May 2017
GUINEA ALUMINA CORPORATION
TAKING WITH ONE HAND, GIVING WITH THE OTHER
www.africanbusinessreview.co.za
CORRUPTION AND AFRICA’S INFORMATION GAP
LAKE TURKANA & THE FUTURE OF KENYA’S ENERGY LANDSCAPE
EXCLUSIVE WE INTERVIEW JACKSON SIKAMO OF CHIBULUMA MINE, ZAMBIA
EDITOR’S COMMENT
CORRUPTION: THE BIG DEBATE JUST HOW CORRUPT is Africa? Do self-serving dictators dominate the continent? Or does increasingly good governance shatter this perception? Age-old stereotypes are never constructive, but saying that, corrupt leaders must be held accountable for the good of all Africans. In our opening feature, John Siko from Risk Advisory Group weighs in on the corruption debate. Government has long been a powerful African institution, but in contemporary Africa, so is the telecoms industry. For insight into current developments in this sector, African Business Review speaks to Gavin Holmes and Hrusostomos Vicatos from Wipro. We cover more bases in our monthly top 10. With a focus on South Africa, we list the best performing financial companies. Be sure to browse our exclusive company reports, too. We have interviews from executives at Lake Turkana Wind Power, Metorex, and Guinea Alumina Corporation. Find out how these companies are contributing to modern African business. Feedback is always welcome tweet us at @AfricaBizReview.
Enjoy the issue! Wedaeli Chibelushi Editor wedaeli.chibelushi@bizclikmedia.com
F E AT U R E S
06 PROFILE
Corruption and Africa’s information gap Africa’s telecoms transformation TECHNOLOGY
12 4
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18 SOUTH AFRICA’S TOP LIST
10 FINANCIAL COMPANIES
C O M PA N Y PROFILES
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Guinea Ministry of Mines & Geology MINING
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Lake Turkana Wind Power
Guinea Alumina Corporation MINING
ENERGY
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Chibuluma Mines MINING
Microcred TECHNOLOGY
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Corruption and Africa’s information gap On the back of the Risk Advisory Group’s Corruption Challenges Index, Head of Business Intelligence John Siko explores the state of corruption on the continent W r i t t e n b y : J O H N S I KO He ad of Busine s s Intellige nce, Afric a at the Risk Advisor y G roup
PROFILE
PROFILE LAST MONTH, RISK Advisory Group released its global Corruption Challenges Index, ranking 181 countries around the world on the challenges that corruption poses for businesses looking to invest in them. Drawing on more than two decades of investigatory experience, we scored countries based on the threat of corruption (both grand and petit); the likelihood that investors would be exposed to corruption (such as being asked to pay bribes); and also the availability of credible and reliable information upon which to base our assessments of integrity.
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Sub-Saharan Africa did not do well. While China took the bottom spot in our survey, three of the bottom five - Nigeria, Angola, and Equatorial Guinea - are in sub-Saharan Africa. Half of the sub-continent’s countries were deemed ‘Challenging’, ‘Highly Challenging’, or ‘Extremely Challenging’ from a corruption standpoint. None of these findings should surprise anyone familiar with corruption issues throughout the continent; if anything, some might view our findings as not damning enough. There is little reason to focus deeply on the reasons for entrenched corruption
C O R R U P T I O N A N D A F R I C A’ S I N F O R M AT I O N G A P
‘On the plus side, online publications, blogs, and social media have added a great deal to our knowledge base of potentially corrupt activities, particularly by governments, over the past decade’
on the continent. Readers of African Business Review are certainly familiar with persistent challenges such as feeble public institutional oversight of public spending and contract awards. What does merit mention, however, is the third leg of our assessment, which is the availability of credible information about potential corruption. In essence, this is about having the tools to separate the ‘smoke’ of corruption allegations and insinuations from the ‘fire’ of reality. Most of these tools are found in the public domain. The most basic tool is the availability and searchability of corporate records
- can an interested party easily gain access to records revealing company owners and directors, either in person or online? Other useful public domain information includes litigation filings, criminal records, credit reports, bankruptcy filings, and land registries. Lastly, there is nothing more valuable in assessing corruption, for example, than a robust, free, and reliable press; there is no better watchdog on corruption. This is where sub-Saharan countries generally fall short. Corporate records usually can be found, but in most countries the retrieval has to be done 9
PROFILE
‘Improving access to and increasing the amount of reliable public information is one of the best and most easily addressed remedies for tackling corruption across the continent’ in person, can be costly, and can take days or even weeks. Content differs -- some countries’ corporate records reveal ownership, but not all. And then there’s the question of whether records are diligently kept. We recently had a case in a southern African country where we found the company registration number, but the hard copy of the registration document was missing when we requested it. Whether the document was pulled deliberately or simply lost, we will never know. As for more 10
May 2017
in-depth records like those related to litigation and land ownership, these are patchy at best and nonexistent in most jurisdictions. As for the media, there are some bright spots but much more needs to be done for the press to be an effective, reliable anti-corruption tool. On the plus side, online publications, blogs, and social media have added a great deal to our knowledge base of potentially corrupt activities, particularly by governments, over the past decade.
C O R R U P T I O N A N D A F R I C A’ S I N F O R M AT I O N G A P
And in several countries, there are well-established print publications that are steadfast watchdogs of both public and private sector corruption. However, the press and blogosphere still have serious shortcomings. Reporting is frequently sensationalised and based upon scant evidence. This reportage is often picked up and cited as fact by other journalists and commentators, eventually leading to an echo chamber that turns flimsy supposition into fact. In addition, one must also be aware of the political (and commercial) inclinations and agendas of the authors. Improving access to and increasing the amount of reliable public information is one of the best and most easily addressed remedies for tackling corruption across the continent. However, there are no clear signs that a commitment to either is on the horizon. Few African governments are facing significant, sustained domestic pressure to make information more accessible to the public, nor is there any meaningful oversight of journalists, particularly those solely writing online. Money is also a factor: digitising corporate
records, for example, would come at a steep cost for African governments. This is, perhaps, where international donors can step in to make a valuable contribution. Records management is not cheap, but investments in this area are probably the best - and most costeffective - steps an external actor can take to combat corruption. Given the struggles that African governments have faced in regard to large-scale public management reforms, such small, digestible steps could prove to be a pragmatic step forward in the fight against corruption.
> John Siko is Head of Business intelligence, Africa at The Risk Advisory Group, an independent global risk management consultancy that provides intelligence, investigations and security services.
