Essential Business Magazine Issue 14

Africa

www.essentialbusinessmag.com|Issue 14

On the

fast track The innovative product design of Siyahamba Engineering (p14)

Also in this issue: p20 GIL Automations p26 O.R. Tambo Middle East p72 Dubai Electricity and Water Authority p78 Sharjah Oasis Real Estate

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elcome to . In this issue we begin with a look at Africa’s digital revolution, set to change the future in exciting ways.

Uzzal Hossain

Our lead feature is a profile of Siyahamba Engineering, a manufacturer of parts for the rail and transport industries.

James Hall

We’ve also checked in with GIL Automations, and discuss their future in light of Nigeria’s oil crisis.

Lucrecia Salie

We also have a detailed look at O.R. Tambo International Airport.

Project Manager hossain@essentialbusinessmag.com Project Manager jhall@essentialbusinessmag.com Project Manager lsalie@essentialbusinessmag.com

S A L E S Adam Caan

Head of Sales acaan@essentialbusinessmag.com

Johann Van Wyk

Sales Executive jvwyk@essentialbusinessmag.com

F I N A N C E Miah Dizer

We then have something new. To mark the launch of our publication focussed on the Middle East, we’ve included two pieces from the first issue. The inaugural profile is of Dubai Water and Electric Authority, and the second is a glimpse of Sharjah Oasis Real Estate’s amazing Waterfront City.

We hope you enjoy this issue, and that you look forward as much as we do to leaning more about business in another fascinating part of the world.

Finance Manager accounts@essentialbusinessmag.com

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 Essential Business Publishing Brancaster House, 30 Cattle Market St, Norwich, NR1 3DY, England 145-157 St John Street, London, EC1V 4PW, England www.essentialbusinessmag.com www.essentialbusinessmag.com © Essential Business Publishing 2016 © Essential Business Publishing 2016

Sam Wright, Editor in Chief

@essentialbizmag

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WELCOME TO OUR WORLD

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Contents Africa’s digital revolution

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Africa’s digital revolution is coming. look at how information technology is shaping the continent’s future.

Power play

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James Doree, director at Lion’s Head Global Partners, discusses financing a range of large African power projects.

News round-up

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Our sector-by-sector round-up of African business news, including recent comments from an event held by ECOWAS.

O.R. Tambo International Airport

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A study of O.R. Tambo, Africa’s biggest airport, and a discussion with general manager Bongewi Pityi about its development of Ekurhuleni into an aerotropolis.

Denel

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Denel Aerostructures and the South African Regional Aircraft (SARA) project, which they are leading.

Middle East

Siyahamba Engineering

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In our lead feature we look at Siyahamba Engineering, a manufacturer of essential parts for the rail and transport industries.

GIL Automations

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Here we look at GIL Automations and their strategy for weathering Nigeria’s oil crisis.

DEWA

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The first ever article for ’s new publication is a look at Dubai Electricity and Water Authority’s outstanding efforts toward sustainability.

Sharjah Oasis Real Estate 78 Sharjah Oasis are currently building a waterfront city. Director Hayssam El-Masri tells us about this incredible project. project, which they are leading.

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On

Information technology in Africa continues to grow, and it look looks like Africa’s digital revolution is coming. at what shape it might take and what challenges are in store.

The power of technology

It’s been clear for some time that information technology is reaching a turning point in Africa, and some insights and statistics released recently have hinted at the importance of what’s to come.

In a PricewaterhouseCoopers (PwC) report completed in May 2016, information and opinions were garnered from some of Africa’s most important CEOs. One hopeful fi nding from the report was that, despite global economic uncertainty, growth and direct foreign investment is continuing in Africa at a healthy rate.

Despite this, there is also a clear sense that the search for

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new approaches to growth is important. Hein Boegman, CEO for PwC Africa, said of the report that “CEOs in Africa are ramping up their efforts to innovate and find new ways to do business on the continent in a move to stimulate growth in a challenging and uncertain global business environment.”

for growth. The CEOs questioned in PwC’s survey identified technological advances (75%), demographic shifts (52%) and a shift in global power (58%) as the top three defining trends that will see businesses change in the coming years. It’s clear that technology is firmly in the minds of Africa’s business leaders.

A digital revolution, different to the one seen in the West, could be this new way of doing business and a welcome catalyst

The survey also provided some detail as to the advantages that technology brings to business. Technology was seen as the best way of assessing and delivering on customer expectations (69%), interpreting the complex and evolving needs of customers through data and analytics (56%), and improving communication and engagement by means of social media (58%).

“It’s clear that technology is firmly in minds of Africa’s business leaders

What will be different?

Africa’s digital revolution will be about technology and the new systems and opportunities that it brings. The driving force behind this will, of course, be the internet.

But in Africa, different needs and different existing and potential infrastructures means that the spread of internet connectivity is unlikely to take the same form seen elsewhere.

As it stands internet penetration in Africa is close to 20% – almost a third of that of the rest of the world. Just 40% of the population have access to electricity.

Without the right infrastructure in place it’s impossible to connect people using the usual technology – and, in many cases, there are more pressing developmental concerns that should be addressed first.

However, the coming of 5G wireless connection could be what sparks a digital and developmental revolution in Africa. Without the need to lay down extensive wiring and cables, mobile devices able to connect to the radio signal of 5G could be the way much of the continent gains fast and reliable online access. Although the technology is in its infancy, there are hopes that widespread usage could be in place by 2020. Already trials are underway examining spectrum sharing networks, while some universities have already carried out connection experiments.

“Already trials are underway examining spectrum sharing networks, while some universities have already carried out connection experiments One further suggestion of 5G’s future importance came during AfricaCom 2015. The Chinese firm Huawei announced a partnership with the Southern Africa Telecommunications Association (SATA), with the aim of increasing ICT development on the continent.

The partnership is looking at spreading the existing 4G technology to rural areas, but the focus, according to SATA’s CEO Jacob Munodawafa, will be on implementing next generation technologies.

“Apart from supplying us with the infrastructure needed,” Munodawafa said in an interview with htxt.africa, “We will work with Huawei to find the best solution for deploying these connectivity options to users.”

Challenges

There are strong parallels with our other potentially disruptive technologies, too. In recent years Africa has seen a swathe of smaller renewable projects come online, bypassing the need for a national grid by serving local communities directly with wind or solar power.

Many of these have been driven by private funding, often as part of small or public partnerships.

However, given the scale of investment required to establish a 5G network, cost remains an issue.

Already internet access in Africa is prohibitively expensive. During a recent Africa Development Bank event in Zambia Omotola Johnson, Nigeria’s former technology and communications minister, criticised the cost of internet accessibility across the continent, which remains three times higher than in the West: “We can build infrastructure that is needed for ICT, but when the internet is not affordable, especially to people in rural areas, then there is a problem.”

Taxation methods are another issue. “There is also a need to look at how we tax internet equipment, there is a need for Governments to reduce tax on internet equipment in order to, in turn, ensure internet or internet devices are affordable to all citizens”, Johnson has said.

For these reasons, Africa’s digital revolution will not be swift.

