African Review October 2013 by Alain Charles Publishing

ATR Oct 2013 Cover_Layout 1 20/09/2013 16:14 Page 1

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Europe â&#x201A;Ź10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK ÂŁ7, USA $12

October 2013

African Review of Business and Technology

P56

October 2013

High voltage hybrid power technology

P39 Volume 47 Number 28

Markets and money in

diesel and gas

generators www.africanreview.com

Mo Abudu, broadcaster and founder of EbonyLife TV P38

Power:

Construction:

Mining:

Reviewing renewable energy systems P48

Chemicals for East African constructors P66

The business in materials handling P72

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UP FRONT

Editor’s Note

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

October 2013

P56

High voltage hybrid power technology

here is an appraisal of investment in African water on page 24, and a look at South Africa’s next generation of business-types and workers on page 26, followed by investment in prvate sector energy in Nigeria on page 30. In Kenya, there has been dynamic performance amongst financial institutions, which is covered on page 32. Corporate finance and mining in South Africa are highlighted on page 34, and social media in the financial sector is promoted on page 36. Insights into high definition Nigerian entertainment are offered on page 38. The market conditions for generator manufacturers are analysed on pages 39-46, followed by solar power implementation. Analyses here are complemented by previews of two key events, Power Nigeria and Africa Electricity, on pages 54 and 55. There follows, then, an overview of hybrid circuitry for energy transmission on page 56. Construction is covered by analysis of concrete usage in Tanzania on page 58, and also of industrial flooring on page 62. How road building can reduce rural poverty is shown on page 63. The use of chemical solutions for construction projects in East Africa is assessed on page 66, and the building of a solar power plant in South Africa features on page 68. There is a preview of a key event in the sector, CONEXPO-CON/AGG, on page 70. Following this is an understanding of developments in materials handling for mining operations for page 72.

P39

Markets and money in

diesel and gas

generators Mo Abudu, broadcaster and founder of EbonyLife TV P38

Power:

Construction:

Mining:

Reviewing renewable energy systems P48

Chemicals for East African constructors P66

The business in materials handling P72

Main cover picture: Filter Focus Inset, bottom left: EbonyLife Inset, top right: ABB

Andrew Croft, Managing Editor

Contents

REGULARS 04 Agenda:

14 Bulletin:

Commercial matters across the continent

73 Solutions:

Trade, engineering and agribusiness initiatives

Products for safety, technology, and industry

P34 FEATURES 24 Economy Indian investment in the continent’s water infrastructure; South Africa’s aspirational generation; and energy investment in Nigeria

32 Finance and Technology High performance in Kenyan banking; investment in South African mining; social media and the financial sector; and high definition solutions for Nigerian entertainment

P62

39 Power Analysis of recent market performance for diesel and gas generator manufacturers; solar power across the continent; advance appraisals of both Power Nigeria and Africa Electricity; and a celebration of hybrid circuitry

58 Construction and Mining Concrete business in Tanzania; floor grating for industrial applications; road building to reduce rural poverty; a key equipment company at bauma Africa; chemical solutions for East African constructors; building a solar power plant in South Africa; looking ahead to CONEXPOCON/AGG; and materials handling machines for miners

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African Review of Business and Technology - October 2013

S01 ATR Oct 2013 Start_Layout 1 20/09/2013 14:38 Page 4

NEWS

Agenda / North Liberia and AfDB presidents set a new plan for prosperity Ellen Johnson Sirleaf, President of Liberia, and Donald Kaberuka, president of the African Development Bank Group (AfDB), launched a special high-level panel on fragile states in Monrovia on 2 September 2013. The panel seeks to answer the question, “How can we truly build peace and set a course for prosperity in Africa’s fragile states?”. Conflict and fragility are major constraints to Africa’s development. While the African continent generally has enjoyed an economic growth rate of five per cent over the last decade, fragile countries and those in conflict have not benefitted. Globally, GDP per capita is US$945, but in fragile states, it hovers at only about a third of that, around US$333. Addressing this challenge is a top priority for the AfDB. “With the help of President Ellen Johnson Sirleaf and a group of experts, we are crafting a new approach to help such countries to recover much faster and to minimize the impact on the neighbourhood,” said Kaberuka.

Syphax signs for the Neo

Syphax Airlines will take delivery of three A320neo aircraft

The Tunisian air operator Syphax Airlines is awaiting delivery of three A320neo and three A320ceo aircraft. It is the first Africanbased carrier to order the NEO, which is manufactured by Airbus. The aircraft will be powered by CFM engines. “Syphax Airlines is focused on continuing to grow its Tunisian, North Africa and Europe routes, and an expansion of its network to Asia and North America, through its hubs in Tunis and Sfax while offering passengers a luxurious service,” said Syphax chairman and director general, Mohamed Frikha. “Adding the A320neo to our fleet means we can achieve all of these goals while benefitting from a 15 per cent fuel saving and cost effectiveness.”

“We’re looking forward to seeing Syphax’s A320neo aircraft operating seamlessly alongside their current A320 fleet, delivering to them savings through reduced maintenance and pilot training costs as a result of the high degree of commonality between the aircraft models,” said John Leahy, chief operating officer, customers, at Airbus. Syphax already operates two A319 and three A320 aircraft as well as a leased A330-200. The A320neo is offered as an option for the A320 Family and incorporates new, more efficient engines and large "Sharklet" wing tip devices, which together will deliver up to 15 per cent in fuel savings.

African Review of Business and Technology - October 2013

Al Abbas expands logistics network

l Abbas Transport has expanded its logistics network with the addition of its latest route between Egypt’s Erqan and Sudan’s Khartoum. Al Abbas’ new route coincides with the opening of the EgyptSudan overland link connecting Erqan to Sudan’s northern city of Dongola. The project is being implemented by Agrojet, a consortium of companies including Sudan’s El Zawaya and Khartoum Group for Roads and Bridges, Asfour Crystal’s Shatat Group of Investments in Egypt and Saudi Arabia’s Cardoba and Radwa Groups. Commenting on the announcement, Mohamed Atta Gad, chairman and managing director of Al Abbas Transport, said, “Al Abbas Transport has seen cargo volumes to Sudan rise in the past year, reflecting the increased trade between Egypt and Sudan and prompting us to add a new transport route. The new road connecting southern Egypt and Northern Sudan is also a testament to the stronger ties between our two countries. To expand our logistics network and be the first company to inaugurate such a breakthrough transport route is something we are proud to do.” The new Erqan to Dongola route is approximately 362km and opens up unprecedented access to Northern Sudan. The road was completed in co-operation and common development between the governorates of South Egypt and North Sudan with a total investment of US$150mn under a Build Operate Transfer accord in order to encourage trade between the two countries.

Mohamed Atta, chairman & managing director, Al Abbas Transport www.africanreview.com

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NEWS

Agenda / East Calls against counterfeit goods Ugandan government officials have expressed concern about the importation of fake goods from China, which they believe are affecting public health and safety and the environment. Uganda has become a hub for substandard goods in the East African Community (EAC) region. According to Uganda’s minister of trade and industry, Amelia Kyabadde, substandard goods have caused a huge impact on the health and safety of Ugandan consumers. He attributes the products to, amongst other things, increased fire outbreaks in homes and schools (for example, because of fake electrical wires). The impact has affected industrial programmes, too. “In fact, our president, who is currently holding the chairmanship of EAC, has received enormous pressure from regional leaders and investors to stop substandard and counterfeit products, which discourage investment and fair trade in the region,” said the minister. There is strong imperative for change - EAC countries are preparing to move into the monetary union and political union. The Ugandan government, through the Uganda National Bureau of Standards (UNBS), has implemented the Pre-Export Verification of Conformity to Standards (PIVOC) programme in an effort to ensure quality products on the Ugandan market. The PIVOC programme is to be implemented by foreign companies. The list of high risk products include food products and beverages, electrical and electronic products,

cosmetics, mosquito nets, toys and used motor vehicles (from Japan) among others. Kyabadde said the Consumer Protection Bill will be tabled in Parliament for approval. She said, also, that the government must come up with consumer protection policies because livestock and human beings are at the great risk from counterfeit products on the market. The Bill proposes strong penalties to those engaging in manufacturing and trading in counterfeits and sub-standard goods which has turned the Ugandan market into a dumping area in the region. “This big market is for everybody, but what we need is to maintain standards to compete. Manufacturers need to research and encourage quality driven production rather than market driven production,” she noted. Spokesperson of the Kampala City Traders Association (KACITA), Issa Ssekito, said, “Quality is a concern to all of us and we are very supportive to any effort aimed at improving quality. In fact, the KACITA Quality Awards is one of our cherished ongoing programmes, which we jointly implement with UNBS, the Private Sector Foundation (PSFU) and Ministry of Trade to fight the menace. We are consumers ourselves and the harmful effect of substandard goods affects us and our families. When we stock substandard goods, we lose market and in turn lose capital.” Moses Kalisa Seruwagi

A new berth for Mombasa port

US$66.7mn berth has been opened at the Port of Mombasa increasing the cargo handling capacity from the current 250,000 containers to over 450,000 a year. This is just half of the regional demand of 900,000 containers. Built on a 15-acre plot of reclaimed land, the 240-metre long Berth 19 is the biggest in the East Africa seaboard. It will increase rail freight from the current four per cent to more than 50 per cent in couple of years, and also lower turnaround time for ships from its current 3.4 days. “This port is critical to our region’s development and commissioning of Berth 19 will improve receiving, processing and transporting cargo to customers in a timely fashion,“ asserted President Kenyatta during the opening ceremony, which was also attended by presidents of Uganda and Rwanda and officials from Burundi and South Sudan. Financed from Port proceeds, and constructed by the China Roads and Bridge

Corporation, the project took two years to complete. It is 13 metres deep and can handle the world’s largest ships. “There is a growing trend to larger container and bulk ships which increases the need for concentration at bigger and more specialized terminals. We constructed this new berth to provide a longer quay to handle such vessels,” said Gichiri Ndua, managing director of Kenya Ports Authority. Nations along the East Africa northern corridor, namely Kenya, Uganda, South Sudan , Rwanda and Burundi depend on the port for most of their imports and exports - making Mombasa the busiest in the East Africa coast. The expansion of ports such as Mombasa, Dar es Salaam and Mtwara and the building of new ones such as Lamu has become critical as economies of the East African Community (EAC) grow. Last year, the governments of Kenya, Ethiopia and South Sudan launched the Lamu Port-South Sudan Ethiopia Transport

African Review of Business and Technology - October 2013

Corridor (Lapsset), which will accelerate social and economic development in the region. The US$22.5bn project will see the development of the Lamu Port, 800km road system, a standard gauge railway, a 1,300km oil pipeline, an oil refinery and an airport. This infrastructure will open up northern Kenya and link Juba to Kenya’s port of Lamu, which is 242km north of Mombasa along the Indian Ocean, close to the Somali border. Upon completion of the port, Lamu will have 32 berths along a six-kilometre coastline. According to officials, the first three berths are expected to be built by 2016 and the rest by 2030. Financed by the African Development Bank (AfDB), the road is expected to increase transit cargo and boost intra-regional trade between Kenya, South Sudan and Ethiopia. The AfDB estimates that a total of 28.5mn people from the region will benefit from LAPSSET. Mwangi Mumero www.africanreview.com

S02 ATR Oct 2013 Agenda South West_Layout 1 19/09/2013 18:50 Page 7

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S02 ATR Oct 2013 Agenda South West_Layout 1 19/09/2013 18:50 Page 8

NEWS

Agenda / South SMEC helps Coca Cola create Africa’s “greenest bottling plant” Consultancy company SMEC South Africa has played a fundamental role in ensuring that Coca Cola has become the first company in Africa to obtain internationally-recognised Leadership in Energy and Environmental Design (LEED) Gold and Silver certification at its Valpré Water Bottling facility in Heidelberg, South Africa. “One of the unique innovations of the project design was to ensure that the facility blended in with the surrounding landscape. The roof sheeting The Valpré water bottling plant is claimed to be the colours were selected to have the highest possible “greenest bottling plant in Africa” SRI (solar reflectivity index). The aggregate for the concrete was also selected for its high refection value resulting in reduced heat gain in the building and minimizing the heat island effect,” explained SMEC South Africa technical director Gert Wentzel. The facility is located outside the urban footprint since it has to be close to the source; this, according to natural bottled water legislation. All the water used for the product and for domestic consumption is sourced from within the catchment area surrounding the facility. The fresh water management system is a closed system and all water used on site is treated and re-used. What’s more, all effluent that is generated on site is treated and re-used for service water purposes. In combination with the harvested rainwater, a sufficient amount of service water is generated to minimise extraction from the local resources. Wentzel pointed out that in order to reduce electricity consumption, the facility was designed to enable the maximum amount of natural sunlight to enter the building through the roof. A daylight study revealed that a castellated roof with both transparent and translucent sheeting was the best option for filtering natural light onto the floor space. The design and placement of electric lights internally and externally was done in an environmentally responsible manner, creating a comfortable working environment. Valpré plant manager Refentse Puso commented that the design has proven to be such a success that the main production floor now requires minimal electric lighting.This substantial reduction in electricity consumption has been further complemented by the use of the solar power plant and motion and daylight sensors. The solar power plant has been sized to generate enough power to fulfil the administration offices’ needs, which practically makes the office block a net-zero building. Having already obtained LEED Gold accreditation for the facility’s administrative block in July 2012, Valpré was then awarded LEED Silver accreditation for its bottling plant in May 2013. Puso said, “The administration building is the first in Africa and one of only one thousand worldwide to receive LEED Gold certification, which makes this project an environmental breakthrough locally.” The solar power plant has been sized to generate enough power to fulfil the administration offices’ needs

African Review of Business and Technology - October 2013

Promoting packaging at Africa’s Big Seven

frica is now a major player in the international packaging industry, both as a market and as a supplier. The number of packaging manufacturers exhibiting at this year’s Africa’s Big Seven (AB7), the continent’s biggest food and beverage expo, was the highest ever, indicating a strong trend of sustained and continuous growth in the sector. Top local and international packaging companies are using the vast networking and business opportunities provided by AB7 to tap into the lucrative and growing African market. “The booming African economy is fuelling the demand behind this phenomenal growth in Africa’s packaging Industry,” says AB7 organiser John Thomson of Exhibition Management Services. “Africa’s growing middle class consumer population is the driver for significant long-term potential growth, making the continent a priority market for many international packaging companies, especially in the plastics arena.” Over the past six years, the use of plastic packaging in Africa has grown by a massive 150 per cent, at a compound average annual growth rate (CAGR) of 8.7 per cent. “Plastics imports to Africa have grown by up to 40 per cent,” adds Thomson. “Industry analysts are predicting the use of plastics in East Africa alone will treble in the next five years.” Per capita plastic consumption in Kenya was just 10kg per annum in 2004; this is expected to double to 20kg by 2015 – still very low compared to some other countries in Africa. “Any company that wants to mount a campaign to access the African market can launch it at Africa’s Big Seven,” declares Thomson. “Over the last decade, AB7 has provided an unparallelled springboard for the food and beverage industry to explore Africa and the sheer growth in exhibitor numbers at this year’s show confirm this.” www.africanreview.com

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S02 ATR Oct 2013 Agenda South West_Layout 1 19/09/2013 18:50 Page 10

NEWS

Agenda / West Dangote completes construction of Africa’s biggest refinery Taking risk is not what many people desire - but the richest people in the world are known to be people who take risks and accept the consequences. From all ramifications, Aliko Dangote, president of Dangote Group, has proved to be a good risk taker, and that has reflected in the immense successes recorded in all his businesses. From almost nothing, he built an empire that can now compete favourably with the best in the world and his resolve to take risks propelled him to be among the richest people in the world. Dangote has committed a fresh round of investment into a new territory - the petrochemical and oil and gas refinery business. This is a terrain loathed by most investors, who at one time or another have been given licenses to commence business in that critical sector of the nation’s economy but have failed, citing the existing subsidy regime as the basis for their reluctance to put their license to use. Dangote has signed a US$3.30bn term loan with a local and international consortium of banks to finance the construction of petrochemical and petroleum refining plants. He is also going to finance an ongoing fertiliser plant from the fund. The total cost of the three projects is put at US$9bn. Dangote revealed that the contract for the refinery and petrochemical plant has been awarded to UOP, a subsidiary of Honeywell International, a Fortune 500 company and US-based conglomerate, which specialises in consumer products, engineering services and aerospace systems. The project manager for the refinery and petrochemical plant is India Engineers Limited, an Indian government-owned company credited with the setting up of refineries in India, while the contract for the fertiliser plant has been awarded to oil and gas contractor Saipem, a subsidiary of Italy’s Eni, which already has a presence in Nigeria. Dangote indicated that the fertiliser plant is designed with a capacity to produce 2.75mn million tons per annum (MTPA) of ammonia and urea; the refining plant has overall capacity 400,000 bpd and the petrochemical plant is set to produce polypropylene to the tune of 600,000 MTPA. The plants, he stated, will be the largest in Africa and have been designed to produce the Euro 5 quality standard as compared to the Euro 3 currently supplied in the Nigerian market. On completion, he said the refined product output would be gasoline (PMS) of 7.684mn MTPA; diesel of 5.30mn MTPA; jet fuel/kerosene of 3.740mn MTPA; LPG of 0.213mn MTPA; and slurry/fuel oil at 0.625mn MTPA.

Reef Subsea sails to Palanca Cable Vessels from Reef Subsea’s services division - from Bergen, Norway - have been supporting regional offshore contractor Stapem Offshore’s cable lay duties on Palanca Cable Lay Campaign in Angola. The Reef Despina joined its sister vessel, Reef Larissa, which transitted to West Africa earlier this year. The Reef Despina subsea construction vessel transitted to West Africa for a 30 day firm charter to provide operational support during the installation of five subsea electrical cables in water depths of between 40 and 100 metres. The Reef Larissa has been undertaking ROV & survey operations, structure installation and commissioning support on two projects for major oil & gas operators. Both vessels are designed for worldwide service and are outfitted with 150 tonne active heave compensated crane and two workclass Remotely Operated Vehicles (ROVs) capable of operation down to 3,000 metres.

