BE African Infrastructure Edition

THE TEAM RESEARCH

THE TEAM RESEARCH

THE TEAM

Abi Abagun abi@bus-ex.com

RESEARCH

Wisner Gomes w.gomez@bus-ex.com

Wisner Gomes w.gomez@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Fernando Ruiz f.ruiz@bus-ex.com

Maria Cobano m.cobano@bus-ex.com

Maria Cobano m.cobano@bus-ex.com

Tayo Akanbi Tayo@bus-ex.com

Joseph Philips j.philips@bus-ex.com

Joseph Philips j.philips@bus-ex.com

Joseph Philips j.philips@bus-ex.com

EDITORIAL

EDITORIAL

Mame Coumba Gaye m.gaye@bus-ex.com

Editorial Michael Minihan m.minihan@bus-ex.com

Editorial Michael Minihan m.minihan@bus-ex.com

EDITORIAL

CREATIVE

CREATIVE

Editorial Michael Minihan m.minihan@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

CREATIVE

Karen Teh k.teh@bus-ex.com info@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

SUBSCRIPTIONS & ENQUIRES

Karen Teh k.teh@bus-ex.com info@bus-ex.com

SUBSCRIPTIONS & ENQUIRES

SUBSCRIPTIONS & ENQUIRES

Karen Teh k.teh@bus-ex.com info@bus-ex.com

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Senwes From The Farm Gate to The Mill Door

REG

Rwanda Energy Group Powering Rwanda's Massive Leap Forward

ZOHR

Zohr Gas Field Turning Point for Egyptian Prosperity

GTA Greater Tortue Ahmeyim LNG Project A New Horizon off the coasts of Senegal and Mauritania

LDC

Lucara Diamonds Corp

RTDA Rwanda Transport Development Authority

Central to Rwanda`s Ambitions

DART Dar-es Salam Rapit Transport

JNIA-(DAR)

Julius Nyerere International Airport

Developing East and Central Africa`s Lates Aviation Hub

It has been over a decade since Business Excellence (BE) fi rst ran a feature on Namibia Power (NamPower). At that time, the company was focused on delivering the Caprivi Link Interconnector (now known as the Zambezi Link Interconnector), a N$3.2 billion project which would connect Namibia’s electricity network with its northern neighbours, enabling it to trade directly with them. Delivered in 2012, the company has now set its sights on more ambitious targets.

In a recent interview with NamPower’s Managing Director , Kahenge Haulofu, we had the opportunity to discuss the scope of these ambitions, against a backdrop of often challenging conditions. Mr. Haulofu was kind enough to talk us through the projects underway at NamPower and how they will continue to contribute to electricity access and stability in Namibia.

What emerges quite clearly is the central role that NamPower plays in Namibia’s movement to prosperity.

A Changing Energy Mix in a Changing Environment

In the time since BE’s last engagement with NamPower, its work has contributed to the country’s electricity access evolving from around 45% of the total to approximately 50%. Despite the progress, Mr. Haulofu knows that the

company has its work cut out: “The Minister of Mines and Energy has set Namibia a target of adding 220MW of generation capacity between 2019 and 2023, and 150MW of this has been allocated to NamPower.”

He continues: “Our intent is to develop six renewable energy generation projects under our strategic pillar of ‘ensuring security of supply.’ The introduction of these projects will significantly change NamPower’s energy mix from traditional sources of energy, and over

The Minister of Mines and Energy has set Namibia a target of adding 220MW of generation capacity between 2019 and 2023, and 150MW of this has been allocated to NamPower.

SGB-SMIT POWER MATLA (PTY) LTD

SGB-SMIT POWER MATLA is the largest power transformer manufacturer in Sub-Saharan Africa and has more than 75 years of local South African history - backed by the global strength and expertise of the SGB-SMIT Group, spanning more than 114 years. The company has the capability to design, manufacture, test, install and commission a wide range of power and distribution transformers within the two manufacturing plants located in Cape Town (distribution) and Pretoria (Power). The company has a fully equipped laboratory in Pretoria, with testing capability for materials testing (including transformer oil) and also supports external clients.

The Pretoria plant has a manufacturing capacity from 5 MVA 66kV up to and including 800 MVA 420 kV and incorporates power and furnace transformers, rectifier transformers, traction transformers, shunt reactors and related equipment. The production facility also includes a fully accredited transformer testing facility where all transformers manufactured are tested according to international standards (IEC 60076). This recently installed test equipment has been designed to handle the largest high voltage transformers capable of being produced within the factory. The test facility can also test transformers according to ANSI specifications. Special tests are also available on customer request. This in-house testing facility represents a significant strategic advantage and is currently the largest facility in Africa.

The factory in Cape Town, known as Distribution Transformers, manufactures distribution

transformers from 16 kVA to 5 MVA 66 kV; miniature substations; LNERs; NECRTs and other related equipment.

Every SGB-SMIT POWER MATLA product is custom-made from standardised design elements and uses uniform manufacturing operations. This flexible, but well-coordinated approach ensures the highest quality of design and construction for all transformers and makes the best possible use of the valuable knowledge and experience gained over the years and best practices developed.

www.sgbsmitpowermatla.com

SOLUTION THE RIGHT TO ELEVATE YOUR BUSINESS

BARLOWORLD NAMIBIA (PTY) LTD

Service is the foundation on which Barloworld Equipment was built, and the culture of customer support has been our primary focus in Namibia. Our reputation has not been on selling equipment alone, but on providing the best solutions for our customers’ business needs.

Our goal looks ahead, not only to the future of our business, but to the success and sustainability of your business.

We believe in mutually beneficial partnerships that leads to working as one and walking the journey together.

We have a Product Support department which seeks to develop innovative and effective equipment management solutions for your business, providing a wide range of support services, world class facilities and dedicated service engineers.

You can rest assured that as you walk the journey, you don’t have to walk it alone. We are here, at your service, to support your business growth.

time decrease the country’s dependence on energy imports.” This is of critical importance: About 60% of Namibia’s electricity is still imported - down from about 80% a decade ago.

Did you know?

About 60% of Namibia’s electricity is still imported - down from about 80% a decade ago.

Mr. Haulofu outlines in some detail NamPower’s intent to develop the six renewable energy generation projects under its strategic plan. Two of the six projects will be implemented by Independent Power Producers (IPPs), whereby NamPower will be off-taker, while the four projects will be owned and operated by the company, and primarily funded from NamPower’s own balance sheet.

He says: “The IPPs are the Khan 20MW solar PV project, on which construction started in March 2022, and the commercial

operation date is expected in the third quarter of 2023, while the 50MW Wind Project, is currently under evaluation. We’re very close to awarding the contract to the successful bidder, after which we’ll sign the project agreements. The financial close on this project is also expected in the third quarter of 2023.”

The four projects, to be fully owned and operated by NamPower are the Omburu 20MW Solar PV Project (completed in March 2022), a 40MW Wind Power Project (planned for completion in October 2024), a 40MW Biomass Power Project (planned for completion in second quarter of 2025), and the 50MW Anixas II, Firm Power Project, where detailed engineering is already in progress, and the completion of the projected is expected in December 2023.

MPAMOT enhances

access to affordable, reliable, sustainable, energy in Namibia

According to a recent report on the achievement of the United Nations Sustainable Development Goals, the world is making progress towards Sustainable Development Goal 7: Affordable and clean energy Unfortunately, 789 million people in predominantly sub-Saharan Africa, are living without access to electricity and millions have limited or unreliable energy access.

One of the countries that has taken great strides to enhance energy access, energy efficiency , and renewable energy is Namibia. NamPower developed the flagship 20 MW photovoltaic (PV) plant in Omburu, Namibia. The plant was developed by the joint venture partners HopSol Africa and Tulive Private Equity.

MPAMOT Pty Ltd and Mott MacDonald Limited are the owner’s engineers for the project, which will service nearly 20 000 homes.

Team members include Alberto Cuellar (project principal), Jose Munoz (project manager), Kader Johnson (civil manager), and Kevin Bowers (electrical manager).

Our renewable energy team enabled our clients and partners to overcome barriers, address risk , and unlock value. We manage d the entire infrastructure cycle – from project inception, feasibility, implementation, and construction. Currently, we are monitoring operations.

We combine technical engineering expertise , with commercial, environmental, social and governance acuteness, and our in-depth knowledge of the energy sector.

Our services on the Omburu project included conceptual design, development of employer’s requirements, development of specifications for the request for proposal for the procurement of an engineering, procurement and construction (EPC) contractor, evaluation of the bids submitted by prospective EPC contractors, support during EPC contract negotiations, review of detailed design done by the EPC contractor, construction and commissioning supervision including permanent site presence, management of the EPC contract, acting as employer’s representative under the EPC contract, and monitoring of the initial operation phase during the defects notification period.

Over the past 25 years, MPAMOT has grown to become one of the largest black-women-owned engineering and infrastructure development consulting firms of its size, capacity, and capability in South Africa.

MPAMOT’s portfolio includes energy, advisory, infrastructure and transport eng ineering solutions.

Whether you are a public entity that is looking to bridge an infrastructure gap through private investment, a lender or investor who wishes to assess risk prior to commitment, or a project sponsor/developer that is about to submit a bid or embark on the process of securing finance for a project, or planning the design and construction of infrastructure, MPAMOT can a ssist.

For more information , visit our website: www.mpamot.com

Photograph: Fred Bailey, project manager NamPower; Kevin Bowers, electrical manager; D Gertzen, chief operating officer, MPAMOT ; Iyaloo Nangolo, HopSol Africa/Tulive Private Equity joint venture partner

The four projects, to be fully owned and operated by NamPower are the Omburu 20MW Solar PV Project (completed in March 2022), a 40MW Wind Power Project (planned for completion in October 2024), a 40MW Biomass Power Project (planned for completion in second quarter of 2025), and the 50MW Anixas II, Firm Power Project

Mr. Haulofu makes no secret of his enthusiasm for these projects. He notes: “All of these important projects are at an advanced stage. Furthermore, several transmission projects which were also approved as part of our corporate strategy and business plan will be delivered in the next five years to strengthen Namibia’s national grid, and to dispatch the power generated from these six new generation projects to the end customer.”

Dealing with COVID-19

NamPower continued to add to Namibia’s electricity connectivity over the past two years, despite being in the midst of the COVID-19 pandemic. Mr. Haulofu says: “I believe that there is no business that has not been impacted by COVID19. NamPower was not spared as it was compelled to adjust its way of doing business. The systematic impact of COVID19 and the lockdown put severe pressure on the operations of the company and the national economy.”

He adds: “For example, the country’s already challenging economic situation combined with the impact of the COVID-19

pandemic on the economy, negatively impacted NamPower’s debtors’ collection days. Right now, it takes us an average of 81 days to collect revenue from customers, indicative of the existing challenging economic situation and the impact of the pandemic on businesses, as well as on individuals.”

Chie Wasserfall Chief Executive Officer

NamPower was sensitive to these new demands, as it experienced the harsh toll of COVID-19 at first hand. Mr. Haulofu says: “we lost some cherished employees who served the company for many years and contributed to making NamPower the company it is today.” This brought home the reality of the virus to many, and the fact that “NamPower had to adapt to new ways of operating and realising that we couldn’t go about business as usual.”

