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Europe â‚Ź10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK ÂŁ7, USA $12
October 2012
P48
Building new port facilities to support shipping
P53
African genset markets and uses Finance
Tavaziva Madzinga on Old Mutual Kenya P26
Power:
Solutions and services at Africa Electricity P60
Construction:
Building a road-underrail underpass P76
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essential.
121 Years of Excellence
MarelliMotori 1891-2012
www.marellimotori.com
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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 2012
P48
Building new port facilities to support shipping
S
marter management of power supply is required at all levels of commerce and community. This issue of African Review of Business and Technology offers insights into the technologies, the solutions and the services that enable efficient use of energy to drive enterprise forward. The genset market analysis that forms a significant feature of this issue, beginning on page 53 is complemented by reports on utilisation of UPS units, test and measurement equipment, infrared technology, and auditing solutions for power generation and consumption. Commerce itself is addressed on pages 36-43, with an appraisal of trade promotion between Asia and Africa, and analyses of Free Zone development and operation in Africa and in the Middle East. Preceding these are opinions and observations on attempts at financial inclusion across Africa, with pages 26-35 encompassing engagement with new technologists and online communities. Moving forward, this month we feature construction from north to south, with notes on contracting opportunities in Libya, on page 71, and a report on roadbuilding in South Africa on page 76. Construction equipment, in the forms of loaders, cranes and compressors, are addressed on pages 78, 80 and 82. Following construction is mining, with a review of Electra Mining on page 85, and notes on project work at a diamond mine on page 86.
P53
African genset markets and uses Finance
Tavaziva Madzinga on Old Mutual Kenya P26
Power:
Solutions and services at Africa Electricity P60
Construction:
Building a road-underrail underpass P76
Cover picture: Power generation units support many economic and industrial operations, from manufacturing to transportation (Photo: Rovo Railways)
Andrew Croft, Managing Editor
Contents P40
REGULARS 04 Agenda:
22 Bulletin:
Commercial initiatives across the continent
63 Solutions:
Agribusiness operations and investor news
Products for farmers and for communicators
FEATURES 26 Finance Financial operations in Kenya; and developments in digital commerce and banking
36 Commerce Malaysian trade with Africa; Ghana’s Sekoradi Free Zone; and opportunities at Ajman Free Zone, Sharjah Airport International Free Zone, and Hamriyah Free Zone
44 Technology Surveillance solutions; database operation; and document management
P76
48 Transport Conveyor equipment for South African ports; and the supply of low sulphur fuel for shipping
53 Power Genset market analysis; transformer-based and transformerless UPS usage; testing power generation; infrared technology to cut energy use; and auditing energy usage
71 Construction Libya’s infrastructure contracts; building a new underpass in South Africa; the benefits of 4WD loaders; innovative crane designs; and notes on using compressors
85 Mining Investor opportunities at Electra Mining; digging deeper shafts for diamond mining; and southern African services for product distribution
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NEWS
Agenda / North BP discovers more gas in Egypt BP Egypt has made gas discoveries in the Taurt North and Seth South fields in the Nile Delta’s North El Burg Offshore Concession. These are the fourth and fifth discoveries made by BP in the concession following Satis-1 and Satis-3 Oligocene deep discoveries and Salmon-1 shallow Pleistocene discovery. The two wells were drilled by IEOC on behalf of concession operator BP, using Scarabeo IV rig in water depths of 110 and 78 metres respectively. The wireline logs, fluid samples and pressure data confirmed the presence of gas in one Pleistocene interval in Taurt North and two PlioPleistocene intervals in Seth South. Options to tie both discoveries to nearby existing infrastructure are being studied. Hesham Mekawi, President and General Manager of BP Egypt stated, "The discoveries show our commitment to develop the remaining potential of the shallow reservoirs within the Nile Delta and make the best use of the existing infrastructure. It demonstrates the ongoing cooperation with the Ministry of Petroleum to deliver new gas discoveries and incremental supply to meet the future growth of the gas business in Egypt."
Software for MENA marketeers Ad-In-One Europe, a software company delivering multi-functional financial and workflow management systems to creative and communication agencies, offers its software with localised support to companies in the Middle East and North Africa (MENA). Its software distribution and consulting services in the MENA region are provided by a regional distributor, Grapheast Ltd - based in Dubai, in the UAE - making the software available to all mid-sized and larger agencies with more than 30 employees through the region. Ivan Petruv, CEO of the Ad-In-One, said, "We are very glad to welcome Grapheast
Ltd. as one of our Ad-In-One distributors and offer Ad-In-One to customers in a region where many changes have occurred in recent years. We believe that Grapheast's outstanding knowledge of local markets and its resellers network will ensure an exceptional service for all our customers in the Middle East and North Africa." John Boutros, General Manager of Grapheast, added, "With Ad-In-One we believe that we can offer our customers internationally respected agency management software used by the leading network and independent agencies in the industry.”
Oil and gas opportunities on show With huge gas finds and new ventures in the region, with accelerated leasing and investment, the Middle East and North African oil and gas market remains dynamic. Regional exploration and production of oil, gas, liquid natural gas (LNG) is attracting a growing number of companies and investors who find new business opportunities. The 9th MidEast-North Africa Mediterranean Upstream (MENA-MED) 2012 Conference held in September in Geneva, Switzerland, focused on exploration and development ventures in the region. Organised by Global Pacific & Partners. Dr Duncan Clarke, Chairman & CEO of Global Pacific & Partners said, “With the world’s largest oil reserves in the Middle East, major capital investment projects across the region, acreage openings, new oil/gas and LNG strategies across North Africa, plus huge gas finds in the Mediterranean, the meeting will once again highlight significant opportunities for companies and investors, financiers, traders and players across the value chain.”
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African Review of Business and Technology - October 2012
Business opportunities targeted in Tunisia
T
he African Development Bank (AfDB) conducts Business Opportunities Seminars (BOS) twice a year to inform participants of the business/procurement prospects linked to Bank-financed operations in Africa. Focus is mainly on the overview of Bank Group policies/sector strategies; procurement rules and procedures; and ongoing/planned country operations. This year’s second BOS will be held in Tunis, Tunisia, on 13 and14 November 2012. Business Opportunity Seminars are targeted at private sector organisations from the AfDB’s 77 member countries. The objective is to provide a forum relating to the AfDB’s lending policies, procurement rules, operation cycle, and project pipelines. The seminars will be a mix of plenary sessions and bilateral meetings, and participants will be become better informed on how to identify business opportunities in various sectors, including infrastructure, energy, private sector, water and sanitation, agriculture, and education. Each BOS is intended to strengthen partnerships between the AfDB and the business sector in both regional and non-regional member countries. A business agenda The Tunis BOS in November will feature promotion and discussion of the bank’s policies, priorities and lending operations, of its pocurement rules and procedures - and of the various sector strategies and projects underpinning its approach to private sector development, transport, information and communications technologies (ICTs), and energy, the environment, and climate change. Complementing these will be sessions on water and sanitation, agriculture, and human development.
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NEWS
Agenda / North Reporting on the power of regional integration to boost economies A report published by the African Development Bank (AfDB), ‘Unlocking North Africa’s potential through regional integration’, examines the key issues and challenges facing regional integration in North African countries across a number of thematic areas, including: (i) energy; (ii) climate change and environment; (iii) financial sector; (iv) trade facilitation and transport; (v) human development; and (vi) information and communication technology. The report indicates that efforts to promote regional integration in North Africa have often been constrained by political differences as well as diversity in economic performance, pace of reforms and openness, and disparities in legal and regulatory frameworks. Overlapping preferential trade agreements and a large number of trade barriers have also emerged as a constraint to regional integration efforts. Together, these impediments have increased transaction costs. Similarly, the existence of these barriers reflects weak political commitment to the integration process, as a large number of decisions taken at the regional level have not been translated into action at the country level. "Despite these challenges, in the wake of the Arab Spring, the emerging political
Regional integration contributes to the growth of small and medium entreprises through exports of goods and services”
landscape in North Africa promises to give new impetus to regional integration efforts," said Jacob Kolster, AfDB Regional Department Director for North Africa. The diversity of resource endowments in the region, coupled with the existing physical infrastructure, represent an important opportunity for further development through regional integration. The report makes proposals for the continued engagement of the African Development Bank in the region, geared towards exploiting the full potential of regional integration in North Africa for the promotion of a new, inclusive and sustainable growth model. “The potential is huge,” says Emanuele Santi, an Economist at AfDB and Coordinator of the report. Regional integration is still in its infancy in North Africa. With intraregional trade accounting for less than four per cent of total trade, the region is the least economically integrated neighborhood in the world. "The new political context in North African countries and the crisis in Europe, which compel countries to diversify markets, offer a golden opportunity to refocus on the regional integration agenda as an engine of growth for all countries," Mr Santi emphasised.
Better Sudanese health and a stronger economy
I
n Khartoum, Sudan, UNDP Resident Representative Resident and Humanitarian Coordinator Mr Ali Al-Za’tari recently highlighted the progress of Sudan towards achieving Millemnnium Development Goals (MDGs), the importance of national ownership; and the progress of Sudan towards reaching the MDGs deadline of 2015. Mr Ali Al-Za’tari observes that there has been a substantial reduction in the malaria prevalence rate in Sudan from 6. 8 per cent to 1.8 per cent, and a reduction in the malaria mortality rate
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reduction of more than 50 per cent percent. Furthermore, the Sudan National TB programme has enabled a TB treatment success rate of 82 per cent. There hasm, too, been progress in HIV/AIDS work in the country; in 2006, the number of people receiving anti-retro viral treatment numbered 265, and for 2012 the figure is 5,532. Contributing strategies for health and econmic development Global Fund (GF) grants are main contributors
African Review of Business and Technology - October 2012
to the Sudanese Ministry of Health. Due to the progress in establishing national programmes and national strategies, with the support of the GF; the government is now allocating more funds to primary health care exemplified through an allocation of US$20mn before the end of 2012. A big part of this fund is to improve the capacity of local and national health care facilities throughout the country. This will contribute to improving further the national capacities that will play a complimentary role to the UNDP-GF supported programmes.
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S02 ATR Oct 2012 Agenda East_Layout 1 20/09/2012 17:59 Page 8
NEWS
Agenda / East Mobile firm empowers Kenya's small-holder farmers Airtel Africa is working with the GSMA to initiate a project to empower approximately 250,000 small-holder farmers in Kenya with reliable and relevant agricultural information via their mobile phones. The project, dubbed ‘Sauti ya Mkulima’ (Swahili for voice of the farmer), is providing farmers with access to pertinent agriculture-related information, advice and research that will help them make better decisions about their crops, increasing the productivity of their yield, as well as their potential income. It also helps create a farmer community within which peers can share experiences and exchange information about social gatherings, events, and job opportunities. “At Airtel, we recognise innovative telecommunications solutions have the power to transform communities. This initiative is a solid testament to what partnerships that harness relevant consumer needs can achieve in overcoming daily challenges. We are excited and thankful to the partners involved in birthing this initiative,” explains Shivan Bhargava, Managing Director, Airtel Kenya. “Our ‘Sauti ya Mkulima’ project will provide small-holder farmers with access to quality content, information and know-how on agriculture-related activities. Gaining access to this information will be immensely beneficial to the farmers whose
livelihoods are dependent on their yield. The information will allow them to make better informed decisions that will result in improved productivity.” As part of the partnership, the GSMA mFarmer initiative - supported by USAID and the Bill & Melinda Gates Foundation - has awarded Airtel US$400,000 for the ‘Sauti ya Mkulima’ project. The initiative aims to facilitate the rapid scaling of the use of mobile phone networks to provide farmers in developing countries with agricultural information. The funds are being used to develop a reliable database of content with the help of partners such as the Centre for Agricultural Bioscience International (CABI), an inter-governmental not-for-profit organisation and radio-based information provider Kilimo Media, as well as to set up the technological capabilities to execute the project with the help of world-class technology service providers. The move to support farmers in Kenya follows a continent-wide initiative by Airtel earlier in 2012, to deliver healthcare to rural areas - through a partnership with VER SE’ Innovation that involves the ongoing development of a mobile health (mHealth) platform. This partnership sees the two companies come together to provide low cost, easily accessible mobile health services to consumers across Africa.
Messaging for info on Mozambique’s markets
A
n information texting service for farmers, and small and medium enterprises (SMEs), has been initiated by the International Finance Corporation (IFC) with two Mozambican partners, to improve access to pertinent and timely information - so that farmers and business persons can improve operations and grow business. Operated in partnership with Mozambique's Universidade Eduardo Mondlane (UEM) and telecom operator Vodacom, the IFC short message service (SMS) provides farmers and entrepreneurs free and timely information on business and farming needs. The SMS system involves close collaboration between the three parties involved. Through its network of content providers, UEM gathers information on commodity prices, legislation, taxation and other pertinent news for farmers and small businesses in Mozambique. UEM logs the information on IFC’s SMEToolkit website, which forwards it as SMS messages to Vodacom and other mobile operators - which, in turn, send the messages to their subscribers.
Technology improves trade IBM is working with the Tanzanian Government to help achieve its vision of becoming a hub for trade in the wider East Africa region, and to enhance the efforts towards sustainable economic development outlined in the Tanzania National ICT Policy. Honourable Prof Makame M. Mbarawa, the country’s Minister for Communication, Science and Technology, said, "Working with IBM will help to ensure that our initiatives are in line with international standards while positioning us to become competitive regionally and internationally." IBM and the Government of Tanzania are developing simplified and more effective social and administrative systems for e-Government, e-Health and e-Education among other areas. "IBM is a long-standing partner to the Tanzanian government and we are committed to supporting the country's economic growth and technical advancement," said Dr Mark Dean, Chief Technology Officer and IBM Fellow, IBM Middle East and Africa.
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African Review of Business and Technology - October 2012
Farmers and small businesses will benefit from better access to market information
The SMS system provides farmers and entrepreneurs with information on prices of their products in different markets, and on the weather and seed choice. Farmers and small businesses can access market information on their mobile phones at no extra cost.
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NEWS
Agenda / East Kenya adopts geo-mapping The Kenya Revenue Authority (KRA) has introduced a property tracking system to nub landlords evading rental taxation. The technology, known as Geospatial Revenue Collection Information System (GEOCRIS) involves mapping of all rental income generating premises and incorporating them into the system. The system will track down the physical rental properties location and compute their tax compliance real time. It then isolates the non-compliant cases for reportage. With this information, the taxman can then send officers to the ground to collect further data using a GIS-enabled phone that directly sends information to the web-connected and synchronised system. GEOCRIS uses geospatial technology and will allow existing mobile money transfer services such as M-Pesa to collect tax as well as other dues. In the past, landlords have been escaping taxation on their rental incomes –leaving the taxman to rely on formally employed persons and registered businesses as the real tax payers. Experts note that the system works more like Google Maps although in this case the roads have been replaced by actual buildings- coming up, completed or undeveloped spaces. “It eliminates the challenge on minimal manpower that would be a setback in the collecting of taxes in the property segment. We have already rolled out pilot tests in Nairobi and
plan to expand it throughout the country,” said KRA’s spokesperson Kennedy Onyonyi. The technology can also assist the taxman spot audit cases and feed authorities with taxpayers’ key information. It will also be possible for the system to perform a rental income property search based on the name of the taxpayer, address or the personal identification number (PIN) of the potential taxpayer. It can also track down the taxpayer to the house. Meanwhile, KRA has deployed new electronic tax devices (ERTs) to transmit realtime data every time a transaction occurs anywhere in the country. Enabled by general packet radio service (GPRS) technology, developed and established for mobile communications, the devices give the taxman ability to identify the location of each tax register, removing the risk of revenue loss in case the register is stolen. The devices automatically relay data to a central server every time a transaction is made- for tabulation and safe keeping in readiness for reconciliation with the actual tax returns at the end of each month. “Using the system, KRA can tell how much they have collected from time to time before even tax returns are filled,” observed Onyonyi. The new technology is expected to save the taxman million in operational costs and help mop up billions of shillings lost through tax evasion. Mwangi Mumero
Regus invests in Rwanda The first Regus business centre in Rwanda, in Kigali City, forms part of a strategic objective to keep pace with rising demand for flexible workspaces in East Africa. Regus, which provides flexible workplaces, has seen a 47 per cent surge in demand for its services in the region and 40 per cent year-on-year growth in enquiries across the continent. The new centre in Rwanda is one of seven locations in different countries in East Africa, including: Tanzania, Uganda, Kenya, Zambia, Mauritius and Madagascar. Mark Dixon, CEO of Regus, said, “We are launching a new centre in Rwanda to provide businesses with smarter, flexible ways to grow and explore the opportunities created by economic growth in East Africa. We help them to do so at minimal upfront cost, without committing themselves to long-term premises. These advantages have fuelled demand for our services across Africa and especially East Africa where we intend to double the size of our network by 2014.”
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African Review of Business and Technology - October 2012
Working towards food security and nutrition
T
he Near East Regional Office of the Food and Agriculture Orgnization (FAO) has collaborated with the Committee on World Food Security (CFS) in organising a Regional Multi-Stakeholder workshop on Food Security and Nutrition, in Khartoum, Sudan, in September 2012. The workshop was organised as a follow-up to a recommendation made by the 31st Session of the FAO Regional Conference for the Near East (NERC31) held in Rome, Italy, in May 2012, which called for identifying food security and nutrition priorities in the region to be presented at the 39th Session of CFS, being held 15-20 October 2012. The Multi-Stakeholder workshop brought together experts and policy makers from 20 countries in the region as well as representatives from UN agencies, donor countries, regional organisations, civil society organisations, research institutions and the private sector. The food security and nutrition challenges facing the region were discussed and actionable recommendations identified. The workshop included four policy round tables on the following topics: ● Regional priorities for food security and nutrition in the context of ongoing social and political transition in the region. ● Social protection for food security. ● Food security and climate change. ● Food waste and losses. About 80 delegates participated with 40 representatives from 20 countries: Algeria, Bahrain, Egypt, Iraq, Iran, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, occupied Palestinian territories, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. UN agencies, NGOs, farmers organisations, representatives of international financial institutions, regional institutions, agricultural research institutions, private sector and philanthropic foundations also participated.
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NEWS
Agenda / South Growth on for Safmarine Gauteng Safmarine Gauteng expects to increase volumes and revenue for the remainder of the year and says its optimistic outlook is based on healthy import and export growth in the first six months of 2012 and positive forecasts from its Gauteng customer base for the remainder of 2012. According to Gauteng's regional executive, Peter Andre, "The International Monetary Fund (IMF) and others may be predicting slower growth for the South African economy, but our customers in Gauteng are forecasting healthy volumes for the rest of the year, predominantly from the Far East, followed by Europe and the USA market." Currently more than 50 per cent of Safmarine South Africa's import and export dry cargo is controlled by its offices in Gauteng, making the Safmarine offices in Johannesburg and Pretoria the largest contributors to the line's South Africa business. Andre says these offices have made it a priority to improve their customers' shipping experience. "We believe our people make the difference in delivering an exceptional shipping experience and we automate processes wherever we can to deliver savings to our customers." Another priority is supporting the move from road to rail as a means to reducing logistics costs and facilitating more environmentally-friendly supply chain solutions in South Africa. "Our customers in Gauteng are highly reliant on road and rail for getting their goods to market and expanding the rail capacity will definitely increase the cost competitiveness of their goods, while improving logistics efficiencies and reliability," says Andre. Safmarine Gauteng is also using the company's award-winning Containers in the Community project to support the 'Joburg 2040' vision of achieving 'resilience, sustainability and liveability' by converting containers into schools, libraries, classrooms and computer centres in the Gauteng region. Safmarine launched the Containers in the Community programme 20 years ago. Since then more than 8,000 shipping containers have been used in more than 3,000 projects in Africa and South Africa.
Nashua to join SA’s National Small Business Chamber Informal Small and Medium Enterprises (SMEs) have dominated South Africa’s business landscape since 1994, with a government document entitled Towards a Ten Year Review revealing that about 2.3mn people have owned at least one VAT unregistered company, with 338,000 owners employing a total of 734,000 people. Arthur Goldstuck, manager of research firm Worldwide Worx, has further confirmed the validity of the market, noting that research indicates that there are some 650,000 SMEs in the country. Having taken note of the burgeoning potential of this market, and in line with its own commitment to promoting the growth of the small business sector, Nashua Limited has joined the National Small Business Chamber (NSBC).
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The NSBC is an organisation dedicated to helping small businesses achieve success by helping them acquire knowledge, stay up to date with the latest business trends, and connect with over 30,000 registered SMEs through events and networking platforms. David Hallas, marketing director of Nashua Limited, said, “Nashua Limited recognises that small business development is a vital facet of South Africa’s economy, and is a critical factor in our country’s general growth and progression. “Therefore, Nashua is delighted to join the NSBC, as we will now have direct access to this market. Subsequently, our company will be able to enhance the development of SME’s by providing them with access to solutions that will save them money, increase productivity, and foster a culture of sustainable business.”
African Review of Business and Technology - October 2012
Africa’s new glocal centre of excellence
I
nformation technology services provider HCL Technologies Ltd (HCL) is now operating a Glocal Centre of Excellence (GCoE) in Johannesburg, South Africa, as part of its commitment to building a socially responsible business. - and has been collaborating closely with Cisco to develop the curricula for the centre, which is training local engineers on advanced Cisco technologies. HCL's Cisco Hub in India offers 15 years' experience in creating engineering talent in advanced technologies. The Johannesburg GCoE which is also operated by HCL, is aligned with the India hub to address the skills shortage for advanced technologies in both regions. HCL has already trained an initial batch of 26 local engineers who are already deployed on key projects in five regional hubs across South Africa, with plans to train 100 engineers at the centre over next 12 months. The South Africa Hub capitalises on HCL's core strength in training large numbers of engineers and will see this strategy expanded further and rolled out on a wider base. The GCoE serves customers directly and indirectly through HCL's partner network throughout Africa, It also services clients by developing ICT skill sets thus ultimately creating trained local personnel to deploy and manage advanced solutions. The centre supports a number of vertical sectors including retail and mining, and joins existing GCoEs in the United States of America (USA) and the European Union (EU) in running dedicated recruitment and training programmes for college graduates. A pilot programme running at centres in Seattle, WA and Cary, NC in the US, Helsinki in Finland, Krakow in Poland and Dublin in Ireland has provided a platform for developing IT skill pools in local communities through collaboration with anchor customers and universities.
S03 ATR Oct 2012 Agenda South_Layout 1 20/09/2012 18:00 Page 13
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NEWS
Agenda / South A showcase of mining technology At this year’s Electra Mining Africa MBE Minerals South Africa (formerly Humboldt Wedag) exhibited static scale models showcasing key elements of its broad range of technology. These included its Pneuflot flotation, BATAC jig, ROMJIG, Jones Wet High Intensity Magnetic Separator (WHIMS), PERMOS (LIMS), a Palla Vibrating Mill, TESKA HMS Separator and a wide variety of screens and feeders. In 2010 Indian turnkey engineering giant McNally Bharat Engineering (MBE) acquired German-based Humboldt Wedag Coal and Minerals Technology, including its South African subsidiary and, in the two years subsequent to this acquisition, MBE Minerals
The BATAC jig technology offers excellent separation technology
A USL-D double deck screen for coal sizing and washing
has made excellent headway in aligning its growth strategies with that of its new holding company. MBE Minerals SA managing director, Johannes Kottmann, says the acquisition has expanded his company’s proprietary technology ownership, ideally positioning it to expand its presence across the entire SADC region through the introduction of new equipment, and technology and partnerships. “We want to evolve into a complete technical solutions package provider, from technology creation to product manufacture and installation, along with all associated ancillary equipment. We’re much more than an equipment distributor — we want to be recognised as a fully-fledged process engineering company,” Kottmann says. The company’s Pneuflot technology is coming to the fore worldwide as a flotation technology of the future, rapidly surpassing the popularity of conventional technology. The Pneuflot machine flotation cell improves product quality and the recovery, delivering lower capex and opex, as well as significantly lower wear costs and higher efficiencies. Its BATAC jig technology has been fieldproven through extensive and diverse test work to deliver higher efficiency, huge economic benefits, better product quality, better machine availability and higher throughput rates. The prime advantages of this system are its excellent separation accuracy, its relatively small size and comparatively low capital cost. Accuracy is achieved through electronic control of the air pulse generator and sensing of the thickness and densities of the material layers being separated.