African Review of Business and Technology - October 2013

US$419mn investment in Abidjan power plant, Côte d’Ivoire

merging Capital Partners (ECP), a panAfrican private equity firm, recently confirmed that CIPREL, a subsidiary of its portfolio company Finagestion, an African utility sector operating group, has secured a total €320mn (US$419.6mn) of debt funding to complete its gas and steam turbine expansion plans. This latest funding will be used specifically to fund an expansion project that will use heat recovery technology, converting part of the existing CIPREL gas turbines into combined cycle operation, and add 111MW of installed capacity via a steam turbine. It will enable CIPREL to generate an additional 800GWh/per annum of low-cost power without any incremental gas consumption or greenhouse gas emissions. As a result of the expansion, the total installed capacity of CIPREL will increase to 543MW – cementing its position as the largest power plant in Côte d’Ivoire and making it one of the most important power plants in the region. The additional power will improve access to electricity for Ivoirians, help meet increasing demand for electricity and sustain Côte d’Ivoire’s economic growth, and enable the country to meet its export objectives to neighboring countries in the sub-region. Commenting, Vincent Le Guennou, co-CEO of ECP and chairman of Finagestion, said, “This additional financing marks a critical milestone for both CIPREL and Côte d’Ivoire. CIPREL is on the path to becoming one of the largest Independent Power Producers in the region, with over half a billion US dollars of capital under deployment, and strong operational performance. As a result of this expansion project, CIPREL will have increased capacity by 333MW, enabling it to deliver affordable additional energy to Ivoirians, while simultaneously optimizing natural gas resources.” www.africanreview.com

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S03 ATR Oct 2013 Calendar Bulletin A_Layout 1 19/09/2013 20:09 Page 12

NEWS

Events / 2013 November

New video surveillance JD Consumer Finance Jasco Security has recently completed the installation and implementation of a turnkey, fully integrated video surveillance and security solution for JD Consumer Finance (PTY) Ltd, as part of the construction of new premises in Randburg, Johannesburg, South Africa. As a green-field site, the JD Consumer Finance JD Consumer Finance office block enabled Jasco Security to design a solution that precisely meets the needs of the currently partners with 12 customer, without the design and infrastructure of an existing building dictating retail brands, comprising a the technology that needed to be used footprint of 1,143 retail stores and 84 motor dealerships in its region(s) of operation. The new office block, necessary for JD Consumer Finance’s growing operations, consists of three basement levels and four floors of offices, with access ramps to link the original offices to the new office block, creating one campus.

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S03 ATR Oct 2013 Calendar Bulletin A_Layout 1 20/09/2013 14:22 Page 13

S03 ATR Oct 2013 Calendar Bulletin A_Layout 1 19/09/2013 20:09 Page 14

NEWS

Bulletin / Trade Structural shifts and policy changes needed

including Brazil, Germany, Ghana, Hong

Cooperation and Cross-Border Financial

Kong, Turkey, Ukraine and the US,

Transactions in Africa, with Relevant Law

To adjust to what now appears to be a

attending the massive show.

service’ recently, with CALI invited as special

structural crisis of the world economy,

guest - represented by its director of marketing, Wei Xuemin, who provided a

prevailing economic policy, according to

Africa’s Big Seven is bigger and better than before

the Trade and Development Report 2013

The continent’s biggest food and beverage

Investment Paradise in Africa’, which offered

(TDR13) - a study, subtitled ‘Adjusting to

expo, Africa’s Big Seven, ended this year

the Nigeria Lekki Free Trade Zone as an

the changing dynamics of the world

with record numbers of exhibitors and

example of sound investment in Africa,

economy’, which maintains developed

visitors arriving from Africa and all over

utilising the marketing environments of

countries must act more decisively to

the world - with no less than 268

Nigeria; following this, a round-table

address the fundamental causes of the

exhibitors setting up shop at Gallagher

conversation was held to discuss issues

crisis - in particular rising income

Convention Centre in Midrand,

associated with investing in Africa, with a

inequality, the diminishing economic role

Johannesburg, South Africa, a nine per

number of important enterprises in Wuhan

of the state, the predominant role of a

cent increase on 2012, displaying

city participating, including such as China

poorly regulated financial sector, and an

thousands of food and beverage products

National Light Industry Wuhan Design

international system prone to global

in over 400 categories, and wth a visitor

Engineering Co., Ltd.

imbalances; the study also indicates that,

count of 9,642, a whopping 10 per cent

as developing countries have experienced

more than last year’s expo; John Thomson,

Continuing US-Africa trade

faster economic growth than developed

managing director of Exhibition

With two years left to run on the Africa

countries, they have seen a significant

Management Services, organisers of AB7,

Growth and Opportunity Act (AGOA) deal,

increase in their proportion to the global

said, “Many of our exhibitors...were able to

which was initiated in the year 2000 and

economy – their share in world output

meet the right kind of businesspeople at

will be terminating on 30 September 2015,

grew from 22 per cent in 2000 to 36 per

the show. Most were eager to network,

trade relations between the United States

cent in 2012, while their participation in

develop ideas, and explore all manner of

of America and African countries

world exports increased from 32 per cent

opportunities.”

benefiting from AGOA come under serious

fundamental changes are needed in

presentation entitled ‘Step into the

scrutiny; Besides the case for a

to 45 per cent over the same period, with much of that increase resulting from the

DCC opens in Mozambique

continuation of AGOA beyond 2015,

expansion of South-South trade.

Members of the Developing World

African ministers of trade and experts have

Supplier Zone have recommended that aid

been examining with their American

SAITEX delivers big deals and new leads for renewed growth

agencies carry out procurement policy

counterparts, since the 12th AGOA Forum

reviews - to compare the cost, delivery

in the Ethiopian capital Addis Ababa in

Times have been tough, with consumers

time, and social benefits of obtaining

August, a range of other issues that speak

watching their budgets closely, but this

goods and services through local

to Africa’s economic transformation -

was not the case at this year’s SAITEX, an

providers – and remove ‘tying’ conditions

including: Inclusive Economic Growth and

African business opportunities expo - the

by donors; sixteen companies with a

Sustainable Development Strategies for

Southern African International Trade

presence in Africa are participating at

Africa, the Role of African Women

Exhibition has continued to grow in size

AidEx 2013, an annual international

Entrepreneurs for Sustainable

and scope for the last 20 years, and

humanitarian and development aid event

Transformation in Trade, Trade

continues delivering solid business returns

held in Brussels, Belgium, to help

Opportunities and Financing for Africa’s

to its thousands of loyal exhibitors and

professionals improve the efficiency and

Sustainable Energy Development, Creating

visitors; the 2013 SAITEX event held in

sustainability of aid.

an Enabling Environment for Scaling up

Midrand, South Africa, witnessed a record

Innovative Agriculture Technologies in Africa, Entrepreneurship and Innovation in

countries showcasing products in over

Wuhan City hosts conference on cross-border transactions

3,500 categories, with more than 16,800

CAJCCI and CCPIT’s Wuhan Branch held a

Integration through Trade Facilitation.

business visitors from all over the world

‘Conference of Economic and Trade

number of over 980 exhibitors from 50

African Review of Business and Technology - October 2013

Africa’s ICT Sector and Africa’s Regional

www.africanreview.com

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E V E R Y D A Y M I S S I O N D E L I V E R E D . E V E R Y D A Y V A L U E .

Design, comfor t, quality standards and innovative technology: here it comes the NEW 682, t h e n ew g en er a t ion of h eavy t r u ck s. With its cab inspired by the award winning New Str alis cabs, and powered by Iveco Fiat Power t r ain Cur sor 9 engine , New 682 is available on the on-road and off- road ve r sion. It represents the best mix among reliability, flexibility and perfor mance , the r ight solution to face a wide r ange of tr anspor ts. New 682. A new breed.

W W W . I V E C O . C O M

S04 ATR Oct 2013 Bulletin B C_Layout 1 19/09/2013 20:15 Page 16

NEWS

Bulletin / Engineering An award-winning bridge Consulting engineers Royal HaskoningDHV have received accolades for a recently completed project – the HA Mofutho Pedestrian Bridge in Lesotho – at the awards ceremony held by the SA Hot Dip Galvanizers Association (SAHDGA) , winning its category - Infrastructure and Community development - and the overall prize for the coveted WGS Barnett Trophy; the bridge, in the Kingdom of Lesotho, crosses the Senqu River near the village of HA Mofutho in Quacha’s Nek District, a very remote area.

Advanced diagnostics for safe, efficient crane operation Two innovative and unique devices have been introduced into Metric Automotive Engineering operates a fully equipped facility staffed by highly skilled in-house engineers who understand the new generation engines

the South African market by global crane giant Konecranes, prolonging the overall lifetime of the runways and the ropes

New generation engines need skilled remanufacturing

through two unique solutions: RailQ Runway Survey and RopeQ

According to Andrew Yorke, operations director of Metric

developed to provide faster, safer, and more accurate analysis

Automotive Engineering, the benefit of quality engine parts and

than any other type of rail survey available worldwide, and RopeQ

skilled engineering is seldom seen in the first thousand hours of a

Wire Rope Inspection is a visual and Non-Destructive (NDT) rope

vehicle’s operation, but only becomes evident later, when the engine

inspection service examines what is non-visible on the ropes.

Wire Rope Inspection; RailQ is an alignment survey technology

starts to log extended machine hours; Yorke says, “The engines currently being installed into new vehicles are highly sophisticated, not in their major elements, but in the minor components that are so critical to performance and emissions efficiencies,” explaining that, whilst the primary elements have stayed the same, when it comes to engine rebuilding, machining tolerances and clearance tolerances have become a lot tighter, necessitating far higher skill levels among remanufacturing engineers, even compared to the recent past, as well as more accurate equipment because there is a great deal less room for error.

The HA Mofutho Pedestrian Bridge in Lesotho offers a safe crossing for both livestock and people

African Review of Business and Technology - October 2013

Developed by Konecranes, RailQ uses precise survey techniques with specific software to accurately measure straightness, elevation, rail-to-rail elevation, and the span of the rails www.africanreview.com

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NEWS

Bulletin / Agribusiness Disease-resistant wheat varieties introduced in Kenya

multiple factors such as resource stress and water quality; “Unlike

A multinational effort supported by the International Atomic

a water-rich region to high-demand areas viably – considering

Energy Agency and FAO marked a key milestone recently when a

the volumes necessary for day-to-day agriculture, manufacturing,

Kenyan university debuted two new varieties of disease-resistant

energy production and household use,” said Veolia Water

wheat to the nation's farmers; over two days early in September

Solutions & Technologies South Africa’s MD, Dr Gunter Rencken.

oil, fresh water has no substitute and cannot be transported from

2013, thousands of Kenyan farmers visited Eldoret University in farming technologies, featuring rust-resistant wheat varieties,

National warehousing project for Nigerian agriculture

which were developed with the support of an IAEA technical

African Exchange Holdings (AFEX), a pan-African holding

cooperation project, responding to the transboundary threat of

company founded by Heirs Holdings chairman Tony O Elumelu,

Wheat Black Stem Rust (Ug99), which involved more than 20

Berggruen Holdings chairman Nicolas Berggruen, and 50

nations and international organisations.

Ventures president Jendayi Frazer, has signed a memorandum of

western Kenya for an agricultural fair highlighting the latest

understanding with Nigeria’s Federal Ministry of Agriculture to

Partnership and financing models for agribusiness

create a pioneering warehouse receipt system to enable Nigerian

The 2013 African Green Revolution Forum (AGRF) brought

accredited warehouses; Dr Akinwumi Adesina, CON, Nigeria’s

together over 150 leading figures and experts, including African

transformational Minister of Agriculture, said, “Our partnership

heads of state, farmers and business leaders, in Maputo,

with AFEX will help to improve the access of farmers to markets,

Mozambique, early in September to focus on scaling up and

reduce post-harvest losses, stabilize prices and raise their

financing inclusive agribusiness through transformative public

incomes.”

farmers and cooperatives to safely store their produce at

private partnerships; keynote speakers included: H E President of Peace, AU Commissioner for Rural Economy and Agriculture;

A new marketplace for agriculture and food processing in West Africa

Strive Masiyiwa, Chairman of Econet Wireless and Vice Chair of

The 1st International Trade Show on Agriculture & Livestock,

AGRA; Jørgen Ole Haslestad. President and Chief Executive

Food, Beverage & Packaging Technology and Food, Beverages &

Officer, Yara International; and Jane Karuku, President, The

Hospitality is scheduled to be held from 3 to 5 December 2013 at

Alliance for the Green Revolution in Africa (AGRA).

the Accra International Conference Centre in Accra, Ghana; A GDP

Mozambique Armando Emilio Guebuza; H E Tumusiimi Rhoda

growth of over seven per cent, political stability, transparency

A water foot-printing tool to spur on sustainability

and eco-friendliness make Ghana an ideal location for the event,

Veolia Water, the global parent company to Veolia Water Solutions

and make the country an important hub for West Africa.

as its agriculturalists serve the international donors' community

& Technologies, is helping companies and governments get one step closer to sustainable water management with Veolia’s

The redesigned lawn tractor

internally developed indicator that enables a pragmatic and

Improved air management,

comprehensive assessment of the impact of human activity on

connectivity of implements

water resources using a ‘cradle to grave’ approach - coined the

and operator comfort are

Water Impact Index, using a formula that expands on existing

features of three X700 Series

volume-based water measurement tools by incorporating

diesel lawn tractors offered by John Deere for private and commercial customers,

The X700 diesel lawn tractor from John Deere

including landscapers, contractors and local authorities; all three models offer a redesigned fully welded steel frame that provides maximum strength rated at 17.9kW/24hp, an engine with a displacement of 904cc, and a redesigned air intake for improved The Water Impact Index from Veolia Water is the first indicator tool to combine a volume, stress and quality assessment to determine human activities’ impact on water resources

African Review of Business and Technology - October 2013

air management and cooler operating temperatures.

www.africanreview.com

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WEB SELECTION

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

Zambia seeks investors for the rail sector developments The Zambian government is looking for investors to provide funding to develop three greenfield railway lines that will attempt to improve the country's transportation services. According to the minister of communication, transport, works and supply Christopher Yaluma, the government would

like to develop a 500km link from Mpika-Chipata via Malawi, a 180km link between Kasama and Lake Tanganyika to cater for the Great Lakes region, and the north-west railway line in the northwestern province to serve mining companies. http://www.africanreview.com/t ransport-a-logistics/rail/

DHL Express to target growth in Nigeria Logistics giant DHL Express has revealed plans to expand its presence in Nigeria and increase investment in markets across sub-Saharan Africa. DHL Express sub-Saharan Africa managing director Charles Brewer said that Nigeria's GDP growth rate of close to seven per cent and its large population had made the country an attractive prospect for growth to the firm. http://www.africanreview.com/transport-a-logistics/logistics/

Ethiopia launches solar energy project

Since the launch of the project, 13,200 solar systems have been installed across Ethiopia (Photo: sxc.hu)

Ethiopian energy ministry has launched a US$11mn solar systems project, which will be used to power 25,000 homes in rural areas of the country. The ministry’s director of public relations Bizuneh Tolcha said, “The installations will provide enough power for lighting, mobile phones, running computers and solar fridge for each home.” http://www.africanreview.com/energy-a-power/renewables/

AfDB extends funds for Mauritius Commercial Bank The African Development Bank (AfDB) has approved funds worth US$120mn multi-sector line of credit (LOC) and US$30mn subordinated debt to the Mauritius Commercial Bank (MCB). This financing will allow MCB to

increase its foreign currency lending to medium- and largesized enterprises operating in Mauritius, neighbouring countries and mainland Africa. http://www.africanreview.com/fin ancial/banking-a-finance/

World Bank approves funds for Comoros power sector Nigeria's large population and relatively high rate of GDP growth has led DHL Express to consider expansion in the West African country (Photo: Dmitry Petrov)

IAG Cargo to increase flights on African routes IAG Cargo has announced it will increase the number of flights it makes between London Heathrow and Africa. IAG, the freight business of British Airways and Iberia, will increase the frequency of flights made between routes to Accra, Ghana and Entebbe, Uganda, as well as to Tel Aviv in Israel and other key hubs in the Middle East as part of it new summer schedule set to begin in early 2014. http://www.africanreview.com/transport-a-logistics/aviation/

African Review of Business and Technology - October 2013

The World Bank has approved a US$5mn grant to support power transmission and distribution in Comoros, the third-smallest African nation by area. The Comoros government will direct the funds in its efforts to The World Bank funds will help boost shore up the commercial Comoros’ efforts to improve electricity supply, opening the door for new management and financial businesses and creating jobs (Photo: sxc.hu) performance of a state-owned power utility, reduce power costs and improve the reliability of electricity delivered to residents on the islands of Grande Comore and Moheli. http://www.africanreview.com/energy-a-power/transmission/ www.africanreview.com

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WEB SELECTION

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

Aggreko plant expansion to enable power supply to Namibia

Mozambique’s minister of energy Salvador Namburete inaugurates the power plant at GigawattPark in Ressano Garcia, Mozambique (Photo: Aggreko)

Aggreko has expanded its gas-fired power plant at GigawattPark in Ressano Garcia, Mozambique to now enable supply of power to Namibia. The project was inaugurated recently by Mozambique’s minister of energy Salvador Namburete. The extension has added an additional 122MW of capacity to the Ressano Garcia facility, bringing the total generation output from the plant to 232MW. http://www.africanreview.com/energy-a-power/transmission/

Bechtel launches new port design for Africa Construction, engineering and project management firm Bechtel has claimed that it has created a design for ports that could transform shipping in Africa in the years to come. Bechtel’s Multi-User Offshore Hub has been designed for two or more users and consists of an offshore, smart terminal arrangement and docking system that will be able to accommodate oceangoing vessels and barges. http://www.africanreview.com/transport-a-logistics/shipping/

AfDB calls for major shift in Libya's economic focus The African Development Bank (AfDB) Group has called on Libya to realign its economy from one based mainly on oil revenues to a state in which economic institutions are more inclusive and integrated. The bank's latest report on the country, From Resource-rich State to a Productive Economy: Development Planning in Post-Civil War Libya, suggested that in order to move forward Libya would need to transition its economy from the current system in which virtually no national institutions on are on hand to help guide the country's development. http://www.africanreview.com/financial/economy/

Zimbabwe to build its own Disneyland Zimbabwe has unveiled plans to build a Disneyland in Africa in an attempt to boost the country’s tourism sector. A government official told the BBC that a sum of US$302mn will be invested in building the theme park at the Victoria Falls site. The official added that Zimbabwe has expressed its keenness to make a fresh start by rebuilding its tourism industry after a decade of conflict and hyperinflation. http://www.africanreview.com/financial/economy/ The Zimbabwe Disneyland project is aimed at attracting more tourists to the African nation (Photo: FA Jon)

UNRA undertakes road development project in Uganda

Bechtel's solution can provide a reduction of up to 40 per cent in port infrastructure construction costs compared with building a traditional port (Photo: sxc.hu)

