African Business Review - November 2017

November 2017

www.africanbusinessreview.co.za

EXCLUSIVE

TFG DRIVING INNOVATION IN RETAIL LOGISTICS

MINING TOGETHER BUILDING TOGETHER

THE GCO FAMILY DISTRIBUTION IS KING

SELLING MICROINSURANCE IN AFRICA

TOP10 Fastest growing African economies

AFRICA

TELECOMS’ NEW LAND OF

OPP ORTU NIT Y

SERVING

Senegal INSIDE BASSARI RESOURCES’ MAKABINGUI GOLD PROJECT

FOREWORD WELCOME TO NOVEMBER’S edition of African Business Review. This month’s cover feature is an interview with Bassari Resources, discussing its flagship project in Senegal. Executive Chairman of the Australian company, Alex Mackenzie, talks about the Makabingui gold project and how it aims to serve as a corporate citizen in the area. Another mining focus comes from an exclusive insight into Grande Cote Operation.

From mining to microinsurance, and an interview with BIMA CEO Gustaf Agartson, who explains how more and more African consumers are turning to mobile phones to buy vital products and services such as the insurance plans his company provides.

Founded in 2010, the company is expanding its footprint fast.

Following on from this is a look at just how much of an opportunity mobile and telecoms offers the continent, especially to those communities lacking traditional financial services infrastructure.

Other exclusive insights this month include interviews with The Greens and TFG, while our top 10 looks at the fastest growing economies on the continent.

Enjoy the read, and as always, tweet your feedback @AfricaBizReview

Enjoy the issue!

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F E AT U R E S

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TOP 10 fastest growing African economies

AFRICA:

TELECOMS’ NEW LAND OF OPPORTUNITY

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C O M PA N Y PROFILES

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Bassari Resources MINING

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Grande Cote Operation MINING

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Multipla Lda CONSTRUCTION

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TFG SUPPLY CHAIN

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The Greens CONSTRUCTION

INTERVIEW

W R I T T E N B Y DAN BRIGHTMORE

BIMA is the market leading provider of microinsurance products sold via mobile phone in developing countries worldwide. CEO Gustaf Agartson discusses the evolution of its offering on the African continent, a deep commitment to customercentric sales, its social impact mission and plans for the future‌

INTERVIEW BIMA WAS FOUNDED in 2010 to provide microinsurance products – tailored for those living on low incomes – such as life insurance and hospitalisation insurance, to emerging markets worldwide through a network of sales agents in the field and via call centres and strategic partnerships with mobile operators - including the likes of Vodafone. The company pioneers a business model allowing it to leverage mobile technology to provide insurance to a diverse new customer base across the African continent that has never before had access to financial services.

The BIMA name derives from Sanskrit and translates into many languages, including Swahili, Urdu and Hindi, as ‘insurance’. BIMA’s CEO Gustaf Agartson is proud of the company’s achievement in reaching out to more than 24mn global customers, but he’s keen to emphasise the customer-centric mantra behind its success: “Our model is all about selling insurance to people buying for the first time and as a result we need to be careful with what we are offering. Our conclusion after educating consumers about insurance products for the past 8

November 2017

seven years is that you need to keep the offering simple. If you meet a BIMA sales agent and buy a product, but don’t know the fundamental basics of how an insurance policy works, we need to explain the specifics and what it covers.

“Given that the interaction with a customer will be for a short period of time, there’s a limit to the number of elements you can have in a product and still be able to have high productivity among the sales agents.

We started our product offering on the continent in Ghana with life insurance policies. We simplified everything from the number of exclusions through to the registration process to allow sales agents to feel it was a policy they could comfortably explain to the customer.”

It’s this adaptable approach to its offering that has seen BIMA expand its product line, building on successes in Ghana where the company’s largest African market boasts more than 1.5mn life insurance customers (half of the continent’s total). “When we expanded the product, we realised there was a demand from our customers for hospitalisation insurance,” explains Agartson. “This was our second

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INTERVIEW

BIMA was founded in 2010 to provide insurance to those on low incomes product offering (taken up by 70% of BIMA’s Ghana customer base) giving cover to customers who need to spend at least one night in hospital.”

A pairing of life and hospital cover was BIMA’s basic product portfolio until it looked beyond insurance in 2015. “We thought about what it was our customers really needed and how we could create a product where we could leverage technology,” remembers Agartson.

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November 2017

“With life and hospitalisation cover we partner with mobile operators and harness their billing platforms for cost efficient premium collections.

We wanted to use other tech, driven by increasing smartphone saturation, so we leveraged that because, if you look at it from the customer’s perspective, what they’re really after is access to healthcare. You can either provide that through an insurance policy or you can look at other ways

to connect people with healthcare professionals, which is why we developed our tele-doctor services.

You don’t have to go to a hospital, you can speak to a doctor on the phone and via video calls. In some markets a doctor can prescribe medicines this way as we utilise partnerships with pharmacies so customers can have their drugs delivered to their home.”

Agartson believes BIMA’s ability to overcome the technical challenges

of providing its services is down to building a flexible platform capable of integration with a range of mobile operators. “When using mobile tech for customer registration, you need to bear in mind the low bandwidth and differences in network quality agents will face when selling the products out in the field, so we create app solutions to capture data and register customers even if they’re out of a coverage area,” he explains. “Even though smartphone penetration is increasing across the developing market, you can’t assume people will always have access to data. When providing a doctor’s consultation product, you have to allow for voice calling as well as video calls. We are experimenting with video telephony to provide the best consultations and therefore we’re starting to partner up with pharmacy chains where we can set up a booth with an iPad connected to the internet for a video consultation.”

On a practical level, BIMA maintains distribution is the key challenge to overcome in the quest for achieving scale, particularly on the African continent. “A traditional above-theline marketing campaign doesn’t work here as you can’t expect people to 11

INTERVIEW understand what insurance is when they’ve never been exposed to it,” says Agartson, who emphasises the need to develop distribution networks that include agents in the field, call centres and partnerships. “We’ve seen other companies fail, even when they’ve had the opportunity to partner with a mobile operator, because they haven’t invested in distribution. We now have more than 3,500 full time agents globally. Before we got to that level we tried to leverage other distribution networks with mobile operators and those selling SIM cards and air time, but it doesn’t work because they don’t have the experience to sell financial services. You also need to invest in quality follow up so you can verify the customer received the right info. We can audit the sales process at the call centres and on the street, we take a sample of the customers and contact them to measure their understanding so we can achieve a high-quality service.”

A commitment to a high-quality service, and pride in its delivery, is inspiring Agartson and BIMA to deliver life-changing benefits to its customers.

“We looked at the overall risk people on low-to-middle incomes faced in 12

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developing markets and this was one of our over-riding concerns when we founded the company in 2010,” recalls Agartson. “There was a demand for our services as people face more risk here in Africa than we do in Europe or the US, particularly both in terms of transportation and in the workplace.

The majority of people (75%) now have access to insurance for the first time.

