Enterprise Africa June 2015

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

AFRICA

ENTERPRISE June 2015

www.enterprise-africa.net

DHL AFRICA:

Peerless

Delivery Service

ALSO IN THIS ISSUE:

Arcelor Mittal / African Rainbow Minerals / TANESCO / Cellucity

KUMBA IRON ORE

At Kumba, we are committed to supporting initiatives that have a positive impact on the local economy. The supply agreement that we signed with ArcelorMittal South Africa in 2014 does just that.

It has allowed us to continue the reliable supply of iron ore to the local steel industry at mutually beneficial prices, which in turn has helped the local economy thrive by enabling the continued production of steel.

MICHELLE BESNAAR Kumba Iron Ore Employee

SIGNED, SEALED AND DELIVERING

Results such as these have fuelled Kumba’s determination to be the developmental partner of choice for projects that benefit our country. www.angloamerican.co.za

EDITOR’S LETTER

Timothy Reeder EDITOR tim@enterprise-africa.net Sophie Bolderstone SENIOR PROJECT MANAGER sophie@enterprise-africa.net Sam Hendricks SENIOR PROJECT MANAGER sam@enterprise-africa.net Karl Pietersen PROJECT MANAGER karl@enterprise-africa.net David Napier PROJECT MANAGER david@enterprise-africa.net Rose Whittaker PROJECT MANAGER rose@enterprise-africa.net John Mulley FINANCIAL DIRECTOR john@enterprise-africa.net Jane Larkman ACCOUNTS MANAGER jane@enterprise-africa.net Design by Naked Marketing +44 (0) 1953 850211 www.nakedmarketing.co.uk

Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@enterprise-africa.net Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU, T. +44 (0) 20 8123 7859 E. info@enterprise-africa.net www.enterprise-africa.net CMB Multimedia does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved.

No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Multimedia Ltd 2015

Welcome to our latest edition…

//

In many ways the past month has been turbulent for South Africa; rolling blackouts, talk of unrest at the mines, and news of the economy slipping further. However, as a whole, the continent of Africa still provides fantastic potential for growth and investment across different sectors. Speaking at the World Economic Forum, former UK Prime Minister Gordon Brown talked up the benefits of investing in Africa, that if managed correctly have the potential to far outweigh the risks.

“You have got to have the political will; you have got to co-ordinate delivery; and have complete focus on getting results” he said.

Key to any sustainable growth or stabilisation is a reliable power supply, which is a hot topic for many African territories who are currently being strongly advised to invest in renewable energy sources to help meet the growing demand. In this edition we have the privilege of working with TANESCO to discuss their current projects across Tanzania in this area.

Other business features include profiles of ArcelorMittal SA and African Rainbow Minerals, while we also discuss factors behind the growth and success of Cellucity, and the establishment of the DHL brand in sub-Saharan Africa.

As always, we thank you for taking the time to read our publication which we take great pride in putting together and bringing to you every month. If you would like to get in touch, feel free – we welcome your comment!

Timothy Reeder EDITOR

GET IN TOUCH +44 (0) 20 8123 7859 tim@enterprise-africa.net

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06/NEWS: The month that was...

A round up of some the latest news stories happening in the industry.

10/EVENTS: Exhibition focus

As part of our ongoing coverage of important exhibitions and events across Africa, we look at two of the most popular and well attended events – African Utility Week, and Automechanika.

08/

4 / June 2015 / www.enterprise-africa.net

42/INNOVATION: Innovation that inspires a nation

South Africa is known among many other fantastic traits, as a country that aspires to be at the forefront of technological breakthroughs and first with amazing ideas. So much so that there are events dedicated to celebrating and showcasing some of these. We take a look at the SA Innovation Summit ahead of its 8th event coming up in August, and celebrate some of South Africa’s individual successes.

08/SPORT: Dropping the ball

“We had our chances and didn’t take them” said captain AB de Villiers of South Africa’s World Cup 2015 semi final loss against New Zealand. We take a look at key moments that cost SA the chance at a World Cup Final in an ultimately frustrating tournament, as well as the bright prospects for future success.

CONTENTS 22/

28/

12/

34/DHL AFRICA: Peerless Delivery System

It is now more than 40 years since the DHL brand’s creators first conceived the idea of international express delivery.

12/TANESCO: Keeping the Lights On in Tanzania and Beyond

With numerous projects both large and small under its belt since inception in 1931, TANESCO owns most of the electricity generating, transmitting and distributing facilities across the Tanzania Mainland.

22/AFRICAN RAINBOW MINERALS: A Decade of Diversified Mining Excellence African Rainbow Minerals boasts long-life, low unit cost operations alongside significant opportunities for future growth.

28/ARCELOR MITTAL: The African Continent’s Steel Pioneers The largest steel producer on the African continent, with annual production of liquid steel currently standing at more than five million tons.

38/CELLUCITY: Mobile Phones Covered

Cellucity boasts the broadest range of mobile phones, computers and accessories available in any store in the industry and enjoys a strong relationship with Vodacom.

www.enterprise-africa.net / June 2015 / 5

NEWS IN BRIEF PEMBANI REMBRO RAISES $345M TO INVEST IN AFRICAN POWER Pembani Remgro Infrastructure fund’s Chief executive Herc van Wyk reported this week that the fund has raised up to $345m (R4.1 billion) to invest in the generation of electricity across Africa. The fund, which was established by mobile phone company chairman Phutmua Nhleko and Johann Rupert, who is one of South Africa’s richest men with a reported net worth of $8.bn has raised £245m for the investment and can access a further £100m from the US government’s Overseas Private Investment Corporation .

The fund aims to raise further funds to take the total investment up to $500m in order to develop African power infrastructure. “We see interesting opportunities coming up in the infrastructure space” said van Wyk. “The opportunity first and foremost is power generation”.

LIQUID TELECOM CEO TO BE APPOINTED HEAD OF SEACOM Former Seacom executive, Willem Marais, has been appointed managing group executive for African telecoms company Liquid Telecom, and will also serve as CEO of the group’s South African arm.

Marais, who has over 20 years of experience in the telecoms industry, will be responsible for all Liquid Telecom’s global wholesale data business across the service provider market and will also head Liquid Telecom’s business operations in SA.

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ANGLO AMERICAN ANNOUNCES RESTRUCTURE OF SOUTH AFRICAN BOARD Anglo American PLC announced on Thursday the changes to their South African leadership following the decision of chairman of Anglo American SA (AASA) Michael Spicer to retire from the board.

Mark Cutifani, currently the Chief executive of Anglo American, will fill the role of chairman.

Kumba iron Ore’s CEO Norman Mbazima will assume the role of deputy chairman of AASA while continuing to fulfil his duties with Kumba.

This restructuring also sees the creation of the new position of executive head of Anglo American South Africa.

Mark Cutifani, Chief Executive of Anglo American, said: “These are important changes and demonstrate Anglo American’s commitment to playing an active and leading role in the ongoing development of a responsible, sustainable and competitive business and mining sector in South Africa. I am pleased to

appoint Norman Mbazima and Andile Sangqu to their new roles. They possess the knowledge and experience required to achieve our business ambitions while we create value for South Africa and for our shareholders and stakeholders. I would also like to take this opportunity to thank Khanyisile Kweyama for her valuable contribution to our business during her tenure with the Group, and wish her well for the future.This role will be taken by Andile Sangku.

Changes will be effective from the first of June 2015.

DISPUTES CONTINUE AT PETROSA OVER FUTURE OF THREE TOP EXECUTIVES The top three executives, including the CEO, of state oil company PetroSa have been placed on gardening leave due to poor company performance. Reports state that Chief Financial Officer Lindiwe MthimunyeBakoro, CEO Nosizwe Nokwe-Macamo, and acting vice-president of upstream operations Andrew Dippenaar were asked to accept the board’s request to take leave, otherwise they would face suspension.