African Review of Business and Technology - October 2013

THE UGANDA NATIONAL Roads Authority (UNRA) has announced it will begin a road development programme in Uganda within the next five years. The state body set-up in 2008

has US$800mn for its 2013-14 budget and has already expanded the road network from 10,800km to 21,000km. http://www.africanreview.com/co nstruction-a-mining/roads/ www.africanreview.com

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S06 ATR Oct 2013 Report DB DE_Layout 1 20/09/2013 16:46 Page 24

ECONOMY

Water

Working to address water crises Why Jain’s African expansion offers a promising example of development through South-South co-operation

y the time you finish reading this article, at least five children will have died because of diseases borne by dirty water. Studies show that by 2025 half the world’s population will not have enough water to meet its needs. Already a billion people do not have access to clean water, and more than two billion lack adequate sanitation. And as scarcity increases, farmers are finding it more difficult to feed the world’s growing population, which could reach nine billion by 2050. A water crisis is happening now, and it compromises our efforts to reduce poverty and promote economic development. In recent years China has experienced the worst droughts in half a century, affecting millions of acres of farmland and causing power shortages. In northern Africa, the encroaching desert has been forcing people to resettle and has exacerbated tensions between farmers and herders. And famine in the Horn of Africa has served as a horrific reminder of the effects of drought and poor water management. The Organisation for Economic Co-operation and Development (OECD) estimates that by 2015, average annual investment of more than US$200bn will be necessary for water and wastewater services worldwide. Since public resources are becoming scarcer, the bulk of this must come from the private sector. Fortunately, investors are showing interest. Pension funds are embracing water stocks because they involve secure, multi-year contracts, and investment managers are looking to water because it offers steady, low-volatility returns for their clients. These incentives will continue to grow as pricing for water becomes more aligned with its true cost, and as innovation and new technologies create lowercost ways of managing water. Governments must also take action. Water and sanitation infrastructure projects generally require large, up-front capital investments, with costs recouped over the long term. While private investors can supply some of the funding, governments have to assure the right regulatory framework and co-operation to support them. At the World Bank Group we have worked with governments and private companies to structure concession agreements so that they are attractive to investors and fairly distribute risks. Aside from increasing water supply, there is also a need to increase efficiency to address the issue of scarcity. IFC partnered with private companies to start the Water Resources Group (WRG), which is a public-

Since water is a common good, its use and conservation require common solutions 24

African Review of Business and Technology - October 2013

Investment in more efficient irrigation makes a big difference, says Griffith

private collaboration that looks at the issue of sustainable water management between its different uses. The WRG’s activities will help policymakers make the right choices and plan for the future. One promising conclusion of the group’s work is that investments in efficiency can make a huge difference at a reasonable cost. In some countries the greatest room for increased efficiency is in the industrial sector. In China, for example, it takes almost 3,000 litres of water to produce one cotton shirt, so water savings here could have dramatic effects. However, most countries should focus first on the agricultural sector, since it uses 70 per cent of water worldwide – with half of it wasted. Investment in more efficient irrigation makes a big difference. The Indian company Jain Irrigation, the second largest drip irrigation company in the world, is a good example. IFC has helped it expand its operations in India, where its micro-irrigation products have resulted in water savings equal to the annual consumption of about 15mn households. Jain is now expanding to Africa, a promising initiative in South-South co-operation. This is only one of many examples of innovations that can help contain the water crisis. Investors, governments and international organisations can and must work together, and they must do so now. Since water is a common good, its use and conservation require common solutions. ■ www.africanreview.com

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ECONOMY

South Africa

Africa’s aspirational generation A survey conducted recently by CIMA reveals South Africa’s Gen Y as the ‘Generation Aspiration’

anagement accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses. The Chartered Institute of Management Accountants (CIMA) prepares people for a career in business. It teaches skills for strategic advice, managing risk and making key decisions. Its research is geared towards this obejctive. Some of its research reveals interesting dynamics about emerging markets. One of its surveys indicates that there is an ambitious global generation aiming for professional success on its own terms. The global survey of more than 4,300 Gen Y, representing nearly 100 countries revealed in South Africa:

●

13 per cent hope to be in a senior management role by their mid-30s, with 19 per cent aspiring to be their own boss.

●

69 per cent would choose working for an employer that shares their values over one which offers a high financial reward.

●

Over 24 per cent of those seeking employment in the next two years will prioritise opportunities abroad over those in their home countries.

●

70 per cent believe a major corporate or multinational corporation will provide the fastest career progression.

Aiming for management Of those surveyed globally 34 per cent hope to become senior managers by the time they are 35 as opposed to nearly 13 per cent of respondents in South Africa, with 19 per cent expecting to have their own business by the age of 35 or younger. Respondents in South Africa are hoping to earn in the future between R60,000-120,000 (US$6,000-12,000) at trainee level right up to

R840,000-960,000 for roles at senior management level. And those aiming to run their own business expect to earn between R1,440,000 and R1,600,000. Globally respondents said they prioritised working for employers who shared their values and were a good fit with their lifestyle over those who could offer a high financial reward. In South Africa, this is also the case with the clear majority (69 per cent) more inclined to work for an employer because of their values and lifestyle compatibility as opposed to the minority (31 per cent) prioritising a high financial reward. Interestingly, the two most important aspects of a job offer for young South Africans is closely divided between the financial reward package (66 per cent) and training/career development opportunities (64 per cent). Meanwhile 36 per cent of global respondents looking for a new job in the next two years intended to seek new opportunities abroad. The most popular destination being the UK, closely followed by the US, Australia, Canada and the UAE. The South African respondents’ top choice was also the UK but this was followed by Australia, Canada, the USA, Germany and the UAE. The primary reason given globally for the change in location was the opportunity to experience a different culture, closely followed by a better work/life balance rather than to increase their salary. In South Africa, the chance of working in another country with a stronger economy came second at 40 per cent. Malcolm Furber, FCMA, CGMA, president, Chartered Institute of Management Accountants (CIMA), said, “The CIMA survey shows an aspirational generation keen to climb the corporate ladder on their own terms. With the challenge of youth unemployment, it is encouraging to see

African Review of Business and Technology - October 2013

South Africa’s Gen Y values financial reward and career development opportunities” tomorrow’s generation aiming high and open to new experiences while maintaining a healthy work/life balance. “In South Africa there are a number of government-backed schemes in the pipeline designed to help bring young people into work and studying for a professional qualification, such as CIMA, can also add to this and greatly benefit those aiming for a professional career in business. “In this volatile climate, the value added by talented and ambitious people allows businesses to be competitive and resilient. Business leaders must match the aspirations of Gen Y by developing skills and providing satisfying jobs to seize this opportunity.” Possible career paths The global survey revealed that of those aiming to work for a company, the majority (60 per cent) were pinning their hopes on a major corporate or multinational corporation (MNCs) and in South Africa this figure was 70 per cent, believing they would provide the fastest progression route for their career. In addition to the increased work promotions and prospects offered by MNCs, respondents’ open responses indicated they were attracted by their CSR values and company missions. CIMA is qualifying the next generation of business and finance leaders. The research looked into the aspirations of finance professionals in their 20s and 30s and how organisations can prepare for their employees of the future. ■ www.africanreview.com

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Energizing an auto plant to outperform any production assembly on earth.

Follow the Charge When a high-end German auto manufacturer posed the challenge of expanding its existing operation in China, we leapt at the opportunity. A newly designed conveyor system had to be powered to transfer auto bodies to multiple welding stations. As well as integrate into the existing plant automation structure. This was no ordinary project. The complexity of the project inspired us. It demanded extraordinary thinking. Eaton’s custom solution started with revolutionary SmartWire-DT technology. SmartWire-DT makes traditional point-to-point wiring obsolete.

It cuts wiring effort by more than 60%. Enables conventional motor control to be incorporated into systems effortlessly. And cut this project’s installation time by 22 days. By looking beyond the now, Eaton powered the conveyor system with never-before-seen flexibility, efficiency and speed. Integrating flawlessly into the existing plant automation structure. Looking into the future, the auto manufacturer is looking to Eaton to energize more innovative power management solutions for even greater productivity.

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ELECRAMA 2014

IEEMA

ELECRAMA 2014: A grand power equipment show set for an African Odyssey ver the past few decades, India has transformed itself into a globally competitive electrical equipment player with robust supply chain and state-of-the-art technology in most subsectors on a par with global standards. With bilateral trade between India and the African continent growing at a rapid pace over the past few years, the massive capacity addition programmes in the power generation and transmission & distribution segments planned across several African nations will get a major boost from the forthcoming ELECRAMA 2014, IEEMA’s flagship event, which will showcase the global competitiveness of Indian electrical products and the capability of domestic manufacturers to develop world-class engineering products at competitive costs.

A world-class event The 11th edition, ELECRAMA 2014, is scheduled to be held at the world-class exhibition venue – Bangalore International Exhibition Centre (BIEC), Bangalore, India, from 8th January to 12th January 2014. ELECRAMA 2012, with approximately 1000+ exhibitors and 6+ country pavilions, attracted more than 125,000 visitors. For more information, kindly visit www.elecrama.com and www.ieema.org Concurrently with ELECRAMA 2014, other seminars, events and networking platforms are also being held. The Indian Electrical & Electronics Manufacturers’ Association (IEEMA), with the support of the Department of Commerce, Ministry of Commerce & Industry and the Government of India, is organising ChangeXchange 2014: 2nd Reverse Buyer-Seller Meet (RBSM). A large number of foreign buyers from the countries of Africa, ASEAN, CIS, Latin America, SAARC and Iran keen to source electrical products and equipment from India are being invited to attend the RBSM as hosted foreign buyers by IEEMA. ELECRAMA-2014 will also feature other concurrent events such as International T&D Conclave - a half-day programme aimed at experience sharing between the global T&D utilities and stakeholders; TRAFOTECH 2014, a prestigious international technical conference (9th edition) which will provide transformer designers, manufacturers, consultants and users a common platform to review the latest

www.africanreview.com

advances and emerging trends, share operational experiences and discuss “Transformers for smart grids”; and Engineer Infinite 2014, a PAN India competition that encourages engineering students to share and display their innovative projects and get recognised at the Innovation Day event. The rapidly-growing African continent, comprising of 54 countries, has caught the attention of every global investor over the past decade thanks to improved economic governance and a better business climate. With GDP of several African countries’ growing at a healthy rate according to the latest African Development Bank (AfDB) report, more thrust is also being put on the electricity sector, which has become an indispensable prerequisite for enhancing economic activity and improving human quality of life. Africa currently has 147GW of installed capacity, and to meet its growing demand the continent will need to add around 250GW of capacity between now and 2030 to meet demand growth, according to an International Renewable Energy Agency report. This will require capacity additions to double to around 7GW a year in the short-term and to quadruple by 2030, the report said. Over the last two decades, India has been actively involved in the development of the power sector in Africa and aims to provide facilities for rural electrification, robust solutions for remote electrification and monitoring of power distribution and modernisation of Africa’s existing power infrastructure. Many of the Indian companies have joined hands with Africa and have started setting up plants for transformers, switch gears, insulators, cables and conductors. A key partner in African power Currently, India is Africa’s fourth largest trade partner and bilateral trade is expected to reach US$100bn by 2015. India has already invested more than US$35bn in Africa and the Government of India has extended lines of credit to the tune of about US$5.2bn to African countries with large investments being planned in some African countries in the power generation and transmission and distribution segments. With the continent holding vast potential for developing the energy sector, India can offer conventional technology to upgrade Africa’s

thermal and hydro plants and also technology for renewable energy like wind energy, solar and geothermal. Additionally, India can also offer smart metering solutions and systems, where distribution load can be monitored through computers and data systems remotely. The African continent is also the focus region for the Reverse Buyer-Seller Meet (RBSM) at ELECRAMA-2014, which will showcase India’s manufacturing capabilities in the electrical and electronics sector. In the previous edition of ELECRAMA 2012, the RBSM received an unprecedented and overwhelming response from foreign buyers, with 276 buyers from 31 countries from Africa, Latin America, ASEAN and CIS attending the mega event. The African delegation was the largest and included 234 buyers from Benin, Botswana, Burundi, DR Congo, Ethiopia, Ghana, Kenya, Malawi, Mali, Maurtius, Morocco, Mozambique, Nigeria, Senegal, South Africa, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda and Zimbabwe. Maturing markets Generally and historically, the Indian manufacturers follow the International Electrotechnical Commission (IEC) standards and accordingly the National Indian Standards are drawn from the IEC standards including upgrades and revisions. With globalisation firmly in place, Indian manufacturers also manufacture products which are in confirmation to US / Canada – ANSI, NEMA, IEEE, UL and other standards. The Indian power sector story has been encouraging with total installed generation capacity as on March 31, 2013 reaching 2,23,344MW, including renewables at 27,541MW and hydro at 39,491MW. Various other efficiency standards are also being set up like the Star Labelling programme initiated by the Bureau of Energy Efficiency (BEE), that makes it mandatory for some equipment like distribution transformers etc. to have energy efficient ratings. Hence the continuous and constant efforts undertaken by the Indian government in order to upgrade the quality of Indian products has resulted in a positive outlook and acceptance towards Indian manufactured products by countries across the globe. ■

African Review of Business and Technology - October 2013

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ECONOMY

Nigeria

Energising Nigeria’s electricity sector Key West African economy prepares the transition from a state-owned electricity sector to a private power market

he inaugural Power Investors Summit Nigeria, held early in October 2013 at the Lagos Oriental Hotel on Victoria Island, was organised to highlight the work of senior-level industry players, and was endorsed by the Honourable Minister of Power, Prof Chinedu Nebo, the Presidential Task Force on Power, BPE, NERC and NBET. The summit’s organisers brought together national stakeholders and highly-acclaimed international investors from the Africa Finance Corporation, International Finance Corporation, KPMG, FCMB Capital, Globeleq, GE, Schneider Electric, Transcorp, and Eta Zuma Group. A key player in the development of Nigeria’s energy sector has been Energynet Ltd, which has contributed to considerable developments in Nigeria’s power sector have been achieved so far this year. It has acknowledged 21 August 2013 as a day of reckoning for the country’s

power sector, for President Goodluck Jonathan and his administration’s ability to implement Nigeria’s globally acclaimed power privatisation programme. The Bureau of Public Enterprises (BPE) and the National Council on Privatisation (NCP) remained steadfast to the final completion payment deadline for the remaining 75 per cent for the unbundled, Power Holding Company of Nigeria (PHCN) power assets. Entitling the preferred bidders to take full possession of the 15 PHCN unbundled assets, which include 10 Distribution companies (DISCOs) and five Generation companies (GENCOs). Generating a total of US$1.957bn in revenue, of which the proceeds will be utilised to settle outstanding obligations to PHCN workers and invested in the transmission grid. Nigeria’s Power Sector Reform has now reached the next most crucial phase - the Transitional Electricity Market (TEM) stage - for the commencement of a fully contracted electricity market mode under an anticipated robust commercial and technical regime. A battle for power The Power Investors summit was the first summit to feature the new GENCO and DISCO asset owners. There were senior executives from Transcorp Ughelli, Mainstream Energy Solutions Limited, CMEC/ EURAFRIC, GENCOs plus AURA Energy Ltd, NEDC/KEPCO Consortium, 4 Power Consortium and Integrated Energy Distribution & Marketing, DISCOs. These new asset owners spoke at the GENCOs and DISCOs Roundtable. And discussing with interested industry experts, their plans for rehabilitating their newly acquired assets, how they plan to boost system efficiency, and adhere to their KPI’s, whilst providing reliable and affordable power to the nation. The battle for electricity in Nigeria has not yet been won. Rebuilding

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African Review of Business and Technology - October 2013

Investing in alternative Nigerian energy Independent power firm Bresson AS Limited has affirmed that it intends to invest US$90mn towards the construction of independent power plants in Nigeria. It has alredy committted an initial investment of US$10mn. Mr Gbenga Olawepo, chairman of Bresson, recently conducted a meeting with Nigerian Minister of Power Professor Chinedu Nebo in Abuja, at which Mr Olawepo observed that the nation’s government has made tremendous progress in the implementation of its Energy Sector Reform programme, with the successful privatisation of some generation and distribution companies. he noted that investment in the sector has become viable and that the business environment has become more conducive to investment since the reform programme commenced. He expects real benefits from the programme within five years. www.africanreview.com

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Nigeria All of the international project developers that we are working with are all talking about Nigeria. It is certainly the most exciting investment destination right now!â&#x20AC;? - Simon Gosling, MD, Energynet Ltd

Nigeriaâ&#x20AC;&#x2122;s dilapidated transmission network and the uncertainty in Nigeriaâ&#x20AC;&#x2122;s gas supply to existing and upcoming power projects, remains an anonymous and political debate. The success of Nigeriaâ&#x20AC;&#x2122;s privatisation programme now rests on the monitoring mechanisms that will be enforced by the regulator to manage market efficiency, whilst providing reliable and affordable electricity to the end user. Dr David Ladipo, MD of the Azura Power Project (The first developer to achieve, Nigeriaâ&#x20AC;&#x2122;s only, private power purchase agreement (PPA) will be sitting on a panel alongside developers; Dr Chukwueloka Umeh, MD and CEO of Century Power and Anibor O Kragha, Upstream Treasurer

at Mobil Producing. Nigeriaâ&#x20AC;&#x2122;s upcoming IPP developers will discuss how to negotiate a bankable Project- Financed PPA and share their experience in developing IPPs in Nigeria. Privatising power to improve performance Boosting Nigeriaâ&#x20AC;&#x2122;s power output is not just about privatising the power sector to attract foreign investment into a developing nation. A significant increase in electricity supply in Nigeria will have substantial impact on the economy. Boost and expand industrial output, whilst encouraging job creation and a better standard of living for the estimated 150 million citizens, currently living without electricity or relying on cost intensive generators to carry out their everyday duties. Nigeria has certainly proven its commitment to restructuring its neglected electricity industry. The political will is imminent, projects are being developed, and the global power industry has awakened to the prospects for investments in Nigeria, owing to the attractive investment landscape that has been created to engage and encourage private sector participation. The time has come for Nigeria to stand up and actualise its potential of becoming the second largest economy in the world and the overall success of the power sector reform will be the first step to greater economic success. â&#x2013;

ECONOMY

Nigeriaâ&#x20AC;&#x2122;s promotion of science and technology

igeriaâ&#x20AC;&#x2122;s Federal Minstry of Science and Tecnology held a Stakeholders Meeting on the countryâ&#x20AC;&#x2122;s National Science and Technology Week (NASTECH) recently. The National Science and Technology Week (NASTECH) is a yearly programme and one of the statutory functions of the Ministry, which is geared towards commercialising research and development. The results of the nationâ&#x20AC;&#x2122;s research institutions and those of the its tertiary institutions as, well as breakthroughs in the private sector science and technology operations, are all highlighted. It is a veritable tool to market the capacities and potentials of the Ministry and to ensure that Nigerian science and technology becomes more recognised. Participants include, also: entrepreneurs, inventors, manufacturers, information and investment specialists, technologists, engineers and technicians, scientists and the general public.

