African Review June 2012

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www.africanreview.com

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

June 2012

African Review of Business and Technology

P40

June 2012

TV show tips on concrete

Volume 47 Number 14

P42

Pipe technology

for port

project www.africanreview.com

Manufacturing:

Transport:

Finance:

Entrepeneurship in lighting products P34

Efficient rail infrastructure for economic growth P27

The African vision of Arnold Ekpe, Ecobank CEO P22

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Ethiopian Airlines has joined Star Alliance.

Connecting me to 25 global airlines.

Now collecting miles is easier than running them, even for me.

I’ve earned it.

H a i l e Ge b re s e l a s s i e 4 times world champion athlete, holder of 27 world records and Star Alliance Gold Status

staralliance.com

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UP FRONT www.africanreview.com

Editor’s Note

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

June 2012

P40

TV show tips on concrete

C

ommercial success is a critical component of security, efficiency, and sustainability. That is indubitable. The ways in which public sector policy initiatives impact on private sector enterprises can bear social as well as economic outcomes. That is understood. What may be seen in the pages of this issue is a profile of a continent in which governments, advisory groups, enterprises and individual entrepreneurs are genuinely trying to move forward - and are achieving their objectives, or are well on their way towards achievement.

Companies expand as they serve people, other companies, and institutions. They do business, within districts, across nations and internationally. Here, in the pages of this issue of African Review of Business and Technology, be sure to read of ventures with local profiling, and commercial concerns with pan-African reach. Common to all, crucially, is a vision, an ambition, to present challenges, and to overcome challenges, to deliver, and to create wealth. In this regard, the best of Africa’s leaders - in business, in government and in society - are amongst the best of the continent’s servants.

Andrew Croft, Managing Editor

Contents

P42

Pipe technology

for port

project Manufacturing:

Transport:

Finance:

Entrepeneurship in lighting products P34

Efficient rail infrastructure for economic growth P27

The African vision of Arnold Ekpe, Ecobank CEO P22

Cover picture: Key intra-continental initiatives contribute to developments in infrastructure and services that unlock business in key economic sectors (Photo: DPI)

REGULARS 04 Agenda:

14 Bulletin:

Public and private sector initiatives, around Africa

P27

50 Solutions:

Engineering innovations, and developments in sea freight

Environmentally-friendly technology for gas

FEATURES 18 Economy How Zambia’s industrial enterprises may be affected by government policy and fiscal measures

20 Finance Understanding underinsurance; profiling Arnold Ekpe, CEO of Ecobank; and celebrating a decade of action to bank the unbanked

27 Transport

P38

Multi-modal initiatives to improve economic performance in South Africa

28 Logistics E-commerce to make air freight operations more efficient

31 Power Energy-efficiency with LED lighting; and Mahindra Powerol’s growing African presence

34 Manufacturing The entrepreneurship underpinning the success of a Kenyan lighting company

38 Construction Modern handrailing; a televised show house; highway maintenance; subsurface pipeline technology; and the innovations on show at Intermat Audit Bureau of Circulations Business Magazines

47 Mining WAMPEX highlights commercial opportunities in West African mining and power sectors Special Projects Manager: Jane Wellman Email: Jane.wellman@alaincharles.com

Managing Editor: Andrew Croft andrew.croft@alaincharles.com

China: Wang Ying Tel: +86 10 8472 1899 Fax: +86 10 8472 1900 Email: ying.mathieson@alaincharles.com

Editorial and Design team: Bob Adams, David Clancy, Prabhu Dev, Immanuel Devadoss, Ranganath GS, Prashant AP, Genaro Santos, Zsa Tebbit, Ewan Thomson, Nicky Valsamakis and Julian Walker

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: tanmay.mishra@alaincharles.com

Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey Advertising Sales Manager: Camilla Capece Tel: +971 4 448 9260 Fax: +971 4 448 9261 Email: camilla.capece@alaincharles.com

Nigeria: Bola Olowo Tel: +234 80 34349299 Email: bola.olowo@alaincharles.com Qatar: Saida Hamad Tel: +974 55745780 Email: saida.hamad@alaincharles.com

Russia: Sergei Salov Tel: +7495 540 7564 Fax: +7495 540 7565 Email: mne@acpmos.ru South Africa: Annabel Marx Tel: +27 218519017 Fax: +27 46 624 5931 Email: annabel.marx@alaincharles.com UK: Steve Thomas Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Email: stephen.thomas@alaincharles.com USA: Michael Tomashefsky Tel: +1 203 226 2882 Fax: +1 203 226 7447 Email: michael.tomashefsky@alaincharles.com

Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215, Loft No 2/A, PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261 Production: Nick Salt, Donatella Moranelli, Nasima Osman, Jeremy Walters and Sophia White E-mail: production@alaincharles.com Subscriptions: circulation@alaincharles.com Chairman: Derek Fordham

Printed by: Wyndeham Group US Mailing Agent: African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year by Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, UK. Peridicals postage paid at Rahway, New Jersey. Postmaster: send address corrections to Alain Charles Publishing Ltd, c/o Mercury Airfreight International Ltd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

African Review of Business and Technology - June 2012

3

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NEWS

Agenda / North Alstom completes Shoaiba III power plant Power company Alstom has completed the handover of the 1.2 GW Shoaiba III steam power plant to the Saudi Electricity Company (SEC), following timely completion of the project's final unit. Shoaiba III will be instrumental in helping Saudi Arabia meet the rising demands for electricity across the Kingdom as its economy expands through industrialisation and urbanisation.

Comprising three The Shoaiba III power plant individual 400 MW blocks, the Shoaiba III plant began in September 2008 and has been built around Alstom's proven STF40 steam turbines and GIGATOP 2-pole turbogenerators. To meet stringent Saudi environmental regulations, it also utilises Alstom's environmental control systems expertise. A seawater flue gas desulphurisation (SWFGD) system drastically cuts emissions by using brine to strip sulphur oxides from the flue gas, whilst NOx-reducing tangential firing technology employed in the boilers mitigates nitrogen oxides – both helping make Shoaiba III a cleaner electricity provider. Finally, the latest ALSPA power control systems ensure efficient management of the plant, so that it can meet the varying demands placed on the grid in a region, which includes the Holy City of Mecca.

Located on the Red Sea coast 100 km south of Jeddah, Shoaiba III is part of the enormous Shoaiba facility, which now generates a total of 5,600 megawatts to the Saudi grid from its 14 units. Not just the largest power plant in the Kingdom but also the biggest in the whole region, Shoaiba has become known as 'the Giant of the Middle East'. It follows 13 years of wellcoordinated hard work between top teams from Alstom and SEC, cementing the close relationship between the two organisations and demonstrating the high standards that can be achieved with the full support of both companies' senior managements.

Egypt’s infrastructure potential According to Pyramids International, organisers of Cario Buildex in November 2012, Egypt’s construction sector is expected to attract investments of around US$7.3bn by 2015, uplifting related industries such as cement, iron, furniture and electricity, to emerge as one of the country’s top revenue generators. Nonresidential construction will continue to dominate the industry and comprise up to US$6.7bn, with residential projects to account for U$606mn.

4

Construction accounts for around eight per cent of employment in Egypt, with about 100 different industries linked to the sector. The local construction workforce of around 1.2mn is the largest in the Middle East. With population growth at 1.9 per cent a year, Egypt is set to augment local housing construction further. This, combined with government initiatives to enhance housing finance and disposable incomes, will continue to build up the residential segment.

African Review of Business and Technology - June 2012

Bringing overseas companies back to Libya

T

he fourth editions of two major international exhibitions addressing Libya’s infrastructure and oil and gas sectors, Infrastructure Libya and Oil & Gas Libya, attracted 4,687 registered attendees late in April 2012 in Tripoli. Held over four days, the event was opened by Libya’s Minister of Oil, Abdul-Rahman Ben Yazza, who gave an inaugural address followed by a tour of the exhibition. Visitors included government and private sector planners, specifiers and procurement officials, engineers of all disciplines, specialist contractors, consultants and trading agents, all providing the essential contacts necessary to secure a part in Libya’s economic development. There were 197 exhibitors from 23 countries, including four national pavilions from Egypt, France, Netherlands and Turkey, as well as individual companies from Algeria, Canada, China, Germany, Italy, Japan, Korea, Lebanon, Libya, Malta, Oman, Poland, Romania, South Africa, Sudan, Switzerland, UAE, USA and UK. Displays included equipment, materials, products, technology, consultancy services and management expertise across prime sectors important to Libya’s economic progress, including construction, public works, municipal engineering, power, transport & communications, water and environment, and security. In terms of oil & gas, the event provided a major showcase for petroleum industry expertise by bringing international expertise together from leading oil technology companies involved in exploration, production, pipelines, refining and petrochemicals.

Infrastructure Libya 2012 and Oil & Gas Libya 2012 provided a unique and effective platform for international companies seeking to develop a relationship with those involved in implementing Libya’s far reaching development plans.

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Everything on track Life on the job site is as easy as it can get when working with Volvo equipment. Maximum reserve power, high paving output and efficiency are the strengths of a Volvo paver. And with Volvo screed technology and excellent traction, you achieve optimum mat quality. For intuitive operation, the EPM2 control panel shows the paver from a bird’s eye perspective. The brightly illuminated display and extensive lighting packages permit working around the clock. Making your job easy and safe. www.volvoce.com

Albarajoub Engineering Co. SUDAN Tel: +249 183 77 84 13 E-mail: info@albarajoub.com

Equatorial Business Group Pvt Ltd Co ETHIOPIA Tel: +251 911 457758 E-mail: ebg-eab.msm@ethionet.et

Auto Maquinaria Lda Auto Sueco (Angola) SARL ANGOLA Tel: +244 9 1250 7464 E-mail: adavid@autosueco.co.ao

Ghabbour Egypt EGYPT Tel: +2 02 42155314 E-mail: aelgammal@ghabbour.com

Auto Sueco Ltd KENYA UGANDA Tel: +254 713 974 808 E-mail: jose.moreira@auto-sueco.co.ke

Leal Equipements Compagnie LTEE MAURITIUS, MADAGASCAR, SEYCHELLES Tel: +230 207 2100 E-mail: djauffret@lec.lealgroup.com

TANZANIA Tel: +255 753 631 442 E-mail: p.pinto@autosueco.pt

Nordic Machinery TUNISIA Tel: +216 71 409 260 E-mail: khaled.haddad@nordic.tn

A. Yazbeck and Sons Ltd SIERRA LEONE Tel: + 232 22 232 324 E-mail: joe@ayazbeckandsons.com

Séra SENEGAL/MALI/ MAURITANIA Tel: +221 33 859 07 70 E-mail: contact.volvo@sera.sn

Babcock Equipment BOTSWANA, NAMIBIA, SOUTH AFRICA, ZIMBABWE Tel: +27 11230 7300 E-mail: enquiries@babcock.co.za

SMT Multi-Tech Services LTD BENIN/TOGO Tel: +229 21 381438 E-mail: info@multitech-bj.com BURKINA FASO Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com GHANA Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com LIBERIA Tel: +231 63 20181 E-mail: multitech@multitech-gh.com

ZAMBIA Tel: +260 2 611 693 E-mail: garthr@babcock.co.zm COGETP ALGERIA Tel: +213 20 36 0216 E-mail: kamel.saidani@cogetp.com

SMT BURUNDI Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CAMEROON Tel: +237 70 74 24 52 E-mail: info@smt-cameroun.com DEM. REP. OF CONGO Tel: +243 39 99 93 46 37 EUROPE Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CÔTE D’IVOIRE Tel: +225 21 75 16 27 E-mail: info@smt-ci.com NIGERIA Tel: +234 813 778 38 44 E-mail: info@smt-nigeria.com REP. OF CONGO (BRAZZAVILLE) Tel: +242 06 953 51 52 E-mail: info@smt-congo.com RWANDA Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu Volvo Maroc S.A. MOROCCO Tel: +212 22 67 8500 E-mail: ilyas.essaadi@volvo.com

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NEWS

Agenda / East Uganda-Bugajali power line commissioned The Bujagali Interconnection Project(BIP), which is expected to receive power from the Bujagali 250 mega watt hydro power dam in Jinja, eastern Uganda, has been commissioned and is currently generating 100 MW from the hydro power plant generation units to the national grid.

Uganda’s Ministry of Energy and Mineral Development says the project was intended to increasing access to less expensive and more reliable electricity supply and the units have replaced two 50 MW thermal power plants, one at Kiira and another at Mutundwe leading to the reduction of the amount of subsidy the government was spending.

"These savings are now being used to finance other social sectors and to fund additional infrastructure in the sector," The Energy Ministry notes of the project commissioning.

The Ministry adds that some savings were made on funds on the loan from Japanese International Cooperation Agency(JICA) and the ADB during the implementation of the project and the financiers have have approved the use of the loan saving to upgrade the switch yard at Bujagali to 220kV. Geoffrey Muleme

FLSmidth winder works in Mopani THE BLAIR MULTI-ROPE (BMR) production hoist being supplied to Glencore’s Mopani Copper Project in Zambia by global engineering company FLSmidth is a 5.5 metres by 1.5 metres BMR production hoist incorporating four drums. There are only about 50 BMR hoists of this type in the world, of which more than 80 per cent have been supplied by FLSmidth.

Manufacture is underway and the FLSmidth team will move on site in early 2013 to begin the installation, which is anticipated to take four to five months. Most of the smaller components will be sourced from South Africa, with the balance sourced globally.