When you have one person who is responsible for the income of a family, it’s crucial for that person to have life insurance. Across the market we see a significantly lower ratio of doctors per capita; and more restricted access to healthcare than in Europe or the US where it’s between five and 10 times higher. Our doctor’s consultation product gives unlimited access for the whole family, and if you’re living in a rural area that’s incredibly valuable.”

BIMA’s customers typically live on less than $10 per day and are at high risk of illness and injury. The company believes insurance can be a powerful tool to prevent families from falling back into poverty, but, in emerging markets, insurance penetration is generally less than 3% of GDP. BIMA is confident that mobile technology holds the key to

BIMA now has 3,000 full time agents working in Africa

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INTERVIEW unlocking the mass market potential of microinsurance where mobile penetration has surpassed 80%.

So, if the market is wide open, why should companies choose to bring their customers to partner with BIMA? “We offer an end-to-end solution,” says Agartson. “Once an agreement is signed we take care of all operations – everything from product development, distribution, customer education, technology, customer service, claims and underwriting (in terms of arrangements with local insurance companies). Companies don’t have to access anything themselves, they just have to give us access, but we realise this comes with acute responsibility for us to ensure there’s no miss-selling.

We can guarantee to our partners a high quality in our sales. This combination becomes very powerful.”

Cynthia Gordon, former CEO of mobile operator Tigo Africa, praises the partnership enjoyed with BIMA: “The success of Tigo’s mobile microinsurance initiative proves the vast commercial potential of MFS (mobile financial services). As well as contributing to our commercial growth, microinsurance is now a cornerstone of our MFS business and 14

November 2017

High mobile penetration rates will help BIMA reach more potential customers

delivers on our social impact mission.”

Armed with the right partnerships, and its distribution network, Agartson sees an opportunity for BIMA to sell more than 10mn policies per year across Africa in the next three years.

“This will be driven by entering into larger markets. Across our footprint today Ghana, Tanzania and Senegal are big, but we’re also aiming for penetration in Egypt and Kenya.

“Looking to the future, geographic expansion is important for BIMA to concentrate on new markets,” he

adds. “We also plan to expand the product portfolio with holistic health bundle coverage and scale in the markets we’re already in through outside partnerships with mobile operators where we sell directly to the customer. That’s possible thanks to the penetration of mobile money since 2009. It took some time for the mobile operators to get it right, but now it’s booming in markets like Ghana.

“Electronic payment options allow us to sell directly to end users outside of co-branded partnership structures.

Long-term we will gain from the partnerships, but in parallel with that we will have an opportunity to establish ourselves as a standalone brand.”

Agartson believes the best way to continue to provide financial health services in emerging markets is to build something financially sustainable. “By keeping faith in our social mission, we can provide good value to customers with a high-quality product via a tailored sales service, which can change lives for the better.”

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TECHNOLOGY

AFRICA:

TELECOMS’ NEW LAND OF OPPORTUNITY Ahead of this year’s AfricaCom, Clémentine Fournier, Regional Vice President, Africa, at BICS, examines the key telecoms trends and challenges in the region, as well as the strides being made to connect the vast continent Written by Clémentine Fournier

F

TECHNOLOGY

The combination of

increasing smartphone penetration, the falling cost of smartphones, and upgrades to network infrastructure have created the perfect recipe for the development of Africa’s telecoms industry, with the rapidly maturing market now seeing strong competition and innovation.

Africa is home to over one billion people, and the demand and availability of cheaper handsets has driven smartphone penetration amongst a population keen to connect. In recent years, MNOs have been working to upgrade their network infrastructure, in order to manage the demand for 3G and 4G services. Mobile phone connections were estimated to reach one billion at the end of 2016, with penetration levels estimated at 81% in June last year.

Caption to the image This environment has created significant opportunities for operators. However, the pace of development is quick, with consumers moving away from traditional voice services and towards those provided by new OTT entrants. As such, telecoms industry players must be flexible Above and adapt to continue to reap the ClĂŠmentine Fournier, rewards this market presents.

Regional Vice President, Africa, at BICS

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November 2017

Next page Mobile penetration rates are estimated to be 81% in Africa

The data boom As part of a wider global trend, Africa has seen declining levels of traditional international voice traffic. This is due to greater capacity availability, the falling cost of data plans, and consumers therefore opting to use apps such as WhatsApp, Skype and FaceTime in place of legacy services.

This trend has negatively impacted operators’ earnings; previously,

‘Many African consumers, who are unable to easily reach a bricksand-mortar bank, are now reliant on mobile banking and payments systems’ 19

TECHNOLOGY international calls were generating significant revenue, with African exchange rates meaning this was even more lucrative for local operators. Data is bought locally through individual data packages, removing the opportunity for MNOs to cash in on international calls.

In 2020, a predicted 57% of Africans

Above The demand for data- driven ser vices is leading to increased investments

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November 2017

will be online via their smartphone. The demand for data-hungry services has driven investment in capacity solutions, which must continue in the coming years to support this trend. National backbones, crosscountries terrestrial fibre and subsea cables are vital to connect cities across Africa, however, its varied geography throws up challenges.

Some landlocked countries that do not have access to subsea cables and landing stations continue to rely on satellite connectivity only. In other regions, satellite solutions are required to act as insurance and ensure service continuity for end-users. Network outages are common in Africa, the result of damage to cable or terrestrial fibre, electricity outages and even landing stations being set on fire. The cost of satellite poses an additional problem for many telecoms operators in the region, which cannot afford to have such links that are not fully

Left SMS-based ser vices are growing in popularit y

utilised. The emergence of ‘pay-asyou-go’ pricing options offers a viable solution, allowing operators to only pay for the satellite capacity they use.

The SMS popularity test The vastness of Africa, as well as its often-challenging terrain, has impeded access for many to essential services such as banking, healthcare and education. However, in recent years, the greater availability of capacity and subsequent data boom has driven the creation of new mobile-based

services. Many African consumers, who are unable to easily reach a bricksand-mortar bank, are now reliant on mobile banking and payments systems. Patient monitoring and instant access to healthcare services via smartphone are expected to drive similar growth in the future.

Whilst the hunger for data has facilitated this trend, a more traditional service remains vital to its efficient delivery - SMS. Banks, healthcare workers and other public and commercial service providers are 21

TECHNOLOGY

‘In 2020, a predicted 57% of Africans will be online via their smartphone’

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November 2017

e

’

The global A2P SMS market is projected to be worth more than $83bn by the end of 2024

realising the value of A2P SMS; a vital way of ensuring user verification and authentication. The usage of SMS in Africa as a way for businesses to instantly and securely communicate with customers is part of a worldwide trend. The global A2P SMS market is projected to be worth more than $83bn by the end of 2024, a significant increase from $57.27bn in 2015.

Tackling fraud One of the biggest challenges in Africa’s telecoms space is fraud, with SIM box and roaming fraud among the most widespread and financially damaging. SIM box fraud involves the installation of SIM boxes with multiple low-cost, prepaid SIMs, which are used to terminate international calls through local phone numbers. This leaves the handset user with a significant phone bill, and the operator with a dented reputation, often resulting in customer churn.