However, one thing is clear – when it does happen, although it won’t look quite the same as the West’s, it will have a similar impact on businesses as well as everyday lives.

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Expert

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Pow

werplay Tell us about Lion’s Head Global Partners and your role in the company?

Lion’s Head is an investment and advisory firm based in London and Nairobi. We work across African capital markets, development finance and sectors such as infrastructure and healthcare. In addition to working directly in the energy space, my day-to-day responsibility is to manage the African Local Currency Bond Fund, an initiative of KfW to develop domestic capital markets. We act as an anchor investor and provider of technical assistance to first time issuers in financial inclusion, renewable energy, housing and agriculture.

In our expert interview James Doree, director of Lion’s Head Global Partners, UK, discusses financing some of the most exciting power projects in Africa.

“Countries such as Namibia, Zambia, Botswana and Zimbabwe have major renewable resources but largely untapped potential

What kind of energy projects are you involved in currently that you are particularly excited about?

We’re the financial adviser to Africa GreenCo, a new intermediary off-taker and power trading company aiming to be an investment grade counterparty in power purchase agreements.

We’re currently in the design and feasibility phase. Separately, we are also looking at several pioneering renewable energy projects in Zimbabwe. Not only is there great need, but it is a market with great potential in terms of the quality of local developers, grid infrastructure and renewable resource potential.

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What are the main challenges when it comes to financing power projects in Africa?

The most fundamental problems are a lack of off-taker creditworthiness and limited capacity among utilities and government ministries to make decisions vital to a project progressing. However, from a fi nancing perspective, the main constraint is a lack of domestic project fi nance lenders. A major difference in India is that there

“Not only is there great need, but it is a market with great potential in terms of the quality of local developers, grid infrastructure and renewable resource potential is capacity among domestic banks to fi nance projects.

In most of Africa, banks lack the capacity to underwrite large-scale long-term project fi nance loans. In many markets, local borrowing rates are not conducive towards long-term lending. This has created a reliance on hard currency borrowing from DFIs and similar institutions, slowing the development of the market and creating large FX exposures for domestic consumers, utilities and governments.

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Any particular region in Africa that is particularly interesting to investors at the moment?

The drought in Southern Africa combined with a supply crunch in South Africa has focussed minds around the chronic energy shortages in the SAPP. Countries such as Namibia, Zambia, Botswana and Zimbabwe have major renewable resources but largely untapped potential.

Relatively good interconnection and a core of stronger off-takers mean that regional dynamics also come into play.

What is your advice to a prospective investor in the power sector?

Many developers and specialist funds are telling their investors that they can hit the high IRRs without taking any early-stage risks.

Frankly, however, there’s a lot of competition for projects at advanced stages of the project development cycle.

In order to justify their return expectations, investors need to back teams with coherent strategies for accessing dealflow, i.e. projects mostly likely to make it over the fi nish line.

ExpertInterview

Are African investors increasingly investing in Africa’s energy market as well?

In order for the growing pools of African liquidity to participate in the electrification of the continent, there have to be appropriate instruments and intermediaries for them to do so. These include listed companies, bonds and private equity funds. There are a few examples but there needs to be more. Nampower has issued bonds in Namibia and SA to fund capital investment. Privatised utilities like Umeme and Kengen and companies such as Transcentury and Forte Oil are listed on regional exchanges. Large-scale renewable IPPs in South Africa and privatizations in Nigeria have been led by domestic investors.

A big missing part of the picture elsewhere in the continent is domestic banks and regional DFIs providing primary project finance and then funding themselves in domestic capital markets. This would be a major step forward. In addition, solar has the potential to have a big impact on domestic investor appetite, since it is simple, modular and cuts down on the variety of project development risks faced in other technologies.

We expect to see structured finance and capital markets solutions evolve in response to deal-flow, having a positive feedback effect for developers.

“We expect to see structured finance and capital markets solutions evolve in response to deal-flow, having a positive feedback effect for developers What surprises you about this sector?

That good news goes unreported whereas hot air clouds the room.

If someone asked you to name a project in Uganda, many would say Bujagali. However, there are many small IPP projects in the country, not least thanks to KfW’s GetFit program. There’s also progress in unlikely places – for example, despite the economic crisis in Zimbabwe, a local minihydro developer has financed and connected 26MW to the grid and is the country’s first IPP.

You spoke at African Utility Week on “Funding partners during project development – increasing options for developers”. Can you tell us a little bit about your speech?

The model for developing and financing projects will be affected by the entry of major international strategic players into the market. The traditional model of a standalone developer taking 10 years to close a DFI-financed project has not served the needs of the sector in the past 20 years (look how many projects they’ve got done). Large strategics will have an impact through integrated service offerings, credit enhancement, access to export finance and a lower cost of capital. We expect to see new financing models emerge as a result.

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News A

n event held by ECOWAS has brought together stakeholders from West Africa to begin implementing reforms that will facilitate T R A trade. The suggested goals were to enhance the flow of transit trade by effectively managing trade corridors, improving the efficiency of ports and making border crossings more effective.

Customs information and exchange mechanisms are currently lacking, so much is being done to increase the transparency of trade and promoting collaboration between national border agencies.

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R E T A I L

lobal retailers are eyeing up opportunities in East Africa, where an expanding middle class is providing the potential for investment. Multinational businesses have been entering cities in the region, for example the French retailer Carrefour opened a site in Nairobi at the end of May. Other international retailers, like Walmart, have also been setting up in Kenya, in order to target the growing wealthy class of shoppers.

Also in South Africa the retail giant Pick n Pay Stores Ltd. have announced plans to enter Nigeria through a partnership with Lagos-based AG Leventis & Co. The expansion plans come after a good year for the company, which saw a 26% rise in full-year earnings.

Pick n Pay has also featured in news surrounding environmental organisation Greenpeace’s calls for retailers in South Africa to increase their commitments towards renewable energy. Greenpeace Africa is calling on South Africa’s largest retail chains to champion the country’s transition to 100% renewable energy, emphasising their pivotal role in shaping sustainable growth in the energy sector.

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D E

Speaking at the event, Ronke-Amoni Ogunsulire, IFC Country Manager for Benin, Burkina Faso, Ghana, Niger and Togo, said that “West African countries have enormous potential to strengthen competitiveness and increase trade flows, which can drive growth, reduce poverty, and deliver jobs to the region.”

Greater regional integration in Africa is needed to improve the continent’s overall growth, according to Hennie Heymans, CEO of DHL Express Sub Saharan Africa. When comparing intra-regional trade statistics, some of the lowest in the world are in Africa, with less than 20% of what is produced remaining in the continent.

“This, in essence, means that over 80% of what is produced in Africa is exported,” he says. “In comparison, over 65% of Europe’s trade occurs on its own continent, and in North America, the figure is around 50%.” While Africa’s international market is huge, inter-regional trade has a massive potential for growth.

Heymans concludes that, “The government and the private sectors need to continue to work together to create a sustainable and inclusive environment, and work on solutions to make it easier for African businesses to conduct business within their local and regional environment.”

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he development of the gold mining industry in the Democratic Republic of Congo has shown that mining can boost the economies of African countries. Mark Bristow, chief executive of Randgold Resources, claims that the Kibali gold mine in the DRC is evidence that such projects can have massive positive effects of the African economy.