The silver lining is that the team has come through the dark times, he says: “The period also compelled staff to come up with innovative alternative solutions, in cases of lengthy turnaround time of repairs on equipment that needed to be sent out of country. A case in point, is the solution for the ever-faulty Voltage

Regulating Relays that NamPower Engineers found in-house. The Protection, Telecommunication, Metering & Control (PTM&C) team had designed, tested, and successfully implemented a simple, but reliable Automatic Voltage Regulation (AVR) solution for the Walvis Bay Substation Transformers.”

The Future

When asked about NamPower’s priority over the next five to ten years, Mr. Haulofu is unflinching in his answer: “Ensuring security of supply. We want to achieve that through optimally expanding and upgrading the company’s generation and transmission capacity, while capitalising on the opportunities presented in the Southern African Power Pool (SAPP). In

the process NamPower wants to ensure a least-cost electricity supply mix, by investing in a generation project mix and technologies that result in the least-cost electricity to customers.”

He acknowledges too, that this needs to be achieved sustainably, saying: “the region as a whole needs to focus on adding new generation plants to the grid that is dispatchable, while using local energy sources that are economically and environmentally sustainable to meet future demand growth.” This is the kind of joined-up forward thinking that will see

Senwes

FROM THE FARM GATE

If the 21st century does turn out to be the agriculture will have a central RESEARCH BY

Senwes GATE TO THE MILL DOOR

the African century as many have claimed, central part to play in the story.

Abi Abagun

If the 21st century does turn out to be the African century as many have claimed, agriculture will have a central part to play in the story. The importance of the sector has been underlined over the course of the Covid-19 pandemic, when output and prices have continued to grow. In South Africa, where diversified agricultural firm / agribusiness Senwes is based, agriculture was the only sector of the country’s economy which grew over the past two years.

For over 112 years, Senwes has been one of the leaders in South African agriculture. From its origins as a grain manufacturer at the beginning of the last century, it has grown into a truly diversified agricultural firm / agribusiness that operates across the agriculture spectrum, in financial services, input supply, and market access. Having come through the worst of the pandemic relatively unscathed, the company is now looking to the future with promise. In short, a fascinating junction for Business Excellence to conduct a company profile.

Overview

Few companies in agriculture can claim to be as diversified as Senwes. With a mandate to increase food security in South Africa, the company works across a range of functions and places an emphasis on sustainability.

“With a mandate to increase food security in South Africa, the company works across a range of functions and places an emphasis on sustainability”

Through a broad range of subsidiaries, it can provide stakeholders in the agriculture industry with inputs (grains, fertilisers, gypsum, etc.), structured and personalised finance solutions for business owners, and logistics solutions, market making services for producers, and sales of world class agricultural equipment. In short, a 360-degree approach to sustainable agriculture.

This diversification has been core to Senwes’ ability to capture efficiencies in the value chain, allowing it to continuously reinvest in its business units. Having entered into a joint venture in 2012 with Bunge, in recent years, it

bought out its partner, giving itself a platform to save costs, drive efficiencies, and enable the sector to compete internationally. The results of this strategy are borne out in the company’s remarkable financial performance: Headline revenues more than tripled, from R$2.49 billion in 2017 to R7.57 billion in 2021.

Resilience in the Face of Adversity

That this growth came in the face of a devastating pandemic makes it all the more notable. As mentioned above, its status as an essential service meant that the agricultural sector remained largely operational during

“The pandemic also coincided with South Africa’s second large maize crop yield in history - 16.2 million tonnes - and experienced strong domestic and export market sales”

South Africa’s Covid lockdowns. Even as the economy suffered from shutdowns everywhere, the agriculture sector grew by over 15%. Record crop yields in oilseed and soybean are just a couple of the highlights behind the growth.

The sector’s resilience was visible across the spectrum. The pandemic also coincided with South Africa’s second large maize crop yield in history - 16.2 million tonnes - and experienced strong domestic and export market sales. This success didn’t happen without significant commitments on the part of the largest players on the market, among them Senwes. It took a series of precautionary and preventive measures across its operations to ensure the well-being of its staff, clients, and other stakeholders, including the development of a Covid-19 committee to oversee the measures.

Sustainability

Senwes realises that its growth cannot come at the expense of sustainability. The efforts that it makes to reduce its carbon footprint and energy consumption are testament to that. Its annual Sustainability Report outlines a series of initiatives taken by the company that include the installation of an improved Building Management System (BMS), increased use of efficient energy lighting systems, and a solar PV infrastructure in company buildings, all of which combined has already saved over 5,000 tonnes of CO2.

The company also tracks its outputs across a range of indicators to ensure that it’s not just continuously improving on its sustainability performance, but also showing accountability. A sophisticated measurement system allows it to measure indicators such

as energy generation and consumption, CO2 output (generated and saved), and water consumption throughout the company’s operations.

Corporate Social Responsibility (CSR) also plays an important part in the company’s sustainability programme. Every year, Senwes helps approximately 300,000 South Africans, through a range of initiatives that include food donations, the construction of classrooms, and community microloans. The company’s key focus areas for CSR are education, economic and enterprise development, sports, food safety, and welfare. The company’s hard work here is exhibited by the foundation of a trust - Thobo Trust - that coordinates all of its CSR initiatives.

Looking to the Future

The coming years promise to be quite different to those that preceded them for the Senwes Group. For one, the company took advantage of lower interest rates over the past decade to make several industryshaping acquisitions. Now fully integrated, the company aims to pay down the debt, while continuing on its growth path. In additionto this, it is preparing its people and workplace so that the company continues its evolution on all fronts (#ReimagineAgriculture), including a movement towards more agile ways of working.

Senwes’ digitalisation also comes at a time when the agriculture industry as a whole is moving towards increasingly digital ways of doing business, even in rural areas. It also

intends to diversify into lower risk areas, protecting itself from volatile commodities markets, volatile weather patterns, and industry downturns. For a company which is now several years into its second century, Senwes continues to break new ground.

“Senwes’ digitalisation also comes at a time when the agriculture industry as a whole is moving towards increasingly digital ways of doing business, even in rural areas”

ENERGY GROUP

Massive Leap Forward

TThe remarkable progress made by Rwanda’s electricity sector since the turn of the millennium provides a true case study for other developing countries to learn from. World Bank figures show that just 6.2% of the Rwandan population had access to electricity in 2000, and now, according to Rwandan government data, that figure has surpassed 65%. The government’s vision is for 100% of the population to have access by 2024. No single factor has been responsible for this transformation. Rather it is the result of improved policies, coherent strategies, ambitious goals, and focus. To achieve this one company has been at the heart of its all: Rwanda Energy Group (REG), formed in 2014 as part of a wider government reform program for the country’s energy and water sector. In this article, Business Excellence takes a closer examination of what makes the REG model so successful.

History and Scope of Operations

The origins of the Rwanda Energy Group Limited and its subsidiaries, the Energy Utility Corporation Limited (EUCL) and the Energy Development Corporation Limited (EDCL) go back to 2014. A consensus emerged at the government level that to attract more investment, improve accountability, and drive performance, the corporatization model represented the best way forward. The overarching objective of REG’s creation was to develop Rwanda’s energy supply capacity to meet the country’s growing demand. The REG’s

role has been to monitor and coordinate the activities of its subsidiaries, EUCL and EDCL, developing strategies based on government objectives. The REG Strategic Plan 2019-2024, is the latest manifestation of this and acts as a roadmap for the company to bring Rwanda to full electricity access.

REG and Rwanda’s National Electrification Plan (NEP)

Access to electricity is a central tenet of Rwanda’s plan to become a middlehigh income country by 2050. As part of this, an Electricity Sector Strategic Plan

The government’s vision is for 100% of the population to have access by 2024.

Electrification of The Western Province of Rwanda by CEC Ltd.

In June 2019, the government of Rwanda put forth the National Electrification Plan, which aims to see 100% of Rwandan households with access to electricity, both on-grid and off-grid, by 2024.

Determined to play its role in contributing to said vision, EPC Africa Holding through its subsidiary CENTURY ENGINEERING CONTRACTORS (CEC Ltd) signed several contracts with ENERGY DEVELOPMENT CORPORATION LIMITED (EDCL) including three framework contracts for Construction Works for MV & LV Electrical Lines, Service Connections & Associated Civil Works Through Call Basis Framework for three different provinces. In addition to that, in August 2019 CEC signed two EPC contracts with EDCL including one titled: Plant Design, Supply, and Installation of Low Voltage and Medium Voltage Lines and Service Connections in Rutsiro and Karongi Districts, Western Province of Rwanda.

The implementation of this World Bankfunded project began with the initial scope of constructing 90 km of a Medium Voltage Line and 226 km of a Low Voltage Line, installing 71 three-phase distribution transformers ranging from 50kVA to 160kVA in different villages, and connecting 7,137 households spread across several districts. However, three amendments from conducted detailed surveys by both teams on the contract led to an increase in this scope.

The task proved difficult moving forward, with challenges such as the COVID-19 pandemic and a steep terrain affecting the positioning of transformers and mapping of line routes. Despite such obstacles, however, the mobilized workforce of skilled individuals combined with CEC ‘s experience in Distribution projects ensured the successful excavation of pits for the voltage lines, erection of steel, wooden and

concrete poles, and installation of transformer substations, among others.

As a result, 96.64 km of Medium Voltage lines and 176.85 km of Low Voltage lines were constructed, and 86 three-phase distribution transformers sized from 50kVA to 160kVA were successfully installed in different villages, connecting nearly 9,253 households to the national grid.

In addition to households, several productive users also got access to electricity, enhancing, and improving their businesses and processes. These include six health posts, six health centers, two nurseries, fifteen schools, twelve local administrative offices, twenty-one agroprocessing machines, ten commercial centers, two churches, a communications tower for MTN Rwanda, and a local Savings and Credit Cooperative Organization. Not only have these productive users been able to light their facilities and facilitate numerous dealings during evening hours, but their productivity has also risen to higher levels as they serve their communities more effectively.

Overall, access to electricity in the districts of Rutsiro and Karongi has led to a significant increase in income-generating activities among the locals, resulting in remarkable development and a constantly rising economy. It proved that the method adopted by CEC Ltd is a straightforward approach to accelerating the electrification of villages in Rwanda. Most importantly, this project provided valuable experience to all stakeholders and strengthened the partnership between EDCL and CEC Ltd, leading to an extended collaboration and commitment to fulfill the National Electrification Plan as per the Rwandan government’s target of 2024.

(ESSP) has been developed and it falls on REG to implement it. It has outlined a number of measures to provide electricity access that includes on-grid and off-grid solutions. The minute detail in this plan gives anybody reading confidence that 100% electrification is within Rwanda’s grasp.

The plan divides Rwanda first into four provinces, and then into their constituent components, such as villages, towns, and cities. Schools, hospitals, and businesses are also included. Priority for on-grid solutions is given to areas with larger usage requirements but even the smallest villages aren’t left behind. The capital city Kigali, with a population of over 850,000, has already achieved 100% electrification.

