined the towns of Western Kenya and Nyanza. Public transport systems are often not reliable, so locals have devised new modes of transport using bicycles, which are faster and easy to maneuver”
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E mbracing e - learning
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FINANCE
Calculated risks contribute to entrepreneurial success Christo Botes of Sanlam, Business Partners Entrepreneur of the Year, provides four tips on how entrepreneurs can manage the risks involved in getting a business off the ground W R I T T E N B Y: S H E R E E H A N N A
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F I NANCE By nature, entrepreneurs are to a degree risk takers, as it is likely that they have taken a big risk by leaving a corporate environment and a steady salary to start their own business. The reality however is that many entrepreneurs are more cautious and risk-averse than what is perceived to be. Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, says that the fear of failure is a common occurrence in any entrepreneur’s journey, and that this
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fear can discourage business owners from taking the essential, calculated risks needed to further develop and expand their business. “Although the ability to take risks is an essential trait in an entrepreneur, not many entrepreneurs possess the ability to do so and instead view risk negatively, associating it with possible danger and loss,” he said. “However, in the process of doing so, they can also sabotage their own success by falling into a comfort zone, ultimately prioritising their fear of failure above the search for success.
C alcula t ed risks and en t repreneurial success
‘Having the ability to spot an opportunity, investigate the options and then take the calculated risk is what sets entrepreneurs apart from others that may take reckless risks’ “This fear can inhibit a business from remaining innovative, which is necessary in an ever-changing economy faced with differentiating consumer demands.” Botes says that calculated risk is an integral part of a business, and entrepreneurs should look at it as an opportunity and challenge to overcome the unknown and, in the process, grow their business. He added: “Having the ability to spot an opportunity, investigate the options and then take the calculated risk is what sets entrepreneurs apart from others that may take reckless risks. “Entrepreneurs who are able to take calculated risks and manage them, are confidently able to find a balance between maintaining a need for security, while making the necessary decisions or investments needed for the future growth and success of their business. This equilibrium is a crucial
trait that a business owner should posess.” Botes offers the following practical tips on how entrepreneurs can manage their risks: Know your customer base Interact regularly with your customers and employees and make a concerted effort to stay up to date with new technologies that may benefit, or hinder, your business. If you are aware of what your market requirements are ahead of time, you can minimise your chances of loss. For example, this type of research will enable you to avoid costly mistakes, such as entering a new product that wouldn’t appeal to your customer base. Embrace risk by establishing short term goals Get comfortable with the idea of risk, 43
F I NANCE
‘If business decisions were solely based on the amount of risks associated, entrepreneurs would probably never commit themselves to a business decision ’
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C alcula t ed risks and en t repreneurial success
as it is part of your daily business operations and will play a major role in determining your success as an entrepreneur. Start by setting achievable goals that you will be able to accomplish in a short period of time. Achieving these short term goals will give you the courage and experience to avoid decisions which carry greater risk for your business later on, without being discouraged by the fear of potential losses. Know your market environment Information and research are the key ingredients to increasing your risk tolerance. The best way to manage your risk is to create a deep understanding of the market the business is operating in. Being familiar with the opportunities and risks in your marketplace will give you an advantage over your competitors, and enable you to distinguish more easily between risk and danger.
Seek advice from fellow entrepreneurs Becoming an entrepreneur is risky no matter how you look at it. However, by seeking mentorship from seasoned entrepreneurs you will empower yourself to unleash your own, and your business’, full potential. In short, the more you know, the less you fear. If you’re having difficulty accomplishing your goals, it could be beneficial to brainstorm ways to manage your risks by seeking mentors that have the information or skill set that you require for the issue at hand. “The secret to entrepreneurial success is to aim for the maximum reward for the lowest risk possible, but this is not always possible in a competitive business environment,” Botes concluded. “If business decisions were solely based on the amount of risks associated, entrepreneurs would probably never commit themselves to a business decision. “To be successful, an entrepreneur must therefore have the ability to calculate and consider the risk and then commit themselves to their decision to ensure results.” 45
TOP 10
Top10 African Women
Business Leaders The continent is awash with go-getting entrepreneurs of the female kind and it is a hard choice when it comes to choosing the best, however, here is the pick of our favourite girls who are doing it for themselves W r i t t e n b y: S h e r ee H a n n a
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Wendy Ackerman
Wendy Ackerman is a Non-executive Director of the leading South African grocery chain Pick ‘n’ Pay. She and her husband, Raymond Ackerman, run the Ackerman Family Trust which owns about 50 percent of the $3 billion retailer. She was appointed as a director in 1981 and was responsible for Employee Liaison, Staff Benefits and Welfare.
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Vera Songwe
Vera Songwe is a Cameroonian who is the World Bank’s Country Director for Senegal, Cape Verde, The Gambia, Guinea Bissau and Mauritiana, based in Dakar, Senegal. She joined the bank in 1998 as a young professional in the East Asia and Pacific Region and has worked in several countries and regions including Cambodia, Morocco and Tunisia. 48
September 2014
A frican W omen B usiness L eaders
07
Sibongile Sambo
Sibongile Sambo is a highly educated entrepreneur having several degrees under her belt and is the founder and Managing Director of SRS Aviation, the first 100 percent black femaleowned aviation company which offers clients professional and personalised flight options to destinations around the world. She previously gained experience working for the likes of Telkom, City Power and De Beers.
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Hadeel Ibrahim
Hadeel Ibrahim is the founding Executive Director of the Mo Ibrahim foundation, established in 2006 to support great African leadership. She is also a member of the Boards of the Mary Robinson Foundation – Climate Justice, Carter Center UK, Refugees International and the Institute of African Leadership for Sustainable Development in Tanzania. 49
top 1 0
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Bridgette Radebe
Bridgette Radebe has made it big in mining and as the Executive Chairperson of Mmakau Mining. She was involved in the South African Mineral & Petroleum Resources Development Act and the Mining Charter. She started Mmakau Mining, which initiates explorations and helps to produce platinum, gold and chrome.
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Monica Musonda
Monica Musonda is a dual qualified English solicitor and Zambian advocate who achieved her entrepreneurial vision of bringing affordable nutrition to the southern African market through her food processing company, Java Foods, of which she is both founder and CEO. She previously worked for Africa’s richest man, Aliko Dangote, of Dangote Industries ltd.
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A frican W omen B usiness L eaders
03
Eva Muraya
Eva Muraya is Chief Executive Officer and founder of Brand Strategy and Design Ltd. She has won many accolades and awards for her brand building and advertising skills which have benefited many big companies including FedEx, Xerox and Equatorial Commercial Bank. This go-getter believes you don’t get any results without hard work.
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Rapelang Rabana
Rapelang Rabana is a young, hot-shot, South African entrepreneur who knew from the start exactly what she wanted. Shortly after finishing her studies at the University of Cape Town and at the tender age of just 23, she co-founded Yeigo Communications, which became one of the first companies in the world to offer VoIP (Voice over Internet Protocol) services for mobile phones. 51
A frican W omen B usiness L eaders
02
Hajia Bola Shagaya
Hajia Bola Shagaya is Nigeria’s richest businesswoman and the entrepreneur has secured interests in oil, banking, communications and photography, as well as a
huge investment in real estate spanning several major cities. She is Managing Director of Practoil Ltd, one of Nigeria’s largest importers and distributors of base oil and was on the board of Intercity Bank (now Unity Bank Plc) for more than eight years. 53
top 1 0
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Isabel dos Santos
Isabel dos Santos is an astute businesswoman, who holds the title of being Africa’s first female billionaire as well as being the daughter of Angolan President Jose Eduardo Dos Santos. Still only in her early forties, Dos Santos has always shown an entrepreneurial flair having set up her own restaurant called Miami Beach at the tender age of 24. She holds an engineering degree after studying at King’s College, London, Unitel is one of Angola’s largest mobile phone networks
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and swiftly made her mark on the business world by divesting her interests in a number of sectors including banking, TV and media businesses. Her assets include a 19.5 percent share of Banco BPI, one of Portugal’s largest publicly traded banks worth an estimated $465million and she also has substantial shares in Portugal’s biggest cable TV company ZON worth about $385 million. She also owns a 25 percent stake in one of Angola’s largest mobile phone networks, Unitel.