The Kibali gold mine has been marked one of the the largest in the world, with a base of 20 million ounces of gold and reserves as high as 11 million ounces.

Still not completely developed and due to be finished in 2018 when operation will be in full production, it already produces over half a million ounces of gold annually. The mine employs 4000 Congolese natives, providing

jobs as well as economic development.

Gold is not the only African RESOURCES resource in demand.

India has been looking into purchasing uranium from Africa for nuclear energy projects.

However, the Pelindaba Treaty (1996) prevents such minerals being exported freely from Africa, causing a delay in any deals.

Indian President Pranab Mukherjee is in motion to convince Namibia to begin a bilateral treaty with India in order to supply uranium. Both India and Namibia signed MoUs agreeing to

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ew deals between Africa and Europe could see an increase in renewable energy for both continents. David Otieno, head of the AfricaE N E R G Y EU Energy Partnership (AEEP) Secretariat, said recently that “Africa doesn’t need Europe’s help, it needs partnership”. The sentiment has been applauded by leaders from both continents, and reflects AEEP’s goals for 2020.

A call has been made by the AU for mining and education sectors to invest in science, technology and engineering for improving Africa’s coal economy. Seven million jobs could be made via the AU’s launch of the African Minerals Development

cooperate in the field of geology and mineral resources, and in the peaceful uses of nuclear energy in 2009.

Centre, which will attempt to better equip governments to negotiate contracts for mining and exploration work.

Energy investment opportunities are coming up all over Africa, with the Renewable Energy Independent Power Producer Procurement Program making South Africa a top destination for energy investment. The program has secured approximately R185 billion since 2011, and by 2020, when AEEP goals are due, is speculated to have attracted another R520 billion.

Many state contracts have guaranteed this power to be bought over the next decade, meaning the project is an investing dream for financial managers and private equity companies.

It is an important strategy for financial growth in a struggling economy.

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Siyahamba Engineering

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Manufacturing

Opening Siyahamba Engineering is a specialist manufacturer of innovative, customised and patented windows, locks, doors and door gears for the rail and transport industry.

Based in Johannesburg, the company has been in business for nearly 30 years and supplies clients in South Africa and internationally.

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eginning life as Nustart Holdings (Pty) Ltd some 29 years ago, a Black Economic Empowerment (BEE) consortium acquired Siyahamba Engineering in 2003.

At that time it took its current name, and is now a 90% black owned company. Meaning ‘we are moving’ in Zulu/Xhosa, Siyahamba Engineering’s name both reflects the transport industry and its intention to progress.

Siyahamba’s initial focus was to provide railways, predominantly across South Africa, with spare parts for existing doors, dooroperating mechanisms, gears and windows, but within less than a year it became a significant manufacturer of these products.

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S i y a h a m b a

E n g i n e e r i n g

Venture Plastics Founded in 1987 as Watson Plastics, and later renamed Venture Plastics, the company has grown from its humble beginnings and currently employees over 80 people.

Our ability to continually deliver on time and in full is made possible by the depth of management and production experience. The core team responsible for manufacturing, supply chain and innovation each have over 20 years polymers experience and are always willing to share their knowledge with customers and suppliers.

For 29 years we have been helping clients across a range of industries to optimise their product ranges, achieve cost savings and commercialise ideas.

Contact us for more information: T: +27 (0)11 824 1420 www.ventureplastics.co.za

The move from supply of parts to manufacture was possible due to Siyahamba Engineering’s insight into the industry and knowledge of what customers wanted as well as what rail passengers need.

Similarly, their website states that they “aim for the quickest possible delivery through anticipating our product demand.”

“Siyahamba Engineering’s name both reflects the transport industry and its intention to progress

Innovative product design to meet demand

The company’s developments have included window and door systems to combat widespread vandalism and theft, such as the vandal-resistant 3 CR12 door system designed to replace the much vandalised aluminium-cast driver doors.

The revolutionary ‘hopper’ windows were a creation of Siyahamba Engineering and, significantly, the design of external sliding doors protected innocent passengers from being thrown out of moving trains during the pre-election train violence of 1992-1994.

These outside sliding doors also have the benefit of both preventing theft and minimising

Kyler Mech Powder Coating ..was established in 2002 at its current location in Anderbolt, Boksburg.

Our factory which includes a workshop is over 2,500m2 in size, equipped with some of the latest equipment and technology available to date. We are an integrated extension arm into our client’s production line to comply with various coating demands.

Kyler Mech offers Undercoat and Top Coat solutions for additional corrosion resistance as well as a 7 stage zinc phosphating process which pre-treats the steel to high levels of corrosion resistance in preparation for powder coating.

For the more competitive price solutions, we also provide the Iron Phosphate process. All our solutions are available for all stainless steel and galvanised material for any industry.

Contact us for more information: T: +27 (0)11 894 7570 T: +27 (0)11 894 7571 www.kmpowdercoating.co.za

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Manufacturing Venture Plastics YOUR PARTNERS IN THERMOPLASTIC PRODUCTS

WE PRIDE OURSELVES ON OUR ABILITY TO WORK WITH OUR CLIENTS TO DEVELOP THEIR PLASTIC PRODUCTS To THEIR FULL POTENTIAL - FROM INITIAL CONCEPTS THROUGH TO FINAL PRODUCTION, WE OFFER VITAL EXPERIENCE. WE CONGRATULATE SIYAHAMBA ON THEIR ONGOING SUCCESS Our services include: • INJECTION MOULDING > UP TO 650 TONNES • VACUUM FORMING > UP TO 1500 x 2500 mm • blow moulding > up to 1000cc • extrusion > pipes & profiles Call: +27 (0)11 824 1420 | Email: plastics@venplas.co.za www.ventureplastics.co.za

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S i y a h a m b a

E n g i n e e r i n g

Huge investment in South Africa’s rail infrastructure

“The company attributes its success to understanding the diverse and changing requirements of its clients both in South Africa and beyond the corrosion problem affecting the inside pocket of sliding door systems. More recently the company introduced fireresistant, nylon-based window frames fitted with glass or polycarbonate panels that can be removed for repair without taking out the frame.

Developing systems that are now widely used on passenger trains throughout South Africa, it’s no wonder that Siyahamba’s client base has grown beyond general overhaul contractors to include PRASA (the South African public commuter operator).

The company also supplies to local and international original

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equipment manufacturers, such as Transnet Engineering, Bombadier Transport, General Electric Transport, Alstom (through Gibela Rail) and China South Rail.

The company attributes its success to understanding the diverse and changing requirements of its clients both in South Africa and beyond.

As well as producing original designs that fit with customers’ needs, Siyahamba works to the highest standards, including ISO 9001:2000 accreditation, to ensure it remains a leading manufacturer to the railway coach components industry.

South Africa’s rail system is the most developed in the whole of Africa but, despite this, in 2013 70% of all the country’s freight was moved by road.

A National Infrastructure Plan (NIP) and National Transport Master Plan put in place by the South African government aims to overhaul the transport network with a shift from road to rail freight. Record amounts of money have been invested over the last four years, with a large proportion of this dedicated to rail.