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Africa’s telecoms TRANSFORMATION Gavin Holmes and Hrusostomos Vicatos from IT services firm Wipro discuss the current state of telecommunications in Africa Written by: Gavin Holmes and Hrusostomos Vicato
TECHNOLOGY IN SOUTH AFRICA, there are several issues affecting the telecom industry. In the mobile space, competition is fierce with players vying for market share by lowering pricing and bundling with additional products and services to offer value adds. In short, telecommunication companies must become more competitive. However, this competitive pricing war is set against a backdrop of a volatile currency where the weakened foreign exchange rate is impacting telcos’ direct input costs. The weakened exchange rate impacts the huge investments needed to roll out and expand networks as well as handsets (that are often bundled with contracts). These are mostly sourced from international suppliers. As such, telcos face a challenge in balancing competitive pricing strategies against investments required to build network capacity. We are also seeing movement in the fibre connectivity space. There are more than 40 companies that are rolling out fibre services to homes and businesses in South Africa, also making this a highly competitive environment. We are 13
TECHNOLOGY
‘There are more than 40 companies that are rolling out fibre services to homes and businesses in South Africa, also making this a highly competitive environment’ Gavin Holmes
Hrusostomos Vicatos
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seeing massive growth in data consumption – from businesses and consumers – which is driving these initiatives. However, we have also started to see some consolidation in this space where larger players have acquired or partnered with smaller players. We expect to see further consolidation in this space. With regards to LTE and the introduction of uncapped services, the over-arching theme of an exponential increase in data consumption means that these players are also having to invest heavily in upgrading their backhaul
A F R I C A’ S T E L E C O M S
WHAT HAS WIPRO ACHIEVED SINCE ENTERING THE AFRICAN MARKET IN 2007? We have grown from 2007 to a multiindustry business delivering value to many customers across the African continent. During this phase of growth, we have localised our delivery team through skill development programmes. Also, we have proven our commitment to South African transformation by being compliant to a Level 2 BBBEE status.
networks to accommodate this surge in consumption. The rest of Africa is also challenged by the volatile exchange rates, resulting in them experiencing similar problems to South Africa. They are also experiencing increasing volumes of data consumption and a need to expand and invest in networks. This is core to supporting the growth of business and the economy in the region. However, many countries in Africa also face the challenge of extending coverage as they feature dispersed communities with small, rural villages. This makes
it difficult to justify investment in infrastructure due to the sparse population of these areas. Another challenge is that there is less ‘revenue per user’, which further hinders expansion of networks. Fibre to the home and business hasn’t really gained as much traction in the rest of Africa as what we are now seeing in South Africa. This is likely due to the limited and sparse demand for these services. Fibre network growth in the rest of Africa is mostly being driven by the need to interconnect cities and dense population 15
TECHNOLOGY
areas with backhaul networks. Africa is unique in that we are seeing lots of innovation introduced to the region due to the uptake of smartphones and
mobile communication. Disruptive apps are being developed that are changing business models and supporting business operations. Telecommunication is at the core of
HOW DOES WIPRO PLAN TO EXPAND ITS AFRICAN PRESENCE? We have a strong delivery track record in the telecommunication and financial services sectors and have a strong delivery track record in several African countries. We will continue this growth in Africa through a focus on other select industries, a continued commitment to localisation and partnerships to assist in ensuring timely access to these new frontiers. We will remain relevant by offering services that addresses our customers Run and Change IT services requirements with a focus on digitisation.
A F R I C A’ S T E L E C O M S
this. The attraction to information driven opportunities is being assisted by the lower barrier to market entry. Moving forward, African countries need to work cohesively and build infrastructure across the continent in order to create a ‘free flow model’ where telecommunication and data flow is not restricted. Governing bodies need to come together to create policies and regulatory frameworks that support and stimulate this. After all, telecommunication infrastructure
is just as vital to economies as road and rail infrastructure for example. This will create an environment that attracts foreign investment with sustainable returns as well as sustainable competition. Hrusostomos Vicatos is the Telco Business Development Executive for Wipro Limited. Gavin Holmes is the Country Manager for Wipro. Wipro is a multinational Information Technology, Consulting and Business Process Services company.
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TOP 10
SOUTH AFRICA’S TOP 10 FINANCIAL COMPANIES Which South African financial companies are the top of their game? We take a look… Writ ten by: WE DAE LI CHIBE LUS HI
WITH HELP FROM the University of Cape Town, annual publication Top 500 South Africa’s Best Managed Company has whittled the country’s financial firms down the finest. The study splits the finance industry into 10 main sectors. We picked the leading company from each. The researchers recognised three main sectors: financial performance, empowerment, and policy and accreditation. The study also factored in the social and developmental policies. Here’s the final outcome:
TOP 10
10
BANK – STANDARD BANK
Standard Bank tops the banking charts, as it did last year. It has the sector’s highest turnover, along with the highest rand growth and strong employee efficiencies.
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SHORT-TERM INSURANCE – SANTAM LIMITED
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LIFE INSURANCE – LIBERTY HOLDINGS Liberty has the highest turnover for the period in review, and strong efficiency per employee. It was ranked fourth place last year.
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Santam Limited has held the top spot for six consecutive years now. It is the largest company in the industry with the second highest employee efficiency.
S O U T H A F R I C A’ S T O P 1 0 F I N A N C I A L C O M PA N I E S
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INVESTMENT HOLDING COMPANY – REMGRO As with last year, Remgro is the top investment holding company in terms of turnover.
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INVESTMENT SERVICE – PSG
PSG dominates the market and is one of South Africa’s most successful business empires. It has an impressive turnover growth of 45.7 percent for the period under review.
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REAL ESTATE HOLDINGS AND DEVELOPMENT – GROWTHPOINT PROPERTIES Growthpoint Properties has the highest turnover and a strong productivity per employee.
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TOP 10
4
AUCTION HOUSES – CLAREMART AUCTIONEERS
Claremart Auctioneers has the highest turnover in the auction house sector, followed by Strauss & Co.
3
ASSET MANAGEMENT – OLD MUTUAL INVESTMENT GROUP
Old Mutual bags top honours in the asset management sector. PSG Group made another appearance, coming in second in this category.
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S O U T H A F R I C A’ S T O P 1 0 F I N A N C I A L C O M PA N I E S
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ACCOUNTING AND CONSULTING – PWC SOUTH AFRICA PricewaterhouseCoopers South Africa has the sector’s highest rand growth. It is also Africa’s largest provider of professional services.
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SPECIALITY FINANCE – ZEDER INVESTMENTS Zeder Investments has the highest annual turnover for the period and highest employment efficiency.
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LAKE TURKANA AND THE FUTURE OF
KENYA’S ENERGY
LANDSCAPE W R I T T E N B Y DALE BENTON P R O D U C E D B Y KIRON CHAVDA
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Construction of the 310 MW Lake Turkana Wind Farm nears completion. However, there will be no time for celebration as Lake Turkana Wind Power plans to provide clean, low cost energy to Kenya for the next 20 years
A
fter nine long years of negotiation and preparation, 2.5 years of construction (including the installation of 365 wind turbines), the end of the incredible Lake Turkana Wind farm journey is just over the horizon. In June 2017, the 310 MW capacity Lake Turkana Wind farm will be ready for full commercial production. The goal? Providing the whole of Kenya with low cost wind power (to the national grid equivalent) to around 16 percent of the country’s current installed electricity generating capacity. All over the next 20 years. A moment of celebration surely, as the single largest private investment in Kenya’s history, but for Phylip Leferink, General Manager, and everyone involved in the project, the end of this
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journey is really only the beginning. “When we finish and Lake Turkana is online of course there will be some celebration, but we enter a new phase. Construction work may be over, but the work really is just beginning as we need to operate it over the next 20 years.” Everything has a beginning Leferink has been involved in the project from the very start, working in a sales director role with Vestas, the turbine manufacturer that has provided all of the turbines for the project, as well as operating in a joint venture (JV) capacity. “When construction started in late 2014, it soon became apparent that Lake Turkana Wind Power needed some additional experience, someone
“When we finish and Lake Turkana is online of course there will be some celebration, but we enter a new phase�
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ENERGY
who knows the various elements in the construction of wind farms. They felt I was the right person to help bring the project over the finish line and into operations,” he says. Leferink became General Manager in 2015, and through his work with Vestas he was best placed to fully understand the challenges that faced the company and more importantly, how to mitigate them. The location of Lake Turkana Wind Project is no coincidence. The area has been known for many years for its incredibly strong winds that swoop through the Kenyan Rift Valley, a “fantastic wind resource”. “The Lake Turkana Wind Power project is in a truly unique environment, with a unique wind resource. This whole process is the culmination of a project on a scale that has not been done anywhere else in the world,” says Leferink. But a fantastic wind resource is only one small element of the project. Lake Turkana is an isolated lake in northern Kenya. This presented a major challenge that needed to be overcome in order to push forward with the project - accessibility.
