Business Chief Africa Edition - April 2018

April 2018 • AFRICA EDITION

DRIVING

DIGITAL DEMOCRACY INSIDE THE DIGITISATION JOURNEY OF THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA WITH CIO UNATHI MTYA

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Picturing a brighter future in Africa

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FOREWORD DIGITAL TRANSFORMATION MIGHT be rife across all industries, but in this issue of Africa’s Business Chief we tell a unique technology story as the Parliament of the Republic of South Africa drives to create an ‘e-democracy’.

Through an exclusive interview with its Chief Information Officer Unathi Mtya, we uncover the innovative steps the parliament is taking to improve every aspect of its operation.

“As CIO, I lead the IT division in parliament and this aims to use digital tools to contribute to a digital democracy,” says Mtya. “We use technology to promote a responsible people’s parliament and to improve the quality of life of South Africans.”

Also featuring prominently in this month’s magazine is Canon, with Nell Walker chatting to Stefano Zenti, Executive Vice President of Emerging Markets at Canon Europe, about plans to grow its presence in Africa.

Elsewhere inside, ServisBot founder Cathal McGloin explains why businesses shouldn’t be afraid to adopt artificial intelligence, Olivia Minnock looks at the mutual benefits academia partnerships can generate for companies and

institutions and Armadillo CRM’s CEO James Ray tells Stuart Hodge how technology can be used to drive customer retention.

Algiers comes under the spotlight in our latest City Focus as Harry Menear casts an eye at its blossoming tourism industry, while our Top 10 ranks the biggest companies on the continent by revenue.

Finally, our exclusive digital reports feature interviews with, on top of the Parliament of the Republic of South Africa, Steward Bank, FBC Bank Ltd, Bank of Namibia, Syrah Resources, Metorex, Algold Resources and Pizza Hut Africa – all involving in-depth discussions with top executives and industry experts.

We hope you enjoy this month’s magazine. If you have any feedback, you can find us across social media: @Business_Chief.

Enjoy the issue!

africa.businesschief.com www.bizclikmedia.com

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TAKING THE FE AR OUT OF AI

The mutual benefit of academia partnerships

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Picturing a

brighter future Stefano Zenti, Executive Vice President of Emerging Markets at Canon Europe, describes the company’s growing presence in Africa and its dedication to supporting the needs of the local people

Wr itten by NELL WA LK ER

CANON, A NAME which naturally connotes top-of-the-range image capture, is evolving to create a far more diverse presence and offering for itself. Executive Vice President of Emerging Markets for Canon Europe, Stefano Zenti, is one of the best-positioned to facilitate this change and watch it flourish.

Zenti began working for Canon in 1990, with the majority of his career since spent in his home country of Italy. His role shifted through various 12

April 2018

managerial positions and across multiple European nations, before he became responsible for the emerging markets business unit spanning EMEA regions. He now oversees operations in numerous countries with a focus on under-developed territories, particularly in Africa.

A focus for Zenti and his team is the adjustment in image for Canon.

While photography is generally on the decline in Western Europe, Africa still holds huge opportunities

L E A D E R S H I P & S T R AT E G Y

“Using and leveraging our technology and expertise in imaging, our ambition is to establish jobs in key African markets” – Stefano Zenti, Executive Vice President of Emerging Markets, Canon Europe

for Canon’s core product ranges, and this is something the business utilises to create better options for the local population. Not only is it able to develop its traditional offering here, but Africa is enjoying a huge boost in developing technology, leapfrogging from where it was just a few years ago to where some European nations are – and this only enables Canon to become more deeply ingrained in Africa’s digital revolution.

“As we evolve our European

offerings all the time, we are learning from that and bringing the experience to Africa,” Zenti explains. “In Africa, images are very important because every document requires pictures, so we have things like the Selphy photo printer. We tried to provide a solution for certain people to be able to communicate pictures with print and send the picture immediately to the person.”

This is just a tiny fraction of the way Canon alters its offering to suit the 13

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needs of the African people. It complements all of its activity in the continent with a sustainability initiative which provides a social contribution to the local people, as well as simply supplying jobs and valuable experiences. In 2016, Canon’s aim in Africa was to create a $200mn revenue by 2020, and it has already reached $150mn.

And with more than 250 African people on staff (and growing), there is no doubt for Zenti that the $200mn mark will be reached in time thanks to the talents of the people and their growing expertise.

“Canon has such a wide range of products and solutions on offer, and in Africa, this is something new,” he says. “We are showing that Canon does have a traditional offering, but alongside that we established a community programme from the very beginning that addresses young people especially. Using and leveraging our technology and expertise in imaging, our ambition is to establish jobs in key African markets and facilitate that.”

Hence the creation of the Miraisha programme, which provides African people with the skills necessary to allow them to carve out careers in professional photography or print. Last year alone, 22 students of the programme received awards and industry recognition, 42 students had their work published, and 128 of them

“It’s easier when you have people on the ground discovering what the local requirements are” – Stefano Zenti, Executive Vice President of Emerging Markets, Canon Europe

received paid commissions. Nneka Iwunna was part of Canon’s first ‘story telling workshop’ in Nigeria, after which she was selected as a grantee for the Magnum Foundation Fund. Furthermore, Obayomi Anthony – another student on the same course – continued his project beyond the course and entered his entire body of work to the National Geographic portfolio review – his reward was $10,000 and having his work declared ‘best portfolio’. Not only is Canon providing this training, but it is creating new African trainers to continue and expand the programme, as it has proven not only popular but fruitful for those involved.

Canon has been able to create this project and serve its African customers by being an agile, adaptive business. “It’s easy to do when you have people on the ground discovering 16

April 2018

what the local requirements are,” says Zenti. “This is the difference for us. Three or four years ago we managed the business remotely from London or Dubai, and we made the big decision to move our focus into the country with local people and our own senior staff, to develop the business and really invest properly in the locals. Of course, we still needed to see a return on investment, but more than that, we wanted to support Africa’s development. Canon’s corporate philosophy is ‘kyosei’, a Japanese word meaning ‘living and working together for the common good’ – it’s part of our DNA to really dedicate part of our profit or our investment to the local communities.”

It’s not just freshly-trained individuals who have benefited from Canon’s expertise, but pre-existing businesses too. On the B2B side, Canon has

L E A D E R S H I P & S T R AT E G Y

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L E A D E R S H I P & S T R AT E G Y organised training for 25 small ‘mama and papa’ shops to teach them about new applications and opportunities to print on different materials in a variety of ways, creating a competitive edge away from the traditional printing proposition. This not only sells Canon products through more channels, but spreads knowledge and passes the benefit onto those small businesses. “In the end if they are happy they will buy more, or at least speak positively about our brand, but for us the goal is to make sure we can give back something that’s not just in Europe,” says Zenti.

With Africa truly becoming a hub of innovation, it’s no surprise that Canon’s presence there is such a welcome one. The eternal question for Zenti is how he and his team focus and invest in the proper way, because there is a risk of seeing the entire continent as one whereas the reality is that in every country – and indeed every city – there are different realities, and any business permeating all of them must address its own behaviour there in the right way.

“Africa and its population is so intelligent, and the education level is growing – they’re so eager to learn

from the US or Europe and bridge the gap as quickly as possible,” Zenti says, “so we need to make sure we can answer these people and create value for them in the way they need.”

Canon’s goal is to continue to grow in Africa whilst simultaneously helping Africa to develop. The business has expanded 20% year on year in the region, and its goal this year is a more modest 15% – primarily due to political unrest. Still, Zenti is confident that there are many available opportunities, and Canon is able to be selective. It is opening new offices across the continent and hiring new people in eastern and western Africa to complement its large southern African team.

“Africa is showing the highest promise,” says Zenti, in relation to the regions he oversees. “I am excited because I worked for many years in Italy and Europe, and it is very difficult to grow in Europe. I’m not saying working in emerging markets is easy, but the level of energy, motivation, and positive thinking in the behaviour of the people is great. When we talk to people in Africa, the attitude is ‘yes we can’ and that affects the motivation of the entire organisation.”

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TECHNOLOGY

TAKING THE FEAR OUT OF AI Business Chief speaks to ServisBOT Founder and CEO Cathal McGloin about AI adoption and why businesses shouldn’t be afraid of it Writ ten by OLIVIA MINNOCK

TECHNOLOGY “NO TECHNOLOGY WINS because it’s a piece of technology: it wins because somebody figures out how to apply it to solve a particular business problem in a unique way.”

Cathal McGloin, CEO of artificial intelligence and automationbased customer service provider, ServisBOT, enthuses about the potential of AI, but warns businesses must apply it properly to their needs or risk being left in the dust.

McGloin, a self-confessed “software-addicted entrepreneur”, recently founded his fourth startup which utilises the latest in AI and automated technology to help businesses more easily manage their customer service needs. He’s passionate about making AI more accessible to a variety of businesses.

Certain elements of AI are nothing new, as McGloin is quick to clarify.

The idea for ServisBOT came about from experiences within the contact centre space, in which McGloin had co-founded Performix Technologies in 1998. “We created this idea of employee performance back in the late 1990s, with the rationale that if you give people a view of what their targets are and 24

April 2018

“AI will become table stakes in software going forward – anybody who doesn’t have it won’t even be in the race” Cathal McGloin, CEO, ServisBOT

how they are doing in real-time, they perform much better. We created, patented, and still own that, and every contact centre has employee performance software today.”

It’s clear our demands on technology are changing, and AI is key in both promoting and fulfilling that expectation.

“One of the big changes is we’ve moved away from a big screen onto mobile which is now a combination of touch and voice,” McGloin says. “My 16-year-old daughter will sometimes voice-text her friends, and won’t bother typing into Google… they can now just activate Siri, for example, to ask a question. The

interface is part of the conversation… that’s what’s interesting to me.

“One of the few areas that has not been impacted by digital transformation is customer service,” McGloin argues. “We’re still very much voice centric, waiting on hold. With live chat – which is 20 years old and has resurged in the past five years – you still have to have staffing, and 25

TECHNOLOGY so can only have your live chat work between, say, 8am and 8pm, often with a live chat agent handling several queries at once. That’s what gave rise to ServisBOT: the idea there had to be a better way of handling customer service with a conversational interface in a digital world that’s mobile-centric.”

The evolution of AI “AI has been around for 40 or 50 years now,” McGloin explains, “but a few things have changed. One is the abundance of data to create an AI system – because these are learning systems, you need large amounts of data for machines to know what to do. That’s fulfilled today by the data

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overload we have.” Another element, according to McGloin, is the major processing power required for AI. “You needed a lot of processing power to crunch that data and come up with the answers – the Android device we now carry in our pocket has more power than anything in the 1990s.”

In addition, open sourcing has made essential knowledge and skills available. “Amazon’s been using AI for 10 years for book preferences… they open sourced it and made it available,” he explains, saying that these tech giants are releasing APIs to carry out machine learning and as such making AI easier to use so that “ordinary developers are able

to get up to speed very quickly”.

These factors are set to make AI as much a part of life as the computer.

“As Andreessen Horowitz talks about, AI will become a feature of all software going forward. Software will have to have some self-learning capability, and some artificial intelligence. So, AI will become table stakes in software going forward – anybody who doesn’t have it won’t even be in the race.”

The application of AI McGloin is clear that “the difference between the winners and the losers is who knows how to apply AI. At ServisBOT, we’re trying to change the customer service experience

ServisBOT – changing the customer service conversation ServisBOT was founded in 2016 by brothers Cathal and Ray McGloin along with Chris Doyle. The company aims to transform customer service for businesses using technologies like AI and automation.

An army of “bots”, including Chat Bots and Service Bots, provide automated solutions giving customers “the service they want, any time they want”. In this way, the Massachusetts-based software company makes it easier and cheaper for businesses to implement AI.

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TECHNOLOGY

“The onus will be on application providers and vendors like ourselves to make it easy: we’ll build a solution that has an AI engine under the hood” Cathal McGloin, CEO, ServisBOT

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by heeding trends. For example, millennials don’t like phone calls – they want to send off a text and hear back.

People are impatient and want instant answers. Applying AI and chat bots means we can respond immediately.

In addition, the way we’ve built it, a company can get this system up and running within hours and days.”

“Automation is key to what we’re trying to do,” McGloin emphasises.

“It’s not AI for AI’s sake… while chat bots can be used to hold a conversation, we then have service bots which perform a particular task. It could print your banking statement or help you manage a journey… and because we use serverless technology, you can scale up to millions of transactions in an instant. Service bots aren’t just about chatting, but about performing a task, and our platform allows a company to orchestrate

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TECHNOLOGY an army of service bots across different areas of their business.”

Why aren’t all businesses implementing AI? Recently, software giant Red Hat commissioned Vanson Bourne to survey IT decision-makers on the adoption of technologies like AI. Respondents expected to increase technology investment by 25% from 2017-18. However, only 24% stated they currently implement AI, with an additional 30% planning to implement the tech in 2018. What threats, real or perceived, have stopped businesses already adopting AI in a flash?

First, McGloin mentions fear of AI replacing jobs. “This was the same argument with computers in the 1980s, but you’re always going to need human involvement. For example, customer complaints can’t be handled

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by bots as they can’t empathise.

With certain transactions, people will always want to talk to someone, especially those to do with money.

What will happen is we’ll provide better service, automate mundane tasks, and take the repetition out for folks.”

He also argues that most businesses are already using AI even if they haven’t made a disruptive song and dance about it. “Even things like preference selection on websites, there’s AI technology behind it. I think there’s this fear: ‘I don’t have a data scientist, it’s hard to get these people, it’s too expensive for my budget, I can do without it…’ You’ve got the issue of barriers like skills, availability, costs and so on that are stopping people from trying it out. The onus will be on application providers and vendors like ourselves to make it easy: we’ll build a solution that has

an AI engine under the hood. As we make it more about the application and less about the technology, I think we’ll find it easier to embark on.”

So, is AI just the latest buzzword?