The aim is for South Africa to be the fifth largest railway system in the world by 2019, placing it as a key player in the global freight industry.

By 2019, the goal is for there to be an extra 1,300 diesel and electric locomotives on the tracks, which will have a big impact on business for Siyahamba and the rail industry in general.

The large-scale infrastructure investment will have farreaching benefits for South Africa’s economy as key industries such as iron ore and coal mining will be able to increase capacity with improvements to transport lines. The economy as a whole will prosper with more countries looking to do business in South Africa.

Manufacturing

Speaking to Railway Technology last year, Mike Asefovitz, senior media relations manager at Transnet explained that increased tonnage by rail will improve the country’s overall efficiency. He says: “Our aim is to lower the cost of doing business in South Africa. As we increase our efficiency and become a more reliable transporter, that will transpose into the rest of the economy.

What we anticipate is that this capital investment will give us an additional 128 million tonnes of rail volume. So by the end of the seven-year period, we are looking at transporting some 344 million tonnes of commodities. And that’s really what rail is: a bulk business.”

Supplying rail’s biggest operator

South African state rail freight operator Transnet is one of Siyahamba’s key customers.

Its chief executive Siyabonga Gama recently told Reuters that “Transnet is embarking on a major expansion drive in the rest of the continent. Transnet, which operates nearly three quarters of all Africa’s rail network, [is] opening offices in West and East Africa and looking to deploy its expertise in running ports and pipelines as well as rail.”

Since 2012 Transnet has invested billions in the biggest rail recapitalisation programme in South Africa’s history, building its locomotive fleet and rejuvenating the country’s ports, rail and pipelines infrastructure.

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GIL Automations

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Manufacturing

As a major provider of automation products, Nigerian-based GIL Automations has landed contracts with top players in the country’s oil and gas spoke with industries.

Lawal Gbolahan to discuss the company and its future in the face of the country’s oil crisis.

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IL Automations opened its doors in 2007 under the name GIL Automations and Control Services Limited, with just a staff of five.

At the beginning, GIL’s major objective was training, small sale procurement and servicing automations, but business has since progressed significantly, and not just with its name shortening – which came about in 2011.

GIL’s focus has since expanded to providing Electrical and Automation Systems and a range of accompanying services relating to instrumentation, measurement, safety, security and communication systems. This has allowed for a similar expansion

in the industries GIL provides for. Its services, wide-reaching and multi-faceted, now cater to industries such as oil and gas, utilities, manufacturing, food and beverage, marine and construction.

Beginning with a single location in Nigeria, the company is now on the ground in Ghana and Houston, Texas in the United States, though its offices in Port Harcourt, Nigeria continue to be GIL’s main base. Though staff numbers have inevitably expanded as well, the business models across the international branches remain largely the same. “The only notable difference is in the location and the rules and regulations guiding business operations in these different countries”, Gbolahan says.

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G I L

From installation to maintenance

In order to satisfy the needs of large-scale manufacturing industries, GIL has had to develop significant manufacturing capabilities of its own. It aims to be a one-stop shop for its clients, providing everything from automation installation to maintenance and everything in between. A recent project saw the GIL Automations team recently fabricated and assembled EGINA FPSO ICSS marshalling cabinets for Upstream’s oil and gas sector, which included assemblage based on processes ranging from PCS, FGS, PSS to ESD systems.

Automation products are generally implemented in an effort to minimise labour, save energy and cut down on human error. The company’s core values centre on providing solutions for their clients’ daily problems.

With GIL’s far reach, it is able to assist clients across the world and provide on-the-ground help for companies across a wide geographical area.

Though oil and gas industries are the company’s primary focus, they aren’t its sole concern.

Recently, GIL has struck up a multiyear instrumentation support contract with one of Nigeria’s top multinational breweries. “This project involves GIL performing scheduled measurement and instrumentation support services across multiple breweries in the country.” Not only that, in the long term, Gbolahan says, “this project will buttress our wide reach in Nigeria, outside of the oil and gas industry.”

Working in Nigeria

Operating mainly in Nigeria has meant challenges for GIL in recent years. Historically one of the world’s biggest oil producers, the country is currently experiencing an extreme petrol shortage as a result of reduced imports. “The fall in prices in the oil and gas industry is a general problem affecting most of the companies in the country, especially in the area of reduced cash flow”, Lawal points out, reducing the number of available projects and

“Its services, wide-reaching and multi-faceted, now cater to industries such as oil and gas, utilities, manufacturing, food and beverage, marine and construction

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a u t o m a t i o n s

“Our long term aim is to create a more diversified company that will be more resistant to any immediate economic crises affecting a sector of our economy

We are not superhuman.

(However, these customer appreciation notes imply otherwise.)

“I would like to express my deep feeling of appreciation to the entire CCC team for their excellent effort and usual support during the power failure that occurred at our site.”

—Control System Specialist, Gas Plant in Middle East

“Many thanks for a successful implementation and startup. Everything works fine—robust and steady!”

“Thank you for quickly identifying the root cause and for restarting the turbine.”

“Thanks CCC for providing remote support during a Gas Turbine start-up. ”

—Offshore Oil & Gas Producer, Process Unit Operations Manager

—Major Oil Company, Process Engineer

“Excellent troubleshooting and analysis of our problem.”

– Refinery plant, Lead Instrument Engineer

—Leading Oil Refinery, Instrumentation and Control Engineer

“Excellent support as ever” —Leading LNG producer, Unit Operation Specialist

“Many thanks for the support; we’ll keep relying on your system.”

—Refinery plant, Machinery Reliability Engineer

“Thanks CCC for the update on the controllers and software. All the new controllers are working great.”

—Major Oil Company, Control System Advisor

“Thanks to all for an outstanding job. Cracked gas and Ethylene compressors are starting up automatically through the CCC system.”

—Leading Petrochemical Producer, Machinery Reliability Engineer

“We greatly appreciate the CCC team for fixing the recycle valve and for reoptimising the anti-surge controller.”

—Leading Petrochemical Producer, Process Optimization Specialist

Over 200 admired and respected field engineering professionals, 40+ years of industry leadership and delighted customers.

Visit our website www.cccglobal.com

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a u t o m a t i o n s

GIL looks ahead

“We are striving to increase our sales by continuous improvement in our technical capabilities and establishing uniqueness in our products and services by not compromising on the quality of the product and services delivered to our customer contracts for the company. Even so, GIL remains optimistic. “In the meantime, we are repositioning ourselves for increased presence in non-oil and gas industries, especially within manufacturing, infrastructure and commercial buildings. Our long term aim is to create a more diversified company that will be more resistant to any immediate economic crises affecting a sector of our economy.”

www.essentialbusinessmag.com

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In spite of the recent downturn, GIL continues to see new clients within the oil and gas sector. The company is currently executing a turnkey “electrical, instrumentation, control and safety erection” contract for an oil depot terminal in Port Harcourt. It will be the first LPG terminal in the southern region of Nigeria, as well as the first DCS operated terminal in the country.

Even in spite of the present oil crisis in Nigeria, the future for GIL Automations looks bright.

