African Review November 2011

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November 2011

African Review of Business and Technology

P40

November 2011

The rationale supporting renewables industries

Volume 47 Number 9

P18

Money transfer : Abdirashid Duale, Somalia’s new financial guru

www.africanreview.com

Computing:

Construction:

Mining:

Virtual desktops for Ghana’s schools P21

Building prosperity P44

Zimbabwe’s mineral resurgence P57

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“Keep your love of nature, for that is the true way to understand art better.”

VINCENT VAN GOGH

E N J O Y C H A M P A G N E L A U R E N T- P E R R I E R R E S P O N S I B LY . l a u r e n t - p e r r i e r . c o m

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UP FRONT

Editor’s Note

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November 2011

P42

The rationale supporting renewables industries

A

frica is a continent that continually demonstrates the potential to lead on matters pertaining to global development, business affairs and industry. The financial landscape underpinning its role internationally appears stronger, if still in need of serious revision and governance, but with it is a strengthening of prospects for industry and research.

As ever, this issue of African Review of Business and Technology embraces entrepreneurship in enterprise, endeavours in science and technology, and resource extraction and utilisation, in construction and logistics. This month, you can read of information and communication technologies deployed in Somalia, of roadbuilding in Zambia and South Africa, of energy enterprises in Ghana, Mali, Tanzania and Uganda. There are conferences to learn about, and surveys to read up on - supporting the investment potentials in energy, and in the digital economy. And there are reports from constructors and miners on projects underground and along highways, not only making buildings but improving building environments.

And it is worth considering that, if sustainability is the goal for many, many are achieving this goal through endeavour, and many through partnerships, engaging with stakeholders. You are welcome to engage with such stakeholders here.

P18

Money transfer : Abdirashid Duale, Somalia’s new financial guru

Computing:

Construction:

Mining:

Virtual desktops for Ghana’s schools P21

Investment in Zambian housing P50

Zimbabwe’s mineral resurgence P59

Cover picture: Cement acts as a stabiliser for road projects in the South African province of Mpumalanga

Andrew Croft, Managing Editor

Contents

REGULARS 04 Agenda:

14 Bulletin:

Commercial innovations and initiatives

60 Solutions:

Developments amongst key enterprises

Solutions offered to African industry

P18 FEATURES 18 Business Money transfer in Somalia

24 Technology Virtual desktops for schools in Ghana; the promotion of mathematics and science in Senegal; technology to streamline accountancy practices; information and communications technologies for development and for social networking; and guidance on data management for small businesses

P56

30 Power Lightning protection systems; methane operations in Egypt; mining and power opportunities in West Africa; renewables and energy construction in South Africa; how Zambians use cellphones to pay for electricity; and a clean energy initiative in Ghana

44 Construction How an innovation in concrete can support economic development; planning for underground construction; and heavy vehicle use for highway construction Audit Bureau of Circulations Business Magazines

57 Mining

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Renewed investment prospects for mining operations in Zimbabwe

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Serving the world of business

African Review of Business and Technology - November 2011

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NEWS

Agenda / North e-Signature competence centre opens in Egypt An Egyptian e-Signature Competence Centre, the first of its kind across the Middle East and North Africa, is providing significant support and services to countries across the region looking to implement e-government initiatives and digital identity projects in a secure and safe way. At the launch of the facility Eng. Yasser ElKady, CEO, ITIDA said, "The centre will greatly help in creating and sustaining digital identity as well as implementing nation-scale projects that require the public key infrastructure (PKI). I am truly

proud of the centre, its certified workforce, the scope of projects it has carried out and the ones that we anticipate."

The Egyptian e-Signature Competence Centre provides comprehensive solutions and tailored programmes - in Arabic and English - that are key to implementing digital identity projects and services. The center pays a great deal of attention to knowledge transfer and training as a means of empowering prospect clients in the public or the private sectors.

Run by a highly skilled group of software

and information security engineers, the centre will strengthen its partnership with current and new clients by developing innovative software design solutions, rigorous data analysis and ongoing support and consultation.

Services that the Centre offers include implementation of e-government projects, IT network security services, business continuity services, and training workshops. www.esignature-egypt.com

Algerian grid gains substations Power and automation technology group ABB is building three new substations and upgrading four existing ones in the northern region of Algeria for Socièté Nationale de l'Electricité et du Gaz (Sonelgaz, the nation’s power utility. One of the new substations will power a solar panel factory that is being built close to the capital, Algiers, while the replacement of two power transformers at an existing substation will support the doubling of its power capacity. As part of the turnkey project, ABB is responsible for the design, engineering, supply, build-up and commissioning of the substations, including civil works. The project is expected to be completed in 2013.

“The new substations and the upgrades will significantly enhance distribution capacity and help meet growing industrial and residential demand for electricity in the country,” said Peter Leupp, head of ABB’s Power Systems division. "The technologies deployed will also help strengthen grid reliability and improve power stability in the region.”

Some of the main products to be supplied include power transformers, high- and medium-voltage air- and gas-insulated switchgear, instrument transformers, surge arresters as well as auxiliary and telecommunications systems.

Deutsche Welle offers TV services in Arabic

G

erman media company Deutsche Welle is broadcasting its new television channel for the Arab World - audiences from Morocco to Oman can tune in to a six-hour block in Arabic – always in primetime throughout the region.

DW-TV Arabia will continue to inform its viewers about the most important developments in Arab countries as well as the rest of the world.

English-language programming will complete the channel’s 24-hour line-up.

Up until now, the schedule alternated hourly between Arabic, or German with Arabic subtitles, and English.

The target audience for DW-TV Arabia comprises viewers in the Arab world who are interested in international and regionally-relevant issues and who expect reliable information about their own country.

“With DW-TV Arabia’s consolidated schedule, we are offering attractive programming in Arabic for our target audience between Morocco and the UAE,” says Deutsche Welle’s Director of Television, Christoph Lanz.

Deutsche Welle began broadcasting in Arabic in 2002 with a two-hour block, which has been continuously expanded over the years. DW-TV Arabia can be received via Nilesat and Arabsat/Badr 4 between Morocco and Oman as well German Foreign Minister Guido Westerwelle appears in a DW-TV Arabia talk show with the Egyptian author Alaa al-Aswany and several young bloggers as in Europe.

4

African Review of Business and Technology - November 2011

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NEWS

Agenda / East Zimbabwe community sees the light

A

small rural community south-east of Mutare in Eastern Zimbabwe has been benefiting from a mini-hydro-electric scheme supported and subsidised

by Schneider Electric South Africa and its specialist electricity prepayment subsidiary, Conlog.

The scheme, project managed by Practical Action (PA) a UK-based NGO with an office in Zimbabwe, is generating 24kVA from the hydro-driven turbine on the Wengezi river and providing power supplies to Chipendeke, which comprises a local school, clinic, two shops, a small maize grinding mill, some government houses and local private dwellings.

Conlog general manager, Jaap Grobler says the company donated 100 prepayment meters to PA and also provided the computer and electricity vending management system and software to ensure the effective management of the revenue.

“In addition, our technical specialists spent a week at the site, installing the system and providing training to the PA personnel and local community users.

Around 200 households, representing about 1,200 people, directly benefit The money collected from the prepayment system will be managed by the from household installations; approximately 1,800 indirectly benefit from the services offered by retail, maize grinding, schooling and other activities community forum and will be used to the benefit of the overall community.”

Investors subscribe to EA rail Citadel Capital has completed a US$70mn capital increase for platform company Africa Railways Ltd. This brings to more than US$319.3mn the total equity and debt raised by Citadel Capital and its platform companies since the beginning of the year. Four development finance institutions and a leading regionally focused private equity fund participated in the capital increase, including: IFC African, Latin American and Caribbean Fund, LP (ALAC,

US$20.2mn); Dutch development bank FMO (US$15mn); German development finance institution DEG (US$14mn); FISEA, a vehicle dedicated to investment in Sub-Saharan Africa owned by France’s Agence Française de Développement and managed by its subsidiary PROPARCO (US$10.7mn); and the International Finance Corporation (IFC, US$10.1mn).

Following the capital increase, Africa Railways, the Firm’s platform for investments in the

African rail transportation sector, has total paidin capital of US$110mn. Africa Railways will use the proceeds from the capital raising to fund Portfolio Company Rift Valley Railways (RVR), which has a 25-year concession to operate a century-old rail line with some 2,352 kilometres of track linking the Indian Ocean port of Mombasa in Kenya to the interiors of Kenya and Uganda, including the capital city of Kampala.

Investment in new Zambian economic zones Approximately, US$800mn has been spent to date on the construction of the Chambishi and Lusaka East Multi-Facility Economic Zones (MFEZs) in Zambia. The two MFEZs were established under the Zambia-China Economic and Trade Cooperation Zone (ZCCZ), the first overseas economic and trade cooperation zone established in Africa by the Chinese.

Confirming that, so far, $800mn has been invested in the construction of the Chambishi MFEZ on the Copperbelt and the Lusaka East MFEZ in the capital, ZCCZ president Tao Xinghu, the total committed investment in the MFEZs stands at about US$1bn.

Mr Tao, who is also China Non-ferrous Metal Mining Corporation (CNMC) vice president, said, “This is the measure put in place by

6

African Review of Business and Technology - November 2011

the Chinese government during the Forum on China-Africa Cooperation (FOCAC) to develop the economic zones in Africa and the committed investments have now reached $1 billion and have created 6,000 jobs.”

ZCCZ comprises Chambishi MFEZ which covers an area of 11.58 square km and Lusaka East MFEZ which covers 5.7 square km, according to the Master Plan. The Chambishi MFEZ bears an estimated investment of $900mn over a five-year period and is expected to attract about 50 to 60 enterprises. About 14 companies have set base in the facility, including Chambishi Copper Smelter, Sino Metals Limited and Sino Acid Limited.

Nawa Mutumweno

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LOW COST OF OPERATION IN POWER GENERATION The low cost of ownership with Volvo Penta diesel power comes from high efficiency engines that offer exceptional reliability for maximum uptime. Easy installation and worldwide support are also reasons why world leading generator set producers choose Volvo Penta.

As a part of the Volvo Group, Volvo Penta has extensive resources for continuous development of innovative generator set engines.

5-16 liter Power Generation range 75 – 640 kW 50 Hz 85 – 630 kVA 60 Hz 70 – 550 kWe Prime and Standby power for Stage 1, 2 and 3A.

www.volvopenta.com

S01 ATR Nov 2011 agenda_Layout 1 24/10/2011 17:55 Page 8

NEWS

Agenda / South Harbour entrance extended with diamond equipment The complex task of widening the entrance at the Simonstown Stillwater Harbour on South Africa's Western Cape has been undertaken using tools available exclusively through Diamond Products, a specialist in the manufacture, assembly and sale of diamond tools and equipment for industrial applications. Cape Town-based concrete cutting, coring and drilling company Concrete Worm was commissioned to undertake the unique project, which involves cutting away sections of large concrete walls known as caissons - in order to extend the entrance of the harbour by 11m.

Concrete Worm managing director Peter Fink explains that the harbour entrance requires widening in order to create more space to prevent lateral movement of a new fleet of larger South African Navy submarines, which are brought to berth by four tugboats.

“In order to widen the entrance of the harbour, the caissons must effectively be sliced into individual slices that are each 8m wide and 15m deep. This is a highlyspecialised job that has only been undertaken in South Africa once in the past.”

SA seeks investment and savings South Africa's strengthening recovery, with growth projected at 3.5 per cent for 2011, is placing the spotlight back on the critical long-term challenge of tackling high unemployment rates, which, in turn, requires faster, more inclusive growth. Raising the investment and savings rates is crucial to achieving these important national objectives. So says the World Bank in the economic report titled ‘South Africa Economic Update’.

Ruth Kagia, World Bank Country Director for South Africa, said, "We offer this first issue with a view to contributing to the national debate on a consequential topic and help shape informed policy decisions for sustainable economic recovery in South Africa."

8

African Review of Business and Technology - November 2011

Technologist selects new monitor service centre

P

hilips Monitors has recently appointed Computer Repairs Technologies (CRT), a company that specialises in the 'break/fix' sector of the IT industry, as its service centre for all warranty and out of warranty repairs on its monitors. This is providing Philips monitor customers with a specialist service centre that features a wealth of technical and IT experience, delivering a service level that matches the Philips brand.

Says Tyrone Young from Philips Monitors South Africa, "The move to appoint CRT as our service centre was a strategic one as the company's reputation, skills in the field of monitors and commitment to the highest service levels serves the Philips brand best.

The company has a national footprint which means that customers from Pretoria to Poffadder will have a branch that is within their provincial reach that will repair their monitor in the event of a fault."

A monitor is a crucial component of an organisation's ICT arsenal and renders a PC useless if not in working order, making the service centre a crucial component of the after sales service.

Says Rique Palma, Operations Director at CRT, "CRT is pleased to have been selected as Philips'monitor service partner. In this relative short period we have established a sound working relationship with Philips and conjunction with DCC, the sole distributor of Philips monitors in South Africa, have set up the required processes and procedures to enable us to provide best-in-class service to Philips and DCCs monitor customers. As CRT specialises predominately in monitor repairs, we have the required infrastructure to perform all operations relating to monitor repair activities.

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NEWS

Agenda / West Zone boosts Gabonese economy Opened by the President of the Gabonese Republic, His Excellency Ali Bongo Ondimba, in September 2011, the multi-sector Nkok Special Economic Zone (SEZ) is the largest of its kind in West and Central Africa. The 1126-hectare zone is the product of a partnership established in August 2010 between the Republic of Gabon and the Singaporean company Olam International Limited, the world’s leader in distribution and supply chain management of edible farm produce. Nkok’s SEZ will be used primarily by wood processing industries. The zone’s construction period of 13 months is the fastest in history. Phase one of the project has benefited from more than US$200mn investment and is expected to accumulate almost US$1.1bn of foreign investment per year – the equivalent of a quarter of Gabon’s annual budget.

Nkok’s SEZ supports Gabon’s aim to diversify its agricultural and industrial sectors and is in line with the ambitious sustainable development strategy for an emerging Gabon - Gabon Emergent - put in place by President Ali Ondimba after his election in August 2009, entailing a range of political and economic reforms to improve the business climate and attract a level of investment that could turn Gabon into a newly developed country by 2025, strengthening and diversifying the economy through industrial development, expansion of the services sector and green growth.

Insurance move to benefit Benin Benin recently became the first West African country to finalise its membership into the African Trade Insurance Agency (ATI) - Africa’s only multilateral investment and trade credit insurer.

Companies can now apply for ATI products to back deals in the country. His Excellency Dr. Thomas Yayi Boni, President of Benin and George Otieno, Chief Executive Officer of ATI signed the Treaty in September 2011.

“When African countries join ATI, they benefit in several ways. First, investors are more inclined to do business in a particular country when their assets can be protected against political and related risks. Second, African exporters and traders are able to compete globally when their payment risks are covered by insurance. And most importantly, ATI’s insurance can help secure financing for vital infrastructure needs,” noted ATI’s Chief Executive during the signing.