Revenues are also impacted, as the operator misses out on the cut they would ordinarily get from this call.

Roaming fraud, a sophisticated and highly damaging tactic, can take up to four days to identify by which time the financial harm could be huge. Africa is comprised of 54 countries, each with different roaming regulations and with roaming services in differing levels of development.

With many operators’ roaming services in their infancy, fraudsters are more easily able to take advantage of system weaknesses and the vulnerabilities associated with roaming.

With mobility increasing across the whole of Africa and more people travelling for business and leisure, the scope 23

TECHNOLOGY for roaming fraud will likely widen.

Tackling this challenge requires industry-wide collaboration.

Crowdsourcing tools are available that allow operators to share knowledge and resources, to collectively prevent fraudulent activity to and from networks, and fight a major drain on revenues.

Telecom growth opportunities Whilst legacy services may be waning, operators can look to offer new services and capitalise on shifts in the telecoms industry.

Increasing mobility in Africa is creating a wealth of Big Data. Collected and analysed intelligently, this can be used to improve and personalise enduser services, allowing operators to build their user base and unlock new market segments.

This mobility will also drive the demand for data roaming services; a major growth opportunity for telecoms players across Africa. Many MNOs do not have such services in place yet due to a combination of factors: the fact that many consumers in the region do not have bank accounts and rely on prepaid subscriptions, and 24

November 2017

the complex technical set-up prepaid roamers require. Roaming hub solutions will help improve roaming coverage while mobile operators continue to upgrade their networks and build their own coverage.

Those operators that have launched roaming services also have the opportunity for further revenue growth, by adopting solutions capable of identifying ‘silent roamers’. This will enable the MNO to attract those consumers who ordinarily turn off their roaming as a cost-saving exercise, by offering them tailored, affordable roaming packages based on their individual data requirements and usage.

Finally, the impact of IoT will be felt in Africa as it will across the world, with a huge number of wireless devices, sensors and infrastructure soon to be reliant on high speed, high quality, cross-border connectivity.

Rapid economic, infrastructure and technological developments in Africa have created an environment ripe with opportunity. By looking beyond traditional services and adapting to change, operators can grow, innovate, and improve connectivity across the region.

‘RAPID ECONOMIC, INFRASTRUCTURE AND TECHNOLOGICAL DEVELOPMENTS IN AFRICA HAVE CREATED AN ENVIRONMENT RIPE WITH OPPORTUNITY’

TOP 10

Top 10 fastest growing African economies According to Africa Insider, these were the economies in Africa with the highest increase in GDP in 2016‌ Writ ten by OLIVI A MINNOCK

TOP 10

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SIERRA LEONE

10 UGANDA Uganda’s economy grew by 5.3% (GDP) in 2016, which is actually a lower rate of growth than during the 1990s and early 2000s when it was developing at an average rate of 7%. Difficulties behind Uganda’s drop to number ten on the list have include adverse weather, civil unrest in South Sudan, global economic uncertainty and private sector credit constraints. However, the World Bank expects increased growth over the next three years.

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Sierra Leone reported 5.3% growth in its GDP in 2016 in spite of significant shocks that shook its economic foundations during 2014 and 2015; during which Sierra Leone demonstrated great resilience. The country experienced a real-term GDP swing of -20.6% in 2015 as the result of the collapse of iron ore prices and the Ebola epidemic, but the World Bank projects that Sierra Leone will continue to rebound with a 5.4% increase in 2017. This economic growth is expected to be fuelled by continued investment in agriculture, fisheries and mining.

The International Monetary Fund also predicts that Sierra Leone will continue to experience its upward trajectory of recovery.

8 CENTRAL

AFRICAN REPUBLIC The Central African Republic reported growth of 5.7% in 2016.

The nation is showing promising economic growth with the first democratically-elected president, Faustin Archange, at the helm.

Though economic recovery within the Central African Republic has been slower than anticipated, the World Bank expects the next few years will see increased stability and growth.

However, growth in exports and increases in production are expected to boost an increase in GDP.

7 MOZAMBIQUE The country has a labour force of 10.1mn and its key economic sectors include manufacturing, agriculture, tourism and finance, all of which declined after independence from Portugal was gained in 1975. The economy then picked up in the 2000s after the Mozambican Civil War. Mozambique reported growth of 6% in 2016 and a notable change in the economy was linked to the discovery of oil and gas in East Africa, but agriculture remains the mainstay of the economy, employing more than 80% of the workforce.

Other key profitable industries for the nation include fertilisers, glass, cement, tobacco and textiles.

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TOP 10

5

RWANDA

6 KENYA Kenya reported a 2016 GDP growth of 6.3% and is expected to continue on its path of economic growth. Located in East Africa, Kenya enjoys a stable currency, low inflation and reasonable fuel prices. When coupled with an increase within its construction and services sectors, as well as rising incomes and a burgeoning middle class, it’s easy to see the drivers behind its upward trend.

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Located in East Africa, Rwanda is a landlocked country with a population of 11.61mn. According to the World Economic Forum, Rwanda is among the fastest growing economies on the African continent. Its 6.3% growth in its GDP is expected to continue thanks to the country’s development goals as outlined in it Vision 2020 strategy. Four themes govern this push for growth and include rural development, economic transformation, employment by youth and increased productivity.

3 SENEGAL 4 DJIBOUTI

Senegal experienced economic growth of 6.6% in 2016. This was fuelled, at least in part, by President Macky Sall’s economic plan that includes major reforms for industries as diverse as tourism, education, financial services and energy. With a focus on improving Senegal’s productivity and increasing the country’s GDP, the plan also calls for 27 flagship projects to be undertaken.

A small port country, Djibouti’s economy hinges on services that take advantage of its strategic location at the Red Sea’s southern entrance, as well as foreign investments and financing. The GDP of Djibouti increased in 2016 by 6.5% as a result of construction, transport services and port development. The establishment of a free zone within the country, as well as the profits from a railway leading to Ethiopia, are also drivers of its growth.

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TOP 10

2

TANZANIA Tanzania’s economy grew by 6.9% in 2016.

In spite of slumping growth in many other parts of Sub-Saharan Africa, Tanzania is expected to deliver a 7% growth in its GDP in 2017. In addition to the service sector and agricultural production delivering strong results, Tanzania also demonstrated an increase in the growth of quarrying and mining. Measures designed to halt corruption and tax evasion, as well as a relatively low interest rate, are other factors fuelling its growth.

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November 2017

1 IVORY COAST The Ivory Coast reportedly grew its GDP by 8.5% in 2016. The nation is led by President Alassane Quattara, an economist and former director with the International Monetary Fund (IMF). According to the World Bank, the country boasts a sizable manufacturing base and is a major exporter of oil. It is also the world’s number one exporter of both raw cashew nuts and cocoa.