“It’s the bees and the honey: everyone swarms to the latest thing, but AI is just a piece of technology. If you don’t

apply it in a different way you don’t get anything out of it. Companies like ServisBOT are coming out and saying ‘don’t worry about the AI, we’ll solve that – this is about its application. Here are some easy tools to create a new work flow, or a new bot, to complete a new task… don’t worry what’s under the hood’. We’re selling it as a service.”

What’s next for AI? Customer service and AI, then, go hand in hand – but where else can businesses easily utilise the tech?

“Customer service is across all industries,” McGloin clarifies, “so it’s a horizontal layer. Where I see 31

TECHNOLOGY

“People are scared of AI, but if you just make it easy for them to embark on it, they will” Cathal McGloin, CEO, ServisBOT

AI going next is into back-office, becoming the new business process management and elevating back-end tasks. It’s a useful area to apply AI because it can learn about things as it goes, it can change and adapt…”

In terms of ServisBOT, McGloin adds: “We’re at a really exciting stage, the product-market fit phase. We think we’ve hit something really big. People are scared of AI, but if you just make it 32

April 2018

easy for them to embark on it, they will.

We see a huge opportunity in actually taking the fear out of it and making it easy and low-cost to get started.”

One can’t help but wonder whether the serial entrepreneur will stick with his business, but McGloin is focused on creating a solution that lasts. “The thing I am most proud of is the fact that every company I’ve been involved with on this whole journey, including

the first one, Performix, all the technology is still available and in use today for companies to benefit from.

What drives me is the idea of creating something new that has a purpose and is useful. That to me is success: regardless of how much revenue it’s generating, there’s somebody getting use out of it. It’s creating something out of nothing and having it live beyond when you’re involved.”

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PEOPLE

The mutual benefit of academia partnerships How can businesses and academic institutions work together to boost productivity? Business Chief investigates Edited by OLIVIA MINNOCK

PEOPLE

ACCESS TO TOP experts for R&D will benefit any company, and now more than ever recruiting bright minds is top priority for business. In addition, higher education institutes are constantly looking to offer their students and academics the chance to build relationships with top players in the business world. Business Chief gathered some insight on how these partnerships can be developed and who stands to benefit.

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Collaboration for a brighter future in the UK

Gary Davie, Partner and Head of Independent Providers at law firm Shakespeare Martineau, feels that in the UK, collaboration is the way forward to benefit those in education as well as potential employers. “Whilst competition may in many ways fuels creativity and innovation, for the education sector, closer collaboration between further education,

“ For employers, a more streamlined education sector could be vital in helping solve the UK’s productivity crisis” – Gary Davie, Head of Independent Providers, Shakespeare Martineau

higher education and private providers could be just what UK students and learners need. People looking to take up a place in education would be able to see a demonstrable path towards a job and career progression, and businesses would have access to a talent pool which is equipped across the full breadth of the skills gap.

“HE policy in recent years has centred on competition, but that approach is starting to be questioned. A recent

report by the Higher Education Commission, titled One Size Doesn’t Fit All, put the themes of collaboration and competition under the spotlight, suggesting that a culture within the education sector, which encourages both equally, would bring greater benefits for students and the wider business community.

“Learners navigating UK education are likely to encounter a variety of different providers; the linear model 39

PEOPLE “ There’s significant untapped potential for businesses to establish mutually beneficial partnerships with universities” – David Docherty, Chief Executive, National Centre for Universities and Business

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of traditional study is still popular, but by no means works for everyone. For those students whose educational outcomes are best delivered through different learning settings, for instance both vocational courses and academic qualifications, closer collaboration could be integral to their success.

“Educational institutions have been working together for a number of years in some form. For instance, colleges, universities and private providers have long collaborated to deliver foundation programmes, franchised or validated provision. However, there is the potential for much more.

“Greater collaboration would be beneficial in two main ways: access to courses offered by further education and private providers would increase, equipping learners with a more diverse skillset for the workplace; and universities would benefit from more streamlined progression to higher education and the more extensive talent pool it would bring.

“Particularly for those learners who may not have considered higher education as an option, this clear progression through a range of learning environments would be a confidence booster, with an end goal in sight from

the start. This could be a particular career or qualification, even up to Masters or PhD level.

“To achieve this, though, all providers must accept that they cannot do everything on their own and realise that working together while drawing on individual strengths is key.

“For employers, a more streamlined education sector could be vital in helping solve the UK’s productivity crisis. Jobseekers in the market currently tend to have a range of qualifications and with different roles requiring various accreditations, they may have to engage separately with a number of different providers. If a consortium model was set up which could support learners through the different stages of education or employment, the benefits to employers looking for candidates across the range of qualification levels would be great.

“As the world changes and Brexit looms on the horizon, students in the UK will no doubt be considering employment and education options overseas. With more educational institutions setting up foreign campuses and forging links with multinational companies, the options 41

PEOPLE are there for learners and facilitation within the industry to support outward mobility will certainly be beneficial.

“The solution to the productivity puzzle has collaborative education at its heart. If learners have better access to the courses and qualifications of their choice which will get them the right jobs, and if employers can tap into the best possible pool of talent, the benefits will be felt by all.”

Partnerships to foster innovation and success

Meanwhile, Professor Elena RodriguezFalcon, Provost Chief Academic Officer of new STEM-focussed university, NMiTE (New Model in Technology & Engineering), offers an academic perspective on this kind of collaboration.

She also has some advice on how we can make these important relationships work.

“Having partnerships between universities and businesses is not new; there is now a long and evolving history of collaboration and innovation.

“Whilst there has always been a keen interest in developing partnerships that enable universities to understand the challenges being faced by industry in order to inform the creation of knowledge, or from companies to 42

April 2018

identify the next generation of capable employees, in more recent times the trend is for businesses to increasingly become co-creators of knowledge. Businesses are increasingly active participants in the development and delivery of the student learning experience.

“This provides a huge win-win for businesses, students and academics, and the benefits such partnerships deliver to industry are now even more valuable in our age of tightening

“ The trend is for businesses to increasingly become co-creators of knowledge. Businesses are increasingly active participants in the development and delivery of the student learning experience” – Professor Elena Rodriguez-Falcon, New Model in Technology & Engineering R&D budgets and, seemingly, an everincreasing speed of innovation.

“For instance, a study by IBM in the US found that a majority of tech industry and academic leaders felt partnerships are essential to provide students with skills for these jobs. It noted that when comparing the past five years to the next, those involved expect such partnerships will help bring significant improvements in meeting industry demands and ensuring the employability of students.

“Certainly, I have seen from my own experience how having students work closely with businesses has had a positive and inspirational effect. One such example from Sheffield University, where I taught previously, a group of students started their own company Handy Fasteners after having input that included local manufacturing businesses such as Gripple and Kingkraft. In another, a collaboration with Crown and Sheffield Hallam University resulted in the development of easy-open packaging.

“Ensuring tomorrow’s graduates have the skills your business needs is one benefit from such partnerships.

Another, very sizeable one is that they enable companies to make breakthroughs through accessing the leading-edge research and analytical skills universities have and, of course, lots of bright and inquisitive minds.

“However, businesses and universities are very different beasts, and making such partnerships work so successfully is not always easy. I have been personally involved with very many, and from the start it’s important to create a joint vision that identifies clear purposes and goals for the collaboration.

It’s also important to mention the 43

PEOPLE importance of them being viewed as long-term at the highest level of all involved. Ultimately, there also needs to be a clear strategic “what is in it for me” for both parties if it is to survive competing calls on time and budget over the ensuing years.

“There are lots of basics that need to be in place early on: in particular, agreements regarding intellectual property must be agreed upon and transparent, without putting undue risk on either party. In my experience the partnerships that work the best do so because expectations from both parties are managed right from the start; this is because there is a clear benefit for all involved, but mainly because partners really want to make it work.

“My institution, NMiTE (the new engineering university being created in Hereford in the UK), is taking these principles up a level by boldly forgoing set textbooks, lectures and exams.

Instead we are focussing entirely on a curriculum based around teams of students solving practical challenges actually designed in association with engineering companies to reflect the technical and commercial challenges they currently face.

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“We are currently working with a range of engineering and manufacturing companies to help tackle the current shortage of suitable graduates that such businesses regularly report, and I am inviting all others that are interested to get involved.”

Academia for R&D — finding the perfect match

How might these businesses create the mutually beneficial partnerships they require in this day and age? One platform that’s helping them to do so is Konfer.

With a “trusted user group” that includes leading business groups and companies representing bioscience, commercial chemistry, cybersecurity, digital media, energy, food production, intelligent mobility and transport, land management, technology and textiles, Konfer aims to accelerate research partnerships with UK universities.

Founding members include Capgemini, National Tryst, and Unilever, and total members represent a collective turnover/income of over £48.6bn ($68.69bn). Konfer takes the form of a free online match-making tool, which connects businesses with research expertise and funding opportunities.

It is backed by 132 universities in the

“ The benefits partnerships deliver to industry are now even more valuable in our age of tightening R&D budgets and an ever-increasing speed of innovation” – Professor Elena Rodriguez-Falcon, New Model in Technology & Engineering UK and includes profiles of over 130,000 academics available for collaborative research.

As a not-for-profit resource, Konfer has been funded and developed by the National Centre for Universities and Business (NCUB), Higher Education Funding Council for England (HEFCE), Research Councils UK and Innovate UK. Since its beta launch in November 2017, Konfer has already helped big names like Jaguar Land Rover conduct vital R&D.

David Docherty, Chief Executive at NCUB, told Business Chief: “There’s significant untapped potential for businesses to establish mutually beneficial partnerships with universities… we were inspired by business leaders who said they would be better equipped to grow and exploit opportunities in the UK and internationally if they had better access and insight to academic research partners and innovation funding.”

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The value of customer retention Armadillo CRM helps major global brands manage customer relationships. We speak to CEO James Ray about the value of retaining customers and how technology like AI and machine learning can help Writ ten by STUART HODGE

S U S TA I N A B I L I T Y

S U S TA I N A B I L I T Y AS LEGENDARY MANAGEMENT theorist Peter Drucker once remarked: “The purpose of business is to create and keep a customer”. Indeed, the art of creating new customers, as per the maxim, has been welldocumented by many business publications, but the challenge of keeping customers is not always given quite as much mainstream attention.

Research from Econsultancy a few years ago demonstrated that seven out of 10 businesses reckon it easier to retain a customer than acquire one. If this is the case, why is more attention is not devoted to this topic?

In recent years, customer relationship marketing (CRM) has emerged as a key means by which businesses can tap into their existing customer base to generate easy profit. To find out a bit more about the potential benefits of CRM, Business Chief spoke to James Ray, CEO of Armadillo CRM, a big player in the space which underwent a management buyout earlier this year.

Ray was part of the three-man team responsible for the buy-out, and has been with the company since 1996, previously serving as Armadillo’s Client Services Director, 50

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Armadillo CEO James Ray

Chairman and MD prior to the buyout.

We asked him exactly how CRM works.

“Data is our raw material,” Ray explains. “In our case our clients tend to be businessto-consumer (B2C) brands so we are usually working with consumer data, purchases, clicks, logins, browsing and so on.

We mine the data for insights – analysing patterns, trends and signals. That insight feeds a strategy to engage, influence or change the customer’s behavior in line with our client’s objectives – usually with KPIs and a business case attached. Then we bring that strategy to life with the right mix of data, creativity and technology to change the customer

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S U S TA I N A B I L I T Y experience and deliver the behavior change our clients are seeking.

That might be to get the customer to spend more, become more loyal, or even to feel more positively toward the brand. To complete the loop, we analyze the resulting data and optimize the strategy.”

Armadillo, which is celebrating its 25th anniversary this year, lists McDonald’s, the BBC and Disney amongst its clients. The company claims to have run a number of CRM strategies as part of integrated

campaigns for clients which have driven double-digit uplifts in performance from the CRM channel alone. Impressive – but as companies embark on digital transformation and become more tech-aware, has CRM become more popular? “Yes,” says Ray. “The diversity of our client base points to this – digitally native brands like Hotels.com, where CRM is baked in to their DNA, as well as more traditional businesses like McDonald’s and Disney, where what started as a specialist channel is now core to their future plans.

“We often start working with businesses when they are consciously at a turning point in their approach to managing and using customer data.

We help them build the strategy for managing their customer relationships, which helps define the associated requirements for technology within the business. I think there’s a shift in client expectations going on, not only in CRM but in marketing services more generally, too. With the

“With the accessibility of powerful marketing technology and the empowerment it brings, clients’ needs are more fluid and varied than ever before” – James Ray, CEO of Armadillo CRM 52

April 2018

Armadillo CRM: data insight creative The launch of a new brand

accessibility of powerful marketing technology and the empowerment it brings, clients’ needs are more fluid and varied than ever before. Tailoring solutions and services to specific needs used to be a nice option to have – and a quirk of Armadillo – but now it’s an expectation.”

Armadillo is ambitious, and upon completion of the recent buyout, the new leadership announced the company now aims to double in size over the next five years. Integral to that is how it retains some of its

bigger clients, while ensuring it enables its clients do the same.

“We’ve been the retained CRM agency partner for McDonald’s in the UK since 2011, helping them develop a CRM capability, originally from a standing start, with a full service that includes analysis, strategy, data management, creative and campaign delivery,” says Ray. “We’ve been working with Hotels.com since 2015, supporting their in-house team on strategy, analysis and creative projects 53

“Where machines can automate and do tasks better than humans, it leaves more time for humans to do the creative and lateral things that create resilient and loyal connection between customers and brands” – James Ray, CEO of Armadillo CRM

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S U S TA I N A B I L I T Y that are tested in the North American market, and then rolled out globally.

And we’ve been working with The Walt Disney Company since 2007, currently helping them deliver eCRM campaigns across five key European markets.

“What I love about what we do is that every client is different.