ATI has recorded enquiries from financial institutions interested in projects in Benin from France, Italy, Mauritius, South Africa and the United Kingdom. With a value of US$35mn these projects - in the energy, manufacturing, mining and telecommunications sectors - could substantially improve Benin’s infrastructural development.

Oando pledges profits to education in Nigeria Integrated energy group Oando PLC is committing 1.5 per cent of its pretax profits in 2011, and one per cent in subsequent years, to support basic education in West Africa.

The commitment entails increasing access to quality basic education for more than 60,000 children in 100 schools across West Africa by 2015. The company will achieve this by enhancing infrastructure to create conducive learning environments; providing educational resources and teaching aids for effective learning, and promoting technology driven empowerment programmes in public schools.

Commenting on the commitment, Oando Group Chief Executive Wale Tinubu said, “We are passionate about increasing access to education in our region because we believe that knowledge is the bedrock of world-class aspirations.”

10

African Review of Business and Technology - November 2011

New steel pipemill for production in Nigeria

S

ince 1976, Nigeria Gas and Steel Limited has been engaged in the production of light steel pipes (wall thickness 1 to 3mm) for the furniture industry, and metal fabricators. In May 2011, the company launched its newest production line catering for the manufacturing of heavy duty steel pipes (4 to 10mm wall thickness, and 5, 6, 8, and 10 inches diameter).

According to Mr Hasib Moukarim, the Managing Director of Nigeria Gas and Steel Limited, this new expansion represents a promotion to a higher class of industry for the company - which is directed to serve the construction and infrastructural industries in Nigeria and across West Africa.

The product has been subjected to impact and hydro tests by SGS, and promoters look forward to great demand from state and federal governments who are keen to spend on infrastructure such as pedestrian bridges, highway rails, bus stops, airport terminals, traffic lights and posts, etc.

This venture in manufacturing big diameter pipes is the first of its kind in Nigeria. Mr Moukarim hopes that steel pipes wil be used in the future for building warehouses in place of traditional beams and stanchions. The company has also installed a bending machine in its premises, to meet the requirements of contractors and architects who look for original and aesthetic shapes and designs for new constructional projects. nigeriagasproducts.com

Nigeria Gas and Steel Ltd manufactures steel pipes to serve construction and infrastructure projects in West Africa

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T This his is one beas beastt tthat hat w will ill li lighten ghten y your our bur burden. den.

The name Shantui has long been synonymous with bulldozers in China. W We e lead the market in just about every category of volume and share, and have for decades.

Today, , Shantui is the largest volume T oday o manufacturer of dozers in the world.

We W e offer a complete line of more than 20 dozer types and sizes, from swamp to desert, designed for all tasks, big or small. This includes the entire gamut of extensions for many

other practical uses. Our SD-520-5, at 520 horsepower horsepower,, is the largest bulldozer ever built in China.

Being the market leader in China is one thing. But Value ut being the V aalue Leader worldwide is our real source of pride. And we will not rest on either of these laurels. It’s It’’s the Shantui W Way. aayy.

VALUE SHANTUI V ALUE WORKS FOR YOU.

www.shantui.com www w..shantui.com

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NEWS

Events / 2011-2012 2011

December 2-5

Building Materials Exhibition Nairobi Kenya www.kenyabuilding.com 11-12

Emerging Markets Airports Suppliers Conference (EMASC)

www.offshorewestafrica.com

www.terrapinn.com

24-27

20-23

World of Concrete

Nigeria Oil & Gas (NOG)

Las Vegas, USA www.worldofconcrete.com

Abuja, Nigeria www.cwcnog.com

February 3-5

Africa Energy Indaba Johannesburg, South Africa www.energyindaba.co.za

World Money Fair

Dubai, UAE emergingairports.com

Berlin, Germany www.worldmoneyfair.ch

2012

6-9

January

21-23

Investment in African Mining Cape Town, South Africa www.miningindaba.com

26-29

Plastex Cairo Egypt www.plastex-online.com 28 Feb-1 Mar

CABSAT

15-19

7-8

World Future Energy Summit

Ghana Finance & Investment

Dubai, UAE www.cabsat.com

Abu Dhabi UAE www.worldfutureenergysummit.com

Accra, Ghana www.euromoneyconferences.com

28 Feb-2 Mar

24-26

20-23

Offshore West Africa Abuja

Enterprise Risk Management Africa

Nigeria

Johannesburg, South Africa

Finland as a development partner in Africa

T

he key to Finnish trade with African nations is to work within, but also to develop, EU-Africa legislation and regulatory principles. There is plenty of scope for partnership and for enhancing collaborative arrangements. One issue under consideration within Finnish political society is the European requirements for fresh produce exported by Africa to Europe, which is governed by the operation of the EurepGAP standards, which enable standardisation of and certification for common farm management practices. Such issues offer opportunities for lively debate, which can translate into real change in the real world.

Veera Heinonen, Director of Communications at Finland’s Ministry for Foreign Affairs, spoke to African journalists visiting Helsinki of the value that Finns place on debate – and the desire amongst the Finnish nation to translate

12

reasoned debate into genuine change abroad as much as at home. Finland is a development partner in Africa, working with African nations to improve economic and social structures, legislative frameworks, and political relations.

Engagement with African nations Finland engages with African nations at supranational, regional, national, and local levels. Supporting Ms Heinonen sentiments to the visiting delegation of African media was Heikki Tuunanen, Deputy Director General at the Ministry’s Department for Africa and the Middle East. Mr Tuunanen spoke of Finland’s major objectives and motives in its engagement with African nations. The Finnish nation’s objectives are political, humanitarian, and commercial. The origins of Finland’s approach to development, however, is also moral; it is a prime Finnish principle that there should be no poverty in the world.

African Review of Business and Technology - November 2011

Africa Roads Johannesburg, South Africa www.terrapinn.com

Energy Indaba set for Feb 2012 The Africa Energy Indaba takes place 21-23 February 2012 at the Sandton Convention Centre, Johannesburg, South Africa. The event brings together energy providers, engineers, financial service providers, economists, government representatives and media.

The Indaba is partnered with the South African National Energy Association (SANEA) and the World Energy Council (WEC). The WEC has member committees in nearly 100 countries, including most of the largest energy-producing and energy consuming countries, focusing on all types of energy including coal, oil, natural gas, nuclear, hydro, and renewables. The SANEA is the South African member committee of the WEC, and the largest energy industry association in Sub-Saharan Africa. www.energyindaba.co.za

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For ffree For ree fast-track ent entry ry to the Exhibition,, Indust Exhibition Industry ry Debates and Technical T eechni echnical Seminars TODAY! REGISTER ONLINE T ODAY Y! ww www.africaelectricity.com/ar3 w.africaelectricity..com/ar3

O Over ver 20 count countries ries represented represented - exhibito exhibitors rs include: Alda Compa Company ny

BHI C Co., o., Ltd

ERL Ma Marketing r keting Inte International rnational Jeddah Cables C Cables Compa Company ny Transformator SEM Transformator

BLF SSrl rl

rp/G&W B rands Cooper Co Corp/G&W Brands

Espex Batte Batteries B ries

Lapp Insula Insulato Insulators r s GmbH

Electronnics Pvt Ltd Shalaka Electronics

V Vatan atan Ka Kablo blo Metal End V Ve. e . Tic A.S A.S..

Partner Partner Events Events

Ghaddar M Machinery achiner y Mad Madem em SA

HAS CELIK A.S

P Paya aya Press

Teknic e Controls Teknic Controls

V Volta olta Gene o Generators rator s

ble Indust ries Cords Ca Cable Industries es Ltd

Valere Eltek Valere

Inte Interplast rplast Co Ltd

SAKR Holdingss

SDMO Industries Industries

Umbane Systems (Pty) Ltd Umbane

Zamil Zamil Steel

Supported Supported By

Organised By

Register to visit today

S02 ATR Nov 2011 events bulletin_Layout 1 24/10/2011 17:58 Page 14

NEWS

Bulletin / Communications Governments urged to leverage technologies for development

ranging from remote metering and

More effective use of information and

electrical vehicle recharging.

improved cyber-security to enhanced consumer data services and on-road

communication technologies (ICTs) by government programmes to support help accelerate job creation and business

Educational flash cards for smart devices

growth, according to the United Nations

Business analytics firm SAS has developed

Conference on Trade and Development

Flash Cards for Apple iPad and iPhone.

(UNCTAD) in the Information Economy

Users involved in education can choose

micro and small enterprises (MSEs) will

Report 2011: ICTs as an Enabler for Private Sector Development, which reveals that the ICT dimension is frequently absent from private sector development (PSD) strategies, and neither policymakers nor MSE owners in developing countries are

Constellation Networks has grown its innovative satellite broadband business on the SES fleet over the last eight years, connecting remote villages and businesses to the outside world and a brighter future.”

- Scott Sprague, Senior Vice President Global Sales, SES

harnessing these new possibilities to the

stewards and stewardesses usually have to

fullest; United Nations Secretary-General,

deal with; the lightweight iPad lets crews

Ban Ki-moon said, “Although some

quickly identify where each customer is

countries are already taking advantage of the close links between ICTs and PSD,

SAS Flash Cards

seated, who they are traveling with, their Executive Club status and any special meal

much more can be done to make ICTs a

from more than 3,000 flash cards or create

requests - when all the passengers have

powerful force for improving the

their own custom decks that can be

boarded and just before the doors are

competitiveness of their private sector.”

published for public download; "This is a unique educational app for Apple mobile device users," said Armistead Sapp, head of

Power delivery infrastructure technologies highlighted

the SAS Education Practice. "The flexibility

The second IEEE International Conference

learners from preschool up through the

on Smart Grid Communications

workforce learn concepts and memorise

(SmartGridComm), a global forum held in

information to help them succeed."

and build-your-own capabilities can help

October 2011 on the upgrade of power delivery infrastructures worldwide, highlighted technologies to support the

BA takes the tablet

two-way flow of energy and information,

British Airways (BA) cabin crew are trialling

quickly isolate and overcome power

the latest Apple iPad 2 model with 100

outages, facilitate the integration of

cabin crew, some on African routes, with

renewable energy sources and empower

the aim to roll it out to all senior crew

consumers to optimise energy

members across the airline in the coming

It is believed that BA is the first carrier to provide tablets to cabin crews.

consumption; developed by IEEE ComSoc

months - enabling cabin crew to have

shut, cabin crew are currently handed a

to provide an interdisciplinary approach

prior awareness of customer preferences

long scroll of paper, listing up to 337

for facilitating the production, delivery

and a greater understanding of each

customers, but with the new iPads cabin

and use of electricity globally, IEEE

customer’s previous travel arrangements,

crew will refresh their screen when the

SmartGridComm 2011 offered an in-depth

allowing them to offer a bespoke,

doors have closed through wireless 3G

exploration of enabling communications,

personalised service whilst doing away

networks and will have a complete list of

innovations and shared-field experiences

with the reams of paper print-outs that

passengers on board.

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African Review of Business and Technology - November 2011

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Arik Air

Beyond Expectations Arik Air is West Africa’s Premier ALUOLQH :LWK D PRGHUQ à HHW RI 23 aircraft offering the latest in comfort, style and service, we connect you with a growing network across 28 destinations in Nigeria, West Africa and internationally.

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NEWS

Bulletin / Satellite Nigerian satellite demonstrates high resolution capability

SatLink handles engineering and operations for AMOS-5

Engineers from the Nigerian space agency (NASRDA) and satellite

SatLink Communications Ltd., a teleport delivering content

manufacturer Surrey Satellite Technology Ltd (SSTL) continue the

globally, has been appointed by Spacecom, operator of the AMOS satellite fleet, as the prime provider of satellite engineering services including TT&C (Telemetry Tracking & Commanding) and IOT (In Orbit Testing), among others, for the AMOS-5 satellite; from the 17°E orbital position, AMOS-5 will deliver high-power Cband and Ku-band capacity to the entire African continent with connectivity to Europe and the Middle East.

Communications for emergency response in the Niger Delta This 2.5m resolution pan-sharpened example from NigeriaSat-2 shows the airport at Salt Lake City, USA, with the terminal buildings, runway layout and surrounding roads all clearly visible

Afcom Satellite Network (Afcomsat), a provider of high quality VSAT services to businesses, governments and individuals, has

commissioning of the new NigeriaSat-2 satellite from NASRDA’s

been deploying dual mode satellite and TETRA systems in a fleet

headquarters in Abuja; high resolution satellite imagery released

of emergency response vehicles (ERVs) in the Niger-Delta region

from NigeriaSat-2, ongoing calibration of the imaging payloads,

of Nigeria; equipped with the latest VSAT technology and

follows completion of systems testing .

integrated into Motorola’s TETRA Mobile System, the Afcomsat system is deployed for a major multinational oil company and provides full IP connectivity to the company’s network.

Improving oil & gas wireless sensors Paradox Engineering (www.pdxeng.ch) and Harris CapRock

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Communications (www.caprock.com) have joined forces to serve the telemetry market in the oil & gas industry; Paradox Engineering’s PE. WSNi technology has been integrated into Harris CapRock’s TConnect solution - which is based on Harris CapRock’s VSAT satellite technology - to provide an end-to-end flexible communication platform offering high performance, extreme efficiency in data transfers, ease of installation and maintenance.

Advancing real-world systems IEEE GLOBECOM 2011, an international conference on communications technologies worldwide, will be held 5-9 December in Houston, in the USA, with 1,500 presentations committed to the advance of real-world telecommunications, engineering methods and IT business systems; the conference will feature over 1,000 papers covering wireless network performance, femtocells, game theory & congestion control, MTU - Cummins - Perkins - Volvo - Deutz powered

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African Review of Business and Technology - November 2011

cooperative spectrum sensing, mobile networks, intrusion detection, wireless security, satellite & space communications, vehicle & mobile ad hoc networks, and energy efficiency in computing, multimedia communications technologies and powerline communications, and smart grid.

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NEWS

Bulletin / TV MultiChoice and Pace bring new options for digital transmission Pace plc is working with MultiChoice Africa to support MultiChoice’s launch of its GOtv offering, which is bringing digital TV services to terrestrial subscribers in Sub-Saharan Africa via Pace’s next generation set-top boxes, capable of receiving DVB-T2 standard transmissions; the new set-top box is the first to deliver the latest digital terrestrial television into Sub-Saharan African homes, increasing consumers’ service reliability and content choice, and making digital TV a mass-market reality for the first time.

Zambian operator adds video services In Zambia, mobile communications provider ZAMTEL’s launched its third generation (3G) technology, which is boosting Internet connectivity among its customers, is also supporting mobile TV, video-on-demand, video conferencing, telemedicine and locationbased services; “This means that ZAMTEL mobile customers will have higher data speed and enjoy multimedia services such as Skype calls and video chats using MSN,” said the telecom firm’s chief commercial officer, Amon Jere.

(Nawa Mutumweno)

Broadcasters and TV producers experiment with mobile devices Strategies for branded connected TV and devices was a central focus of the IBC Conference programme, held recently in The Netherlands; the arrival of tablets, with larger screens and in-home Wi-Fi connectivity, is predicted to make two-screen interaction, particularly around the large reality show formats, soar.

