Essential Business Magazine Issue 10 by Optic Juice

Africa

www.essentialbusinessmag.com|Issue 10

Business is We look at how AEL Mining Services continues to make noise in Africaâ&#x20AC;&#x2122;s extraction sector

Also in this issue: Huawei p22 KPA p28 REMA TIP TOP p44 Powerpro p50 VRA p56

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AFRICA

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Production Manager

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Project Manager malempic@essentialbusinessmag.com

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E X E C U T I V E

D I R E C T O R S

Adil Nazer | Rahim Ali | Daniel Goha Essential Business Publishing 145-157 St John Street, London, EC1V 4PW, England www.essentialbusinessmag.com © Essential Business Publishing 2015

elcome to the latest edition of . As usual, we have a number of fantastic stories from some of Africa’s brightest and best companies.

First of all, we’re taking something of a powerfocused approach for this issue. In our lead feature, we look at the promise of renewable energy across Africa – a theme that is revisited in our expert interview with DNV GL’s business development director Sliman Abu Amara. Our first profile this month is AEL Mining Services, a company that is focusing on cutting-edge research and development to help cement its position during a challenging period for the industry. We also take a closer look at Huawei – a major name in the global ICT field, and a firm that is also making major waves in Africa’s public sector. Next up is Kenya Ports Authority, the operator of East Africa’s largest port, while industrial solutions firm REMA TIP TOP tell us about their focus on innovation and customer service. Returning to the energy theme, Nigeria’s PowerPro Company Ltd discusses the enormous opportunities for the Nigerian power industry, and we examine Volta River Authority’s plans for driving forward Ghana’s generation sector. Finally, there’s Kenya’s SECO, a key player in the country’s industrial construction marketplace. Enjoy the magazine, and we’ll see you next month!

Sam Wright, Editor in Chief

@essentialbizmag

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Contents An uncertain outlook

While renewables offer low cost and accessible electricity for millions of Africans, the continent’s most successful program is facing considerable uncertainty.

Energising Africa

DNV GL is the leading risk management company in Africa, and is working on a number of innovative projects to tackle the region’s electricity deficit.

News round-up

REMA TIP TOP

Industrial solutions firm REMA TIP TOP is continuing to grow. We look further into their journey so far.

Our sector-by-sector round up of this month’s biggest business stories, including Africa’s disappointing figure for intra-continental trading and the possibility of US sanctions against South Africa.

PowerPro AEL DRC

As one the world’s leading suppliers of explosives and initiating systems, business is booming for AEL DRC.

Huawei

General manager Adebayo Johnson discusses PowerPro’s operations, growth expansion strategy, renewables, and the challenges brought on by the decline in oil prices.

Volta River Authority

ICT giant Huawei is making enormous waves across Africa, where its innovative and customer-centric solutions are in high demand.

Kenya Ports Authority

The Port of Mombasa is the largest in East Africa. Managing director Gichiri Ndua tells us about the challenges of running the facility, as well as its high profile plans for expansion.

VRA is the country’s primary power generation company. Essential Business examines how the company is pressing forward in a challenging environment.

SECO

We take a look at SECO, a Kenya-focused business involved in construction projects across the country’s oil, gas and renewables sectors.

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There is little doubt Africa is continuing to be held back by a lack of power supplies. Increasingly, it seems clear that the continent is turning to renewables as a solution, even though its most successful government-backed generation scheme is under threat.

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OnTopic

Thirst for energy

Currently, it is estimated that over 600 million people across Africa are without a ready and reliable source of power. As well as the huge societal impact, this is dragging heavily on growth – according to the latest Africa Progress Report, the findings of a panel headed by former secretary general Kofi Annan, poor electrification is costing the continent at a rate of 2-4% of GDP. In some senses, this figure seems surprisingly low. With South Africa’s state-owned power utility Eskom lurching from crisis to crisis as it struggles to keep the country’s lights on, this impact is keenly felt in Africa’s largest economy. Recently, it emerged that Zambia is facing further job cuts across its crucial mining sector as the country’s power shortage continues due to rising demand and low rainfall effecting its hydroelectric projects. Meanwhile, Nigeria has warned Ghana that it may cut off natural gas exports used for power generation after failing to receive payment for more than a year. Ghana has faced issues with electricity supply for some time now, again also due to a lack of rain to power its hydroelectric spiraling domestic demand. Nigeria too is struggling – despite holding sub-Saharan Africa’s largest gas reserves, a lack of investment in pipeline infrastructure has meant that

the country’s power plants are failing to receive adequate supplies. Over in the country’s vast oil fields, associated gas – a by-product of oil extraction – is simply burned as it can’t be transported to market.

Eskom has a R225-billion funding shortfall which will stretch through to 2018, prompting it to seek a raise in tariffs

Going green

Earlier this month, the International Renewable Energy Agency (IRENA) released a report predicting that almost a quarter of Africa’s energy demand could realistically be met by renewable sources within the next 15 years. The reasons for its appeal are clear. Alongside the environmental benefits, such projects are usually turned around quickly, while small-scale

developments can supply local communities directly, without the need for expensive infrastructure. “The technologies are available, reliable and increasingly costcompetitive,” said Adnan Z. Amin, IRENA’s director general. “The onus is now on Africa’s governments to create conditions to accelerate deployment, paving the way for Africa’s unfettered, sustainable development. One scheme that looks to have achieved this is South Africa’s Independent Power Producer Procurement Programme (REIPPP), a government-backed program aimed at adding large volumes of renewable energy to the country’s supply portfolio. By cooperating with independent power producers (IPPs), this has led South Africa to be rated as one of the leading countries worldwide in terms of investment in renewable energy relative to gross domestic product (GDP). Earlier this month South Africa’s energy minister, Tina JoematPettersson, told attendees at the International Renewable Energy Conference in Cape Town that the country intends to continue pushing renewable power in a bid to fuel economic growth. “To date, renewable energy projects in South Africa have resulted in 20,000 jobs for South Africans and attracted R192.6 billion in investment,” she

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OnTopic

continued. “The IPP office is a success story that we would like to duplicate in other countries. The reshaping of the office has started in earnest and will have a larger mandate. “We would like to invite businesses and stakeholders to comment on what it is they appreciated in the office and what we could do better. The success story is because we pulled together a sound group of skills, which allowed us to work effectively and efficiently to meet time frames.”

A difference of opinion

A number of countries are already reported to be holding talks with South Africa over extending the REIPPP program out of its borders. However, amid all this positivity there are concerns that Eskom’s continuing financial problems could be about to derail the scheme altogether. A recently leaked letter, published by South Africa’s Moneyweb.co.za website, showed that that Eskom, which oversees the REIPP program, will not issue budget quotes related to the scheme until March 2018. These are required to achieve financial close on the developments, placing the 26 projects totalling 2.2 GW of capacity awarded under the fourth bid window at risk. The letter, which was written by Juan La Grange, a senior

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manager in Eskom’s transmission department, says that the company “is facing serious liquidity issues, making it impossible to commit to any of the DoE (Department of Energy) REIPP programmes after bid window three”.

Nigeria has warned Ghana that it may cut off natural gas exports used for power generation after failing to receive payment for more than a year Eskom has a R225-billion funding shortfall which will stretch through to 2018, prompting it to seek a raise in tariffs. This has been rejected by the National Energy Regulator of South Africa (Nersa), the body that oversees its activity. In turn, Eskom has blamed Nersa for its inability to issue budget quotes, saying in the letter that “the outcomes of the relevant Regulatory Clearing Account (RCA) submissions are not guaranteed so that Eskom cannot responsibly commit to the related expenditures”.