For McDonald’s in the UK, who’ve had 48 quarters of consecutive growth, market share and sales are not a problem for them – the priority is building and sustaining customer affinity, so our approach is tailored to do that. That means eCRM programs that connect customers to new products and tastes according to their favorites and preferences, and driving them to use new convenience platforms like mobile ordering and delivery. For Hotels.com, who operate in a fiercely competitive and highly-commoditized market, it’s very different. Here, we work with the client to identify trends and patterns in customer behavior, and develop multi-channel CRM strategies to intervene with offers and messages in order to restore and

retain customer booking behavior.”

According to Ray, the key to Armadillo’s success has been “fundamentally about finding the right people” and the fact the team has an “obsession with service”. That, alongside the company’s capacity to change and evolve, has helped it navigate any choppy financial waters caused by major events such as the global financial crash.

The CEO recognizes that you always need to have an idea of where the next major disruption or industry innovation may be coming from, and Ray has already identified the key areas Armadillo will be keeping an eye on over the coming months and years.

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“We mine the data for insights – analysing patterns, trends and signals. That insight feeds a strategy, to engage, influence or change the customer’s behavior in line with our client’s objectives.”

– James Ray, CEO of Armadillo CRM

“For a while now, the big players in the marketing tech space have been sweeping all before them,” he adds. “We’re seeing quite a few frustrations on the client side as expectations have fallen a bit short.

Our tech teams are increasingly called on to develop additional tech to plug some of these gaps. I can see this growing: the creation of mini bits of bespoke tech as a service 56

April 2018

rather than an off-the-shelf product.

“As well as artificial intelligence and machine learning, in Europe there’s the new GDPR legislation. Brands need to re-permission some or all of their customers ahead of the May deadline. We’re helping brands to make a virtue out of the opportunity for customers to keep their investment in the data they give and what benefits they receive in return. Although it’s

S U S TA I N A B I L I T Y

been a long process for brands, it will also bring positive change in the long term, encouraging companies to talk to customers more openly about the value their data provides them.

“I think we’re still in the foothills of the potential for AI and machine learning, but it’s already changing the landscape. I think it’s a great opportunity not only for brands but for agencies like us – where machines

can automate and do tasks better than humans, it leaves more time for humans to do the creative and lateral things that create resilient and loyal connections between customers and brands.”

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CITY FOCUS

Headline

Seque rest volorum aute velestio intem illibus es qui ut alit et, sita iuntur?

Writ ten by AUTHOR

AS ALGERIA HOPES TO MOVE AWAY FROM DEPENDENCE ON THE OIL AND GAS MARKET, ALGIERS’ IMPROVING TOURISM SECTOR IS SET TO GROW FURTHER Writ ten by HARRY MENE AR

CITY FOCUS

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Situated on the Mediterranean coast of North Africa, Algiers is the capital of both Algiers Province and Algeria. With a metropolitan population of 3.68mn and a national GDP of $159bn, according to Forbes, Algiers is the fifth largest city in North Africa. The World Bank classifies Algeria as an “upper-middle income nation,” with a GDP growth of 3.3% since 2016.

Algeria’s largest industry is the oil and gas sector, with the country boasting the third-largest natural gas reserves in the region, and ranking 18th on a list of global oil producers in 2016. The International Monetary Fund says Algeria’s oil and gas revenue accounts for more than 95% of the country’s export earnings and 60% of its budget. However, the country’s oil production fell dramatically in 2017, from 1.1mn barrels per day in January 2017 to 997,000 barrels per day in October, according to a Trading Economics study.

With oil and gas exports, which represent 35% of the country’s GDP, in decline, business interests in Algiers, both private and state owned, have taken steps to bolster the national economy through increased investment in the tourism industry.

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CITY FOCUS

Tourism infrastructure in Algiers The Oxford Business Group Algeria Report, published in 2017, claims: “Algeria is primed to make use of its significant tourism potential. Though the industry remains underdeveloped, particularly in regards to the number of hotel rooms and the cumbersome visa regime, foreign business tourism and niche areas such as spa, desert and ecotourism have strong scope for growth.”

In order to combat the country’s lack of tourism infrastructure, the minister for tourism, Hacène Mermouri, announced the government’s plan to increase annual visitor figures from the current average of 2.7mn to 4.4mn by 2027, and in order to support this the Algerian government has announced the approval of 1,812 new hotel projects, as part of an initiative to more than double the country’s guest room capacity.

Of these projects, 582 rooms are already under construction, according to a report by Katherine Doggrell for Hotel Management. 197 of these hotels, with a total capacity of 39,000 beds, are under construction in Algiers itself, according to a statement made by Mermouri in September last year. The project, he claims, will create 18,000 construction jobs in the city, in addition to those created by the $1.86bn government investment in renovating existing hotels throughout the city.

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‘With the decline of terrorist influence in the region, growth in both the construction and hospitality industries, and the backing of the Algerian government, 2018 is expected to be a time of continued growth in Algiers’ tourist trade’

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CITY FOCUS

Marriott International In January 2017, Marriott International announced plans to open a further six hotels in Algeria, more than doubling its footprint in the country.

The international hotel brand currently has no presence in Algiers, and has yet to announce the location of its new hotels. Marriott International’s President & Managing Director, Alex Kyriakidis, described the country as “integral to our overall development strategy throughout Africa”.

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Hyatt Hotels In March 2017, an affiliate of Hyatt Hotels Corporation announced plans to open a new location at the Houari Boumediene Airport in Algiers. The Hyatt Regency Algiers Airport is expected to open in 2018, and will be the first Hyatt-branded hotel in the country. The 326-room hotel will be the only terminal-linked hotel at the Houari Boumediene Airport. The hotel will also offer more than 4,950 sq ft of lounge space, seating areas, and meeting and events spaces.

Hamid Melzi, Président Directeur Général of Algeria’s Société d’Investissement Hôtelière said: “We are delighted to be working on our first project with Hyatt and to introduce the Hyatt Regency brand to Algeria.

With the hotel’s prominent location... we believe the globally recognized Hyatt Regency brand will resonate with the growing base of business and leisure travelers visiting the city.”

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CITY FOCUS

Training and development The new investment in hotel capacity has also prompted the government to promote vocational training, according to Lazhar Bounafaâ, CEO of the Group Hôtellerie Tourisme et Thermalisme, who claims the development of qualified human capital is crucial for the future advancement in the sector. “The sector needs to develop public-private partnerships in training and education to generate a workforce that hotel projects can benefit from and that can improve the productivity and performance of the sector.”

The emphasis on job creation in the construction and tourism sectors has contributed to Algeria’s recent labour shortages, Reuters reports. “Youth unemployment is running at around 30% in Algeria, but the country also faces a shortfall of workers in some sectors as it tries to steer its economy away from over-reliance on oil and gas production.”

The government announced in 2017 that it plans to institute a programme that will grant residency and work permits to illegal African migrants, mostly from Niger and Mali. The programme, which will aim to replenish the country’s ‘legitimate’ labour pool, is also part of an attempt to reduce race-based violence it claims is acting “to tarnish the image of our country”.

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‘In January 2017, Marriott International announced plans to open a further six hotels in Algeria, more than doubling its footprint in the country’

Risk reduction for tourism This global image is possibly the largest obstacle facing the growth of the tourism trade in Algeria, with Algiers designated a high-risk area for tourists at night by gov.uk.

However, the country’s 20-year old terrorism policy has recently seen it gain significant ground in the battle against terrorist group Al Qaeda.

With the decline of terrorist influence in the region, growth in

both the construction and hospitality industries, and the backing of the Algerian government, 2018 is expected to be a time of continued growth in Algiers’ tourist trade, as the number of visitors from France – the second largest tourist source market to Algeria – has risen steadily in recent years, from 121,000 in 2014 to 169,000 last year, and further growth from new markets is expected to be instrumental in reducing the country’s dependency on oil and gas.

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TOP 10

TOP 10 BIGGEST AFRICAN COMPANIES The top 10 largest companies in Africa by reported revenue in 2017, according to the Forbes Global 2000 list

Writ ten by HAR RY MENEAR

TOP 10

10

ATTIJARIWAFA BANK

Based in Casablanca, Attijariwafa Bank is the largest provider of financial services in Morocco. The banking house operates in 14 countries in the North, West and Central Africa and is a subsidiary of SNI Holdings, King Mohammed VI’s investment Plc. Attijariwafa Bank reported a revenue income of $3.33bn in 2017, according to Forbes. The bank recently partnered with Ghana Commercial Bank (GCB Ltd) and “will operate as correspondent banks, facilitate trade finance, deepen capital markets and jointly organise business missions designed to enhance trade and investment between Morocco and Ghana”, according to Ghanaweb. AWB is the only North African company in the top 10.

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9

MMI HOLDINGS

South African company MMI Holdings provides short and long-term insurance, asset management, savings, investment, healthcare administration health risk management, employee benefits, property management and rewards programmes, according to Forbes.

The company reported a net revenue of $3.67bn in 2017. MMI formed as the result of a merger between Momentum and Metropolitan in 2010. In the wake of CEO Nicolaas Kruger’s resignation in January 2018, deputy CEO Mary Vilakazi maintains her focus is “to extract additional value by operationally integrating the group’s two retail operations (Momentum and Metropolitan)”, which generate 60% of MMI’s profits.

SANLAM

Headquartered in Belleville, South Africa, insurance and finance company Sanlam achieved an annual revenue of $5.81bn last year. The company provides financial solutions, including “individual, group and shortterm insurance, personal financial services such as estate planning, trusts, wills, personal loans, health management, savings and linked products”, according to Forbes.

Sanlam experienced a $137mn profit reduction, although overall revenue increased by over $400mn.

Despite overall asset reduction, Sanlam moved in September 2017 to acquire Lion Assurance Company, a Ugandan insurance company, in a deal worth $5.6mn.

8

NASPERS

Television, print media, internet service provider, tech, and publishing company Naspers is based in Cape Town, South Africa and reported a net revenue of $5.93bn in the last financial year. Over the past three years the Johannesburg Stock Exchange has listed Naspers as the world’s third-fastest growing technology stock, behind Tencent and Nvidia, Moneyweb reports: “An investment in Naspers five years ago would have elicited a 581.8% return, a better return than offered by US technology giants such as Facebook, Amazon.com and Google parent Alphabet.” Naspers CEO Bob Van Dijk announced in November 2017 that they would be pouring billions of unassigned dollars into new ecommerce opportunities in a bid to become a better investment opportunity than Chinese tech giant Tencent: “We have room to invest in the future,” he said.

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TOP 10

6

Johannesburg-based banking house FirstRand reported a net revenue of $8.39bn in 2017, according to Forbes. The company provides “banking, insurance and investment products and services to retail, commercial, corporate and public-sector customers through its subsidiaries” Rand Merchant Bank and Wesbank. In November 2017, Firstrand completed a deal to buy UK banking house Aldermore outright for $1.54bn. The Financial Times reported: “For FirstRand, acquiring Aldermore would enable it to diversify its earnings and mitigate economic weakness and brewing political risk in its domestic market.”

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5 STANDARD BANK GROUP

Regional banking conglomerate Standard Bank Group operates out of Johannesburg, South Africa, through four subsidiary banking units: Personal & Business, Corporate & Investment Banking, Liberty and Central & Other. The four groups provide banking and financial services to small and medium businesses, as well as corporate, governmental, and parastatal organisations. The company reported revenue of $8.61bn in 2017, representing a larger than 40% decrease in revenue from the previous financial year. Profits have also decreased by over $200mn from 2016.

BIDCORP

South African food sector investment company Bidcorp specialises in development economies on all continents other than North America, according to Forbes.

The company, which only came into being after a separation from Bidvest in 2016, declared an annual revenue of $9.43bn in 2017. Despite being based in Johannesburg and solely listed on the JSE, only 8% of Bidcorp revenue originates in South Africa, writes Amelia Morgenrood for IOL’s Business Report. “The group partners with responsible suppliers which allow it to bring a broad range of product solutions to suit its customers’ needs. Sustainability and food safety are major themes and adherence to industry regulations helps mitigate risk for its customers.”

4

SHOPRITE HOLDINGS

Brackenfell-based retail giant, Shoprite Holdings reported a net revenue of $9.45bn in 2017, a marginal increase over the $9.21bn earned the previous year. Shoprite blamed deflation for the meagre 6.3% growth in revenue over the last two quarters of 2017, compared to the 14% increase achieved in the same period of 2016. The company operates retail brands Shoprite, Checkers, Checkers Hyper, Usave and Hungry Lion both in and out of South Africa. With 137,775 employees on payroll as of 2017, Shoprite is the largest employer in the top 10.

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TOP 10

MTN GROUP

2

South African telecommunications company MTN Group reported a net revenue of $10.07bn in 2017. This represents a $1.5bn decrease in revenue over the previous year, continuing a trend of dwindling sales leading back five years to a high point of $16.78bn in 2012. MTN also experienced a financial loss of $177.9mn, although the company’s asset portfolio has shrunk by less than $500mn. The company hopes to move forward into 2018 by investing in cuttingedge internet services. MTN successfully launched the first 5G network in South Africa this January, achieving speeds of over 20Gbit/s. “This is the highest achieved on a mobile network in Africa,” MTN said in a statement.

SASOL

Johannesburg-based chemical manufacturer Sasol Ltd. achieve the highest net revenue of any African company in 2017, with a reported $11.79bn. While this represents a decrease in sales of over $1.5bn in comparison to 2016, Sasol Ltd expanded its asset portfolio by over $3bn, bringing the value of the company’s holdings to a ten-year high.

Sasol produces liquid fuels, chemicals and low-carbon electricity products for the domestic and global market through four subsidiary units: South African Energy Cluster, International Energy Cluster, Chemical Cluster, and Other businesses, Forbes reports.

1

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TECHNOLOGY

Driving digital democracy in South Africa With a driven digitisation journey, the Parliament of the Republic of South Africa is using technology to elevate the country to new heights Written by Laura Mullan Produced by Greg Churchill

S

OUTH AF R ICAN BUSINESSES are taking digitisation seriously. The nation’s digital revolution is gathering pace thanks to its diverse economy and impressive mobile infrastructure and as a result, the country has emerged as the most digitally mature country on the continent, according to a report

by Siemens.