The company still sees potential for opportunity in growth within the oil and gas industry, as well as utilities, manufacturing, mining, food and beverage, marine and construction. To meet the challenge, “we are striving to increase our sales by continuous improvement in our technical capabilities and establishing uniqueness in our products and services by not compromising on the quality of the product and services delivered to our customer.”

Also in an effort to look forward, GIL has implemented the use of social media as a method of promoting its products and services to the global world.

Through newsletters, Facebook, Twitter and LinkedIn, the company hopes to keep its clients abreast with the latest technology in the automation world. The industry is constantly evolving, and with it, GIL Automations hopes to be there every step of the way.

email: production@essentialbusinessmag.com

O.R. Tambo International Airport w w w . a i r p o r t s . c o . z a

Capacity for

Change www.essentialbusinessmag.com

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Aviation

O.R. Tambo International Airport, Africa’s biggest and busiest, is part of Airports Company South Africa (ASCA) and a hugely successful example of one of South Africa’s State-Owned Enterprises. In this feature speak to general manager Bongiwe Pityi about venturing into new markets and the city of Ekurhuleni’s fascinating future as a bustling aerotropolis.

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.R. Tambo is the largest airport in Africa, handling 20 million passengers and 220,000 aircraft per year. The airport has won numerous international awards – something the company attributes to the hard work and dedication of its employees, who, under the directive of an operating model implemented in 2015 are focussed on providing constant improvements to service quality.

O.R. Tambo has invested billions of rand to develop infrastructure that facilitates the seamless movement of passengers and aircraft as well as an enhanced customer experience, and the organisation continues to expand, with some exciting plans for future development.

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www.essentialbusinessmag.com

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This level of complexity understandably brings its own challenges. Millions of O.R. Tambo’s passengers use the airport to connect from fl ight to fl ight or from fl ight to land transport, resulting in a wide range of customers with different needs and objectives.

These include passengers that require assistance due to physical limitation, fi rst time travellers, and families with small children, all of whom require different kinds of interaction with staff at all levels.

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“O.R. Tambo is the largest airport in Africa, handling 20 million passengers and 220,000 aircraft per year

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As well as taking care of airport users O.R. Tambo also has been ensuring that all facilities and stakeholders are prepared for the demand, ensuring that all touch points deliver an experience in accordance to its own high standards.

The passenger journey touches upon many different roles within the organisation, which means O.R. Tambo works closely with ACSA in order to ensure that collaboration results in the delivery of an excellent operational experience.

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design excellence

technical expertise

creative planning

Proud Service provider to Airports Company South Africa Shabangu Architects has offices in Johannesburg, Durban, the O.R. Tambo Airport and Thohoyandou in Limpopo. The practice has been responsible for a number of projects for the past 16 years: for government, private sector and parastatal organisations.

The directors of the company have extensive experience locally and in Africa.

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ACSA

O.R. Tambo is one of ten airports managed by ACSA. ACSA’s executive committee, under the leadership of the CEO, is responsible for the day-to-day management of O.R. Tambo, and they share a mission to develop and manage world-class airport businesses for the benefit of all stakeholders.

“O.R. Tambo has invested billions of rand to develop infrastructure that facilitates the seamless movement of passengers and aircraft as well as an enhanced customer experience ACSA itself was formed in 1933 as a public company under the Airports Act. It operates under commercial law and is legally and financially autonomous, while being majority owned by the South African government.

Previously a rather fragmented, parastatal organisation, ACSA has worked since to become a customer driven and focussed commercially successful business, whose airports have since become a jewel in South Africa’s crown. ACSA currently manages nine airports, including the three predominant international hubs of O.R. Tambo, Cape Town and King Shaka International. Its nine airports facilitate nearly 39.5 million passengers.

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An SACAA Approved & Accredited Part 141 ATO

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Tambo Foundation ...was established on the 13th of September 2011 to honour Oliver Tambo and Adelaide Tambo, his wife and partner in the Struggle.

They dedicated their lives to fight for the liberation of South Africa. The Foundation exists to honour their legacy of selfless sacrifice and enormous contribution to the achievement of the democracy South Africans enjoy today.

The Foundation uses its resources to promote programmes that seek to uplift the socio-economic conditions of the poor, support education, arts, culture¬¬¬ and heritage, and to foster consensus building in developmental issues. In this regard, the Foundation collaborates on a debate series with the Wits School of Governance, the United Nations Development Programme and the Department of Planning, Monitoring and Evaluation to facilitate the implementation of the National Development Plan. In partnership with Absa, the Foundation creates a platform for government and experts to discuss potential business risks such as energy, water resource, youth unemployment, global warming, etc.

With financial and logistical support from ACSA and Ekurhuleni Metropolitan Municipality, the Foundation holds an annual walk, a choral music festival and the Oliver Tambo Memorial Lecture.

The Foundation welcomes collaboration with other partners in the indicated sectors.

ACSA has identified its two main revenue streams as aeronautical and non-aeronautical income.

Aeronautical is derived from regulated charges or tariffs, consisting of aircraft landing and parking charges as well as service charges from passengers. Nonaeronautical income is generated via commercial activities such as retail, car parking, advertising, hotels, car rental and property leases.

Another source of revenue for ACSA, one that ties into some of O.R. Tambo’s own aspirations, comes from international operations. These have included

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ACSA’s part in a consortium that took over the management and expansion of Chhatrapati Shivaji International Airport in Mumbai, the success of which has encouraged ACSA, and O.R. Tambo, to look for similar

opportunities elsewhere. ACSA has said that “such undertakings allow the leveraging of the pool of skills and experience that the Company has amassed over the years to grow the business and increase shareholder value.”

“Previously a rather fragmented, parastatal organisation, ACSA has worked since to become a customer driven and focussed commercially successful business, whose airports have since become a jewel in South Africa’s crown

The Oliver and Adelaide Tambo Foundation aims to promote and popularise the legacies of its honourees.

T: +27 (0)11 880 2680 | F: +27 (0)11 880 2682 | E: info@tambofoundation.org.za www.tambofoundation.org.za

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A massive expansion and upgrade in infrastructure, completed in 2010, has led to ACSA maintaining a network of airports that are quickly becoming the envy of the international airports community.

Continued focus has been aimed at service quality, which can be seen in the success of O.R. Tambo’s operations and the influence they have, not only on the skies above South Africa but in the community surrounding it, benefiting from the creation of jobs and business opportunities.

“Another source of revenue for ACSA, one that ties into some of O.R. Tambo’s own aspirations, comes from international operations

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O.R. Tambo operations

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Bongewi Pityi tells that after the company began in 1993 operations didn’t differ a great deal from the original designs for some time – although in 2013 things started to change. “In 2013 our board took the decision that one of the key things to consider was to rearrange our operating model. That project kicked off late in 2014 when we met with consultants, and the design of the new operating model was commenced in February last year. The work was eventually approved late last year, and we now have the hard task of ensuring that the changes are properly implemented.”