This dispute most likely centres on a previous experience with the RCA, a mechanism used to supply interim funding, with Nersa disallowing a number of claims due to Eskom’s alleged mismanagement. In response to the controversy, South African Independent Power Producers Association (SAIPPA) chair Sisa Njikelana has called for the two parties to enter talks in order to resolve the issue. “Nersa should intensively engage with Eskom to address this matter, especially its root cause. Nersa should further facilitate a broad consultation with various stakeholders before reaching a final decision”, he continued. As it stands, there is talk that Eskom may resume issuing budget quotes if the company’s board accepts a proposal put together a host of stakeholders, including the Department of Public Enterprises, the Department of Energy and the National Treasury. Yet the details of this plan are so far unclear, and no possible deadline for a decision has been provided. In a market that is currently cautious to say the least, this uncertainty is troubling. Given the REIPPP’s track record and broader economic benefits, for it to falter due to this would be a terrible shame, especially at a time when South Africa is hoping to export the model to other power hungry African nations.

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Expert

Energising DNV GL is the leading risk management company in Africa. Here, Business Development Director Sliman Abu Amara discusses the rise of renewable resources and its impact on Africaâ&#x20AC;&#x2122;s booming economy. Of all the East African energy projects that your company is involved with, which are you particularly excited about? We are at the forefront of the energy transition in East Africa. We are involved in the most innovative projects that tackle the electricity deficit in Kenya and provide confidence in the future electrification

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of Africa, including the incorporation of renewables. We are demonstrating our commitment to modernising and developing power in Africa by advising KETRACO. This government-owned organisation was established to develop new high-voltage electricity transmission infrastructure, in line with the countryâ&#x20AC;&#x2122;s development programme: Kenya Vision 2030.

Wind power generated at the Lake Turkana Wind Power plant will be fed into the national grid at Suswa. DNV GL demonstrated its commitment to modernising and developing power in Africa by advising on the construction of a 420 kV overhead transmission line and substations. The 426 km AC line runs from the national grid at Suswa (80km NW of Nairobi) to Loiyangalani (SE of Lake Turkana). The line is designed to strengthen the Kenyan grid and build a connection between Nairobi and one of the largest wind farms in Africa. It supports the government initiative to harness the countryâ&#x20AC;&#x2122;s rich renewable resources to boost the economy and respond to consumption needs in the capital. Without transmission lines such as this, the future development of reliable wind and geothermal resources would be limited and Kenya could be forced to rely on more expensive fossil fuels serving power plants in the coastal region. DNV GL has been involved in the Lake Turkana Wind Power Project since 2007 with services on project management and third party review. It is the single largest private investment project in Kenya and one of the largest wind projects in Africa. Another exciting project we are currently involved in is wind

ExpertInterview

mapping for Tanzania and Zambia for the World Bank ESMAP programme. These wind maps can be used by the government to assess the resource potential for strategic planning, and the grid owner is able to identify where these projects are likely to be built and to plan for future grid reinforcements to facilitate future connection in windy areas. Providing Tanzania and Zambia with these wind maps further boosts their renewable energy developments, stimulates economic growth and ultimately helps reduce poverty.

What are the main challenges of this region?

Africaâ&#x20AC;&#x2122;s economy is booming: seven of the ten fastest growing economies in the world are in sub-Saharan Africa. However this enormous economic growth has created a severe electricity shortage, which is hindering further commercial developments.

According to World Bank statistics, African manufacturing companies experience power outages on an average of 56 days per year. Reliable 365-daysa-year electricity supplies could help business in sub-Saharan Africa avoid losses of up to 20% in sales revenue. There is an urgent need to develop energy infrastructure across Africa, in order to provide the continent with wider

reaching and more reliable power as well as support future economic growth and prosperity for the African society.

emerging technologies can provide cleaner, smarter, more affordable and more reliable energy solutions.

Another challenge in the East African energy sector is related to the political and regulatory environment. Governments are implementing programs with ambitious targets to provide more people with durable electricity solutions.

Floating offshore wind will provide large-scale emissions-free power by 2050. A suite of smart grid technologies will provide households and communities with leaner, more local power. For example, smart meters could be a first step towards a smarter power system.

These dynamic trends create the backdrop for power generation and transmission projects in Africa. Authorities are paving the way for private entrants to the power generation sector. Renewable energies (wind and solar) are encouraged, like gas-fi red generation, as the gap between electricity demand and supply is growing faster than what renewables can respond to alone. We need to work together as an industry to overcome and tackle those challenges.

What is your vision for the energy sector?

Electricity has already revolutionised the way we power our operations, fuel our vehicles and light and heat our buildings â&#x20AC;&#x201D; it will have an even bigger role to play in the decades to come. Many

These meters can show users how much energy costs at different times, encouraging energy to be used at cheaper off-peak times. This goes toward addressing the immediate problem of reliability in grid networks, while also thinking ahead to a more sustainable and renewable energy future. DNV GL can help the African continent in its transition towards a more reliable, sustainable and cost-effective energy supply. East Africa should continue to invest in its energy sector, while prioritising further market liberalisation, boosting grid stability and grid connection while also accelerating renewables integration as it facilitates regional trade through expanded grid interconnection.

News

igeria is set to become selfsufficient in both wheat and rice production within three years, according to a policy document released earlier this month. FOOD

onstruction of the Grand Renaissance Dam in Ethiopa has finally begun after several months of CONSTRUCTION stalling.

“There is an extreme delay in achieving the road map we agreed in August 2014, compared to the construction rates of the Grand Renaissance Dam,” admitted Egyptian Minister for Irrigation, Hossam Moghazi. Egypt has a current water deficit of 20 billion cubic metres, which it makes up for in the short term through water recycling. However, due to the potential health and environmental risks

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of using recycled water for a prolonged period of time, this is not sustainable. The Grand Renaissance Dam is situated on the Blue Nile River and is set to become Africa’s largest electric hydro plant, with a storage capacity of 74 billion cubic meters of water. Elsewhere, US$410 million has been allocated to improving road infrastructure in Zambia in a bid to boost connectivity and spur economic growth. Out of the $1.25bn Eurobond issue, $268 million will go into domestic debt swap and clearance, and $20 million will be spent on water and sanitation. Minister Mvunga notes that the Eurobond will be repaid in three instalments, from July 2025, July 2026 and July 2027.

The country is & BEVERAGE aiming for selfsufficiency in rice production within 24 months, and self-sufficiency in wheat production within 26. Nigeria is currently the world’s second largest importer of rice, and one of the biggest importers of wheat from the US. Meanwhile, in South Africa, the food industry is under serious threat from the water crisis, with food prices set to rise at the beginning of December. “Families from poor backgrounds already spend 50% of their monthly budget income on food, so those kinds of people will suffer the most now,” says Neil Davison of Food Bank South Africa. “Government will have to help farmers on the current crisis, but we don’t know how exactly they will do it.“

News E N E R G Y & M I N I N G

arlier this month, Eskom CEO Brian Molefe told South African Parliament that the country was in urgent need of more nuclear power plants.

“We do not think it is possible to have an energy mix without nuclear,” he said. “It is feasible to fund and operate further nuclear plants in South Africa, and it is urgent that we do so.” Meanwhile, a joint venture between the DRC’s state miner and two Chinese firms has produced its first copper, according to the mines ministry. The Chinese companies — Sinohydro Corp and China Railway Group Ltd — pledged to build $3 billion’s worth of infrastructure in the DRC in return for a 68% stake in Africa’s leading copper producer, Sicomines. Over in Ghana, national electricity producer Volta River Authority (VRA) has promised to add 110MW of power to the national grid before the end of 2015. A further 110MW will be added in February, helping VRA attain its 220MW target of agreed power by 2016.

t just 11%, Africa’s figure for intracontinental trading is the lowest in the world, the African Trade Policy Centre (ATPC) has revealed. Europe’s figure is much healthier at over 60%, and Asia sits just above Africa at 25%.