“FLSmidth has a proven history in the design, manufacture and supply of robust, reliable mine hoists and South Africa is the Group’s centre of excellence for hoisting technology,” says FLSmidth’s Wendy Naysmith.

The Vecor arm of the company has its origins in the late 1940’s when Vanderbijlpark Engineering Corporation began operations, designing and supplying mine hoisting

6

Preliminary 3D drawing of the BMR hoist for Mopani

systems for the booming gold mining industry. Fuller Company invested in the Vecor supply operation, then trading under Dorbyl Heavy Engineering, to form FullerVecor in 1997.

In order to focus its activities in the mineral processing field, Fuller Company, based in Bethlehem, Pennsylvania, USA, and FullerVecor have since been renamed FLSmidth as part of a global brand strategy. The present day company has, over the years, developed the international reputation of being a leader in the supply of heavy industrial mining equipment, particularly in the fields of mineral processing and hoisting.

African Review of Business and Technology - June 2012

New housing needs

F

our East African states need to construct at least five million housing units to meet demand occasioned by rising population and a vibrant middle class. Uganda, Tanzania, Kenya and Rwanda will need to construct these new houses as their total population approaches 125mn. With a population of 45mn people, Tanzania has the highest annual demand of about three million new units. Urban demand of 200,000 new units has made Kenya a focal point for developers and diaspora cash in the last 10 years. Kenya’s National Housing Corporation says annual supply is around 36,000 annually. Rwanda with 10mn people requires 20,000 new units to cater fro the rising demand, while 1.6mn houses are needed in Uganda.

The State of East Africa report 2012, titled ‘Deepening Integration, Intensifying Challenges’, notes that East African cities will be among the fastest growing cities in the world by the year 2025 due to the rapidly increasing population.

Kampala has been projected to lead the pack by 99.5 per cent population growth, followed by Dar es Salaam by 85.2 per cent, Kigali by 79.9 per cent, Mombasa and Nairobi by 79 per cent and 77.3 per cent respectively. Tanzania leads in the pace of urbanisation with 26 per cent of its population living in urban areas in 2010 up from 19 per cent in 1990. In Rwanda, the rate of urbanisation jumped from five per cent in 1990 to 19 per cent in 2010. Kenya’s urbanisation rate grew from 18 per cent in 1990 to 22 per cent in 2010 with Uganda following suit growing from 11 per cent in 1990 to 13 per cent in 2010.

In the East African region, satellite cities have been proposed for the study to curb the urbanisation challenges. The new cities include Kigamboni in Dar es Salaam, Tatu City and Konza Technology City on the outskirts of Nairobi, Kalungulu in Kampala.

Mwangi Mumero

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NEWS

Agenda / South Teraco’s new Cloud Exchange With the launch of the Africa Cloud eXchange (ACX) in May 2012, Teraco Data Environments became the first premier grade data centre environment in Africa to provide access to a vendor neutral colocation space for sharing and selling cloud services. The Africa Cloud eXchange is providing a secure data centre environment where cloud providers can colocate their service offering.

Due to the lack of power and general infrastructure around Africa, the opportunity exists to establish South Africa as a central hub for international access providers and cloud services to support the rest of Africa. There are many challenges in building data centres around the African continent, says Lex van Wyk, MD Teraco Data Environments.

“With the rapid growth in IT requirements, Africa needs a solution to keep up with the demand. With the recent growth in fibre capacity along the East and West coasts, Teraco has identified the opportunity to offer the ideal data centre environment to all service providers wanting to provide IT solutions into African markets,” he said Along with current benefits like free peering, cost effective interconnects, access to all major carriers, resilient power, remote support and high levels of security, Teraco is the ideal space for cloud to be established in Africa.

“Our facilities in South Africa already boast connectivity to all the undersea cables offering a combined 28 landing points along the East and West coasts of the continent, as well as all major carriers operating in SA and several active cloud providers. This in effect means the Africa Cloud EXchange is Lex van Wyk, MD at Teraco Data Environments already in operation,” said Lex van Wyk.

Representing SA at Intermat The South African Department of Trade and Industry (DTI) and Department of International Relations and Co-operation (DIRCO) attended Bell Equipment’s unveiling of its new E-series Articulated Dump Truck at Intermat 2012 in Paris, France, in April, lending their support to the country’s leading heavy equipment manufacturer.

Mustapha Adams, Economic Councillor with the South African Department of Trade and Industry based in France, said of the event, “The presence of Bell at Intermat was further indication of the capabilities of a South African company competing with the best in the global arena – and that is something we at the DTI are truly proud of as it shows that we expanding our export base of products. These big Bell trucks show the world our sophistication in manufacturing in the automotive industry, and are a great boost to attracting investment to our shores.”

8

African Review of Business and Technology - June 2012

A forum for exporters and importers

T

he vast, largely untapped potential for intra Africa trade, with respect to BRICS (Brazil, Russia, India, China, South Africa) economies, is to receive a major boost through the newly-launched BRICS Africa Export Import Forum, which runs alongside the Southern African International Trade Exhibition (SAITEX), taking place 15-17July 2012 in Midrand, South Africa.

The BRICS Africa Export Import Forum showcases services and support available for BRICS Intra Africa trade.

Products and services that will be showcased cover the entire import/export supply chain – including consulting services, promotion agencies, investment agencies, export councils and authorities, chambers of commerce, communications companies and media, banking and trade finance services, credit guarantee services, customs brokers, verification and audit services and clearing agents, technology providers, training companies, relocation services, and companies involved in freight and bulk intermodal logistics.

According to the Standard Bank Group, trade between BRIC nations and Africa increased almost eight times, from $21.9bn in 2000 to $164.6bn in 2008. By 2030, this figure is expected to exceed four trillion dollars.

“Africa has become a vital market to the BRIC trading bloc,” says Stephen Oehley, Director of the BRICS Africa portfolio at South African Trade Promotions, one of the event partners.

Explaining the rationale for the event, Oehley said, “The dynamics of international trade are constantly changing. The BRICS Africa Export Import Forum keeps industry updated on the latest trends, trade intelligence, products and services, and presents real trade and networking opportunities.”

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NEWS

Agenda / West Sustainable energy for Liberia The rehabilitation of the Mount Coffe Hydro plant to boost sustainable economic growth in Liberia took centre stage during consultative talks between the World Bank, IMF and the Government of Liberia, led by its Finance and Economic Planning Minister, Amara Konneh, in Washington, in the USA, in mid-April 2012.

Addressing the meeting, Minister Konneh referred to the plant as a national emergency The Honourable Amara M. Konneh, Minister of Planning & Economic Affairs, Republic of Liberia

which remains a major component of the solution to Liberia's enwergy crisis. The capacity benchmark for the hydro plant, when completed, is put at 1000 MW because electricity demand will increase tenfold - and ”the government does not wish access to electricity to be a constraint on Liberia's growth”, according to Mr. Konneh. It is expected to be completed in 2015.

The current cost of generation in Liberia is 40 US cents per KWH, one of the highest in Africa.

World Bank Managing Director, Ms. Sri Mulyani told the delegatation, “The World Bank is open to helping Liberia achieve its objective even if you want us to build 500 MW power generation or more, we are ready.”

The Mount Coffe Hydro plant used to produce 64 MW of power before the war but was destroyed and looted by warring factions in 1990. Rehabilitation cost is assessed at

World Bank Managing Director Sri Mulyani Indrawati

US$200mn, with the governments of Norway and Germany committing US$105mn, while the government of Liberia is expected to put in US$45mn.

Mike Butscher

Angola selects solution for traffic fines payments Payment solutions provider Ingenico is supplying its EFT930G solution to the Angolan Ministry of Home Affairs for the payment of traffic fines. Starting with a pilot in Luanda, this new payment channel implements a quick, convenient and safe process for the payment of fines. It will authorise the amount received, which will go directly into the treasury account and will facilitate the reimbursements of the expenses of the traffic agents involved.

Ingenico’s EFT930G allows drivers to pay the fines with their own credit card and then continue on their way with no embarrassment, thus improving services for Angolan citizens and reducing the amount of cash handled. In addition, introducing new information technologies for the payment of fines helps the Angolan Ministry of Home Affairs to prevent possible frauds. Currently, 120 officers have been trained to use the new solution, with more being trained.

A technology showcase for Africa's ePayment future For 11 years Card, ATM & Mobile Expo has kept its status as the number one meeting place for stakeholders who wish to generate highly qualified and productive leads across Africa. The

The continent's brightest and best brains on card and ePayment speak and network at Card, ATM & Mobile Expo” 10

conference, and its associated exhibition, are considered to offer the most appropriate platform to showcase technology and to envision Africa's ePayment future. Complementing conference presentations by the best brains on card and ePayment are more than 50 exhibitors showcasing innovation on the ground and eight specialised forums to host knowledge sharing on key developments in new forms of finance.

Promoting ePayment Taking place 12-14 June 2012 in The

African Review of Business and Technology - June 2012

Civic Center, Victorial Island, Lagos, the expo - which is endorsed by Central Bank of Nigeria (CBN) - provides a rebound for the “Cashless Lagos” initiative which coincides with this event. Part of the proceeds for this event will be used to fund the “Coalition for epayment” activities, focused on ePayment customer education and awareness generation.

Over 50 exhibitors, 200 delegates and 3,000 visitors are expected from Nigeria and other parts of the world.

cardexpoafrica.com

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NEWS

Events / 2012 10-14

July

August

15-17

15-18

Africa's Big Seven

EcoAfribuild

19-23

Johannesburg, South Africa www.exhibitionsafrica.com

Johannesburg, South Africa www.ecoafribuild.co.za

Africa Aerospace & Defence

16-19

15-18

Africa Mining

InterBuild Africa

24-27

Johannesburg, South Africa www.terrapinn.com

Johannesburg, South Africa www.interbuildafrica.co.za

plast alger

17-19

22-24

Power-Gen Africa

Sign Africa

25-27

Johannesburg, South Africa www.powergenafrica.com

Johannesburg, South Africa www.signafricaexpo.com

Cfia Maroc

September

25-27

Johannesburg, South Africa www.terrapinn.com 30 Jul-3 August

6-7

23-26

Aviation Outlook Africa

Banking Outlook Africa Johannesburg, South Africa www.terrapinn.com

Intermodal Africa Durban, South Africa www.transportevents.com

Electra Mining Africa Johannesburg, South Africa www.electramining.co.za

Cape Town, South Africa www.aadexpo.co.za

Alger, Algeria www.plastalger.com

Casablanca, Morocco www.cfiaexpo.com

GEREU Trade fair Accra, Ghana www.ggea.net 26-27

Nigeria Com Lagos, Nigeria nigeria.comworldseries.com

At the heart of Nigerian construction and infrastructure Set to take place 26-28th June 2012 at the heart of Nigeria’s Federal Capital City, in the Sheraton Abuja Hotel, Nigeria’s Federation of Construction Industry (FOCI) celebrates the west African nation’s place in the global construction market.

With less than 10 companies at independence to about 200 today, the industry has undergone significant development. The Nigerian construction market is among the largest markets of its kind in Africa, and has recorded impressive growth since Nigerian independence in 1960. Government spending has been a major contributor to industry development, especially in the infrastructure sub-segment, but private sector initiatives have also contributed positively on the industry's growth. The construction sector’s contribution to the nation's GDP is less than

12

African Review of Business and Technology - June 2012

two per cent(1) - a much smaller percentage than comparable African Countries - but the potential awaiting investors in housing and infrastructure is causing remains huge, with robust growth already evident in this sector.

Expectations are that the construction industry will return to the dominance of the 1980s, when it accounted for about 70 per cent of the nation's GDP(2).

Exhibitors at FOCI specialise in: steel

products; formwork; cranes; mineral processing; concrete; earthmoving; materials handling; compressors; compaction; roads; buildings; quarrying and many other areas of infrastructure operation. Those attending the exhibition include: government officials; contractors; consultants; representatives of financial Institutions and funding agencies; executives at equipment leasing organisations; members of chambers of commerce and trade groups and a host of architects, engineers, builders, quantity surveyors and other professionals. www.nilefoci.com.ng Notes: 1. Central bank of Nigeria 2. Planning Committee on the National Construction Policy, 1989

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18-20 Sep September tember 2012 In International ternational C Conference onference Centre, Centre, Abuja - Nigeria

T ADE TRADE TRA ENG ENGAGE E GAGE E INVEST IN NV VES ST DEVELOP D VEL DEV LOP O Intrroducing Introducing g gl global oball po power wer to the e llocal ocal mark m market et

Total in Total investment nvestment in the Nigeria an po wer sect or Nigerian power sector will reach rea ach US$80 billion by 2020.

Present yyour Present our ttechnologies, echnologiess, products pr oducts and servic services es to to key, key, astute as tute decision makers makers in n this ffast ast de developing veloping market. market.