Smarter strategy for a smarter African lifestyle Samsung Electronics has been pursuing market share through innovations in Internet-connected TVs, consumer-inspired digital cameras and the mobile technology, combined with plans for developing Samsung’s regional market presence, in the context of Samsung’s unifying principle – Built for

Samsung Electronics Engineering Academy (SEEA), which was created to develop young leaders for Africa’s future”

Africa; one example of this effort is a programme – Samsung Electronics Engineering Academy (SEEA), which was created to develop young leaders for Africa’s future - Samsung intends to develop 10,000 electronics engineers in Africa by 2015.

African Review of Business and Technology - November 2011

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BUSINESS

Remittances

Financing Somalia’s Brave New World

How a Somalian entrepreneur is leading the way in money transfer, serving communities, businesses, development organisations and humanitarian agencies across East Africa

S

omalia is a land of many stories. There are those that make any other kind of financial infrastructure, remittances from the the headlines, revolving around famine, political strife, debt diaspora represent an invaluable lifeline. Estimated at up to $1bn, and piracy. And then there are those that go largely they offer a primary source of income for relatives and families. unnoticed – stories waiting to be told - like those of Somalia’s rich Much of the money is used for household expenses. Large sums untapped natural resources, brimming with minerals and oil. Or are also used to finance commercial projects across Information those of its universities which rank among the top 100 in Africa. Or Communication and Technology (ICT), trade, education, health those of its telecom companies which offer some of the most and humanitarian activities in both urban and rural areas. In fact, technologically advanced services in the world.

80 per cent of the start-up capital for small and medium These stories portray a Somalia that is fast demonstrating the enterprises was provided by the diaspora.(1) potential to be a major global player.

Observes Abdirashid Duale, an awardwinning Somali entrepreneur and CEO of Dahabshiil, an African money transfer business, “Every time I go back to Somalia, I notice a lot of positive changes. Things are getting better.”

Abdirashid would know. He’s seen the worst of it. In the late 1980s, the remittance company that he had helped his father, Duale, manage in Somalia collapsed in the face of the civil war. Abdirashid and his family were forced to flee to the neighbouring country of Ethiopia where they rebuilt the company from scratch, drawing on Duale’s extensive network of international contacts.

Today, Dahabshiil is the largest African money transfer company with 24,000 agent Abdirashid Duale, CEO of Dahabshiil locations and branches in 144 countries worldwide. The company serves communities, businesses, development organisations and humanitarian agencies across East Africa by enabling quick and reliable money transfers to and from Europe, North America and Asia. But just how important are its services to Initially, Money Transfer Operators were hard to come by. The Somalia? country’s volatile economy and political instability caused many of the major MTOs to stay away. But determined and innovative A lifeline in troubled times Somali entrepreneurs stepped in, and began establishing private Remittances have always played a significant role in Africa’s money transfer operations which, through a well-developed growth; but in Somalia, they are one of the main drivers of the network of agents, flourished and sustained the economy for economy. Most of the remittances come from Somalia’s diaspora many years. One of them was Dahabshiil. who left the country decades ago to either build a better life or Today Somalia’s remittance network is so well-developed that it escape the civil war. Despite settling down in other parts of the is often considered to be more efficient and reliable than other world, the diaspora – at least one million strong - continues to ‘advanced’ African banking systems where bureaucracy and support family, friends and other people back in Somalia. cumbersome regulatory frameworks make transactions much For a country which, for many years, lacked a central bank and more complex.

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BUSINESS

Remittances

Bolstering the economy Over the last few years, Somalia’s financial landscape has witnessed a series of exciting developments. Foremost among them is the reestablishment of the Central Bank of Somalia after more than 15 long years. Located in Mogadishu, the bank is expected to promote muchneeded financial stability in the country by developing monetary policies, enhancing the value of the local currency, and facilitating profitable credit and exchange conditions.

Encouraged by the bank’s restoration, many of the existing money transfer operators have begun to develop into full-fledged commercial banks. In 2009, Dahabshiil introduced Somalia’s first-ever debit card service, ‘Dahabshiil eCash’ while continuing to upgrade its existing payment systems. Remittances conducted through its network are known to clear in a matter of minutes – regardless of which part of the world they are being sent from, or to. In addition, its Web-based facility and SMS notifications enable customers to track their money transfers in an easy, convenient manner.

Like Dahabshiil, many companies are integrating finance and technology in exciting new ways that bode well for the Somali economy.

And nowhere is this more evident than in the telecom industry.

Riding the telecommunications wave The telecommunications revolution in Somalia is a story of survival and success despite the odds of political instability, crumbling infrastructure, and civil war. Today, Somalia’s telecom industry is one of the best in the world. Calls are cheap, lines are crystal-clear, and services are provided to almost every nook and corner in the country.

Over thirty private telecom companies operate in the country,

compared to just one, two decades ago. Many of these companies offer the latest 3G technology in voice and data services, as well as wireless Internet connections.

In August this year, Telesom Company, Somaliland’s largest national telecommunications operator, unveiled a 3G mobile network service with facilities for video and audio streaming, video chat and high-speed Internet access. Two years ago, the company had launched a mobile banking service – ‘ZAAD’, followed by a solar-powered mobile phone system. Many of these kinds of facilities are still not available in Africa’s more advanced countries. And it isn’t just the private telecom companies who are making it happen.

In April 2011, the Somaliland government passed the historic Telecommunications Act which introduces a new regulatory body and framework for the telecommunications industry, while also encouraging competition, enhancing security, expanding networks and lowering prices. Also on the cards is the installation of a fibre optic marine cable which will offer much greater bandwidth, and open up many new exciting opportunities for enhancing communication.

Making the best of this telecom revolution are entrepreneurs like Abdirashid. In 2008, he acquired a major stake for Dahabshiil in SomTel, a leading Somali telecom and mobile internet firm. SomTel launched its 3G services in July, thus paving the way for a full-scale launch of Dahabshiil’s mobile banking services across the country. ‘E-Dahab’ will enable Somalis in remote locations to have better access to finance and banking facilities. The service will also help sustain isolated local economies, and build on the success of eCash by reducing the transaction costs of handling large bundles of paper money.

Developments like these mean many things for Somalia - greater investment opportunities, more financial inclusion, larger numbers of jobs and increased private sector growth. With the government stabilising, it will only be a matter of time before Somalia becomes a fertile region for major foreign investments.

It’s already happening in the manufacturing industry. Coca -Cola Co. has reportedly invested $10mn in setting up a bottling plant in Somaliland. The factory is expected to open by the end of September,(2) and represents the second license issued by Coca-Cola in Somalia.

Unleashing the shackles of the past For decades, Somalia has been perceived as one of the poorest and most violent nations in the world. Much of what we see and know about the country is limited to the famine that is sweeping across its landscape. No doubt such stories are extremely important – we cannot and must not forget them. But what’s also important is that Somalia is not defeated and hopeless. Somalia is healing and hopeful. It is a country that is gradually letting go of the shackles of the past, and coming into its own.

“Somalis just want to have a normal life - to educate their children and enjoy better services –like anyone anywhere else in the world,” says Abdirashid. As for Somalia’s businesses, he believes that there are many challenges, but that stability and good governance will come in time. “What we need are greater investments and economic independence.”

Both are gradually occurring as telecom and technology becomes more advanced, political stability improves, and entrepreneurship grows. A brave new Somalia is emerging. And the world is watching. ■ Notes: 1 Somalia’s Missing Million: The Somali Diaspora And Its Role In Development - A report for UNDP by Hassan Sheikh and Sally Healy March 2009 2 Coca-Cola Invests $10 Million in Somaliland Bottling Plant – Sarah McGregor, Bloomberg, May 31, 2011

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Ghana

TECHNOLOGY

Low-cost computing for education

Ghana’s Ministry of Education has deployed and is now running 800 virtual desktops for schools in Ghana

T

he Government of Ghana and the Ministry of Education is committed to the rapid deployment and utilisation of information and communications technology (ICT) throughout all levels of education as a means to transform the education system and improve the quality of life for all citizens in Ghana. The government believes that through the deployment of ICT in education, the culture and practice of traditional memory-based learning will be transformed to an improved education system that will stimulate the level of critical thinking and creativity required to meet the challenges of the 21st century.

Replace obsolete PCs and expand education access Critical challenges the Ministry of Education has faced in meeting its ICT goals, include underdeveloped physical and institutional infrastructure, lack of electricity and power usage, limited Internet access, lack of funding for building new capacities, and limited technical and maintenance support. A survey of the Senior High Schools discovered that while most schools had computer labs, they were inadequate and had obsolete and poorly functioning systems. Often there wasn’t any Internet access and availability to educational software was limited at best. Systems were old, sometimes refurbished, and far beyond their useful life. School staff and students struggled just to get these systems working, let alone conduct an actual lesson.

Based on this research, the Ministry determined that the first phase of deployments countrywide should focus on improving reliable computer

NComputing is a favorable solution for us and successfully addresses the concerns of the developing world who are struggling to receive adequate funds for the costly deployment of computers in schools” Emmanuel Kingsley Dadebo Coordinator ICT Education Programmes

access. Historically, there had been one computer available for every 42 students. The Ministry set a new goal to double the number of computers.

The Ministry also wanted to address the historical inequities of ICT access as there were some situations where as many as 500 students “shared” access to a single computer.

From vision to reality The Ministry of Education assessed traditional thin clients and arranged demos by different manufacturers but found that these solutions were complex, requiring third party hardware components and additional investment for technical support, adding to the overall

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TECHNOLOGY

Ghana

cost. The NComputing X-series stood out as the most cost effective, with the highest user density per dollar compared to any PC or thin client technology on the market.

For their initial deployment, the Ministry of Education turned to IPMC, a leading IT vendor in Ghana, to purchase 800 X-series virtual desktops and 80 host PCs, creating a ratio of 10 additional users to just one host computer.

The results have been profound as educators and students have discovered new ways to teach, share information and do research. The NComputing solution works because today’s PCs are so powerful that the vast majority of users only need and use a small fraction of desktop computing capacity. NComputing taps this unused capacity from a single PC or server so that it can be simultaneously shared by many users. Each user’s monitor, keyboard, and mouse are connected to a small and highly reliable NComputing access device, which is then connected to the shared computer. The access device itself has no CPU, memory, or moving parts so it’s rugged, reliable, and easy to deploy and maintain, using only 1-5 watts of electricity per hour. The low electricity usage is critical because as mentioned previously, electricity in Africa can be expensive and often unreliable. Above all, the Ministry’s approval for the use of the NComputing solution is also based on the more affordable unit cost as compared to other competing solutions.

Into the future The successful deployment of NComputing virtual desktops at the Senior High School level has given the Ministry of Education the confidence to devise an implementation plan that will capture the

Blue Ocean Group (BOG) has partnered with leading global brands such as LG Electronics to ensure technological innovations in developed countries reach the Nigerian market too.

Blue Ocean Group is the only Nigerian Company in the field of specialty services that provides full-version solutions across all segments: water treatment, sewage treatment, solid waste management, alternate energy solution, hospital facility services, security and surveillance solutions etc.

At the various technical seminars organized by the company in different parts of the country, new products such as The LG Multi V III Commercial AC, Network Monitors, Closed Circuit Cameras, Solar Panels and Security Surveillance Cameras were introduced to the Nigerian market.

The new LG Network Monitor, a revolutionary product that makes PC-sharing so convenient enables the connection of a single PC to up to 31 fully functioning terminals just by adding extra monitors and input devices. Its Ethernet support allows connection unbound by distance. With its easy setup and hassle-free maintenance, it is the perfect cost-saving computing for anyone who values productivity and efficiency in today’s business environment.

The LG Multi V III Commercial AC has proven to have three unique benefits which the consumer stands to enjoy: higher energy efficiency, bigger capacity, and longer piping design. The unit’s

different levels of educational structures in Ghana. By 2016, the Ministry of Education has plans to extend NComputing virtual desktops to over 14,000 Primary Schools (Ages 4-10), 8,000 Junior High Schools (Ages 11-13), and an additional 450 Senior High Schools. The effective use of ICT will help the youth of Ghana to develop the knowledge and talents needed to succeed in an increasingly competitive and digital job market. It will also provide Ghanaian students and teachers an opportunity to exchange ideas and share experiences with their counterparts all over the world. ■

increased energy efficiency which receives a boost by LG’s unique inverter compressor V-Scroll and HiPORTM (High Pressure Oil Return) technology, delivers a COP level (coefficient of performance) of 4.6, one of the highest in the industry and achieves a reduced oil circulation from the conventional 2.5 to 0.35.

The LG Security Cameras come with powerful x37 optical zoom with pan and tilt capabilities for all surveillance functions. The LG Solar Panels have also been proven to provide clean and reliable energy solutions like solar power.

Blue Ocean Group is also one of the leading water solution providers in Nigeria. It offers Packaged Type Sewage Treatment Plants which are simple to install and come with Plug & Play concept in capacity ranging from 10 - 100 m3/day. Water Treatment plants which are skid-mounted plants include all product range like Media Filters, Activated Carbon Filters, Iron Removal Filters, Softening Plants, RO Plant and Ultra Filtration UV Treatment, which makes Blue Ocean a one-stop shop for all consumer water needs.

Anupam Ghosal, Managing Director of Blue Ocean, said, “Organisations have started realizing that today’s consumer wants the very best and that is what we offer. Blue Ocean would continue to ensure that customer demands are met through products and services provided by the firm as Blue Ocean believes “life is better when it’s green”.

Head Office: 23 Ladipo Oluwole Street, off Adeniyi Jones, Ikeja, Lagos.

E-mail: info@blueoceangr.com, Phone: +234 802 992 6333, 01-8400810

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PRINTING

The digital printing revolution in education

Océ South Africa identifies digital printing as a vital tool in improving the overall efficiency of creating educational material

T

he costly and time-consuming method of printing educational material can be significantly-improved by utilising digital printing on demand (PoD) technology, according to leading document management and printing expert Océ South Africa.

Océ South Africa national product manager for wide format printing systems Jaco Smit points out that traditional study textbooks are uneconomical to print using the industry-standard method of off-set printing, if only a limited number of copies are required. “To cover the preparatory cost of the offset process, such as prepress, plate making and make-ready on the printing press, an output of a few hundred books would result in either a high cost per book or an overall loss,” he explains.

Smit points out that this problem is compounded by the fact that the production costs are paid in advance, and cannot be fully-recouped until the last copy has been sold. What’s more, the costs of storing the books in a warehouse add further financial pressures. “The development of digital printing and specialised offset litho equipment designed for short runs, are an answer to this problem. Now, it is possible to print very short runs or even a single copy at a realistic and competitive price. Océ is an important player in the book market, with production machines that fit every need,” he continues.

The demand for digital technology Smit believes that PoD is a logical evolution of the widespread use of computers and the development of digital printers. “Instead of storing books as physical items in warehouses, they can be printed at the moment that someone requires them. PoD is; therefore, a technology, and not a type of publishing business.”

PoD uses digital technology including printers, and can produce one book - printed and bound - within a matter of minutes, notes Smit. “PoD eliminates two large expenses involved in book publishing, namely; warehousing and the financial risks of printing a large quantity of books,” he explains. “The traditional supply chain of books is wasteful, with around 30 per cent of books being returned to the publisher. With PoD, a copy of a book is created after the order is received, therefore slashing wastage.”