2014 THE YEAR WHEN CONSTRUCTION OF LAKE TURKANA WIND POWER BEGAN The lack of solid infrastructure pushed the project back into what Leferink describes as akin to an “offshore operation”. The assets required for the construction of the project, including some 360+ wind turbines, were shipped in to the port of Mombasa – the closest port. These assets, some 1,600 components, were then transported 1,200 km to Lake Turkana. “The existing roads quite simply were not good enough, so we upgraded some 208km of road in order to make it accessible,” he says. This lack of infrastructure created a real sense of risk with Leferink understanding that without a smooth supply chain, the project would not be delivered on time, if at all.
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LAKE TURKANA WIND POWER
“The value in identifying the logistical risks, mitigating them and planning for them accordingly, proved to be instrumental�
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ENERGY
Smoothing out the supply chain Fast forward to 2017 and Leferink can proudly point to a zero loss in time throughout the construction of the project. The secret to this success? Identifying the supply chain risk from the very beginning. “The value in identifying the logistical risks, mitigating them and planning for them accordingly, proved to be instrumental,” he says. “Taking the time out at the very beginning in the minutiae of detail has really allowed us to get to where we are today so successfully” A project of the size and scale of Lake Turkana Wind Farm can only come together through the successful collaboration of a number of key partners and contractors, each working on specific elements of the construction of the wind farm. The power of partnerships The final project, switched on and operating, could be considered the biggest achievement, but for Leferink, the successful and smooth interfacing of all the separate contractors and elements have
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ENERGY
been the key success criteria. Lake Turkana Wind Power invested in the services of Worley Parsons to act as the employer representative and manages the construction contracts. “The interface management has really been exceptional in scheduling and planning of work, so if a contractor were to fall behind, which is inevitable in this field, you can look at how we can bring it back on track,” he says. “You keep a daily watch on
the scheduling to ensure that nothing goes by without noticing, even if the smallest of changes happen you are on top of it almost before it happens.” The partners involved in the project have been influential, from Vestas as the turbine manufacturer, Physical building the local access roads, Siemens facilitating the substation and collection grid, RXPE supplying the STATCOM system and SECO, which built accommodation to house all of the contractors on site.
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LAKE TURKANA WIND POWER
The power of the people There is one partner in particular that Leferink feels is significant – the local community. Lake Turkana Wind Power has strived since the very beginning of the process to prioritise local employment in every aspect of the construction. Prior to Lake Turkana Wind Power’s investment in the local area, it was scarcely populated with little to no economic development whatsoever. “We are very committed to supporting local development of the area to make is as sustainable as we can,” he says. “The local employees we have employed will benefit from liveable pay, training and development so that when the construction is complete and they move on, they do so with the skills and capabilities to attain future work.” To date, Lake Turkana Wind Power (directly and through its contractors) has employed around 800-900 local employees out of the 1,700 people working on the project. Local employment is not the only visible benefit brought upon by the project. Through a commitment
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ENERGY
to sustainable development of the region, the company invests in a 20-year programme to provide infrastructure to the local area through the building of schools, health facilities and water provision. The importance of being a good corporate citizen is something that Leferink does not take for granted. The project represents an opportunity not only to benefit Kenya through clean low cost energy, but also to change the lives of the people in the local community. “A lot of the positive local developments happening in the area are largely incentivised by Lake Turkana Wind Power,” he says. “We believe a harmonious relationship with the communities around us not only benefits them but it helps in the development of the project.” One true vision As a private investment, Lake Turkana Wind Power does not rely on any governmental funding, but Leferink is keen to highlight the important role that the government has played and will continue to play
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LAKE TURKANA WIND POWER
in the success of the project. “The Kenyan government has been so supportive of this project from the start, the appeal of the project and the size of it makes it such an attractive development,” he says. This is evident in the significant role of Lake Turkana in the wider Kenya Vision 2030. Launched in 2006, the Kenya Vision 2030 is a vision of transforming Kenya into a ‘newly industrialising, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment’. The vision is built upon three pillars: economic, social and political. The vision looks at large infrastructural developments in order to achieve its ambition – and Lake Turkana was well placed within that vision. “Kenya has a large energy landscape, which is quite unique both in Africa and on a global scale. You are looking at a 40-50 percent generation that is purely renewable energy,” Leferink explains. “In the bigger landscape, Turkana is
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quite fitting with what the government is trying to achieve in the long term – cheaper, cleaner energy,” To the future With construction nearing completion, all eyes are firmly set on the future. Working closely with its partners, Lake Turkana will closely monitor the performance of the wind farm over the initial 8-12 months. This will allow the company to overcome any teething problems from an operational perspective, enabling a smooth functioning facility for the remaining years. “It’s been a great journey,” says Leferink. “There will be a certain sense of emptiness when construction is over as the people will change and new teams will come in. We’ve had a strong relationship with all our contractors and we will feel sorry for when the end is there. But at the same time, we have accomplished what we set out to do and the next stage is upon us.”