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Otis Contact: Natalie Hawken 011 878 6089 Natalie.Hawken@otis.com Nomvelo Buthelezi For Otis (011) 867 7763 nomvelo@ngage.co.za Otis Gen2® Switch Elevator Now Available in South Africa Provides continued operation during power outages

From an operations point of view O.R. Tambo now has technical solutions which look at project management and advice and feedback from other airports worldwide.

Cooperation with other industries has also become essential, for example in the development of infrastructure in partnership with construction companies. Pityi also tells us that “We now have a new division called ‘infrastructure and asset management’, which collapses a number of departments we previously had.

It’s housed in what we used to refer to as maintenance and

engineering – while we continue to maintain our facilities we also need to have a future outlook in terms of new engineering and new approaches, so those departments are now housed in that extra portfolio.”

Another new department key to O.R. Tambo’s future, both in Africa and worldwide, is business development, where strategic investments will be planned and implemented. This is a key change for O.R. Tambo at a strategic level, and it happens to be the company in the ACSA group for which the change is most important.

“A massive expansion and upgrade in infrastructure, completed in 2010, has led to ACSA maintaining a network of airports that are quickly becoming the envy of the international airports community

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Venturing into new markets

An important role for O.R. Tambo’s business development department is to emphasise its capabilities to other airport companies around the world and to extol the potential benefits of partnership. This allows the company to focus on the possibility of growth and the creation of new airports.

Pityi describes two recent consultations that have been highly successful to date. “In 2006 we were awarded the deed to operate in Mumbai, India, and then in 2012 the deed to be an equity partner to a company based in Brazil, to manage an airport. Emanating from that experience the company is now taking the strong decision to pursue strategic investment.”

“In 2013 our board took the decision that one of the key things to consider was to rearrange our operating model. That project kicked off late in 2014 when we met with consultants, and the design of the new operating model was commenced in February last year

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The business opportunity that Pityi mentions, based in Brazil, involved a partnership with the Brazilian company Invepar and the successful bid to manage the development, maintenance and operations of Guarulhos International Airport in São Paulo, the busiest airport in Latin America.

O.R. Tambo’s business development team is based at the company’s head office, and there has been the recent appointment of a new executive with an excellent track record of leading previous managers, as well as the progressive thinking that such ambitious plans require.

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The InterContinental Johannesburg O.R. Tambo Airport ...is located only 68.7 metres walking distance from the International Arrivals terminal at O.R Tambo Airport.

Perfectly located for business travellers, and just a 14-minute train ride from the Sandton CBD. Services include a 24 hour restaurant and the top floor offers the biggest surprise with a view overlooking the airport runway; here we find the indoor heated pool, access to state of the art gym and the Camelot Spa. Extending the “Gateway to Africa” theme the hotel captures the culture and spirit of Africa through the use of simple shades and symbolic artefacts to create an African environment in a contemporary setting.

Mrs. Samantha Clingham joined the hotel in November 2015 in the position of General Manager and has a wealth of hotelier experience. The history and heritage that comes with the InterContinental Hotels & Resorts brand means that staff will share their knowledge with guests and guests enjoy the understated service and style.

Chef Yoshan joined the InterContinental team in March 2016.

“Cooking is not just my work, it’s my passion! I am looking forward to enhancing the already phenomenal offering of the InterContinental O.R. Tambo, and bring South Africa’s best flavours to international and local guests alike,” concludes Yoshan.

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Little Eden Little Eden Society is based in Edenvale, Johannesburg, Gauteng in South Africa. The organisation was founded in 1967 by the late Danny and Domitilla Hyams who received numerous awards in recognition of their pioneering work.

The organisation aims to develop persons with intellectual disabilities to their full potential and to encourage the community to recognise that each such person is a whole and complete person created by God with a mind, a body, a spirit and a soul... however disabled.

Terminal A refurbishment

O.R. Tambo’s Terminal A is currently undergoing refurbishment – a significant project that, while exciting, has brought the company certain challenges. Construction taking place in an area that must still be operational is a process that must be done efficiently in order that the company’s operations continue smoothly. O.R. Tambo has said themselves that the most important parts of this process are collaboration among all stakeholders and effective communication with passengers.

Recognizing the importance and support of its stakeholders has led to most decision making during the construction being collaborative, with the focus being

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“An important role for O.R. Tambo’s business development department is to emphasise its capabilities to other airport companies around the world and to extol the potential benefits of partnership reducing impact to customers.

Stakeholders are an important part of the value chain in O.R. Tambo’s decision making and are instrumental in the service their customers receive.

The Society cares for 300 children and adults with profound intellectual disabilities, ranging from the ages of four to over 60 years. Statistically, the average age of our residents is 24 years, but the level of mental functioning is that of a one year old or younger. Of our 300 residents, 238 were previously abandoned or come from indigent families who are unable to support them financially or otherwise.

BANKING DETAILS: Holder: LITTLE EDEN Society Account number: 5468 0928 009 Account type: Cheque account Swift / BIC code: FIRNZAJJ Branch code: 252-442 Note: For Internet banking FNB have instituted a single Branch code: 250 655 CONTACT DETAILS: PR Communications Officer Nichollette Muthige Email: marketing@littleeden.org.za Tel: +2711 609 7246 www.littleeden.org.za

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In an example of this process, while the Central Terminal Building (CTB) processing point was at saturation during peak travel times, O.R. Tambo ensured that it had additional staff on standby to assist, and the construction program in Terminal A was shortened with 24 hour work activities for the full closure. O.R. Tambo has committed to its stakeholders and customers that Terminal A will be fully operational before the Easter break, and processes have been put in place to guarantee this timeline.

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“O.R. Tambo’s business development team is based at the company’s head office, and there has been the recent appointment of a new executive with an excellent track record of leading previous managers, as well as the progressive thinking that such ambitious plans require

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The question of security

Understandably, security measures are one of the first questions asked of airports, and one of their most important concerns. Security threats to O.R. Tambo are monitored daily through its own security department, as well as in collaboration with various government agencies.

Current measures include the deployment of sniffer dogs, which is a proactive method of

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detecting drugs, explosives and other contraband. The airport has also increased its undercover operations with the South African Police Service (SAPS) and State Security, in order to obtain information and monitor the entire airport precinct. It has also appointmed an IT Security Information manager for the company, focussing directly on the integrity of its network and security against cyber-attacks.

Other vigilant and proactive approaches are implemented when important information is received from other countries.

If a threat is detected with South Africa as its target, then meetings are coordinated

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“Stakeholders are an important part of the value chain in O.R. Tambo’s decision making and are instrumental in the service their customers receive

to ensure information is disseminated correctly and contingency plans, approved by regulators, are put into operation.

Gauteng’s new aerotropolis

The city of Ekurhuleni, which in Tsonga means ‘place of peace’, benefits from being inside Gauteng province, which accounts for 35% of South Africa’s GDP and is regarded as the engine of the economy.

O.R. Tambo have partnered with Ekurhuleni in order to develop an aerotropolis there – an area of concentrated infrastructure and development centred on its airport.

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The aerotropolis master plan for the city has already been approved, following on from other airports that have successfully implemented similar schemes. From the city’s perspective the creation of an aerotropolis will build on the economic strength of the entire province of Gauteng. In addition, O.R. Tambo will be able to leverage great additional income and offer enormous scope for future job creation, and ultimately support rapid growth and the redevelopment of its communities.