Pneuflot has positively demonstrated its efficiency in many mines around the world
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African Review of Business and Technology - October 2012
A Jones magnetic separator
Chevrolet celebrates production milestone
T
he production team at GM South Africa’s Struandale plant in Port Elizabeth in South Africa, celebrated a production milestone of 200,000 Chevrolet Utilities recently. “Chevrolet Utility has been a winner in all aspects since introduction into this market from quality to performance and sales. The 200,000 units produced in the last 15 years represent a significant milestone for a vehicle which is unique to the South African and South American markets. South Africans love the Chevrolet Utility and we will continue to be focused on giving our customers the best value and quality product for their money,” said Malcolm Gauld, GM South Africa Vice President of Vehicle Sales and Marketing.
The third generation Chevrolet Utility, introduced to the South African market at the end of 2011, has achieved a record market share of 55.4 per cent in the first eight months of 2012
The Chevrolet Utility - now being produced in its third vesrion - offers excellent interior space and comfort, styling, safety and convenience, along with load carrying ability and low fuel consumption. “The introduction of the third generation Chevrolet Utility marked the completion of the first phase of our R 1 billion investment to upgrade our production facilities at Struandale. We are proud of this significant milestone, and we thank our customers for their support in making the Chevrolet Utility the bestselling vehicle in its segment,” said Edgar Lourencon, President GMSSA and Managing Director GM South Africa.
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NEWS
Agenda / West Sirius Energy Resources wins oil block concession in Niger Republic Sirius Group is one of Africa's fastest-growing energy groups with interests in oil and gas; power generation, real estate, shipping, and financial services. The company is committed to provide products and services that break existing barriers in the sectors in which they operate in. In accordance with its international business expansion strategy, the company’s chief executive officer, Mr Tony Rapu, has forecasted a healthy business outlook for its oil and gas subsidiary. Sirius Energy Resources has been awarded an Oil Exploration License for the Grein Block in the North West Region of Niger. The company was listed amongst five companies that were successful in the recent bid for oil blocks in the CEO of Sirius Group, Mr Tony Rapu country, as quoted in the National Daily (Le Sahel, 9 Jul 2012). The Grein Block lays roughly between latitudes 190 and 210 North and longitude 100 and 110 east covering approximately 22,020km2. It falls within the Cretaceous-Tertiary West African Rift system, which is believed to extend 4,000km from Gao trough in Mali to the Anza basin in Kenya (Fairhead, 1986). The Block consists of deep narrow grabens filled with Cretaceous to Tertiary sediments with thickness reaching at times 12,000m. Grein is bordered on the west by the Tenere block owned by CNPC and estimated to have 13billion barrels of probable oil reserves and North of the Agadem block with proven reserves of over 500mn barrels of oil and 10bcm of Natural Gas, also being exploited by CNPC. Mr Rapu acknowledged the co-oporation of the Government and people of Niger and the CNPC in the award of the concession license to Sirius Group and further pledged that it will continue to uphold quality, corporate governance and innovation in its business engineering processes to attract capable hands and will always consider its community social responsibility efforts in strengthening its business ties with its host community.
Lagos bridge set for completion The striking Lekki-Ikoyi Link Bridge in Lagos is Nigeria's first cable stay bridge. It represents a landmark construction project - with the main contractor, Julius Berger Nigeria PLC, using advanced construction techniques and products to overcome environmental and logistical challenges and meet stringent design specifications. BASF Construction Chemicals' high performance admixtures and building system products were vital ingredients in this work. The bridge joins two upmarket districts -
16
Lekki and Ikoyi on Lagos Island - and will help relieve the massive congestion in and around Victoria Island. Initiated in 2009,the new road link is set to open for public traffic in November 2012. The 1.357m long bridge comprises a 722m full-span approach bridge and a main cable-stayed segmental bridge of 635m in length, at the centre of which is a 90m high pylon. Both walkways are two metres wide and the width of the two main carriageways - east- and westbound, respectively - will be 2 x 4 metres each.
African Review of Business and Technology - October 2012
Bukina Faso’s mobile commerce service
A
irtel Burkina Faso, the largest mobile company in the country, has launched a mobile money platform named Airtel Money, or m-ligdi, in partnership with Ecobank. The platform allows consumers to top up their phones with air time, send and receive money, pay their critical utility bills, and access their bank accounts. In Africa, the availability of formal financial services is limited to certain geographic and income ranges, often leaving the majority of the population to rely on unreliable and costly informal channels for their financial transactions. Against this backdrop, the total value of mobile money transfers in Africa is estimated to exceed US$200bn in 2015 due to users’ growing trust in the system and the growing range of services provided. Key market players banks and mobile operators, in particular - are keen to address this opportunity. Commenting on the new service, John Ndego, Airtel Managing Director, said that Airtel Money in Burkina Faso is much needed to provide “access to banking services, initially through money transfers and purchase of goods and services through electronic payments”. He continued, “On a day-to-day basis with Airtel Money, you no longer have to carry cash. All you need is your mobile telephone. This service allows customers to send money to loved ones, pay essential utility bills such as electricity or water, settle grocery bills in the supermarket and even top up your phone with airtime.” Cheikh Travaly, Director of Ecobank, said, "Ecobank will support Airtel to ensure that the product being launched is efficient and secure. We encourage everyone to take advantage of this great service. "
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NEWS
Agenda / West TPS opens shop in Nigeria Transaction Payments Solutions (TPS) has established a presence in Nigeria, building on success in Botswana, Zimbabwe, Kenya, Mauritius, Seychelles, Uganda, South Africa, Lesotho, Swaziland, Malawi and Ghana - in providing electronic payment solutions and services including point-of-sale (POS) equipment, terminal repairs, warranty for terminals, software development and support, and ACI position software. The Central Bank of Nigeria is driving a cashless policy forward, in this cashdenominated country. TPS Nigeria is set to enable businesses of all sizes - including banks - to meet their requirements under the policy, encouraging the use of electronic payments for goods and services and bringing low-cost, secure and convenient financial services to both urban and rural areas. On setting up shop in Nigeria, Liquid Telecom - TPS parent company - builds on a solid track record - whereby, as Liquid Telecom’s CEO Nic Rudnick put it, "Everywhere we had deployed terminals, we put in place and we ensure that we have tested applications, the right people and robust solutions,” adding that the company’s software conforms to international standards and are updated
regularly. On cyber crime, Liquid Telecom’s CEO said it had not experienced any penetration anywhere it is doing business, that the integrity of its systems is secure, and its encryption very high. Executives at TPS Nigeria affirm that it is positioned well to provide a full range of solutions to suit businesses of all sizes including fully-integrated terminal solutions in the form of applications, hardware and communications offerings to suit customer needs - in addition to standard credit and debit card payments. TPS will also provide POS-based prepaid and postpaid bill payment solutions to retailers and bankers, so enabling Nigerians to pay bills such as those for electricity, water, and telephone services using a POS terminal. Furthermore, TPS Nigeria is providing ACI’s Postilion ATM technology, card management, merchant acquisition, retail payments and payment switching products to banks and retailers - providing sales and support for clients with mission-critical applications that offer protection against downtime and data loss. TPS Nigeria is promoting the assistance it would receive from its parent body,
Liquid Telecom - support that it expects to give it an edge in the market. Liquid Telecom’s assets include an in-house software development team that can customise products for individual businesses, and the provision of broadband connectivity throughout Africa using fibre, satellite and wireless broadband. These allow TPS Nigeria to offer fast and affordable connectivity for electronic payments via satellite and wireless communication services. Nic Rudnick spoke positively of the company’s entry into Nigeria, saying the Nigerian operation will be its most advanced pay centre in the region. Harry Ike Nnoli, the head of the Nigerian operation, said Liquid Telecom’s wealth of experience and quality of service will help TPS Nigeria to position itself at strength, and asserted that its customers are already seeing the benefits of doing business with them. Obinnia Abajue, Head of Personal and Business Banking at Stanbic IBTC bank, supported this affirmation - saying that the bank’s decision to go with TPS Nigeria was based on Liquid Telecom’s pedigree across Africa and its commitment to the Nigerian market. Olowo Adebola
Mining industry leaders meet on development
M
ining authorities and industry players met in Accra, Ghana, in mid-September at the 2012 West & Central Africa Mining Summit, to tackle the latest challenges and opportunities in the rapidly developing West & Central Africa mining scene. Among the sector-critical issues discussed were the growth drivers for investments into the regional mining boom especially: China’s Demand for Mineral Resources; and the New Sources of Institutional Capital for Mining Companies & Funding Options for New Discoveries. The Summit also offered opportunities to deliberate on the question: Is Africa an Acquisitions-Friendly Market? This year’s distinguished speakers included: Hon Mike Hammah, Minister, Ministry of Lands and Natural Resources [Ghana]; Benjamin Aryee, Chief Executive, Minerals Commission [Ghana];
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African Review of Business and Technology - October 2012
Hon A Kpandel Fayia, Deputy Minister for Planning and Development/Focal Point, Ministry of Lands, Mines & Energy [Liberia]; Ousmane Cisse, Director of Mining & Geology, Ministry of Mines [Senegal]; Dr Eugene H Shannon, Former Minister, Ministry of Lands, Mines & Energy [Liberia]/President, Natural Resources Development Corporation Inc; Dr Edeki Mudiare, Executive Member, African Iron and Steel Association (AISA) [Nigeria]; Marcus S Wleh, Manager, Corporate Responsibility, ArcelorMittal [Liberia]; Franklin Joseph Asamoah-Mensah, Ghana Representative, Rio Tinto Alcan; Salim Abubekir, Chief Executive Officer, Sumo Coal Pty Ltd; Dr M P Narayanan, Vice-Chairman, World Mining Congress (WMC)/Chairman, Asian Mining Chapter, WMC/President, GIS Development/Former Chairman, Coal India Ltd; and Daniel (Dan) Kenneth Bansah, Vice-President, Exploration, Banro Corporation.
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NEWS
Events / 2012
November
4-6
6-8
13-15
Algeria Future Energy
WACEE
iPAD Mozambique
Algiers, Algeria www.thecwcgroup.com
Accra, Ghana www.wacee.net
Maputo, Mozambique www.mozambique.ipad-africa.com
5-7
8-11
19-21
Logistics West Africa
Cairo Build
WAPIC
Lagos, Nigeria www.cwc-logistics.com
Cairo, Egypt www.cairobuildex.com
Lagos, Nigeria www.wapicforum.com
6-8
8-11
21-22
Kenya International Trade
Mauritanian Mining & Oil and Gas
AfriHealth
Nairobi, Kenya expogr.com
Nouakchott, Mauritania www.mauritanides2012.com
Nairobi, Kenya www.aitecafrica.com
6-8
12-14
27-29
Power-Gen Africa
East Africa Oil & Gas
East Africa-Nigeria Trade & Investment
Johannesburg, South Africa www.powergenafrica.com
Nairobi, Kenya www.eaog-summit.com
Mombasa, Kenya www.eantis.com
6-8
13-15
26-28
Senegalese Mining
Africa Com
MozBuild
Dakar, Senegal www.simsenegal.com
Cape Town, South Africa africa.comworldseries.com
Maputo, Mozambique www.mozbuild.com
Mozambique’s International Construction & Infrastructure Conference and Exhibition
26-28 NovEmber 2012
Girassol Indy Congress Hotel,Maputo, Mozambique
“The only event in Mozambique focusing on the Construction & Infrastructure Industries” www.mozbuild.com 7R ¿QG RXW PRUH DERXW WKH 0R]%XLOG FRQWDFW XV 7 R R ¿QG RXW PRUH DERXW WKH 0R]%XLOG FRQWDFW XV + (0) 207 700 4949 9R RU H PDLO U H PDLO sergio@a sergio@ametrade.org g @ametrade.org g RQ RQ +44 Initiative organi organized zed and supported by: b
20
African Review of Business and Technology - October 2012
Ministério o das Obras Públicas e Habitação da Répu ublica de Républica Moçambique Moçam mbique
S05 ATR Oct 2012 Bulletin_Layout 1 20/09/2012 16:39 Page 21
BROADBAND EVERYONE BECAUSE GLOBAL ACCESS MEANS BUSINESS SUCCESS.
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S05 ATR Oct 2012 Bulletin_Layout 1 20/09/2012 16:44 Page 22
NEWS
Bulletin / Agribusiness Putting smallholder farmers at the centre of the conversation The African Green Revolution Forum (AGRF), which took place in September 2012 in Arusha, Tanzania, continued the global dialogue that began with the World Economic Forum on Africa and the G8 - putting smallholder farmers at the centre of the conversation, developing action plans for Africa's agricultural sector; specifically, AGRF brought together African heads of state, ministers, farmers, private agribusiness firms, financial institutions, NGOs, civil society and scientists, to discuss the right way to scale up investments and innovation for sustainable agricultural growth and food security.
Evaluating the impact of bioscience on poverty Scientists, international development experts, diplomats and government officials met in Johannesburg in September 2012 to assess how the use of biosciences can alleviate poverty and enhance sustainable development on the continent; key on the agenda of the four-day conference, organised by the New Partnership for Africa’s Development (NEPAD) was the evaluation of the impact of BioFISA, which was established jointly by the Governments of Finland and South Africa to provide support for the Southern African Network for Biosciences (SANBio) initiative, established by NEPAD.
Indian company sets up tractor plant in Zambia Mohan Exports of India - which specialises in the manufacture of agricultural equipment and assembles tractors under the brand name Malhotra - is establishing a tractor assembly plant in Zambia, predicted to create over 5,400 jobs; the firm intends the plant to serve as a distribution centre for the southern African region. (Nawa Mutumweno)
Livestock sector development and poverty reduction According to the Food and Agriculture Organisation of the United Nations (FAO), carefully tailored policy and institutional changes can help to unlock the livestock sector's poverty reduction potential; "Although an estimated 750mn poor have a major stake in the livestock sector, only a small minority of them have so far been able to take advantage of the opportunities provided by livestock sector growth," say the authors of an FAO book entitled ‘Livestock sector development for poverty reduction: an economic and policy perspective’.
The FAO says smallholder livestock keepers need support to gain access to investment, technology and markets
Female leaders acknowledged for agricultural innovation The Yara Prize 2012 has been awarded to Dr Agnes Kalibata, Minister of Agriculture and Animal Resources in Rwanda, and to Dr Eleni Gabre-Madhin, outgoing CEO of the Ethiopian Commodity Exchange (ECX) in Ethiopia; the Yara Prize Committee selected these two prominent African female leaders for their work on groundbreaking areas for the African Green Revolution: effective public policies in support of agricultural growth, and profound innovation in agricultural markets.
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NEWS
Bulletin / Agribusiness A ‘toolkit’ for mobile banking and agricultural services
Lesley Denyes, Programme Director of Mercy
New Holland Agriculture, together with its
Corps’ Agri-Fin Mobile initiative, adding,
distributor New Holland South Africa, has
The global humanitarian agency Mercy Corps
“With AgriFin Mobile, we want to give small-
showcased its full range of tractors and
has launched a multi-country programme
scale, low-income farmers access to
harvesting equipment at the Pretoria
that will use mobile technologies to give
resources and services that have traditionally
Spring Show in Tshwane, South Africa - with
farmers a package of services to increase
been beyond their reach.”
the TD5 Series taking centre stage; farmers
their harvest - with the Agri-Fin Mobile initiative, in partnership with the Swiss Agency for Development and Cooperation
were very impressed with the new series,
New Holland shows efficient tractor at Pretoria event
whose three key models range from 66 to 83kW - including Ockert Scheepers, Tractor
(SDC), identifying and connecting financial
Product Manager at New Holland South
institutions, agriculture specialists and
Africa who said, “The TD5 attracted a lot of
mobile network operators and providing
interest from our guests and from visitors to
mobile-enabled, bundled packages of
our stand, and deservedly so - this series is
financial, training and information services,
the perfect answer to South African farmers’
eventually to more than 180,000 small-scale
requirements in this power segment: a
farmers, in Indonesia, Uganda, and
tractor that combines fuel efficiency, high
Zimbabwe, with the aim to expand to an
performance and exceptional comfort
additional five countries after an initial three-
while offering a wide range of options,
year phase; “In Africa, agricultural output is 56 per cent below the world's average,” said
New Holland Agriculture has showcased the highly versatile new TD5 tractor
capable of different tasks around the farm – a true all-rounder.”
African Review of Business and Technology - October 2012
23
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NEWS
Bulletin / Investment AfDB President emphasises Guinea’s potential
communities in the country; the initial rollout
2012/13 in outstanding company financial
phase of the satellite-backhauled, solar
performance, particularly relating to auditing
powered solution, on the Tigo Ghana mobile
and reporting standards, out of 144
network, has now been completed, and
economies worldwide, a result that follows
subscriber uptake and usage levels in these
SA’s impressive move up from second place
hitherto unconnected, rural village
in 2009 and fourth place in 2008; “We’re
communities, have surpassed all parties’
extremely proud that we’ve achieved such a
expectations for thhehe project has been
renowned ranking for three years because
funded by the project, which has been
foreign and local investors looking to invest
funded by the Ghana Investment Fund for
in emerging economies will be reassured by
Electronic Communications (GIFEC), an
the reliability of our financial statements,”
implementing agency of the Ministry of
says Bernard Agulhas, CEO of the
Communications set up by the Government
Independent Regulatory Board for Auditors
of Ghana to facilitate the provision of access
(IRBA).
to ICT, Internet connectivity and communications infrastructure to the nation’s under-served and un-served areas.
South African power sector is ready for investment There are huge opportunities for investment
President of the African Development Bank, Donald Kaberuka
Viridis Africa attracts clean tech investors
and innovation in South Africa’s power sector, according to Dr Steve Lennon, power
Viridis Africa, a clean energy investor event
utility Eskom’s group executive for
The President of the African Development
taking place in mid-October 2012 in
sustainability, speaking at the fifth edition of
Bank, Donald Kaberuka, speaking in Conakry,
Johannesburg, South Africa, has been
the Innovation Summit in Johannesburg to
Guinea, has stressed that the AfDB is
designed to attract entrepreneurs and
entrepreneurs and creative thinkers from
committed to working with Guinea to
corporates who are seeking funding to
academia, private companies and the
develop its potential in the areas of
introduce clean technology solutions and
government; “The power sector has been on
infrastructure and energy, and has called for
services over two days, incorporating investor
a roller coaster for many decades, and there’s
Guineans to work together in effectively
presentations, company and project
a big gap in access to advanced forms of
managing both the country’s economy and
investment proposals - and insights into
energy across the African continen,” he said,
governance; Mr Kaberuka also emphasised
growth, financing and development within the
before calling for an integrated resource plan
the need for investment in human resources
cleantech sector; principals and technology
(IRP) to address the prospects.
at a visit to the country in mid-September
pioneers presenting business opportunities at
2012, to reinforce dialogue between the
this event include venture capital, private
Bank and Guinea, and to evaluate the
equity, project and corporate finance outfits
Investment in Mozambican infrastructure highlighted
country’s economic progress as well as its
and others dedicated to the clean tech sector,
Infrastructure development in Mozambique
needs and priorities in terms of economic
with American and European funding
will be focused on expansion and
and social development.
agencies, technology specific investment
improvement projects in the transport and
funds and major companies seeking strategic
energy and power sectors, with US$22bn set
Investment in mobile connectivity for rural Ghanaians
alliances and acquisitions.
to be invested in the transport sector, and
Altobridge Limited, a specialist in technology
Survey agains ranks as first SA auditing and reporting
power; in this context, iPad Mozambique
that cuts the cost of operating mobile telecommunication networks, has partnered
The World Economic Forum’s (WEF) Global
together government officials and private
with a Ghanaian communications network
Competitiveness Report, which is conducted
investors to discuss and present infrastructure
solutions providers to bring mobile voice and
annually has ranked South Africa number
partnership opportunities on 13-15
mobile broadband connectivity to rural
one for 2010/11, 2011/12 and now for
November 2012 in Maputo.
24
US$9.71bn is earmarked for energy and
African Review of Business and Technology - October 2012
(www.mozambique.ipad-africa.com) brings
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FINANCE
Kenya
Operations at Old Mutual Running and managing operations in the financial services sector can be both quite challenging and interesting, as Old Mutual Kenya’s CEO, Tavaziva Madzinga, reveals
T
hese days, providers in the financial services sector need to remain quite innovative and ready to anticipate clients’ needs; they must ably respond to a discerning and ever-changing market, and must also continually provide relevant and meaningful products and services. Journalist Fred Ndung’u recently paid Old Mutual Kenya (OMK) group’s Chief Executive Officer, Mr Tavaziva Madzinga (popularly known as Tava) - a return visit to get a feel of recent developments at the institution and in the sector generally. Pulling business together Evidently a highly focused and determined gentleman, the youthful, friendly, confident and knowledgeable CEO had in an earlier interview
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26
African Review of Business and Technology - October 2012
informed us that the global group was undergoing an integration process after Old Mutual Kenta Group CEO, realisation that operations, Mr Tavaziva Madzinga (Tava) in isolation, of its different stations worldwide have not been much beneficial. “Cohesion is on-going and we have to travel a lot to pull things together,” he had said summing up the then brief introductory session. Today, the OMK group continues to introduce new innovative products. The group’s most recent and interesting product has been the Rafiki Halisi Range, a low premium range of products targeted at the mass market. It includes straight, easy-to-sell and interesting life insurance, investment and education plans that do not carry conditions such as prior medical testing and certification. “The group has engaged in a brand campaign in the mass Media (radio, TV and Billboards) and through Social Media among others to increase its brand visibility and to increase awareness in all insurance products we deal in,” explained Tava on recent initiatives. The publicity initiatives are very useful in reaching out to the Y (youthful) generation who comprise about 75 % of the population; this critical mass must learn and appreciate the usefulness and relevance of the financial services sector. In recent months the group’s brand visibility has increased and benefitted operations. On overcoming challenges and impediments to growth in the financial services sector: “We invest a lot of money in our global operations and also in the country’s operations. Here our investments are in the range of hundreds of billions and when the economic climate lowers stocks at the Nairobi Securities Exchange (NSE), our assets tend to decline. We are unable to protect our stocks at the NSE due to these extraneous factors so we advice our customers and clients to invest in long-term instruments that can weather the storms when the market dips or ups,” Tava said and added; “It is our duty to educate customers on the best investment vehicles especially when disposable incomes are daily affected by inflationary pressures among other factors.” He appreciated the many new developments that have happened in the legislative environment guiding the capital market and the insurance sectors. The Insurance Regulatory Authority (IRA) has, for instance, devised and designed new rules and guidelines that are positively protective of both the market and consumers and hence impacting positively by boosting consumers’ confidence and growth. The Insurance Act has also to a big extent improved the sector though there still exists the need for legislation to keep moving with the times and to adopt and adapt new ideas that take account of new developments not just in the sector but in the country’s overall economy and the world. A few years ago, OMK piloted a project that involved selling of it
S06 ATR Oct 2012 Finance 1_Layout 1 20/09/2012 18:03 Page 27
Kenya products and services through over 100 Postal Corporation of Kenya Post Offices spread throughout the country. The programme was later suspended owing to a challenge that arose on how to collect premiums for life products. After the required restructuring, the Post Office points shall still be used to market and sell investment products. The post office still remains ideal for marketing products owing to its good human traffic inflow and its accessibility by a multitude of people countrywide. In the last few months, the group has learnt crucial lessons that it shall keenly continue embracing. One of the lessons is that selling traditional insurance products is a big challenge. Among its main products include financial solutions for Corporate, Small & Medium sized Enterprises (SMEs) and Individuals. Risk business for corporate includes Group Life Cover; Permanent/Total Disability; Disability Income; Critical Illness; Group Last Expense and Credit Life. Risk business for individuals include Max range of products; Green Light range of products; and the recently launched Rafiki Halisi range of products. Investment products for corporates and SMEs include: Pension/Provident Fund Asset Management; Corporate (Life Funds/Endowment & Charitable Trusts) Asset Management; Third Party Administration Services; and Asset Management Services. Investment products for individuals include Private Wealth Management, Education Plans and Unit Trusts (Equity Fund; Balanced Fund/Toboa; East Africa Fund; Bond Fund; and Money Market). The group is keen to think widely and innovate. It is researching on how different people and different cultures view insurance. It is keen to continue providing its services in more palatable ways and is researching to be able to make insurance and other financial services more accessible and affordable. Modern IT systems including, the internet and cloud computing, are enabling easier integration of insurance firms with banks while mobile networks are enabling faster and easier payments of claims. Courtesy of a new platform, the group shall design products that are consistently affordable and that meet the biggest needs of the masses such as for funerals and education. The group is experimenting with three to four modules that are at developmental stages for mobile transactions in insurance among other financial products.