Email: inf o@power-nigerria.com info@power-nigeria.com

Organised By Organised

In P Partnership artnership With

Tel: + 971 4 336 5161 Fax: + 971 4 335 3526 6

Tel : + 234 809 999 9267 Email: bola@afrocet.com

Partner P artner Events Even e ts

www.power-nigeria.com www.po wer-nigeria.com

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NEWS

Bulletin / Engineering EES presses on with Consol Glass furnace rebuild

Guidance on process optimisation

which has made this segment an essential

Electrical Engineering Solutions (EES) has

A provider of integrated process optimisation

metal working and metal manufacturing

been executing a challenging furnace rebuild

software solutions and professional services

industry - with the industrial sector in the UAE

appointment, which is scheduled to be done

for the process industries, AspenTech offers a

growing by 11 per cent in 2011, and the

within a very strict construction window for

solution set spanning engineering, plant

contribution to GDP of the UAE’s

Consol Glass, the largest glass manufacturer

operations, and supply chain management

manufacturing sector up from US$35bn in

across the enterprise; the company recently

2010 to an all-time high of US$39bn in 2011,

released a white paper, authored by IDC, ‘The

and Saudi Arabian manufacturing in the first

Evolution of Optimization in the Process

half of 2011 rising by 22.5 per cent, driven by a

Industries’, which says process manufacturing

38 per cent increase in petroleum refining; “In

leaders must optimise networks of plants

Arabia, the welding and cutting segment

and assets to drive higher margins in

essentially involves not just welding shops but

response to geographic market shifts,

fabrication yards and engineering workshops,

component of the regional steel fabrication,

detailing how optimising plants and assets

fuelling demand for not just welding

The furnace rebuild project at Bellville involves the electrical and instrumentation (E&I) infrastructure engineering for the furnace, with EES responsible for the management, construction and commissioning of E&I infrastructure, including interfacing with bespoke technology vendors

dynamically across the global supply chain

machines but a diverse and complete range of

represents the latest phase in the evolution

equipment and a substantial variety of

of process optimisation.

brands,” said Mr Saif Mohammed Al Midfa,

in Africa, at the Consol Glass Bellville plant near Cape Town in South Africa; the Bellville

On-site plant construction for Sadara's chemical complex

plant has a total of four furnaces, which

Technology firm The Linde Group is supplying

manufacture bottles for the food and

Sadara Chemical Company with carbon

beverage industry, producing between 950

monoxide (CO), hydrogen (H2) and ammonia

and 980 tons a day, and making on average

(NH3) at a chemical complex now being built

approximately two million bottles each day.

by Sadara in Jubail, Saudi Arabia, which will

Director-General of Expo Centre Sharjah.

Brochure offers Norgren customers new perspectives

be the world's largest chemical complex ever

AVEVA sponsors industrial systems symposium

built in a single phase, to a contract that

The 7th Symposium on Industrial Systems

CO and H2 plus an ammonia plant; Linde's

and Control (SISC), which took place in

Engineering Division is designing, delivering

Dhahran, in the Kingdom of Saudi Arabia, in

and constructing the new turnkey gases

Norgren, which specialises in pneumatic

May 2012, established several opportunities

facilities at Sadara's site in the Jubail 2

motion and fluid control technologies, has

for organisations, professional engineers and

petrochemical cluster, building a two-stream

published a brochure, developed a new Web

academicians to exchange technical expertise

HyCO plant, plus a single-stream NH3 unit

site, and opened a YouTube channel, all

and knowledge, representing a platform to

producing waterless liquid ammonia, and

showcasing its approach to delivering

communicate developments and experiences

installinf a large NH3 storage tank, resulting in

‘Engineering Advantage’ for its customer base

in the field of control, instrumentation, and

a sophisticated supply concept that will

in the energy sector; Mark Stevens, Global

automation technologies; AVEVA participated

enable the plant to run smoothly and reliably.

Marketing Director for Norgren, explained

includes a HyCO facility for the production of

as sponsor and exhibitor, presenting on

www.norgren.com

that the company is seeking to show how it connects “people, products and expertise” to

to the workflow between process, piping and

Demand for welding and cutting equipment increases

electrical departments and how a software

There is growth now in demand for welding

through enhanced productivity and

strategy can help to control and manage

and cutting equipment in Arabic economies,

performance, greater market differentiation,

these disciplines across a global project.

driven by an expanding industrial sector,

or lower total cost of ownership”.

process plant instrumentation, with respect

14

African Review of Business and Technology - June 2012

support its customers’ businesses, “whether

S03 ATR June 2012 Bulletin_Layout 1 17/05/2012 16:57 Page 15

The energy the world needs. The safety the world demands.

At ExxonMobil, we’re dedicated to safe and responsible energy production through advanced technology, rigorous standards and an unwavering commitment to best-practice safety procedures.

Every decision we make is guided by our Operations Integrity Management System (OIMS). This consists of 11 separate elements that measure and mitigate safety, security, health and environmental risk to people, the environment and the communities in which we operate around the world.

Our journey toward achieving zero incidents is not complete, but we have made signiďŹ cant progress. We will not rest until we get there.

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S03 ATR June 2012 Bulletin_Layout 1 17/05/2012 16:57 Page 16

NEWS

Bulletin / Sea Freight Damen Shipyards to build modular dock in Djibouti A Damen Modular Dock (DMD) 4020 is being constructed for - and will be delivered to Djibouti, busy port regarded as one of the most important gateways to the African continent, strategically located at the confluence of the Red Sea and the Indian Ocean; the dock, currently under construction in Dubai and scheduled for the second half of 2012, measures 50 x 20 m, and is to be used

A regional port planning strategy between South Africa’s deepwater Port of Ngqura (pictured) and other ports in the region is now underway to leverage opportunities - as South African President Jacob Zuma is championing the North-South Corridor and Transnet seeks to play a key role in ensuring that this corridor’s potential is unlocked so that freight can move easily and efficiently

continent’s economic and social development;

year’s conference talked about how, if and

key intra-continental initiatives being pursued

when these problems can be overcome.

by TPT include: offering services such as port terminal operations, consulting, training,

Dascher continues to grow

After testing in Dubai and delivery of the dock in Djibouti, a Damen Services team will stay on location for two years to give operational and technical support with Damen Services in Gorinchem, in The Netherlands, supporting dock operations by supplying parts, equipment and expertise

equipment maintenance and IT systems to

Thanks to the buoyancy of global trade,

other African ports; regional port planning

Dascher Intelligent Logistics’ Air & Sea

and port pairing initiatives with other African

business was a driver of growth in 2011, with

ports; and Memorandums of Understanding

revenue for the first time exceeding the one

for repair and maintenance of the Port

(MOU) with other African countries.

billion threshold (at EUR 1.1bn), equivalent to

Authority’s fleet, which consists of various

a rise of 17 per cent; the company aims to

Cool Logistics Africa looks at the potential for perishables

deliver higher growth, to double revenue in

Shipping flowers from Kenya by sea or

EUR2.2bn by 2017, with an intended 5,000

Transnet’s port operator commits to growth

mangoes from Mali by rail may still be

employees in 220 branch offices in 49

regarded as a feat of logistical coordination -

countries working, as compared with a 2011

South African port operator Transnet Port

yet two European importers of horticultural

profile of 3,200 staff members at 141 profit

Terminals (TPT) is pursuing a strategy of new

products, Agrofair and FloraHolland, having

centres in 28 countries.

growth across Africa, by forming partnerships

proved that where there is a will there is a

with other African ports and promoting the

way, and shared their experiences of

Logwin’s South African ties

country as a regional hub for the rest of the

innovations in West and East African

Since global logistics service provider Logwin

continent, drawing on previous experience

perishable logistics at the Cool Logistics Africa

moved into larger premises in Port Elizabeth,

outside South Africa to help position African

Conference in Cape Town, South Africa, in

South Africa, in November 2011, the company

ports as the growth engines of their respective

April 2012; of the event, Rachael White, Co-

has been able to develop much closer

economies, and in support of strategic

Director, Cool Logistics Resources, said, “Two

associations with companies working in the

transport sector objectives set out by the

of the biggest problems for both West and

automobile industry, Port Elizabeth’s

African Union and NEPAD (New Partnership

East Africa are the unwillingness of shipping

economic engine; moreover, within a radius

for African Growth) focusing on efficiency of

lines to release reefer containers inland on the

of 20km, there are the seaports Algoa Bay

transport infrastructure, services and key

one hand, and port congestion and

Harbour and the Port of Ngqura, as well as the

transport corridors to strengthen the

disruption on the other,” noting that this

international airport.

supporting vessels such as tugs, shoal busters and pilot vessels.

16

African Review of Business and Technology - June 2012

the Air & Sea Logistics business field to

C1200088

S04 ATR June 2012 Report AD_Layout 1 17/05/2012 16:54 Page 17

www.samsung.co.za

0860 726 7864

S04 ATR June 2012 Report AD_Layout 1 17/05/2012 16:54 Page 18

ECONOMY

Zambia

The prospect of change for society and industry Zambia's new presidential regime continues to seek to address social and industrial issues through radical fiscal measures and industrial initiatives

R

ecent assessments by Exclusive Analysis Ltd indicate that, as President Sata seeks to increase social spending and address strikers’ concerns, there will be contract reviews, capital controls and the continued prospect of increased taxes in 2012.

The Zambian economy is dominated by copper and cobalt production, which accounted for 64 per cent of exports in 2008.

In March 2012 the country’s government announced that the ban on issuance and renewal of mining and non-mining licences, excluding minerals processing, would be lifted.

The ban was put into effect in October 2011 to give the Ministry of Mines time to implement a more efficient licensing system and to tackle issues of irregularities, bureaucracy, corruption and a lack of transparency. The government noted that a new computerised system would replace the old system, which would allow for problems of licence conflicts to be rectified.

The lifting of the ban came at the same time as the release of the Extractive Industries Transparency Initiative report for the 2009 financial year, which tracks industry payments to the government and notes a discrepancy in the amount of $5.9mn between what the industry claims was transferred and the amount actually received by the government.

Although the lifting of the ban and efforts to improve transparency and accountability in the sector will be welcomed by the Association of Zambian Mineral Exploration Companies, its timing coincides with a drive by the government to ensure companies release financial data and pay relevant fees and taxes on time and in full. The government has previously indicated it would use the processing of the backlog of renewals and new issuances to audit the industry more strictly, and is likely to review and potentially revoke non-compliant licences. Companies that fail to comply with regulations are likely to have their licences cancelled.

Mining companies operating in Zambia will be free to transfer ownership and apply for

18

and renew licences but it is clear the government wishes to monitor and regulate the industry more closely, particularly where issues of transfers to the government are at stake. The existing risk of uncertainty over final amendments to mining laws under the new Patriotic Front government is likely to continue, but stricter implementation of current and future amended laws is likely.

Companies are likely to experience stricter application of existing regulations and more thorough auditing procedures of production levels and tax compliance.

Outlook on civil action The risk of industrial action, particularly in the mining sector, has increased under President Sata, as unions feel increasingly emboldened to demand higher wages and better working conditions. The risk of wildcat strikes, i.e. not enjoying unions' support, has also increased in the mining, manufacturing, services and public sectors. Both formal and informal strikes have been held at firms such as NFC Africa's Chambishi Copper Mine, Zambezi Portland Cement, Ashwash Industries, Zinc Aluminium and Ore Company and power utility Zesco. At Chambishi, some 2,000 workers ignored calls by unions to continue working while negotiations were on-going.

This growing labour activism is likely to intensify if key demands by Sata's electorate are not met, such as stricter regulations on working conditions and community development. Given currently high copper prices, mining unions, especially the powerful MUZ, are likely to demand higher wages and improved safety in mines. They are also likely to demand more tangible returns from mining activities, particularly at Chineseowned projects as resentment against Chinese economic interests have been growing in the country. In October 2010, protests over poor working conditions by workers at the Collum Coal Mine turned violent, resulting in 11 injured and the

African Review of Business and Technology - June 2012

temporary suspension of production.

However, risks of business disruption and collateral damage to mining facilities as a result of industrial action and violent protests is likely to be mitigated as unions' usually do not encourage acts of violence. In case of nonunion wildcat strikes the risk of vandalism and sabotage is likely to be higher. There would also be higher risk of attacks on non-striking staff and management, which are at risk of being held hostage by protesting workers.

Wildcat strikes are especially likely in case of large-scale retrenchments, although these currently seem less likely as previously suspended projects in the Copperbelt are reopening with new investors taking stakes in previously terminated projects - government revenues from copper exports increased by some 40 per cent in 2011.

Rising food prices and continued power cuts are also likely to increase risks of civil unrest, especially in major cities such as Lusaka and in the Copperbelt. Opposition MMD supporters are also likely to organise political demonstrations in urban areas, to protest issues such as the re-alignment of electoral districts and any perceived targeting of MMD leaders in corruption probes. The likelihood of violent confrontations between partisan supporters and security forces is likely to increase collateral risks in city centres.

Even though the Additionally, Chinese assets and nationals are at growing risk of attack, due to growing anti-Chinese sentiment, which has been stirred up in September 2011 elections. â– Exclusive Analysis Ltd is a specialist intelligence company that forecasts commercially relevant political and violent risks worldwide. For additional information, visit www.exclusiveanalysis.com; download its podcasts; and follow the company on Twitter @EA_Foresight

S04 ATR June 2012 Report AD_Layout 1 17/05/2012 16:54 Page 19

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FINANCE

Insurance

What are the risks of underinsurance?

Insights into the roles of insurers and loss adjusters, the consequences of underinsurance, and guidance on avoiding underinsurance

U

nderinsurance is where your sum insured (maximum amount that can be claimed in the event of a loss) is less than the replacement/reinstatement cost of the property or of specified items. In the event of a loss, insurers generally ask the loss adjusters to comment on the total (or specified item) value at risk, and should this be more than the sum insured, the proportion by which it exceeds the sum insured would be borne by yourselves.

This means that whilst your insurance claims payment will assist you in recovering from your loss, you may have to partially fund this reinstatement. Depending on the quantum of the loss, this could possibly place you in a position where you cannot replace what has been lost. This could be the cost of rebuilding the structure or, for contents, stock or personal property, the cost of replacing old with new.