ENERGY
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CHIBULUMA MINES: A MODEL MINE IN A MINING WORLD WRITTEN BY DALE BENTON PRODUCED BY RICHARD DEANE
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WHAT DOES IT TAKE TO OWN AND SUCCESSFULLY OPERATE A ‘MODEL MINE’? BETTER YET, WHAT MAKES A ‘MODEL MINE’ AT ALL? THAT’S THE QUESTION FOR JACKSON SIKAMO, CHAIRMAN AND COUNTRY MANAGER AT CHIBULUMA MINES, A METOREX SUBSIDIARY 30
May 2017
MINING
T
he Chibuluma mining area, located south of Kitwe in Zambia, is often referred to as a ‘model mine’ operation in Zambia. This is a result of significantly high copper grades, higher than any other mine in the country, a commitment to Corporate Social Responsibility (CSR) that is unrivalled, and a financial model that not only brings shareholder value but consistently pays taxes into the Zambian Government. The reality facing Chibuluma Mines right now is that the company is staring the end of the life of mine right in the face. Chibuluma, currently, has only four years left on its life of mine. Chibuluma Mines has invested around $32million in exploration activity since 2010 in the hope of finding new resources and opportunities to extend that life of mine. Jackson Sikamo, Chairman and Country Manager at Chibuluma Mines, a Metorex Subsidiary, admits that the company hasn’t discovered a significant operation just yet, but it’s not all doom and gloom. “Despite this, we’ve actually been able to extend the current
ore body that we have right now. The fact that we have four years left comes from the exploration work we’ve been doing,” he says. A MODEL MINE? To be a ‘model’ in any industry is no small feat, but in the mining industry it’s a monumental achievement. This is a feeling shared by Sikamo, who admits that despite the mine contributing less than two percent of the country’s copper production, there is no mine like Chibuluma. “In terms of efficiency, good governance, stewardship and the contribution to the community, Chibuluma stands tall above any other mine,” he says. Mining in Chibuluma has been ongoing since 1955, with Metorex acquiring the mine in 1997. The development and transformation of the mine into the model operation that it is today began in late 2006. During that time, Chibuluma experienced success after success, with production levels increasing year on year from 10,000 tonnes in the first year until it reached a peak high in 2013 when
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MINING
the mine produced 18,124 tonnes of copper which is to date the highest amount of production. Come 2014, the copper grades began dropping but Chibuluma continued to produce significantly high amounts of copper ore at 604,000 tonnes – the current annual highest production from the ore body. So where does Sikamo enter the fray? His introduction as General Manager in 2013 in itself is a major contributor to the significance of the Chibuluma mine. “I was the first Zambian General Manager of an operating mine since privatisation started in Zambia back in 2000,” he says. “That’s a major success for a foreign investor who places a level of trust in the abilities of the Zambian people.” That foreign investment comes in the form of Jinchaun Group, a Chinese state owned mining company. Jinchaun Group acquired Metorex in 2012 and Sikamo points to that foreign ownership as not only a key success, a major foreign conglomerate investing in Zambian mining, but a major contributor to the livelihood of Chibuluma through the provision of additional resources.
870
Number of employees at Chibuluma Mines Plc
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CHIBULUMA MINES
THE CHALLENGE IN COMMODITY In the mining industry, navigating the challenges presented by commodity price cycles is fundamental. Since 2011, the price of copper has continuously fallen and reached its lowest price in January 2016. This led Sikamo to pull together a major restructure program, a fivepoint program that would allow Chibuluma mines to continue to be a successful operation in spite of the difficult commodity cycle. “We looked very strongly at working to get every operation
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IN TERMS OF EFFICIENCY, GOOD GOVERNANCE, STEWARDSHIP AND THE CONTRIBUTION TO THE COMMUNITY, CHIBULUMA STANDS TALL ABOVE ANY OTHER MINE
MINING
working above cost line,” says Sikamo, “from restructuring the management of mining enforcement, reviewing and reorganising employees and productivity levels to the cost of expenditure with specific regards to safety and of course equipment management.” Throughout 2015 and into mid2016, Chibuluma focused on controlling the costs and ensuring every aspect of the business was operating at optimum levels, and it is through this razor-sharp focus that Sikamo can happily report
that 2016 proved to be extremely successful regarding copper production and reduced losses. WORKFORCE OPPORTUNITIES The success of Chibuluma has come not only from the major internal restructure but also each and every employee of the company. From the mine workers operating the machinery to the project managers to the executive level leadership teams, the input of each employee is crucial to the future success of the company. In Zambia, a major challenge in this
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MINING
regard is skills development, with Sikamo admitting that skills at an artisanal level are difficult to obtain. This is where the investment of Jinchaun has also benefitted the operation. Chibuluma currently has a direct labour force of 340 employees. Only 11 of these employees are expats, employed at various levels but largely in key management positions and equipment maintenance. This is very much a deliberate choice for Sikamo. “We are looking at getting the maximum benefit of these expats in terms of output but also using this workforce to be able to train our local employees,� he says. This mentality extends further to the many mining contractors that operate at Chibuluma. One particular contractor has 15 expat employees, again with the same focus on enriching the Zambian workforce. “These expats are here to ensure the improvement of productivity and ensuring
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CHIBULUMA MINES
THESE EXPATS ARE HERE TO ENSURE THE IMPROVEMENT OF PRODUCTIVITY AND ENSURING KEY SKILLS ARE BEING PASSED ON TO THE LOCAL EMPLOYEES SO THAT IN THE NEAR FUTURE, WE CAN HAVE A FULL ZAMBIAN WORKFORCE
MINING
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IN THE QUEST TO MINING EXCELLENCE, IT’S IMPORTANT TO IDENTIFY A LEADING HYDROCARBON PARTNER.
FUELLING MINING
At Puma Energy, we bring secure, safe and affordable fuels, lubricants and other petroleum products to businesses and retail customers like you every day. Across Africa our storage, supply, retail, business to business, wholesale, aviation, bunker and LPG businesses help to fuel success in fast growing markets. We are committed to providing a tailored service to each one of our mining customers. From small mines to some of the world’s largest, we identify the individual energy needs of each mine and then deliver the quality petroleum products they need to do business in the most efficient and cost-effective way. We listen to your needs and tailor a fully integrated “Total Fluid Management” and “Value In Use” solution to suit your business. Our offer goes much further than on-site Hydrocarbon Management by focusing on the wider mining operation. This is achieved by bringing down the “Total Cost of Ownership” of mining through providing security of supply from the best routes, best-in-class customer service and technical support. We are committed to issues of Health, Safety, Environment and Community (HSEC), and this underpins everything we do. For more information, please contact us at enquiries@pumaenergy.com
WHEN YOU SUCCEED, WE SUCCEED. The company is capable of producing about 300 tons of steel mill balls per month with all components, quality, and cast type according to customer specification. We specialize in producing both high and low Chrome sized steel mill balls, metal fabrication, concrete building, and other steel works. Contact Person: David Chen Email: daw999@126.com Tel: +260 978 435 888 Plot No: 402, Industrial Road, Chililabombwe, Zambia
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key skills are being passed on to the local employees so that in the near future, we can have a full Zambian workforce,” Sikamo says. Across the industry mining operators are dedicated to hiring local where possible, but Sikamo admits that while this is the case with Chibuluma, there is a clear strategic roadmap with regards to employing both expats and Zambian locals. This strategic roadmap allows Chibuluma to operate without compromising on productivity and efficiency.
1997
The year that Chibuluma Mines Plc was founded
ABOVE AND BEYOND Through its leadership and management, copper production and the provision of working opportunities for Zambian people, one could argue that this is enough to justify Chibuluma’s status as a ‘model-mine’. But for Jackson and Chibuluma, it is the commitment to enriching the local community and Zambian economy that truly cements the company’s place as a good corporate citizen. Chibuluma is consistently working to provide training, education and better healthcare facilities. This has involved developing and extending a local school in order to better provide for students
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CHIBULUMA MINES
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and teachers, including provision of power. This has seen the school capacity extend from 46 students and two teachers in 2010 to over 900 students and 50 teachers currently. With the life of mine entering its final stages, Jackson does not see the end but four more years of opportunity. Through the continued support of Jinchuan, Chibuluma will continue its exploration activities in the country. “We have the skills, the successful lean running of the company and the people to continue well beyond those four years,� Sikamo says. Mining operations have been in place at Chibuluma for over 50 years and through years of hugely successful redevelopment, looks set to continue long into the future.