FINANCE
The Old Mutual Kenya group head office in Upper hill, Nairobi
years of age (Y generation); companies and organisations cannot operate as before with regards to pension and retirement benefits payments. Where companies have high turnover, it is pertinent for companies to adopt and adapt innovative pension schemes since traditional vehicles are no longer relevant. The group is looking forward beyond short-term politics and economic shortfalls in the country. It is confident in the projected growth of the population and economy as envisioned in Vision 2030 Blueprint. “The EAC region is the right place to be. I urge investors and citizens not to be disturbed or distracted by short-term challenges. Moreover challenges are not unique to Kenya and occur in every society in the world,” observed Tava. ■
Regulation and growth in the insurance industry In the insurance industry, the launching of the Insurance Regulatory Authority (IRA) is a big step forward that will promote proper regulation and growth of the industry. The raising of the capital requirements for investing firms will go a long way in strengthening underwriting companies all for public good. Some provisions in the Insurance Act need to be amended, however, to stimulate further growth of the industry and economy. Policies are required for stronger and better governance of companies and to empower management take better control of companies as distinct entities and to enable them weather undue influence from owners. While the IRA is promoting more dialogue and interaction among insurance companies, the Association of Kenya Insurers (AKI) has issued new guidelines and is seeking comments and ideas first before implementation of new measures-- a good development for fledgling companies. The adoption of risk-based solvency analysis model where the capital requirements depend on the risks the companies intend to cover is progressive for the industry. Advances in the ICT (information communication technology) have been characterised by a very high penetration of mobile payments; Kenyas has one of the highest penetration levels in the East African region. Old Mutual has to everyday think smart on how to reach clients with its products message and how to access customers’ feedback; this is especially critical now that almost 50% of the population is under 18 African Review of Business and Technology - October 2012
27
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FINANCE
Technology
Banking on an inclusive Africa How digital commerce is enabled at financial institutions seeking to reach out to Africa’s unbanked
I
n rural Africa, chances are that a farmer will own a mobile phone but not a bank account. That is the paradox that many Africans live with. Despite digital and mobile technology rapidly extending to the most remote parts of the continent, banking penetration has remained dismally low. But things are fast changing. Initiatives such as M-Pesa, WIZZIT Payments, and MTN MobileMoney are transforming the way that Africans access and use financial services. Banks are increasingly looking to leverage these innovative initiatives to reach out to larger segments of the population, and bring more Africans into the banking fold. One of the key players in the market is Standard Bank who has partnered with Infosys, a leading technology services provider. Infosys’ Finacle Digital Commerce Solution will enable Standard Bank to leverage agency-based banking, and offer value-added financial services across markets, in a cost-efficient manner. Using the solution, Standard Bank will be able to reach out to a vast base of remote customers through a network of agents. Says Terry Moodley, Chief Executive of Personal and Business Banking Africa at Standard Bank, “It has taken us 148 years to build approximately 750 bank branches, but just two years to get nearly 10,000 points of representation in the form of bank agents. Enabled by technology, these agents will be able to help customers open bank accounts and conduct basic transactions.” Digital and mobile banking comes of age More than 2.5bn adults worldwide do not have a formal bank account, most of them in developing economies. Among regions, the Middle East and North Africa have the lowest account penetration with only 18 per cent of adults reporting a formal bank account. The most commonly reported barriers to account use are physical distance, lack of proper
28
M. Haragopal, Senior Vice President & Global Head - Finacle, Infosys Limited
documentation, and high costs. A checking account in Sierra Leone, for instance, costs the equivalent of 27 per cent of GDP per capita in annual fees . For years, the unbanked have relied on their own savings. But their meagre incomes severely limit their ability to pursue growth opportunities, become entrepreneurs, get a good education, or contribute to the economy. They need inclusive financial systems that can keep their hard-earned money safe, and provide access to vital
African Review of Business and Technology - October 2012
services such as credit, loans, and risk management products. It is here that mobile banking and digital commerce solutions are proving to be extremely valuable. Millions of unbanked people are now able to deposit and withdraw cash, purchase goods, and pay bills in a relatively cheap and secure manner through agents who act as intermediaries, converting electronic money into real cash. These agents typically operate out of retail stores, gas stations, or post offices, and sometimes make
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daily or weekly rounds among clients. Banks can take advantage of the agents’ existing infrastructure and client relationships, to costefficiently expand their financial reach. “As Africa approaches one billion consumers — many of whom live in underdeveloped areas — the opportunities for banks are massive,” notes Terry. “When you think about digital commerce, the question is how do you leapfrog into this new era from a technology point of view, and heighten economic activity and social development?” Financial Inclusion with Finacle Digital Commerce Solution In June 2012, Infosys announced that Standard Bank would be leveraging its Finacle Digital Commerce Solution to offer a range of value-added financial services to customers, especially those located in remote areas. Standard Bank is one of Africa’s most reputed banks with operations in 18 African countries, and total assets of approximately US$185bn. Infosys, in turn, is a global leader in consulting, technology and outsourcing with revenues of over US$7bn. Infosys’ partnership with Standard Bank began over two years ago when the bank chose Infosys to standardise core banking systems across 17 African countries. Finacle Core Banking Solution has been successfully rolled out across Nigeria and Namibia, and is currently being implemented in Uganda. Standard Bank also selected Finacle Digital Commerce Solution to be implemented across its operations. The solution leverages the power of digital money to unlock new revenue streams, extend the reach of distribution, and foster customer loyalty for financial institutions, telecom service providers, and retailers. Speaking about the idea behind the solution, Haragopal Mangipudi, Global
Head of Finacle, Infosys, says, “In India, a big chunk of the population is unbanked. A vegetable or milk vendor, for instance, may not have enough money to open a bank account in a branch. And if a woman in rural India has to deposit Rs.100 in a bank, she would have to take half a day’s leave from work, travel on a bus which would cost her approximately Rs.20, and wait in the branch queue. So even if she wanted to open a no-frills account, the whole experience of depositing money in the branch would cost her quite a bit of money. Hence, we wondered if we could do away with the bank structure.” The Finacle Digital Commerce Solution enables traditional bank branches to be replaced with agents who can offer a wide variety of services including customer onboarding, deposits and withdrawal, banking transactions, and investments. The solution also delivers “cashless convenience” to customers through digital wallets supported across multiple channels such as mobiles and the Internet. “We’re trying to spread the gospel of cashless banking,” says Hargopal. It’s an idea whose time has come. Says Terry, “In South Africa, we’ve already developed an agency-based community model which will enable customers to open a bank account within just 10-15 minutes, so that they can immediately begin depositing money and making transactions.” Regulatory support Mobile banking and digital commerce are opening up new avenues for financial inclusion in Africa. And it isn’t just banks and consumers who are excited. According to Hargopal, regulators in Africa are also enthusiastic, largely because of the traceability that digital money enables, as
well as the efficiency of the system, and affordability for the unbanked. “If people have bank accounts, and are able to transform their small disposable incomes into micro-savings, micro-mutual funds, and micro-insurance – that’s a powerful thing for regulators,” says Haragopal. Observes Terry, “In Nigeria, there is a regulatory initiative to make transactions cashless. So, a lot of the banking infrastructure that we’ve gotten used to in the rest of the world will be bypassed in Nigeria they’ll leapfrog straight into the digital era, and get rid of cash. Imagine the efficiency that that will bring. Banks will be able to expand their reach to a brand new customer base, and improve customer experience.” Setting a trend for the world Hargopal notes that transaction costs in countries like Europe are rising. Another predominant concern is the environmental impact of paper money. “The planet’s resources are finite and will not be able to support a continued demand for paper,” says Hargopal. “Besides, today’s generation – the digital natives – are more comfortable with digitised commodities.” The time is ripe, therefore, to leverage technology to make transactions more accessible and affordable. Africa is already doing that through digital commerce and mobile banking which connects lenders with depositors, brings more customers to the banks, reduces costs, and drives increased commerce. “Africa is a wonderful continent to take technology to because you can witness tangible benefits,” observes Hargopal. “In banking particularly, many of the lessons from Africa, where countries have leapfrogged traditional banking systems, can be brought into developed countries as well.” ■
Enterprise storage and backup for the small business Western Digital (WD) offers the WD Sentinel DX4000, a complete network storage solution designed specifically to meet the demands of today’s small to medium sized business (SMB). Powered by Intel D525 Dual Core Atom CPU, with Windows Storage Server 2008 R2 Essentials operating system and 25 Licenses, this all-in-one storage solution offers a combination of enterprise-grade functionality and pre-configured ease of setup, ideal for the South African SMB market. “Businesses of all sizes are faced with an explosion of digital content, compounded data retention laws and regulations. However, the technology harnessed by enterprise to meet these challenges has been out of reach for the majority of SMBs, until now. The WD Sentinel DX4000 is an affordable, easy to set up, scalable storage solution that meets the needs of the SMB market,” says Anamika Budree, Western Digital Country Manager – South Africa. “This integrated hardware and software solution provides a simple way to centralise documents in one secure place, with enterprise grade backup and recovery that does not require additional license fees. It also offers remote access and administration from a web browser or mobile device, cloud enabled architecture, and local cloud disaster protection.”
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African Review of Business and Technology - October 2012
The WD Sentinel small office storage server is the ideal storage, backup, and secure remote access solution for any SMB
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Technology
FINANCE
How social media can help your bank The reasoning underpinning banks’ attempts to adopt technologies and engage with online communities
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y earliest memories of banking are about accompanying an older family member to the nearby branch to share coffee and conversation with the manager. Since then, banking has come a long way from the branch to establish a ubiquitous presence through ATMs and Call Centers, and more recently, the Internet and Mobile. Yet, despite becoming remote, banking has still retained its social character, except that the socialisation doesn’t take place inside the branch anymore. Nor is the interaction limited to the branch staff. Instead, it embraces a vast community of people – friends, peers,
Manish Jain, Industry Principal at Infosys
influencers, activists, bankers, and banking customers – who come together from all corners of the globe to engage with each other over social networks. The phenomenal progression of social media (the telephone took 75 years to reach 50 million users, television took 13, while Facebook did it in less than four!) has generated much hype about social networks taking over banking in the not too distant future. While there’s no denying the power of social media, it’s important not to exaggerate its prowess. Banking, for all its reliance on technology, is fundamentally about creating a trusted relationship with customers – a relationship, which even today is built through personal interaction. I don’t see that happening over Facebook for a long, long time. Delivering through social media So, should banks continue to do what they’ve largely done so far, which is to ignore the potential of social media, or deny it altogether? The answer is an emphatic no. For, while banking may not have migrated to the social web, over a billion customers have done so and the only choice that banks have is to follow. Where should banks go and what must they do in social media? This article explores some ideas. Social media’s greatest potential is in customer engagement, which its different tools contribute to in different ways. Social Analytics enables banks and other organisations to listen and respond to customers. Blogs make the communication twoway; Communities enable customers to network with each other as well as their bank to discuss common
While banking may not have migrated to the social web, over a billion customers have done so and the only choice that banks have is to follow” issues; Content Aggregation and Distribution helps them take that interaction to a new level through resource sharing; and Mobility eliminates all barriers of time and space to enable engagement at all times, in all places. For banks taking their first steps towards social media, the goal must be to simply “listen and learn”. What does that involve in this context? ● It involves “defining the question”, in other words, figuring out: • Who is doing the talking • What they are saying • How much influence they hold over other community members • Where they hang out • The nature of their sentiment and, • An appropriate response to the above. ● It involves selecting the topics of conversation to be monitored from a myriad of options (Brand? Service? Corporate Image?) ● It involves listening to consumers in different social media forums such as blogs, chat rooms and communities, and analysing and reporting the findings. ● Finally, it involves generating actionable insights that are aligned to the bank’s branding strategy. For instance, identifying which conversations are relevant to the brand’s marketing message; which topics, content and
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events drive consumer engagement; and which communities, topics, and conversations drive business value. Analysing social business All of the above can be achieved through Social Analytics, which in the words of John Lovett is “…the process of measuring, analysing and interpreting the results of interactions between brands and consumers and/or businesses across digital channels in the context of specific goals and objectives.”
An industry leader, an opinion former Manish Jain is an industry principal with Infosys and a tier leader of Infosys leadership team. He is an astute professional with over 18 years of worldwide insightful experience in Retail and Corporate Banking, Capital Market, Business Process Management and Information Technology industry across locations. He has worked with various renowned financial institutions. He had published various thought papers Banking, Risk and Compliance in Indian Banker journal, Bob's Guide UK and many other blogs. In simple terms, social analytics enables organisations to gather and make sense of the ceaseless conversation of their customers. Specifically, it collects relevant discussions, posts, comments, reviews and other information from across the social media universe, and distills what is essentially unstructured data into usable insights.
It is a simple, cost effective way to track customers’ pulse in real-time; it helps build brands and brand value; it is useful in evaluating marketing campaign effectiveness and is a viable, better alternative to traditional market research. Banks can employ social analytics to conduct different types of analyses, namely of sentiments, trends, media and influencers. The following examples are illustrative: ● Social analytics can identify the general perception of a bank by its customers by classifying every bit of content (conversations, ratings, feedback, opinion etc.) as Positive, Negative, Mixed, or Neutral, with the help of a sentiment algorithm. But that’s not all. It can estimate the bank’s Share of Voice by conducting a similar analysis of conversations about its rivals. Sometimes, social analytics can flag off a problem, which needs immediate resolution: consider for instance, that a bank discovers a number of customer complaints about the same ATM in the last one hour. It can alert the service team right away, even before they hear directly from customers. ● Social analytics can represent data graphically (as charts or graphs) to project clear trends. ● It can conduct media analysis to tell the bank how its customers are distributed across the social media universe, so that it (the bank) can monitor the most important hubs of conversation. ● Further, it can also identify the most socially influential participants (in conversations about the bank) based on their pattern of activity, the number of
Banks can employ social analytics to conduct different types of analyses of sentiments, trends, media and infl encers ” inbound links to their posts, and the number of outbound communications made by them. A popular misconception is that responsibility for social media (and hence social analytics) rests solely with the marketing organisation. However, the reality is that insights from social media can be equally relevant to the other functions within banks – from customer service to compliance to IT. What’s more, the same information can imply different things to different functions. For instance, consumer demand for banking services delivered over social networking sites might be seen as an opportunity by the sales and marketing unit, but as a source of risk by the compliance function. Hence, it is important that all the important functions within the organisation track social media from their respective perspectives. Finally, a word of caution. Banks, which have studiously avoided social media thus far, must be careful not to swing to the other extreme. They need to test the waters before plunging right in. The way to do that is to employ social analytics to listen to and analyse social media conversations, as a first step. ■ Manish Jain, Industry Principal at Infosys
Donors welcome AfDB fund implementation The Mid-Term Review of the African Development Fund (ADF-12) implementation that concluded in Praia, Cape Verde, in midSeptember 2012 with donors and stakeholders encouraging the African Development Bank (AfDB) to continue working to achieve results in its development projects and institutional reforms. The meeting, actually held 13-14 September, was opened by Cape Verde’s Finance and Planning Minister, Cristina Duarte, and was attended by Deputies from donor countries; AfDB Governors for Côte d’Ivoire, Ghana, Kenya and Malawi; as well as the Bank’s President, Donald Kaberuka - who thanked the deputies for their continued support of and confidence in the Bank Group. He said, “The AfDB has produced good results during the financial crisis and remains a reliable partner, particularly for regional integration projects and assistance to fragile states.” President Kaberuka also congratulated Cape Verde for adopting standing governance policies that were conducive to the country’s
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African Review of Business and Technology - October 2012
socio-economic development. And, in a critical analysis, President Kaberuka emphasised that, while the AfDB is a more efficient organisation today, much remains to be done, both in terms of institutional effectiveness and in supporting countries’ inclusive growth and the green economy. Participants attended presentations on AfDB’s operational priorities, institutional effectiveness, resource allocation, ADF’s financing capacity and sustainability over the long term, as well as on development results. Deputies noted with satisfaction the implementation of the Bank’s operational priorities, notably its support for fragile states, its regional operations and improvements in fiscal governance. With respect to institutional effectiveness and development, the deputies welcomed the Bank’s decentralisation policy, and its presence in 34 countries, as it brings the institution closer to field, and ensures greater results and a positive impact on beneficiaries - as in the case of the Bamako-Dakar Corridor road project.
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Wipro TECHNOLOGY
Banking transformation through technology Arunachalam Srinivasan, vice president, banking products and emerging markets at Wipro Technologies, on the technology imperatives facing the new generation African banks
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ver the last five years, Africa has been steadily impacting the global business scenario. A population of over a billion people and nearly as many cities of one million people as Europe places the continent in a prime spot to emerge a strong economic power centre. According to McKinsey, Africa’s GDP in 2020 is expected to touch US$2.6 trillion. Though oil will continue to be a major contributor, telecom, banking, retail and construction sectors are fast growing and flourishing. Africa’s banking sector has grown rapidly in the past few years. In most of the larger economies growth in the financial sector has outgrown the increase in GDP. Financial Inclusion and micro finance reforms by the governments have enabled banks to extend services beyond urban areas. In addition, banks in the region are beginning to increasingly subscribe to national developmental agendas as part of their plans. As per McKinsey, there will be 128mn households with discretionary income by 2020 and the
number of Africans of working age will reach 1.1bn by 2040. Global banks have already recognised this trend and have started investing in the larger economies. Banking on technology The African banking market consists of a diverse segment of customers with both sophisticated high income ones as well as a significant number of low-income emerging customers and the challenge ahead of the banks is to meet the demands of this diverse market. This scenario offers immense potential for local banks to cash in on the opportunity. Large local banks are already expanding beyond their home countries. But competition from foreign banks and nontraditional finance players means local banks need to innovate in their core offerings and expand into areas like corporate banking, wealth management and investment banking
which are traditional strengths of foreign players. An evolving regulatory environment has placed pressure on the investment activities of banks and has placed pressure on profit margins. In addition, banks in the African region struggle with high cost to income ratios.
WIPRO - building a bankable future
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TECHNOLOGY
Wipro
Technology is helping banks address these imperatives. Technology has evolved so that banks can do away with disparate systems and yet have a 360 degree view of the customer. Best-of-breed platforms in the transactional and analytical space are available to banks, helping them become agile and enabling them to introduce innovative products in quick time. African banks have the opportunity to leapfrog a generation by adopting cutting edge technology and go directly to using next generation delivery models, cloud computing, mobility, analytics and compliance management processes to reduce cost, manage risk, acquire more customers, and increase customer satisfaction. Banks in Africa must focus on leveraging the following benefits of technology: ● Differentiate from competition: Challenge competition by offering innovative banking services at reduced transaction costs. ● Gain on the cost advantage: Reduce maintenance costs by integrating disparate systems that have become resource intensive over time. New banking systems offer a high level of scalability, reduce costs and eliminate manual processing ● Keep pace with regulatory changes: Compliance costs are growing as regulatory requirements balloon. The penalty for non-compliance is daunting. Banks need to respond quickly within small windows to regulatory demands. Systems that are compliant with regulatory bodies provide the necessary capability to meet the needs. Furthermore, newer regulatory changes will demand improved reporting standards. ● Meet customer needs: The aim here for banks is to simplify banking offerings and provide an on demand banking experience to customers. Banks must overhaul their services, increase self-service options and ensure a consistent experience across channels to retain customers. ● Be future ready with an enhanced banking experience: The right mix of traditional and new age channels open opportunities for increasing customer loyalty. New banking systems enhance customer experience by supporting modern facilities like image-based ATMs, Digital Wallet, Near Field Communication (NFC) and device agnostic mobile applications. Together with secure digital identity management, these features build trust, cultivate customer–centricity, and drive profitable growth.
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African banks have the opportunity to adopt cutting edge technology, using next generation delivery models, cloud computing, mobility, analytics and compliance management processes to reduce cost, manage risk, acquire customers, and increase customer satisfaction” The time for transformation Any banking transformation (either a core banking or risk based banking transformation) is a complex task. What about the existing systems? Would they be aligned to the new system or would they be disbanded? How do banks ensure that their customers are not inconvenienced due to the transition and achieve a seamless transition to the new system with Business As Usual kind of a scenario? These are the typical questions bothering the senior bankers before they embark on a transformation journey. Time and cost overruns can make the transformation expensive and add risk before the benefits reach the end customer. Execution must therefore become the prime focus of the bank. Objectives should be clearly defined, monitored and reassessed during the entire transformation process. For banks, IT strategy and enterprise roadmaps must be clearly defined to enable the right technology and application platform selection. In addition, quality, reliability, flexibility and local market expertise are also critical considerations that need to be taken into account when deciding on the right platform selections. It is, therefore, important for banks to partner with the right provider of all the services associated with a banking platform
transformation. Wipro Technologies has partnered with several of the top African banks and also caters to a diverse customer segment across the globe that includes 50 of the world’s leading banks as well as microfinance organisations. Our solutions across retail, enterprise and investment banking address transformational changes for banks. Our expertise with the widest range of core banking and banking analytics platform related transformation in large commercial as well as co-operative banks in India, the Middle East and across the globe have helped banks achieve greater agility without compromising efficiency. Wipro Technologies provides value add in terms of the wide spectrum of services ranging from overall project management, consulting, business analysis to implementation, development, integration, data migration and testing, with continuous support. Be it optimising your existing platforms or investing in new platforms for transformation, Wipro Technologies will be the one stop provider of choice across technology, operations and infrastructure. ■
Arunachalam Srinivasan - Vice President, Banking Products and Emerging Markets, Wipro Technologies
Commitment to African Banking Wipro has unwavering commitment to Africa. With over 500 employees and three offices in Africa and backed by a strong global team of exprienced professionals in the banking domain, we are geared to provide tailor made IT services and solutions for this market. To know more about how Wipro can help visit http://www.wipro.com/industries/banking/or write to us at info@wipro.com
African Review of Business and Technology - October 2012
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COMMERCE
Malaysia
Sourcing for Malaysian products? – Welcome to INTRADE 2012 I
nternational Trade Malaysia (INTRADE) 2012 is organised by Malaysia External Trade Development Corporation (MATRADE). MATRADE was established in 1993 as the national external trade promotion agency under Ministry of International Trade and Industry (MITI), Malaysia. MATRADE serves as the focal point for foreign importers to source for Malaysian products and services. Driven by the vision of positioning Malaysia as a globally competitive trading nation, MATRADE assists Malaysian companies establish their presence overseas through various promotional programmes (mission, participation international trade fairs, capacity development initiatives, etc). INTRADE is the annual international trade and export exhibition organised by MATRADE to enhance networking, business matching, exchange of ideas and knowledge amongst the business communities from different countries, especially those seeking to venture into the global market. The theme for INTRADE 2012 is "Energising Export Growth", to reflect the importance of sustaining Malaysia's export opportunities to increase competition in the global economy. This year INTRADE will be focusing on four specific industry sectors that will stimulate economic growth and bring ample business opportunities. Known as one of the region’s leading export-oriented general trade fairs, INTRADE 2012 will feature four products and services clusters: ● Automotive (automotive, parts and components). ● Electrical & Electronics and Information & Communication Technology (parts and components). ● Manufacturing Supports. ● Lifestyle (furniture, footwear, fashion accessories and textiles, gifts, souvenirs and jewellery).
