African Review June 2014

ATR June 2014 Cover Spine_Layout 1 5/16/2014 12:59 PM Page 1

www.africanreview.com

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

June 2014

African Review of Business and Technology

P66

June 2014

Innovations and opportunities at SAITEX

P45

Volume 48 Number 5

Cameroon rebuilds its infrastructure

www.africanreview.com

50 years Business:

Power:

Mining:

Austin Okere, CWG Group CEO, speaks on Nigerian banking P22

Consortium investment in Ghana’s national grid P38

Quarrying in Arabic and African territories P54

Serving business in Africa since 1964

S01 ATR June 2014 Start_Layout 1 5/15/2014 4:34 PM Page 2

S01 ATR June 2014 Start_Layout 1 5/16/2014 12:53 PM Page 3

UP FRONT

Editor’s Note

www.africanreview.com

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

June 2014

P66

Innovations and opportunities at SAITEX

T

his issue of African Review covers public and private sector developments in multiple sectors.

In business, from pages 18 to 25, there are stories from Malawi, Zambia, Ethiopia, Nigeria and Uganda. Finance and technology are addressed on pages 28 to 31 with articles on banking and e-commerce. Transport is represented on pages 32 and 33, with respect to technological develoments and container movement. The power section, which runs from page 34 to page 42, offers analyses of research and development in standby power, of Tunisia’s burgeoning energy infrastructure and investment in Ghana’s grid network, and of how photovoltaic technology is being utilised to support mobile telecommunications in Togo and commercial enterprises in South Africa.

There is a lot to report in from construction and mining projects and companies. Between pages 44 and 58, there are articles on hotel construction in Algeria, Cameroon’s commitment to nationwide reconstruction, the manufacture and supply of cement from Kenya and bitumen from Bahrain, to serve African constructors, and an overview of the key developments in West African mineral extraction and power supply on show at WAMPEX in Ghana.

P45

Cameroon rebuilds its infrastructure 50 years Business:

Power:

Mining:

Austin Okere, CWG Group CEO, speaks on Nigerian banking P22

Consortium investment in Ghana’s national grid P38

Quarrying in Arabic and African territories P54

Serving business in Africa since 1964

Main cover picture: Nordic Touch Inset, bottom left: CWG Inset, top left: Guido Sohne

Andrew Croft, Managing Editor

Contents

REGULARS 04 Agenda:

14 Bulletin:

Public and private sector developments

47 Solutions:

Corproate appointments and financial news

P33

Equipment and services for construction, mining and power

FEATURES 18 Business Sustainable skills development in Malawi; Zambia’s successful financial venture; Ethiopian Airlines’ expansion into West Africa; improving Nigerian banking systems for better customer service; and the business of improving Uganda’s sewer systems

28 Finance, Technology and Transport Profiling Ecobank’s pan-African operations; e-commerce strategies in Africa; communications equipment for maritime operations; and innovative crane technology

P36

34 Power A new standard in generator development; Tunisia’s energy infrastructure; boosting Ghanaian power supply; and solar systems for Togolese telecommunications and South African businesses

44 Construction Building a hotel in Algeria; creating new infrastructure in Cameroon; cement manufacture in Kenya; and Bahrain’s bitumen supply to African roadbuilders

52 Mining Excellence in mineral extraction and energy provision for mining operations at WAMPEX; how an excavator improves efficiency for Arabic and African quarrying firms Audit Bureau of Circulations Business Magazines

Managing Editor: Andrew Croft andrew.croft@alaincharles.com Editorial and Design team: Bob Adams, Hiriyti Bairu, Sindhuja Balaji, Lizzie Carroll, Ranganath GS, Prashant AP, Rhonita Patnaik, Louise Quick, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, and Ben Watts Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey

www.africanreview.com

Advertising Sales Manager: Jane Wellman Tel: +44 114 262 1523 Fax: +44 7976 232791 Email: Jane.wellman@alaincharles.com

South Africa: Annabel Marx Tel: +27 218519017 Fax: +27 46 624 5931 Email: annabel.marx@alaincharles.com

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

UAE: Camilla Capece Tel: +971 4 448 9260 Fax: +971 4 448 9261 Email: camilla.capece@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

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: tanmay.mishra@alaincharles.com Nigeria: Bola Olowo Tel: +234 80 34349299 Email: bola.olowo@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: Nathanielle Kumar, Donatella Moranelli, Nick Salt and Sophia White E-mail: production@alaincharles.com Subscriptions: circulation@alaincharles.com

Chairman: Derek Fordham Printed by: Wyndeham Grange Ltd 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 2014

3

S01 ATR June 2014 Start_Layout 1 5/15/2014 4:34 PM Page 4

NEWS

Agenda / North Dassault Aviation presents flagship Falcon 7X at Marrakech Air Show

Konecranes presents products at Med Ports

K

Dassault Aviation presented its large cabin, long-range Falcon 7X at the fourth Marrakech Air Show, to be held in Morocco April 23-26

Dassault Aviation presented its large cabin, long-range Falcon 7X at the fourth Marrakech Air Show, held in Morocco in April 2014. It was Dassault’s second appearance at the show, which bills itself as the foremost trade show in the African region.

The flagship Falcon 7X, the first business jet equipped with digital flight controls, has a range of 5,950 nautical miles and can comfortably fly from Marrakech to Beijing, Los Angeles or Cape Town non-stop.

“Thanks to strong development of the economy and fast growth in industries such as mining, oil and gas, agriculture and construction, we see great potential in Africa for long-term growth in business aviation,” said Gilles Gautier, Vice President, Falcon Sales for Dassault Aviation. “Business jets are an ideal way to get around such a vast continent, where airline connections are often limited and ground infrastructure, minimal.”

More than 70 Falcon jets are in operation in the African region, around 15 per cent of them in North Africa. Another ten Falcons are on order for delivery in 2014-15, most of them for the Falcon 7X. Dassault recently celebrated the rollout of the 250th 7X – the fastest any Falcon jet has ever reached this milestone. Well over 200 units are currently in service in 34 countries and the fleet has accumulated more than 250,000 flight hours since the 7X was introduced in 2007.

Last year, the 7X was approved to carry Dassault’s second-generation intuitive EASy II flight deck. The award winning platform offers a number of significant enhancements, including enhanced and synthetic vision systems, Satellite Based Augmentation System capabilities and new air traffic management features to ensure compliance with future regulations.

The exceptional short field and hot-and-high performance, sturdiness and operating economics of the 7X and other new Falcon models make them ideal for the tough conditions and vast expanses of the African continent.

They can access many challenging airports where competitors are unable to operate or can do so only with limited range. All in-production Falcons are approved for operation into and out of London City Airport – one of the world’s most restricted facilities. The 7X can fly non-stop out of London City as far as New York, Dubai or Lagos.

The unparallelled performance and flexibility of Falcon jets has made them a special favorite among African government users, which operate 30 per cent of the Falcons in the region.

“Falcons are universally appreciated for their large and quiet cabin, advanced design and fuel efficiency,” remarked Gautier. “Not only are Falcons less expensive to operate, they also retain greater value on resale. On average, 7X operators will save up to US$10mn in total cost of ownership over a 6 year period compared to its closest competitors.”

4

African Review of Business and Technology - June 2014

onecranes, which specialises in lifting technology, attended Med Ports 2014 - the biggest annual container ports and terminal operations exhibition and conference event for the Mediterranean region, late in April in Marrakesh, Morocco.

The group, which focused in Marrakesh on port cranes and lift trucks, provides intelligent lifting solutions and extensive service to increase the efficiency and profitability of companies in all sectors for the long-term - including manufacturing and process industries, shipyards, ports, and terminals. Konecranes entered into the North African market in 2010 by

The new Konecranes Boxhunter container handling crane

acquiring the Moroccan company Techniplus. Konecranes-Techniplus is wellrecognised leader in Morocco in servicing port equipment from Agadir to Tangier.

The two companies built a synergy that has started immediate growth by offering its large range of industrial lifting equipment, cranes, and lift trucks to the industry, as well as its expertise to serve and maintain all brands of industrial hoisting machines. Besides that, Konecranes-Techniplus is already wellpositioned in the service to port equipment in Morocco, with branches in Agadir, Safi, Jorf Lasfar, Casablanca, Tangier, and Nador.

“We expect good follow-up business after the fair,” said Thomas Descamps, Konecranes Country Manager for Morocco and French-Speaking Africa. www.africanreview.com

S01 ATR June 2014 Start_Layout 1 5/15/2014 4:34 PM Page 5

S01 ATR June 2014 Start_Layout 1 5/15/2014 4:34 PM Page 6

NEWS

Agenda / East Fresh energy for Vodacom Tanzania Vodacom Tanzania has ordered an energy centre from Flexenclosure, a specialist developer of prefabricated data centres and intelligent power management systems for information and communications tecnology (ICT). It will power Vodacom Tanzania’s main switching centre in the capital Dar es Salaam as replacement for the energy centre that was damaged in a fire in August. The new energy centre will be divided into fire zones to minimise the risk of similar incidents in the future. To further secure trouble-free operation, a DCIM system will be used for remote management of the energy centre.

A multi-million dollar contract has been signed between Flexenclosure and Vodacom Tanzania for the deployment of a custom-designed and fully configured energy centre. It will be deployed in July at Vodacom Tanzania’s main switching centre in the Kwale district of the capital Dar es Salaam in Tanzania, the largest country in eastern Africa.

An energy centre is a vital part of any data centre – this is where the energy equipment is installed that is needed to power the network equipment. The rest of the data centre, the ”white floor area”, houses the network equipment.

Altaaqa Global opens East African office Dubai-based Altaaqa Global CAT Rental Power, which provides temporary power solutions, has recently opened a branch in Nairobi, Kenya to serve the East Africa territory. The office will cater to several countries, including Tanzania, Rwanda, Burundi, Uganda, Kenya, Somalia, Ethiopia, Sudan, South Sudan, Djibouti and Eritrea.

Altaaqa Global’s new Nairobi office

Strabag chooses Sandvik German construction giant Strabag International GmbH recently took delivery of a Sandvik UH310 wheeled cone crusher for use in a major project in Tanzania. The product, together with a significant amount of ancillary equipment, was supplied by local crushing and screening specialist Pilot Crushtec International, the Sandvik Construction agent for 14 African countries.

“The customer insists on using Sandvik equipment and placed an order with us because we stocked the product it needed, have a significant inventory of spare parts and,

importantly, offer field service support provided by our local dealer, MACS, in Tanzania,” said Africa sales manager Wayne Warren.

The customer’s confidence in Pilot Crushtec International’s all round ability to produce product and service solutions was reinforced with the additional purchase of some of its own locally-produced products which are working in conjunction with the crusher, screen trailer combination. These included a Pilot Modular MFH25 feed hopper and Pilot Modular MC600 and MC800 conveyors.

Strabag International GmbH recently took delivery of a Sandvik UH310 wheeled cone crusher for use in a major project in Tanzania

6

African Review of Business and Technology - June 2014

Peter den Boogert, general manager of Altaaqa Global, said, “The business activities in the East Africa region are flourishing and the economy has been thriving throughout recent years, resulting in an increased demand for power. At Altaaqa Global, our objective is to be on the ground as quickly as possible when customers require our energy solutions, and our new branch will enable us to reach this region faster than before. We realise that our industry is driven by emergency needs and hard deadlines, but uses equipment that requires substantial lead times to acquire. With the combined fleet of our sister company in Saudi Arabia, Altaaqa Global has approximately 1,400 MW of rental power readily available so that we can focus our efforts on rapid deployment and customer satisfaction.”

Steven Meyrick, Board Representative of Altaaqa Global, commented, “This strategic expansion is in line with our vision to be the leading and the most preferred temporary power solutions provider before year 2020. During our geographic expansion, we will continue to heavily invest in human resources, further improve our business processes, and expand and diversify our fleet of CAT power generators.” www.africanreview.com

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 7

Off Off-road -road 105–565 105 – 565 kW P Power ower Gener Generation ation t

85–782 kVA kVA

UPTIME IN PRACTICE

Construction Mining/Quarrying Materials handling Stationary Agricultural Forestry Power generation

POWERING ERING Y YOUR OUR O BUSINESS PO WERING WWW.VOLVOPENTA.COM WWW.V W.V VOL OLVOPENT O TA A.COM

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 8

NEWS

Agenda / South New farming equipment at Nampo Case IH showcased its full line of equipment at the 2014 Nampo Harvest Day in mid-May with an impressive display of its tractor ranges, harvesting and haymaking equipment, precision farming solutions and implements. Its impressive tractor display ranged from the compact 42 kW JX55T right up to the 492 kW Quadtrac 600.

The Magnum tractor range was centre stage. These medium-high horsepower tractors deliver power and productivity in the toughest conditions together with exceptional fuel efficiency. They feature engine power management that delivers up to an additional 36 hp, increasing performance by up to 14 per cent. The engine technology on these frugal tractors provides up to 15 per Case IH presented the powerful Steiger and Quadtrac tractors at Nampo 2014 cent lower fuel consumption in Bothaville, South Africa compared to previous models.

Beside them were the massively powerful Steiger and Quadtrac tractors. They are designed to deliver maximum horsepower, with engine power management delivering up to 62 more horsepower when needed. The design of the Quadtrac’s track system provides optimum traction while minimising soil damage. In spite of their size, the Steiger and Quadtrac move with agility, with their conventional articulated steering giving them full-power turns within 5.7 m.

At the low end of the line up was the compact Quantum utility tractor. Its low centre of gravity provides outstanding stability on all terrains while its high manoeuvrability and low profile makes it ideal to work in tight spaces and low ceilings.

SA farmers to gain more from solar energy

I

n South Africa, Eskom's eight per cent average increase of energy prices per annum over the next five years, petrol price hikes, the increase of farmworkers' minimum wage, as well as the e-tolling regulations in Gauteng, will all add to the increasingly high input costs across the agricultural sector, all of which farmers continue to battle to contain.

According to Arthur Chien, CEO of Talesun Energy, which supplies solar energy solutions, some of these costs can be alleviated, especially electricity is one cost that farmers can reduce and do have control over. He said, recently, “Renewable energy solutions allow farmers to reduce energy costs and protect themselves against energy shortages and price increases. Crop irrigation, for instance, is a key energy concern for farmers, as the action of pumping water around the farmland can utilise a great amount of energy.”

South Africa’s farmers are set to gain more from solar power Photo: Kate Holt/Africa Practice

Gulfstream Energy serves Transnet One of nine companies collectively awarded the R15.5bn Transnet contract at the end of 2013, Gulfstream Energy has completed its first fuel deliveries to the ports of Richards Bay, Durban, East London and Saldanha. The Gulfstream Energy portion of the tender, will see the delivery of significant quantities of fuel to all ports within South Africa for a period of five years.

“Transnet’s port operations play a critical role in both South Africa’s and the African economy,” says Shane Jegels, executive chairman at Gulfstream Energy.

“To be part of fuelling South Africa is not only a positive step forward in our own growth, but in turn provides us with the opportunity to play a greater role in the development and sustainability of our nation.”

The Transnet tender, the single biggest contract for goods and services by the State owned company to date, took 18 months to complete and involved an intensive due diligence process. As part of Transnet’s commitment to broaden economic empowerment, a key objective of this tender was the opportunity to integrate a diverse group of black and female owned businesses into what has historically been a white dominated petroleum market.

Tender criteria included price, supplier development, technical ability and Broad Based Black Economic Empowerment (BBBEE) credentials.

8

African Review of Business and Technology - June 2014

According to Chien, renewable energy such as solar PV allows farmers to pump water throughout the crops at a reduced cost. He has also pointed to the example of poultry farms, which require constant ventilation and lighting, and can be the most expensive elements of an agricultural business. He said, “Solar PV can be integrated into a farm’s electrical distribution, helping to decrease the overall costs of large energy bills. It also lowers the carbon emissions on a farm, which increase an establishment’s green credentials. Furthermore, solar panels are low maintenance, have no moving parts that can wear out over time and are therefore very reliable.” www.africanreview.com

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 9

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 10

NEWS

Agenda / West New solutions for energy access West Africa’s future as a competitive economic bloc requires new solutions in power technology and investment to improve energy access and enable the implementation of an ambitious infrastructure programme according to Standard Bank.

Policymakers, regional governments and investors are grappling with methods to derisk investment in new business models. They are also looking at the technological, regulatory, financial and geopolitical factors that change the game and replicate the energy access success stories.

“The challenge for these growth markets is to find viable funding mechanisms and create an enabling environment to literally power the future of a continent that holds 15 per cent of the world’s population,” says Mr David Humphrey, head of power and infrastructure at Standard Bank. “Coupled with

funding, financial services institutions are also giving more attention to interest rate risk

management and hedging products; foreign exchange, and fuel hedging; and local currency

funding on a corporate, structured or project basis,” added Mr Humphrey.

The World Economic Forum (WEF) notes that together with border administration slowing inter-regional trade, the insufficient amount and quality of infrastructure is one of the major impediments to developing growth in West Africa and improving its competitiveness. Closing this deficit is part of the solution.

While over half of Africa’s improved growth performance can be attributed to improvements in infrastructure, the WEF says an estimated US$93bn is needed annually until 2020 to fund infrastructure development.

Increased urbanisation, growing consumer markets and broader ties to the global economy are putting additional pressure on the need for African economies to steam ahead with these investments.

JV to address current gas deficit and supply risk in Ghana

G

asol plc, a gas-to-power company, disclosed recently that African Power Generation Limited (AfGen) has signed a joint venture agreement (JVA) with Ghana National Gas Company Ltd. (Ghana Gas) aimed at providing additional gas to Ghana. Gasol has an option to purchase the entire issued share capital of AfGen from African Gas Development Corporation Limited until 24 August 2014.

Under the JVA, AfGen and Ghana Gas have agreed to establish a new joint venture company (JV), to be incorporated in Ghana.

The JV parties will explore a fast track liquefied natural gas (LNG) import project

10

located in Ghana, with regasification facilities to supply regasified LNG to power plants and other gas users as a dedicated solution for Ghana, independent of the West African Gas Pipeline. The JV, when adequately established and capitalised, will ultimately be responsible for the sale and marketing in Ghana of regasified LNG from Gasol's LNG Import Project in Benin via the West African Gas Pipeline. Initial gas volumes to be sold into Ghana are expected to be a minimum of 100mmscf/d for a minimum period of five years.

Gas from the JV will complement Ghanaian field gas as well as contribute

African Review of Business and Technology - June 2014

towards achieving security of the gas supply needed to address Ghana's current gas deficit and diversify gas supply risk.

Alan Buxton, chief operating officer at Gasol, said, "We are very pleased that, following on from the MoU signed between Ghana Gas and AfGen last year, AfGen has now moved on with a formal agreement which envisages the incorporation of a joint venture company. The arrangements signal progress on two fronts, both in delivering a dedicated solution for Ghana and prior to the implementation of that solution, the sale and marketing of regasified LNG in Ghana from our planned Benin LNG Import project." www.africanreview.com

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 11

Pre-Moulded Elbow Connectors upto 36kV

100% Factory produced & tested, before supplied

S02 ATR June 2014 Agenda_Layout 1 5/15/2014 4:41 PM Page 12

NEWS

Events / 2014 July 1-2

Africa Ports and Harbours Show Johannesburg, South Africa www.terrapinn.com

2-4

30-31

Water Africa

Africa Investment Funds and Asset Management Forum (AIFAM)

Accra, Ghana www.ace-events.com 2-4

West Africa Building & Construction

1-2

Accra, Ghana www.ace-events.com

Africa Rail

9-10

Johannesburg, South Africa www.terrapinn.com 2-4

Banking & Mobile Money West Africa

Cape Industries Showcase 2014

Accra, Ghana aitecafrica.com

Cape Town, South Africa www.exhibitionsafrica.com

15-16

2-4

FESPA Africa Johannesburg, South Africa www.fespa.com 2-4

Banking & Mobile Money West Africa

Nairobi, Kenya www.aifamforum.com

August 3-7

UIA Congress Durban, South Africa www.uia2014durban.org 6-10

Design Block Johannesburg, South Africa www.tepg.co.za

Lagos, Nigeria aitecafrica.com

13-16

23-25

Johannesburg, South Africa www.ecoafribuild.co.za

Refrigeration and Air Conditioning Mine Entra Bulawayo, Zimbabwe Exhibition zitf.net/mine-entra Cape Town, South Africa www.exhibitionsafrica.com

Ecoafribuild

13-16

Interbuild Africa Johannesburg, South Africa www.interbuild.co.za

A world of ‘firsts’ at Africa’s Big Seven Visitors to this year’s Africa’s Big Seven (AB7), the biggest food and beverage expo on the continent, can expect a number of exciting ‘first ever’ events. The 2014 edition of AB7 takes place from 22 to 24 June at Gallagher Convention Centre, Midrand, Johannesburg. ● Italian and Polish Pavilions: For the first time in the show’s 12-year history, Italy and Poland will be hosting trade pavilions showcasing the best and finest products their countries have to offer the food and beverage industry. ● New Product Innovations: Visitors to AB7 2014 will be first to try out innovations and technologies, and new products and flavours from over 40 countries. ● Taverner’s Forum: The Gauteng Liquor Forum (GLF)’s Suppliers Forum is aimed at bringing shebeen and tavern owners into mainstream food and beverage sectors. ● Free Subscriptions to Online Trade Magazines: Visitors registering for AB7

12

liquid dairy products, liquid food, fruit juices, energy drinks and wellness drinks.