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FOREWORD: AN INTERVIEW WITH GUINEA’S MINISTRY OF MINES AND GEOLOGY
WE ASKED DIAKHABY MAÏMOUNA OF THE MINISTRY ABOUT ITS ROLE IN THE COUNTRY’S MINING AND HOW IT GOES ABOUT CHAMPIONING RESPONSIBILITY Produced by Richard Deane 45
G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
Tell us briefly about the history of the Guinean mining Mining and the role that the Ministry plays in promoting and protecting it. Guinea’s mineral tradition is centennial. Since ancient times, Guineans have been exploiting gold; a fact notoriously recorded in the legendary voyage of King Kankan Moussa in 1325 to Mecca. However, it was not until colonial times that the mining industry was developed and the minerals riches of the country discovered, uncovering in the soil:
• 4 0 billion tons of bauxite, at more than 40 percent content of Al203, which represent over a third of global reserves of bauxite • 2 0 billion tons of iron ore, the largest and highest grade of untapped deposit of iron ore in the world • 700 tons of gold, and between 30 to 40 million carats of proven reserves of diamonds.
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The diversity and quality of the minerals coupled with 320 km of seacoast on the Atlantic allowing for evacuation through deep-water ports has helped the development of the Guinean mining Mining. Over the years, Guinea has risen to become both Africa’s largest producer and the World’s second-largest producer of bauxite. The mining industry accounted for about 15 percent of the country’s gross domestic product in 2016. Mineral exports of bauxite, diamonds and gold accounted for 80 percent of the nation’s total exports in 2016. With the advent of its transition into a democratic state in 2010, Guinea, through its Ministry of Mines and Geology, has undergone a series of reforms to promote transparency, accountability and sustainability in the mining Mining. The Ministry is keen on protecting and ensuring the judicious use of these resources for sustainable economic growth and development.
MINING
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G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
Outline the importance of the forthcoming Symposium of Mines in raising the profile of Guinea. The organisation of this event in 2017 is pivotal to the department’s mining promotion policy. The Symposium Mines Guinée (SMG) is designed for a better understanding of Guinea’s mining and investments potential. The SMG will draw a clearer picture of Guinea’s business climate as well as the government’s strategic orientations and reforms. The Ministry’s goal is to appeal to More information about SMG is available online:
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key mining players and connect qualified investors to Guinea’s largely untapped resources and promising projects. Industry leaders, junior companies, investors, institutions will receive detailed briefings on mining and exploration projects. In short the SMG will allow us to develop a strong networking value chain. The aim is to organise the event on annual basis and make it West Africa’s definitive meeting place for mining professionals.
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Can you give us an overview of national industry developments and investment? The Ministry of Mines and Geology has implemented comprehensive and courageous structural and institutional reforms to enhance productivity, accountability and sustainability in the extractive industry. Those steps include among others: The modernisation of its mining cadaster which is now available online at www. guinea.miningcadastre.org The creation of a one-stopshop for mining projects, with an internet portal covering all relevant information on permits and authorisations. In total, 107 permits and various authorisations issued by 13 ministerial departments during the year 2016 can be found on the portal. The implementation of the Master Plan for Mine-Related Infrastructure Development, notably through the signing of the agreement to pool infrastructures
related to mines between major companies such as CBG, GAC, Rusal Dian-Dian and the State. The establishment of a fully operational National Mining Commission for greater transparency. The consolidation of these reforms initiated since 2010 has favored investment commitments in 2016 of more than $2.4 billion in the bauxite industry alone. Mining companies such as Dadco, Alcoa, Emirates Global Alumina, Anglo Gold Ashanti, Managem have all heavily invested in the Guinean mining Mining. Lenders such as IFC, Société Générale, BNP Paribas, UFK, Overseas Private Investment Corporation, Société Générale de France, Natixis, Crédit Agricole, ING, Africa Finance Corporation have in the past year alone financed many major mining projects in Guinea. Production in the bauxite industry is predicted to reach 60 to 80 million tons by 2020. Production in the gold Mining is expected to reach 65 millions tons by 2020.
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What are the Ministry’s regulations and/or views on the importance of environmental responsibility? As stipulated in the Mining Code, any mining activity undertaken must comply with the legislation and regulations governing environmental protection and management as well as health. In particular, any application for an authorisation or mining operation permit must include an Environmental and Social Impact Study in accordance with the Environmental Code and its implementing regulations as well as internationally accepted standards in this area. Administrative requirements depend on the extent of the scheduled work, ranging from simple Environmental Impact Notice for an Exploration Permit to a detailed Environmental and Social Impact Study including for example a Hazard Study, a Risk Management Plan. Aside from these regulations and legislation, the Ministry of Mines
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and Geology has implemented an environmental and social strategic evaluation (ESES) process, as a tool of sustainable development enabling a better consideration at the national level of environmental and social concerns.
The ESES aims to: (I) a ssist the Government in identifying nationally the environmental and social impacts of existing and future mining activities so as to avoid, so as to avoid, mitigate or compensate them by adopting an appropriate mode of governance; (Ii) p rovide the necessary information and knowledge to support ongoing dialogue with stakeholders. Can you describe any current, relevant legislation? Guinea adopted a new mining code on 9 September 2011, which was amended by the 2013 Bill. The new amended code has been widely acclaimed.
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G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y
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How important is sustainability? What is your major goal?  The Ministry of Mines and Geology main goal is to transform the non-renewable resources of Guinea into sustainable development gains for all stakeholders. In that spirit, the government in partnership with the World Economic Forum, the International Finance Corporation, UNDP, the African Minerals Development Center and GIZ, launched and achieved the Responsible Mineral Development Initiative (RMDI) during 2016-2017. The Ministry with its partners gathered together for seven months mining operators, local communities, civil society and the state around a shared mining vision to identify priority themes, areas for joint actions and approaches to sustainably advance Guinea mineral development. The recommendation that emanated from this initiative is informing the government’s national strategic plan for the mining Mining. The Ministry has a win-win and effective business approach to the development of the industry. In that respect, it has create a one-stop shop to promote greater efficiency in the delivery of non-mining permits and cut down on cost for mining companies. For a sustainable approach to community development, the Ministry in collaboration with the PNUD, elaborated last month a CSR policy for the mining Mining.