This follows a series of poorly handled initiatives including project Ikhwezi.

And failed investment in Equatorial Guinea.

South Africa’s national oil company, which owns one of the largest and most innovative refineries in the world, will be expecting these drastic changes to improve the efficiency of these projects

and in turn see an upturn in overall performance.

PetroSa are expected to appoint an interim management team pending their investigation into their performances in order to minimize any negative impact on business.

NEWS ROUNDUP LEWIS TO OPEN MORE BEARES STORES

Lewis Group reported on Wednesday plans to open ten more Beares stores in order to increase their appeal to customers with a higher income level.

Lewis had reported in March its earnings Per Share as down four percent to 882.7. It is believed raised costs of living and unemployment levels were hitting the consumer base of the group, and Lewis plan to use the Beares stores to attract costomers of a higher income level, a target market in which it had previously had little exposure.

Lewis bought the Beares chain in November from Ellerine Holdingspreviously the furniture unit of African Bank.

LOAD SHEDDING LIKELY TO CONTINUE FOR NEXT THREE YEARS South Africans could experience problems caused by power cuts for the next three years, according to President Jacob Zuma on Wednesday. Parliament heard that power demand is expected to outweigh supply for the next two to three years, and Eksom is likely to continue to load shedding strategy that it employs in order to ration its supllies during times of high demand.

Mr Zuma said that 160,000 households had been added to the grid in the last year, which has added to the electricity demands.

Demands could be eased by the completion of the Medupi power station, which is running behind schedule. Public Enterprises minister Lynne Brown had asked Eksom to accelerate the completion of its build programme, said Mr Zuma.

JUBILEE PLATINUM ENSURE CONTINUATION OF PLATINUM SURFACE PROCESSING AFTER RAISING R11.1M Jubilee Platinum has raised funding of R11.1m in order to ensure it can continue the surface processing of platinum in South Africa, it announced on Tuesday. The company did so by placing new shares on the stock market.

The rapid progression of the projects have seen the design phase finalised and brought closer the need for final execution engineering drawings and the consideration of order placements for long lead items.

Jubilee Platinum’s CEO Leon Coetzer says ‘’I am delighted with the progress made on our platinum surface processing projects and I am looking forward to the execution phase ahead and delivering the Company’s transformational projects.”

The company aims to process around 4.4million tons of surface material containing platinum.

Further project funding is being considered by the board including the potential sale of non platinumprocessing assets.

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FEATURE

DROPPING THE BALL EDITORIAL BY:

Sophie Bolderstone “We had our chances and didn’t take them” said captain AB de Villiers of South Africa’s World Cup 2015 semi final loss against New Zealand. We take a look at key moments that cost SA the chance at a World Cup Final in an ultimately frustrating tournament, as well as the bright prospects for future success

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//

The tournament started with a win for the proteas, but impressive and stylish performances by David Miller and JP Duminy (a career best 138* and 115 respectively) masked the worrying fact that Zimbabwe had been allowed to dismantle the South African top order so easily at 83/4.

Losses to giants India and Pakistan ensued along with high margin victories against West Indies, Ireland and UAE. Stalwarts de Villiers, Amla, du Plessis and Morkel continued in turns to turn in the runs, wickets and the records and allowed the younger and newer member of the squad space to grow into the tournament.

As de Villiers flexed his muscles against the West Indies and took the world record for the fastest ODI 150 (a blistering 162 off just 66 balls), Rilee Rossouw demonstrated his ability to read the game and hand the strike to his destructive partner, while quietly and competently building his own total to an adept 61. As Amla took the Man Of The Match against Ireland for his 159, continuing to be South Africa’s “Rock” in the words of the captain, good news also came from the bowling unit. Reliable Morne Morkel and Imran Tahir had so far provided much of South Africa’s bite, but a fiery display from Dale Steyn the right-armer showed he was back to his ruinous best. Kyle Abbott, relatively new and inexperienced at international level and in only his second World Cup match helped to rip through the Irish order taking an admirable 4/21. Narrowly beaten by Pakistan in the penultimate group stage match, the bowling unit was then strengthened once more by the return from injury of Vernon Philander; to help South Africa beat UAE and ease into the knockout stage.

SPORT

//WE HAD OUR CHANCES AND DIDN’T TAKE THEM// AB DE VILLIERS AFTER THE SEMI FINAL DEFEAT TO NZ Young wicketkeeper Quinton de Kock had struggled for form all tournament before finally paying back the patience and the perseverance of the selectors in the quarterfinal against Sri Lanka with his masterful match winning 78*. Notable not just for the number against his name, but an innings played in a manner and style that oozed confidence was the perfect end to the match for the 22 year-old after the first innings had provided him with the perfect opportunity to display his keeping skills. An incredible diving catch to his left to catch Kusal Perera at first slip was a surefire contender for catch of the tournament, and another piece of proof as to why de Kock is so highly regarded in both facets of his game amongst his peers worldwide. Another important cog in the machine was working well again, and all seemed to be coming together for South Africa.

Unfortunately it wasn’t to be. The final nail in South Africa’s coffin was to be handed to them by a former fellow countryman.

Born and raised in Johannesburg, Grant Elliott moved to New Zealand to pursue his cricketing ambitions. Here fourteen years later, fate conspired to make him an integral part of South Africa’s World Cup exit.

New Zealand were set a rain-adjusted target of 299 in only 43 overs, a task

which most of the cricketing elite would find a difficult one given the conditions.

However the Kiwis are a team at the top of a meteoric rise through the ranks, and set about clinically taking down their target. With six wickets down, Elliott was proving dangerous. The chance to remove him from the game and wrest control was not taken.

JP Duminy and Farhaan Berhadien collided calamitously while trying to take the catch, and in the penultimate ball of the last over, Elliott took the winning runs with a six.

For de Villiers, who in an emotional post world cup exit press conference described the experience as “painful” and himself as “gutted” may have had his feelings exacerbated by the underlying feeling that this could well be the 31 year Old’s last world cup encounter, the key to moving past this experience should lie in his own words “life moves on”. The world of cricket is a fast moving one, and does not leave them long to wallow in their

defeat. The next obstacle for de Villiers and the majority of his squad lies in the form of the fast approaching IPL, the perfect opportunity for the players to iron out their imperfections and maintain their found form on the world’s biggest stage in time for the next round of international cricketthe T20i tournament against Bangladesh.

For de Villiers, Steyn and other members of the old guard this may have been a last World Cup attempt of their careers, but there are still plenty more international achievements to be won and a squad that can learn from their guidance and experiences.

www.enterprise-africa.net / June 2015 / 9

FEATURE

EXHIBITION FOCUS As part of our ongoing coverage of important exhibitions and events across Africa, we look at two of the most popular and well attended events – African Utility Week, which took even more importance with current power issues, and Automechanika Johannesburg

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12-14th May saw the return of African Utility Week. This year’s event was the fifteenth in its history and brought with it a record attendance of over six thousand attendees.

The annual expo, the leading event for the power and water sectors in Africa had added an extra day to the event compared to previous years, in order to maximize attendances and exposure to professionals from a multitude of facets of the industry. The event, held in Cape Town, drew visitors and speakers from Europe, Asia and North and South America.

The three days included 64 technical workshops, featured 250 service providers, and a packed conference schedule saw 200 speeches delivered. Day one’s featured speeches discussing investment in African business were delivered by Victor Kgomoeswana, Author, News Anchor and Business Advisor, Zethembe Khoza, Eskom Board Member, and Andrew Herscowitz,

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Coordinator for Power Africa & Trade Africa at U.S. Government. Day two’s topics on energy solutions for African economies were handled by David Walker, CEO, DNV-GL and Hugo Lamin, Public Services Regulation Specialist, Brazilian Electricity Regulatory Agency. The final keynote “The evolution of the utility: From Edison to grid modernization to smart cities” was given by the Executive Secretary to the United Nations Economic Commission to Africa, Carlos Lopes. Other popular topics raised during the course of the event include nuclear powerand rural electrification, according to Event Director Evan Schiff. African utility week also includes Clean Power Africa, and served as the perfect opportunity to bring together stakeholders, suppliers, developers, and municipalities in order to network and take part in the panel discussion on the International Renewable Energy Agency’s (IRENA) vision for Africa’s Clean Energy

Corridor. Networking and business-tobusiness contact during the expo was a key aim, in order for the industry to continue to grow. “We are proud to state that we are and remain for the industry and by the industry” Stated Evan Schiff.

