African Review September 2014

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

www.africanreview.com

September 2014

African Review of Business and Technology

P40

September 2014

Diesel power in Zambia

Volume 50 Number 2

P66

Sustainable

minerals

business www.africanreview.com

50 years Transport:

Construction:

Mining:

DCD’s Petrus Mulaudzi on rail freighting P34

Grinding and polishing concrete flooring P50

Innovations at Electra Mining P60

Serving business in Africa since 1964

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UP FRONT

Editor’s Note

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

www.africanreview.com

September 2014

fi i f i

P40

d h

Diesel power in Zambia

l b

T

l

P66

Sustainable

b

minerals

business 50 years

fi i

he business interests represented in this issue of African Review include, from pages 18 to 30, investment in shale gas in South Africa, and customer service operations in Sierra Leone and Côte d’Ivoire. Risk management for large corporate entities investing in Africa is also appraised on page 31. From page 32 to page 34, this issue covers air and sea freight business concerns, and rail freight technology. On pages 35 and 36, there is a text on packaging from a logistics perspective.

The power section, which runs from page 37 to page 47, includes features on generators utilised in Namibian mines, diesel units used for mining in Zambia, and power market privatisation in Nigeria. The construction sector is addressed between pages 48 and 58 with broad analysis of Africa’s construction markets, and articles on South Africa’s largest concrete floor polishing project, composite technology for cement, tools to use to access areas that are hard to reach and work in, and solutions on show recently at West Africa Building and Construction in Ghana. Mining industry is highlighted at Electra Mining Africa soon - and much of the equipment and services on show at this event are appraised between pages 60 and 71, with reports on technology for miners and investment in mining communities.

Transport:

Construction:

Mining:

DCD’s Petrus Mulaudzi on rail freighting P34

Grinding and polishing concrete flooring P50

Innovations at Electra Mining P60

Serving business in Africa since 1964

Main cover picture: BP Inset, bottom left: DCD Rolling Stock Inset, top right: Zest WEG Group

Andrew Croft, Editor

Contents

REGULARS 04 Agenda:

14 Bulletin:

Developments in African business and technology

72 Solutions:

Innovations in machinery and technology

The latest additions to product portfolios

P22 FEATURES 18 Business Shale gas investment in South Africa; stockholding for customer service; economic prospects in Sierra Leone and Côte d’Ivoire; and technology for banking and finance

31 Security Risk management for multinational enterprises investing in the continent

32 Transport How European regulations affect African air freight operations; lowering maritime fuel bills and emissions; and the continuing demand for industrial Funkey shunting locomotives

P42

35 Packaging A tried-and-trusted packaging system from an intralogistics specialist

37 Power Gensets for cranes in Namibia; diesel power for mining in Zambia; South Africa’s oil and gas potential; and power market privatisation in Nigeria

48 Construction Assessing Africa’s construction markets; a large South African concrete polishing project; composite cement technology; working with limited access; and tech on show in Ghana

60 Mining

Audit Bureau of Circulations Business Magazines

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

www.africanreview.com

Solutions and services at Electra Mining Africa; sustainable technologies and practices to manage the environment; a call for investment in mining communities; and generators for mines

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

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

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

UAE: Camilla Capece Tel: +971 4 448 9260 Fax: +971 4 448 9261 Email: camilla.capece@alaincharles.com UK: Steve Thomas Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Email: stephen.thomas@alaincharles.com USA: Michael Tomashefsky Tel: +1 203 226 2882 Fax: +1 203 226 7447 Email: michael.tomashefsky@alaincharles.com

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: tanmay.mishra@alaincharles.com Nigeria: Bola Olowo Tel: +234 80 34349299 Email: bola.olowo@alaincharles.com

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

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

ISSN: 0954 6782 Serving the world of business

African Review of Business and Technology - September 2014

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NEWS

Agenda / North Morocco hosts forum on financing The Ninth African Development Forum, held in Marrakech, Morocco, from 12 to 16 October 2014, is themed ‘Innovative financing for Africa's transformation’. The Forum is the flagship event of the United Nations Economic Commission for Africa (ECA) and it is the first time it will be held outside Addis Ababa, Ethiopia, where the ECA is headquartered. The Forum brings together experts to discuss and thrash out some of Africa’s most pressing issues. There is strong private sector participation and so it provides a unique platform for business and political leaders to come up with some concrete solutions to some critical issues.

More software spending by MENA banking and securities firms

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anking and securities companies in the Middle East and North Africa (MENA) will spend approximately US$13.2bn on IT products and services in 2014, an increase of 2.7 per cent over 2013 revenue of nearly US$12.8bn, according to Gartner, Inc. This forecast includes spending by banking organisations on IT services, software, data centre technologies, devices and telecom services.

Telecom services will be the largest segment in overall IT spending in the banking and securities market at US$5.7bn in 2014. This segment is forecast to increase 0.6 per cent compared to 2013.

Software and IT services are the fastest growing segments with 9.2 and 8.4 per cent increases in 2014, largely due to the expansion

strategies of banks across the region and to modernization and replacement projects of the back-office that require a lot of consulting and system integration. Outsourcing is also picking up, as it’s one of the fastest growing segments within IT services.

“The outsourcing of IT, as well as business processes, have become more common across some Gulf countries. This market is still far from mature, but it is already a good start and miles ahead compared to a decade ago,” said Vittorio D’Orazio, research director at Gartner.

“Software spending is being driven by the replacement trend of back-office systems, especially from the larger banks, while newer banks are being created from the scratch which opens a lot of new opportunities for IT vendors.“

Privacy extended to Nokia X users AnchorFree, which specialises in consumer security, privacy and Internet freedom, has xtended availability of its Hotspot Shield privacy app to Nokia X devices in the Middle East and North Africa.

“Privacy and security are global issues and as more of the world’s population comes online, especially through the use of mobile devices, keeping information safe needs to be a top priority,” said David Gorodyansky, founder and CEO of AnchorFree. “By offering Hotspot Shield on Nokia X devices in MENA, we can provide a safe way for consumers to

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With Hotspot Shield, Nokia X users can access everything they need online, safely, while protecting their privacy and securing Internet communications

access everything they need online, while protecting their privacy and securing Internet communications.”

With more than 250mnglobal downloads, Hotspot Shield has seen triple-digit mobile growth in the past year and has been installed by nearly 32mn smartphone users.

African Review of Business and Technology - September 2014

Finance for Egyptian urban development

I

FC and the European Bank for Reconstruction and Development (EBRD), are providing loans of $60 million each for a benchmark urban development project in West Cairo that is expected to create more than 2,400 new jobs. The loans will be complemented by a US$20mn loan from the Commercial International Bank (CIB), a local Egyptian bank.

The funds will be used for the completion of the Mall of Arabia shopping center, one of Egypt’s largest retail complexes, in 6th of October City, a strategic new urban community developed to ease overcrowding in Cairo.

The first phase of the project opened in 2011. The second phase, due to open in September 2015, will expand the center’s total leasable area by 58 per cent, taking it to 174,000 square metres, and adding more than 200 new retail brands.

The project’s completion is expected to push the total number of direct and indirect jobs created by the center to 6,300, from the current figure of 3,880. The majority of jobs will be earmarked for young people, helping to address the high level of youth unemployment in Egypt.

More than 1,200 temporary jobs are also expected to be created during the construction process.

The Mall of Arabia is owned by Egyptian Centers for Real Estate Development, which is owned equally by three brothers from the Al-Hokair family in the Kingdom of Saudi Arabia. The three also own Saudi FAS Holding, a leading Saudi Arabian group focusing mainly on the retail and real estate sectors.

Muhanad Awad, CEO of the investment and financial arm of Fawaz Alhoakir group, said, “This is our first mall outside Saudi Arabia and, as such, a very significant project for us. We believe that Egypt has great potential and we are happy to be working with IFC, EBRD and CIB to help develop and modernize the retail sector there.” www.africanreview.com

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NEWS

Agenda / East Danone’s dairy deal with Brookside International food group Danone has acquired a 40 per cent interest in the holding company of East African dairy products firm Brookside. With 2013 revenues of around €130mn (US$173.6mn), Established in Kenya in 1993, Brookside operates a unique distribution platform enabling a daily access to over 200,000 outlets.

The company manages the largest milk collection network in East Africa, with 140,000 farmers in the region.

By uniting Danone’s international expertise in fresh dairy products with Brookside’s regional expertise and robust supply chain, the partnership will enable Brookside’s growth acceleration by expanding its product portfolio and strengthening its geographical presence in key markets in the East African region, including Uganda and Tanzania.

This partnership is expected to enhance significantly the platform Danone is currently building in Africa.

Air Mauritius orders six A350 XWB aircraft

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ir Mauritius has decided to expand and modernise its long-haul fleet with a Memorandum of Understanding for four A350-900 aircraft from Airbus. The agreement was announced during the Farnborough International Airshow 2014.

The airline has also announced that it is leasing two more A350-900s. The 6 A350 XWB will be operated on European, Asian and Australian routes.

Air Mauritius currently operates ten Airbus aircraft including two A330-200s and two A319s.

New EcoCash card in Zimbabwe

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conet’s mobile money service, EcoCash, has reached agreement with MasterCard on an initiative that will help reduce cash dependence and increase financial inclusion through the provision of electronic payments in Zimbabwe. The collaboration will result in more than three million MasterCard debit cards being issued to mobile money provider EcoCash’s customers in the next five years.

This is the first time that physical MasterCard debit cards are available to people using mobile money services in Africa, and is the largest rollout of secure EMV Chip and PIN payment cards in Zimbabwe to date.

“The adoption of electronic payments is critical to Zimbabwe’s economic development. Reducing dependency on cash while increasing financial inclusion benefits the whole country including the government, industry sectors like tourism and retail, merchants and citizens,” said Douglas Mboweni, CEO of Econet.

Today, 40 per cent of Zimbabweans are financially excluded, and another 22 per cent rely on informal financial products or services. EcoCash has provided a means for unbanked and under-banked citizens to participate in the formal economy and has reduced the demand placed on banks for scarce and costly currency.

KCB and MCB offer commuter card The Modern Coast Card launched recently

by Kenya Commercial Bank (KCB) and Modern Coast Bus enables commuters travelling across East Africa to pay for their tickets electronically. Besides being used for transit, consumers can use the MasterCard-branded card with contactless technology to pay for goods at millions of Point of Sale terminals in Kenya, and in over 210 countries around the world. Commuters can also enjoy

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other banking services from KCB to complement their transport usage such as mobile banking, agency banking and credit card facilities.

KCB Group chief financial officer Collins Otiwu said that this partnership is part of the bank’s long-term strategy of supporting the Kenyan government’s financial inclusion agenda and creating a seamless transition from cash to electronic payments in the transport sector.

African Review of Business and Technology - September 2014

Air Mauritius has decided to expand and modernise its long-haul fleet with four A350-900 aircraft

“The A350 XWB combined with the A330 suits Air Mauritius’ entire long-range network and will be key to modernising our fleet while significantly reducing our operational costs and environmental footprint. It is the game-changer we were looking for,” said Andries Viljoen, Air Mauritius’ chief executive officer. “These highly comfortable and fuel-efficient aircraft will fit nicely into our existing Airbus fleet, and our passengers will be able to enjoy seamless service and comfort levels throughout our entire product range.”

The A350 XWB is Airbus’ all-new midsize long-range product line comprising three versions offering from 276 to 369 seats. The A350 XWB stands out in its class thanks to its combination of passenger comfort, technological innovation and its unique industrial process. Built hand-inhand with our customers, the A350 XWB sets new standards in terms of passenger experience, operational efficiency and cost-effectiveness. At the end of June 2014, the A350 XWB had won 742 orders from 38 customers worldwide www.africanreview.com

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NEWS

Agenda / South Zambeef treats South Americans to the future of farming “Zambia is the future of African agriculture” – that’s the message from a group of visiting South American commercial farmers who toured operations at Zambeef Products’ Huntley Farm in Chisamba recently. In mid-August, Zambeef hosted 16 farmers from Argentina and Uruquay, who inspected the company’s meat processing plant, feedlot and cropping operations as part of a wider tour of South Africa and Zambia.

“We are impressed with Zambeef. It is very good,” said group leader Prof Enrique Erize. “We think that Africa is the future of agriculture in the world; and Zambia is the future inside Africa.”

Prof Erize added, “We think that the future

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is Zambia because of the location, because of the kind of soil, and because of the rain.”

Zambia is home to 40 per cent of the water resources in Southern Africa. Globally, 80 per cent of water is used for agriculture.

The South American visitors - who farm a variety of crops such as wheat, soybeans and maize in their home counties – were particularly interested to hear about Zambeef’s cropping operations.

Zambeef does not use genetically modified (GMO) seed in its soya and maize production or indeed any other grain crop, explained Huntley Farm General Manager Francis Mondomona. Despite our colleagues in advanced agricultural economies like Argentina and Brazil that

African Review of Business and Technology - September 2014

Zambeef hosted 16 farmers from Argentina and Uruquay

have GMO soya and maize, our yields per hectare are still very competitive with nonGMO seed.

He emphasised that Zambia is the only country in the region with a wheat surplus, and that Zambeef is the largest single producer of wheat and soybeans in the country.

www.africanreview.com

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NEWS

Agenda / South Castell ensures safety at Zambian power station

I

when operating or maintaining ndustrial safety specialist machinery and equipment, to Castell has provided several K prevent human error and Locks and key exchanges boxes safeguard workers’ access to to the Kariba hydropower dangerous areas. station North Bank extension Christy Zhang, senior sales project in Zambia. Castell’s interlocks, installed in Zambia’s manager at Castell China, said, Kariba hydropower station “It is an honour for Castell to more than 50 years ago, are still provide safety interlocks to the performing well today. In the Kariba North Bank extension early 1960s, Castell provided project. The client’s trust in us interlocks to the power station; stems from the long-term more than half a century later, performance of our interlocks.”

Castell’s interlocks, installed in Zambia’s Kariba hydropower station more than 50 years the interlocks are still The Kariba hydropower ago, are still performing well today station is located in the middle performing well. When the of the Zambezi River, 125 miles from Lusaka, Zambia’s capital. station was due to add a north bank extension, project owner The extension project has added two 180MW generator units, Zambia Electricity Supply Corporation (ZESCO) recommended taking the total capacity to 1,080MW and making Kariba the Castell to the project contractor Sinohydro.

Castell’s interlocks force workers to follow a predetermined process largest power station in Zambia.

www.africanreview.com

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NEWS

Agenda / West More natural gas from Nigeria productivity, which remains low, has been There is no disguising the challenges that growing recently and now contributes more Nigeria is facing. The world is well aware of to GDP growth than does the expanding the concerns around terrorism and Nigeria’s population. ongoing struggle with poverty. However, “What people overlook is Nigeria’s there is another side to the Nigeria story that extraordinary advantages for future growth, has been overshadowed both by the recent including a large consumer headlines and the persistence of market, a strategic geographic outdated beliefs and location, and a young and highly assumptions about Nigeria’s entrepreneurial population,” said economy. A new report from the Reinaldo Fiorini, director and McKinsey Global Institute location manager of McKinsey’s (MGI) and McKinsey’s Nigeria Lagos office. The results of office, 'Nigeria’s renewal: Nigeria’s progress, however, have Delivering inclusive growth in not been spread evenly across its Africa’s largest economy', economy. More than 40 per cent examines the country’s of Nigerians live below the economic potential and finds nation’s official poverty line and that with the right reforms and 130mn (74 per cent of the investments, it can become one Reinaldo Fiorini, director and location manager of McKinsey’s population) live below the MGI of the world’s leading Lagos office Empowerment Line - a level of economies by 2030. income and access to vital services that Since 1999, Nigeria has proven to be both provides a decent standard of living. politically and economically stable and new Chief reasons for Nigeria’s persistent data released this year show that it is now the poverty include low farm productivity due to largest economy in Africa, in addition to limited access to fertiliser and mechanised being the most populous. The new data also tools, and inefficient markets. At the same show that Nigeria’s economy is far more diverse than previously understood. While the time, urbanisation has not raised incomes the way it has in other developing nation’s rich oil reserves remain a critical economies. This is because formal job source of government income and exports, creation and skill development in Nigeria’s the entire resources sector today is only 14 cities have been weak, making productivity per cent of GDP. Agriculture and trade are in urban sectors such as manufacturing larger and faster-growing. It is also not lower than in agriculture. generally recognised that Nigerian

Endeavour Mining gets more gold Canadian-based gold mining company Endeavour Mining Corporation has reported record gold production of 122,517 ounces resulting in revenue of US$153.4mn, which generated an all-in sustaining margin of US$32.3mn in Q2 2014. Endeavour is benefitting from low cost production from the Agbaou gold mine located approximately 200 km northwest of Abidjan in Côte d'Ivoire, the transition to owner mining at Tabakoto in southwestern Mali,

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and the impact of ongoing optimisation programmes. The All In Sustaining Costs (AISC) of US$1,021/oz during Q2 2014 has decreased significantly from US$1,115/oz in Q2 2013 and also improved compared to US$1,059/oz in Q1 2014.

Neil Woodyer, Endeavour CEO, stated, “With gold production for the first half of 2014 of 228,000 ounces we now expect to achieve the top end of the guidance range of 400,000 to 440,000 ounces for the full year.”

African Review of Business and Technology - September 2014

Belkom Industrie gains award in Burkina Faso

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nmesol has followed recent acknowledgement of its work with the company’s generator set distributor in Burkina Faso, Belkom Industrie - and, in particular, Belkom Industrie’s general administrator, Mr Karim A Kombelemsigri with ongoing support for the development of industrial projects for both the public and private sectors in the country.

Belkom Industrie has been awarded with the prestigious International Star for Leadership in Quality (ISLQ), the highest recognition a company, organisation or institution can receive in the fields of quality and excellence. The annual ISLQ Awards are given by Business Initiative Directions (BID), the largest private organisation in the world which gives an international award to the leading companies notable for being a model of leadership, innovation and excellence.

The criteria which the organisation uses to award the prize is based on the QC100 Total Quality Management model, implemented in around 100 countries.

The award ceremony took place in Paris after a vote by companies from different countries and sectors. In accordance with the criteria in the aforementioned QC100 TQM model, voters considered the following: client satisfaction, communication, information and analysis strategies, leadership, decision planning, human resources, continuous training, processes and production, ISO 900 and financial results, among other aspects.

It is worth noting that these awards are traditionally held within the framework of a convention which unites presidents and directors of companies from around the world with the aim of exchanging ideas and enriching their perspectives on how to improve company management as well as to open and promote business opportunities among the award winners and their companies. www.africanreview.com

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NEWS

Events / 2014 October 7-8

WaCa Mining Accra, Ghana www.magenta-global.com.sg 8-10

Zimbabwe Mining and Infrastructure Indaba Harare, Zimbabwe zimminingindaba.com 7-9

Trans Africa Johannesburg, South Africa www.transafricaexpo.co.za 13-17

AfriMold Johannesburg, South Africa www.afrimold.co.za 15-17

East Africa Oil & Gas Nairobi, Kenya www.eaogs.com

16-19

ConMach Nigeria Lagos, Nigeria www.conmachnigeria.com 21-22

MENA Mining

November 3-7

Africa Oil Week

Dubai, UAE www.terrapinn.com

Cape Town, South Africa www.petro21.com

22-23

4-6

East Africa ICT Summit

WACEE

Nairobi, Kenya aitecafrica.com

Accra, Ghana wacee.net

22-24

17-19

Solar Indaba

Process Mineralogy

Johannesburg, South Africa www.solarindaba.com

Cape Town, South Africa www.min-eng.com

23-24

18-19

Intermodal Africa South

WAPIC

Durban, South Africa www.transportevents.com

Lagos, Nigeria www.wapicforum.com

28-30

20-21

Power Nigeria

Precious Metals/Nickel Processing

Lagos, Nigeria www.power-nigeria.com

Cape Town, South Africa www.min-eng.com

Strategic business partnerships A significant milestone was achieved when the Johannesburg Chamber of Commerce and Industry (JCCI) signed a memorandum of understanding (MOU) with China Technology Investment & Trade (CTIT) as a result of discussions at SAITEX aimed at boosting trade opportunities between the two countries.