Business interruption cover The adequacy of business interruption cover is equally important so as not to impair recovery of the business following a major incident such as a fire or flood, says Gavin Courtenay, managing director of SATIB Risk Solutions.

Consequences of underinsurance “Whilst it is rare that there is total destruction of all assets, under insurance can also affect partial losses e.g. should the actual replacement value of the total buildings be R10mn (US$1.2mn) and the sum insured is say, R8mn, a claim for partial damage of one million rand would result in a claims payment of just R800,000 - i.e. you would effectively be your own insurer for R200,000, being insured for only 80 per cent of the loss,” he adds.

“At SATIB, we recently handled a fire claim where the total sum insured for buildings was R740,000. However the reinstatement / replacement value was in the region of R1,650,000. The buildings were only insured for 45 per cent of their replacement / reinstatement value, and therefore the condition of average applied, and the insured was settled 45 per cent of the claimed amount and was considered their own insurer for the uninsured portion of 55 per cent.”

Tips to make sure you are not under insured: With regard to the buildings the sum insured should make provision for the cost of rebuilding all the structures on the property (as though they were completely destroyed) including the cost of demolition, removal of the debris, cost of plans, professional fees and importantly VAT. This amount should allow for any inflation occurring over the course of the insurance year and replacement time from the end of the insurance period and also take into account any escalation in the costs of material and other construction costs. ● Ensure that your sums insured are adequate to cover all items that are to be insured eg: boreholes, paving, electrical (underground) cables, solar panels, paved roads and pathways and wooden walkways etc. ● Rethink your base insurance values annually.If you have completed renovations recently you need to increase your level of cover. ● Update your inventory lists regularly – importantly the sum insured for contents must represent replacement as opposed to book (i.e. not depreciated) value. ● Call on a trusted insurance services specialist to assist you in the revaluation process – we have access to valuation services, basic information relating to building prices and are able to assist in the business interruption assessments. ■ ●

Ensure provision for recovery of all business structures (Photo: L N Batides)

20

African Review of Business and Technology - June 2012

S04 ATR June 2012 Report AD_Layout 1 17/05/2012 16:55 Page 21

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S04 ATR June 2012 Report AD_Layout 1 17/05/2012 16:55 Page 22

FINANCE

Ecobank

A man with a passion and a vision for Africa A profile of Arnold Ekpe, CEO of Ecobank - his career achievements, and the challenges and successes of the group itself in attaining a truly panAfrican reach

A

rnold Ekpe has, over the past seven years, made the Ecobank Group into an international banking model worthy of emulation. With a presence in 35 countries across the continent, the Group is playing an important role in Africa’s overall development. Bringing together the differing cultures of Anglophone, Francophone and Lusophone countries in Africa is an immense challenge that few, if any, have previously achieved in a sustainable way but Ekpe has successfully managed the process to create Africa’s first indigenous multinational bank.

Mr. Arnold Ekpe has been Chief Executive Officer of the Ecobank Group since 2005 though he previously held the same position from 1996 to 2001. During his initial stint with Ecobank, Ekpe formed a clear idea of where the bank should be heading in terms of its strategy but it was only after rejoining the Group in 2005 that he had the mandate to fully implement his vision. Highly successful it has indeed been.

Ekpe is passionate about Africa and its future and, despite the differing cultures that make up the continent, believes that, with a common objective, Africa can become an outstanding success story.

A wealth of knowledge, the experience of industry, and a passion for business With well over 30 years of experience in the banking industry, Ekpe has a wealth of knowledge and experience drawn from work in Africa and beyond. In the 1990s he was Vice President and Head of subSaharan Africa Structured Trade and Corporate Finance at Citibank. He is a former CEO of UBA (2002 to 2004) and has also been a partner in one of the leading private equity firms in Nigeria. He holds degrees in Mechanical Engineering (1st class honours) and Business Administration

22

Ecobank’s intercontinental reach

from Manchester University and Manchester Business School, respectively.

His humility and composure hide a formidable intellect and a quiet confidence that comes from success. Ekpe’s abiding passion is said to be in promoting panAfrican private-sector initiatives, particularly in the financial services sector,

African Review of Business and Technology - June 2012

and he has certainly been successful in that area.

Ecobank has not found it easy to shake off the erroneous concept that it is Nigerian rather than pan-African or international. As Ekpe himself says, the perception of Ecobank as a Nigerian bank is outdated. It is neither incorporated nor headquartered in

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Ecobank Nigeria but in Lome, Togo and the percentage of revenues derived from Nigeria does not make Ecobank a Nigerian bank.

“If you apply the same logic, then HSBC is a Chinese Bank which it is definitively not.

Nigeria is the largest market and economy in our strategic geography and will continue to be the largest but not the majority contributor to our business but this does not make us a Nigerian bank. We are a pan-African group in both our origins and DNA.” A multinational bank, a diversified portfolio The pan-African nature of the Ecobank Group is reflected in the composition of the board. Although the Chairmanship of the Group does not follow a pre-agreed revolving arrangement, Ekpe says that the Group seeks to ensure that the board composition and the Chairmanship reflect the geographical diversification of the Group.

Ekpe supports this claim with hard facts saying, “Our chairmen have come from five different nationalities, and the board is currently drawn from nine nationalities.”

Indeed, the international nature of the board extends to the bank’s senior management also. Ekpe confirms that the bank manages the various cultures and languages by borrowing from the experience of other multinational banks and companies. He says “Our senior management have come from international and multinational backgrounds and we have two working languages within the Group, English and French.”

Notwithstanding the different cultures, Ecobank operates as 'One Bank' with common branding, standards, policies and processes to ensure a consistent and reliable service throughout the Group. It is the diversified nature of the Ecobank Group and its directors and employees that, far

from being a hindrance, is, believes Ekpe, a great asset.

Ekpe says, “I think we have been able to weather the storm better than most because we are diversified. When one country is not doing well, others make up for it. That is the strength of our diversified portfolio.”

With a presence in 35 countries across the continent, Ecobank is playing an important role in Africa’s overall development with Arnold Ekpe successfully addressing the differing cultures of Anglophone, Francophone and Lusophone countries in Africa, in a sustainable way, to create Africa’s first indigenous multinational bank” Ekpe and his team are not complacent about the Group’s future prospects despite declaring a profit before tax of US$277.4mn for 2011, up 64 per cent on the previous year. Interestingly, for the first quarter of 2012, profit before tax is down by 13 per cent to US$50mn, but this is due to the impact of restructuring Oceanic Bank, following the recent merger, and due to adverse currency effects. Speaking in London, in the United Kingdom, at a recent event hosted by the Business Council for

FINANCE

Africa, Arnold stated that ‘The outlook for Africa is bright’ with an estimated average growth rate of six per cent in 2012.

There are several factors which should contribute to Africa’s continued growth – oil, other natural resources, a growing middle class, BRICS relationships, long-term investors and a population of which 50 per cent are under 20 years of age. Less than 20 per cent of Africa’s population have access to a bank so there remains vast scope for Ecobank Group’s expansion.

A legacy, and a new vision Ecobank has announced that Ekpe will be retiring as Group CEO at the end of 2012.

His replacement will be Thierry Tanoh, CEO Designate. Mr. Tanoh is currently the VicePresident in charge of Africa, Latin America and Western Europe for the International Finance Corporation (IFC), and is expected to join Ecobank in July 2012. Speaking about his forthcoming ‘retirement’, Ekpe says that he will be 59 years of age when he retires - and the mandatory retirement age in the bank is 60.

“So, I am not really retiring too early,” he says.

Everyone is asking what Ekpe plans to do next, and there can be no doubt that he will be in high demand. However, he is not giving much away at present in terms of what the future may hold for him, saying only, “I expect to spend my time doing those things that I was not free to do while at Ecobank.”

No doubt Ekpe’s family will be looking forward to seeing more of him after his term with Ecobank ends. His stable and happy family situation (he has three children) has undoubtedly been a good counterbalance over the years against the stresses of running such a large and diverse banking group. ■ Clive Carpenter

Growth through diversification Other banking institutions may well be asking themselves what Ecobank’s secret is. For the 12 months ended 31st December 2011, the Group’s total assets reached US$17.2b, up 64 per cent from the previous year; customer deposits grew to US$12.1bn, up 52 per cent, whilst basic earnings per share were 1.76 cents (2010 1.14 cents). Asked how the Group had avoided the pitfalls that have befallen so many of its competitors and which particular aspects of corporate strategy have most contributed to these good results, Ekpe came

up with one word ‘diversification’.

The diversified nature of the Group’s portfolio may well be important but so is the person of the CEO. In Ekpe, the Group has had an outstanding leader with a vision of what can be achieved in Africa and the tenacity to follow it through. Ecobank was founded 24 years ago as a platform to build a pan-African bank operating to world-class standards.

Under Ekpe’s leadership, Ecobank has become the undisputed leader in pan-African banking with operations in more African countries

than any other bank in the world, serving nearly eight million customers through around 1,100 branches spread across the continent.

Ekpe’s forthcoming retirement will certainly be a loss to Ecobank, but he will leave behind a sound legacy for others to build upon. There can be no doubt that the Africans across the continent will see much more of Arnold Ekpe in the future. Whilst wishing Ekpe a long and happy retirement, we equally hope that - for the sake of Africa - it’s a busy retirement too!

African Review of Business and Technology - June 2012

23

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FINANCE

Banking

A decade of financial inclusion The mobile financial services community has been celebrating ten years of banking the unbanked

T

he mobile financial services community is today celebrating 10 years of banking the unbanked. The world’s first mobile financial service in a developing economy went live ten years ago in Africa. Launched by Celpay in Zambia in 2002, and powered by Fundamo, a Visa company, the pioneering service ushered in a movement that has revolutionized the way financial services reach unbanked and under-banked people in developing economies.

“The launch of the Celpay service ten years ago was the beginning of a community that has had a profound social, economic and technological impact in Africa and beyond,” said Hannes van Rensburg, CEO, Fundamo, a Visa company.

“Implementations such as the one we started in Zambia have ignited the imagination of our community and the wider world. As we look to the future, we are certain that mobile will continue to play a critical role as a driver of financial inclusion worldwide”.

The first implementation in a developing economy Celpay International provides mobile financial service to consumers and corporate customers. Celpay’s first deployment in Zambia launched in partnership with six major banks, to provide a secure and convenient method to transfer money. Celpay enabled instantaneous payments via the mobile phone, and in doing so, removed the risks associated with cash and cheque payments in Zambia.

The Zambian deployment was a great success with Celpay Zambia processing funds equal to 10 per cent of the Zambian GDP between 2005 and 2010. Today, Celpay Zambia partners with 15 banks. In 2004 Celpay expanded into the Democratic Republic of Congo and has subsequently

24

Hannes van Rensburg, CEO at Fundamo

expanded into Zimbabwe and Uganda.

Since its initial launch, Celpay International has processed in excess of US$2bn in mobile payments and counts global brands such as SABMiller, Total and BP as customers.

“When we launched Celpay in Zambia, we had no idea that we were pioneers. We just found a solution to a business problem using mobile technology,” said Lazarus Muchenje, Chief Executive of Celpay International. “The Zambian deployment was a runaway success and gave a glimpse of the potential mobile financial services had to offer. We are incredibly proud of how far we, and the industry as a whole, has come over the last decade.”

Mobile money: past, present and future The achievements of the mobile financial services community in the last ten years are phenomenal. In ten years, 100mn people have been newly ‘banked’ using mobile technology[1]. While the industry has grown rapidly the segment is still far from reaching its potential. According to the GSMA, 2.5bn adults still lack access to formal financial services, such as savings,

African Review of Business and Technology - June 2012

payments, loans and insurance[2]. This has led Juniper Research to forecast that the number of newly ‘banked’ people will double to 200mn by 2013[3].

“The last ten years has shown that mobile technology can be an invaluable tool in enabling a sustainable, scalable approach to providing convenient and affordable financial services to the unbanked. The achievements of the mobile financial services community should certainly be celebrated but there is so much more to be done,” said Seema Desai, Director for the Mobile Money for the Unbanked Programme, GSMA. “More than one billion customers in developing markets have access to a mobile phone, but do not have a formal bank account. We will continue to work closely with the community to ensure that every person at the base of the economic pyramid can access financial services.”

The next generation of mobile financial services: opening the loop Visa’s acquisition of Fundamo in June 2011, and its integration into VisaNet, has created a bank-grade mobile money platform that has the capability to connect existing mobile money services with Visa’s global payment network. This means existing mobile money programs across Africa can become interoperable with each other, and can offer consumers the same security, global interoperability and convenience that Visa account holders in developed countries have long enjoyed. From ATM withdrawals, to ecommerce transactions, to paying bills and sending money to family members, mobile money accounts will no longer be limited in geographic reach. ■ Notes: 1. Juniper Research, 2011 2. GSMA, 2010 3. Juniper Research, 2011

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EQUIPMENT

Finance Investment in green innovation Following the success of Viridis Africa 2011, where more than 20 major investment opportunities were presented to prospective investors, Viridis Africa is now soliciting business plans in the clean tech industry from entrepreneurs seeking funding to turn their projects to account.

Viridis Africa, as its name suggests in Latin, is about investment into "green" sustainable technologies and projects, presented by entrepreneurs and corporates who are seeking funding to introduce clean technology solutions and services.

Principals who would present their business opportunities at this clean technology venture capital, private equity and debt financing event would have the audience of numerous local and foreign investors, stratified according to their sectoral interest and investment criteria.

Green investment vehicles This year Viridis Africa will introduce foreign companies who wish to deploy their technology solutions encapsulated into regional commercial ventures, seeking local business partners and co-investors.

