L I T H O N P R OJ E CT C O N S U LTA N T S
LITHON PROJECT CONSULTANTS
‘Let Us Rise Up and Build’
the Call from Lithon’s Visiopreneur Director PRODUCTION: Karl Pietersen
Namibia-based Lithon Project Consultants – a leading African engineering firm – is readying itself for expansion across the continent. Busy preparing for construction of the Otavi Rebar Manufacturing Plant, Founder and Executive Chairman, Adriaan Grobler tells Enterprise Africa about the company’s growth strategy as well as his plans to drive social change in Namibia and beyond. 2 / www.enterprise-africa.net
INDUSTRY FOCUS: ENGINEERING
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Visiopreneur Adriaan Grobler started Lithon Project Consultants in 2002 after realising that the purpose in his life is to make a significant impact in the lives of people. Drivers of infrastructural and social change, Lithon (the Greek word for cornerstone) is based on the Word of God, strongly value driven and focussed on its people. Grobler describes a visiopreneur as someone who sees a better tomorrow, takes action and executes to achieve. “Call it a dreamer and a doer all in one.” He has set his sights on developing a better, brighter, stronger future for Africa, and he hopes to do it through Lithon Project Consultants by constructing
roads, buildings, sewers and other infrastructure, but also by contributing to social upliftment through various funding initiatives. Lithon has successfully completed more than 200 projects and the company is currently involved in many more that are in various stages of development. Grobler, who has personally overcome serious health issues to remain at the forefront of the industry, explains that consistency is key to the success of his business. “Starting up and growing a business is easier than keeping it going sustainably year after year – and that is where we are right now,” he tells Enterprise Africa. “Times are tough, the depression we see has been going on for the last 10 quarters, and for us to
expand into Africa, we need cash, so we are diversifying to drive revenue. We are focussing on private-public partnerships and seeing how we can find a different solution for our clients while bringing the money, technology and understanding politics.” Another vital factor is collaboration. Reaching out, connecting, and achieving together has been a cornerstone of Lithon’s success. “The time of being just a consultant is gone,” says Grobler. “In the old days, you could be appointed by a client and complete your project, but now, if you don’t come with a full solution you will end up as a subcontracting consultant picking up bread crumbs. We want to be agents of change by creating projects and helping to finance them too.”
Providing excellent, value added construction services to our customers Founded in 1976, Nexus Group is Namibia’s leading building and civil construction group with over 40 years industry experience. Nexus Group and its affiliates are 100% Namibian owned and managed with more than 30% Black Empowerment shareholding. Nexus Group has proven capability to deliver on a wide range of projects to a multitude of clients in diverse markets. We also have extensive tender capabilities. Nexus Building Contractors covers the full range of conventional construction which includes: • hospitals, retail centres, residential complexes, office accommodation, educational institutions, hotels & lodges and industrial facilities as well affordable housing for the public sector. Nexus Civils has capabilities spanning: • Municipal infrastructure - water, reservoirs, sewerage plants, roads, storm water and electrical • Transport infrastructure - roads (Bitumen & Gravel), bridges, airport terminals, aprons and runways. • Bulk earthworks as well as landfill sites. In order to maintain a high level of service and support to our stakeholders as well as keep up with the continuous demand for excellence, we frequently invest in our plant. Being one of Namibia’s leading building and civil construction groups, Nexus group has endeavoured to assist government in achieving its action plan towards prosperity for all Namibians. Otavi Rebar Manufacturing Plant is an important project for Namibia which will boost our local economy. We would like to congratulate Lithon Project Consultants for their dedication on this project and the milestones they’ve achieved.
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Working together for a common objective, to ensure delivery exceeds what was promised
+264 67 313 770 nexus@nexusgroup.com.na www.nexusgroup.com.na
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TURNKEY PROVIDER A significant selling point for Lithon Project Consultants is its experience in the industry and its ability to offer a complete solution that goes right from feasibility studies and project planning through to design, tender preparation, site supervision, project management, quality control, and many more related services. “We are now one of the top five firms in Namibia,” states Grobler. “There are two legs of the business right now – Lithon Project Consulting and Lithon Developers. Currently, the development business is working on three affordable housing projects; bringing a greenfield project, preparing concepts, taking it through prefeasibility stages, and moving to the EPC stage from where you can create
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a bankable and operational project.” This expertise has resulted in Lithon Project Consulting being asked to help bring about the development of a new steel plant in Otavi, close to the Etosha National Park. The Otavi Rebar Manufacturing Plant will use scrap metal sourced from around Namibia and its neighbours to produce 300,000 tons (annually) of billets and rebar (8mm to 32mm). The products are vital for the development of local manufacturing, building and construction industries. The project is owned by Otavi Rebar Manufacturing (Pty) Ltd of Namibia and NORIC of Switzerland. On completion, it is suggested that the new plant will employ some 300 people. Currently, Lithon is targeting start of construction for August 2019.