The business of buying meets with the business of networking and knowledge-sharing at INTRADE Malaysia
A showcase for trade INTRADE 2012 is a unique opportunity for companies to showcase export-ready products and services to potential buyers. Regarded as amongst the region’s most important trade platform, trade buyers and visitors converge at INTRADE Malaysia in order to explore and become influenced by the brands, products and services that they see and try. The event serves as an effective venue for all to source Malaysia’s wide range of high quality products and services. The business of buying In conjunction with INTRADE 2012, MATRADE will also organising an Incoming Buying Mission (IBM). IBM is a business matching programme which sets up one-on-one business meetings for Malaysian exhibitors and companies with international buyers. IBM is a central, cost effective platform where meetings take place between trade buyers from various countries with local participants comprising exhibitors and suppliers. Foreign buyer attending the business meetings are entitled to complimentary accommodation (up to five days four nights stay) airport and hotel transfers. ■ For further details on INTRADE 2012, log on to: www.intrademalaysia.my
INTRADE Malaysia offers opportunities to showcase and acquire high quality products and services
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For more information on how to participate in the IBM, contact: MATRADE Johannesburg at tel: +27-11-268.2380/1 or email to: johannesburg@matrade.gov.my
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Free Zones COMMERCE
Ghana’s new free zone infrastructure The Government of Ghana has exercised a measure of caution, whilst retaining a proactive stance, on delivery of facilites for the Sekondi Industrial Estate
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arly in 2012, the Government of Ghana contracted a loan of US$67mn from the China Development Bank, in order to develop the basic infrastructure of the Sekondi Industrial Estate (SIE) - in Sekondi-Takoradi, the largest city in Ghana’s Western Region - so as to attract the expected industrial tenancy after such infrastructure is completed. The estate is being developed by Hasan Investment Ghana Ltd. The development of the Sekondi Industrial Estate as a second Export Processing Zone has been an objective of the Government of Ghana for several years. The proposed site was declared a Free Zone area in 2000 - but the project was delayed while the Ghanian Government moved to secure adequate finance for the acquisition of the land and the development of the project. Given the industrial potential of the Western Region and the easy access to port facilities for the export of products from Ghana, the nation’s government decided to focus on the development of the Sekondi Industrial Estate as a priority project. Experiences at the Tema Export Processing Zonehave informed actions at Sekondi. The Ministry of Trade & Industry and the Ghana Free Zones Board (GFZB) experienced several challenges with regard to the development of adequate infrastructure for the development of the Tema Export Processing Zone. Different companies have eben given licenses to develop the area - and work on infrastructure is onging. This experience informed the Ministry of Trade and Industry and the GFZB’s decision that prior to entering into any leasehold arrangements for the Sekondi Industrial Estates with a developer, the Ministry of Trade & Industry acting through its agency - the GFZB - would develop the basic infrastructure for the estate such as the drainage systems, road network, external walls, and provision of utilities. The funds made available for the Sekondi Industrial Estate under the CDB loan are being used for this purpose. A subsidiary of China Hasan International Holding, Hasan Investment Ghana Ltd was granted a license to develop the Sekondi Industrial Estate. Under the provisions of the Free Zones Act (Act 504), the Ghana Free Zones Board has the authority to award a Developer's license for this purpose. The Act envisages that a private developer can lease or sub-lease property it owns or has the right to use within a Free Zones Enclave, and imposes on the developer the responsibility to construct and maintain buildings, warehouses and factory shells within a Free Zones enclave, and develop the necessary infrastructure for the efficient functioning of the zone. The developer also has the responsibility to undertake any investment or financial venture to promote the development of the zone.
Sekondi-Takoradi, the largest city in Western Ghana, is already an industrial and commercial centre (Photo: Mac-Jordan Degadjor)
A satisfactory approach to development Hasan’s concept for the development of the Sekondi Industrial Estate was approved by the Ghana Free Zones Board (GFZB) and the developer has promoted it as a business location to prospective tenants, with a view to ensuring that the estate is populated and made a vibrant industrial processing zone within the shortest possible time. Amongst the first anchor tenants is the Bosai Minerals Group, which bears responsibility for the development of an integrated aluminium project. GFZB has been conscious that contracts awarded in respect of the construction of the Sekondi Industrial Estate will comply with the terms of both the CDB loan and the Procurement Act. It is important to note that the initial work of basic infrastructure by the GFZB on the land with funds from the CDB loan is intended to be followed by further development of the industrial estate - with adequate road, drainage, sewerage, walls and utility infrastructure in place - so to attract prospective tenants into the estate quickly, so to promote business development, industrialisation and job creation within the proposed development and in Sekondi. Above all, the Ghanaian Government is on record as being committed to planning the development of the Sekondi Industrial Estate specifically to ensure industrial and commercial success, and so to help to make Ghana more attractive to investors. ■ African Review of Business and Technology - October 2012
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COMMERCE
Free Zones
Trade association at Ajman Free Zone How the Ajman Free Zone Authority is offering unique opportunities to investors and business, to develop their market presence and grow through commerce
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ree zones offer, within geographically distinguished areas, laws and regulatory frameworks to suit investors, delivering incentives and privileges of unique value, including: ● Freedom from restraint over capital movement. ● Freedom to undertake legal action pertaining to business operation. ● Freedom to determine prices of services or products, and so to decide on profit margins. ● Exemption from taxes, fees, and customs charges on capital assets, supplies, import and export and sales. African association with Ajman Free Zones Ajman Free Zone has developed ties with South African business in recent years, which has extended to participation in key events nincluding the Southern African International Trade Exhibition (SAITEX) and Africa’s Big Seven in Johannesburg, in South Africa. These are cross-industry events that attract manufacturers and traders from around the continent and beyond Africa. Key to such participation is South Africa’s engagement with other leading emerging economies. Its inclusion in the BRICS (Brazil, Russia, India, China, South Africa) framework serves to boost intra-Africa trade with particular respect to export and import. African association with Ajman Free Zone may deliver success, and there has been considerable interest expressed in investing in the free zone to target the Middle Eastern, European and the Asian markets - particularly, from manufacturers and traders from the African continent - due to its strategic location connecting the subcontinent to Africa and Europe through its active sea ports and airports. Rishi Somaiya, Sales Director at Ajman Free Zone, has observed, "South Africa is one of the
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fastest growing economies and the trade between South Africa - and the UAE is flourishing and is valued at over US$2bn” adding that South African business houses and prospective investors may do well to “capitalise on the opportunity and enhance South African investments in the Free Zone and overall in the UAE", and that “UAE has over 50,000 South African citizens offering them a great lifestyle along with the benefits of tax free income". The advantages of leadership Under the auspices of Sheikh Ahmed Bin Humaid Al Niaimi, Chairman of Ajman Free Zone Authority, and H.E. Mahmoud Khalil Al Hashimi, the Ajman Free Zone Authority’s general manager, the free zone is distinguished by the provision of unique services and facilities to companies - with infrastructure developed to give full advantages to corporate expertise, to deliver optimal performance, and so to create a conducive environment for further investment. The area is acknowledged for the quality of its management, and the encouragement it offers businesses. Ajman Free Zone Authority is a key investment base in Emirate of Ajman and the United Arab Emirates precisely because it offers numerous means of attracting local and foreign capital investments for a variety of different economic activities, for industrial development, and for international and commercial exchange. The authority managing Ajman Free Zone supports private sector projects, joint ventures and even public sector involvement in business. By generating employment opportunities at local level, too, it enables the acquisition of skills and experience amongst the Emirates’ population. Due to efforts extended towards such development, Ajman Free Zone Authority has managed to attract many companies and factories to the free zone
African Review of Business and Technology - October 2012
The Ajman Free Zone offers unique benefits to business
- particularly, with respect to industrialisation, treatment, processing, storage, packing, distribution and general trading. Projects pertaining to the storage and distribution of oil products include: assembly of electrical devices and electronics, computers, building materials, garments manufacturing, food stuff, trading and other enterprises. The Government of Ajman is partuicularly proactive, delivering a number of incentives and facilities to investors in the Ajman Free Zone Authority - as there are no restrictions on transfers of profits or capital, and there is a regime of reduced customs on different goods, in addition to promotion and encouragement at exhibitions, and the publication of industrial manuals that serve the industrial sector. Welcoming investment Ajman Free Zone Authority is keen to secure the interest of investors and to take in consideration their vision on services in the area. The Free Zone continually pursues opportunities and programmes aiming to attract the capital and investments to the Free Zone, which is realising progressive growth and attracting a considerable number of productive and trading companies and services, through the implementation of promotional and marketing plan that target extraction of investments. ■
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COMMERCE
Free Zones The Saif Zone offers an array of benefits, incentives and world-class infrastructure to businesses from around the world
The freedom of doing business your way Profiling Sharjah Airport International Free Zone - known as the Saif Zone - Sharjah’s leading business destination
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harjah Airport International Free Zone, well known as the Saif Zone, was set up in 1995. It is the premier business destination situated in the Emirate of Sharjah - the 'industrial powerhouse’ of the unite Arab Emirates (UAE), with a modern infrastructure and an emphasis on cost-effectiveness. There are over 5,000 companies from 92 countries operating in the Saif Zone today, carrying out a variety of business activities including light to medium manufacturing, trading and providing services such as IT, consultancy, and more. A competitive environment Why Saif Zone? The answer lies in the array of benefits, incentives and world-class infrastructure that Saif Zone has to offer to businesses. The Saif Zone offers modern premises with state-of-the-art facilities - including airconditioned and fully furnished Offices, SAIF Plus facility, pre built Warehouses in four different sizes that come with office space (sizes available: 1,345 Sqft/2,690 Sqft/4,304
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Sqft/6,456 Sqft), temporary storage space, land for unrestricted development, and labour accommodation. Other facilities include the benefit of a sophisticated banking sector, exchange house services, travel agencies, car rental services, supermarkets, and restaurants. A competitive fee structure, inexpensive energy costs, and sponsorship and visas for expatriate staff are just some of the advantages. Free from bureaucratic red tape, the registration process enables licenses to be issued within 24 hours. The other benefits its investors enjoy include 100 per cent foreign ownership, 100 per cent repatriation of capital and profits, 100 per cent exemption from income and corporate taxes, on site labour accommodation, access to over two billion consumers, and more. A growing business community Sharjah and its business community benefits by being the only Emirate in the UAE with seaports on both the Arabian Gulf (Port
African Review of Business and Technology - October 2012
Khalid) and the Indian Ocean (Port Khor Fakkan). Combined with the facilities at Sharjah International Airport, this location provides the Saif Zone a unique logistical advantage via superb land, sea and air links. Encouraged by its growing success over the years, the Saif Zone is now embarking on its next phase of expansion to meet the growing demand of its investors wanting to set up operations at the Zone. It is in this context, that the Zone’s representatives today are visiting various countries to offer its services and the opportunity to investors to set-up their businesses at the Saif Zone, Sharjah. The Free Zone's ‘one window’ concept provides all administrative services under one roof. Equipped with the state-of-the-art facilities, the Saif Zone offers unbeatable trade incentives and unparalleled benefits to its investors making it the "free zone of choice". With the assurance of a warm welcome and an opportunity to globalise your business, the Saif Zone is at your service. ■
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COMMERCE
Free Zones
A gateway to global business How Hamriyah Free Zone contributes to economic growth in Sharjah and in the UAE - and is poised to support commercial development across Africa
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ith over 5,700 companies from 140 countries within its precincts, Hamriyah Free Zone takes pride in its contribution to the economic growth of Sharjah and the UAE and its emergence as a growth engine of the local economy.The quality of the investor footfall at Hamriyah Free Zone speaks for itself. I thank them for their continued support over the years, and for the confidence they have shown in our future. our success story is indeed a reflection of the core values and principles embodied in the founding of the HFZA in November 1995 . Rashid Al Leem
With over 5,700 companies from 140 countries within its precincts, Hamriyah Free Zone takes pride in its contribution to the economic growth of Sharjah and the UAE and its emergence as a growth engine of the local economy� A global player Our global coverage now encompasses 5,700 companies from across 140 countries and we are aiming to touch the 6,000-mark this year. Not lofty aspirations, but very achievable goals considering the work-friendly environment, minimum regulations, working with international standards, transparency and red carpet treatment that we offer. Our success story is, indeed, a reflection of
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the core values and principles embodied in the founding of the HFZA in November 1995. A focused marketing strategy wherein we identified our key strengths - including measuring effectiveness of policies and programs, introduction of attractive incentives and supporting these with aggressive branding has had a great impact on our business development. In 2012, we extended our services into several new markets, most recent being south America , Taiwan and Kazakhstan. However, while we will continue to focus on our existing core markets such as the Subcontinent, Asia and Europe, there will be greater thrust on Africa, which is a region that has long been overlooked in global corporate growth strategies. Poised for growth Africa, like many emerging markets, is poised for explosive growth and opportunity. Our focus will be on tapping into the power of its largely unutilised resources and unique demographics in what is still a relatively uncompetitive market. Globally, the African growth story has seen its markets increasingly gaining mainstream acceptance. Especially with developed economies on rather shaky grounds, I believe, capturing newly emerging markets will be critical in breaking free of the long-running global economic recession. Hamriyah Free Zone (HFZ) has one of the most progressive and fast-evolving landscapes for the SMEs & MBs to thrive. We are committed to supporting small firms and have formulated explicit policies and designed special programs to help develop competitive and resilient SMEs that are equipped with strong technical and innovation capacity as well as managerial and business skills. Our unique custom-designed seven SME clusters comprising of the Oil &
African Review of Business and Technology - October 2012
Dr Rashid Al Leem, Director General at Sharjah Department of Seaports & Customs and Sharjah Free Zones Authority
Gas Zone; Timber Land; Maritime City; Petrochemical Zone; Construction World; Perfume Land; and Steel City are attracting hundreds of new and small businessmen, from across the globe , serving as a testament to our success. It has been a terrific year for HFZA so far. Despite the continuing turmoil in the global economy, HFZA has already notched up contracts of 950 new companies. Our sights are set on penetrating more new markets, and we are looking towards channelling our resources to help emerging businesses by empowering investors. â– Dr Rashid Al Leem, Director General at Sharjah Department of Seaports & Customs and Sharjah Free Zones Authority
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TECHNOLOGY Security
Proactive surveillance T
ransporting goods, particularly high value consumer goods, has become an increasingly dangerous task in Africa. Criminals target goods-in-transit vehicles. Theft of cargo has become a major issue for logistics companies. The challenge with this is that these crimes usually occur when goods are ‘on the move’. Technology, however, is the answer with live remote video monitoring solutions, designed specifically for the transportation sector that makes use of bandwidth optimisation. These specialised solutions create a live video connection, enabling logistics and security organisations to keep a close eye on vehicles in the event of an emergency. By having the units enabled with GPS and biodirectional audio, control rooms are able to pinpoint vehicle location as well as view live video anywhere where there is cellular data coverage. This allows controllers to identify risky situations, and a host of other features
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Cracking down on crimes such as goods-in-transit heists requires intelligent use of appropriate technology solutions, enabling a more proactive approach and providing evidence for law enforcement” enable a more proactive approach to protecting important assets, goods and people. Effective monitoring With an effective proactive monitoring and surveillance solution, transport and security companies can take advantage of several benefits. Live monitoring provides an accurate visual of the current location of the vehicles and their environment. If faced with a dangerous situation or threat, live video monitoring allows the control room to take action quickly. It enables fast and easy
African Review of Business and Technology - October 2012
location of the trucks. As ‘time to respond’ is crucial with conviction of perpetrators, this technology significantly improves the opportunity to apprehend the perpetrators and recovery of goods. Live video streaming also enables better contact with drivers out in the field, and with a full monitoring and surveillance solution, can trigger alarms and live video feeds automatically with events such as the unauthorised opening of cargo doors, acting as a ‘panic button’ for drivers in distress, automatically alerting control room operators to the event in the field. ■
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Security TECHNOLOGY
Identifying, accessing, managing information D
atabase security is possibly the most important and complex implementation project any organisation will undertake. Not only is it critical to ensure that information contained within the database is secure from a host of external threats, including viruses, phishing scams and the like, the need for internal security is also increasing. With the rise in incidences of identity theft, corporate espionage and fraud, internal security tools such as identity and access management, amongst others, have become increasingly important on the corporate agenda. Security policies and guidelines Simply buying technology without a solid understanding of the risks posed and organisation’s needs is pointless. Risk assessments should be conducted in every area of operations. These assessments and identified risk areas need to be documented and turned into security policies, which must be approved by the Board of Directors. Rules and parameters such as security policies need to be set otherwise it remains unclear exactly what security solutions need to accomplish, making it impossible to gauge whether or not security is meeting business requirements. Policies and guidelines also help to ensure that staff members know what is expected of them regarding security and in
turn, this helps to ensure compliance. Without rules, compliance is impossible. Business process analysis Security must take into account the requirements of the business and accommodate the normal business functions without major disruption. Security solutions should also be secure enough to prevent breaches, while remaining flexible enough to enable people to still do their jobs. This is a delicate balancing act that cannot be achieved without analysis and understanding of business processes. Business process analysis should be the starting point to any IT rollout and implementation, and database security is no exception. People Security must take into account not only technology, but people and processes as well, and the reality is that few organisations manage to get this right. Much focus has been given to securing the database from external threats that internal threats are ignored, and yet the majority of fraud cases and data theft occur on the inside. Access and Identity Management are critical to ensure that employees (and partners) have access only to the data they need to enable them to do their jobs, without compromising sensitive information.