A frican W omen B usiness L eaders
Isabel dos Santos is considered by Forbes to be the richest woman in Africa and the most powerful woman in her country
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SENET Excels in Africa and Beyond with World-Class Projects and Technology Written by: Joel Levy Produced by: Anthony Munatswa
d
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Senet
The South African mining project management and engineering specialist has won plaudits for its quality and custom engineered solutions, including its ability to carry out work in some of the most remote and infrastructurelight locations
Solvent Extraction
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September 2014
M
inerals Processing, Project Management and Engineering specialist SENET has earned an outstanding reputation from the industry for its experience in operating throughout Africa and beyond. For 25 years, it has provided detailed, multidiscipline engineering, procurement, logistics management and construction services to the mining, mineral processing, infrastructure and materials handling industries worldwide. The latest example sees SENET commencing engineering work on the Yanfolila processing plant and associated infrastructure in southern Mali, after winning a contract with Hummingbird Resources, which acquired Gold Fields’ interests in April this year. Hummingbird Chief Executive Officer (CEO), Dan Betts pointed to SENET’s “extensive experience in West Africa, as well as over three years’ experience working on the Yanfolila project (under Gold Fields)” as the deciding factors in his company’s choice. SENET’s success in this region, and indeed the entire continent, can be attributed to its wide-ranging services and the quality, bespoke solutions it delivers to clients. In an industry still feeling the impact of the global downturn, it is important to excel, and while SENET remains a smaller proposition to the project-industry giants, General Manager of Commercial, Darren Naylor noted that SENET’s customer-focused approach certainly
M ining
SENET offices
differentiates the company and enhances the quality of the services that it provides. The smaller-scale nature of the operation affords the company a greater intimacy with its clients, and Naylor sees this as one of the company’s key advantages over some of its rivals. He said: “Larger companies have a tendency w w w. s e n e t . c o . z a
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Low Voltage Switchboards(Pty)Ltd is a large independent South African switchgear-assembly manufacturer, supplying mining and heavy industry, predominantly in Africa, but as far afield as Turkey and Russia.
SPECIALISING IN THE MANUFACTURE & REPAIR OF WOODEN PALLETS, DECKS, BOXES & CRATES. TIMBER AGENTS. ISPM15 REGISTERED
T: +27 11 827 4442/5 • F: +27 11 827 4818
alanlee@global.co.za
Filtration & Separation Solutions Tailored Process Equipment Pilot Plant Equipment Laboratory Testwork Drawing & Design Office Research & Development Quality Guaranteed Aftersales Support Maintenance & Optimisation Reference installations in over 30 countries on 5 continents www.roytecsa.com
www.lvsb.co.za
Senet to apply a template approach to their clients’ projects, while SENET can offer a unique service covering the entire project lifecycle, with a tailor-made solutions approach, specific to the particular requirements of the customer.” Expanded services SENET has had experience in its DNA since its founding in 1989 by a group of engineers and project managers with many years’ practice in Design, Project & Construction Management of Turnkey Materials Handling and Minerals Process Projects. Having initially focused its offering on materials handling systems and gold processing facilities, SENET has over the years substantially grown its capabilities to include process plant designs including Copper, Cobalt, Uranium, Coal and Iron Ore. A “saturated” domestic mining market led the Greenstone-based company to spread its wings from South Africa into the rest of the continent, and it now has extensive project and construction experience throughout Africa, including in some of the most remote and infrastructure-light countries. With the Copper sector performing strongly in the DRC, it is a location that is becoming increasingly important for SENET, which continues to expand these operations into neighbouring Tanzania and Zambia. Some of SENET’s larger African projects
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“Larger companies have a tendency to apply a template approach to their clients’ projects, while SENET can offer a unique service covering the entire project lifecycle, with a tailormade solutions approach, specific to the particular requirements of the customer” – Darren Naylor, General Manager of Commercial
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Senet
Key Personnel
Hugo Swart Managing Director
Darren Naylor General Manager of Commercial
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include the Mutanda Copper-Cobalt project in the DRC, from 2009 – 2013, which through four phases of development saw the capacity of the plant expand to 200ktpa of LME Grade A Copper cathode; and the Bisha Gold-CopperZinc project in Eritrea, from 2010 – 2013, which also developed through multiple phases of 2Mtpa CIL Gold and 2.4Mtpa of Copper concentrate. Further afield SENET has successfully delivered projects in North, South and Central America, Asia and the Middle-East. African operations It is however the African continent that has provided a majority of SENET’s experience, and its ability to successfully execute projects in remote African locations has been possible as a result of the company leveraging its global experience in cross-border logistics, freighting and construction activities. The company boasts an array of technical specialists and consultants with specialised knowledge in a broad spectrum of process plant designs and materials handling systems design. SENET’s procurement expertise along with its well-developed supplier network allows for local and international sourcing, which when coupled with optimised engineering designs, has enabled the company to be at the forefront of low Capex projects. SENET also boasts multidisciplinary erection expertise, with numerous project
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Electrowinning Copper Cathodes
installations having been executed over the years: a function necessitated by the challenges of the African continent. SENET is also an innovator and is considered to be a leader in Heap Leach technology as well as in Copper Solvent Extraction and Electrowinning process design and installation
Solvent Extraction
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Senet
“I believe that any company needs to grow to stay relevant, because without growth, you will eventually die”
(SX EW). The company developed a range of proprietary equipment for Heap Leach Stacking and Agglomeration Equipment in the early 1990s, which has enjoyed global success and continues to retain its leading position, with technically robust and economically attractive options. SENET’s SX EW experience leverages patented technology to offer the lowest cost design worldwide, with multiple installations and proven capability.
– Hugo Swart, Managing Director
Long-termism Despite the financial downturn in 2008,
Electrowinning house
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SENET’s workload continued to increase, and has since reflected sustained growth. Staff numbers are fluid depending on the ongoing operations, but the total currently stands at 320, comprising a skilled workforce which the company complements with local contractors to make use of their specific regional knowledge. Many of the permanent workforce have been with the company since the beginning, and the retention of skilled staff has been fostered by a positive culture and opportunities to progress in the company. “If somebody wishes to progress in the company then the opportunities are certainly there,” said Managing Director, Hugo Swart. SENET understands that its success is largely attributable to its employees, supplier networks and long-standing clients and will continue its expansion and growth opportunities into new markets by continuing to nurture these relationships. Sustainable growth SENET’s management remain focused and are optimistic about the long term sustainability of the company. Now in its 25th year, SENET is well positioned to continue its growth path and plans to do so in a controlled and sustainable manner, retaining the differentiators that have won it such respect to-date. “I believe that any company needs to grow to stay relevant, because without growth, you will eventually die,” Swart concluded.