Smit does; however, note that the PoD model does not work for every type of book. “Paperbacks from the best-sellers list are obviously purchased by a large amount of people. The preparatory costs of the traditional business model are only a fraction of the total cost, resulting in an overall price that is too low for short-run and PoD equipment.”

For niche markets such as educational printing; however, PoD offers great opportunities. “In the business of academic textbooks, a title would be discontinued if the sales dropped below a certain level. Thanks to PoD, hundreds of thousands of titles have been brought back into production,” says Smit.

He notes that print service providers within Higher Education in particular can benefit from PoD. “Universities and colleges can save time in searching and photocopying materials required for their courses using PoD, and only need pay for what is necessary for the courses.”

In the traditional print model, material is printed and subsequently sold.

With PoD, this is the other way around, as the book is sold before it is printed, says Smit. “This has a major impact not only on production, storage and waste, but on the complete process. It means that before the words are printed on paper, the exact audience of the material is already known.”

He points out that this offers extreme levels of flexibility, where tailormade content can, for example, be produced in a book that looks exactly like any book - with an attractive cover, solid bindings and an ISBN number. “Using PoD, universities have a powerful tool to diversify themselves in course offering, in attracting new students and in positioning the core values of the institution.” ■ Jaco Smit, Océ South Africa National Product Manager for Wide Format Printing Systems

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TECHNOLOGY

Commerce

Working in the online economy

The motivation for adoption of a digital strategy is simple – it is all about doing better business

M

any South African companies are starting to come to grips with the realities of online and the opportunities it has to offer. The challenge is understanding the value that it can deliver for their businesses and how they can capitalise on the opportunities available.

Delivering value The greatest challenge is putting in place the right online strategy, that will deliver value and enhance your business. It’s all about the most fundamental of principles: reaching out to your customers and convincing them to buy goods and services from your organisation.

This doesn’t apply only to the buying decisions they make in the online world, but also to the decisions they make when they are buying through traditional offline channels. Consumers today live in an interconnected media world where their experiences online shape their behaviour in offline channels such as physical stores and vice versa.

Consider the buying cycle of many consumers in the mid to upper LSM segments. An accountant who lives in Johannesburg’s northern suburbs might decide that his five-year old BMW needs to be replaced.

Embracing the Internet One of the first things he’ll do is start researching options on the Internet to see what is available, what the prices are and which dealers offer the best deals. He’ll review brands, prices and features for all the makes within his price range. Online he has the advantage of side by side comparisons and reviews, including customer reviews.

Armed with the information from a couple of hours spent on the Internet, he may start visiting car dealers to do test drives and get quotes. Any motor dealer that doesn’t have a strong presence on the

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Internet runs the risk of losing out on a prospect who might be interested in driving away one of the vehicles on its showroom floor.

Developing an online strategy The goal of your online strategy, therefore, is to match consumers with information from your company that they may be interested in to increase their awareness of your offerings and to drive their purchase intentions. The tools that you can use to achieve these goals are numerous,they range from email marketing, social media and banner advertisements through to search engine optimisation and search advertising.

What makes these tools different from offline marketing and advertising channels is that they offer you a high level of measurability. You have the ability to see how many people are interacting with your message, which in turn helps you to

African Review of Business and Technology - November 2011

understand whether your campaigns are driving sales for your business. You can attribute a return on investment to each channel and understand which channels deliver the best value and where they fit in to the broader value chain.

You can gather data that helps you to better segment your market so that you can target the right message to the right consumers. For example, you can understand which advertising environments generate the best responses for your organisation. Over time, you can improve and optimise your online strategy to better meet your business goals.

Digital strategy isn’t something that exists as an add-on to your business strategy. It goes right to the heart of converting customers – the very goals of every successful commercial enterprise. ■ Richard Mullins, director at Acceleration

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Senegal

TECHNOLOGY

Maths and science stars to shine at new centre M

athematics underpins science, technology and modern society – from cell phones to computers and satellites. Early in September 2011, the Government of Senegal led by His Excellency President Abdoulaye Wade and international partners opened a pan-African centre of excellence for Africa’s brightest math and science graduates in Mbour, 80 km south of Dakar.

AIMS-Senegal is the second centre in the African Institute for Mathematical Sciences (AIMS) network, joining AIMS-South Africa, which has operated in Cape Town since 2003.

The plan to expand AIMS across Africa is known as the AIMS-Next Einstein Initiative (AIMS-NEI).

The goal is to rapidly and cost-effectively expand Africa’s scientific and technological

capacity by providing advanced training to exceptional African students and enabling them to work effectively for the peaceful prosperity of the continent.

The next Einstein AIMS-NEI grew out of a wish first expressed by AIMS founder Professor Neil Turok, now Director of Canada’s Perimeter Institute for Theoretical Physics, that “the next Einstein be African”.

That wish has evolved into a plan to create a pan-African network of 15 AIMS centres over the next decade. AIMS-NEI is supported through public and private funding, including a $20 million investment from the Government of Canada, provided through the International Development Research Centre (IDRC). The Government of France is also a major partner in

AIMS-Senegal, providing land for the current and future AIMS-Senegal facilities through the Institut de recherche pour le développement (IRD).

The first AIMS centre, in Cape Town, South Africa, has graduated 360 students from 32 African countries to date, of whom one-third are women. AIMS has become globally recognised as a centre of excellence for postgraduate education and research. ■ www.aims-senegal.sn

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TECHNOLOGY

Accountancy

Counting on the future

Four things accountants must do to keep up with ongoing technological developments in financial practices

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uca Pacioli, an Italian mathematician and Franciscan friar, is widely known as the Father of Accounting for publishing 36 chapters on the doubleentry accounting method used by Venetian merchants during the Italian Renaissance. His book, Summa de Arithmetica, Geometria, Proportioni et Proportionalita (which translates, “Everything about Arithmetic, Geometry and Proportion”), was written as a textbook for students in Northern Italy at the end of the 15th century. Pacioli’s documentation of double-entry accounting and ledgers taught entrepreneurs of the day how to conduct business using timely and accurate financial information, and it established the fundamentals of accounting still practiced today.

Pacioli’s fundamentals were only feasible thanks to the written numeral system and the abacus developed before that. And since then, the industry has seen further and more ground-breaking developments including the introduction of the typewriter, then computers, and later the Internet. With each of these milestones, technology not only impacted how accountants handle financial information but also how they interact with their clients.

Working with the future With the changing technological landscape, what must accountants do to stay competitive in the future, and how will technology change the future role of the accountant? ●

Increase Value-Added Services to Retain Clients – Compliance work is getting more and more standardized and streamlined due to technological advances. If you can shift time and resources from these commoditized services, focus more on becoming an

26

indispensible advisor. Here are some tips on how to become a trusted business advisor to clients. It is no light commitment and might require a paradigm shift by some, but balancing compliance work and helping clients make strategic decisions to protect and grow their business is the role of the accountant for the foreseeable future.

One challenge the accounting field faces today is coming to grips with the incredible amount of financial detail their clients are both receiving and generating. The new frontier for accounting/tax related information services is filtering, assembling, prioritizing, and then presenting the most vital data in a format that is readily usable by the management team. ●

Differentiate Your Firm – It is normal now for the buying process to begin online with a search engine. What makes your firm different from the firms listed ahead of you in search results or from the firms down the street? Do something to stand out when speaking with prospects, and prospects will spread the word. For the initial meeting, familiarize yourself with their industry beforehand, provide something more to take home than your marketing brochure (maybe a one page document with a few areas of focus and strengths), and follow-up with a handwritten thank you note.

Many firms have embraced the opportunity to utilize technology to differentiate their overall services to current clients. Typically, a firm's responsibilities command that it is its clients' most trusted business advisors, and with the abundance of technology solutions available it is critical to use the right applications to help maintain that status…relying on a multitude of additional platforms for the dual

African Review of Business and Technology - November 2011

purposes of adding efficiency and effectiveness to required procedures while simultaneously providing valueadded service to clients. ●

Build an Online Presence – If prospective clients start their buying process online, it is important for your firm to at least be among search engine results. That is difficult, though, if your firm does not maintain a Website. To attract new clients, you have to meet prospects where they are – online.

●

Be Conscious of Your Clients’ Time (or Lack Thereof ) – Business owners are busy running their business, so be conscious of their time and make things easy for them. Technology can help: (a) Make file transmission less of a hassle by giving clients the ability to connect with you online through a client portal. (b) Provide detailed information on your services through your Web site, so prospects and clients can easily find what they are looking for. (c) Stay in touch with them proactively and regularly; consider sending out an electronic client newsletter or other regular electronic correspondence.

Ultimately, when evaluating how to move forward with technology in your firm, it is vital to understand your market, clients, and the strengths that make your firm unique. Given how far technology in the accounting industry has come since the time of Pacioli, it is no longer an option just to provide timely and accurate financial information. Exploit new technologies in your client interactions, and you’ll find that your firm is better prepared to gain and retain valuable clients. ■ Dustin Lubertazzi, Senior Consultant, Sageworks, Inc

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TECHNOLOGY

Reg. Charity No. 1080839

ICT

Developing technology S

himmering new call centres, the rapid explosion of mobile phones and Internet connections today mark the landscape of many African cities - where improved Information and Communication Technology (or ICT) infrastructure is helping connect urban dwellers to global networks.

Though the continent is rapidly urbanising - 3.5 per cent of Sub Saharan Africa’s one billion people move into cities each year - and local governments have trouble providing essential public services to the growing numbers of people, many municipalities are taking advantage of the rise of ICT to improve the lives of their residents.

“By linking citizens and municipalities, ICT can serve as an effective tool for strengthening urban governance, which is the key to addressing the challenge of urban development,” said Junaid Ahmad, the World Bank’s Sector Manager for Africa Urban and Water.

Datacard Group proudly supports women in their fight against breast cancer. Through March 2012, we will donate to the Pink Ribbon Foundation with every purchase of a pink Datacard® SD260™ Card Printer. For complete details, contact your authorized Datacard provider or visit Datacard.com/pink.

Using ICTs for social accountability and governance The guidebook, Good Urban Governance through ICT: Issues, Analysis, and Strategies, focuses on areas like social accountability and how technology can encourage citizen-centred governance.

Technology helps well-informed citizens collaborate, exchange ideas and participate in real-time with their elected officials, according to Relhan.

Voters can have their voices heard and officials can incorporate this feedback in their decisions.

For instance, through mobile phones and the Internet, a Facebook page or post, a Tweet or a YouTube video, a citizen now has the power to participate at his fingertips to improve outcomes and trap corruption.

Examples include tracing expenditures to see if there is sufficient spending by region or sector; tracking procurement results to see if vendors seem to be getting too much business or charging too much; and on-the-ground pictures to show whether projects were actually completed.

In Kenya, an e-Government service in six towns includes an Internet-based tool that allows citizens to anonymously report instances of corruption. The service is part of the country’s Electronic Graft Management (EGM) project. A survey conducted in two municipalities as part of the project showed that: ●

80 per cent of respondents felt that computerisation had improved financial transparency

●

82 per cent of respondents felt municipal financial management had become more effective

●

80 per cent of respondents felt e-Government services improved accountability, as they could now track business permit licenses and monitor all payments handled by city councillors. ■

Datacard is a registered trademark and/or service mark of DataCard Corporation in the United States and/or other countries. ©2011 DataCard Corporation. All rights reserved.

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African Review of Business and Technology - November 2011

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Social Networks

TECHNOLOGY

Selecting a social network W

hen building (and maintaining) a social media strategy for your organisation, it’s easy to become overwhelmed as you consider all the different networks and platforms on which you can establish a presence, connect with your audience and share content.

In addition to the ‘Big Three’ - Facebook, Twitter and LinkedIn - a plethora of other sites and networks abound. How do you pick which to use? Or do you just give up and go with D. All of the above.

Pick the audience, not the network It’s easy to take a look at all the discussion groups, networks and platforms out there - and then panic when thinking about the sort of resource maintaining presences on all those sites would require. However, things become much more manageable when you think about where your audience is - and act accordingly. So, if you’re focusing on teens, you can cross LinkedIn and Twitter off your list, and double down on Facebook and YouTube. Do you have a B2B focus? LinkedIn and Twitter will be key but don’t discount YouTube (think of it as a very search engine friendly video repository) and Facebook.

The social sweet spot: the intersection of your audience, content and team's strengths

What are your team’s strengths?

Sustaining social media efforts - especially at the outset, when you’re still trying to build the sort of success that will enable you to sell programs internally - isn’t easy. And giving people tasks and responsibilities for which they’re well suited is crucial to your program’s ongoing success. Don’t expect a non-writer to be a great blogger.

Be realistic about what your organisation can support The time, energy and effort required to support social presences is considerable. In addition to producing content (blog posts, images, videos, etc.), your team will also spend time finding and sharing interesting things with their audiences on the social presences they manage. And they’ll need to plan on spending some time listening to and interacting with the audiences, too. Rather than spreading your team too thin, and developing social presences that aren’t alive and connected, limit the number of presences to a manageable quantity. This is truly a quality over quantity judgment call. ■ Sarah Skerik, PR Newswire’s vice president of social media African Review of Business and Technology - November 2011

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POWER

Lightning Protection

Action against electrical strikes

Observations on the requirement and effectiveness of traditional lightning protection systems

T

here has been interest in lightning activity and lightning protection for centuries. The intrigue in this subject has persisted, in part, because of the spectacle of the lightning strike and the lack of understanding of the phenomenon, relative to other branches of electromechanical science. The electrical engineer remains interested, of course, because of the need to protect facilities especially, electronic equipment, which is vulnerable to secondary effects of lightning strikes.

Lightning strikes result from strong electric fields, which cause the formation of low-current electrical breakdown events called streamers. These develop into higher-current leaders, which can project toward the earth, intensifying electric fields at ground level, generating upwardgoing discharges from well-exposed objects. These discharges connect to the approaching leaders and provide a path to ground for the lightning. Upon connection, currents of several tens of thousand amperes flow between ground and the cloud source fo the thunder. The high current generated, when passing through an unprotected building, can generate sufficient heat to start fires.

The rate of current increase in a lightning discharge often exceeds 1,010 amperes per second - translating into large voltage differences across the parts of the current path which have high resistances and/or inductances.

Differences between the current carrier and any surrounding objects can exceed several hundred thousand volts, causing “side flashes” to objects nearby, which can result in injury or death to people, and damage to equipment.

In locations where there is roof-mounted electrical and communications equipment including photovoltaic, communications and control systems - there are not insigificant challenges involved in designing an effective lightning protection system.

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Protecting homes and businesses To protect homes and businesses against power surges and lightning strikes, there are a number of considerations. Amongst the most important is the installation of a lightning protection system. A lightning protection system offers structural protection by facilitating a path for lightning to travel. Lightning protection systems consist of three basic parts, which together provide a low impedance metal path: ●

Strike termination devices on the roof and other elevated locations.

●

Ground terminals.

●

A conductor system connecting the strike termination devices and the ground terminals.