Taste tests are a hallmark at AB7, Africa’s biggest food and beverage expo

●

African Review of Business and Technology - June 2014

online can receive free subscriptions to four of Italy’s leading English language online trade magazines: Italian Food Materials and Machinery World, Italian Food Excellence, Hotel World and Vineyard, Wine and Quality.

DrinkTech Africa Conference: This year’s DrinkTech Africa expo, a component show of AB7, hosts its industry conference for the first time. Drink Tech Africa encompasses bottled water, carbonated drinks, hot drinks, beer, wine and spirits, milk and

Back by popular demand A number of popular elements will feature again as part of this year’s show: ● Co-location with SAITEX: AB7 will once again be co-located with SAITEX, the Southern African International Trade Exhibition - the biggest business opportunities expo on the continent.

Together AB7 and SAITEX features almost 1 000 exhibitors from over 50 countries. ● Free Business Matchmaking: This popular and highly effective online business matchmaking service enables exhibitors and visitors to pre-arrange meetings with pre-selected people online, weeks before the show. www.exhibitionsafrica.com www.africanreview.com

S03 ATR June 2014 Bulletin_Layout 1 5/15/2014 4:45 PM Page 13

S03 ATR June 2014 Bulletin_Layout 1 5/15/2014 4:45 PM Page 14

NEWS

Bulletin / Appointments Afren’s audit and risk team gains chairman

region of five countries, namely: Nigeria,

which serves Vodafone‘s largest

Ghana, The Gambia, Sierra Leone and

multinational customers across Africa.

Afren plc has appointed Iain McLaren as a

Liberia - and to overseeing the growth of

non-executive director of the company,

MasterCard’s scope of products and

joining its Audit and Risk Committee, and

number of customers, at a time when

Dentsu Aegis Network brings new COO to North Africa

eventually becoming its chairman; a

many governments in the region are

Following the recent merger of Dentsu and

chartered accountant, Mr McLaren has over

highlighting the vices and cost of cash,

Aegis Media, Dentsu Aegis Network has

forty years’ experience working in

thereby leading to increased opportunities

promoted Antonio Chedrawy to the role of

international financial markets, accounting

for the technology company in the

chief operating officer to help drive

and auditing as well as the oil and gas

payments industry.

expansion of the network in the North

industry.

Africa and Levant (NAL) sub-region; previously chief financial officer, when he

MasterCard’s new West African business driver

Vodafone’s new VP sets to work on business management

MasterCard has appointed Keisha Clark -

The new vice president at Vodafone Global

trading departments as well as being

previously, JP Morgan Chase in New York,

Enterprise Africa, Deon Liebenberg, was

closely involved with the launch and

where she was an Assistant Vice President

previously the managing executive for

growth of the Lebanon, Egypt and Morocco

responsible for new client implementation

Vodafone Global Enterprise at Vodacom in

offices, Chedrawy is now charged with

of Treasury products - as vice president

South Africa and Chief Executive Officer for

expanding the geographical reach of the

and business leader of business

the Vodacom Business Africa Group of

Dentsu Aegis Network in NAL by

development in West Africa; Keisha is

companies across Africa; Liebenberg’s new

consolidating existing partnerships,

tasked with expanding MasterCard’s

role at Vodafone Global Enterprise involves

acquiring new agencies and driving organic

business in Anglophone West Africa, a

the management of the business portfolio

growth through local account wins.

was responsible for the network’s corporate governance, financial accounting and

Senior appointments at John Deere Bruno Rodique has taken up the post of

John Deere’s World Headquarters in Moline in

manager. Laurent Salomon has become

general manager of John Deere’s Saran

the USA. Pierre is in charge of John Deere’s

factory manager at Arc-lès-Gray, taking over

engine factory. Bruno is in charge of all

procurement and supply activities and will

from Bruno Rodique.

operations at the site, which has almost 1,000

work on improving the integration of these

Laurent trained as an engineer, graduating

employees, and manages production of Final

activities

development

from Centrale Lyon engineering school and

Tier 4 engines. Bruno has held various posts

programmes and production processes to

joining John Deere’s Arc-lès-Gray factory in

at the Saran factory, and at John Deere’s

optimise the company’s performance in terms

2003 as production manager for primary

European Headquarters in Mannheim. He has

of costs, quality and deadlines.

parts. In May 2004 he was given additional

also worked as operations manager, as quality

Pierre had various roles at Peugeot in Britain

responsibility for Welding and Maintenance.

manager for the company’s hay & forage

and France before he joined John Deere,

In 2009,

platform, and as Factory Manager at at the

where he moved his way up through the

Laurent was appointed manager for the

company’s Arc-lès-Gray factory, before his

company holding increasingly senior

Frontal Loaders Platform before being

latest appointment as general manager of

positions. He has worked at the Saran factory

promoted to the position of Manager at the

the Saran factory.

as manager, assembly, and at the Arc-lès-

Kemper Factory in Stadtlohn, Germany, in

He will also become the new chief executive

Gray Factory as operations manager. He has

August 2012. In his new role at Arc-lès-Gray,

officer of John Deere France.

also worked as director, supply management

Laurent will be in charge of operations

Bruno Rodique took his new role from Pierre

– agricultural equipment at John Deere’s

management at the factory and will be

Guyot, who has been appointed vice-president,

European headquarters in Mannheim, before

responsible for achieving safety, quality,

global supply management and logistics at

more recently returning to Saran as general

productivity and financial targets.

14

African Review of Business and Technology - June 2014

into

product

www.africanreview.com

S03 ATR June 2014 Bulletin_Layout 1 5/15/2014 4:45 PM Page 15

S03 ATR June 2014 Bulletin_Layout 1 5/15/2014 4:45 PM Page 16

NEWS

Bulletin / Financials Volvo Construction Equipment sees Q1 sales jump 10 per cent

Gabon's Strategic Investment Fund buys into Oragroup

African Potash raises US$1.7mn to work at Lac Dinga, Congo

Growth in sales, earnings, deliveries and order

The Central Africa Growth Sicar (CAGS) fund,

African Potash Limited has secured

intake at Volvo Construction Equipment

managed by pan-African private equity firm

financial and technical resources with an

during the first quarter of 2014 can be

Emerging Capital Partners (ECP), has

aggregate value of approximately US$2mn to

attributed to higher sales of smaller

successfully exited its stake in Oragroup, the

commence its “Phase 1” drilling and

machines, with the biggest sales increases

Togo-based, regional commercial banking

exploration programme at the Lac Dinga

coming from more mature markets,

holding company with operations spanning

Potash Project in the Republic of Congo; the

particularly North America, where sales were

twelve countries in West and Central Africa,

company has raised approximately

up 21 per cent during the period, compared

achieving 2.2x CAGS’ initial investment; CAGS

US$1.7mn through a conditional placing of

to the same three months in 2013; during Q1

achieved the divestment through sale of its

53,762,073 new ordinary shares of 1.9p each

2014 Volvo Construction Equipment saw net

stake to Gabon's Strategic Investment Fund

and has finalised a camp build, logistics

sales grow by 10 per cent to SEK13,371mn

(GSIF), following a five year holding period

support and operations management

(US$2,043mn).

during which time CAGS provided

agreement valued at US$0.3mn.

development capital and strategic

Corporate change sets up Murray & Roberts Infrastructure

management expertise to support Oragroup’s growth ambitions, as Oragroup doubled its

Stellar Diamonds finds funds for Baoulé Kimberlite Pipe Project

Murray & Roberts, which reported a net cash

countries of presence from six to twelve,

Diamond mining and exploration

position of R4.3bn (US$415.7mn) and an

entering the Ivorian and Senegalese markets

company Stellar Diamonds plc has

attributable profit of R1.0bn for the financial

through the acquisition of Banque régionale

conditionally raised approximately

year ended June 2013, has announced the

de solidarité (BRS), and completing a

£1.85mn (US$3.1mn) (before expenses)

integration of its Concor Civils and Concor

significant second fundraising period, totaling

through the issue of 148,179,476 new

Roads & Earthworks into a new single business

US$40.6mn, in 2014.

ordinary shares of 1p each at 1.25p per

called Murray & Roberts Infrastructure,

share to new and existing private and

Gasol gives update on Energie de Cote D'Ivoire SA acquisition

institutional investors; the proceeds of the

and collective legacy of these businesses by enabling a more focused approach of

Gas to power company Gasol has provided

advancing the company’s Baoulé

combined services to enhance project

an update on its acquisition of Energie de

kimberlite project in Guinea towards trial

execution and the ability to adapt to changing

Cote D'Ivoire SA; following receipt in

mining, as well as continuation of the bulk

conditions in the marketplace; Eric Wisse,

February 2014 by GDF Suez E&P International

sampling at Tongo Dyke-1 in Sierra Leone,

former managing director of Concor Roads &

of exercising notices in relation to the

settlement of outstanding fees and for

Earthworks, heads up the new business.

existing CI-27 Block partners' pre-emption

general working capital.

which is expected to entrench the cumulative

fundraising will be used predominantly on

rights, a financing facility agreement was

Africa Oil’s new trading profiles in North America

signed and in accordance with the terms of the sale and purchase agreement, Gasol paid

Leasing from IFC and Seychelles CB to help small businesses

Common shares of Africa Oil are now trading

a deposit of US$2mn, which was then

IFC and the Central Bank of Seychelles

on the Toronto Stock Exchange (TSX), and

returned following the exercise of pre-

have signed a cooperation agreement to

the company also intends to apply for a

emption by the existing partners, with the

lay the foundation for leasing facilities to

graduation to the NASDAQ OMX Stockholm

sale and purchase agreement providing also

help small-scale entrepreneurs strengthen

main board; Keith Hill, president and CEO,

for the payment of a break fee on exercise of

and expand businesses; leasing is an

commented, "It is timely now to graduate to

the pre-emption by the existing partners,

innovative financing solution for small

the senior board of the TSX and apply for the

and it has now been agreed between the

enterprises lacking the credit history or

NASDAQ OMX main board as it will provide

parties that the seller will pay and Gasol will

sufficient collateral required by most banks

greater liquidity for the company's shares and

accept a break fee of US$1.8mn in return for

to finance the necessary equipment to

allow for a broader shareholder base."

immediate payment.

heighten productivity.

16

African Review of Business and Technology - June 2014

www.africanreview.com

S04 ATR June 2014 On the Web_Layout 1 5/15/2014 4:47 PM Page 17

WEB SELECTION

African Review/On the Web

A selection of product innovations and recent service developments for African business Full information can be found on www.africanreview.com

Tanzania set to become 'logistics hub' for LNG industry PricewaterhouseCoopers (PwC) has said that ongoing infrastructure work in Tanzania will see the country become a hub within the global LNG industry.

A report by the professional services firm said Tanzania could become a A new port under construction leading exporter of liquefied natural gas in Bagamoyo will be capable of handling 20 times more cargo by 2025, supplying markets such as than Dar es Salaam port (PHOTO: photozou.jp) Pakistan, Spain, Chile and China. africanreview.com/energy-a-power/oil-a-gas/

DR Congo officially opens Kibali gold mine DR Congo has opened one of the continent's largest gold mines.

Randgold Resources and AngloGold Ashanti have invested more than US$2.5bn into the

www.africanreview.com

Kibali gold mine, which will produce an average of 600,000 ounces of gold per annum. africanreview.com/construction-amining/excavation/

SMC to step up diamond hunt in Angola Sociedade Mineira de Catoca (SMC) has declared its intention to invest in diamond exploration in Angola.

Ganga JĂşnior, CEO of SMC, said the organisation would target new areas within the country's seven diamond concessions. africanreview.com/construction-amining/quarrying/

Angola's Catoca diamond mine is the fourth largest diamond mine in the world (PHOTO: Swamibu)

AfDB to fund Senegal water project Senegal will receive an AfDB loan and grant amounting to a total of US$39.3mn to finance the country's water and sanitation sector project (PSEA), which was launched in 2005.

The project, part of the country's Millennium Drinking Water and Sanitation Programme (PEPAM), will look to ensure the achievement of the country’s millennium development goals. africanreview.com/manufacturing/water-a-environment/

African Review of Business and Technology - June 2014

17

S05 ATR June 2014 Report - Business_Layout 1 5/16/2014 10:10 AM Page 18

BUSINESS

Malawi

Moulding true leaders to spur Malawi’s growth How public and private sector leadership can be instilled and enhanced by offer opportunities to learn skills that will enable effective management

A

long-standing debate has always focused on the question whether leaders are born or made. Proponents of the notion that leaders are born cite the anti-apartheid icon Nelson Mandela who was born in a royal family while those who believe leaders are made cite the likes of US President Barrack Obama who had to stand against all odds to be a leader at school, at work, in the US Senate and finally at the White House!

Whether one subscribes to the nature or nurture paradigm, it remains undisputable that a little training can go a long way to sharpen one’s leadership qualities.

In the example of Mandela and Obama, one can appreciate that they have always been leaders by gaining influence from disposition, but also from the positions they held since junior primary school.

This seems to be a position embraced by a multinational charity, Concern Universal, in Malawi where the organisation runs a leadership training programme in partnership with the UK based Leadership Trust.

“We understand that by designing training with our leaders, we offer them an opportunity to learn skills that will enable them to lead effectively,” said Concern Universal executive director Ian Williams.

Malawi’s next generation of managers and directors

“These trainings are indeed an eye opener and is very relevant in our socio-economic environment,” added Mweso, recommending it to any leader or those aspiring for leadership in future.

Sustainable skills Williams - a scholar of leadership in management and marketing - added that NGO leaders in the developing world require sustainable leadership skills.

“We work with diverse groups in our catchment areas. You’ll find out that some situations may demand “out-side-the-box” kind of thinking. The leadership Horizon has enabled me to do just when occasion demands,” said Ester Mweso, Concern Universal project manager based in Blantyre.

Mrs Mweso conceded that leadership in the Malawian context - where poverty and illiteracy are widespread - the leader needs to have special skills to thrive.

18

African Review of Business and Technology - June 2014

The focus in malawi is on sustainable skills and team-building

One of the programme participants, Dickens Chauluka from World Vision, agrees with Mweso.

“We fail in leadership not because we do not know what we ought to do but because in the heat of work pressure, we lose self grip and forget important principles,” he observes, noting the training programme enable them to do well under pressure.

This only amplifies the assertion that the programme makes leadership qualities flow naturally from participants.

The programme is aimed at managers and directors involved - or will be involved - in making strategic contribution to their organisation.

“The training programme is designed to expose the learnable art of leadership in a fashion that allows participants to build their self-awareness, review their talents and discover their leadership style,” said John White, associate trainer in the Leadership Horizons programme.

Over 40 thousand leaders from 60 countries have been trained since 1975. ■ Mallick Mnela www.africanreview.com

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 19

KBL ADVERTORIAL

KBL fulfils Senegal’s wish for self-sufficiency in rice A BRIEF BACKGROUND Till date, Kirloskar Brothers Limited (KBL) has successfully executed four irrigation contracts worth US$36mn in Senegal. But the present situation paints a different scenario from a decade ago when Senegal was facing a massive import bill primarily for rice, which was straining the country’s foreign exchange availability. Apart from battling hunger, SE Maitre Abdoulaye Wade, President of Senegal, saw development of irrigation as an option for providing employment for the rural youth, stemming their exodus to the cities to earn a livelihood.

The relationship of KBL and Senegal dates back to 2005 when the world-class pump manufacturing company had showcased its range of pumps and capabilities to Ministers from over 25 African nations at the CII-Exim Bank Conclave on India-Africa Project Partnership.

The Government of Senegal then invited KBL to visit this West African nation to provide it with an understanding and means of access to KBL’s Appropriate, Adaptable and Affordable technologies in irrigation to increase the country’s rice production.

KBL team made its debut visit to Dakar in 2005 after the invite to meet the officials from Ministry of Agriculture. The team visited rice cultivation farms in Northern Valley along the Senegal River and Casamance in South Senegal.

Based on the data collected on average rainfall, crop pattern, Cultural Command Area & Irrigation potential, the detailed Technicalities & Specifications of the pumps & other related equipment were worked out.

2,394 pump sets and accessories supplied which marked the conclusion of Phase-I of the project on schedule.

TOWARDS A BRIGHT FUTURE IN FOOD SUFFICIENCY After the successful end of Phase-I, emphasis was laid on Phase-II of the programme, involving a wide range of large Vertical Turbine & Endsuction pump sets along with agricultural equipment comprising of rice mills, vibrodestoners, groundnut decorticators, chippers, shredders and grinding mills. As per KBL’s estimates, culmination of this Phase-II will lead to the irrigation of more than 1, 50,000 ha of farmland, thus translating Senegal’s goal of achieving food sufficiency by 2015-16 into reality. Besides it will also save an estimated US$350mn of the country’s foreign exchange.

The KBL-Senegal deal showcases the true partnership of political will and private entrepreneurship

THE SUCCESS STORY SO FAR

would be achieved by gross enhancement of irrigation systems in the existing farmlands, KBL said. Phase-II of the programme would bring in more land under cultivation to further increase the yield up to 1,000,000 tonnes.

The President approved the recommendation immediately with KBL clarifying all the queries raised by the provincial delegates and Cabinet ministers. The meet was concluded with the unanimous agreement that self-sufficiency in rice production was both necessary and achievable.

This deal showcased the true partnership of political will and private entrepreneurship.

KBL AS SOLUTION PROVIDER TOWARDS FOOD SUFFICIENCY

PROGRAMME IMPLEMENTATION

The KBL team identified that the major factor limiting the production of rice in the Senegal river valley is the lack of irrigation equipment.

While there is plenty of water in the River Senegal all year round, there are not enough means to get this water into the fields. On the other hand, in Cassamance the problem is somewhat different. Since the surface water is too saline, irrigation can only be by way of wells and boreholes to tap ground water.

After reviewing the situation, a proposal was presented to President Wade in May 2005, which prescribed the details of the irrigation equipment required to double rice yield in Phase-I of “Self Sufficiency in rice production” programme from less than 100,000 tonnes to 500,000 tonnes. This

Following the presidential meet, KBL signed the contract with Senegal’s Ministry of Agriculture to supply 2,394 diesel engine-driven pump sets, 20 drip irrigation systems and accessories, including pipes, trolleys, hoses, pontoons and valves. The total worth of this contract was US$27 mn and was inclusive of Installation & Commissioning on turnkey basis. Thus, the ‘Grand agricultural initiative for food security’ began in this West African country. In the light of increasing economic cooperation between India and African countries, the initiative was financed against a soft loan from India to Senegal.

Within eight weeks of receiving the Letter of Credit, 1,600 KBL pumps bound for Senegal left the Indian shores. The year 2006 ended with

www.africanreview.com

KBL has, up to date successfully executed four contracts with the “Ministry of Agriculture & Hydraulics” to pave the way for Senegal to achieve “Self- sufficiency in Rice production“ Contract 1: Design, manufacturing and supply of 2,394 pump sets with accessories, two years recommended spares and 20 Drip Irrigation Systems The total value of the contract was US$27mn. Since the commissioning of the project in 2007, the rice production in Senegal has gone up seven times from 100,000 to 760,000 tonnes.