“Security threats to O.R. Tambo are monitored daily through its own security department, as well as in collaboration with various government agencies

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The aims of the project intersect with the government’s national diploma plan, which is seeking to ensure that the government, working with private businesses, improves the health of the job market. This plan aims to tackle South Africa’s high unemployment rate, which in 2014 was sitting at around 25%. Pityi sees the project as an important one in tackling the problem: “Job creation in South Africa is something that is key. An aerotropolis will see a city being developed around the airport, and it’s something that I think is going to very positively make an impact in the region, as well as making O.R.Tambo attractive to future investors.”

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The key focus of Ekurhuleni’s aerotropolis plans, as stated on the city’s official website, will be to utilise inter-modal connectivity as a basis for generating economic development. This will be particularly aimed at timesensitive businesses such as

bio-life sciences, aerospace, ICT, research and development, and innovation, among others. The project envisages an innovative use of land, investment capital, human resources and logistics in order to form connections with new markets and sources of revenue.

“The airport has also increased its undercover operations with the South African Police Service (SAPS) and State Security, in order to obtain information and monitor the entire airport precinct

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In order to meet this challenge, the Ekurhuleni aerotropolis master plan has proposed five overarching principles. The first is ‘community’ – the desire to form strong neighbourhoods that allow citizens to fulfil their potential. The principle of ‘collaboration’ aims to harness streamlined, effective governance that matches up to global standards.

‘Concentration’ refers to dense transit-orientated developments that add to existing communities.

‘Connection’ – effective logistics efficiently transporting passengers, services and cargo. Finally there is ‘competition’, which will

involve identifying the value chains that South Africa can aim to dominate globally.

Considerations for expansion

As the aerotropolis of Ekurhuleni expands, as will the volume of passengers and aircraft passing through it. This means making sure that the increased capacity can be handled: “One thing we need to focus on is having the capacity required both from a passenger and a cargo handling point of view. From a passenger point of view we have the master plan which ensures that we continue to provide the capacity required and that the current level is adequate.”

“O.R. Tambo has partnered with Ekurhuleni in order to develop an aerotropolis there – an area of concentrated infrastructure and development centred on its airport

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International airports require quality logistic handling equipment to maintain their demanding high levels of service.

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Big 5 Duty Free Pityi goes on to explain one of the capacity issues currently faced by O.R. Tambo – that of the parking of light-bodied aircraft: “We have consulted broadly with the industry on this issue… Jointly produced plans from the industry and other airlines support our future outlook, because for the tariff they are the ones fi nancing the infrastructure of the park.

As part of that process one of the key projects is that of having additional aircraft parking space, and as soon as that part of the project is approved by our regulator it will alleviate some of the pressures.”

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“An aerotropolis will see a city being developed around the airport, and it’s something that I think is going to very positively make an impact in the region, as well making O.R.Tambo attractive to future investors

One of the best reasons to shop at the airport is purchasing world-class items at the Big Five Duty Free. The store offers an unprecedented array of world-class jewellery and watches, perfumes & cosmetics, wine and liquor, tobacco.

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O.R. Tambo International Airport

Pityi identifies the one other area that needs to improve as that of cargo handling facilities.

Pityi says that “We partnered with government respected companies and asked them to complete studies for us, which seek to explore what the constraints are from a cargo handling point of view and what it is that we need to do in the short term. Through consulting with them and our cargo handlers we realised that in the next three to five years we will need access to new facilities and so have created plans, including initiating economic improvements, with the intention of construction work to increase capacity in that area.”

“In order to meet this challenge, the Ekurhuleni aerotropolis master plan has proposed five overarching principles

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Malaysian Switchgear Distributors (Pty) Ltd, successfully completed a Protection Relay upgrade of the entire Medium Voltage Switchgear Network (153 x 11kV panels), supplying power at O.R. Tambo International Airport.

ACSA’s M&E Project Manager, Mr Yanga Sapepa, oversaw the project with Tesla Engineering (Pty) Ltd on board as the Electrical Consultants. All works were completed after hours, preventing major disturbances to daily operations.

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Pityi notes that these projects will keep the company, and Ekurhuleni, busy for the next 25-30 years – an exciting time for South Africa’s job market, development, and Africa’s aviation industry as a whole.

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“One thing we need to focus on is having the capacity required both from a passenger and a cargo handling point of view This expansion project will complement the city’s development toward becoming a full-blown aerotropolis.

Ekurhuleni authorities have approached all of their secondary partners to establish the initiatives best suited to act as catalysts for the creation of infrastructure, and this has included O.R. Tambo and its plans to increase cargo capacity.

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Denel Aerostructures w w w . d e n e l a e r o s t r u c t u r e s . c o . z a

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Aerospace

Just over a year ago explored Denel Aerostructures (DAe)’s plans for the South African Regional Aircraft (SARA) project. The past year has been a great one for the company, so we decided to have a detailed look at its history and speak to CEO Victor Xaba and deputy CEO Theo Kleynhans about the future of SARA and their impressive turnaround and plans for diversification.

ake Ready for

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A brief history of DAe

DAe, a division of the largest manufacturer of defence equipment in South Africa, Denel SOC, was established in 1964 as Atlas Aircraft Corporation. In 1992 it was absorbed into the Denel SOC conglomerate and its name changed to Denel Aviation. In 2006 the division was separated into what is now DAe, the manufacturing division, and Denel Aviation, specialists in the servicing and maintenance of several kinds of aircraft.

Since Denel SOC began it has sought not only to become leaders in military aerospace

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“The concept for SARA is that of a new turboprop airliner covering low density routes and seating 17-24 passengers, and specifically targeting destinations with short airfields not served by scheduled flights

A e r o s t r u c t u r e s

and landware defence in their own nation, but also to become world leaders in their field. Denel SOC has had many international clients and currently enjoys business from countries as diverse as Ecuador and Finland. Not only does it provide systems and components to its industrial client base, it also provides systems and consumables to end users. The company also benefits from its involvement with a number of equity partnerships, joint ventures and cooperation agreements with important international players in the global defence industry.

As for DAe, it now has the largest aerostructures facility in Africa, a plant with 500 staff members and 28,000m2 in which to work.

The world-class facility allows for a manufacturing process that results in the assembly of ultralightweight aerostructures for the global aerospace market.

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D e n e l

DAe’s progress and team of highly skilled employees means they are now design partners to Airbus Defence and Space, and have also been involved with other companies such as Agusta Westland, BAE Systems, Boeing, SAAB and Honda Aircraft Company.

It is DAe’s engineering solutions that make up an important part of the company’s value to their clients.

In being able to offer engineering solutions that are not linked to their manufacturing programme they offer unusual depth and capability when it comes to the development of new technologies, as can be seen in the successful implementation of their products.

You cannot use the soft approach – it just delays the pain One year ago for DAe

It’s always interesting to check in with a growing company after a year has passed. However, it’s safe to say that a year in the aerospace industry, especially in terms of the development and manufacturing of aircraft, is not a long time at all. The years between the conception of an aircraft and its first flight can easily reach double figures, which is

A e r o s t r u c t u r e s

Dassault Systemes Reaching new heights in program success.