When a building is equipped with such a system, the power of the lightning strike is directed safely away from the structure to the ground, averting damage. Typically, the system will include a lightning rod or air terminals at the top of the building, and wires to carry the current down to

African Review of Business and Technology - November 2011

grounding rods at the building’s base. The lightning protection system needs to be securely anchored to the roof; otherwise, it may whip around in a storm and damage the building. And it is important to use surge protectors. Electronic equipment is vulnerable to lightning, so surge arrestors should be installed on electrical service panels. Installations should include surge arrestors for the main electric panel, and for any incoming phone, cable, and satellite lines. Surge arrestors protect structures from damaging electrical surges that can run along power transmission lines, by filtering and dissipating them, so preventing electrical fires and protecting computers appliances and electrical systems. It should be borne in mnd that power strips offer little protection from electrical power surges.

Lightning preferentially strikes wellexposed, tall, conducting objects that are connected to the ground. The need for strike receptors to protect such structures is undisputed. The primary question in the design of a lightning protection system is the placement of the strike termination devices to achieve a sufficiently low probability of a strike bypassing them. ■

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POWER

Gas

Making the most of methane fields

Work is well underway at the Raml gas well project, located in Egypt´s western desert fields

S

pecialist in the design, supply and manufacture of energy solutions, Guascor’s power gensets are delivering low methane number flared gas production for a continuous power generation capacity of 1.5 MWe in the Egyptian Western Desert. This low methane number producer (#46.1) uses Guascor Power technology based on low compression ratio engines - the SFGLD480 series - to maximise natural energy resources for power generation using three gensets at a remote location. This application offers a direct example of Guascor Power’s industrial capabilities, in collaboration with Agiba Petroleum Co, to make the most of local resources.

Generating gas in Egypt’s deserts The Raml gas well project is sited in Egypt´s western desert fields, which has more than 110 oil-producing wells. Raml itself is the location for 30 of these wells.

The average production of gas fields is 57,000 BBL/day over five different locations. Historically, the main drawback of operation in the western desert fields such as Zarif, Faras and Raml – the scope of Guascor’s operations - was the presence of a high gas-to-oil ratio (GOR), a factor that led to poor exploitation of resources.

Now, after sorting out this problem, gas and oil is efficiently separated - and, hence, has been viable for Guascor Power generation at Raml, feeding flared gas to Guascor’s engines satisfactorily by January 2011.

Maximum quality, minimum cost The sourcing of raw gas from the well outlet requires a preliminary treatment based on an effective cleaning and degassing technology, to guarantee fulfillment to engine specifications. The Guascor Power project development, based in the company’s best-in-class experience of power technology, has enabled maximisation of the quality of

32

gas, and increasing methane yields to make power generation more effective at a minimal total cost of operation.

The Guascor Power genset technology portfolio is capable of working in rough environmental conditions - supporting the generation of cheaper and cleaner electricity for the company’s customers in remote areas, or where the raw material is.

In this case, in Egypt’s western desert, the neat power production stands at 1.5 MWe (2.18 MWm).

African Review of Business and Technology - November 2011

The benefits of the project were a substantial cost saving of 2 MM€/yr, an increase in the reliability and availability of power generation and supply, an increase in oil production, the minimisation of maintenance force and repair costs - and, which is more important, a 50 per cent reduction in emissions and a 60 per cent reduction in the flared gas vented to atmosphere. ■ www.guascor.com

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S05 ATR NOV 2011 power_Layout 1 24/10/2011 18:16 Page 34

POWER

WAMPEX

West African mining and power opportunities West Africa is one of the fastest growing mining regions in the world, and also a growing consumer – and generator – of electric power

E

ight new mines have started production in the last three years, with another 13 mine projects planned for the region. Ghana alone has nine major mines and 600 smaller mining operations, all looking for international partners to scale up production.

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

Playing a prominent role in facilitating these kinds of developments for the last 17 years, the biennial West African Mining and Power industry Exhibition (WAMPEX), and its associated conference WAMPOC will attract international exhibitors, visitors and delegates to Accra from 6 to 8 June 2012.

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

The event is endorsed by the Ghanaian Ministries of Energy; Lands and Natural Resources; the Ghana Chamber of Mines; The Minerals WAMPEX is held at the Accra Commission of Ghana International Conference Centre and the Volta River Authority.

The 2012 Expo and Conference will see regular participants in the form of mining houses Anglogold Ashanti, Newmont, Goldfields and Golden Star Resources taking part.

Previous exhibitors West Africa Pumping Services, Golder Associates, Sykes Group and Sakr Power, buoyed by the success of their 2010 involvement, have doubled their exhibition space bookings.

Major investments fuel growth A recent $3bn loan accord between Ghana and the China Development Bank for the development of Ghana’s energy industry was quickly followed by a $10.4bn concessionary loan agreement with the ExportImport Bank of China for the development of rail, road, and energy infrastructure. “The funding is in place and the business opportunities are now ‘real’,” continues Thomson.

Why power and mining?

“Mining is the largest consumer of power in the West African region, and

34

African Review of Business and Technology - November 2011

The WAMPEX exhibition and conference presents stakeholders with a focused products and services showcase

more power will be needed as mining activity increases,” says Thomson.

“The inclusion of a power component in the WAMPEX expo is the perfect medium to address this critical sector.”

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

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

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

“Some countries are upgrading hydroelectric facilities and increasing dam capacity to address this. Another viable medium-term strategy is power sharing with neighbouring countries through regional grids. Renewable energy such as solar, wind, and geothermal power are a growing alternative energy source.

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

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

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POWER

Oil and Gas

A partner for oil and gas O

ilways Logistics & Energy Ltd is a wholly Nigerian firm, duly accredited with all relevant authorities in Nigeria and working towards being registered with all Oil and Gas Majors - having obtained its Department of Petroleum Resources Permit.

The company specialises in petroleum product trading and marine logistics support services.

The company aims to be the best in Petroleum Product trading and in the provision of Marine Support Services in Nigeria and West Africa.

Oilways Logistics & Energy Ltd is on a mission to serve not only Nigeria but also all relevant stake holders in the region.

sector of Nigeria - and to offer excellent services to clients via best business practice, as well as upholding its status as a responsible corporate citizen. The company aims to excel ● ● ● ● ●

●

●

A vision for dependable trade Oilways Logistics & Energy Ltd aims to be a leading trusted and dependable world class organisation - with a culture of integrity, excellent service delivery in its sphere of operations, which encompasses trading, international procurement and logistics support service providers to the energy cum maritime

● ●

Petroleum Product Trading.

Ship chandelling.

Offshore supplies of Bunker and Fresh Water.

Providing logistic and support services.

Handle in/out clearance at vessels to/from port.

Manufacturers representatives/international procurement.

Play agency roles to all key players in the shipping cum maritime industry.

Spill and Rig cleaning (Onshore/Offshore).

Diving and Offshore Inspection Services.

Franklyn P. Godwin, Chief Operating Officer at Oilways Logistics & Energy Ltd, says, “We are strategic partners to importers of Petroleum Products, Security agencies, such as Nigerian

Navy, Nigerian Customs and Marine Police, and others, who facilitate our in and out clearance of vessels and lots of other sundry services.

“While we also partner firms who are into chemical production, both foreign and local, we are open to partnering with marine equipment owners all over the world who would become technical partners to us in the area of providing vessels of various sizes, anchor handling equipment, self-propelled barges, and other infrastructure.”

“These we are pursuing in line with the latest Nigerian Government Policy on its Local Content Drive." ■ For more, information, contact: Franklyn P. Godwinn Chief Operating Officer, Oilways Logistics & Energy Ltd. 20 Unity Road, Off Toyin Street, Ikeja, Lagos.

01-7740411, 08037092348. www.oilwaysltd.com

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African Review of Business and Technology - November 2011

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Renewables

POWER

An improving carbon footprint

Why net-zero energy buildings across the continent are a worthwhile and viable - sustainability goal Karl van Eck

R

educing carbon footprint and improving energy efficiency has become an important issue for businesses in light of ever increasing energy costs and a growing awareness of environmental issues surrounding fossil fuels. However, in the pursuit of the goal of greater efficiency and improved sustainability, creating green buildings is simply a step along the path towards the ultimate goal - net-zero energy buildings (ZEB).

A ZEB is a residential or commercial building that consumes a net total of zero energy from non-renewable sources, including utility electricity, natural gas and oil, all of which are created using fossil fuels and which are now considered to be unsustainable in the long term. These buildings have such a high level of energy efficiency that they can rely for the most part on renewable energy generated onsite and will only use nonrenewable sources to supplement this during times of high demand. During times of lower demand any excess energy created can be exported back onto the utility grid, thereby offsetting any energy usage from this source. Non-renewable energy usage is thereby cancelled out, or offset, by excess renewable energy, and the net energy consumption of the building can therefore be considered to be zero.

Exporting excess renewable energy created back onto the grid is the ideal scenario for businesses wishing to develop ZEB. However within the current South African context this is not easily achievable and renewable energy technologies themselves may not yet have the financial payback periods that building owners require. For this reason the ZEB is not yet a reality in the country, however as technology improves and Eskom continue 440 - Africa Utility Ad.ai 1 9/15/11 12:48 PM investigating smart metering this scenario is likely to change, and

so the goal of creating ZEBs should be the end goal of any sustainability and energy efficiency programme.

On the journey towards creating ZEBs improving efficiency is the first step, as every bit of energy saved contributes towards lower energy demand and lower investment in renewable technologies. Energy saved is energy that does not have to be produced, and this applies to any building, not only ZEBs.

South Africa is well-suited to the use of solar energy

Taking steps to more efficient environments To achieve maximum building efficiency there are four stages that can be followed. The first of these is load reduction, which involves reducing every energy consuming load to the minimum and eliminating unnecessary loads. This can be done in any building no matter how old, but in the case of new buildings it involves starting with a design

African Review of Business and Technology - November 2011

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POWER

Renewables

that includes only the energy services that are necessary. The second stage is systems efficiency. This step is designed to enable buildings to meet the remaining required loads as effectively as possible, by optimising the efficiency of the system as a whole in addition to individual components and ensuring that components such as pumps, motors, fans and insulation are optimally specified for the facility.

In order to achieve these first two stages an energy audit of current energy usage can be conducted to highlight areas where immediate and future improvements can be made. An energy audit encompasses all areas where energy is being consumed in a building or operation, such as light fixtures, the entire HVAC environment including air handlers, boilers, chillers, controls, air conditioners, heat pumps and so on, load controls, insulation and glazing, compressed air, backup power and many more areas. A thorough energy audit will not only show areas that can be improved with the upgrading of technology, but also through improved configuration of existing technology, helping to improve the overall energy system rather than focusing on individual components.

The third stage in the journey towards creating ZEBs is the implementation of regenerative systems, which use waste energy for useful purposes, such as Heat Recovery Systems which use excess energy from air conditioners to heat water for bathroom and kitchen use. The fourth and final stage is to implement renewable systems, which generate power on-site using sources such as solar and wind power.

South Africa in particular is well suited to the use of solar energy as a renewable source, since a building's size and shape significantly affect the building's ability to generate enough solar power to meet a ZEB goal.

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African Review of Business and Technology - November 2011

Buildings of more than three storeys may have difficulty producing enough solar energy due to the relatively low ratio of roof footprint compared to the load density of the building. However since a large number of commercial buildings in South Africa generally consist of one or two storeys and are spread out, they create a large roof area that is perfect for photo-voltaic solar energy systems, making them ideal candidates for this renewable energy source.

While not yet a viable option in South Africa, net-zero energy commercial buildings do exist today. In some cases they have been shown to be cost-effective when compared to traditionally constructed buildings, and in others, building owners have invested in ZEBs to demonstrate their commitment to renewable energy, the climate, and other nonmonetary values. The proof of concept provided by these buildings, combined with the increasing efficiency and lower costs of renewable energy technologies, should lead to the growing adoption of ZEB techniques and technologies within the commercial building marketplace. More experience with zero energy buildings will also lead to an awareness of best practices that will drive the cost lower and reduce the perception of risk associated with the concept.

Net-zero and near-zero commercial buildings offer exciting and rewarding opportunities for economic development and new jobs, and the advancement of climate and energy security goals. The aspiration for the creation of ZEBs offers a clear and inspiring goal for building owners, and a significant way to improve building energy sustainability and to reduce their environmental impact. â– Karl van Eck, Regional General Manager Africa at Johnson Controls

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Zambia

POWER

Power on the button Z

ESCO, the Zambian public energy firm, has introduced SMS Power, a two-way communication facility between the company as a service provider and its customers through Short Messaging System (SMS) using the cellular phone. SMS Power is an efficient, cost-effective, user-friendly and convenient communication tool - a service that is available to all communications service providers; namely Airtel, Zamtel and MTN. Through the facility, ZESCO initiates SMS broadcasts to registered customers to avail the following information: load shedding and planned shutdowns; personalised monthly billing advice; outstanding balances; fault occurrences on the power system network, and resolution plans and times for peace of mind; information on new products and services; responses to customer-initiated inquiries regarding balances; and handling requests for short versions of their statements, which are available at any time.

New ways to pay for power ZESCO is also operating Malaiti 24/7, a method of buying electricity prepaid units using a cellphone.’Malaiti’ is vernacular for ‘electricity’. Malaiti 24/7 is a proactive measure responding to the growing number of customers using prepaid meters and a quest to give customers a wide range of vending options.

“This service rides on the Extended Vending Gateway (EVG), a technology that presents various other vending options such as Point of Sale, Website and ATM. The benefits of this service include: it is costeffective, no transport costs to a vending point to buy units; it is secure, there is no risk of the customer losing his/her money on the way to buying electricity units; it is convenient and allows the customer to buy electricity units anywhere – at work, at home, etc.; the service can be accessed from an already existing platform (the cellphone); it is a mobile service

With cellphone connectivity to the Airtel network, the cost of the messaging transaction to buy units is at no cost to the ZESCO customer, with no maintenance costs.” that is accessible throughout the day; it offers the customer using prepaid meters even greater control of electricity usage as it gives them unlimited access to electricity on a 24hour basis, suiting each and every lifestyle; and it rules out the painstaking and timeconsuming exercise of queuing to buy prepaid units. ■ Nawa Mutumweno

African Review of Business and Technology - November 2011

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POWER

Renewables

Making energy through enterprise The only way to eliminate poverty is to stimulate economic growth, and that requires access to energy - that is the rationale behind E+Co, a company funding clean energy companies and projects

A

ccess to energy is a pivotal element in furthering economic and social development, but the problem is that, increasingly, states and state-owned utilities are incapable of supplying sufficient energy to all its citizens. In developing countries, there is a massive energy market that remains unserved.

Across the world, two billion people do not have access to electricity or other forms of modern energy. Three billion people do not make use of modern energy options to cook their daily meals, but use traditional biomass to cook with. These people clearly need modern energy solutions for their homes, their businesses, their schools, their health centers, etc., and that is where E+Co comes in.

An untapped customer base In Africa, E+Co has three regional offices – in Tanzania, Ghana and South Africa – and have invested in a range of different energy enterprises such as LPG companies in Ghana and Mali; solar-power enterprises in Ghana and Tanzania; a women-owned business that dries fruit and vegetables with solar power in Uganda; and Toyola that manufactures and distributes efficient cook-stoves in Ghana and this won the prestigious US$64,000 Ashden Award for Sustainable Energy.