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Guinea’s largest greenfield investment in 40 years Written by Wedaeli Chibelushi Produced by Richard Deane
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Guinea Alumina Corporation S.A. (“GAC”) is developing a bauxite mine and export facilities, at the same refining its CSR policies. We speak to the company’s Director General Aissata Beavogui about this important project for Guinea
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I’m proud to be part of this project because it will bring hope and opportunities for Guinea,” Aissata Beavogui, Director General of Guinea Alumina Corporation S.A. (“GAC”) tell us. Beavogui is spearheading the mining company’s bauxite export project, currently under construction in what is the largest greenfield investment in Guinea in four decades. A later phase envisages an alumina refinery. GAC is passionate about the export project, though this is by no means the company’s sole focus. Corporate Social Responsibility (CSR) and connecting with the national mining industry are also
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priorities for GAC. For instance, it is a platinum sponsor of the Symposium Mines Guinée – a summit organised by the Guinean government. We quiz Beavogui about GAC and how its ongoing project benefits Guinea. Beavogui tells us that GAC was established in 2001. The project advanced well through completion of a Bankable Feasibility Study (BFS) along with approval of the Environmental and Social Impact Assessment (ESIA). However, the global financial crisis of 2008/2009 impacted the ability and interest of some of the partners to fund their share of equity. Following a strategy change within BHP Billiton and Global
MINING
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Shapoorji Pallonji And Company Private Limited
Corporate Office: SP Centre, 41/44 Minoo Desai Marg, Colaba, Mumbai 400 005, India Tel: + 91 6749 0000 Fax: +91 66338176 Website: www.shapoorji.in Regd Office: Nagindas Master Road, Fort, Mumbai 400 023
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Alumina in 2013, Mubadala and DUBAL of the United Arab Emirates acquired the remaining shares in the project in May 2013. They then transferred the ownership of GAC to the newly formed Emirates Global Aluminium (EGA). “It was a very good thing for the country, because it’s the first-time the UAE has invested significantly,” Beavogui says. “Guinea is a major resource holder, and the UAE is an inspiring example of what countries with natural resources can do in development.” EGA, which operates two aluminium smelters in the UAE, has consistently stated its strategic intent to secure raw materials through upstream
193 THE NUMBER OF DIRECT EMPLOYEES WORKING AT GAC
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G U I N E A A L U M I N A C O R P O R AT I O N
Aissata Beavogui Director General
Aissata Beavogui is the Director General of Guinea Alumina Corporation S.A. (“GAC”), a wholly-owned subsidiary of Emirates Global Aluminium (“EGA”). Beavogui has more than 15 years of experience in Audit, Finance and Accounting in the USA and Guinea, particularly in the financial services, Oil & Gas and Communications industries. She has previously held various senior positions with various major Audit advisors and consultants, and joined GAC as Governance and Compliance Manager in May 2014 and then in January 2016 in her current role.
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She holds a BSc in Accounting from the State University of New York- Binghamton, USA and a Certification as a Leading Professional in Ethics and Compliance from the Ethics & Compliance Officers Association (“ECOA”). She is fluent in both French and English.
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investments in bauxite and alumina. Beavogui explains: “Strategically the objective is upstream integration from bauxite mining to alumina refining and then to the existing aluminium smelting. Ownership of a controlling position in bauxite is an important factor.” The GAC bauxite mine project is a cornerstone of this strategy, which will ultimately yield a vertically integrated business with the capability of self-managing the processes from mine to metal. The acquisition led to GAC revamping its whole infrastructure. Beavogui walks us through the current project. “Right now, we’re in the construction phase,” she explains. “We are constructing the infrastructure that will allow us to export bauxite. The global demand for high-quality bauxite is mostly in Asia, such as China, and is expected to grow significantly over the next decade.” The infrastructure being built includes a multi-user port terminal, commercial quay and supporting
infrastructure for mining, rail, and marine operations. GAC is also upgrading a rail system linking the mine to refinery locations, a harbour and channel works. A later phase envisages the expansion of the bauxite mine and existing railway, expansion of the GAC Port Terminal and construction of an alumina refinery. Differentiator The mining services sector is a majorly competitive business, with Guinea being a current focus for major foreign investment. However, Beavogui asserts that GAC is at an advantage. She explains: “What differentiates GAC is the expertise. If you combine it with EGA, we have nearly 40 years of experience in the aluminium industry. We actively apply world-leading standards and technologies in all aspects of the project and we ensure that everything we do is in line with sustainable practices in environment, health and safety.” We’re struck by two further
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Design. Build. Deliver. Fluor delivers integrated engineering, procurement, fabrication, construction, maintenance, and project management solutions to clients globally. With some of the world’s foremost capital projects under our belts, our innovative solutions are the benchmark for capital efficiency and predictability for the mining and metals industry. We are proud to partner with Guinea Alumina Corporation S.A. on the development of their major bauxite mine in Guinea and to continue contributing to the growth of the mining industry in Guinea. www.fluor.com
Š2017 Fluor. All Rights Reserved. ADGV145717
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unique GAC features. Firstly, the company is headed by Beavogui, a Guinean woman. “It’s always been the motto of EGA management that this is a Guinean project, therefore we need the face and the image of the Guinean people as it is their project,” she says. The mining sector is notoriously maledominated. In a 2014 study of the top 500 mining companies globally, Women in Mining UK found the mining industry had fewer women on boards than any other major industry. “I think it’s a big signal that EGA sent out in supporting women leadership by appointing me,” Beavogui, appointed in January 2016, says. “Especially in the context of my country where so few women are hired in high positions, we’re still struggling to have equality in industries such as mining
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G U I N E A A L U M I N A C O R P O R AT I O N
“We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities, and a whole set of programmes for individuals impacted by our project” AISSATA BEAVOGUI, Director General
WORLD LEADER IN THE CONSTRUCTION AND MAINTENANCE OF TRANSPORT INFRASTRUCTURE
Colas, a subsidiary of the Bouygues Group, is a world leader in the construction and maintenance of transport infrastructure, aiming to meet the challenges of mobility, urban development and environmental protection. It performs some 90,000 projects with 2,000 material production units each year. Net profit attributable to the Group amounted to 355 million euros. More than 500 local employees will learn from Colas’ expertise in the GAC project of Guinea.
Phone: +33 1 47 61 75 00 Fax: +33 1 47 61 76 00
www.colas.com/en contact-rse@colas.fr
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or even the government itself.” GAC’s social consciousness is also notable. The firm works with NGOs, contractors, consultants and local government services to implement community-based initiatives. Beavogui explains: “We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities,
and a whole set of programmes for individuals impacted by our project.” These programmes include those that improve the productivity of livestock and agriculture for the impacted communities. GAC also provides training for Guinean adults and youths. “We provide adult literacy training and local skills enhancement programmes,” Beavogui says. “We give information on health, for example drugs and alcohol, HIV programmes, or malaria.”
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Alongside the Guinean people, GAC aims to play a pioneering role in Guinea. It aims to preserve a sustainable environment based on world-renowned and national standards. GAC works with the Guinean Ministry of Environment to apply for an EISA (Environmental and Social Impact Assessment) certificate. “In collaboration with our government, we have produced an action plan in order to suppress,
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eliminate or reduce the impact on the environment and communities,” Beavogui tells us. The action plan is followed and regularly checked by the government. Along with implementing its environmental action plan, GAC has several other ambitious future plans. For instance, it will share its accrued knowledge with attendees of Symposium Mines Guinée in May 2017.
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GAC’s future plans also extend outside of Guinea. When asked whether the firm wanted to expand its international market, Beavogui responds: “Absolutely, we are keen to sell our bauxite wherever the market leads us. Wherever the demand is, we will provide.” GAC’s ambitions sound grand, yet achievable. Guinean bauxite is amongs the highest quality worldwide. GAC’s bauxite mine is in the Boké region of north-west Guinea, where it holds a concession on more than one billion tonnes of bauxite. Balanced with extensive CSR policies, GAC’s wider goals cement the firm as a definite ‘one to watch’ on the global mining stage.