Company Information Industry
Mining headquarters
Modderfontein, South Africa founded
1989 employees
320 revenue
Undisclosed products/ services
Engineering / Mineral Processing
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Metorex’s
Multi-Million Dollar Expansion Plan to Increase Copper Production Written by Sheree Hanna Produced by Anthony Munatswa
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The mining company based in South Africa with assets in Zambia and the Democratic Republic of Congo is buoyed up for growth following take-over by Chinabased Jinchuan
Workers at the Chibuluma Mine which produces approximately 19,000 tons of Copper in the form of concentrate 68
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J
ohannesburg-based mining company Metorex has launched a multi-million dollar investment programme with an ambitious goal of reaching a target of producing 250,000 tonnes of copper a year in 10 years’ time. Following its takeover by Chinese mining company Jinchuan in 2012, this established midtier mining group, which is a US$400 plus million revenue business with assets in both Zambia and the Democratic Republic of Congo (DRC), is very much on the expansion path. The company has immediate projects in hand which are set to take the current annual copper production rate of 55,000 tonnes a year to 80,000 tonnes in the next 18 months and then exceed 100,000 tonnes within five years. These projects are coupled with a strategic plan aimed at creating greater efficiencies within the company’s supply chain which is centred at its South African headquarters. Mike Benfield, Chief Financial Officer, said: “Our target is that in 10 years’ time we will be producing 250,000 tonnes of copper a year. “That is a lofty target that we have set ourselves but we believe we will achieve this through a combination of developing the projects and deposits that we have in our current portfolio and by acquisition with the backing of our Chinese parent company, Jinchuan Group International Resources, which is listed on the Hong Kong Stock Exchange.”
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Workers inspecting samples at the Chibuluma Mine
Existing operations Metorex owns two operating mines; Chibuluma in Zambia, which began production in 1955 and currently produces around 18,000 tonnes of copper in concentrate a year, and Ruashi, a copper and cobalt mine in Katanga province in the DRC. Chibuluma was acquired by Metorex in 1997 through a Government privatisation programme and is often referred to as Zambia’s model mine. The copper concentrate from the mine is sold to Chambishi Copper Smelter in Zambia where it is converted into copper blister and moved into the market. Benfield said: “It is a mature mine nearing the end of its life and as a consequence is one of very few mines in Zambia which is tax paying. “We have discovered a smaller satellite deposit
The Chibuluma Mine currently extracts ore from an underground operation feeding an efficient well run concentrator
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ThyssenKrupp Resource Technologies
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about a kilometre and a half away from Chibuluma and we are about to open that up so we can effectively extend the life of Chibuluma for another six or seven years.� Some 400 people are employed at Chibuluma and Metorex is keen to hang onto its operations in Zambia, consequently the company will invest some $24 million on the decline development required to access the recently-discovered ore body. “Extending our operation in Chibuluma will give us more time to continue our exploration efforts in the area. We have an experienced staff compliment, who are performing well and we very much want to keep them within the Group and maintain our operational presence in Zambia.�
Chibuluma Mine
Workers at the Chibuluma Mine
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Chibuluma mine
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Copper and Cobalt The Ruashi mine employs 2,500 people and currently produces 38,000 tonnes of copper cathode and 4,400 tonnes of cobalt a year. “There are plans to take the copper production up to between 45,000 and 50,000 tonnes a year as we de-bottle neck the process plant,” explained Benfield. Over and above the two existing operating mines, Metorex has three major projects in the pipeline including its new Kinsenda mine where it has embarked on an investment of $322 million to develop the mine and build a process plant to bring into operation in late 2015. The Kinsenda Project currently ranks as one of the world’s highest grade copper deposits with
Ore is conveyored for inspection
Key Personnel
Michael Benfield BCom, BAcc, CA(SA)
Chief Financial Officer Mike joined Metorex on June 1, 2012 having previously been the CFO of Bateman Engineering NV since May 2010. He was previously the CFO of the Mineral Recovery Division of Bateman, a position he held for over two years. During this period he became very involved in the operations of the Group’s mineral processing plants. He has held senior financial management positions with Ster-Kinekor, Investec Bank and Super Group.
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BRAS SECURITY is a Private, Limited Company dealing in Security in the DRCongo, Zambia and Tanzania. The Company is Congolese/ Belgium and started it’s first roots in 2002. The staff is composed with multicultural personnel bringing together Zimbabweans, Congolese, Belgians. The guards are recruited according to the official standards and undergo theoretical and practical training by skilled, experienced trainers. BRAS SECURITY also specializes in the escorting of minerals to South Africa, Dar es Salaam, Mozambique, NamibiÍ, Zambia.
BRAS guards are posted in plants, mining sites, residences and any other properties. Several patrols are carried out 24h a day, 7 days a week by our armed security team. www.brassecurity.com
YOUR SAFETY...OUR BUSINESS
supplier profile
Bras Security
Established: Started in 2002 in Lubumbashi, the BRAS Security Services’s House is a brillant result of a equitable collaboration between a Congolese and Belgian partners. We are currently very present in the copper Capital but also in Kolwezi, Likasi, Lonshi, Sampwe, Kasenga and in Zambian territory throughout its railways and roads Escort Service. Industry: Security Services: • Create, control and supervise an evacuation plan as well as developing the sit emergency procedures. • Optimise the management of crisis situation in order to minimise their impact on the company’s capital, its industrial activity and its human resources. • Guarding of real estate, industrial, mining and private sites. • Railways and road escorts from DRC to Zambia, Chirundu, Victoria Falls, Livingstone, just to Beithbridge (South Africa). • DOGS Section. • Alarm quick response (panic button), CCTV, Access Control, Tracking System, Radio Communication. Management: Ngoy Kazembe - General Manager Website: www.brassecurity.com
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declared mineral resources of 20.7 million tonnes at a grade of 5.6 percent copper. Kinsenda is situated within the DRC near the border town of Kasumbalesa and was purchased by Metorex in the mid-2000s. At the time it was taken over, it was a flooded mine, previously run by a Japanese Mining consortium and then by the Congolese government, and Metorex ultimately gained control with the intention of opening and mining it. With the purchase came 400 employees and the challenge of dewatering the mine before any new development could take place. “We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body, which is our current focus, but over time we will move into the eastern ore body, the previous operators having mined the central areas” said Benfield. Employment opportunities Construction work on the project began in April 2013 and it is anticipated copper production will begin in late 2015, with expected production levels in the order of 25,000-26,000 tonnes of copper concentrate a year. Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda. The projects’ environmental impact assessment and associated management plans
‘We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body’
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60 years of experience at your service
Your Logistics Partner Comexas Afrique is your key partner in logistics, warehousing, customs clearing and shipping representation in the Dem. Rep. of Congo.
www.comexas.cd
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were submitted to DRC authorities in 2011 and all approvals required by the DRC Mining Law have been obtained. Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi. The project area contains at least two known mineralised zones, one of which known as Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007. Following the initial discovery of the high grade mineralised zone, the property has been extensively drilled and has declared a mineral resource at 31.7 million tonnes at a grade of 2.8 percent copper and 0.9 percent cobalt.
supplier profile
‘Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda’
Comexas
Comexas Afrique has been active without interruption in Democratic Republic of Congo since 1953 in the area of logistics, customs clearing and air/road/maritim transport for both import and export. Comexas Afrique is also ship agent for several maritim commissioning. Key words of Comexas Afrique are : « PROFESSIONNALISM - PRECISION - EFFICIENCY - FLEXIBILITY » Website: www.comexas.cd
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YOUR NEEDS ARE OUR PRIORITY Group SIL is a registered petroleum trading company based in Lubumbashi, DRC and is involved in the importation, transportation, storage and distribution of petroleum products to mines, commercial customers and retail sites.