Contract 2: Supply of 250 submersible pumping systems with accessories and Diesel Generators with one year maintenance spares.. The total contract value was US$5.29mn.

Contract 3: KBL supplied six Truck Mounted Bore-well Drilling Rigs and accessories with two years recommended operational spares. The contract was valued at US$2.71mn.

Contract 4: 92 complete submersible pumping systems with accessories and Diesel Generator Sets with one year maintenance spares. The total contract value was US$1.558mn.

KBL & SENEGAL PARTNERSHIP IN PROGRESS KBL with its vast array of Domain Expertise in Irrigation & Water Management Projects & Systems, is deeply Committed to partner the Govt. OF Senegal, in their endeavor to not only achieve self – sufficiency but also become a net exporter of rice, in the near future. ■

African Review of Business and Technology - June 2014

19

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 20

BUSINESS

Zambia

Zambia’s second sovereign bond East African government issues a financial instrument on the international capital market valued at a billion dollars

T

he terms on which a government can sell bonds depends on how creditworthy the market considers it to be. According to the Zambian Ministry of Finance, its second sovereign bond (issued in April 2014), like the first (issued in September 2012), has been a resounding success. ‘’The second bond, like the first one, was significantly oversubscribed, an expression and affirmation of the confidence the international investor community has in Zambia,’’ acting Minister of Finance Edgar Lungu said in a statement released recently.

The proceeds of the bond will be targeted at growth-prompting projects in critical sectors, as they are factored into the 2014 budget and the mid-term expenditure framework.

Investing in the investor community Recently, officials from the Ministry of Finance, Bank of Zambia (BoZ) and Ministry of Justice have rallied international investors behind the bond. The team was complemented by local and international lawyers, and book-runners Barclays Bank and Deutsche Bank. ‘’I want to express our unqualified thanks to this team of men and women for their stupendous efforts, undivided attention to duty and providing the international investor community with all the necessary information on the Zambian economy, which induced the confidence in Zambia resulting and culminating in the massive participation in the bond subscription,’’ he elaborated.

Resources from the international capital market will assist the Government to accelerate the development agenda which already has had an impact on the economy and is acquiring great momentum. ‘’The huge investments in billions of dollars in mining ventures in new frontier areas, and in corporate agriculture, are clear testimonies of the efficacy of our development agenda. They underpin our hopes,’’ Mr. Lungu said.

The Economics Association of Zambia (EAZ) has prodded Zambia’s government to manage

20

debt levels following the successful issuance of a second international sovereign bond.

Association president Isaac Ngoma said that it is worthwhile to note that there is still significant investor confidence in the economy as demonstrated by the subscription and subsequent issuance of the bond by the Government. This comes with a higher price than the debut bond of US$750mn, thus a yield of 8.625 per cent compared to the earlier 5.625 per cent yield about two years ago. ‘’This high cost signifies increased indebtedness, exhibited growing budget deficits, the increased likelihood of US Fed tapering, weak Chinese and Eurozone growth, and the continued pressure on copper prices, amongst other factors.

The bond is an alternative source to domestic borrowing, and has added a further debt-pricing benchmark based on yields on Zambia’s sovereign debt. It also further increases Zambia’s scrutiny by the global investment community. This means that overall debt levels need to be managed, and clear benefits from targeted expenditure be defined,’’ Mr. Ngoma said in a statement availed to the media in Lusaka recently.

He called for more fiscal discipline which has been a source of worry in the recent past. ‘’There is need to ensure that unplanned and excess spending is contained while revenue mobilisation efforts must be enhanced to levels that can sustain the debt repayments and finance the budget without too much pressure,’’ he elaborated.

The investment of the bond funds must target properly appraised projects of good economic returns to support the medium and long-term repayment plan. Whether it is infrastructure or specific services that may include support to small and medium-scale enterprises, focus must be on providing genuine economic stimulus and increase the prospects for real economic diversification.

Zambia should endeavour to create buffers and safety nets away from dependence on

African Review of Business and Technology - June 2014

copper which have proven to be the country’s pitfall, taking into consideration recent experiences.

Meanwhile, the Zambia Chamber of Commerce and Industry (ZACCI) says the successful issuance of the second bond is welcome as it will spur economic activities for the business community. According to ZACCI president Geoffrey Sakulanda, issuing bonds is the best way of raising funds for the country because it is cheaper in the long-term. He, however, emphasised that the critical factor is the use to which the funds will be put to. ’’If the money will be used for capital projects that will go to enhance Zambia’s capacity in infrastructure and competitiveness, that is a good thing. Meaning we must improve the quality of communication, electricity, transport, and road and rail infrastructure to ensure that accessibility to markets and from markets is enhanced,’’ he elaborated. The application of the money is critical as it will be a basis to ensure that the country is not trapped into debt. The nation’s government should use the money to generate economic activity to be able to have sufficient funds to pay it back, continue to run efficiently and eliminate budget deficit. ‘’Government should also operate within its budget, reduce the deficit by applying good financial management to ensure that wastage in government expenditure is minimised and eliminated so that money is saved to apply to capital projects and reduce on the cost of running government which is emolument related,’’ he added.

Zambia’s debut Eurobond was pegged at US$750mn in 2012, attracting the largest order book for an inaugural sub-Saharan sovereign bond. The country joined other African countries such as South Africa, Nigeria, Ghana, Gabon, Senegal and Namibia which have issues similar bonds on the international markets. ■ Nawa Mutumweno www.africanreview.com

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 21

Ethiopia

BUSINESS

Kano, in Nigeria, joins the Ethiopian network E

thiopian Airlines, amongst the fastest class service to Nigeria, long before any growing and most profitable airlines in other foreign airline. As a truly Africa, has added four weekly flights to indigenous Pan-African carrier, we Kano, Nigeria, to its portfolio of services. With consider our flights to Nigeria and the start of operations to Kano, Ethiopian will be elsewhere in our great continent as part offers 20 weekly flights to and from four cities in our responsibility to contribute to the Nigeria, availing seamless and convenient development of Africa and to serve as a connectivity options for the Nigerian travelling Ethiopian Airlines opens up new connections for Nigerian critically essential vehicle for the flow of travellers public to the Middle East, Europe, Asia and the investment, trade, tourism, and job Americas. In particular, passengers from northern Nigeria will be able creation. We thank the brotherly people and the Government of to enjoy best possible connections, with minimum layover in Addis Nigeria for their continued support to our operations and reaffirm our Ababa, to extensive Ethiopian network covering such destinations as commitment to continuously enhance our service for the benefit of the Jeddah, Dubai, Cairo, Khartoum, Beirut, Guangzhou, Hong Kong, Nigerian travelling public.”

Riyadh and Mumbai.

Kano is the airline’s 49th African and 81st international destination.

Ethiopian Airlines Group CEO Tewolde Gebremariam said, “Ethiopian Ethiopian is a global pan-African carrier currently serving five has an unwavering and proven commitment to the Nigerian travelling continents with over 200 daily flights, and using the latest technology public. For close to 55 years, we have been providing reliable and world aircraft such as the B777s and B787s. ■

www.africanreview.com

African Review of Business and Technology - June 2014

21

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 22

BUSINESS

Nigeria

Demystifying the ATM customer experience Examples of customer service at work through banking systems in a key West African economy, with reference to core business principles

T

he ATM in Nigeria has gone from a mysterious machine of very high distrust to a basic essential. Understandably, being at the perceived epicentre of online fraud and Internet scams made Nigerians weary of a machine which spits cash at the punch of just four digits. My personal take, though, is that are more advanced hacking centres outside of Nigeria. Itseems that parts of Eastern Europe and Asia top Nigeria by a country mile.

My wife and many others like her, who have vowed never to test the efficacy of the banks’ assurances on the safety and security of ATM systems against the ingenuity of fraudsters have become unwilling converts due to the higher risk of being unceremoniously shut out of modern day transactions. Regulatory pressures a-la the Cashless Nigeria initiative by the Central Bank of Nigeria (CBN) have played their part in combatting the conservatives.

Hefty penalties have now being instituted on cash transactions beyond a certain threshold.

Thankfully, she has broken ranks and acquired an ATM card just last year. The CBN has tried to allay the fears of Nigerians by enforcing on the banks additional security measures such as the installation of anti-skimming devices, and two camera systems on all ATMs. The rational being that a fraudster who covers both cameras with his hands to avoid detection will have no spare to conduct his nefarious activities.

‘Unable to dispense Cash’ messages, that the only ATMs that seemed to be working on the whole axis were the UBA ATMs at the Charlie Boy Bus stop. Of course, the queue had built up to the extent that faint-hearted customers opted to go without cash rather than risk the possible consequences of a stampede.

Similarly, on 14 December 2013 there were reports that virtually no ATM was working in the Badagry area. These experiences are exacerbated majorly by a number of factors.

Firstly, stagnation in the ATM population in spite of significant adoption rate by Nigerians.

The ATM population in Nigeria has been stuck at the 11,000 mark for the past six years, resulting in an average of 11.39 ATMs per 100k adult population (adult population in Nigeria being about 56 per cent or 95.2mn according to the World Bank). This is not unconnected to the CBN’s misadventure with the Independent ATM Deployers (IAD) experiment of 2008 that barred banks from deploying ATMs outside their branches. This resulted in the abrupt halt

Experiences of customer service The average customer experience of the ATM in Nigeria is still a tale of woes, mostly selfinflicted, and inadvertently by the same banks in whose major interest it should be to drive adoption to cut the relatively high cost of serving customers in-branch. Two glaring examples; it is reported that on the eve of Christmas last year, customers looking for ATMs to withdraw cash for their festivities in the Gbagada area found to their dismay after visiting many ATMs and being greeted with the now familiar ‘temporary out of service’ or

22

African Review of Business and Technology - June 2014

Austin Okere, Group CEO at CWG PLC & Entrepreneur in Residence at CBS

in the momentum of ATM deployment by Banks. This was largely due to the hasty conduct of the CBN in trying to swallow an elephant at one go. Noble as the intention was, a pilot scheme would have uncovered the soft underbelly of the strategy, the major shortcoming being the fact that the cash in the offsite ATMs would have been too expensive for the IADs to carry, and therefore compel them to charge customers very exorbitant rates or render them totally unprofitable at the flat rate of N100 per withdrawal, then allowed by the CBN. Six years later Nigeria has less than the 11,800 achieved at the highpoint, because many banks had to abandon the long term rents secured for their offsite ATMs and wheeled the ATMs into warehouses and parking lots because the IADs could not afford the book value to take on the sites and ATMs. The operational lives of those ATMs, about a third of the total volume were cut short, as they were subsequently unusable two years later when the CBN rescinded her decision.

Comparatively, with an adult population of about 90mn, Indonesia more than doubled its ATM installed base from 16.7k in 2011 to 36.5k in 2012, resulting in 37 ATMs per 100k adult population, about three time the ATM per adult capita in Nigeria. South Africa has 60 ATMs per 100k adult population, while the UK has 124 ATMs per 100k adult population.

Secondly, the quality of notes in the ATM are a far cry from standard. In the early days, the ATM was where to go if you wanted crisp notes. Today, the notes in the ATM are sometimes worse that the change you receive at the flea market. This is underscored by the fact that the security features and the general quality of the naira could do with some enhancements. Dirty notes generally cause paper dirt to be lodged in sensitive parts of the ATM when it is dispensing cash, therefore resulting in more frequent system faults or currency jams. A telling revelation when we compare the work rate of the ATM in Nigeria to www.africanreview.com

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 23

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 24

BUSINESS

Nigeria

say the UK is that the Nigerian ATM has to dispense on the average five notes to one in the UK, if it is dispensing N1,000 notes and the UK one is dispensing £20 notes (£20 is approximately N5,000). This coupled with the low ATM density and challenged note quality contributes a lot to the frequent breakdowns and ‘unable to dispense cash’ notices.

Thirdly, most ATMs in Nigeria are not under any guaranteed service level support programme. This is a serious anomaly by any stretch of the imagination. Banks inadvertently encourage this malaise. There is a notion that appraisal and compensation for ATM support heads in the E-banking departments seem to be heavily skewed on how much they can save in the ATM support costs. So they devise all means necessary to achieve this, even at the detriment of customer experience and the banks’ brand erosion. There is a blatant refusal to sign any Service Level Agreements (SLA) support for the ATMs in the first year of purchase under the illusion that warranty on the systems equates to SLA support. This results in fallacious claims of reduction in support costs.

This alluded cost efficiency cannot be further from the truth. Warranty and SLA support are quite different from each other as any owner of a car under warranty well knows.

While SLA defines the time within which an ATM should be fixed or replaced in the event of a fault (usually two hours within urban areas and six hours in remote areas), warranty relies on a best effort basis for the replacement of factory defective parts.

Parts that are rendered unusable due to wear and tear, or as a result of exogenous effects such as power surges cannot be claimed under warranty (as sometimes the bank officials are wont to ferociously argue).

For simplicity, warranty on ATMs is very similar to that on automobiles. If you drive your new car which carries a three year or 100,000km warranty to the dealer for a part replacement.

Firstly they check that it is not normal wear and tear, and that it is not due to abnormal circumstances such as the wrong type of fuel or an accident. Then they take in the car and order the part. They call you when the part arrives, which takes an average of three months, and then slap you with a labour bill.

This is the type of service that the Bank is hoodwinked to render to their hapless customers. It is worthy to note that warranty does not cover periodic maintenance of the machines. Imagine driving your warranty car for three years straight or 100,000km without any service or Oil change! Not opting even for the bare bones labour-only quarterly preventive maintenance service does drastically shorten the lifespan of the ATMs. It is therefore not surprising that some relatively

24

new ATMs needlessly break down and cause customers to spend eternity looking for a working one, or in an endless queue.

The average annual support spend on an ATM in Nigeria is US$2,500, about half of what obtains in Indonesia and South Africa, both spending about US$4,500 per ATM per annum.

By investing the right amount to keep their systems properly maintained, they prolong the lives of their ATMs and ensure better customer experiences, which we readily testify to when we visit those countries.

Thirdly, we know that most ATMs work with the Windows operating system. Many run on the Windows XP platform, which has recently been announced by Microsoft as desupported. This means that any ATM that is not upgraded to the windows 7 operating system shall be vulnerable to viruses and fraud attacks, since the new security patches shall not work on them. Worldwide, 2.2m ATMs are vulnerable. In Nigeria a significant number of the installed base shall be affected. The solution is a simple upgrade of the operating system if the ATM is upgradable. This is free if the bank has been paying their software maintenance fee. They will otherwise have to incur huge capital costs to repurchase the new software licenses. Available data suggests that many banks have not kept up with the software support fees. A further complication is that certain category of ATMs cannot be upgraded because of non USB Interfaces.

These have to be replaced, and will further deplete the already stretched ATM density.

Lastly, there are serious challenges in stable and consistent power supply, and network connectivity, both of which the ATM cannot operate without. There are also infrastructure challenges in access roads to ATMs in rural areas which cause support engineers to spend significantly more ‘travel time’ than ‘dwell time’ to fix machines. A possible solution will be for service providers to have enough support offices across the country than depend on engineers being dispatched only from the three commercial centers of Lagos, Port Harcourt and Abuja. Cross training support engineers on ATMs, inverters and network connectivity will ensure that the first engineer to arrive at the ATM can fix the fault and does not have to call another specialist. A monitoring system if installed by the provider would ensure that the ATM correctly diagnoses itself and advices on the correct spare part to be carried to site. A monitoring system will however, require client licenses on the ATMs for which maintenance fees are due to be paid, and which many banks shy away from.

Supporting all stakeholders Banks are by no means the only clog in the wheel of good ATM customer experience.

African Review of Business and Technology - June 2014

Some of the blame lie squarely on the shoulders of the service providers. In a bid to win business at all costs they are ready to accept terms that tempt them to cut corners in quality of products and service delivery. For example, there is a need to install monitoring systems and a call centre to aid support efficacy. There is also a need to ensure that the custodians are sufficiently trained to provide the crucial first level support. The negligence of these will make the support process expensive, unwieldy and ineffective. This drives the proverbial ‘race to the bottom’ for all stakeholders. A decimation in the number of service providers or their replacement by uncertified operators willing to collect the cutthroat rates offered by the banks will not bode any good tidings for the banks nor their customers.

Another emerging class in the clog of ATM availability is the gang of marauders who attempt to blow-up the ATMs to gain access to the cash in the safes.

For this group, banknote staining could be an effective prevention technique, in which the anticipated reward of the crime is removed by denying the benefits, by marking the cash stolen with special security ink. Of course the ink should be machine detectable to ensure that deposit machines reject stained notes.

Surprisingly, some customers are also culpable. Furiously banging the ATM when ‘it swallows your card’ or does not dispense the money on your transaction will not solve any problem.

If anything at all, it will only compound the problem by taking that ATM out of service. In the rare instance of this anomaly, the right thing to do is to call the number on the ATM body or visit the bank. There are usually journal entries and time stamps that will prove that you were not paid what you have been inadvertently debited, and a routine for redress and refund instituted.

While acknowledging the significant progress that we have recorded in payment systems, underpinned by the opportunity for the average Nigerian to be availed of having access to the global installed base of ATMs, courtesy of his local bank ATM card, and without recourse to a foreign bank account and ATM card, there is still the need to ensure that charity truly begins at home.

The above appraisal is not intended and should not be read as an exercise in ATM service indictments, but rather a discourse that will help in the appreciation, and management of the root cause of the below average ATM customer experience in Nigeria from which we are all groaning. ■ Austin Okere, Group CEO at CWG PLC & Entrepreneur in Residence at CBS www.africanreview.com

S05 ATR June 2014 Report - Business_Layout 1 5/15/2014 4:59 PM Page 25

Uganda

BUSINESS

Uganda's NW&SC builds sewers in Kampala U

ganda's National Water and Sewerage Corporation (NW&SC) says with support from Uganda and Germany governments, it has embarked on a program to expand the sewer network in greater Kampala and construction of sanitation facilities in informal settlements in a bid to improve the city’s sanitation infrastructure.

The state body noted, "This major intervention will not only result in protection of the quality of water in the inner Murchison bay of Lake Victoria and improvement in the lives of the people living in Kampala,but also for those whose properties are within the vicinity of the new sewer lines shall benefit in terms of a much cleaner environment and better hygiene standards for the users."

www.africanreview.com

NW&SC added, "There has been no major investment in sewage infrastructure for almost the last 30 years and sewage coverage in Kampala is currently as low as six per cent," pointing out that "Kampala city has experienced rapid population and industrial growth over the years and the sanitation infrastructure has not marched the growth resulting in indiscriminate disposal of excreta and faecal matters."

NW&SC has contracted Ms Sogea Satom/Dott Services to implement construction of sewers in Kampala. The project is expected to increase sewerage coverage in Kampala to about 15 per cent.

The contractor will be supervised by Lahmeyer, GKW Consult/PEC Consultants.

According to NW&SC, the project involves two components: firstly, a trunk mains from Wandegeya following the Nakivubo channel; secondly, a new sewer network starting from three places - Naguru, Kyambogo university and minister's village.

Both components eventually connect to a treatment plant at Bugolobi.

The project is described by NW&SC as "a great opportunity for Kampala to develop into a modern city with modern infrastructure" - and it has urged the Ugandan public to co-operate with the contractors as they undertake the surveying exercise. â– Geoffrey Muleme

African Review of Business and Technology - June 2014

25

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 26

ADVERTORIAL

Infosys

Strengthens Equity Bank T

he Equity Bank Group, together with Infosys and technology partners IBM, Oracle and Open Way, has successfully upgraded the group’s integrated and robust IT platform — Finacle — which will help strengthen its corporate lending offerings. The bank has enhanced its existing Finacle 7.x platform to Finacle 10.2.13, across its operations in Kenya and four foreign subsidiaries.

Background Equity Bank is a leading commercial bank in Kenya offering retail banking, microfinance and related services. The bank has subsidiaries in Kenya, Uganda, South Sudan, Rwanda and Tanzania.

Founded as Equity Building Society (EBS) in October 1984, the bank initially provided mortgage financing to lowincome customers. In 1993, Equity Bank was declared technically insolvent, but later came back strongly as a microfinance institution. Its subsequent transformation into a successful commercial bank is an inspirational story.