Planning and forecasting Security implementations can be a timeconsuming affair and it is vital to understand what the desired future state of the database security should be. A roadmap needs to be in place to forecast the project stages to ensure that implementations run on time, on budget and meet organisational expectations. Security infrastructure Infrastructure is the heart of the database. Systems need to support standards and policies and enable security solutions to function optimally. It is one thing to have multiple standards and policies in place, but these need to be enforced if they are to be successful. However, infrastructure also needs to be ‘fit for purpose’ and implemented correctly otherwise it will be unable to deliver as expected. Just how valuable is your data? These five steps work in harmony with each other to help organisations plan and deliver successful database security implementations. While they do not necessarily need to be completed in order, they all need to be tackled as each phase is necessary to ensure a secure environment and to prevent any breaches. ■ Gerrit-Jan Albers, Service Delivery Manager at RDB Consulting
DIGGING IS FOR DUMMIES Secure outdoor wireless CCTV transmission solutions
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African Review of Business and Technology - October 2012
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TECHNOLOGY Printers
Low cost, low carbon document handling Why an organisation’s printing practices can cost as much as three per cent of corporate turnover, and what to do about it
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hether you’re interested in saving the planet, or your primary motivation is stripping costs out of your business, you can kill two birds with one stone by sharpening up your office document strategy. Billed as one of the last great uncontrolled costs in business, office printing and copying represents between one and three per cent of an organisation’s turnover (according to Gartner), making it a large target in terms of reducing the impact on your business’s bottom line. Furthermore, the Carbon Trust estimates that office machines represent 15 per cent of the energy consumption in the average office, a figure that is expected to rise to 30 per cent by 2020. The good news is that many of the immediate actions you can take to reduce expenditure on items such as toner, paper and energy consumption cost little, and will generally pay for themselves in terms of improved efficiency. And if you decide to really invest in streamlining your printing and copying network by deploying a fully managed service, you can expect to see operational cost savings of anything up to 50 per cent and sometimes more. Good housekeeping Still the most important advice for instantly cutting electricity consumption: If you’re not using a machine, switch it right off. Installing seven-day timers takes the human element out of remembering to switch off devices overnight and at weekends, and the Carbon Trust has calculated that 70 per cent energy savings can be made simply by switching peripheral IT equipment off out of office hours. Take a walk around your office. How many printers are currently printing, and how many are on standby? On average a printer spends only 20 per cent of its time actually churning out pages. The rest is spent on “standby”. While the stand by setting uses less power than the
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full printing mode, it can still be upto 90 per cent more power than the “sleep” mode, so make sure that your office printers and MFDs are configured to enter sleep mode after the shortest practical time period – this is easily done via the control panel on each device. While you’re configuring your existing devices, why not set them to duplex print as default? This saves users having to specify duplex and is easily reversed by users if simplex printout is necessary. And it generates an “instant” paper saving of up to 50 per cent. Driving efficiency While the advice above can help to improve the efficiency of an existing print fleet, to reap the biggest financial and productivity benefits, a more comprehensive approach is needed. Managed Document Services are big news in the print industry at the moment, and with good reason. Organisations that have completely overhauled their printing and copying networks are reporting enormous operational savings and total visibility of an area of IT that was previously very difficult to get a handle on. A typical managed document service has several stages, which build upon one another to create the best solution for your organisation. The first step is an audit of network printing activity. Many organisations have very little visibility of how much printing goes on, or even how many devices they own. A data collection agent, installed on the network for a month, gives a clear insight into where high volume printing is occurring. This
Setting your baselines Before you begin your crusade to cut costs and carbon emissions, you need to know where you’re starting from. Get hold of your electricity consumption figures, and find out how much you’re spending on consumables such as paper and toner cartridges
African Review of Business and Technology - October 2012
then offers the opportunity to engage with “power” users and understand their requirements. You can make sure that the right devices are serving the right users, so power users have low cost, high volume machines, while occasional users have smaller, less energy-hungry devices. Change management When making a big change to your IT system it’s important to engage with your users at key points in the process to minimise resistance to that change. Users who find their personal printer abruptly removed from their desk have been known to go and purchase another from petty cash, which will defeat the object of the exercise. Explaining the financial and productivity benefits of rationalising devices and detailing the functionality on offer with the new system will help to smooth the transition. Communication is key, and reporting on the successes in terms of reduced expenditure, paper and energy use shows employees that the change is worthwhile. With a complete MDS programme you will receive full management reporting data on the performance of your network, so it will be easy to identify the bigwin areas to shout about. When you compare your energy, toner and paper consumption figures with the benchmark data you established at the start of the project, you should see that whether you decided to go the no-cost route of optimising your existing printing system, or invested in a complete managed document service, you’ve achieved a significant reduction in printing costs and reduced your carbon footprint at the same time. It makes sound commercial sense, and reduces your carbon footprint too. So why not get started straight away? ■ Tracey Rawling Church, Director of Brand and Reputation, Kyocera
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TRANSPORT Shipping
Improving productivity at port facilities How the right conveyor equipment can help local port authorities and shipping companies to maintain high standards of output and efficiency
Melco’s range of HDPE rollers have been proven to outlast competitor products
The deployment of HDPE rollers will continue to increase steadily in the local ports industry
I
n order to improve productivity and efficiency in challenging shipping applications in coastal regions, internationally-recognised conveyor equipment manufacturer Melco has installed its range of Supreme high-density polyethylene (HDPE) rollers on entire conveyor belt systems at ports across South Africa. Melco sales and marketing director Craig Warmback explains that HDPE is a polyethylene thermoplastic, and offers superior resistance to abrasion and corrosion, and provides the conveyor belt system with a lifecycle often exceeding 12 years. Improving conditions Warmback highlights the fact that the Port of Richards Bay has been making sole use of Melco’s state-of-the-art range of HDPE rollers on all of its conveyor belts since 1990. “Our HDPE rollers, branded as the Melco Supreme roller, have a longer lifespan than standard steel rollers in harsh port conditions, thanks to a 12 mm external HDPE sleeve, which ensures overall cost savings with regards to maintenance and downtime.” The machined finish of the Melco HDPE roller results in low total indicated run-out, which ultimately minimises vibration and noise levels, adds Warmback. “The reduction of noise pollution is essential to all ports, as many aim to increase productivity without the consequent increase in noise levels, due to the
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Melco works closely with numerous port authorities in South Africa
fact that most harbours are located fairly close to residential areas with a high population density. What’s more, HDPE is fully-recyclable and is, therefore the most environmentallyfriendly roller available in the local market.” Melco works closely with numerous other port authorities in South Africa, and Melco idler sets and rolls can also be found in Durban harbour, the Port of Saldanha Bay and Port Elizabeth harbour. Melco managing director Gavin Hall notes that Melco was involved in the successful 2009 R50mn (US$6mn) conveyor upgrade project at the Port of Saldanha Bay. “Melco was involved in the entire upgrade of the port’s conveyor belt system, in order to increase throughput. With regard to the conveyor idlers, the existing 5-roll garlands were replaced with deep trough 3-roll underslung idlers, which increased the material cross sectional area by approximately 20 per cent,” he explains. Hall points out that this involved the installation of 2.4 km of conveyor belts, in addition to four stacker-reclaimers, which transport the product from the conveyor onto the ship. “The upgrade has enabled Saldanha to increase its iron ore tonnages from 20mn tons, to 47.6mn tons last year. A combination of the iron ore and the sea air creates a highly-corrosive operating environment for conveyor systems at Saldanha, hence the Port of Saldanha
African Review of Business and Technology - October 2012
World-class conveyor components for the South African shipping industry
required a very specialised painting system to all steel rolls and frames.” Steadily increasing, greater capabilites Looking to the future, Warmback believes that demand for the Melco range of HDPE rollers will continue to increase steadily, particularly in the local ports industry. “Port authorities are continually looking to improve competitiveness by operating more reliable equipment, and the Melco range of HDPE rollers have been proven to far outlast competitor products, especially with regards to corrosion resistance and lifespan. This ensures that they are more cost-effective, while transporting higher tonnages at faster rates,” he concludes. Founded in 1970 with the aim of supplying world-class conveyor components to the South African mining industry, Melco is today one of the largest suppliers of idlers and rollers in Africa. Melco is an ISO 9001:2008 approved company that operates a highlyspecialised testing facility, where products are tested under laboratory-controlled environments prior to field-testing, full-scale manufacture and supply. This process ensures that Melco products are among the most advanced in the world. Melco also operates quality management systemswhich control every aspect of the company. These systems are audited regularly to ensure compliance with the highest standards. ■
S11 ATR Oct 2012 Transport_Layout 1 20/09/2012 18:07 Page 49
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S11 ATR Oct 2012 Transport_Layout 1 20/09/2012 18:07 Page 50
TRANSPORT Shipping
The billion dollar sulphur switch Maritime experts are calling for a study into the availability of low sulphur fuel for merchant shipping companies
T
he International Chamber of Shipping (ICS) whose 36 member national shipowners’ associations represent all sectors and trades and more than 80 per cent of the world merchant fleet, called earlier this year on the International Maritime Organization (IMO) to accelerate a critical study into the global availability of low sulphur fuel for ships. The ICS has been expressing concern for some time about whether sufficient fuel will be available to allow ships to comply with strict IMO regulations aimed at reducing sulphur emissions - and whether, as result of insufficient supply, the costs for those ships which are able to obtain the required fuels might be prohibitively expensive. In an important submission to the IMO Marine Environment Protection Committee (MEPC), meeting in October 2012, the ICS has again pressed the IMO to start work on a study that can consider the impact all of the major changes required by the new MARPOL regime, before it is too late for the oil refining industry to respond and invest. Progressing towards control There is already a formal mechanism in MARPOL Annex VI for IMO to complete a review, by 2018, of progress made towards meeting the demand for 0.5 per cent sulphur fuel that must be used globally outside of Emission Control Areas (ECAs) by 2020 or 2025. However, ICS stresses that the enormity of the switch to distillate and its economic impact on shipping should not be underestimated. ICS Secretary General, Peter Hinchliffe said, “Governments will surely want to avoid any perception that a blind eye has been turned to the practical implementation of the measures as the issue of fuel availability becomes
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increasingly pressing. It is essential that a global fuel availability study is carried out sufficiently in advance of 2020 in order to give the refiners adequate time to invest and react. The major refinery upgrading required could take a minimum four or five years, perhaps longer, and we fear that completing the study in 2018 would simply be too late.” He added, “The need to move forward the IMO study is more important than ever now that the European Union has signalled that it will definitely implement the 0.5 per cent requirements in 2020, even if the IMO study results suggest, as permitted by MARPOL, that full implementation should be postponed until 2025 to ensure the availability of sufficient quantities of compliant fuel.” In its submission to IMO, ICS has suggested that a preliminary IMO study of the availability of compliant fuel, taking into account the introduction of the 0.1 per cent sulphur in fuel requirements to be used in the Baltic Sea, North Sea and the North American ECAs in 2015, would provide a suitable test case. Such a study would provide a projection of possible scenarios resulting from the introduction of the 2015 0.1 per cent ECA standard, against the background of the world market. This could then be considered in comparison with the real situation encountered in 2015. Mr Hinchliffe emphasised, “When the global requirement to switch to distillate was adopted four years ago, ICS supported the agreed IMO timetable as an acceptable compromise. But if the switch to low sulphur fuel is to be successful, those governments that advocated such ambitious goals need to do everything possible to help ensure that the refineries are able to deliver. We strongly believe this means undertaking the required studies of fuel availability as soon as possible.”
African Review of Business and Technology - October 2012
Shipping operations, such as this off Cape Town in South Africa, may be directly impacted by availability of sulphur diesel (Photo: Clarissa de Wet)
It is essential that a global fuel availability study is carried out sufficiently in advance of 2020 in order to give the refiners adequate time to invest and react” ICS Secretary General, Peter Hinchliffe”
Fuel is by far the largest operational cost for shipowners and has already increased in price by about 300 per cent since 2000. However, the current 50 per cent price differential between low sulphur distillate and the residual fuel oil that is currently in use is predicted to increase further if the new demand that will be created by the MARPOL requirements is not matched by increased supply. (Exhaust gas cleaning systems or “scrubbers” have been predicted to cost in excess of US$2mn per engine if fitted on board larger ships. However, it is still unclear whether these will be technically, environmentally, or economically viable for use on a widespread basis before the 2015 or 2020 deadlines. ■
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EQUIPMENT
Transport Smit Lamnalco brings Sierra Leone ore to market Smit Lamnalco has played a pivotal role in bringing two export projects to fruition that will see Sierra Leone’s re-emergence as a key global source of iron ore. The marine support and logistics specialist provided the turnkey services to assist African Minerals Limited (AML) in exporting ore from its Tonkolili mine, whose life expectancy is in excess of 60 years, with resources of an estimated 12.8Bn t. Smit Lamnalco has been contracted for an initial five years to support AML’s fully integrated mine-rail-port transport system connecting Tonkolli to the port of Pepel. Shoreside, Smit Lamnalco has deployed four Damen-built 3212 terminal and towing tugs to ensure that ships enter and exit the port’s challenging approaches safely. AML already plans to develop a new rail spur from the
existing railway, connecting Tonkolili to a new large deep water port at Tagrin. Investors include Shandong Iron and Steel Group, and China Railway Materials Commercial Corporation. The exporter expects the operation to ramp up to 20Mtpa in its Phase 1 operations, and become the largest contributor to GDP in Sierra Leone. In a second deal, London Mining Plc contracted Smit Lamnalco to provide a complete logistics and marine package to support exports from the upriver Marampa mine. London Mining plans to develop a production rate of 5mtpa of premium sinter concentrate by the end of 2013; this will further increase to 17mtpa in Phase 2 developments of the mine’s 25 year life.
Smit Lamnalco operations along the Port Loko river
Support includes on-transit tug and barge services along 40km of Port Loko River from the Thofeyim River Port to Freetown Harbour. The waterborne transit involves four shallow draft Smit Lamnalco tugs towing four 93m long barges to the coast.
W With ith B Broadcrown, roadcrown, yyou ou gget et gglobal lobal understanding eexpertise xpertise aand nd llocal ocal u nderstanding Broadcrown eading iindependent ndependent B roadcrown iiss a lleading manufacturer m anufactureer ooff ppower ower ggeneration eneration ssystems ystems ffrom rom 66kVA kVA tthrough hrough tto o ++30MVA. 30MVA. W With ith oover ver 330 0 yyears ears experience, experience, w wee aare re ttrusted rusted w worldwide orldwide tto o aalways lways pprovide rovide tthe he bbest-fit est-fit not ppower ower ggeneration eneration ssolution olution — n ot a compromise. compromise.
qqªPrime tandby b ack u pp ower ªPrime & sstandby back up power qqªBase oad ggeneration eneration ªBase lload qqªOil as iindustry ndustry aapplications ªOil & ggas pplications qqªMarine ªMarine p power ower ggeneration eneration qªCritical p ower iincluding ncluding U PS ssystems ystems qªCritical power UPS ªGas aand qqªGas nd cco-generation o-generation ((CHP) CHP) applications applications qqªRental ªRental applications applications
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All B roadcrown pproducts roducts aare re ddesigned esigned All Broadcrown aand nd m anufactureed iin n oour ur ffactories actories iin n manufactured the U nited K ingdom. A ll aare re ccovered overed bbyy the United Kingdom. All worldwide w arranties. worldwide warranties.
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African Review of Business and Technology - October 2012
Broadcrown Ltd (Group Broadcrown (Group Headquarters) Head ad adquarter rss) Airfield Industrial Estate Hixon, Stafford, Staafffo ord, Estate,, Hixon, Staff ordshire ST18 0PF, 0PFF,, England En n ngland Staffordshire tel: +44 1 889 272200 ffax: aax: +44 1 889 272220 email: inf fo@br o oadcrown.co.uk info@broadcrown.co.uk
S12 ATR Oct 2012 Power 1_Layout 1 21/09/2012 10:27 Page 53
Generators
POWER
Rural electrification and the use of diesel generators in Africa Genset market analysis, with recent developments and key companies operating in markets for the import and export of power supply units
R
oughly 22 per cent of the world’s population still does not have access to electricity and this represents up to two billion people at this time, most of whom live in remote areas often difficult to access and difficult to connect to national or regional electricity grids. The International Energy Agency (IEA) estimates that roughly 85 per cent of those without electricity live in rural areas in developing countries, mostly in urban extremities or remote regions of sub-Saharan Africa and South Asia. By 2030, the IEA predicts that if no new policy to alleviate energy poverty is introduced, 1.3bn people (some 16 per cent of the total world population) will still be denied electricity in these regions. Whilst renewable energy sources are increasingly being used the role for diesel generators remains strong. Comparing policies In the IEA’s 2010 comparative study on rural electrification policies in emerging
economies South Africa is among four countries, (Brazil, China, India are the others), whose efforts to improve access to electricity services are discussed in detail, and while similar challenges are faced by each country, the means of addressing them are varied. The electrification efforts of South Africa have, to date, achieved more than 65 per cent electrification rate, although the situation in sub-Saharan Africa is different, where electrification is closer to 10 per cent in most places although with some exceptions Ghana and Cameroon where it is higher. The study detailed some pre-requisites, which it determined as necessary for successful rural electrification and among these was the full involvement of the rural communities in any electrification efforts and throughout the decision-making process. This was seen as essential to increase a rural community’s sense of ownership of any power supply or solution,
in turn lending local support to a utility or generating company’s efforts to encourage customers to use electricity carefully once connected. In relation to stand-alone systems, such as diesel generators, the IEA emphasised requirements for rural applications and that such systems require good management and maintenance by adequately trained local personnel, as well as the existence of effective supply chains if long-term use is to be sustained. But it suggested, too, that many of the challenges faced could be overcome if the prevalent idea among remote village communities that stand-alone systems were a ‘secondclass’ source of electricity was dispelled, and this is where the sense of ownership played its part. While many electrification policies target poor rural households, a mix of farms, large villages and small towns are also key targets and these larger applications typically require different technologies. Indeed, rural
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African Review of Business and Technology - October 2012
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POWER
Generators
electrification policies are shaped according to a variety of energy needs, resources and target groups – electrifying the suburbs of major cities poses problems different to those of remote villages. Rural challenges Rural electrification is the process by which access to electricity is provided to households or villages in isolated or remote regions where electricity supply is missing due to challenges such as: distance from national or regional electricity grids, poor and isolated access across difficult terrain, rivers and jungles, or harsh climatic conditions. In addition, rural communities are often highly dispersed and a low population density is often accompanied by low levels of education, low levels of disposable income and, in relation to power requirements, low load density typically concentrated during peak evening hours. With such challenges, providing electricity to the world’s rural poor requires a committed and long-term strategy. However, the IEA stresses that the choice of a specific energy technology for rural electrification depends on the targeted region and all its attributes of geography and climate, as well as the community itself and the types of application for which power will be used. ‘The various potential energy technologies for rural electrification programmes is large and each technology naturally varies in its generation technique, its costs, and in the quality of the service it delivers. Depending in part on the degree of urbanisation of the targeted population, energy technologies used in electrification programmes generally
Every single business in Nigeria, whether small, medium or very big, has, as part of its inventory for power supply, a generator. Every single business’. While this and other country-specific points mentioned relate to Nigeria, a similar scenario exists in most Sub-Saharan African countries, although to a lesser extent in South Africa.” Business Monitor International spokesperson.
involve national or regional grid extension, diesel generators, liquefied petroleum gas (LPG), disposable batteries, kerosene lamps, renewable energies (including photovoltaic systems, wind energy, hydropower, and new wave energy and hydrogen) or hybrid systems. But it is the diesel generator with which we will concern ourselves further. Diesel generators have been conventional means of power supply for dispersed populations and while they remain an attractive technology in rural electrification, they are being used increasingly in hybrid systems. This is in part due to a definite increase in the desire for and presence of renewable energy systems, which are now being viewed in many quarters as the optimal means of bringing electricity to rural areas that cannot be connected to the grid. Hybrid systems, increasingly in use across Africa, are basically a combination of two or more different but complementary energy supply systems located on the same site. The advantage of hybrid systems is their ability to
avoid fluctuations in the system’s energy supply, which is the main disadvantage of stand-alone renewable energy technologies such as wind and solar. A hybrid system will provide a relatively constant delivery of energy even when one of the supply devices of the system is unable to generate power, so a diesel genset will often now be coupled with solar, wind systems, small hydropower systems. Saving electricity from whatever source Bolstering its 2010 comparative study on rural electrification the IEA came out with a new report in H2 2011, discussing how countries can minimise the economic, social and environmental impacts of electricity shortages by developing emergency strategies to save energy well in advance of crises. Nobuo Tanaka, Executive Director of the
Product shot of the 400 kW. More and more diesel generators are adhering to strtict environmental regs and Kohler prides itself in manufacturing units to exacting standards to reduce impact on air quality and noise
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IEA, noted that electricity shortfalls are likely to continue as political, regulatory and financial hurdles make it difficult for governments and energy utilities to invest the estimated USD 16.6 trillion needed to meet annual growth in global electricity demand of 2 per cent over the next 25 years. He said that natural events such as droughts and earthquakes, as well as plant repairs of installed systems, will continue to pose reliability issues for existing supply. The report says it is crucial for governments and utilities to encourage electricity savings as prolonged shortfalls will reduce economic competitiveness by creating uncertainty in supply and increasing costs of electricity. And although extended shortfalls can be filled by the use of diesel generators by consumers faced with blackouts the issue of air quality suffering as a result was highlighted. The report highlighted initiatives in South Africa where authorities communicated with the public about the need to save electricity
and avert blackouts, and implemented an innovative Power Alert message system providing real-time information on power supply shortfalls and recommendations for consumers as to actions needed to minimize the effects on their daily lives. The need for diesel generators So, it’s no wonder that where there is no grid power for reasons of geography/terrain, economics of delivery, alternatives have been sought for generations, and no one type of alternative has provided so much power to remote users as the diesel generator or genset. Diesel generators have provided an ideal, versatile and easy-to-use source of power for domestic as well as high-energy applications in many remote-region scenarios, and are typically used as standalone installations, or as part of hybrid configurations working alongside other energy sources such as solar or wind power – telecoms base stations increasingly use such systems. Hybrids offer the chance of the consumer to use the
Volvo Penta has been supplying Rovos Rail in South Africa for more than a decade. Engines are housed in Power Cars and the configuration in which the generator sets are located is typically one carriage with one Prime Unit and a second back-up unit installed. The one genset will run continuously but should problems be experienced, Rovos Rail engineers have the option to switch over to ensure the comfort of passengers is not compromised. The gensets provide necessary electrical power to run the soft lighting, air conditioning, under floor heating, hot showers and other power driven passenger services. There are five such Power Cars in the Rovos fleet
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lowest cost option depending on the operating environment and time of day – generator at night, solar by day. For applicatioins such as lighting, irrigation pumping, cottage industries, and rural processing facilities, diesel gensets have changed the face of agriculture in many developing regions. The critical activity of irrigation alone relies on millions of small diesel engines across Africa to run pumps, without which crops would not grow. And in the growing IT industry of developing nations, an industry that is proving crucial to social and economic development, diesel generators – as well as hybrid systems - are providing important primary as well as back-up sources of power for data centres and government projects for which uninterrupted power supply is essential. In contrast to the sophisticated business continuity measures seen in many developed countries, the simple presence of a back-up generator in a developing world scenario will be the difference between
and as Maintenance Manager, Coenie van der Walt explained, “All stock is running and we have very few problems.” The latest model TAD734GE offers 250 KVA (Prime power) and is capable of running the auxiliary services for the whole train. Coenie confirms that the Volvo Penta engines are reliable and fuel efficient. “We have calculated up to 20 per cent fuel consumption savings with these units,” he comments. The engines are expected to run for 23,000 hours before they need overhauling or repair. This equates to more than 2½ years of continuous running time.
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The importance of diesel generators in rural electrification strategies cannot be under stated” The International Energy Agency
success and failure, safety of or loss of data in a developing world application. And not surprisingly, as the demand for energy, highlighted by the IEA, increases, many of the developing world’s utility companies are finding it hard to keep up with needs and the regularity of blackouts and brownouts in many regions results in the use of diesel generators as backup in residential and commercial buildings. But it’s not simply land-based and static applications for which diesel has been crucial; in many regions barge-mounted diesel generators or BMDs, have been useful alternatives to land-based fixed power generation plants for activities including mining and offshore drilling where they can be moved, as required, to locations where they are needed. Typically operating in a range between 5-50 MW, several generators can be housed and connected on a single barge to provide more than 100 MW of power. While the greatest barriers to owning and operating a powergenerating solution in the developing world are capital expenditure (capex) and operating expenditure (opex)-related, diesel gensets remain the most affordable and cost-effective solution when compared to alternative energy sources – at least from a capex perspective. In terms of opex, including O&M and fuel, gensets and renewable sources are similar in cost, with the price of fuel, unit quality/make, and correct and regular maintenance (provided by qualified individuals) being the main opex incurred. And when it comes to fuel in remote areas, it is not just the price per gallon, which is a factor, it is the logistics and manpower required in getting heavy jerry cans or bowsers into remote regions to resupply the units. Dirt tracks, jungle paths and often rivers are the only route into some remote domestic village communities and the re-supply logistics can end up costing too much. For remote enterprise settlements opex is not such a prohibitive issue and fuel will invariably get through no matter what the cost. And while diesel fuel does actually cost marginally more than petrol more energy can be extracted from it compared to the same volume of gas and it operates with significantly more efficiencies. In fact, per KiloWatt of energy produced the costs of running a diesel generator are 30-50 per cent less than a petrol-driven generator. And the wear and tear of running diesel engines is less than petrol. For example, diesel gensets are now much quieter than earlier units and require less O&M compared with petrol-driven sets, this is in part due to the fact that no sparking is required to ignite diesel and the resulting absence of spark plugs or sparking wires reduces the need for maintenance. In addition, taking an 1800 rpm water cooled diesel unit as an example, this can be expected to run for up to 30,000 hours before major maintenance is needed, compared to up to 10,000 hours for an equivalent petrol engine. A future of electrification remains a future for diesel The global demand for energy is set to grow some 60 per cent by 2030 according to the IEA, and while more than a billion people in developing nations now have access to fuels such as coal, kerosene, liquefied petroleum and natural gas, more than two billion people remain without electricity, worldwide. Ironically, the number of people without access to modern energy services is increasing by around 30mn each year and a recent IEA estimate states that 56 per cent of
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African Review of Business and Technology - October 2012
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people living in rural locations in the developing world have no access to modern energy supplies, with wood, charcoal and, in some of Africa’s less developed regions, crop residues and dungas fuels, delivering over 70 per cent of their main fuel source for basic activities such as cooking and heating. It is commonly held that such basic sources of energy are responsible for both poor air quality, as well as creating fire and burn-injury hazard. And amongst the most significant considerations is that, between now and 2040, the IEA projects that over US$16 trillion will be invested in the provision of energy in the developing world, and yet, at the end of that period, it still expects nearly 1.5bn people – taking population growth into account – will be without electricity in a world where the demand for energy is just going to keep on rising. With such stats it is not surprising that the role for stand-alone solutions, such as diesel generators, are, and will remain, the mainstay for power supply for many remote communities in developing regions for the foreseeable future. ■
The importance of diesel in telecoms growth in Africa – A Nigerian Snapshot
A
frica relies on diesel generators and in the words of a Business Monitor International (BMI) ICT Research spokesperson talking with African Review: ‘Every single business in Nigeria, whether small, medium or very big, has, as part of its inventory for power supply, a generator every single business. And while this and other country-specific points mentioned relate to Nigeria, a similar scenario exists in most Sub-Saharan African countries, although to a lesser extent in South Africa.’. BMI gave African Review a quick run-down of the use of diesel generators in the Nigerian telecoms sector and the bullets below make for very interesting reading: · Nigeria currently has approximately 20,000 telecoms base stations, all of which have at least one standby generator. · Some base stations are not connected to grid electricity or are located in areas with poor electricity supply, thereby requiring at least two generators for full operation.