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African Review of Business and Technology - October 2013

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ECONOMY

Banking

High performance portfolios Bank profits have been boosted over the last year

Kenyan banks have been posting impressive results, mainly due to a rise in interest income and an expanding loan book

ccording to the Central Bank of Kenya (CBK), the banking sector posted an aggregate 15.6 per cent increase in profit before tax to US$715mn for the period ending June 2013, up from US$631.5mn over the same period last year. The sector’s loan portfolio meanwhile shot by an per cent to US$17.4bn at the end of June 2013 from US$15.4bn over the same period last year. The financial sector’s slower growth of 6.5 per cent in 2012 compared to a 7.8 per cent growth in 2011 was indicative of the fears - at the time - over the looming elections.

drop in the amount of interest paid on deposits, a rise in interest income and an expanding loan book. Banks, however, have now to grapple with lowered bank rates as the CBK moves to lower the cost of credit to customers and boost economic growth. “Some banks had become more aggressive in lending to compensate for lower margins caused by cutting the Central Bank Rate to 8.5 per cent from 11 per cent. This might lead to a higher amount of non-performing loans over a longer period,” observed Vimal Parmar, head of equity research at Burbidge Capital.

Raising rates to boost profits High interest rates on loans and rising bank charges coupled with expanding branch networks and agency banking have also boosted bank profits in the last year. “The increased demand for credit was mainly attributed to increased investor confidence as a result of the peaceful political transition, reduction in lending rates, a fairly stable exchange rate and positive economic environment,” observes a CBK survey. The banking sector comprises 43 commercial banks, one mortgage finance company, six deposit-taking microfinance institutions, five representative offices of foreign banks, 111 foreign exchange bureaus and two credit reference bureaus. Financial reports of three large banks – Equity, Co-operative and Barclays – and three medium-sized banks – Chase, Housing Finance and National Bank – showed a sharp

An enabling economic environment Another analyst, Brenda Kithinji – a researcher with Standard Investment Bank – said that interest rates could remain at their current level through the second half of this year and the reduced margins will continue to persist, resulting in some banks becoming more aggressive in their lending. According to the World Bank, lower interest rates and higher investment will support Kenya’s economic growth in the next two years. Recently, the World Bank forecasted a growth rate of 5.7 per cent in 2013, which is remarkably higher than the 4.7 per cent experienced in 2012. The Gross Domestic Product (GDP) is expected to improve further to six per cent in 2014. “Kenyans are reaping gains from a smooth election process and sound macroeconomic conditions, but much more remains to be done to achieve the target growth rate of 10

African Review of Business and Technology - October 2013

per cent envisaged in Vision 2030,” said Diarietou Gaye, World Bank country director for Kenya. He added, “The government needs to create an enabling environment for private sector-led growth by continuing to invest in infrastructure, increasing domestic energy production, removing bottlenecks to doing business and sustaining sound monetary and fiscal policies.” The bank did however point out that the economy is still operating below its potential and remains vulnerable to external shocks, which undermine its prospects for growth and poverty reduction. “The economy needs structural reforms to improve the business environment and for more foreign direct investment flow to Kenya,” said John Randa, the bank’s country economist for Kenya, and one of the lead authors of the Kenya Economic Update report. “Such reforms will include tax and expenditure measures that will increase savings and investment to expand manufacturing exports, taking advantage of Kenya’s low labour costs and its coastal location.” The bank also noted that Kenya should strive to lower the poverty levels across the country. This can be done by reducing inequality and opening up economic opportunities for the poor. ■ Mwangi Mumero www.africanreview.com

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FINANCE

Corporate

Making a unified play for mining South Africa is mineral-rich, but it is still punching below its weight when it comes to mining competitiveness and productivity

ccording to Noah Greenhill, head of corporate finance at Sasfin Capital and speaker at the upcoming Joburg Indaba: ‘Investing in Resources and Mining in Africa’, “South Africa is gifted with minerals and we should be in a much better position globally. We should be a Mecca of mining finance for the world. But we are not. Why do mines choose to raise capital and list in Toronto, London or New York? Some companies are listed in Toronto while 100 per cent of their assets are here in South Africa.” Greenhill said investors are already talking about opportunities ex-South Africa and this needs to change, as there are more than 100 years of mining experience, infrastructure and banking finance in the country which countries further north in Africa do not possess. “Yes, we appear fragmented locally in the mining sector and this repels investors. Government, business and labour need to come together and present a unified face to mining and speak with a unified voice to encourage investment here. “No one is leading the charge and people spend far too much time defending positions

rather than spending time putting real value propositions together showing the benefits of doing business with and investing in South Africa,” he said. Greenhill added that South Africa has the minerals but needs to work through the issues. “If you look at any successful entrepreneurs in any industry you don’t read about their problems, but rather them doing what they have to do in order to succeed and focusing on solutions,” he added. Culture versus technology Greenhill continued, “We are suffering from a culture of complaining and people can point fingers at government, labour or technology but this doesn’t help anyone. We need to get on with it as there is too much complaining and not enough doing.” He also emphasised the need for more of an enabling environment to foster investment in mining locally. “We need accessibility to the right people and policy and regulatory certainty. When I attended a capital resource conference in Botswana a few years ago, the minister of

The Impala Platinum mine and processing plant at Rustenberg, South Africa

African Review of Business and Technology - October 2013

mining walked around the conference room and engaged directly with potential investors and delegates,” Greenhill said. “Juxtapose this with a mining event a couple of years ago where the past South African minister of mining firstly arrived late, then moved around with a big entourage so no one could get near, and finally briefly spun the party line in his speech before walking away,” he added. Greenhill said it is this approach as much as regulatory obstacles that create a barrier to meaningful discussion and investment as it is not an enabling environment that says, “I want to do business with you”. A bigger appetite Looking to solutions and incentives, Greenhill cited how Toronto offered tax incentives in the 1970s to stimulate the mining sector and grow appetite for junior mining companies. “They offered floats and shares on the stock exchange where every $100 invested and spent in mining gave back $80 in tax rebates into investor’s pockets. As a result of this incentive, billions of dollars have been invested in junior mining in Canada. Understanding the risks but offering these incentives grew appetite for mining, junior mining and exploration companies,” he explained. Greenhill claimed the problem in South Africa is how risk-averse the country is and the fact there is little appetite for junior and exploration mining investment locally. Greenhill said he believes there is a large global appetite for minerals and rare earths and “the raw materials for everything consumed in the world is either grown or mined”. He concluded that South Africa needs to strive to attract mining investment and encourage junior sector listing on the JSE to form a mining portfolio, but this scenario will only become possible if the country creates a more enabling and approachable environment for investors. ■ www.africanreview.com

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FINANCE

Technology

A personal approach to money How customer experience technology helps the financial sector regain trust and increase productivity

fter much of the global economy went into recession back in 2008, public confidence in financial institutions took an equally dramatic dive. Whatever the reality, a large percentage of public and media opinion shifted blame towards global ‘bankers’, unseen financial professionals that were painted as the villains of the crisis. Perception and reputation are difficult concepts to quantify, often the evidence for good or bad reactions is anecdotal and is noticeable from talking to individuals or groups. Because the perception and reputation of any business is vital to its on-going success (and indeed its survival!) the use of Voice of the Customer (VoC) technology has become a common and highly-prized asset, which the financial sector is readily embracing. Fully understanding what customers want, and perhaps more importantly, what they need, as it occurs, has long been the ‘Holy Grail’ of customer service. Traditionally it was always very challenging to find a way to harness this information rapidly and reliably, but the IP revolution has made communication at even the most granular level a possibility. The customer retention map has changed radically as Otto Vroegop, loyalty expert at research experts and Mopinion partner Ipsos Nederland, elaborates, “The way customers buy and react to services has changed dramatically over the last 15 years and this is very noticeable within the financial services sector. The evolution of more specialist financial services, such as online only banks, means that the traditional players have had to up their game to retain customers as much as winning new ones. The market is more competitive than ever and having high levels of customer churn when it can be prevented simply, means more resources are spent having to win new customers to replace them.” “The explosion of social media use over the last five years has jumped dramatically and figures suggest that over that period the amount of people complaining publically online about negative experiences has increased by 270 per cent- so harnessing VoC has become even more

important, but ironically also much easier than ever as well. Young consumers, the next generation, are very important as they are rapidly becoming the largest sector of the market for many financial businesses – buying loans and mortgages or looking to make investments for their future. This generation is often centred around online life, so whilst they will happily complain about bad customer service these customers will often be happy to give feedback to a business as well. If you can focus these people on speaking to you about problems you can get a much more reliable idea of the true VoC.” Understanding needs, addressing issues Working with a number of different financial organisations, one of the interesting things that we at Mopinion have heard again and again from clients is that their customers are looking for a more personal approach to business and this has been especially evident since the 2008 crisis. Consumers are more careful with their money, choosing to deal with companies that take the time to understand their needs more carefully and to address issues rapidly. It’s something that Otto Vroegop concurs with, “Our surveys constantly suggest that consumers want to deal with people rather than a faceless company. People like to buy from people and feel a loyalty to an individual or team that they can converse with freely. In some ways the brand has taken a back seat to the employees, customers want a company’s representatives to understand their preferences, to offer them products and services that may actually be of interest to them and to be able to rapidly resolve any problems or issues. This is not only better for customers, it is also better for the organisation – customer satisfaction and retention improves, company employees feel happier in their job and well trained, experienced staff are less likely to leave the company, as it provides a stable and happy environment in which to work.” VoC has already become an integral part of the customer service plan for many financial

African Review of Business and Technology - October 2013

Udesh Jadnanansing, founder and managing partner, Mopinion

businesses. For example, Mopinion is helping a Dutch collective pensions specialist to discover the tangible benefits of VoC. The company has customers from across many employment sectors and manages pension assets for more than 30,000 employers, providing the retirement income for a large part of the Dutch workforce. The pensions specialist made the decision to embrace VoC as part of its commitment to offering its customers the most well-targeted and tailored service. Like most businesses, financial or otherwise, it relies upon the feedback from customers to ensure its services are well targeted and supported. In the past it had used Google Analytics for looking at trends, but it also wanted to understand the real opinions and issues that customers have in relation to services. Now it is using Mopinion’s VoC solution to capture the feedback from our customers as it happens. VoC is proving to be a highly credible way of reinvigorating the direct connections between the financial sector and its clients, helping to establish a greater level of trust and understanding. This in turn is offering benefits to both sides, helping to ensure that the global economy has as few hurdles as possible in its way to achieving a concerted recovery. ■ www.africanreview.com

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TECHNOLOGY Broadcasting

High definition service to Nollywood’s network EbonyLife TV goes live with PlayBox Technology in Nigeria to enable HD content provision across multiple entertainment channels

bonyLife TV is Africa’s first global black multi-broadcast entertainment network and multi-platform broadcaster. Its aim is to reach Africa’s most important target demographic, the custodians of the present and the future. The company is a subsidiary of Media and Entertainment City Africa (MEC Africa) located in the serene surroundings of Tinapa, Calabar, Cross River State, Nigeria, producing and broadcasting non-stop original programming, with superior production values, through a variety of platforms that include television, mobile, online, apps and live service provision. The company is positioned to be the home of the best of African content available. EbonyLife TV recently chose a complete broadcast system from PlayBox Technology for a new channel transmitting in high definition by direct satellite to subscribers in sub-Saharan Africa. The installation includes ingest, storage, content management,

channel branding and playout automation using PlayBox Technology’s flagship AirBox and TitleBox servers. EbonyLife TV is based at Studio Tinapa, Nigeria’s ultra-modern ‘Nollywood’ movie production centre at Calabar in Cross River State. Managing assets for new media “We wanted a no-hassle complete automation workflow from one vendor,” comments EbonyLife TV founder and seasoned broadcaster Mo Abudu. "PlayBox Technology has an excellent reputation in Africa and worldwide both for the robustness of its control and playout systems and for the efficient support it provides during initial planning, installation, training and onsite testing. Our production staff like the system’s fast and logical user interface which gives them all the information and control they need to perform each specific task. Our technical management team recognise and

PlayBox Technology’s system in operation at EbonyLife TV

African Review of Business and Technology - October 2013

Mo Abudu, founder of EbonyLiveTV

appreciate the system’s reliability. Knowing that it works and is fully protected by redundant PlayBox Technology servers, we are able to concentrate on our main objective of originating entertaining and informative programmes." "EbonyLife TV produces a large proportion of its content in-house," adds PlayBox Technology’s managing partner and director of sales, Don Ash. "For that reason, it needed a solution which could capture and pass live video and audio content as well handle preprepared files. The system we have provided is capable of easy expansion if or when the station introduces additional channels. It was installed over a two-week period prior to the channel going live at the beginning of July." "The system was assembled in our test centre and configured to suit the requirements of EbonyLife before being delivered," details PlayBox Technology UK Sales Director Ben Gunkel. "Dual highdefinition servers drive the channel output. The media asset management and traffic system power the operation before going to air. A PlayBox Technology MAM server allows operators to access their growing content library. The traffic system provides advanced scheduling with forward planning and reporting for the advertising sales team.” ■ www.africanreview.com

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Generators

POWER

A need to generate more revenue 2012 was a bleak year for the import of diesel and gas engine generator sets, and manufacturers are now questioning whether 2013 will make up for the losses

his review covers both diesel and gas engine driven generating sets for the markets of the Middle East and North Africa. The market is primarily measured in aggregate generating capacity rather than in terms of volume or value in order to obtain a more balanced view of the market, uninfluenced by the movement in currency exchange rates and the higher costs per kVA of the very high volumes of low output units. Definitive information about the market in 2012 became available in the middle of 2013 and shows that in terms of aggregate generating capacity the markets of the Middle East grew by less than one per cent whilst those of North Africa declined by five per cent. This is not necessarily reflected in the number of generating sets consumed, for in recent years there has been a significant increase in the demand for units below 7.5kVA. Two years ago the markets of the Middle East experienced substantial growth after consecutive years of decline in 2009/10. Regional growth increased by over a third to 10,360MWe with over 98,000 generating sets consumed having a value of US$1.7bn. By comparison 2012 was a disappointing year for there was effectively no growth whatsoever. Aggregate generating capacity increased by just over one half of one per cent to 10,415MWe, compared with 3.1 per cent globally. This was influenced mostly by the lower take-up for generating plant in the range 30-1,000kVA, usually a key segment of the market. Overall the region consumed 108,300 generating sets compared with 98,000 in 2011 and 80,000 in 2010. The most significant growth was for sets between one and 7.5kVA where volume increased by over 13,000 units to 63,800, reflecting the rising consumption of small units by domestic and small commercial users. This represents growth of almost 75 per cent in the last five years. These sets now have a market value of US$200mn, 11 per cent of total consumption.

The only other sectors that grew in 2012 were in the ranges 1,0002,000kVA, and the very largest power plants with outputs in excess of 4,000kVA. In these two bands 350 and 30 more units respectively were sold. This, together with units below 7.5kVA, had the effect of increasing the value of the Middle East market to US$1.74bn by comparison with US$1.67bn the previous year. Over the past five years the Middle East demand for diesel generating plant has grown at a compound annual rate of 4.4 per cent. This compares with 14 per cent in the 10 years since 2002. Since 2008 growth has been dramatically slower, reflecting changes in both the political and economic climate within the region.

Fig. 1. Middle East & North African Consumption 2012 11,850 MWe

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African Review of Business and Technology - October 2013

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Generators Imports continue to dominate the markets of the Middle East, two thirds of which are supplied by the UK, China and the US. Lebanon, a growing supplier to the region, also achieved a 10 per cent share of the market in 2012, ahead of most European suppliers. In total 106,000 generating sets were imported having an aggregate generating capacity of 10,100MWe and a value of US$1.69bn. Almost 9,000 sets had ratings in excess of 375kVA with an aggregate output of 7,500MWe; 75 per cent of the total. Apart from an increase in the import of sets under 7.5kVA and those above 2,000kVA there was no overall growth whatsoever. Whilst the underlying trend of imports for the past five years has only been marginally in excess of four per cent, the Middle East still remains the worldâ&#x20AC;&#x2122;s third largest importer of generating sets, and absorbs 19 per cent of all international trade. In 2012, the UK was the largest supplier to the Middle East with a 35 per cent market share, followed by China with 15 per cent and the US 14 per cent. The UK exported 15,740 gensets in comparison with Chinaâ&#x20AC;&#x2122;s 62,400, but in the latter case over 90 per cent had outputs

POWER

below 7.5kVA. The only other exporters of significance were Lebanon, Turkey, Italy and France who together accounted for a further 17 per cent share of the market. The five major consuming countries were Saudi Arabia, the UAE, Iraq, Egypt and Lebanon, Saudi Arabia reversing its role as the second largest market in 2011 to become the biggest in 2012. Iraq, which had been the fastest growing market in the Middle East in 2011, had no growth whatsoever in 2012. North Africa overview When final data became available for North Africa it appeared that the market in 2012 experienced a somewhat belated upturn during the second half of the year. Even so 2012 was disappointing in that the total market declined from 1,500MWe in 2011 to 1,430MWe in 2012; this despite increasing demand for generating sets between one and 7.5kVA from 5,700 in 2011 to 9,300. However, it was reducing demand for units above 750 kVA output which finally resulted in a market valued at US$250mn, the same as the previous year. The regionâ&#x20AC;&#x2122;s most affected market was

Fig.3 .

Genset Markets M. East & N. Africa 2012 $us 2 billion

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African Review of Business and Technology - October 2013

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POWER

Generators

Egypt where demand fell by almost one thousand units, particularly for larger sets, resulting in a fall of some 200MWe in aggregate output and a reduction in market value from US$110mn to US$80mn. With the present political unrest the prospects for 2013 are not encouraging. However, against the background of very flat markets in Algeria and Morocco, Libya recovered strongly from the severe downturn in 2011; and Tunisia, though a relatively small market, continues to grow. Regional summary In 2012 the combined markets of the Middle East and North Africa consumed a total of 126,550 generating sets having an aggregate generating capacity of 11,850 MWE (Fig.1) and a value of US$2bn. The trend of consumers purchasing an ever increasing number of small units continued, a market mostly met by imports from China. In 2012 an additional 6,800 units were consumed in the one to 7.5kVA range bringing the total for the year to 73,100. By comparison the demand for generating plant in the range 7.5-750kVA, traditionally the core of genset demand, fell by 2,740 units to 48,300. The volume of generating plant with outputs in excess of 750kVA grew marginally to 5,150 units. The effect of these changes in mix accounted for an increase in market value of just $75mn over the previous year, mainly influenced by the higher cost per kVA of low output generating plant. During the five years since 2007, the combined markets of the Middle East and North Africa have grown at an annual rate of 3.4 per cent (Fig.2). This compares with a compound annual growth of 13.5 per cent during the past decade, growth which was influenced by the substantial increase in demand during the period prior to 2007. In 2012 the combined markets of the Middle East and North Africa were valued at US$2bn, marginally more than 2013 (Fig.3).