“To a significant extent,” says E+Co’s director Paul Van Aalst, “whereas in other sectors, such as telecoms, the rural market has been discovered – the energy sector it is still largely untouched.

“This implies a gigantic untapped client base just waiting for energy provision and here there is a role for the private sector to play. Obviously, to do that properly, supplying clean energy is very important.”

So E+Co continues to push the boundaries of the energy enterprise investment space, both by adding new elements to its own

40

Paul van Aalst, director at E+Co

business model, and by promoting the sector through partnerships and knowledge sharing.

Van Aalst now leads the development of E+Co’s investment instruments and partnerships in Europe, Asia, Africa and Latin America. Over the last 15 years, he has been involved in developing investment vehicles and in advisory work with international corporations, public organisations and international financial institutions in the field of sustainable investing.

The aim, Van Aalst says, is that by 2020, E+Co will reach 80m-100m additional people with access to cleaner energy.

E+Co contends that surpassing this threshold will change ‘business as usual’ in energy supply in emerging markets in an unalterable way and pave the way for more mainstream players to pick up the market.

African Review of Business and Technology - November 2011

As a development finance expert, Van Aalst is motivated by the E+Co investment strategy – to invest in start-up and provide growth capital in small and growing energy businesses. Small and growing businesses fall in the “missing middle”– the space between microfinance and traditional commercial lending.

The business model works, according to Van Aalst, in the following way. “We start with capital investment. So if you are an enterprise with a plan, I assess you first.

If I don’t think you can run a company, we don’t go any further. If I think you can, but say, for example, you have never seen a computer programme to do modeling, that doesn’t say that we can’t invest in you or your company or your plan.

“Obviously for a start up company, or for a first time entrepreneur in a technology that has never been applied before in your

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POWER

Renewables made, is that the actual risk of an investment in Africa is no higher or different from that of investments we have made in Asia or in Latin America.

“What is different is the time spent on a deal – in finding it, in growing it, in managing it, is much more intensive.

Another thing that emerged is that for those enterprises to provide energy services, they needed both capital and capacity building. And that’s our formula, to provide both services and capital to energy entrepreneurs for them to have the ability to bring energy services to end users, whether those are consumers, industrial enterprises, hospitals, clinics or schools.” Reassuringly, E+Co covers a large portion of enterprise development services costs in Africa through contract revenues and grants rather than through the proceeds of its investments.

Africa-focused energy businesses can play a pivotal role in economic growth

country, it’s a different set of challenges than if you’re a seasoned entrepreneur in a mature market place with technology that is easy to assess.

“So the skill to finding successful investment starts with how we assess the entrepreneur. And depending on where they are, meaning geographically, dictates how we can move on. So that’s number one. Then there is a whole range of conditions such as whether it is sustainable or clean energy, like LPG and the rest. And it has to be a scaleable business model once you spend as much time as we do. If we invest $50,000, there’s no way you can return the costs unless the company grows at the end of the day. And it has to meet the energy needs in a specific country.”

Employing a belt and braces approach to investment decisions, E+Co”s investments are all analysed and approved by an independent investment committee comprised of experts in the areas of

42

finance, international development and clean energy technology.

Africa’s unique challenges Africa does present a unique set of circumstances for E+Co to manage, according to Van Aalst. As is the case in most, if not all, developing countries, Africa focused energy businesses can play a pivotal role in economic growth, but they are often hampered from being unable to access the finance they need to set up, sustain or grow their operations. That is where E+Co comes in. Its strategy is to invest the capital needed by clean energy businesses as well as the business support needed to mitigate the risk of default.

Van Aalst is, however, quick to point out that Africa carries no greater investment risk than any other developing region. “It’s not that Africa is lagging behind or anything, that is not our perspective. What we see from analysing our portfolio, across the almost 300 investments that we have

African Review of Business and Technology - November 2011

Measuring the impact To calculate the return on investment, E+Co measures its clean energy investments across 34 social, environmental and financial indicators but it is access to energy, and the actual benefits that the energy use is opening up, that is E+Co’s key criteria. “The technology needs to be clean,” Van Aalst explains, “and there is a whole list of other conditions like no child labor, no corruption, and the obvious World Bank related contract conditions as the DFIs are key investors.

“But job creation, for example, is not a key element but might be part of our tradeoff. If we’re considering two otherwise equally attractive deals, as we have limited resources, the one that creates more jobs might be more relevant to us, but it is not something we’re looking for from the outset.”

There is little doubt that E+Co’s activities have been catalytic in stimulating clean energy markets across Africa and the rest of the developing world. In Africa it works in Ghana, Mali, Senegal, South Africa, Tanzania, , and Uganda.

Thus far, E+Co has made nearly 300 investments in Africa, Asia and Latin America, that serve more than 6m people.

E+Co expects that the deal size in Africa will increase substantially since it sees growing opportunities for its traditional portfolio (solar, LPG, cookstoves) and an emerging market for project financing in small hydropower and grid connected biogas.

This will lead to a significant increase of the number of people benefiting from access to energy and a further proof of the important role for the private sector in sustainable energy supply in Africa. ■

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EQUIPMENT

Power Wärtsilä engines run over three million hours

W

ärtsilä’s dual-fuel engines recently exceeded three million running hours in both land-based and marine applications.

This milestone represents a dual-fuel technology track record that cannot be matched by any other engine manufacturer.

Wärtsilä, which specialises in complete lifecycle power solutions for the marine and energy markets, is the recognised frontrunner in dual-fuel engine technology. The Wärtsilä DF engine series is

The Wärtsilä 34DF engine

increasingly the power solution choice for utilities and energy companies, as well as for all segments of the marine industry, worldwide. With the engines having passed 3 million hours of reliable and efficient operation, the effectiveness of this technology is proven. Today, the total number of Wärtsilä DF engines delivered to both marine and land-based applications is 470.

Dual-fuel engine technology provides the flexibility to switch between the use of natural gas and heavy fuel oil (HFO), light fuel oil (LFO) and various other liquid fuels. This flexibility in fuel choice offers numerous tangible benefits, both economic and environmental. With oil prices fluctuating and environmental regulations becoming increasingly stringent, the operator has the freedom to select the most cost-effective and readily available fuel, whilst also having the ability to utilize natural gas in order to comply with emission limitations.

African Review of Business and Technology - November 2011

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CONSTRUCTION

Concrete

Building prosperity How a Canadian invention could steer a new development boom across the continent

Y

ou might think that concrete, the world's largest industry, one that produces some 20,000mn tonnes of product every year and has been around for at least a couple of millennia, would have seen and developed just about everything imaginable. But when Gary Troke, an industrial designer and inventor from Canada, started thinking of ways to complete a personal project, he hit upon a revolutionary new concept, one that may very well change the way housing and infrastructure is built in Africa and beyond.

features that could have a significant impact on build projects throughout Africa; its ability to manufacture practically any concrete product, from stamping out pave stones and bricks and pouring foundations and curbs to pressing hollow blocks and even roof tiles; the second point is portability. The factories are trailer-mounted and towable, so they can be brought directly to the work site behind a truck or delivered by barge.

“What really defines Stonemaker is not

Within the industry there are two basic variants of concrete used; wet or ready mix, which is used for pouring foundations, support columns, or anywhere that concrete needs to flow into cavities or be pumped.

The other is known as dry mix, used for manufacturing blocks, bricks, stones, pavers, etc. Dry mix, as the name suggests, utilizes little water and when formed in a compression chamber, produces a very durable product at a quickened cure rate. To switch from production of one to the other,

The costs driving research It started in 2002 when Troke wanted to enhance a property he had just developed with pave stones, retaining walls and other concrete products.

“When I was told that some items were not commercially available, and what I could get would cost over a quarter of a million dollars, I was astonished,” says Troke, 65. “I knew that basic concrete is made from portland cement, sand and water and that this formula employed by the Romans some 2,000 years ago hadn't changed much since.”

So why the high cost?

With a little research he discovered that materials typically make up only about 10 per cent of a product's price. The greatest expense lies in the high capital costs of constructing and operating a concrete processing mill and then the transportation of finished products to the job site. So Troke, with a keen sense of the practical, and experience with such diverse undertakings such as uncluttering choked waterways in Africa, textile processes in Egypt and designing commercial display systems for North America, got down to the business of developing what has come to be known as Stonemaker.

Innovation and ingredients for industry Begun as a means to produce 8 inch square concrete stones in high volume, it has over the course of nine years been continuously developed and refined to the point where it is now a portable, completely self-contained concrete factory. Stonemaker has two main

44

G. R. Troke, Inventor/Builder, Stonemaker

only its ability to go anywhere you can take a truck, but the range of products it produces once it's there,” says Troke. “The only things you need to bring to a job site is cement powder and diesel fuel to run the power plant. The other requirements are normally already on site.”

Concrete is produced by combining three base ingredients; aggregate (sand and/or stone), cement powder (commonly referred to as portland) and water, which acts as a catalyst between the aggregate and portland and allows them to bind together, providing hardened products.

African Review of Business and Technology - November 2011

you adjust the amount of portland, water and possibly the aggregate size. Until now, each production type was distinct and normally produced at separate facilities.

“We've brought them together and allow the user to change from one production type to the other in seconds by simply adjusting the ingredient inputs via factory control panel.

Ultimately, what we wanted to offer was the capacity to produce differing sizes of solid blocks or bricks with the dry mix, be able to switch over to pouring for a foundation with wet mix or over to hollow block manufacturing, all with minimal disruption in

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CONSTRUCTION

Concrete

the production cycle. It was a tremendous challenge, but these are the needs on practically any build site, you have to have all the capabilities or you're just a niche product,” says Troke.

The concept has won not only critical acclaim, but recognition for innovation.

“When we had the attorneys conduct a global search of its patentability, we were amazed with the results,” says Troke. The search conducted in 2009 by Canada's top patent agents, Gowling, Henderson and Lafleur, revealed that not only did they have 57 claims to originality, but that they would receive a concept patent in all 141 countries that are members of the World Intellectual Property Organization.

“A concept patent is the holy grail of patents, and one of extremely high value,” adds Troke.

Either of the two current factory configurations; one of which is higher volume and more computerized, manufactures products as structurally sound as those from established mills.

“Ingredient and mix consistency are essential where building standards are to be maintained,” says Troke.

“Preparing concrete is like preparing any recipe,” he says. “If you don't use the right amount of ingredients and if they aren't mixed properly, you are not going to get the best results.”

To ensure standards can be met and maintained, Stonemakers include a test mechanism on each factory so products can be tested before being applied.

“Currently it can take a week or more to send samples out and get results back, remote locations can offer even more protracted result time and this invariably adds to job costs,” says Troke.

The company signed off on field testing several months ago and is now beginning the domestication phase of the patents within WIPO member states. This allows commercial application to get underway in North America and abroad.

Although the company has just

commenced marketing/sales, word is beginning to spread.

“We've held preliminary discussions about emergency relief assistance, military application and a whole host of needs. We view developing nations, and Africa in particular, as a very important element in our overall corporate strategy. Our plans are to begin licensing agreements and joint venture partnerships across Africa beginning later this year, ” says Troke.

“Not only do we see thousands of factories being applied commercially, but we'll be partnering with governments and NGOs to help facilitate Low Cost Housing Units (LCHUs) and infrastructure builds where it wasn't feasible before.”

Stonemaker at the centre of production According to United Nations estimates, there are currently more than one billion people worldwide with either inadequate housing or no housing at all. Additionally, the UN calls for the construction of some 21mn LCHUs every year for the foreseeable future.

“In the developed world, we see Stonemaker's factories as being used for somewhat different purposes than developing nations, but there are many similarities. Lowering build costs is a major concern anywhere,” says Troke. “Not only do we reduce product costs by some 85 per cent, but Stonemaker factories are used as a means to customize projects and allow tailoring builds to customer demand. The same thing applies in developing nations.

Individualizing projects will play an ever increasing role and allow the factories to move to production of higher value products over time.”

While visiting Stonemaker's world headquarters, Mr Steve Fitzgibbon commented that “Stonemaker will be a game changer throughout the developing world”. Mr Fitzgibbon is a director of BAM International and is currently involved in the reconstruction of Haiti and development in Ghana.

Initially, the company will build

The DM-150 building a Luxury home

Stonemaker factories at its production centre in Perth, Canada and ship via container to their final destinations. Research and development and operational training will initially take place in Canada as well.

Eventually, the company would like to see manufacturing and more technical responsibilities take place in Africa.

“We view ourselves as a technology and licensing organization and want the factories locally made wherever practical. Our plans are completely in sync with the UN's call for more manufacturing across Africa,” says Troke. “We've spent three years doing developmental work on Stonemaker in Egypt and indeed, some of the components are sourced there. Africa provides great opportunities from all standpoints.”

Though the concept was originally intended for American and European markets, Troke says the more they studied it, the more they realized the possibilities for application in the developing world. There are numerous factors, he states.

“In most cases there is limited or no access to building supply centres and even if there was, holding the massive amounts of inventory that a portable factory is capable of producing would render the products cost prohibitive outside most urban settings. We aim to make procurement and transportation a less significant factor in build projects and bring the costs down by an average of 70 per cent in the developing world.” Additionally, Troke says Stonemaker's low capital cost makes financing feasible and not requiring site impact or environmental assessments makes the paper work much easier.

“Though we recognize challenges still need to be overcome, the technology is now both affordable and available. By working with local partners, we intend to play a major role in developing Africa's housing and infrastructure,” Troke says. “It is a concept that's time has come and one that's worth building on.” ■ Starr Marks - Stonemaker, Inc.

The DM-185 stabilized for production

For more information visit www.stonemaker.com

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African Review of Business and Technology - November 2011

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FEATURE

Nigeria

Better quality, enhanced skills The Nigerian government is urged to encourage and explore innovative ways of building

A spotlight on the fundamentals underpinning recent growth in Nigeria’s construction industry

A

ima Lijadu is a self-employed qualified Architect. She has run Archimage Design Consultants since 1999. Archimage is an architectural firm specialising in commercial projects for corporates. Aima generously shared her view of the fundamentals and prospects of the Nigerian construction industry with African Review of Business and Technology.

A benchmark for growth The Nigerian construction market is among the largest construction markets in Africa and has seen really impressive growth over the last decade particularly in the last few years. The Abuja phenomenon is a good benchmark, which we can use to depict the opportunity. Abuja, the capital city of the Federal Republic of Nigeria, has seen rapid development. There is so much energy being pumped into the Federal Capital territory that you will find new developments every six months you visit Abuja. People are constantly moving to

48

Abuja looking to settle, and so employment and housing are key focus areas. The pulse of Abuja has led to so many new interesting patterns of life evolving. As we speak, the project to widen the expressway from the airport to the main city is in top gear. This project has come about in a bid to cope with the much increased flow of traffic into Abuja.

The government is proactively meeting this demand by creating this massive linked, multiple lane expressway. There is a strong political will behind Abuja. The fact that all the government offices moved to Abuja, thus making Abuja the political capital of the country means that Abuja would develop speedily. The month that the final move occurred, traffic in Lagos was visibly lighter. On the flip side this sudden influx of Government workers created an enormous demand for housing which in turn triggered hasty development. Some of which were substandard, however today standards are gradually improving.