In a meeting earlier this month, the ATPC urged African countries to make an effort to increase levels of intra-African trade so that the continent’s economies are more resistant to fluctuations on other continents. Elsewhere, the US has threatened to suspend South Africa’s agricultural trade privileges after accusations from Washington that Pretoria had failed to show commitment to lifting trade barriers. T R A D E The African Growth and Opportunities Act (AGOA) is Washington’s main trade policy with Africa, and gives African countries priority access to the US market. If South Africa does not meet certain benchmarks within the next two months, this agreement will be suspended.

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AEL DRC w w w . a e l m i n i n g s e r v i c e s . c o m

Business is

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Mining

Our success is based on our ability to adapt to challenging operating environments and be flexible to our customers’ needs

Established in South Africa back in 1896, AEL Mining Services has grown to be one of the world’s leading suppliers of explosives and initiating systems, with 58 plants and 34 sites in more than 20 countries – and more on the way.

or over a century, AEL Mining Services — a member of the JSElisted AECI Group in South Africa — has been developing, producing and supplying commercial explosives and initiating systems for use in mining, quarrying and construction markets across Africa and Indonesia. AECI comprises of 16 businesses, which are complemented by production facilities and offices across Africa, South East Asia, South America and Europe. Other companies in the group include Chemfit, Crest Chemicals, Acacia, and Akulu Marchon. “AEL has established itself as a significant international supplier of explosives products and services on multiple continents,” says Francis Kasongo, Managing Director of AEL DRC.

“In our quest to remain relevant to our customers, AEL continually invests nearly 1.5% of its annual global revenues into cutting-edge research and development. Each year we deliver ground-breaking innovations that help us ensure mining safety, environmentally friendly solutions, and production efficiencies that result in numerous downstream benefits for our mining partners.” Kasongo has been working with AEL DRC since 2002. Over that time, he has seen the company broaden its focus to markets outside of Africa. “In terms of quality, environment and services, we aim to be an international leader in the mining solutions sector,” he tells us. Putting money into research and development has paid

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off. AEL has, for some time, been the African leader in the development and introduction of electronics detonators for use in the blasting process. “Our partnership with the worldrenowned electronic blasting systems technology developer, Detnet, brings new technological advantages to the market on regular basis,” explains Kasongo.

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In terms of quality, environment and services, we aim to be an international leader in the mining solutions sector

“We put high emphasis on sustainable development and the environment, which is demonstrated by our environmentally friendly ecoformulation explosives.” AEL’s on-going research and testing has also led the company to develop an innovative way of using refined black oil instead of pure oil in its products.

Mining

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“This will play a significant role in assisting us to conserve the oil reserves we currently have, as well as helping our customers reduce their carbon footprint by disposing of their used oil in a responsible manner,” he explains. In the mining industry, used oil has become an integral ingredient in the production of bulk emulsions, which are utilised in the large-scale mining of minerals such as copper, cobalt and gold. While copper price is down by almost 50%

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We see ourselves not as a commodity supplier, but as a value-added services provider since the beginning of the year — the lowest it’s been since the financial crisis — and with cobalt and gold also on the downtrend, the situation is putting AEL’s mining partners under considerable pressure. “It is very difficult to say where the market is going, however we are conscious that the current

situation is serious. At AEL, we partner with mining companies and the aim is accompanying them through this difficult time. We have taken and are taking serious initiatives to assist our partners to navigate this difficult path.” This approach is driven by the company’s core values, known

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In our quest to remain relevant to our customers, AEL continually invests nearly 1.5% of its annual global revenues into cutting-edge research and development as BIGGER (Bold, Innovative, Going Green, Engaged, and Responsible). “We see ourselves not as a commodity supplier, but as a value-added services provider,” says Kasongo. “We have implemented AEL sites with dedicated staff within our mining partner’s sites.” This allows AEL to permanently interact with its partners on the ground, making it easy for them to stay informed and understand their needs and requirements. “Our success is based on our ability to adapt to challenging operating environments and be flexible to our customers’ needs. We achieve this by developing fit-for-purpose solutions in partnership with our customers. Our key aim is to seamlessly integrate into our customers’ operations,” he says. Plans for a new plant in the DRC are in progress. AEL’s DRC entity was incorporated back in 2005, and the company had acquired all necessary permits to import, store, manufacture, transport

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and perform services throughout the DRC by 2006. “AEL Mining Services has established and maintained a fully-fledged local entity,

compliant notably to civil explosives, customs, environmental, mining and tax regulations,” he says. Most of AEL’s operations in the DRC are located in Katanga, the copper cobalt segment. Here AEL has developed a breadth of experience and a wealth of knowledge where geology and logistics are concerned, as well as having forged strong relationships with local authorities and business bodies.

Mining

AEL’s operations in the DRC have been growing steadily over the last two decades, and today the country comprises a significant component of its business. As such, Kasongo tells us, the company is deeply committed to the DRC and its mining industry. “We are the largest explosive organization in the DRC. Our local capability is unsurpassed, and is led by our 113 local permanent employees, including mining engineers, explosives

engineers and licensed blasting operators,” he explains.

the current downturn is evidence of its experience in the sector.

By partnering with some of the major international mining houses in the DRC, and by providing fit-for-purpose solutions to supply services in different segment commodities including copper, cobalt and gold, AEL is confident in its position here, despite the current commodity prices. However, the cyclical nature of these markets means that things are bound to pick up at some point. AEL’s rational and organised response to

“We are confident of the future of the DRC, and we see the political environment as stable. We have opened an office in Kinshasa with the aim of developing our footprint out of the former Katanga province,” he explains. “We are busy establishing a bulk distribution site in the centre-East of the DRC. We will establish a new plant in the DRC, and will be looking more at the economic environment than political events in order to do so.“

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Huawei e . h u a w e i . c o m / e n /

Making

ustomer-centric innovation and strong partnerships are at the heart of Huawei’s philosophy. The company’s products and solutions have been deployed in over 170 countries, and serve over a third of the world’s population, making it one of the best-known ICT brands worldwide.

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Huawei’s strategy in the enterprise domain focuses on close cooperation and integration with partners to deliver a wide range of highly efficient customer-centric ICT solutions and services that are based on a deep understanding of customer needs. In line with the strategy, a broad portfolio of innovative ICT solutions that cater to global vertical industry

and enterprise customers across government and public sector, finance, transportation, energy, large enterprises and small and midsize enterprises (SMEs) are offered which covers enterprise networking, unified communications & collaboration (UC&C), cloud computing & data center, enterprise wireless, network energy and infrastructure services.

Communication

Earlier this month, leading ICT solutions provider Huawei was awarded the 2015 Kenyan Frost & Sullivan Competitive Strategy Innovation and Leadership Award. Here we find out more about the companyâ&#x20AC;&#x2122;s work in the communication and transport sectors.