It is expected that numerous parties from USA, Europe, China, and India will be attending the event to obtain a firsthand overview of clean tech opportunities in the region.

Investors would include venture capital, private equity, project and corporate finance outfits and private investors focused in environmental technologies. They would also include international funding agencies, major Asian industrial conglomerates, technology specific investment funds and major companies who seek strategic alliance and acquisitions.

The following are some of the clean tech sub-sectors in which principals may consider their company or clean tech initiative being presented: ● Clean Energy Generation: Wind, solar, hydro, biofuels, geothermal, clean coal technologies. ● Storage: Fuel cells, advanced batteries, hybrid systems. ● Infrastructure: Management, transmission. ● Efficiency: Building efficiency, smart grids, waste heat recovery. ● Water & waste water: Water treatment, water conservation, waste water treatment, desalination. ● Recycling & waste: Recycling, waste treatment, organic matter, plastics. viridisafrica.com

Oracle works with First Bank of Nigeria to combat financial crime and meet regulatory obligations The the oldest banking institution in Nigeria, First Bank of Nigeria (FirstBank) has deployed Oracle Financial Services Know Your Customer and Oracle Financial Services Regulatory Reporting Solution. The bank has also upgraded its Oracle Financial Crime and Compliance Management Platform for Financial Services and Oracle Financial Services Anti Money Laundering solutions.

FirstBank is the first in the region to deploy an Oracle Financial Services Know Your Customer and due diligence program, which enables the bank to meet rigorous regulatory and reporting obligations.

The integrated components of Oracle Financial Services Know Your Customer, Oracle Financial Services Anti Money Laundering, and Oracle Financial Services Regulatory Reporting Solution, as part of the overall Oracle Financial Crime and Compliance Management Platform, enable the bank to accomplish a risk-based transaction monitoring program, to monitor suspicious and fraudulent activities and help to combat financial crime. The deployment of Oracle Financial Services Know Your Customer, which is fully integrated with Oracle Financial Services Anti Money Laundering, also enables automated customer risk profiling, so FirstBank can have a 360-degree view of their customers’ activities for easy monitoring purposes. With Oracle Financial Services Regulatory Reporting Solution, FirstBank is the first bank in the region to successfully implement an automated system for the creation and filing of Suspicious Transaction Report. By leveraging a single platform to

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African Review of Business and Technology - June 2012

Oracle continues to advise and help financial institutions to formulate a compliance management strategy with the aid of Oracle Financial Crime and Compliance Management Platform. Not only does it help institutions achieve their regulatory goals, but it also helps to position them positively in the market place, like it has for the First Bank of Nigeria.”

by S. Ramakrishnan, Group Vice President and Managing Director, Oracle Financial Services Analytical Applications

meet all anti-money laundering, know-your-customer and regulatory reporting needs, FirstBank will be able to significantly reduce operational costs and manage day-to-day operations more efficiently.

FirstBank first deployed Oracle Financial Services Anti Money Laundering in 2007 and its satisfaction with this investment led to it choosing Oracle to allow it to meet its compliancy and management objectives.

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Railways TRANSPORT

Gautrain and tolling come into focus The South African government’s attempts to improve economic performance with delivery of efficient transport infrastructure

W

hen South Africa’s Minister of Finance Pravin Gordhan delivered his budget speech in February 2012, he placed much emphasis on the importance of efficient infrastructure to the country’s economic performance. Coincidently, infrastructure developments in Gauteng, South Africa’s industrial heartland, were reaching completion points.

The final section of the Gautrain that effectively links Pretoria to the Johannesburg city centre, was to open imminently. Furthermore, Gordhan was to announce something of a compromise to critics of the new motorway toll system that is due to become operational at the end of April 2012. He said that the Treasury would allocate R5.75bn (US$750 mn) to the South African National Road Authority.

“This will reduce the debt to be repaid through the toll system, and will make a steeper discount possible for regular road users,” Gordhan added. The new fees will see drivers of etag vehicles pay 30 cents a kilometer, instead of 66 cents as originally planned.

There will also be a monthly cap of R550 for frequent users, the minister said. In addition, there will be a 15 per cent discount in the rates after their toll fees reach R400.

South Africa’s Minister of Finance Pravin Gordhan Drivers of motorcycles are to pay 20c per kilometre and nonarticulated and articulated trucks would pay 75c and R1.51 per kilometre respectively.

To help ease congestion, heavy vehicles will qualify for a 20 per cent discount if they use the roads during off-peak times in the day.

Creating incentives for commuters Yet, even with this discount on the toll pricing that is to be levied on road users, there is significant opposition to any form of tolling. The country’s trade union body, the Congress of South African Trade Unions (COSATU) led a one-day general strike in March that, in part,

demanded that tolls be abandoned. The government points out that buses and minivan taxis that the majority of low paid workers use to commute are exempt from toll fees, but COSATU’s secretary general, Zwelinzima Vavi, argues that the additional cost of trucking food and other consumer goods will be passed on to customers, impacting the poor the hardest – especially in terms of food price inflation.

Tolling may create the incentive for more commuters to use the Gautrain. An estimated 30,000 passengers use the train daily, and it remains the only rapid rail system in Africa. However, the cost of the Gautrain is relatively high, and the reduction of tolling fees announced

by Gordhan may mean that commuters will opt to stick to their cars. ■ Stephen Williams

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LOGISTICS

Air Cargo

Electronics supports supply chain success Why e-commerce is a critical component of the security, efficiency, sustainability and overall commercial success of the future air cargo supply chain

E

-commerce is a critical component of the future security, efficiency, sustainability and overall commercial success of the air cargo supply chain, according to the Global Air Cargo Advisory Group (GACAG), and the changeover from current processes will happen.

GACAG is committed to driving its development and encourage progress through several initiatives by its E-Commerce Task Force.

At the heart of a long overdue process changes, the Group says, is the elimination of paper-based documentation. With participation from airlines, forwarders, ground handlers, customs and shippers, GACAG has initiated a review of the e-freight project launched by the International Air Transport Association (IATA) in 2006, and will review other relevant initiatives, to identify the best possible roadmap to accelerate the implementation of a paperless transportation process.

Two areas have been identified as priority for collaboration by GACAG members: the electronic air waybill (e-AWB) and the promotion of electronic Customs procedures.

“The air waybill is a central document in the air cargo transportation process and an electronic AWB is a natural first step towards creating a fully paperless environment. The eAWB will be focused on as a catalyst to drive

Air freight is moving into an electronic age (IMAGE: Charles Severance)

the adoption and implementation by airlines and forwarders of electronic air waybill procedures,” said Bill Gottlieb, Chair of the GACAG E-Commerce Task Force and Treasurer and Past President of FIATA. In addition, the implementation of harmonized electronic customs procedures by countries worldwide is key to creating a network of routes where air cargo industry participants can benefit from an end-to-end paperless process, GACAG said.

Saving cost by saving time and improving service Removing the requirement to transport original paper documentation with the freight allows for significant cost and time savings and enhances reliability. GACAG members have begun to identify countries where they can jointly engage with relevant authorities to promote the implementation of these procedures at the national level and internationally through the World Customs Organization (WCO).

Bill Gottlieb added, “The future for our industry and for the individual businesses that take part in the global air cargo supply chain depends on our ability to provide the best possible service to international traders and their customers and facilitate further development of global commerce. In today’s environment, the transportation of air cargo still involves the significant production, exchange and handling of paperwork. This is not the most efficient process for our industry!

“Customers look at this paper-based way of doing business and consider it to be outdated, inefficient and adding significant cost. They want to see actual, tangible change, no more rhetoric and a clear shift in the way we conduct business - and that is what we have to deliver. e-commerce will happen.” ■

Demand growth in global air traffic Global traffic results for March 2012 released by the International Air Transport Association indicate that total passenger demand rose 7.6 per cent and freight demand climbed 0.3 per cent compared to the same month in 2011.

Comparisons with March last year are affected by events that depressed passenger demand in 2011, including the Arab Spring,

28

which disrupted travel in the Middle East and North Africa beginning in February 2011 and the earthquake and tsunami in Japan in March 2011 that impacted air travel across the Asia-Pacific region. IATA estimates that the year-on-year rise in air travel in March was about two percentage points higher than it would otherwise have been in the absence of these events.

African Review of Business and Technology - June 2012

Cargo demand, meanwhile, was affected by the timing of the Chinese New Year, which occurred in January 2012 - leading to stronger February 2012 shipments - but took place in February 2011—leading to stronger March 2011 shipments and weaker year-toyear comparisons. Compared to February 2012, March air cargo demand was significantly stronger by 2.2 per cent.

S06 ATR June 2012 Report H_Layout 1 17/05/2012 17:18 Page 29

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S06 ATR June 2012 Report H_Layout 1 17/05/2012 17:18 Page 30

EQUIPMENT

Transport Tyres to withstand harsh environments and tough places The Goodyear ‘Spring Tyre’, which was codeveloped in the USA by The National Aeronautics and Space Administration (NASA), represents a future tyre concept that could be used to explore the outer reaches of space - and, possibly, the most brutal terrains here on earth.

“This tyre is extremely durable and very energy efficient,” noted Joe Lettieri, Goodyear’s lead researcher on the Spring Tyre project.

“The spring design contours to any surface providing maximum traction. All of the energy used to deform the tyre is returned when the springs rebound, so it will not generate heat like a pneumatic tyre.”

While a hard impact might cause a pneumatic tyre to puncture and deflate, any trauma to the Spring Tyre would likely only damage one of the 800 load bearing springs. Along with having this ultra-redundant characteristic, the Spring Tyre has a combination of overall stiffness yet flexibility that allows off-road vehicles to travel fast over rough terrain with relatively little motion being transferred to the vehicle. www.goodyear.co.za

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African Review of Business and Technology - June 2012

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Lighting

POWER

Lowering lamp costs Reasons to go green with light emitting diodes

A

s electricity costs continue to rise and the importance of sustainability and energy conservation becomes increasingly clear, energy efficiency is now an important consideration for all electronic devices. One of the easiest and most effective ways to reduce energy consumption is to replace incandescent lamps with more efficient solutions.

Energy efficient, environmentally friendly Traditional energy efficient lamps contain mercury, which is dangerous to the environment, and have a short lifespan. For this and other reasons highly energy efficient, environmentally friendly light emitting diode (LED) lighting is poised to replace classic lighting technologies both in residential and commercial spaces.

LED lamps provide comfortable lighting while delivering superior energy savings. They are shock and vibration proof, emit no ultraviolet or infrared radiation and are highly environmentally friendly.

Not only do they have a lifespan of up to 16 years, ensuring less waste is produced and environmental impact is minimised, they also contain no environmentally harmful chemicals and are fully recyclable. LED lights are also much cooler to run than incandescent bulbs, lowering cooling requirements particularly in offices and commercial spaces.

“While LED lamps may require higher capital outlay, the efficiency and environmental consciousness of the Fred Mitchell, Symantec technology soon translates into economic Division Manager at DCC advantage,” says Fred Mitchel, LED Product Specialist at South African distributor DCC. Fred adds that a standard incandescent bulb may last up to 1000 hours, whereas an LED may last up to 35,000 hours, or 16 years based on usage of six hours a day.

“Over the course of 16 years, the succession of standard bulbs would have consumed 1400 kilowatt hours, compared to just 350 for the LED bulb, translating into far higher energy costs. The cost of 35 standard light bulbs over the years also far outweighs the higher cost of the LED bulb, and the carbon emission produced from one LED bulb is just 175kg over its lifespan, compared to 700kg produced by 35 incandescent bulbs.”

African Review of Business and Technology - June 2012

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POWER

Generators

Mahindra Powerol makes credible strides in power generation market I

ndia-based power solutions provider Mahindra Powerol is making credible strides in the African power generation market. In a major development, Powerol has deployed a significant number of gensets in Africa, especially in Democratic Republic of Congo (DRC) the third largest country in Africa - for managing various telecommunications sites, in a short span of a few months.

The generators deployed in DRC account for a large share of the total gensets in the Airtel Africa network. Mahindra Powerol is the preferred genset supplier for Airtel Africa. With this association, Powerol has established its footprint in a major part of the African continent.

To effectuate efficient network expansion plans in DRC, Congo Brazzaville and Gabon, Mahindra Powerol partnered with Alan Dick Congo (ADC) as its channel partner. ADC has established an exclusive service facility for Mahindra Powerol and ensures the timely availability of spares. Within a short span of a few months, Mahindra Powerol has deployed hundreds of gensets in these countries, powering telecommunications sites - a breakthrough achievement.

An effective approach to growth Mahindra’s ‘Rise’ philosophy - encompassing the pillars of accepting no limits, alternative thinking and driving positive change - reflects its approach towards business and society.

True to its Rise philosophy, Mahindra Powerol has launched a Global Capability Development Program (GCDP) aimed at building customer-centric capability of its channel partners to provide

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African Review of Business and Technology - June 2012

Mahindra Powerol’s Global Capability Development Program (GCDP) helps the build customer-centric capability of its channel partners to provide effective service support

effective service support. Under the aegis of GCDP, Mahindra Powerol conducted training sessions for ADC professionals and customers in these countries, as well as in India. Enabled with the product knowhow, ADC is deploying an effective telecom infrastructure and maintaining the sites powered by Mahindra Powerol Generators.

ADC, in association with Mahindra Powerol, has established three training centres as Centres of Excellence in DRC, Congo Brazzaville and Gabon. Plans are on the anvil to establish two more training centres in Lubumbashi and Goma. The major thrust will be on enabling the new technocrats in these countries with enhanced technical knowledge of engines and gensets.