REG doesn’t rely on government policy for direction, however. Its status as a

corporation means it is constantly seeking to raise the bar. Its Strategic Plan 2019-2024 is ambitious, clear in how it intends to achieve its objectives, and even selfcritical in good measure. For example, it outlines key challenges that it faces including a high-cost energy mix, improved energy planning, high energy losses, and increasing infrastructure investment.

Did you know?

REG’s creation was to develop Rwanda’s energy supply capacity to meet the country’s growing demand

A summary of the plants brought online and in the pipeline by REG is indicative of the progress being made. These include the Nyabarongo II Hydropower Project and Rusizi III Hydro Power Plant, both coming online in 2024 and adding a combined 91.8MW to the national grid. The long-awaited Rusumo Hydro Power Plant - a joint venture with Tanzania and Burundi - is also expected to come online in 2022, adding 26MW to the national grid of each country.

Other recently completed projects include 110kV Jabana-Mt. Kigali-Gahanga and associated substations, 110 kV GasogiKSEZ sponsored by Japan International Cooperation Agency (JICA), the 110 kV Single Circuit: Mukungwa-Nyabihu, 220 KV Bwishyura-Kigoma-Rwabusoro, 110 kV Rukarara-Kilinda, 220/110 kV

Mamba-Rwabusoro-(110kV) Bugesera- Gahanga, 220 kV Kigoma-Butare-Ngozi-Gitega which are all developed by the government of Rwanda

REG is also exploring PPA as a means of financing projects. As CEO, Ron Weiss states “The private sector is a good partner for this journey, so most of the new power plants are being built by the private sector” he continues by stating “the government of Rwanda discovered a few years ago that the budget that is needed for big generation power plants will be difficult to raise, so the power stations are now being built by the private sector” These include the Shema Power Lake Kivu a 25-year power purchase agreement (PPA) with Shema Power Lake Kivu Limited (SPLK ltd) for a 56 MW net power output from methane gas. The Power plant will be located in Nyamyumba sector in Rubavu District. The first barge will provide 14 MW of electricity 15 months after the project reaches Financial Close.

Rwanda also has huge renewable energy potentials including Solar; with a potential of 4.5 kWh per m2 per day and approximately 5 peak sun hours. With 12.230 MW of installed solar energy, which comes from 5 solar power plants: the Jali power plant (0.25MW), the Rwamagana Gigawatt, (8.5 MW), Ndera Solar power

The plan divides Rwanda first into four provinces, and then into their constituent components, such as villages, towns, and cities. Schools, hospitals, and businesses are also included.

plant (0.15MW, and finally the Nasho Solar plant (3.3 MW).

With the grid currently reaching 52% of the population, and off-grid solutions reaching 48%, off-grid solutions like Solar Home System (SHS) have been adopted especially in rural areas as part of the off-grid strategy. The Renewable Energy Fund (REF) and the Rwanda Energy Access and Quality Improvement Project (EAQIP), which are being implemented by the Development Bank of Rwanda (BRD) and Energy Development Corporation Ltd. (EDCL), have launched a Resultsbased Financing (RBF) subsidy known as “RBF Window 5”. This subsidy will help up to 370,000 households in these areas afford much-needed Solar Home Systems required to power. These subsidies are rolled out through vetted Off-grid Solar Companies (OSCs) that have signed a Memorandum of Understanding with EDCL.

The Transmission Master Plan (2021-2028)

Transmission is a crucial component of the goal to reach 100% affordable access to electricity by 2025. To this end, in 2020 REG delivered Rwanda’s first Transmission Master Plan, outlining how it will develop this network over an 8-year period. Notably, the three pillars of this master plan were i) ensuring the security of electricity supply, ii) ensuring connectivity with neighbouring countries to foster regional electricity trade, and iii) ensuring

the reliability, quality, and resilience of the Rwandan grid.

The plan is a management roadmap that outlines a series of achievable objectives for the company, considering changing demographic patterns in the country. Thus, the plan recognizes the need for the transmission network to be developed and extended to accommodate new loads, power stations, substations, and other network strengthening elements.

“The private sector is a good partner for this journey, so most of the new power plants are being built by the private sector”

Covid-19 Response

Covid-19 posed signifi cant challenges to REG on the operational side. A government-imposed lockdown in the country, similar to that experienced in many others, reduced the mobility of its staff and other stakeholders. During this two-month lockdown, capital works on the company’s electricity projects also stalled, meaning the company faced a catch-up period when the restrictions were lifted.

Measures implemented by REG included installing living quarters within construction sites for employees during the lockdown. Everybody was also provided with instructions on how to operate, hygiene masks, and the necessary sanitary measures. Funding of €91,4 million from the International Development Agency (IDA) also provided a financial cushion during this period, as well as to help the broader goal of improving the organization and reaching full electrification.

Partners and Suppliers

To achieve the speed of transformation that REG proposes, it leverages a host of partners and suppliers - nearly all of them of local origin. On the engineering side, it works with companies like SABA Engineering PLC, Hexing Electrical Company, and Patronics Services (Rwanda) Limited, a provider of electrical engineering services. Studio ING. G. Pietrangeli is also closely involved with the engineering operations of the company’s hydroelectric power plants.

In terms of energy providers and experts, REG works with Akagera Business Group Limited, and Saudi Arabia’s Elemac Limited (for its energy management solutions) as well as other suppliers including Intersec for its security services, Afrilott - a subsidiary of EPC Africa - for its transport and logistics services, Real Contractors for construction services, and MUA Insurance for its sophisticated insurance products.

The Future

When Rwanda achieves its aspiration to become Middle Income Country by 2035 and High-Income Country by 2050, REG will be the one powering it by achieving universal connectivity by 2024. As Ron Weiss, CEO of Rwanda Energy Group (REG) states “it won’t be easy but it is achievable”. The commitment of REG’s management, its 1400-strong staff, and strategic partners MININFRA, MINECOFIN, and other private sector partners will ensure this is achieved and achieved on time. Already REG is at 70% of its goal with several projects in the pipeline to help meet its 2024 target.

REG’s main mission remains the satisfaction of its customer and its strategic plan outlines a string of initiatives

including providing good quality and stable electricity, reducing costs to make electricity more affordable, improving local staff capacity, increasing the participation of women in its workforce and improving the overall service delivery to its customers

The short history of REG shows that these challenges will be overcome. Under Ron Weiss’ direction, REG and its 2 subsidiaries have made great strides in turning around the power sector in the country. It has expanded its energy mix, reducing its dependence on fuel, and embraced innovation in both the area of financing and the adoption of technologies. It is also embracing and exploring all available resources to develop sustainable and scalable solutions including hydro, gas,

solar, wind, and biomass. REG has shown commendable leadership that other African countries with similar challenges can learn from with its holistic approach which combines a centralized and decentralized strategy for generation, transmission, and distribution creating better access to sustainable electricity for the people of Rwanda

REG

PO Box 537

 +250 788385025

ZOHR GAS

Turning Point for Egyptian

RESEARCH BY JOSEPH

ZOHR

ZOHR GAS FIELD

Egyptian Prosperity

Given the enormous mineral resources in the Middle East in countries such as Saudi Arabia and the UAE, it may surprise some to learn that the first major hydrocarbon producer in the region was Egypt. The country’s oil production goes as far back as the second half of the 19th century, at a time when it was both energy self-sufficient and an exporter of hydrocarbons. Even today, oil and gas production is the single largest economic activity in the country.

Italian energy giant ENI has a presence in the country for over 60 years. Its work with the government of that time has since provided a blueprint for several oil producing countries on how to work with foreign companies. Its 2015 discovery of the Zohr field - the largest ever gas discovery in the Mediterranean - was a boon for the country and its people. Business Excellence decided to take a closer look a find that points to a far more prosperous future for Egypt.

Overview

ENI’s Zohr finding in 2015 is remarkable not simply because of the scale of the fi nding, but because of its historical context. In March of that year, the country’s government announced that it would no longer be energy self-suffi cient owing to a booming population and dwindling supplies. For a country that prides itself on its oil and gas industry’s heritage, it was a hit: The benchmark stock index, the

Zohr field - the largest ever gas discovery in the Mediterranean

EGX30 fell by around 30%, as investors got the news.

Just six months later, ENI had discovered Zohr – roughly translated to be “A Muslim prayer offered to God at the noon hour of the morning”. ENI capitalising in on a bet that saw it raise $70 million to fund the exploration in a territory that Royal Dutch Shell had previously drilled for 10 years without success. Little wonder that ENI’s CEO at the time, Claudio Descalzi, referred to the find as “a very emotional moment.”

Prime Minister Mostafa Madbouly also shared similar emotions stating “Before operating this field, we were importing natural gas. The Zohr field enabled Egypt to meet its domestic needs and achieve

an export surplus” In addition to bringing Egypt back to energy self-sufficiency, the success of the Zohr fields has reignited global oil industry interest in the country.

The Zohr field itself is spread over approximately 100km2 within the offshore Shorouk Block, nearly 200km from Port Said, Egypt. The water depth in the field area is 1,500 metres and its reservoir extends for a further 4,000 metres below the sea bed. In total, Zohr is estimated to contain around 30 trillion cubic feet (Tcf) of recoverable gas reserves, providing enough gas for Egypt for over 20 years.

Egypt for over 20 years.

In terms of the on-site infrastructure, the

“Before operating this field, we were importing natural gas. The Zohr field enabled Egypt to meet its domestic needs and achieve an export surplus”

TECHNOLOGY DRIVEN EPC CONTRACTOR

Our roots are in our technological background open to innovation and digitalization. As part of Maire Tecnimont Group, we work to provide unique expertise using our proprietary technologies and applications to ensure sustainable and environmentally friendly solutions for energy transition.

A LEADING EXPERTISE TO IMPLEMENT OIL REFINING PROJECTS AND TO UPGRADE EXISTING REFINERIES TOWARDS MINIMIZATION OF CO2 FOOTPRINT

WELL RECOGNIZED LEADERSHIP IN LICENSING HYDROGEN, SULPHUR AND TAIL GAS TREATMENT TECHNOLOGY

MORE THAN 500 PROJECTS COMPLETED SINCE 1971

KT, a company of Maire Tecnimont Group, is an international EPC Contractor in the Oil&Gas and Refining Industry, as well as one of the most well-known Licensors of Sulfur Recovery Units (SRU) and Hydrogen Production Units (HPU). Our approach to the market is based on these distinguishing characteristics: flexibility and resilience, client-oriented view, design-to-cost approach, high priority of quality and safety, focus on environmentally friendly solutions. Environmental protection is in our DNA, since the SRU’s intrinsic function is to mitigate the impacts deriving from the treatment of hydrocarbons. Today, we continue in the same line, supporting our sister company NextChem in the implementation of their large basket of green technologies for the energy transition.

Our contribution to the success of the Zohr Project goes in the direction of the gas-to-power strategy of African countries such as Egypt, where gas is an enabler of the energy transition. Our collaboration with ENI in this milestone project dates back to 2015, when KT was

selected by Petrobel (a JV between ENI and EGPC) to supply the SRU for the Phase I of the Zohr Field development.

It was a super-fast-track project: fully modularized 4xClaus and 2xTGT Units with approx. 50 TPD capacity, 50 modules, 600 tons of piping, and 1,200 tons of steel all needed to be delivered in 12 months.