For enquiries please contact: Mutombo Irung Stephane : +243 81 333 51 52 • stephane.irung@groupsil.cd Kyoni Guy : +243 97 001 17 22 • guy.kyoni@groupsil.cd
mining@nucleussc.co.za Tel: +27 (0) 11 783 3290 Fax: +27 (0) 11 783 1310
Crafting and Managing Intelligent Supply Chain Solutions Road– normal / abnormal • Seafreight • Airfreight – schedule / charter • Rail • Freight Forwarding • Project Management • Procurement • Crating • Full management of pre shipment and export documents • Full cross docking operation: • South Africa - Covered 5,800m2 • Zambia – Covered 1,800m2 • DRC - Covered 2,000m2
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Challenges ahead Benfield said: “It is a very high grade copper cobalt deposit. In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that. “This will be an underground mine, but the challenge for us will be accessing the ore body, which currently is estimated to take about four and a half years to get to. “We are trying to work out a way of getting to it faster so that it will improve the returns and valuation of the mine, ultimately we should be in production in about five years’ time.” Finally, Metorex’s Lubembe project, which is located near to the Kinsenda mine, is a much larger deposit, but of lower grade ore. A scoping study completed in early 2012
supplier profile
‘Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi’
Metorex Nucleus
Main text goes hereMining and can be a block of copy - if there desire to Services: Nucleus Logistics provides high levelsis ofno service indent theseeking copy with headings.supply Main text goes here and can be a block to clients world-class chain management solutions. of copy - if there is nointegrates desire to indent the copy with headings. Essentially, Nucleus key logistical processes, such as transport, project management procurement, If you needwarehousing, to create a new paragraph then justand hit return and a to reduce overall separating rulelogistics appearscosts.. for segregating the paragraphs. With an in understanding of customs regulations African The text indepth this box aligns from the bottom up. Adjust theoftext box height states andbut of the mining industry’s requirements, of course, leave the position of logistical the box sooperational that the bottom of the box Nucleus is well placed to add value and accountability to the mining has a y co-ordinate of 742pt. sector across Africa Website: address goes here as the last entry Email: mining@nucleussc.co.za
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Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007
“It is a very high grade copper cobalt deposit. In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that” – Michael Benfield, CFO
82 September 2014
confirmed the potential to mine and process mixed sulphide and oxide ores. The mineral resource of 93 million tonnes at a grade of 1.9 percent copper will eventually be mined by open pit methods. “We anticipate this project will cost somewhere between $500 million and $600 million and think that we may start it within the next five years,” said Benfield. The Chinese factor While the history of Metorex’s two operating mines extends back over many decades, the company itself was founded in 1975 by a consortium including Simon Malone which acquired Rand London Mines and subsequently became known as Metorex.
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The financial crisis impacted the business requiring it to divest of all of its South African assets leaving it focused as a base metal miner in Africa. Its fortunes have turned around somewhat dramatically following its acquisition by the China state owned entity, Jinchuan Group, which is providing the capital and support for its varied investment projects. Metorex officially ceased trading on the Johannesburg Stock Exchange in January 2012 and in November 2013, Jinchuan successfully incorporated Metorex into Jinchuan Group International Resources Company Ltd, a Jinchuan subsidiary listed on the Hong Kong Stock Exchange. “From that point onwards Metorex became Jinchuan’s African platform to develop further
Ruashi is a copper and cobalt mine in Katanga province, located within the Democratic Republic of Congo
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Wealth Unearthed When you unearth copper, you help move energy that can change the world.
This is the kind of wealth AEL Mining Services is proud to help you unearth. Advancing, constantly evolving and defining the furture of explosives in the mining industry.
Tel: +243 99 5366 257 www.aelminingservices.com
Hass Lubricants, tough and versatile! ‌.Because what goes in matters
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Workers keep the generators going 24/7
assets and acquire assets through the Metorex brand that are primarily focused on base metals,” said Benfield. “Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities. So now it has become the spring board to raise the capital and create the platform for Metorex to grow in Africa.” In China, Jinchuan owns and operates a massive nickel deposit, which has still got a mining life of 50 years’ plus around which a whole integrated city has established itself. Jinchuan also holds a 51 percent stake in a South African platinum mine in the north west province and a few other assets outside of Africa.
“Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities” – Michael Benfield
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SONOREX Providing 40 years of procurement & logistic services to the mining industry in Africa
Contact details: P.O. Box 6793, Roggebaai, 8012, South Africa Tel (+2721) 421 1738 / 425 1020 • Email - info@tradimex.co.za
Turn-key Laboratory Solutions Design • Project management • Installation • Commissioning • Training & facility management • Containerized or built infrastructure • Sampling & Laboratory audits • Proficiency Testing Schemes
www.tramecon.com admin@tramencon.com
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Technical support Since the acquisition, apart from financing of projects, Jinchuan has extended its technical support and advice to Metorex. “I think by and large Jinchuan has left Metorex to manage the African environment, and although we have a few Jinchuan secondees here that are helping to build a bridge between the two companies and cultures we are operating fairly autonomously.� said Benfield. In order to maximise efficiency and productivity, Metorex is tackling two major hurdles that come with operating in central Africa, a skills shortage and long, logistical supply chain. “The skills shortage in Africa is immense with mines in Africa, depending on the scale of their operation, employing people with the skills from
supplier profile
Women serving food at the Ruashi Mine
Tramecon Metorex
Main text goes here and can be a block of copy - if there is no desire to Tramecon provides Turn-key Laboratory Solutions, including design, indent the copy with headings. Main text goes here and can be a block project management, installation, commissioning, staff training & of copy - if there is no desire to indent the copy with headings. facility management. The facilities can be either containerized or built If you need to create a new paragraph thenexpansions just hit return a infrastructure. We also assist with facility andand upgrades, separating rule appears for segregating the paragraphs. including change management and technical training. Quality related services include: Sampling andthe Laboratory audits, based on ISO The text in this box aligns from bottom up. Adjust the text box17025 height and relevant standards. Method validations of course, butcommodity-linked leave the positionISO of the box so that the bottom of theand box SO implementation. has17025 a y co-ordinate of 742pt. Website: www.tramecon.com, address goes here aswww.qotho.co.za the last entry
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Energising the Future! Amalgamated Power Solutions is a leading electrical and mechanical engineering company specialising in providing comprehensive p ower generation solutions to industries in both South Africa and Southern Africa. www.amalgamatedpowersolutions.com
Robinson International Limited Group is a worldwide company established in London, United Kingdom in 1982. The group supplies Cargo Inspection, Marine Surveying, Analysis/Testing and related services to a broad range of clients in 100+ countries.
OUR SERVICES: • • • •
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INSPECTION SAMPLING LABORATORY ANALYSIS CAPABILITIES: We analyse - Minerals (Metals and Ores) - Water (drinking water, waste water, ground water) - Used oil / Fuel - Soil LOADING SUPERVISION ISSUING OF EXPORT AND ORIENTATION CERTIFICATES
drc-enquiries@robinsoninternational.com
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many other countries,” said Benfield. “For example we have a small contingent of South Africans, Australians and British citizens working at our mines, although it does vary from mine to mine, but the majority of the work force are local employees.” Benfield explained that part of Metorex’s strategy was to ensure continuity with its ex-pats, so as not to lose their expertise, through helping them develop their careers at the company’s various locations. Centralising efforts In a bid to counteract skills and supply chain issues, the company has established a central services operation called Metorex Commercial Services (MCS) at its headquarters in
“The skills shortage in Africa is immense with miners in Africa, depending on the scale of their operation, employing people with the skills from many other countries” – Michael Benfield
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Operations at the Kinsenda mine
“Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right” – Michael Benfield
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Johannesburg. MCS has begun by bolstering technical skills at an administrative level including its accounts payable function which is controlled and supported from the head office. It has also sought to centralise its procurement activities leveraging more scale by being the procurement service provider for all of its operations, thus aiming to secure better price points from suppliers and ultimately getting costs per unit down. “Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right,” explained Benfield. “We have a well thought-out supply chain management strategy which we are aiming to develop, managed from Johannesburg and then integrated into our various operations.”