“The MOU will support a bilateral agreement by engaging business activities in imports, exports and creating partnerships,” said Alexander Potgieter, chairman of the JCCI’s Midrand branch. “This agreement was possible due to the close co-operation of CTIT and event organiser Exhibition Management Services,” commented Li Zhixue , president of CTIT. “SAITEX gets better every year, and we are planning to bring more hi-tech companies to the show next year.”

Much business was done. Zhauns Business Opportunity and Engineering Group concluded deals of over R5mn (US$472,000) from leads generated through the show. Brazilian company Schulz exhibited compressors, electric motors and generators to many new customers at SAITEX and signed deals worth over R1mn (US$95,000). Gift Wrap Trading supplies diverse products including writing instruments, corporate clothing, leather products, bonsai trees, customised hampers and hi-tech products. Zulu Rum owner Clinton Wyness says he made about 10 solid contacts and is in discussions with three companies for the distribution of Zulu Rum in Gauteng and India. And repeat exhibitor Corrie van der Colff, owner of Rhebokskraal Olive Estate, said his stand generated 60 leads at the show - which he is still following up.

The business at SAITEX

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frica’s biggest general trade show, the Southern African International Trade Exhibition (SAITEX) has celebrated its 21st year of boosting business opportunities across the continent, giving more than 850 companies from 34 countries a stellar opportunity to showcase products and services to thousands of trade visitors. The show again lived up to its reputation for linking like-minded business owners, expanding networking circles, delivering qualified leads and successful business deals.

Held in Johannesburg, South Africa, in June, the 2014 edition of SAITEX saw over 14 500 visitors and delegates from 44 countries.

“It is truly gratifying to see new countries involved in SAITEX and raising the international profile of the exhibition,” said show organiser John Thomson of Exhibition Management Services (www.exhibitionsafrica.com).

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African Review of Business and Technology - September 2014

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NEWS

Bulletin / Machinery New CMH dealership for UD Trucks in KZN

region - initially, for Apple smartphones and tablets, with an Android app to follow; the

A new dealership opened in KwaZulu-Natal,

app enables access to details of all used

South Africa, by investment holding company

equipment that is available, the contact

Combined Motor Holdings (CMH),

details (email or phone) in respect of each

represents a R45mn (US$4.3mn) investment

unit, a full dealer locator search function for

in UD Trucks, offering a proverbial one-stop-

participating Volvo CE Used Equipment

shop with complete sales, service, parts and

Dealers in EMEA geographies, and a specific

finance support; “We aim to provide customer

‘Volvo Approved Used’ search function.

satisfaction in all aspects of business and environment for all our employees, as well as

Barloworld Namibia selects Eazi for support equipment

develop a trustworthy and strong relationship

South African-based equipment firm JLG and

with both our shareholders and suppliers,”

Magni aerial work platform and telehandler

said Ron Byng, dealer principal of CMH

distributor Eazi Sales & Service have sold a

Commercial UD Trucks.

JLG 800-AJ 26-metre working height rough

create a pleasant and challenging working

Commissioning of Swakop Uranium’s newly purchased equipment is expected to be complete by December 2014 - with Barloworld Namibia retaining all support equipment used for machine assembly, and administering their future use from its technical operations division in Namibia

terrain articulating boom lift and a JLG 260-

equipment being assembled - three hydraulic

MRT 10-metre working height rough terrain

60/60 excavators, two MD 6640 electric drills,

scissor lift to Barloworld Namibia, to be used

three electric rope shovels, and six MD 6290

Volvo Construction Equipment now offers

as support equipment in assembling and

mechanical drills - are key to the new

an application throughout its EMEA (Europe –

maintaining 14 units of some of the world’s

production fleet of equipment Swakop

Middle East – Africa) sales region, designed to

largest mining machinery - a few of which

Uranium has invested in, for what is said to

give customers instant and easy access to the

weigh in excess of half a million tonnes - the

become the world’s second largest uranium

entire stock of Volvo Used Equipment in the

heights topping 26 metres; the Caterpillar

mine, Husab Mine in Namibia.

Volvo’s used equipment app, for Apple devices

Pontchâteau plant produces 20,000th Bobcat telehandler

B

obcat’s plant in Pontchâteau, in the Loire

times experienced towards the end of the last

Atlantique region of France, has recently

decade, the Pontchâteau plant continues to be a

manufactured its 20,000th Bobcat

successful production facility for Bobcat.

telehandler. The Pontchâteau plant produces

Laurent Gicquel commented, “We foresee

all the Bobcat telehandlers for the world

growth of around 15 per cent in sales and 17 per

market, with telehandler design,

cent in turnover this year compared to 2013.

development, production and sales

“This growth is largely due to good results

organisations all based at the plant.

from the agricultural sector, which represents

During an official ceremony attended by the

some 49 per cent of Bobcat telehandler sales.

site’s 200 strong workforce, Xavier Larroque,

The remaining 51 per cent of our sales come

telehandler products manager and Laurent

from the rental and construction sectors and

Gicquel, Pontchâteau plant manager, presented

general industry.”

the keys of the 20,000th machine to roll off the

To underline the optimism felt by Bobcat

production line (a new Bobcat T40180 model) to

management, various investments are

its purchaser, the Manuco dealership from

planned for the Pontchâteau site in 2014 to

Rouen in north-western France. The ceremony provided Bobcat management with an opportunity to emphasise how, after the difficult

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boost production and take advantage of the (Left to right) Laurent Gicquel, Mickael Coutard and Michel Coutard of Manuco, Benoit Pion, Bobcat District Manager, Northern France and Xavier Larroque

African Review of Business and Technology - September 2014

strong demand for Bobcat’s French-made telehandlers.

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NEWS

Bulletin / Technology RT Systems to distribute Nlyte product line in SA Nlyte Software, which is focused on the management and

Presenting with iPads

optimisation of data centres, is broadening the availability of its award-

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winning data centre infrastructure management (DCIM) software in

impressed visitors at the Hannover Fair, the world's most significant

Sub Saharan Africa by adding RT Systems in South Africa to its

industrial trade show, with its power plant solutions and gas engines, but

growing list of worldwide distributors; “The Nlyte solution is ideal for all

also created a sensation with a new exhibition and sales app. For one, the

companies who are searching for ways to cut costs by simplifying the

iPad application, especially developed for MWM, offers quick qualitative

complexity of their data centres’ IT environments,” said managing

lead tracking directly at the trade show.

director for RT Systems, Richard van der Heijden.

Moreover, the MWM sales representatives can

he world is in upheaval, the markets are in flux – and along with them the requirements for a successful sales approach. MWM not only

visually support their presentations of products

Limelight Networks delivers for StreamOn’s digital radio customers Digital content delivery firm Limelight Networks has deployed its

and services with the help of the app. Now complex subject matter can be illustrated better with greater impact.

Orchestrate platform with StreamOn, which provides radio broadcasters with the tools and technology to grow online audiences

Exhibition and sales app for the highest quality standards

through social media, enabling customers to stream audio broadcasts

This tool helps MWM to fulfill its high quality standards when

reliably with low latency on StreamOn’s servers; StreamOn serves a

approaching customers, while at the same time responding to customer

growing customer base of over 300 radio stations in the Americas,

needs in a more targeted way.

Africa, and the southern part of the Pacific Ocean.

"Customisable sales talks allow us to present trade show innovations and highlights on all aspects of decentralised power production in the proper spotlight. In addition, the tool enables the evaluation and analysis of discussions in post-show follow-up, thus helping us to continuously improve our trade show presentation,” said Thoralf Lemke, head of marketing.

Visual assistance for consultative topics and sales material Now the MWM sales employees can't put down their iPads either: "Sales colleagues were very curious as to whether the sophisticated subject matter surrounding our products and services could in fact be conveyed with the new app. After the successful field trial, they are excited about this solution. Thanks to the superb visual presentation, the application makes the sales talk with the customer easier. In addition, the sales representative hardly requires any time for follow-up, as the lead details are directly and quickly acquired and emails with all the necessary information are sent out to the customer while the discussion is still in progress. This is a way of gaining an edge over our competitors when approaching the customer. A truly well-designed and, above all, useful tool,” explained Christian Wurst, head of sales for Germany.

Behind the new sales app is the Heidelberg company insinno GmbH, which offers this application with various user options: not only for trade shows but also for daily use in sales talks and consultations. Where required, the app can even be adapted to individual customer requirements.

"In MWM we have a very sophisticated customer with additional requirements for the tool, above and beyond the standard features,” said Sven Kummert, managing director of insinno GmbH.

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African Review of Business and Technology - September 2014

www.africanreview.com

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WEB SELECTION

African Review/ On the Web

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

Bollore and Pan African Minerals sign MoU to develop railway project French investment group Bollore and Pan African Minerals have signed a memorandum of understanding (MoU) to develop a US$895mn railway The rehabilitation of the Abidjan-Kaya railway line will allow easy shipment of project linking Côte d'Ivoire manganese ore (Photo: Darryl Smith) and Burkina Faso.

The railway line will connect Côte d’Ivoire’s port Abidjan to Tambao in Burkina Faso where Pan African Minerals is developing a manganese mine with an investment of US$1bn. The Tambao mine is among the largest manganese mines in the world, with a targeted capacity of three million tonnes per year. africanreview.com/transport-a-logistics/rail/

DHL Global Forwarding transports construction machinery to Ghana Air and freight company DHL Global Forwarding has signed a contract with Germany’s GP Günter Papenburg AG to transport its construction machinery to Ghana from Germany.

Officials at DHL Global Forwarding said that 125 pieces of machinery and equipment including 15 bulldozers, 20 loaders, 10 excavators, 60 motor The machinery would be utilised in graders, 20 tippers and spare infrastructure projects in Ghana parts have been transported from GP Günter Papenburg AG’s Nordhausen unit to Ghana. africanreview.com/construction-a-mining/machinery/

Standard Bank Group to increase investments in ‘Power Africa’ initiative Standard Bank Group will accelerate its investments in the ‘Power Africa’ initiative over the next five years.

Sim Tshabalala, chief executive of Standard Bank Group, said the bank would “strive to arrange or underwrite at least half of the debt required for these projects”. www.africanreview.com

Officials at the bank said they expected more than US$1bn in commercial projects to be realised across the six ‘Power Africa’ partner countries by 2018, and US$5bn worth projects from the rest of sub-Saharan Africa. africanreview.com/energy-apower/power-generation/ African Review of Business and Technology - September 2014

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BUSINESS

Finance

Investing in shale gas South Africa remains a relatively unexplored domain for natural gas but once material oil and gas reserves are discovered, the country will be a game changer

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here is much scepticism in South Africa surrounding the existence of huge supplies of natural gas,” observed Simon Ashby Rudd, global head of oil and gas investment banking at Standard Bank. “Since the 1940s, geologists have been looking for significant oil and gas reserves both, on and offshore, with little luck. However, news of success in neighbouring countries like Angola, Namibia and Mozambique has changed that.”

Whilst previous attempts have failed due to the use of outdated technology, the prospects are better now with the arrival of major players such as Total, Exxon and Shell, eager to explore South Africa’s offshore oil and onshore shale gas reserves.

Does South Africa have what it takes?

For any country wishing to realise its ambition of gas self-sufficiency, let alone exports, a number of conditions have to be met. Firstly, there has to be a sufficiently sized domestic market unencumbered by price controls and a favourable business environment underpinned by an acceptable legal, fiscal and regulatory framework in order to encourage firms to undertake risky and expensive investments.

“Luckily, South Africa has a market for such development to take place as much of the necessary requirements are already in place,” observed Rudd. However, there is much more to be done, including updating the 2002 Mineral and Petroleum Resources Development Act, in order to make it suitable for largescale exploration and production. “To be clear, we supported changes to the legislation that were not incorporated in the February legislation but we expect this to be amended after the elections to include them so I would take out the reference to the date,” he added.

Getting the gas to market However, if gas is discovered in significant quantities, upgrading the existing grid in addition to investing in new gas power stations, costing around US$1,000 per kilowatt of capacity, would be needed. In addition, South Africa lacks a national gas grid network. The only area with a major gas pipeline network is Johannesburg, which is linked to Mozambican gas fields. There

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Current exploration activities in South Africa

are two strategies being proposed to deliver new gas to South Africa’s major markets. The first is to construct a gas pipeline network linking major gas fields to power stations and other major industrial users located in major cities. The second is to convert the gas into electricity in newly built gas power stations, located as close to the gas fields as possible to feed into the country’s national power grid (See Figure 2) The country imports around 127 bcf of gas per year and produces only 39 bcf to supply and power Sasol’s gas-to-liquids plant at Mossel Bay. According to Rudd, ”It is likely that if gas is found, power stations will be built close to gas fields with the resultant energy distributed through the grid to customers.”

Furthermore, Rudd observes, “Unlike most African countries, South Africa has a welldeveloped financial, industrial, infrastructural and educational base which can support the scale of economic development required to develop oil and gas fields in South Africa and sub-Saharan Africa.” In addition, South Africa has some of Africa’s leading research and engineering universities, equipping the country with an educated work force to provide and train staff. He adds, “The oilfield

African Review of Business and Technology - September 2014

service sector is getting bigger every day with companies like Halliburton setting up regional offices in Johannesburg in recent months.”

Rudd added, “Standard Bank is South Africa’s biggest bank and fully capable to provide all the financial services that Africa’s growing oil and gas industry needs to facilitate investment and trade finance”.

Is there a market for gas?

“There is a growing market for gas in South Africa, mainly for power generation and industrial purposes such as turning gas into petroleum-derived products such as petrol, plastic, feedstocks and fertiliser,” explained Rudd. As a result, the demand for power is expected to increase from 212bn kWh in 2014 to over 420bn kWh by 2030. According to the National Development Plan, the private sector power producers are expected to increase their market share from 10 per cent today to 30 per cent by 2013.

Currently Eskom, the state power producer, provides 95 per cent of power needs. Today 90 per cent of South Africa’s power comes from coal and it is envisaged that by 2030 this should fall to 60 per cent. However, as Rudd notes, “The www.africanreview.com

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Finance power sector is ageing, and it needs to be replaced if we are going to meet future energy needs and cut carbon emissions.” South Africa’s investment in two major base-load long coalfired power plants at Medupi and Kusile, with phase one due to come on line in 2015, is likely to be only a short-term fix.

Is shale gas the answer?

“Exploiting gas from the Karoo Desert is seen as part of the solution (to meet energy needs at an affordable price) and is very important for South Africa,” noted Rudd. It is envisaged that shale gas would be flowing into the grid by 2025. Rudd predicts that “Preliminary studies indicate that the infrastructure build and gas development can be achieved at prices that are more than competitive with other new build electricity alternatives such as coal or nuclear.”

The Karoo, “the land of great thirst” In 2013, the US Energy Information Agency estimated that South Africa holds at least 390 tcf of technically recoverable shale gas resources located in the remote Karoo desert.

An earlier study in 2012, by Shell noted that, if just 10 per cent of the country’s estimated shale gas reserves were exploited, this would provide South Africa with 400 years’ worth of

www.africanreview.com

BUSINESS

licence covering more than 95,000 sq km in the Karoo desert. Rudd said, “We expect increasing activity in the Karoo basin over the next two years to demonstrate the viability of the region.”

South Africa’s National High Voltage Power Grid

energy and create sufficient jobs to make serious inroads into the country’s current unemployment rate of 25 per cent. However, there are a series of environmental and logistical challenges facing investors eager to exploit the shale gas reserves of the Karoo in this arid and remote region of the country, stated a report by PennEnergy Research New Shale Gas Countries.

Yet, Shell has applied for an exploration

Offshore In contrast to many countries in Africa, South Africa’s offshore coast has been underexplored. Yet, significant hydrocarbon billion barrel structures have been found below the seabed, because of the usage of the latest surveying technology, observed Rudd.

Assuming there is significant rig availability, 2014 is expected to be a good season to kickstart serious exploration activity. Total has already announced it expects to spud its first exploration well in deep-water block 11B/12B offshore South Africa in Q3 2014. If early wells find commercial quantities of hydrocarbons, it is likely to set off a race to build the domestic oil and gas business in South Africa. ■ Footnotes: http://www.esi-africa.com/south-africa-facesgap-in-electricity-supply-in-2014/ Nicholas Newman. (2014). New Shale Gas Countries. 1st ed. Oxford: PennEnergy Research. http://www.offshore-mag.com/regionalreports/africa.html

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BUSINESS

Customer Service

Revenue gains through sales and stockholding How revenues and margins are complemented with high levels of after-sales support, backed by comprehensive stockholding of accessories and spares

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pecialist drive engineering company SEW-Eurodrive is able to ensure the most competitive turnaround times, while maintaining the highest levels of aftersales support, thanks to its comprehensive stockholding of accessories and spares. SEW general manager of operations Raymond Obermeyer has noted that stockholding and spares form an important part of the company’s business strategy.

“It contributes a significant amount to our business, as we pride ourselves on the ability to offer availability of spares and accessories as part of our after-sales support on a 24/7 basis,” he said.

Obermeyer revealed that there is a constant demand for accessories and spares, with some customers ordering critical spares ahead of time in order to have them available when they are needed. There are numerous accessories that are available to customers through SEW, including; cooling systems, condition monitoring equipment, maintenance operating manuals, and selection and software design.

SEW boasts a stockholding of 80 per cent of the stock items that the company sells at any given time. Obermeyer explains that if the required part is available from any of the company’s five national branches, it can be delivered to the customer within 24 hours.

"If the spares or accessories are not locally available, we can source them from our global network within days. SEW keeps a large inventory of stock nationally, and we are closer to the customer due to our branch network,” he added.

Industrial challenges According to Obermeyer, cost-based purchasing is a challenge in local markets.

“As times are reasonably tough in the industry at the moment, businesses are generally purchasing systems that are cheapest at face value, without taking total cost of ownership into mind."

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investment when focusing on the longterm,” he concluded.

Raymond Obermeyer, general manager of operations, SEW

A knock-on effect of this trend is that the market is also expecting suppliers to provide longer warranty periods. "Instead of the customer spending money on condition monitoring, the supplier is having to look after the equipment in the plants. This has led to SEW investing in a complete drive service (CDS), part of which forms condition monitoring.”

Obermeyer stated that there are two types of customers in the local market, namely those who operate the equipment until it needs replacing, and those who make use of conditioning monitoring equipment and the benefits that it provides.

“There are several reasons for the different types of markets. Firstly, there is a lack of skills in the country, and people do not know how best to look after the equipment. Then, there is the financial implication of maintaining equipment, as condition monitoring is expensive.

“However, investing in the maintenance of the equipment results in a better return on

African Review of Business and Technology - September 2014

Market growth SEW has achieved continued and measurable success across Africa, by intensifying its focus on growing business in the continent. In total, the company now boasts a presence in over 46 countries. In South Africa, the company has 220 employees and four assembly plants in Johannesburg, Nelspruit, Cape Town and Pinetown - with a dedicated service plant in Port Elizabeth. The management of supply to and support for customers has been critical to this growth. A fundamental factor to market growth has also been the formation of an African strategy team in 2012, which identified various key areas within Africa and led a restructure of the business around clusters with cluster managers to ensure a focused approach in specific regions. This strategy aligned with the company’s credo of getting closer to the customer to its corporate aim of delivering world-class service locally, in market.

Southern Africa has been particularly successful for the company. Sales manager Rob Green, who manages its exports division from Johannesburg, has said that business in Madagascar and Mauritius has been an important contributor to the company’s success in recent years, due to investment in sugar and mining sectors. He added, “Another region performing well for us is Namibia, where we are seeing great success in the mining, fishing and food and beverage industries.”

According to Green, Angola is another market that holds enormous potential for the company, particularly in “textiles, to water treatment, energy and petroleum". He said, "Angola has developed from an agriculture-based economy into one of SubSaharan Africa’s main oil and mineral producers and its third largest economy, with strong growth potential. ■ www.africanreview.com

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Kirloskar Brothers Limited

BUSINESS

Powering Africa with sunlight odernisation and rapid urbanisation has catapulted economies like India and Africa into a competitive league. However, this quick rise in development has placed a great deal of stress on power supply.

According to a World Bank report, India is the third largest economy on a purchasing power parity basis. The African Development Bank (AfDB) stated that in 2011, only one out of five people had access to electricity. Several towns and villages in the two countries still face power outages or worse, have no access to electricity at all.