Today, Equity Bank has almost nine million customers, making it the largest bank in Africa by customer base. The bank is driven by its vision “to be the champion of the socio-economic prosperity of the people of Africa”.

As a successful commercial bank, Equity Bank was looking to build upon its reputation to extend its dominance in the Kenyan market. It wanted to grow its retail banking business across subsidiaries, attract new customers with customised products and strengthen the corporate lending offering. Its other goals included simplifying business functions and operations and creating a business model underpinned by access, convenience and flexibility.

The bank realised that it would have to modernise its existing core banking platform to fulfill these ambitious objectives.

26

James Mwangi, CEO and MD, Equity Bank with Venkataramana Gosavi, V-P and regional head – growth markets, Finacle, Infosys

When Equity Bank went live on Finacle Core Banking 10.2.13, the entire implementation had taken a mere 12 months

●

●

The transformation drivers To sustain its dominant position, the bank required a technology platform that would enable the following: ● Retail banking growth in all subsidiaries with reduced complexity across business functions and operations: The bank was looking at standardising and normalising operations across all the countries where it had a presence. The bank wanted to cut back on the need for maintaining multiple databases for multiple entities and implement a highly available architecture to cater to its future growth plans.

African Review of Business and Technology - June 2014

Upgrading the architectural backbone to 100 per cent services oriented architecture: The bank wanted to integrate multiple sub-systems seamlessly and reach the customer at the bottom of the pyramid using a variety of lighter channels, namely ATM, agency banking, e-Banking and mobile banking.

Strengthening the corporate banking offering: After having proven itself in the retail space, the bank foresaw a definite need to strengthen the corporate lending offering to help service corporate customers better and launch products suited to their needs.

Equity Bank tasked the internal IT team with finding a solution, which would help it accomplish its business objectives without increasing costs exponentially.

The team looked at the latest Finacle core banking release, which supported feature likes multi-entity on the technical side and functionalities like Islamic Banking on the business side. The Finacle platform’s other www.africanreview.com

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 27

Infosys ADVERTORIAL

features, such as 24*7 system availability even during end-of-day operations, came without raising the bank’s Total Cost of Ownership (TCO).

The challenge The project’s ambitious goal of implementing a multi-entity Finacle core banking solution integrated with multientity treasury and e-banking instances in a Big Bang rollout posed many challenges. There were multiple changes to the deployment architecture as it went along, minimising downtime being a big concern. Compounding these challenges was the risk of delay in the acquisition of the production equipment.

This was effectively managed with the help of specialist consultants from Infosys and by reworking the deployment architecture to provide the highest availability. Once the vendor delivered the server, additional Infosys resources were deployed to make it operational in the shortest time-frame possible. This was one of the most challenging and difficult aspects of the project, which involved precision and co-ordination between multiple vendors.

The Infosys and Equity Bank project teams devised a schedule whereby the various phases namely training, requirement gathering, solving, parameter definition, user acquaintance, development of new requirements, system integration testing, user acceptance testing, business simulations and go-live would be implemented at all five transforming entities simultaneously. The team implemented an ‘Active-Active’ application cluster on production and disaster recovery (DR) servers, both pointing to a real-time application cluster database on the production side, along with a fully operational central stand-in server for channel authorisation in case either the application or the database experienced downtime.

The Global Delivery Model (GDM) ensured the distribution of application and business process lifecycle activities and resources and this enabled parallel execution and a shorter implementation cycle.

Efficient and effective project management addressed the requirements and risks associated with every stage of the project lifecycle. There was clear www.africanreview.com

The bank can now roll out innovative offerings faster in response to market demands, explore new lines of business and deliver a superior banking experience to its customers

●

●

●

communication to and between various stakeholders. The quality of data migration was assured through multiple rounds of testing, and careful planning of migration and actual cutover.

When Equity Bank went live on Finacle Core Banking 10.2.13, the entire implementation had taken a mere 12 months!

●

●

A NEW Generation Equity Bank Equity Bank now boasts of a seamless platform that helps operational efficiency, supports business growth and enables it to adapt to the dynamic environment.

●

Customer benefits ● The enhanced solution now allows over 8.7mn Equity Bank customers to transact seamlessly across five countries — Kenya, Uganda, Rwanda, Tanzania and South Sudan. ● Transactions, such as cash deposit can be seamlessly carried out across all Equity Bank entities online and in real-time. ● A unified view of customers allows the bank to offer personalised products and services. ● Data clean-up during migration has improved data quality and helped the bank service customers faster. ● Biometric authentication of customers for transactions and users for login has reduced the possibility of look-alikes conducting transactional frauds. ● Auto delivery of password has reduced the risk of misuse by administrators.

Operations made easy ● Equity Bank’s multi-country operations now run on a single instance of Finacle, which is deployed centrally. ● Finacle’s multi-entity capabilities have enabled Equity Bank to centralise

operations to a single instance of applications, database and common infrastructure across countries, in a low cost operating model.

The platform’s localisation and extensibility features cater to local requirements and country-specific variations.

This helps the bank save on infrastructure and maintenance costs, while ensuring a 360 degree view of customer relationships.

There has been a 20 per cent reduction in the time spent by tellers for reconciliation and a two-hour increase in branch uptime, thanks to the system’s 24*7 functionality.

Bank staff can now send online referrals to supervisors/managers and have them approved online, thereby reducing the turnaround time for processing customer transactions and improving efficiency.

Seamless integration across multiple channels and third party systems facilitates productivity improvements across the bank. New accounts can be opened in less than five minutes.

By replacing two separate cheque scanning systems requiring manual intervention with a single online integrated system based on service oriented architecture, the new system has been able to achieve a 30 per cent increase in the productivity of the cheque scanning process.

Better banking ● As customers can now transact freely across countries, they add to the bank’s revenues by way of transaction fees. ● The bank can now roll out innovative offerings faster in response to market demands, explore new lines of business and deliver a superior banking experience to its customers. ● The total cost of ownership has come down because now only a single middleware, Finacle Integrator, is required to integrate the bank’s 20 subsystems. ● Leveraging the multi-entity framework of Finacle, the bank has successfully eliminated the need for multiple databases (five earlier) for multiple entities, and is now using a single database for all countries. ● Besides, data migration has resulted in a cleaner database that is lighter by 5TB. ■

African Review of Business and Technology - June 2014

27

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 28

FINANCE

Ghana

Staying ahead of the game Although it faces significant challenges, Ecobank Transnational remains the leading regional banking group in Africa

T

he quick expansion of pan-African banking group Ecobank Transnational saw the company’s profits grow by a staggering 65 per cent in 2013, a growth which prompted suspicion amongst rivals and resulted in the removal of CEO Thierry Tanoh in March this year.

But shortly prior to Tanoh’s dismissal — and amid calls for the group to reign in its breakneck expansion pace — Ecobank Transnational had already entered into partnerships with banking and telecoms giants, which will see its impact stretching even further into Africa.

In Ecobank Transnational’s most recently released financial report, the company revealed that profit earnings for the first nine months of 2013 totalled US$300mn.

The group is already the leading independent regional banking group in West and Central Africa, and has quickly crossed the borders from its home territory in Togo, to today maintain a presence in 32 countries throughout Africa.

Ecobank’s highly successful business model is centred largely around ‘staying ahead of the game’ by capitalising on the developing continent’s rapidly-emerging trends, including the transition to a cashless society and an increased dependency on mobile phones.

A deal struck with MasterCard in January 2014 as part of an MoU signed between the two bankers, marks MasterCard’s biggest ever multi-country licensing contract, allowing Ecobank Transnational customers in 28 sub-Saharan countries to access MasterCard’s electronic payment solutions. The agreement is the follow-up to the MoU originally signed in November 2011, and enables electronic payments access to more than 60 per cent of Africa’s population.

“The provision of convenient, reliable and accessible financial products and services forms the bedrock of Ecobank’s pan-African strategy,” says Patrick Akinwuntan, Ecobank Transnational’s executive director for domestic banking.

A vital driver of this ambitious strategy for growth is collaborations with global heavyweights such as MasterCard, which share similarly pan-expansionist philosophies to Ecobank Transnational.

“We recognise that partnership with leading global players is the key to accelerating the migration of our customers to a ‘cashless society’ throughout Africa,” Akinwuntan adds.

Significantly, the deal is MasterCard’s biggest ever multi-country project in Africa.

Although 85 per cent of financial transactions in Africa are still conducted in cash, companies such as MasterCard and Ecobank Transnational are literally banking on the exponential growth of technology to bring down this percentage. Surging mobile money payments on the continent have caused the two companies to sit up and take action.

In sub-Saharan Africa, about 16 per cent of adults used a mobile phone to pay bills and send or receive money in the past year.

According to Aaron Oliver, MasterCard’s head of emerging payments for the Middle East and Africa, there are approximately 42mn active mobile money users in the region, representing a remarkable 70 per cent of the global population of active users. The

28

African Review of Business and Technology - June 2014

In Ecobank Transnational’s most recently released financial report, the company revealed that profit earnings for the first nine months of 2013 totalled US$300mn

continent is home to around half of the world’s mobile money services. The popularity of the concept is best evidenced in the meteoric rise of M-Pesa, a mobile money service for Safaricom and Vodacom in Kenya, which has developed into the most advanced such system on earth. Over 19mn of Kenya’s 44mn people are M-Pesa subscribers.

In January, Mastercard announced it had partnered with mobile payment solutions company Oltio to deliver their mobile money partnership programme, which aims to get more than 2.5bn people globally to use their mobile phones for accessing mainstream financial services.

Ecobank Transnational had already launched Mobile Money services in 2012, and are continuing to strike partnerships with mobile communications companies in a bid to replicate the smash-hit success of M-Pesa.

In March, the company entered into a partnership with telecoms giants MTN, allowing MTN Mobile Money users who are also bank customers to transfer cash between their Mobile Money and bank accounts.

“This roll-out further demonstrates our commitment to make branchless banking a reality. Ecobank Transnational’s unique panAfrican footprint will enable us to be at the forefront of developing the market for cross-border mobile money services in Africa,” says Akinwuntan.

The service was initiated in Ghana and will soon be launched in Liberia, Uganda, Benin, Cote d’Ivoire, Zambia, Guinea Bissau, Guinea, Rwanda, DR Congo, South Sudan and Cameroon.

The success of M-Pesa and other mobile banking providers is based on a very simple fact- that only 10 per cent of Africa’s population own a bank account, but more than 60 per cent own a mobile phone.

The revolutionary M-Pesa has now found its way into Europe, after Vodafone decided to establish the service in Romania at the end of March 2014. ■ www.africanreview.com

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 29

MAN trucks for the construction industry. +LJK SD\ORDGV KLJK Ă H[LELOLW\ 3HUIHFW LQ HYHU\ GHWDLO 0$1 7*6 :: IRU 1RUWK :HVW &HQWUDO (DVW 6XE (TXDWRULDO $IULFD )RU PRUH ,QIRUPDWLRQ 6XE (TXDWRULDO $IULFD YLVLW ZZZ HQWU\ PDQ HX ]D )RU PRUH ,QIRUPDWLRQ 1RUWK :HVW &HQWUDO (DVW $IULFD YLVLW ZZZ PDQ QRUWKHUQDIULFD FRP

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 30

TECHNOLOGY

Retail

Online shoppers vouch on cross border buys E-commerce opportunities as African brands come up with strategies to attract customers

H

amburg-based secondary research organisation yStats.com in its new publication Global Cross-Border B2C E-commerce 2014 said that the interconnectedness of the world through the Internet is providing opportunities for online merchants, payment processors, and delivery companies to grow apace with the growth of cross border online shopping.

Cross-border B2C E-commerce in the Middle East and North Africa is growing by a high double-digit percentage number annually, aided by various services that assist shoppers in cross-border services. The USA accounted for a third of the crossborder B2C E-commerce made by online shoppers in the MENA region.

The worldwide leaders in B2C E-commerce exports are the USA, the UK, Germany, the Nordic nations, the Netherlands and France.

Together their online retail cross-border exports are forecasted to top US$137.6bn by 2020. Within these top countries, the most intensive cross-border B2C E-commerce trade flow is between the USA and the UK. The top six countries in online retail imports are the USA, the UK, Germany, Brazil, China and Australia. The largest importer of them all was China in 2013, followed by the USA. Put together, online shoppers from these markets are expected be purchasing several hundred billion dollars annually within a few years.

The leading cross-border E-commerce companies have varying strategies to reach consumers worldwide. Amazon and eBay offer shipment to most countries with some restriction on items available for global delivery.

Net-a-Porter, iHerb and Zooplus sell worldwide from central locations, while Asos and Book Depository offer free worldwide shipments on their products. Others such as Zalando and Glossybox sell only to markets where they have local operations. While strategies vary, across all Internet vendors, the leading product categories in B2C E-commerce are fashion, health and beauty products, and personal electronics.

Regional leaders in cross-border E-commerce Though the exact value estimates differ, the USA is undoubtedly one of the largest markets worldwide for cross-border B2C E-commerce, both in terms of exports and imports. The countries most purchased from by online shoppers in the USA are the UK and China. Online exports especially hit a peak each cyber weekend. In neighbouring Canada, a third of online shoppers purchase from US websites and some also purchase from Asian websites, motivated by cheaper prices and wider product selection.

30

African Review of Business and Technology - June 2014

Cross-border B2C E-commerce thrives in Europe, supported by initiatives of the lawmakers in creating a single online retail infrastructure and regulation

In the fast growing Latin American B2C E-commerce market, cross-border online shopping plays a significant role. In countries where domestic B2C E-commerce is underdeveloped such as Colombia, Paraguay and Venezuela the majority of online purchases are cross-border. In Brazil, the number of cross-border online shoppers is forecasted to reach almost ten millions by 2018, with expenditure growing annually by almost a half.

The number of online shoppers in Argentina purchasing from foreign websites doubled in 2013, however, the country's authorities placed regulatory restrictions on cross-border trade in January 2014.

Cross-border B2C E-commerce thrives in Europe, supported by initiatives of the lawmakers in creating a single online retail infrastructure and regulation. More than a quarter of online shoppers in the EU have made purchases from other EU countries, with this share being higher in the Euro area. The UK was the most popular destination for cross-border online shopping among European online shoppers purchasing abroad in 2013, followed by Germany and France.

Germany is the one of the most active countries worldwide both in import and export B2C E-commerce. Of the selected European countries, cross-border B2C E-commerce from Germany was the most popular in the Nordics and in France. On the other hand, the top destinations for cross-border online shoppers in Germany were the UK, the USA and China in 2013. In neighbouring Austria, over 70 per www.africanreview.com

S06 ATR June 2014 Report - Technology_Layout 1 5/15/2014 5:02 PM Page 31

Retail TECHNOLOGY cent of total online shoppers purchased outside their country in 2013, a percentage significantly higher than the EU average.

The UK is among the biggest cross-border B2C E-commerce exporters worldwide, supported by the popularity of British brands around the world and wide use of the English language. On the side of imports, only a small double-digit share of online shoppers in the UK buy from online retailers in other European countries, while the USA, China and Hong Kong are more popular destinations. In other Western European nations, cross-border online shopping from the UK, Germany and the USA is popular in France, while also a quarter of online stores in France shipped internationally, supported by international demand for French fashion and beauty brands. In Italy, tourism, fashion and food were the leading categories of B2C exports, while imports were dominated by discount flight purchases.

In Eastern Europe, cross-border online shopping is a growing trend in Russia. The cross-border B2C E-commerce sales of goods to Russia were estimated to more than double in 2013, while traffic to top international ecommerce websites by Russian users almost quadrupled. Over 10 per cent of online shoppers in Poland purchased from foreign online shops.

The value of international E-commerce transactions made in Turkey reached over US$137.6bn in 2013, growing by a third year-on-year.

Of selected Asian-Pacific countries, Singapore had the highest estimated share of cross-border B2C E-commerce in 2013, followed by Malaysia. Consumers worldwide make cross-border purchases from Japan, while also close to a fifth of online shoppers in Japan buy products online abroad. Buying directly from overseas online shops is a growing trend for online shoppers in South Korea. The largest segment of the cross-border B2C E-commerce in China is import, but exports are growing as legislation improves. Cross-border B2C E-commerce development in India is aided by the large number of English speakers and the interest of international companies.

GROWING NUMBERS The top six countries in online retail imports are the USA, the UK, Germany, Brazil, China and Australia Amazon and eBay offer shipment to most countries with some restriction on items available for global delivery The leading product categories in B2C E-commerce are fashion, health and beauty products, and personal electronics The USA is undoubtedly one of the largest markets worldwide for cross-border B2C E-commerce In Brazil, the number of cross-border online shoppers is forecasted to reach almost ten millions by 2018. â–

www.africanreview.com

African Review of Business and Technology - June 2014

31

S07 ATR June 2014 Report - Transport_Layout 1 5/15/2014 5:05 PM Page 32

TRANSPORT Technology

KVM’s smooth sail into sea IEC-60945 certifies Guntermann & Drunck for maritime navigation

F

or centuries, mariners have relied on paper maps to navigate the world’s oceans and waterways. Today, the computer technology used on bridges literally steers the ship. Along with computers, KVM technology enters ships across the world. As a pioneer of air, ground and maritime traffic, KVM products from Guntermann & Drunck meet the requirements of international standard IEC60945. The specification certifies navigation and radio communication equipment and systems for the use in maritime applications.

Guntermann & Drunck (G&D) used the knowledge and experience gathered from projects in air, ground and maritime traffic to get their KVM equipment certified according to IEC-60945. The specification qualifies certain navigation and radio communication equipment and systems for the use in maritime applications. With this, G&D provides its customer from the ship building and ship operating industry with resistant, secure and electromagnetically compatible KVM on board.

G&D products are now ready to be applied in engine rooms, technology rooms and even on ship bridges

Secure navigation and radio communication An independent testing laboratory issued the accreditation of the IEC-60945 specification to the German manufacturer. The IEC-60945 specification includes numerous tests regarding the environment (heat, cold, vibration), security and electromagnetic compatibility (EMC) and meets an international standard.

G&D carefully selected specific products for the certification. They are now ready to be applied in engine rooms, technology rooms and even on ship bridges. If you want to know more about the many certified products, you can contact G&D or one of their partners. Additionally and as a special offer to the ship building industry, G&D provides devices with power supplies of 12 or 24 Volt.

●

Applying KVM onshore and offshore Applying KVM optimises IT installations onand offshore. Various kinds of applications have proven their worth in the maritime industry:

KVM versus network — the difference lies in the detail With the help of KVM, sensitive computer technology can be removed from the operator’s area into specially secured

32

● ●

●

●

●

African Review of Business and Technology - June 2014

in maritime control rooms like the Vessel Traffic Services (VTS) in offshore control rooms to overcome distances from technical equipment rooms to bridges to control processes e.g. on dredging vessels in control room applications on sea freight containers as support against piracy

technology rooms. A KVM sender/receiving system establishes a connection between users and computers. Although the application sounds similar, there is a clear distinction between KVM technology and regular networks. In comparison to data networks, KVM devices establish a point-topoint connection. This connection runs without any networks, software and independently from the computer’s operating system. Additionally, applying KVM means no latency, real-time access, lossless transmission and free seating for employees working at different workstations.

Improved security Being certified according to IEC-60945 improves the security of G&D devices even further. A selection of G&D’s KVM switches is Tempest-certified as well. As high-quality security solutions, they comply with the quality and security standards for the use in public security and the military.

Although the certification took a long time, it once again strengthens G&D’s leading roles in industries where security, quality and reliability play an important role. ■ www.africanreview.com

S07 ATR June 2014 Report - Transport_Layout 1 5/15/2014 5:05 PM Page 33

Cranes TRANSPORT

Thinking out of the box Global crane company Konecranes has re-invented the rubber tired gantry (RTG) crane, while adding innovative technology for its automated stacking cranes

T

he Boxhunter is the outcome of an intense product development effort that has reinvented the RTG crane. The Boxhunter operating concept is based on advanced video and laser technology that Konecranes has developed for its top-of-the-line automated stacking cranes (ASCs). Video cameras located at strategic points around the crane and a sophisticated graphical user interface in the cab give the operator excellent visibility everywhere he needs it.

Boxhunter is built around the needs of container terminal operators who want the best, but do not need all the features or peak performance of the Konecranes’ top-of-the-range 16-wheel RTG. The Boxhunter maintains a steady level of performance, around 15+ container movements an hour.