For the second time, Awards were handed to the top professionals and projects in the industry. Ackermans won the Energy & Water Efficiency Project of the Year, Top Utility Executive of the Year was given to City Power’s MD Sicelo Goodwill Xulu, while Dr Lawrence Musaba, Coordination Centre Manager, Southern African Power Pool in Zimbabwe was handed a Lifetime Achievement award.

Automechanika Johannesburg, the continent’s leading trade expo for the automotive sector returned to the city during the 6th to the 9th of May. The event, held at the Johannesburg expo Centre was once again attended by thousands

EVENTS

of visitors, conference delegates, and hundreds of exhibitors representing all aspects of the industry, and from a wide range of countries worldwide, reinforcing the importance of the South African and African automotive industry across the globe. Innovations and products were divided into categories of Parts and Components, Electronics and Systems, Repair and Maintenance, Accessories and Tuning, Service Station and Car wash, and IT and management in order for visitors and businesses to ensure full utilization of Automechanika Johannesburg’s impressive range and depth of services and products displayed and demonstrated.

Conference delegates were impressed by informative and fascinating talks from high-ranking industry speakers on a range of discussions spanning the industry. Attendees of the Engine Rebuilders Association (ERA) heard discussion from expert Professor Von

Wielligh on the importance of accurate diagnosis in order to improve overall levels of service in their sector, an aim that the Association strives to achieve.

The South African Diesel Fuel Injection Association (SADFIA) led discussion on the evolution of diesel emission control systems, while the Retail Motor Industry (RMI) conference was headed by discussion on the “crucial” need for a large increase in the number of apprentices in the industry. Return-oninvestment manager at the UK based Institute of the Motor Industry (IMI) Dr. Paul Spear gave a detailed outlook on the need for more apprentices worldwide in order to assure the continued growth of the industry.

Automechenika exhibits trade fairs in eleven countries worldwide, and the Johannesburg 2015 event has ensured the expo can rightly continue to claim the title of “Gateway to Africa” for the industry.

UPCOMING SHOWS KWAZULU NATAL INDUSTRIAL TECHNOLOGY EXHBITION Durban Exhibition Centre 09 June 2015 - 12 June 2015 www.kznindustrial.co.za

SOURCE AFRICA Cape Town International Convention Centre 10 June 2015 - 11 June 2015 www.sourceafrica.co.za

FPI 2015 EXPO Sandton Convention Centre 24 June 2015 - 25 June 2015

MEDIATECH AFRICA Ticketpro Dome 15 July 2015 - 17 July 2015

www.enterprise-africa.net / June 2015 / 11

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TANESCO

Keeping the

Lights On In Tanzania and Beyond PRODUCTION:

Timothy Reeder

With numerous projects both large and small under its belt since inception in 1931, TANESCO owns most of the electricity generating, transmitting and distributing facilities across the Tanzania Mainland. In the intervening years the company has worked tirelessly to become a continually efficient and commercially focused utility, supporting the development of Tanzania as a whole and going about its operations in the most effective, competitive and sustainable manner possible.

www.enterprise-africa.net / June 2015 / 13

TANESCO

CEO, FELCHESMI MRAMBA

//

At the turn of the century the first public electricity supply in Tanzania, then known as Tanganyika, was established by German colonialists, in 1908 at Dar es Salaam, and served predominantly the railway workshops and the part of the town housing the majority of the colonialists.

When the Tanganyika territory was then mandated to Great Britain in 1920, a Government Electricity Department was required to take over and operate the public supplies left by the Germans.

Following the government’s move in 1931 to transfer the operations at Dar es Salaam to private enterprises, among those selected to benefit from this transition was the Tanganyika Electric supply Company Ltd. (TANESCO), as well as the Dar es Salaam and District Electric Supply Company Ltd (DARESCO).

TANESCO commenced its operations in 1933, operating a diesel power station at Kange on the outskirts of Tanga in order

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to supply the town, and by 1936 had constructed a 90 metre dam across the Pangani River and commissioned two generators totalling 5MW. At the same time over 400km of supply lines were erected, while in the years 1947, 1952 and 1959 three more sets were installed, bringing the total capacity here up to where it stands today, at an impressive 17.5MW. An agreement signed in 1948 between the Tanganyika Government, the Kenya Government and TANESCO, meant that TANESCO was authorized to export its surplus power generated by the Pangani Falls power station to Mombasa, with certain conditions in place designed to safeguard supplies to consumers in the company’s Tanganyika concession. The supply was provided by a transmission line some 135 km long erected on concrete poles, with the company originally having sought this permission in part to diversify its customer base. The New Pangani Falls Power Plant, meanwhile,

is a hydroelectric plant situated 12 km off the Segera -Tanga highway and benefits from the total head and flow available on the lower reaches of the Pangani River, downstream of the Hale power plant where 21 MW was commissioned in 1964. The Plant’s current capacity of 68MW is four times higher than that of the Old Pangani Falls Power plant, which was closed to allow the redevelopment. The plant started its commercial operation in November 1994, three months ahead of schedule and to the relief of the country as a whole, as before its commissioning Tanzania had experienced a serious power shortage which had plagued the country since 1992. The Pangani Basin Water Office, created as an integral part of the redevelopment project, supervises the use of water, including registration and issuing of water rights, and works to stop any illegal usage of the area.

In 1962, construction commenced of the 21-MW Hale hydropower station on the Pangani River, upstream from Pangani

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//MY DREAM IS TO HAVE A TANESCO CUSTOMERS PERCEIVE AS VERY RELIABLE AND A QUALITY SERVICE PROVIDER// Falls, along with an associated transmission line from Hale to Dar es Salaam. The plant is sited at Hale Township on the Segera– Tanga highway and uses a natural fall of 70 metres some 40 river miles from the Indian Ocean. Hale was commissioned and formally opened by President Nyerere in 1964, at the same time that supplies were extended to virtually all of the sisal estates in the Pangani area via the addition of branches at Kilosa, Kimamba and Lushoto. The hydro works include a storage weir across the Pangani River, 4km upstream of a diversion intake weir.

As part of the intake works, a headrace tunnel leads the water via a surge shaft and a high pressure shaft and tunnel, to the turbines in an underground power station positioned 76 metres below ground

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level. Water is then returned to the river through a tailrace tunnel and an open channel. The associated underground power station, with its installed capacity of 21 MW, is formed by a cavern in the rock with power generated by two vertical units comprising Francis turbines and salient pole generators.

The third of TANESCO’s Pangani hydro systems is the 8MW Nyumba ya Mungu Power station, in the Mwanga District of the Kilimanjaro Region. This is an example of one of the organisation’s smaller generation projects, completed in 1966 for the purpose of storing flood flow and subsequently allow the development of some 30,000 acres of irrigated farming and the generation of electricity. Of much larger scale, however, was the Great

Ruaha power project proposed first in 1968. This development aimed to build the first large hydroelectric power station in Tanzania, and thus the Kidatu power plant was constructed in two phases, the first of which started in 1969. This comprised a 40m high, rock-fill dam and an underground power station large enough to accommodate four 50MW machines, as well as 350km of high voltage transmission line stretching between Kidatu and Dar es Salaam. Phase 1 of this project was completed in1975 with the installation of two generating units to supply 100MW to the grid. The development’s second phase began in 1977 with the construction of a 45m concrete dam at Mtera, while the two remaining 50MW generating units were also installed, with works completed in 1981. 1980 saw the installed capacity of the hydroelectric power station at Kidatu doubled, and its capabilities further enhanced by the storage dam and reservoir opened by President J.K Nyerere, in February 1981. Today, Kidatu

TREATED TIMBER PRODUCTS (TTP) SPECIALIZES IN THE PRODUCTION OF TRANSMISSION, TELEPHONE, FENCING AND BUILDING POLES. TTP was established in 1939 and is now the largest producer of Utility Poles in the Southern Hemisphere. With our six treating plants strategically positioned near Durban and Maputo harbours, we are able to serve the local and export market with comparative ease.