We d ecide d to take the challenge, relying upon our significant experience on the ground and involving our strategic vendors and subcontractors to set up an efficient Project Execution Plan.

The result was a great success and KT was selected again by Petrobel to supply 5 modularized MEG Recovery Units (MRU) in 2021 for the subsequent development phases.

The key success factors were two: setting a clear and common goal, i.e. the mandatory completion on time, and establishing a mutually trusting environment between Client and Contractor. We regard this as a model to be replicated in all of our current and future projects.

fi eld currently has 13 production wells with a further 200 being planned over its production life. Production is controlled by a shallow water platform located approximately 60 kilometres from the coast. The subsea installations at the field include manifolds, subsea and topside control systems, a pressure protection system, and tie-in systems. Its gas is transported through two 216km-long and 30in-diameter pipelines connecting to an onshore gas treatment facility at El-Gamil.

Technology

For ENI, the Zohr discovery was an apt reward for the near $450 million investments that it had made in state-ofthe-art exploration technology, including constructing a data centre in Milan that interpreted data generated in the field. This was the culmination of a shift at ENI that brought together a CEO willing to take calculated risks and back his exploration team, leading geologists, and a strong

Port Said, Egypt

strategy that emphasized getting oil and gas to the market quickly. It paid off. The field was already producing by December 2017 - quite incredible given that the final investment decision (FID) was made less than two years before. This marked a new record for this type of deposit and ultimately leading to Zohr winning the prestigious IPTC’s Excellence in Project Integration award. The project success could also be measured with output; thanks to Zohr, Egypt announced record liquified gas exports in 2021.

Diversifying Management

The attractiveness of the project inevitably attracted interest from some of the biggest players in the oil and gas communityeager to participate in the region’s most exciting gas project in decades. While the initial running on the project was all ENI, the consortium of investors behind the project now includes the likes of BP, Rosneft, and Mubadala Petroleum, all of which came on board in 2017, underlining

The Zohr field itself is spread over approximately 100km2 within the offshore Shorouk Block, nearly 200km from

how exciting the project is. In the Shorouk Block, Eni holds a 50% stake, Rosneft 30%, BP 10% and Mubadala Petroleum 10% of the Contractor’s Share (where Eni, Rosneft, BP and Mubadala Petroleum are collectivity the Contractor).

Petrobel is responsible for executing the project, the Operating Company jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Contractor (Eni and its partners) and the state company Egyptian Natural Gas holding Company (EGAS).

Project Partners and Suppliers

World class project sponsors usually mean world class partners and suppliers, and on this count, Zohr is no different. The nature of the project meant that most of

Zohr won the prestigious IPTC’s Excellence Award

the preparatory work was carried out underwater, calling for companies with highly specific skillsets. For example, the project’s engineering, procurement, construction, and installation (EPCI) contract was awarded to Saipem, who was supported by Norwegian subsea contractor Havram by providing subsea umbilicals, risers, and flowlines. On the Zohr North development, Havram installed 100 miles of umbilical product in over 4,600 feet of water depth.

Aker Solutions was awarded the contract to deliver approximately 180 kilometres of steel tube umbilicals that connected the subsea wells to the off shore platform. Bonatti handled the electrical and instrumentation works for the project. The project’s autonomous underwater

vehicles (AUV) were supplied by UTEC, a subsidiary of Acteon. OneSubsea was awarded a $170m contract to provide subsea production systems for the first phase of the project development in June 2016, Petrobel was the main contractor for the second pahse and Baker Hughes, was awarded the contract to provide its innovative subsea production systems for phase two of the gas field, which began in September 2017.

Elsewhere, support work contracting services were supplied by Toubar Contracting Company and Petroleum Marine Services (PMS). A range of oil and gas platform services were also provided by SAPESCO, Spina Group, DeepTech Oil Services, Borets International, KT-Kinetics Technology was awarded a contract extension of an existing EPC project of gas monetization. Other auxiliary technology

services were contracted out to National Technology Cairo and Golden Light For Electrical Supplies.

An Inflection Point for Egypt

Claudio Descalzi, CEO of Eni, recently met with Egypt’s President, Abdel Fattah el-Sisi, and the Minister of Petroleum and Mineral Resources, Tarek El-Molla, to discuss Eni’s activities in the country as well as areas of common interest and collaboration, all in relation to Egypt’s vision of becoming a regional gas hub by sustaining domestic demand and LNG exports opportunities by leveraging existing LNG Plants. Eni’s commitment to supporting local production through an aggressive exploration and development campaign (Eni has won five new exploration licenses in Egypt), as well as accelerating the decarbonization of its operations and developing CO2 capture and storage (CCS) and hydrogen production projects was also tabled.

In the future, the discovery of the Zohr field will almost certainly be seen as the moment that Egypt’s fortunes took a dramatic upward turn. Even during the Covid-19 pandemic, the funds generated by Zohr enabled the government to provide enough funding to allow the economy to continue growing. Few projects can claim to such an impact. With a very short period, Zohr has already proven to be a true inflection point for the prosperity of Egypt and its people.

GREATER TORTUE AHMEYIM

A New Horizon off the coasts

RESEARCH BY JOSEPH

GTA

AHMEYIM LNG PROJECT

coasts of Senegal and Mauritania

JOSEPH PHILIPS

Liquefi ed natural gas (LNG) has been universally recognized as a stepping stone in the energy transition. Thanks to its 25% lower carbon emissions than traditional fuels, LNG finds are now usually treated with more fanfare than the discovery of oil wells. It is wholly understandable in this context then, the enthusiasm that surrounds the Greater Tortue Ahmeyim (GTA) LNG project off the coast of Senegal and Mauritania. Between 2014 and 2017, an estimated 15 trillion cubic feet of gas were found in the waters of the two West African nations, a find large enough to justifiably call the region a ‘future hub of world LNG production.’ As the first phase of the project nears completion, Business Excellence decided to provide an overview of a project with the potential to transform the long-term fortunes of the region and the citizens of Senegal and Mauritania.

Overview of the GTA Project

The statistics that define the GTA project confirm that it has the potential to transform West Africa into a new global energy hub. The 15 trillion cubic feet of gas found means that production can continue for at least 30 years. One of the project’s sponsors, bp, believes that extensions of the project could locate up to 100 trillion cubic feet of gas - pushing the region into the top 15 LNG fields in the world. Located around 115 kilometres from the

coast of Senegal and Mauritania, phase one of GTA will produce around 2.5 million tonnes of gas per year. The project incorporates a large-bore gas subsea production system (SPS), which is the deepest subsea system installed by bp to date. The investment of bp (60% stake) and its partner on the project, Kosmos (30% stake), in phase one of the project is estimated to have been in the region of $3.6 billion. The national oil companies

The statistics that define the GTA project confirm that it has the potential to transform West Africa into a new global energy hub

Petrosen and SMHPM complete the partnership with a combined 10% stake.

Key Facts

• GTA is a gas project on the maritime border between Mauritania and Senegal.

• The field is located 120 kms offshore, in a water depth of 2850m, the deepest subsea infrastructure in Africa.

• Phase 1 is the first step in establishing the basin as a world-class gas province and major LNG Hub.

• It is set to produce around 2.5 million tonnes of LNG per year.

• Phase 1 is designed for over 20 years of production, with the potential to extend.

• It is granted the status of National Project of Strategic Importance by the Presidents of Mauritania and Senegal.

• The subsea network includes 310km of linepipe, 91km of controls umbilicals, 80km of fibre optic cables and over 100 fabricated structures connecting the wells to the FPSO and then to the Hub.

Milestones Achieved

In February 2022, a major milestone was reached on the road to delivering the first phase of GTA: a breakwater comprised of 21 concrete caissons - totaling 340,000 tonnes - was completed. Each of the caissons weighs more than 16,200 tonnes,

with a length of 55 meters, a width of 28 metres, and 28 metres in height. The breakwater is crucial as its will protect the project’s key infrastructure - the floating LNG vessel, its utilities, and accommodation - from the Atlantic.

The completion of the breakwater at GTA also frees up the team behind construction to start pipe rack outfitting and equipment installation and testing. As of May 2022, the project is approximately 75% complete, with mooring piles for the floating production storage and offloading already installed off shore and the vessel itself undergoing dry tests in the shipyard. The hub terminal is also on schedule, and drilling on top holes has been completed on two of the four initial wells. In short, everything is on track for the first gas in the latter half of 2023.

Overcoming COVID-19

The fact that the project is being delivered over a year after the initially planned deadline is a consequence of Covid-19, although perhaps in a more roundabout fashion than you might expect. In mid2021, the project’s FPSO suffered a 3-month delay owing to labour shortages at the COSCO yard in China, where it was being constructed. When work resumed, further delays - albeit ones that the project sponsors were happy to digest - occurred as bp and Kosmos insisted on the highest standards of safety and sanitation possible.

Broad Impact

The field is located 120 kms offshore, in a water depth of 2850m, the deepest subsea infrastructure in Africa.

Our company AMC Travaux, is specialized in providing outsourcing services and local content in the fields of Oil & Gas, energy, construction, mining, and infrastructure. We have highly contributed to the development of the GTA Project

By 2026, Mauritania will have a total production capacity of 10 million tons of LNG annually GTA is expecte d to produce 2.5 million tons of liquefied gas annually after the first phase. Moreover, The follow-up BirAllah project is expected to contribute to doubling Mauritania's gas reserves six times, given the presence of more than 50 trillion cubic feet in this project. With these discoveries Mauritania will be able to partially compensate the dependence of European countries on Russian gas that is affec ted by the Russia-Ukraine war.

AMC Travaux has benefited from working with the GTA project and we are focusing on training our employees working in the field of Oil & Gas to perform well with all due respect to HSE standards

With the support of Oil & Gas project stakeholders in Mauritania, we are willing to continue to develop the skills of our employees and encourage them to face upcoming significan t projects in Mauritania such as BirAllah Gas project and hydrogen projects within the next decades.

Beyond our motivation to make profit and to contribute to the development of local content, we believe that we are responsible as human beings to preserve our planet for future generations by contributing to the big shift of energy resources in order to help the world meet its commitment within the COP2 1 agreement signed in Paris.

What scale of impact does this promise? Immense. It’s also worthwhile to emphasize that bp and Kosmos bring significant combined experienced in maximizing the impact of projects like GTA in region which they domiciled. Before the project has even started, it has initiated a series of community engagement program in both Mauritania and Senegal. Consultation with community leaders regarding how the project will and can impact the communities from a socio-economic and environmental perspective has led to programmes including that in St. Louis, Senegal, where local women received training in fish processing and a “mobile education” programme that has contributed over 1300 equipment and benefited over 8000 students.

Did you know?