The widening gap between demand and supply of power has made governments and regulatory bodies turn to solar energy as a viable alternative.

Governments are increasing incentives for those who adapt this form of energy to support businesses.

At such a time, fluid management solutions provider Kirloskar Brothers' Limited (KBL) is offering solar photovoltaic pumping solutions for offgrid and grid-solar hybrid applications.

The company's latest offering- the Jalverter- is a solar power conditioning or controlling unit. The device has been tested and conforms to as per IEC 61683 and IEC 60068–2 (1, 2, 14, 30,78) the specifications of MNRE mentioned in JNNSM. It has maximum power point tracking (MPPT) for optimum solar performance.

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www.africanreview.com

The Jalverter has been integrated with protective technology against phase imbalance, short circuits, low voltage and electricity overloads. There is a soft start to control in-rush current, which enhances motor service life. It is field-programmable to suit varying site and weather conditions and works satisfactorily up to 55 deg C. The solar controller is dust-proof, and in the absence of sunlight, it can be run on 50Hz AC input from the grid.

The Jalverter can be used to supply power to industrial and commercial establishments, pumps, elevators, compressors, airconditioners,

pulverising machines, rotary crushers, oil extraction machines, concrete mixing machines, irrigation projects and water supply schemes. These sectors are widely prevalent across Africa, making this device a good fit in the continent.

Centrifugal pumps, which help generate power, are responsible for a considerable loss in electric power through transmission and distribution. A report published in UK-based think tank Green Alliance has stated that renewable technology takes less than half the operating costs of traditional diesel generators. Using a solar controller like the Jalverter could mitigate huge losses in power and save a lot of money.

Africa has abundant access to sunshine for a better part of the year, so harnessing solar power could very well be the answer to solving the acute energy crisis in the continent. South Africa is leading the way, as the nation has set an ambitious goal of generating 18GW of clean energy by 2030. The United Nations Environment Program (UNEP) stated that South Africa invested US$5.7bn in renewable energy development. Now, countries like Mauritania, Ghana, Morocco and Kenya are investing in solar projects.

KBL’s solar powered pump is a viable alternative to diesel-driven pumping systems, and could help Africa sustain its needs through clean energy. â–

African Review of Business and Technology - September 2014

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BUSINESS

Sierra Leone

Land of opportunities Sierra Leone stands on the verge of an unprecedented era of boom, driven largely by revenues from iron ore, gold, diamonds, and possibly offshore crude oil

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lthough the recent outbreak of Ebola has complicated the economic dynamics in West Africa, this postconflict nation of six million people has been regarded as a success story by the Bretton Wood Institutions, thanks to rapid socioeconomic transformation in the last decade. It has embarked upon an ambitious programme of infrastructure building and structural reforms – focusing on fiscal probity, the business climate and financial sector as well as privatisations – with the aim of unlocking mining potential and supporting strong/diversified growth.

Sierra Leone is guided by its development strategy, The Agenda for Prosperity 2013-17, which aims to scale-up inclusive green economic growth, employment and value addition in various sectors and to accelerate progress towards the Millennium Development Goals (MDGs). To achieve these priorities, the government is intensifying efforts to foster a vibrant private sector-led economy and mobilise private investments, as well as improving the management of natural resources and enhance tax collection. On macro-economic front, the International Monetary Fund (IMF) has reported that Sierra Leone’s economic growth continued in 2013, with output expanding by 20 per cent and inflation falling to single digits, mainly

reflecting increased food supply. Real gross domestic product (GDP) growth is projected to remain in ‘double-digits’ at 14 and 10.8 per cent, respectively, this year and next, driven by soaring iron ore and other mining production, sustained robust expansion in agriculture, services, and construction, and a recovery in manufacturing as energy supply improves in 2014. An improving trade balance coupled with expected capital inflows will help strengthen the external and fiscal positions, whilst building-up gross international reserves.

Open for business The government has encouraged private investments by establishing a one-stop shop for investors, the Sierra Leone Investment and Export Promotion Agency (SLIEPA), and through the implementation of key trade-

Sierra Leone ranks among the top-five places in Africa for investor protection. There is a range of improved customer support systems for entrepreneurs

Sierra Leone is one of the world’s most mineral-intensive countries

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African Review of Business and Technology - September 2014

promotion activities under the Integrated Framework. Sierra Leone is rated reasonably well in World Bank’s 2014 Ease of Doing Business Report – placed second out of 16 West African peers and 18th in sub-Saharan Africa.

The number of procedures, time plus cost required for licensing a business and registering property have improved since 2005. Sierra Leone ranks among the top-five places in Africa for investor protection.

Improved support for entrepreneurs also includes a computerised credit information system, a functioning fast-track commercial court and the automated system for customs data, which simplifies the process of exporting goods.

The country offers an open and favourable foreign direct investment (FDI) regulatory regime and firm guarantee against expropriation. Most business sectors are fully open to foreign equity ownership and the Investment Promotion Act offers a levelplaying field for all domestic and foreign investors with respect to ownership of local companies. The legal system is based on English Common Law and Customary Law. Peace and sound macro-fundamentals have attracted leading global companies in mining, telecommunications, banking, air travel, freight services, energy (including renewables) and more recently petroleum. Total FDI (net) inflows over 2009-13 were US$2.426mn, up steeply from merely US$300mn on previous five-year period, according to UN Conference on Trade & Development (UNCTAD). While FDI inward stock in 2013 totalled US$2,319mn, compared to US$284mn in 2000. China, the UK and South Africa remain the major investors.

Although the extractive industry and telecommunications have received the bulk of FDI, the UNCTAD report indicated that Sierra Leone has real scope for FDI in agribusiness, fisheries, eco-tourism, and manufacturing.

Among new investors are the Hilton Hotels Group that has invested US$41mn in constructing a hotel in Freetown and a group of Chinese businessmen who have invested US$190mn in a new international airport, near Freetown. www.africanreview.com

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BUSINESS

Sierra Leone

Market sectors * Mining/quarrying: Sierra Leone is one of the world’s most mineral-intensive countries with ample reserves of iron ore, platinum, gold, diamonds (five per cent of global reserves), bauxite, rutile, chromite and base metals (copper, lead, zinc and tin). The three mega-projects (Tonkolili, Marampa and Bembeye) started in 2012 will help make Sierra Leone one of Africa's largest iron ore producers – with output capacity reaching 45 to 75mn tonnes/year over the long-term.

The IMF estimates mineral exports could fetch US$3,200mn by 2016, compared to US$1,164mn in 2012. In addition, the mining sector is contributing towards upgrading infrastructure as African Minerals Ltd, investing heavily in transport facilities linking iron ore mines to seaports. * Commercial agriculture: Thus far, one-fifth of the 5.4mn hectares (ha) of farmland are used for crop growing. Sierra Leone is considered water-abundant as it has 30,960 cu/m per capita/year of renewable water resources, one of the highest in Africa.

Whereas 807,000 ha are physically suitable for irrigation, but only 29,360 ha are presently equipped for irrigation.

Higher potential exists in coffee, cocoa, palm oil, rice and ginger. Increased production of cash crops should generate investments in irrigation, machinery, fertilizers and seeds. But the road network is a big obstacle – Sierra Leone needs to add about 5,000 km of road for providing improved access to rural land. * Infrastructure building: This offers a gateway for the private sector to either invest alone or in public-private partnership (PPP) in priority areas such as toll road concessions, railroads, ports, airports, electrification, mass housing, water treatment plants and irrigation, as well as ICT. Presently, a huge US$900mn nationwide road programme is underway, managed by China Railway Seventh Group Co Ltd. Closing the ‘infrastructure gap’ would cost annually US$500mn over a decade, according to the World Bank, which is beyond the government’s own resources. This complements the need for private capital and expertise. *Power generation: Sierra Leone holds significant renewable energy resources – biomass, solar, wind and hydropower. In November 2011, Swiss-based Addax Bioenergy opened Africa’s largest sugarcaneethanol refinery and a biomass power station

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There is immense potential in agriculture

in Bombali District. The facility (costing US$200mn) will produce about 30MW of biofuels, of which 15MW would be feed into the national grid, and the remainder to run Addax Bioenergy own equipment. The government has set a target of developing between 700MW and 1,000MW of power within the next five years. This will include second phases of Bumbuna Hydro and Bekongor Hydro projects – (being developed

by US-based Joule Africa) – designed to deliver another 350MW and 100MW, respectively. *Maritime transport: Sierra Leone is also home to the third-largest natural harbour in the world, and the number one harbour in Africa. Its strategic location adjacent to the European market’s shipping lanes has long made Sierra Leone a popular trading and refuelling location. The government is devising an extended programme to develop Freetown as a trans-shipment global trade hub by improving the management and renovation of the port. This will create demand for port services equipment, management expertise, and rehabilitation engineering. *Global value chain (GVC): There are opportunities for moving up the value chain by establishing processing factories, where Sierra Leone enjoys competitive advantages, notably in agriculture (focusing on cash crops), industrial materials (iron ore), gemstones (diamond cutting/polishing) and dore (gold refineries). For example, the country could add 20 to 40 per cent to its GDP by processing more of iron ore into steel.

Huge investments in transport network and energy supply are needed to participate higher up in the GVC. To tap the benefits of food processing, it is vital to establish phytosanitary inspection and certification capacities – the prerequisite for exporting to developed markets.

African Review of Business and Technology - September 2014

*Oil exploration: In 2009, a consortium led

by U.S. independent exploration company Anadarko found significant petroleum potential off the coast of Sierra Leone.

Further exploration by Anadarko, African Petroleum and Talisman are still going on to assess the full commercial viability of offshore oil – whose probable reserve estimates are 500-700mn barrels. The World Bank noted, “Although it is too early to assess the magnitude of this discovery, it might present an additional opportunity to attract FDI and generate revenues, which, if carefully managed, could further the development agenda of the country.” *Tourism: Sierra Leone boasts a diverse landscape of mountains, lush vegetation and beaches on a calm ocean, which provides eco-tourism potential. According to the World Travel and Tourism Council (WTTC), the direct contribution of travel and tourism to GDP has grown by 6.6 per cent in 2012 compared to 2011 and its contribution to employment has also grown by 3.3 per cent. To cope with regional competition and attract new investments in the sector, it is advisable to integrate Sierra Leone into a West African tour as one of the stops.

In sum, despite its comparatively small size, the country has tremendous potential in different economic activities. Short-term, the mining sector remains central in attracting FDI. Longer-term efforts should focus on labour-intensive sectors, such as agro-processing, fisheries, light manufacturing and tourism. The IMF expects a three-fold surge in Sierra Leone’s GDP between 2010-20.

Sierra Leone is a small nation with enormous growth and FDI potential. ■ Moin Siddiqi, economist www.africanreview.com

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BUSINESS

Côte d’Ivoire

Favouring growth Being the second largest economy in francophone Africa, Côte d’Ivoire is soon becoming a key import export hub in West Africa

Côte d’Ivoire is the world’s leading producer of cocoa, and agriculture is the key to the nation’s economy

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ôte d’Ivoire is the second largest economy of francophone Africa, with an estimated 9.8 per cent GDP growth in 2014, which will be driven mainly by natural resources. However, Abidjan, the country’s commercial centre, is a key port, making Côte d’Ivoire a gateway to West Africa with excellent import-export prospects.

The government is actively taking steps to improve the infrastructure and business environment, with the adoption of the 20122015 National Development Plan. The National Development Plan dedicates more than 60 per cent of its budget to infrastructure and transport, which is key for this agriculture-based economy. More than 70 per cent of the country’s land is arable with six months of rainfall recorded annually.

With a population of only 22mn, Côte d’Ivoire is the number one producer and exporter of cocoa worldwide, and a leading producer of natural rubber in Africa.

The inflation rate is between one and three per cent and is in line with the 2012-2015 National Development Plan, The country aims

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to become a significant player in the emerging markets by 2020. The government’s open economic policies to foreign investors has made it easy to set up businesses in as quickly as 24 hours.

“Côte d’Ivoire has a liberal and open economy to foreign investors. To start with, the CFA franc, the nation’s currency, is fully convertible with the euro at a fixed rate (1€ = 655.950 XOF), which makes it easy for foreign investors to plan as they can utilise the fixed nature of the country’s currency” said Thierry Colatrella, KPMG head of advisory, Francophone Africa.

“Furthermore, Côte d’Ivoire is a member of the Organisation for the Harmonization of Business Law in Africa along with 16 other African countries. This means that doing business with Côte d’Ivoire, and expansion into these other countries is simplified.”

The government’s ongoing National Development Plan involves renovation of national roads, electricity generation and distribution. Laws and other regulations around registration of property and

African Review of Business and Technology - September 2014

enforcement of contracts are being developed and adopted. There is also a concentrated effort by the government to improve access to credit and protect investors.

“Finally, the country offers strong tax incentives to foreign investors who make investments in areas that create new activities in various sectors such as agriculture, education, tourism,”added Colatrella.

Given the government’s focus and drive to encourage and improve the business environment of Côte d’Ivoire, the infrastructural development and the potential held by the country’s other natural resources such as oil and gas, Côte d’Ivoire is an economy that must not be ignored by investors with an eye towards the future.

Besides being the gateway to West Africa, Côte d’Ivoire has strong economic relations with South Africa and this will enable South African investors and even foreign investors with operations in South Africa to become more aware of the immeasurable opportunities in the country. ■ www.africanreview.com

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BUSINESS

Nigeria

Banking on technology A look at how banking infrastructure has changed the face of Nigeria in the past decade

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ith Nigeria having recently eclipsed South Africa as the continent’s biggest economy, it is worth taking a look the nation’s progress from the perspective of a service which is indispensable to the modern way of life – electronic payments. And electronic payments, in turn, depend on suitable telecommunications and banking infrastructure.

The pace of change in Nigeria is remarkable and, having been in the country for frequent periods around the early 2000s as part of the birth of the modern payments industry in that country, change is nowhere more noticeable than in the retail banking sector. Having recently returned there this year in a payments consultant capacity, the benefit of such an extended hiatus is the comparison of two distanced snapshots: the differences are quite stark and immediately noticeable.

A decade of development From a largely cash-based society ten years ago, where wads of cash or travellers’ cheques were a necessity for visitors, and where you’d be lucky to find a single MasterCard machine (which would connect directly to America), today ATMs and credit card point-of-sale devices are everywhere.

A decade ago, there were almost no electronic payment systems at all. The few ATMs were ‘through-the-wall’ types at bank branches, and there was little if not no remote or even inter-bank connectivity. By the same token, telecommunications were pretty poor; a walk on the streets would

Ten years ago, MasterCard machines were hard to find.

Today, ATMs and credit card point-of-sale devices are everywhere.

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reveal why, with telephone wires festooned on poles, or attached in an entirely haphazard fashion to the side of buildings. Companies generally established their own connectivity using microwave towers, rather than wait on the speed of government to improve communications.

From a herd of nearly a hundred banks, each operating within a limited fiefdom, the Central Bank of Nigeria promulgated policy in 2005 that saw the sector consolidated down to the just 22 currently in play. This process is regarded as a definitive case study for the success of downscaling (the goal being to align with the modern trend of moving from a banking system dominated by many small and relatively unstable banks, to a system with a few bigger and more reliable banks.

South Africa arguably went through a similar exercise in the Retail Banking sector a couple of decades ago). But this exercise has another, more organic effect on customers.

In the case of ATMs, the absence of an interlinking switch, which would allow customers from a bank in one area to withdraw cash from a bank in another, was hampered by a large and cumbersome pool of possible member banks. Together, with the consolidation of the organisations, such a facility – considered indispensable for modern banking – was introduced. Similarly, credit card machines just didn’t exist en masse and were not widely available, relying as they do on a connection from the merchant to the card issuer (the bank) and the payment system provider.

These connections, of course, depend on telecommunications infrastructure.

A better base for banking services A sense of perspective is required where Nigerian telecommunications is concerned.

The country has a population of nearly 170mn people, but it has just over 2.5mn landlines today. Thanks to the revolution of mobile telephony that the foundations for better payments systems were laid – today, there are 164mn GSM lines and nearly 15mn CDMA (3G) connections.

With all this happening in the banking and telecommunications sectors, something else

African Review of Business and Technology - September 2014

started to occur, which has almost certainly played a role in helping Nigeria to its position as the continent’s biggest economy. More people were getting ‘banked’, or gaining access to banking services. Transaction volumes have been increasing exponentially and when people are banked and transactions begin to flow freely, the economy benefits due to increased consumer participation in both the retail and retail-banking sectors.

The positive effect of a modern, wellmanaged payments system manifests in various ways. For example, those who have been to Nigeria’s capital, Lagos (especially a decade or more ago) will remember chaotic roads mostly in a state of disrepair; traffic jams on a colossal scale; and an almost complete absence of traffic lights.

Stanchion Payment Solutions is a respected electronic funds transfer (EFT) consultancy and systems integrator offering specialised custom development, technical, regulatory and financial skills. Stanchion has implemented, enhanced and managed payment systems around the world.

Roads are to an extent a picture of what’s going on in a country. Today, the situation couldn’t be more different. New tarmac can be seen everywhere. Traffic management is vastly improved (although getting off ‘The Island’ the traffic can still be a challenge).

There are high-rises climbing into the sky.

People from the regions go to Lagos to spend their holidays. Even the airport terminal is undergoing a wide-scale upgrade.

The Nigerian retail economy no longer depends on cash alone, but has the payments systems to support modern means of transacting, delivering improved security and convenience and easing the process of doing business, both locally and foreign investment based.

The situation is geared for continued strong growth in the foreseeable future – and that means Nigeria is an economic power to be reckoned with. ■ Liam McDermott, Stanchion Payment Solutions www.africanreview.com

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FirstBank

FINANCE

Striding towards growth With a 119-year heritage, FirstBank has grown from strength to strength in Nigeria, and now plans to expand across the African continent

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he announcement last year of FirstBank’s expansion into West Africa through the acquisition of some of the operations of International Commercial Bank marks a milestone many of us may have expected to have happened much earlier.

Whilst African expansion was at the forefront of Nigerian bankers minds in the mid to late 2000’s, FirstBank was conspicuous in its commitment to organic growth. So why has the Bank chosen to broaden its horizons now, and what does this tell us about the future of banking in Africa?

Let’s start with FirstBank today. With total assets in excess of US$24mn, customer deposits of US$17mn and a strong capital adequacy ratio of 18.9 per cent, well above the CBN mandated minimum of 10 per cent, FirstBank is the largest bank in Nigeria, and amongst the largest corporate and retail financial institutions in sub-Saharan Africa (excluding South Africa). There is no doubt that the bank has consolidated its position in Nigeria and sits in a very strong position from which to grow, both domestically and outside Nigeria. Not only is FirstBank the largest Nigerian bank by assets, but it has also consolidated its reputation for world class corporate governance and a conservative approach to risk management – all built on a platform of 119 years of national development. The management’s decision to focus on ensuring local growth and delivery has been substantiated.

So why has the Bank now decided to spread its wings beyond the shores of Nigeria? It is important to remember that this is not the first move FirstBank has made into Africa. In 2011, the Bank acquired BIC in DR Congo and it has maintained a progressive and case-by-case approach to inorganic growth opportunities. Since acquiring BIC, FirstBank has successfully managed an integration process that has incorporated BIC into FirstBank’s operations while delivering short term improvements in financial performance as well. The acquisition of ICB operations in West Africa is the next stage of growth and provides a strong brownfield geographic and commercial base from which FirstBank can continue to grow progressively

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FirstBank blends local expertise with banking expertise , and is expanding its presence beyond Nigeria

in Africa. As with everything it does, FirstBank underwent a detailed due diligence process prior to completing the acquisition.

With operations in Guinea, Gambia, Ghana and Sierra Leone, ICB provides FirstBank with a strong geographic platform for growth and an established customer base across the mid-corporate, SME and retail segments that complement the Bank’s existing strategy in Nigeria. ICB has over 600 employees and 120,000 customer accounts spread across these four markets. The Bank also operates in markets with major investments in key growth sectors on the continent, most notably the major mining industries that are prevalent in Guinea and Ghana and emerging in Sierra Leone as well as positioned for the commercial operations in the emerging oil and gas opportunities in Ghana and Guinea.