Our transmission poles are pressure treated with either Creosote or Copper Chrome Arsenic (CCA) to meet the South African National Standard SANS 754:2013, Tanesco S11 and Kenya KS516 or any other recognized national VY PU[LYUH[PVUHS ZWLJPÄJH[PVU TTP carries a large stock of treated and untreated poles, giving us the ability to meet large orders at short notice.

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INDEPENDENT POWER TANZANIA LIMITED (SUBSIDIARY OF PAN AFRICAN POWER SOLUTIONS (T) LIMITED) PLOT 292/1, 292/2, 292/3, 296, BLOCK D, SALA-SALA. TEGETA, P.O. BOX 77173, DAR ES SALAAM, TANZANIA T +255 736 502 133 | F +255 753 502 132

www.iptl.co.tz

Independent Power Tanzania Limited (IPTL) is the largest privately owned power generating company in Tanzania with a current production capacity of 103MW. Being a subsidiary of Pan African Power Solutions (T) Limited (PAP), IPTL is cooperating with the government through the state owned Tanzania Electric Supply Company (TANESCO) to address the persistent shortage of power, which is a challenge to the Economic and Social Development of Tanzania.

We plan to expand our production capacity by 500MW from the current 103MW, by constructing a gas fired power plant. This expansion and subsequent use of natural gas will result to selling IPTL’s power to TANESCO at tariffs of between 6 and 8 US cents per unit.

Reduced tariffs and increased power production will be a big boost to the utility sector in Tanzania and a relief to electricity consumers.

IPTL believes that the power supply to customers can be improved from the current 800 MW, which serves a growing economy whose demand could exceed 2000MW. We still believe that the market is huge and not only IPTL but also other players should share in the growth of the grid expansion and generation to meet demands of the growing economy.

Phase one of the company plan intends to immediately install a 200MW gas fired power plant adjacent to the current 103MW Heavy Fuel Oil (HFO) IPTL plant.

As parts of phase one, IPTL will be installing a new substation 220kv which is extremely important to TANESCO for its distribution to various new development zones in Bagamoyo and Chalinze. This includes a new 220kv line to Ubungo.

The Phase 2- will entail installation of a 300MW gas fired power adjacent to IPTL. However, the current IPTL plants will be maintained to operate on HFO in the event of natural gas interruptions and diversity of fuel usage to the national grid. This is to ensure steady power supply to the national grid.

With additional capacity operated on indigenous Natural Gas, IPTL will not only able to reduce the fixed cost it charges but also to retain the existing 103 MW power plant until its natural expiry.

We thank the Government of Tanzania and TANESCO for accepting the power produced by IPTL. We promise to deliver the best services ever in order to support development of power sector in Tanzania.

IPTL/PAP IS HERE TO SERVE

BUSINESS PROFILE

// 3,000MW is the target for energy production by the end of 2015

has generated on average around 0.8 billion units annually for the past five years, contributing nearly 36% of the total hydro installed capacity of the country.

Today, TANESCO is a parastatal organisation under the Ministry of Energy and Minerals. The Company generates, transmits, distributes and sells electricity to the Tanzania Mainland, and sells bulk power to the Zanzibar Electricity Corporation (ZECO) which is in turn sold it to the public in the islands of Unguja and Pemba. Following Tanganyika’s gaining independence in 1961, the government registered its interest in purchasing shares from the private company, such as it was at the time, acquiring the company in its entirety by 1975 and becoming its sole shareholder. One of the principal early consequences of the government’s

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involvement was its bid to electrify rural areas and small townships, and bring reliable electricity supplies to previously unconnected locales. The adoption of this policy led to feasibility studies being conducted on several townships and the subsequent takeover of electricity installations at Nachingwea and Mpwapwa

by TANESCO. New branches at Singida and Shinyanga were established and, in 1966, new power at both Musoma and Tukuyu was commissioned. In 1969 supplies to Mafia Island, Himo and Marangu were established. TANESCO now boasts a workforce of nearly 5,000 individuals, of which around 800 are employed at the Head Office, 450 at Hydro plants and the remainder across its 23 regional offices, a team composed of extremely qualified personnel trained both locally and abroad.

TANESCO looks set to play a major role in helping Tanzania to secure its goal of doubling the country’s energy production to 3,000MW by the end of 2015. As managing director Felchesmi Mramba explains, “TANESCO plays a key role in achieving whatever ambitions the government has in the energy sector, particularly in the electricity sub-sector.

TANESCO is the only utility company dealing with electricity in this country and, being vertically integrated, it deals with almost everything from generation to transmission, distribution and sale of electricity to the mainland and also bulk supply to Zanzibar. Our role is very key as we have no competitors.” An important aspect of achieving this provision will be the introduction of coal-fired power stations, which itself throws up significant

TANESCO

//THE BEST USE OF THE COUNTRY’S HUGE RESERVE OF COAL IS POWER GENERATION// questions around the environmental impact this may entail.“It is estimated that the coal deposit in this country is around 5 billion tonnes,” states Mramba, “and the best use of that huge reserve of coal is power generation. Our concern is the environment but we are aware that there has evolved clean coal technology around the world and power generation from coal is possible through this technology.”

TANESCO is currently undergoing an extensive restructuring process as it looks to further cement its position looking forward.

As well as considering meter technology and streamlining customer service, Mramba details that, “We are also doing bigger picture restructuring - unbundling TANESCO into generation, transmission, and distribution. We are also looking at what to do to bring business growth and on this area we are focussing on expanding our customer base and minimising losses.”

All of this is geared toward creating an institution in which its users fully invest, and believe. “My dream is to have a TANESCO which is perceived by the customers as

very reliable, that provides a quality service and that fulfils its promises. We want to change the image of TANESCO. People think of a TANESCO which will not give them adequate power, which will not give them reliable power; they will immediately think of power outages, but we want to get out of that. Slowly we are moving away from that history. The feedback I’m getting now from the public is that they have seen a lot of changes in our services. We have witnessed a lot of improvement in many areas.”

TANESCO +255 222 451 130 info@tanesco.co.tz www.tanesco.co.tz

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AFRICAN RAINBOW MINERALS

A Decade of Diversified

Mining Excellence PRODUCTION:

Timothy Reeder

A leading South African diversified mining and minerals company, African Rainbow Minerals boasts long-life, low unit cost operations alongside significant opportunities for future growth. Already with interest in a wide range of mines, ARM operates in iron ore, manganese ore and alloys, chrome ore and alloys, platinum group metals, copper, nickel and coal, while also maintaining an investment in gold through its shareholding in Harmony, the 12th largest gold mining company in the world.

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BUSINESS PROFILE

// R283 million

invested through projects which focus on education, health, agriculture, roads, water and other infrastructure concerns

//

Through the various divisions of its business, African Rainbow Minerals’s overriding mission is to position itself as a partner of choice, as it strives to provide competitive value for all those invested in its work. Diversity is a notion which spreads across the company, not just in terms of the scope of its operations, but also through to its multi-ethnic and multi-racial workforce, which works to enhance both the company and the mining industry itself. Over the ten years of its operations ARM has invested significantly in the growth of the company, creating value both for its shareholders and its range of stakeholders. Money has also been spent on developing the skills of its workforce – a total last year of R196 million aided various skills development programmes including training courses

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and bursaries. During the course of the year R283 million was also invested through its Corporate Social Investment (CSI), Local Economic Development (LED) and Social Labour Plan (SLP) projects, which focus on education, health, agriculture, roads, water and other infrastructure concerns.