African Review of Business and Technology - November 2011

The Nigerian construction industry has been developed along certain lines. The formal, vis-à-vis informal construction companies. The former are the organised outfits like Julius Berger, a medium-sized German company which grew its bottom line tremendously by penetrating the Nigerian market. The latter companies are the local builders; freelance masons aka direct labor etc. Another noticeable line is the alignment of foreign and local construction companies. In recent years we have seen an upsurge of extremely well run construction companies by indigenous Nigerian contractors whose standards are at par with the foreign construction firms. We can consider local construction companies like Brickhouse, Interkel and Kaiser Construction which are run by Nigerians. The Brickhouse team are very focused on delivering high standards and they pay due attention to detail.

Working with them on projects, you get from them a strong sense of a “can do” attitude. To achieve high standards in

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FEATURE

Nigeria

construction, requires a clear vision, an effective and efficient leadership to be able to surmount the problems in the Nigerian environment. Brickhouse is a two man partnership who is very disciplined and supportive of each other. All the benefits of synergy are clearly enjoyed by the partnership.

Interkel is also a construction company which has grown in leaps and bounds with a very adaptable approach to servicing it’s clients.

The need for standards The quality of available infrastructure is varied. This vagary in the standard of delivered projects is a general problem. It is quite common to hear those who have had houses built comment that the experience was so torturous that they will not do it again. Some say if there is a next time, they would rather buy from a developer, a ready built home. It requires a high level of determination to execute projects to a high standard in Nigeria.

There needs to be enabling environments to help the construction industry in Nigeria reach the level where it should be at this time.

The lack of infrastructure in terms of the non-availability of good roads, a non-existent rail network to serve the country has hampered investments. Aima remembers the bright lights bigger city syndrome from her geography studies in the UK. Migrants move into cities like Lagos attracted by the promising work prospects, but sadly all too often, end up living in squalid and substandard accommodation owned by unscrupulous landlords. This has led to some Lagos residents building their own improvised accommodation in areas like the Oniru strip along the Lekki axis. Homes constructed from sticks as the frame work with thick plastic as the protection from the elements. The mind can only boggle at what these residents went through during the recent unprecedented rainfall a few months ago. With better infrastructure and investments in transport, people would move from their homes to their places of work with ease and their local areas will be more developed.

In France, the system of development is such as each area has the basic amenities in place ie hospitals, schools, recreations, shops, etc. There is much scope in Nigeria to make each area self-sufficient to a certain degree.

There should be investments in each area so that you don’t have that flight from rural areas to cities that has become all too common.

Looking ahead The future is very bright for the Nigerian construction sector. Nigeria has a huge population so the case for a growing demand is strong. It is a question of positioning and having the right political will. Government investing in infrastructure for transportation is a key necessity for this sector. As the saying goes, build and they will come. Once the government builds roads and rail networks, development will follow. It is a natural spur.

We have seen this work with the ever expanding Federal Capital Abuja.

It is a commonly-held view that the Nigerian government needs to play a key role in adopting the right policies, providing better transportation and designing a master plan for development which dovetails with the construction industry. This master plan would include a plan for urbanisation and rural development. Achieving all of this would result in a higher quality of life for all Nigerians. ■ Omowunmi Awomolo

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African Review of Business and Technology - November 2011

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CONSTRUCTION

An underground team E

lectrical, Control and Instrumentation (EC&I) construction in the underground mining environment faces a number of challenges unique to those who seek the opportunity to take power and its control and monitoring equipment to the rock face. To cope effectively with the multiple risks and hazards of EC&I construction underground, Wade Walker is reframing the way it assembles specialist skills and knowledge for every aspect of delivering projects in that environment, to become the preferred partner in the underground mining industry. Flexibility is maintained to fall in line with client practice, without compromising on Wade Walker’s own values, principles and standards.”

The importance of planning Smooth and seamless construction underground can only be ensured by carefully

A typical example of electrical, control and instrumentation (EC&I) construction work in underground mining

planning to deliver material and equipment in time, without handling damage.

“Because we have a thorough grasp of shaft and slinging size constraints and schedules, we

are able to prepare cable and switchgear for optimum safety when slinging and handling onto underground stations. Material procurement and underground transfers are planned well in advance, with equipment all correctly labelled for the right destination and since we develop a relationship of trust and understanding with shaft operating personnel, we are able to work closely with them, without errors arising from miscommunication.”

Expertise gained in the mining industry throughout Africa is brought to bear on each specific project, implementing global best practices and best practice business systems tools. With sister companies in Murray & Roberts breaking over a million tons of rock per month, Wade Walker has instant access to a wealth of related expertise. ■ www.wadewalker.co.za

African Review of Business and Technology - November 2011

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CONSTRUCTION

Zambia

Zambia’s new roads T

he Development Bank of Southern Africa (DBSA) released $71mn recently to Zambia’s National Road Fund Agency (NRFA) to finance the upgrading of five major roads in the country. The amount was part of the $262mn DBSA has loaned the Agency for works on five priority roads: Chipata–Lundazi, Kalulushi–Lufwanyama, Kabompo–Chavuma, Mumbwa–Landless Corner, and Senanga– Sesheke. Three of these form part of the Trans-African Highways route running from Cape Town to the DRC’s Katanga Province Roads to economic growth Through the development of road infrastructure in Zambia, areas of high economic potential normally out of reach, would become accessible and attract potential investors in agriculture, mining, tourism in addition to unlocking other opportunities for industrial developments.

These road projects, under the DBSA loan agreement, link up parts of Eastern, Western,

52

Zambian roads are important economic links

North-Western and Southern Zambia to the western side of the North – South Corridor, thus opening up more economic trade with Angola, Botswana, DRC, Malawi, South Africa, Namibia and Zimbabwe.

In Western Province, the road project under construction was the 221km Senanga– Sesheke road, with a contract sum of ZMK780bn (about US$157mn).

“This road project forms a vital link in respect of shortening the distance between Lubambashi and Walvis Bay via Solwezi,

African Review of Business and Technology - November 2011

Mongu and Katima Mulilo. In North – Western Province, the road project is the 239 km Kabompo–Chavuma road at an estimated cost of ZMK 290bn,[US$58.5mn]” , he pointed out.

In Central Province, the selected road project was the 115- km stretch of the Mumbwa–Landless Corner which was being upgraded to paved road at a cost of ZMK 180bn (US$36.3mn).

On the Copperbelt, the road project to be paved was the 60 km of the Kalulushi – Lufwanyama road (yet to be contracted) at an estimated cost of ZMK 130bn while in Eastern Province, it was the upgrading of the remaining 91km of the Chipata – Lundazi road and 15km of selected urban roads in Lundazi at a cost of ZMK 97bn (US$19.5mn).

Zambia was a key transit country in the North - South Corridor, as it sits in between borders of eight countries in the region. ■ Nawa Mutumweno

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Kenya

CONSTRUCTION

Investors build in Kenya T

oday, the most accepted view in the real sector to overcome the current global economic crisis, is to increase export channels by doing export business with countries, particularly those with relatively lower foreign trade deficits - countries such as Kenya, the host nation for a Building Materials Exhibition taking place between 2 and 5 December 2011 in Nairobi.

Last year’s inaugural edition of Kenya Building Materials featured 50 exhibitors on a net area of 1,500 sqm and hosted 3.,200 visitors - mainly from Kenya, Uganda and Tanzania.

Exhibitors hailed from many sectors, including: construction; architecture and engineering consulting services; electricity; electrical and mechanical systems; decoration and interiors; integrated building The health of Kenya’s construction sector is systems; water technology and significant in geo-strategic as well as economic environment; air conditioning terms

and refrigeration; glass, wood and metal, marble; stone and machinery; bathrooms and ceramics; and landscape and gardening.

A centre for investment in construction As the finance, communications and transportation centre of a region with 430mn consumers, Kenya is significant in geo-strategic terms, and is regarded as a natural attraction center for investors. In this context, many international companies have selected Kenya as their regional centre for East Africa - and, hence there is a robust private sector consisting of a large number of foreign investors.

Improving the condition of slum areas, building houses suitable for low and middle income segments of the population and the production of construction materials are the fields with the strong investment opportunities. Constructing new rural and secondary roads and improving existing ones serving the country's major agricultural and industrial areas is of equal importance in terms of employment and development onjectives.

A good example of the benfits of investment in the region is seen in the construction of the Mombasa-Malaba-Busia highway, the so called “North Corridor”. With its great potential and the right business climate, this project has made Kenya an even more attractive business hub for the region and has strengthened the nation’s position within COMESA. ■

African Review of Business and Technology - November 2011

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CONSTRUCTION

Roads

Highways for heavy vehicles Cement acts as stabiliser for road projects in the South African province of Mpumalanga

A

friSam’s CEM 11 32.5BL cement has been specified for two contracts being undertaken by Stefanutti Stocks Roads and Earthworks on the busy N2 highway in Mpumalanga.

The cement produced by AfriSam’s Ulco plant in the Northern Cape best met the required C3 specifications in tests conducted at the on-site Civilab laboratory in terms of unconfined compressive strength (UCS), indirect tensile strength (ITS) and wet/dry durability (WDD).

The initial consumption of cement (ICC) tests were undertaken using samples provided by various cement suppliers at mix ratios between one per cent and six per cent with G5 aggregate supplied by Rietspruit Crushers, the stone supplier which is providing aggregate for both contracts. The laboratory recommended the use of CEM 11 32.5BL at a 2.5 per cent cement ratio.

“The tests indicated that the strength of the subbase layer with the alternative cements was too high for the amount of cement used, resulting in the layer being too rigid and therefore susceptible to

AfriSam CEM II being spread by hand on the N2 highway contract in Mpumalanga.

54

The StefStocks recycling machine on the N2 highway contract in Mpumalanga.

cracking. Although the competitive cement was cheaper, it did not perform to requirements,” says Richard Harrison, director of Stefanutti Stocks Roads and Earthworks.

Challenging contracts The first of the two contracts comprises of the rehabilitation of an 81- km stretch of the N2 highway from Piet Retief to Camden which is described as being in a fair to poor condition. Project completion date is October this year, 25 months after the contractors moved on site.

The second contract comprises the reconstruction of a 19 km stretch of road between Ermelo and Camden. The contract was awarded in August 2010 and is scheduled for completion in May 2012.

The contractors are working on half-road widths, with traffic control on both contracts to allow vehicles to continue using the N2 during construction.

Harrison comments, “Both contracts have proved challenging because of the

African Review of Business and Technology - November 2011

high volume of heavy trucks that use the route, including vehicles carrying coal to the Camden power station. Abnormal load vehicles transporting heavy mechanical and electrical equipment from the ports of Richards Bay and Durban also use the route because of the absence of obstacles such as overhead bridges.”

Much of the heavy equipment is destined for installation at power stations.

Eskom is contributing to the cost of the road works, which were contracted by the South African National Roads Agency (SANRAL).

In terms of the second contract on the 19-km stretch of the N2, the existing road layers are being milled off and stockpiled for reuse as selected layers. The two sub base layers of 150mm each are being reworked as one 300mm layer to the C3 sub base standard using CEM 11 as the stabiliser. Thereafter, a 150mm GI base is being laid followed by a 50mm continuously graded asphalt surfacing.

The contract includes the provision of

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Roads both east bound and west bound climbing lanes on steep slopes along the route as well as the widening of the road to three lanes at various points.

“The rehabilitation of the 81 km stretch of the N2 between Piet Retief and Camden carries a high volume of heavy trucks transporting timber and coal trucks using the route between the Driefontein Mine and the Panbult rail station. New mines closer to Ermelo are also using the road for the transportation of coal,” Harrison states.

Recycling machines capable of scarifying the existing two sub base layers to a depth of 300mm are being used in the rehabilitation project. Water is added automatically at the required moisture content of six per cent to the recycled material by the recycling machine.

Road rehabilitation

CONSTRUCTION

Harrison also mentions that they had to keep track of temperatures, particularly during this contract because of the water being added to the mix. No stabilisation shall be done with falling air temperatures when the air temperature falls below 70C, or during rising air temperatures, when the air temperature is below 30C. The contractors undertake rehabilitation of the road in work lots of an average 600 metre with continuous testing being undertaken to ensure that each subbase layer meets the required specifications. Civilab has set up laboratories on both project sites to undertake testing.

“We are pleased that AfriSam’s cement is recognised as being of such a high quality and with the oversight of the laboratories by the project consulting engineers, Stewart Scott International and Stefanutti Stocks, we believe that these two projects will meet the high standards set by SANRAL.” ■

One-stop-shop for construction

I

n its drive to become a one-stop shop, particularly in the field of road construction and rehabilitation, Bell Equipment is increasing its Bomag product offering to include the Bomag MPH 125 Soil Stabiliser/Asphalt Recycler as well as the Bomag BF 600 Paver/Finisher.

Bell Equipment’s Product Marketing Manager: Bomag, Sathie Chetty said, “These machines have been part of the Bomag stable for some time and were developed in cooperation with contractors around the world to allow Bomag’s engineers to develop the highest power, reliability and efficiency in these machines. The Government is making a huge drive to rehabilitate existing roads and build new ones so we saw this as an ideal opportunity to introduce these machines locally. Many of our South African roads are in desperate need of rehabilitation and soil stabilisation and we believe these machines are well suited for this work.”

The Bomag MPH 125 has been recently demonstrated and generated keen interest in the Tongaat and Verulam areas of KwaZulu-Natal pulverising old, damaged road surfaces and using foam bitumen technology for soil stabilisation for Milling Techniks.

“The MPH 125 can cut through the asphalt layer and sub base to a depth of 550mm as a recycler. This material can then be reused to construct a new base course by adding cement and/or foam bitumen or a bitumen emulsion,” said Chetty.

The ECOMODE machine management system, simultaneously makes intelligent use of power while reducing fuel consumption and environmental pollution.

African Review of Business and Technology - November 2011

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EQUIPMENT

Construction D&D introduces a better way to use STAG

S

tag Jointing Compound has been a household name in the plumbing industry for decades. An easy to apply paste, it is ideal for application by brush to thoroughly cleaned metal surfaces where threaded or flanged connections have to be sealed. It is distributed nationally by D&D Industrial through its re-sellers and its 5 sales outlets around the country.

Sealing of threaded water pipe connections are just one of the applications that STAG can handle. It has a wide field of applications on all types of flanged or screwed metal joints such as on petrol and diesel engines, gearboxes, oil immersed switches and transformers and on steam and oil pipe lines. It is resistant to liquefied petroleum gas (LPG) and battery acid. It has high electrical insulation properties and withstands pressure of up to 70 bar.

It has been used successfully on joints in contact with oil at 300 degrees Celsius.

It is particularly suitable for connections to instruments in an airline where the use of tape could result in pieces of the tape braking off and affecting the instruments.