Staying secure

The renowned Huawei safe city solution focuses on assisting governments with the implementation of information and communications technologies (ICT) platforms that ensures the development of secure, stable, and efficient social and economic environments. Convergent command, city surveillance

and road safety are key aspects of the solution which is implemented using the following technologies: intelligent video surveillance, video conference, eLTE bandwidth trunking, unified communications and GIS systems to achieve visual dispatching, efficient command. In addition, the cloud computing and agile networks solutions implement a secure, scalable cloud

surveillance platform and an intelligent video big data analysis platform. These solutions could significantly improve the level of municipal management, gathering information from around city and integrating it together, thereby allowing emergency personnel to process incidents quickly, accurately and proactively. Government agencies will also be able to

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Rose Moyo Wireless Solutions Director Huawei Enterprise Solution Department, Eastern and Southern Africa Region

At the moment there is a strong interest in revitalising the railway sector in the region obtain incident information and deploy rapid response to various urban security matters promptly. The solution has just been deployed in Kenya, covering Nairobi and Mombasa. It is linking over 1800 surveillance cameras with 195 bureaus and 7,600 police officers. It was for this that the company was awarded the Frost & Sullivan Competitive Strategy Innovation Award in October. “Authorities can conduct panoramic video surveillance of Nairobi’s urban centre, as well as maintain a highly agile command and dispatch setup that runs on satellite-based global positioning system (GPS) and software-based geographic information system (GIS),” said Frost & Sullivan analyst Joanita Roos at the time. The solution also provides a video cloud storage platform, analytics tools and protection against cyber-attacks. There have been impressive successes in other fields, too. Earlier this year, Huawei announced a partnership with Siemens Convergence Creators to deploy South Africa’s

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first Global System or Mobile Communication — Railway (GSM-R) for the Passenger Rail Agency of South Africa (PRASA). The project’s delivery is currently in progress, when Huawei was awarded the contract for the metros of Gauteng, Western Cape and Kwa-Zulu Natal. The project includes integration towards the existing MPT network, and teaming up with Siemens has allowed Huawei to provide a complete end-to-end solution that combines Huawei’s GSM-R solution with Siemens CVC’s dispatching and voice recording technology.

Rose is the Wireless Solutions Director for the Huawei Enterprise Business Group of the Eastern and Southern Africa region. As a professional engineer with a vast experience in telecommunications project management and ICT regulation, her passion lies in the areas of solutions design and business development. Her academic background includes a Master in Engineering (Telecommunication Major) from the University of Witwatersrand (South Africa ) and Honours degree in Electronics Engineering from the National University of Science and Technology in Zimbabwe. She fi rmly believes that a positive attitude will always ready one for greater challenges. Her strengths in communication and patience make her a formidable leader and mentor within the company.

The Railway Industryâ&#x20AC;&#x2122;s Chosen Partner for Dispatching and Recording Siemens Convergence Creators Railway Communication Management Railway operators today manage a highly complex inter interplay of operations of staff and assets in real-time, including the recording of voice communications, data messages and location-based information for later review and to meet legal requirements.

a single system to interconnect to all different networks. All components are built around standard off-the-shelf hardware, reducing the hardware maintenance cost to IT maintenance levels.

Integrated Fixed Dispatching System for GSM-R is a comprehensive, feature-rich, highly reliable and scalable dispatching solution designed to smoothly interconnect multi-network technologies. It is fully compliant with EIRENE and MORANE standards, TĂ&#x153;V certified and built specifically for a distributed controller position in the railway environment. GSM-R Voice Recording is the industry standard for exact, secure and easily accessible communications documentation. It ensures the permanent capture of real-time voice and data of the mobile to mobile and mobile to dispatcher and active Voice Group Call Services, operable in a fully redundant setup. Siemens Convergence Creators Professional Mobile Radio / Command and Control for Communication solutions interact seamlessly with legacy network technologies such as MPT, VHF, UHF, TETRA and SIP. They enable railway operators to use

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Mustek

“Huawei and Siemens Convergence Creators have cooperated for many years in the fields of GSM-R and eLTE development, with dispatching and voice recording systems a crucial part of Huawei’s GSM-R solution,” said general manager David Xu, speaking back in July. The GSM-R is a digital voice and data train-to-ground communication system considered the international wireless standard for railway applications. The secure platform facilitates voice and data communication between railway operational staff, including drivers, dispatchers, shunting team members, train engineers, and station controllers. It delivers

For PRASA staff, this means more efficient communication. For passengers, it means a more efficient service. The GSM-R Voice Recording System will be used in a railway telephony system to record in a safe and redundant way the operational communication, especially between dispatchers, train staff and railway maintenance workers and shunters. This recording will be used later for liability matters and postincident analysis in case of railway accidents. “Due to high performance indicators demonstrated

Earlier this year, Huawei announced a partnership with Siemens Convergence Creators to deploy South Africa’s first Global System or Mobile Communication — Railway (GSM-R) for the Passenger Rail Agency of South Africa (PRASA). great features such as group calls, voice broadcast, location-based connections, and call preemption in case of an emergency. The flexible architecture of the GSM-R Dispatcher solution will enable PRASA to find and manage field staff and assets directly from its control centres.

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by the solution in our integration labs, we are confident that PRASA will benefit greatly from the design offered by Huawei and Siemens Convergence Creators,” explains Rose Moyo, Huawei Enterprise wireless solutions director for the Eastern and Southern Africa region.

Huawei Enterprise entered the SA market at the end of 2010. It was at this point in time that Mustek extended the then Huawei Symantec relationship to embrace Huawei Enterprise. Mustek was an early adopter of the brand in the South Africa. 5 years on the Mustek’s team consists of 10 dedicated individuals who hold multiple certifications for both sales and pre-sales which in turn allows us to talk with confidence when we assist our partners in designing Huawei solutions. Mustek has a passion for Huawei as our sole enterprise brand with which we can build end to end business offerings to suit the market in which we operate. With our proven and trusted logistics capabilities, Mustek is the distribution partner of choice! Siobhan Hanvey – Huawei Business Unit Manager at Mustek

“At the moment there is a strong interest in revitalising the railway sector in the region. In the endeavour to facilitate an efficient and reliable railway service that helps to integrate the region, there is need for common standards and procedures, particularly in terms of infrastructure including the operation rail communication system,” explains Moyo. “We will continue to encourage the rail operators in the region to adopt the system as there would be a number of benefits in the adoption of a standardised system such as GSM-R. Lessons can be drawn from regions that have adopted the standard with the goal of achieving interoperability using a single communication platform which can also be replicated.”

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Kenya Ports Authority w w w . k p a . c o . k e

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Logistics

The Port of Mombasa is the largest in East Africa and provides direct connectivity to over 80 ports worldwide. Kenya Ports Authority (KPA) has been at the helm since 1978 and has seen traffic increase at a rate faster than the global average. Here, Managing Director Gichiri Ndua talks about expansion, growth and the challenges that come with managing such a large facility.

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Mombasa ship chandlers Ltd

n the first half of 2015 alone, the Port of Mombasa handled 13,212,379 tons of throughput – an 11% increase on the previous year that places Mombasa ahead of the 3.5% global average for port traffic growth. As impressive as this is, it has created a challenge in the form of additional pressure on its facilities. With berth occupancy now at 80%, swift expansion is key to the future of the Port of Mombasa, as well as the broader Kenyan economy.

We can attribute this growth in cargo volume to the confidence that shipping lines have in the efficiency of the Port of Mombasa

“We can attribute this growth in cargo volume to the confidence that shipping lines have in the efficiency of the Port of Mombasa, particularly following the various development projects that we’ve put in place” says Ndua. “We now receive bigger ships and our transshipment traffic is growing.”

In fact, the port recently handled the largest vessel to ever visit the facility – and indeed, the only vessel with a 6000 twenty-foot equivalent unit (TEU) capacity to ever call on the East African coastline – the Maersk operated MV Clemence Schulte, a 255 meterlong container ship built in 2014.