Plans are also afoot to open exclusive Powerol showrooms, to offer “a touch-and-feel experience” for the genset customers. Powerol is also working on a sustainable business model with unique differentiation that will set apart the business in these countries.

“For all the vibrant thinking, Africa leaves a lot to be desired by our Powerol business. The challenges are innumerable and overwhelming. Tough weather and terrain conditions make normal business functioning a herculean task. Mahindra Powerol gensets are built to withstand these challenges,” a Powerol company official elucidated.

“The Powerol story in DRC, Congo Brazzaville & Gabon is just the beginning; the company with its channel partners will drive positive change for its customers & communities,” the official added. ■

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EQUIPMENT

Power Communities gain with energy for content Approximately 1.6bn people are currently living without access to electricity. To address the needs of these energy impoverished people, Freeplay has launched a new range of products designed specifically for off-grid communities in the developing world, and those recovering from natural disasters.

Aimed at organisations engaged in aid and development work, disaster Freeplay’s Encore range of radios make relief and emergency it possible for people living without response planning, the lowpower or the money to buy batteries to receive these broadcasts daily cost, compact and robust Encore range of multi-band (FM/AM/SW1/SW2) radios builds on the remarkable success of Freeplay’s other products, which are in widespread use across Africa, Asia and many other parts of the world.

Each radio in the Encore range is powered by a solar panel and Freeplay’s patented highly-efficient hand-operated dynamo, and includes a mobile phone charging point, a built-in reading light and an easy-to-replace aerial.

In addition, Encore Primary offers an analogue display, which can be supplied in languages appropriate to any market, Encore Digital offers a digital display with a large, clear and easy-to-read format, and Encore Player offers a 64GB SD card memory which supports the use of pre-recorded educational material. Freeplay’s Managing Director, John McGrath, said, “Radio broadcasts continue to play a vital role in the developing world by giving people daily access to critical information and educational content.

A vital communication tool Freeplay’s radios are already making a difference to people’s lives in some of the most difficult environments on Earth. They are offering access to information about health and the promotion of life-saving messages, such as how to prepare potable water, how to fight malaria and water-borne diseases and raising awareness of disease outbreak.

Freeplay’s John McGrath concludes, “Since its’ formation, Freeplay has developed a deep understanding of how long-term access to radio, light and electrical energy can transform lives. Our new Encore range builds on that experience and understanding and, in a very real sense, offers - power for good.”

African Review of Business and Technology - June 2012

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MANUFACTURING

Kenya

Caption

Exploiting a unique niche in lighting Profiling Johnson Ongubo Mangera - a Kenyan entrepreneur who has achieved success in manufacturing and installing lampshades and lampstands all over Nairobi and its peripheries

M

r Johnson Ongubo Mangera is a soft-spoken and composed gentleman who exudes confidence as he calmly explains how he started out on the journey of manufacturing, installing and even lending out lampshades and lampstands of diverse types and colours to many clients all over Nairobi (Kenya, Eastern Africa) and its peripheries.

The business borrowed an investment loan from the former ICDC (Industrial & Commercial Development Corporation), (Centum Investment Company Ltd today)

34

that he used to buy Kenshades Ltd from a group of Asian investors in 1975. The Kenshades workshop, store and displayselling point has been located at Moktar Dada Street opposite Barclays Bank and close to the famous Nairobi City Market since that time.

“With my team that comprises a technician (specialist fundi) and a shop attendant, we manufacture, sell, do repairs and lend out lamp-shades and lamp-stands of diverse types at this premises. We buy galvanized wires of different gauges and weight and, fabricate, weld and paint according to

African Review of Business and Technology - June 2012

different design needs. We also buy special plastics that we cut according to design specifications,” explained Mr Mangera as he kept a close watch on customers’ needs as they streamed in and went to admire the hundreds of lamp shades and stands creatively arranged at every available space at the shop.

Making and selling Essentially, Ken Shades Limited is an assembler and retailer of lampshades and lamp-stands.

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MANUFACTURING

Kenya

“We cut the wires and plastic and fabricate according to different designs needs and sizes. We also paste textiles on plastic and stick others on already prepared framework. We also do plastic lining and material lining on uneven shapes. For finishing, we put bindings, braids and frills,” explained Mr Mangera.

The company manufactures many different types of shades such as for walls rackets, ceilings and bedside lamps using different materials; different materials such as gourds, clay and the famous Kisii soapstone are used to make different and attractive designs that portray and accentuate different traditional images.

The lampshades and stands are decorated with African masks while others are made from decorative tree trunks. Other shades are made of sisal, batik– cloth, banana-fibre, sisal twines, tree bark, hessian material and fibre and mostly from curtain materials.

While customers are free to supply their own materials for lampshades especially to match interior décor, the company plays the professional consultancy role advising clients on what is and what isn’t possible. Lampshades could also be made of unique materials including ‘Makuti’ to match Makuti décor for instance. The company has been supplying Makuti lampshades and stands to hostels, lodges and tourist hotels among other establishments. “Such clients give us specifications and orders and we gladly meet their requirements and even exceed their expectations,” explained Mr Mangera.

Other special modes of operations at Ken Shades Ltd.

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African Review of Business and Technology - June 2012

Ordinary citizens happen to be the biggest consumers of the Ken Shades products. Batiks and grass materials are also used to decorate the items. The shop also sells lamp stands and candle-holders made of the Kisii soapstone. Hand baskets made of materials such banana fibres are also used to decorate the shades and stands. Customers also buy the shades and stands and modify them to their satisfaction; for instance, they fill or fit them with artifacts of their choice.

Innovation is a key process here—any materials including scrap metal and others including ‘old sufurias and discarded sculptures’ are often modified into lamp shades and stands; even animal sculptures are drilled and wired to become unique shades and stands. Aluminum and wrought iron stands and shades are also on offer. The most popular shades and stands are those that are decorative in nature since they enhance decors of different settings and environment. The high season for sales is August to December.

Mr Mangera explained that the shades and stands are offered for hire but under certain regulations—they must be returned in good condition; though these are for hire for special occasions, such as weddings and to match specific decorations, the company can make to-order shades and stands.

Future plans The company plans to expand and move on to serve customers in posh areas such as the Village Market, Westlands, Yaya and Karen among others which are out of the Nairobi central business district (CBD); here it is sure to meet different customers and their needs. The company shall also venture in to the wider EAC (East Africa Community) region and Southern Sudan and has already sent teams to do surveillance studies.

The lamp shades and stands are bulky materials that present a challenge in terms of storage and transportation. In the workshop at Moktar Dada Street, urgent orders are attended to immediately and the products delivered to maintain efficiency. Some of the customers prefer items made while they shop in supermarkets; they later collect these from the shop on their way home.

Message to customers Mr Mangera observed that many people in Kenya do not habitually decorate their homes with lamp shades and stands as per building decorations specifications; yet lamp shades diffuse strong lights and

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Kenya make them eye-friendly. Lamp shades especially protect children’s eyes. The longer shades hide light and make sleeping easier.

He welcomed clients to place orders and even supply their own materials (this is more cost-effective) in efforts to match shades and stands with their house decors. The company is keen to offer advice and consultancy on interior designs especially to people deemed as ‘colour blind’.

“Here many people are not particular about colours and tend to be ignorant on colour and decoration issues. We advice on these issues including sizes and proportions of lamp shades according to rooms sizes.

Special considerations and shades are in place for sitting and bed-rooms and kitchens and balconies and patios among others.

Standing lampshades can also have allowance for live flowers making our business very specialized at times,” explained Mr Mangera.

“Whether business is good or bad depends on the state of the economy; if people have extra money to buy decorations, it is good for business but if they only have enough to meet basic needs such as food, shelter and clothing, then our business tends to get slower,” he added.

Prior to joining Ken Shades Ltd, Mr Mangera had worked for many years with a women’s organization that was specialist in making artifacts. In his current undertaking, he has gone ahead to perfect the art and looks forward to the future with courage,

MANUFACTURING

hope and determination to keep producing shades and stands and in the process serve Kenyans and make lighting a more customerfriendly activity. ■ J F N Ng'ang'a

AKSA's commitment to innovative and reliable power generation It takes dedication to realise true technological developments, to lead industry on standards of manufacture, to deliver generating sets that fully respond to customers’ needs, to ensure that customers can conduct their business without disruption and with minimal expenditure.

Through decades of fabrication, distribution and service, AKSA Jenerator Sanayi A.S. has earned a reputation for quality provision and comprehensive support. With respect to our continent, the subsidiary AKSA Middle East & Africa manages the supply of generator sets from its base in Dubai, in the United Arab Emirates. AKSA

Middle East & Africa extends it service to Africa's emerging economies with satellite offices in South Africa and in Nigeria.

A power industry expert, an export specialist Aksa Jenerator Sanayi A.S. manufactures power generator sets. It is committed to investment in technology, to innovation through the manufacture of superior soundproofing, more environmentally friendly generators with lower fuel consumption while and maintaining supremacy with respect to synchronised sets. The range is extensive. AKSA offers portable gasoline generating sets at 2.2-11 kVA; Diesel generating sets at 8-2,500 kVA; gas generating sets at 10-

3,200 kW; and marine auxiliary generating sets. Additionally, it provides accessories such as sound proof canopies, synchronising panels, trailers, welding generators, and dynamic uninterrupted power units. The company's emphasis on quality manufacture and delivery is reflected in its growth, in its home market in Turkey and in gaining significant market positions around the world. AKSA also is noted for the confidence, discipline, and proactive approaches to problem-solving demonstrated by its staff.

Founded as an electrical motor factory in 1968, AKSA manufactured its first generator in 1984. In the intervening decades, the company has gained credence as an expert in machinery and hardware for energy supply. Its manufacturing facilities in Istanbul, Turkey, produce generators for export across Africa. More than 50 per cent of AKSA's products are for export. www.aksa-uae.com

African Review of Business and Technology - June 2012

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CONSTRUCTION

Handrailing

Maintenance-free handrailing S

tainless steel tubular handrailing still outranks its competitors, and Andrew Mentis confirms that demand for this product remains consistent.

Corrosion resistant and maintenance free, stainless steel handrailing is the first choice in numerous applications including corrosive and damp environments. “This is because it’s aesthetically pleasing and offers scratch- and stain-resistant properties making it the obvious alternative to traditional mild steel or painted handrailings,” Elaine van Rooyen, marketing manager at Andrew Mentis, explains.

“Weakened handrailings caused by corrosion and damp can cause accidents as well as raise maintenance costs,” she continues.

“Mentis’ stainless steel handrailings improve safety and reduce maintenance, and by doing so create a more productive work environment. And more importantly, impact positively on profitability.”

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African Review of Business and Technology - June 2012

Mentis handrailing is the first choice for numerous applications including damp environments

Manufacturing a modern design Van Rooyen says Andrew Mentis produces stainless steel

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Handrailing handrailing in three alternative grades: 3CR12, 304 and 316 stainless steel.

Stanchions are 45 mm in diameter with a 2 mm wall thickness and base plates designed to allow moisture to drain from the stanchion itself, adding to the corrosion-resistant benefits. The centre hole for the knee rail is drilled and then flared on both sides. The top is also flared and a half round cap is welded into place. The base plate is 8 mm thick and welded to the tube.

The clean modern lines are attractive and the stanchions offer a variety of standard angles and matching accessories. Bends and closures common to mild steel systems are also available for this stainless steel system.

Hand-, knee-rail and bends are manufactured from 31.8 mm diameter tube with a 1.5 mm wall thickness. Bends and closures have swaged ends, improving speed of installation and preventing moisture from penetrating into the joints.

All manufacturing is undertaken with an eye to ease of installation, without the need for special tools. The smooth satin finish combined with the selection of grades offers almost unlimited possibilities for interior and exterior commercial applications. â&#x2013;

The clean modern lines are attractive in any industrial environment

CONSTRUCTION

Mentis handrailing is the best option in safety critical environments

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CONSTRUCTION

Concrete

Filming the final product Construction industry partners help to create local DIY television show in South Africa

I

n partnership with cement and concrete giant AfriSam, Riaan Garforth-Venter and his new DIY side kick Freedom Hadebe, joined the rest of the Setsebi Productions team at the Concreate show house in Fourways, Johannesburg to film an episode of the wellknown local DIY TV show, ‘DIY met Riaan’.

Airing from May 2012 on SABC 2, the show offers viewers guidance on how to lay a concrete floor.

In the new season of the show, Garforth-Venter introduces a new “How To” section, which teaches viewers all about cement, including how to choose the correct cement for specific projects, mixing the product, plastering and brick laying. The team also go on a site visit to AfriSam’s cement plant in the Northern Cape to find out how cement is made.

Riaan Garforth-Venter and Freedom Hadebe show viewers how to lay a concrete floor

Concreate is an interactive hub where architects and interior designers can create unique designs, while builders and contractors offer clients attractive and decorative finishes that are time saving, cost saving and energy efficient” Broadcasting strength at work On the first day of filming, the team demonstrated how to lay a concrete floor and which products are best for the job. They then returned a few days later to film the final product after it had been mechanically ground and polished by Concreate.

“We are very proud to have the show filmed at our show house. We hope that this will expand our name to the industry, as well as build a strong working relationship with AfriSam, who have recently come on board as Concreate partners, and sponsors of the DIY met Riaan show,” says Concreate director Peter Norton.