Innovations at a glance The operator has been brought down to ground level. The cabin now sits on the truck lane, the heart of container handling action. The Boxhunter operating concept is unique — a complete rethinking of RTG operation and operator ergonomics.

“We are very pleased to announce the launch of the Boxhunter and are looking forward to offering this innovative crane to our customers in South and Sub-Saharan Africa”, says John MacDonald, service, sales and marketing director of Konecranes Southern Africa.

“We are confident that this outstanding container crane that is an excellent value for money that will meet the needs of our clients,” he adds.

experience, and this level of reliable performance, at such a competitive price. Boxhunter offers the same safety and quality as all other Konecranes products. ■

Boxhunter is the most modular and standard RTG ever, offered with a minimum of customisable options

Head-turning The new Boxhunter is built around the operator and the graphical user interface the operator works with. The main idea was to turn things on their head, literally, and bring the operator down to ground level. With the sophisticated video and laser technology that is currently available, it’s no longer essential to have the cab at the top of the crane. While bringing the cab down, the hoisting machinery was also relocated down to ground level. This simplifies the overall structure and brings a new ease of access to this machinery, which is great from the service perspective.

Boxhunter also has a new counterweight system that eliminates the weight of the spreader from every load lifted, thus saving energy.

The most standard RTG ever Boxhunter is the most modular and standard RTG ever, offered with a minimum of customisable options. It is delivered in containers, by regular container ship. As with all Konecranes container cranes, Boxhunter can be equipped with extra operator-aiding, safetyenhancing features such as DGPS Autosteering. TRUCONNECT®, Konecranes’ remote monitoring service, is also available.

Competitive and unique According to manufacturers, there is no other RTG on the market today that combines this level of innovation, this level of operator www.africanreview.com

African Review of Business and Technology - June 2014

33

S08 ATR June 2014 Report - Power 01_Layout 1 5/15/2014 5:08 PM Page 34

POWER

R&D

Achieving worldwide recognition Leading generator manufacturer achieves global certification

S

DMO Industries, which designs, manufactures and markets a range of generators from one to 3,000 kVA, has received accreditation from Le Comité français d’accréditation (Cofrac) for its laboratory, located in Brest, France.

Made up of a dozen engineers and technicians, the SDMO laboratory assists in the development of products in collaboration with the SDMO research departments and ensures their conformity to standards by means of multiple tests. In order to fulfil its mission, the laboratory relies upon specific infrastructure and effective tools – an area where prototypes can be assembled, control rooms, a noise-level area, etc.

The joint research and development (R&D) work within the company has resulted in the SDMO laboratory being accredited by Cofrac according to the NF EN ISO/IEC 17025 standard.

The ISO/IEC 17025 is an international standard which lays out the “general requirements concerning the competence of calibration and trial laboratories”.

Jean-Michel Geiller, manager of the

Jean-Michel Geiller

technical documentation, conformity and certification products department and quality manager at the laboratory, “Only three laboratories in the world have been

accredited by the Cofrac for these kind of trials; SDMO is one of them.

“Moreover, the lab is the only laboratory accredited to carry out trials on generators over 10 kW.” Specially, the accreditation proves the technical and management qualities of the SDMO laboratory and certifies the competence of the lab for specific trials.

Beyond the client-service provider relationship, the accreditation means the conformity of SDMO products with the requirements of other countries such as Russia, Ecuador, Kenya, Nigeria and Chile can be guaranteed thanks to, among others, mutual recognition agreements between the different accreditation bodies in the world (ILAC).

The certification also gives SDMO access to new markets and new development opportunities.

ISO 17025 accredited since 2009, the SDMO laboratory depends on validated trial procedures and the calibration of measuring apparatus by accredited bodies in order to respond to the needs expressed. ■

The SDMO laboratory has been accredited according to ISO/IEC 17025 standard

34

African Review of Business and Technology - June 2014

www.africanreview.com

S08 ATR June 2014 Report - Power 01_Layout 1 5/16/2014 2:12 PM Page 35

Power Generation

POWER

Powering Africa's telecom towers Africa's dynamic telecommunications industry comprises a mix of global, regional and local operators, tower companies and equipment manufacturers, all looking to maximise their profits in a market ripe with opportunities

W

ith new subscribers being signed up everyday in Africa’s diverse and rapidly-growing telecommunications sector, new cell towers are being erected throughout Africa in order to help operators meet increasing demands for bandwidth, paving the way for a host of generation specialists to provide solutions that ensure these towers – whether old and new – are continuously in operation, no matter how remote their locations.

One of the most prominent shifts within the market has seen network operators offload their communications towers to tower operating companies, enabling network operators to focus on their key task of managing their subscribers. By signing uptime agreements on specific towers, these network operators no longer have to worry about the problems that might occur on these towers. Whether it is a fault or theft, liability now often lies with tower operators who can be charged for damages by network operators if they default on their contracted obligations, removing many potential headaches for network operators.

It is a model that has already worked effectively in India where network operators pay a monthly fee to tower operators who own the majority of towers, which likely explains Airtel's willingness to help shift the model in Africa as it attempts to establish an African-based tower company owned by a number of tower companies in operation across the continent. The model also opens up a host of network opportunities and competition within local markets, with tower operators able to accommodate a number of network operators on just one tower.

The majority of companies working within this growing tower operator sector derive from outside of Africa bringing their experiences from their domestic markets to the continent. They include firms such as IHS Holding, who recently completed the

www.africanreview.com

Gensets for telecom towers in Africa range in capacity from 5 kVA to 50 kVA

acquisition of MTN's mobile network towers in Rwanda and Zambia, and new entrants such as Frontier Tower Solutions (FTS), who has been looking to target growing markets in Burundi and Central African Republic.

For many of these tower companies the fear of downtime is very real, resulting in power being vitally important to their operations. In order to keep their costs down, many of these tower companies have been considering the total cost of ownership of the generator sets they purchase to keep their towers in operation.

The generator size required for a telecom tower ranges from 5 kVA to 50 kVA, with size determined by factors such as radio load, tenancy ratio, technology (2G/3G) and airconditioning. With BTS technology becoming more sophisticated by the day, power requirements are being reduced, leading tower operators to require smaller generators for each tower.

Nakul Virat, low kVA leader – Africa for Cummins Power Generation, says, "Tower operators' margins are very small and a simple mistake can affect their business adversely.

Their genset warranty is generally parts-only,

causing potential delays for the end customer.

The fuel consumption of these power solutions is also quite high, which again adds to already high operating costs."

As a result, another key trend is the surge in uptake of hybrid gensets, with either battery or solar-battery components being integrated with a genset, thereby reducing the total cost of ownership for tower operators, as well as providing a cleaner option by reducing CO2 emissions. Uptake of such models has been especially prominent in countries without stable or reliable grids, as well as in remote areas, Virat notes.

"Setting up a tower up in a metropolitan area will obviously mean higher profits due higher usage rates, while the costs associated with operating a tower in a rural area could prove to be a bit more expensive due to the added travel involved in maintaining the structure," notes Virat.

In this area, Cummins is able to offer a host of power solutions dedicated to tower applications based on grid availability.

"Cummins has a state-of-the-art engineering department and labs that ensure that we keep lowering the total cost of ownership for the customer by designing and integrating all genset components together," Virat says.

One of the key benefits of Cummins' tower gensets is their warning alarm systems, while the company offers SLAs to customers based on country or regional requirements, ensuring the longest possible uptime for a tower.

"Sourcing generators from a single supplier like Cummins provides telecom operators a single contact for servicing their entire fleet of generators," Virat notes. "It also eliminates the need for training the operators and maintenance staff on multi-vendor products, while the uniformity in entire fleet increases uptime." ■

To find out more email nakul.virat@cummins.com

African Review of Business and Technology - June 2014

35

S08 ATR June 2014 Report - Power 01_Layout 1 5/15/2014 5:08 PM Page 36

POWER

Infrastructure

Ansaldo Energia‘s Tunisian projects Italy’s largest supplier, installer and service provider for power generation plants and components, at work on North African energy infrastructure

I

n recent years, Ansaldo Energia has increased its international sales efforts, particularly in the the Middle East and North Africa (MENA) region. Despite the political and social unrest that has recently swept through the area, it continues to promise high economic and population growth rates and, therefore, constantly rising demand for energy. With a population that will reach 12mn in 2020, Tunisia is one of the main countries in the area - and strong future growth is predicted here, too. After a temporary fall in GDP in 2011 caused by the “Arab spring”, today the International Monetary Institute forecasts average GDP growth of five per cent for the next five years.

Over the last five years energy demand growth, although stabilising in 2011, has been on a par with top-ranking emerging countries with huge development prospects.

Today, a significant proportion of electricity generation is from fossil fuels, mainly gas and oil. At the end of 2011, almost 90 per cent of the installed generating base used gas to produce electric power (source: Enerdata).

According to forecasts, conventional thermal sources (mainly gas) will continue to dominate electricity generation in the years to come, while the most popular technology,

36

without the shadow of a doubt, will be combined cycles (CCGT).

Plans around the Sousse power plant The Tunisian government, through the main local utility company Société Tunisienne d'Electricité et de Gaz (STEG), plans to increase its installed generating base by at least 1,200 MW in the period to 2016. Ansaldo Energia has been working in a joint venture with SNC Lavalin, having been awarded both the contract to build the Sousse power plant, named Sousse C, and the relative Long Term Service Agreement, by STEG in 2010. This contract confirmed that Tunisia is a strategic country for the Company as a result of major development projects under way in the energy sector and rapidly growing internal demand for power. The contract covered the turnkey supply of a combined cycle singleshaft plant rated 400MW. Ansaldo Energia supplied the AE94.3A4 gas turbine, the steam turbine, the generator, the auxiliaries, the plant control system, the heat recovery and the condenser.

SNC Lavalin, a leading plant engineer in the power production and distribution sector, handled the plant design, civil works planning, BOP supply and the relative erection work.

African Review of Business and Technology - June 2014

Ansaldo Energia also provided the supply of spare parts, erection and start up assistance, in addition to the long term service agreement.

Moreover, in 2013, Ansaldo Energia has awarded the second engineering, procurement and construction (EPC) contract, which involved the design and construction of a gas-fired combined cycle thermoelectric power plant rated 420 MW in Sousse and an long term service agreement (LTSA) covering maintenance and assistance services for a period of six years. The plant, called Sousse D, will be situated next to Sousse C, which the Ansaldo Energia/SNC-Lavalin Consortium is currently building in the Sidi Abdel-Hamid region (Sousse Governorate).

The plant will be equipped with an AE94.3 model gas-fired turbine that can also burn diesel oil as a backup fuel, an MT15C-SS steam turbine and the relative THR-L63 generator. These machines were designed and built entirely at Ansaldo Energia’s Genoa production facility.

The contract, which forms part of STEG’s ongoing energy production development plan in Tunisia, stipulates plant delivery in summer 2015, with a programme of work lasting 28 months from entry into force. ■ www.africanreview.com

S08 ATR June 2014 Report - Power 01_Layout 1 5/15/2014 5:08 PM Page 37

www.Cj.com.fr Le Mans

Algeria - Egypt - South Africa - Togo

108&3 40-65*0/4 5IF UBJMPS NBEF QPXFS THE PROACTIVE ENGINEERING FOR SPECIFIC APPLICATIONS REACTIVITY, CREATIVITY, ADAPTABILITY ‌ Dœs your need in energy impose the respect of precise and specific standards? The SDMO engineering department proposes you the Power Solutions offer: Your tailor-made project! Telecommunications, military installations, standby genset for hospitals, power plants for extreme conditions sites, ATEX zone‌ The most worldwide audacious installations realized by SDMO are the proof of a technologic experience, guarantee of your success.

Energy Solutions Provider www.sdmo.com w w w. s d m o . c o m Tel. +33 (0)2 98 41 41 41 - SDMO Industries - 12 bis rue de la Villeneuve CS 92 848 - 29 228 Brest Cedex 2 - France

S09 ATR June 2014 Report - Power 02_Layout 1 5/15/2014 5:09 PM Page 38

POWER

Infrastructure

Ghanaian consortium plans 360MW of power GE, Endeavor Energy and Finagestion work on an innovative project to boost Ghanaian power supply by 1,000 Megawatts by 2017

G

lobal infrastructure company General Electric (GE) is committed to a joint development agreement (JDA) with Endeavor Energy and Finagestion to develop and implement the Ghana 1000 Project.

When complete, this innovative integrated gas-to-power project will deliver more than 1,000 MW of electricity to Ghana’s national power grid. The JDA signing ceremony took place at the Ministry of Energy offices and was witnessed by Ghana Deputy Minister for Energy Hon. John Janakpor, John Rice, ViceChairman and President & CEO of GE Global Growth and Operations and senior officials from GE, Endeavor Energy and Finagestion.

The Ghana 1000 Project will be located in Western Ghana. It will combine the importation of liquefied natural gas (LNG), a dedicated Floating Storage and Regasification Unit (FRSU) to receive, store and regas, while associated infrastructure will transport natural gas on-shore to advanced GE turbines to generate efficient, clean power.

Private sources of power The Ghana 1000 Project Consortium is a purely private sector, independent power producer initiative with zero direct financial contribution from the Government of Ghana.

The Government’s role has to been to create an enabling environment and regulatory framework to allow the project partners to fast-track the addition of critically needed power to the national grid. The Government will also facilitate a long-term agreement with the Electricity Company of Ghana (ECG) and potentially other power offtakers of the purchase of power from the project. Ghana presently has installed generation capacity of 2,412 MW and dependable generation capacity of 2,125 MW. The first phase of the Project is expected to begin delivering power by early 2017, initially producing 360 MW in simple cycle mode.

38

When completed in early 2018, it will generate more than 540 MW in combined cycle mode. The second and final phase of the Project is expected to be implemented before 2019. The combined completion of all these phases will create one of the largest single Power Parks in sub-Saharan Africa generating in excess of 1,100 MW of power.

Speaking on behalf of the Ghana Government, Ghana Minister of Ghana, Hon John Janakfpor said, “We thank the Ghana 1000 partners for keeping their commitment to support government efforts to boost electricity generation and lower the cost of power in Ghana. The Ghana Government will facilitate and fast track all approvals and permits and provide adequate credit enhancement in a transparent manner.”

Jay Ireland, CEO & President of GE Africa said, “The first phase of the Project alone will require more than $20 million of development capital, over $200 million of equity from the project sponsors and more than $600 million in debt financing. GE Africa is extremely excited about the significant investment in material resources as well as exceptional project development, operational and maintenance expertise.” Mr. Ireland promised that the project will be developed and executed to international standards and that the plant, once operational, will run optimally. “There are strong indications that this initiative will make Ghana a reference point in the use of innovative technology for power generation,” he added.

International development partners An Integral part of the Project will be the importation of LNG to use as a dedicated fuel source for the Project. The Ghana 1000 consortium partners are currently exploring options with a number of international suppliers. They are also in discussions with a Ghanaian trading company to handle the

African Review of Business and Technology - June 2014

management and logistics of importing LNG for the project.

Endeavor Energy, an Africa-focused developer and operator of thermal and hydroelectric power projects will together with GE co-lead the development of the project. Endeavor Energy is a portfolio company of leading energy and resourcesfocused global private equity firm Denham Capital. “The Ghana 1000 Project will be unique as an LNG-to-power project completed in an emerging market and is important to Ghana because it will both add reliable, baseload generation as well as help to lower the cost of power in the country when compared to plants currently running off expensive light crude oil,” said Sean Long, CEO of Endeavor Energy. He also added, “Current LNG prices are approximately 35 percent less than light crude yet most thermal plants in Ghana run on it due to shortage of gas. In fact, recent reports indicate Ghana currently spends more than $1 million daily to purchase light crude oil for power generation, so the impact of this project on the country’s economy cannot be understated.”

Finagestion is an African utility sector operating group controlling several concessions in water & electricity sectors in Côte d'Ivoire & and Senegal. Finagestion is a portfolio company of Emerging Capital Partners (ECP), a pan-African private equity firm and will assume a key role as part owner and operator of the facility and be part of the Ghana 1000 Consortium. Also speaking, the Chairman of Finagestion and co-CEO of ECP Vincent Le Guennou said, “This is the first time such quantum of Power will be produced from a single location in Sub-Saharan Africa outside South Africa. The fact that we are putting 1,000MW on a single site will yield significant savings on account that the power generation units can leverage the same balance of plants parts and staff.” ■ www.africanreview.com

S09 ATR June 2014 Report - Power 02_Layout 1 5/15/2014 5:09 PM Page 39

S09 ATR June 2014 Report - Power 02_Layout 1 5/15/2014 5:09 PM Page 40

POWER

Renewables

Utilising hybrid power solutions The largest mobile phone provider in Togo has implemented a specialised power system for its cell sites throughout the country

T

ogocel recently deployed Delta’s hybrid power system for its cell sites across Togo and has reportedly already reduced its operational expenditure (OPEX) by 60 per cent.

The company needed to expand its cellular tower network beyond the cities and deploy base transceiver station (BTS) equipment in rural areas with no grid availability, or where the grid was unreliable.

The conventional way for telecom operators to deploy BTS equipment and provide the required off-grid power supply is to utilise diesel generator sets. The use of diesel-fuelled generator sets for powering base stations is however very costly and has several inherent challenges.

One of the largest issues is the diesel fuel required to run the generators. Not only is the fuel expensive, but it has to be stored onsite where fuel theft or potential flammability become risk factors. The maintenance of the generator is also very costly and requires frequent trips to the site for filter or oil changes, which in turn increases personnel and transportation costs. When diesel motors in the generator run continuously, the mechanical parts can wear out after only two years and the generator motors have to be replaced at a very high cost.

Togocel wanted to find a power management solution to reduce the use of diesel gensets and lower OPEX costs for its off-grid BTS sites.

Project realisation Togocel put the project out to tender and Delta’s sales partner won the contract with Delta’s hybrid power solution. The partner offered Togocel the Delta solution with financing, installation, commissioning and a maintenance contract.

The renewable hybrid power solution (hybrid meaning having two or more power sources – in this case a PV array, a diesel

40

The Delta solution utilises solar PV technology, a diesel genset and battery back-up (Image: Delta Group)

generator set and battery back-up) became a good choice for its off-grid BTS sites – capable of providing a secure source of power supply that is modular, requires low maintenance and available at affordable cost.

The solar array at the site provides enough power to run the telecom equipment and also recharge batteries during the daytime. At night, the batteries will power the site until the pre-set charge level is reached.

At this point, the diesel generator set will activate to provide power to the base station equipment and also recharge the batteries.

The generator set does not however always have to start on every cycle, it can depend on when the batteries are depleted, the amount of telephony traffic and temperature of the batteries, which varies according to the time of year.

The Delta hybrid power solution was specifically designed for remote and off-grid

African Review of Business and Technology - June 2014

BTS equipment, with remote supervision capabilities tailored to the customer’s requirements.

With a low capital expenditure (CAPEX) due to Delta’s cost-saving solution, combined with a fast return on investment (ROI), Togocel is able to lower the cost of ownership to a minimum.

By using a PV power source and highefficiency Delta power conversion equipment, Togocel now has a stable power supply which allows it to greatly reduce the use of the diesel generator sets and reduce fuel consumption by 50 per cent. Remote supervision capability provided by the system has also contributed to less onsite personnel and transportation costs.

Maintenance cost, noise and pollution from the diesel generator sets are greatly reduced and the carbon footprint of the sites is also smaller. ■ www.africanreview.com

S09 ATR June 2014 Report - Power 02_Layout 1 5/15/2014 5:09 PM Page 41

rolls-royce.com

energy out of the box

Pre-fabricated and modular the Bergen power plant design delivers the solution electricity power markets demand, a cost effective, flexible system with the highest levels of performance and reliability. Using preengineered packages, power plants from 2MW to 200MW and beyond can be configured for power generation or CHP (Combined Heat and Power) operation. Capable of running in isolated mode, or in parallel to the grid at times when electricity prices are high, Bergen generating plant can operate at low variable costs with minimal environmental effect.

For your next power station see what’s inside the box to generate affordable electricity outside the box.

Your powerful partner.