Many Nigerian banks are now actively expanding across the African continent and are implementing diverse business models as they seek to maximise growth. FirstBank’s approach is more nuanced and reflects the progressive approach the Bank has taken to expansion. Extolling the virtues of a multi-

local business model, the Bank has committed to ensuring that the best of local culture and experience is mixed with the banking expertise the Bank has built up over more than a century of operations. Speaking at the announcement, FirstBank GMD Bisi Onasanya said, “The acquisition of ICBGFH assets in Ghana, Guinea, Gambia and Sierra Leone fulfils the first stage of our ambitions to steadily build broader and more diverse footprints across Africa. We are committed to developing a multi-local business model that broadens our geographic revenue base while providing enhanced service delivery to our new customers.”

A multi-local business model is designed to ensure the markets where FirstBank is expanding retain the local culture and approach that make them an integral part of the local economy. By ensuring each FirstBank business across the continent adopts a locally led approach, while leveraging the international reach and experience of the parent company, the Bank believes it can engender a long term sustainable approach to doing business in new markets, Africa in particular. ■

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TECHNOLOGY

Internet

Casting a financial cloud Cloud computing might be widely prevalent at workplaces today but Nathan Johnston of Memset tells us why it may not be the most preferred technology to work with

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verything is now referred to as cloud; software, hardware, hosting, even your Windows PC is a cloud-enabled tool.

However, cloud is much misunderstood at the moment and also means different things to different people. One of the main aspects of cloud computing is Infrastructure as a Service or IaaS. In this situation, cloud means that you can buy hosting resources either OS-based or storage based (without an associated operating system) without a contract and simply pay for what you use.

What is paid for, and how and why it is paid?

One of the first practical problems of this system is that customers get a different bill each month and find it very difficult to budget the cost of these services over the course of a year. We have, in the last year or so, come across many customers’ accounts departments that refuse to authorise this type of payment, as they need a projected fixed cost over the next one year and invoices on a monthly or quarterly basis that are the same amount each time. In other words, many finance departments have yet to grasp the concept of ”pay as you go” or the concept of getting larger invoices in busier times. This means that often the business wants to purchase on a cloud-based flexible billing framework but the finance department will not sign this off.

The second issue with providing IaaS is that many companies charge more to split and itemise your costs in terms of bandwidth used, storage space consumed and how much power you have used. These costs are higher, not simply for us to make more money, but rather because intelligent systems have to be built or bought and worked into complex billing systems to present a transparent invoice with a breakdown of what has been consumed at the end of each month. Hosting companies also have to invest in intelligent hardware such as power bars that can report power usage on an hourly basis. For most companies their usage is pretty steady throughout the whole year as very few

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Cloud hosting is useful, but only when finance departments can accept ad hoc invoices for different amounts

businesses have heavy spikes at certain times in the year. Such a company would pay more money for a ”PAYG” service than for a fixed package with a fixed monthly cost when using the same amount of resources.

The other complaint I have heard is that for some services such as Amazon, which are all Web-based, you have to login to your account and turn on services or upgrade disk space, RAM or compute units. Chances are users tend to forget what has been added, turned on or upgraded and customers end up paying for services they never even used.

Keeping it simple Cloud services are also often complex and if we don’t understand how it works, or the

African Review of Business and Technology - September 2014

framework of what we are being charged for, we always run the risk of being overcharged or obtaining things we don’t actually need. KISS is the key phrase here (keep it simple stupid).

Cloud hosting has its place, but only when you have a finance department that is ready to embrace ad hoc invoices for different amounts and only when your usage demands flexibility and your requirement will go up and down throughout the year. Additionally you need to completely understand the framework of the charges – remember to turn off services when you don’t need them and downgrade servers when you no longer need the additional resources. ■ Nathan Johnston, Memset www.africanreview.com

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Risk Management

SECURITY

Securing business Africa is a fast developing economy but protecting employees from various risks is something all multinationals operating in the region must consider seriously, says Carl Moon, GM of SSDS Risk Management

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n today’s Africa, risk appears in a variety of complex and continuously evolving forms with very few situations ever the same. The escalating risk to commercial companies operating in remote, challenging and post conflict countries in Africa has increased dramatically as we have all witnessed in recent years. As development increases within some countries in Africa so does instability through corruption, criminal behaviour and insurgency that heighten risk to personnel facilities and company reputation if one is unprepared.

Conflicts and political instability are common in today’s developing Africa. In many countries, situations that affect peaceful co-existence and sustainable development arise as a direct result of development and the corruption it brings. It leads to the inability of the government and the society in general to adequately address the grievances of the population such as wealth distribution along with the basic needs of people, food/water/housing, etc.

Africa, the second largest continent in the world, is still passing through development stages. The nature of political power in many African states, together with the real and perceived consequences of capturing and maintaining power is a key source of conflict and political instability across the continent. It is frequently the case that political victory assumes a “winner-takes-all” form with respect to wealth and resources, patronage, and the prestige and prerogatives of office.

In light of recent conflicts throughout Africa, it would appear that modern African conflicts (wars) are about economic resources corruption and political survival. Terrorism can be traced to ethnicity, religion, and mainly Islamic ideology, hence the nation has witnessed a rise in political and socially motivated conflicts, terrorism and criminal behaviour. The situation in many countries throughout Africa is an ideal ground for criminal and insurgent groups to develop, and does not offer substantial resistance to attacks. This has given rise to ample opportunities for insurgent al-Qaeda-linked

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Carl Moon, general manager of SSDS Risk Management

groups such as Boko Haram, Tariq rebels and central African rebel groups, who target Western interests.

Developing business interests One of the realities of doing business in developing Africa is that country managers in multinational corporations sometimes find themselves operating in areas of political armed conflict, indigenous cultural disputes, epidemics such as Ebola and other kinds of social upheaval. As development and multinational involvement continues, the international business community will increasingly find itself confronted with the challenge of implementing risk management policies and procedures to protect their personnel and assets while promoting peacebuilding in its areas of operation, or being blamed for contributing to conditions that lead to violent conflicts.

With insurgency increasing due to development in sectors like oil and gas, mining, precious metals and stones and rising corruption within governments, new challenges will arise which would require risk management professionals to apply conflict resolution and peace-building strategies in their risk management programs. These

strategies would be useful in situations where promoting peace by employing local support personnel is essential to succeed in projects.

Security risks affect different companies in different ways. Petroleum and mining companies represent expensive fixed assets and an abundance of expat personnel, and their protection is of strategic importance both to the companies themselves and - in most cases - to the host government. Hence, risk management in a challenging African region is significantly different than a stable environment, with emphasis on protection and contingency planning.

Risk management and contingency planning is a priority and is essential to all commercial companies operating in countries in Africa with safety and security concerns. Companies fully prepared by implementing risk management polices to cover security and medical situations as well as company assets will benefit economically and proactively by the knowledge that company personnel are being provided the highest standards of care given the environment the company is operating in.

Multiple issues Risk management is not just about security, it also includes environmental issues, terrain and country infrastructure, medical situations, HSE and overall well-being of personnel and assets and is the backbone of every project/operation operating in conflictridden region of Africa. Compromising risk management could lead to a potential disaster to the project, facilities or even your personnel, all of which could seriously affect a company’s reputation and future opportunities.

One of the increasing and growing realities multinational companies operating in developing Africa need to fully consider is taking more responsibility with the financial and environmental consequences while dealing with African communities and government representatives. ■ Carl Moon, GM at SSDS Risk Management

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TRANSPORT Air Cargo

New rules for inbound business What does the EU ACC3 Air Cargo Regulation mean for African air freight operators?

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s of the 1st July 2014 a new European Union (EU) regulation came into force, which affects the operations of all carriers of inbound air mail and cargo into the EU market. The EU ACC3 programme was designed to ensure the appropriate screening and validation of cargo entering the EU from any Third Country Airport (ACC3s) has been carried out in accordance with aviation security screening procedures.

At first glance this may seem like a regulation those in the EU need to be concerned about but in reality the impact is widespread. Any carrier based in Africa, which transports cargo into the EU, has to meet the regulations. For those operators and carriers that do not they will be unable to continue doing business in the EU as they will not be authorised to carry any inbound mail or cargo. This would have a significant impact on business operations and could result in loss of customers and revenue.

Where did it all begin?

The aviation industry itself is already heavily regulated by international governments and associated regulatory bodies, including the European Union and Transportation Security Administration (TSA), who implement security screening measures to ensure the safety of staff and passengers at airport terminals. The new requirements for the screening of inbound air mail and cargo originated from the October 2010 incidents, which saw two improvised explosive devices shipped as air cargo and detected at airports in the Middle-East and Europe. The threat of explosive devices being introduced into the supply chain led to the EU Commission to review its security legislation and ultimately triggered the implementation of much higher levels of security requirements for all EU bound cargo and mail.

In August 2011 the first set of new regulations were introduced and were rapidly followed on 1 February 2012 with updated regulations requiring carriers carrying air cargo

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Any carrier based in Africa, which transports cargo into the EU, has to meet new regulations

and mail into the EU from non-EU airports to ensure security standards are met prior to loading. The carriers also had to be designated as an “Air Cargo or Mail Carrier operating into the Union from a Third Country Airport” (ACC3).

Since 2012, the EU has been developing and agreeing the next stage of the requirements. As of 1 July 2014, the EU regulations state that all ACC3s need to have the required security verifications of their cargo and mail operations at the relevant nonEU airports from an independent validator that has been certified by an EU regulator.

How do carriers achieve accreditation?

In order to obtain ACC3 status, the air carrier must provide a “Declaration of Commitments” to the civil aviation authority of an EU Member State specifying how they have fulfilled their security responsibilities at every non-EU airport from which cargo or mail is flown to the EU. Each ACC3 must have security validations of their cargo and mail operations at each non-EU airports by an Independent Validator who is certified by an EU regulator. If the ACC3 has the security controls applied by a partner at non-EU airports then these entities (Known Consignors, Regulated Agents or Ground Handlers) must also have independent validation of their operations.

All of these independent validations will have to be repeated every five years.

The Non-EU carriers have been designated an EU Member State to provide all relevant EU

African Review of Business and Technology - September 2014

aviation security requirements, including nonpublic information. They will also inform carriers whether additional security measures need to be applied for certain non-EU locations they fly from or whether the ACC3 requirements are waived for certain non-EU locations. For carriers based in Africa it is possible to locate the designated authority via the Annex to Regulation (EC) No 748/2009.

The need for EU approved screening equipment As a part of this process, ACC3s must ensure all cargo and mail carried to the EU is physically screened, or comes from a secure supply chain, which is EU aviation security validated. Also air cargo security screening needs to take place using equipment that meets EU standards.

Subject to the business needs and current security measures, carriers may need to update the security of cargo and mail operations for each individual non-EU airport.

Securing the future of EU air cargo All air carriers flying air cargo or mail into the EU from any non-EU airport must comply with the ‘EU ACC3 programme’. Only air carriers that comply will be allowed to carry cargo or mail into the EU and individual ACC3 designation is required for every non-EU airport from which an air carrier flies air cargo or mail to the EU. ■ Robert Wright, director of EU public affairs at Rapiscan Systems www.africanreview.com

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Shipping TRANSPORT

Treating your fuel like gold What and how to manage, to ensure lower fuel bills, lower emissions and better control mechanisms

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n recent times, the cost of fuel has become astronomic with far reaching implications for all. Shipping costs have risen and so has the cost of living as a result. At the root of it is the cost of fuel as the common denominator. Fuel is now "liquid gold" on a whole new level.

Shipping companies have done what is possible to mitigate such costs through intelligent routing and economising through better vehicle choices in an effort to reduce the ever growing operating costs while also looking at ways of keeping abreast of international pressures to reduce their carbon footprint. At the end of the day, the consumer ultimately pays.

they outsource to contractors they are often billed double the actual fuel usage amount...We had such a case this year with a Blue Chip logistics concern at the Durban harbour. With our two core products, Diesel Guard and Naf-Tech, we get stuck in and assist to the last drop!"

Environmental awareness Being aware of products out in the market to reduce fuel consumption, theft and emissions, has become a neccessity in our modern business environment. To ignore the usage of your liquid gold is fatal, if not wreckless. Velisa Agencies will gladly assist clients with recommendations both in South Africa and other SADC states. â–

The value of safeguards It is a fact that the more expensive fuel becomes, the more valuable it becomes to firstly, potential thieves and opportunists, and secondly its safeguarding with checks and balances to monitor its usage.

Charl Hoole, director of Velisa Agencies, said, "We have been closely involved with trucking companies and others who use a lot of fuel both as a service provider to them and also as a company that does distribution using their services, and we see it all the time, executives are stressed out! Their directors are looking at the bottom line and demanding a lower fuel bill, lower emissions and better control mechanisms. What we do is address all of these issues for them...radically make an impact which is statistically verified."

Hoole went on to say, "We have dealt with the biggest and the best out there and more than 90 per cent of them do not have proper systems in place for monitoring fuel usage or preventing theft. Worse still, ask them for a running average fuel consumption on a vehicle over a month and it is at best, a guess, even when

As fuel becomes increasingly expensive, so it becomes more valuable to potential thieves and opportunists, and the more important it is to ensure safeguarding with checks and balances to monitor usage� www.africanreview.com

African Review of Business and Technology - September 2014

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TRANSPORT Rail

Train technology that stands the test of time Why demand for industrial Funkey shunting locomotives remains stable across Africa in volatile market conditions

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division of the manufacturing and engineering company DCD Group, DCD Rolling Stock is recognised as a leading manufacturer and supplier of locomotives, wagons and bogies to railway, mining and industrial operations. DCD Rolling Stock general manager Petrus Mulaudzi notes that the most recent order for a 37-ton diesel hydrokinetic (DHK) Funkey shunting locomotive was made in late-2013 by a colliery in Botswana.

"The 37-ton DHK Funkey locomotive is fitted with a 251kW Cummins QSM11-L335 engine rated at 2 200 rpm and is coupled to an integrated Clark T4000 series torque convertor and transmission assembly. This provides it with enough power to regularly and consistently deliver vast quantities of coal from the mine site to a nearby coal fired power station," he explained.

Mulaudzi reveals that DCD Rolling Stock has also received orders for its 24-ton and 35-ton DHK Funkey shunting locomotives from clients operating across the mining and industrial processing sectors over the past five years.

and safety circuits offer engine and transmission protection, while the power shift allows gear change to be carried out at full engine power and speed in any gear.

"The cab and bonnet structure are fabricated from 3CR12 steel plate, offering excellent corrosion resistance and weather proof protection. The driver controls are ergonomically located on both sides of the operating cab to facilitate optimum driver visibility."

DCD Rolling Stock general manager Petrus Mulaudzi

"All the locomotives are fitted with an integrated air and vacuum braking system which allows for braking on all types of wagons, as well as independent locomotive braking. They also incorporate a metallic spring suspension and friction snubbers."

According to Mulaudzi, full instrumentation

Demand for industrial Funkey shunting locomotives has remained stable across Africa

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African Review of Business and Technology - September 2014

A long-term market leader The Funkey locomotive has been available in South Africa since 1930, and has remained a market leading product ever since. Mulaudzi did, however, admit that cheaper imports from China have proven to be a challenge for DCD Rolling Stock recently.

"The African mining sector is cost driven and cheaper equipment is always appealing.

The long term costs can prove to be far higher, as these locomotives are of an inferior quality and require considerably more maintenance and repair."

Mulaudzi indicated that DCD Rolling Stock also offers superior after sales and technical support.

"A major trend among Chinese manufacturers is the tendency to deliver the locomotive onsite without providing any warranties or support. DCD Rolling Stock has established a strong presence in Africa, and is able to send a qualified and experienced technician into the field, should the need arise."

Looking to the future, Mulaudzi believes that the greatest potential for growth lies in the burgeoning African mining sector.

"Rapidly developing mining sectors such as Zambia and Ghana require highly durable, yet cost effective and simple locomotives for transporting ore. Having proven to be ideally suited to harsh African operating conditions over the past eight decades, the Funkey range of DHK shunting locomotives are the ideal solution for new and existing operations," he concluded. â– www.africanreview.com

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Testing PACKAGING

Smaller, faster and more practical Beumer develops new machine from its stretch hood model range

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or companies in the construction material, chemical or food and beverage industries, the topic of safety when transporting and storing palletised products has been becoming more important. This is what prompted Beumer to develop a new machine in its proven Beumer stretch hood model range that offers even more practical and safer handling for the user, compared with other machines in this model range.

The Beumer stretch hood A sees the intralogistics specialist from Beckum redesign its tried-and-trusted packaging system from scratch. During the development, the specialists analysed various components and optimised them in terms of function, arrangement and ergonomics. This includes an intuitive menu system on the machine control via a soft-touch panel, an optimised, ergonomically designed workplace for the operator and material-friendly transporting of the film in the machine thanks to an innovative film transport system. The new system also features improved system performance and needs far less floor space.

To facilitate work for maintenance staff, and thus ensure higher machine availability, the new Beumer stretch hood A is accessible without a platform and steps. Maintenance work such as changing the blades or the sealing bars are now handled at floor level. The operator opens a drawer for these activities, providing free access to blades and sealing bars. The machine is automatically brought

to a standstill to protect the operator. This removes the need to move subassemblies to maintenance position. Due to this rapid access capability, maintenance work is accelerated, and the risk of accidents and malfunctions minimised.

The machine’s ergonomics have also been consistently advanced. With just a few actions, and completely without tools, the operator can feed in the film. This means substantial reductions to tooling and conversion times.

Additional benefits include the compact design of the Beumer stretch hood and the resulting low height and small footprint.

An innovative, material friendly film transport system feeds the previously created film hood into the system. On its way to the crimping and stretching unit, the sealing seam on the film hood

The palletised goods are clearly visible through the smooth surface of the transparent, highly flexible film www.africanreview.com

African Review of Business and Technology - September 2014

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PACKAGING

Testing

cools down so that it can be crimped without losing time. This removes the need for an energy-intensive cooling unit and timeconsuming cooling. The pallets can be packed in a shorter cycle time thus reducing idle times, while at the same time ensuring improved packaging performance and less energy consumption.

External packaging may not be able to prevent internal damage to products, which have not been appropriately designed The developers have also improved the human-machine interface to offer an even more ergonomic workflow to the user. For Beumer stretch hood A this, the intralogistics specialist has introduced the Beumer Group Human Machine Interface (HMI), a newly-developed operator panel with an optimised user interface and graphical navigation. This easily understandable and intuitive interaction concept helps to define efficient working sequences. The operator can control the machine safely with only a little training saving time and money, which ensures high economic efficiency. The soft-touch panel uses pictograms to guide the user through the machine control menus.

The panel also gives the operator access to all required training programs. The system is controlled by a Siemens SIMATIC S7-300.

Energy-saving motors and low compressed air requirements ensure a favourable energy balance. The compressed air requirements have been significantly reduced compared with the previous model.

With its U-shaped frame design, the Beumer stretch hood can be easily connected to existing conveying systems. Removing the need to interrupt the conveying system also guarantees smooth conveying performance for the pallets and stability of the

palletised goods.

The Beumer stretch hood can be equipped with the Beumer OptiStretch system. The crimping bow, made of high-quality steel, swivels in even closer to the package, thus substantially improving the controlled application of film to the package. This improves system availability and enhances the visual appearance. The palletised goods are clearly visible through the smooth surface of the transparent, highly flexible film. Film packaging protects the goods against atmospheric influences, water, dust and insects and transport safety is substantially improved.

To be able to process various films, and implement a variety of packaging processes, such as understretch or high-rack stretch, the new system can be equipped with the Beumer multi-stretch system.

In addition, the operator receives an eLearning program via USB stick for this system. This way the employees can train themselves immediately in operating the new Beumer stretch hood A. This ensures a flexible and rapid familiarisation with the system. â–

Efficient packaging plays effective role on consumers Packaging plays a vital role to promote, protect and transport goods from factory to point of use. In some cases it can also perform a life-saving role with medicine and a lifeextending role with food products. Without packaging, life would be a lot messier, smellier, stickier and rather dull. The value chain of a product is often long and complex and to understand why certain products are packed is not always fully appreciated by the consumer. Increasingly savvy consumers recognise the need for optimal product and packaging design but are all too ready to take advantage of the digital arena to express their views of over-packaging. Directly or indirectly

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African Review of Business and Technology - September 2014

they can and do put pressure on the supplier to address issues, which could impact on brand and business values related to corporate social responsibility. The consumer is becoming noisier and it is now easy to be heard. Brand and packaging are now one and the brand owner needs to be vigilant.