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Serving

Senegal

Inside Bassari Resources’ Makabingui gold project

Written by Dale Benton Produced by Richard Deane

Through its flagship gold mine, Bassari Resources looks set to transform and shape the future of the emerging Senegalese mining space

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O

ne of the most exciting spaces in the current mining industry right now, is Senegal. As more and more mineral exploration companies invest in the West African continent, Senegal really is an emerging market with incredible potential.

For Bassari Resources, an Australian listed gold company currently transitioning from explorer to producer, the company is strategically placed to shape the future of this market and capitalise on its mineral potential.

The company has identified some 30 gold anomalies in the Bassari permits in the underexplored Senegal Birimian greenstone gold belt in West Africa, which borders the

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CREATING AND SUSTAINING HIGHPERFORMANCE ASSETS THROUGH BEST PRACTICE ENGINEERING

Mincore Pty Ltd is an Australian company providing engineering services in the mining and minerals processing industries.

Mincore’s core business is offering a LEAN and FIT FOR PURPOSE SERVICE approach to project management and engineering for the development of base metals, coal and metalliferous mines and associated infrastructure.

Mincore has a global supply chain offering least cost solutions.

Additionally Mincore provides specialist consulting engineering and construction services for modifying and upgrading existing production facilities.

Mincore have formed an alliance with Redstar Construction to deliver a successful project for Bassari Resources

www.mincore.com.au +61 3 9017 6340

MINING

Makabingui currently hosts a mineral resource which comprises 11.9mn tonnes averaging 2.6 g/t gold for a contained 1mn ounces of gold

countries of Mali and Guinea. The company is currently focused solely on the development of its flagship Makabingui Gold project, with a targeted production date of early 2018.

The Makabingui Gold project consists of an ore reserve of 860,000 tonnes at 5.7g/t for 158,000 ounces of gold. These reserves all fall within Makabingui’s resource of 1mn ounces of gold at 2.6g/t. In addition, drilling has identified 8km of strike at Makabingui South.

A tale of two studies As the company has completed two independent feasibility studies, Alex

Mackenzie, Executive Chairman, will call upon over 30 years in the mining industry to fully develop the project and hit that Q1 2018 production date.

The first feasibility study was conducted at Makabingui in 2014, but due to an extended period of time and significant delays, Mackenzie found that in order to push forward with the

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BASSARI RESOURCES

Studies in 2014 and 2017 confirmed the Makabingui project to be economically viable. Once financing is in place, the project will be ready to take to the next level of development.

development and transition into a producer, a new bankable feasibility was needed in 2017.

“So we had a study in 2014,” he says. “Then we had an application for exploitation/production permit, which takes time. Then an environmental study, and then it needed to go for governmental approval, and suddenly here we are in 2017.” Both the 2014 and 2017 studies showed similar excellent economic results, being a low cost,

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highly profitable operation with significant free cash flow At the time of writing, Mackenzie, having received a term sheet from West African bank, Coris, to fund the low capex of US$12mn, is waiting for the bank to now present a formal loan agreement document in order to take the next steps towards bringing Makabingui live.

The goal for Bassari does not simply end at bringing Makabingui into production and making the transition towards being recognised as a significant gold player in West Africa and beyond, Mackenzie is very keen to stress that for him, Bassari is a developer, not a seller.

“I’d like to follow the likes of

MINING

“I believe this Senegal/Mali belt in which our permits lay will very much be the next great gold greenbelt in the world” – Alex Mackenzie, Executive Chairman Randgold and convert Bassari into a major mine player in Senegal,” he says. “This Senegal/Mali belt which our permits cover will, I believe, very much be the next great gold greenbelt in the world. Makabingui and the work we can achieve with the project will play a big role in getting us there.”

Powered by partners For any mining company, a strong relationship with the government in which its operations are based is crucial. If one does not gain the government and community’s trust, an operation can fail before it has even started. Also, a good relationship with local Senegal partners such as WATIC and Sengold Mining are imperative.

Mackenzie is a wellrespected name amongst the mining world, having worked as a chartered accountant with a special focus on the mining sector and sitting on the board for a number of mining companies across Senegal, Ghana, Ecuador, Brazil, Solomon Islands and Australia.

Perhaps his most noteworthy work saw Mackenzie discover the mineral potential of the Sabodala Gold mine, the first and currently only large-scale gold mine in operation in Senegal.

It was this significant role in the development of Sabodala that has

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Email: info@redstar.construction

Red Star Construction is a privately owned construction company, incorporated in Burkina Faso, focused on servicing the West African region. Red Star provides services to exploration, mining and infrastructure clients in all areas of construction and maintenance services. We have the capacity to undertake earthworks, concrete works, buildings construction, camp maintenance, structural/mechanical, piping installation and transport services.

I N F O @ R E D S TAR .CO NST R U CT IO N

MINING

earned Mackenzie the respect of the Senegalese government, as well as the mining ministers.

“That relationship is vital,” says Mackenzie. “I got Sabodala off the ground with Nic Limb and Jeff Williams of Mineral Deposits (MDL), along with my friend Peter Spivey [Non-Executive Director]. The government fully supports our company and provides me with a sense of freedom to help develop Makabingui and in return, shape the future of Senegal.”

Of course, Mackenzie is not alone. As noted, he recruited Peter Spivey, a successful mine developer who was instrumental in the development and construction of the $250mn Sabodala mine.

For the day-to-day operations, Mackenzie will require more than 200 members of staff to help bring

Makabingui into production. For this, the company calls upon the expertise of Mincore Australia, one of the most successful mining and engineering contractors in Australia, Redstar, a construction company specialising in West Africa, and Vanture International, key supplier of mining equipment.

“Mincore really are outstanding.

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BASSARI RESOURCES

“I want to emulate Randgold in terms of the impact it has made in Mali.

It’s not all about making money. We have a real opportunity here with our work on the Birimian green belt to help transform a third world country, and that is what is truly satisfying” – Alex Mackenzie, Executive Chairman

They have incredible experience and some of the best mining engineering people in the world working in Australia,” says Mackenzie.

“Of course, there’s Peter, who has developed a number of mines in West Africa, and will bring a number of his best mining people to work on Makabingui, so we are really well placed on that front.”

The needs of the many As an Australian listed mining company, Mackenzie is all too aware of the its responsibility to provide more than just a mining operation to Senegal. A mining company can live or die on its relationship with local government, and a key element of that lies in its responsibility to be a good corporate citizen.

“I am incredibly proud of our social contributions as a company,” says Mackenzie.

“We’ve always been conscious of our impact to the local community and we have committed more than $1.5mn on community engagement and infrastructure alone. Having a good, win-win relationship is the only way it can work.”

One such example of the company going the extra mile in order to benefit the local community has seen it take a unique step, one that allows for artisanal mining to continue to take place within Bassari’s mining permits.

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MINING

“We have allocated an area where artisanal miners can continue to operate in order to continue generating cashflow,” he says. “Most organisations ban this, but we allow that in order to enable the local community to thrive and to prosper for itself, and not just through our direct work with Makabingui.”