Additional to these efforts and as part of its commitment to the broader South Africa, the ARM Broad-Based Economic Empowerment Trust (ARM BBEE Trust) has distributed R110 million since its inception to a range of poor and historically disadvantaged beneficiaries.

Among these have been rural upliftment trusts, church groups, trade union and women upliftment trusts. A company with a clear central focus on sustainability, ARM is also committed to adhering to and implementing global best practices when

it comes to protecting and conserving the environment, and rehabilitating the land where its mines are in operation. Clearly, this is a field with a potentially significant and damaging impact on the environment, but what sets ARM apart is its commitment to minimising its environmental impact and acting responsibly in its use of scarce natural resources. Major focus areas include responsible water management, climate change and the efficient utilisation of energy to reduce carbon emissions.

The ARM Platinum division of the business currently comprises three operating mines. In Modikwa African Rainbow Minerals holds a 41.5% interest, with 50% held by with Anglo platinum and the remainder by local communities. The Two Rivers mine, meanwhile, located near the town of Steelpoort in Mpumalanga

AFRICAN RAINBOW MINERALS

ARM - LEADING THE WAY IN THE AFRICAN MINING SECTOR

//RELIABLE COAL SUPPLY IS ABSOLUTELY ESSENTIAL FOR ESKOM’S SUCCESS AND GOEDGEVONDEN IS WELL PLACED TO HELP MEET THESE NEEDS// on the eastern limb of the Bushveld Complex, is an incorporated joint venture with Implats, with ARM holding 55% and Implats 45%. Nkomati, finally, is a 50:50 partnership with Norilsk Nickel Africa, the world’s largest producer of nickel and palladium and one of its leading producers of platinum and copper. The Modikwa platinum mine is located 15 kilometres north west of Burgersfort, along the border between the Mpumalanga and Limpopo provinces. The operation comprises an

underground mine, some 450 metres deep, consisting of three decline shafts and a concentrator, while the Two Rivers mine counts an underground mine consisting of the Main Decline, the North Decline and a concentrator plant. Nkomati is found in the Machadodorp area of the Mpumalanga province, 300 kilometres east of Johannesburg, where Nickel mining takes place by means of an underground shaft, as well as by open-pit mining. Additionally, oxidised chromitite is also mined as part of

the pre-strip of the future open pits.

The Modikwa mine is estimated to contain some 56 million tons of mineral reserves, while measured and indicated reserves stand at between 115.2 and 145.7 million tons. Nkomati, meanwhile, is a small to medium-sized base-metal operation, offering reserves of a complex, high-grade nickel, copper, cobalt and platinum-group metal deposit. Although a relatively young development, mining manager, Trevor Visagie, speaks of the tremendous progress it has already seen. “In the 15 years since it was opened,” Visagie explains, “the mine has expanded considerably with the development of its open pit mine and of its various plants. The recent commissioning of the mine’s production plants has helped take nickel concentrate production volumes up to in excess of 200 thousand

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BUSINESS PROFILE

//THE NKOMATI MINE HAS EXPANDED CONSIDERABLY WITH THE DEVELOPMENT OF ITS OPEN PIT MINE AND OF ITS VARIOUS PLANTS// tonnes per year. Significant capital injections are continuing to be made across the site with the purpose of not only sustaining the operation, but expanding it as required.”

With its partner Assore Limited, African Rainbow Minerals holds a 50% investment in Assmang, providing it with its Ferrous operational capabilities.

These operations are themselves split into three divisions, under the headings of iron ore, manganese and chrome. ARM Coal, meanwhile, was formed in 2006 in partnership with global diversified mining group Xstrata Coal South Africa PLC. A significant landmark in its operational history saw its Goedgevonden Colliery sign a a 17-year coal supply agreement with

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the country’s national power utility, Eskom.

As a result, Goedgevonden is committed to supplying approximately 60 million tonnes of thermal coal, at a rate of some 3.5 million tonnes per year, to Eskom’s Majuba coal-fired power station, a commitment running from December 2009 through to 2026. Murray Houston, Xstrata Coal South Africa’s Chief Operating Officer, explains how the contract marks an important milestone for the Goedgevonden open cut operation.“This is a significant achievement for the Goedgevonden operation and underlines our position as a major supplier of quality thermal coal to both the domestic and export markets.” ARM Coal Chief Executive, Mangisi Gule, also adds how the transformation of Goedgevonden

from a greenfield project to a fully operational colliery marks a major step in the growth of ARM Coal. “Reliable coal supply is absolutely essential for Eskom’s success. Goedgevonden is well placed to help meet the immediate needs of Majuba, while maintaining the flexibility to meet potential increased demand in the future if necessary.”

Marking ARM’s first operational interest outside of South Africa is the Lubambe Copper Mine, formerly known as Konkola North, hosted in the ARM Copper Division.

Together with its 50:50 joint venture partner Vale S.A, the groundbreaking ceremony for the project was held back in 2010, with the Mine’s 28-year lifespan expected to produce 45 000 tonnes of copper in concentrate per annum.

On completion, the mine is expected to provide ongoing employment for approximately 1500 people. A modern, world class facility with fully mechanised underground operations, the mine was completed two months ahead of schedule and delivered its first copper concentrate in

AFRICAN RAINBOW MINERALS

October 2012. Its 2013 production saw an increase of more than 7,000 tons to reach a total capacity of 10,567 tons, of which ARM executive chairperson Patrice Motsepe said, “The mine is well-advanced in its ramp-up to full production which is expected to be achieved in the 2016 financial year. The full commissioning of the mine and the achievement of the ramp up remained the main focus for this period.”

The global mining environment is one in which some volatility in commodity prices prevails. ARM is able to mitigate this, however, thanks to its reputation for producing high quality iron and manganese ores that remain in strong demand, and, importantly, sell at a premium. As pollution concerns in China continue to be addressed, the demand for these ores and PGMs is only expected to increase. ARM’s primary focusses moving forward are centred somewhat around developments of its Lubambe Copper Mine. The commissioning

of a vertical shaft here in November 2013 led to an increase in tons milled of 49%, with copper production also up 60% in the same period. This mine is still set to achieve its desired steady state production of 45,000 tons per annum by 2016, while the Lubambe Extension Area also provides promising opportunities for its expansion.

Additional surface drilling indicates that the ore body extends even further east than originally expected, and as such the Extension Area’s indicated and inferred resources have increased from 105 million to 134 million tons.

Plans are also well underway to increase manganese ore production from 3.2 million to 4.6 million tonnes per annum, via the Black Rock Mine Expansion Project. This project involves the exploitation of the Seam 2 resource within the Nchwaning lease area and will be developed in two phases, with the first phase involving maintenance and

modernisation of the mine, to reduce annual unit cost escalations, followed by the second phase of expansion. While challenging times remain on the horizon, particularly with regard the prices of some of the commodities it produces, ARM’s strategy of focussing on quality growth within its diversified portfolio and ensuring that all operations are positioned below the 50th percentile of the global cost curve means that it looks set to continue building a competitive and sustainable portfolio of mining assets, and one that creates value for all its shareholders and stakeholders, as its operations continue to flourish.

AFRICAN RAINBOW MINERALS 011 779 1300 ir.admin@arm.co.za www.arm.co.za

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ARCELOR MITTAL SOUTH AFRICA

The African Continent’s

Steel Pioneers PRODUCTION:

Timothy Reeder

ArcelorMittal South Africa Limited is the largest steel producer on the African continent, with annual production of liquid steel currently standing at more than five million tons. With a depth of technical and managerial expertise dating back to 1928, a reputation for reliability and a sharply defined business focus has made the organisation into a modern, highly competitive supplier of steel products, both globally and domestically.