Fig.4. Middle East & North African Imports - MWe

With limited production in the region imports represent a significant element of the market. In 2012, a total of 122,230 diesel gensets were imported having an aggregate generating capacity of 11,410MWe (Fig.4). The UK accounted for almost a third of all imports into the region followed by China with 15 per cent and the US 13 per cent (Fig.5).

in wanted s r o t u Distrib an countries c all Afri

In 2012, Saudi Arabia overtook the UAE as the largest generating set consumer in the Middle East and North Africa. Next was Iraq, a market which has seen considerable growth since 2010. Apart from Algeria all the other top 10 markets in 2012 were in the Middle East (Fig.6). Electricity consumption in the Middle East

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African Review of Business and Technology - October 2013

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Generators

further 8,000MWe by 2014. The government has also announced plans to make a considerable investment of around 40GWe in solar energy by 2032. However, the IMF considers that an upward adjustment of energy prices over time will be needed to curb the growth of domestic energy consumption. In 2012, Saudi Arabia consumed 18,135 generating sets, an increase of almost 5,000 units on 2011. These had an aggregate generating capacity of 3,300MWe and a value

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of US$510mn, an increase of over 25 per cent on the previous year. Growth was spread across the range with sets below 7.5kVA increasing by 2,530 units to 7,120, and those above by 2,420 to 11,015. Economic growth in the UAE is estimated to have reached 4.3 per cent in 2012. Hydrocarbon production expanded by around 5.2 per cent, and non-oil growth continued to accelerate to 3.8 per cent, driven by demand in the services sector. There was, however, a significant decline in bilateral

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and North Africa is growing at a compound annual rate of 6.1 per cent, and last year was estimated to be approximately 1,050mn megawatt hours; a rate of growth identical to the annual increase in installed generating capacity. The load factor i.e. the ratio of electricity consumed to the availability of installed generating capacity is 40 per cent in the Middle East compared with 45 per cent in North Africa. However, the load factor is particularly high in Egypt, Lebanon and Tunisia. Saudi Arabia, the country with the largest electricity consumption in the region, as well as being the largest generating set market, is set for a major expansion in its installed generating capacity. The Saudi Electricity Co. (SECO), which is engaged in generating and distributing the electricity power supply in the Kingdom, plans to spend US$80bn over the next 10 years to meet Saudi Arabia's rising demand for electricity. It recently awarded Worley Parsons a contract for two large 1,800MW combined cycle gas turbine based power plants in the Kingdom. At the end of 2012 the country had a total installed capacity of 54,000MW, but will need in excess of 30,000MW additional capacity by the year 2020. It plans to install approximately 4,000MWe over the next 12 months, with a

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African Review of Business and Technology - October 2013

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Generators

trade with Iran – down 31 per cent year-onyear in 2012 – which included an element of diesel generating plant. New investment is likely to boost the UAE economy by around 3.3 per cent in 2013 despite the expected fall in crude output. The IMF reports that non-oil growth is expected to strengthen further in 2013. A broadening recovery in construction and real estate, for example, are likely to underpin non-oil growth, which could reach 4.3 per cent. The growth in oil production is likely to slow to around two per cent, as growth in global oil demand remains weak amid expanding global supply. Although the UAE is becoming less dependent on natural resources as a source of revenue, petroleum and natural gas exports still play an important role in the economy. Today, 97.5 per cent of power generation across the country comes from natural gaspowered plants. However the next 10 years will see the introduction of a nuclear programme in Abu Dhabi and a move towards renewable technologies. The UAE is the fourth largest consumer of electricity in the region behind Saudi Arabia, Iran and Egypt. In the past five years electricity consumption has increased by 60 per cent. A total of 41,500 sets were consumed in 2012 by comparison with 33,000 the previous year, but the aggregate megawatt capacity fell by 215MWe to 2,735MWe against a market value of US$485mn, similar to the previous year. Although there was a very significant increase of over 11,000 units between one and 7.5kVA the demand for those between 7.5 and 750kVA was 3,000 less than in 2011. Iraq is exceptionally rich in oil, but its economy continues to suffer from structural weaknesses, especially the small non-oil sector. However, thanks to the increase in oil production since 2003, Iraq has achieved a rise in GDP per capita from US$1,300 in 2004 to US$6,300 last year. Economic growth reached 8.4 per cent in 2012 and is expected to rise to nine per cent in 2013 as oil production increases to 3.3mn bpd. Inflation has declined from around six per cent at the end of 2011 to 3.6 per cent at the end of last year. It is not expected to increase greatly in 2013. In the medium term Iraq’s macroeconomic outlook will continue to be driven by the oil sector, but if there is insufficient investment in infrastructure lower revenues could result. For the past few years electricity consumption has been rising at well over 10 per cent per year but the system continues to suffer from crumbling infrastructure. Fourteen gas turbine stations are being built in addition to the four new ones already

operating. Hopefully generating capacity will increase to a level of 12,000MW later this year. According to the energy minister, “by the end of 2013, the crisis will be over for households and we’ll have electric power around the clock across the country”. In the interim the market for diesel generating sets should improve.

African Review of Business and Technology - October 2013

Following substantial growth in 2011 the market levelled off in 2012. Seventeen and a half thousand gensets were consumed having an aggregate generating capacity of 1,735MWe and a value of US$315mn. Whilst there was strong growth in the range 7.5750kVA consumption below this fell by 4,000 units.

Fig.7. World Consumption - MWe

Fig.9. Global Imports 2012 52,830 MWe

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S09 ATR Oct 2013 Report FA_Layout 1 19/09/2013 21:28 Page 45

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Generators

In 2012, the Algerian economy grew by 2.5 per cent, up slightly from 2.4 per cent in 2011. Excluding hydrocarbons, growth, bolstered by public spending, has been estimated at 5.8 per cent (up from 5.7 per cent in 2011). It is forecast at 3.4 per cent this year and 4.0 per cent in 2014, underpinned by domestic demand and a recovery in the hydrocarbon sector. However, Algeria could become vulnerable to a prolonged fall in oil prices, rising food prices on international markets and a worsening of the global economy, particularly in the euro zone. Last year inflation surged from 4.5 per cent in 2011 to 8.4 per cent reaching a 15-year high. Algeria had 12.2bn barrels of proven onshore oil reserves at the beginning of this year. This provides enormous possibilities to boost its economic growth. Presently the majority of Algerian crude oil, 85 per cent, is exported to Europe and North America. Electricity consumption has been growing at over six per cent annually since 2007. Like Iraq, the Algerian market was flat in 2012. A total of 6,600 gensets were consumed having a value of $95mn. Demand below 7.5kVA increased by 1,500 units and there was modest growth in the range 75-375kVA. Although there may be optimism in Egypt by some that the ousting of President Morsi may presage a brighter future for Egypt's economy the short term prospects are likely to prove extremely difficult. As Egyptians await the return to democratic government, they face some serious economic challenges. With government debt rising, cash reserves dwindling and unemployment and inflation on the rise, times have become extremely difficult for the 80mn population. In the short term US$12bn in aid from Egypt's allies in the Gulf States – Saudi Arabia, the UAE and Kuwait – have given Egypt a chance to support its depleted finances and stabilise the political scene. Electricity power cuts have also become a serious problem. New high voltage power lines between Riyadh and Jeddah and Medina and Tabouk are expected to be completed in the next three to four years, and by 2019, Saudi Arabia should be able to start exporting electricity to Egypt and the Gulf States where countries are interconnected through a high-voltage network. In the interim, providing finance is available, the demand for diesel generating plant should increase. The Egyptian generating set market has been in decline since 2010 when it was valued at US$130mn. Today it barely exceeds US$80mn. The demand for generating sets in every category was down last year when only 7,500 sets were consumed in one of the most populated markets on the African continent.

Fig.10. Global Exporters 2012 52,830 MWe

World summary Whilst in the past decade the demand for diesel generating sets has doubled in terms of aggregate generating capacity to 86,650MWe, it has only increased in volume by 75 per cent, emphasising the progressive move toward larger output generators (Fig.7). In 2012 a total of 1.24mn generating were consumed, the highest volume ever recorded. However, within this total there have been significant changes in mix. Whereas between 2002 and 2012 the demand for generating sets in the range 1-30kVA grew by 70 per cent (508 - 861,000) those between 30-750kVA increased by 90 per cent and those above 750kVA by 140 per cent to 31,500. Due mainly to the severe dip in 2009 and the slow economic growth in some of the world’s major economies since then compound annual growth has averaged only 2.5 per cent for the past five years compared with 7.0 per cent for the past decade. Last year, 2012, can be viewed as a year of modest growth in terms of revenue as the market grew by four per cent from US$15.8bn to US$16.5bn (Fig.8). Within this the sales of generating sets in the range one to 30kVA were US$3.6bn, those between 30-750kVA US$6.8bn and those above 750kVA US$6.1bn. The Far East has been the world’s largest and fastest growing regional market for the past decade although it has only averaged four per cent annually for the past two years. Even so it represents almost 40 per cent of today’s global market with a consumption of 690,000 units and an aggregate generating capacity of 34,000MWe valued at US$6.25bn. By comparison, the European market declined by 4,000 units in 2012 to 159,000 with an aggregate generating output of 15,130MWe and value of US$2.7bn. However, North America had its third year of positive growth since the decline between 2007 and 2009 with sales of over 83,000 generating sets (11,400MWe) valued at US$2.7bn.

African Review of Business and Technology - October 2013

The African market has grown consistently for the last two years at an annual rate of five per cent and in 2012 was valued at $2.5bn, consuming 128,000 gensets having an aggregate output of 8,300MWe. Imports constitute a major element of the world trade in generating sets. In 2012 a total of 569,000 sets were imported by the regional markets having an aggregate generating capacity of 52,830MWe (Fig.9) and a value of US$9.4bn. The world’s five leading producers, the UK, China, US, Japan and France accounted for 72 per cent of all exports (Fig.10), the UK achieving a 24 per cent share, China 21 per cent (over 80 per cent of which were in the range 75-2,000kVA), and the US 15 per cent. China has almost doubled its share of international trade in generating plant since 2008. As global economic growth increased only slightly from an annualised rate of 2.5 per cent in the second half of 2012 to 2.75 per cent in the first quarter of 2013, it is probable that 2013 could be a relatively difficult year for the generating set industry. Growth is projected to remain at slightly above three per cent in 2013, ie, the same as in 2012, but many emerging markets and developing economies face difficulties. Also a deeper recession in the Euro area will not support growth for generating sets in those European markets which have been in decline for some time. ■ Copyright: Gerald Parkinson © 2013 Acknowledgements: Data for this article is provided from GENSTAT, a definitive database analysing the worldwide market for generating sets in over 200 countries. For more information contact George Williamson at Parkinson Associates - Tel. 01452 534 388 or e-mail enquiries@parkinsonassociates.com www.africanreview.com

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POWER

Renewables

Africa goes for the sun Why solar energy, along with other renewable energy systems, promises the means to close the continent’s energy gap

he takeover of Power One by ABB, the world’s biggest supplier of industrial motors and power grids, was a proof positive of the conventional energy sector’s growing interest in renewable energy systems, especially for developing economies. Although ABB stated it had no interest in buying into the solar panel market, in its acquisition of Power One it has, at a stroke, become a world leader as a supplier of solar inverters. These are required to enable the power that is generated by photovoltaic (PV) panels to be fed into grids. The PV cells that make up the panels transform sunlight directly into electrical power. At the heart of every cell is a semiconductor that usually consists of silicon and exploits the PV effect. When layers of semiconductors are arranged on top of each other in a particular structure, the incidence of light (photons) creates free charges that are able to flow away as electrons via an electrical conductor. The direct current generated in this way can be used to run electrical devices or stored in batteries. If it is converted into alternating current with solar invertors, it can also be fed into power grids. And PV is scalable, the technology can power a wrist watch, run stand-alone applications such as traffic lights or be used collectively in vast fields of solar panels to produce megawatts of power. Around the world, the take-up of solar energy from PV cells has been dramatic. In 2010, solar cells with a potential capacity of 17GW were installed around the world. Now compare that to the 7.3GW installed the previous year, and how today more than 40GW of PV solar has been rolled out, seven times more than five years ago. In China alone, it is anticipated that the country will have, by 2015, 150GW of wind and solar capacity. Global production of PV cells has doubled each year from 2005 to 2010, while costs have also fallen by 50 per cent over this period. There are two countries in Africa at the forefront of developing their solar industries — Morocco and the continent’s biggest economy, South Africa. Speaking at the 2013 Energy Indaba in February held at the Sandton Convention Centre in Johannesbug’s northern suburbs, Dipuo Peters, South Africa’s minister of energy referred to her government’s establishment of an US$80mn national green fund. US$40mn worth of investments in green economy projects have been already approved for municipalities, state institutions, community organisations and the private sector. Solar power has a central role in South Africa’s bid to achieve energy self-sufficiency and the country’s ability to promote green growth. The massive rollout of 315,000 solar hot water geysers, with 70 per cent of them given to poor households, is a case in point — and just part of the government’s target of distributing one million water heaters by the end of next year. Water heaters (and solar ovens), are perhaps the most common of applications of solar thermal energy worldwide. But these, and PV panels, are just two of the three solar energy systems that can generate energy from one of Africa’s most abundant resources – the

African Review of Business and Technology - October 2013

US$40mn worth of investments in green economy projects have been already approved for municipalities, state institutions, community organisations and the private sector

amount sunlight that falls on the continent. The sun delivers more energy to the earth in just one hour than is used worldwide in one year, and Africa enjoys the highest solar irradiation in the world. “If harnessed properly,” Professor A Sambo, the CEO of the Energy Commission of Nigeria said, “solar energy, falling freely from Africa’s skies to reach everywhere on the continent without transmission lines could meet all the electricity needs of Africa.” The third of the three solar systems is known as concentrated solar power (CSP). There are, essentially, four basic CSP types: the parabolic trough collector; the Fresnel collector; the solar power plant; and the dish system. The parabolic system uses curved mirrors that are up to six metres wide and 150 metres long to concentrate sunlight onto a central absorber pipe containing a special oil. That oil carries the absorbed heat to an exchanger, heating water to create steam to drive a generator that produces electricity. The technology behind the parabolic type of CSP is quite well known, having been utilised since the late 1980s. This system appears to be the one most favoured currently, with Morocco building the first stage of a huge 500MW CSP site using this technology at Ouarzazate. It is being described as part of the hugely ambitious Desertec project which aims to utilise renewable energy from the across the whole of North Africa. This energy, derived from solar and wind, will not only feed domestic markets but also supply southern Europe via subsea cables across the Mediterranean. Whether Desertec will get off the ground has been put into doubt by the seismic political events that have impacted the region over the past two years, which are yet to be fully resolved. Political support is deemed a vital prerequisite for the Desertec project, and that challenge, it seems, is unlikely to be achieved in the short term. Nevertheless, Morocco is continuing to press ahead with a hugely ambitious renewable energy programme. Morocco hopes that by 2020, 40 per cent or more of its electricity generating capacity will be in the form of renewable sources such as solar and wind. In 2009, the government announced a US$9bn plan to promote www.africanreview.com

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Renewables

solar energy, envisaging five sites across the country that would produce a total of 2,000MW. At the other end of the continent, the South African government has instigated one of the continent’s boldest energy schemes. For example, as well as building concentrated solar energy plants, it envisages installing 8GW of PV generation projects by 2030. The initial tranche of contracts have already been awarded, worth around US$1.5bn and which will generate 2.5GW of power from solar and wind. The World Bank’s IFC’s head of Infrastructure, Betrande de la Bord, commented: “South Africa’s government has run the process very efficiently. In spite of the renewable energy programme’s very large size and innovative nature, the government has approached it in a professional way. Thanks to that, international investors are coming in massive numbers…” And, it should be noted, the solar energy sector is attracting significant domestic investments. A leading company in the field is Built Africa Holdings, whose founder chairman, Thulani Gcabashe, took the time to speak to African Review about the solar energy scenario in South Africa. Gcabashe is a former CEO of Eskom, South Africa’s electricity utility, and also sat on the South Africa executive committee of the World Energy Council. He spoke to African Review days after Eskom had announced it planned huge hikes in the tariffs it wanted to charge its customers in order to finance additional generating capacity.