Bergen Engines AS A Rolls-Royce Power Systems Company

S09 ATR June 2014 Report - Power 02_Layout 1 5/15/2014 5:09 PM Page 42

POWER

Renewables

Setting solar sights on Africa The solution to the continent’s continuing quest for cheaper energy lies in renewable power

A

ll countries and continents face the challenge of finding cheaper energy. This means examining the current mix of their energy and finding the right path to incentivise low-carbon alternatives. In Africa, the challenge is two-fold: to reduce the reliance on coal and diesel and to improve electricity availability. Given these twin objectives, generating renewable electricity close to the point of use is really a no brainer. Solar is one of the best options for local generation and the technology is gaining traction in Africa. Prices have dropped dramatically over the last decade. In South Africa, for example, solar will be the cheapest generating technology by 2020 – R1.36 kWh compared to R1.69 kWh for coal, according to South African

Solarcentury started operating on a commercial scale in Africa a year ago (Image: Solarcentury)

Photovoltaic Industry Association (SAPVIA). As well as its proximity and affordability, solar also offers scalability. Solar is a versatile technology that can be installed on the ground or on warehouse roofs, office roofs and smaller residential roofs, covering significant installed generation capacities. And this is the same technology used to power your calculator. The availability of extensive unused roof spaces and ground space in Africa, combined with high levels of irradiance, makes solar a perfect renewable energy generation option.

Solarcentury is a British solar company, which has built some of the most iconic solar systems in Europe including a 5MWp system at Bentley Motors, the first ever ground mount system in the UK, and the installation on Blackfriars Bridge over the River Thames in London, creating the world’s largest solar bridge. For several years, Solarcentury has operated in Africa through its sister charity – SolarAid – which aims to eradicate the use of toxic kerosene lamps. SolarAid’s subsidiary, SunnyMoney, is now the biggest distributor of solar lights in Africa. In fact, in March, the organisation celebrated the sale of its one millionth solar lamp to people living in rural African communities.

That’s over six million people benefiting from safe, clean solar light.

A year ago, Solarcentury started operating at a commercial scale in Africa. To bring solar to Southern Africa, Solarcentury formed a joint venture with local developer Momentous Energy. To serve customers in Eastern Africa, it re-located Dr Dan Davies, one of Solarcentury’s founders. Solarcentury has staff on the ground in West Africa, too, developing a utility-scale solar installation. Since then, Solarcentury has built its first rooftop system in Johannesburg for Zenprop as well as a sizeable 574 kWp solar PV roof system on Waterfall Mall retail outlet in Rustenberg, for Growthpoint, the largest listed South African property company on the JSE. As well as cutting carbon emissions, the rooftop PV system will significantly reduce Waterfall Mall’s energy bills, important given that keeping the lights and air conditioning/heating on in retail spaces and ensuring customers have a comfortable shopping experience can be energy intensive. The Waterfall Mall installation will be capable of generating enough solar electricity to power the equivalent of 750 average-sized homes and offset 928 tonnes of carbon dioxide. It will also significantly cut Growthpoint’s electricity spend which is critical at a time of rocketing fossil fuel prices in South Africa. ■ Bertrand Belben, international business development director, Solarcentury

42

African Review of Business and Technology - June 2014

www.africanreview.com

S10 ATR June 2014 Report - Construction 01_Layout 1 5/15/2014 5:16 PM Page 43

S10 ATR June 2014 Report - Construction 01_Layout 1 5/15/2014 5:16 PM Page 44

CONSTRUCTION

Algeria

Five star gardens over an underground garage Le Méridien’s Oran Hotel & Convention Centre in Oran, Algeria

T

he Le Méridien Oran Hotel & Convention Centre in Oran on the Mediterranean coast in the north west of Algeria is a new and spectacular building complex consisting of a convention centre and a five star hotel with adjacent gardens and seafront promenade. Of a total green area of 12,000 sq m in the complex, approx. 4,500 sq m are above the underground garage. With ZinCo technology, it was possible to landscape this roof area to the same premium specification as those areas that are on firm ground - and seamlessly: with palm trees of up to eight metres in height on either side of a meandering pathway, blossoming plant beds and numerous water features and driveways.

New dimensions After a construction period of more than two years, the Le Méridien Oran Hotel was officially opened on 1 October 2011. The convention centre had already been completed and inaugurated in 2010. The dynamic city of Oran now has the largest convention centre in Algeria and one of the largest in Africa.

The architectural group, IAC Arquitectura designed the auditorium with a capacity to cater for up to 3,000 delegates, the adjacent 22,000 sq m exhibition centre and the 17storey luxury hotel with 296 rooms,

44

swimming pools, spa and fitness centres and a casino. The design is characterized by the intermingling of contemporary culture and the European heritage of the Le Méridien hotel chain. Due to the cliff-top location of the hotel, guests have a stunning view of the Mediterranean, the city of Oran and the gardens.

A ship from Spain Spanish expertise has found its way to Algeria in the form of OHL, a construction company active on the international stage that was appointed as contractors. OHL commissioned our experienced ZinCo partner in Spain, Jardinería Villanueva with the execution of the project. And so it came to pass, that in December 2009 a ship set sail from Valencia, laden with materials for gardens and green roofing, including substrate and plants, destined for use on a building site in Oran, a city 400 km away. This enabled Jardinería Villanueva to carry out the landscaping work on the gardens and the green roof steadily and without delay over the weeks that followed.

Expertise in construction technology In order to be able to install the planned impressive gardens over an area that is not on firm ground, the structural design and construction technology had to be absolutely

African Review of Business and Technology - June 2014

correct. The foundation was provided first of all by the right roof design for the 4,500 sq m underground garage roof. The structural reinforcement of the concrete roof means that it can carry weights of up to 1,000 kg sq m. This high load capacity allows for the installation of the desired intensive green roofing. The roof, sufficiently insulated and fitted with a root-resistant, bituminous waterproof barrier, has been equipped to deal with everything else.

Stone walls, directly incorporated into the design of the roof, separate the pathways and driveways from the planting areas and the water features.

The planted areas were created using the ZinCo green roofing system "Roof garden". At the heart of this system build-up is the drainage and water storage element, Floradrain® FD 60.

Green oasis The entire parkland resembles a green oasis with a curved swimming pool at its centre.

The 80 palm trees of the Phoenix dactylifera species give this green area its character. In addition, visitors will be enchanted by a further 220 trees, 2,000 bushes and shrubs and 38,000 perennials. A drought-resistant lawn of the species Cynodon dactylon, suited to the prevailing conditions, flourishes across an area of 10,000 sq m. ■ www.africanreview.com

S10 ATR June 2014 Report - Construction 01_Layout 1 5/15/2014 5:16 PM Page 45

Cameroon

CONSTRUCTION

Cameroon undergoes major restructuring Closing the infrastructure gap, particularly in transportation and power generation, is crucial for achieving the goals of Cameroon’s national development plan

T

he Growth and Employment Strategy Paper (GESP) for 2010– 2020 is geared towards supporting the implementation of major projects in sub-sectors where the country enjoys ‘competitive edge’, notably mining, energy and agriculture; key value chains (timber and tourism); improving access to finance for private businesses; enhance health and education through higher spending as well as boosting job creation and alleviate poverty.

The World Bank estimates that by upgrading basic infrastructure to the level of middle-income African countries could boost Cameroon’s per capita growth by 3.3 percentage points. Most of the potential growth would derive from the power sector (1.26 percentage points), by increasing its generation capacity and national access rates. Improving the condition of road corridors would revive much-needed intra-regional trade, boost output growth not only in Cameroon but also in landlocked Chad and Central African Rep. Efforts to tackle existing deficiencies in roads, ports, communications and water supply require heavy public capital spending – estimated at 6.5-7.0 per cent of gross domestic product (GDP) a year, according to the International Monetary Fund (IMF).

The government emphasises the importance of the provision of better infrastructure services to enhance both competitiveness and improve living standards. To achieve higher growth, priority projects are currently being implemented. These include a modern motorway between the two major cities (Yaounde and Douala), developing international airports and seaports, a railway between Edea and Mbalam and the construction of a gas fired plant at Kribi and hydro electrical dams at Mekin, Lom Pangar and Memve’ele as well as the extension of the fibre optic network and building 10,000 low-cost housing units.

Modernisation in progress There are opportunities for project financiers and engineering, procurement and construction (EPC) companies to partner with the State in the infrastructural development – model on public-private partnership (PPP). In July 2008, Cameroon adopted a law on PPP agreements, providing more clarity for the administrative, financial and judicial framework for such arrangements.

RAIL NETWORK: A new ‘National Railway Master Plan’ in partnership with a Korean company aims to connect several cities, major ports and border crossings with neighbouring states as well as to increase connectivity of the mining and agricultural production areas – thus boosting trade and exports. Several iron-mining projects in southeast Cameroon require a new railroad with its terminus at the deep-sea port at Kribi. The Ministry of Economy, Planning and Regional Development intend to double the present network (1,000 km) by 2025, with 1,670 additional km and by 2035, another 1,400 km should be built.

The grand scheme – costing an estimated €23bn (funding is

www.africanreview.com

Cameroon has 50,000 km of roads of which one-third are asphalted

currently being sought) and creating several thousands of jobs – has the potential to boost GDP by 4.7 per cent a year to 2040, according to official sources. Speeds on the new network is planned at 150-170 km/hour (h) for passenger trains and 70-90 km/h for freight trains. The following lines are scheduled for the first phase: Edea-Kribi (136 km); Mbalam-Kribi (603 km); and Ngaounde-Douala (907.5 km).

ROADS: Cameroon has 50,000 km of roads of which one-third are asphalted. The Ministry of Public Works (MINTP) intends to tarmac half the country’s roads within 15 years, 8,500 km of which by 2020. To achieve this, the MINTP has received about 168bn CFA francs from the national budget. Various public works are either underway or in progress for paving of roads, notably on the Djoum-Mintom-Congolese border (233 km), Fumban-Magba trunk (66 km), Ekok-Mamfe (73 km), and Garoua Boulaï-Ngaoundéré trunks. A new road under construction from Yaounde to Kribi will reduce congestion on the busy Yaounde to Douala route and reduce vehicle travel times. The bulk of road building work is undertaken by China First Highway Engineering Co. Ltd. PORT FACILITIES: Reflecting its strategic location on the Atlantic Ocean half-way between the north and south of the continent and as a crossing point to the Central African Economic and Monetary Community (CEMAC) countries, Cameroon remains a hub for trading with other Central and West African countries, with the historic port of Douala (built in 1881) as the main entrance. The latter accounts for 95 and 80-90 per cent, respectively, of Cameroon’s port activity and subregional external trade. But Douala port is now saturated – it can only handle ships less than 15,000 tonnes and draught of seven metres.

Therefore, bigger ships are unloaded off the mouth of the Wouri on small boats, which provide a shuttle service to Douala port.

In order to retain its regional hegemony, President Paul Biya in African Review of Business and Technology - June 2014

45

S10 ATR June 2014 Report - Construction 01_Layout 1 5/15/2014 5:16 PM Page 46

CONSTRUCTION

Cameroon

October 2011 inaugurated a project to build a deep-sea port near Kribi (designed as a substitute for Douala) and the port of Limbe is being entirely renovated. The government is seeking partners and sponsors to finance these projects in phases.

The new Kribi port upon completion will have a draught of 16 metres depth and capable of handling larger vessels with a maximum capacity of 100,000 tonnes. The first phase of the project (costing an estimated €370mn) – undertaken by China Harbour Engineering Co. – is due online later this year, which will ease the shipment of minerals notably iron ore, bauxite, cobalt and nickel. Private companies on Build-OperateTransfer (BOT) system will finance the second and third phases. Phase-two (expected online by 2018) entails the building of aluminium and hydrocarbons terminals along with a wharf for iron ore.

The deep-water Limbe port, 71 km from Douala will consist of a container terminal; an oil-bunkering terminal; an industrial terminal; and a coastal shipping facility. Expected traffic is 200,000 containers per year during the initial phase. Limbe will also serve Nigeria and other West African countries. Work is due to complete by 2018 – 50ha have already been reserved for this project (costing an estimated €650mn).

The ITC sector: The country is connected to the internet via two transatlantic cables: the West Africa Cable System (WACS), with a capacity of 5 Tb/s and the South Africa Transit Cable (SAT) with a capacity of 340 Gb/s. A third joint regional connection is being planned – the submarine Africa Coast to Europe (ACE) cable that will provide highspeed internet services to various African countries, including Cameroon.

The national fibre optics network during past three years has doubled to 3,200 km.

Cameroon Telecommunications has set a short-term target of laying another 4,000 km of fibre optic cables, which will result in a total installed capacity of 10,000 km. That should help boost internet, mobile and landline penetration rates to 40; 50; and 30 per cent, respectively, by 2015. According to Pyramid Research, the global telecoms research institute, the creation of an integrated 3G data services could attract more than 6mn new contracts in Cameroon by 2017, in a market still dominated by MTN (South Africa) and French-based Orange.

ENERGY: Cameroon is focusing on developing some of its prime hydropower sites, which would expand future domestic power capacity and allow Cameroon to fulfill its natural role as hydropower exporter to the Central African Power Pool (CAPP). Among

the giant projects currently underconstruction include hydro electrical dams at Mekin, Lom Pangar and Memve’ele.

Work on the Lom Pangar dam is due to finish in July 2014 and a new electricity plant is scheduled online by 2016. The dam in the eastern region (covering 540-km) will be 45 metres high, with a storage capacity of 6bn cubic metres of water. The US$500mn project – executed by China’s Sinohydro Corp; Ltd – could ultimately generate ‘colossal’ 3,000MW and will help sustain other projects along the Sanaga River, notably Mbengue and Nachtigal dams, which are projected to produce 900 and 280MW, respectively, of power in due course.

The Memve’ele dam on the river Ntem in southern region is due online in the secondhalf of 2015 – pumping about 201MW into the national grid. It would comprise of a dam, a mill, and a transformation station – costing an estimated US$850mn – and is being financed through BOT. The African Development Bank (AfDB) and Chinese Eximbank are partners in the mega project.

With an estimated hydropower potential of 55.2 gigawatts (GW), second only to Congo (DRC) – of which only 3.0 per cent has been harnessed – Cameroon can easily become a major regional electricity exporter and produce as much as 15,000 to 20,000MW over the next 30 years. The full impact of capital projects (underway) is assumed to take place after 2020. Resources to finance the projects are expected to derive from the budget, and a combination of domestic and external borrowing; 55 per cent of external commitments signed in 2011, were specifically for priority projects. The private sector is the country’s largest external financier of infrastructure, with private investment almost commensurate with public investment and significantly higher than official development assistance received from the member countries of the Organisation for Economic Co-operation and Development (OECD).

Overall, the national agenda should push economic growth to 6.0 per cent over the medium-term - driven by the construction industry, better energy supply and higher production in the food-processing and manufacturing industries, as well as increased hydrocarbons production. The completion of mega-projects will help transform Cameroon into a newly industrialised nation by 2035.

Central Africa’s largest economy is poised to take-off with the provision of key business inputs such as electricity and efficient transport network serving the subregion. ■ Moin Siddiqi, economist www.africanreview.com

S11 ATR June 2014 Report - Construction 02_Layout 1 5/15/2014 5:17 PM Page 47

S11 ATR June 2014 Report - Construction 02_Layout 1 5/15/2014 5:17 PM Page 48

CONSTRUCTION

Cement

Athi River Mining constructs cement plant in Kenya C

ement maker Athi River Mining (ARM) has announced it will construct a US$200mn cement plant in Kitui,

Kenya to meet growing demand for the product in the East African region.

Cement maker Athi River Mining (ARM) has

The new cement plant in Kitui, Kenya will have a producing capacity of 2.5mn tonnes

announced it will construct a US$200mn cement plant in Kitui, Kenya to meet growing demand for the product in the East African region.

According to ARM, the plant will have a producing capacity of 2.5mn tonnes per annum with construction commencing in early 2014 and it is expected to take two years to complete.

The firm is commissioning a new plant in Tanzania with a production capacity of 1.5mn in the limestone rich Tanga region.

The Tanga plant will allow the company access to the Mozambique market as well as other nations in the Southern Africa Development Community (SADC).

“We will pursue green field development of manufacturing plants with a strategy focusing on increasing cement capacity to five million tonnes per annum,” ARM’s deputy managing director Surendra Bhatia said.

The increased demand in cement is being driven by a thriving construction industry focused mainly in real estate, roads, railways and the fledging oil industry; while the demand for cement in East Africa is expected to grow at an annual rate of five to six per cent in the next few years.

The growth in cement demand over the years has been witnessed in Uganda, Rwanda and the recovering regions of East DRC and South Sudan. ■ Mwangi Mumero

48

African Review of Business and Technology - June 2014

www.africanreview.com

S11 ATR June 2014 Report - Construction 02_Layout 1 5/15/2014 5:17 PM Page 49

Bitumen

CONSTRUCTION

Bitumen from Bahrain for roads in Africa Good roads are a must for the economic development of Africa, but the supply of bitumen has previously been rather costly for logistics reasons

I

n February 2014 Bahrain saw the start of the first Bitumen Packing System on the Arabian Peninsula that operates on the principle of the novel Pörner Bitumen Cooling & Packing technology. Africa can be provided with high-grade road bitumen (straight run 60/70 PEN/PEN) from now on economically.

In 2011 MENA Energy headquartered in Dubai, in the United Arab Emirates (UAE) and the Pörner Group signed a contract for the construction of a Pörner Bitumen Packing System. This innovative technology provides an integrated solution for the storage, transport and distribution of cold bitumen.

The enterprise named BITUMENA runs the Packing Unit at the Bahrain Logistics Zone located at the new commercial Khalifa bin Salman Port. This location is a logistic hub for the North African, Indian

and Asian markets. BITUMENA's Packing Unit with an annual capacity of 150,000 mt began operation in February 2014.

For the first time there is prime quality bitumen (straight run 60/70 PEN/PEN) available directly from Bahrain. As BITUMENA is the only source of packaged non-Iranian bitumen, cold bitumen of highest quality is now available from the Arabian Gulf for the first time.

Through a piping system the bitumen is carried from tanks to four filling stations. The filling system, being the fifth supplied by Pörner by now, can provide in continuous service up to 480 mt bitumen in Pörner Bitumen Bags. Shape, size and filling weight of the bags are designed for an optimum efficient use. The bags can be easily stored, loaded into 20ft standard shipment containers and transported to any place in the world. ■

Waste Compaction at its best.

www.bomag.com

www.africanreview.com

African Review of Business and Technology - June 2014

49

S11 ATR June 2014 Report - Construction 02_Layout 1 5/15/2014 5:17 PM Page 50

TELEHANDLERS

Profile

Magni enables remote management Magni Telescopic Handlers presents its new “toy�: a new remote control, which makes possible to completely manage Magni machines standing outside the cabin or onto the men platform

T

he new remote control system is the result of a work of revision and upgrading of the standard remote control, which has been enhanced to reach better performances. The main idea behind this new remote control is to make it simple and intuitive for the operator, to make the control of the entire machine very easy and smooth.

The remote control has three different sets of controls, each one identified by a

50

different colour: pink for the stabilization system, blue for transmission, and yellow to control the basic hydraulic movements of the whole machine, included attachments options. The classification in three different sets is completely new, and introduces a new way in the management of the machine. The stabilization, presented in pink, can be done on all four outriggers at the same time, you can move each stabilizer one by one in case of tight spaces.

African Review of Business and Technology - June 2014

The drive mode, presented in blue, allows the operator to drive the machine directly from the remote control, or when cabled by the men platform. That can be possible by using a safety consent button that must be kept pressed to avoid the operator from moving the machine accidentally. There are two possible speeds (1 km/h or 5 km/h). The yellow section is the standard way to control the hydraulic movements of boom, turret and attachments. â–

www.africanreview.com

S11 ATR June 2014 Report - Construction 02_Layout 1 5/15/2014 5:17 PM Page 51

Profile

CONSTRUCTION

Bobcat launches new S450 skid-steer loader Bobcat has launched the new generation S450 skid-steer loader, building on the success of the S130 model it replaces

T

he compact S450 skid-steer loader can be supplied with a comprehensive choice of 48 different product families of approved attachments (with more to come), offering solutions for a very wide range of applications and providing a perfect illustration of the Bobcat Tool Carrier concept common to all Bobcat compact loaders.