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Number of employees at Bassari Resources

Informing an industry As Makabingui approaches production, Mackenzie will soon begin to think about developing a number of deposits that fall under the company’s many identified anomalies along the Birimian green belt with one in particular that could surpass Makabingui and truly define the Senegalese mining space.

We’ve done some initial drilling already and found resources at around 100,000 oz of gold at Konkoutou,” he says. A number of large international mining companies and consultants have actually stated that Konkoutou

could develop into a multi-million ounce deposit. This is all potential of course. Mackenzie’s focus right now is 100% on bringing Makabingui into production and establishing Bassari as a major player in the West African mining space.

“As I said before, I want to emulate Randgold in terms of the impact it has made in Mali,” he says. “It’s not all about making money. We have a real opportunity here with our work on the Birimian green belt to help transform a third world country, and that is what is truly satisfying.”

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MINING TOGETHER BUILDING TOGETHER

THE GCO FAMILY

Written by Ben Mouncer Produced by Richard Deane

Grande Côte Operation’s new CEO Jozsef Patarica took on the reins at the Senegalese mineral sands mine earlier this year and, in an exclusive interview, explains his collaborative vision for its future

The mine’s dredge moves seven to 10km per year

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MINING

W

hile sustainability and technology sit at the heart of TiZir’s vision for its Grande Côte Operation (GCO) in Senegal, the mine’s new Chief Executive Officer Jozsef Patarica maintains that the most vital component of its makeup is its people.

In fact, Patarica, who took over ultimate responsibility for the mineral sands mine in June, goes as far as describing GCO’s workforce as “one, big family”.

Extending down more than 100km of Senegal’s west coast, GCO has been mining for zircon, ilmenite, rutile and leucoxene since its ambitious project kicked off production in 2014, 10 years after MDL was commissioned by the government to explore opportunities in the region.

Senegal’s much-envied economic stability, along with the mine’s proximity to Dakar – it rests 150km northeast of the country’s capital city – means that GCO has come across very few obstacles in gathering a skilled, motivated

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talent core to run its operation.

“The key thing that I see here is that there’s a very strong sense of family at GCO; we want to work together to always improve the business.

As a family, we’re quite proud of what we can achieve and what we have achieved,” says Patarica.

“GCO directly employs about 670 people, including expats for the development and training

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of our local workforce.

“For me, Senegal is an amazing place. There’s a lot of mineral wealth in the country and the government is very serious about developing the mining industry.

The Senegalese are very welleducated, hardworking people with an interest in training and continuous improvement. Additionally, turnover has been pretty low.”

MINING

“The key thing for me is creating a sustainable business for Senegal. We’re here for the long haul” – Jozsef Patarica, CEO Grande Côte Operation

GCO partakes in a number of community activities

GCO portside operations

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GCO mines around 50mn tonnes of sand every year

That sense of togetherness is something that Patarica hasn’t closed off to just GCO and its employees – it’s a philosophy he has introduced with the mine’s partners and suppliers.

Patarica heads a quarterly meeting with representatives from each of the mine’s contractors to offer them an overview of the business’s performance, as well as to share ideas for facing key issues.

“All of our partners are equal, even if they have different roles and different scales of influence,” he adds.

“We spend a lot of time on

sustainability but we also talk about productivity, and it makes them more a part of the business. It’s something I truly believe in. Just because someone’s a contractor or supplier, it doesn’t mean they don’t need to know how the business is performing and what they can do to contribute.”

Sustainability and CSR At the centre of the mine’s operation is its award-winning, automated dredge, which moves at a rate of 25-30m per day or, depending on the topography of the landscape, up to seven to 10km per year.

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G R ANDE CÔ T E O PERAT I O N S SA

To maintain this smooth progress along the mine path requires a considerable amount of forward-planning and cooperation with local villages and hamlets affected by the mine path, an area of focus that is of paramount importance to the CEO. “It’s absolutely critical. With the leadership team, we’ve spent a lot of time going out into the local villages, into the local community and understanding what they need and how we impact on them,” says Patarica.

“There’s quite an active planning process that looks well ahead and it’s all interlinked with the social department in terms of what we need to do when relocating people, and what we need to do to allow people to cross the mine path once we’ve moved through.”

GCO has developed what it called its Project-Affected People village (PAP), a resettlement area for local people where it has built solar-powered concrete buildings supplied with a water system.

Around 98% of the ore that is dredged is immediately returned back to the dune system which GCO restores via an innovative rehabilitation programme that ensures the rapid regrowth of vegetation.

With a minimum mine life of 25 years, such initiatives are imperative if GCO is to reach its sustainability goals.

Antti Maentausta Production Support Manager

Bruno Delanoue GCO Chairman

Jacques Leclerc Head of Department – Safety

Michael Rose Area Manager Mining

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MINING

Jozsef Patarica CEO

Prior to joining MDL, Jozsef spent eight years as a Director of ASX listed Bassari Resources Limited focused on discovering and developing multimillion ounce gold deposits in the Birimian Gold Belt, Senegal, West Africa. He is a mining professional with a strong track record in the mining industry spanning 24 years. He has been involved in management, project evaluation and operational roles throughout his career in a number of mining centres across Australia and Senegal. He was involved in the development and operational management of the Fosterville Gold Mine (BIOX) in Victoria where he successfully transitioned the operation from open pit to underground mining. Prior to Fosterville, Jozsef was part of Placer Dome’s Corporate and Project Development Group based in Australia. He was part of the team for Newcrest involved in the construction and commissioning of Cadia Hill Gold Mine in NSW and, whilst in Western Australia, he was part of the team which successfully constructed and commissioned the Stage 3 expansion of the Fimiston Plant for Kalgoorlie Consolidated Gold Mines.

Jozsef has a Bachelor of Engineering, Master in Business Administration (Technology Management) and is a member of the Australian Institute of Company Directors and Australasian Institute of Mining and Metallurgy.

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Driven by technology While the state-of-the-art dredge is one of the mine’s main time savers, Patarica is determined to embrace further technologies to maximise efficiency, from production through to its rail network and its presence at the Port of Dakar.

“We want to be leaders in terms of innovation,” he spells out. “We have a business intelligence project that we’ve initiated across the mine in particular, but we are expanding it through the entire value chain from pond to port.

“We’re aiming at standardising our time usage models and then looking to implement a software system where we can analyse data and then using that data to make decisions, to be more proactive rather than reactive.

Rail is a key mode of transport for GCO

“We want to be able to use our information to predict what is going to happen and to then make changes to make sure we maximise productivity and foresee and mitigate risk.”

Premium zircon GCO mines around 50mn tonnes of sand every year, making it the biggest mineral sands operation of its kind in the world. Its orebody consists primarily of ilmenite and zircon, with smaller but high-value quantities of rutile and leucoxene.

The majority of its ilmenite is delivered through its integrated logistics system to its titanium and iron ilmenite upgrading facility in Norway, which is owned by holding company TiZir. Zircon is produced in either a standard

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or a premium quality, and Patarica revealed his team at the mine’s Mineral Separation Plant (MSP) has recently uncovered a useful method of developing more premium zircon without incurring any additional capital.