In addition to the standard 500g container, STAG is now available in 400g tins with an applicator brush built into the lid. The smaller tin and the built in applicator makes it ideal for usage of small quantities at a time – there is no need to find a brush and having to clean it afterwards, and the tin remains tightly sealed as well so there is less waste. www.dowson.co.za

STAG has been distributed in South Africa by Dowson & Dobson Industrial for decades. It is widely used in the plumbing industry for sealing of threaded joints in pipe work for water and for steam. It is also suitable for sealing of flanged connections on petrol and diesel engines, gear boxes and oil immersed switches and transformers.”

Tandems under 1.8 tonnes Light Bomag tandem rollers in the under 1.8 tonnes class and actually the 5th generation of the BW 80 series is a continuation of the most successful series of rollers in the world. A total of six models are now available with operating weights of 1.5 tonnes – 1.7 tonnes, featuring a new design and powerful and proven KUBOTA engines. The result is a series created by customers for customers: users and hirers were involved at an early stage in the development process to ensure that the new models offer everything today's customers want.

The new Bomag “5” series rollers are designed for new construction and repairs on medium and small jobs. They feature outstanding manoeuvrability and “all-round visibility unequalled in this class" - original comments from a user who drove a machine early on. In particular, the deepset engine bonnet and set-back frame guarantee excellent visibility to the front and the bottom rim of the drum - without the driver having to shift his sitting position. Despite their compact dimensions, all models offer good operator space and leg room.

The new -5 generation of Bomag light tandems

The smart drive steering wheel and new dashboard

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New BW 100 ADM-5 tandem roller

African Review of Business and Technology - November 2011

www.bomag.com

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Zimbabwe

MINING

Rebuilding a nation with mineral wealth

Economic resurgence based on renewed investment prospects for mining operations in Zimbabwe formed the backdrop to a recent indaba held in Harare

T

he mining industry in Zimbabwe has been going through very interesting developments in recent years. The potential for profit is unparalled globally, with forecasted production growth rates of 44 per cent for 2011. Mining companies have made huge investments into their operations in the past 18 months.

The developments continue, with legislative amendments to the country’s Mining and Minerals Act, Indigenisation Regulations for the mining sector , the establishment of a Sovereign Fund and the drafting of a beneficiation policy. Such initiatives are but a few issues that have made the Zimbabwe Mining Indaba an invaluable forum for the global metals and mining and exploration industry to interact and cultivate long-term partnerships with mining stakeholders and investors.

Southern and East African region - including beneficiation, technology, health and safety,environmental issues, infrastructure, financing, smallscale operations and networking - with opportunities to meet potential partners and to identify financiers.

Prime Minister Tsvangirai addressed the Indaba two years ago with the promise of a conducive policy environment by mid 2010, that could see Zimbabwe's mineral sector attracting up to $16bn in exploration and mine development investment between 2011 and 2018, allied to the prospect of an increase in the nation’s GDP amounting to $3bn per annum. That possibility not only remains but is a stronger and more viable prospect than before. ■ Wallace Mawire

The prospects of development, and the possible returns on investment The Zimbabwe Mining Indaba provided a platform for exploration of mining and related opportunities in Zimbabwe and keeping abreast of the latest trends and developments in the country’s mining sector. It provided an opportunity for project owners to showcase their projects, and to ensure that their projects were on the radar of global investors. The event also allowed delegates to widen their network in this growing industry, with comprehensive business matchmaking sessions and

networking opportunities with global mining stakeholders and investors.

Delegates were kept informed of innovative technological solutions that could greatly enhance mining operations and safety. Held in Harare in September 2011, organised by South African firm Utho Capital in association with the Zimbabwean Ministry of Mines and Mining Development and the Chamber of Mines of Zimbabwe, highlighted several key issues affecting operations in the country and in across the African Review of Business and Technology - November 2011

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EQUIPMENT

Mining Doosan truck offers more performance

T

he new DA40 articulated dump truck ( ADT) from Doosan Infracore Construction Equipment offers increased engine power and torque, higher payloads, lower fuel consumption, enhanced operator comfort and faster travel speeds.

Incorporating over 40 years of expertise in the ADT market and using quality components from world-class suppliers such as Scania, ZF, NAF, Parker and Rexroth, the new Doosan ADTs are optimised for extreme off-road performance. The exceptionally flexible and agile undercarriage, which is designed to ensure that all 6 wheels are in permanent contact with the ground, means that Doosan trucks can operate on very rough and soft terrain on construction sites such as road projects and mass excavation, hauling as well as in mining and quarrying applications.

The new articulated dump trucks complement Doosan’s wide range of excavators and wheel loaders, allowing Doosan to offer a one-stop solution for equipment to excavate, load and transport all types of materials. All Doosan ADT and heavy equipment products are supported by flexible financing packages from Doosan Financial solutions, offering ‘tailormade’ solutions for purchasing Doosan products.

Handheld spectrometer offers speed, accuracy, and ease of use

With Spectro xSORT, operators don’t need to switch methods between metals or use complicated flushes or vacuum systems

Spectro Analytical Instruments, a supplier of analytical instruments for optical emission and XRF spectrometry, has introduced the Spectro xSORT handheld energy dispersive X-ray fluorescence (EDXRF) spectrometer. The new instrument comes in a smaller, lightweight

www.spectro.com/xsort

Dozing remote control system enhances operator safety Caterpillar’s Command for Dozing remote control system for Cat D10T and D11T Track-Type Tractors enables remote, line-of-sight operation using a portable console - allowing the equipment operator to stay out of hazardous areas, such as under highwalls, near slides or pushing to underground feeders in stockpiles. The system enables mining and bulk materials handling operations to work safely, productively and economically in a broad range of applications.

Command for Dozing differs from aftermarket addon systems, because it is fully integrated with the Caterpillar designed components, systems and electronic control modules (ECM) used on the D10T and D11T. Integration reduces complexity and cost and enables the system to deliver higher performance, better reliability, longer life and enhanced safety. The system also allows using autocarry and auto blade assist for high productivity.

The DA40 articulated dump truck

www.cat.com/miningtechnology

58

package that offers better analytical performance, and incorporates many exclusive new features.

The new xSORT is designed for highthroughput elemental testing and spectrochemical analysis of a wide range of metals and other materials in the field. Its speed, accuracy and ease of use has set new benchmarks for handheld spectrometric performance. Spectro xSORT is ideal for applications, including positive material identification (PMI) and environmental screening, recycling of alloys, precious metals, and aluminum, plus mining and compliance screening.

African Review of Business and Technology - November 2011

Caterpillar’s Command for Dozing is an integrated remote control system for Cat D10T and D11T tracktype tractors

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Apollo Infratech

SPONSOR

We sent Gandhi. Africa returned us the Mahatma.

I

nvesting and doing business with Africa has always been mutually beneficial and the ties go beyond just Mahatma Gandhi. Indians especially, we, the Gujaratis - have had trade ties with Africa for centuries including Kenya, Uganda, Zanzibar, South Africa and many more.

However, 21st century realities are different.

There is a new sense of urgency: as populations grow, the need for better infrastructure becomes even greater. Africa needs entire new logistics networks linking airports, railways and

Mitul Patel, MD at Apollo Infratech Pvt. Ltd., India

warehouses - and new dams and electricity grids to power them. Meanwhile, Africa’s growing cities need better water supplies and sanitation. The World Bank points out that even relatively prosperous African cities, such as Lagos and Nairobi need improvements.

That’s why India’s fastest growing concrete equipment manufacturer Apollo Infratech is all set to launch its series of machines that will address local requirements. Its state-of-the-art manufacturing facility is situated at a sprawling site of 42,000 sq m near the industrial hub of Ahmedabad, India. Apollo Infratech is equipped with the most modern and sophisticated factory set-up and design development facilities to produce high-quality concrete construction equipment.

Results are evident from the fact that Apollo product range has added one new product every quarter. Be it Concrete Batching Plants,

Transit Mixers, Concrete Pumps, pavers or related concrete equipment. The products are cost-effective, user-friendly and easy to maintain. Now, with a growing distribution and dealership network across India and abroad, all Apollo products are backed by strong after-sales services. In a nutshell, Africa is growing, the infrastructure companies are growing, and backbone companies like ours are going to play a major role in it. ■

The team at India’s fastest growing concrete equipment manufacturer, Apollo Infratech

African Review of Business and Technology - November 2011

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SOLUTIONS

Logistics Iveco delivers an international Daily

I

veco has launched the latest evolution of its proven light commercial vehicle range – already a popular choice with professional transport operators around the world.

In its latest form, New Daily retains its core qualities of strength, reliability, efficiency and versatility, whilst adding new high efficiency engines which offer more power, combined with refinements both economically and ecologically.

Taking pride of place in the range will be FPT Industrial’s new 3.0 litre Euro 5 diesel engine, which will introduce a class leading power output of 205 hp and a massive 470 Nm of torque. Key to providing high power and torque with low emissions and fuel consumption is the adoption of twin turbochargers – one compact turbo to provide rapid throttle response from a very low engine speed and a larger unit to deliver the engine’s maximum performance.

For New Daily models falling into the heavy duty category and all natural gas versions, the EEV (Enhanced Environmentally friendly Vehicle) certification remains, ensuring these models meet the most stringent European exhaust emission standard available.

Iveco’s new Daily retains its core qualities of strength, reliability, efficiency and versatility

For lighter models, the FPT Industrial 2.3 litre engine benefits from an increase in engine torque to 320 Nm and a new Multijet II multi-event fuel injection system that optimises the combustion process, bringing noteworthy benefits in terms of lower engine noise, fuel consumption and tailpipe emissions.

Tracking system for rail freight shipping Limco Logistics has been serving the freight industry for more than two decades and resolved to handle all import/export needs related to small as well as large scale business operations. Rail freight is the best option, which is the least expensive mode of transportation. Rail Freight uses multiple modes of shipping from origin to destination. In rail transportation, the company incorporates the use of special containers or trailers, which allow commodities to be moved directly from one mode of transportation to another. Rail freight is the most economical way to ship large and heavy freight.

Limco Logistics is one of the leading rail freight forwarder companies in the world that provides rail freight services from and to any point within the United States including Russia, Africa, Europe, & Canada. The company has no restrictions on size, location or destination. Limco is dedicated to deliver your cargo with a sophisticated tracking system to any point in Central Asia or Russia. The tracking system allows you to identify current location, direction and tracking speed of shipments.

Limco Logistics arranges all the necessary procedures and prepares the export documents concerned for your shipment needs. According to client’s request, the company provides containers and arranges shipment in time. Limco Logistics has been in the rail frieght business for more than 2 decades and has a perfect service network and strong ability to solve the problems that may occur during documentation or shipment process. Equipped with their own containers, Limco Logistics has excellent and professional staff with rich international logistics services experience. All these ensure the safe, efficient and perfect rail transportation service. www.limcologistics.com

How the Cloud makes business Virtual businesses are small operations that use technology to employ people to work from home meaning most human contact within the company is conducted remotely. Using a network of over 500 contractors across the globe, virtual business B2X Care Solutions co-ordinates and manages the remote repair of over 25mn items every year for consumer electronics, telecommunication and IT manufacturers. The key factor in B2X’s ability to remain virtual is its investment in developing a powerful, flexible and efficient cloud-based platform to run the logistics of providing after-sales services for its clients. While‘virtual business’ was the big enterprise buzzword ten years ago, the technology to effectively support and enable scalable virtual companies simply didn’t exist.

“Cloud computing is now robust and efficient enough to properly and securely support our operations,” said B2X CEO Karim Barkawi. “We’ve been fortunate to launch at a time when building scalable virtual organisations was a genuine possibility.

For our older competitors, the option simply wasn’t there.

“The biggest advantage is the cost-saving benefits our clients realise. We typically deliver 20-30 per cent savings on our clients’ warranty costs because we minimise our own overheads, and keep our operations super-lean and efficient.”

B2X’s ability to remain virtual is its investment in developing a powerful, flexible and efficient cloudbased platform to run the logistics of providing aftersales services for its clients”

www.iveco.com www.b2xcare.com

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EQUIPMENT/ CLASSIFIED

Advertiser’s Index Company ........................................................................Page Aggreko Middle East Ltd ....................................................................37 AKSA Jenerator Sanayi A.S. ................................................................43 AMDS Courier Services ........................................................................21 Apollo Infratech Pvt. Ltd ......................................................................29 Arik Air Limited........................................................................................15 Blue Ocean Technical Services Ltd ..................................................22 Champagne Laurent Perrier..................................................................2 Ciber Equipamentos Rodoviários Ltda...........................................45 Clarke Energy Ltd....................................................................................36 Claude Lyons Ltd ....................................................................................39 Cosben s.r.l. ..............................................................................................52 CWC Associates Ltd (NIC 2012) ........................................................41 Datacard Limited ....................................................................................28 Eaton Industries (France) SAS ............................................................64 Eko Hotel & Suites ..................................................................................61 ERL Marketing International ..............................................................63 First Forever Co Ltd ................................................................................51 Gedore Tools SA ......................................................................................57 GWE Pumpenboese GmbH ................................................................23 IIR Exhibitions (Africa Electricity 2011) ..........................................13 Industrial Machinery Export srl ........................................................62 Informa Telecoms & Media (AfricaCom 2011) ............................27 Interpower International Ltd..............................................................16 JCB Power Products ..............................................................................31 Jessop & Associates (Pty) Ltd ............................................................17 John Holt PLC ..........................................................................................35 K-Net Ltd. ..................................................................................................25 Komatsu ....................................................................................................47 Mahindra & Mahindra Ltd. ....................................................................9 Metalgalante-Carmix ............................................................................50 Nigeria Gas & Steel Ltd ........................................................................55 Oilways Logistics & Energy Ltd..........................................................20 Palacina Residence & Suites ..............................................................59 Powerlink Machine (Shanghai) Co., Ltd. ........................................38 Remco Ruimtebouw BV ......................................................................53 SDMO Industries ....................................................................................33 Shandong Shantui Construction Machinery ..............................11 SOILMEC SpA ..........................................................................................49 Stonemaker Management, Inc. ........................................................19 Volvo Construction Equipment Int.....................................................5 Volvo Penta International ......................................................................7

Affordable quality printers Three compact monochrome Xerox laser printers from Bytes Document Solutions, authorised Xerox distributor to 27 sub-Saharan countries, bring affordable productivity and performance to network printing. The Xerox Phaser 3155, 3160B, and 3160N black-andwhite laser printers produce 24 pages per The Xerox Phaser 3155 minute and offer quality output, reliable operations and a deep feature set for printing in small businesses, home offices and personal use.

“These three new Phaser printers provide a range of options for highperformance, all-purpose printing at entry-level prices,” says Ernest Leong, product manager of office printing business at Bytes Document Solutions.

All three models provide best-in-class monthly duty cycles - 12,000 prints for the Phaser 3155, and 15 000 for the two Phaser 3160 models - to meet the daily printing needs of busy work teams. Yet, each is also physically suited to serve as a personal or shared printer, with low noise levels and a compact footprint to fit easily on a desktop. To meet a wide range of printing needs, the three models offer choices in their connectivity, image resolutions and controllers. www.bytesdocumentsolutions.co.za

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S08 ATR NOV 2011 mining _Layout 1 24/10/2011 18:25 Page 64

In 2011, Eaton celebrates its 100th anniversary and a heritage of innovation and expertise that has positioned the company to answer some of the world’s toughest power management challenges.

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