It is granted the status of National Project of Strategic Importance by the Presidents of Mauritania and Senegal

giving 49 participants an opportunity to be trained locally and internationally (Forth Valley College in Glasgow, Scotland), developed, and prepared to work safely and compliantly on GTA phase-1 operations over the course of four years. Another 8 masters’ students have also been sponsored by bp to be trained in Malaysia (INSTEP and PETRONAS) as well. These programmes are particularly very important as it helps builds the long term capability required to develop the energy industry in Mauritania and Senegal. A community health program has also been founded.

bp has also set up a national technician apprentice programme which is currently

Local content engagement is another important element of this project. Though bp and its parties come with international world class experience the GTA team will be engaging well established providers in the both countries and the region as well. The project supplier portal was developed to encourage local content participation

Over the course of the project life, it is conservatively estimated that GTA can deliver $80-$90 billion in revenues to Senegal and Mauritania. To put this figure in context, in 2020, the combined GDP of both countries was somewhere in the region of $31 billion. So $90 billion over 30 years would mean a boost of around 10% to each of the economies and their populations. To reiterate, these figures are conservative.

What scale of impact does this promise? Immense. It’s also worthwhile to emphasize that bp and Kosmos bring signifi cant combined experience in maximizing the impact of projects like GTA in region which they domiciled. Before the project has even started, it has initiated a series of community engagement programs in both Mauritania and Senegal. Consultation with community leaders regarding how

the project will and can impact the communities from a socio-economic and environmental perspective has led to programmes including that in St. Louis, Senegal, where local women received training in fish processing and a “mobile education” programme that has contributed over 1300 equipment and benefited over 8000 students.

bp has also set up a national technician apprentice programme which is currently giving 49 participants an opportunity to be trained locally and internationally (Forth Valley College in Glasgow, Scotland), developed, and prepared to work safely and compliantly on GTA phase-1 operations over the course of four years. Another 8 masters’ students have also been sponsored by bp to be trained in Malaysia (INSTEP and PETRONAS) as well. These programmes are particularly

As of May 2022, the project is approximately 75% complete

very important as it helps builds the longterm capability required to develop the energy industry in Mauritania and Senegal. A community health program has also been founded.

their interest directly with bp, learn to participate, and enhance competitiveness; and allows bp’s global procurement practitioners to use it as a source for potential suppliers.

On the environmental side, GTA also brings clean energy to Senegal and Mauritania. As of 2022, only around 60% of their combined populations have access to electricity, and less still clean access to fuels for cooking. The GTA project will not only give them a level of energy independence that they haven’t known before but also give both countries the revenues from millions of tonnes of gas exports every year, fuelling the west of

Africa with a much cleaner fuel than many had been using till now.

Suppliers and Partners

When an O&G major like bp and a highly respected partner firm like Kosmos seek out partners to work on a project like GTA, there are generally no shortage of takers. Such was the case here. The team was able to call in expertise from the likes of Petrofac, who have developed operational procedures for GTA 1, Technip Energies, a newly-formed French company that delivered the project’s FPSLO, and Havfram, a Norwegian sub-contractor of Technip’s that provided pre-installation and hook up of the subsea mooring system for the FPSO.,

The huge task of constructing the 21 mega caissons was delegated to Eiffage Génie Civil, a French engineering team that built the caissons on two Dakar sites, bringing in more than 130,000 m3 of concrete and

30,000 tonnes of steel. Its subcontractor, AMC Travaux, ensured a constant supply of rocks from a Senegalese quarry over two years, which were then used in the project’s breakwater. The subsequent construction of the jetty was delivered by the Fugro.

The fact that there were so many moving parts - and as mentioned, some delayed owing to Covid-19 - demanded plenty of multinational collaboration. Other participants who merit mention in this category include Eurogrues Afrique, Amaranth - which delivered multiple orders of centrifugal pumps for the FPSO, Nexans, and Keppel Offshore and Marine. Last but certainly not least, AMOG is supporting bp on the project’s rise verification system.

Local and regional suppliers and subcontractors were also engaged across board both countries through the project supplier portal.

The Future

The world is a different place in 2022 to the one that the team behind GTA faced when this project first got moving in 2016. Post-covid, new issues seemingly appear on an ongoing basis: war and rising inflation among them. The positive news for this corner of Africa is that LNG is a fuel with a guaranteed long-term future, and that means revenue streams and energy security for both countries for decades to come. For the world, GTA represents a new energy hub. For Senegal and Mauritania, it represents a new horizon.

LUCARA DIAMONDS

Diamond History

In November 2015, Lesedi La Rona, the world’s second-largest gemquality diamond ever found, was mined at the Karowe Mine in Botswana. The mining team behind the discovery was Lucara Diamonds (formerly called Boteti Mining), a diamond exploration and mining company founded in 2009. In less than six years, the Canadian-registered firm had made a discovery that placed it firmly in the spotlight of industry analysts. Since then, the company has proven that it wasn’t a one-off event. Karowe Mine is the only mine to have ever recorded three +1,000 carat diamonds and consistently recovers high-value +10.8 ct diamonds. Even for a mine based in Botswana, a country ranked 2nd in the world for diamond production, Lucara’s performance stands out from the crowd. Business Excellence decided to visit and explore what makes it shine.

The Karowe Mine

Lucara Diamond Corp. is a mid-tier diamond producer which owns a 100% stake in the Karowe mine. Its name, Karowe, means “Precious Stone”, and it is one of Botswana’s six diamond mines. Under the leadership of President and CEO Eira Thomas, it currently generates revenues in excess of US$230 million (2021 revenue).

Karowe Mine is the only mine to have ever recorded three +1,000 carat diamonds and consistently recovers high-value +10.8 ct diamonds

MARUNG DEVELOPMENT SERVICES (PTY) LTD

Marung Development Services (Pty) Ltd is a 100% citizen-owned company that offers a wide range of products and services of the highest quality in the mining industry value chain. The main objective of Marung Development Services is to provide drilling and blasting services, including drilling consumables management as well as mining consultancy services to its clients.

Amongst the services provided by our team of experts are the following;

• D rilling and blasting services and consultancy on efficiency improvements (optimization of drilling and blasting results)

• Mining consultancy services, including benchmarking audits and advice on Mineto-Mill.

• Mining value chain assessment and elimination of bottlenecks. Mining project management

Marung Development Services have done Auditing and Benchmarking work for Debswana Diamond Mines, and are currently providing drilling and blasting services to Lucara’s Karowe Diamond Mine.

www.mds.co.bw

Visitors to Lucara’s Karowe mine are greeted with an expression that seems to encapsulate the company mission well: “Make diamond history.” Given the context of its performance over the past decade, the statement stands to reason: the Karowe mine has become renowned in the diamond industry for its production of very large and high-value white gem diamonds - the most well-known of which is Lesedi La Rona (formerly known as Karowe AK6) which was acquired by British jeweler Graff.

The Karowe mine is well-known for producing a multitude of acclaimed diamonds. Another of which is the Sewelô; a rough diamond weighing 1,758 carats. A collaboration between Lucara, diamond manufacturer HB Company, and Louis Vuitton will see the diamond cut and turned into jewelry.

The combination of a mine rich in rare diamonds, state-of-the-art technology, and leadership that is recognized as among the best in its industry have

Under the leadership of President and CEO Eira Thomas, it currently generates revenues in excess of US$230 million

enabled Lucara Diamonds to benefit in the form of margins far above the standard. In 2022, the projected free cash flow yield is projected to be higher than 25% - high even given the industry’s upswing. Best of all, this is all done with an eye to sustainability (see below), ensuring that results in the short term always yield positive long-term socioeconomic effects for Botswana.

Expansion of Mine Operations

Did you know?

life to 2040. Thanks to this, and the company’s ability to extract more efficiently than most of its competitors, it is expected that the expansion projects will contribute approximately $4 billion in additional revenues, using conservative diamond prices.

The Karowe mine underground expansion represents the continuation of Lucara’s impact. The company announced at the beginning of 2022 that it would invest $534 million to increase the mine size, extending its

The expansion of the Karowe Mine provides further evidence of its management’s commitment to excellence. 2021 was the first year that it deferred making a divided payment to shareholders, instead using the cash to ramp up its capital investment. Shareholders will be the winners of this move, as diamond prices climb higher.

4 of the 6 board members are female, 2 of 3 executive officers are female, and 31% of the workforce

The transition to main shaft sinking began in Q2 of 2022, and the expansion is currently running on time and within budget.

Women to the Front

Somewhat against the grain in the mining industry, Lucara is unapologetic about putting women at the front of its operations. One of its co-founders and current CEO, is Ms. Eira Thomas, a Canadian executive with more than a quarter of a decade of experience in mining. She is just one of many women making waves at the firm. Another significant figure steering the wheel at Lucara is its Managing Director, Ms. Naseem Lahri. Ms. Lahri is born and raised in Botswana, a trained chartered accountant, and a seasoned executive in the mining industry working with Morupule Colliery and Debswana. Her leadership at

Lucara and in the community earned her the title of “2022 Business Woman of the Year” at the All Africa Business Leaders Awards

They and others at Lucara Diamonds are cutting a path for other women who might otherwise have believed mining was a male-oriented profession. Here, the company’s numbers speak for themselves: 4 of the 6 board members are female, 2 of 3 executive officers are female, and 31% of the workforce (unfortunately, an industryleading figure) is female. The company is actively changing perceptions about gender in the mining industry.

Socioeconomic Impact

Lucara Diamonds has published a sustainability report for the past nine years. Every year, it invests significant sums into

Lucara recently launched an online marketplace for the trading of

diamonds - Clara Diamond Solutions

ongoing and one-off projects located in and around the mine site. Although many of these have focused primarily on mitigating the impact of Covid-19 for the past two years, the company’s efforts in the Karowe Village Initiative (KVI) continued apace. Examples during the pandemic included the development of an integrated farm, a stock farm, and the commencement of a sports complex.

In terms of employment, Lucara directly employs 545 people at its mine. At the end of 2020, its total employment figure, which included contractors, was 1,108. Importantly, 99% of these were Botswana nationals, all of whom stand to benefit

from the company’s trainee employment programs, hiring from within, and longterm commitment to the country.

Overcoming the Covid-19 Challenge

The Covid-19 pandemic had a tangible detrimental effect on the diamond industry, with margins falling by as much as 40% at its height. Thankfully for the diamond industry, its recovery was V-shaped. Lucara conducted a number of business continuity initiatives during the pandemic. The most notable of these was a 24-month committed supply agreement with Europe’s large manufacturing company, HB Antwerp.

Outside of the risk-mitigating agreement with HB Antwerp, the Botswana government decreed that mining was a strategic national industry. As a result, Lucara continued working without stoppages and introduced a number of safety measures for all of its employees. These measures contributed to the company showing a 0.7% positive result rate across 2,478 tests. In addition, it made contributions to the government’s Covid relief fund and distributed food hampers, hygiene products, and first aid training to the needy.

A Mining Firm Grounded in Technology

Away from its core operations, Lucara recently launched an online marketplace for the trading of diamonds - Clara Diamond Solutions. This is the first of its kind in an industry where, until now, trading has been driven by intermediaries. Clara

recorded a sales volume of $28.7 million in 2021 (168% increase on the previous year) and it believes that within five years, the platform has the potential to generate as much cash flow for the company as its core mining operations - and even surpassing it in the years thereafter.

In a sense, this mirrors the path taken by some well-known trading firms that began acquiring mines a little over a decade ago. But the company’s commitment to infusing its work with technology can also be seen on the operations side. For example, its Karowe Mine was the first mine in the world to use XRT Technology - a method that checks for diamonds by investigating the atomic particle density - and is now considered to be the future of mining.