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“The team has looked at existing equipment and has optimised the circuits to create significantly more value by improving run time, utilisation and premium production output,” he explains.

“These changes have increased the amount of premium zircon that we can deliver to the market. We actually get a higher price for that zircon as well; so, for no additional capital outlay we generate more revenue. There’s no other mine in the world that can deliver the premium quality zircon that we can.”

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“With the leadership team, we’ve spent a lot of time going out into the local villages, into the local community and understanding what they need and how we impact on them” – Jozsef Patarica, CEO Grande Côte Operation

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MINING

The future Though GCO has enjoyed a successful start to its production cycle, Patarica is determined not to let standards slip. Continuous improvement is demanded from the top down, and a six-person mine optimisation team is in place to make sure adjustments are continually made for the better.

The team has a blend of experience, with mechanical, electrical and geological expertise fuelling a unit that strives to find improvements. Runtime is at the top of its priority list.

“The team has a number of projects in progress and is driven by the key issues that cause the longest amount of down time. That’s their

A GCO resettlement village

mandate,” adds Patarica.

“The key thing for me is creating a sustainable business for Senegal.

We’re here for the long haul and we’ve got to get a return for our shareholders and key stakeholders and through that process we have to create a lot of value internally within Senegal.”

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REVOLUTIONISING AFRICA’S DATA CENTRE INDUSTRY Written by Catherine Sturman Produced by Richard Deane

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VIEWED AS ONE OF THE LARGEST GROWTH MARKETS WORLDWIDE, MULTIPLA’S DATA CENTRE IN ANGOLA CONTINUES TO MAKE WAVES WITHIN AFRICA’S DATA CENTRE INDUSTRY

I

n the face of a growing digital demand, the need for businesses to store data securely without impacting on ongoing business operations is growing apace.

Companies are increasingly looking at ways in which to relocate data from private servers to cloud-based solutions, whilst eyeing areas of future growth by building data centres within new, untapped markets.

Africa has been viewed with interest, and has become one of the biggest growth areas worldwide, according to Michael Tobin, former Chief Executive of data centre operator Telecity.

He explains: “You have a growing population, a changing affluence…

Add to that the fact that the continent has leapfrogged technology and gone straight to mobile, stabilising governments and eastern investment

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are all the ingredients you need to guarantee the fill rates of data centres.”

Whilst large multinational companies, such as IBM and Microsoft are therefore looking to grow their services within Africa, Angolan based company MULTIPLA has been at the forefront of this space, and has grown its services to establish itself as a key player within the African data centre industry.

The company’s new data centre has been constructed with an emphasis on collaboration and delivering key solutions to its customers.

“At the time of construction, there were increased concerns that Africa was not entirely prepared for such service delivery to clients, as most data centres at that time were company data centres,” explains MULTIPLA Operations Manager Tiago

CONSTRUCTION

I n s i d e M U LT I P L A ’ s flagship data centre

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CERTAINTY IN A CONNECTED WORLD

Integrated IT physical infrastructure and software that provides reliable power and availability solutions for IT and communications technologies.

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CONSTRUCTION

Nogueira. “We opened in 2013 for clients, but it was a challenge. It was not something that you saw much in Angola at that time.” However, since its launch and with ongoing success, the company has seen the rise of local and international competition.

“It is good news compared to the way the market is at the moment.”

Working together and sharing best practices, Schneider Electric had a team member in Angola to assist with the engineering, remaining in direct contact surrounding the overall design works. Schneider Electric Innovative design also assisted with the shipment of Partnering with technology vital equipment to Angola, which giant Schneider Electric has seen MULTIPLA gain throughout its critical certifications, construction, required to reach MULTIPLA now international has 36 racks for standards. colocation and “That’s how 15 for its own we assist our The year Multipla, infrastructure and partners – not just LDA was founded developing local cloud in the delivery of the services. Built to enable equipment, but also scalability, Nogueira explains with the design and build. that this will enable MULTIPLA to grow The customer feels that they are in its services as the business grows in safe hands, and they can focus on order to further support its clients. their business, which is to filling up “Supporting the design and the data centre,” De Almeida notes. implementation, we are now working Additionally, utilising 100% APC on the second phase as MUTIPLA

by Schneider Electric equipment and continues to grow,” comments other APC technologies, MULTIPLA’s Ronald De Almeida, Commercial platform is now supported by manager SADC, Schneider Electric.

Schneider Electric. “Our two lines of

1995

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M U LT I P L A , L D A

power are supported by Schneider Electric’s modular UPS system and our cooling is fitted by Schneider Electric as well,” Nogueira adds.

Nonetheless, power continues to be a challenge throughout Africa, which can heavily impact MULTIPLA’s operations. “In Angola, the production of power is not enough for what the consumption is, so there are a lot of shortages. The quality of the grid and the distribution is not yet built for optimal performance,” Nogueira says.

“We are entering the rainy season where we can predict more shortages of energy, which means that we will probably be running on generators around 60% of the time.

Things have been improving but we are not there yet, and the quality of the power provided by the grid can be at different ranges, which can put equipment in jeopardy.

“If you look at the colocation business we are providing, we guarantee the power and essential cooling to our customers’ equipment 24-7, so the infrastructure part has to be met. We cannot let down banking, insurance or distribution

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services due to shortages of electricity in one part of town, for example. That’s what we ensure through the colocation business.”

Business strategies Upon the completion of the first phase, Schneider Electric worked to counteract and resolve any issues which became apparent within MULTIPLA’s data centre operations. Its proactive response led a field engineering team to arrive on site and fix all issues created from previous contractors, including an upgrade of existing piping that was not up to company standard.

“We look at the implementation and installation, and advise our customers where they can improve at the minimal cost. When equipment doesn’t function, we replace it and ensure things get up and running. We ensure everything is done right from the word go,” De Almeida explains.

Additionally, to attract local and international business, security continues to be a key feature throughout the overall design and maintenance of MULTIPLA’s data

CONSTRUCTION

“In Angola, the production of power is not enough for what the consumption is. The quality of the grid and the distribution is not yet built for optimal performance” – Operations Manager, Tiago Nogueira (MULTIPLA)

centre. “If you approach a bank in Angola, the first thing they will want to know is the security of that data centre and the certifications which that data centre has complied to,” explains De Almeida. With such focus, MULTIPLA now provides its services to a large number of banking, insurance and distribution companies, ensuring all data remains secure.

“We explain to clients that they should keep their resources to what their core business is – banking people should be banking and not looking after

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M U LT I P L A , L D A

generators and UPS’s and cooling systems,” comments Nogueira. “We can do that for them and can assure the security of their equipment and data in our data centre.” MULTIPLA is also alerted to any potential discrepancies within client services, and deploys any procedure which clients have put in place, further supporting its ongoing service delivery.

“If you don’t monitor, you don’t control, and if you don’t control, you don’t manage,” adds Nogueira. “That’s the kind of service we provide on top of controlling our own infrastructure.”