Eskom had applied for a 16 per cent increase in electricity prices in each of the next five years. This would have more than doubled the current price, taking it from US$0.61 per kWh in 2012/13, to US$1.28 per kWh in 2017/18. But the National Energy Regulator of South Africa (Nersa) announced at the end of February it would only approve an eight per cent increase for each of the next five years. Eskom has the right to appeal Nersa’s decision, but whatever the final decision on pricing, Gcabashe believes, the PV industry is moving towards grid-parity within quite a short period. Grid parity is where the capital expenditure of Thulani Gcabashe, installing PV panels matches over the 25 years or Built Africa Holding‘s founder chairman so of their operational life, what grid energy costs. Gcabashe said, “For the moment, most PV panels are imported but there are some local manufacturers. But these are yet to achieve volumes as yet, and their prices tend to be at a bit of a premium. However, one of the requirements of the government’s scheme is a certain percentage of local content, at least 50 per cent, and that is going to drive the local manufacturing industry, and we look forward to that.” But, as was noted by an Energy Indaba panel that was looking at localising manufacturing and skills: “Local content can be a real success for a country, but it is difficult to localise processes without a certain degree of certainty. Industries are understandably unwilling to invest in the absence of long-term views and predictability, and so it is necessary to redefine the energy industry to include localised processes and renewable technologies.” As Gcabashe’s panel session at the Energy Indaba concluded, perhaps acknowledging this challenge and offering at least one way forward: “Urban policy needs to reinforce energy efficiency while at the same time addressing urbanisation, congestion and traffic; for example, solar panels can be installed into new houses. “Corporations too need to be more aware and should comply with innovative energy usage, which may encourage everyone to follow suit.” However, it is not just purely commercial considerations that will drive the industry’s growth. There is a growing realisation that ‘green growth’ is not just the best policy option, but can be viewed as the only policy option if we are truly committed to sustainable development. Worldwide, the energy sector is responsible for around two-thirds of all greenhouse gas emissions, an amount that is increasing at a faster rate than for any other sector. Coal is the fuel that South Africa has historically relied upon for generating most of its electricity, but it is the most carbon-intensive fuel. And carbon dioxide levels are at the highest they have been for about four and a half million years, according to the latest published research released by Grantham Institute for Climate Change at Imperial College, London. So with renewable energy making good long-term economic sense, even if you do not fully subscribe to the global warming argument, there is every reason to adopt the sort of technologies that could replace relatively accessible, yet finite and increasingly expensive, resources such as coal, oil and gas. And, as South Africa’s Minister of Energy said: “The use of clean energy sources contributes immensely towards reducing poverty, mitigating climate change and the improvement of African people’s health. We should assist poor households in replacing fuel-inefficient and polluting stoves with those with better or lesser energycombustion properties.” ■ Stephen Williams

African Review of Business and Technology - October 2013

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POWER

Diesel

Diesel declines in African markets D

espite a burgeoning year for diesel genset imports in African continent in 2012, a declining trend observed in Q1 2013 was confirmed by the half year trade figures. According to PowerGen Statisticsâ&#x20AC;&#x2122; Q1 2013 Diesel Generators Trade Report, the imports dropped by 17 per cent compared to Q1 2012. The decline has mainly been observed for the 0 to 75 kVA and over 375 kVA power ranges. The imports of 75 to 375 kVA remained fairly stable compared to last year. The strongest decline was seen in Angola continuing on the same trend as the first quarter, whereas Nigeria is showing a progression in the second quarter balancing the decline seen in the first quarter of 2013. Angola had, infact, fuelled the growth in diesel generator imports, with a 65 per cent increase in 2012. Exports from United Kingdom dropped, while Chinese exports grew. French exports also took a dip in the African market. â&#x2013;

African Review of Business and Technology - October 2013

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Linz Electric ADVERTORIAL

Linz launches innovative 9-phases, low-voltage battery charger Linz Electric has introduced its new range of 9-phases, low-voltage battery chargers: BC9 model. This new product is based on a brushless, electronically regulated 9-phases AC source, which, due to its 18-pulse DC power rectifier, can deliver up to 150 Adc. Unlike standard battery chargers, the main advantage of this new technology developed by Linz Electric is the variable rotational speed, between 1,050 and 3,000 rpm — this ensures the same performance given by chopper technology, but at the same time a higher reliability through the use of a technology based on power rectifier. Additional operational advantages of the new series BC9, made of cutting-edge components which ensure a high quality level in the course of time, can be summarized in high efficiency which is clearly better than traditional constant speed battery chargers, voltage regulation of +/-1 per cent and ripple less than one per cent. All these features make this low-voltage

product, developed and marketed by Linz Electric SpA, particularly suitable not only for the use as a battery charger, but also for all those applications which require direct DC power with very low ripple, such as telecommunications or led lighting. Linz Electric SpA, an Italian company based in Verona, operates in the energy transformation sector and it is specialised in the design, production and marketing of alternators and rotating welders. It is present with its products in more than 50 countries and it invests considerable resources in technological innovation to improve projects, processes and production capacity. In addition to its core business, which is represented by the production of alternators and rotating welders, Linz Electric SpA has developed the innovative micro wind turbine “FreeTree”, efficient contribution to the energy self-sufficiency, aiming at the autonomy of small communities through civil and domestic installations. This product is based on a brushless, electronically regulated 9-phases AC source

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Power Nigeria back in Lagos The Nigerian government has set a target of generating 10,000MW of electricity by the end of 2013 and 40,000MW by 2020 to combat the growing power crisis in the country o help fulfill Nigeria’s power generation needs, more than 100 companies from around the world will convene in the country’s largest city, Lagos, at the second edition of Power Nigeria, taking place from 2-4 October 2013 at the Eko Hotel and Suites. The three-day exhibition will serve as a comprehensive showcase for the power generation, transmission and distribution, lighting, new and renewable energy, nuclear energy and water sectors. The 2013 edition features a notable lineup of exhibitors including Phenix Technologies Inc, NAFFCO, Hindustan Vidyut Products Limited, Gulf Advanced Lighting LLC, Power Engineering Limited and Mars Energo. They will be joined by local Nigerian companies including RAP Power Industries Limited, AVSCO Nigeria, Fullmark Urja Limited, Clarke Energy and Vachi International who will showcase their products and services to key industry

decision makers in the country. The Nigerian government has set a target of generating 10,000 MW of electricity by the end of 2013 and 40,000 MW by 2020 to combat the growing power crisis in the country, according to recent reports. With a population of more than 170mn and generation capacities hovering between 3,000 MW to 4,000 MW, Nigerians are reportedly among the most deprived of grid-based electricity in the world, with a per capita consumption that is far lower than many other African countries. Further reports suggest that the state of electricity supply has put the Nigerian economy in jeopardy and forced many residents and businesses to relocate to neighbouring countries with stable power supplies. With the global renewable energy sector witnessing a sudden boom, the Nigerian

The second edition of Power Nigeria will take place from 2-4 October 2013 in Lagos

African Review of Business and Technology - October 2013

government is also looking to embrace its huge renewable energy resources such as solar energy, small hydro, bio-mass and wind power, in a move to generate uninterrupted power supply in the country. An interesting feature of the exhibition is the free to attend technical seminars, hosting an esteemed panel of industry experts from around the world who will highlight the latest developments in the energy sector and discuss key energy issues Nigeria faces today. Rajesh Kumar Khanna from HPL India Limited will be among the first speakers in the morning of the three-day seminar, who will introduce participants to some of the latest electrical products from HPL India. Also speaking will be Nikolay Gotsev from International Power Supply Ltd (IPS) who will talk about hybrid off-grid systems and solutions and discuss the future of the Nigerian power sector. The seminar will culminate with a presentation about gas engines for captive power and IPP. “Despite being rich in renewable resources, little has been done to generate electricity in Nigeria,” said Anita Mathews, director of Informa Energy Group, organisers of Power Nigeria. “A significant increase in the electricity supply will have substantial impact on the economy, create jobs and offer a better standard of living to the people currently living without electricity.” Power Nigeria is supported by The Nigerian Association for Energy Economics and The Foundation for the Development of Africa. The event is partnered with Africa Electricity, Power + Water Middle East, Middle East Electricity and Solar Middle East. For further information about the visit www.powernigeria.com or call: +971 4 336 5161. ■ www.africanreview.com

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Africa Electricity Exhibition

POWER

Africa Electricity returns for the third time 600mn Africans lack access to electricity and the governments aim to add 250GW by 2030 to meet the growing demand

he third edition of Africa Conference, hosting a panel of Electricity Exhibition and industry experts from South Conference will take place Africa, who will discuss and from 9-11 October 2013 in debate key energy issues that the Johannesburg. country faces today. Some of the world’s leading and Nelisiwe Magubane, directorglobally recognised power general of energy from the South companies are likely to take part in African Department of Energy an effort to address the African will deliver the keynote address energy crisis and also shape the about facilitating investment and future of the African power and supporting innovation in South electricity industry. Africa’s power generation sector. Taking place at the Sandton She will be joined by experts Convention Centre, Africa from Standard Bank, the National Electricity Exhibition and Energy Regulator of South Africa Africa Electricity Exhibition and Conference will take place from 9-11 October 2013 at Conference will serve as a the Sandton Convention Centre in Johannesburg (NERSA), Cape Peninsula comprehensive showcase for the University of Technology in Cape power generation, transmission Town, who will address the right and distribution, lighting, new and ‘energy mix’ to achieve a renewable energy, nuclear energy sustainable power strategy for and water sectors. South Africa and establish a The event coincides with a regulatory framework to support recent report titled, Prospects for innovation and new the African Power Sector, and developments in energy published by the International provision. Renewable Energy Agency (IRENA), The three-day conference will indicating that nearly 600mn culminate with a presentation people in Africa lack access to about balancing community electricity with governments in development and rural economic urgent need to add around 250 growth objectives alongside a gigawatts of electricity capacity by 2030 to meet growing electricity financially viable infrastructure venture, explaining how project demand. developers meet social development objectives and still The research further states that Africa faces a unique opportunity demonstrate sound financial benefits. today as nearly two-thirds of the additional capacity needed by 2030 Anita Mathews, director of Informa Energy Group, organisers of has yet to be built. the Africa Electricity Exhibition and Conference, said: “As of today, That will certainly come as good news to the exhibitors at Africa more than 25 African countries are facing an energy crisis despite Electricity, which features a notable line-up of companies from the continent being well-endowed with energy resources. around the world including A-1 Electricals, Faraday Centre, Voltex Pty “The Africa Electricity Exhibition & Conference is a step to solve Ltd, Systems Power Ltd, Tongun Elektrik, Solarway FZE, BLR Battery Africa’s energy crisis by getting businesses and governments to talk Power Solutions and Bahra Cables Company. to each other and help to bring reliable and environmentally sound This is in addition to KEMA Nederland, Aksa Jenerator, Labomeca power to more people across Africa.” — LBMA, QTC Energy Public Company Limited and many more that Africa electricity is partnered with Power Nigeria, Power + Water will showcase the latest innovations in power and electricity to key Middle East, Middle East Electricity and Solar Middle East. For more industry decision makers from South Africa and the sub-Saharan information about the event or to be involved as an exhibitor, countries. visitors, or sponsor, go to www.africaelectricity.com or call: +971 4 The three-day exhibition returns with the Africa Electricity 407 2404. ■ www.africanreview.com

African Review of Business and Technology - October 2013

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POWER

Technology

HVDC transmission breakthrough The passing of an important milestone in electrical engineering

wiss-based multinational ABB has notched up a significant milestone in heavy electrical engineering. The leading power and automation technology conglomerate’s newly developed ‘hybrid’ high-voltage direct-current (HVDC) circuit breaker solves a technical challenge that has faced engineers for more than a century. It combines mechanical and power electronics switching, producing a ‘current interrupter’ that can safely and reliably cut power flows equivalent to the output of a major conventional (steambased) generating station within just five milliseconds, with minimal operational losses. This has been achieved by combining advanced ultrafast mechanical actuators with ABB’s own semiconductor insulated gate bipolar transistor (IGBT) valve technologies or power electronics. The newly developed power switch is claimed to remove a significant obstacle to the development and extension of HVDC transmission grids, of which one of the most well-known examples is the 1700 km point-to-point line connecting Inga Falls with Kolwezi in the DR Congo. Rated at 500 kV and 560 MW, this delivers reliable power in large quantities to the busy copper smelting region, resulting in major savings in the shipment of valuable ingots rather than heavy ore to the coast. These grids will enable interconnection and load balancing between environmentally friendly ‘HVDC power superhighways’ integrating renewable power - such as the hydro resources currently (under-)exploited on the Congo River - and transporting bulk power across very long distances, involving very low losses at the same time. DC grids, such as these, will enable economic sharing of the resources such as transmission lines and converter stations that provide reliability and redundancy in power networks.

In simple terms, ABB’s new hybrid HVDC breaker will enable the transmission system to maintain power flow even if there is a fault on just one of the lines. The new hightech switch can block and break DC currents at literally thousands of amps and several hundred thousand volts - more than the entire national electricity consumption of many individual sub-Saharan states. The extreme speed of operation helps protect the transmission system and prevents power outages in compact, newgeneration low-loss superhighways. According to ABB, the next step is to install the breaker in pilot installations. As at Inga, HVDC transmission remains a technology of choice’ for bulk power transmission over long distances with minimal losses. It is widely employed in China for example, and for undersea transmission in Europe, too. It is also the chosen medium for the revolutionary new German-led Desertec scheme to exploit North Africa’s massive solar resources and ship the power generated economically to cold, wet Northern Europe.

African Review of Business and Technology - October 2013

The newly developed power switch is claimed to remove a significant obstacle to the development and extension of HVDC transmission grids As the subsequently upgraded DRC scheme has been demonstrating for more than 30 years now, HVDC lines require less space to install than conventional ones. Voltage source converter-based HVDC applications in embedded AC grids - and also offshore applications in the oil and gas industries - have grown substantially in recent years, in line with what are described as ‘quantum leaps’ in power ratings and significant loss reductions. ABB pioneered HVDC transmission in the 1950s and now accounts for half of the world’s installations in total so far. ■

HVDC transmission is a technology of choice’ for bulk power transmission over long distances

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CONSTRUCTION Concrete

Brick, block and paving technology for Tanzania Pan Mixers South Africa expands the geographical footprint of the Fiori range of self-loading concrete mixers

he largest supplier of concrete brick, block and paving making machinery and technology, Africa Pan Mixers South Africa (PMSA) has undertaken to reach new markets with the Fiori range of self-loading concrete mixers. A key step has been distribution agreement in Tanzania. PMSA marketing and sales manager Quintin Booysen notes that through the PMSA-Fiori distribution arrangement, an exclusive distribution agreement was concluded with MACS - a well established dealer and distributor of high profile capital equipment machinery that boasts an annual turnover of US$80mn. "MACS was selected as PMSA's Fiori distributor of choice in Tanzania, as the company has developed a tried and trusted reputation since entering the local market 25 years ago." By entering into this agreement with MACS, Booysen states that PMSA is consolidating on its commitment to stimulating the growth of high quality concrete products across Africa. Fiori Africa area manager Nunzio Putifarri highlights the fact that a dedicated presence in Tanzania will dramatically improve turnaround times and overall customer service in a vast and largely underdeveloped country. "A major advantage that Fiori has over its competitors is the fact that MACS has two dedicated aircraft that can fly specialist mechanics to even the remotest sites within a matter of hours, thereby substantially

PMSA demonstrates Fiori machines to clients

minimising unnecessary costs related to downtime." Putifarri believes that this dedication to customer support will add substantial value to the local construction, civil engineering and mining industries. "By establishing a trustworthy and reliable service offering at the early stages of Tanzania's infrastructural development, Fiori will remain at the forefront of concrete production in this hugely promising market." Fiori’s self loading concrete mixer The diesel-powered, standalone Fiori selfloading concrete machines can scoop, load, mix, transport and place concrete independently, while being operated by a single person. Booysen points out that the Fiori concrete batching vehicle (CBV) - which comes standard with additional features such as weighing, reporting and sensing systems - is the only self-loading mixer that can make true certified concrete on demand, with a receipt printed out for every cycle to keep as a permanent record. "As the loading bucket is lifted, a reading is clearly displayed for the operator. Should the operator attempt to overload the drum, the door for discharging the material will not open, thanks to the previously input calculations submitted for a specific mix design," he adds. "What's more, the mixing drum has a double auger system that mixes concrete intensely and prevents material segregation, thereby ensuring a superb quality end product. The advantage of this equipment is that concrete can be batched immediately in small or large batches - eliminating downtime spent waiting for deliveries." Booysen said that, in the event of a potential incorrect loading of aggregate into the drum, the operator is forced to first lower the bucket before emptying out the excess material until the correct weight is attained. "This safety mechanism not only prevents miscalculations in the mix, but also prevents the drum from being overloaded. The production of

African Review of Business and Technology - October 2013

MACS Tanzanian office, for the new Fiori dealership

quality certified concrete ensures that all the ingredients are correct. In addition the Fiori has a device that counts the drum revolutions, and will not allow the mixer-operator to discharge concrete until the material has been suitably mixed." Due to the fact that the entire Fiori CBV is on a 4x4 chassis, users are able to access the remotest sites, regardless of the terrain, thereby enabling contractors working in remote areas to mix concrete on site to exact certifiable standards without the need for additional infrastructure. Booysen pointed out that the Fiori CBV is also able to drive along the edge of the foundation, with the drum at 90 degrees to the machine, discharging the concrete directly where it is required. "The operator can move the machine at the speed required to get the concrete to the correct level, obviating the additional need for a workforce armed with spades to move and level the concrete, other than a simply final levelling.” The steering column and the seat are located in one unit. Booysen said, "While material is being loaded into the mixer, the operator turns the seat around to face the loading position and, once loaded, swings the seat around again to drive in the direction of where the concrete needs to be poured. This negates the operator ever having to peer over their shoulder to ensure that the loading process is trouble-free.” Looking ahead, Putifarri is confident that Fiori will obtain measurable market share across Africa. "With well established and trusted local distribution partners such as PMSA and MACS, I believe that Fiori's potential for growth within Africa is unlimited." ■ www.africanreview.com

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CONSTRUCTION

Concrete

Time to mix to build M

ass and/or reinforced concrete are excellent materials to work with, ideally suited to costly subSaharan trucking conditions now that so much locally-kilned and -milled cement is available - and both suitable sands and coarse aggregates are in good supply, too. However, the combined high compressive and low tensile strength and low coefficient of thermal expansion of these much-updated materials mean they can still fail spectacularly if treated in the wrong way. And the best way to deal with concrete in the wrong way is to proceed too hastily at all and any stage. The first requirement is proper preparation of batch materials, with all components of the specially-prepared mix being checked against the specification for composition (including nature and quantity of any reinforcement and

admixture additives), quality and – most important – moisture content. Wet sand (especially) and/or aggregates incorporated into an otherwise well prepared batch can result in premature cracking, crumbling, slumping and general weakening of the resulting structure. This is because of the unknown moisture content of the placement pour, as can be demonstrated with a standard concrete-cube crushing test. At really large projects this is usually demanded on the site. All this is particularly important when relatively high-tech concretes – no-fines and reactive powder concretes, for example, and those incorporating special ingredients like fly-ash and organic fibres – are being poured. Always ensure the sand and aggregates are thoroughly and uniformly dried before mixing therefore.