Strategic Supply Partners

Lucara has a range of supply chain partners that make a stellar contribution to its record as one of the world’s most productive mines. This begins with companies working on the mine’s own operations, which include the United Mining Services Group (UMS), Marung Development Services, Moolman Mining Botswana, Uzuva Holdings, and Minopex Botswana, which provides bespoke operations and maintenance services.

In terms of auxiliary services, the equipment - which the company needs to be able to fully depend on is leased or purchased from local suppliers such as Trollope Botswana, Madupi Plant Hire, Torma Sorting Mining, and Serious Systems. Malca Amit Botswana plays a pivotal role in the company’s storage and shipping of

diamonds. Finally, WEC Projects (Pty) Ltd is responsible for overseeing the mine’s water and wastewater operations.

A Bright Future Ahead

The medium- to long-term outlook for Lucara is highly positive with futures trading on diamonds showing upward momentum irrespective of the global economic challenges. As CEO Eira Thomas states “The focus on remains the underground expansion, we want to get the message out that this project is fully financed, fully sanctioned by our board and we have spent just over $150m to date of our planned $534m investment. It’s going well and what is exciting about the opportunity as it allows us to access the most valuable part of the ore body because at Kawore it actually gets richer the deeper we mine and all of our highestvalue diamonds have come from these deeper geological units so we are really

excited to be unlocking the value of the underground and we have basically demonstrated that we have more value ahead of us than behind us”.

With this expansion project, Lucara expects to mine till at least 2040 and in doing that it remains focused on maintaining a strong, healthy balance sheet and maintaining the operational excellence it is known for as it continues to run its mine safely and efficiently with its partners. Lucara is also evolving its thinking with its different approach to sales by exploring opportunities downstream and with its strategic partnerships that allow it to build demand for its diamonds and the best prices as well.

In less than a decade since the mine went live, so much has already been achieved by Lucara and its partnership with the community ensures its sustainability and growth. These are exciting times in Botswana, a progressive country with big ambitions that has a mining company to match.

GOLD MINE GOLD MINE

with the DRC JOSEPH PHILIPS

The Kibali goldmine in the HautUélé province of the northeast Democratic Republic of Congo is no ordinary mine. With 812,152 ounces produced in 2021, the combined open pit and underground gold mine is officially the sixth biggest in the world. Now into its

13th year, the gold mine is still considered to have an enormous upside: In addition to an exploration prospect pipeline that continues to expand, its business plan seems set to continue for at least another 10 years. Business Excellence decided to take a closer look.

No Ordinary Mine

Situated adjacent to the town of Doko and 210 kilometres from Arua near the DRC’s

With 812,152 ounces produced in 2021, the combined open pit and underground gold mine is officially the sixth biggest in the world

Barrick Gold estimates that the mine has been directly responsible for in-country investment in excess of $4.2 billion

border with Uganda, Kibali is co-owned by AngloGold Ashanti (45%), Barrick Gold Corporation (45%), and Société Minière de Kilo-Moto (SOKIMO) (10%), a state-owned gold mining company. To date, Barrick Gold estimates that the mine has been directly responsible for in-country investment in excess of $4.2 billion. And with policy that encourages local participation at levels as well as its continuous investment in region that figure should more than double in the next 10 years.

This extension of the mine’s life begins with the addition of the 11,000 Lode to the underground operations. The discovery of this Lode at the beginning of 2022, is located above the base of the existing shaft infrastructure. Now almost a year into its life, it continues to deliver positive results, unlocking additional value for the main, and remains open down plunge. It is indicative of the success of the ongoing exploration work being conducted by the mine’s owners.

This ongoing exploration work is happening across several fronts. Drilling is currently underway at the Mengu Hill, Agbarabo, Rhino, Zambula, and Makoro targets, all of which are showing potential as additional underground and open pit satellites. However, it would be amiss to only report on the size and scale of the Kibali mine. Equally as important, are the industry-setting standards being set by the operations.

Operational Excellence

The considerable energy required to power Kibali is sourced from its three state-ofthe-art hydropower stations, supported by new backup battery technology. This is one of the contributing factors to the mine’s 14001 environmental accreditations, another of which is its development of a new pump system, which was installed with the specifi c aim of reducing the mine’s freshwater consumption.

A NEW STANDARD FOR MINING SERVICES

The management team at Kibali also announced at the end of 2021 that its long-held plans to build a cyanide destruction plant were now underway. The work, which will reduce cyanide concentration in Kibali’s dams and improve its plant recoveries, is expected to help Barrick and its partners in Kibali to achieve International Cyanide Management Institute (ICMI) accreditation when delivered a little over a year from now.

Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime

Socioeconomic Impact

Figures from the World Bank show that 2022 will mark the 20th successive year of positive economic growth for the DRC - a remarkable statistic, given that this period

took in the global financial crisis, which saw a steep downturn in mineral prices and overall economic output, and the Covid19 pandemic (more of which later). Indeed, when Barrick Gold acquired Kibali in 2009, the DRC’s GDP was US$18.6 billion. In 2021, the fi gure was $53.96 billion.

These figures show, thankfully, Kibali is just part of a much bigger success story. But it is an important one. Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime. The mine invests in everything from exploration to road projects, staff development, equipment replacement, and of course, a series of environmental and social projects.

T: +243 81 815 1582 E: adry@minequip.biz

T: +243 81 709 6916 E: riaan@minequip.biz

On the socioeconomic side, however, Kibali’s impact can particularly be seen in the DRC’s previously undeveloped northeast - now a genuine hub of economic activity. Here, Kibali has been highly active in partnering with and mentoring local entrepreneurs, enhancing local communities, and upgrading essential infrastructure. Hiring and training at all levels of the organization from local villages has also been hugely impactful: 94% of Kibali’s workforce, including its management, are Congolese nationals.

It is now also driving the employment of women in the traditionally maledominated mining industry through targeted recruitment campaigns and development programs designed to equip them for rewarding careers at all levels of the organisation.

The Covid-19 Response

The team behind Kibali was also not slow about responding to the threat of Covid-19 as the pandemic reached the DRC. As well as outlining a detailed support program for the country, Barrick announced a $1.5 million fi nancial commitment to counter the pandemic and its effects. The government recognized that Barrick was the first of any large company in the country to make a substantial financial commitment to countering Covid.

Barrick’s contribution was extremely valuable: As a company that already has extensive experience in dealing with ebola, it maintains a dedicated workforce of health workers and doctors to administer treatment, materials, and advice. The $1.5 million commitment was also above

and beyond the investment in critical equipment, totaling about $1.4 million, already made by Barrick at an earlier stage of the pandemic.

Strategic Supply Chain Partners

With three of the world’s top 10 mines in its portfolio, Barrick is a name that easily attracts high-caliber supply chain partners. Examples of these include heavy equipment and machinery industry giant Caterpillar, which collaborated with Tractafric - a Moroccan company - to install 7.5 MW of battery energy storage at Kibali. Elsewhere, many of Barrick’s partners on the ground in Kibali are a who’s who of African mining and drilling companies. These include Amazon Drilling DRC, a drilling specialist and earthworks contractor, Redrilza Drilling Services, SGS Minerals RDC, a local branch of the international mining firm, a Zambian drilling company, Epoch Resources (Pty) Ltd, a

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Dedicated to the success of Barrick, in Mali, and around the world.

South African engineering consultant, and Inter Oriental Builders (IOB), a civil engineering company.

On the technology side, MineARC Systems is responsible for controlled technology and safety at the mine and its operations; American Mine Door developed the considerable mine doors at the plant, and ORICA, did some dedicated work on the mine’s infrastructure. Transport and logistics are provided by Tradecorp Logistics and Bolloré Transport & Logistics DRC. Finally, Barrick has developed a strong partnership with the local staff recruitment firm, MD Services SARL.

Environmental impact

Kibali is not only Africa's largest gold mine, but also a global leader in sustainability initiatives, biodiversity programmes, and clean energy, according to Barrick

president and CEO Mark Bristow. Barrick also continues to invest in Africa's biodiversity by reintroducing 76 white rhinos to the Garamba National Park, a critical step in the long-term plan to protect this endangered species. This investment has also resulted in an increase in the park's giraffe population.

Local sustainability projects include the development of a world-class aquaponics farm and the establishment of a vocational and technical training centre to promote community capacity building. Following the government's approval, the implementation of the cahier des charges mechanism has begun. This will be in

addition to the mine's current commitment to invest 0.3% of revenue in community projects identified through consultation with the mine's community development committees.

Kibali also continued to lead the group's clean energy drive, concentrating on power from three continuously upgraded hydropower stations and new backup battery technology.

Outlook

Barrick may have created a blueprint for other mining companies entering Africa to work from: International expertise,

local upskilling, government cooperation, and world-class technology. With the progressive Congolese government on its side and a prosperous partnership in place with AngloGold Ashanti, it seems like the sky is the limit for what Barrick and the operations at Kibali can achieve.

KABALI GOLD MINES

RWANDA TRANSPORT DEVELOPMENT

Central to Rwanda’s

AUTHORITY

Rwanda’s Transport Development Authority (RTDA) faces a stern challenge to deliver on its mandate. Firstly, there are the budgetary restrictions that come with being a low income country. Next, there is the country’s population density: At 416 people per square kilometre, Africa’s highest. Finally, Rwanda is known as the ‘land of a thousand hills’ - outlining, in the plainest of terms, what might be the biggest challenge of all.

And yet, despite the odds, RTDA continues to make notable progress in its transport ambitions, and the wider goal of ensuring that Rwanda becomes an upper middle income country by 2035. As a landlocked country, the country’s road, rail, and port infrastructurethe responsibility of RTDA - are an essential way for it to supercharge its growth. Business Excellence decided to take a closer look at the organization, which is central to Rwanda’s ambitions.

Rwanda has the third highest quality roads of any country in Africa

Background

The RTDA was founded in 2010, at a time when Rwanda’s roads were in dire condition. At the time, the country’s total classified road network was negligible - close to zero. In 2022, the country has in excess of 15,000 kilometres of classified roads. Furthermore, the World Economic Forum stated in 2022 that it has the third highest quality roads of any country in Africa - even ranking ahead of South Africa. A shift of this magnitude may be historically

unprecedented but it’s a sign of the RTDA’s ability to get things done, whether that’s through its own funds or public-private partnerships (PPPs) from a range of outside actors. Even now, with such a highly regarded road network, the RTDA hasn’t eased off on its relentless pursuit of improving the country’s infrastructure. In the section below, we look at some of the highlights of its investment and development program.

Road Investments

Perhaps the best place to start with Rwanda’s infrastructure projects is the refurbishment of the Rusumo-Kayonza Road. Funded by Japan International Cooperation Agency (JICA) and the World Bank, the road will be the result of a Rwf 59 billion (approximately US$57 million) investment. Underway since 2017, the road forms part of the Central Corridor that connects Tanzania’s capital Dar Es Salaam to Rwanda’s capital Kigali, as well as linking up

RTDA is aware that the country’s riverways - among them the 351-kilometre Nyabarongo and the 597 kilometres

Kagera - can provide useful passageways for efficient, costeffective transport of imports and exports

TECOS: ENGINEERING THE FUTURE WITH EXCELLENT

TECOS Ltd. (“TECOS”) is one of the companies that collaborate with RTDA, enabling it to achieve its objectives. Founded in Rwanda’s capital Kigali in 1995, TECOS is a private engineering consulting company that has worked on a broad range of engineering projects that have included transport infrastructure, industrial parks, stadiums, buildings, and urban planning. In total, it estimates that the aggregate investment in the projects it has worked on is in excess of US$10 billion.