Tim Guest
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· Nigeria requires up to 70,000 base stations for optimal mobile network coverage. Therefore, if the electricity situation is not improved more generators will be required. · It is estimated that telecoms operators will spend around NGN46bn (US$252mn) in fuelling generators in 2012. · MTN currently spends NGN500mn monthly on energy to run its base stations. In an attempt to cut costs, the company, which has 44.3 per cent of the market, is investing in methane driven tri-generation plants. · Airtel is investing in hybrid plants. · Other operators and tower sharing firms are investing in various types of hybrid or renewable energy sources. Although the points above relate to Nigeria, according to an ICT Research spokesperson for Business Monitor International, a similar scenario exists in most Sub-Saharan African countries, although to a lesser extent in South Africa.
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Generators A busy time for Aggreko in Africa - Aggreko claims to be the largest specialist temporary power generation company in the world, and offers services in Africa from offices in Nigeria, South Africa and the UAE. French speaking African countries are serviced from the company’s office in France. In August, the company opened a new service centre in Walvis Bay, Namibia, which was inaugurated by Honorable Willem Isaak, Deputy Minister of Mines of Namibia and Martin Foster, Head of Local Business, Aggreko Southern and East Africa. Cleophas Mutjavikua, the governor of the Erongo region, was also in attendance. The facility is the sixth service centre in Aggreko’s Southern and East African network and is the first operation to be based in Namibia. The new depot will service the country’s rapidly growing mining industry and other industrial users throughout the country. Located next to the Port of Walvis Bay, the facility is strategically positioned to support Namibia’s shipping and fishing industries. Earlier this year it opened its new service centre in Nairobi. The new facility was formally inaugurated by the Hon. Kiraitu Murungi, Minister of Energy, Republic of Kenya and Aggreko
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CEO Rupert Soames. The Nairobi facility is the sixth service centre in Aggreko’s Southern and East African network and is the first operation to be based in East Africa. Situated within the grounds of Nairobi’s Jomo Kenyatta International Airport, the facility is strategically located to support industrial users in and around Nairobi as well as shipping, mining and manufacturing and agricultural businesses operating throughout the country.
WHEN YOUR MISSION IS MAKING MEDICINES THAT SAVE LIVES, FAILURE’S NOT AN OPTION. ESPECIALLY POWER FAILURE. Tests are performed, results compiled and production lines roll. Every day, a leading U.S. pharmaceuticals innovator makes the products that treat serious and life-threatening medical conditions. Loss of power for even a short time could cost a production run … and hope for those who need help now. For the health of this company and its customers, KOHLER backup power solutions are the best medicine. With KOHLER, the power stays on because the people behind the products are on. Always. You can’t make breakthroughs in medicine if you’ve got breakdowns in power. Which is why so many people trust KOHLER to come through. Without fail.
Tony Arroyo of Kohler prescribed two 2,000 kW KOHLER® generators and KOHLER switchgear to protect the productivity of a major pharmaceuticals maker.
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Addressing power issues at Africa Electricity
O
ver three days, from 23-25 October 2012 at the Gallagher Convention Centre in Johannesburg, in South Africa , global players in the power sector will converge for a showcase designed to bring together international suppliers of products and services envisaged to assist the Southern Africa region to develop its power utilities sector - in an effort to facilitate and address the challenging issues of meeting demand, energy efficiency, distribution, transmission, generation, security of supply and cost efficiency. Brought to the continent by the organisers of the successful Middle East Electricity, Africa Electricity is a one-stop-shop for networking, conducting business and learning under the ambit of a comprehensive showcase for the power, lighting, renewable, nuclear and water sectors. “Power and energy are crucial for the sustenance of the continent, and with current challenges in the sector, it is imperative that stakeholders come together in an effort to alleviate current and future challenges. Africa Electricity delivers a cost-effective sales and marketing platform and is an ideal way of bringing together buyer, seller, and product,” says Anita Mathews, Exhibition Director. A meeting place for industry stakeholders A key feature of the showcase is The BIG Debate, a meeting place
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for industry stakeholders to discuss matters of key importance. The 2012 edition of the debate will feature several highly esteemed professionals and academics who will discuss, debate and deliberate with the audience on the key issues surrounding South Africa and the rest of the continent’s current energy status. Confirmed speakers include: ● Hasha Tlhotlhalemaje, General Manager of Regulation at Eskom. ● Calib Cassim, General Manager of Financial Planning & Economic Regulation at Eskom. ● Deon Joubert, Corporate Specialist of Finance Planning & Regulation at Eskom. ● Ronald Chauke, Head of Regulatory Reform at NERSA. ● Rod Crompton, Regulator, NERSA. ● Johan van den Berg, Chief Executive Officer, South Africa Wind Energy Association (SAWEA). ● Piet van Staden, SC Strategic Sourcing at SASOL. The discussions at Africa Electricity, amongst those speaking at the event as well as those and attending, include: ● South Africa’s Future in Nuclear. ● The Gas Scenario in South Africa. ● Legislative Landscape of Energy Sector. ● Right Price Path for South Africa’s Economy and Renewable Energy. The exhibition will feature over 100 companies from more than 22 countries, and is expected to attract visitors from over 34 countries worldwide. And they all come for one reason: Africa Electricity is the comprehensive showcase to attend - for the power, lighting, renewable, nuclear and water sectors in South Africa. For exhibiting enquires please contact the team on: Tel: +971 4 336 5161 E-mail: sales@africaelectricity.com If you wish to visit the show, you can register for free, with fast-track entry at www.africaelectricity.com/register
42044 GUALTIERI (Reggio Emilia) Italy Ph: +39-0522.222311 - info@genmac.it
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For all show information visit the website: www.africaelectricity.com
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Cummins Generator Technologies develops robust product
A new line of gas generator sets
At the 2012 SMM Hamburg exhibition in Germany, customers and potential customers had their first chance to see a new range of robust AvK generators under development by Cummins Generator Technologies. The new range, scheduled for availability in 2013, is being specially designed for marine and harsh environment applications. Market leading weight, size and efficiency ratings will establish the product as a leader within its field. To meet the challenges of marine and harsh environments, the new range features a low voltage 4-pole robust, bar wound design, and will be compliant with marine industry The robust AvK generators being classifications. The new units are predicted developed by Cummins Generator Technologies to provide an estimated power range of 1500 kVA to 3400 kVA at 50 Hz and 1800 kVA to 4100 kVA at 60 Hz and voltages between 400 V and 690 V with insulation class H as standard. A unique modular design construction and a range of options will allow flexibility to suit typical marine and harsh environment applications, including an air to water cooler, rolling element or sleeve bearing options and Ingress Protection ratings SOLAS IP23 and IP54. Further variations of the new range are yet to be introduced. Prime Power, Grid Code Compliant and Oil & Gas versions, including medium and high voltage, are all under development.
Caterpillar Inc. recently introduced a new series of generator sets. The CG product line - consisting of the CG132, CG170 and CG260 - features electrical outputs ranging from 400 to 4,300 kWe. Available in both 50 Hz- and 60 Hz-rated models, CG generator sets are designed for maximum efficiency in extended-duty distributed generation and cogeneration (combined heat-and-power) applications. This addition to the portfolio of Cat gas generator sets expands the range of options available to customers. Built for flexibility, CG generator sets can operate on gases of varying quality, including natural gas; biogases such as landfill, digester and sewage gas; coke gas; and coal mine methane, and can be used in a variety of The new Cat CG132-8 applications. Gas Generator Set
Angolan roll-out of MAN gensets
M
AN Diesel & Turbo’s medium-speed division in Holeby, Denmark has clinched a contract, as part of a consortium featuring the Portuguese contractor WinEnergy and Brazil-owned company Zagope, with ENE – the Angola national Electricity Utility – for the provision of 49 MAN GenSets. The engines are bound for a series of power projects around the vast, African country. The first delivery is based on initial stock from Frederikshavn, Denmark. The contract represents the largest such deal ever for MAN Diesel & Turbo’s Holeby Power division. The tender in Angola was based on a power container solution covering a total of 14 locations. In connection with the drafting of this, MAN Diesel & Turbo worked closely with WinEnergy, a Portuguese engineering company whose core business is based on solutions development and the commercialisation of turnkey equipment and systems in the areas of energy and environment. In a previous project with WinEnergy, the Holeby Power team implemented a smaller GenSet power solution in Cape Verde. The success of the Cape Verde project was the impetus for WinEnergy to research new tenders in other, former Portuguese colonies in Africa, including Angola. Ultimately, at the end of 2011, WinEnergy signed terms with the Angolan authorities for seven power plants. In the Angolan project, Winenergy and Zagope – the other member of the consortium and an infrastructure specialist – are responsible for the turnkey plant whereas Holeby is responsible for project management, covering the production and design of the GenSets and introducing them to operation at the various, Angolan locations. The first batch of engines is bound for Cunene, in the south of the
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country. Their deployment is also of value in that it will help establish the robustness of Angola’s electrical infrastructure. The project also offers new opportunities for MAN PrimeServ, MAN Diesel & Turbo’s after-sales division, which already has a presence locally servicing several offshore customers in Angola’s booming hydrocarbon sector.
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UPS
Scenarios and applications Understanding transformer-based and transformerless UPS usage: what is the difference, why does it matter and what happens if you use the wrong one?
G
iven the instability of electricity in Africa, the UPS has become a vital piece of technological equipment in Africa. Not only is it essential for protecting expensive computer equipment from fluctuations in power, it is also necessary across industries such as manufacturing, factories and warehousing, where equipment needs to be powered by a steady and constant electricity supply. However, given the diversity of the applications to which a UPS can be applied, it makes sense that there are different types of devices applicable in different scenarios. Transformer-based and transformerless UPSs might perform a similar function on the surface, but they have very different applications, and using the wrong device in the wrong scenario can cause major business issues.
Many organisations apply the wrong type of UPS in a given scenarioâ&#x20AC;? With transformers, and without The difference between a transformer-based and a transformerless UPS is exactly what the names suggest. One type of UPS uses a transformer, and the other type does not. The presence of a transformer means that the UPS physically isolates the mains voltage from the load through a series of copper windings. A transformerless UPS will try and perform the same function electronically. This basically translates to the fact that a transformer-based UPS is more robust and rugged, while a
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transformerless device typically exhibits slightly higher efficiencies, meaning that each is suited to different applications and environments. Transformer-based UPS devices use copper windings, a proven, stable technology that has not changed in many decades because there is no need to change it for certain environments. These devices are more suitable to dirty power environments, applications such as mining, manufacturing and heavy industry, and areas where power is highly unstable. For example, many factories and warehouses need to charge huge devices like forklifts. Plugging these devices into the mains will cause massive fluctuations in power, which the UPS then needs to be able to stabilise. Transformerless UPS devices on the other hand have been designed specifically for the IT environment, and are more suited to data centre and server environments. These devices are not as robust, having been designed to sit inside server rooms, but are easier to manage, and incorporate intelligence and reporting capabilities and the ability to alert people via email or SMS should the power go down, amongst other features. This makes the transformerless UPS ideal in computer and server environments. Despite these differences, however, many organisations apply the wrong type of UPS in a given scenario. While transformer-based UPS devices can handle greater power fluctuations, they are not suited to highly sensitive data fluctuations. Even in areas where power is highly unstable or prone to outages, a transformerless UPS is more applicable, and may require the addition of a voltage stabiliser to ensure it keeps running. If, on the other hand, users try to apply a transformerless UPS
African Review of Business and Technology - October 2012
Choosing the right UPS boils down to knowing your environment and knowing what you need (Photo: Seeweb)
The UPS has become a vital piece of technological equipment in Africaâ&#x20AC;? in manufacturing, or in rural areas, these devices will inevitably fail as they are incapable of handling the voltage fluctuations. While transformer-based UPS devices use old technology, and transformerless UPSs are the result of newer technology, miniaturised equipment and modern business needs, the difference does not even come down to pricing. Depending on the manufacturer and the vendor, the price of each different type of device can vary widely. Ultimately, choosing the right type of UPS boils down to knowing your environment and knowing what you need. Transformer-based UPSs are the utility vehicle of the UPS industry, and transformerless ones are like a fancy, lowslung sports car. You would not take your sports car off-road into the field, and you would not park your dirty, mud-splattered, hard-wearing utility outside a fancy French restaurant on a date. Each type of UPS has its own use, and organisations need to understand these uses so that their expectations of features, functionality and durability are in line with what can be delivered. â&#x2013; Robert Brand, UPS & infrastructure product specialist at Drive Control Corporation
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Diesel Generators
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Test & Measurement
Non-destructive testing I
t goes without saying that any component, pipe, tube, pressure vessel or structure supplied for operation in power generation should be fit-for-purpose. Base materials are subject to rigorous quality control but one of the major areas of in-production inspection is weld inspection. Welding is a joining process that is used for components from boiler tubes to wind turbine towers and they all offer different inspection challenges. Radiography has long been the inspection technology of choice in the manufacture of pipes, tubes and components for the power generation sector, mainly because all standards and inspection procedures were originally written specifying radiography. However, radiography has a few limitations and restrictions such as such as extended film processing times, radiation screening and waste chemicals disposal. Radiation screening is also essential and this can involve screening on line
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or even moving the item to be inspected to a dedicated screened area. However, the technology of ultrasonics has made significant advances over recent years with the development of techniques such as Time of Flight Diffraction (TOFD) and phased array. As a result, ultrasonic procedures are now specified for volumetric weld inspection and can be applied with total confidence. Unfortunately, ultrasonic inspection data is generally not as transparent as radiographic data. Most radiographs, whether they be wet film or digital can be readily understood even by nonspecialist personnel. Ultrasonic data needs to be reviewed and analysed by a suitably qualified technician. Consequently this can cause staffing, availability and cost problems in labour intensive inspections where a number of inspectors need to be deployed. Moreover, the problems are magnified because of a growing shortage of suitably qualified ultrasonics inspectors.
African Review of Business and Technology - October 2012
Radiography is the inspection technology of choice in the manufacture of pipes, tubes and components for the power generation sector
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Test & Measurement An elegant solution Fortunately, recent developments have provided an elegant solution to the problems faced in the application of ultrasonic inspection. The USM Vision is an innovative, ultrasonic (UT) weld inspection system, from GE’s Inspection Technologies business, whose intuitive, 100% guided operation allows lower level UT technicians to gather reliable and accurate pipe weld inspection data, for subsequent remote assessment by a suitably qualified ultrasonics expert. This permits ultrasonic inspection to be used in situations conventionally requiring radiography, removing the constraints associated with radiography. As a result, it facilitates the migration of skills from radiography to UT, reducing the possibility of bottlenecks, providing significant increases in productivity and improving operational health and safety, as well as making best use of the expertise of the limited numbers of qualified ultrasonics inspection personnel. Traceability is an important parameter allowed by the new technology. This is important in in-service inspection as well as in manufacture. The new technology is also applicable to the wide range of components manufactured.
In-service inspection In-service inspection is vitally important to ensure operating efficiency and extend service life. Some inspection is carried out at regular set intervals, but most inspection takes place during planned outages. A wide variety of inspection equipment can be deployed, from eddy current to check for boiler tube cracking and remote visual inspection to view the results of corrosion. However, the most versatile technology is ultrasonics. Manual ultrasonic inspection Manual ultrasonic inspection is extensively used throughout balance of plant. Unlike radiography, manual ultrasonic inspection needs access from just one side and, in nuclear plants, it is unaffected by background radiation. Portable equipment such as the Phasor XS has been used to size inter granular stress-corrosion cracking (IGSCC) in Boiling Water Reactors (BWRs) in nuclear plants as well as to inspect complex geometry feedwater nozzles in BWRs. The Phasor XS has also successfully passed an EPRI Performance Demonstration Initiative which aims to validate test methods, NDT equipment and NDT technicians to specific tasks within a plant. This initiative is yet another attempt to answer the current and growing skills shortage.
POWER
The Phasor has been shown to improve Probability of Detection (POD) reduce operator training times and reduce inspection times. It has been shown that ultrasonic inspection using USM vision can save up to week when compared with conventional radiography. This offers the asset owner significant advantages. If the outage period is fixed, he can inspect more tubes and, in fact, asset owners are continuously increasing the number of tubes they require inspecting during shut-downs. He can inspect the same number of tubes but free up his inspection team to carry out other inspection tasks. Or, alternatively, he can reduce the length of the outage and gain more plant up-time. Conclusions Inspection is a necessary activity in the power generating sector, whether that inspection is in manufacture or in-service. Inspection always needs to be accurate, reliable and efficient. It should also be traceable and code-compliant. As we continue to struggle with the problem of reducing numbers of skilled inspectors, it is even more vital that our inspection technology gets smarter and even more versatile. ■ Lionel Delannoy, Power Generation Sector Leader, GE Measurement & Control
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LEARN AND DISCOVER MORE ABOUT AFRICA’S POWER INDUSTRY Joint Opening Keynote Session – Tuesday 6th November 2012 – 9:30am Ms. Elizabeth Dipuo Peters Minister of Energy, Republic of South Africa
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African Review of Business and Technology - October 2012
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Infrastructure
Investing an infrared future How infrared technology could be deployed to cut energy consumption in South Africa
C
ampaigns encouraging consumers to ‘switch off and unplug’ or face the consequences of load shedding this winter often overlook how much South Africa’s ageing and poorly maintained electricity supply network is contributing to power loss. While the amount of energy lost to poor connections and power spikes on overhead cables and other transmission infrastructure is currently unknown, using infrared technology to identify and prevent electricity loss could contribute significantly to the amount of electricity available for consumption. “We will never know how much is being lost, be able to locate major loss areas or learn how to prevent this loss until we subject all sub stations and switchgear to infrared inspection” says Wernher Le Hanie, a Thermographer at Marsh Africa. Identifying issues with infrared technology Infrared thermography allows humans to visualise and understand what a thermal camera sees – with a spike in temperature indicating an abnormality in the flow of electricity. Le Hanie and his team have used infrared cameras to identify areas of resistance, and hence energy loss, on property circuits and overhead rail cables. “While using thermographic surveys to investigate electricity loss for these commercial customers it became evident that municipal grids were also losing significant amounts of power from their network of faulty connections and points of
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resistance - even before any breakdowns occurred,” says Le Hanie. Without doubt, South Africa’s ageing city electricity supply networks require infrared inspection. Major cities, like Johannesburg, have by far the greatest concentration of cables, connection and transmission points all areas of potential resistance and loss. And just because there is not a breakdown, doesn’t mean there isn’t loss. “Our experience with infrared technology show us that cities, with their multiple opportunities for electrical resistance, are the most likely areas of power loss – often accounting for months and years of increased resistance and lost power before a breakdown occurs,” says Le Hanie. As such, even when a city’s electricity supply network appears to be operating smoothly vast amounts of power are being lost and wasted. With infrared thermography cameras now in South Africa and currently in use in the electrical, mechanical, building, veterinary, medical, security and transport industries, “it is a pity that South Africa’s major cities are not applying this technology more effectively to their electricity supply grids” says Le Haine. Moreover, those few municipalities that are using thermography to combat power loss and other breakdowns often use it incorrectly. For example, switchgear panels are often not equipped with infrared windows. Nor are they left open due to safety concerns. This results in thermographic scans only reflecting surface issues - missing weak connections and
African Review of Business and Technology - October 2012
other faults deeper within the panel,” explains Le Hanie. Comparing cases and costs On top of unnecessary power loss, which Le Hanie believes will prove to be vast once measured and calculated, the risk of not doing regular thermographic scans on South Africa’s electricity grid, especially in its major cities, includes escalation in deterioration of equipment and eventually total breakdown. Compared with maintaining it, it always costs more to replace or rebuild equipment The cost of shutdown for repairs should also be considered along with the cost of damage to the network. “If you include the cost of lost productivity and stock trade etc. the cumulative cost of South Africa’s ageing and poorly maintained municipal electricity grids to the overall economy become significant,” argues Le Haine. The worst case is when electrical equipment catches fire due to a loose connection resulting in the entire system burning down – even though this could have been avoided by preventative infrared scanning. Beyond these spectacular and very visible consequences of a poorly maintained municipal electricity supply network, given that most of the power lost in South Africa is unseen and unmeasured “there is a dire need to start applying modern predictive infrared risk assessment to our electricity grid, especially in our major cities,” according to le Hanie. ■
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Electricity
POWER
Smart management G
iven the increasing cost of electricity, and to some degree an enhanced awareness of eco-consciousness and the damaging effects of fossil fuels on the environment, energy efficiency is becoming a point of importance for many businesses. With increased pressure from stakeholders to take steps to improve energy efficiency coupled with rising electricity costs, reducing energy consumption has become an issue of importance on the business agenda. Common areas of energy consumption across businesses include heating, ventilation and cooling, or HVAC, which often makes up around 50 per cent of energy consumption, lighting at around 20 per cent, general computer equipment about 20 per cent and other equipment approximately 10 per cent. However, a common practice for many organisations is to adopt a fragmented approach when managing energy
consumption, often with individual service suppliers addressing individual components. An alternative way to address energy usage is to take a holistic approach that offers a consolidated view of the buildingâ&#x20AC;&#x2122;s energy usage and provides an overall solution to energy management and efficiency. This holistic view will give an overall assessment on energy consumption, including areas such as boilers, geysers, HVAC and lighting as well as the building management system which should effectively control many of these functions. Auditing energy An energy audit conducted by a service provider with expertise and relevant experience will deliver an overall picture of the entire building, what equipment is using how much energy and where, which will in turn highlight areas for improvement. This energy audit should take on a two-tier format, with a
preliminary audit focusing on measuring the entire building which will identify areas for improvement, which can then be drilled down into a detailed major audit on specific areas should this be necessary. The results of the preliminary audit anables businesses to highlight interventions offering a quick return on investment to boost organisational buy-in, and identify areas for development that require longer-term repayment. Power factor corrections, occupancy sensor controls, HVAC optimisation, some lighting environments and upgrading HVAC equipment to newer, more efficient models can be addressed for quick wins, as they offer return on investment of less than five years and can improve the energy efficiency of a building. â&#x2013; Karl van Eck, Regional General Manager: Africa Johnson Controls Global Energy Solutions
African Review of Business and Technology - October 2012
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EQUIPMENT
Power Hybrid Power Pack completes Konecranes’ range for RTGs
K
onecranes has introduced a Hybrid (diesel/electric) power option for its Rubber Tired Gantry cranes (RTGs), which can reduce diesel fuel consumption by over 60 %. With the addition of this new power option, Konecranes now provides a full range of solutions for RTGs: Hybrid Power Pack, Diesel Fuel Saver, and two electric power options, the Cable Reel and Busbar. Customers can thus choose either a diesel or electric solution, depending on their business requirements. The Hybrid Power Pack and Diesel Fuel Saver provide the flexibility of diesel power, while the two electric options provide the benefits and convenience of electricity – no diesel, less maintenance, less noise and lower emissions. Complete range, full power The Konecranes Hybrid Power Pack turns a fully-diesel RTG into a diesel/electric hybrid RTG. Whenever possible, the crane is operated with electrical power drawn from the energy store. Like www.HATZ-DIESEL.com
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The Konecranes Hybrid Power Pack turns a fully-diesel RTG into a diesel/electric hybrid RTG
a hybrid car, it takes the energy generated during braking and converts it into electricity to recharge the batteries. Depending on usage, this solution can significantly reduce diesel fuel costs. Put another way, the RTG can operate much longer on a tank of fuel. The Diesel Fuel Saver provides power-on-demand, matching the RPMs of the RTG engine to the work the machine is doing. It ensures that the diesel engine is running at maximum efficiency at all operating points, without high-speed idling. Compared with conventional diesel engine operation, the Diesel Fuel Saver can considerably reduce fuel consumption, resulting in cost savings of tens of thousands of euros per RTG per year in typical operation. The Cable Reel and Busbar options convert the RTG to fullyelectric operation, eliminating diesel exhaust emissions and ensuring quiet RTG operation. The latter is an important consideration when the container terminal is located near a residential area. There is no downtime for refueling, so the RTG can spend more time in productive operation. The time saved by not refueling can amount to up to one working week per year. Full service Konecranes not only provides a full range of power options, it also provides a full range of services for RTGs, including maintenance and retrofits. When Konecranes modernizes an RTG with a power option retrofit, the company makes sure that the power system is fully integrated with the mechanical and electrical systems. This ensures that the RTG continues to work reliably and efficiently.