Packaging has an important role to play in getting products safely from the factory to the consumer but it can often be done more efficiently and with less frustration for the consumer whilst reducing the environmental impact.

Source: The Less Packaging Company

www.africanreview.com

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Generators

POWER

New lifting solution saves time and money Johnson Crane Hire lends its expertise to a gold project in Namibia

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ohnson Crane Hire solutions have the ability to find the balance between time management and safety regulations, combined with creative problem solving skills.

In an example of its innovative attitude, Johnson Crane Hire recently completed a specialised lifting solution at the B2Gold Otjikoto Project in Namibia, using an alternative lifting methodology.

James Robinson, heavy lift manager for crawler cranes and projects at Johnson Crane Hire, said that the company’s solid track record is based on designing and engineering heavy lifts that are customised to specific customer requirements and are centred on irrefutable safety adherence.

The B2Gold Otjikoto gold project, which is located 300km north of Windhoek, will rank as the country’s second and biggest gold mine when it enters production before the end of 2014. The current mine plan is based on probable mineral reserves of 29. 4mn tonnes that will be mined over a 12-year period.

onto the company’s recently acquired jacking and sliding system, using a 200-tonne mobile crane. This new system is unique, as it is ultra-portable, allowing optimum flexibility in terms of where this sort of lift can be undertaken. “This is especially important at remote sites like Otjikoto, where access to technology is limited by logistics,” Robinson noted.

Each of the gensets comprises three major components — base frame, engine and alternator. Once Johnson Crane Hire had offloaded these components, they were assembled by the company, in collaboration with a representative from the OEM. Each genset, with a mass of 120 tonnes, was slid into position along a Teflon rail system, and together with a plumb line, Johnson Crane Hire was able to laterally and longitudinally place the gensets to an accuracy of within one millimetre of the final positions.

All lifting equipment are kept in optimum condition through regular, proactive maintenance schedules and on-going inspections

“One needs to have an understanding of the nature of the lift, the risks involved and any limitations. The planning process is critical to the success of a heavy lift and begins with an initial site inspection which is followed by a more intensive on-site visit by Johnson Crane Hire’ s technical heavy lift team. In this way, the team is able to verify measurements and dimensions which are then passed on to the engineering team who undertake a 2D or 3D CAD rigging study,” he added The scope of the Otjikoto project involved lifting, moving and positioning of CAT gensets from the outside of the building into position inside the building. The gensets were manufactured overseas and shipped to the Port of Walvis Bay, then transported via road to Otjikoto. Over a period of eight days Johnson Crane Hire offloaded the genset components from the low bed trucks www.africanreview.com

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Gensets

The B2Gold Otjikoto gold project, which is located 300km north of Windhoek, will rank as the country’s second and biggest gold mine when it enters production before the end of 2014 According to the engineer, one of the biggest advantages of the portable jacking and sliding system is that it is easy to set up and does not need additional equipment to reposition it. The only requirement is the necessary technology experience and knowledge. With the requisite training, our team was able to quickly and seamlessly erect the system for maximised time optimisation.

The company has been in good stead for the past 35 years and forms a critical cornerstone in the SMART (Safety, Maintenance, Availability, Reliability and Total cost effectiveness) business credo.

All lifting equipment are kept in optimum condition through regular, proactive maintenance schedules and on-going inspections. In addition, the company invests in its highly skilled and trained operators to ensure that they are also completely familiarised with the application of comprehensively documented and implemented safety systems.

“We are intent on exceeding local industry safety standards and we perform comprehensive risk assessments before each lift.

Training is provided both externally and at the Johnson Crane Hire training centre to ensure that our operators are up to date on the latest technology,” Robinson pointed out. ■

Sub-Saharan Africa growing exponentially Sub-Saharan Africa is the fastest growing region in Africa with economic hubs such as Lagos, Kinshasa, Nairobi and Johannesburg, according to a new report by PwC. Major investment areas include exploiting discoveries in the burgeoning mining sector and tapping into newly found energy resources, namely gold and gas. It is projected that there will also be significant private sector investment in infrastructure and capital formation.

The report also identifies the ‘Next 10’ biggest cities in the region that will attract major foreign investment. These include Dar es Salaam, Tanzania and Angolan capital Luanda.

Stanley Subramoney, strategy leader of PwC’s south market region, said, “The report projects that economic activity in the ‘Next 10’ cities could grow around US$140bn by 2030. This is roughly equivalent to the current annual output of Hungary.

“In addition to the trends with regard to high rates of GDP growth, rapid urbanisation and the so-called demographic edge that sub-Saharan Africa possesses, a number of other economic phenomena in the region are starting to appeal to the global investment community.”

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Subramoney maintains that there are three challenges that could possibly stifle the growth of the ‘Next 10’ big cities — Low quality of ‘hard’ infrastructure like roads and railways; inadequate ‘soft’ infrastructure like schools and universities, and growing pains arising from political, legal and regulatory institutions struggling to deal with a bigger and more complicated economy” “The challenges that policy makers face is to convert Africa’s demographic dividend

African Review of Business and Technology - September 2014

into economic reality by overcoming these hurdles. History suggests this will not be a quick or easy process. Infrastructure development is a key driver for progress across Africa and a critical enabler for sustainable and socially inclusive growth.

However, investors should form their own plans to mitigate these problems by supporting infrastructure skills and development programmes,” concluded Subramoney.

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Generators

Zest Energy’s diesel power plant for Zambia Installation for Mopani Copper Mines commenced in June this year, with commissioning begun in early July, and handover scheduled for Q3 2014

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est Energy, part of Zest WEG Group, is moving towards the commissioning of its first reference site for diesel power generation in Zambia.

The order was placed by Mopani Copper Mines (MCM) in August 2013 and calls for the supply and installation of a 12MVA diesel power plant.

Zest Energy also has installations in DR Congo, Tanzania, Zimbabwe and Ghana.

The scope of this project comprises the supply of six Perkins 4016 TAG2 diesel engines and 400V alternators, complete with spare parts for operations and maintenance, six 2,250kVA dry type 400V/11kV step-up transformers, 11kV switchgear for the integration of generators from the power plant, all equipment needed for the generator plant control room, including synchronisation and protection systems and all cabling within the mine’s generator plant building.

Alastair Gerrard, Zest Energy’s project manager, said that all equipment being supplied will be installed into a newly constructed plant building. Three complete synchronisation panels are also being supplied for integration of the local utility Copperbelt Energy Corporation’s 11kV incomers. The system will have the additional functionality to perform peak lopping and will thereby minimise maximum demand.

“We’re utilising our group company EnI Electrical, which has an office in Kitwe, to undertake all the installation work and Zest Energy’s team of commissioning engineers will do the final setting up and hot commissioning,” Gerrard added. “Owing to the constrained space available on site, we had to optimise on the electrical design and that’s why we selected dry type transformers which can go into the new plant building.

We’re also using a custom engineered busbar system between the generators and the stepup transformers.

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Zest Energy will build a 12 MVA diesel powered plant for Mopani Copper Mines (MCM) in Zambia

The Zest WEG Group is spearheading WEG’s advances into new markets and increasing its presence in Africa “This contract showcases our ability to effectively integrate our power generation installations with the customer’s infrastructure and to promote flexibility in the operation of the generator plant in conjunction the local power utility. Further to this, we always try to add value by considering and factoring in future expansion requirements.

“The Mopani installation was a fit for purpose solution, owing to the load complexity on the specific shaft. We were involved in the design and engineering of the

African Review of Business and Technology - September 2014

plant from the start of this project to ensure that the solution would be technically sound and cost-effective.

“Our competitive edge lies in the backing of both WEG and the Zest WEG Group. WEG has a strong interest in investing into Africa, which provides the ideal platform for us to develop robust and custom engineered solutions based on our understanding of the dynamics of power generation in Africa,” Gerrard concluded.

As part of the contract, Zest Energy will conduct on-site plant operator training to ensure that mine personnel will be equipped to run this power generation facility at optimal performance levels.

The Zest WEG Group is spearheading WEG’s advances into new markets and increasing its presence in Africa. Its customer portfolio is made up of the largest companies in Africa’s energy, mining, oil and gas sectors. ■ www.africanreview.com

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Maintenance

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The growing importance of coolant I

t is estimated that up to 40 per cent of all engine failures, which lead to costly repairs and unnecessary downtime, are related to problems that stem from the cooling system. Coolants have, therefore, become of paramount importance when it comes to effective vehicle maintenance.

Cummins - which specialises in the manufacture, sales and servicing of diesel engines and related technology - distributes a range of Fleetguard coolants which protect engine components from cooling system problems. According to Gerald Annandale, Cummins technical sales manager for mining, coolant is composed of three components - ; water content, ethylene glycol and a chemical portion.

“The coolant is an integral part of vehicle engine maintenance. Its water content portion cools down the engine, while the ethylene glycol forms the anti-freeze portion of the mixture. The smallest, but arguably the most important component is the chemical make-up of the coolant which protects the internal surfaces of the engine,” he explained.

The cooling system of a vehicle comprises of a number of different types of metal, which results in sensitivity to corrosion. “Aluminium for example is extremely sensitive to corrosion by chemical attack. In order to protect aluminium components in the engine, a silica compound forms part the coolant formulation to specifically protect the surface of the aluminium. The foundation of the formulation is protection, cooling, anti-boil and anti-freeze,” observed Annandale.

Annandale added that although the radiator is an important component of the cooling system it is only able to do so much. ”With the radiator cap on, the system is pressurised, and the boiling point of the water rises slightly. When a high quality coolant with a sufficient amount of ethylene glycol compound is used, it will only boil at 108ºC, thereby improving the boiling point of the water, as well as lowering the freezing point.”

Water makes up an extremely important part of a vehicle’s cooling system, however, if ordinary tap water is used it could be detrimental to the life of the vehicles cooling system. ”Chemicals such as chlorine are commonly added to water to make it safe for human consumption.

These chemicals not only disrupt the chemical makeup of the coolant, but also have the propensity to rust the different components of the cooling system. It is for this reason that long-life pre-diluted coolants such as ES Complete were formulated," said Annandale.

ES Compleat Glycerin pre-diluted coolant is a new and innovative heavy duty engine coolant made with Glycerin, a raw material derived from renewable energy sources, such as a by-product of biodiesel manufacturing. Glycerin is used in place of ethylene glycol (EG) or propylene glycol (PG), ensuring environmental responsibility with green products that continue to provide superior engine protection.

According to Annandale, a good vehicle cooling system maintenance programme should include regular testing of the coolant. “One of the most neglected parts of an engine system is the cooling system, and the only way to recover from a failure is to overhaul the engine, which is immensely costly.”

Coolants can be tested effortlessly and accurately with either a

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refractometer or with coolant quality test strips, both of which are supplied by Cummins. The Fleetguard Refractometer is a fast, easy way to determine the freeze point protection of both Ethylene Glycol and Propylene Glycol coolants.

It is more accurate than most test strips and float-type hydrometers, it is also easy to use. A drop of coolant from the cooling system is placed on to the refractometer window and the lid is shut. By simply looking through the eyepiece, one is able to record the freeze point protection of the coolant.

Cummins branded Restore alkaline-based cleaning fluid is designed to clean a vehicle’s engine and cooling system by removing all unwanted deposits and residue from inside the cooling system itself. "In the event that the cooling system has not been regularly maintained, Restore will highlight any leaks or problems detected. If the cooling system has been properly maintained and the correct coolant has been used, Restore will ensure that the cooling system continues to operate in good working condition for a prolonged period.” ■

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Portable Energy

Total compressed air solutions Atlas Copco is well-known throughout Africa for its range of air compressors, amongst other products; African Review asked Jens Van den Sande* of the company’s portable energy division how this reputation has been created What does “portable energy” mean?

Atlas Copco has more than 100 years of experience in compressed air technology and solutions. However, in recent years our division has moved to include other energy sources.

Hence, the change in divisional name from ‘portable air’ to ‘portable energy’ in 2011. We supply energy wherever needed with our multi-drop products: compressors, generators, pumps and light towers. Our strategy can be described clearly as spanning four product lines: air, water, power and light.

Our strategy is to have a full portfolio of products in each of the four product lines that we can market both via indirect and direct sales channels and via the various brands in our portfolio. We want to be the market leader, or a strong number two, in all five of our strategic segments by offering total solutions to our customers.

For what sort of applications are your smaller compressors typically used in Africa today?

Within the Portable Energy division, smaller compressors comprise of all oil-injected compressors that deliver up to 185cu/m CFM. Specifically, these smaller portable compressors are mainly designed for demolition and drilling applications.

During the design of the units, a strong focus is put on keeping the compressors compact, portable and easy to manoeuvre in tight spaces. Of course, the most important aspect is reliability because some of our machines operate in remote areas and need to be up and running day after day.

Specifically here in Africa, these compressors are typically used for the construction market.

This includes sand blasting and powering handheld pneumatic tools used in road construction, demolition of smaller concrete structures, drilling holes, etc. They are also useful in mining. For example in dimensional

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Africa is definitely one of Atlas Copco’s focus areas, especially for larger machines that are being used in mining applications

stone quarries where holes are drilled for blasting preparation or to power pneumatic dewatering pumps.

Atlas Copco XAS 97 compressor has proved to be popular in the construction segment due to its rugged durability

African Review of Business and Technology - September 2014

How important is the African market in terms of Atlas Copco’s global sales of compressors? From what regional centres is it served?

From the viewpoint of small compressors, the entire African market is currently relatively limited. However, Africa is definitely one of Atlas Copco’s focus areas, especially for larger machines that are being used in mining applications. Of course, a lot of Atlas Copco machines of all sizes find a productive ‘second life’ (the result of ‘used’ or ‘second-hand’ equipment sales) in Africa.

Atlas Copco has local customer centres in Botswana, Ghana, Kenya, Morocco, Namibia, Nigeria, South Africa, Tanzania, Zambia and Zimbabwe. These are the main points of contact between customers and Atlas Copco here. www.africanreview.com

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Portable Energy

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Atlas Copco’s strategy is to have a full portfolio of products that can be marketed both via indirect and direct sales channels and via the various brands in the portfolio

When it comes to used equipment, customers can contact their customer centre. We always have a good selection of machines on hand, both in the local customer centres and in our centralised stock.

Can you provide outline details of recently introduced products that are already making a big impact?

Atlas Copco has a long-standing tradition of product innovation. The smaller units also benefit from this approach to compressor design.

Probably one of the best examples of this is the Hardhat™ polyethylene canopy that delivers optimal protection against the abuses that portable compressors undergo on a daily basis.

Over the last couple of years, most of our focus has been on reducing exhaust emissions, making the machines more environmentally and user-friendly. This can be seen with the recently launched Kubota-driven small portable compressors that offer Atlas Copco’s well-known performance and reliability in a lighter package.

Actually, sustainable productivity covers a whole range of areas for us: designing and manufacturing safe and efficient products that have minimal environmental impact; interacting with customers; developing innovative products; investing in competence development; and engaging the local communities where we operate. ■ * Product marketing manager, small portable compressors

Are any details of a successful local compressor application available?

Atlas Copco products make the difference in numerous applications across Africa. Just one example is the Atlas Copco XAS 97 compressor, which has proved to be popular in the construction segment due to its rugged durability. The units deliver sustainable productivity in harsh operating conditions and dusty environments, including construction sites in remote areas, or where fuel is of poor quality.

For construction applications, the XAS 97 is primarily used with pneumatic hand-held tools in light tunnelling, trenches and demolition. Oil and gas customers use the XAS 97 with a refinery safety kit within the safe-operation area for construction, sand blasting, drainage and light demolition work.

And, finally, how important is after-sales service to your international marketing process?

Atlas Copco’s tagline is ‘Sustainable Productivity’. This is much more than just two nice-sounding words. It means that we always take the long-term view. Our customers need to know they will be productive not just today or tomorrow, but in a year or even ten years from now.

This means that we also help our customers to maintain the optimal performance of their machines by delivering the best aftersales service in the market. www.africanreview.com

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Oil and Gas

Tapping into SA’s energy renaissance South Africa must raise the profile of its oil and gas industry if the potential of its massive reserves is to be realised

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nergy policy was a hot button topic for the electorate during South Africa's most recent election campaign, held in may 2014 - and for good reason. The country is poised to be a hotbed of activity for the industry over the next half-decade. Offshore, vast tracts along the South and East coasts, as well as within the Orange River Basin, have been licensed for exploration by major players including Petro SA, Forest Oil, Tullow Oil and BHP Billiton.

Onshore, the nation is in prime position to reap the benefits of the global shale revolution, given that South Africa is ranked highly in terms of recoverable shale gas reserves – estimated at approximately 390 trillion cubic feet. With numbers like this, it is little wonder that many talk of South Africa becoming a net exporter of energy within the next decade. Few disagree that future prosperity and energy security hinge on exploiting these abundant natural resources, but with the election now over, the practical quandary of just how these lofty ambitions can be met remains.

Rising costs, rolling blackouts For most, rising fuel prices are a particular concern. Back in March, the cost of fuel went above R14 per litre for the first time in history.

Import prices also hit record highs at the start of 2014, and remain far higher than they were just two years ago.

There is also concern over our ability to maintain a stable supply of electricity. A vulnerable power supply means that for many, outages remain a reality. “Load shedding”, whereby areas are taken off the power grid on a rotating schedule in order to cope with an imbalance of supply and demand to prevent a total blackout, was first introduced in January 2008 and continued intermittently for several months. This resulted in serious disruption to both our economy and our everyday lives, with people temporarily unable to cook, travel

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safely, charge their phones, or use household appliances.

Since then, the fear of mass power cuts has remained and, in a case of unfortunate preelection timing for the ANC, this fear was realised in late February with a resumption of rolling blackouts. In a nation blessed with plentiful natural resources such as fossil fuels and huge economic potential within reach, clearly this situation is unacceptable.

Yet natural resources are not worth much without human resources – an adequate supply of the skilled labour required to find, extract and process the reserves. We face a critical shortage of skilled labour in this area at present, let alone with regard to the additional workers that will be needed to support the planned explosion of activity.

More than US$1bn is to be spent on exploration, with more than 10 companies having been granted exploration licences over the course of the last 18 months.

ExxonMobil and Anadarko acquired deepwater rights on the East Coast and BHP Billiton, Cairn India and Sunbird Energy on the West Coast.

South Africa has also been estimated to have the fifth-largest shale gas reserves in the world, and activity in this sector is ramping up significantly after the government lifted its moratorium on shale development in 2012.

There is also the planned Mthombo Crude Oil Refinery project, which will be located in the Coega Industrial Development Zone near Port Elizabeth in the Eastern Cape. Once complete, the refinery will process 400,000bpd of crude oil and will be the largest in the continent.

Plenty of reserves, not enough experience We are by no means an exception when it comes to having a limited pool of talent from which to draw. It is in part a symptom of a global skills shortage within oil and gas – an acute worldwide lack of staff with 10 to 15 years’ industry experience thanks to a general

African Review of Business and Technology - September 2014

freeze on recruitment during the ‘80s oil glut.

However, we face an added shortage given our status as an emerging market for oil and gas that has not yet had the time to develop skills domestically. This is evidenced by the relative lack of specific oil and gas training programmes at university level. And while the industry certainly needs more highly skilled engineers, it also needs a lot more tool-pushers, welders, and pipe fitters. So it is clear that a rethink of vocational training is necessary if we are to sustain our anticipated level of development in oil and gas.

Idiosyncrasies in South African labour laws tend to exacerbate the issue. The constitution affords unions a large amount of power, and industrial relations have historically been volatile and frayed. Again, we are by no means the exception in this respect. The oil and gas industry does not have a union of its own at present (though this is likely to change) but the diversity of its supply chain means that it can easily be disrupted by industrial action elsewhere.

Overcoming hiring restrictions While the skills shortage in the oil and gas industry is a global concern, the biggest difficulties faced in South Africa stem from the restrictions our firms face on hiring from abroad. The Black Empowerment Act places strict quotas on companies requiring them to hire from the domestic talent pool, specifically from groups considered to be disadvantaged in terms of ethnicity or gender. Even where a role is ultimately filled by, say, a Western ex-pat, the business must ensure they have advertised locally and that no local candidates are suitable for the role in question.