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Key Personnel
Staff pumping water from the mines
John Ferreira
BEng (Metallurgy), MBL
Supplies are predominately sourced in South Africa but chemical reagents to extract ore through the copper process come from other parts of the world. The challenge of connectivity is one that the company is also endeavouring to constantly improve in order to allow good communication across its operations. “In Africa there are issues with internet and telecommunication connectivity which can be a challenge for us,” said Benfield. “We are looking at standardising our communications from our headquarters in Johannesburg through to our sites in Central Africa. “We are also looking at Chinese procurement. The Chinese have an amazing track record for doing things quicker for less and we believe that their quality is constantly improving ensuring that supplies are fit for purpose, reliable and cost effective.”
Chief Executive Officer Previously Executive Chairman of Bateman Engineering NV, John joined Metorex in 2012. His experience spans from Africa to Europe and the Far East. John spent six years at BHP Billiton Group as the General Manager of two of their chrome operations before moving to the corporate office where he spent six years as the Vice President responsible for Samancor Chrome operations in South Africa.
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Forging partnerships However, Metorex has high standards for its suppliers and only seeks to enter partnerships with those companies that are reliable and provide reliable components and services. With regard to the construction works being carried out at the Kinsenda project, Metorex has partnered with South African based project management and engineering group, DRA, a diversified construction and infrastructure company Group Five, civil contracting firm Safricas, which is based in DRC, the MCK mining company based in the Katanga Province and component supplier, Outotec. Looking after its employees and the communities in which it operates are always regarded highly by the company which has developed a strong set of values it adheres to. “We have an acronym – PALETZ which is our mantra,” said Benfield. “P is for people focus, A is for accountability, L is for the long term perspective, E is for excellence in everything we do, T is for teamwork and Z is for zero harm. “We have a vision and that is to grow a sustainable African-focused base metal mining company that offers opportunity for the development of our employees and communities, delivering to shareholders’ expectations and contributing to the development of our world,” concluded Benfield, quoting from the Metorex mission statement.
Company Information Industry
Mining headquarters
Gauteng, South Africa founded
1975 employees
2,400 revenue
US$ 400 million products/ services
Copper and cobalt
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Kirloskar Oil Engines Limited set
for major global expansion
India’s leading diesel engine and genset manufacturer is enriching lives at home and in Africa across fields from agriculture and construction to power generation and mining Written by: Tom Wadlow Produced by: Anthony Munatswa
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‘From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines’
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ndia’s Kirloskar Oil Engines Ltd is on a drive to become a truly multinational business and ‘touch the world’ by powering vital industries with reliable engines and a second-to-none after sales service. From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines for service industries, infrastructure projects and defence establishment among many other important sectors, and is the flagship company amongst the 33 major group companies. It is leaving a positive legacy abroad in places such as Africa where agriculture and mining are being fuelled by its industry-renowned diesel engines. This accompanies that which has already been achieved at home, where Kirloskar Oil Engines has greatly enhanced the farming sector since 1946 and holds a 34 percent share in the market for power generators through its brand “Kirloskar Green Gensets”. Facilitating this vital society-building output is a core focus area, with emphasis also laid on enhancing the cutting edge research and development (R&D) facility. Healthy relations with workers and strong adherence to corporate social responsibility and providing education to India’s population in environmental and sanitation issues are also key areas where the organisation continuously pays
mining
Engine testing and assembly line
key attention. In being a peoples’ business, Kirloskar Oil Engines Limited is far more than just a provider of reliable diesel engines. World-class factories Generating the company’s revenue are four sites across India producing engines of three to 11,000 horsepower, the oldest of which is in Pune alongside its headquarters. In 2006 it invested US $175 million into a factory in Kagal, 300 kilometers from head office. Vice President of Exports Sunil Walunjkar said: “Here we have a 200-acre area and a world class single plant of 40,000 square metres with a capacity of 60,000 engines annually of 20 – 750 HP.
Key Personnel
Sunil Walunjkar, Vice President, Exports
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Leading the way in Electric Power Generation LEROY-SOMER, the worldleading specialist in industrial alternators and drive systems, designs and manufactures highly innovative eco-technological solutions to serve the industrial and large-scale commercial sector markets. www.leroy-somer.com
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Fueling InnovaƟon
K i r l o sk a r Oi l E n g i n e s Li m i t e d
mining
“We have another location in Rajkot on the western part of India where we manufacture our smaller three to 20 horsepower engines for irrigation and agro-industrial applications.” The final base is the large engine facility at Nashik, capable of manufacturing diesel engines in range of 2,400 – 7,200 HP for Marine and Power Generation applications. KOEL high-selling
Enriching lives in Africa As in India, agriculture dominates the economy of many African countries with maize being the most important food staple on the continent. Kirloskar Oil Engines Limited provides engines to power hammer mills continent-wide to 25 nations including Algeria, Nigeria, Tanzania, Uganda, Rwanda, Zimbabwe, Zambia and Angola. These mills crush the crop into a useable powder, helping to feed millions of people. In Senegal, more than 2,300 Kirloskar diesel engine-driven pumps and over 20 drip irrigation systems across the Senegal river have increased the annual rice production from less than 100,000 tonnes to 460,000 tonnes by increasing the irrigated land from 24,500 hectares to 85,000 hectares. Another key industry supported in Africa is underground platinum and gold mining. “South Africa is one of our major markets and we work with various mining houses like Aquarius Platinum, Anglo Platinum, Impala Platinum, Glencore, Lonmin Platinum, Goldfields and
and desirable Varsha pumpset
4R 1040 TBS III Engine used for diverse industrial applications
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K i r l o sk a r Oi l E n g i n e s Li m i t e d
Engineers’ training session
“If the customer is satisfied in aftersales service then they will buy again and again” – Sunil Walunjkar, Vice President, Exports
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Harmony Gold,” Walunjkar said. The company produces a range of engines for equipment spanning LHD (Load-Haul-Dumper) vehicles, Drill Rigs, roof bolters, dump trucks and Low- Profile utility vehicles and Personnel Carriers to transport workers. Walunjkar highlighted two reasons for continual success in Africa. “The first reason why we are successful here is because the mines work 15-16 hours a day and the production equipment has to
mining
run continuously, the engines must be reliable,” he said. “The second is after-sales service. We fix problems in the shortest possible time, minimising loss of productivity. As a company we do not believe in selling just a product. If the customer is satisfied in after-sales service then they will buy again and again.” Kirloskar Oil Engines Ltd. is also powering mining in Botswana, Zimbabwe and Zambia with
SL90 FMUL Certified fire fighting engine
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Above: Kirloskar Oil Engines supplies “Industrial Engines” which is widely used to
a view to opening up possibilities in the Ivory Coast, Tanzania and Ghana where the focus is more on open-pit as well as underground operations.
power the application of the “Drill Rig”
“There should be no fear of failure. You can think exponentially, freely and try out various ideas, so long as integrity is in place” – Sunil Walunjkar 102
September 2014
Enriching lives at home Back in India the company’s engines have been upholding the country’s most important economic sector, farming. It has spearheaded the world’s largest irrigation scheme and brought the Green Revolution to more than 4,600 towns and villages in droughtprone Saurashtra in Gujarat on the west coast. Walunjkar added: “When we say enriching lives what we mean is that our products and services will benefit the lives of those using it. Take today’s farmers, his grandfather was also using Kirloskar
All engines are designed in-house and undergo rigorous testing procedures
pump sets. “We run through the generations and our products last for 50 years without any problems. Our pump sets will help you to get a more fruitful crop which will benefit peoples’ lives.” Agriculture aside the company’s diesel engines power over 80 different applications across a spectrum of industries and Kirloskar Green’s Gensets form the backbone of satellite, cellular and telecommunications operations. In addition Kirloskar Green Gensets widely caters to specific power requirements across sectors like hospitals, hospitality, IT, infrastructure, banking and many more.