Like the larger models, the S450 skid-steer loader offers significantly improved comfort and visibility to allow for greater control and accuracy in tight working spaces. In addition, for the first time in a skid-steer loader model in this size class, the S450 loader is supplied with a fully pressurised cab with airconditioning as an option. Other key features include increased hydraulic performance and efficiency; a new tailgate design; integrated rear bumper and enhanced serviceability.

Larger Cab and Improved Operator Comfort The new S450 cab is based on the design of the larger Bobcat loaders and has been cleverly designed to maintain the loader’s compact size whilst still providing the operator with better comfort and control.

The internal area of the cab has been increased by 10 per cent compared to the S130 model, resulting in more space around the operator. Moving the cab side windows to the outside of the cab has contributed to the increase in interior space and has also made them easier to clean. In addition, the threshold of the cab door has been lowered and the size of the cab door opening has been increased, making it easier for operators to enter and exit the cab.

Bobcat’s best-in-class cab pressurisation system is based on a one-piece seal that goes all the way around the door, increasing pressurisation to minimise the dirt and dust that might enter the cab. Heating performance has also been increased and the controls are fully illuminated so the temperature settings can be chosen in low light conditions.

www.africanreview.com

All-round visibility is increased by 30 per cent compared to the cab on the S130 model.

The five centimetres forward positioning of the cab offers the operator improved visibility of the working area. Forward visibility is further enhanced thanks to a 45 per cent larger door and a lower front cross member.

New front working lights contribute to improved forward visibility with a 50 per cent increase in output (total wattage).

The roof window is more than 40 per cent larger than that on the S130 model. The side and rear windows also offer more visibility and the lower side screen has been enlarged by more than 16 per cent to improve visibility to the tyres. The rear screen and cooling package have also been lowered. Together with a 14 per cent larger rear window, this new design significantly improves visibility to the rear of the machine.

adjustable fittings (45° or 90°). The number of hydraulic connections has also been reduced.

These changes improve overall efficiency and also eliminate routing variation as well as reducing potential rubbing and leak points.

The new tailgate has been designed with a shorter vertical height and stiffening pockets to provide optimal strength whilst maintaining a slimmer fit. This allows the use of a tailgate protector integrated into the machine’s mainframe.

The exhaust muffler is mounted directly to the engine, without a flex element to reduce noise and vibration. Refueling of the loader in a transport position is now also easier.

Both the oil cooler and radiator are now a combination unit that provides a cleaner cooling environment less likely to trap debris and to aid routine cleaning. The holes in the rear screen are also smaller to keep more debris out of the cooler. ■

Increased Hydraulic Performance and Efficiency Hydraulic performance has been increased with an increase in system pressure and changes to the hydraulic components and hose and tube line routings. These have been designed to allow the use of straight fittings instead of

African Review of Business and Technology - June 2014

51

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 52

MINING

WAMPEX

West Africa’s key mining and power players From 28-30 May in Accra, Ghana, WAMPEX once again represents the most dynamic enterprises and stakeholders in minerals extraction and energy provision; learn more at www.exhibitionsafrica.com/ems/wampex-2014.html

Glove solutions for industry Exhibiting for the first time at the West African Mining and Power Expo (WAMPEX) , Glove Solutions Africa plans to meet many new clients at the event. The company is the exclusive African distributor for the full range of ATG and MecDex protective gloves to industry.

“We have chosen WAMPEX as the ideal forum to showcase these essential products to the mining industry in central Africa,” said Neil Joubert, business development manager at Glove Solutions Africa (GSA). “We are looking forward to meeting potential distributors and new customers, and networking with other exhibitors.”

On-site hand injuries to employees are unfortunately still a frequent occurrence for many companies. The ATG range of protective gloves is well-known around the world for its innovative design and unique features. Glove Solutions Africa supplies a practical range of gloves offering optimum comfort, breathability, durability and protection.

“These products also help improve OHS compliance for a workforce; wearing gloves immediately reduces the risk and severity of hand injuries,” added Joubert. “The ATG range includes products to combat abrasions, cuts, punctures, chemicals, as well as cold and heat protection.”

said Outare Kokobissi, the area manager for KSB Pumps in Western Africa. “That’s why we come to WAMPEX; the high industry profile of visitors to the show, and most of these with mining as their main focus.”

KSB Pumps is based in Accra, and specialises in developing the West African market by providing sales, technical and commercial support for pump and valve customers. The company also offers services such as professional tender pre-qualification and negotiations, and technical and commercial order administration.

“Our Mill discharge pumps are performing exceptionally well at Bissa Gold in Burkina Faso,” added Kokobissi. “These are heavy duty slurry pumps used to feed the cyclone at the mine.”

The US$250mn Bissa Gold mine is about 100km north of Burkina Faso’s capital Ouagadougou.

KSB’s main aim This year’s WAMPEX sees long-time exhibitor KSB Pumps and Valves back at the expo for the seventh time!

“Our main objective this year is to get access to all the mining companies in West Africa,”

52

African Review of Business and Technology - June 2014

IQS launches high-tech pipe equipment

Q

uality management and inspection company IQS International is using the West African Mining and Power Expo to promote its revolutionary products into the West African mining and power markets.

“The products we feature are really quite new to the mining fraternity and we will be engaging with interested parties on a ‘oneon-one’ basis at WAMPEX,” said Ralph Klinkenberg, marketing manager at IQS. “WAMPEX is the best platform to engage with the business and mining community in West Africa, and I believe ‘one-on-one’ is the most effective way to showcase our offerings to the mining sector; we can actively highlight the many positive attributes of our products and ensure these are well understood.”

India’s power play Muskaan Power Infrastructure Limited, manufacturer of power and electrical equipment, will exhibit its wide range of power and electrical equipment, including a new range of LV breakers and isolators, at WAMPEX for the first time.

The company hopes to identify prospective customers, engineering, procurement and construction contractors and also set up joint ventures with agents in Ghana.

“We are looking forward to meeting the many industry visitors that attend this important exhibition and helping them with their requirements,” said Ravi Mahajan, director of Muskaan Power.

“We have a strong customer base across the whole of Africa, and we believe that WAMPEX is the ideal trade platform to reach new customers.”

Two new manufacturers at WAMPEX Gupta Power Infrastructure makes overhead conductors and cables, including HT-LT power cables up to 132 kV, instrumentation cables and mining cables. The company recently launched a range of household wire cabling, named Rhino wires and cables, which is flame retardant and heat resistant.

Kuvawala Core Drill Equipment makes diamond-tip drilling equipment, with a full range of in-hole drilling tools and accessories for both wireline and conventional drilling on show at WAMPEX. The products are used extensively in mineral exploration drilling, soil investigation and geotechnical drilling.

www.africanreview.com

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 53

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 54

MINING

Quarrying

Improved reliability with Cat’s 320D2 Caterpillar uses feedback from Arabic customers to improve reliability and operating costs for excavator operations affected by fuel quality

A

lexandre Favero, product application specialist HEX, Africa & Middle East, at Caterpillar, presented the development of the new 320D2 at a recent event hosted by ZahidTractor and Caterpillar, at Cat's Demonstration and Learning centre in Malaga in Spain. Caterpillar introduced the 320D2 recently, replacing the 320D, principally in response to requirements amongst customers in Saudi Arabia - where mechanical engines are preferred to electronic engines especially for 20 tonnes and below excavators, and fuel quality can be poor and variable. The 320D2's development impacts markets elsewhere in Africa and the Middle East (AME), as customers focus increasingly on fuel usage.

Reliable technology and less maintenance costs Cat was moved to install a mechanical engine for the 320D, to address concerns over use of 'dirty fuel', which means the machine is less sensitive to contaminants. In addition to be a simple and proven technology, mechanical engine allows a reduced number of fuel filters (only two on 320D2) and extension of the service intervals from 250 hours to 500 hours.

However, according to Favero, customer and dealer are the most knowledgeable persons to determine whether this interval can be extended or not. Last but not least, mechanical engines allow more repairs to be done in-house for 'do it myself' customers.

up the oil coming back from that hammer will help to reduce and eliminate damage to the machine. The 320D2 features this hammer return filter ex-factory or on a kit, offering a critical component to customers keen to extend the lifetime of their machines.

To meet the requirements of Arabic customers the 320D2 features a mechanical engine replacing the electronic engine used on the 320D

main pumps. Bear in mind that this machine is optimized to work at lower engine revolutions per minute which has an insignificant impact on productivity. Not only it brings lower fuel consumption but it contributes as well to longer engine components life.

Even more reliability Customers in Middle-East prefer to use a hammer return filter, because of issues with contaminated hydraulic oil. Some hammers brings a lot of contaminants into the hydraulic systems. So, having a filter to clean

Lower fuel consumption and maintained data tracking Mechanical engines’ usual tradeoffs are a lower efficiency vs. electronic engines and the loss of machine utilisation (idling/working) and fuel consumption data.

Let’s see what are the Cat answers.

Lower efficiency? Thank to a more efficient hydraulic system, machine power has been reduced. Result is a fuel consumption drop of three percent. The efficiency gain is coming from a small pilot gear pump and improved

54

African Review of Business and Technology - June 2014

More operator comfort As of June this year, all 320D2 will ship with a new monitor, whose resolution is 4x higher than on D-Series and whose size is 40 per cent bigger. In parallel, a new side switch panel will be added with a switch allowing to change easily between the available power modes for even more accurate machine power adjustement.

"This machine can be sold everywhere in Less Regulated Countries (LRC), but it is really going to impact Africa and Middle-East," said Favero. Built for these regions, field tested at sites where applications are severe like in Saudi Arabia or in countries where fuel quality is variable and working environments can be severe, it will be sold to address the business concerns of excavator customers operators in many AME markets. ■

Zahid's supports the future for contractors To help young Saudis, small businesses and micro-enterprises to find the finance needed to compete in the increasingly competitive Arabic construction market, Zahid has established a Future Contractors Program, featuring a range of products. It offers a simple and swift credit process, and initiatives to support and nurture young businesses and ambitious contractors.

For example, with the 320D2, Zahid offers financing at four per cent. Zahid has already had a great deal of success with this programme.

“The initiative is driven by two reasons,” said Khalid El Shurafa, marketing manager at Zahid Tractor.

“First of all, it's part of our corporate social responsibility (CSR), but more importantly,

Zahid's new Future Contractors Program seeks to support young Saudis, small businesses and micro-enterprises

because of the huge growth of the construction equipment industry in Saudi Arabia, a lot of young Saudis and small enterprises are trying to enter the construction business.” www.africanreview.com

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 55

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:25 PM Page 56

MINING

Quarrying

The SHEQ credo at Coedmore A

friSam’s Coedmore Quarry near Durban, in South Africa, has survived tough market conditions and intense competition by adhering to strict SHEQ (safety, health, environment and quality) principles. This strong credo has been instituted and instilled in all employees through a successive line of highly participative plant managers. The result is an operation that consistently achieves showcase status for its unblemished safety record and simultaneously manages to maintain high levels of quality product output.

Cladded screen towers which contain noise and dust.

Perhaps the biggest accolade in terms of health and safety is Coedmore Quarry’s performance on Aspasa’s Health and Safety and Environmental Audits. For the past five years Coedmore has received showplace status, an achievement that sets it apart as a quarrying operation and underlines AfriSam’s stated values of People, Planet and Performance.

“In its most basic form, this is a commitment to our stakeholders and ourselves not to accept mediocrity and to recognise that injury is not something that ‘happens to someone’ but rather it impacts a colleague or a friend who plays a valuable role in the company,” said Jurgens du Toit, AfriSam’s regional manager – construction materials South KZN and previous Coedmore Quarry works manager.

Du Toit points out that the Aspasa audits are critical to Coedmore’s safety programme. “The audits not only provide us with a checklist and yardstick with which we can measure our performance, but they focus on trends within the industry. Through the audit protocol and the knowledge sharing that transpires from it, we are able to determine any potential shortfalls and to rectify them immediately.”

The last Lost Time Injury (LTI) at Coedmore Quarry was recorded on 1 September 2008. Du

Toit says that AfriSam places emphasis on high levels of safety compliance and has implemented a number of programmes such as Competency Based Safety (CBS) to achieve organisation wide Occupational Health and Safety (OHS) awareness.

In keeping with continuous improvement and as a typical example of embracing change, in 2013 Coedmore Quarry completely rewrote its safety procedures with regards to working on the crest of drilling/blasting area. Specialised input was received from Southern Rock (indoor and outdoor rock climbing specialist), suppliers of ropes and harnesses used by AfriSam at the quarry and drilling contractors Eire Contractors.

The result of this collaborative effort between Coedmore, aforementioned vendors and the Department of Mineral Resources (DMR) is that a practical, user friendly system has been rolled out to all the AfriSam KZN operations. When drilling or blasting takes place, blue poles (supplied by Glassfibre Products) are sunk into the ground three metres away from the crest and a red (top) and blue (bottom) static climbing rope is strung between the poles to indicate the start of the no-go area. The drilling operators are then required to attach the harness they are wearing to a double rope system whenever they work closer than the poles to the crest.

Drilling operations taking place using the new approved safety barrier system.

Today, the Coedmore Quarry pit, with its highest face 110 metres (46 metres below sea level), is surrounded by a vast array of strategically planted and nurtured indigenous vegetation. This forms part of the Environmental Development Programme instituted at the quarry in 2002. ■ www.africanreview.com

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 57

S12 ATR June 2014 Report - Mining_Layout 1 5/15/2014 5:24 PM Page 58

MINING

Quarrying

Cat’s 374F delivers on operational efficiency Caterpillar’s new hydraulic excavator includes low fluid consumption for minimal operating costs, optimum operator comfort, easy serviceability, and class-leading productivity

T

he new Cat 374F hydraulic excavator build on the durability, reliability, and performance of the D-Series, and reflect Cat FSeries design criteria, which include low fluid consumption for minimal operating costs, optimum operator comfort, easy serviceability, and class-leading productivity.

With a net power rating of 352 kW, the Cat C15 ACERT engine meets E.U. Stage II/U.S. EPA Tier 2 emissions regulations. Compared with Stage IIIA engines, the 374F is more fuel efficient than its D predecessor, whilst delivering the same power. The 374F works at lower engine rpm. So, in addition to a five per cent reduced fuel consumption, it enables a longer engine components life.

Saving costs with new components Fuel-saving features include two power modes - standard or economy - to allow the operator to select an engine operating speed to match the application. In addition, an on-demand-power system adjusts engine speed to match the operating load, and an engine-idleshutdown system stops the engine after it idles at a pre-set interval.

These systems not only save fuel and reduce emissions, but also significantly extend service intervals.

The 374F hydraulic system is designed with major components in close proximity, an arrangement that allows shorter connecting tubes and hoses to reduce frictional losses and pressure reductions, resulting in reduced loading on the system for added fuel savings.

New for the F Series models is the Cat Adaptive Control System (ACS) valve, which electronically manages flows and restrictions to exactly match hydraulic response to joystick movement. This fuel-saving feature smoothes hydraulic functions and adds to overall hydraulic efficiency.

The new models can be equipped with auxiliary hydraulic circuits, allowing the use of powered work tools that can be easily attached with a hydraulically activated coupler. For further fuel savings, electrically controlled regeneration systems in the boom and stick circuits move oil between the cylinder ends to reduce the load on the main hydraulic pumps.

The 374F is available with a range of booms and sticks fabricated with premium-steel plate and using high-strength castings and forgings in high-stress areas. All are stress-relieved for durability and inspected ultrasonically for quality. Heavy-duty reach and general purpose booms are designed for general excavating and loading, and a mass-excavation boom delivers high production in large-scale earthmoving and heavy material applications. A choice of sticks is available to match booms for meeting required digging depths, reaches and breakout forces.

58

African Review of Business and Technology - June 2014

The new Cat 374F hydraulic excavator is more fuel efficient than its D predecessor

Tougher and more comfortable Structural durability is ensured by the proven heavy-duty construction of the mainframes and undercarriage. The upper frame incorporates special mountings to support the heavy-duty cab; the lower frame is heavily reinforced for long-term durability. A long-track, variablegauge undercarriage - featuring massive track roller frames and high-tensile-strength-steel components - provides a wide, stable working basis, while adjusting to reduce shipping width. A new counterweight removal device is available to allow easier and more efficient transport.

Increased glass area by 10 per cent in the F Series cab enhances visibility for the operator. Special sealing and insulation keep the operator’s environment clean, comfortable, and quiet with operator sound levels are reduced by a significant 3 dB(A). The new monitor offers a 40 per cent larger screen with higher (4x) resolution with more intuitive navigation. The monitor is programmable in 42 languages, and it presents detailed machine operating data as well as crisp images from the standard rearview camera. A climate control system includes air conditioning and filtered air ventilation, and seat options include air suspension, heated, and cooled versions.

Routine maintenance points like grease fittings, fuel and oil filters, and fluid taps are conveniently grouped and safely reached behind wide service hinged doors from wide, slip-resistant catwalks. In addition, a fuel-tank drain cock simplifies evacuating water and sediment to protect the fuel system. ■ www.africanreview.com

S13 ATR June 2014 Solutions 01_Layout 1 5/15/2014 5:29 PM Page 59

SOLUTIONS

Mining & Construction SDLG machines support Ghana’s development

A

s the West African country of Ghana continues its consistent GDP growth, substantial investment in industry and infrastructure has followed. One leading Ghanaian company, Justmoh Group, is using SDLG equipment to help the country achieve its growth ambitions.

Today, Justmoh Group is well-positioned to take advantage of the expansion in Ghana’s economy and is one of the most successful companies in the country in the fields of general construction, mining, dam building and quarrying. Supporting the company’s growth are the versatile and reliable SDLG-branded machines from Shandong Lingong Construction Machinery Co. Ltd., which Justmoh chooses for the wide array of projects it is involved with.

SDLG is one of China’s leading brands in the construction equipment industry.

“With so much development in Ghana happening so quickly, we had to increase our capacity and needed machines that not only performed well but were capable of tackling long working hours in tough conditions,” said Justice Amoh, CEO and founder of the Justmoh Group. “We have used other brands of machinery but have found that SDLG’s machines were more reliable and the company has a best-in-class level of after sales support, through its dealer SMT Ghana Ltd.” SMT Ghana is the authorised dealer of SDLG in Ghana, with its head office in Accra. The company has two additional branches in Tarkwa and Kumasi.

With a population of 25mn and a land mass covering 239,000km2, Ghana is rich in many natural resources, including gold and oil. As West Africa’s second largest economy, the World Bank upgraded it to a middle income country in 2010 and in 2011 it witnessed its highest increase in GDP with 14.4 per cent growth, following the start-up of oil production. In the last three years it has seen stable growth of GDP of over seven per cent per year.

On the road Justmoh has over 23 years of experience in road construction and is taking advantage of this surge in economic growth. Among the many projects the company is involved with are several road projects outside Takoradi – western Ghana’s largest city. Among the machines on these jobs are an SDLG LGS814L compactor, SDLG LGG8200 grader and an SDLG LG956L wheel loader.

Justmoh’s productivity with its SDLG equipment is perhaps best demonstrated through the working hours it has achieved with its LGG8200 grader. Having only been on site for four months, its power shift transmission and engine from Shanghai Diesel Engine Co. Ltd., have enabled it to clock up over 700 hours already.

“The SDLG LGG8200 gets the job done faster than any machine I have previously experienced,” said its operator, Michael Tugal. “The www.africanreview.com

SDLG’s LG956L wheel loader, at work in Ghana

machine has very good down force on the blade and rim pull. It is also comfortable to operate as is well balanced, with no tire spinning.”

Also crucial in road construction is the spreading of the materials to create a durable and smooth surface. This is the job of the SDLG LGS814L compactor. It is currently operating with a smooth drum but can be easily adjusted to accommodate a pad foot. With a vibrating force of 264 kN this gives enough power on the ground to simply and effectively compact an assortment of soil and rock fillings. The fully enclosed cab has clear visibility and air conditioning – vital in a country where average temperatures are over 30°C. Industry on the rise Industry output in Ghana grew 2.3 per cent in 2013, according to the Ghanaian statistical service, with close to a third of that growth coming from the mining and quarrying sector. This is another area where Justmoh has well–established operations and in its granite quarry in the coastal town of Sekondi, the company has been making good use of its 5 t capacity SDLG LG956L wheel loader.