All Supply Mombasa Shipchandlers is a longstanding family business offering a wide range of services to ships calling at the Port of Mombasa, where it has been operating as a ship supplier for over 40 years. The only dedicated ship chandler in Mombasa accredited with the ISSA (International Ship Suppliers and Services Association) quality standard, it has a wellestablished reputation for supplying high quality products and services. The company serves all commercial shipping segments – cruise liners, tankers, cargo ships, Naval ships as well as offshore and research vessels. Services include provision of admiralty charts, fresh and dry stores, fresh water and any technical equipment and all supplies a ship may require. All Supply Mombasa Shipchandlers supply chain stretches all the way from the European Union and South Africa to the Port of Mombasa where it imports a wide range of internationally recognised food brands, specific for the Ship Supply industry and, in the process, creates a unique selling proposition to its wide range of customers. The company has built a steady and growing customer base through working closely with strategic partners in the vegetable and meat industry in order to guarantee the highest quality fresh produce that is processed and packed in strict hygiene conditions.

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This would not have been possible a few years back. On its mission to achieve World Class Seaports of Choice status, KPA began implementing the Mombasa Port Development Project (MPDP), a huge endeavor consisting of multiple plans with the ultimate goal to increase capacity among others. “KPA is constructing a Second Container Terminal by reclaiming 100 hectares of land from the sea. The terminal is being put up in three phases. Phase one involves the construction of two berths, No.20 (220 metres quay length) and No.21 (350 metres quay length).” The first phase is currently 92% complete.

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Kenya is emerging as one of Africa’s key growth centres with sound economic policies in place for future improvement “It will have a capacity of 550,000 TEUs per year and will be operated by a private firm,” Ndua tells us. “The process of identifying the operator is in tender evaluation stages.”

Looking forward

“The government of Kenya came up with Vision 2030 — a development agenda with a vision of being a newly industrialized country by the year 2030,” he continues. “Consequently the Port of Mombasa was identified as an important catalyst in this vision and the Mombasa Port Development Project (MPDP) became a flagship part of Vision 2030.” Given the scale of the port’s traffic, as well as its global reach, this should be no great surprise. As it stands, this means that KPA is a central point in the government’s plans boost to medium-term growth in what is

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now one of sub-Saharan Africa’s fastest growing economies. As well as increased domestic demand, shipments to nearby landlocked countries such as Uganda, Rwanda, South Sudan and the Democratic Republic of Congo, are also on the rise. This has meant that a host of new roads, railways and power projects – including transport links from Kenya to South Sudan and Ethiopia – will be built over the coming years, many of which are being funded by overseas investors. A second port in Lamu, north of Mombasa, is also under construction and, once completed, will have a capacity of 23 million tonnes per year. Compared to many global economies the outlook is very favourable indeed.

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Earlier this year, a report from the World Bank estimated that Kenya will see growth increase by 6-7% by the end of 2017, compared to an increase of 5.4% in 2014. This was attributed to the planned infrastructure spending program as well as the benefits of continuingly low oil and gas prices.

“Kenya is emerging as one of Africa’s key growth centres with sound economic policies in place for future improvement,” it stated, adding that “the country’s fiscal expansion [has] allowed it to finance major infrastructure projects without putting excessive pressure on domestic financing”.

The rail handles less than 5% of the cargo that moves out of the port, while the rest relies on road trucks. This leads to traffic snarl-up, especially with our underdeveloped road network

However in order to sustain this growth, it continued, Kenya must “boost productivity and improve the business environment to regain and increase its competitiveness”. In order to achieve this it called for the country to carry widespread business reforms, as well as completing work at the port of Mombasa, improving the efficiency of its massive infrastructural projects and strengthening governance”.

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Scaling up

The scale of the MPDP program is impressive to say the least. This project is being funded largely by the Japan International Corporation Agency (JICA) – a body responsible for the overseas investments of the country’s government – and will see the port expanded to an annual capacity of 1.3 million twentyfoot containers. So far, this work program has included dredging the channel to minus 15 metres and widening its turning basins to 300 metres at its narrowest points – all in aid of preparing the port for bigger vessels so that the region can reap the benefits of economies of scale. Mombasa’s yards have been expanded too and exit and entry gates have been widened with additional lanes. Equipment has also been updated with Mombasa acquiring several new twin-lifting ship-to-shore cranes. A new versatile ICT program has been implemented backing increased ship turnaround time and an updated security system, the world-class Integrated

Security System, is now in operation at the port. “Other port development projects included the construction of Berth No.19 to expand the container terminal by 240 metres quay. This was commissioned in August 2013 and the port immediately started to receive vessels of above 220 metres which has now become the common size,” Ndua tells us. “MV Tia was 261 metres long but quite narrow in width with the capacity to handle 4500 TEUs. Maersk Cairo was 249 metres with a capacity of 5000 boxes and Maersk Clemence Schulte – our biggest visitor yet – was 255 metres long with a capacity of 6000 TEUs.

As well as increased domestic demand, shipments to nearby landlocked countries such as Uganda, Rwanda, South Sudan and the Democratic Republic of Congo, are also on the rise

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The presence of a number of cargo interveners, such as government agencies with conflicting mandates and objectives, mean that progress isn’t always as quick as KPA would like Another crucial part of the scheme is the construction of the planned US$346.2 million Dongo Kundu bypass, a road that will connect Mombasa’s mainland to the south coast by a bridge, reducing heavily congested freight and transport routes. For the port, this smoother flow will considerably improve connectivity, while it will also ease the burden of bottlenecks at the Likoni ferry. This is used by over 300,000 people and 5,000 vehicles each day, and has long been seen as challenge to the region’s growth. “The Mombasa Port Development Project is one of the biggest single

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ODA projects in Japan’s history of economic cooperation with Kenya. Development of the Mombasa Port is critical for the coastal region and for Kenya to realise its long-term plan of the Vision 2030,” said Japan’s ambassador to Kenya, Toshihisa Takata, earlier this year. “We agreed with the government of Kenya that it was crucial to construct a link road that connects the new container terminal of the Mombasa port, with a northern corridor. We also agreed that a link road was necessary to connect to the Dongo Kundu area to enable the south coast of Mombasa to develop.”

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Sailing ahead

With all this in mind, the challenges KPA faces at Mombasa make the port’s recent advances even more impressive. The presence of a number of cargo interveners, such as government agencies with conflicting mandates and objectives, mean that progress isn’t always as quick as KPA would like. “We have Kenya Revenue Authority whose main agenda is to maximize tax collection irrespective of whether it will slow down trade or not” says Ndua. “Then we have the private sector bodies including Clearing and Forwarding Agents; Ships Agents; Transporters; and Container Freight Stations (CFSs).” Recently, it emerged that the local Mombasa government is pushing to increase taxes for branded containers and vehicles leaving the port, raising the fees by US$97 and US$29 respectively. Currently, these rates already stand at $293 and US$117. Other charges such as for tonnage and inspection have also been increased.