Technological innovation is a strong engine of growth, but it’s not just changing the nation’s economic and business landscape — it is also helping to promote an e-democracy.

DRIVING A DIGITAL DEMOCRACY Channelling experience from both the private and public sector, and educational qualifications from amongst others Columbia University, Fort Hare and Witwatersrand Universities, Unathi Mtya, CIO of the Parliament of the Republic of South Africa, understands the inherent value technology can add to both business and the democratic process alike.

“As explained in the Inter-Parliamentary Union framework for a democratic Parliament, Parliament should be representative, transparent, accessible, accountable, and most importantly, effective,” she explains. “As CIO, I lead the ICT division in Parliament and this aims to use technology and digital tools to contribute towards a digital democracy. We use technology to promote a responsible people’s parliament and to improve the quality of life of South Africans.”

The rapid growth of South Africa’s tech industry 78

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TECHNOLOGY

The stunning view over the city lights of Cape Town

South Africa is seeing a rapid growth of tech industry

was clearly evidenced at this year’s Africomm, the largest tech-focused event in the continent. Although a record-breaking number of visitors, exhibitions and speakers may have come and gone, the event highlights the lasting impact tech is set to play in South Africa’s future.

Giving a keynote address at the event, Mtya outlined a clear blueprint for creating a winning ICT strategy. Citing the need to add value for customers, to start with the end in mind, and to truly understand customers’ needs, Mtya discussed how an ICT strategy africa.businesschief.com

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can be developed and implemented in both public and private sector.

A DRIVER OF CHANGE “Gone are the days where ICT is just a supporter,” Mtya observes.

“ICT acts both as a driver and an enabler nowadays. I’m quite passionate about how technology can add value to business. It justifies how a company should continue to invest in ICT in support of its major business objectives.”

Digitisation at the Parliament of the Republic of South Africa is, by all measures, a team effort. With an understanding of the latest technological trends, continuous investment and innovation, digitisation has played an important role in parliament for some time.

“No matter what industry you’re in, disruption has always been there,” she says. “Economies are changing, industries are changing and it’s because they’ve been disrupted. In parliament, there are several digital initiatives that are really improving the way parliament operates. This is how we’re contributing to our digital democracy.”

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MEMBER-CENTRIC APPLICATIONS Implementing a state-of-the-art app called My Parliament, Mtya and her team are helping members to be more effective in their oversight work. This will contribute towards the public’s understanding of how the South African Parliament is serving them whilst also making operations smoother and efficient for members of parliament.

“Our objective was to design, develop and implement, a membercentric application that’s capable of presenting relevant, accurate and timely information to members of parliament in their mobile devices,” comments Mtya.

TECHNOLOGY

SOUTH AFRICA IS THE MOST DIGITALLY MATURE COUNTRY ON THE CONTINENT, ACCORDING TO A REPORT BY SIEMENS The ICT division initiatives, in particular the rolling out of My Parliament App, has the honour of being supported by the ICT Focus Group, chaired by House Chairperson of National Assembly Honourable Cedric T. Frolick.

The ICT Focus Group is a joint forum of designated National Assembly (NA) and National Council of Provinces (NCOP) Members of Parliament who reflect political party spread, race, gender and national demographics.

It continuously strives to influence and support the effective use of ICT in Parliament and promotes

“ As explained in the IPU’s framework for a democratic Parliament, Parliament should be representative, transparent, accessible, accountable, and most importantly, effective” – Unathi Mtya, Chief Information Officer

initiatives towards improving public participation and public engagement.

REDUCING PAPER TRAILS Like any organisation, the parliament has core business divisions such as a finance division, a HR division, and more support divisions. By automating and modernising these processes, digitisation is helping make parliament’s workflow more responsive, capable, and accessible anytime, anywhere.

“In other words, instead of them having to deal with tonnes of material, they can securely access information africa.businesschief.com

83

with just a touch of a button on their devices,” Mtya adds. “It leverages different technology platforms to enhance the way the member performs their day-to-day duties. Through this ease of access, we’re trying to improve efficiency and it’s helping us to be more responsive as parliament of the people and to improve the quality of life of South Africans.”

On top of this, parliament is also using digitisation to encourage continuous improvement, more integration, and sharing of knowledge.

In an environment which generates an abundance of paper when creating laws, bills and legislation,

digitisation is helping to make the parliamentary process more efficient.

Parliament Television goes digital The ICT division also has a unique Broadcast & Audio Visual Technical support unit responsible for broadcasting parliamentary sittings and committee meetings. In doing so, it helps to fulfil the strategic objective of creating an institution that is responsive to the needs of the people of South Africa through public participation and involvement.

Currently parliament is ready to produce up to 16 live televised feeds to the mainstream broadcasters and with the television equipment installed

“We use technology to promote a responsible people’s parliament and to improve the quality of life of South Africans” – Unathi Mtya, Chief Information Officer

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TECHNOLOGY

it is 95% broadcast on the digital terrestrial television (DTT) platform.

TRANSFORMING THE COUNTRY Digitisation is making an affirmative change at the Parliament of the Republic of South Africa and this is subsequently catalysing change for the country at large. Digital disruption is shaking up traditional business models in South Africa and in doing so it is creating opportunities for tech entrepreneurs and startups across the country.

“Parliament needs to be digital and interactive,” explains Mtya. “Therefore, the use of technology – whether that’s making sure that there are effective tools for members and staff of parliament, or that mobile applications are enriched with userfriendly parliamentary information, or

improving recording and production, for instance – is helping us contribute to our digital and interactive parliament.”

“I think it goes without saying that digitalisation is also creating new opportunities for the country and continues to do so, especially for startups and tech entrepreneurs,” she adds.

“It’s been a game-changer. It’s helping people launch new startups anytime, anywhere. It also provides opportunities for people to solve their own problems that they understand best rather than waiting for a company somewhere else in the world to solve it. Digitisation is affecting every industry. It’s giving companies a competitive edge. If an organisation doesn’t appreciate the power of technology and digitalisation, they will be left behind.”

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Parliament of the Republic South Africa’s Unathi Mtya and her ICT division colleagues

EXECTUTIVE BIO Unathi Mtya studied Bachelor of Science at the University of Fort Hare and majored in Computer Science and Geographic Information Systems. She also completed the GIBS Executive Development Programme (SITA) as well as the Professional Certificate in CIO Practice at the University of Witwatersrand. She recently graduated with a Master of Science in Technology Management degree from Columbia University in New York.

Mtya’s career has her feet placed firmly in both the private and public sectors. Starting at First National Bank, she has followed a path that took her through business ICT at BCX. After this she joined the State Information Technology Agency (SITA) in a number of management roles, culminating to the role of CIO heading Internal IT. Here Mtya established the Integration and Interoperability division, and also led the Converged Communication division. She is now with Parliament of the Republic of South Africa as Chief Information Officer.

OVERCOMING CHALLENGES Identified as the second largest economy on the continent, South Africa has firmly cemented itself as a leader in the tech space. But with rapid technological growth, what challenges are facing the sector in the country?

“One thing I think is key is increasing access,” reflects Mtya. “In a society like South Africa, the more access that is in young people’s hands the better, because then they are able to participate in the economy, they are 86

April 2018

able to start their own organisations, they are able to create startups.

Increasing access and also lowering cost of data is something that I think could bring about a positive digital economy and promote tech literacy.”

On the path to digitisation, the South African parliament isn’t alone.

Parliaments across the globe are beginning to understand the inherent value of digitisation for the democratic process. To promote innovation, Mtya accompanied a multi-party

TECHNOLOGY

delegation which forms part of the ICT Focus Group as they travelled to Denmark, to learn more about the country’s technological innovation, including that of the Danish Parliament (Folketing). She is keen to collaborate with other parliamentary IT teams.

“Like any other industry, I think it’s important for us to see what we can learn from different governments and what they can learn from us,” she says.

“Because you face similar challenges, you can learn how the others have solved some of these challenges.

Sometimes you’re embarking on similar initiatives and you’re able to share knowledge. Done responsibility, it brings about lots of benefits.”

A TECH LEADER With a successful digital transformation underway, it seems the Parliament of the Republic South Africa is on its way to helping the government and country become a leader in the tech space.

Looking forward, the ICT division is exploring how robotics automation, artificial intelligence and machine learning can help it gain a competitive edge and improve its capability. By

“ Gone are the days where IT is just a supporter. IT acts both as a driver and an enabler nowadays” – Unathi Mtya, Chief Information Officer

leveraging such technologies, Mtya and her team are exploring ways that will strengthen the workforce and its delivery helping to bring the parliament’s vision for the future to life.

“In five years’ time I’d like to see how digitisation can help us offer a much more mature way of improving oversight and accountability in parliament,” Mtya says.

“I hope to see a much more aggressive level of openness, transparency, accessibility, and most importantly public participation. It’s about making sure that parliament becomes interactive and digital thereby relevant to the public.”

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PROMOTING FINANCIAL INCLUSION ACROSS AFRICAN BANKING

Written by Catherine Sturman Produced by Greg Churchill 91

Launched in 2013 following Econet Wireless Zimbabwe’s acquisition of TN Bank, Steward Bank is the first bank in the country to have convergence with telecommunications

H

eadquartered in Mauritius, with a foothold in South Africa, Burundi, Lesotho and Botswana, Steward Bank has revolutionised the way in which consumers engage with the banking sector.

As African nations have increasingly moved away from or skipped over traditional financial institutions, Steward Bank has developed its services in alignment with the country’s migration towards mobile platforms and digital tools. With over 1.5mn

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2013 The year Steward Bank was founded

TECHNOLOGY

customers utilising its mobile platform, EcoCash, it is clear to see that they are now placing trust in new technologies.

With up to 80% of transactions undertaken through Steward Bank’s mobile banking app, Square, customers are now also able to utilise mobile wallets to store currency, further highlighting this shift towards digitally-led financial solutions.

“Zimbabwe is a country of approximately 18mn people. About 6mn of them are hooked onto the EcoCash platform which is controlled by the Econet Group. We wanted to tap into those people who were using mobile wallets and provide them with a banking solution that would complete the loop in providing financial services,” explains Steward Bank’s Chief Executive Officer, Dr. Lance Mambondiani.

“Our idea is always to utilise data, information, and the synergies we have with Econet, and then provide financial services to those people who are hooked onto the mobile network platform.”

“We are controlling up to a quarter of the market, which gives you an idea of

where we are operating,” he continues.

“We command quite a significant share of transactions on mobile platform, where we are processing up to 30mn transactions a month.”

“If you look at what we were doing last year, we were doing approximately 4mn transactions a month. This highlights the growth that we are seeing in the business, which is extremely exponential. With transactions undertaken on mobile banking, we are the leading institution.”

WHERE FINTECH AND BANKING COLLIDE Although Steward Bank has disrupted the traditional banking sector across Africa, Mambondiani is keen to stress that the business recognises itself not as a bank, but a fintech business with a banking license. By identifying the need for African nations to develop and adopt new financial capabilities, it sought to acquire a banking license back in 2013 when it was previously the sponsor bank for EcoCash.

“We are owned by a telecom, and therefore have the capacity of reaching

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S T E WA R D B A N K

more people than our competitors,” explains Mambondiani. “We’re playing a lot more in the innovation space so that we can see what we can do to match our technological capabilities with our banking capabilities.

“Our model and main interest has always been to simplify banking and guarantee financial inclusion when providing solutions that are relevant to Africa, for instance, Zimbabwe, which is market we’re serving.”

FINANCIALLY INCLUSIVE SERVICES Providing financial solutions which are cheaper and more accessible for all has been a significant driver for Steward Bank. Its decision to introduce free banking is one such example which, although a small difference, has created an earthquake in the way in which banking institutions are seeking to attract and retain customers.

“Introducing free banking has allowed customers to open an account without incurring monthly service fees. It was a new phenomenon because every other bank was

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charging some sort of monthly fee,” explains Mambondiani.

“We also went to the Central Bank and requested that they reduce the requirements needed for opening an account. The majority of the Zimbabwe population does not necessarily live in areas where they can conveniently produce a proof of residence. Some of them are ranching, some of them mine the rural areas, and some of them mine areas where proof of residence becomes difficult to do. That was our large drive towards financial inclusion.”

With such a vast reach, Steward Bank has also worked to launch mobile services to eliminate the need for its customers to visit its branches altogether. Encompassing internet banking, mobile banking, telephone banking and wireless services, its mobile app, Square, has become an essential digital tool.

Additionally, by providing credit and insurance on mobile, the business has witnessed exponential growth.

“Square is a very popular platform in the African region because a lot of people might not necessarily have

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“We wanted to tap into those people who were using mobile wallets and provide them with a banking solution that would complete the loop in providing financial services�

DR LANCE MAMBONDIANI Steward Bank Chief Executive Officer

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access to data. All the transactions you can do on the mobile platform, you can also do on the USSD platform in Africa, which covers all the payments that you can do for schools, for utilities or just if you want to do peer to peer payments, which can also be completed through the Square app,” Mambondiani adds.

PAYMENT REVOLUTION In order to remain aggressive within the development of its financial services, Steward Bank has also strenuously worked to overhaul its payments infrastructure.

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The recent launch of its point of sales system, Kwenga, has seen Steward Bank provide payment capabilities to SMEs and roadside shops in order to address some of the country’s cash challenges and support local communities.

“One of the things we identified was that most of the payments solutions around were for post machines, or when taking payment, situated largely within big retailers and merchants,” observes Mambondiani.

“We wanted to offer a solution straight to vendors to pay for selling tomatoes on the side of the road,

FACTS • 80% of transactions are undertaken through mobile banking app, Square • Introducing free banking has allowed Steward Bank customers to open an account without incurring monthly service fees • Steward Bank’s POS System, Kwenga, provides payment capabilities to SME’s • Steward Bank’s scheme, Facebook Banking, will seek to address frequent customer queries the company will receive • ZamaZama accounts have been packaged to include all the services an emerging SME requires • Steward Bank’s Globe Trotter Card is built in partnership with Visa

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for example. We are currently allowing up to five traders to share one machine, as we’re utilising an app which we have built, where the device will simply communicate with a trader’s account and enable more people to take payments.”