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Contracting
CONSTRUCTION
Reconstructing Libyan society With a massive construction and infrastructure requirement, contractors need to be positioned to grasp the opportunities
T
he international contracting community is keenly aware of the opportunities which Libya represents. With a new government and fundamental economic reform taking shape over the next year, coupled with a massive construction and infrastructure requirement, contractors will need to be well positioned to grasp the opportunities that will eventually materialise. That means starting the process now. How will the political arrangements play out? What will be the new commercial/legal landscape? What are some of the project prospects? What are some of the legal issues to be aware of when considering project opportunities? How will the security situation alter? This article will look briefly at these questions and provide some guidance to international contractors that are interested in being part of the new Libya. Politics and administration The National Transitional Council (NTC) currently carries out the function of Libyaâ&#x20AC;&#x2122;s caretaker government. The NTC was established by constitutional declaration (the Declaration) in August 2011 and will remain the interim authority in Libya until the election of a 200-member National General Council. Once the National General Council is elected, a new constitution will be drafted and put to referendum towards the end of 2012. The new constitution will build upon the spirit of the Declaration. A key objective of the Declaration is to diversify the economy, which has for a long time been almost entirely dependent on oil revenue. Another objective is promoting the private sector, including the introduction of transparent processes for privatisation.Time will tell how well these objectives are met.
Any major legislative and regulatory reforms will not occur immediately. The new central government has many priorities in what is a complex web of semi-autonomous regions seeking federalism, factions and diverse tribal and ethnic groups. The reality will involve the establishment from scratch of a parliament, the government and its ministries, not to mention the associated committees and bodies that are a necessary part of the machinery of government. Evidence from other regions suggests that it will be a slow process with mistakes along the way. A new government will bring with it a fresh roadmap for reform. There is much to do before there is any structure around how the government intends to allocate the vast construction and infrastructure budgets at its disposal, and how it will tender and ultimately engage foreign contractors. For this reason we are cautious about short terms prospects, it is unlikely that there will be any major project for at least the next year or two. Construction and Infrastructure Projects Before the Arab Spring and the upheaval there, Libya had advertised to the world that it would be spending US $500bn on projects by 2020, including US $15bn on infrastructure projects by 2013. There is no reason to believe the scope of intended investment will be diminished. The time frames will simply be moved.However the new government may also look at what had been prioritised previously and it is likely that some re ordering of what is considered critical will occur. Virtually all sectors of Libyaâ&#x20AC;&#x2122;s economy require massive investment and improvement. Some of the obvious sectors are airports, ports, railways, roads, housing, healthcare and the revitalisation of power
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CONSTRUCTION
Contracting
and water facilities. Although the Great ManMade River Project represents a great achievement in Libya for supplying water to some parts of Libya, there remain huge water shortage issues, let alone wastewater systems that are urgently needed. Add to this the project market associated with a major push for a tourism sector and we are looking at a very significant project market for many years to come. Healthcare is close to the top of the list, as it is in many Arab countries. The NTC has been studying public private partnership models, with a view to procuring the delivery of at least seven new hospitals using a PPP model. The NTC has also earmarked the refurbishment of many hospitals as a prerogative once the new government is in place. Despite the wealth generated by Libya’s oil reserves, there are strong signs that the new Libya will favour the procurement of many healthcare projects off balance sheet, utilising the expertise of expert consortia. This will present big opportunities for foreign contractors. It is not yet clear whether PPP models are being considered for other sectors, but it is certainly likely, given that such models continue to be closely considered by Libya’s neighbours and GCC countries across a range of projects. The World Bank announced in September 2011 that it would be helping the NTC plan and tender for contracts for reconstruction. The anecdotal evidence is that to date not much has been done in this regard. A wait and see approach until the new government takes over is now more likely. There are obvious constraints on the NTC’s legitimate authority to award contracts. So far, outside the oil and gas sector at least, only local contractors have been actively repairing and rebuilding. Foreign involvement is a medium- to longterm proposition. In the short term, the focus will be on establishing the level of public governance required to enable the scale of investment that is planned. Legal issues A foreign contractor must establish a local entity to work in Libya. This should be looked at now, as there is a huge administrative backlog and red tape to navigate. It is possible to set up a branch office of a foreign company in Libya without involving a Libyan partner. However, there is considerable complexity in any set-up and experienced advisers need to play a very active role. It is unclear if these processes will change with the new government. The legal system in Libya is based upon a Civil Code and Islamic Law (the Shari’a). The Civil Code is based upon the Egyptian Civil
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Code and is broadly similar in content and effect to other Civil Codes in the GCC, such as the UAE Civil Code. Many foreign contractors will be familiar with certain aspects of the application of Civil Code concepts in the context of undertaking projects in the GCC. For example, good faith, decennial liability and Article 249 (“change of circumstances”) are principles well known to contractors doing business in the UAE. Expect the same principles to apply in Libya.
Strong relationships with local Libyan contacts is of paramount importance - as those showing commitment and interest will gain the best business” The Shari‘a may be reasserted in Libya’s new legal landscape. The leader of the NTC has been vocal about the fact that the Shari‘a will be the primary source of law in the reformation of Libya and that any laws contradicting the Shari‘a will be void. An example of such a system is in Saudi Arabia. We would not be surprised, however, to see the status quo maintained of a Code-based system alongside the Shari‘a. So what are some of the key things a party needs to be aware of when entering into a contract in Libya? Where a contract is entered into with a public sector entity, such contract will be subject to the Administrative Contracts Regulation no. 563 of 2007 (the Regulation). There are tender rules and other special rules for state contracts. The Regulation provides that all disputes under such contracts must be referred to the Libyan courts. A submission to arbitration requires the approval of the General People’s Committee. It is expected that these rules will be in place for some time. The language of a contract should be in English so that the storm of correspondence generated by a construction project can be quickly understood. If the language of the contract is stated to be Arabic, a contractor will need a very good translator, who will become a critical adviser. Translating Arab into English has many traps for the uninitiated. Force majeure provisions will obviously be important. The Regulation and the Libyan Civil Code both deal with force majeure, and these provisions may form part of a wider
African Review of Business and Technology - October 2012
interpretation of an FM provision expressed in a contract. The Civil Code imposes different standards from the common law in the context of the principles of a bargain between parties. A bargain may not always be a bargain. It may be difficult to negotiate around the requirement for submission of disputes to the local courts where contracting with the public sector. Where contracting with a private party, it would be preferable for the contract to provide for an agreement to arbitrate, with the place of such arbitration being an internationally recognised location, such as London, Paris or Geneva. Libya is not subject to the New York Convention, which means that all foreign arbitration awards sought to be enforced in Libya have to be approved by the Courts in Libya. Assume appeals, appeals and more appeals. Our long experience in the Middle East and North Africa means that we are well placed to assist in unravelling the problems with existing contracts. That is certainly the problem currently facing many foreign contractors in Libya. In virtually all cases, getting things right at the start can avoid many problems later on. This will be particularly important going into the new Libya. Conclusion Foreign contractors need to form strong relationships in Libya. They need to be doing this now. As is true with many other parts of the Arab world, forging strong relationships with local contacts is of paramount importance. Those contractors that show commitment and a genuine interest in the future of Libya will be “front and centre” when the tenders and contracts eventually start coming. Trust will be key. Especially in a society as small as Libya. Establishing such trust in a fractured Libya will take time, but offers huge rewards for the committed. Libya’s oil wealth underpins the relative optimism for the future growth in construction and infrastructure. While in time there will be many opportunities, foreign contractors will need to have an established presence in the local market and be alive to the risks and traps for the unwary of not only a system of law that relies predominantly on civil law concepts and the Shari‘a, but also a fluid, evolving commercial environment in an Arab nation that is in the primary phase of undoing 40 years of dictatorship.The challenges are immense. So are the possible rewards. ■ David Risbridger, a partner and head of the construction and dispute resolution group at SNR Denton in Dubai
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CONSTRUCTION
Equipment Volvo CE is pushing afresh to achieve closer commitment to innovation and greater sales
How to differentiate in equipment markets Core values at corporate level define and support Volvo CE’s efforts to achieve closer market engagement in Africa and the Middle East
T
omas Kuta, President of EMEA sales at Volvo Construction Equipment (Volvo CE), spoke recently of the company's renewed focus on sales in European, Middle Eastern and African markets - and of its commitment to innovation in design, to make its equipment increasingly purposeful and cost-effective. At the heart of Volvo CE's new wave commitment to innovation is the company's adherence to core values – an adherence to the aspiration of quality, safety and environmental care – which Volvo CE regards as fundamental drivers for its operations and operational development, underpinning an open and future-oriented approach to business relationships, as well as product development. What Volvo CE's core values deliver to African and Middle Eastern markets Making and delivering products that work well means a lot, but being a responsible corporate citizen requires more than that.
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Volvo Construction Equipment’s approach to market involves creating a symbiotic relationship between quality, safety and environmental care - ensuring the quality of its products, the efficiency of its factories, and the standards it sets by its partners and services. As Mr Kuta spoke, it was clear that quality matters most; not only in its own right, but also in underpinning the promotion of safety and environmental issues. Volvo CE's core values apply through the quality of equipment supplied to support construction projects in African markets. This new drive - evidenced in the development of the company's drivetrain, hydraulics and lifting systems, for example, and in its introduction of a diesel particulate filter - is also in keeping with the company's heritage of 180 years of operation. Tomas Kuta affirmed the continuing stress on a heritage of commitment to quality when he said, "We always have tried to stay ahead of the competition."
African Review of Business and Technology - October 2012
A principal reason for Volvo CE's recent restructuring of its sales and distribution networks is to engage better with its customers and potential buyers. Proximity is a keyword at the company. This is reflected already in a good sales momentum for Q1 2012, with good operating figures recorded for the quarter. Tomas Kuta firmly believes that continued success for Volvo CE rests also with superior engagement with markets. He said, "The differentiator will be distribution." Looking at the supply chain, Tomas Kuta also highlighted attachments, and introduced a new attachments system in prospect from Volvo CE - borne of a SEK100mn (US$14.5mn) investment, and set to be fully realised, globally, by 2015. Alongside telematics, customer support agreements and many other areas, Tomas Kuta said that this area would bring Volvo CE closer to markets and to customers, by responding better to demand, by delivering tailor-made solutions. ■
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A cab with a view.
MPH 125: A new perspective on stabilisation and recycling.
3212 04/12
With easy handling and advanced technology comes high productivity and optimum mixing. This cab offers unique visibility and operator comfort. No surprise, as the driver is ideally positioned at the centre of the machine. Another MPH 125 design feature is the unit’s ease of transport: the driver’s station is height adjustable. This minimises the need for special permits or low-load trailers. That’s Bomag – an eye for the bigger picture.
www.bomag.com
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CONSTRUCTION
Transport
Completing a road-rail underpass Aerial view of project. Hoy Street is the near side and Price Street the far side.
The use of conventional construction technologies to execute a ‘design and construct’ road-under-rail underpass project in Newclare, Johannesburg, as part of a bus rapid transit (BRT) system
C
oncor Civils, a Murray & Roberts Construction company, has harnessed several conventional construction technologies in a unique combination to execute a highly successful “design and construct” road-under-rail underpass project in Newclare, Johannesburg, as part of the Johannesburg Development Agency’s Rea Vaya Bus Rapid Transit (BRT) system. Throughout this 18-month project, the Newclare to Westbury rail traffic remained operational at all times and it is one of very few structures of this size to be jacked into an operational railway line embankment without interruption to the railway traffic. The BRT route identified through Coronationville and Newclare absorbs some of the roadway capacity in this busy area and necessitated additional rail crossing points. The new road-under-rail crossing links Price and Hoy Streets which runs parallel to the railway at the Newclare railway station, effectively easing future traffic flows in this area. The project involved the construction of two reinforced concrete structures, one on either side of the railway embankment. The two structures were jacked through the embankment until they
The Hoy Street side during jacking.
overlapped on the centre line of the railway to form the underpass structure. The 52.5 metre long underpass is 12 metres wide, allowing for two road lanes of 3.7 metres each and two sidewalks of 2.3 metres each. The structures, constructed in two halves, measured 28 metres long and 24.5 metres long. The project team comprised consulting and review engineers VelaVKE with structural design provided by Concor Civils and lateral support design by Jones & Wagener. Esorfranki Geotechnical constructed the lateral support and conducted the jacking, with Concor Civils undertaking the concrete construction. AfriSam supplied all the concrete for the project and provided technical advice for the more difficult concreting operations — input that made a valuable contribution to the project achieving compliance. The project presented several taxing technical challenges that required close co-operation between all parties. For example, the construction team had expected to encounter mine sand from historic mining operations in the area in the embankment material. In reality, the embankment material was found to be well compacted fill with high clay content and a greater volume than expected of very hard quartzite bedrock which required drilling and blasting. During the 18 month contract period, 30 local labourers were employed and trained in basic construction activities. Small to medium enterprises were employed for managing the traffic on the roads adjacent to the site, as well as the paving of the sidewalks and implementing traffic calming measures such as speed humps, to boost road safety in the adjacent communities. Special training was conducted to uphold safety among those workers required to work in close proximity to the existing railway line. Railway flagmen and scaffolding erectors were also trained. Safety and environment Since this project was constructed in a densely populated urban environment, due care and attention had to be paid to construction noise levels. Compressors were specially silenced and noise and vibration
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African Review of Business and Technology - October 2012
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Transport A closer look at the structure during the jacking operation.
from blasting was managed by using small-charge-delayed blasting. The material excavated from the underpass was placed to reinforce the toe of the adjacent railway embankment, eliminating the need to haul this material across congested roads in the vicinity of the project. This was seen as a safety consideration, since members of the local community use the streets for recreation activities. The normal Health and Safety standards applicable to all Murray & Roberts Construction Group projects applied throughout. All those
CONSTRUCTION
The completed underpass
working close to the live railway line were given special training to ensure knowledge of the specific and invisible hazards and all subcontractors were inducted into Murray & Roberts Construction safety standards. This required the workers not only to conform to the high level safety requirements, but also to produce Risk Assessments and Method Statements for all activities. The numerous risks associated with this project were successfully mitigated by careful planning and implementation. â&#x2013;
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African Review of Business and Technology - October 2012
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CONSTRUCTION
Loaders
Loading up in large quantities 4WD wheel loaders are at work wherever earth, rubbish or solid minerals have to be shifted; we look at the design of these highly versatile machines
T
he high-capacity wheel loader (known in some countries as a bucket loader) is widely used all over Africa wherever heavy material-moving operations are taking place. It is particularly useful in large-scale surface mining because with a six-figure (measured in pounds) breakout force of it can be used for both digging and shifting tasks. For underground use special models are now available that use ultra-safe electric power. Versatile products from established manufacturers Manufacturers who are well known here include Bell Equipment, Case, Caterpillar, Doosan, Fiat-Hitachi, Hyundai, Komatsu, Liebherr and Volvo CE. In short most manufacturers include a modern wheel loader somewhere in their range; partly because these machines are so versatile; and partly because they are relatively easy to both manufacture and maintain. The very first machines were simply rigid-framed bucketequipped farm tractors, used in the US Mid West back in the 1930s. Probably the number-one event in the evolutionary history of this very useful
machine was the incorporation of articulated framework, soon after the Second World War. This increased the manoeuvrability of the equipment massively, allowing it to be used in a confined space like a farm yard or machinery store. Number two was the incorporation of hydraulic control (both lift and tilt) of the bucket – a vast improvement on the simple mechanical (heavy cable) linkages of the original loaders. Such fine control of massive power helped with digging and loading from a heap in particular. Highly manoeuvrable four-wheel drive, some types incorporating robust hydraulic motors, followed soon after that. Safety first Safety issues were addressed early on because it was recognised that the twin control arms constituted a hazard in their early format; they were moved to the front of the machine with the counterbalancing weight of the diesel engine firmly at the back. By the 1960s most wheel loaders incorporated these improvements, and it was then that the size (lifting capacity, measured in either volume or weight) really started to
Modern wheel loaders are highlyefficient, high-horsepower machines with advanced capabilities
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increase, from around the standard 3-5m3. This limit was soon doubled by key international suppliers such as Caterpillar, Clark-Michigan and International Harvester who exploited the widescale adoption of wheel loaders by the world’s quarrying industry in particular. Machines that can lift 15 tonnes-plus in a single “bite” are now available, widely used in the opencast coal and oil shale industries and ideal for coupling with the latest very large mining trucks. Where is this vital branch of the contractors’ plant industry heading now? First there is the trend to supply and equip with an ever increasing range of attachments such as grapples, log-lifters, specialised forks and buckets that can be used to lift almost every form of bulk or palleted load imaginable. These attachments increase the versatility of the machine too, because they can be used to extend the range of operation into such areas as tunnelling and demolition (without a separate hydraulic breaker being needed in some cases). Further development Other advances include moves to increase the efficiency of fuel consumption, and to reduce exhaust and noise emissions at the same time. These trends are common with developments within the earthmoving plant industry as a whole of course, many of them forced by the demands of tightening legislation. All encourage export sales, as do trends to simplify maintenance operations by keeping all regular-service items within easy reach under the hood. The other major change we are seeing right now is the replacement of the standard torque converter-based power transmission system with ultra-reliable and silent electric motors incorporated into each individual wheel hub, along with new high-capacity hybrid (diesel/electric) prime movers safely and efficiently located well behind the operator so that forward vision can continue to be improved. ■
African Review of Business and Technology - October 2012
2007-502
S15 ATR Oct 2012 Construction 2_Layout 1 20/09/2012 18:08 Page 79
Experience the Progress.
Liebherr-Export AG General-Guisanstrasse 14 CH-5415 Nussbaumen, Switzerland Phone: +41 56-296 1111 E-mail: info.lex@liebherr.com www.liebherr.com
2007-502_015 Bausammel_ohne_LWE AR-01.indd 1
The Group 27.02.12 14:42
S15 ATR Oct 2012 Construction 2_Layout 1 20/09/2012 18:08 Page 80
CONSTRUCTION
Cranes
Tilt sensors that do a stellar job Crane designs adapted to suit utility and municipal operations, and related serviceapplications, that require heavy lifting over long ranges
P
enny + Giles, a business group of CurtissWright Controls and designer and manufacturer of high precision sensing technology, is supplying its STT280 tilt sensors to Stellar Industries for a boom angle positioning application on its range of truckmounted telescopic winch-line cranes. A pivotal pioneer Established in 1990, Stellar Industries was a pioneer in the design and manufacture the hydraulic hooklift. Since its inception Stellar has created over forty different single-pivot, double-pivot and sliding jib models and now holds numerous patents on the Stellar Shuttle double-pivot hooklift. The Penny + Giles STT280 tilt sensors are being used on Stellar’s range of service/mechanic truck packages, which feature telescopic winch-line cranes mounted on service truck bodies. These vehicles are typically used by utility and municipal companies and related service industries requiring heavy lifting over long ranges. The truck-mounted cranes offer lifting capabilities from 29,500 foot pounds capacity (capable of lifting 5,000 pounds at
80
approximately six feet) to 82,600 foot pounds, which are capable of lifting 14,000 pounds at five feet. All models feature a boom elevation from -5 to +80 degrees. Stellar’s 5521 telescopic crane is the first model in the range to feature the Penny + Giles tilt sensors and the first to use Stellar’s CDT (Crane Dynamics Technology) control system. It offers a maximum 5,000 pound capacity at 5’ 9” in boost mode, has a 21-foot reach and offers two options: a ‘one hydraulic/one manual’ extension version and the company’s all-new ‘two hydraulic’ extension version. Discreet and effective Commenting on the choice of Penny + Giles tilt sensors, Stellar’s sales and marketing manager Sean Moran says, “The main reason for specifying the STT280 is the compact design, which allows us to mount them in discreet locations on the cranes. A close look at the company itself also showed that Penny + Giles products are used extensively in defence and military applications, confirming that their products are robust and manufactured to an extremely high quality. This makes them ideal
African Review of Business and Technology - October 2012
for the arduous operating environments demanded of our telescopic crane systems.” The STT280 tilt sensors are integral to Stellar’s CDT smart control system. They are used to measure the angle of the telescopic boom, enabling the CDT to calculate the load on the crane and transmit the data from the sensor to a handheld controller. This controller features a graphical user interface that uses multiple sensory indicators (coloured LED lights and pulsating vibrations) to alert operators of increasing loads before an overload situation occurs. The use of cyclical vibrations in the controller ensures that the operator is always aware of approaching maximum capacity, while still being able to monitor the load itself. Before the tilt sensors were installed the only safety system in place was a pressure sensor on the hydraulic system that would shut the crane down as it reached a defined load. Summarising, Sean Moran says this is the first time this type of telescopic system has used tilt sensor technology to relay crane condition and operation to the operator, which puts Stellar and Penny + Giles at the forefront of service crane technology. The Penny + Giles STT280 tilt sensor features a choice of measurement ranges from ±10°, ±20°, ±30° and ±60°, with an output range from 0.5 to 4.5Vdc over the full inclination angle and a nominal 2.5Vdc at 0° tilt. It can also operate from a 5Vdc regulated or 8 to 30Vdc unregulated supply and uses solid state 3DMEMS (Micro-Electro-Mechanical Systems) technology to measure its inclination relative to earth's gravity. This means the sensor has a low power requirement of less than 6.5mA, and can therefore be used in hard-wired or battery-powered systems. This gives the STT280 significant advantages in reliability, stability and compactness compared to fluidbased electrolytic and pendulum-operated sensors. ■
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Go Green - GO KOBELCO!
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Also including all advantages KOBELCO cranes are already famous for:
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S16 ATR Oct 2012 Construction 3_Layout 1 20/09/2012 17:52 Page 82
CONSTRUCTION
Compressors
A machine fit for the purpose? Is your compressor working as it should? Or have your air needs moved on? We look at some of the key considerations
R
egular maintenance is one requirement, but sometimes a compressed air system needs to be looked at in terms of an upgrade, or even complete replacement. Is it still delivering the quantity and quality of air you need at the point of use? Are the operating costs incurred reasonable? Is your factory, service or healthcare institution still getting the quality of service it deserves?
Will the machine run most of the time on full load, which is usually the most efficient practice? It may actually cost you less in the long run to have a matching pair of smaller compressors to cope with varying part-load conditions, the sort of use associated with batch production in a modern textile or food processing factory, especially one that specialises in contract production.
Steps to take The first step is to calculate how much air is needed at the business end, and precisely when/how often. The second is to decide which type of compressor can best perform this task. The main choices will be between dynamic or positive-displacement types, rotary or reciprocating, and whether the chosen machine is cooled by air or water. These are all considerations which will affect the space that needs to be allocated to the system. Maybe your existing plant room could be done away with completely. A secondary calculation will be on whether or not an aftercooler is needed to prepare the output air for further treatment, such as filtering, removal of oil and drying. Full heat recovery is an economic proposition in the case of some large applications.