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Empowering students through world-class education Written by Catherine Rowell Produced by Alex Barron
TECHNOLOGY
Education Technology Director Bradley Arnold discusses how Blended Learning has transformed student learning at KICS, integrating technology and education to provide world-class results
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he education and teaching sector is undergoing a rapid transformation, with the rise of digitalisation and technological advances continually influencing, challenging and establishing new instructional teaching methods. This is evident in schools and educational establishments worldwide, where educators regularly discover how developing technologies can revolutionise the way students learn, interact and communicate. Since the late 1990s, Education Technology Director Bradley Arnold has been working to support the integration of technology and education, and has been responsible for educating both teachers and students in utilising new and existing resources whilst adapting new methodologies. Khartoum International Community School (KICS) is placing an increased
focus on utilising such technologies to support student development, alongside traditional teaching methods. Situated in Sudan, with approximately 400 students from reception (age three) up to year 13 (age 18), the private school is highly diverse, with students from over 50 countries studying alongside Sudanese students. The school continually looks for new ways to enhance student learning, and has institutionalised blended learning, which has provided a multitude of benefits for students. Arnold’s development of blended learning focusses on the advantages of integrated technology and experiences, which then maximises learning opportunities for students. His passion for blended learning is immediately clear, explaining that “the possibility for students to interact with others, share with one another,
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to worry less and innovate more
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K H A R T O U M I N T E R N AT I O N A L C O M M U N I T Y S C H O O L
go out and ask questions and follow up on questions and enquire – these possibilities have exploded.” However, he acknowledges that embedding blended learning within teaching and education at KICS has not been without its challenges, as not all were originally welcoming of such a significant shift from traditional learning methods. “It became difficult for teachers to get on board because students were sharing with people - not necessarily in the classroom - and then finding and developing information which teachers possibly can’t control,” he says. This has led to many teachers redefining their role within this new digital world. Technological advances Arnold has been behind the drive to integrate a dynamic learning environment at KICS, where individuals are empowered to take advantages of interactive possibilities. He adds with a chuckle, “It is difficult for teachers sometimes to grasp the possibilities, but students can usually grasp these very quickly.” Students are encouraged to develop
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deep meaningful connections in the classroom while using mobile technologies and different internet tools to gain access to centres of knowledge around the world. To embed this blended learning practice further, the school operates an evolving online classroom environment, KICS Learns, which is accessible by students, teachers and parents. Parental involvement is vital within blended learning, where parents are asked to participate in their children’s digital classrooms, engaging in assignments, resources, collaborations and feedback. This promotes the school’s anytime, anywhere learning vision. To support this anytime, anywhere learning further, all students from years 3-11 are provided an iPad, which belongs to the student until they leave the school. Students in the Infants section up to Year 2 share classroom sets of iPads, and students in Years 12 and 13 each are given a laptop computer. Arnold explains that if students have a question, they can go online and see what the other students have said about a particular subject,
TECHNOLOGY
Bradley Arnold, Director of Education Technology
“The possibility for students to interact with others, share with one another, go out and ask questions and follow up on questions and enquire – these possibilities have exploded” –B RADLEY ARNOLD, Director of Education Technology w w w. k i c s . s d
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LEARN BELONG SERVE COLLABORAT E
At AISA, we are committed to fostering a learning community of educators shaping the future of international education on the African continent.
AISA schools are characterised by the values of AISA which include a commitment to international mindedness, learning, collaboration, and service which emerge from our belief in the intrinsic value of all individuals. Our community of 74 internationally accredited schools benefit from: · Access to AISA annual conferences including the School Heads Retreat, Leadership Conference and Educators Conference · Access to over 20 Professional Learning Institutes held across the continent each year · Online professional community groups and learning · Annual student awards · Annual teacher scholarships · Networking and leadership opportunities throughout the AISA community
To find out more about AISA and how you can get connected go to: www.aisa.or.ke
TECHNOLOGY
The KICS IT Support team
as well as see feedback from teachers. Arnold provides an example of this online learning and its advantages, stating: “I’ll often record students in my class when showing a presentation, or when students are having a debate, and this is then uploaded to our private KICS YouTube account.” This video is then embedded in the course KICS Learns page. It helps students retain lessons which are taught in class, enabling them to look back, develop
new understandings, and make connections to other subjects. Social media presence KICS encourages students to utilise social media platforms, such as Twitter, Facebook and Pinterest, where ideas are routinely posted or work uploaded. Arnold believes this to be highly advantageous, explaining that “students will always write openly and freely on these platforms, but they won’t always use language
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K H A R T O U M I N T E R N AT I O N A L C O M M U N I T Y S C H O O L
“The students get a wealth of knowledge which isn’t dry textbook language – students are comparing and contrasting, which gets them comfortable with various concepts and ideas” –B RADLEY ARNOLD, Director of Education Technology
TECHNOLOGY
that is proper academic language.” However, he adds, “we’re not worrying about sentence format here; it’s more about getting ideas out and making connections.” Such platforms also enable students to connect with classes in other countries within independent and group learning, where Shakespeare can be discussed on Facebook, or Hamlet can be researched on Twitter, and students can see what is being said about these topics by students and academics around the world. Arnold adds, “The students get a wealth of knowledge which isn’t dry textbook language – students are comparing and contrasting, and this helps get them comfortable with various concepts and ideas.” This prepares students for assessments and exams and enables them to put across the messages or meanings they wish to express. Such an environment should encourage students to develop their thinking patterns and problem solving abilities. However, Arnold is acutely aware that internet and digital security is KICS largest concern with regards to social media, and is also an ongoing
concern for parents. Consequently, KICS has separate media accounts for each year level and subject, and children under 13 years are not permitted to use personal accounts, only engaging with social media under teacher supervision. Classes for these students typically use social media tools available in the closed KICS Learns environment. Teacher development At KICS, teachers are expected to acquire certain technical skills, but are also fully supported in order to ensure blended learning is fully embedded. Teachers can enter the “Blended Learning for Teachers” course page in KICS Learns to access a repository of resources, support materials, as well as documented teacher experiences. Furthermore, teachers can also participate in weekly Learning Labs and Café 21, which Arnold compares to an Apple Store and genius bar. This scheme enables teachers to discuss new ideas or topics in education and gain further support. Whilst the Learning Lab and Café 21 are not compulsory
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K H A R T O U M I N T E R N AT I O N A L C O M M U N I T Y S C H O O L
for teachers, Arnold highlights that these have become highly appreciated teacher professional development opportunities. The role of the teacher is being further developed at KICS. During the school year teachers participate in blended learning environment reviews and self-evaluations. These are based
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on the 7-Traits of Blended Learning framework that Arnold helped write and develop while at KICS. Teachers are encouraged to look at how their learning environments are organised; use resources, encourage exchanges, provide formative feedback, encourage social behaviours, utilise communication
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channels and promote active learning engagement. “By asking teachers to look at the environment in this manner we will provide them the ability for constructive and professional conversations,” adds Arnold. “It is not a teacher evaluation as such, but a tool of reflection; a framework to allow teachers to look
at where they are on this continuum of potential.” Doing this helps enable KICS faculty to see how the digital environment can be designed to maximize learning opportunities and redefine the learning experience. Local challenges Despite such transformations, KICS
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K H A R T O U M I N T E R N AT I O N A L C O M M U N I T Y S C H O O L
has faced a number of internal and external challenges. Located in Sudan, the school has consequently been restricted by US economic sanctions. Nonetheless, KICS has come a long way, and Arnold is proud of how the institutionalisation of blended learning has provided a multitude of benefits and has put the focus solely back on student learning and enabled teachers to support and enhance student education. “It is a way of learning which I truly believe is unique. There are schools that are doing similar things, but they are few and far between.” KICS is also in
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regular contact with other international schools across Africa, in addition to Dubai, India and Asia, who are all striving to implement blended learning and embrace new teaching methods. At the end of President Barack Obama’s term, sanctions were lifted; however, this is currently under a six-month review, so there has yet been no change in how the school conducts its business. Looking to the future With the majority of students attending good universities, Arnold succinctly concludes: “We don’t
Nigel Winnard Principal of KICS
just want them to just go to good universities, we want them to star in those universities. We also want that university to look back at our school and recognise that we produce real learners who are active contributors.” With supportive leadership, both Arnold and the owners of KICS have an established a vision for learning
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which has enabled students to become increasingly empowered and creative. Humbled by his experience at KICS, he adds: “I feel very privileged to work here – I’m just so proud of this school”, which puts the student learning experience first, and will continue to deliver great education for the ongoing future.