September 18 - 21 Johannesburg

African Review of Business and Technology - October 2013

Ready for construction Care in preparation apart, the other aspect of the importance of clock watching is to ensure the poured concrete is allowed time to cure (react chemically and harden) adequately before any subsequent stage of construction takes place. This is especially important if any kind of loading is going to take place. Remember that the material will inevitably shrink as it hardens; an experienced pourer will know how much to allow for this. Slow curing is always best, so make maximum use of natural shade and drape the wet concrete structure with damp covers to allow this to happen. Measure curing time in days rather than hours; it can take up to four weeks for near-maximum strength to be reached; any better than this will literally

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Concrete

take years in typical African conditions. It is usually best to use bought-in pre-cast and/or -tensioned concrete products if there is any doubt, and this is possible, of course. This is particularly important where beams and floor slabs are to be subsequently built upon. There are various international standards issued by bodies like the Concrete Society, ISO and the American Concrete Institute to provide realistic guidance on these recommendations, based on required time allowances which vary with different mixes and water qualities and under different ambient conditions. Some of these can provide information about non-destructive testing techniques appropriate for use under all sorts of conditions in Africa, too. Just possibly, some readers will have time to get to the specialised TotallyConcrete trade exhibition with preconference seminars being held in Johannesburg on 26-28 May 2014 (organised by Hypenica; www.totallyconcrete.co.za). Failing this concrete is covered at all the big construction shows like Intermat in Paris and The Big 5 in the UAE. However the key event to attend is always the annual World of Concrete event in Las Vegas (due to be held next from 21-24 January 2014; www.worldofconcrete.com). Their world-famous series of technical training seminars commence on the 20th. Taking time out to attend any of these special events will provide an ideal opportunity to learn from the global industry’s leading experts about how to get the very best from this splendid, low-cost but sadly much-abused building material. ■

CONSTRUCTION

Syntesi mixers comply on safety In South Africa, Mayday Equipment has supplemented its range of Syntesi electrically-driven concrete mixers with petrol-driven variants. This move underlines the company’s commitment to safety compliance on mines where the mixers are used. Nina Mason, director of Mayday Equipment, explained that a great deal of attention was paid to detail during the engineering of the Syntesi 350 concrete mixer. “This has resulted in several innovations, including optimum stability of the drum while loading material. The traditional drum lock mechanism, which is found on concrete mixers, has been completely eliminated from this design. In addition the elimination of the ring gear and pinion gears used to rotate the drum significantly reduces the cost of maintenance. “The traditional mixer uses a 2:1 reduction drive engine whereas the Syntesi 350 uses a direct drive Honda GX160QX. This reduces the overall cost of the machine and results in lower maintenance costs as well as a greater commonality of parts, as this engine is The Syntesi petrol driven concrete mixer supplied by commonly is used for smaller plant.” Mayday Equipment

FIORI PMSA at BAUMA Africa at stands D26 and H5.111 from September 18 to 21

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African Review of Business and Technology - October 2013

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CONSTRUCTION Flooring

Durable grating for an industrial surface Locally-manufactured floor grating helps to maintain quality control during the construction process

he nature of construction of Andrew Mentis’ Rectagrid RS40 floor grating enhances its corrosion resistance making it the ideal solution for any industrial application. Rectagrid RS40 floor grating is manufactured in an ISO accredited world class facility at Elandsfontein, Johannesburg using a pressure locking system pioneered by Andrew Mentis. “Quality control during the manufacturing process ensures that close tolerances are maintained, and that the round transversal bar fits tightly through the pierced bearer bar. This guarantees the superior structural integrity of the product to ensure its unquestionable locking characteristics,” said Elaine van Rooyen, marketing manager of Andrew Mentis. Rectagrid RS40 is formed through a process of compressive pressure locking of bearer bars and transversals to form an exact pitch of

www.leister.com

The nature of construction of Andrew Mentis’ Rectagrid RS40 floor grating enhances its corrosion resistance making it the ideal solution for any industrial application.

Rectagrid RS40 is formed through a process of compressive pressure locking of bearer bars and transversals to form an exact pitch of 40 mm by 40 mm.

40 mm by 40 mm. Van Rooyen pointed out that in order to be considered ‘good’ floor grating elements need to meet certain non-negotiable criteria. “The transversals must be positively and permanently locked to the bearer bars so that these cannot work loose. The pitching of the bearer bars and transverse bars must be accurate and constant with bearer bars being perfectly upright and without any sideways lean.

Discover us Discover the world of Leister at the GEOAFRICA 2013 - Accra Stand R10 / November 18 to 20. Rectagrid RS40 floor grating is manufactured in an ISO accredited world class facility at Elandsfontein, Johannesburg using a pressure locking system pioneered by Andrew Mentis.

Rectagrid is a highly engineered product that has been successfully tested in the field.

“There should be no cracks or crevices at intersections which could harbour corrosion and the locking method at the intersections should be designed to use the full depth of the bearer bar when calculating loads. Finally, the grating panels should be flat, square and untwisted.” CCIC, Morocco Chimibat, Algeria Revolon S.A., Tunisia Saad Hanna Sons, Egypt Irrico International Limited, Kenya Plasti-Weld, South Africa

Leister Technologies AG www.leister.com

We know how. 62

African Review of Business and Technology - October 2013

An open-minded system Van Rooyen says that because the intersection locking is so positive and strong, it is not necessary to band this grating. “For that reason, we went a stage further and arranged for the panels to leave the rolling mill finished on half pitch all round. This means we can now lay panels adjacent to each other to maintain a perfectly patterned floor with no banding. This is known as the ‘open-ended system’. However, if customers require banded grating, we have the facilities to accommodate this. Rectagrid RS80 is identical to RS40 grating except that we simply omit every second bearer bar, giving an 80 mm pitch bearer bar. However, it still has a 40 mm pitch transversal. Because RS80 has only half the number of bearer bars, the permissible load it can carry is only 50 per cent that of RS40.” ■ www.africanreview.com

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Roads

CONSTRUCTION

The routes to ending rural poverty More than 70 per cent of South Africa’s poorest people still live in rural areas, where effective transport infrastructure is a life and death matter

he’s eight months’ pregnant and she goes into labour late at night. She lives in a Northern Cape village far from the nearest hospital, accessed by roads so bad the ambulances and taxis will not use them. So when her baby becomes oxygen-stressed, there’s no way to reach help fast enough to avoid permanent disability. He’s finally found work in a small town about thirty kilometres from home. Now he can afford to supplement the family’s precarious food supply from subsistence farming. Then a massive rainstorm damages the bridge and rural road that links his village with the highway; he can’t get to work and the job slips through his fingers. “Rural communities are often left isolated when their roads become impassable during the rains. This often implies that text books reach some rural schools much later affecting education outcomes, mobile clinics are unable to fulfil their schedule, and the clinic is unable to replenish its already low reserves of medicines influencing health outcomes, villagers cannot transport their produce to the market truncating production for the market thereby reducing household income and increasing dependency on grants and pension-pay-out vehicles are unable to reach

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some villages increasing food insecurity, and sometimes, only a vehicle with a high clearance can reach these communities and often villages have to pay exorbitant amounts to use them trapping them in spiralling poverty,” according to Mac Mashiri, Msondezi Futshane, James Chakwizira and Bongisizwe Mpondo, the authors of a paper on rural roads - titled Rural Road Provision for Poverty Reduction in South Africa & the Institutional Barriers for Implementation. “Often it is only relatively short road sections that are affected. This is normally caused by poor maintenance, which has allowed roads and structures to fall into such a state of disrepair that they can no longer function,” they write. But upping road maintenance is not all that’s needed, according to this paper. Better roads for all It is urban roads that are the focus of most attention from news reporters and commentators, but the plight of our rural transport network has far-reaching implications for all South Africans. Lack of access to jobs, healthcare and more are the drivers that push people out of the rural areas and draw them into the urban areas, creating

demands on our urban resources which sometimes seem untenable. The response, quite naturally, is to try to create a situation which will make the rural areas attractive enough to keep people there, and the rural transport infrastructure (RTI) is a crucial element in these attempts, say Mashiri et al, but this must be tackled in a comprehensive manner: “…rural development endeavours will come to naught so long as RTI is just seen as improving the odd gravel road from rural areas and not looking at the network in totality including community infrastructure.” A global approach with a threedimensional perspective on how people live and what they need is most likely to achieve the goal of improving the lives of the rural poor. “To improve rural poor people’s access to services and markets, a multi-sectorial approach which addresses both mobility and accessibility is needed,” the authors write. This will do far more than just help people in the short-term; the long-term effects could echo down generations. “Improved transport conditions to health and education services can help poor people accumulate human capital, and better mobility can facilitate social capital formation.” ■

African Review of Business and Technology - October 2013

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CONSTRUCTION

Profile

Strong presence for Bobcat at bauma Africa An impressive display of machines tailored to African environments, put on show by one of the continent’s key construction equipment suppliers

ith products on stands in both the indoor ( H5.321) and outdoor (C61) sections, there was a strong presence for the Bobcat range at the first ever bauma Africa exhibition, which was held in Johannesburg, South Africa, from 18-21 September 2013 - with a comprehensive display of the latest Bobcat compact loader, compact excavator, telescopic handler and attachment products. Centre stage was the new Bobcat 500 platform of compact loaders launched earlier this year. The new 500 platform includes some of the company’s most popular models and is intended to cement Bobcat’s leadership of the skid-steer and compact tracked loader market worldwide. Higher performance Shown alongside models from the company’s larger 800 Series of compact loaders, the new 500 platform models continue the pattern set by the larger machines with significant advances in comfort, visibility, cab room, controllability and cab pressurisation. With overall performance and cycle times up by around 16 per cent on the previous models, the new 500 platform loaders take efficiency and productivity to new, higher levels.

The E35 represents a new generation of Bobcat machines

Capable telehandlers The Bobcat range of telescopic handlers was also a prominent feature of the stand at bauma Africa. The company now offers a range of four rotary telehandlers, the TR38160, TR45190, TR50210 and TR40250 models, providing lifting capacities from 3.8 to 5.0 tonne and maximum lifting heights of 15.7, 18.7, 20.5 and 24.5 m, respectively. Equally adept for rough terrain applications in the building, civil engineering and industrial markets, the Bobcat rotary telehandler models complement the existing Bobcat range of 13 rigid frame telehandlers with lift capacities from 2.2 to 4.0 tonnes and lift heights from 5.2 to 17.4 metres. Exceptional excavators Part of the state-of-the-art E-generation of Bobcat compact excavators, the E35 model shown at bauma Africa offers all the

African Review of Business and Technology - October 2013

advantages common to the E-Series: high reliability, exceptional operator comfort, smooth and precise workgroup operation and superior hydraulic performance. The E35 excavator offers a digging depth of 3117 mm, reach at ground level of 5230 mm and a dump height of 3437 mm. This 3.5 tonnes zero tail swing model combines maximum productivity with the ability to carry out jobs with precision and fingertip control. The load sense piston pump and the closed centre valve enable exceptionally fine metering of hydraulic flow for smooth, precise control of machine functions, while reducing hydraulic noise. The boom and dipper arm cylinders are cushioned to provide a smooth, end-of stroke operation. A wide range of attachments Completing the Bobcat stand displays were examples from the company’s huge range of www.africanreview.com

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Profile

CONSTRUCTION

Bobcat celebrates five decades at Pontchateau

attachments for Bobcat compact loaders, excavators and telehandlers including the forestry cutter, soil conditioner and auger attachments. Complementing Bobcat attachments for construction and rental markets, these are part of a growing family of Bobcat attachments covering a wide range of applications in the landscaping, forestry, recycling, horticultural and grounds maintenance industries. ■ For more information about Bobcat and Bobcat products, visit the website: www.bobcat.eu

Bobcat held a special Bobcat telescopic ceremony recently, to handlers at Pontchateau celebrate the 50th anniversary of the Bobcat telescopic handler plant at Pontchateau in France, which was attended by almost 250 people including local dignatories and former employees of the plant. Current employees were very willing guides for a factory tour, showing former colleagues and other visitors around the site. For the exPontchateau personnel, it provided the perfect occasion to check out how much had changed over the years, and to compare the state-of-the-art processes and procedures in place today in the factory, with the tools and materials they used to employ when they worked at the facility. “The factory has changed a lot, and all for the better,” explained André Tricodet, who worked for many years at the plant. “I am 80 now, and I worked here for 26 years as a machine tool operator. I was delighted to be able to attend the Pontchateau anniversary celebrations.” Pontchateau plant manager Christian Judic said, “I started in the company as a milling machine operator when I was just 17 and I have been working here ever since, for 39 years now. Today, I am a toolmaker for Bobcat prototype machines and I am also in charge of the maintenance programmes for the welding jigs.”

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CONSTRUCTION

Profile

New chemicals for East African construction Wacker’s innovative polymer and silicone product range, which comprises highly water-repellent, dispersible polymer powders for decorative exterior plasters, along with very flexible waterproofing membranes

ntroduced earlier this year by Germany’s high-tech Wacker Group for top-grade construction products, an innovative polymer and silicone product range comprises highly water-repellent, dispersible polymer powders for decorative exterior plasters, along with very flexible waterproofing membranes. Waterproofing membranes based on Vinnapas® dispersible polymer powders can be used to seal most masonry surfaces against moisture. The range includes 5044 N, a vinyl acetate-ethylene copolymer with an unusually high ethylene content which makes it ultra-flexible as well as being very adhesive, which means it can be easily processed on site as a one-part cementitious waterproofing membrane. The powder offers high crackbridging ability – ideal for long-lasting coatings within damp rooms, therefore. For exterior applications, the hydrophobic Vinnapas 8034 H product shown is based on a combination of vinyl chloride, ethylene and vinyl laurate, as a result of which it reduces the moisture uptake of mortars without compromising their water-vapour permeability. As well as being easy to process this very flexible product provides high resistance to abrasion, and adheres readily to all substrates, too. It is therefore well suited to ‘challenging’ exterior applications such as decorative plasters and skim coats. In addition, the company offers its expertise in silicone sealant compounds, including its novel alpha-silane adhesives and sealants, as well as a new general sanitary-product line. Sealant for sanitary applications Silicone sealants have such a diverse range of properties that they have become indispensable in numerous construction applications. At Buildexpo Africa, WACKER is presenting its GP (general purpose) product line as well as its new GS (general sanitary)

The powerful hydrophobic effects of a dispersible polymer powder such as Vinnapas 8034 H deliver outstanding water protection, improved processing characteristics and superior flexibility – the ideal product for decorative plasters and skim coats

The ready-to-use silicone sealants in the General Purpose and General Sanitary product lines offer excellent adhesion to porous and non-porous substrates and are suitable for numerous high-quality construction applications line. The first time the GS line was shown to the public was at Buildexpo, Africa’s largest international construction tradeshow, back in May 2013 in Nairobi, Kenya. Both lines are acetic-curing silicones and, as a result, are particularly rugged, with a long shelf life and good storage stability. The GP product line is eminently suitable for construction applications, such as renovation and repair

African Review of Business and Technology - October 2013

work, and sealing. The new GS line additionally provides excellent protection against mildew and rot. It is specifically designed to handle high levels of moisture and water vapor typically found in kitchens and bathrooms. High-performance hybrid adhesives Wacker now also offers its innovative Geniosil N series of adhesives and sealants at Buildexpo. These fast-curing, one-part hybrid compounds are based on Wacker alpha-silane technology and meet all the technical and ecological requirements imposed on modern adhesives and sealants. Geniosil N products are characterized by a combination of high mechanical strength and crucial elas-tic properties. They are thus predestined for highstress interior and exterior applications. They offer a reasonable pot life and a long shelf life. Geniosil N adheres well to a highly diverse range of sub-strates and can easily be painted. The product portfolio comprises all kinds of sealants, ranging from a highly transparent adhesive sealant for invisible joints to highstrength construction adhesives. ■ www.africanreview.com

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CONSTRUCTION

Utilities

Constructing for concentrated power Work is underway on a 50MW concentrated solar power plant in South Africa’s Northern Cape

onstruction of a 50MW concentrated solar power (CSP) plant commenced in August 2013 on the farm Bokpoort, near Upington, in the Northern Cape, with a projected completion date of 2015. The project will employ up to 600 people from the surrounding communities during construction and 53 people during its operation. Of the people employed during construction 30 per cent will be previously disadvantaged people from the area. Handling the independent Environmental Impact Assessment, which includes an Environmental Management Plan (EMP) as well as Environmental Control and Monitoring during construction is international consulting engineering company Royal HaskoningDHV. Compared with most CSP plants which only have a storage capacity of up to three hours, this installation at Bokpoort can store eight to ten hours of electricity. This technology enhancement of large scale energy storage creates the reality of being able to release the power to the national grid for a period of eight to ten hours after the sun goes down, enabling the use of solar electricity even at night. Royal HaskoningDHV (then SSI) was appointed in 2010 for the inception phase of the project, to undertake the EIA process for the plant. The work also included amendments to the Environmental Authorisation due to the plant’s design. In addition the company was responsible for the compilation of a Basic Assessment for the pipeline abstraction of water from the Orange River and assisted in applying for the water-use licence. Critical considerations for optimal use The availability of water for the power plant was a critical consideration in terms of securing water allocations and extended to ensuring that the design of the plant’s cooling system guaranteed the optimal use of water, whilst still achieving the desired generation output and,

Schematic of the energy conversion in a CSP plant. Storage is optional (Red – thermal energy; Blue – electrical energy, Grey – losses)

Typical configuration of a parabolic trough CSP plant

subsequently, profitability levels. Amendments to the project’s water-use licence had to be made, owing to the importance of the agricultural sector to the economy of the Upington area and their dependence on the Orange River as a primary source of water. Climatic changes added to the pressure on water resources leading to a challenging project where these different environmental components had to be merged in a sustainable way. Wastewater is also used in the process of photovoltaic (PV) power generation and will be

African Review of Business and Technology - October 2013

treated at an on-site wastewater treatment plant and then returned to the CSP system. The US$400,000 project is being funded by the ACWA Power Consortium, which comprises Saudi Arabia-based developer, owner and operator of independent power projects ACWA Power and local solar power company SolAfrica. RHDHV also assisted Eskom with the EIA process for their proposed 100MW concentrated solar thermal electricity generation plant (commonly known as CSP “power tower”). ■ www.africanreview.com

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CONSTRUCTION

CONEXPO-CON/AGG

Reaching out for emerging opportunities Looking ahead to the key international gathering place for construction players in 2014 - showcasing the latest equipment, products, services and technologies

aking place 4-8 March 2014 in Las Vegas, in the USA, CONEXPO-CON/AGG is produced by the Association of Equipment Manufacturers (AEM) to showcase innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace - alongside the co-located IFPE event, an international exposition and technical conference dedicated to the integration of fluid power with other technologies for power transmission and motion control applications. This coming year, particularly, sees the shows’ expanded international reach creating more export opportunities for foreign construction firms, and more buying opportuities for our continent’s constructors. CONEXPO-CON/AGG has won recognition for its show, with international attendance of 24 per cent when it was held last, in 2011, from more than 150 countries. “Recognition of the show’s global scope underscores our strategic planning and highlights CONEXPO-CON/AGG as a true international marketplace here in North America. We are building on this global momentum for our 2014 show,” stated Glen Tellock, CONEXPO-CON/AGG 2014 chair and chairman, president and CEO of The Manitowoc Company. Increasing opportunities and ROI “We have a lot of exciting changes in the works, based on feedback from attendee and exhibitor survey data, our managing committees and extensive market analysis and research,” Tanel said. CONEXPO-CON/AGG 2014 has been designed to enhance the event experience both for attendees and for exhibitors. The show experience includes: Improved wayfinding to help attendees spend less time searching and more time checking out the companies and products they want to see.