This increased customer focus echoes that of Schneider Electric’s ongoing business strategy. De Almeida explains that the company works to strengthen its existing partnerships as part of its service delivery strategy, which has proved advantageous, especially in areas such as Angola and the partnership with MULTIPLA. “It strengthens our relationship, as particularly in Angola, a lot of vendors, multinationals and expats left the country when the market crashed. Instead of doing the same as our competitors, we would

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rather put all of our investment and resources into servicing the customers that we have in this market.

“Just word of mouth of what we are doing for these particular customers has driven our business considerably,” he says.

Internal strengths Both MULTIPLA and Schneider Electric have placed increased emphasis in guaranteeing exceptional service delivery to its customers, which starts from the bottom up.

Nogueira explains that internal training has become a vital part of MULTIPLA’s core business functions in order to remain competitive against a maturing market within Africa.

“To get the best people, we have a local resource policy. We are always looking and actually, when we say best people, my question would be - what would be the best for you, and what is the best for us? That is the first thing.

“Training is necessary – and with a 24-7 approach, it is something that is rewarding.”

Providing operational training for free, Schneider Electric sends

CONSTRUCTION

“If you don’t monitor, you don’t control, and if you don’t control, you don’t manage” – Operations Manager, Tiago Nogueira (MULTIPLA)

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M U LT I P L A , L D A

M U LT I P L A ’ s d a t a centre is based in Angola

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CONSTRUCTION

“It’s not just managing data centres, it’s also to dive into local communities and look to the future” – Commercial Manager, Ronald De Almeida (Schneider Electric) teams to train clients on whatever aspect they have purchased, in order to make clients completely selfreliant, with a backup if required.

“We are embarking on a programme in Angola with Utanga University, which is the technical university in Luanda with over 25,000 students,” De Almeida says. “We are setting up a data centre for the university, but it is also a training centre where students can learn the technology of the data centre and we encompass this whole programme as a global exercise.

“It’s not just managing data centres, it’s also to dive into local communities and look to the future.”

Future growth Five years ago, MULTIPLA worked to convince the Angolan community to dive into the data centre industry and utilise colocation, to which its ongoing success speaks for itself.

Today, the company continues to work on developing its cloud services, providing new products and looking towards new business opportunities, supporting clients throughout their business operations.

“We now have a five-year-old data centre,” concludes Nogueira. “In terms of the services and support which we provide to our clients, there is no other competitor in the market.”

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Driving innovation in retail logistics

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TFG

With stores spanning 34 countries, TFG has truly cemented itself as a market leader in the retail industry.

Head of Logistics, Jan Tukker, explains how the company is continually improving its supply chain and logistics process with technological ingenuity

3

R E TA I L

W

ith brands such as Foschini, Markham, Sportscene and @home under its belt, TFG is a name which is synonymous with retail. The company first set up shop in Johannesburg, South Africa, in 1925 and today, the retail giant has over 3,300 outlets in 34 countries across the globe.

Overseeing the logistics function within the TFG supply chain is Jan Tukker, Head of Logistics. Having worked at the company since 1998 in roles such as Systems Manager, Senior Financial Manager and beyond, Tukker is well-placed at the helm of the group’s logistics team.

TFG is widely regarded as one of the most successful and profitable retailers in South Africa. However, despite its success, the group is keen to evolve further by continually improving efficiency in its supply chain. “I’ve been with TFG for some time now and over that time we have significantly developed the logistical network and our supply chain processes,” Tukker says. w w w. a f r i c a n b u s i n e s s r e v i e w. c o . z a

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TFG

More than 5% of total sales internationally are generated through online sales “Driving efficiency in our supply chain is very important to us. We still have plenty of opportunity to improve, whether that’s by enhancing our stock turn, our stock holding, or our replenishment speed.

“A huge amount of competition has come into South Africa and, like any retailer, we need to be more efficient and conscious of the small things to ensure that we continue to succeed.

Therefore, continually enhancing processes that improve productivity and efficiency is crucial to us.”

5

Speed of service As a forward-thinking company, TFG stocks trend-setting, fashionable items as well as products which will sell all year round and are easy to replenish. To ensure that these items remain on trend, agility or ‘speed of service’ is a vital area of focus.

“For some of our retail brands, unit sales are growing quite rapidly partly due to negative inflation,” says Tukker. “As a result, our supply chain is under increasing pressure to quickly deliver these products.

R E TA I L

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RTT STYLE is the largest logistics provider within the Fashion, Footwear and Lifestyle sector in South Africa, with over 70% market share.

Partnering with TFG for over 18 years, we have gained tremendous insights and experience within this niche market. We see ourselves as an extension of our clients, priding ourselves in our client centricity and agility in this ever changing environment.

Through our strategic positioning and focus driven approach, our clients are able to leverage a competitive advantage within the market. Our focus areas of speed, consolidation, reliability and frequency, are all underpinned by state of the art technology, which differentiates us from our competitors.

Adopting an On-Demand Omni-Channel distribution strategy, we have created a service offering tailored around the ever evolving needs of the consumer, becoming the benchmark against which the South African logistics industry is measured.

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TFG

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R E TA I L

“A huge amount of competition has come into South Africa and, like any retailer, we have to be a lot more efficient and conscious of the small things to ensure that we continue to succeed” – Jan Tukker, Head of Logistics To manage this effectively we are developing and expanding our distribution centre capability.”

“We want to make sure our supply chain is agile by creating what we call multi-business distribution centres.

These will allow suppliers to deliver to multiple distribution centres across the country rather than just the one which is available in the current systems and processes. This is a big project from a distribution centre footprint and IT point of view. We will be leveraging our investment with our WMS supplier, Manhattan Associates to make this happen.”

Visibility Managing stock levels is critical for any retailer and with over 21 brands, visibility within the supply chain is more important to TFG than ever,

says Tukker. “Visibility has been a big focus for TFG because it enables us to reduce stock, it allows us to know where our products are, and it allows us to improve our decision-making. It is an area where we are showcasing innovation in everything that we do.

“So, for instance, we are currently using software called Llamasoft Supply Chain Guru to model and evaluate our supply chain network from supplier all the way through to our customers.

This enables us to optimise our supply chain by selecting the right locations for our distribution centres.”

Global footprint Spanning several continents, TFG has a wide-reaching global footprint.

In recent years, the company has procured numerous big-name retailers such as Phase Eight, Whistles

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and Damsel in a Dress in the UK and The Retail Apparel Group in Australia. “We are currently in a space in our organisation where we have procured other retailers not only in South Africa, but also Internationally,” says Tukker. “We continue to open stores in South Africa and in selected African countries, but are growing our international footprint at the same time.”

Whilst the company is targeting new territories, it has strategically targeted the value, mid and high customer segments within the market. “This is

9

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a strategic move which shields TFG from economic risks,” explains Tukker.

“If the economy declines and consumer spending is under pressure, people will want to buy value products and so we have strong value brands in Exact and The Fix. In the upper market we have brands such as Fabiani, @home and G-Star Raw. TFG has brands spanning all three of these markets positioning ourselves to capture all three of those market segments. This makes us a less risky as an investment opportunity because we cover all areas of the market.”