Taking advice Suppliers can advise on this calculation, which may indicate that a chip-controlled compressor sequencer is needed to keep the output stable within the pressure and volume limits you set yourself. Whatever the outcome a user-friendly automatic control system nearly always makes economic sense these days. Your compressor supplier will also be able to advise on whether a receiver tank will be needed to cope with varying load conditions, e.g. to boost delivery capacity at low cost during infrequent peak periods. Finally, the experts will be able to check on the quality and layout of all the existing piping layout, junctions, filters, regulators and so on that distribute and control the produced air, all carefully sized so as to minimise pressure drops from stage to stage of a typical rotary
The XHP1070WCAT-T1 compressor from Doosan is well-suited to quarry drilling, industrial processes and pipeline testing and commissioning
82
African Review of Business and Technology - October 2012
screw-fed system. Some kind of accessible moisture and oil drain-off point should be built in at an appropriate location to maintain the quality of the air and the combined integrity and long life of the complete system. Efficiencies and purposes Proper design using contemporary principles along these lines should ensure that you always receive the quality of air your business or institution needs in the right volume and pressure combination at the right time. And most importantly with the right impact on your bottom line. Up to three-quarters of the cost of compressed air is routinely ascribed to power supply these days, and in the first year of running a brand new system the total system operating costs can typically be twice the acquisition cost. This is why it’s vital to check overall energy efficiency – including for cooling – when choosing a new compressed air system. Components that need checking in this regard include the efficiency of the airend itself, the power demand of the cooling system(s) incorporated, the quality of the motor and the drive system (self-tensioning belts are typically recommended if direct drive is not possible), the quality of the piping, and the degree of isolation from vibration at typical output levels. Another key consideration is whether a simple enclosure will be adequate to keep the noise level down; some old-style separate plant rooms can nowadays be converted to more profitable purposes if modern principles of sound attenuation are applied. Most of these are technical considerations which an astute works manager can apply common-sense principles to, but once the basic requirements are defined it is nearly always best to bring in a qualified system designer to sort out the details. All reputable suppliers in Africa can provide this service. ■
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S16 ATR Oct 2012 Construction 3_Layout 1 20/09/2012 17:52 Page 84
EQUIPMENT
Construction The new evolutionary E-series ADT â&#x20AC;&#x2DC;Eâ&#x20AC;&#x2122; is for evolutionary with regards Bell Equipmentâ&#x20AC;&#x2122;s new E-series generation of Articulated Dump Trucks (ADTs). With a wider hood and more imposing styling, the E-series looks well poised to grow Bell Equipmentâ&#x20AC;&#x2122;s proud heritage as a premium ADT supplier and is planned to go into production in 2013. Bell Equipment Chief Executive Gary Bell said: â&#x20AC;&#x153;We believe that our D-series has successfully met the challenges of the worldâ&#x20AC;&#x2122;s job sites and has many strengths and features across the range that our customers would like to see carried forward in our product advancement. Therefore we have adopted an evolutionary approach to the E-series, to build on the legacy of the D-series generation and our decades of experience in design and manufacture, rather than a revolutionary cleansheet design. Weâ&#x20AC;&#x2122;ve stuck to our design principles of delivering weight optimised, high production trucks with superior tractive effort but looked at ways of doing things smarter to provide customers with an even greater competitive advantage in their businesses.â&#x20AC;? Bell Equipment has a tradition of pioneering industry firsts and these ground-breaking ADT innovations are in its latest generation of trucks, including standard onboard weighing, keyless ignition, HillAssist, Bin Tip Prevention, Auto Park Application (APA) and standard Turbo Spin Protection. In addition the new trucks include various other safety features while further advancements have been made to the companyâ&#x20AC;&#x2122;s own fleet management system, Fleetm@tic to take existing technology to the next level and provide customers with seamless integration with their business systems.
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African Review of Business and Technology - October 2012
S17 ATR Oct 2012 Mining_Layout 1 20/09/2012 18:10 Page 85
Electra Mining
MINING
Making the most of African mining Africa’s largest mining expo, Electra Mining, opened up to the investor community in Johannesburg recently
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anked as the world’s second largest mining show and the biggest trade exhibition in Southern Africa, the 2012 edition of Electra Mining opened its doors to thousands of visitors in Johannesburg in September, to offeri a showcase of products and services over four days. The exhibition specialises in new innovations in the mining industry - with an array of technologies on show. This year’s exhibition was the 21st show since it opened its doors in 1972 - and there were over 800 exhibitors from 15 mining countries present to celebrate - from as far afield as Russia, Turkey, India, China, Canada, USA, the United Kingdom, France, Germany, Austria, Italy, Switzerland, Sweden and Botswana. Both local and international exhibitors displayed their latest technological innovations and services, which have been developed since the last exhibition in 2010. This year’s show, for the first time, included general industry companies that produce raw materials like steel and electrical components. Of this year’s event, Specialised Exhibition’s Managing Director Gary Corin observed that visitors could expect to see many leading-edge South African companies as well as high-profile international exhibitors over the 3,700 square metres of exhibition space that comprises the biggest trade show in Southern Africa. He noted, “International companies are exhibiting here because they see South Africa as a getaway into Africa for local and global investors looking for new business opportunities in the mining and power generation industries.” A world of innovation on disaplay International exhibitors this year included the Canadian Association of
Multotec showcased its process equipment at the 2012 edition of Electra Mining
Mining Equipment and Services for Export (CAMESE). There was, also, a Chinese CNC machine supplier, GSK CNC Equipment - exhibiting at Electra Mining Africa for the first time. The company presented its GSK 988T CNC controller for lathe machines, servo driver and motor, spindle servo driver and motor. Polysius, a German specialist company in the design and supply of grinding and processing equipment for the cement and minerals industry, highlighted a new range of products including a high pressure grinding roll (HPGR). From South Africa, motor manufacturer Zest Weg Group put energy efficiency on the spotlight with its new and improved green machinery. Also on show was the recently upgraded range of DWA moulded case circuit breakers, a full range of capacitors and Weg’s SRW01 smart relay. Compressor and generator rental company Rand-Air presented its latest energy efficient, oil-free high pressure compressors and low pressure blowers, which are used to treat waste water in mining. “Even though here in South Africa we do not have such a broad selection of products like in Europe or China, what we do have is worldclass. What local exhibitors have here are products that can compete anywhere in the world,” said Corin. There is a serious reason for global players to present in Johannesburg - but also for those present to engage, to network, to share knowledge of opportunities. South Africa has the fifth largest mining sector in the world, but suffers for a lack of investment. Hence, the exhibition serves, also, as a platform to facilitate communication between public and private sector, focusing on the growing role of Africa in the world’s economy. ■
African Review of Business and Technology - October 2012
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MINING
Diamonds
A deeper diamond shaft C
ullinan Diamond Mine (Pty) Ltd, a member of the Petra Diamonds group, recently awarded Murray & Roberts Cementation a contract that includes the deepening of Shaft 1 and Shaft 3 at the Cullinan diamond mine - near Pretoria, in South Africa together with associated infrastructure and planned level development to the Cullinan ore body. The contract is part of a major expansion plan at Cullinan, which will take production from just under one million carats in 2011 to 2.4mn carats by 2019, incorporating 2mn carats from underground production and 0.4mn carats from a major tailings programme. The mine is currently producing about 9.2 kilotons per day (ktpd) from three mining blocks on two horizons at the mine. Allan Widlake, business development director at Murray & Roberts Cementation, says Cullinanâ&#x20AC;&#x2122;s life of mine profile requires the opening up of a new block cave in the C-Cut Phase 1 area of the Cullinan kimberlite pipe, 200
metres below the current operations. This new block will access the first portion of the C-Cut resource, beneath existing production levels. â&#x20AC;&#x153;The C-Cut Phase 1 is planned for a steady state production rate of circa 4 Mtpa, with the first column tonnages reporting in calendar year 2016,â&#x20AC;? he explains. â&#x20AC;&#x153;Access to the C-Cut Phase 1 block is through a decline system from the 763 metre level on the southern and northern sides of the kimberlite pipe, deepening of the existing No 1 rock hoisting shaft to handle waste and ore from the future mining areas and deepening of the existing No 3 men and material shaft to deliver personnel and material to the underground workings.â&#x20AC;? Cullinan is one of the worldâ&#x20AC;&#x2122;s most celebrated diamond mines and has produced more than 700 stones sized greater than 100 carats and more than a quarter of the entire world's diamonds of greater than 400 carats. It is also the world's only significant source of truly rare and highly valuable blue diamonds. â&#x2013;
View of the head gear at Cullinan
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African Review of Business and Technology - October 2012
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Services
MINING
A southern African hub E
ngineering group Sandvik has now established a regional centralised distribution hub near OR Tambo International Airport in Gauteng, South Africa, near the city of Johannesburg supporting its customers in the mining and construction industries throughout southern Africa. The new hub is actually the fourth of its kind within the global Sandvik group - and its opening coincided with the group’s 150-year anniversary celebrations. The other three strategically-sited warehouses are in the Netherlands, the USA and Singapore. These centralised distribution hubs are characterised by efficient inventory management and advanced logistics to ensure reliability of supply. This distribution philosophy allows the group to ensure rapid deliveries and maintain a broad product offering. Operating from a 16,000 square metre site
staffed by a total of 65 temporary and permanent employees, the new distribution hub - known within the Group as C4 - represents the consolidation of six local warehouses - controlling a stockholding of about 28,000 product lines at any one time, from O-rings to 4.5 ton manganese cones, worth in the region of R230mn ($US27.6mn). Targeting continuous improvement “We’re presently delivering 5,000 lines to customers every week,” Sandvik regional logistics manager, Rodger Winter, says. “With more than 1,2 00 pieces of our equipment operational in southern Africa at the moment, we offer customers 80 per cent availability on all parts. This percentage includes both fast and slow moving parts and with continuous improvement programmes in place we are targeting to increase this. We can source
Sandvik employees welcoming guests to the official opening of Sandvik's centralised distribution hub in Wingfield Park
and ship the required item within 24 hours and 85 per cent of these customers receive their required parts within six hours of requesting them. Over the course of 2011, our logistics partner travelled 5.3mn kilometres while delivering stock items to southern African customers.” ■
African Review of Business and Technology - October 2012
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EQUIPMENT
Mining Compact light tower for mining markets
D
oosan Portable Power offers a 50 Hz version of the its LSC (LightSource® Compact) portable light tower for markets in the Middle East and Africa. Designed for reliability and durability, the LSC light tower also available as a 60 Hz model - is ideal for rental. Applications include lighting for mining and quarrying locations. The light tower has a new power train based around the Kubota D1005 water-cooled diesel engine, providing 8.5 kW at 1500 RPM (1800 RPM for the 60 Hz version) and meeting EPA Tier 4 final emission regulations. The fuel tank capacity allows an extended runtime to 64 hours (55 hours for the 60 Hz version). The compact frame maximises loads for transporting on trucks; 12 assembled units can be accommodated on a standard 48 foot flatbed trailer. The enclosure is designed for convenient access to the control panel. A small door on one side of the unit allows operators to access the controls without having to open the entire side panel, while integrated hinges have been added to the other side of the light tower to provide easy access to maintenance components. The floodlights provide a NEMA 6 x 7 beam spread for broad light distribution. The castaluminium fixture housing includes a reflector for optimal light distribution over a wide area. The small footprint of the floodlights improves wind load resistance. www.doosanportablepower.com The 50 Hz LSC Light Tower from Doosan Portable Power
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Caterpillar showcases quarry equipment in Johannesburg
The Caterpillar Lokotrack LT120
Caterpillar, which manufactures construction and mining equipment, together with its dealer for Southern Africa, Barloworld Equipment, has hosted a three-day event in Johannesburg to introduce new machinery to the South African Market and exchange industry expertise with their customers. The company’s Quarry Days take place twice a year in different cities all over the world - to build strong customer relations and to demonstrate practices and services the company has to offer to its customers. The Johannesburg Quarry Days this year took place on the 10-12 September, with talks presented by different industry experts focusing on machine selection, maintenance and tips on maximising productivity. The talks were followed by live demonstrations of the latest machines on site - where Caterpillar demonstrated different machines for loading, hauling, crushing and support equipment. Loading equipment included a Cat 988H, Cat 966H, Cat 374D, and a Cat 340D. Caterpillar also introduced their latest hauling equipment, a Cat 740B, 36 ton truck for difficult terrain and a Cat 770, 36 ton, rigid truck. This year Caterpillar invited Metso Group, a global supplier of technology and services mainly to the mining and construction industry, to showcase their latest crushing machines. The Metso Group introduced two
African Review of Business and Technology - October 2012
new crushing machines at the event, namely the Lokotrack LT120 and Lokotrack LT120E. Both machines offer high capacity crushing, great mobility and use 20-30 per cent less fuel. Caterpillar’s Industry Marketing Manager Julien Roux said, “Caterpillar is a global company, but a few years ago we realised that we needed local access to our suppliers and customers. Johannesburg was the perfect place to host the Caterpillar Quarry Days”. He added, “With Barloworld we have been able to pull off a successful event where the main focus is not selling Caterpillar as the only option but to reassure our customers that with us, they are dealing with a company with specialised expertise in many different areas. What is really important to us is exchanging expertise in line with the best practises in the industry”. The mining industry plays a major role in the South African economy. South Africa depends to a large extent on energy production mainly from the mining industry, and therefore the largest source of carbon emissions. This year Quarry Days placed a special focus on energy efficient products. At the event, Caterpillar announced the opening of its brand new oil testing lab in South Africa, which is the biggest testing lab in the world after a facility in Beijing, and one of four labs Caterpillar has in operation around the world.
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S18 ATR Oct 2012 Solutions_Layout 1 20/09/2012 18:11 Page 90
SOLUTIONS R
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llaunches aunches n new ew p portable ortable sawmill sawmill
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NEW NEW C 2 200 0 0 - Circular Circular swing swing blade blade
On-farm timber processing technology
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New forestry technologies and services are maximising timber production by Kenyan farmers as well as increasing their woodlots profitability. With the decline in forest cover by over 12,600 hectares annually, farmers in the country as well as in East Africa have moved to fill in the gap by taking up agroforestry as a business. They are planting a wide range of trees vital for the production of timber, fuel wood and other products. Recent data from the Kenya Forest Service indicates that the current national forest cover stands at 5.9 per cent-far short of the recommended 10 per cent. Wood and timber production is vital for the realisation of Vision 2030, which the country hopes to attain in the next 18 years. Among the trees in demand are the fast growing Eucalyptus from South Africa, Grevillea robusta, Prunus africanas as sources of timber for domestic and export market. Recent data indicates that the country has at least 3.5mn acres of idle arable land that can be utilised for planting trees. But timber production from logs on the farm is bound to increase with emerging technology. The majority of farmers have been using power saws - which, in many cases, will need to be modified to improve quality and profits. “Even with increase farm forestry, the timber recovery rate has been low - about 27-30 per
New forestry technologies and services are maximising timber production and profitability in Kenya
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cent - due to the use of power saw-spitting, which has become common in rural Kenya,” observed Mr Njagi Munene, a Kenya Forest Research Institute (KEFRI) official at a recent farmers’ field day at Wambugu Farm in Nyeri County, Central Kenya. The recovery rate is worked out from the initial logs size compared to the overall timber yield. He says that only the most skilled power saw operator can produced quality timber. “The timber boards from most operators are undersize, oversize, very rough, wavy and tapered. It is quite costly to the tree producers, loggers and even the timber buyers who are forced to seek other services to make them usable,” noted Mr Munene, as he demonstrated the new KEFRI developed onfarm timber processor. Using a modified gauge attached to a power saw, KEFRI - the government body involved in forestry research - has developed a timber processor which minimises wastage achieving over 55 per cent recovery rate. “The new technology produces timber with smooth surfaces, proper sizes, improves recovery rate and improves safety of the operator,” said Mr Munene as he demonstrated the workings of the technology. Mwangi Mumero
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SkyVision. Your Link to Global Communications.
SkyVision is a leading global IP telecommunication service provider, offering solutions that combine satellite service platforms with KLJK FDSDFLW\ ðEUH RSWLF FRQQHFWLRQV At SkyV SkyVision, ision n, we make it our busines business ss to make sur sure e your bu business usiness is linked secur securely elyy and rreliably eliably at a all times.
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SOLUTIONS
Wood Nukor’s introduces the new C200 circular swing blade sawmill
I
ntegrated sawmilling, timber processing consultancy and remanufacturing firm Nukor has augmented its portable sawmill portfolio with the launch of its C200 circular swingblade sawmill. The cornerstone of the Nukor portable sawmill range is, without doubt, the Lucas Mill range it imports from Australia. The Lucas brand has attained legendary status across the world - the portability, accuracy, rugged toughness and range versatility of Lucas affording it brand stature that’s rivalled by few other portable milling names anywhere in the world. The circular swing blade head configuration - aligned on a four post, raised-frame aluminium tube girder support system allows the Lucas to fit over the log and cut in both a vertical and horizontal direction along the full length of the log. Primary benefit of the Lucas is its ability to process small to large size diameter logs from log to final dimensions without any need for secondary ripping or edging. Nukor’s next offering in its portable sawmill range is the US-manufactured Baker primary breakdown horizontal narrow bandsaw mill range; the introduction of narrow bandsaw capacity allowing Nukor’s customers to attain increased log optimisation through a smaller saw kerf. Right for the new economic realities The currently depressed global economy and dirge of smaller diameter log volumes flooding the marketplace have forced sawmillers to consider their options when considering improved sawmilling capacity. Instead of opting for largevolume sawmilling capacity when upgrading or starting mills, sawmillers now go for portable milling capacity - the emphasis being on retaining processing capacity at minimal cost. The advent of reliable, accurate and serious processing capacity now found in portable mills has hastened this process, with increasing emphasis on affordability and can-do ability in the portable milling sector. It’s at this juncture that Nukor’s selfmanufactured C200 circular swing-blade portable sawmill becomes relevant. It provides for all of the processing capacity, accuracy and flexibility delivered by the Lucas range but at a more affordable price. With C200 manufacturing, Nukor retains with the key characteristics that make the Lucas such a winner. It uses the same Kohler V-twin 22 kW (30hp) electric start petrol-driven power unit that’s run on the Lucas Mill 10” (254 mm diameter blade) unit, plus the Lucas gearbox that allows for the smooth transfer of power to the cutting head during both vertical and horizontal cutting. Nukor also supplies the C200 in an electric version.
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African Review of Business and Technology - October 2012
And, furthermore, Nukor has changed the four-post, raisedframe aluminium tube girder support system used on the Lucas by providing for a four-post, ground-based heavy duty steel rail support system on which the head runs to provide for the cutting action. The result is extreme accuracy and reliability at a reduced rate. A portable product, for accurate cutting The C200 is completely portable and can be loaded on the back of a bakkie/pick-up. It has a short set-up time and can cut logs up to 1.4m in diameter and 5m in length. Optional railing can be supplied to extend the processing length. Due to this machine having a circular sawblade, it has a very high cutting accuracy and a very smooth finish. Depending on site conditions, the machine can produce anywhere up to 10m3 of sawn lumber per day. The running costs on this machine, according to Nukor, are extremely low. The frame is a solid ridged structure, which enables better accuracy. Other key characteristics include: ● Suitable for indoor and outdoor use. ● Uses high pressure gas struts, which are tried and tested in the industry. ● Single person can operate the machine. ● Suitable for cutting all types of timber. ● Motor is fitted with an industrial air-filter. ● Durable and high ratio ratchet system for easy height adjustment. ● Riving knife for cleaner cuts and safety. ● Electric start. ● Repetitive ruler for easy and quick size adjustment. ● 215mm Max cut horizontally and vertically. ● Minimal wear parts. ● Petrol and Electric model available. ● The ground rail system can separate for easier transportation. ● Uses a five tungsten carbide tooth cutting blade for easier cutting. ● Rubber engine mounts are used to reduce engine vibration through the frame. ● Vertical vesconite guide. ● Shipping weight – 500kg. ● Sharpening set is optional. Contact Nukor at: Tel: +27 11 610 2000 Fax: +27 11 610 2020 Web site: www.nukor.co.za
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SOLUTIONS
Internet SkyVision expands to connect more South Africans SkyVision Networks South Africa, a subsidiary of SkyVision Global Networks - which provides Internet connectivity over satellite and fibre-optic networks - recently committed to a partnership agreement with telecommunications and infrastructure provider Broadlink, to bring reliable, secure, cost effective Virtual Private Network (VPN) and Internet connectivity services to businesses in South Africa. SkyVision Networks South Africa’s services via VSATs - very small aperture dishes for satellite communications - enhance Broadlink’s range of dedicated terrestrial and wireless communication solutions, by enabling Broadlink to offer end-to-end business connectivity to sites that cannot be served by a reliable terrestrial or wireless connection. With this addition, Broadlink now provides virtual private network (VPN) and Internet connectivity solutions all across Africa. Broadlink offers high quality, performance-guaranteed, end-to-end managed connections for the South African corporate market as well as for multinationals seeking African connectivity. By utilising SkyVision’s satellite services and its advanced connectivity infrastructure - its local hub and teleport - Broadlink delivers flexible and scalable solutions for businesses
looking to expand their communications requirements from Southern Africa into and around Africa. Mike Brown, Managing Director of Broadlink said, “Broadlink has made great strides in the South African business market. However, we have seen an increased demand - from our customers - for communication solutions catering to business sites and branches across our borders. By partnering with SkyVision, we can now accommodate their requirements for connectivity solutions across the African continent – allowing us to expand our reach exponentially.” “SkyVision showcased its professional abilities and demonstrated amazing flexibility, which allowed us to customise the service offering and suit it to meet the customer’s technical requirements and budget,”Andre Engelbrecht, Broadlink VSAT Services specialist, stated. Iftah Amit, SkyVision's Vice President of Sales commented, "This partnership aligns with our ongoing strategy to increase our high quality services reach to business customers in South Africa.” Visit www.skyvision.co.za and www.broadlink.co.za to learn more
African Review of Business and Technology - October 2012
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Inmarsat helps NGOs to control communications costs
At AidEx 2012, Inmarsat reinforces its commitment to the humanitarian aid sector with initiatives for its popular Tel: +27 82 837 2973 IsatPhone Pro mobile satellite handset www.shuttlescapetown.com and a new broadband service - BGAN Link - helping non-governmental organisations (NGOs) keep a tighter control of satellite communications costs. The Inmarsat IsatPhone Pro humanitarian package offers a reliable voice service with large bundles of minutes for a low monthly charge. It allows NGOs to take advantage of a dependable voice service in the field while benefitting from predictable monthly charges. Furthermore, BGAN Link empowers NGOs working on location for sustained periods of time with a high-volume usage broadband service for a fixed monthly price. The service comes in 5, 10 or 15GB packages, depending on a NGO’s data needs, allows access to office applications including e-mail, Internet and intranet access, and enables VPN access to corporate networks, wherever their operations are based. If the user exceeds their monthly allowance, they are simply charged for the additional usage at the in-bundle per-MB rate, or can have a free upgrade to the next data package. NGOs that require total cost control, for peace of mind, can select an option that
monitors daily usage cumulatively to ensure the monthly allowance is not exceeded. Commenting on the new initiatives, Inmarsat’s President of Enterprise business Ronald Spithout affirmed that the company is continually looking for ways to further Inmarsat’s IsatPhone Pro in improve the services use in the field its affords NGOs. “We have listened carefully to NGOs who have been telling us that affordability and predictability of pricing, alongside our unrivalled quality of service, is extremely important to them; we have responded with these new, predic tably-priced packages,” he said.
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African Review of Business and Technology - October 2012
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S18 ATR Oct 2012 Solutions_Layout 1 20/09/2012 18:11 Page 96
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