Engine design prototypes are tested across a range of
Industry-leading research A key part of Kirloskar Oil Engines Ltd. reaching
facets
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K i r l o sk a r Oi l E n g i n e s Li m i t e d
The company supplies engines for firefighting applications
“Different counties have different emission norms and we test that our engines fit the requirements of their destinations” – Sunil Walunjkar
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its global ambition is its industry-leading R&D department, made up of 200 highly skilled and efficient engineers in Pune and recipient of US $10 million of investment over the past two years. All engines are designed in-house and undergo rigorous tests across a range of facets. One important area is noise solation, where the company has been successful in making its engines meet the Indian legal noise requirements of under 75 decibels within one metre of the machine. It also has had a state of the art in-house Emissions lab since 2001 that helps in designing and maintaining the products to the regulatory requirements of exhaust emissions. “Different counties have different emission norms and we test that our engines fit the requirements of their destinations,” Walunjkar added.
mining
State of the art testing facility
“In Europe and North America the rules are more stringent than India and we are currently not selling big there but are designing products to meet those norms – soon we will get into these markets.� The company is however supplying engines for firefighting applications into France, and is the only Asian company to have industry-recognised FM and UL certified diesel engines.
Load Haul Dumper, extensively used in underground mining segment, is one of the most demanding
Limca Book of Records A dedicated and happy workforce is behind the development, construction and after-sales service of Kirloskar Oil Engines Ltd, whose industrial relations is of record-breaking caliber. Core values of integrity, creating wealth for all and worker empowerment filter through the ranks of the organisation.
applications that KOEL engines are successful in
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K i r l o sk a r Oi l E n g i n e s Li m i t e d
Kirloskar Oil Engines Limited facilities
“India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues” – Sunil Walunjkar
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The company has featured in India’s Limca Book of Records for being the only business to sign on time wage agreements before the standard three year cycle is up on seven consecutive occasions. The company’s 3,000plus employees are also given personalised evaluation and training programmes based on required skills. This feeds an exemplary health and safety record, with a raft of industry certificates including Indian Army certification, for which it is a key provider of diesel engines, which are used for various applications. The company also looks after people across the country, as well as the environment through its extensive Corporate Social Responsibility programmes.
mining
Company Information Industry
Diesel Engines (For-Agri Pumpsets, Industrial Engines and Generating Sets) headquarters
Pune, India founded
One such initiative is Vasundhara, which for the past eight years has involved 20,000 volunteers from the workforce and Indian public and 250 NGOs working on various environmental issues. Another is WaSH, a sanitation education programme whereby employees go into schools and provide vital tuition in the importance of hygiene. Walunjkar added: “India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues.” With a driven employee base and industry-leading products, Kirloskar Oil Engines Ltd. can truly look to ‘touch the world’ by 2025. “There should be no fear of failure. You can think exponentially, freely and try out various ideas, so long as integrity is in place,” Walunjkar concluded.
KOEL Founded in 1946 (Kirloskar Group 1888) employees
3,000+ revenue
US $400 million products/ services
Diesel Engines, Agri Pumpsets and Generators
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Lumotech Strengthens Market Position by Diversifica and Natural Geography Written by: Sam Jermy Produced by: Sharon Long
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Lumotech South Africa
Operations inside Lumotech
The automotive and commercial lighting manufacturer is diversifying its product range and leveraging its uniqueness in being the only producer of headlights and taillights in South Africa 110
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L
umotech South Africa, supplier of automotive products to global car giants Volkswagen, Toyota and Ford motors, is once again preparing for a growth phase after seeing revenue rise 100 percent in the last three years. The company’s products within the automotive range include headlights, taillights, spotlights, signal lights and specialised plastic injection mouldings and Lumotech is currently the only manufacturer of headlights and taillights for the automotive industry in the whole of South Africa. Based in Uitenhage, Eastern Cape, the Lumotech firm commenced operations in 1957 and has been wholly owned by parent company Metair Investments since 1993. It currently
M anufac t uring
Lumotech staff assisting with the light creation
supplies three of the seven motor manufacturers in South Africa for the original equipment market. Managing Director Wolfgang Ropertz said: “Automotive lighting is the major portion of our business. Then we have the commercial side where we develop our own low-energy streetlights, and we have won some tenders on that locally; we export too. We also have warehouse lighting under the Envirolight brand, so we are really developing our commercial side.” Being the only indigenous manufacturer of headlights and taillights for the local motor manufacturers is a definite advantage because it means the lights can be tuned to the body that is being built locally by the motor
“We can assist the local motor manufacturers to tune the lights to exactly their specifications” – Wolfgang Ropertz, Managing Director, Lumotech
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Lumotech South Africa manufacturers within South Africa, instead of imports being designed that may differ slightly in body structure tolerances. It is therefore a relationship that is mutually beneficial. Ropertz explained: “If the light is imported it would be built to suit those tolerances but it may not be the ideal build for the local body. “That is one of our big selling points because we can assist the local motor manufacturers to tune the lights to exactly their specifications and tolerances within the body work.” Another benefit is the elimination of risk in the supply chain, and the obvious reduction of transportation cost when manufacturing
Ford Ranger RCL
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Johannesburg Phone: +27 (0)11 493 7816 Fax: +27 (0)11 493 2389 info@ipex.co.za
Durban Phone: +27 (0)31 701 0260 Fax: +27 (0)31 701 0294 info@ipex.co.za
Cape Town Phone: +27 (0)21 535 1515 Fax: +27 (0)21 535 1513 info@ipex.co.za
www.baytool.co.za | baytool@baytool.co.za Tel: +27 41 4873222 | Fax: +27 41 4872606
M anufac t uring
locally. Lumotech prides itself on being highly skilled in injection moulding techniques, and as the lighting for original equipment customers is a visible item that needs to be aesthetically pleasing, the firm has been developing its name as a brand that can be relied upon. Continuous improvement As well as being a major supplier in the original equipment market (OEM), to the likes of VW, Toyota and Ford, Lumotech also sells small spotlights through a technical aid agreement with Hella Germany into the aftermarket for replacements. Another major strategic focus is on the commercial range of products which includes energy-efficient streetlights and warehouse lights marketed under the Envirolight brand. Its LED and CFL street lighting has seen some pleasing initial success, but the product Lumotech has in production is currently classified for B-class, suburban roads. Andrew Meikle, Director at Lumotech, said: “Therefore we have actually finalised the design of an energy-efficient streetlight for the main roads and motorways which will increase our product portfolio and obviously give us the opportunity to compete in more projects. “Continuous improvement is part of our philosophy, so we are always working to try and improve our productivity. We have to become more competitive, that’s always the
“We have actually finalised the design of an energy-efficient streetlight for the main roads and motorways which will increase our product portfolio and obviously give us the opportunity to compete in more projects” – Andrew Meikle, Director, Lumotech
Toyota Hilux CHL
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Lumotech South Africa
Aerial shot of Lumotech headquarters
“The majority of our suppliers are from overseas from Japan, Thailand, Singapore, China all over Europe and also some from the USA, mainly because most of the material we use is quite specific and it is a very technical raw material” – Wolfgang Ropertz
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drive for us. Going forward, we are working to localise some existing products. We have a number of projects in the pipeline.” The Lumotech strategy is to grow as a supplier while simultaneously increasing its product spectrum in the non-automotive commercial side, so with the development of new products and widening of the range, the strength of the business increases as a result of increasing the scope. Market matters Currently Lumotech has 410 employees; in recent times this has fluctuated because of volume changes and some projects have come to an end, but now the firm will be growing again as
M anufac t uring
it goes into the next phase of development. Ropertz said: “We will be increasing our staff; it all depends on our manufacturing volume and what’s going on with the motor plants, and our core structure is in line with that. But because we are introducing new technologies as well, we will be employing more. “The majority of our suppliers are from overseas from Japan, Thailand, Singapore, China all over Europe and also some from the USA, mainly because most of the material we use is quite specific and it is a very technical raw material. Obviously we have local suppliers too and things like lenses for tail lights, we will be localising in the future.” Since 2008 Lumotech’s capital expenditure has been in the region of R100 million. It has invested substantially in new equipment; mainly injection moulding machines and metalising machines. The growth strategy is to get more work from the remaining four motor manufacturers in South Africa. It has already targeted two and is fine-tuning cost to tool up. “We have a five year strategic plan in place to get the business for the models of what we are producing, wherever a production cycle is coming to an end and the model is running out. “We must also get the business to lead to one new model, headlights and taillights while increasing our non-automotive business. Potentially, we could see our turnover increase by 25 percent,” concluded Ropertz.