R E TA I L

“Customer centricity is a key focus for TFG and our Supply Chains need to ensure that ever increasing customer demands are met�

Jan Tukker Head of Logistics

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Trusted logistics partner to TFG “Equites is the only specialised industrial REIT on the JSE and gives investors pure exposure to modern logistics properties� info@equites.co.za T +27 21 460 0404

R E TA I L

“Driving efficiency in our supply chain is very important to us” – Jan Tukker, Head of Logistics Driving efficiency This large footprint hasn’t come without its challenges, particularly in South Africa. TFG has embarked on several projects using the Lean Methodology, whereby it aims to cut out waste from its supply chain. “Over time inefficiencies creep into processes which need to be reevaluated to remove unnecessary time and cost. We have multiple projects across our supply chain addressing these areas of waste, continually improving the way we work.”

“There are quite a few suppliers that have helped us to develop our Logistical Network to the level that it is at now,” comments Tukker.

“Notably, a long-standing logistics partner of ours is the RTT Group.

They are responsible for the transport from TFG’s distribution centres to our stores and in that process, they haven’t been just a trucking company, they have been valuable partner.

They are now implementing a much more sophisticated, digital, delivery mechanism to stores allowing our stock position to be more visible.

We’re also working with Adjuno, whose head office is in the UK, on developing improved supply chain collaboration between TFG and our stakeholders.

This will result in better visibility of orders from suppliers into our DC’s and is all part of digitizing our supply chain.”

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TFG

The road ahead As a retail giant, TFG has captured the hearts of the South African and global market. But, with such visible successes, what is the company’s next move? “We’re going to continue to grow and become more efficient,” Tukker says. “Our online presence is growing quickly and more than 5% of our total sales internationally are generated through online sales. Customer centricity is a key focus for TFG and our Supply Chains need to ensure that ever increasing customer demands are met.”

“We will continue to drive efficiency, agility and visibility in our supply chains which will allow us to react quicker to sell better. We’ll be analysing the data in our supply chain at a completely different level and are going to become more analytical. We’re driving to always understand global trends and improve our supply chain because, in retail, it is an ever-evolving world.”

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R E TA I L

Inside one of TFG’s w w w. a f r i c a n b u s i n e s s r e warehousing v i e w. c o . z a facilities 14

The Greens REFINED living in Ghana…

Written by Dale Benton Produced by Richard Deane

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CONSTRUCTION

In modern Ghana, luxurious living comes at a price. Kiran Daswani, founder of The Greens, looks to change this perception through the world’s most sought-after currency, TRUST

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n construction, there is one thing that can define the quality and integrity of a contractor or organisation – delivering on a promise.

The blend of quality and affordability in a real estate development is often hard to find, and not many property developers have been successful at executing this combination without compromising someway, somehow.

That notwithstanding, some property developers start off by first considering their target market and what kind of homes their prospective clients can afford, but in many cases, there can be a number of roadblocks along the way that haven’t been taken into account.

For The Greens, the promise of a carefully crafted, gated and secure community with amenities and conveniences of modern living within

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THE GREENS

Tema, Southern Ghana, is more than simply a property development promise: it’s a commitment.

“The Greens and the people behind it, we are here for the long term,” says Kiran Daswani, Founder of The Greens.

“What satisfies me the most is meeting and understanding the clients’ needs, it gives me pleasure to witness the achievements of my team and making a real difference.

I want to see people fall in love with their homes, and truly desire them.”

Daswani has a close relationship with the African continent, having lived

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in the Ivory Coast for a number of years. In 2014, Mulk Holdings, the multi-billion dollar conglomerate and Daswani formed Alubond West Africa in Ghana.

“Last year, we acquired seven acres of land in Tema,” says Daswani. “The community for our housing was designed to provide quality living space that users and homeowners will truly cherish, at an affordable price, which is a real gap in the market we are looking to tap into.”

In the first phase of construction, The Greens will see the construction

CONSTRUCTION

“What would success mean for me?

Manifesting the reality of our promises.

Delivering comfortable and refined homes at an affordable price�

of 12 houses which will be handed over in December this year. The overall masterplan for the development will see a fully completed community of 164 duplexes by the close of 2019.

Usually, with a construction development of this size and scope, the developer will subcontract various elements of construction to a number of third parties. The Greens

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THE GREENS

“The construction industry is one of the easiest spaces to cut corners,” she says.

“We are more than developers, we are the contractors and the builders. It provides us with an added value because at the end of it all it is our reputation, our responsibility” will stand tall and do things a little differently, completing all construction responsibilities completely in-house.

Daswani feels this is a testament to the integrity of The Greens and a sign of the quality assurance that the company is offering to its clients.

“The construction industry is one of the easiest spaces to cut corners,” she says. “We are more than developers: we are the contractors and the builders. It provides us with an added value because at the end of it all, it is our reputation, our responsibility.”

This added value allows The Greens to not only differentiate itself, but to ensure that it will do everything it can and pride itself as a business on its ability to deliver on its promise.

“We control the quality as much as possible to ensure that we are

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delivering what we are projecting to our clients,” Daswani adds.

This personal quality control approach to the development transcends throughout the entire organisation. Daswani, the members of her team at Alubond West Africa, Pre-Engineering - the contractor company that The Greens works with, and everyone leading The Greens are all based in Ghana.

This allows the company to provide a much more personal touch to the development. It provides The Greens, as Daswani points out, with a significant sense of credibility, which makes all the difference.

“We are the faces of the company, and we are out there meeting the clients and developing relationships,” she says. “In property development,

Kiran Daswani, founder of The Greens

THE GREENS

to see the leaders right there on site, actively on the ground, gives credibility.

Property buyers don’t always want to go through salespeople - they want to meet the leaders and the people at the top and it plays a huge role.”

Daswani noted a gap in the affordable housing market, one that she feels The Greens can fill perfectly as Ghana and the region continue to grow and emerge as an attractive investment destination.

The typical buyer has changed - it has now become younger

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professionals and first-time buyers with two incomes. This has shaped the entire decisionmaking process of The Greens.

“People need affordable housing that looks and feels good, not housing that is out of their reach,” Daswani states.

The Greens offers two and threebedroom houses from an initial starting price of $69,000 to $100,000.

Consider the same properties, but in Accra, the closest city to Tema, and that price range rockets to a much heftier price point of $300,000.

CONSTRUCTION

Daswani, though, believes what The Greens will offer alongside an affordable price is an added value of creating and nurturing a community like no other.

“I believe that when you invest in property, it’s not just the property you’re investing into, there’s the life beyond that,” she says. “We will do what we can to ensure that the community runs and prospers, as it should.”

Daswani has an unrivalled passion for enriching a life which will, in turn,

enrich the lives of the many that choose to find their home in The Greens.

For her, it is about developing trust.

“What would success mean for me?

Manifesting the reality of our promises,” she says. “Delivering comfortable homes at an affordable price.”

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