The LG956L has a turning cylinder with breakout force of 17.5 t, and lifting cylinder with a force of 15.4 t, which is vital in supporting Justmoh’s activities at the quarry, where volumes can reach 500 t/hour. Its long shaft space also increases the machine’s stability with an overturning loading capability of 12.5 t. The LG956L is easy to control and has a single joystick for both boom and bucket.

“As we further boost our activities we need to increase capacity to remain competitive.” said Amoh. “We need reliable machines with maximum up-time to keep production running so we can keep loading our customers’ trucks. SDLG equipment has made an extremely positive impact and will definitely play a part in our progress and Ghana’s future development.”

African Review of Business and Technology - June 2014

59

S13 ATR June 2014 Solutions 01_Layout 1 5/15/2014 5:29 PM Page 60

SOLUTIONS

Generators Hatz 4H50TIC available as ready-to- install "Open Power Unit" In order to meet the strong customer demand for a ready-to-install plug & play solution of the new water-cooled 55 kW engine, Hatz offers the 4H50TIC now as an "Open Power Unit". In addition to the standard scope of delivery of the engine, all parts which are required for the operation of the engine are delivered with the 4H50TIC OPU. These include a radiator and intercooler mounted vibration-decoupled, as well as the appropriate tubing and wiring harness. All parts are installed in the factory during the production process. Thus, the customer only needs to connect tank, prefilter and pump as well as air filter, battery and control box.

During the development of the OPU, special attention has been paid to the fact that the OPU can be used with a wide range of applications.

Therefore, the OPU is already available in lot sizes of one piece. The main application areas of the 4H50TIC OPU are primarily working machines such as hydraulic lifts, hydraulic power units, forestry machinery, drilling rigs and stationary applications such as pumps and generators. The cooling is adapted to a temperature range of up to 46 ° C. Different radiators respectively other temperature ranges are possible depending on customer requirements.

The 4H50TIC as OPU meets the strict emission regulations of stage IIIB in the EU as well as EPA Tier 4 final in the USA. Both emission standards are being achieved without the use of a diesel particulate filter (DPF). The after treatment is merely limited to a DOC (diesel oxidation catalyst). Based on legal or customer requirements, for example in urban areas, the power

The new water cooled Hatz 4H50TIC is available as a ready-toinstall Open Power Unit (OPU)

unit, however, can be configured and supplied with a separable DPF. In addition to the flexible use, the 4H50TIC OPU is also characterized by the known attributes of the basic engine. The extremely light weight of the base engine is reflected, of course, in the weight of the complete package. With 255 kg the complete package weighs just 82 kg more than the base engine. In addition, the box dimensions with 699 mm in width, 935 mm in length and 807 mm in height allow flexible installation even in restricted installation space.

The 4H50TIC was first presented in 2013 at the Bauma in Munich and series production started in January 2014. The engine, which was developed according to a new ground-breaking downsizing approach is distinguished by its robust construction and functional simplicity. With its 2-valve technology in conjunction with a camshaft in block and maintenance free hydraulic lifters, the engine reaches low internal friction values&8203;&8203;.

In addition, a generously sized oil pan and filter allow a service interval of 500 hours. In particular, the engine sets new standards in its class in terms of power to weight ratio and fuel efficiency

Himoinsa’s new series of generator sets

H

imoinsa, a multinational company specializing in the manufacture of generator sets, has released the HHW series on the market: seven soundproofed, open generator models, with power output ranging between 20 and 100 kVA at 50Hz and between 30 and 120 kVa at 60Hz. The components, engine, alternator, canopy and controller of the generator sets integrating the new HHW series have been integrally manufactured by Himoinsa. The new generator models, powered by the Himoinsa 4HD engine, feature low noise emissions, optimal fuel economy and excellent throughput, productivity and reliability levels.

The generator sets comprising the HHW series are being marketed with three types

60

of canopy to choose from: B10, C10 and D10. The three canopies feature inner have been fitted out with an inner lining of mineral wool - an insulation material with excellent soundproofing and thermal qualities. The hood is coated with a soundabsorbing, flame-retardant, category M0 material, , the same material used in the canopies of all Himoinsa generator sets, making them some of the most effectively sound-proofed generators on the market.

Capable of bearing extreme weather conditions, these generators comply with IP23 protection grade requirements and have been water tested according to EU regulations (IEC60529) and UL standards.

The HHW series generator sets with B10, C10

African Review of Business and Technology - June 2014

and D10 canopies may be stacked and transported in containers in groups of 24, 11 and 8 units respectively.

Seven engine models have been developed (from 1500 to 1800 rpm) with a power output yielding between 20 and 95 KWm. The Himoinsa alternator has an automatic voltage regulator (AVR) which has been designed to exceed international standards, while its special resin coating means it can be used in any operating conditions. Its Busbar connection system let six of them be moved to configure all the voltage/frequency ratios required in international markets. www.himoinsa.com www.africanreview.com

S13 ATR June 2014 Solutions 01_Layout 1 5/15/2014 5:29 PM Page 61

S13 ATR June 2014 Solutions 01_Layout 1 5/15/2014 5:29 PM Page 62

SOLUTIONS

Industry Africa’s largest rotating electrical machine repairer After 56 years of extensive experience in the local and global market, Actom Group company Marthinusen & Coutts has earned its stripes as Africa’s largest medium voltage machine repairer. With four production workshops covering 32,000m2 in southern Africa, the company is conveniently located to provide its customers with a fast turnaround on all machine repairs and upgrades.

To ensure complete customer satisfaction, Marthinusen & Coutts has made substantial investments in equipment and services at its facilities in Cleveland, Benoni, Rustenburg and Kitwe, Zambia. The machine shops house shaft and bearing presses, horizontal and vertical boring mills, CNC lathes and machine centres, as well as micro welding equipment.

Marthinusen & Coutts is also solely licensed

62

Synchronous motor being tested at the Marthinusen & Coutts test facility in Johannesburg, South Africa

Balancing of a Kelvin turbine by Marthinusen & Coutts in its 32 t Schenk balancing machine

to apply InsulCore to cost effectively solve selected core problems. The InsulCore chemical treatment repairs electrical lamination steel by simultaneously etching inter-laminar shorts and forming a durable core plate, without having to dismantle the core. The company’s 32-ton Schenk

balancing machine is complemented by the company’s seven test facilities for full mechanical test loading of HV, LV and DC motors.

In addition to its well-equipped facilities, Marthinusen & Coutts regularly deploys its experienced team to sites across the

African Review of Business and Technology - June 2014

www.africanreview.com

S13 ATR June 2014 Solutions 01_Layout 1 5/15/2014 5:29 PM Page 63

SOLUTIONS

Industry continent. The comprehensive on-site capabilities have been used by a number of large blue chip mining and industrial companies to provide high level repairs, where logistics or urgent time frames discourage transportation of machines to and from the central workshops.

Capabilities include coil design and manufacturing from VPI class F and H, through DC and traction pole coils to equaliser coils. AC and DC fans are repaired or refurbished, tested and balanced to ensure conformance with stringent test parameters. Redesigning of existing motors extends their lifespan, and improves their efficiency and reliability.

Marthinusen & Coutts also undertakes repair and refurbishment work on specialised motors.

Notable projects include the repair and specialised assembly of scraper winch motors, combined with bearing modifications from imperial to metric, to ensure cost effective repair on older motors.

In addition, the company manufactures and repairs specialised 75A and 75D loco motors and 8E traction motors.

In the power generation market, the company undertakes both electrical and mechanical repairs, overhauls and complete refurbishments. General overhauls of any design or type of generator stator or rotor, including modifications, rewinding and onsite balancing are offered. Mechanical services include fault finding and root cause analysis, diaphragm refurbishment, re-blading and balancing of turbine rotors, as well as

metallurgical investigations and reporting.

Continuous customer improvement programmes include a full analysis of customer needs; audits and assessments; a systematic project plan; routine, predictive and preventative maintenance. By immersing itself in the operations of its clients, Marthinusen & Coutts is able to develop application-specific solutions that realistically improve returns on investment.

Marthinusen & Coutts regularly deploys its experienced team to sites across the continent and recently completed repairs to a 8250 kW AEI mine winder at Lumwana in Zambia

Balancing of a 24 t rotor for Kelvin Unit 11 Oerlikon (75 000 KVA 11,8 KV 3000 rpm) in Marthinusen & Coutts' state-of-the-art 32t Schenk balancing machine www.africanreview.com

African Review of Business and Technology - June 2014

63

S14 ATR June 2014 Solutions 02_Layout 1 5/16/2014 11:07 AM Page 64

SOLUTIONS

Construction & Mining

Nigeria’s very own Atlantis About 50 Volvo machines are being used to work on Eko Atlantic the biggest land reclamation project in the world

L

agos is the largest city in Africa and lies on the Gulf of Guinea coast. It’s the second fastest-growing city in Africa and the seventh in the world. The city is a metropolitan area that originated on islands separated by creeks and is protected from the Atlantic Ocean by long sand dunes such as Bar Beach, which stretches 62 miles (100km) both east and west.

In the cobalt blue waters of the Atlantic Ocean, just off the coast of Lagos, a new city is being constructed from the seabed, in what has become the biggest land reclamation project in the world.

The Eko Atlantic Project was launched in 2003 when the Nigerian government embarked on a solution to tackle the coastal erosion that was threatening the residents of Victoria Island – a suburb of Lagos. The answer was a sizeable barrier built to protect the coastline – a relatively simple project that turned into something much, much more ambitious. Developers decided to undo the damage the rising tides had caused and embarked on an extensive plan to reclaim four miles2 (10 km2) of land from the ocean.

When complete, Eko Atlantic (also known as Eko Atlantic City) will attract 400,000 residents and 250,000 daily commuters into an area roughly the size of Manhattan. The new city will become the financial center of Nigeria, which is appropriate as investment for the multibillion-dollar project is being provided solely by private investors.

Beside the seaside Four years into the project, 140 million tonnes of sand has been dredged from the sea to provide the foundations for the new city, while 700,000 tonnes of rock has been transported to help build the five-mile (eightkilometer) long wall to form a barrier to the sea. Despite the progress already made it will be several more years until enough sand has been reclaimed for the entire site and another generation before the project is fully complete. That said, the first buildings on the land that has already been reclaimed will start opening from next year.

Working conditions in Lagos have proved

64

difficult at times. The temperature can reach above 40oC and in the wet season, torrential rain can reduce all visibility. Salt sprays off the sea when the waves lash against the rocks and dust and sand in hot temperatures can also cause difficulties for operators.

Sturdy seaside machinery To ensure that the harsh conditions don’t affect progress, Eko Atlantic is using a fleet of 50 machines from Volvo Construction Equipment (Volvo CE), making it by far the biggest supplier of machines at the project.

There are different models of Volvo excavator digging trenches for drainage and sewage, haulers moving rocks and sand and motor graders maintaining the haul roads.

“The work can be tough,” says Monday Johnson, operator of a Volvo EC460BLC excavator. “But the Volvo machines can cope.

Inside the cab it’s cool and though the ground can be uneven, the machine is very well-balanced. I’ve never had a problem as this machine has worked day in and day out for the past two years and hasn’t failed.”

Johnson has worked for Eko Atlantic for two years and clocked more than 5,000 hours, helping to construct the granite protective barrier that locals have named

African Review of Business and Technology - June 2014

‘The Great Wall of Lagos’.

“The EC460BLC excavator works in a challenging area,” says George Tawk, the group plant manager at Eko Atlantic. “You have to deal with rocks, sand, salty water and salt filled air. All these things can damage the machine but with good support and a thorough maintenance schedule, the machine has managed the conditions well.

The EC460BLC is a fantastic machine – it’s smooth and agile and works quickly and efficiently. In Africa you need a customized, tropicalized engine that can handle the heat and the weather – and lucky for us Volvo offers these engines.”

The machines have been supplied by Volvo’s dealer in Nigeria, ATC-Nigeria, who is providing onsite support. “Believe me, you can use the best machine in the world in Africa, but if you don’t have support then it doesn’t matter,” adds Tawk. “You need a dealer and a company that stands by you when you need them and gets you the parts and the machines that you need – even in the most remote places. Volvo and ATCNigeria give us that.”

The reclamation project is providing work and housing for the locals and will benefit generations to come. ■ www.africanreview.com

S14 ATR June 2014 Solutions 02_Layout 1 5/16/2014 11:07 AM Page 65

SOLUTIONS

Grid CG power equipment to energise Nairobi Metropolitan Ring Avantha Group Company CG, a global pioneering leader in the management and application of electrical energy, has sealed a deal with Spain’s leading energy group, Iberdrola Ingenieria y Construccion S.A.U., which is supervising the Nairobi Metropolitan Ring Project, to supply highvoltage (HV) equipment for the underconstruction 220/66 kV substations around the Greater Nairobi Metropolitan Area. The order, worth US$15mn, involves the supply of six 200MVA, 220/66kV HV power transformers, circuit breakers, instrument transformers and lightning arresters. The project is scheduled for completion by the end of 2014.

The CG power equipment will be installed in the new 220 kV substations at Isinya, Suswa, Ngong, Athi River and Koma Rock.

The equipment will also feature in the existing Dandora substation, which is going through expansion. The Nairobi Ring project will help meet Kenya’s rising electricity demand, projected to grow at around 14 per cent per year, from 1,205 MW last year to 15,065 MW by the year 2030. The KSh4.9bn (US$56.2mn)

substation project is financed by Agence Francaise de Development (AFD) and the Government of Kenya.

CG bagged the prestigious deal due to its holistic solution-based approach that propels a project to completion within a demanding schedule. The order reinforces the existing strong relationship between CG and Iberdrola. Earlier in 2013, CG provided substation and automation equipment to Iberdrola in Spain, USA and the UK. At the world's first major Smart Grid deployment at the Iberdrola STAR Project, in Bilbao, Spain, over 227,000 CG smart meters are successfully monitoring the electricity services.

The Nairobi Metropolitan Ring project is the largest order CG has received from Iberdrola Engineering and Construction.

Iberdrola Engineering and Construction is the world’s fifth largest utility and the largest renewable energy company, with operations in Europe, Latin America and the United States. It was recently selected as the leading European utility by the Institutional Investor Research Group in its 2014 All-Europe Executive Team ranking.

6th October extension equipment Ansaldo Energia has been working in Egypt since 1983, building substations and hydraulic/conventional steam power stations. In June 2013, Ansaldo Energia was awarded Egypt’s 6th October Power Project Extension contract, valued at EUR 240mn (US$328mn), by the Cairo Electricity Production Company.

The 6th October Power Project Extension is located inside the fenced-off area around the High Voltage Lab, 25 km from Cairo. The plant is situated next to the existing one, which was completed according to a very short contract timetable in 2012, with warranty period expiring in July 2014.

This rapidity was one of the main factors in the customer’s decision to renew its confidence in our company. The new 6th October Power Project Extension will offer the possibility of completing the combined cycle plant in the future by adding the steam turbine generator and air condenser system. The 6th October Power Project Extension consists of the following main equipment: ● Four gas turbine generating units to deliver 600 MW at the generator terminals. ● Auxiliary equipment includes a natural gas reducing and handling facility and 220 KV GIS switchyard facilities.uel and solar oil as the secondary fuel. www.africanreview.com

S14 ATR June 2014 Solutions 02_Layout 1 5/16/2014 11:07 AM Page 66

EQUIPMENT/ CLASSIFIED

Innovative products drive new business opportunities at SAITEX If you are looking for creative new ideas, innovative products and unlimited opportunities to start, expand or improve your business, then you need to visit SAITEX! The Southern African International Trade Exhibition takes place annually in Midrand, Johannesburg, in South Africa - and this year was set for 2224 June.

SAITEX is renowned as the continent’s biggest and most effective business opportunities event. Its aim is to actively

promote new or expanding business opportunities for entrepreneurs, agents, distributors, importers, wholesalers and retailers. SAITEX connects business people and companies from all over the world and provides a networking platform and launch pad into Africa’s expanding markets. Last year at SAITEX, 980 companies from 42 countries displayed thousands of products in 3,000 categories to 16,800 visitors from 52 countries.

This year’s edition of SAITEX is expected

to see the exhibitor count break the 1,000 record, according to show organisers, Exhibition Management Services.

To celebrate the 21st birthday of SAITEX, the expo is offering complementary business workshops to visitors covering ‘Export/Import for Beginners’, ‘Set up Business Success’, ‘Selling to the Purchasing Department’ and ‘Product Promotion Techniques’. www.exhibitionsafrica.com

EMS - staging the continent’s leading trade events since 1984 South Africa-based Exhibition Management Services (EMS) is one of the longest established event organisers in the country and is the only events company on the continent with years of experience in delivering Pan African exhibition programmes.

With nearly 30 years of networking in Africa, EMS’s database is unique in the industry and enables the unrivalled identification, notification and participation of qualified international trade visitors to its events.

Subscription Form

Advertiser’s Index AKSA Jenerator Sanayi AS ............................................................................17 Al Yamuna Densons FZE ................................................................................11 AME Trade Ltd. (6th Zimbabwe Mining & Infrastructure Indaba 2014)......................57 Bank of Africa........................................................................................................2 Bell Equipment Company SA Pty Limited ..............................................56 Betonblock / Legobeton BV ........................................................................48 BOMAG ................................................................................................................49 Caterpillar SARL ................................................................................................47 Dangote Group ................................................................................................43 Doosan Infracore ................................................................................................9 Eko Hotel and Suites ......................................................................................61 Emirates ..............................................................................................................68 Ethiopian Airlines Enterprise ......................................................................67 First Bank of Nigeria Ltd ................................................................................23 Infosys Ltd. ..........................................................................................................26 JJ Black Consultancy Ltd................................................................................25 John Deere..........................................................................................................15 Kirloskar Brothers Ltd. ....................................................................................19 MAN Truck and Bus AG ..................................................................................29 Mantrac Egypt ..................................................................................................39 Marini S.p.A. - Fayat Group............................................................................50 Metalgalante S.p.A...........................................................................................21 Multotec Group ................................................................................................63 Pan Mixers South Africa (Pty) Ltd ..............................................................46 Rolls Royce ..........................................................................................................41 Rolman World ....................................................................................................62 SDLG - SWE ........................................................................................................13 SDMO Industries ..............................................................................................37 Sennebogen Maschinenfabrik GmbH......................................................55 Spedag Interfreight Ltd ................................................................................33 Talleres Nunez SA ............................................................................................65 Terex Equipment Ltd ......................................................................................53 Videotec S.p.a.....................................................................................................31 Volvo Construction Equipment AB ..............................................................5 Volvo Penta International ................................................................................7 YelloGen Ltd. ......................................................................................................42

66

African Review of Business and Technology - June 2014

I wish to subscribe to AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY for 1 year (11 issues) starting with the next copy.

Europe a 107, Kenya Ksh 2400, Nigeria N4400, South Africa R299, United Kingdom £73, USA $140 Enclosed is my cheque/draft ❑ Please send us the invoice ❑ Please debit my: Amex ❑ Visa ❑ Mastercard ❑ Card number:

oooooooooooooooo oo/oo ooo

Expiry date: Security Code: (Please note that we will debit your account in sterling).

Name ..............................................................................................Position..........................................................

Organisation ..........................................................................................................................................................

Telephone............................................................Fax ............................................................................................

Address..................................................................................................................................................................... .......................................................................................................................................................................................

Country .........................................................................Signed ............................................................................

Email:

................................................................................................Date .............................................................

Send this subscription form by airmail together with cheque payable to: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place London, SW1W 0EX, UK

Subscription order can also be placed via the web: www.alaincharles.com or email at circulation@alaincharles.com

YOUR JOB TITLE/FUNCTION 01 02 03 04 05

Corporate Management Government Municipal, Public Services Executives General Management Technical Management Others, Please specify ......................................................................

YOUR BUSINESS 01 02 03 04 05 06 07 08 10 16

Government/Public/Diplomatic Services Infrastructure Educational/Research Institutes Industry/Manufacturing Agricultural & Agro Industries Commercial Services Building/Construction/Mining Import/Export Agents, Distributors Commercial Transport Others, Please specify ............................................................................

www.africanreview.com

S14 ATR June 2014 Solutions 02_Layout 1 5/16/2014 11:07 AM Page 67

S14 ATR June 2014 Solutions 02_Layout 1 5/16/2014 11:07 AM Page 68