This kind of success doesn’t happen overnight. Since its earliest days, it has placed an emphasis on the highest quality of engineering. This saw it become the first Rwandan company in the construction sector to be certified by the Rwanda Standards Board (RSB), and to achieve ISO quality standards RS ISO 14001:2015 and RS ISO 45001: 2018.

Quality is combined with flexibility to offer unrivaled client service in this corner of Africa. TECOS has the ability to take a project from start to finish or to provide consulting on individual components of a project, as required. The skillset of its engineering team has seen it contribute to projects at the concept stage

with Burundi and Uganda. Then, there’s the 92km road in the country’s Eastern Province connecting the Rusumo One Stop Border Post to the Kayonza district, and facilitating free trade with Rwanda’s neighbouring countries. Elsewhere in the Eastern province, construction of a series of urban roads is underway, with a cumulative investment of Rwf18 billion (US$17.5 million) in the Kayonza, Ngoma and the Kirehe districts. Other investments include the construction and upgrade of the 53 kilometre Ngoma-Nyanza

(for example, in commissioning support, preproject activities, and procurement services) to project commissioning (for example, project management and coordination, and construction management and supervision).

Like its partner RTDA, TECOS has set itself ambitious targets. Having secured a profile as Rwanda’s leading engineering consulting firm, it now seeks to gain ground in new markets. Increased interest in Africa as a destination for international investment means large infrastructure projects are springing up all over the continent. TECOS’ experience of working in Rwanda’s sometimes complex geographic environment should give it an advantage over other engineering firms competing in tenders.

Africa has never been short of resources. Historically, one of the biggest shortfalls on the continent was its lack of technical skills. Thankfully, this shortfall is now being addressed across several industries, and Rwanda provides a prime example of how this is the case. TECOS is the flag bearer for the progress being made in high-skilled areas. Now that its ambitions have moved beyond the borders of its own country, its horizons are boundless

Road, expected to be delivered by Q4 2023 at a cost of Rwf64.9 billion (US$67 million), the OPEC-funded 36 kilometre Nyacyonga -Mukoto Road project, which will improve connections for over 2.5 million people, and the third phase of the ongoing rehabilitation of the Muhanga-Karongi road, encompassing a total road length of 82 kilometres.

Other Transport Initiatives

Roads aren’t the sole focus of RTDA. In maritime transport sector, several projects are

Vision 2035 program identifies six interwoven pillars including good governance and an efficient state, skilled human capital, a vibrant private sector, modern agriculture and livestock, and one more component:

World-class physical infrastructure

underway under its watchful eye. Combined, investments in these projects come to Rwf13.8 billion (US$13.4 million). Even as a landlocked country, the RTDA is aware that the country’s riverways - among them the 351 kilometre Nyabarongo and the 597 kilometre Kagera - can provide useful passageways for efficient, cost-effective transport of imports and exports.

The RTDA has already indicated that it intends to develop three major ports with capacity of about 1.5 million passengers per year,

projected to reach 2.8 million by 2036. A smaller port in Karongi has already started operations with capacity for about 300,000 passengers per year, extending to 400,000 by 2036. In terms of cargo, a maximum port cargo handling capacity has been projected at 580,000 tonnes.

Socio Economic Importance

Without the vast mineral resources of some African countries, Rwanda depends on links with other countries to fuel its growth. The

country’s Vision 2035 program identifies six interwoven pillars, including good governance and an efficient state, skilled human capital, a vibrant private sector, modern agriculture and livestock, and one more component: World class physical insfrastcture - arguably the pillar tying it all together.

All of the projects cited will almost immediately improve the quality of life for millions of Rwandans engaged in economic activities that include agriculture, mining, and tourism. They will also significantly enhance access to production areas, markets, and

social amenities. Finally, the most obvious contribution they make is to boost trade with Rwanda’s neighbouring countries, giving its citizens access to much larger markets than was previously possible.

Partners and Suppliers

Improving transport infrastructure creates a virtuous cycle, one of which is easier access to partners and suppliers. RTDA has already developed a diverse partner network and this is likely to expand their ways of getting around improved. This begins with engineering in

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which its partners include local fi rms like TECOS, Hicogec, and SMEC International, all of which continue to provide invaluable engineering consultation on RTDA’s growling list of projects.

In construction, it works hand-in-hand on many of its projects with companies such as NPD Ltd., and Gavicon consultants, a construction consultation company. On the technology side, it collaborates with Charis Unmanned Aerial Solutions, Rwanda Speed Technology and Ntambch Transport Service, which enables it to rent much of the equipment that it requires on a one-off basis for each of its projects.

The RTDA Outlook

The RTDA is making it considerably easier to get around the land of a thousand hills. But instead of short-term gains, its focus is making Rwanda a middle-income country by 2035. Next on the agenda are 43 flyovers and a series of 4-laned roads enabling a smoother flow of transit in Kigali. Kigali International Airport will also soon be used to pilot the bus rapid transit (BRT) system as a way of reducing traffic congestion in the capital. On the subjects of public transport, Nyabugogo Bus Terminal is also set to be extended, because as roads are expanded, public transport buses increase. They’ll get around more efficiently thanks to the 215

kilometres of road upgrades planned in the city by 2024. Anyone looking on can see that Rwanda still has a lot to do before reaching middle income status in 2035. But thanks to RTDA, it’s firmly on the right road to achieving it.

Rwanda Transport Development Agency, KG 563 St.,Queen’s Land House,First Floor, Kacyiru P.O.Box 6674, Kigali,Rwanda.

info@rtda.gov.rw

RTDA

TRANSPORT FIT FOR

Perhaps more than any change currently underway in developing the infrastructure’s economic enablers RESEARCH BY Abi

Tanzania

FOR A MEGA CITY

Africa, the continent’s ongoing massive investments in point to a highly prosperous and brighter future

Abi Abagun

Perhaps more than any change currently underway in Africa, the continent’s ongoing massive investments in developing the infrastructure’s economic enablers point to a highly prosperous and brighter future. The pace of progress is furious. In Tanzania alone, for example, the country is being transformed by investing in developing infrastructures such as the Standard Railway Gauge (SGR), the Julius Nyerere Hydropower Project, and the bus rapid transit (BRT) project under the Dar Rapid Transit Agency

(DART) - the subject of the current Business Excellence profile.

The DART is a high-quality, high-capacity BRT system that is transforming the nature of public transport in Tanzania’s commercial capital city, Dar es Salaam, and by extension, the city’s seven million residents. Business Excellence recently met with the Chief Executive of the DART Agency, Dr. Edwin Mhede, a humble and results-oriented servant, who painted a clear picture of the difference that the new BRT system will make to the

city (the economic hub of Tanzania), now estimated to be the fifth biggest city in Africa.

Origins and Overview

Dr. Mhede began by giving us a general overview of the Dar Rapid Transit (DART) Agency and the project: “DART Agency is a Government Agency established by the Government Notice No. 120 of 25th May 2017 made under the Executive Agency Act, No. 30 of 1997. The Agency works under the President’s Office Regional Administration and Local

“The DART is a highquality, high-capacity BRT system that is transforming the nature of public transport in Dar es Salaam”

Government (PO-RALG) of the United Republic of Tanzania. The Agency was inaugurated by the Government on 16th June 2008 and it has the mandate to establish and operate BRT in Dar es Salaam. Also, to ensure smooth mobility on urban streets and roads and to ensure effective management of the DART Agency.

Dar es Salaam Bus Rapid Transit System branded as Dar Rapid Transit (DART) System, aims at providing high quality and most efficient public transport services hitherto featuring the modern high-capacity BRT

buses operating in exclusive lanes in Dar es Salaam by incorporating best practice design and features and it is the first true BRT system in the Eastern, Southern, and Central African region. The first phase of the BRT road network, which started its operation on 16th May 2016, was jointly supported by the World Bank and the Government of Tanzania. It spans 20.9 km of trunk corridor and presently serves an average of 180,000 passengers per day using the current fleet of 210 buses employing over 1,000 permanent workers.

“It spans 20.9 km of trunk corridor and presently serves an average of 180,000 passengers per day”

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Dr. Mhede also projects that, under The Public-Private Partnership Act, Cap. 103, the procurement of a service provider by mid – 2022, who will bring in additional 95 Articulated buses before the end of 2022, will enable the BRT system to accommodate an estimated ridership of 400,000 passengers a day. As he points out, the impact of this in the short-term will be massive: “One of the outstanding successes of the BRT operation under the management of DART Agency is reduced commute times by more than two to

three hours for residents, who previously faced upwards of four hours stuck in traffic every day and now they only spend an average of 30 to 40 minutes per trip.” In other terms, over 10% of the city’s working population added to a sustainable and efficient mode of transport.

A technology-enabled system

DART is not only the newest BRT system in Eastern, Southern, and Central Africa, it is also the most technologically advanced. Dr. Mhede says: “the Agency has invested (and continues

“One of the outstanding successes of the BRT operation under the management of DART Agency is reduced commute times by more than two to three hours”

to) in the development of ICT systems among them is the Government-owned Automated Fare Collection System (GoT-AFCS), Dar City Navigator, a Mobile Application (DarNavi)available both in Android and iOS, and the DART Office Management Information System, known as DARTMISS. The Agency is also planning to acquired other systems such as Intelligent Transportation System (ITS) and Network Monitoring System (Nagios), as well as establishment of DART independent ICT infrastructure Network

(DARTnet) and installation of CCTV Cameras for strengthening the delivery of services, safety and security of the system.”

In addition, he says, passengers will benefit from the technological innovations brought by the system: “An intelligent transportation system (ITS) will be used for fleet management, planning and scheduling of all our buses. The DART mobile application provides real-time information to commuters on bus arrivals and departures, nearest stations with distances and estimated time to reach, their locations,

“An intelligent transportation system (ITS) will be used for fleet management, planning and scheduling of all our buses”

and real-time information on accidents and traffic flows. QR codes are also purchased through the app and validated by hand-held devices (HHDs). A range of other technological innovations brought by DART includes an office management information system, network, and services monitoring, and an ICT infrastructure that connects stations and stops along routes. The ITS will generate transit data that will be used for different purposes such as improving transport services, planning, research, making informed management and policy decisions, and enablers of smart city initiatives.

More than the sum of its parts

In line with most ambitious transport infrastructure projects, DART system is being delivered in several pre-planned construction phases. Dr. Mhede says: “Thus far, DART has planned 154.4 km of dedicated trunk lanes to be implemented in six (6) development

phases. In terms of Phase 1, infrastructure development was completed and bus operations commenced in May 2016. On the other hand, the construction of BRT infrastructure for Phase 2 is in progress currently at 52% progress its planned completion is March 2023. The construction of BRT infrastructure in respect of Phase 3 has been in the pipeline for implementation as the procurement of contractor for construction works is at the final stages. On the other hand, the detailed engineering design for Phase 4 is in the final stage while the one for Phase 5 is completed. Finally, preparations for detailed engineering design for Phase 6 is ongoing.”