// FOR AFRICA’S FUTURE, MY OPINION IS THAT PRIVATE CAPITAL MUST BE PARTNERED WITH GOVERNMENT // “It will be tough. If we manage to achieve it, I will be very impressed,” admits Grobler. “We would like to get to financial close by the end of this year, and that will be viewed as a success. Over the next two months we will be busy putting together the information memorandum which the financial arranger, Nedbank, can use to start arranging capital. Projects of this nature are complex, especially
LITHON PROJECT CONSULTANTS
Basil Read Husab Road
on the legal side, so there is a chance that delays can creep in. But we are still on target and we believe that it will be done.” Recognising the need for ambitious projects that create jobs, in a time where Namibia is faced with economic contraction of 0.2% in 2018, the government has thrown itself behind construction of the Otavi Steel Plant. “We have a lot of support. From the very beginning, we have involved the government in the project and they fully back the idea. The founding President, previous President and current President have all backed the plans, so we are positive,” explains Grobler. “All companies in Namibia are going through a tough patch right now and the economy is not strong. We are all hoping for a quick turnaround,
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but we have accepted that it will be a tough journey,” he adds. When all arrangements are finalised and workmen begin onsite, the area will be busy for two years. “We hope that the plant will be in operation by the end of 2021,” states Grobler. He also points out that Lithon is busy organising the launch of a new development fund to help assist with projects like this, all over Africa, in the future. “We have created an Urban Infrastructure Development Fund which is like a private development fund with which we will go to the market in March/April to raise capital. We will use it to assist councils with long-term urban planning or installation of services and then selling it to developers or back to government. We’ve also
decided that we will look at a SADC fund, rather than just Namibia, built from Mauritius. We will be seeking mostly impact investors that want to use their money for good, while getting a return but also creating large social impacts.” For this group of ambitious engineers, the sky is the limit. AFRICAN EXPANSION Lithon already boasts a strong presence in Africa in Namibia, South Africa and Ghana. Its workforce of more than 30 professionals is split across these three regions with plans to expand aggressively in the coming decade. Grobler wants to use the Otavi Steel project as a case study for the company’s expansion on the Continues on page 22
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INDUSTRY FOCUS: ENGINEERING
Continued from page 19 continent, hoping that European partners will see the fantastic opportunities available. “Our partner NORIC, who is in Africa for the first time, says that if we can nail this one then we can take it across the continent. It’s a scalable industry – wherever you have scrap you can put up a plant as it doesn’t make sense to export steel over long distances.” Lithon’s African credentials are already starting to expand, making it the perfect business for infrastructural investors to investigate as they search for regional expertise in Africa. Away from its core markets, the company is busy sealing deals in
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Nigeria, Kenya, Angola, Mozambique and Rwanda. “We have signed a Memorandum of Understanding for a regional hospital for the government of Kenya. We are looking at projects in Mozambique and Angola where we are looking at special hospital projects. We are in discussions with financial brokers to arrange capital so we can start a medical fund for the construction of large-scale hospitals across Africa where there is a huge market. Grobler reminds that African conditions favour businesses that can bring a turnkey solution. “In Africa, you have to go in, create a project, and bring the money,” he says. “That is why we are setting up the Lithon Impact Capital Fund. We will put in
// WE WANT TO BE AGENTS OF CHANGE BY CREATING PROJECTS AND HELPING TO FINANCE THEM TOO // the seed capital and try and entice private capital from impact investors to see if it will be possible to start a project. For Africa’s future, my opinion is that private capital must be partnered with government. That means you have to understand politics and economic conditions and look at countries where there is stability. That is why we have chosen
LITHON PROJECT CONSULTANTS
Kenya, and it is also why Tanzania is on our radar. Rwanda is also exciting and we are also looking to sign an MoU with Abia State in Nigeria state of Abia for a long-term project developing a new city. That is a very large project for which we will bring on board other companies and form a consortium. Our whole strategy is around collaboration and pairing with local companies and I believe that is the future of engineering.” When Lithon has established itself
in Africa and has made real progress addressing some of the real human issues that exist on the continent, the next target is global expansion. “We have developed a 30-year strategy which is split in two with the first 15 years focussed on Africa and the second half focussed on the rest of the globe. Personally, I have no plans for retirement or anything like that, I have warned the team that they are stuck with me for at least another 30 years while we work
through this strategy,” Grobler laughs. As he continues to develop the company, he is also busy developing himself so that his dream of making a significant impact in the lives of people can become more of a reality. “I’m busy with my Masters in Development Finance and my thesis will be on the impact of urbanisation on human development. This is a passion for me – I believe the only way we can build Africa is when the private sector partners with government.” Lithon is more than a company simply driven by commercial success. Adriaan Grobler has successfully installed a belief that by helping others solve problems and making a difference in their lives, you can address the need for social upliftment while achieving business success. The Otavi Steel Plant project is a perfect example. Creating jobs, driving trade, and making a difference in the lives of many Namibians.
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Basil Read Husab Road
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