Kenya will see growth increase by 6-7% by the end of 2017, compared to an increase of 5.4% in 2014

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There are other difficulties, too. A number of agencies are often slow in embracing IT, Ndua adds, whereas KPA has been going paperless for a while now. Due to this, communication is not as efficient as it could be. Meanwhile off-take of cargo is slow due to the quality of the transport network. “Off-take of cargo is slow. The rail handles less than 5% of the cargo that moves out of the port, while the rest relies on road trucks. This leads to traffic snarl-up, especially with our underdeveloped road network,” Ndua explains. At the same time, the company has been forced to lay off some members of staff due to

concerns that their academic qualifications had been forged. These issues aside, the future is looking bright for the Authority. Phase two of the expansion is underway, with KPA in the process of identifying an operator. The winning bidder will operate 51% of berths 20 and 21, with local investors taking up the remaining 49%. This, it is hoped, will cement Mombasa’s position as East Africa’s leading port, particularly as it is a time of increased competition due to major investments in port infrastructure over in Tanzania and Djibouti. Interest in the tender has been strong too, with 12 firms

Logistics

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shortlisted earlier this year. These include international names such as APM Terminals, DP World, China Merchant Holdings, and Cosco Pacific, along with joint ventures between Toyota Tsusho Corporation and Grup TCB and Mitsubishi Corporation and Freight Forwarders Kenya. The first phase of the project is also well ahead of schedule, with KPA saying earlier this year that it will be commissioned by November rather than its original March 2016 deadline. The tender of a new oil jetty, which will be able to handle as many as four vessels at a time, is also set to take place in the fourth quarter of this year.

Tuning up

In the meantime, KPA’s drive for efficiency is also bearing fruit. According to a recent report by Kenya’s Standard newspaper, costs for traders at Mombasa has dropped by half over the past decade due to the company modernization program, as well as increased capacity. “The cost of freight has dropped drastically in the last ten years,” said Juma Tellah, chief executive of the Kenya Ships Agents Association. “We used to pay an average of Sh450,000 to transport a 40 foot container from Europe to Mombasa but currently it costs Sh250,000.

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With an initial design capacity of 22 million tones per annum, the Standard Gauge Railway (SGR) line will decongest the Port of Mombasa and shift the bulk of cargo transport from roads onto the railway line. Seamless connectivity across the borders of Kenya, Rwanda, Uganda, South Sudan, Eastern DRC, and Ethiopia will guarantee easy access to the Port of Mombasa C O N N E C T I N G N AT I O N S … P R O S P E R I N G P E O P L E

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A 40 foot container of tea from Mombasa to Karachi currently costs Sh45000 or Sh40000.” Much of this, he added, was due to an increase in oﬄoading and loading of cargo, as well as a significant fall in the time importers use to clear their freight at the port. Back in August KPA said that between 2013 and 2014, the “dwell time” – the average time a container stays in port between the time it lands at quayside and exits at the gate - had fallen by a day, to 3.9 days. Meanwhile the average turnaround time remained the same at 3.5 days from 2013 to 2014, despite a significant jump in activity. These figures compare favourably to Europe’s major ports, where dwell times are typically less than a week. For other subSaharan countries though these number are much, much higher, with vessels usually confined at port for 19 days in Douala, Cameroon, and 20 in Tema, Ghana. Still, the company is hoping to improve further. Yet, says Ndua, its progress should not just be measured in terms of capacity and throughput. “Last year we handled a record one million TEUs and this year we are set to handle 1.2 million TEUs,” he continues. “At the same time though we are continuing to improve our services to customers, grow business and enrich lives in the region, which is just as important.”

REMA TIP TOP w w w . r e m a - t i p t o p . c o . z a

Continuous

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Manufacturing

O REMA TIP TOP, a world leader in the supply of industrial solutions, has been implementing some exciting new strategies over the past 18 months. Essential Business takes a closer look at the companyâ&#x20AC;&#x2122;s focus on innovation and adding value for its clients.

rganisations can no longer assume that their business models and operations will build or sustain their competitive advantage. While change is nothing new, the speed, scale, and impact of a variety of fundamental shifts, important core structures, and methods of the industrial economy are speedily and dramatically reforming. Driven mainly by connectivity, globalization, digitization, and new methods of collaboration, traditional limitations within business are blurring and dissolving, enabling new approaches to challenges. As a result, organisations are increasingly looking at different methods to create sustainable competitive advantage. For REMA TIP TOP, this is especially true. The company was founded in 1923 by brothers Otto and Willy Gruber. Since then it has expanded over the years to become the multi-million euro global operation it now is. Today REMA TIP TOP has a head office

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in Poing, Germany. There are also more than 190 partner companies worldwide and 13 manufacturing facilities globally offering industrial solutions in the form of products and services in material processing, surface protection, and the automotive sector. “To operate in a global environment and to achieve growth locally, it is important to raise the level of professional and leadership competencies. If we are to embrace concepts such as ‘world class’ and ‘business excellence’ we must lift the skill and experience base of the management and employees. In addition, it should be our aim to

Our drive is to find the right people who compliment the culture of the organisation and who support and uphold our values. One of the key success factors of our business are our people – highly skilled and engaged

build flexibility into the workforce in order to be able to cope with the rate and degree of change”, says Myrna Brauns, corporate strategist. She goes on to add that “as the organisation moves ahead the degree of success could well be limited by the skill and quality of its people. Through the capabilities that the employees possess and apply in the execution of their jobs, the human capital element becomes the key strategic factor for gaining and maintaining its competitive advantage”. At the same time, REMA TIP TOP has been focusing for the last few years on customer experience through enhancement and extension of the service capability around the products they supply. “The customer experience should be consistent at each touchpoint of the organisation the customer comes into contact with, in line with our brand essence and brand positioning,” says Linda Mohamed, marketing manager. “We have adopted a very customer centric approach to business, and been resolute and relentless in developing a deeper understanding of our customer, the industry they operate in, and the needs of their organisation in order to provide a better service,” adds Pierre Maritz, managing director. “Through collaboration with thought leaders, and industry experts and incorporating technology into our product

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and service offerings we have managed to remain ahead of our competitors and risen as leaders in innovative solutions to our customers providing a service offering that enhances their business as well as saves costs,” he continues. The company also prides itself on its ability to attract and retain the best talent in the industry, providing it with a major competitive advantage – the skill and ability of its product specialists to positively impact customers’ operations through their expertise gained from study and years of experience in the industry. This results in solutions for the customer that are sustainable, turnkey and economical. They are able to assist with correct use and installation of products to ensure a longer life

span of the product but also to assist with providing a complete solution to ensure a sustainable operation for the customer. “This is true to our global mandate of ONE BRAND, ONE SOURCE, ONE SYSTEM,” says Maritz. “We are able to provide a complete solution to an industrial operation in the form of product, service and in an advisory capacity.” REMA TIP TOP executive Sanjeev Ragubeer elaborates further. “Regarding skill and capability, we have another even more impactful and powerful tool – the power of a global team. Our global product management team meets quarterly to share best operating practice. This team is made up of product managers in each country in which REMA TIP TOP operates globally. When done

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effectively, this is an extremely powerful business unit with the ability to add significant value to a global organisation like ours.” “Another great initiative that has added value to REMA TIP TOP South Africa and the bigger global community is our training foundation. It is where we are able to develop our skills and expertise in a consistent manner that leads to excellence in execution. It is also the place where our product specialists are able to transfer their skills to the new generation so we are able to ensure continuity in our business operations.” emphasizes Maritz. A sustainable, competitive

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We have adopted a very customer centric approach to business, and been resolute and relentless in developing a deeper understanding of our customer, the industry they operate in, and the needs of their organisation in order to provide a better service advantage for REMA TIP TOP lies in the fact that they have a mixing division. The company is one of the few players in the industry who have control of their products from mixing through to the end product. REMA TIP TOP engineer their compound to customer requirements in order to produce quality products as well as cost savings for the customer. The mixing department plays a role in development of new products and works closely with REMA TIP TOP’s research and development department in Germany, Alfa

Development. Alfa is a global resource for the organisation, continuously keeping abreast of the latest innovation and technology in their fields of expertise.