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BUSINESS PROFILE

RCELORMITTAL SA HAS A LIQUID STEEL PRODUCTION CAPACITY OF 6.5 MILLION TONNES PER ANNUM

ARCELOR MITTAL SOUTH AFRICA

//

ArcelorMittal South Africa’s association with the world’s largest steel producer, the ArcelorMittal Group, itself the world’s number one steel company with 316 000 employees worldwide, further cements its global standing and its participation in markets worldwide. ArcelorMittal is the leader in all major global markets, across automotive, construction, household appliances and packaging, boasting leading research and development and technology, as well as significant captive reserves of raw materials and peerless distribution networks. It is through this association that ArcelorMittal South Africa has access to world-class research and development and best practice processes, as well as aggressive procurement contracts and international market leverage. The company’s ability to generate profits throughout the fluctuations of the steel cycle is the result of years of intensive

well as an increase in local manufacture of various products brought about a spike in demand, necessitating the company’s expansion. Fast forward through years of development, notably in its joint venture with IDC, a company focussed on businesses that will benefit the South African economy, to build Saldanha Steel Mill in 1996, and following a merger between Mittal Steel and Arcelor Mittal Steel South Africa the company commenced trading under its new title in October 2006. In June 2006, meanwhile, a historic agreement was reached to combine Mittal Steel and Arcelor in a merger of equals, subsequently creating the world’s largest steel company.

This combined group, operating out of its headquarters in Luxembourg, is known as ArcelorMittal, today the world’s leading steel and mining company with annual achievable production capacity approaching 115 million tons of crude steel.

ArcelorMittal South Africa’s steel

//IN SUB-SAHARAN AFRICA STEEL DEMAND CONTINUES TO BE POSITIVELY IMPACTED BY SIGNIFICANT INVESTMENT// business re-engineering and a culture of continuous improvement that has cemented ArcelorMittal South Africa’s position among the lowest cost producers of steel in the world. AMSA is the principle supplier to the Southern African steel market, and with its wide range of products services the construction and heavy engineering sectors, pipe and tube manufacturers and the automotive market, as well as the furniture and appliance manufacturing industries.

AMSA’s is a history which started in 1928, when the company, then called Iscor, was founded as a statutory parastatal organisation, with its first works in Pretoria.

Initially the reasoning behind establishing the company was the desire to produce iron and a range of steel, and subsequently create employment opportunities. The first steel was tapped from the open-hearth furnace at the Pretoria Works on 4 April 1934, while wartime needs for steel as

operations comprise four major facilities, which produce both flat and long steel products. Combined, the flat steel operations at Vanderbijlpark and Saldanha works can produce each year 5.6 million tonnes of liquid steel, a figure which places them as its largest suppliers in Africa. Vanderbijlpark Works is one of the world’s largest inland steel mills and the largest supplier of flat steel products in sub-Saharan Africa, whose central focus is to maintain and grow its established local market share through development of additional value-added products and a focus on industry partnerships.

Its international position is also being developed through a focus on high profit export markets and meeting international levels of both operational excellence and product quality, as well as customer satisfaction. Steel production at the works helped greatly to mitigate any adverse effects of the planned reline of the blast

furnace at the company’s Newcastle facility: “The effect of the reline of the blast furnace at Newcastle not producing 400,000 tonnes was partly offset by higher production volumes at Vanderbijlpark,” the company explained.

Saldanha Works, by contrast, is a largely export-focussed plant, and one of the world’s most technologically advanced and environmentally friendly steel mills, which produces ultra thin hot rolled coil for applications in the domestic and select export markets. This state-of-the-art plant near to the deep-sea port of Saldanha was commissioned and produced its first hot rolled coil in late 1998, and is currently producing at its designed nameplate capacity of 1.2 million tonnes per annum.

What sets the plant apart is its merging of cutting edge technologies to produce high quality ultra thin hot rolled coil (UTHRC), with this the only steel mill in the world to have successfully combined the Corex/ Midrex process into a continuous chain and making the plant a world leader in emission control and environmental management. Facilities and technologies at Saldanha Works were specifically designed to produce ‘clean’ steel, one with almost no impurities like tin and copper, with an exceptionally short continuous production chain - only 16 hours from the time iron ore enters the Corex or Midrex units to exiting as the rolled product.

At AMSA’s Vereeniging works the focus is very much on supplying input material for the manufacture of safety critical components for the automotive industry, seamless tube for the petrochemical, oil and gas industries and wire rod wire for fencing and hoisting rope used in deep shaft mining. It is the country’s major supplier of speciality steel products, seamless tube and forge products, producing 0.4 million tonnes of final product per annum and exporting 32%.

Its strategic priorities now are focused around retaining and expanding its share of the Southern African market, whilst supplying high quality, value added steels to certain international markets.

The fourth and final of AMSA’s principal facilities, Newcastle Works is the country’s foremost supplier of profile products. This

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ARCELOR MITTAL SOUTH AFRICA

//WE ARE A MAJOR PLAYER IN THE SOUTHERN AFRICAN STEEL MARKET// highly efficient and low cost operation exemplifies the success of the intensive re-engineering programmes undertaken at ArcelorMittal South Africa. Significant capital expenditure has been invested for the refurbishment of the plant and to introduce pioneering information systems. As such, operations have been optimised and global competitiveness at all levels is maintained. The priority here is the expansion of a strong position in the African market, with growth of its present market share being realised by providing customised solutions to clients’ needs, together with enhanced delivery reliability and premium product quality.

This South African steel producer is expecting continued growth and development in the region from a number of important sectors, moving forward.

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It explains that, “in sub-Saharan Africa steel demand continues to be positively impacted by significant infrastructure investment in roads, rail, housing development and energy projects, and various investment activities in the mining sector. Recent investments in the oil and gas sectors are also stimulating steel demand and further growth prospects are expected to arise from this activity.”

Central to this is the 180 000 tons of flat steel products it supplies to the country’s vehicle manufacturers. “We are a major player in the Southern African steel market and we supply a significant amount of steel to the automotive market to be used in the different stages of a vehicle’s life cycle, and this is part of our strategy to continue our good relationship with the automotive industry,” says marketing

manager for flat steel Nic de Jager. AMSA’s production of the higher strength chassis has sparked interest in the material from other car manufacturers around the country, which looks set to strengthen its position yet further. “Over the long term, the company will continue to propel the development of new higher strength materials and will also ensure that there is ongoing engagement between AMSA and vehicle manufacturers in the country in an effort to better understand their requirements,” he says, in line with the company’s strategy to reclaim domestic market share and to actively pursue new opportunities to continue its growth.

ARCELOR MITTAL SOUTH AFRICA 016 889 9111 info@arcelormittalsa.com www.arcelormittalsa.com

KUMBA IRON ORE

At Kumba, we are committed to supporting initiatives that have a positive impact on the local economy. The supply agreement that we signed with ArcelorMittal South Africa in 2014 does just that.

It has allowed us to continue the reliable supply of iron ore to the local steel industry at mutually beneficial prices, which in turn has helped the local economy thrive by enabling the continued production of steel.

MICHELLE BESNAAR Kumba Iron Ore Employee

SIGNED, SEALED AND DELIVERING

Results such as these have fuelled Kumba’s determination to be the developmental partner of choice for projects that benefit our country. www.angloamerican.co.za

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DHL AFRICA

Peerless

Delivery

Service

It is now more than 40 years since the DHL brand’s creators first conceived the idea of international express delivery. Now closely affiliated with the Germany-based Deutsche Post AG, the world’s largest air courier company and successor to the German mail authority Deutsche Bundespost, it is a match-up boasting enormous collective nous in the Express division of its operations.