Company Information Industry
Manufacturing headquarters
Uitenhage, South Africa founded
1957 employees
411 revenue
Not Disclosed products/ services
Light manufacturing
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Mota-Engil
Building for the Future in Africa Written by: Joel Levy Produced by: Kiron Chavda
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M o ta E n g i l A f r i c a
The Group’s subsidiary on the continent is helping to raise the economic prospects of the ten nations in which it has a presence with the successful delivery of crucial infrastructure projects
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ith a deep knowledge of the African market and commitment to improving and diversifying its services, civil engineering and construction group Mota-Engil is expanding its presence and offering on the continent. The company is preparing to increase its focus on services including logistics, industry and environment, as well as waste collection, street cleaning and other services in urban areas, with a view to further strengthening its position in local markets. Mota-Engil Africa, a subsidiary of the Portuguese parent company, has a presence in 10 African nations: namely Angola, Malawi, Mozambique, Cape Verde, Ghana, São Tomé and Príncipe, Uganda, Zambia, Zimbabwe and South Africa. Headquartered in Johannesburg, South Africa,
C ons t ruc t ion
Da Ponte Emilio Guebuza, Zambeze River, Malawi
it is a leading provider of integrated engineering and construction services and a wide range of other utilities across Sub-Saharan Africa, where it employs some 14,600 people, and reported revenue of €1 billion in 2013. Entering Angola The global Mota-Engil Group has roots in Portugal and Angola dating back to 1946, when founder Manuel António da Mota opened twin branches of construction company Mota and Companhia in both countries. Since then, it has strongly supported the Angolan infrastructure development process while expanding into other Portuguese-speaking African countries. In 2000, Mota acquired Engil SGPS, creating Mota-Engil. The company then implemented a significant programme of investment in equipment, premises and talented young staff,
14,600
Number of people employed by the company across across Sub-Saharan Africa
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Mota-Engil has become a truly global company
and has become a truly global group, operating in Europe, America and Africa, and comprising 214 companies. Angola has remained a key location for the African subsidiary, where, as Mota-Engil Angola SA, it has become one of the largest construction firms. Its long history of successful project deliveries in the nation dates back to the construction of the Luanda International Airport in 1952. The capital has also been the location for two of Mota-Engil’s most high-profile projects in Angola, where its work on the rehabilitation of the Luanda Bay and construction of the Towers of Luanda earned it an outstanding reputation.
Karbochem (Pty) Ltd is an Independent South African producer of a wide range of synthetic rubbers for the tyre and industrial rubber manufacturing markets, including the commodity types: • ESBR (Afpol) • SSBR (Afsol) • Low cis-BR lithium catalysed rubbers (Afdene) As well as: • High cis-BR neodymium catalysed rubber (Neodene) • 3,4 Poly-isoprene (Isogrip)
Karbochem Holdings wholly owns Karbochem (Pty) Ltd and The Synthetic Latex Company (Pty) Ltd For further information contact our marketing office at: Tel: +27 11 601 1660 Fax: +27 11 616 6651 CONTACT PERSONS John Lithgow Carrie Blackburn Eastgate Office Park, Block A, Ground Floor, South Boulevard, PO Box 581, Bruma 2026
Global Logistics & Heavy Lifting Powervia Africa is a global logistics and heavy lifting operator active in two key areas: abnormal transportation and crane rental. The company is based in Mozambique with a strong regional presence, with operations in the country´s key areas: Maputo, Nacala, Beira, and also in neighboring countries, such as Malawi.
www.powerviafrica.com
C ons t ruc t ion
Torres Atlântico Angola
SADC Including Angola, Mota-Engil’s African growth strategy is centred on the SADC region. Here, the company has also conducted extensive works in Mozambique, including a bridge over the Zambezi River, refurbishment of the Milange to Mocuba road and, more recently, the Nacala Corridor project to construct a new railway line connecting the Moatize Mine to the Port of Nacala, through Malawi. Malawi has recently been the location of works for the mining sector, adding to the Group’s portfolio of road infrastructure projects in the country. It is also currently building a railway for the large mining company Vale SA, making MotaEngil the first European company to build a rail line on the continent in 60 years.
Luanda Bay, Angola
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Engineering and construction of a 483-metre-long suspension bridge over the River Catumbela, Angola
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This development is set to impact hugely on the prosperity of the nation by decreasing the cost of living and greatly boosting the economy - a fact that Mota-Engil takes great pride in. Malawi is also the scene of one of the company’s most important CSR schemes, where it is currently converting the Chauncy Maples, Africa’s oldest ship, into a mobile clinic to provide anti-Malaria, TB and HIV/AIDS services while also offering maternity care. This is but one example of Mota-Engil Africa’s comprehensive social improvement projects, conducted through its Fundação Manual António da Mota charity arm. In Zambia, the company was recently awarded the contract to refurbish the important Great East
C ons t ruc t ion
Road connecting the country to Malawi, a project that will create 1,000 jobs for locals. East and West The West is an area where the ambitious Group has seen recent expansion. Having formerly operated solely in the island nation of São Tomé and Príncipe, where it focuses on civil construction and public works, it last year entered Ghana, after being awarded a contract to protect a 200 kilometre stretch of coastline in the capital, Accra. The most recent geographical move for MotaEngil Africa saw a push into the East, where it entered Kenya, Tanzania and Rwanda. With these nations enjoying strong oil and gas resources, they will be future focus areas and ones where the Group sees considerable growth potential as it pursues a policy of entering countries with GDP growth above six percent. With an already-impressive portfolio of projects, a long-term strategic outlook and an expanded horizon for work, Mota-Engil is looking forward to an even more successful future in Africa. To this end, its strategy is to develop partnerships to enable diverse infrastructure projects in transport and logistics, energy, oil and gas, and environmental. As it does, it will remain true to its values of developing bespoke projects for clients and commitment to elevating the African continent to its full economic potential with the quality infrastructure it deserves.