Social and ethics

“We are committed to principled business conduct and operating in a responsible manner, minimizing the impact on the environment and ensuring the wellbeing of our customers, employees and the communities we operate in. We believe that an integrated and transparent approach to governance, ethics, risk and compliance, strengthen our values and promote our objectives as a responsible business,” says Maritz.

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Brauns adds: “Our drive is to find the right people who compliment the culture of the organisation and who support and uphold our values. One of the key success factors of our business are our people – highly skilled and engaged. In a practical extension of our commitment, we empower our people at all levels of the organization, developing leadership capabilities and the relevant skills in order to shape the company’s successful future. Through our REMA TIP TOP Training Foundation, we ensure the upskill of all employees and strategic partners of our group of companies.”

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Quality products and service

The company uses a product certification process to guarantee that every product supplied has passed performance and quality assurance stipulated. It also means that the products comply with a national and international standard of regulation governing quality and minimum performance requirements. REMA TIP TOP operations have a number of accreditations and certifications, highlighting our high quality standards and levels of expertise in the manufacture of quality products. Conveyor belting and industrial hose are manufactured to SABS and TUV standards. The company’s Benoni and Howick plants in South Africa have ISO9001 and ISO 14000 certification

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Powerpro w w w . p o w e r p r o n g . c o m

Passing the

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Manufacturing

Operating in Nigeria since 2012, PowerPro Company Ltd sells electrical test & measurement equipment and solutions to the region’s power and manufacturing industries. General Manager, Adebayo Johnson talks here about PowerPro’s operations, growth expansion strategy, renewables, and the challenges brought on by the decline in oil prices.

owerPro Company was incorporated in 2009, but began full operation in 2012. At the time, there weren’t many companies with a specialised attention on providing test and measurement equipment to the Nigerian power industry, and through the years, PowerPro has successfully managed to stake its claim on the market.

The demand for electricity isn’t going to reduce, so surely the longevity of the company is safe The company offers its products and services to a range of industries, including power generation — from traditional thermal power plants to renewable sites. Where transmission is concerned, PowerPro specialises in application engineering and complete solutions for system and substation monitoring. Providing solutions for power distribution is another of PowerPro’s strengths, along with the provision of test equipment for the commissioning of new plants and facilities. Finally, there’s the oil and gas industry, where PowerPro provides test equipment for electrical asset management and reliability testing of both onshore and offshore assets.

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“We created the versatility and flexibility that enabled us to adapt and deliver quality products and tailored solutions to our clients by forming strategic and long-term business alliance with world leading manufacturers of test & measurement equipment such as ISA Test, Phenix Technologies, Baur GmbH, Fluke Corporation, GE Grid Solutions etc. We have invested in training and acquisition of modern electrical test equipment. We also started renting equipment to other companies. Not many companies in Nigeria have done the same.”

Supply and demand

Nigeria’s electrification rate is relatively high compared to other West African countries, yet still only 55.6% of the population has access to electricity. Across the continent as a whole it is estimated that over 600 million people are without a ready and reliable source of power. At the same time, Africa’s population is continuing to climb, making the need for new generation projects more obvious.

“In the short period since we began, the company has expanded in terms of how well we’ve been able to train our engineers in order to give expert service and support to the industry,” explains Johnson.

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Presently, the generation capacity of Nigeria’s power industry is below 5,000MW. To meet rising demand the country’s government has targeted a supply of 40GW, with contributions from thermal, hydro, coal, solar and other forms of renewable energy.

In order to push this forward, several memorandums of understanding (MOUs) have been signed with multi-nationals such as General Electric, Power China, Siemens AG, Electrobras, Daewoo E&C. It is hoped that this will facilitate the development, financing, construction and operation of new facilities with around 10GW of capacity while promoting private sector investment. Against this backdrop, PowerPro has spotted an opportunity in West Africa, and decided to take it. The high demand and low supply of electricity makes the region an ideal market for a company with its skills, equipment and technical expertise. “The thing about West Africa is there are so many opportunities for expansions. Just like in Nigeria, the need for electricity is rising exponentially,” says Johnson. “Here, the population of the country is about 170 million. This figure grows 2.8% each year, and with this, the demand for electricity rises.” Hence, for electrification rate to grow with guaranteed availability and reliability, facilities for power generation, transmission and distribution must be regularly monitored and maintained. “For us, the opportunity lies in partnering with the asset managers to lower their cost of operations, reduce the risk of

The is ab popula figu out 170 tion of and re grow millio Nigeria for e with th s 2.8% n. This lectr is, th eac h icity e rises deman year, d

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Manufacturing

equipment failure, extend the asset mid-life and minimize the occurrence of expensive and unplanned outages” Johnson explains. “System availability is critical to power generation, transmission and distribution. Today, the major causes (about 70%) of system collapse in the distribution networks include system losses and equipment failure due to ageing equipment or overloading. However, with the right test equipment we can help the distribution companies deliver sustainable services to their customers.”

A positive outlook

Oil and gas accounts for 35% of Nigeria’s GDP, and pays for 70% of government spending, so the fall in prices has had a significant impact on the economy. Despite these challenges, Johnson is upbeat about the future of his business. “Business has slowed down, and the cost of importing products has increased. I think it has affected a lot of businesses in Nigeria — even the government is reluctant executing some projects. And many clients, especially in oil and gas, aren’t doing as many projects because of the slowed economy. But for us, in the long run, we will see the economy readjusting and we have a positive forecast for improvement.”

“It’s a cyclical market, so we’d expect to see prices go up again. But the demand for electricity isn’t going to reduce, so surely the longevity of the company is safe.” One policy the Nigerian government is implementing now is to shift from financial reliance on hydrocarbons, with a view to diversifying and investing in other areas. Additionally, plans to attract over $16 billion in investments to the oil and gas industry in the next four years were outlined in the 2015 Budget, alongside intentions for much needed refinery repairs and rehabilitation, which should boost the domestic power generation sector. Much of this will be aided by the passing of the long awaited Petroleum Industry Bill, which could be brought into law early next year after eight years of revisions and contests, and should lead to a spate of high profile investments. With all this in mind, PowerPro’s services will be in even higher demand.

Going green

There are also significant propsects outside traditional fossil fuelled projects. “There has been a lot of agitation for renewable energy sources in Nigeria,” says Johnson. “Nigeria is rich in natural energy resources, and to date we have only exploited a little of this. I think it holds a lot for the future of electricity in Nigeria. Recently there has been interest,

but the challenges have been the low level of investment and knowledge about some of the areas we can tap this renewable energy from. But for us as a company the idea of energy equals a lot of promises because I see a lot of investments come into this, so for us this creates more opportunities.” “One of the challenges we have in place is the absence of calibration laboratories and service centres. It is usually cumbersome to get the equipment back to the manufacturing plants for recalibration. What we’re doing is putting these calibration centres and laboratories to work, so we can provide even more services for our clients.” “One of the things we have done recently is to stock portable test and measurement equipment in order to facilitate prompt delivery to our clients and as earlier mentioned, we have a plan to put up service centres and calibration shops that will support the products we are delivering to the industry,” he explains. “At PowerPro, we are very passionate about solving the problem of power collapse in Africa and we are playing a strategic part in ensuring that unplanned outages become a thing of the past.”

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Volta RiverAuthority w w w . v r a . c o m

Established in 1961 by the Government of Ghana, Volta River Authority (VRA) is the country’s primary power generation company, and — more recently — has become the first arm of the country’s newly restructured electricity, transmission and distribution chain.

hrough a combination of hydro, thermal and solar sources, VRA generates electricity for both local and export markets. Locally, VRA is the main supplier to the Electricity Company of Ghana, providing 75% of the country’s 2,846.5MW installed capacity. Local mines and industrial establishments also purchase from VRA directly. Further afield, the power generation company exports to three of Ghana’s bordering countries: the Republics of Togo, Benin, and Burkina Faso.