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How Microcred is using technology to improve Africa’s payments sector Written by Catherine Rowell Produced by George Tweed
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We spoke with Microcred Chief Innovation Officer and CTO Denis Moniotte regarding the digital transformation of the company, designing innovative products and integrating first class technologies to provide financial inclusion for all
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icrocred has come a long way from its humble origins, providing financial support to 575,000 clients and companies who are excluded from loans within a traditional brick and mortar setting. Aligned with the company’s operations to deliver quality customer service is Chief Innovation Officer and CTO
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Denis Moniotte, who has been behind the construction of a new distribution network in Senegal and Madagascar, and is developing Microcred’s products and services to support an ever-growing customer base. “We were addressing customer needs differently a few years ago, and we will still be addressing it
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differently in a few years from now,” reflects Moniotte. He explains that the company receives loan applications from clients excluded from traditional banks for a number of reasons, which ranges from the loan SME’s can afford being too small, to a lack of paper trail. “Even when the amount is acceptable, the bank will want to see paperwork documenting income, tax returns etc., and many clients don’t have that,” he says. “They just run the business and don’t maintain any books,” leading banks to automatically reject them. Microcred aims to eliminate fake promises by truly delivering outstanding services to underbanked populations. Microcred is a commercial company, or what Moniotte calls a double bottom line business. “We are a social business,” he adds. “We are a commercial company and have to be profitable, but what happens to our clients is the key driver of our value creation.” BUILDING NEW PRODUCTS To ensure Micocred builds products for customers which are both significant and practical, the innovation team
spends a significant portion of time listening to clients and liaising with design researchers to create ideas for future products. This enables them to build prototypes and undergo pilot programmes for approximately four months, where products are further refined and then rolled out throughout the company’s core business model. This process also supports Microcred and helps the company understand how clients have previously managed without financial support. Dedicated staff members visit SME’s to see whether clients’ businesses are viable, cost effective and have the ability to reimburse a possible loan. This emphasis on building customer relationships and developing new products has enabled the implementation of strong governance, policies, economics of scale and the centralisation of vital functions within Microcred’s infrastructure. Moniotte is clearly passionate about reaching out to individuals who have not previously had access to traditional financial services through these developments, as 85 percent of the population in areas the company operate are
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MICROCRED (EUROPE)
“We are on a journey to create a very different kind of business in terms of how it can be valued by the market” – DENIS MONIOTTE, CIO AND CTO
underserved by the finance industry. Although targeting what Moniotte calls “a handful”, Microcred builds around 40 branches per country and 50,000 active borrowers who all highly value Microcred’s products and services. To ensure a seamless delivery of services, Microcred extracts data from its platform overnight, where proprietary algorithms support the establishment and eligibility for clients who wish to receive automated decision loan products. Moniotte explains: “Each day, we determine for every client, ‘from this morning, according to the past behaviour, this
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client, on this specific product, is eligible for X amount.’” The client is then able to take a pre-approved loan from their local agent. Such developments have therefore enabled Microcred to make processes much more relevant and accessible for clients. PERSONALISED TOOLS AND PRODUCTS Whilst Africa remains a “cash based society”, Microcred has to build a ubiquitous distribution network so clients can access their finances easily through bank agents, such as at grocery shops, pharmacies
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or petrol stations. Moreover, the transformation of Microcred’s IT infrastructure has enabled clients to now gain freedom of choice and flexibility. Clients are automatically given an electronic account, where personalised tools and a centralised management system enables the company to cater to each client’s specific financial needs and access information through one core system. Microcred’s digital transformation also incorporates the implementation of strong device management on its Windows and mobile devices. The company utilises biometrics to
combat fraud, alongside the use of Watchguard for increased security. Additionally, the company’s removal of admin rights across the board has allowed them to support all devices remotely. Other embedded technologies within core operations include Google’s corporate document email system, Zendesk for ticketing and Optitune as its Windows device management tool. All of these tools have become first-class technologies which are highly effective in Africa. With its client base in mind, over a thousand commercial officers at Microcred now deliver seamless
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loan applications through the use of tablet devices, where photographs of documents can be taken, simplifying the process. The development of a smartphone app is also a customerfocused innovation Microcred is proud of, which will work without a data connection. “The number of smartphones in Africa is rising,” adds Moniotte, “but many people who have a smartphone don’t have constant access to 3G or 4G, they have really limited access.” The company’s launch of SMS based service Baobab was also named Best African Retail Company in 2016, enabling clients to gain confirmation for every transaction. There are now more than 800 Baobab service points in Madagascar and Senegal. Moniotte adds: “It’s about understanding how we can put out digital products, digitise our business and channels whilst serving clients sustainably.” However, Moniotte is aware that the company is unable to build such innovative products and platforms alone. A partnership with Software Group was key to have a technology that supports the innovation, as it has
allowed to build tailored digital user experiences. “They are quite excited by our ability to innovate, how close we are to our clients and the ideas that we come up with,” explains Moniotte. “We are on a journey to create a very different kind of business in terms of how it can be valued by the market.” FUTURE GROWTH Microcred has taken approximately
Denis is CTO and Chief Innovation Officer at Microcred. Denis leads the financial product innovation, resulting in readyto-scale innovative products for financial inclusion. The innovation process comes from orchestrating customer research, product development, scoring algorithm development, UX design, piloting, business planning. With his team, he has delivered innovative loan and saving products and new delivery channels.
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MICROCRED (EUROPE)
500m
MIRCOCRED annual revenue in $US 104
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five years to grow, amongst continual challenges of training 3,000 employees around changing rules and regulations. This is in a sphere of increasing competition, with the challenge of new players and startups which have become established in the fintech industry. However, Moniotte explains that being a “one stop shop” for clients has repeatedly given Microcred an edge, stating that “the repayment rate banks receive from clients is also defined by how much the client wants to stay in relationship with the bank.” If all companies do is provide lending services, he explains that they will more likely default on repayments, as there is no relationship to lose for the borrower. The implementation of new technologies and digitisation of services has enabled Microcred to scale up and become increasingly sustainable by increasing efficiency and reducing costs. It is a company that focuses on its people and its clients, with significant expertise on the ground, and is now home to vast numbers of branches and a reputable brand name. The company will continue to provide a multitude of services and digital solutions, improving services through digital innovations, which will enable clients to gain increased accessibility alongside traditional services. Now such technologies have been established, replication and future growth in bringing key products to market has become a real possibility. Microcred’s digital journey has spread across the whole organisation to transform the company into a digital bank with a local presence.
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