PRODUCTION:

//

At present, the Deutsche Post DHL Corporation is responsible for the employment of more than 450,000 people, spreading their services across more than 220 countries throughout the world. The DHL brand incorporates four principal divisions, with the Mail section of its operation delivering in the region of 70 million letters each day in Germany and beyond, through its International Services. The carrying of goods by rail, road, air and sea comes is undertaken by its Forwarding/Freight division, while the Supply Chain/Corporate Information Solutions provides its customers with such contract logistics and corporate solutions as warehousing and warehouse transport services. It is the Express division that is charged with the transporting of courier, parcel and express shipments worldwide, with 100,000 employees ensuring the safest and swiftest arrival of the packages of its 2.5 million customers.

It is certainly all a far cry from the door-to-door approach with which the DHL brand began its dealings in the nascent field of international express delivery, with Dalsey, Hillblom and Lynn then

Timothy Reeder

conceiving the international air express industry in 1969. It was Hillblom’s decision to take up full-time the courier duties he had initially begun as a means of income whilst completing his studies in law. Filling a niche at the time, he and his eventual partners began by flying bills of lading, a document sent between the shipper of a particular good and its carrier, from San Francisco to Honolulu.

The use of air transportation was in itself yet further evidence of the ingenuity of the group, while the three partners also pioneered another commodity which would later prove pivotal in business – the corporate credit card. The thinking behind their innovative use of the flight option as preferred mode of delivery was initially to save time when passing through customs: essentially, customs were able to process the goods’ arrival before they had even arrived in the destination country, reducing waiting times in the harbour and in turn incurring fewer delays. The time thereby saved was subsequently passed on to its customers, with word rapidly spreading and allowing DHL to found this new sector of industry.

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BUSINESS PROFILE

DHL - SPECIALISTS IN INTERNATIONAL SHIPPING AND COURIER DELIVERY SERVICES

//THERE EXISTS A COMPLEX INTERDEPENDENCY BETWEEN THE NEEDS OF INDIVIDUALS, BUSINESS, THE MARKETS WE OPERATE IN AND OUR SOCIETY// The ensuing years illustrate the extent of DHL’s expansions worldwide, with 1979 bringing not only its tenth birthday, but also the introduction of its South African offices. By this time DHL had increased its operations to 360 service centres, to provide for the 85,000 customers counting on DHL and its express delivery expertise. The launch of its services in Johannesburg also brought this innovative company a number of other ‘firsts’, becoming the first international express, overland transport and air freight company in Africa, and allowing subsequently the development of integrated ground and regional air networks.

In its South African division, the

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three men working out of a single office in the country’s largest city has today grown into a staff of more than 800, across a 12 offices countrywide.

Its dedicated aircraft alone make on average 1760 flights each day, serving both domestic and international needs, while its ground routes are covered by a fleet of approximately 31,000 owned and subcontracted trucks and vans. It is unrealistic and logistically impossible to picture a scenario whereby DHL could offer its solutions without the power of its fuel-powered vehicles, and so the impact of its work on the environment is clearly an issue at the forefront of all its dealings, one that DHL has tackled across its entire range of transportation solutions.

Within the collection of its aircraft and facilities, DHL Express has “established guidelines that ensure only the safest and most modern, climate-friendly aircraft are used at all times.” Illustrative of its focus on keeping abreast of and employing the very latest in ecologically sound solutions, this drive is backed up by the necessity of all its new air facilities to “offer stateof-the-art technology and the highest environmental and safety standards.”

Clearly, while the necessary usage of air transport at a time when environmental matters have never been closer to the forefront of the collective conscious is a factor that may invite criticism from some parts, that its industry-leading sector solutions are carried out with such a desire to ensure it is also at the forefront of its ecological responsibilities is yet another feature to set it apart. Not limited to its aircraft, such measures have also been applied to certain vans in DHL’s fleet, the fuel of which has been updated to a compressed natural gas, and which it aims to implement into 50% of its vehicles.

DHL AFRICA

//EXPRESS HAS ESTABLISHED GUIDELINES THAT ENSURE ONLY THE SAFEST AND MOST MODERN, CLIMATE-FRIENDLY AIRCRAFT ARE USED AT ALL TIMES// The Deutsche Post DHL group is also one clearly committed to the social responsibility it holds. It is the principle sponsor of Leadership Magazine’s Tomorrow’s Leaders conference, which this year treated the ever-important theme of sustainable leadership. Its generous sponsorship therefore affords South Africa’s young and emergent leaders and executives the opportunity for active debate and learning, furthering their awareness of what Charles Brewer, MD of DHL Express Sub Saharan Africa, terms, “the complex interdependency between the needs of

individuals, business, the markets we operate in and our society.”

The Group’s GoGreen program, with the question of climate protection in mind, made Deutsche Post DHL” the first logistics sector company to set a concrete carbon efficiency goal”, with a target of achieving “a 30 per cent improvement in its CO2 efficiency by the year 2020. Not limited to thoughts of its climate-friendly GoGreen products and services, Deutsche Post DHL also provides logistical support to relief organizations at times of natural disasters, rounding off its dedication to social issues as a founding partner of Teach

First Germany, striving to afford equal educational opportunities at schools for children and young people. DHL proudly speaks of having been built on a “cando spirit, backed by solid know-how,” vowing to act “with integrity internally and externally”. Clearly the Group has taken on the challenge of “Managing a profitable business whilst ensuring the health of local & global environments”, as its CEO, Frank Appel, delineates the wish to “to help shape the dialog on sustainable business”, and press forth in its expansion as the global market leader of the international express and logistics industry.

DHL AFRICA 011 921 3666 info@dhl.co.za www.dhl.co.za

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CELLUCITY

Mobile phones:

COVERED PRODUCTION:

Timothy Reeder

Fortified by nearly 25 years of operations in the communications industry, Cellucity boasts the broadest range of mobile phones, computers and accessories available in any store in the industry and enjoys a strong relationship with Vodacom, thanks to a lasting commitment to innovation and customer service.

//

Cellucity was the first mobile company to have a presence in South Africa, with an overriding passion for the communication industry and customer service. It has been the recipient on numerous occasions of the prestigious Vodacom Dealer of the Year Award, rewarding the outstanding customer services it holds in such high regard. A leading African mobile communication company, Vodacom provides a wide range of communication services including mobile voice, messaging, data and converged services to over 61 million customers. Cellucity is today perfectly placed to offer the full gamut of services, ranging from Vodacom contracts, upgrades, problem free Porting to the latest phones to the widest choice of original accessories.

As General manager Chris Henschel explained, this is the story of a true South African business triumph. “We are South Africa’s leading independent Cellular retailer. We started out in 1991, prior to the introduction of GSM in South Africa, as a short term mobile communications

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company, renting out C450’s (those big analogue briefcase size portable phones) mainly to the burgeoning film industry in Cape Town. With the introduction of cellular into the market in 1994, we took the opportunity to branch out into the retail sector and at the time offered both MTN and Vodacom products.”

From its 28 stores nationwide, Cellucity and its welcoming staff group prides itself on an ability to offer a substantial upgrade on the average service so many among us will have grown accustomed to. Henschel describes how, “our initial outlet was a kiosk in the V&A Waterfront in Cape Town, and as such we were the only cellular outlet in a shopping mall.” The company’s growth in presence, which sees it now with branches conveniently placed in malls throughout South Africa, is testament to the values of interest and customer care. Its inception came at a time when technology was beginning to drive the communication industry, and in the years between 1990 and 2011 the market for cellular phones grew markedly, seeing developing countries and economies penetrated and

CELLUCITY STORES PROVIDE CUSTOMERS A HUGE RANGE OF SERVICES

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BUSINESS PROFILE

// 28

stores nationwide

every demographic of person with access to mobile phone technology. Henschel explains how Cellucity’s own growth was assured through the mutual support of each new store, during many years where it was widely believed that mobile phones would be nothing more than an expensive fad. “With a very cautious approach to the retail world, our growth strategy was to ensure that the business was always cash positive, and thus the opening of our second and third stores was dictated and hinged off the success of the first. Each additional branch opened was supported by the others.”