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Energy

Supply and demand

Like many West African countries, Ghana relies heavily on hydro generation for its power, but low water levels combined with rising demand mean that powering the country is not without its challenges. Situated on the Volta river in south-eastern Ghana, the country’s largest hydroelectric power plant — Akosombo Dam — has been one of Ghana’s key sources of power for decades, but has recently been generating below capacity due to low water levels. Currently, four of Akosombo’s six turbines are in operation.

Locally, VRA is the main supplier to the Electricity Company of Ghana, providing 75% of the country’s 2,846.5MW installed capacity Experts believe that climate change can seriously compromise the feasibility of using hydropower as a primary energy source, as changes in rainfall patterns can result in less water and consequently less energy. This is not good news for Ghana. Historically, hydro power has dominated Ghana’s electricity

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supply industry, and did in fact account for all of its generation until the late nineties, when VRA quite wisely decided to diversify its sources and began importing crude oil and gas to fuel its power plants. For the last five years, thermal energy has been making up almost half of the country’s supply. Yet this isn’t without its challenges, either. An insufficient gas supply means that current generation meets just 75% of the demand. As is the case in South Africa, load shedding is common in Ghana, causing regular interruption to electricity supply in order to restore some balance to supply and demand. In addition to a lack of gas, theft and vandalism are also causing difficulties, and the country’s old and obsolete infrastructure lead to frequent interruptions in supply. Nationally, around 66% of Ghanaians have access to electricity, yet in northern regions this figure is much lower, at just 30%. Demand is growing at an estimated 10% per annum, putting further pressure on suppliers.

Importing power

VRA has recently backed calls for tariff increment in the hope it will help the company to sustain its operations. While not all Ghanaians are happy with this proposal, many say they would be happy to accept, providing power supply improves — and, with VRA

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25MW power unit is expected to be installed by December, when they are collectively expected to feed between 230MW and 250MW into the national grid.

The AMERI plant will be followed by two power barges from Turkey, both of which are set to arrive within the next few months. The first — with 225MW on board — was due to arrive in September, but has been subject to delays. The second is due in January 2016 and will bring an additional 175MW to the country. These floating power plants are un-motorised power ships with power plants installed on deck. Unlike Ghana’s thermal plants, these barges will not operate on crude oil, but will instead burn heavy fuel oil as a much cheaper alternative.

set to receive a 250MW plant from Africa and Middle East Resource Investment (AMERI) later this month, it looks like that might happen.

There is also the prospect of significant investment from the US Power Africa initiative, a $7 billion program launched by Washington to help build power generation and transmission facilities in a number of subSaharan African nations.

Made up of 10 power units, the AMERI plant has come in from Dubai and will be hooked up to gas provided by Ghana. The units will find home at the Aboadze Thermal Power Enclave, where civil works are nearing completion in anticipation of the arrival. Each

Ghana is experiencing one of its worst power crises yet, and has been for over a year. But with the continued dedication of VRA, and the imported power arriving over the next few months, Ghana’s energy situation can be expected to pick up sometime soon.

SECO

w w w . s e c o a f r i c a . c o m

Alpha Group has been operating in Kenya for almost three generations. The flagship company of its marine division is Southern Engineering Company Ltd (SECO), a firm that specialises in supplying construction services to the energy sector. Here, General Manager Omri Cohen talks about the company’s growth and its current work on a 310MW wind farm in Lake Turkana.

lpha Group’s core services fall into two areas — food, and logistics and engineering. On the engineering side is SECO, which was established in 1957 and provides a range of marine, civil, and offshore engineering services in addition to shipbuilding services in projects across East Africa. “SECO was the first company created in the group, and actually used to do everything before the group started growing

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and different segments and other sister companies started coming up. In the early days, SECO was actually handling the fishing operations. This is actually how we started as a shipyard — we had to take care of our own vessels,” Cohen tells us.

Moving on

As the other companies in the group began to grow and develop, SECO slowly began to focus on the specific areas of marine engineering, camps and civil and mechanical engineering in which they still excel today.

Energy

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“Firstly there’s marine engineering, which includes piling, dredging, and offshore engineering activities,” he explains. “We are the only company to run a fully operational shipyard in east Africa.” Located strategically at the entrance to the port of Mombasa, SECO’s shipyard includes dry-docks, slipways, and facilities for constructing and repairing vessels as well as ocean going and projects to vessels for rivers and lakes. “The other area that we are now very much focused on is the camps’ division, which is the division responsible for assembling and managing the camps on-site. Then, the last area

Our turnover only increased for the last year because we were smart enough not to put all our eggs in one basket is all the civil and mechanical and EPC contracts we are targeting, mainly when it comes to renewable energy and green energy projects.” Kenya’s vision of producing an additional 5000MW of energy by 2017 is spurring new projects across the country, many of which are renewables. One project of particular interest is

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Energy

the 310MW wind farm project in the area of Lake Turkana. Once complete, the project will boost the country’s installed capacity by around 20%. ‘’SECO was the fi rst contractor on site and we are very proud of it! Altogether, it’s the biggest project of its kind to ever take place in Kenya,” says Cohen. Yet it is not just the scale of the development that has posed a challenge. The location itself — the eastern shore of Lake Turkana, the world’s largest desert lake — is a remote and harsh environment, populated by indigenous tribes that have in some instances had little contact with the rest of the country. “Many have never been exposed to construction jobs on-site, so there is a lot of community coordination that’s required,” says Cohen. “Being the first ones on site, we were exposed to a lot of difficulties to begin with because we had to understand what they wanted, and we presented the whole project, as there was no-one else there initially. It was challenging, but we made it especially because of the great team we have up there.”

At the frontier

Along with renewable energy, SECO also has considerable experience in East Africa’s oil and gas sector, an area that has boomed in recent years following high-profile discoveries in countries such as Mozambique and Tanzania.

The 310MW wind farm will boost the country’s installed capacity by around

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This is actually how we started as a shipyard — we had to take care of our own vessels

As the project has progressed to first production, a moment that could transform Kenya’s economy, SECO has been very much involved.

Until recently, this resource boom had skirted Kenya, with the country struggling with hydrocarbon exploration as numerous wells came up dry, despite high hopes from international operators.

“We provide them with inspection services, steel work and specialized welding activities, all steel works, as well as fabrication of container units,” says Cohen. “And we’ve been doing this, including lifting and carriage activities, for the last four years.”

However, in 2012 Tullow Oil and Africa Oil Corp — heavyweight names in the continent’s exploration industry — struck oil in Lake Turkana, declaring their finds to be commercially viable.

Currently, the development is under some pressure as oil prices remain depressed, a situation that has led to numerous projects across Africa being suspended or cancelled.

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Given the cyclical nature of the market, and the fact that first oil is not forecast from Lake Turkana until 2018, well after prices are forecast to recover, its longterm future is not in doubt. Yet funding is still tight for SECO’s partners, meaning that its diversified portfolio has proved especially useful. “Our turnover only increased for the last year because we were smart enough not to put all our eggs in one basket,” says Cohen. At the same time, he remains upbeat about Kenya’s broader outlook. “All these energy and power projects in the country are attracting massive investments, and it’s going to be affecting the country, hopefully in a positive way. Even now you can see that Kenya has developed and it’s growing rapidly.”

Energy Kenya itâ&#x20AC;&#x2122;s time for fun

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