AfriSam marketing manager, Victor Bouguenon, explains that through this partnership, which came about in the latter half of last year, AfriSam and Concreate aim to co-develop, trademark and market a range of architectural concrete products and solutions.

“AfriSam is renowned for its consistent quality in the ready mixed concrete market and has a strong presence in the major urban nodes.

This complements Concreate's cutting edge position in decorative concrete finishes. AfriSam is also building a presence with the architectural profession through its close association with the South African Association of Architects (SAIA) and its sponsorship of the AfriSam-SAIA Award for Sustainable Architecture and sees its close working relationship with Concreate as a means to further entrench its position with the specifiers,” he concludes. ■

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African Review of Business and Technology - June 2012

Filming at the Concreate show house in Fourways, in Johannesburg

The final, polished concrete floor laid by Riaan and his team

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Highways

CONSTRUCTION

Working to avoid disaster L

ike any other valuable asset, if you don’t maintain lighting and telecoms infrastructure - if you rely only on breakfix models and don’t schedule and budget for regular maintenance - it’s going to cost you more and it may also cost someone their personal safety or their life. It’s clear to us that when it comes to structural integrity and electrical fitness of lighting and telecoms masts and towers, there is not enough awareness of size of the challenge we face in South Africa. Simply put, there’s a big gap in the market for this service.

Infrastructure build-out continues to gain momentum in a number of sectors, and that is good. However, it’s become clear to us that many organisations do not know the condition of their existing and older infrastructure and that it can pose a safety risk. Many of these private companies and state owned enterprises have been minutely engaged in the final point of delivery - e.g., keeping the lights on - and have neglected to budget for ongoing maintenance to keep the lights up.

What can go wrong?

As a manufacturer and supplier of monopole type steel masts for lighting, and of masts and towers for the communications industry, we are well aware of the vulnerabilities of these structures at various points in their lifecycles and the dangers they pose. Age, environmental conditions and mechanical failure are the three chief challenges. But theft of vital components or accidental impact (e.g., a vehicle collision in which lighting poles are struck) can also weaken structures, encouraging corrosion and dislodging underpinnings.

Light or telecoms mast failure does not just affect the bottom line, although this is a big motivator to put a maintenance schedule in place. This infrastructure needs to be maintained to ensure a safe and secure environment for people, commerce and communities.

Depending on the site and the purpose of the structures, weakened or compromised infrastructure poses a safety risk to the technicians working on them, to workers in

mines or other industrials settings, to travellers on roads and highways, or people in urban and rural communities. And it’s not just about a rung collapsing or the mast actually falling over - it’s the very real danger that having no illumination or communications capabilities at night or in difficult conditions means to travellers, workers and people in communities where personal safety is an ever-present issue.

Get it checked The first step is to understand the state of existing infrastructure, deal with the critical items and then put in place the scheduled maintenance plan. For many organisations this will mean finding the necessary budget and ensuring that it is built into all future plans.

A thorough structural integrity check should include corrosion and weld condition checks; checking for missing members, loose nuts and bolts; checking the mechanical working components and mast climbing facilities; and auditing the foundation footing and anchor bolt condition using ultrasonic testing. A complete electrical operational check, which includes all electrical switchgear components, may well form part of the basic assessment.

Organisations should ensure they use skilled professionals that are willing to issue a certificate of structural integrity upon refurbishment. Lastly, a full service record should be kept, by the organisation itself or its service provider.

Regular maintenance of infrastructure will allow organisations in the private sector, like mines and other industrial operations, to better meet occupational health and safety regulations. Similarly, maintenance of telecoms infrastructure is increasingly important to meet service level agreements with subscribers. For state owned enterprises - in the utilities (Eskom) and the transport sectors (ports, roads, harbours, railways), as well as municipalities - the responsibility to provide services must be backed by accountability.

Annual planning and budget considerations are essential. ■ Francois van Zyl, Divisional MD of Jasco Carrier Infrastructure

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CONSTRUCTION

Pipes

A trenchless port The rehabilitation of two sewer pipes in the heart of Port Elizabeth’s Central Business District, which resulted in an award from the South African Society for Trenchless Technology (SASTT)

S

ubsurface pipeline construction and rehabilitation company Trenchless Technologies, in conjunction with Africoast Consulting Engineers, recently completed Phase 2 of a contract for the Mandela Bay Development Agency for the rehabilitation of two existing concrete parallel sewer pipes located beneath the heavily trafficked Govan Mbeki Avenue in the heart of Port Elizabeth’s Central Business District (CBD).

Trenchless Technologies Managing Member Sam Efrat says that to date Trenchless Technologies has been involved in two phases on this contract, ranging between 2007 and 2011. In Phase 1 rehabilitation of parallel 450 mm and 840 mm concrete sewers had to take place concurrent to an urban environmental upgrading project involving decorative paving and resurfacing works. In Phase 2 of the project the 450 pipe increases in size to a 525 sewer which is located underneath a heavily trafficked roadway, while the 840 pipe - as it flows downstream - increases in size to a 1050 sewer, which is located underneath the newly constructed Bus Rapid Transport lane.

Considering the urban environmental upgrade project and that the bus and road lanes are utilised every day, only non-destructive trenchless techniques could be employed for the rehabilitation of the pipelines.

Pipeline assessment At the preliminary stage a thorough condition assessment of the two sewers was undertaken, which involved a theoretical analysis of the sewers based on effluent and operating conditions. A CCTV inspection and cutting of windows from the sewers was carried out so that they could be inspected.

“The condition assessment ascertained that the circumference of the 450 sewer was severely corroded due to acidic effluent, with pH values as low as 3,3. This sewer was very old and was cast in two

Cast iron pipe after cleaning with HDD backreamer and before lIning with Ribloc Expanda

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African Review of Business and Technology - June 2012

Concrete pipe after relining with Ribloc Ribline

sections, with horizontal joints running along the full length. The mortar had corroded out of the construction joints and it was no longer water tight,” explains Efrat.

What’s more, the 840 sewer was severely corroded above the water line and the reinforcing was exposed and corroded away at places. The most severe deterioration occurred at the sides of the sewer due to a combination of corrosion and erosion, which was particularly severe along the sections of sewer whereby the velocity was high. As a result, there was a 50 to 60 mm wide sill on either side of the sewer, just above the low flow level. Efrat says that this corrosion was typical of what occurred in a sewer downstream of a rising main where there had been an accumulation of gas due to long retention times. It was estimated that the sewer would collapse within ten years.

Applications Efrat says that a number of trenchless technologies were considered for the project, including sliplining, cured in place pipe (CIPP) and Ribloc Expanda, Ribline and Rotoloc – an Australian brand of trenchless products for which Trenchless Technologies is the sole distributor in Southern Africa.

“Sliplining appeared to be the most economical, but there was limited space for launch pits and storage of long lengths of highdensity polyethylene (HDPE) pipes. The CIPP option would not have influenced the hydraulic capacity and lining could be continuous through the manholes. However the CIPP process was more expensive and the sharp edges of the sills running along the sewer did not allow for a technically sound design.

“Ribloc Expanda, Ribline and Rotoloc solutions allowed for a complete no-dig lining solution that could be installed through the

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Pipes existing manholes with limited disruption. In addition to no excavation, the solution was design-compliant and the risk was lower as the process could be reversed in the event of unforeseen problems” explains Efrat.

Ultimately, Ribloc Expanda was selected as the technology of choice for the 450 and 525 mm pipes in both Phases 1 and 2, while Ribloc Ribline was grouted in position for the 840 mm existing sewer in Phase 1.Ribloc Rotoloc was used in Phase 2 to line the 1050 sewer.

The overall scope of work included the following: Phase 1: ● 450 mm sewer: 570 metres of Ribloc Expanda with a spirally wound unplasticised polyvinyl chloride (uPVC) profile expanded to a close fit ● 840 mm sewer: 560 metres of Ribloc Ribline with a spirally welded steel reinforced HDPE profile grouted in place.

Phase 2: A total of five different Trenchless Techniques were used, namely: ● CIPP ambient cure: 525 mm sewer, lining of 90 degree bend, 15 metres length (undertaken by sub-contractor Tuboseal) ● Ribloc Expanda: 525 mm sewer, 620 metres of spirally wound unplasticised polyvinyl chloride (uPVC) profile expanded to a close fit ● CIPP UV cure: 800mm sewer, reinforced liner impregnated in factory 43 metres in length, where the 1050 sewer reduces to 800 diameter (undertaken by sub-contractor Tuboseal) ● Ribloc Rotoloc: 1050 mm sewer, 720 metres, tight-fit spirally wound-in-place unplasticised polyvinyl chloride (uPVC) profile ● Pipe Bursting: 225 sewer, 16 metres of 225 HDPE installed using 60 ton static chain puller employed from within the manhole

CONSTRUCTION

Cast iron pipe with large encrustations, before cleaning with HDD Backreamer and before lIning with Ribloc Expanda

“Preparatory works included cleaning the existing sewers by both high pressure water jetting and the pull-through of cleaning buckets using mechanical winches, after which a CCTV inspection of the pipelines was undertaken. In Phase 1, a sewer diversion was possible to divert the 450 mm sewer flows into the 840 mm sewer, whereas in Phase 2 overpumping of sewer flows by a surface by-pass pipe was necessary,” explains Efrat.

Once the cleaning of the sewers had taken place, the manhole benching and portions of the manhole walls had to be broken to allow access for the Ribloc Expanda equipment in the 450 and for the Ribline equipment in the 840 mm manhole. “Whilst the 450 mm breaking was straightforward, this proved to take two to three days per manhole in twelve hours shifts in order to prepare ahead of the Ribloc crew,” explains Efrat. ■

African Review of Business and Technology - June 2012

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CONSTRUCTION

Intermat

Machinery sector innovates for builders The global construction machinery industry converged on Paris, France, for six days of trade talks, new launches and networking at Intermat

T

aking place in April in Paris, France, Intermat 2012 proved that it there are still prospects in the international market for construction machinery, despite recent economic difficulties. The show dominated the Paris-Nord Villepinte exhibition centre, attracting more than 200,000 visitors during a six-day run. Mario Gasparri, chairman of CNH Construction, described Intermat as an “excellent opportunity to take the pulse of our sector” - adding that the event offered opportunities to demonstrate to customers the companies achievements “in terms of lowemission engines, in both road and construction applications”.

New models to market CNH was among a host of big names that took full advantage of the opportunity to demonstrate their engineering prowess.

Doosan was among those names, filling its exhibition stand with a host of brand new models that it expects to succeed in the market.

Doosan used the show to launch a new range of crawler excavators intended for the Middle East and African markets, including the DX225LCA model, and the larger DX300LCA and DX340LCA models.

The new excavators offer new design features suited to the needs of the African market, including a powerful Doosan Tier 2 compliant engine, fewer electronics on board and a new ergonomically-designed cab.

The company has also recently launched new wheel loaders for markets in Africa and the Middle East, and exhibited the Doosan Tier 1 diesel engine-powered DL250A wheel loader at the event.

Atlas Copco, which recently received a MSEK 250mn (US$35.3mn) order in South Africa to deliver Pit Viper 351 blasthole drilling rigs to Anglo American subsidiary Kumba Iron Ore, used Intermat to launch the Edge Drill Monitor, which measures shock waves from down-thehole drilling.

44

Edge, which has been developed jointly by Atlas Copco and SPC Technology, is a continuous monitoring system that can be fitted to all types of deep-hole drill rigs that use Secoroc DTH hammers.

SPC Technology chief technology officer Ivo Henriksson said, “By isolating the hammer vibrations from all the other noise and analysing the frequency and amplitude of the drillbit hitting the rock thousands of feet below ground, we are able to provide the drillers with user-friendly real time information to optimise their drilling parameters.

“In a recent customer evaluation programme, we reduced fuel cost per drilled footage by 10 per cent and increased rate of penetration (ROP) by 11 per cent using the Edge,” he added.

JCB, whose famous dancing diggers were joined by a group of Parisian street dancers at Intermat, highlighted many of its 2012 launches at the show including the restyled JCB 457 wheeled loader, which features the biggest engine currently used within the company's construction equipment range.

“This restyling certainly differentiates the 457 from the previous generation of JCB wheeled loaders and sets a new design direction,” said JCB chief innovation and growth officer Tim Burnhope.

African Review of Business and Technology - June 2012

“The JCB 457 is a bigger, better and frankly, unbeatable new wheeled loader from JCB,” he remarked.

JCB also announced record financial results for 2011 during the show, boasting turnover of £2.75bn (US$4.4bn) for the year – 37 per cent higher than the £2bn (US$3.2bn) posted in 2010.

John Deere Power Systems unveiled its solution for the EU Stage IV emissions regulations at Intermat and introduced an SCR catalyst and diesel exhaust fluid dosing unit to its Stage IIIb engine platforms from 56-560kW. “SCR was not our preferred technology path, but it has proved to be the best way for us to maintain particulate levels, while reducing NOx to meet EU Stage IV emissions regulations,” explained Xavier Adam, market planning manager for John Deere Power Systems.

Caterpillar brought a whole host of machines to the exhibition, proving as popular with industry visitors as with construction machinery enthusiasts.

More than 60 products were exhibited across its three booths at the show, which included a host of new rolling equipment such as the multiple application Cat B-Series Tandem Vibratory Roller series and the Cat CW34 Pneumatic Roller, while the new Cat 307.D and 302.D mini-excavators were also unveiled.

Intermat 2012 exhibition manager Maryvonne Lanoë surmised, “The ninth Intermat confirmed the recovery of the construction equipment sector, with a clear upturn in business worldwide and turnover of more than US$100bn in 2011. So Intermat in fact heralded the 2012 recovery.”