UNLOCKING VALUE Customer feedback has therefore been imperative to the development of new products and services at the bank. Collaborating with taxi drivers in the creation of Kwenga, for example, has been essential in developing products and services to address gaps in the market.

“The second thing that we’re doing is offering microloans to traders who are using the portal, because we can see the value of the transactions that they are doing,” notes Mambondiani.

“We are providing loans on the basis of the transactions that are going through the platform.”

By continually looking at the way in which new technologies can transform the customer experience, Steward Bank is also looking at the advantages of artificial intelligence

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“Our model and main interest has always been to simplify banking and guarantee financial inclusion when providing solutions that are relevant to Africa and also relevant to Zimbabwe” DR LANCE MAMBONDIANI Steward Bank Chief Executive Officer

STEWARD BANK TRANSFORMS INFRASTRUCTURE WITH SMART INTEGRATION SOLUTION Steward Bank engaged with ProSolutions to create a sophisticated integration solution designed to overcome legacy challenges in bank infrastructure and transform capacity capabilities. The goal was to rapidly develop and deploy a solution that could handle the increased load in the online banking and electronic delivery channels.

THE SOLUTION Real-time transactions - bank to wallet; wallet to bank; balance enquiries and mini statements are now sent from Liquid Telecom’s Postilion Switch to a socket hosted on i-Con. The platform decodes and maps the incoming requests to an OFS message in T24, the core banking system at Steward Bank. Then, based on the response from T24, i-Con sends back a response to Liquid Telecom. And all this takes place in under half a second.

“We are also now able to roll out new services quickly and the methodology is so much more efficient. We can introduce transactions that previously we would not have been able to do without the platform in place.”

TAKUDSWA MUZVIDZWA IS PROJECTS & ENTERPRISE ARCHITECTURE MANAGER, STEWARD BANK

First Floor, ACS House, 370 Rivonia Boulevard (North Close), Rivonia, South Africa | +27 11 573 6751 | info@prosol.co.za | www.prosol.co.za

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(AI). Its scheme, Facebook Banking, launched in March, will further seek to address frequent customer queries the company will receive.

“We’re trying to make sure that banking is digitised and is made relevant to the customer. Reducing friction and moving people more towards artificial intelligence will enable us to analyse the data received and look at potential areas of improvement surrounding the customer experience,” comments Mambondiani.

“AI is definitely a big part of our strategy. Our intention is to scale our number of customers from approximately half a million to around a million by the close of this financial year.”

SME ENGAGEMENT Whilst Steward Bank works to tailor its services which are left sidelined by other financial institutions, it is also looking at developing its services towards the flourishing SME space.

The development of the company’s ZamaZama accounts has therefore been packaged to include all the

services an emerging SME would need to succeed, whilst promoting collaboration across the board.

Built out of co-creation, Steward Bank has recognised the need to provide SMEs with tailored support on a number of areas: how they can open a bank account, build a website, address the challenges around access to market, write business plans and much more. “It’s almost like banking in a box in that we provide financial literacy,” adds Mambondiani.

“We also provide web development capabilities through Mozilla.

Partnering with four other group entities within the Econet family, we looked at delivering the services which we knew SMEs wanted. We didn’t want to just give SMEs a loan, we wanted to give them the tools of understanding what a balance sheet is or how to manage their resources.”

To instil positive relationships and create a constructive learning culture, SMEs are further encouraged to utilise an incubation pod at the bank.

Operating every Friday, it enables SMEs to meet, share ideas and access vital expertise both through

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collaboration and the use of its wi-fi capabilities. However, whilst many banks would make this a service a members only venture, the service is open to all SMEs who seek to access its services and engage with like-minded individuals or groups.

THE IMPACT OF GLOBALISATION The tourism sector is impacting a number of markets – with the financial sector being no exception. Whilst Zimbabwe remains one of the biggest recipients of foreign currency, or rather of remittance from Zimbabweans who are living abroad, Steward Bank has therefore developed its services

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to cater to this growing market.

“We wanted to provide a solution for people to travel outside of the country and still have access to some means of payment. We’ve partnered with Visa and introduced the pre-paid Globe Trotter Card. It allows a customer to load their own value on it and utilise the credit,” says Mambondiani.

“You don’t need to be a Steward Bank customer, and can access it through any Econet shop or Econet branch. In a bid to target up to 300,000 customers, we are now also distributing the card through some other retailers and supermarkets.”

Additionally, its partnership with

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“We’re playing a lot more in the innovation space so that we can see what we can do to match our technological capabilities with our banking capabilities” DR LANCE MAMBONDIANI Steward Bank Chief Executive Officer

World Remit has seen the bank deliver solutions to up to 4mn Zimbabwean citizens who are situated outside the country. By enabling them to tap into their remittance, they will remain a significant contributor to the country’s foreign currency inflow.

“World Remit is a very critical partner to us in targeting a number of Zimbabweans in various markets,” explains Mambondiani.

“World Remit is operating

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in a number of countries, but also terminates into a number of different countries. So, Zimbabweans can, in the UK for example, utilise World Remit to send money back home. And we use our last mile to make sure that money reaches to beneficiary much quicker.”

In order to further increase its reach, money will either terminate into a Steward Bank account, which will then be collected at one of its branches, or it can be terminated into an EcoCash wallet, which automatically gives Steward Bank access to approximately

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5mn customers in Zimbabwe.

“I think that is the appeal for us, that anybody who is using World Remit can use either our EcoCash platform or they use the Steward Bank’s platforms and engines,” he adds.

INCREASED ACCESSIBILITY Through overhauling its entire delivery network and its core banking systems, Steward Bank has worked to build a fintech structure that has the capacity to address and serve its customers.

“We’re looking into the region to see what we can do to further expand

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digital banking services across Africa.

One of the things that we’ve identified is that the challenges in Africa or in Europe are almost the same,” comments Mambondiani. “We are currently in the process of looking at partnerships across Africa, in the form of establishing green fields or maybe a joint venture (JV) with various financial institutions in other African countries.

“We’re a digital bank, and want to deliver banking in a manner which is cheaper, easier and a lot more accessible. Our focus in doing so is using mobile as the centre

“Our intention is to scale our number of customers from approximately half a million to around a million by the close of this financial year”

of our product delivery. We are only one of three institutions that we know in the world that is fully owned by an MNO, only one of two banks in the world. Others are in the form of a JV or partnership.

“We’ve got a unique capacity of looking at banking differently and delivering it in a way that is relevant to Africa, reducing the cost of delivery because we are becoming a lot more digital.

“Lastly, we are interested in building a platform business, a platform banking system and structure, an open banking platform which allows other partners to plug into what we’re doing for the benefit of our customers.

“Our intention is to fully deepen financial inclusion and, therefore, we are providing solutions which are relevant to every Zimbabwean or financial access to the mainstream banking sector in a market which was previously excluded.”

DR LANCE MAMBONDIANI Steward Bank Chief Executive Officer

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Disrupting Zimbabwe’s banking sector

Through technological prowess and collaboration with fintechs, FBC bank is meeting the demands of Zimbabwean consumers Written by Laura Mullan Produced by Greg Churchill

FBC BANK LIMITED

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n no industry can digital transformation be seen better than in the banking sector.

Swapping old cash for mobile wallets and e-payments, customers have increasingly embraced the simplicity and ease that digital banking brings and, in Africa, it is no secret that the continent’s high mobile phone penetration makes the region fertile for such a change.

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Although it celebrated its 20th anniversary last year, FBC bank is a financial institution that has its feet firmly placed in the future.

Banking in a digital age A frontrunner in Zimbabwe’s digital banking landscape, locally-owned FBC is setting a precedent that digital and mobile banking is a critical chapter in the country’s future.

Zimbabwe’s banking market is evolving rapidly. The soaring growth of mobile financial services, specifically mobile wallets, has taken hold in the region as more and more consumers rely on their mobile phones.

Not only does this offer a more streamlined model of banking, it is also accelerating financial inclusion.

The African country has also uniquely switched over to a

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SECURE CARD SOLUTIONS Cardpro is a well-established, preferred partner for plastic card solutions to various institutions in Zimbabwe and its surroundings. The company has a clear ethos of integrity, reliability and transparency reflected in the dedicated and knowledgeable team of staff.

Since the early 90s, the company has implemented various projects focused on the Datacard range of personalisation systems. Cardpro collaborates with customers to create high-tech secure financial card programs, as well as secure ID programs for government, education, corporate security and many other secure card markets.

This is complemented by high-tech plastic card manufacture which has been operational since 2000. Cardpro manufactures ATM and cheque cards, Loyalty cards for corporate retail, personalised medical aid cards as well as student ID cards for schools and universities.

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multi-currency system – using the South African Rand, the US dollar, Euro and more. For the local economy, using this system for everyday transactions can be understandably difficult.

With the rise of mobile use and an unconventional currency model, Agrippa Mugwagwa, Executive Director of Group Retail Banking & e-commerce, says that this is where FBC’s digital services offer a transparent solution.

“We’ve seen an upsurge in terms of usage of mobile banking, internet banking, and mobile wallets in the market,” he explains. “In fact, last year 96% of around $98bn, went through electronic platforms, according to the Reserve Bank of Zimbabwe.

“This change in the market presented us an opportunity to become an innovative and dynamic financial sector player,” he continues. “Now, everybody wants bank cards.

Everybody wants mobile banking and mobile wallets.

It gives them the flexibility they Agrippa G R Mugwagwa need to transact across the Executive Director Retail & Ecommerce

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market and, as a bank, we adopted open banking early. We foresaw the migration of payments from physical cash to electronic and have embraced the shift to digital banking.”

Collaboration with fintechs Open banking is the next step in the digital banking revolution. By shaking up the traditional, insular

nature of banking, this system allows banks to collaborate and learn from fintechs in the market.

In Zimbabwe, FBC is keen to leverage this change to transform the banking landscape and, more importantly, enhance its customers’ experience.

Keen to tap into this digital shift, FBC is collaborating closely

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with leading fintech companies to offer disruptive digital technologies such as application programme interfaces (APIs).

“At FBC we are focusing on opening up our ecosystems,” Mugwawga explains. “As banks, we are designed more for process and stability. We don’t move with speed, but this is something which fintechs can offer.

They have speed, agility and expertise around data. They’ve also got a freespirited approach to innovation. This move to open banking facilitates integration with these third parties.

At FBC, we collaborate a lot and this is mutually beneficial for the bank, the fintechs and customers alike.”

“This change in the market presented us an opportunity to become an innovative and dynamic financial sector player” AGRIPPA MUGWAGWA, EXECUTIVE DIRECTOR, GROUP RETAIL BANKING & E-COMMERCE

From bricks-and-mortar to online Embracing the open banking ecosystem is one matter, but FBC is also making waves in the sector by moving away from traditional brick-and-mortar branches to become a digitally-engaged, digitally-focused brand.

“We are moving slowly away

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from the brick-and-mortar model because of the change in the demographic, whereby millennials or digital natives are becoming the dominant consumer of financial services,” says Mugwawga.

“They don’t have much interest in using brick-and-mortar models,” he adds. “They are quite happy to use their devices to engage and transact with the bank. They prefer conversational banking via

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instant messaging. Hence, we are also looking at new innovations around artificial intelligence and around chatbots, for example.

We are more integrated into our consumers’ lifestyle. It’s not just about providing functionality. It’s about providing an experience.”

To facilitate this transformation, FBC has embraced the agent banking model and works closely with its partners – dedicated distributors

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“We are moving slowly away from the brickand-mortar model because of the change in the demographic, whereby millennials or digital natives are becoming the dominant consumer of financial services” AGRIPPA MUGWAGWA, EXECUTIVE DIRECTOR, GROUP RETAIL BANKING & E-COMMERCE

for its financial services – who sell its cards, insurance products, transaction and payments.

“This also means we now have a better reach,” Mugwawga highlights, “especially in some of the places where it would have been viable for us to set up a branch.”

Putting the customer first In many aspects, FBC shrewdly foresaw the shift towards digital banking long before some of its competitors. As such, the company has tirelessly worked to revamp its technologies, deploy point of

President Agrippa Mugwagwa hands over Overall Superbrand 2017 award to Kudzai Mpunzwana of Nyaradzo Funeral Group

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sale infrastructure and integrated its bank with mobile wallets.

With technological ingenuity, FBC is accelerating its digital banking and e-commerce portfolio to offer services like no other.

However, amidst this impressive transformation, one thing has remained the same – the company’s commitment to its customers.

“What has changed the most and what has been most defining

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about us diverting technology is the level of customer engagement,” comments Mugwagwa. “Through multiple platforms we have availed the customer with access to the bank. We have built a 24-hour call centre which uses channels such as email, SMS, web chats, mobile and even WhatsApp to engage with our customers.

“We’ve ensured that our response times are timely and we’re also looking

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at embracing the new technologies to even make our platforms even more efficient. So, if you look at the volume and traffic of engagement that has come through all these multiple platforms, it is a rapid increase from what we used to have 10 years ago.

“The customer is confident that the bank has got their back because we are there to support them, meet their requirements, and respond to their queries in a timely

manner when issues arise,” he adds.

“We’ve also embraced social media in terms of customer engagement, and because of this I think the customer feels now they’ve got a bigger voice.”

Inclusive, innovative, disruptive At FBC, customer engagement has remained at the forefront of its agenda and, therefore, the Zimbabwe bank is also keen to include

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customers who have often been forgotten by financial institutions.

“Financial inclusion is an important issue at FBC,” Mugwawga says. “As a result, our bank has set up an SME division that addresses the needs and requirements of smaller businesses.