Key to Cellucity’s historic and continued success is its stocking of the widest range of brands, showcasing a whole host of manufacturers who are all bringing top of the range models to the market, at

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//WE ENSURE OUR STORE DESIGN IS WORLD CLASS, AS CONSUMERS SHOP WITH THEIR EYES FIRST// increasing frequency. It would be all too easy to simply restrict itself to simply carrying the most well known of these, but Henschel explains the company’s policy of variety and catering for every need. “With the cellular industry the main challenge is being able to identify the trends as well as establish which models are going to be the big movers and then ensure continuity of supply of these models. A simple retail premise, if you don’t have stock you can’t sell, holds very true for our industry and balancing your cash

flow to ensure you can take advantage of consumer demand for specific products is key.” Of course, the customer’s ability to make full use of their latest acquisition is essential – the product is rendered useless without this knowledge – which is where its specialist staff come into their own.

“As a leader in the smartphone space, we are regarded as a benchmark destination, for provision of service and support, in a largely technical environment,” boasts Mr Henschel. Cellucity’s stores today are designed to be as attractive as possible,

CELLUCITY

located in the largest and most accessible malls across the country. “we have our retail outlets in the best possible position in the mall, we also only opt for malls with a GLA (Gross Leaseable Area) of 60,000m2 to ensure the highest amount of passers by. “We ensure our store design is world class, as consumers shop with their eyes first. We deliver a world class service, we empower our staff to make decisions that will make the customers experience the best possible.”

It is a commitment to innovation that has helped continually drive Cellucity to the forefront of the market, alongside what Henschel describes as, “huge opportunities in South Africa for those with passion and entrepreneurial spirit.” Exemplifying this tireless pursuit of new opportunities is its benchmark

‘B4IGO’ service. This provides the most affordable, hassle-free cell phone solution for tourists who need to call home, chat locally and surf the web while in South Africa. With its proliferation of abbreviations and terminology, the South African telecommunications system has historically been something of a mystery, which has brought about Cellucity’s partnering with Vodacom to bring tourists and business people this service to facilitate hassle-free cell phone and Internet use while in the country. Simply, customers select the desired airtime and data bundle package, register with basic information and provide a collection date and time, and collect the resulting SIM card from a convenient airport. Cellucity also has data covered, as shown by its recently unveiled pre-paid data service

‘Hopper’. An absence of contracts means the flexibility to which customers have become so used can continue, preventing the nuisance of out-of-bundle billing and allowing data to be used for 60 days.

Hopper is currently in beta testing with no launch date having been announced yet, but it is understood that Cellucity is merely ironing out the last few details before releasing the product to market, providing yet another innovative solution to a common and costly dilemma.

CELLUCITY 021 401 1300 info@cellucity.co.za www.cellucity.co.za

www.enterprise-africa.net / June 2015 / 41

FEATURE

INNOVATION THAT INSPIRES A NATION South Africa is known among many other fantastic traits, as a country that aspires to be at the forefront of technological breakthroughs and first with amazing ideas. So much so that there are events dedicated to celebrating and showcasing some of these. We take a look at the SA Innovation Summit ahead of its 8th event coming up in August, and celebrate some of South Africa’s individual successes.

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The theme for 2015’s Innovation summit, ‘Innovation Intelligence’, seeks to address the mystery of creating that illusive competitive edge through new and convergent thinking. This exciting theme will be unpacked through a full and varied programme that will include a local and international plenary, panel debates, break-away sessions, highly interactive workshops and an in-depth matchmaking service, facilitated by industry professionals. The summit will look closely at the key challenges faced by entrepreneurs, developers, researchers, thought leaders, inventors and investors, as well as proposing inventive solutions and powerful tools to overcome these challenges. Participants can expect mindopening experiences that seek to influence and lead current thinking in the field of innovation and the problems ordinary South Africans face.

For the very first time, the organisers will be presenting ‘Market on the Edge’, where you can “sense innovation” and “get innovation”. More than just an exciting, jampacked three-day market, this is a unique opportunity to experience innovation intelligence in a truly sensory way – by seeing, touching, smelling, tasting and

42 / June 2015 / www.enterprise-africa.net

feeling innovation – then purchasing your favourite products. 81 new products will be showcased and there will be a host of food and beverage stalls, an electric car, Lego robotics, the Inventors’ Garage finalists, PwC Pitching Den and much, much more.

SOUTH AFRICAN DOCTOR MAKES SKIN GRAFT BREAKTHROUGH A new technique developed by doctors at Tygerberg Hospital is now challenging the traditionally bleak prognosis for serious burn victims, offering life-saving, viable and affordable treatment and making their previously bleak outlook much brighter.

Dr Wayne Kleintjes, the head of the adult burn unit at Tygerberg Hospital, developed the new technique. It makes use of the patient’s own skin, which is then externally cultivated in a laboratory from skin harvested via a skin biopsy. Other options, using skin from donors or other species are soon rejected and have proven to be of limited value.

The new technique is remarkable in the sense that it offers patients treatment at a fraction of the cost that similar techniques would normally cost. “With our new technique, we treated the first patient with a total cost of R995,” Kleintjes said.

The technique is not entirely new, but the culture method differs dramatically from others in its simplicity, effectiveness, biological safety and modest cost. The technique costs about R1 000; comparable treatment using existing methods could stretch to R1.8-million. A great advantage is that no immunosuppressant drugs are needed because the patient’s own skin is used.

Kleintjes explained that the technique was revolutionary because no expensive and extensive laboratory equipment was needed. “We can now grow skin in the room next to the patient,” Kleintjes said.

“The simplicity of the technique, the cost-effectiveness and the effectiveness is comparable to other skin culture techniques and also important is the fact that it is absolutely biologically safe. This makes it very suitable for use in a third world country,” he said.

THE SCHOOL BAG THAT TURNS INTO A LIGHT AT NIGHT When South African childhood friends Thato Kgatlhanye and Rea Ngwane finished high school, they knew they wanted to start something that helped young people and underprivileged communities. At age 18, they founded Rethaka, a social enterprise they hoped would do just that – although it would be two years before they figured out how.

“Yes, it is a bit funny that you would register a business without a business idea,” says Kgatlhanye. “But at the heart of it we actually wanted to do great things. And when the idea of the Repurpose Schoolbags came to us, we worked on it tirelessly.”

Repurpose Schoolbags is an

INNOVATION

environmentally friendly innovation made from “upcycled� plastic shopping bags with built-in solar technology that charges up during the day and transforms the bag into a light at night.

The project targets school children in underprivileged communities, allowing them to study after dark in homes without electricity. The bags are also designed with reflective material so that children are visible to traffic during their walk to and from school.

The pair spent the first eight months of 2014 piloting the schoolbags, followed by producing 1,000 bags from August to December.

The company has eight full-time employees in their factory in Rustenburg, but Kgatlhanye says they will employ an additional 12 people this year to help meet their production target of 10,000 bags for 2015.

The initiative has been targeting corporate social investment budgets where companies can sponsor the production of bags. Each bag costs R250 (US$20), which covers the cost of employee wages and production.

They plan to also produce bags for conferences and events, where participants will be able to choose to give the bag to underprivileged children after the event.

The company has already signed up some major clients, including Standard Bank and PwC. Kgatlhanye says they hope to develop other products along the same idea, such as raincoats, but at the moment they are focused on ramping up production of the schoolbags and expanding into other communities.

//WHEN THE IDEA OF THE REPURPOSE SCHOOLBAGS CAME TO US, WE WORKED ON IT TIRELESSLY//

www.enterprise-africa.net / Issue No.1 / 43

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