With another three years to go before the show returns to its traditional Paris home, the next stop for the Intermat brand will be the Abu Dhabi National Exhibition Centre, which will hold the Middle East edition of the trade show in October 2012. ■ Ben Watts

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EQUIPMENT

Construction Easy steps to effective use of clamping systems

B

anding & ID Solutions, which supplies industrial products and after sales service solutions, offers handy tips on how to effectively use a clamping system, with respect to the Band-It band and buckle kit, available through Banding & ID Solutions and distributed by Dowson and Dobson Industrial.

The Band-It band and buckle kit is ideally-suited to a wide range of clamping applications, and is available in half-inch and three-quarter-inch kits.

Banding and ID Solutions The Banding & ID Solutions range Africa business manager Rosa Remendos points out that the kits are designed for use in applications such as , hose clamping, bundling cables together, fastenening objects, sign hanging, emergency pipe repairs, and general maintenance.

How to clamp, when to clamp Remendos highlights the fact that a number people are not aware of when a clamp is too tight.

“Is it difficult to know what your band clamp is too tight, as the point of maximum holding force may be too tight for some objects and not tight enough for others.”

She recommends a simple testing method to determine if tightness is appropriate for the application. “When a steel band is tensioned up to its yield strength it has maximum holding force, and additional tensioning beyond the yield strength will stretch the band, but not apply additional holding force. If tensioning and stretching continues, the band will ultimately break.”

Remendos notes that the key is to get consistently close to the band’s yield strength without significantly stretching it. “In order to determine whether the band has reached its yield strength, the user should insert the clamp tail into the tensioning tool, and tension until the clamp is snug. Using a felt tip marker, it is recommended to draw three or four lines across the band clamp, approximately a quarter-inch in front of the buckle,” she

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African Review of Business and Technology - June 2012

continues. “Resume tensioning and watch for movement of the lines in relation to the buckle. When the lines stop moving, the clamp has reached its yield strength.”

After reaching its yield strength, Remendos explains that the clamp will not achieve additional holding force and, if tensioning and stretching continues, the band will weaken. “Further tensioning of the clamp may result in band failure,” she adds.

Avoiding the slip Remendos notes, also, that tool slip when tightening clamps is another major challenge that can be easily overcome through a number of simple steps.

“Most Band-It tensioning tools use a similar gripper design to securely grip the band. The gripper is precisely machined, hardened, and designed so that as tension increases, more force is applied to the band. During tensioning, the cam-like motion of the gripper results in the gripper teeth digging into the band. This causes metal particles, dirt, oils and other debris to become trapped in the spaces between the gripper teeth.”

During the course of time, the debris can completely fill the spaces and become compacted, resulting in the smoothening of the gripper surface, adds Remendos. “The smooth surface is no longer able to grip the band and, as a result, slipping occurs. Slipping may also cause the gripper teeth to chip, which eventually results in considerable damage to the entire gripper.”

Remendos points out that this challenge can be overcome swiftly, with minimal effort.

“To overcome tool slip, the user must first place the tool onto a hard surface, and align the slide block and tool frame. Next, the gripper pin must be removed by pushing it through the slide block, before it is wire-brushed by hand to thoroughly remove all debris. Finally, the parts must be reassembled in reverse order.”

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WAMPEX

MINING

Promoting minerals and energy production Opportunities in West African mining and power sector operations are represented comprehensively at WAMPEX in Ghana

T

aking place in Accra, in Ghana, from 6 to 8 June 2012, the biennial West African Mining and Power industry Exhibition (WAMPEX) is organised by Exhibition Management Services (EMS) to highlight commercial opportunities in mining and power sector operations.

Resources for extraction, capital for production With respect to minerals, the West African record is one of dynamic growth. Eight new mines have started production in the last three years, with another 13 mine projects planned for the region. In Ghana, there are plans for development of nine major mines and 600 smaller mining operations, all of which are seeking for international partners to scale up production.

“Local mining companies lack the capital and expertise for this level of operation, so we welcome companies with expertise in Africa’s resources sector to become involved in this development opportunity,” says Moses Asaga, Chairman of Ghana’s Parliamentary Select Committee of Mines and Energy.

WAMPEX has represented such developments for the last 17 years. And both WAMPEX and its associated conference WAMPOC continue attract international exhibitors, visitors and delegates in significant numbers, reflecting the extent of opportunity in the sector. Its authority as a platform for opportunity is underscored by the fact that the event is endorsed by the Ghanaian Ministries of Energy; Lands and Natural Resources; the Ghana Chamber of Mines; The Minerals Commission of Ghana and the Volta River Authority. The private sector is represented by such regular participants as Anglogold Ashanti, Newmont, Goldfields and Golden Star Resources. Moreover, previous exhibitors West Africa Pumping Services, Golder Associates, Sykes Group and Sakr Power, buoyed by the success of their 2010 involvement, have doubled their exhibition space bookings.

“The combined annual gold output of Ghana, Mali, Guinea, Burkina Faso, Mauritania and Ivory Coast has increased by 65 per cent in five years, to roughly 6.7mn ounces,” says John Thomson, Managing Director of Exhibition Management Services, co-organiser of the exhibition. “These countries will produce 8.5mn ounces a year by 2013. But to do this they will need international partners.”

Major investments fuel growth A recent $3bn loan accord between Ghana and the China Development Bank for the development of Ghana’s energy industry was quickly followed by a $10.4bn concessionary loan agreement with the Export-Import Bank of China for the development of rail, road, and energy infrastructure.

“The funding is in place and the business opportunities are now ‘real’,” observes Thomson.

Why Power and Mining?

“Mining is the largest consumer of power in the West African region, and more power will be needed as mining activity increases,” says Thomson. “The inclusion of a power component in the WAMPEX expo is the perfect medium to address this critical sector.”

Ghana relies on water in the Volta River to feed the hydroelectric turbines below the Volta Dam, which supplies almost all the country’s electricity. Occasionally droughts disrupt water flow causing power cuts, reducing mining output.

In fact, the unpredictability of power supply in many African countries is one of the main hindrances to economic growth and social development. Many countries have unreliable, aging equipment with Nigeria a prime example, operating at one-third of its installed capacity.

“Demand for power in West Africa is growing rapidly, and to meet this, new installations are required on a regular basis,” continues Thomson. “Some countries are

upgrading hydroelectric facilities and increasing dam capacity to address this.

Another viable medium-term strategy is power sharing with neighbouring countries through regional grids. Renewable energy such as solar, wind, and geothermal power are a growing alternative energy source.

“But the ultimate long-term solution remains, however, the installation of new facilities. The WAMPEX exhibition and conference presents stakeholders with a focused products and services showcase, along with a versatile and effective platform for networking and matchmaking. This is a trade event vital to the region and not to be missed.”

Conference focuses on sustainable resources The WAMPOC 2012 Conference provides a platform for discussing and debating the state of the mining and power industries in the West Africa sub-region. Industry leaders will present papers on current trends in the industry – from policy matters through to exploration, financing, risk management and integration. The theme for the 2012 WAMPOC Conference is: “Deepening partnerships for the sustainable development of Africa’s mineral and energy resources”. www.exhibitionsafrica.com

African Review of Business and Technology - June 2012

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EQUIPMENT

Mining HPE Africa gains ground with Hyundai wheel loader range

H

igh Power Equipment Africa is gaining market share with its exclusive range of new and used heavy duty wheel loaders manufactured by Hyundai Heavy Industries. The company is sole distributor for this 7/7A Series equipment in Southern Africa including Botswana, recently opened a new distribution/service branch in Cape Town and is currently expanding into its own premises across the border in Zimbabwe.

Exceptionally durable Hyundai equipment has become the preferred choice for operators in extra-tough businesses such as coal and platinum mining, quarrying, materials recycling, road and other environmental projects, plant hire generally and the handling of urban waste.

All-steel bodywork with no lightweight plastic components comes as standard, resulting in a six-strong range of extremely robust machines from 9.7-29.3 tonnes operating weights that are all designed to undertake the most challenging tasks required under typically harsh African climate, maintenance and terrain conditions.

Power and control As just one example, the mid-range 760-7A wheel loader is a rugged and highly productive materials lifter weighing in at 17.9 tonnes, powered by an EU Stage III four-cycle common rail Cummins QSB 6.7 electronically-controlled/turbocharged/self-diagnosing six-cylinder engine of 6.7 litres capacity which delivers 218hp. It comes equipped with a 3.1m3 (heaped condition) bucket. Four-wheel drive is fitted as standard and the sophisticated Z-bar kinematics linkage installed offers choice of one of three variations of the manufacturer’s lifting boom range available. The lifting system incorporated for the bucket offers four separate lift and three tilt functions. And the breakout force available from this sophisticated and powerful Hyundai machine is 15,950kg.

According to Marketing Manager Kirsty Denholm all these Korean-built wheel loaders can be operated with one hand on the steering wheel and the other on the control lever, reducing the need to reach for other levers or switches to a minimum, e.g. effortlessly switching between forward and reverse travel at the touch of a button and activating the kick-down function which releases extra power when on the move. The dashboard offers an attractive graphic display with user-designed menu which facilitates rapid interpretation of essential information. Built-in aircon and

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African Review of Business and Technology - June 2012

heating is available of course, all these in-cab features making each model in the range a “safe and pleasant piece of equipment to operate.”

She concludes by pointing out that the company’s unrivalled aftersales and technical support offer, which covers its growing sales of selected used equipment too, adds to the value of the complete Hyundai ‘package’. “HPE Africa places a high priority on offering committed and dedicated after-sales and technical support to all its clients...The value-added service has led to the HPE Africa brand and its product offering being the preferred supplier to the African market.”

Speaking exclusively to African Review General Manager Neil Sauls pointed out that the used-plant market for these sophisticated but readily understandable machines in Southern Africa is very strong right now, offering nearly one-third off the list price in many cases, with up to 20,000 hours being the life-span of a typical machine operating in South Africa today. Demand is strong and supply tight here right now so a sales increase somewhere in the 10-20 per cent range should be achievable this year.

Finally the example is quoted on the well illustrated website (www.hpeafrica.co.za) of an established customer working for more than 20 years in SA’s North West Province, as well as in Botswana.

Mining-related operator Tlhago Boswa Earthmoving acquired a new 23.1t HL770 at the end of 2010 to complement its range of Hyundai wheel loaders acquired recently, the company’s complete earthmoving fleet comprising 50 items of heavy plant in all.

Emphasising the quick turnaround times available for servicing, a company representative says, “HPE Africa’s sales staff are always on hand to offer support and advice...the delivery time of the machinery has been quick and hassle-free.”

And as it states elsewhere on the site, “With the Hyundai wheel loader there truly is no limit to what you can do.”

Durable Hyundai equipment has become the preferred choice for operators in extra-tough businesses such as mining and quarrying

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EQUIPMENT/ CLASSIFIED

Economic and ecological handling of SF6-gas DILO Armaturen und Anlagen GmbH, which specialises in the SF6gas technology sector, recently launched some new products facilitating emission-free and professional SF6-gas handling.

Amongst its new launches is the SF6 Multi Analyser, a new device with a gas return system offering a unique combination of gas collection unit and measuring device, allowing operatives to reclaim the measuring gas and to determine the concentration of SF6, moisture, and SO2 in one single measurement.

The SF6-Gas Service Cart is equipped with all functions necessary for professional SF6-gas handling. The gas handling unit allows recovery, purification and storage of used SF6-gas in liquid form.

Furthermore, gas compartments can be evacuated from air and refilled with the purified SF6gas as well.

And SF6 Leakage Test Unit allows integral leak measurements on GIS Corporate, Business components and assemblies Diplomatic & Tourist Shuttle within minutes, with leak & Transfer Service testing performed in and around Cape Town automatically in a vacuum Tel: +27 82 837 2973 chamber by means of a highly www.shuttlescapetown.com

SF6-Gas Servicegeräte L280 / L550

sensitive measuring system, having a detection limit of < 1 ppb. www.dilo-gmbh.de

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Eaton E aton p provides rovides ro rock-solid ock-s olid po power ower p protection. rotec t ion.

Bahnhof Unipessoal Lda, Pionen data centre, Sweden

Hosting Host ing 15% 15% of Sweden’s Sweden’s internet traffic, able a to emplo employ y more tthan han 6,000 ser servers 1.5 .5 mega megawatt watt of cool cooling, rvers which require 1 ing, and housed in an old nu nuclear clear bunk bunker er 30 metres beneat beneath he city of Stockholm, tthe he h tthe Pionen data daata centre is extraordinary. extraordinary. Which is why why its uninterruptible uninterruptible power power req requirements quirements are entr entrusted usted to a uni unique ique partner in Eaton.

From power distribution quality, ity, control automation, ion, F rom po wer d istribution to power power qual c to automat we w e can manage m complete electrical po power werr sy systems, stems, del delivering ivering solutions with sustainability. solut ions wit h reliability, reliability, efficiency, safety safety and sustainabil ity.

Whatever Whateverr is crit critical ical to yyou ou is crit critical w wherever ical to us: where ver tthere’s here’s electricity, air,, yyou’ll he pe people, knowledge, electricity y, land, sea or air ou’ll find tthe eople, kno wledge, understanding understan nding and experience. experience. Brought together together in One Eaton.

To www.eaton.eu/electrical T o find out ou ut more visit www w.eat . on.eu/elecctrical

Architect – Albert France-Lanord.

6,000 servers, 30 metres