We are also working to support specific demographics such as women and young people so that they can enter the mainstream economy through advisor support, an extension of credit, or other activities that help them realise their entrepreneurial dreams. On top of that, the use of our various electronic channels that have moved banking from the urban centres and opened it up to the countryside.”

The Zimbabwean economy has undergone some difficult times but, as a result, FBC has adapted and evolved to become one of the most innovative and disruptive banks in the market.

The Zimbabwean bank has astutely positioned itself as a market leader in digital service and e-commerce, and as inward investment into the country grows, it seems FBC is set to continue on its upward trajectory.

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Agrippa G.R Mugwagwa Executive Director (Retail Banking & e-Commerce FBC Bank, Zimbabwe) Mugwagwa is has over 20 years financial services experience and is an Executive Director – Retail Banking & e-Commerce with FBC Bank in Zimbabwe. Aside of primary distribution he manages innovation and the migration of banking and payments to emerging digital platforms. He is a leading expert and thought leader in Zimbabwe’s financial services industry. A keen digital marketer, Mugwagwa has been closely involved with the mobile banking ecosystem evolution in Zimbabwe and writes and presents papers regularly on the subject. He holds a business degree from the University of Zimbabwe, a Master in Business Leadership from UNISA, is a Project Management Professional (PMP®) as well as a Chartered Marketer (UK) amongst various other qualifications.

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Promoting fairness across the African banking industry

WRITTEN BY CATHERINE STURMAN PRODUCED BY GREG CHURCHILL

The Bank of Namibia has placed significant investment in implementing digital solutions to extend customer reach

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he African banking market has become a hotbed of innovation. In a bid to promote financial inclusivity, enable simplification and boost accessibility, Namibia is increasingly embracing digital tools. In many cases, digital platforms and apps are continually favoured over traditional retail banking services.

Established in 1990 from the South Africa Reserve Bank following the country’s independence, the Bank of Namibia (BoN) remains unique in its position as the sole institution able to print currency and works with local governments in the public sector.

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With five BoN commercial banks in Namibia – Bank Windhoek, First National Bank, Standard Bank, Nedbank and Small and Medium Enterprises Bank, BoN adheres to global standards, and is investing in financial solutions which provide increased accessibility and fairness across the financial sector at large.

Providing enhanced accessibility Following on from the establishment of the e-Government project in Namibia, BoN has worked to implement new, customerfocused digital tools to remain abreast

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Namibia is increasingly embracing digital tools, platforms and apps over traditional retail banking services

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of issues within fintech and regtech and has adapted its services in alignment with service innovations worldwide to support its citizens.

Incorporating five key areas – policies and legalities, access to information, local content, capacity and willingness, the project has enabled BoN to also implement digital tools to enhance its security backbone whilst it adopts new ways of doing business.

Namibia has a sparse population of 3mn citizens but harnesses a significant landmass for the banking sector to contend with.

Whilst many businesses remain situated in its capital city Windhoek, businesses located in nearby towns have presented a number of challenges for the bank to reach those located in rural areas.

With a vision to be a centre of excellence, its investment in new digital tools has therefore granted the bank the ability to obtain economic data and provide flexibility, accessibility, and the delivery of value-added financial services across its banking platforms.

Additionally, whilst the bank remains in the regulatory space, it will consistently learn from other central banks and work alongside the International Monetary Fund (IMF) and The African Development Bank (AfDB), harnessing essential cloud technologies for increased flexibility, scalability and the reduction in risk across its operations.

However, with new digital tools and currencies entering the financial market, the bank has worked to educate its citizens on the risks surrounding virtual currencies.

New financial currencies, such as bitcoin, are presently not regulated or recognised as legal tender in Namibia due to its market volatility.

To this end, the bank has also released a paper regarding the distinction between

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cryptocurrencies and the use of e-money, which has been accepted as a form of currency in Namibia.

Community development Training and development is an area of particular focus for BoN, and a major share of its corporate social responsibilities currently sits within the education space. Since 1998, the bank has provided annual bursaries to undergraduates in areas such as IT, research, accounting and economics – all areas which the bank believes are crucial to Namibia’s development.

The bank also provides a comprehensive postgraduate bursary, where graduates can approach the bank for funding. Additionally, the bank houses a PhD programme, while federal

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doctorate-level studies are also funded by the bank.

Most importantly for the bank, its Graduate Accelerated Programme (GAP) works to support students who have finalised their studies and are looking for a role within the banking sector. Building capacity for the bank and the country, BoN

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works to support these students by granting exposure and experience across several departments on a rotational basis. Upon completing an 18-month programme at the bank, applicants are able to apply for roles within the central bank or gain a job within the financial market in Namibia.

Further support However, the bank’s efforts within the educational space are not solely limited to the graduate sector. Partnering with a number of high learning institutions has seen BoN award prizes to the best final year students at Institute of Bankers in Namibia, the University of Namibia and the Polytechnic of Namibia within economics, finance and banking subjects.

As part of its public education programme, the bank also hosts a National High School competition bi-annually. Endorsed by the Ministry of Education, all secondary schools in Namibia are invited to participate, with Namibia harnesses a significant prizes awarded to winning teams landmass for the or schools in the Bank of Namibia banking sector National High School Competition. to contend with Namibia will continue to embrace new digital tools and services across its financial industry, one which will drive down costs further for its citizens. With a predicted growth rate set to rise from 1.4% to 2.1 % in 2018 and 2019 respectively, it is clear that the country is set to go from strength to strength.

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SYRAH RESOURCES,

GRAPHITE AND THE RISE OF

ELECTRIC VEHICLES Quickly moving to be the leading global producer of high quality graphite, Syrah Resources aims to supply traditional industrial and emerging technology markets

Written by Catherine Sturman Produced by Arron Rampling

Dawn breaking over Syrah Resource’s Balama plant in Mozambique

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HE ELECT R IC VEHICLE (EV) market is growing apace, leading to a growing demand for raw and processed materials needed to drive future technologies. Forecast to more than quadruple in size between 2017 and 2025, the market for lithium-ion batteries has led to the launch of new mining projects to cater to the accelerated demand for natural graphite, an essential element required within the creation of EVs. Situated in Cabo Delgado province of northern Mozambique, the Balama Operation is the largest natural graphite project in the world, with over 50 years mine life, and an expected market share of around 40% by 2020.

With more and more electric vehicles sold each year, and larger batteries required in these vehicles to increase range, CEO of Syrah Resources, Shaun Verner, predicts the natural graphite market will grow by an average of 12% per annum to 2025.

“We’re extremely excited to be able to support an industry which is focused on emissions reduction globally and also efficiency of energy use. We feel really motivated by selling into that industry,” he says.

“There’s a very strong traditional graphite industry built up around steel-making, and that is still an important part of our business, but the majority of growth over the coming decade is driven by lithium- ion batteries.”

THE BALAMA GRAPHITE OPERATION Exploration of the Balama site in Mozambique commenced in 2011, and Syrah Resources broke first ground in 2015.

Construction was safely completed in 2017.

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Natural graphite is an essential component of electric vehicle batteries

Syrah staff at the Balama plant

Employees

2007 3,000 The year

Tonnes

The amount of 90% of whom in which Syrah graphite Syrah are Mozambican Resourses was Resources produced nationals founded in January 2018 africa.businesschief.com

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MINING

“The board took the decision in 2015 to commence building under an owners’ team what was, and still is, the world’s largest graphite operation. It’s seven times larger than the next largest natural graphite operation in the world,” notes Verner.

“It was clearly an aggressive investment decision based on the very attractive demand outlook for graphite

underway at Balama with the company focused on plant optimisation. Syrah completed construction at the end of 2017, with capital costs totaling US$215mn. The operation is targeting at least 160,000-180,000 tonnes per annum this year, before ramping up to its goal to reach 350,000 tonnes per annum dependent on market demand.

“Right now, we are in the ‘ramp up’

“At the forefront of our minds is the transparency and reliability of the Balama Graphite Operation, combined with a focus on exceeding the standards of customers in the battery supply chain” – Shaun Verner, CEO, Syrah Resources use in electric vehicles and lithium-ion batteries.”

“The construction took a little longer than originally envisaged. The flow sheet for the operation was adjusted through the period of construction based on product testing feedback and further refinement of processing to achieve higher grades.”

With first production in November 2017, ramp-up activity is now fully

phase. Our first production of coarse flake graphite was in November 2017, and first fine flake graphite in December 2017. Our ramp up process will continue throughout 2018, where we aim to be at 70% capacity by the end of the year,” adds Verner.

“Another goal of ours is to achieve a unit cost of less than $400 a tonne by the end of 2018. Long term, we want to approach $300 a tonne in cost.” africa.businesschief.com

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Throughout its development in Mozambique, the company has adhered to international governance and compliance standards and has built processes and systems with this in mind. It has also received all the required regulatory approvals relating to its operations in the country, including an initial 25-year Mining Concession, with a 25-year extension available.

Additionally, Syrah Resources remains committed to the sustainability of its operations and has aligned with international standards across a number of areas including people, health and safety, community and environment.

Safety remains the highest priority and the company’s commitment is reflected in the outstanding safety performance record at Balama, ending the 2017 year with a total recordable injury frequency rate (TRIFR) of 0.8, a significant improvement over 2016.

The Environmental Monitoring Programme (EMP) established by the company includes measurement of surface and ground water quality, ambient noise, dust levels and air quality to ensure a wholistic approach is taken to mitigate risk to the host 132

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Syrah’s EMP ensures minimal impact to the local community and environment

Balama plant thickener

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Dr. Christina Lampe-Onnerud (l) and Shaun Verner (r) Syrah’s EMP includes the measurement of water quality

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• The Balama Graphite Operation will support the ongoing demand for natural graphite, an essential element in the development of EVs • E xploration of the Balama site commenced in 2011. Construction completed in 2017.

• Syrah completed first production at the end of 2017, with capital costs totaling $215mn.

• Balama’s production goal is to reach 350,000 tonnes per annum within two years.

• First production of coarse flake graphite (Nov 2017) and first fine flake graphite (Dec 2017) • Its Environmental Monitoring Programme (EMP) ensures that the company mitigates and reduces any impact on the surroundings throughout the project’s lifecycle • 90% of its workforce are Mozambican nationals with 50% residing in the eight (8) Host Communities.

• Syrah Resources is building the Balama Training Centre which deliver training to 500 local people in the next five years.

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communities and to minimise the impact to the local environment.

Approximately 90% of Syrah Resources workforce are Mozambican nationals

STAKEHOLDER ENGAGEMENT Verner is keen to stress the importance of the Balama Graphite Operation, not just within the lithium-ion battery and traditional graphite markets, but also to the local community. Approximately 90% of the company’s workforce are Mozambican nationals, with 50% sourced from the eight local host communities, with immediate plans to increase these numbers further.

“One of our initial goals is to see our employees successfully develop in their roles and directly contribute to ramp-up efforts. We’re now seeing that occur and have also started to observe some of the economic benefits associated with employment and local procurement flow through to the local communities,” he explains.

Syrah Resources has partnered with the local communities from the beginning of the resettlement process and has closely aligned its activities with applicable international standards, at all stages, to ensure the company maintains genuine credible relationships

with its stakeholders founded on mutual respect.

The company has also strived to provide full transparency to its downstream customers and promote visibility throughout its supply chain regarding its production capabilities and its commitment to the ethical supply of graphite to the global market.

A clear example of this is the recent work performed in partnership with the provincial government and the local communities to rehabilitate the Chipembe Irrigation Scheme. This africa.businesschief.com

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work included repairing the valve system on the Chipembe Dam to stop the uncontrolled discharge of 50,000 cubic litres of water per day, rehabilitating 4.5km of irrigation channels and the preparation and cultivation of 600 hectares of land for agricultural use.

“It’s been at the forefront of our minds to ensure that the benefits that the Balama Graphite Operation can bring to the local community are visible, and that we meet the standards held by customers in the battery supply chain.

More than that however, it is aligned with our values and it is simply is the right thing to do and the right thing for our business,” adds Verner.

TRAINING AND DEVELOPMENT The Balama Graphite Operation is playing a pivotal role in driving local economic development in the Balama District through a strong commitment to local employment. Syrah Resources is also focused on training and development, and health promotion as part of its local development agreement (LDA).

“In addition to the extensive onsite training and development work already undertaken, we are building a training 138

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centre in Balama. This will provide a curriculum that not only provides skills-based training relevant for our operation, but also looks at a number of other curriculum items for general development and trade skills which will help to establish livelihoods in the local communities that are complementary to, yet separate from, the Balama Graphite Operation,” explains Verner.

Whilst many companies have supported Syrah Resources, its partnership with Tayanna provides a great example of what the company wishes to achieve to fully support employees with the required training.

“Tayanna are our mining contractor, but they have also taken a long-term approach through the way that they have worked with us at Balama,” comments Verner.

“Right from the very start, they were committed to source employees from the local community. We have a number of truck drivers and mobile equipment operators who have been trained for over 12 months before starting operations, some having never had even a driver’s license before.

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“ We are building the Balama Training Centre which will see a minimum of 500 people from the local communities trained in mechanical and electrical skills in the next five years.

The aim of this facility is to create local livelihoods that are complementary to, yet separate from, the Balama Graphite Operation” – Shaun Verner, CEO, Syrah Resources

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effort from Tayanna, where they have sourced as much of their labour as they could from the local communities to ensure that level of support,” he continues.

“With that goodwill and big commitment to the community, both from us as the project developer and operator, and from a number of our contractors, we feel that we’ve set up relationships locally really well for the future.”

Such partnerships remain essential for Syrah Resources to operate in Mozambique, where it will aim to employ further national citizens throughout the life of the project.

“We would also like to see the suppliers of services and goods to the Balama Graphite Operation continue to develop in the local community so we can increase local content in our sourcing, and we can start to build a vibrant services community in the Balama district,” notes Verner.