Company Information Industry
Construction headquarters
Johannesburg, South Africa founded
1946 employees
14,600 revenue
€1 billion products/ services
Construction and Civil Engineering
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Medtech Ethiopia Pioneers Domestic Industry Growth through EPHARM Acquisition Written by: Matthew Staff Produced by: Kiron Chavda
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Medtech Ethiopia
For the past 16 years, Ethiopia’s pharmaceutical industry has developed alongside Medtech Ethiopia and EPHARM, ensuring that this latest acquisition will optimise the international influence of both
Internal Operations
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M
edtech Ethiopia has signaled its intentions in recent years through various acquisitions and diversifications, and is well on its way to benefiting from its most significant investment to date. The Ethiopian pharmaceutical company’s recent acquisition of EPHARM (Ethiopian Pharmaceuticals Manufacturing Factory) signals a full circle in the business’s 16-year development, which initially saw it operate as a distributor for the latter to fill the demand gap in Ethiopia. Founder and Chief Executive Officer (CEO), Dr. Mohammed Nuri , was the innovator who noticed the concerning trend and has not looked back since deciding to form the country’s first pharmaceutical supplier. “I am a doctor by background, and was really frustrated by the shortage of availability of pharmaceutical products in the country,” he said. “This is what pushed me to go into this field and with the Ethiopian market untested at the time, we grew exponentially. “From five staff members in a three-room office, with capital of $50,000, we have now registered more than 300 pharmaceutical products from more than 20 global suppliers. We are ISO certified and one of the top pharmaceutical companies in Ethiopia.” EPHARM acquisition EPHARM has been a government-owned organisation for the past 50 years, establishing an
sec t or
unrivalled reputation in the country and industry, making the acquisition a vital feather in the cap of Medtech Ethiopia. With a total of 63,000 square meters of land to expand the EPHARM facilities, Dr. Nuri has taken the opportunity to make sure that the potential of this venture is optimised. “EPHARM has eight manufacturing lines for various products and we will be renovating each one in turn over the next five years to make sure they meet GMP (Good Manufacturing Practice) guidelines before making them fully operational,” the CEO explained. “Any machinery that needs changing we will change, and any that needs upgrading, we will upgrade; all the while maintaining the existing employees and giving them the relevant upgrades in training.”
Medtech now has extensive warehouse facilities to distribute its products
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Medtech Ethiopia
H eal t hcare
Alongside the physical assets of the renovations and inherited product lines, the retention of the 500 staff members and identity that EPHARM has within the country is seen as pivotal to the success Dr. Nuri expects from the acquisition, while the operational improvements that have begun are already receiving international input and recognition via the likes of Bosch, in regards to the installation and training involved with new machinery. The end result will see EPHARM’s facilities globally competitive, and will subsequently continue to carry the flag for the industry in Ethiopia. Joint venture Collaborations, acquisitions and partnerships – both domestic and international – have been key features of Medtech Ethiopia’s vast expansion
Key Personnel
Dr. Mohammed Nuri Founder and Chief Executive Officer (CEO)
Customer operations
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Medtech Ethiopia
Medtech specialises in more than just pharmaceuicals
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H eal t hcare
over the past 16 years. The company now consists of four business units; pharmaceuticals, medical supplies, lifecare and general trading. The first comprised a large portion of the company’s early successes, relying on key partnerships in India and the Middle East to provide as many market-leading products as possible to Ethiopia. The aim now, however, is to capitalise on Ethiopia’s general economic growth and to become the hub for manufacturing and distribution locally. To aid this slow, but concerted transition away from imports, Medtech Ethiopia has recently embarked on a joint venture with one of the UAE’s giant pharmaceutical companies, Julphar, as Dr. Nuri explained: “We signed an exclusive agreement with Julphar 12 years back, registering certain products from this company, and in 2012 we signed a joint venture agreement with them on a state-of-the-art pharmaceutical manufacturing factory here in Ethiopia called Julphar Ethiopia PLC. “This factory was inaugurated by our Prime Minister and has received big public approval.” With three production lines and 100 employees introduced as a result of the venture, the immediate success of the partnership has subsequently led to a further proposal which will see Julphar Ethiopia open up the country’s first insulin factory. Work will begin on the factory by 2015 which,
“From five staff members in a three room office, with capital of $50,000, we have now registered more than 300 products from more than 20 global suppliers. We are ISO certified and one of the top pharmaceutical companies in Ethiopia” - Dr Mohammed Nuri, Chief Executive Officer, Medtech Ethiopia
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Medtech Ethiopia
H eal t hcare
once completed, will not only become a massive benchmark for availability of insulin in Ethiopia, but will ultimately become a hub for the entire continent. Corporate Social Responsibility Being a pioneer from a business sense is very important to Medtech Ethiopia, but being a positive influence in the country outside of its profit-making activities is every bit, if not more significant. For the past 10 years the company has donated three percent of its net income to be distributed around the country to worthy causes, as part of its widespread Corporate Social Responsibility (CSR) programme. “This money goes to the poor and needy and we currently have 10 non-governmental organisations and charities that we regularly support, including work with the blind, providing spring water for 30,000 people in 13 rural areas and supporting rural elementary & secondary schools and two autistic centres,” Dr. Nuri said. “We also work in association with the local university to provide scholarships for young students and are also very much involved in making sure that our manufacturing practices preserve the environment as best as possible.” Once the EPHARM renovation has been completed, the business even has plans to open its own charity foundation, providing further aid to people unable to provide for themselves.
3% Percentage of the company’s income donated to worthy causes over the past 10 years
Spring water development donation project
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Medtech Ethiopia
“Medtech Ethiopia is an ethical and highly professional company, proud of itself here and abroad as a reliable and admired business partner” - Dr Mohammed Nuri
Vision 2020 As a result of the company’s recent acquisitions and subsequently successful expansion plans, Medtech Ethiopia has had to revise its initial 2020 vision, with the target now to become one of the top businesses in the country. This refers not just to the pharmaceutical sector, but across all businesses, leading to even further efforts to diversify and expand its offering at present. Dr. Nuri explained: “We currently import and distribute products in baby nutrition like DanoneBebelac, as well as being an agent for companies like Procter & Gamble. “We have also just begun running a big ceramic factory in a joint venture with a world class ceramic manufacturer. This factory in Ethiopia
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H eal t hcare
Company Information Industry
Healthcare headquarters
Addis Ababa, Ethiopia founded
1998 Ceramics factory employees
will be upgraded over the next nine months to become the biggest for ceramics in the country.” Adding to this repertoire exists the company’s animal exporting business from its tailor-made export house, which led the company to be named as best cattle exporter in the country five years ago; all of which, Dr. Nuri believes, will conspire to make sure Medtech Ethiopia becomes one of the top three business groups in Ethiopia by 2020. “Medtech Ethiopia is an ethical and highly professional company, proud of itself here and abroad as a reliable and admired business partner,” he concluded. “We have set a new vision of being a top three business group by 2020 while strengthening our CSR programme by truly supporting the needy across the country.”
1,500 revenue
Not Disclosed products/ services
Pharmaceutical
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