This is a problem for our oil and gas industry for two reasons. Firstly, we have a modest population (around 53mn) relative to our physical size and the scope of the exploration and development planned. www.africanreview.com

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Oil and Gas Secondly, much of this future development lies in deepwater drilling, in conditions similar to offshore fields in the North Sea in Europe and in North America and Canada specifically.

Much of the necessary technical skills and expertise we need will ideally have to be imported from these regions. Knowledge transfer, ideally, should be a priority.

Fortunately, there are certain projects in our industry where expats can be recruited, provided that a local recruitment drive has been conducted first. So while black empowerment policies are being implemented and more previously disadvantaged nationals are being recruited into roles, if expats have the necessary skills, they can be used. In addition, there is more training being provided in-country, so this will be less of an issue in the future. For now however, this should be regarded as more of a five year strategy for the country and our firms, than a short-term fix for our oil and gas industry.

The recently passed Mineral and Petroleum Resources Development Amendment Bill is a further consideration. While the intention behind the law – to ensure that the benefits of development filter through to the population at large – is noble and admirable, there is a danger that it will hamper foreign investment in our oil and gas industry at what is a critical juncture. In doing so, it may only end up hurting the prospects of the very citizens it is designed to protect.

Nevertheless, the Bill hasn’t yet been signed off, and since it gives the state an automatic 20 per cent stake in new oil and gas exploration and production ventures, as well as the right to acquire an unspecified additional share at an ‘agreed price’, it could be a good Bill for South Africa’s nationals.

www.africanreview.com

Finding a way forward The challenges faced by South Africa’s oil and gas industry will need to be addressed if the country is to have any realistic hope of fulfilling its ambitions. There is no magic bullet but reform of labour laws aside, there are various things the Government and industry can do (and are doing) to mitigate the problem.

The first is to encourage more sideways hiring from sectors containing similar or related skills. As a nation, we are uniquely positioned to pursue this option thanks to our established, large and prosperous mining sector, which has plenty of overlap with oil and gas in terms of roles (e.g. heavy equipment specialists, hydraulic specialists).

This means there are a lot of candidates out there that can make the jump across with relatively minimal training (e.g. an intensive three month programme as opposed to a two year one).

A potential barrier however, is that the oil and gas industry is not very well known in South Africa, so it is important that we look to build awareness of the opportunities on offer.

Sideways hiring is happening elsewhere, and we have seen it happen already in South Africa, so the more awareness the industry gets, the more sideways recruiting will happen – particularly as education and training picks up. At Petroplan, we are seeing a gradual transfer of talent from the mining and engineering industries, and we continue to encourage candidates to consider roles in oil and gas based on skills we identify as being transferable.

The second way in which we can address the skills shortage is to focus on improving and expanding training opportunities, both at entry-level and to ‘fast-track’ the

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development of existing junior workers.

Progress has already been made on this front: the Government has made training a tax-deductible expense, and major companies are now recruiting 100-200 graduates a year. Students are once again being encouraged to pursue trade skills, and several of our universities are in talks with the UK’s Robert Gordon University with regards developing an oil and gas programme.

Furthermore, the South African Oil & Gas Alliance (SAOGA) established recently is working closely with businesses, schools, universities and Government to encourage training through its Skills Programme Office.

This encompasses a variety of initiatives such as providing stipends to students training as welders, riggers, pipefitters, and other high-demand trade skills. It is also subsidising courses for those current employed in the industry, and working with colleges and authorities to bring local qualification standards in line with global industry standards. In addition, SAOGA is working to develop a ‘training cluster’ in Cape Town, with a proposed ‘Oil & Gas Academy’ intended to provide a comprehensive package of training options.

These are all positive steps, but will take time to come into effect. In the meantime, oil and gas players looking to take advantage of South Africa’s renaissance will need to lean more heavily than usual on third-party workforce specialists able to draw on their global network of industry contacts, while similarly demonstrating a firm understanding of the local culture and labour market. ■ Jaques Rautenbach, Petroplan

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Nigeria

Economics of West African energy The current and prospective challenges of power market privatisation in Nigeria

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igeria, Africa’s most populous nation, officially became the continent’s largest economy for the first time in April this year with the announcement of re-based 2013 GDP figures.

Nonetheless, for many years now, the country has been faced with crippling power shortages that have undermined economic growth.

With state-owned utilities unable to meet the challenges of providing secure and sufficient electricity supplies, the Nigerian government has laid out a roadmap to establish a fully privatised power sector.

However, this process has recently hit some stumbling blocks that could potentially undermine longer-term investor confidence.

Issues with NIPP privatisation process Nigeria had planned to complete the privatisation of the 10 gas power plants, with a combined capacity of 4.8GW, being built under the National Integrated Power Project (NIPP) by the end of Q2 2014.

Having accepted bids totalling US$5.8bn for all 10 plants in March 2014 this seemed achievable if not optimistic. However, the regulatory reforms and market rules that are required to be in place as part of the planned transitional electricity market (TEM) have yet to be fully instituted. TEM was originally planned to be in place by March 2014, but has been delayed as many of the required conditions that would allow it to function as intended have yet to be satisfied. This delay has left investors and financiers reluctant to release the funds necessary to complete the transactions. Furthermore, with distribution companies (DisCos) still recording losses in excess of 50 per cent as a result of insufficient tariff levels and broader market issues, the interim rules designed to be a bridge to TEM were revised in May this year. It is yet to be seen if these measures will lead to TEM being instituted and the NIPP privatisation process being completed before year-end, but the current state of affairs certainly begs the questions of how attractive Nigeria’s power market really is (or should be) to investors and whether current project economics and planned market structure are likely to support the sustained levels of private investment needed to underpin long-term economic growth.

Market attractiveness According to Precergy’s recently released annual global power market attractiveness rankings, Nigeria has only the 62nd most attractive overall power market and 44th most attractive gas power market. The respective scores of 45 out of 100 and 55 out of 100 compares to scores of 93 and 94 for USA, which is the market leader in both categories. Some of the major factors that contribute to this relatively poor attractiveness performance include the political and business risks associated with investing in Nigeria. Of course, measures can be and are taken to mitigate the risk of financial losses that could result from such political and regulatory risks; and the signing of power

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African Review of Business and Technology - September 2014

Nigeria’s domestic gas prices are pegged at US$2/mmBtu, as compared with the US$6/mmBtu that current Nigerian LNG export contracts receive

purchase agreements (PPAs) and fuel supply agreements can largely remove commercial risks.

In spite of such potential difficulties in investing in Nigeria, the broader macroeconomic and power sector outlook remain highly attractive to investors. For example, although Nigeria’s GDP of US$510bn is 38 per cent higher than South Africa’s US$370bn, on a per capita basis this is still two and a half time smaller than South Africa’s — indicating large untapped growth potential. Likewise in the power sector, according to figures released in July 2014 by the Presidential Task Force on Power, Nigeria had a peak generation capacity of 3.5GW, which is entirely inadequate to meet the estimated peak demand of 12.8GW. This current demand shortfall and longer-term peak demand growth expectations certainly offer a bright outlook for power project investors. www.africanreview.com

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Nigeria

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Gas power project economics With so much current and planned power capacity expected to make use of Nigeria’s extensive gas reserves, it is worth taking a closer look at how gas supplies and prices may impact the success or failure of market privatisation.

Currently, Nigeria’s domestic gas prices are pegged at US$2/mmBtu, as compared with the US$6/mmBtu that current Nigerian LNG export contracts receive. This large price disparity has the effect of making gas supplies for domestic use less secure as international oil companies (IOCs), in particular, seek to gain maximum returns through gas exports.

This situation, combined with the significant issue of pipeline vandalism, is currently leaving the NIPP projects with insufficient gas supplies, which is another sticking point in the privatisation process.

In light of this, it’s inevitable that in the longer-term domestic gas prices will have to converge towards export prices or alternatively will have to be heavily subsidised by the Nigerian government. Without this, Nigeria will likely face issues of underinvestment in gas production for sale to domestic markets — a scenario that would ultimately lead to reduced peak demand capacity availability with gas power plants unable to operate at full capacity.

The chart below illustrates a number of interesting facets of gas power economics in Nigeria. Firstly, although the cost for transmission and distribution must also be accounted for from the end-user tariffs, it’s clear that at current domestic gas prices of US$2/mmBtu there are substantial profit margins available for both open cycle gas turbine (OCGT) and combined cycle gas turbine (CCGT) gas projects operating at plant load factors of 70 per cent, regardless of end-user consumer.

However, at export gas prices of US$6/mmBtu these margins reduce dramatically — with residential tariffs too low to be profitable. Of course, the much higher industrial consumer tariffs are intended to provide cross-subsidisation of electricity costs for poorer consumers.

But with DisCos still making substantial losses, it’s fair to question whether this is truly having the intended effect.

Gas power project LCOEs and average end-user tariff

Outlook Privatisation of Nigeria’s power market is intended to solve the major issues that state utilities simply could not address. However, the reasons for the recent delays in completing the NIPP privatisation process and deeper analysis of gas power project economics indicate that Nigeria still has many issues to tackle before the country is able to attract the levels of private investment required to provide the secure power supplies it needs to drive long-term economic growth. In this context, even highly achievable installed capacity targets of 20GW by 2020 may not be met. So, prospective project investors will no doubt be keenly awaiting the completion of the NIPP privatisation deals and the implementation of TEM before pressing ahead with their current project proposals. ■ — By Adrian John, managing director at Precergy Ltd www.africanreview.com

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CONSTRUCTION

Markets

Collaboration on African construction The numerous factors forcing and enabling change within the continent’s construction industry

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he face of the African construction industry is changing. Construction projects on the continent are getting bigger and more complex. According to Deloitte’s 'African Construction Trends Report 2013', this is due to rapid urbanisation, strong economic growth, a rising middle class and regional integration in many of Africa’s 54 nations. All make for the ever increasing demand in Africa’s construction industry, as big infrastructure projects get underway in the region. This development leaves industry stakeholders with a lot of question marks: How to best secure funding for a project? What is needed for successful project management? What projects have priority? How to access the African market place? Good advice and expertise is needed.

Key challenges Infrastructure finance is one of the first things that come to mind when thinking about obstacles a project has to overcome before eventually becoming reality. Funding from traditional sources such as development finance institutes has become increasingly competitive. Project owners are, therefore, looking at alternative

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opportunities such as project bonds. At the same time, projects have become increasingly complex which makes the project management a lot more demanding.

It is more difficult to deliver a project on time and on budget and cross-border collaboration often adds to the complexity.

Also, the question of project priority arises. A large chunk of infrastructure investment currently goes into power, energy and transport. Different regions, however, have different priorities. In addition to this, companies are struggling to access the African market – from project information, how to tender and complying with different rules and regulations to skills availability.

Collaboration needed To address these issues, collaboration between all stakeholders is inevitable and the market has expressed a need for a neutral platform that encourages networking and the exchange of knowledge. The African Construction Expo and Conference provides such a platform to the industry. Over three days, the event brings together 5000 construction experts from across the continent – architects, contractors, designers, engineering firms, investors, property

African Review of Business and Technology - September 2014

developers, project owners, quantity surveyors and specifiers - to facilitate an interactive exchange of knowledge and to advance collaboration. The conference covers issues around project finance, project management and property development and covers interesting case studies around the construction of energy and transport infrastructure. An access briefing with representatives from various African countries completes the programme.

The 2014 African Construction Expo and Conference, which took place in Johannesburg, South Africa, in May. It brought together construction professionals from the entire African continent. The event featured a conference that addressed strategic issues around large-scale construction of infrastructure projects. An interactive exhibition showcases the latest products and solutions to help deliver projects on time and on budget. A workshop programme provided educational content and encouraged a change towards a more sustainable approach to construction. The event was designed for the industry’s senior level management, investors, government representatives as well as construction professionals of all trades. ■ www.africanreview.com

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CONSTRUCTION

Concrete

SA’s largest indoor concrete polishing job Major work undertaken in Johannesburg by Platinum Concrete Solutions, which is making use of the HTC Superfloor concept

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latinum Concrete Solutions (PCS) managing director Gershuan Ramlah spoke recently of work on the massive 30,000m2 project, based in Linbro Park, Johannesburg, began in April 2014, and is expected to last several months, due to the sheer scale of concrete placement, grinding and polishing required.

In order to complete this project to the highest standard, Ramlah said that PCS is making use of HTC Superfloor, a revolutionary flooring concept that uses grinding and polishing techniques to create a strong and hard-wearing concrete floor.

The HTC Superfloor concept, which utilises internationallyrecognised HTC floor grinding and polishing machinery, is exclusively available locally through Superb Flooring Systems - a subsidiary of the Pan Mixers South Africa (PMSA) Group of Companies.

PMSA sales and marketing manager Quintin Booysen explained that the HTC machines and diamond tools are used to grind and polish concrete floors, thereby removing the surface paste, and exposing the stronger concrete underneath.

“HTC Superfloor offers an easy to clean and durable flooring solution. Dirty, grey concrete floors are transformed into brilliant, easy to clean, environmentally-friendly and durable polished surfaces. This results in a stronger, more durable, shiny and beautiful polished concrete floor,” he said.

Meet the standards for large-scale work Johannesburg-based PCS specialises in the preparation, levelling, grinding, polishing and maintenance of concrete floors, and has developed a strong working relationship with HTC and Superb Flooring Systems that dates back four years.

“All PCS work is completed in accordance with approved HTC standards, which feature the highest level of global rating with regard to abrasion resistance, fire classification friction, electrostatic discharge, lifecycle costs and energy costs. I believe that this proven quality and in-depth experience led to PCS being awarded this largescale contract,” said Ramlah.

What's more, Ramlah indicated that a team of 17 highly-skilled PCS employees are working on the Linbro Park project. “Grinding is a specialised skill, and it is only through understanding concrete and the different processes that a truly magnificent floor can be achieved.

Thanks to a strong team, work on the project is running smoothly and will be completed on time and within budget.”

Ramlah admitted that a project of this scale comes with a number of challenges. “Large projects such as this involves a number of different contractors being located onsite simultaneously. Accidental damage is a common occurrence when there are so many people working around each other.”

He indicated that these challenges were overcome through

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African Review of Business and Technology - September 2014

constant inspection and communication between the various subcontractor foremen, as well as postponing certain grinding steps until it was safe to continue. “It is important to protect the floor through all stages of the project.”

Ramlah believed that the polished concrete market in South Africa is set achieve measurable growth within the next two years. “Polished concrete is poised to be a massive market in South Africa, and has the potential to set the industry standard for flooring. As the market grows, PCS intends to open offices in Cape Town and Durban, as well as expand in terms of staff and machinery.” ■ www.africanreview.com

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CONSTRUCTION

Technology

Cementing customer relations with solutions Why the development and utilisation of AfriSam’s composite technology represents an ethos of innovation

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friSam’s C-Tech cements are pushing the limits of on the environment. Their mineral components carries cement and concrete technology to produce significantly less embodied carbon than clinker, products with exceptional performance effectively reducing the carbon footprint associated characteristics which are also environmentally with the cement production process. responsible.

In the process, AfriSam is also able to “Our achievements in the arena of composite conserve natural resources such as limestone. technology (C-Tech) personify AfriSam’s ethos of The use of C Tech minerals in the innovation, aimed at ensuring that our customers manufacturing of composite cements make always enjoy the benefits of high performing constructive use of by products from other products,” Mike McDonald, manager of AfriSam’s industries, reducing the l need to landfill these Centre of Product Excellence, said, “This methodology materials. is also driven by our commitment to support the The introduction of engineered mineral environment by producing cements with ever lower components in increased proportions to carbon footprints. cement clinker presents AfriSam customers “Our C-Tech products are the result of an on-going with enhanced functional performance development process that began in 2000 and is still qualities. For instance, whether concrete is moving forward, beyond conventional boundaries. being used on a major construction site or for The mineral components in these cements have a D.I.Y. project, good workability is important. been engineered to make the resultant The less water required to reach the desired Tech personifies AfriSam’s ethos of innovation, composite cement superior to pure cement. consistency and workability the better as less aimed at ensuring that its customers enjoy the These products offer a spectrum of functional water promotes higher concrete strength benefits of high performing products attributes that provide our customers guaranteed levels. The lower water demand of AfriSam Cquality performance.”

Tech cements is a result of the additional mineral components employed and the use of carefully selected chemical admixtures.

C-Tech cements offer a spectrum of functional attributes that provide customers guaranteed quality performance

Easy on the environment C-Tech technology reduces the carbon intensive Portland clinker content of cement ensuring that AfriSam cements tread more lightly

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African Review of Business and Technology - September 2014

Material gains Another superior attribute of these cements is reduced heat of hydration. C-Tech cements typically generate heat over a longer period of time, substantially lowering these thermal gradients and reducing the likelihood of cracking.

The use of fly ash results in a dense concrete matrix that prevents deleterious materials such as aggressive chemicals and sulphate containing liquids from entering the concrete. This resistance to ingress of deleterious elements gives the composite cements their corrosion resistance properties. While any steel reinforcement exposed to chloride ions in solution is prone to corrosion, GGBFS is known to capture the chloride ions that cause corrosion in steel reinforcement, thereby enhancing the corrosion resistance properties of composite cements.

The finer particles in GGBFS, fly ash and limestone afford composite cements reduced permeability properties. This resistance to water and sulphate penetration from the refined pore structures helps protect the concrete from attack, preventing deterioration.

AfriSam C-Tech cements also contain mineral components that produce superior long term strengths compared to pure cements, where strength gain typically flattens out from 28 days onward. ■ www.africanreview.com

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Technology

ConSTRUCTion

Used by mobile V

olvo Construction Equipment Sales Region EMEA (Europe – Middle East – Africa) offers an app designed to give instant and easy access to the entire stock of Volvo Used Equipment in the region via an Apple smartphone or tablet. The app is available for free download from the AppStore and contains not only details of all used equipment that is available, but also the contact details (email or phone) in respect of each unit. The app also features a full dealer locator search function for participating Volvo CE used equipment dealers in the EMEA geographies and a specific ‘Volvo Approved Used’ search function.

Speaking of this development, Nick Rose, rental and remarketing director for Volvo CE sales region EMEA, said, “We know that more and more customers are searching for used equipment by way of mobile devices. Up to 40 per cent of current searches for used

“The introduction of the app will fundamentally change the way in which customers search for and purchase used equipment,” said Nick. “Via the App customers will be able to contact the specific dealer holding the equipment remotely. As they will be dealing directly with the dealer they will also potentially have access to other dealer offerings such as finance or even warranties.”

Accessible in 25 languages, the app provides instant access to the live database of used equipment, both Volvo and non-Volvo, available through the participating Volvo dealer network in the EMEA geographies. equipment are via mobile devices so this app puts Volvo CE and our dealers in a prime position to meet this need in relation to used equipment.”

The app is expected to widen the used equipment customer base and significantly increase the number of product card views.

Android version to follow soon While the initial launch is for Apple devices an android version will also be released shortly, which means users of other smartphones and tablets will also be able to access this mobile solution. ■

Your way to one of the most exciting markets in the world For over half a century, African Review has been putting thousands of sellers in touch with buyers across Africa. They know that the magazine can reach the largest number of decision makers in business and government, guaranteed with an ABC audited circulation.

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African Review of Business and Technology - September 2014

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ConSTRUCTion

Technology

The highest standards in hard-to-reach areas T

he quality of maintenance work carried out in hard-to-reach areas is only as good as the tools that are used, and leading rope access specialist Skyriders has developed an unrivalled reputation for delivering the highest standards of at-height maintenance work in numerous industries by making use of the Bosch Blue range of industrial power tools.

Skyriders boasts extensive experience in providing rope access inspection, nondestructive testing (NDT) and work-at-height maintenance solutions to high-profile clients in the local and international power generation, mining, construction, petrochemical and industrial sectors.

According to marketing manager Mike Zinn that the quality of tools used in this type of work is of critical importance.

“Most of our work is undertaken at timesensitive projects. Due to the difficult locations in which we operate, we cannot afford to climb 80 m up a vertical rope only to find that the tool is of a sub-standard quality, which ultimately causes unnecessary delays and additional costs,” he said.

Powerful results As a result, Skyriders makes use of a vast range of professional tools distributed locally through the South African division of Bosch Power Tools.