MAINTAINING ITS POSITION IN THE MARKET The company’s long-term vision to become the premier supplier of natural, Natural graphite africa.businesschief.com

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“ We are now in the process of developing a downstream processing facility in Louisiana, which will take materials from Balama and undertake value-added processing before the material is sold into the lithium-ion battery markets” – Shaun Verner, CEO, Syrah Resources

Part of the Balama team

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high-quality graphite globally from the Balama Graphite Operation, both in fines and flake, is fully in motion. In January 2018, the company produced 3,000 tonnes of graphite, leading to a rise in sales across geographies, where demand has grown rapidly. It has also set to become the first major importer of natural graphite into China.

“We are now in the process of developing a downstream processing facility in Louisiana, which will take materials from Balama and undertake

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value-added processing before the material is sold into the lithium-ion battery markets,” says Verner.

“We aim to sell our materials direct to other battery anode material producers, but we will also produce that higherquality battery anode material from Louisiana. Our longer-term vision is to sell that high-quality product to all relevant market segments and geographies over the coming years.”

Whilst the technology and end-user market in the lithium-ion battery and electric vehicle space continues to evolve, Syrah Resources is using the opportunity to further develop and transform its technology capabilities, partnering with external service providers to ensure that it stays at the forefront of market developments.

“We will also continue our focus on local stakeholder and government relationships in both Mozambique and the USA, ensuring that we add value to the local communities where we work, as this underpins our license to operate,” concludes Verner.

Syrah Resources Limited (ASX code: SYR) is an Australianbased industrial minerals and technology company.

Constructing and commissioning activities of the Balama Graphite Project (Balama) in Mozambique are essentially complete. Syrah produced its first saleable f lake graphite product in November 2017 and transitioned into operations on 1 January 2018.

Balama will be the leading global producer of high purity graphite.

Balama production is targeted to supply traditional industrial graphite markets and emerging technology markets. Syrah is also developing a downstream Battery Anode Material plant in Louisiana, USA. Syrah has successfully completed extensive product certification test work with several major battery producers for the use of Balama spherical graphite in the anode of lithium ion batteries. For further information, visit www.syrahresources.com.au

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LHD operating underground on the Chibuluma South Mine

UNEARTHING THE POTENTIAL OF THE COPPER-COBALT MARKET

WRITTEN BY LAURA MULLAN PRODUCED BY ARRON RAMPLING

Balancing innovation and sustainability, METOREX’s wide-ranging mining portfolio is going from strength to strength

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ith its distinctive greygreen sheen, one mineral in particular is taking the mining world by storm. From phone batteries to electric cars, cobalt is becoming an invaluable necessity for our ever-digital world and, in the sunscorched, rain drenched south of the Democratic Republic of the Congo (DRC), Metorex is set to tap into what Tim Williams, the company’s Mineral Resource Management Executive, describes as the “heartland of global cobalt and African copper production”.

Metorex has steadily continued on an upward trajectory since it was first founded in 1975, but the African mining firm’s achievements didn’t come easily. The company’s successes are, by all accounts, a testament to its meticulous approach and diligent commitment to efficiency.

A STORY OF GROWTH With assets in the DRC and Zambia amongst a growing portfolio, Metorex

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has weathered the global financial crisis, fluctuating mineral prices, and a series of management changes in the last 10 years. In doing so, it has reassessed its strategy and continually learned from its experiences to become a recognised player in the African copper-cobalt mining space.

Following its takeover by Chinese mining company Jinchuan in 2012, and the reverse listing of the Metorex assets into Jinchuan Group International Resources Co. Ltd on the Hong Kong Stock Exchange, Metorex has also seen a new management team put in place, which has helped the company focus on its ambitious vision: to become a competitive and sustainable base metals mining company which will act as the growth platform for the Jinchuan Group in Africa.

“We have consistently picked ourselves up by our bootlaces and positioned the company for growth,” observes Williams. “When the global

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EXECUTIVE BIO

TIM WILLIAMS BSc (Hons) (Geology), PrSciNat (SACNASP), Fellow (SAIMM) Tim Williams is a geologist with 27 years’ experience in exploration, resource estimation and mining geology in gold and base metals throughout West, Central and East Africa. Prior to joining Metorex, he worked in various roles for Anglo American, Konkola Copper Mines and TEAL Mining and Exploration.

Williams joined Metorex in January 2007 and took responsibility for Group Mineral Resources Management in May 2009, covering exploration, mineral resource and reserve estimation, and compliance with the SAMREC/ JORC mineral resource reporting code. Williams is also involved in Business Development for the Metorex Group and identifies and follows up on new mineral project opportunities across Africa. He is both a member of the Metorex Executive and Technical Executive Committees.

METOREX

WE’RE ALWAYS ON THE LOOKOUT FOR NEW OPPORTUNITIES TIM WILLIAMS Mineral Resource Management Executive, Metorex

financial crash hit in 2009, the Ruashi Project was nearing completion but it had overrun its budget. The banks were decidedly risk averse and were not keen to provide additional funding and operations became significantly tighter as the copper price tested lows of $3,600/t Cu. “We went into a regrouping period of about three years where we focused on strengthening the balance sheet and selling non-core assets in South Africa to set up Metorex as a copper-cobalt focused

Geologists inspecting core in the Musonoi Project coreyard.

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Geologists Dr Yulong Tian (left) and Celestin Lubale (right) presenting Musonoi core to Jinchuan Group CEO and President, Mr Dexin Chen (centre)

business. We also strived to drive efficiencies in the remaining operations in Zambia and DRC, culminating in the acquisition of Metorex by the Jinchuan Group for US$1.3bn, in what was the largest inward investment into South Africa in 2012.

Metorex’s focus on copper and cobalt in the last decade has been, without a doubt, the reason for our continued growth trajectory,” Williams continues. “Cobalt plays an increasingly important role in this strategy, and with cobalt prices over US$40/lb (or US$91,000/t) we will continue to monitor the

growth of electric vehicles and use of cobalt in lithium ion battery technologies very closely.

“China has arguably made the most significant commitment to reducing pollution in its major cities and the Chinese EV market is expected to grow from 700,000 units in 2017 to more than a million units in 2018.

“As a nation, it has set tight targets to achieve this objective, and is actively driving the application of these new age technologies, whilst de-incentivising sales of internal combustion engine motor vehicles.

Our parent company, Jinchuan

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METOREX Group, is the second largest producer of cobalt products for the battery market in China and this puts us in a very favourable position to create depth in our production pipeline.”

THE MUSONOI PROJECT Located on the northern outskirts of Kolwezi – what Williams describes as the “cobalt capital” of the world – Musonoi is the latest development project in Metorex’s portfolio.

Adjacent to the Kamoto and KOV mines operated by Katanga Mining Limited, and the Roan Tailings Retreatment (RTR) Project owned by Eurasia Resources Group, the Musonoi Project has been extensively drilled and has a SAMREC/JORC compliant mineral resource of 32.1mn tonnes at a grade of 2.8% copper and 0.9% cobalt across the Measured, Indicated and Inferred categories. The resource has been extensively drilled, with M&I

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The Year that METOREX was Founded The Kinsenda project currently ranking as one of the world’s highest-grade copper deposits with declared mineral resources of 20.7mn tonnes at a grade of 5.5% copper The Musonoi project has a declared mineral resource of 32.1mn tonnes at a grade of 2.8% copper and 0.9% cobalt.

The Chibuluma mine in Zambia, which began production in 1955, currently produces around 10,000 tonnes of copper a year.

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resources constituting 83% of the resource base.

A Techno-Economic Update to the Feasibility Study was completed by Worley Parsons in Johannesburg in November 2017, and has been approved by Metorex and its partner Gecamines.

The Front End Engineering Design (FEED) phase has been awarded to China ENFI Engineering Corporation (ENFI), based in Beijing, with completion scheduled for Q4-2018. The project’s construction should commence in early 2019.

Once in production as an underground mine, the Musonoi project will produce roughly 30,000 tonnes of copper and 4,800 tonnes of cobalt in concentrate per annum, says Williams.

The financial viability of the Musonoi Project has been improved in the latest feasibility study iteration by mining oxide ore from the upper levels of the underground operation in the early years, to be treated through a low-cost leach plant producing a coppercobalt carbonate intermediate product.

Mining of sulphide ores will progressively ramp up as the project is developed deeper, with copper and cobalt to be recovered as a combined copper-cobalt sulphide concentrate. At this stage, the project has been conceived on the basis that both oxide and sulphide concentrates will be transported by road and rail to Lubumbashi and treated at a new roaster facility to be constructed at the company’s Ruashi mine.

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METOREX

WE HAVE CONSISTENTLY PICKED OURSELVES UP BY OUR BOOTLACES AND POSITIONED THE COMPANY FOR GROWTTH TIM WILLIAMS Mineral Resource Management Executive, Metorex

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Chibuluma South concentrator plant at night

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METOREX A ‘MODEL MINE’ On top of this latest endeavour, Metorex also owns three operating mines through a number of operating subsidiaries in Zambia and DRC. Chibuluma Mines plc in Zambia was established in 1955 and bought

by Metorex in 1996 as its first operating mine in Central Africa, and produced 10,962 tonnes of copper in concentrate from the Chibuluma South mine in 2017.

Often referred to as a ‘model mine’ operation in Zambia, the Chibuluma operation clearly underlines Metorex’s success story. Boasting significantly high copper grades, Chibuluma has been integral to the company’s success; however, now that the mine is in its final years, Metorex is keen to explore new opportunities in the region.

“Chibuluma is our only operating asset in Zambia at the moment,” says Williams. “For many years it’s been a steady producer and important contributor to the group’s cashflow but unfortunately all good things come to an end.

“Production from the Chibuluma

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South mine is winding down, and mining activities in the next three to four years will focus on recovery of the crown pillar at Chibuluma South, and mining of the lower grade Chifupu deposit which is 1.7km to the south of Chibuluma South.

“We are actively looking for new projects in Zambia and that’s certainly part of my role – looking at new acquisition targets and potential synergies that may exist with other operators. We’re always on the lookout for new opportunities.”

Mining operations in the Ruashi open pit

STRONG YIELDS In a parallel story of success, Williams highlights the strong performance of Metorex’s Ruashi mine. Ruashi Mining SA operates the Ruashi copper-cobalt open pit on the outskirts of Lubumbashi in the Haut Katanga province in the DRC, and produced 31,546 tonnes of Cu cathode and 4,915 tonnes of cobalt contained in an intermediate cobalt hydroxide product in 2017.

“We’ve had a great start to 2018 with production at Ruashi reaching a record cobalt production tonnage in January 2018 of over 600 tonnes of contained cobalt for the month. This has mainly been through processing our high-grade cobalt stockpile, of which we have about 900,000 tonnes on surface running at a grade of approximately 0.7-0.8% cobalt,” he says.

Expecting to finish mining Ruashi’s oxide open pits within the next few years, Metorex has now turned its attention to the region’s sulphide deposits with

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METOREX

METOREX’S FOCUS ON COPPER AND COBALT IN THE LAST DECADE HAS BEEN, WITHOUT A DOUBT, THE REASON FOR OUR CONTINUED GROWTH TRAJECTORY TIM WILLIAMS Mineral Resource Management Executive, Metorex

Final cobalt hydroxide product ready for shipping to Jinchuan’s cobalt plant in Lanzhou, China for processing into cobalt sulphates and other battery products

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the Ruashi III expansion project.

“We are in the process of evaluating the process flowsheet at our Ruashi operation where the intention is to add a sulphide concentrator, roaster and tie-in to the existing base metal refinery,” explains Williams. “This will allow us to not only expand our current open pit mining operation and process sulphides from both the Ruashi and the Musonoi Project, but it will also allow us to purchase third party sulphide ores to produce a copper-cobalt concentrate, and ultimately take that through the roaster to create copper cathode and cobalt hydroxide as a final product.”

COMMERCIAL PRODUCTION As well as keeping its finger on the booming cobalt market, Metorex has successfully brought the high grade Kinsenda copper mine into commercial production during 2017. Operated by Kinsenda Copper Company SARL (KICC), and located at the northern end of the Pedicle region in Haut Katanga Province close to the border town of Kasumbalesa, the Kinsenda underground mine recently achieved

nameplate capacity of 50,000 tonnes per month following completion of the project construction and build-up phase. Commissioning of the differential flotation concentrator plant, designed and built by DRA, went very smoothly with only minor debottlenecking required during 2017.

The Kinsenda mine ranks as one of the world’s highest-grade copper deposits with a declared mineral resource of 20.7mn tonnes at a grade of 5.5% copper. The mine is currently producing a high grade copper concentrate of over 50% contained copper, which is being transported across the border into Zambia by road and rail, and treated at Chambishi Copper Smelter (CCS) and at the Konkola Copper Mines (KCM) smelter in Chingola.

KICC is also evaluating the viability of mining the lower grade, bulk tonnage Lubembe deposit which is located 30km south of Kinsenda, and a revised feasibility study is expected to be completed in 2018.

CONTINUOUS IMPROVEMENT Despite its promising yields, Metorex

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METOREX is not one to rest on its laurels and continues to improve the operating efficiencies on its operations.

“As you can imagine, one of the big problems we have mining in the DRC is the logistics of moving large volumes of inputs into, and finished products out of the DRC ,” Williams says. “In recent months, there have been lengthy delays in moving trucks both in and out from the Kinsenda mine to the various smelters that we’ve contracted to in Zambia and this can be time-consuming and costly. We’re therefore looking at a number of transport options, and we feel that rail transport has the largest chance of success, so that’s something we’re exploring right now.”

Dried cobalt hydroxide bagging area in the Ruashi cobalt drying plant 158

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ABOVE AND BEYOND In the mining industry, navigating the challenges of safety is a mammoth task, but it is one which Metorex has taken in its stride. Metorex adopted the Isometrix web-based reporting system in 2010, and the company records every single incident, whether it’s a reportable incident, a lost time incident or a non-lost time incident.

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600,000tpa differential flotation oxide-sulphide flotation plant built by DRA at Kinsenda mine

“The intention of that is really to identify trends before they become a problem and then to manage those risks,” notes Williams. “It’s a very serious consideration and it’s not something that we take lightly. As far as safety is concerned, it’s one of our core values and our top priority.”