Schwing exhibits at CONEXPO-CON/AGG because the show produces the best mix of prospects for our equipment from international and domestic markets.” - Tom O'Malley, Schwing

Better integrated technology services to enhance already superior customer service. Focused international as well as US outreach to better meet specific needs of industry sectors and world regions. Increased attendee and exhibitor engagement with new marketing initiatives. Wayfinding upgrades include more defined product concentration areas and a show footprint that consolidates outdoor exhibit space into three large areas (Gold, Silver and Platinum lots), to create better attendee flow between indoor and outdoor exhibits. “Exhibitor engagement is key; we strive to develop a strong connection with our exhibitors and a fuller understanding of their

African Review of Business and Technology - October 2013

exhibiting objectives,” explained Melissa Magestro, IFPE show director and AEM senior director exhibitions. Building, breaking down, doing business One of the new exhibitor pavilion’s of particuar interest is for demolition & recycling, showcasing products specific to construction & demoiltion (C&D) operations. “Recycling is an important facet of our industries; more demolition contractors are attending the show,” stated Megan Tanel, CONEXPO-CON/AGG show director and AEM vice president exhibitions & events. Also new, the Platinum Lot exhibit area, combined with a reconfigured show footprint and better defined product concentration areas, will make it easier for attendees and exhibitors to connect with the people and companies they want to see. “The goal, as with all our planning, is to provide the best trade show value and create the most ROI for attendees’ and exhibitors’ show experience. These moves will definitely make a positive difference for 2014; attendees can search less to find what they need and spend more time with exhibitors doing business on the show floor,” Tanel added. ■ www.conexpoconagg.com www.africanreview.com

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MINING

Materials handling

Contracting to critical customer care How and why M&J Engineering prioritises provision of customer-centric support for materials handling operations

ustomer satisfaction is the ultimate aim of any business. Listening to and acting on the demands of the market top the list of actions required to gain and retain customer loyalty. M&J Engineering’s focussed hands-on approach, which ensures that all Weba Chute Systems and transfer points operate as per the original design and engineering parameters, has resulted in a satisfied customer base. Meeting the needs of customers begins at the consultation stage and continues through the design of the system, the installation, inspections and problem solving. “M&J Engineering is so confident of its design methodology that we offer the end user a performance warranty. Proof of our ability to proactively provide best practice solutions is evident in the 3 300 Weba

chutes doing duty in the bulk material handling industry worldwide,” Faizel Mahomed, after sales manager at M&J Engineering, pointed out. “Apart from the application requirements of each chute and transfer point system, we also need to focus on the safety considerations. All mining houses have stringent, albeit differing, health and safety rules and regulations that change regularly. It is important that M&J Engineering factors in all eventualities with regard to on-site health and safety,” Mahomed continued. “We need to meet each mine’s requirements in terms of induction, training and medicals for our employees. By complying with on-site procedures and policies, we are able to provide customers with uncompromising support,” he said. Smooth installations While M&J Engineering has a fully-fledged installation team, the company also appoints recognised and reputable sub contractors where appropriate. “We carefully evaluate their workmanship and other aspects of their operations to ensure that they meet our high standards. Generally, we would use sub-contractors where two or three installations are being undertaken simultaneously, in order to ensure that no customer’s time schedule is compromised, if possible,” said Mahomed. Mahomed explained that often a number of contractors are simultaneously working on a site. “This requires careful planning in order to dovetail the various activities. We ensure that all health and safety compliances are achieved and that the necessary components are on site. Our installation team is able to leverage the experience gained on a multitude of projects to prevent any delays.” The commissioning phase is undertaken according to the customer’s project schedule and any issues are addressed and resolved at this stage. “Each installation has unique elements and the chutes are engineered using specific data and information gathered from the customer. Our support team is trained to instantly assess and alleviate unforeseen spillages, high wear and blockages through consultation with our chief designer and engineering department,” said Mahomed - adding that amendments to the original commissioning plan can often be undertaken telephonically. “We recognise that reducing downtime is critical so we remedy the situation as rapidly as possible.” After commissioning a system, M&J Engineering remains involved with the customer. “By implementing planned maintenance of the chutes we are able to ensure that any issues are resolved before they become problematic. We advise customers to invest in a formalised maintenance contract to keep the transfer points functioning optimally. The maintenance contract includes provision for a technician to visit the site regularly to inspect and monitor all transfer points,” said Mahomed. ■

African Review of Business and Technology - October 2013

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SOLUTIONS

Equipment

STRATEGIC PARTNERS

Any part, any time, anywhere!

Each country has a dedicated team on the road almost constantly to meet with and support clients. As well as a dedicated UKbased team offering support upon their return. With an ever-expanding parts data base and client portfolio, helping to ensure all aspects of its business runs smoothly and efficiently is the company’s bespoke IT System – TMS Soft. The TMS Soft enables the creation of quotes, stores to be checked and logistics to be arranged all at the push of a button. ‘’TMS is now official distributor for a select number of industry leading brands; joining forces with MTG – a supplier of GET (Ground Engagement Tools); Berco – involved in all aspects of undercarriages; and Rockmore – which supplies percussive rock drilling tool,’’ explained Rogerson. Investing in securing TMS’s future and exploration of new markets is a continuous process, with plans afoot to move in to three new regions – Nigeria, Liberia, and Ethiopia – before the end of 2013. www.tms-worldwide.com

Born and bred right here - Bell is Africa’s very own global equipment supplier. With Bell you get machines built tough for our harsh environment and support from Africa’s most comprehensive network of people dedicated to your success. Best of all, while you are creating infrastructure and jobs, so are we. Choose Bell as your equipment partner and enjoy the pride of knowing you’re not just boosting your business but helping make Africa a better place too. Tel: +27 (0) 11 928 9700 E-mail: sales@bell.co.za www.bellequipment.com

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Technical Mechanical Services (TMS), with its Database of 42mn part-numbers, has grown to become the supplier of choice for genuine spare parts used in mining operations worldwide. Supplying the complete range of parts from transmissions, engines through to filters and seals for mining, earthmoving and drilling machines, cranes, forklifts and trucks, the company also helps support the infrastructure which invariably develops around a mine. ‘’We have been around for almost 20 years, the African side of the operation is well established and I have been travelling there since 1997,’’ explained TMS managing director, John Rogerson. ‘’We started by supplying the gold mines in Ghana, copper in Zambia, bauxite in Sierra Leone and diamonds in Botswana, and we continue to capitalise on the wealth of opportunities Africa Holds.’’ With its headquarters and central warehouse in Liege, Belgium, the location is the perfect choice, nearly all the major brands have substantial facilities in the region. ‘’All parts are funnelled through our Belgium warehouse and shipped directly to the end user wherever they happen to be. We have invested a lot in our supplier accessibility and if one doesn’t have the part, we have another that probably does.’’ This method eliminates the need to tie up capital in unnecessary stock. TMS has people on the ground covering huge swathes of the African Continent, including South Africa, Angola, The DRC, Ghana, Kenya, Zambia, Mali, Morocco, Nigeria and Tanzania.

TMS serves many African markets www.africanreview.com

African Review of Business and Technology - October 2013

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SOLUTIONS

Safety BEAMS offers complete mine safety system Booyco Electronics has revealed its new single, full asset management solution designed to optimise mine safety. Called the Booyco Electronics Asset Management System (BEAMS), the system combines several safety measures into a single software system with full database history reporting capability. “Based on the mining industry’s uptake of our visual warning products, a single management solution was the obvious next step for our corporate offering,” Anton Lourens, managing director of South Africa's Booyco Electronics, said. “BEAMS has been designed to be adaptable to the information and infrastructure environment. The system is able to interface with a mine’s own IT system and its components are adaptable to existing equipment.” The heart of the system is Booyco Electronics’ underground collision warning system (CWS) technology. Another key element of BEAMS is the lamp room management system that ensures legal compliance to South African mining industry lamp room requirements and allows for asset locating of the mine’s safety equipment. BEAMS also introduces an early warning notification capability communicated from a central control room that uses an LCD display on the miners’ lamps.

BEAMS is based around Booyco Electronic’s popular collision warning system

3M offers hearing protection solution

M has unveiled its latest hearing protection solution, designed to help reduce hearing loss in the workplace. 3M Quest offers a detection solution that safety and occupational hygiene professionals use for noise dosimetry and detection, sound level measurements, heat stress monitoring and indoor air quality and environmental monitoring. 3M solutions for exposure assessment, noise analysis, and employee engagement are designed to make it easier to comply with sound regulations, select appropriate protection and analyse noise control options. There is a simple step process that 3M follows, namely: detection, protection and validation. Coupled with powerful software, 3M's instrumentation can form an innovative noise detection solution. Once the noise level has been detected, 3M offers a broad selection of hearing protectors, from disposable ear plugs and passive ear muffs to Peltor communication headsets. for a wide range of environments. These combat many of the challenges workers may encounter including maintaining communication in a noisy environment, dirty hands and hot and humid conditions. The final step in the process is validation. In less than eight seconds per ear, the unique 3M E-A-Rfit Validation System, generates a personal attenuation rating (PAR), which monitors the worker’s noise reduction levels for each fitting and hearing protector. By comparing ratings, the best suited hearing protector can be chosen for each worker.

Implats ramps up safety South Africa's Impala Platinum (Implats), has announced the results of its focussed campaign to prevent fall-ofground fatalities in its underground mines. Impala Platinum, the country's second-largest platinum-mining company, has completely eliminated such fatalities in the past 12 months, according to Implats CEO, Terence Goodlace. He singled out the use of overhead nets and bolt systems as a major factor in improving the company's overall injury frequency rate by three per cent during the period. "[It is] the best safety performance in our history," said Goodlace. Nets and bolts, which have already been fully implemented at Implats' Marula mine, have been implemented on 90 per cent of the company's Merensky reef horizon and in 45 per cent of its upper group two stopes. The company plans to install them throughout the mine by the end of this year. Other measures that have been taken include proximity detection systems that have been fitted to 79 per cent of the trackless vehicle fleet. These will also be fitted to all underground locomotives. The entire centralised blasting system is being replaced with the Sasol safeblast system and fire-retardant conveyor belts will also be installed.

African Review of Business and Technology - October 2013

It is the best safety performance in our history”

www.africanreview.com

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SOLUTIONS

Technology Monitoring mill liners “Hawkeye is a visual, simple and easy to understand wear-based monitoring system which will enable end users to monitor mill liner life cycles,” said Spike Taylor, managing director of Multotec Rubber, presenting the company’s monitoring system to the mill liner market. Monitoring the life cycle of mill liners has been problematic and intangible in the past. Feedback from Multotec Rubber’s customers focused on the issues around accurately determining mill liner wear. In early 2011, Multotec Rubber committed to enhancing its web-based Hawkeye monitoring product to

overcome the inherent difficulties associated with mill liners. The resultant system effectively reduces the aggravation and costs associated with mill liner shutdowns. Hawkeye allows the profile measurements to be related directly to the tonnages treated from data accumulated on the end users’ SCADA system. “This is an important factor when assessing the liner life cycle, as changes in throughput will have an impact on the replacement time frame,” added Taylor. Recording the liner life cycles will also result in predictable

A 3D general arrangement drawing of the mill lining with the mill plant data

Lifter bar profiles showing the progressive wear with the change out profile in red as the last display

NEED SOME HEAVY LIFTING? A graphic of a discharge head lining arrangement for recording liner change outs relating to the liner items detailed alongside

From 2000t 210m span Portal Cranes to Manual Chain Hoists All supported by Konecranes 24/hr Service, Preventative Maintenance and Load Testing of all Makes of Cranes and Hoists

5 Jurie Street, Alrode, Johannesburg, SA Tel +27.11.864 2800 * +27.82 314 6220 www.konecranes.co.za * Jan.Nel@konecranes.com

African Review of Business and Technology - October 2013

shutdown scheduling and eliminate the unplanned shutdowns typically associated with unpredicted liner failure. This greater level of predictability in terms of maintenance requirements on the mill results in a more productive and profitable environment. “Additionally, this accurate recording of the life cycle will facilitate discussion of liner design changes between

Multotec Rubber personnel and the end user, resulting in an improved life of the mill liner. This high level of monitoring allows accurate information to be retained and mill specific liner solutions to be provided,” said Taylor. “Because it is a web based system, end users have ready access to the mill liner data. The system allows the customer to set predetermined levels of access, according to individual plant needs. www.africanreview.com

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SOLUTIONS

Industry Monitoring air compressors

hield Technologies, which specialises in products for welding and industrial applications, addresses a need to monitor air compressors. Its CEO, Wayne Holt, noted recently that one of the greatest benefits of compressed air leak detection is the resultant energy savings. "Compressed air leakage is a very inefficient use of energy, and it is recommended that leak surveys be carried out at least twice a year in order to save on costs, and to eliminate the risk of downtime associated to large ruptures that have to be repaired," Holt explained. Compressed air as an energy transmitting medium is versatile, flexible and safe making it a popular choice for use in industry. Typically, compressed air accounts for about 10 per cent of the total electrical power consumed by industry. According to

Shield Technologies leak detection equipment for compressed air

research undertaken by the University of Cape Town (UCT), the cumulative costs of compressed air over a ten year period comprises of 10 per cent maintenance, 15 per cent capital and 75 per cent energy. The UCT study also found that 30 per

cent of the total electrical energy used to compress air is wasted, meaning that potential savings could be reaped through the introduction of simple and cost effective measures that minimise this avoidable wastage, without compromising production at all. Leakage is not only a direct source of wasted energy, but also an indirect contributor to operating costs. As leaks increase, the system pressure drops, and air tools function less efficiently and production is affected. Often the only solution is to increase generation pressure to compensate for the losses. Increased running time can also lead to additional maintenance requirements and increased unscheduled downtime. Leaks can also lead to adding unnecessary compressor capacity.

Fern Software has specialised in providing affordable banking solutions since incorporation in 1979. We now have over 400 sites in 40 countries and a network of offices and partners around the world with systems translated into several different languages to suit local needs.

In Africa we have banking system clients in Ghana, Gambia, Kenya, Rwanda, South Africa, Sierra Leone, Sudan, Swaziland, Tunisia (new), Uganda. “Experience counts in a changing world”

www.fernsoftware.com TARGET CLIENTS • Retail Banking - Savings - Current Accounts - Deposits - Loans - ATM - Cards/ POS • Development Banking • Enterprise Development Agencies • Islamic Banking • Microfinance - Individual Lending - Group Lending - Grameen Model • Credit Unions - Shares - Loans www.africanreview.com

African Review of Business and Technology - October 2013

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EQUIPMENT/ CLASSIFIED

Himoinsa’s automation

Reducing contaminants

With more than 300,000 m2 of floor area, eight production centres worldwide, cutting-edge machinery and a carefully planned layout across all its factories, Himoinsa is able to implement a rigorous onestop production process allowing it to manufacture practically 100 per cent of the component parts of its power generator. Manuel Sánchez Bada, head of engineering at Himoinsa, spoke recently about the production process, ranging from the metal treatment centres to the assembly facilities that the multinational firm operates across the globe. Mr Bada observed, “All Himoinsa’s factories have high levels of automation. Both the semi-processed products factory, which houses a series of smart warehouses which distribute parts based on each machine’s demand; and the final assembly factory, which also has an automatic warehouse where the material is introduced and supplied to each assembly point based on the manufacturing orders. The energy group’s manufacturing process is based on the programming of variables, at production level, of all the semi-processed products manufactured by the energy group and which are integrated within the Company’s vertical manufacturing. There is a series of highly controlled processes, where initially the engine and alternator are assembled, meticulously controlling the quality of the screws. Later they are passed to the assembly chain, where a mechanical specialist and an electrical specialist finish assembling all the machine’s sub-systems.”

Reducing the ingress of dust, insects and birds, as well as maintaining a constant temperature, is critical to many manufacturing and packaging companies. The installation of high speed Traffic and Sector doors from Apex Strip & Doors has successfully reduced downtime and lowered maintenance requirements in a number of applications. The fast opening and closing action of the Apex high speed door, not only improves productivity levels, but also enhances supply chain activities. These doors do not hinder personnel, forklift or vehicular traffic and, depending on the actual operation, can be either automatically or manually controlled.

The fast acting Sector door uses the same exclusive counterbalancing system as the Traffic door, and also has an extension spring activated by a release lever to facilitate semi-automatic re-opening

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Advertiser’s Index Ajman Free Zone Authority ....35 Bank of Africa ..............................80 Bell Equipment Company SA (Pty) Ltd...............73 Bredenoord ..................................43 Briggs & Stratton ........................40 Caterpillar Incorporation ........45 Clarke Energy Ltd. ......................33 Commercial Bank of Ethiopia ....................................37 CONEXPO-CON/AGG Show Management Services..............71 Dangote Group ..........................28 Dresser Rand ................................31 Eaton Industries GmbH............27 Eko Hotel and Suites..................75 Emirates..........................................19 ENDRESS Elektrogerätebau GmbH..........42 Ethiopian Airlines Enterprise..79 Fern Software ..............................77 Fiori SPA..........................................61 Gedore Tools SA Pty Limited ..72 Genmac S.r.l. ................................39 Harwal Group of Companies..59 Himoinsa........................................21 IIR Exhibitions (Power Nigeria 2013) ................51 IIR Exhibitions (Africa Electricity 2013) ............69

Indeco Ind. Spa............................60 Infinova ..........................................23 Iron Planet ....................................63 Iveco SPA........................................15 Kirloskar Brothers Ltd. ..............13 Kirloskar Oil Engines Ltd.............9 Kohler Power Systems ..............53 Konecranes ..................................76 Leister AG ......................................62 LINZ ELECTRIC..............................57 Mahindra & Mahindra Ltd. ......17 Mantrac Egypt..............................47 Marelli Motori SPA ........................2 MASSENZA S.r.l. ..........................25 Metalgalante S.p.A. ....................65 SDMO Industries ........................49 Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd. ..............................11 Spedag Interfreight AG ............30 Su-Kam Power Systems Ltd...................................52 T.M.S. Technical Mechanical Services UK....................................67 Taylor & Francis Group/Routledge ......................12 Volvo Construction Equipment AB ................................5 Volvo Penta International ..........7 Yellogen Generators Ltd. ........50

African Review of Business and Technology - October 2013

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