“Bosch Blue power tools are highlyreliable and cost-effective in the long-run,

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The tools are all light enough to carry along the ropes with ease while boasting considerable power

which ultimately ensures that Skyriders technicians get the job done right the first time,” said Zinn.

For maintenance tasks, rope access technicians from Skyriders make use of a wide variety of Bosch Blue industrial tools, including the GWS 7-115 angle grinder for concrete work and steel preparation for painting; the GSB 21-2 RE and GSB20-2 impact drills for the placement of anchors; as well as the GDS 30 impact wrenches for bolting tasks on steel erection projects.

“The GWS 7-115 angle grinder features a powerful 720 W motor and weighs just 1,9 kg for continuous use, while a flat gear head allows for convenient working in tight spaces.

African Review of Business and Technology - September 2014

What’s more, the GSB 21-2 RE impact drill boasts a high-performance 1 100 W motor with high torque for the most heavy-duty applications that require large diameters,” explained Bosch Industrial Power Tools SA senior brand manager Craig Berridge.

Zinn states that all Bosch Blue industrial power tools have proven to be highlyeffective to date.

“The tools are all light enough to carry along the ropes with ease, while boasting considerable power and durability. After-sales support from Bosch is excellent, and this value-added offering ensures that minimal downtime is encountered, even on the most demanding projects,” he observed. ■

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Equipment

ConSTRUCTion

ironPlanet’s first West African auction

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n online auction company for pre-owned construction, mining and agricultural equipment, IronPlanet’s first ever West African online auction on 3rd September 2014 has been organised in conjunction with IronPlanet’s alliance partner, GraysOnline.

The auction marks the sale, by IronPlanet of over 100 items of surface and mining equipment as well as a wide range of heavy construction machinery, featuring machines from Caterpillar, Komatsu and many other top brands, and containing the following specific items: ● Komatsu PC 1250 excavators ● Komatsu HD 785 mining trucks In preparation for the auction, customers were invited to visit the auction site in Ghana to view the machinery on offer, over 20-22 August. This event was a unique opportunity for attendees to learn more about IronPlanet’s business model and strategic vision for this region, and also for customers to view the equipment and speak to the experts from GraysOnline and IronPlanet in person.

Matt Bousky, vice president for mining at IronPlanet said, “This auction is a very exciting step for IronPlanet. The mining industry is seeing continued growth in West Africa.

However, the size of mining machinery can be an issue - which is why online auctions are the ideal platform for the buying and selling of equipment for this sector.

“IronPlanet provides a trusted and cost-effective solution to meet this need. This auction, our Ghanaian open-day and our first-ever alliance with GraysOnline in this region, demonstrate our commitment to meeting the needs of this ever-changing, strategic market.”

International interest All items have been available to view on ironplanet.com, and interested buyers have been able to place. PriorityBids could be placed online.

IronPlanet’s online auction format benefits sellers, who gain unique access to international markets, and are able to make significant cost and time savings on transportation. Furthermore, buyers are also able to realise exclusive benefits - access to a wide range of equipment at fair market prices that come with guaranteed inspection reports and IronPlanet’s IronClad Assurance. ■ www.africanreview.com

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ConSTRUCTion

Wheel Loaders

Features for fast filling and fuller buckets Cat's 990K wheel loader is productive, safe, efficient, and easy to service

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he new Cat 990K wheel loader offers more power and increased payload for greater productivity and fuel efficiency. The 990K also features a redesigned cab that delivers a superior operator interface and a quiet environment, and several new features promote operator and maintenance technician safety and performance.

Designed as an optimum loading tool for Cat construction and mining trucks, specifically the 773, 775 and 777 ranging from about 60 to 100 tons (54 to 91 tonnes) capacity, the new 990K also features engine configurations to meet customer needs worldwide. The 990K builds on the proven features of previous models and replaces the 990H. The rated payload of the new 990K is 17.5 tons (16 tonnes)—up from the 16.5-ton (15-tonne) payload of the H Series model. The increased payload makes the new loader a perfect 4-pass match with the Cat 775 truck for efficient, high-production loading. New, Performance Series Buckets promote fast filling and full bucket loads on every pass, and they are available in sizes ranging from 11.25 to 13 cubic yards (8.6 to 10.0 cubic meters).

The Cat C27 ACERT engine powers the 990K and delivers an 11 per cent increase in power compared to the previous model. Net power of 699hp (521kW) helps deliver increased production—without any change in fuel consumption. Lower engine speed helps drive economical fuel use. Additional fuel savings accrue with the 990K ECO Mode (on-demand throttle), engine-idle shutdown system, and engine-idle kickdown/auto-resume system.

The 990K is available as a Tier 2 version for Africa. No regeneration or operator intervention is required for the NOx reduction system and diesel oxidation catalyst equipping the Tier 4 Final model. And there is no increase in fuel consumption as a result of the engine emissions control systems.

The Cat exclusive, field-proven impeller clutch torque converter uses a lock-up clutch, providing direct drive to boost fuel economy, trim cycle times, and reduce heat, especially in load-and-carry applications.

The system allows operators to balance rimpull and hydraulic power for optimum loading efficiency. Positive Flow Control implement hydraulics use a variable displacement, electronically controlled pump to precisely apportion oil flow based on operator control inputs.

Improved cab and advanced operator interface The redesigned cab allows easy access and egress and features noise suppression that delivers a benchmark sound level of 69.9dB(A) for superior operator comfort. The Cat Comfort III seat provides integrated seat-mounted controls for smooth and comfortable operation.

Transmission controls, integral with the STIC steering lever, allow convenient travel control.

The operator station also features the Cat Vital Information Management System, VIMS 3G, which provides customizable operator

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African Review of Business and Technology - September 2014

profiles, a cycle timer and an integral Payload Control System, which provides on-the-go payload weighing. The graphical information display is easy to use and keeps key information in front of the operator.

The 990K is equipped with the Cat Vision rearview camera system and in-cab display to show the operator the area behind the loader.

The Cat Detect object detection system, available as an option, builds on the camera system with radars and in-cab software that provide notification to the operator when an object is detected within the radar coverage area. The systems are designed to enhance operator awareness, especially in congested loading areas.

Enhanced serviceability and versatility For added safety, a remote panel houses a stairway light switch, engine shutdown switch, and lockouts for the transmission and engine starter. A second panel provides convenient access to the battery disconnect switch and a jump-start receptacle. Routine maintenance points are easily accessed, including hydraulic pressure taps and oil sampling ports.

The optional ground level service center reduces service time. It displays fluid level status, houses drain-and-fill ports and provides a data port for diagnostic work.

A number of additional options are available to tailor the loader for specific applications and sites. For example, the optional high lift linkage enables the 990K to load Cat 777 trucks. The integrated axle cooling package and ride control options are particularly beneficial in load-and-carry work.

Application specific arrangements are available for steel mill and forestry applications. Increased stability and larger lift and tilt cylinders provide the extra capacity required for these tough applications. Additional guarding and protection keep the machine running in the harsh steel mill environment. Three-valve hydraulics is included in the millyard arrangement for smooth top clamp control when handling logs. ■ www.africanreview.com

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Interiors

CONSTRUCTION

High impact doors to enhance productivity S

electing the most appropriate door or closure for an opening is not as simple as it would initially appear. Wim Dessing, MD of Apex Strip Curtains & Doors, cautions that there are several factors that should be considered before making any decisions.

“To the chagrin of customers, they find that the least expensive product may become the most expensive if it is applied incorrectly. It is therefore necessary for suppliers to develop a full understanding of the customer’s requirements and then to select products that tick all the correct boxes,” he said.

The first element to be considered is the purpose that the door or closure will serve within its environment. “The type of business will dictate the type of doorway as well as the

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The Apex SR 9000 insulated impact traffic door combines functionality with longevity

position of the opening that needs to be served. Obviously, there are different parameters to consider when the installation is in full view of customers as opposed to one

where it is positioned at the back end of the site,” Dessing observed.

Another element to consider is the type of traffic that will pass through the opening. In some instances, only pedestrians will use the opening whereas in other instances motorised traffic such as pallets jacks, trolleys or forklifts may be added to the equation. In addition, one needs to determine whether the traffic is moving in a one or two way direction.

“In order to ensure optimal and unhindered traffic flow, the layout at the opening should be investigated. Questions to ask include whether the entrance point orientation is straight and readily accessible, or whether traffic needs to negotiate sharp or narrow turns. ■

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CONSTRUCTION

West Africa Building & Construction

Application at home and for industry Looking back at a showcase of high-performance technologies for the most challenging construction scenarios

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t the second “West Africa Building & Construction Exhibition” in Accra, Ghana, Wacker Group showcases highperformance polymers and silicone technologies from germany, designed for challenging construction applications. The company’s tradeshow portfolio, presented under the motto ‘Access Tomorrow’s Solutions’, comprised dispersions for waterproofing membranes and interior paints, water-repellent silicone resins for masonry coatings, and silicone sealants for general and sanitary purposes.

“Wacker is accelerating its business development in the African continent, especially the Sub-Saharan African region,” said Cyril Cisinski, managing director of Wacker Chemicals Middle East, while attending the tradeshow.

For the first time, the company also presented its customised concept for the Western Africa region.

Mr Cisinski said, “We have developed tailormade solutions for polymer-modified tile adhesive formulations taking into account local climatic conditions and rawmaterials.

Our aim is to transform the dry-mix mortar market in Ghana and Western Africa, as we believe that our products can enhance the performance of local construction chemicals and add great value to the regional construction market, especially in the field of sustainable building techniques.”

Dispersions for high-performance solutions At the show, the company introduced its Vinnapas polymer binders range for modern construction solutions. A highlight at the exhibition is Vinnapas 550 ED, a versatile binder for two-component waterproofing membranes such as sealing slurries for creating permanent, hard-wearing seals in kitchens, bathrooms, and other wet rooms.

Polymer-modified two-component waterproofing membranes remain flexible, even at low temperatures. Further

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Wacker Chemie promoted its polymer powders and dispersions, under the brand name Vinnapas (Photo: Wacker Chemie AG)

characteristics are good water resistance, outstanding crack-bridging ability, high tensile adhesive strength, and ease of processing. Moreover, the dispersion is manufactured without the use of alkylphenol ethoxylates (APEOs), plasticisers or solvents.

Vinnapas vinyl acetate-ethylene copolymer (VAE) dispersions are further used as binders in formulating paints with a low content of volatile organic compounds (VOC). This Wacker technology has excellent film-forming properties without the addition of coalescing agents and offers high scrub and blocking resistance. At the tradeshow, the company will focus on Vinnapas EP 3360, a dispersion for low-odor interior paints providing excellent scrub resistance, a high solids content and good formulation properties.

Silicone-based water repellents Wacker also showcased its Silres BS product portfolio. These products are based on waterrepellent silicone resins and silicone resin emulsions and offer building protection for decades. Silicone resins form an extremely stable and highly durable three-dimensional silicone resin network on mineral surfaces and within mineral-based coatings. The network repels water and moisture, but is permeable

African Review of Business and Technology - September 2014

to water vapor inside the wall. This effect keeps the building structure dry and prevents wall damage and decay caused by moisture.

At the tradeshow, Wacker focused on Silres BS 290 and Silres BS 1306. Silres BS 290 is a solventless silicone concentrate that is based on a mixture of silane and siloxane. When diluted in organic solvents, the product serves as high-quality general-purpose water repellent for impregnating and priming mineral and highly alkaline substrates. Silres BS 1306, on the other hand, is a solventless, water-thinnable emulsion of a polysiloxane modified with a functional silicone resin. In aqueous masonry coatings and aqueous primers, the additive enhances the water repellency, the water resistance and watervapor permeability of the formulations. It also improves the processability and anti-block characteristics of water-based coatings.

Silicone sealants for durable joint connections Wacker also introduced its General Sanitary (GS) and General Purpose (GP) silicone sealants. The GS line is typically used in wet areas. It seals connections and expansion joints in high humidity environment such as bathrooms and kitchens and is characterised by excellent resistance to mold and mildew. The GP line on the other hand, is a silicone sealant for renovation work, repairing and gap filling for both home and industrial applications.

Both lines are acetic-curing silicones and, as a result, are particularly rugged, with a long shelf life and good storage stability.

They offer extreme weathering, UV, and abrasion resistance. They also confer compelling levels of adhesion to porous and non-porous substrates, ranging from metal to glass and ceramics through to plastic, wood and other substances. The ready-touse sealants are flexible at both high (150 °C) and low (-50 °C) temperatures and can be applied by hand or machine. ■ www.africanreview.com

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MINING

Electra Mining

GEA Group to showcase solutions at Electra Mining G

EA Group, supplier of process technology and solutions, will be present once again at Electra Mining Africa 2014 by numerous specialists from its South African offices and German technology centres, showcasing an array of technologies from its mechanical equipment, process engineering, refrigeration and heat exchanger segments pertinent to the southern African mining and processing industry at stand A25, Hall 5.

Electra Mining Africa will be held at Nasrec Expo Centre in Johannesburg from 15–19 September.

“As a complete integrated systems solutions provider, it’s important that our technical and design services are accessible to advise on an optimised process solution for an array of mining and industrial applications,” said Garth Jordan, Market Development Engineer, GEA Westfalia Separator.

“With Electra Mining Africa attracting an estimated 38,000 visitors, it remains a primary forum for us to interact with both our existing as well as potential customers.”

From the mechanical equipment segment, GEA Westfalia Separator, the stand will feature a series of its decanters and centrifuges used in a range of applications, from the recovery of micro- and nano-sized particles of metals, through to dewatering, thickening or

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classification of pigments in industrial minerals, crud treatment and leach clarification.

GEA Westfalia Separator delivers product, service, training and maintenance solutions to position themselves as a total client partner. GEA Westfalia Separator offers a fullscale testing solution in a pilot plant environment to analyse client processes.

Products from each of GEA Process Engineering’s strategic business units (SBU) will be showcased. The Concentration SBU, which focuses on specific customised solutions and complete process lines, comprises of Messo PT, Wiegand and Kestner, who supply a range of crystallisers, evaporators, membrane filtration plants and scrubbers.

The Chemical Drying Systems SBU comprises of Niro and Barr-Rosin, and offers engineered solutions for turning liquids into

African Review of Business and Technology - September 2014

powder and the drying of particulate matter.

“GEA Bischoff (formerly Lurgi Bischoff), with close to 100 years of experience in the provision of emission control technology for glass, iron and steel, cement, nonferrous and chemicals industries, is a partner of choice in the need to conserve the environment through reduced emissions,” explained Kayimbi Mpanya, sales manager emission control.

“With all the technologies in our GEA portfolio, we’re able to deliver a single-source solution for complete process lines, enabling us to offer unmatched processes and service support to our clients,” Wendy Capelin, business development manager process engineering, added.

The refrigeration segment will be on stand to discuss the services, solutions and technologies for process cooling applications.

These include ice and chilled water production systems and skids, medium, low and ultra-low temperature systems as well as heat recovery systems. “This tradeshow gives us the opportunity to introduce our specialised refrigeration packages to the market,” Ilse van der Merwe, sales and marketing manager, GEA Refrigeration, said.

GEA Africa exports its solutions and expertise into sub-Saharan Africa and beyond, with offices in both Kenya and Nigeria. ■

www.africanreview.com

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Electra Mining

MINING

Reaching new heights with Eazi S

outhern Africa’s sole distributor of Handlers range of telehandlers, including the global market-leading access RHT 526 rotational telehandler capable of equipment and telehandler brands, JLG lifting 5 tons and a maximum lift height of 26 and Magni Telescopic Handlers, Eazi Sales & metres, the versatility of the Magni rotational Service will be returning to this year’s Electra telehandler range offers owners three Mining Africa to showcase an array of its machines in one: a crane, telehandler and an latest equipment offerings, including the new access platform.

JLG RS 3614 telehandler that offers enhanced The 30 ton high capacity telehandler, along levels of performance and safety as well as with attachments such as the 16 ton, 63 lower operational costs and up front inch tyre handler ideal for handling investment. large mining tyres, will also be Designed for mining, construction and on display. industrial industries, the new JLG RS 3614 telehandler enhances manoeuvrability in rough terrain conditions by combining a powerful Deutz 75kW engine with an industry-leading turning radius – capable of lifting 3.6 tons and 14 metres lift height. The newlydesigned machine is available with an array of downtimereducing, quick-change attachments.

For the first time at Electra Mining Africa, Eazi Sales & Service will also be introducing the new The newly-designed JLG RS 3614 is setting new levels of performance in mining, Magni Telescopic construction and industrial industries with a 3.6 tonne lift capacity and 14 metre lift height

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In addition, Eazi Sales & Service will showcase a wide range of Magni Telescopic Handlers attachments for both the RTH and HTH telehandlers that drastically extend the versatility of the machines. Come view a demo

on the cutting-edge technology built into the Magni telehandler range that sets it apart from its peers.

Additional products to be showcased at the exhibition include the JLG 40 metre articulating Ultra Boom; a variety of diesel and electric booms and scissor lifts; the new JLG 12E plus mast boom lift as well as JLG’s renowned trailer mounted boom lift.

Eazi Sales & Service is the sole distributor of Magni Telescopic Handlers and JLG telehandlers and access platforms, servicing southern Africa and other African countries with maintenance, repairs, parts and technical advice. ■ Catch Eazi Sales & Service at stand OS C21 at Electra Mining Africa held at Nasrec Expo Centre, Johannesburg, from 15 to 19 September 2014

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MINING

Electra Mining

Locally made oily water separator for mining sector A

first-of-its kind locally developed oily water separator solution is being officially launched at Electra Mining 2014 by environmental management firm

Procon Environmental Technologies. Procon managing director Kuno Kerlen said that the company will be launching its locally designed and manufactured ProSpin

hydrocyclone oily water separator at the event. The ProSpin oily water separator solution is based on HiPer hydrocyclone designs that use strong centrifugal forces to separate oil and other contaminants from water. The product range includes pneumatic engineered solutions for three m3/h to nine m3/h of oily water flow, as well as electrical engineered solutions dealing with flows from three m3/h upwards.

Procon will also be providing guests to the company’s stand with in-depth explanations and presentations on its range of products that are ideally-suited to mining applications. These include: Hydrau-Flo fuel filling valves Overfilling, spillage and tank ruptures are a persistent challenge in the international mining sector, where large fast-fill fuelling systems pump diesel at 1,500 ℓ/min. An ineffective overflow protection solution could therefore equate to more than 25 ℓ of diesel being spilled per second resulting in considerable environmental damage.

Procon chairman Andy Miller revealed that Hydrau-Flo is a considerably safer and more effective alternative to industry standard pressurised overflow systems, which do not entirely prevent spillage, but rather slow it down. exhibition stand.

Oil Buster soil bioremediation system Miller said that the new machine is capable of processing large quantities of soil, while simultaneously adding the required microbes, nutrients and other bioremediation components according to predetermined mixture ratios. “The costly and hazardous process of standard soil bioremediation has been dramatically simplified by this system, which serves as an efficient and cost-effective alternative to the full extraction, removal and transportation of contaminated soil to an approved hazardous waste facility. This ensures cost savings and improved rehabilitation turnaround times,” he stated.

Procon will be exhibiting in the marquee section at stand M3 54. ■

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Electra Mining

MINING

Veyance Technologies to reveal innovations V

eyance Technologies SA, exclusive manufacturer and supplier of Goodyear Engineered Products, will be showcasing its latest innovations in conveyor belting, power transmission and industrial hose, at this year’s Electra Mining Africa show at Nasrec, Johannesburg from 15-19 September at stand F30 in Hall 6.

On display will be conveyor belt services — key for all mining and manufacturing operations. At the stand, visitors can also view regular demonstrations of Veyance’s Preform™ splicing technology, which is the only on-site splicing technology currently available on the continent. Other splicing innovations will also be on display such as the

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company’s Nilos steel cord belt cutter and stripper as well as its fabric cutter for fabric and PVC belts.