Through the continued support of Jinchuan, Metorex has gone from strength to strength over its 43-year history. It’s promising mining portfolio, commitment to corporate social responsibility, and focused management team, has helped

position the company as a significant player in the Central African mining industry. Now, searching for new opportunities in the continent, Metorex is set to continue on this rapid upward trajectory in the future.

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STRIKING

GOLD IN

MAURITANIA Written by Dale Benton Produced by Richard Deane

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A look at Algold Resources and its 30year Tijirit Project, which is already showing promise from feasibility studies

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n the mining industry, there are some geographies and provinces that are quite literally gold mines for exploration and development.

For Algold Resources, an emerging gold explorer and developer, that key location is Mauritania.

Located in the Maghreb region of north-western Africa, Mauritania is the 11th largest country in Africa.

Where Algold is concerned is the country’s high potential for iron, gold

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and copper, something that has already been recognised by other leading players including Kinross, Xstrata and First Quantum.

Algold has a significant mining licence, which encompasses three major projects across Mauritania.

These include the Tijirit, Kneivissat and Legouessi projects.

It is the company’s Tijirit Project that Algold is currently investing significantly into. With a

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‘Located in the Maghreb region of northwestern Africa, Mauritania is the 11th largest country in Africa’

30-year mine licence, the company has outlined its plan for the project, with Phase IV drilling anticipated to begin in Q1 2018 and an updated feasibility study targeted for December 2018.

The project is made up of four major targets, which include the Eleonore, Sophie and Lily targets. But what is it that makes Tijirit a world class project?

The prospects already outlined by Algold are significant and highly attractive for investors, but Algold believes that it offers tremendous potential for gold mineralisation outside of those already defined prospects.

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Capital Drilling, a leading provider of exploration and production drilling services, are proud to partner with Algold Resources to deliver their drilling projects in Mauritania.

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It’s all well and good sitting upon an incredible discovery, something that Algold can proudly boast, but the true value comes from the way in which the company can extract that mineral potential, deliver true shareholder success and define itself as a true gold mining operator of force – not just in the African space but the world.

No company can grow and achieve success without strong management. Even some of the largest players in the mining world relay on incredibly experienced management, steering the ship towards exponential growth and world class operations.

Algold can boast an impressive leadership team, recently appointing the highly experienced Benoit La Salle as Chief Executive Officer. La Salle brings with him over 20 years of experience in the development and operation of mining projects in West Africa.

2013

ALGOLD RESOURCES was founded this year

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A L G O L D R E S O U R C E S LT D

One of the more notable experiences La Salle brings with him is his role in the founding of SEMAFO Inc. Throughout his time there, the junior explorer grew exponentially to become a 250,000-plus ounce-peryear gold producer in West Africa. He also has a proven strong relationship in working with NGOs in Canada and Africa, which in the modern mining world will prove crucial in not only delivering success but delivering sustainable ethical success.

La Salle is but one of many on the management team, which

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collectively boasts handling excess of $5bn in mining transactions in equity and debt, taking technology startup companies to $40mn IPOs and working with the leading geoscientist organisation in Canada.

Over the past two years, Algold has recorded some key practical success. Expanding the gold resource mineralisation at Tijirit, extending the high grade salma vein to 3km strike and intercepting 6.84 g/t Au over 15m at the Eleonore project have all come following the granting of that 30-year mining licence in August 2017.

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‘Algold can boast an impressive leadership team, recently appointing the highly experienced Benoit La Salle as Chief Executive Officer’

But it’s not just practical tangible successes.

In February 2018, Algold Resources successfully completed a private placement and royalty financing totalling $4.8mn with Osisko Gold /Royalties. The deal saw Osisko enter into a strategic partnership with Algold and welcomed two new board members from Osisko onto the Algold board.

The ambition? To capitalise on Osisko’s strong financial resources and industry leading technical expertise in the continued development of Tijirit and the company’s other development and exploration projects.

Algold Resources is only at the beginning of a remarkable growth journey but can look back on an incredibly strong few years of operating. As the

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A L G O L D R E S O U R C E S LT D

‘Algold can boast an impressive leadership team, recently appointing the highly experienced Benoit La Salle as Chief Executive Officer’

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company looks ahead to 2018 and beyond, it stands at a key turning point in the company’s history.

In March 2018, the company successfully announced the closing of $1.2mn private placement to list on the Toronto Stock Exchange, subject to final approval of the placement. Should the company receive this, and successfully list on the stock exchange, it will represent a real mark of intent.

Across the mining industry, junior miners like Algold Resources are often sitting on some incredible resources and operations but they

fall by the wayside due to a lack of funding, which the stock exchange can truly enable and empower.

Algold can rest assured in this respect. Under the guidance of an incredibly experienced management team, the company can turn the incredible potential of Tijrit into a real-world class operation.

Algold Resources, despite not being the only player in the market, will go a long way in placing Mauritania on the map.

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COMBINING LOCAL FLAVOUR WITH GLOBAL PRESTIGE Written by Dale Benton Produced by Glen White

AS YUM! BRANDS EXPANDS IN THE EMERGING AFRICAN QSR MARKET, DELIVERING SUCCESS COMES WITH A LOCAL TOUCH

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ith more than 45,000 restaurants in over 135 countries and territories, Yum! Brands is truly a pioneer in the global quick service restaurant (QSR) market. Since spinning off from PepsiCo in 1997, Yum! Brands has continuously developed successful food franchises such as Taco Bell, KFC and Pizza Hut into markets spanning the globe. Focusing on emerging markets such as the North African region (including Morocco, Egypt and Tunisia) and Sub-Saharan Africa (including South Africa) has been crucial to the growth of these brands.

The African continent in 2018 is one of opportunity and growth, and as Yum! Brands looks to further develop the Pizza Hut brand it has called upon the services of Ewan Davenport, Yum! Brands General Manager for Pizza Hut Africa.

“With this development of Pizza

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Hut, it’s an incredibly exciting growth pipeline,” he says. “We are not just growing Pizza Hut as a global brand, we are to a certain extent growing pizza as a food category in itself because it’s not as prevalent in Africa as it is across the world.”

Davenport understands the African market, having worked with SABMiller.

It is this experience in the delivery of global and regional brands into local markets that has provided Davenport with a key understanding of the market dynamics and, more importantly, how these global practices and brands will and will not be successfully received.

“In Africa, affordability will always be a challenge, be it in the pizza category or the beer category.

It’s not always going to be readily accessible to everybody,” he says.

“This has had a huge influence on the value chain because we are trying to deliver pizzas to the high standards

FOOD AND DRINK

“WE’VE FOUND THAT OUR BRANDS HAVE BEEN AT THEIR MOST SUCCESSFUL WHEN THEY HAVE A REALLY STRONG LOCAL OPERATOR WHO KNOWS HOW COMMERCE WORKS AND KNOWS HOW THE AFRICAN MARKET WORKS” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands

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YUM! (PIZZA HUT)

of the Pizza Hut global brand.�

At the time of writing, Pizza Hut operates over 200 restaurants across the entire African continent, with the intention of maintaining a steady momentum of new openings. The company recently opened its 100th store in the Sub-Saharan Africa region, which includes South Africa, and has bold growth plans in the region over the next several years.

As a global brand with global

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standards that must be adhered to across every franchise in every country, Pizza Hut focuses on four growth drivers to deliver unrivalled success.

Distinctive, relevant and easy bands, unmatched franchise operating capability, bold restaurant development and unrivalled culture and talent; these are the four core values that distinguish the company and are crucial

FOOD AND DRINK

“ONE THING THE COMPANY DOES NOT COMPROMISE, NO MATTER WHERE IT IS IN THE WORLD, IS FOOD SAFETY STANDARDS. WE HAVE WORLD CLASS FOOD SAFETY PROCEDURES AND ALL OF OUR FOOD AND OUR INGREDIENTS AND SUPPLIERS ARE HELD TO THE HIGHEST OF STANDARDS” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands to tapping into the high growth opportunity African QSR market.

For Davenport, the key to success has been and will continue to be an uncompromising approach to delivering brands.

“One thing the company does not compromise, no matter where it is in the world, is our food safety standards,” he says. “We have world class food safety procedures and all of our food and our ingredients and

suppliers are held to the highest of standards. This does not change here in Africa; we expect our suppliers to meet the same standards that Pizza Hut meets anywhere else in the world.”

As a franchiser, operating in multiple countries brings with it challenges. Different markets, different consumers with different tastes and different suppliers.

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YUM! (PIZZA HUT)

“IT’S AN INCREDIBLY EXCITING TIME RIGHT NOW FOR PIZZA HUT… NOT JUST FROM A GROWTH PERSPECTIVE, BUT THE EXCITEMENT AND ACCELERATION FROM OUR FRANCHISEES AND PARTNERS RUNNING ALONGSIDE SOME INCREDIBLE WORK WE WILL DO WITH THE COMMUNITY” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands

THE PERFECT DELIVERY

Together, we enable seamless and sustainable end to end value chain solutions driven by our customer’s unique environment, through excellence in our people, our values and systems as the leading logistics multi-temp provider in Africa.

PASSION

INTEGRITY

PURPOSE

INNOVATION

CARING PERSONALLY

EXCELLENCE

CORPORATE OFFICE: WATERFALL DISTRIBUTION CAMPUS, 2 BRIDAL VEIL RD, MIDRAND DISTRIBUTION CENTRES: CAPE TOWN | DURBAN | CENTURION | JOHANNESBURG | MIDRAND | PORT ELIZABETH DIGISTICS.CO.ZA | 011 663 3500 | INFORMATION@DIGISTICS.CO.ZA

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FOOD AND DRINK

“We try to localise as much as possible in Africa from a purely supply and sourcing perspective,” says Davenport.

“So, we work with suppliers in the countries we operate in, which is a significant contributor to local jobs, and we work in partnership to help develop local supply capability.”

As the company doesn’t look to compromise, Davenport does admit that it operates to an 80/20 rule, remaining open to some level of local adaptation to align with regional and local flavours.

“But we absolutely don’t stray too far from the global Pizza Hut experience,” he says. “People are coming to Pizza Hut to have Pizza Hut after all.”

Say the name Pizza Hut anywhere in the world and a recognisable, consistent and ultimately successful brand comes to mind. So when Davenport speaks of people heading to Pizza Hut because they recognise that brand, how does that work across a continent where pizza is not as popular as other QSR brands?

This is where technology, particularly accessibility, proves

crucial to Pizza Hut. In the modern world, the consumer has technology at his or her fingertips, is digitally enabled in almost every aspect of their life and, more importantly, demands that same level of digital accessibility from brands such as Pizza Hut. “One of our big strategies across Africa is how can we expand and lead the charge in terms of digital access to our pizzas,” he says.

“Online ordering is essential as mobile penetration is much greater than people realise in this region and Africa has a number of online tools that are relatively underutilised.

“There is an opportunity, and as far as Pizza Hut goes, we will expand our online presence and ordering accessibility significantly over the next three months.”

Embarking on an expansive growth journey into a new geography, a new market that is already densely populated, cannot be achieved alone. As Pizza Hut works with local partners, in some cases growing their capabilities, Davenport cannot stress enough how important it is to have these local partners and establish

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strong working relationships.

“We are an almost entirely franchised organisation across the African continent – we ultimately rely on working with local franchise partners to develop our brand,” he says. “We guide our partners from our Restaurant Support Centre and help our franchisees in their dayto-day operations and growth.

“As an entity coming into a country, it’s very easy to try and establish a business without fully understanding the inner workings of that country.

We’ve found that our brands have been at their most successful when they have a really strong local operator to partner with, who knows how commerce works within that country and also understands the African trading environment.”

That role of a foreign, global brand setting foot into the African continent and trying to cement itself as a leader, brings with it a sense of responsibility.

Pizza Hut, provides significant working opportunities to local people and extensive training programmes. As a business, it’s entirely focused on people.

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This is something that is close to Davenport’s heart.

“We do put a massive amount of emphasis on generating and propagating our culture. And as part of that culture, training and looking after our people is at the heart of it,” he says.

“As a company we recognise hard work and we believe that positive reinforcement and recognition will encourage people to continue doing the right thing and obviously continue the growth of the Pizza Hut brand as well. The face of our brand is in fact the many incredible team members operating throughout our restaurants. If we accelerate a positive culture built around respect, recognition and passion for our brand our customers will feel the love too.”

But it’s not just growing an internal culture. Pizza Hut is a strong ambassador for empowering the local community. Through an initiative called A Slice of Africa, a number of staff members will embark on a journey to visit a Pizza Hut store in every country across its entire African footprint and deliver Red

FOOD AND DRINK

Ewan Davenport General Manager, Africa, Pizza Hut - Yum! brands

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Reading boxes to African children, kicking off Pizza Hut Africa’s Literacy Project. These boxes are Pizza Hut branded pizza boxes containing books and reading materials, as Pizza Hut looks to get more children reading across the globe.

For Davenport, that is the real endgame, not just exponential growth as a brand but growth as a key contributor to the African continent.

“It’s an incredibly exciting time right now for Pizza Hut,” he says.

“Not just from a growth perspective, but the excitement and acceleration from our franchisees and partners running alongside some incredible work we do to make a difference within the communities we serve.

“That for me, is one of the most fulfilling things I can do and the pinnacle of my entire career so far, and I’m very grateful to be a part of it.”

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Your success is our motivation Lekkerland supplies about 90.000 filling stations, kiosks, convenience shops and quick service restaurants in Europe. We not only deliver the products but also develop tailor-made solutions - from holistic shop concepts to individual logistics services.

Our vision is to become the preferred 360 degree concept provider for all channels of on-the-go consumption and all aspects of the convenience business. The success of our customers is our motivation.

About 4,800 Employees

About 90,000 Points of sale in 6 countries

â‚Ź13 billion Revenues in 2016

For more information please go to: www.lekkerland.com