Did you know?

It’s going to require a total of 755 buses to carry a forecasted daily ridership of around 650,000 passengers per day

a forecasted daily ridership of around 650,000 passengers per day.” The numbers are staggering, and underline the overnight impact the project is going to have on Dar es Salaam. Phases three to six will follow in short order and bring with them a combined 111 kilometers of dedicated truck lanes, over 100 new bus stations, a dozen bus terminals, and nearly 2,200 new buses in total. Together, these will form a new transport network linking previously isolated areas with Dar es Salaam’s Central Business District (CBD), yielding opportunities for hundreds of thousands of people that once were literally and metaphorically out of reach.

Phase 2, currently halfway to completion, is expected to be completed by March 2023, is even more ambitious. Dr. Mhede says: “It’s going to require a total of 755 buses to carry

Socioeconomic Benefits

Providing opportunities for the less privileged in Dar es Salaam is just the beginning for

DART; however, the new system dramatically enhances the quality of life for everybody by reducing travel time, thus having more time for productivity, contributing to less congestion along the corridor, providing taxpayers with an excellent return on investment, creating sustainable employment, and encouraging foreign direct investment (FDI) in the city and its environs. Furthermore, it has the potential to reduce accidents and illnesses related to air pollution, as well as give the city’s citizens a boost to their civic pride.

Partners

In terms of partners and suppliers, Dr. Mhede is keen to highlight three in particular that continue to help make DART System a resounding success. He says: “I have to mention PO-RALG for the policy guidance we enjoy from the same and the Ministry of Investment, Industry, and Trade (MIIT) for providing Kaizen training to our employees and our service providers for improvement of productivity and quality of our service. Also, a special mention goes to TANROADS for the construction and maintenance of our infrastructure, including trunk roads, bus stations, feeder stations, pedestrian bridges, and depots. TARURA has been responsible for the construction and maintenance of rural and urban roads for our feeder buses, and, LATRA, the Land Transport Regulatory Authority is our valued partner for regulating the BRT services and Tanzania Police Force for collaborating with the Agency to strengthen safety and security along with the DART system. We especially recognize and appreciate the World Bank,

African Development Bank (AfBD), French Development Agency (Agence Française de Développement), and Japan International Cooperation Agency (JICA) for extending concessional support to BRT infrastructure development for BRT Phases 1, 3, and 4, BRT Phase 2, BRT Phase 5, and the grant to support Transit-Oriented Development (TOD) Project (under the technical cooperation framework), respectively.

Growth and Future Projections

With Dar es Salaam’s population set to reach 15-20 million in the next decade, DART system will play an increasingly central role in one of the Africa’s largest cities. Dr. Mhede says: “Our priority is to provide a sustainable urban mass transit system, leading to less pollution, safer public transport, fully integrated modes of transport, and above all, a much more liveable city.” The journey ahead will have challenges, of course, but the end result promises to be worth it, and all colleagues at DART and I myself are happily prepared to face and resolve the challenges as they emerge. The DART system will be a mode of transport fitting for the megacity Dar es Salaam is set to become.

“With Dar es Salaam’s population set to reach 15-20 million in the next decade, DART system will play an increasingly central role in one of the Africa’s largest cities”

Julius Nyerere International Airport (JNIA) has become the hub in the aviation sector in Central and East Africa. It is, undoubtedly, one of the best-performing airports in the region at large. According to the Ag. Director of Julius Nyerere International Airport, Eng. Rehema Myeya, “the major focus for the Julius Nyerere International Airport is to meet the desires of its passengers, airlines, visitors, and stakeholders. We are proud that the Julius Nyerere International Airport, in collaboration with its partners is working tirelessly to make sure that we achieve our goals”.

The results of the success are evident across the board including industry acknowledgments and awards by major industry stakeholders including ACI (Airports Council International) which in its 2018 report ranked Julius Nyerere International Airport as the 9th out of 183 Airports in Africa, serving a total of 71,420 flights per year. In terms of passengers, the airport was ranked 17th out of 183 airports in Africa, serving a total of 2.5 million passengers. And in terms of freight, the Airport ranks 9th out of 183 Airports in Africa, serving an average of 16,163 tons per year.

Julius Nyerere

International Airport was ranked 9th out of 183 Airports in Africa, serving a total of 71,420 flights per year

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For us to keep up with today's fast-paced modern world that we are currently living in, we should take advantage of the technologies that could help our daily lives travel fast and comfortably, not just from the road but inside buildings as well like elevators, escalators, dumbwaiters, conveyors, and many others. Shanghai Mitsubishi Elevator Co., Ltd. is one of the leading worldwide producers of elevators, escalators, conveyors, and many others. Founded in 1987, Mitsubishi Elevator has been specializing in designing, building, installing, upgrading, and maintaining mobility systems for a wide variety of fields with unique engineering capabilities for 30 years.

Shanghai Mitsubishi Elevator East Africa appointed SEC to be the heart of the training center for Service and Maintenance also Installation in East African regions and neighboring countries because it has the best people and Engineers. In fact, SEC already has the

and provision of after-sales service for elevators, escalators, walkways, and many others. SEC specialized in Servicing and Maintaining various types of lifts. Currently, the company already has more than 200 employees who have enough experience and are professionals. SEC is also an equal opportunity employer committed to hiring a diverse workforce like professionals from Tanzania, China, Philippines, and India to ensure and deliver great service to the clients. SEC already established credibility for so many years with our valued customers in Tanzania like TPA, PSPF II, Nyerere Foundation Square, and many more. Actually, JNIA is one of the valued customers of SEC as well.

Shanghai Mitsubishi Elevator East Africa has several branches or offices already across the East Africa region and near countries like Kenya, Rwanda, Uganda, Ethiopia, Zambia, and Zimbabwe.

“In 2010 we achieved an increase of up to 2.5 million passengers. This increase is what prompted the government to begin the construction of a third passenger building, with a capacity to serve six million passengers a year. The construction of this state-of-the-art building began in 2014 and finished in May 2019”, affirmed Eng. Rehema Myeya.

Many major airlines pick JNIA as an alternative airport when flying from north to south of the continent. The latter is due to the airport’s privileged location and altitude, high aircraft performance, high density of air, and good clearing conditions which lead to less complex flight operations procedures.

Important Accolades

“We are proud of our achievements as we have been working hard to improve every aspect of the airport from service quality to customer experience and we are delighted that some of our hard work is being recognized”, stated Eng. Rehema Myeya.

Some of those recognitions have been:

• Aerodrome Safety Certificate, from the

• Tanzania Civil Aviation Authority (TCAA)

• Routes Middle East Africa Marketing Awards, for excellence in Airport Marketing route awards.

• Routes Africa, for excellence in Airport Marketing.

Competitive Advantage and Valuable Certifications

There are several special characteristics that give the airport its competitive advantage, such as increased easygoing fl ight operation caused by favorable and unchangeable weather and less complex geographical conditions throughout the year. Also, high navigation capabilities due to simplicity in setting up navigation devices, due to accessibility of communication, and the availability of navigation signals. The airport regularly conducts Customer Awareness Training to airport staff for the purpose of creating a good image for the customers and particularly passengers.

JNIA has a certificate of compliance in the Integrated Management System from ISO, and an Aerodrome Certificate. The airport also received an Environmental Audit Certificate for its Environmental Management and a 3-star regional airport certification for facilities, comfort, cleanliness, shopping, food & beverages, staff service & security, plus safe air travel for passengers during Covid-19.

The airport has a license from Tanzania Atomic Energy Commission to possess or use radiation equipment. Furthermore, political stability and the emphasis on maintaining peace in Tanzania have attracted more passengers to visit the country. Hence, the government has started to promote tourist attraction

The airport also received an Environmental Audit Certificate for its Environmental Management and a 3-star regional airport certification for facilities, comfort, cleanliness, shopping, food & beverages, staff service & security, plus safe air travel for passengers during Covid-19.

campaigns and has invested in improving the national carrier, which has increased local and international routes.

Preparing for Revenge Travel and Key Stakeholders

Airports across the globe are currently experiencing a “revenge travel” trend which led JNIA to construct a Third Passenger

Terminal Building (TB3) with a capacity to serve six million passengers a year. “The third passenger building is currently one of the best in Africa. The capacity of TB3 is enough to cut the sharp rise in recovery traffic and to ease passenger and visitor fl ow. It also provides opportunities for further growth of the business”, stated Eng. Rehema Myeya. Moreover, the airport

has prepared for servicing the influx of passengers by inspecting its facilities and regularly training staff for providing good services.

The provision of services in the Air Transport Sector is largely dependent on the modern use of Information and communications technology (ICT). Thus, to improve operational and service delivery activities, the authority established various ICT systems to serve passengers and aircraft promptly, adhering to international standards. Such systems include Airport Management and Information Systems (AMIS) by Rockwell Collins, Smiths Heinman for security screening, DAIFUKU Logan for BHS, Vision-Box for E-gates, HVAC by York International, ABB for Switchgears and Transformers.

Other important suppliers and allies are: Airlines

• Ground Handlers- Swissport, Nas Dar Airco, Celebi

• Fuel Operators- Puma Energy, Oilcom (T) Ltd, Total Energy, and Lake Oil

• Government Agencies – Immigration, TRA, Fisheries, Forestry, Minerals, Concessionaries

• PCL Group for cleaning and facility management

The Airport’s Growth Strategy

Regarding the airport’s growth strategy Tanzania Airports Authority (TAA) has invited all investors to partner in serving airport users by taking advantage of existing business opportunities. All invitations to bid are made public and are accompanied by a clear set of guidelines

The development project of an Airport Commercial Complex and the four-star airport hotel will enhance and expand business at the airport as well as attracting more business partners and investors

that bidders must comply with. Moreover, there is a transparent system in place for tendering and awarding contracts as per the Public Procurement Act.

The development project of an Airport Commercial Complex and the four-star airport hotel will enhance and expand business at the airport as well as attract more business partners and investors. According to Eng. Rehema Myeya, “there will be more spaces for offices, shops, malls, banks, restaurants, gym, kids’ playground, and more, to operate”.

Additionally, the Tanzanian government has partnered with the French government to construct and rehabilitate the Second Passenger building (TB2). The latter will allow more passengers and create more business opportunities.

Economic impact and vision

TAA has contributed to reducing the unemployment rate by creating job opportunities during the execution and after the completion of various projects in the airports. The construction of the third

passenger building will improve airport services and increased the airport’s revenue by creating more business and commercial areas.

Altogether, Julius Nyerere International Airport’s vision is to enhance efficiency in undertaking airport operations by facilitating safety, security, and compliance with national and international requirements. Thus, optimizing airport services, improving infrastructure, systems and facilities, human resources, and financial management, are other goals JNIA has established for continuing to be a key player in the region’s aeronautical industry for years to come.

 jnia@airports.go.tz

www.taa.go.tz

Tanzania is usually one of the first countries travelers think of when planning a trip to Africa, especially when the main interests are safaris, experiencing the wild or enjoying beautiful beaches