Veyance Technologies SA’s conveyer belt

“We will also have a cross-section of our Cord Guard™ Condition Monitoring system that alerts operators to belt damage in realtime, minimising costly downtime and potential belt damage,” said Paul van Zyl, marketing and sales administration manager, Veyance Technologies SA. On the industrial hose side, a variety of flexible and durable hoses and couplings will be on show from the company’s extensive range. The selected hoses are all suited to withstand the abuses of mining applications, ranging from its high pressure and temperature hoses, withstanding 500 psi and 204°C respectively, to its super-abrasive material handling hoses. ■

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MINING

Electra Mining

Banding’s new marker and clamping tool B

anding & ID Solutions Africa will launch two new products at 2014 Electra Mining Conference, in addition to demonstrating its range of existing products.

It is the African distributor of USA-based Band-It — manufacturer of a full range of steel band, buckle systems, preformed clamps and cable ties for numerous applications. Business manager Rosa Remendos said that the company has developed a strong reputation in the local mining sector, which she believes will be further bolstered by exhibiting at Electra Mining.

“Electra Mining is recognised as the largest and most important mining conference in Africa that attracts over 40,000 delegates from across the continent. By launching new products at such a high-profile event, the company can open up new avenues of growth. What’s more, this is the ideal platform for us to consolidate existing business, while generating new business leads,” she added.

Among the new products being launched is the new Band-It Pro-Mark pin marker. It enables end-user businesses in the mining sector to save money by creating their own tags for identifying products and parts. The Band-It Pro-Mark pin marker is available in LCD and USB options. Both feature a metal stylus that imprints the desired mark or imprint on a metal surface.

The Pro-Mark LCD pin marker is a bench mounted, fully programmable pin marking machine. A stylus is attached to the head of the machine, which is wired to a computer to enable the operator to enter the information

Electra Mining is the largest mining conference in Africa that attracts over 40,000 delegates from across the continent.

Rosa Remendos, business manager at Banding & ID Solutions Africa

and parameters immediately. The pin marker will then print straight onto the desired metal surface from the computer.

The Pro-Mark USB pin marker is a plug-andplay system with Windows compatible software, which is easily connected to a laptop. Remendos highlights the fact that the Pro-Mark USB pin marker is easy-to-use, and marking layouts can be created and checked before work commences.

Band-It UK sales manager Paul Clark said that both models boast a marking area of 100mm x 75mm, and feature standard character sizes ranging from 0.18mm to 99.9mm in increments of 0.18 mm.

“The pin markers can be used for a variety of applications, including programmable marking, component identification and traceability, serial numbering, logo marking, time and date marking, part numbering, batch and shift coding and label and tag marking,” Clark said.

According to the company, the Band-It Pro-Mark automated pin markers complement Banding & ID Solutions’ existing range of manual

identification systems, and serve as the ideal solution for high volumes of in-house tagging, identification and labelling requirements on products such as cables, pipes and components.

Another new product at the event will be the UL4000-C ULTRA-LOK application tool, which is ideal for hose clamping, and has been designed to replace band and buckle systems in high volume applications.

Combined with the ULTRA-LOK band and buckle system, the UL4000-C is stronger than crimped or swaged industrial hose assemblies. “Clamping is three to five times faster than conventional banding tools when tensioning a band clamp,” the UK-based sales executive added.

Remendos indicated that UL4000-C is one of the most powerful portable band clamp installation tools on the market. “It is powered by advanced Lithium-Ion battery technology, which holds a charge for longer with consistent peak performance through the life of the battery.”

At Electra Mining, Banding & ID Solutions will also host various interactive demonstrations on its more well-established Band-It application tools, together with a range of cable ties and stainless steel buckles and straps. ■

The UL4000-C Pro-Mark LCD pin marker

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MINING

Technology

Sustainable growth from minerals industries Outotec shows how the use of technologies to support minerals and metals firms also improves access and utilisation of water, and addresses environmental concerns

O

utotec’s mission is simple: The firm is committed to sustainability. It creates technologies to support sustainable initiatives. It works with suppliers and other firms to ensure longevity in minerals market, and for minerals industries. It seeks to decouple the environmental impact of growth from the growth of welfare to a nation, through ecoefficient, sustainable technologies.

Metals and minerals processing, energy and water are the core sectors addressed by Outotec. It works in more than eight countries worldwide; making approximately US$2bn in sales in 2012/13, with employees hailing from over 60 countries.

Addressing opportunities Outotec addresses six global megatrends: urbanisation and growing middle class; resource efficiency imperative; decoupling wealth and ecological footprint, drive for social sustainability; digitalisation of the world; and more volatile economy. These represent major opportunities as well as challenges, and each applies to Outotec’s business in markedly different ways.

Minna Aila, VP for marketing, communications and corporate responsibility at Outotec, disclosed recently the company’s strategic thinking with respect to corporate performance and sustainability. She speaks of an internal culture, cost-competitiveness and an expansive, comprehensive yet comprehensible offering. She speaks of technology leadership, particularly tough huge investments in research and development, geared towards life-cycle value on site and for a site, throughout the processing of a metal.

The value for Outotec’s customer must comprise of minerals processing, refining, industrial water treatment, and energy. Its

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Outotec provided gas cleaning, sulphuric acid and effluent treatment technologies for Namibia Custom Smelters

Mika Saariaho, SVP for energy and water at Outotec, offered examples of potential fuels of the future, including both industrial and non-industrial waste; Outotec is already researching and developing such fuel options across the world, he added solutions to customer range from specific engineering support to whole site operation management. It addresses a wide variety of processing techniques.

Increasingly, it is dealing not just with minerals extraction enterprises, but also with agricultural waste operations.

Internally, it seeks to expand to new sectors

African Review of Business and Technology - September 2014

and to enhance its commitment to traditional sectors through a culture of open innovation and also a commitment to lifelong professional learning amongst its staff. It registered more patents (76) than any other Finnish company in 2013 - than any other country, and works closely with universities all over the world - including www.africanreview.com

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Technology

academic institutions and technologists in South Africa and China, two of the world’s most dynamic economies today.

Significantly, Aila stressed that Outotec takes a holistic view of industrial and economic opportunities - to ensure sustainability for society. The stress not merely on business connections, but also on societal benefits.

“We are not in B2B, business to business, development; we are in H2H, human to human, engagement,” she said. “You need to trust not only the company that you are dealing, but also the people you are dealing with.”

Direct development of minerals businesses Mika Saariaho, Outotec SVP for energy and water, extended this emphasis on social as well as corporate sustainability. He spoke of the challenges of biodiversity, and of the opportunities to business such as Outotec in dealing with these challenges. Whilst 80 per cent of the company's business is in minerals and metals, Saariaho detailed the increasing commitment to water management. Outotec’s water management solutions are directly developed from its minerals business, since it has dealt with water and waste from minerals operations.

Negative water balances and variations in access to water resources are of particular concern. The company’s high-tech components include mixers, reactors and analysers, and process knowledge, and the ability to integrate proprietary equipment.

Outotec has been heavily involved in South www.africanreview.com

MINING

Africa, Zambia and other African economies with rich minerals and metals resources.

One specific recent example of its work is in its work in Namibia, at a smelter in Tsumeb for Namibia Custom Smelters (NCS), a subsidiary of Dundee Precious Metals. This is a euro 130mn project, set for completion in Q3 2014.

The Tsumeb smelter was constructed in the early 1960s to process concentrate from the Tsumeb copper mine and is one of only five commercial-scale smelters in Africa. It is linked by rail to the Atlantic port of Walvis Bay in Namibia, and employs almost 600 people. The site comprises two primary smelting furnaces - an old reverberatory furnace as well as a refurbished Ausmelt furnace. The smelter is one of only a few in the world, which is able to treat arsenic and lead-bearing copper concentrates. Both blister copper and arsenic trioxide (As2O3) are produced from the concentrates. The blister copper is delivered to refineries for final processing and the As2O3 is sold to third party customers.

Outotec has been contracted to deliver basic and detail engineering, procurement and supply of a gas cleaning system and sulphuric acid plant, an effluent treatment plant, and a sulphuric acid tank farm with rail and truck loading station based on proprietary Outotec technologies. The acid plant is expected to produce annually 230,000-320,000 tonnes of sulphuric acid.

Outotec’s delivery also includes two Peirce Smith converters, equipped with high efficiency converter hoods for maximising the sulphur dioxide and impurities capture at the converters. ■

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MINING

Technology

Africa should commit itself to technology With abundant resources, the continent needs to get scientific know-how to pump up economy in its countries

A

frica is extremely rich in mineral resources and yet the poorest among all the continents owing to the fact that science and technology are not being given considerable prominence towards development of the assets.

The soil of the continent of Africa is pregnant with rich mineral resources like gold, platinum, diamond, zinc, lead, copper, titanium, uranium, among others. But currently, oil and gas are the most significant resources contributing immensely in shoring up the economies of producing nations in Africa.

It is interesting to note that Africa produces about five billion barrels of oil annually and this figure is over and above what Europe consumes. Africa has about 220bn barrels of oil reserves; very promising for hydrocarbons coupled with new discoveries, increase in reserves and greater locations on the African continent still unexplored.

Paolo Scaroni, CEO of ENI, said, “In the last five years Africa’s resources and reserves of oil increased by 30 per cent and those of gas by more than 100 per cent.

“Mozambique is where ENI, at the end of 2011 and beginning of 2012, made the biggest discovery in its history. We discovered about 20tn cubic metres of gas, in other words more than the consumption of the whole of Europe for four years in a single large reservoir.”

ENI is an Italian oil and gas exploration company and, by far, the leading hydrocarbons operator in Africa.

Scaroni added, “When we talk about oil, and oil in third world countries, Africa in particular, the first thing we recognize is that oil is theirs, not ours. Therefore, as an international company we have the right to exploit it on a contractual basis, but we are not the owners of the resources. With regards to training in Africa, we have 25,000 people working in the 21 countries where we operate. Many of these men and women who

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In African communities where mining of precious minerals like gold, diamond, copper, platinum, bauxite, manganese etc. are executed, development projects for the people are almost always not encouraging and they experience poverty

work with us, have been with us for decades and have developed a sense of belonging to the company that is one of the main reasons for our success.”

People, technology, and industry ENI’s efforts are laudable for what it is doing for countries in Africa where it has been operating over the years. But the question to pose is: how genuine will the indigenes of these African countries benefit from the real technology that makes oil prospecting, exploration and drilling a reality? .

Like the ENI chief said, “Sub-Saharan Africa is rich in hydrocarbons and has 600mn people, only 400mn of them have access to electricity and so we made electricity for local population a fundamental commitment. We began building power plants in Nigeria, where we provide 20 per cent of the country’s energy, we have built in the DR Congo where we provide almost 80 per cent of the country’s electricity and we are developing projects in Ghana, Togo and Mozambique.”

The thought is good but should African scientists and technologists be left dispersed in different countries of the developed world by their governments on the pretext that they are seeking greener pastures? This brain

African Review of Business and Technology - September 2014

drain problem emanates from two angles — economic and policy direction from governments.

A commitment to mining communities African governments must display fixity of purpose and commitment to develop and empower local population. When such an approach is adopted and allowed to operate, countries within the continent will shore up their economic gains.

African countries should respond positively to contributing money into special funds set up under the African Union (AU) and the regional economic groupings like Economic Community of West African States (ECOWAS), East African Economic Community (EEC) etc. for the training and sponsorship of African scientists and technologists for the purpose of engaging them in research works.

With such a programme in place, there must then be the need for a powerful networking among these professionals frequently with the view to unearthing their inventive talents for the crystallisation of inventions that will help change the face of the continent. ■ Emmanuel Yartey www.africanreview.com

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MINING

Machinery

SDMO powers mining operations How a French firm’s power solutions meet the requirements of industrial and minerals processing plants

E

nergy specialist and the world’s third largest generating set manufacturer SDMO offers efficient and turnkey energy solutions from one to 200MW, which can adapt to all applications, whether in light fuel, heavy fuel or gas.

Established in 1966, the company designs, develops and markets reliable, highperformance energy access solutions through its various premium multipower ranges of generating sets and tailor-made energy stations, designed to meet the needs of numerous specific applications.

SDMO supplies generating sets to the mining exploitation sector, for underground and for opencast mines, for which it supplies energy during the programmed maintenance operations, permanent supply for life basis (houses and other installations), standby gensets during power cuts, portable gensets equipment for electricity supply during the construction of a new mine, extension of the production capacity SDMO power solutions also meet the needs of industrial and minerals processing plants. It builds: ● Industrial generating sets ranging from 250 to 3,300kVA

SDMO supplies generating sets to the mining exploitation sector, for underground and for opencast mines

●

● ●

●

●

Medium-speed engines ranging from 1,000 to 1,200RPM Lighting towers ranging from 6 to 16kVA Generating sets ranging from 10 to 700kVA and dedicated to the rental market Standard products in stock for a higher reactivity Tailor-made products for optimised performances

In Salvador de Bahia, a Brazilian oil company operates two drilling sites equipped with SDMO generating stations.

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African Review of Business and Technology - September 2014

According to the company, SDMO generating sets are recognised for their high durability (MTBO = mean time between overhauls), important efficiency, important productivity, low emissions rates, low noise nuisances.

The company now proposes a range of products going from small portable generating sets until powers reaching 3MW/unit at low and high voltage that can be used for standby or continuous applications.

Dedicated power solutions Burkina Faso Youga, four kilometres from border with Ghana and 180km southwest of the capital city Ouagadougou, is the location of a gold mine which the Burkina Mining Company (BMC) has been granted the rights to mine.

The power supplied to the gold factory in Youga is assured by the Ghanaian electricity network (located 11km from the site) but also by a hydraulic dam built on the Nakambe River. The SDMO power plant, made up of six 1,900kVA generating sets and one 88kVA www.africanreview.com

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Machinery

MINING

generating set are used during power cuts, as a back-up to the existing installations. If there is a break in the power supply from the network, the entire site is secured, including the rotary crusher and ball mills.

Brazil In Salvador de Bahia, a Brazilian oil company operates two drilling sites equipped with SDMO generating stations. The whole of the rig is mobile to enable boreholes to be drilled on various sites. Each site is equipped with a station made up of 4 off 1,540 kVA generating sets in EUR40 container and of an X715K standby set. The main sets are equipped with an MTU12V4000G63 engine and a Leroy Somer 50.1VL10-690V alternator. Three of these sets operate 24 hours a day, to power the drilling rig, which enables boreholes to be drilled to a depth of 2,800 metres. The fourth set, already configured for this installation, backs up the other three in the event of failure of one of them.

The standby set, for its part, makes it possible to power the safety installations again in the event of failure of the generating station. The control/operating part is provided thanks to Kerys panels in A633 configuration installed on each set

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In Ghana’s Youga, the SDMO power plant, made up of six 1,900 kVA generating sets and one 88 kVA generating set are used during power cuts, as a backup to the existing installations

and connected to the customer distribution container.

In France, certain automated extractor conveyors, on sites, are equipped with SDMO generating sets. These generating sets, which role consists in supplying enough energy to enable the extractor to operate, were designed according to very

specific instructions. Since these generating sets had to be mounted on machines comprising a tracked vehicle and a hopper (designed to receive the rubbles), their dimensions had to be reduced not to disturb the operation of the machines. The other main constraint consisted in the vibrations produced by the extractor. â–

African Review of Business and Technology - September 2014

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SOLUTIONS

Equipment Joest introduces SWECO’s mineral processing products in Africa South African company Joest has announced the addition of the full SWECO range to the company’s comprehensive product line-up available from June 2014. This follows Joest entering into an exclusive licensing agreement for the marketing and distribution of SWECO round separators and spare parts in 2012.

Kim Schoepflin, MD of Joest, said, “The licence agreement offered Joest access to marketing and applications know-how, including training,” adding that Joest engineers in South Africa have received advanced training from SWECO. The full SWECO range includes Gyramax sifters, rectangular separators, turbo-screen separators, grinding mills, Sta-Sieve stationary screening devices, PharmaASep equipment, hydrocyclones and centrifugal separators. The agreement between the two companies opens doors for both on the continent facilitating access to numerous applications across varied

industry sectors, from mining and minerals processing to food and beverage, pharmaceutical, pulp and paper and plastic.

SWECO round separators have been a mainstay for mining and minerals processing industries and are available from Joest

Joest will supply a range of SWECO products to South Africa and 35 African countries.

“The GyraMax gyratory has become a musthave item for mineral process applications, which employ or produce granular minerals such as silica and calcium carbonate, for example. The GyraMax also has high-value material called ferro silicon or magnetite used exclusively in Dense Medium Separation (DMS).

The SWECO GyraMax gyratory sifter can boost plant productivity by means of such features as easy access to screens through hinged doors on both ends, which simplifies screen changes.

“With the GyraMax, you can change any screen at any level of the machine from either end, without disturbing the other screens. Of course, if you want to change the screen through the top cover, this is also possible. However, there is no longer the need for overhead lifting gear in order to remove a heavy cover,” the MD said.

BKT ramps up international tire sector Specialty tires manufacturer Balkrishna Industries Limited (BKT) is one of the leading manufacturers of off-highway tires (OHTs). More than 90 per cent of it tire production is exported to over 130 countries across five continents - Europe, North and South America, Africa, Asia and Middle East.

“The competition is growing across the world. Even from India, other tire companies are following BKT’s activities very closely,” said Arvind Poddar, chairman and managing director of BKT. Poddar said that BKT is in the specialty tire category, which is meant for agricultural, industrial, construction, mining sectors and other offthe-road applications. These applications have been termed as OHT applications. Hence, he said that there is no direct competition for them.

“Our policy is very clear; currently we are at six per cent of the world market share in OHT and with the new capacity will take us to 10 per cent by 2015.”

Rajiv Poddar, executive director at BKT, added that currently around 80 per cent of the company’s sales come from replacement market but going forward BKT aims to increase the quantum of sales from OEMs. According to the executive, BKT is more active in the export market rather than domestic. The company had initially started out as a manufacturer for Indian tires but because many of the raw materials imported, it shifted its focus towards exports. Currently, a major chunk of BKT’s revenues are generated from the export requirements BKT provides 2,100 different stock keeping units (SKUs) for various kinds of applications. They have tires from five to 54-inch rim diameter.

“We have products available for the traditional vehicles like implements,

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African Review of Business and Technology - September 2014

trailers, forklifts, etc. to the technologically advanced machines like high horsepower tractors, combines, harvestors, GPS controlled vehicles, articulated dump trucks, high-speed cranes, sophisticated port vehicles and container handlers, etc. For the high power tractors we have the latest IF”technology tyres which can be used at low pressure on the field as well as the road,” the MD said.

Poddar said that a new plant, with an investment of US$375mn, will be fully operational by Q4 2014 in Bhuj. This plant is spread across 300 acres with modern technology and will enhance the total capacity by 75 per cent. Current capacity is about 475 metric tonne per day. He added that BKT will invest about US$50mn every year to upgrade the plant facilities.

The company will also launch the Ultra Large OTR radial tires - the 27.00 R49 and later the size will go up to 51-inch - for mining applications. www.africanreview.com

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SOLUTIONS

Atlas Copco’s new rammers make compaction work easier Completely redesigned for easier handling, more uptime and longer service life. Atlas Copco offers new rammers. The LT5005 and LT6005, which are in the 50kg and 60kg weight class, are powered by Honda engines and are designed for compaction work in confined areas.

One of the major changes is the slimmer design that facilitates handling close to walls, posts or in narrow trenches.

“The new design in combination with reduced weight truly improves handling and we kept the compaction efficiency on the same high level,” says Pavel Levshin, product line manager.

“Operator safety is equally important. The effective vibration-absorbing construction of the handle keeps hand/arm vibration low.”

The new steering bow comes with rollers in the front and single lifting point for easy and safe handling on the worksite. To prevent unnecessary wear to the shock absorbers an

integral lock is activated during lifting and transport.

The new large air filter can be changed without using any tools. As an option it can also be fitted with an indicator showing when to change filter.

The indicator is reset by a push of a button. To assist in keeping track on service intervals an hour meter is now also available as an option.

“The use of reliable four stroke engines for easy start-ups and low emissions is a given. The same goes for the throttle control with three fixed positions that prevents excessive wear to the clutch and saves fuel by eliminating the risk of leaving the throttle half open. The air breather is now an automatic function to facilitate operation.” concludes Pavel Levshin.

Atlas Copco rammers are versatile compaction tools developed for work on cohesive and granular soils, e.g. for repair and improvements to trenches, ditches, backfills and foundations.

They are easy to handle in every stage of operation and reliable in all conditions – and work equally well regardless of when and how often they are used.

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