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This spirit is now being brought to bear on new challenges ranging from securing program performance and attracting the next generation of experts to pursuing new markets and taking on new competitors. Doing so in a scalable, sustainable, and profitable manner is the driver for innovation.

Born in Aerospace & Defence, Dassault Systèmes has driven many innovations that have transformed how engineers, designers, and experts work. Equipping these individuals with the technology to define, communicate, collaborate, and predict how designs will perform so they can be optimized even before they are built is the role we play. This focus on performance has enabled the industry to answer past challenges.

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understandable when considering the costs, complexities and safety considerations that go into making an entirely new product.

When we spoke to previous CEO Ishmail Dockrat last year he introduced us to what was at the time DAe’s newest project, unveiled at the African Aerospace Exhibition in September 2014. The ongoing project, SARA, is to be led by DAe and involves a large amount of cooperation from the most important sections of South Africa’s aerospace industry.

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Dockrat told us about some of the market research and plans for the aircraft last year. “The evidence suggests that there are lots of these kinds of locations on the continent that would have a need for such an aircraft. For example, in the South African context, it’s places like Pietermaritzburg, Polokwane and Nelspruit, specifically those kind of municipalities, that we’d be looking at for this kind of aircraft”, he explained. “We believe that we have a contribution to make towards connecting communities and making it easier for people in

A e r o s t r u c t u r e s

urban centres to be able to travel point-to-point.”

The gap in the market has arisen due to a combination of consumer demands and the fact that current technology is simply out of date. Current aircraft, using twenty-year-old technology, are no longer economical or fuel efficient. Few of them are pressurised, which means they cannot fly above weather – both problems SARA will be designed to address, and subsequently take its dominant place within the market.

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D e n e l

A e r o s t r u c t u r e s

SARA

A year ago DAe had recently unveiled SARA and started its leadership of this important development in South Africa’s aviation industry. SARA was born of a desire to maintain the company’s design and development capabilities, which had been taken to a new level after the creation of the Rooivalk military helicopter.

The concept for SARA is that of a new turboprop airliner covering low density routes and seating 17-24 passengers, and specifically targeting destinations with short airfields not served by scheduled flights. In the past DAe have specialised in defence, but while defence possibilities are being looked at for SARA it is currently being viewed as a civilian aircraft.

Developing an entirely new aircraft is a challenging process and a venture that can carry substantial risks. In order to mitigate this DAe have been undertaking an extensive marketing survey in order to gain insight into how the proposed aircraft might meet demand within the industry. Victor Xaba explains that “what we decided to do was to conduct an independent, international market study and we selected a consulting group and commissioned them to do the study for us. It’s a sizable team working for a number of weeks and they were able to provide us with very substantial information.”

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Luckily, the information gathered seems to bring good news for the ongoing SARA project. Xaba says that “the study clearly indicates to us that there is a good market for the SARA concept. The market exists for of a number of reasons. Firstly there is the growth that is taking place in that sector, particular the zero to 800 kilometre range. There is also the fact that SARA is a point to point aircraft, which means it can operate on short airfields.

In areas like Asia, Malaysia, and South America there is quite a lot of requirement for that type of point to point activity.”

This positive market research means that the development plan, originally anticipated to last seven years, can continue to go forward. “The funding model for an aircraft like this will always be ambitious, so taking these challenges we have now started to launch activity with industry, with government and with the aerospace community in South Africa in order to attack these aspects of the market.”

It should be noted here that the SARA isn’t DAe’s own initiative.

Instead, due to their expertise and history of development and

Aerospace

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design they have been chosen to lead a team of designers, engineers, manufacturers and investors, so that the final aircraft will not be a DAe product, but the whole project will have been led by the company.

Xaba identifies the next year for SARA as being one in which business plans become well defined and secured and can be implemented alongside the early stages of design. “We have got a number of strategies that we have launched in order to ensure that we can take us to a prototype design phase, a default business plan, a default program plan, an industry collaboration plan and a national benefit plan, so those are our specific targets for the next 12 months”, he explains.

“We would like to now move on and leverage off past successes in order to penetrate other markets and customer areas Going international

While SARA takes up a lot of DAe’s time and energy there is another ambition at play behind the scenes, and this is for DAe to break into the international market. The Rooivalk military aircraft was recognised as an

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excellent product and many were surprised it didn’t garner significant international interest.

DAe have worked with the Finnish navy, and the Swedish defence force have also expressed interest in their products. However, the international market is something they’re still keen to break, and the SARA project will be important in achieving that aim. Theo Kleynhans says that “clearly we would like to now move on and leverage off past successes in order to penetrate other markets and customer areas.”

In order to diversify their customer and product portfolio DAe have been working with US Aerospace giants Airbus and are looking to develop similar relationships with Boeing and HondaJet, with whom they have already secured a contract. They are also looking to break into the European market, and if the SARA project is successful it should find demand from around the world.

DAe’s plans for diversification are part of bold new strategies for the company, involving restructuring and moving away from the constrictions of projectled management. Kleynhans describes DAe’s new direction as a “cultural break”, which will necessitate “proper education and getting everyone on board with a joint vision, aligning everyone to their goals and making sure that we all work together if we can.” Delivering new strategies means taking a

A e r o s t r u c t u r e s

Aerospace

hard approach, explains Kleynhans: “When you make a restructure programme you have got to allow management to work quite disruptively and take the odd risk, calculated as it may be. You cannot use the soft approach – it just delays the pain.”

These strategies are seeing DAe through the final stages of a turnaround plan implemented several years ago. Kleynhans says that “we are forecasted to make profits this year. Which is of course always part of the turnaround plan, and I think we are achieving this one year ahead of target.”

With good news like this it’s likely things continue to improve for DAe, and that SARA will be soon be a presence in the skies of Africa, and perhaps around the world.

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Middle East

To mark the launch of our new publication focussing on the Middle East we have included two pieces from the upcoming first edition, both looking at some of the largest and most exciting business ventures from this growing and fascinating part of the word.

The team at have always had an interest in the business world in the Middle East, and the creation of a sister publication for our Africa-focussed magazine has been on our minds for some time.

We’re delighted to see it come to fruition, and judging by these pieces it looks like it’ll be an exciting journey ahead.

On the heartbeat of Middle Eastern trade and commerce

w w w . d e w a . g o v . a e Dubai Electricity and Water Authority

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Energy

The first ever profile for ’s new publication is a look at Dubai Electricity and Water Authority, and its exciting journey towards sustainability.

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D E W A

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he UAE has maintained a leading position in today’s global energy market, which is widely attributed to how its leadership has used its resources, natural and otherwise, to grow the economy over the last few years. However, the country has also come to realise that to continue to prosper, it needs to become more responsible for the environment.

The UAE has developed a roadmap to achieve total sustainable development to position itself as a model for the whole of the Middle East. In fact, the UAE is the first country in the region to set renewable energy targets and implement programmes and initiatives that can enable it to reach its goals.

Dubai Electricity and Water Authority (DEWA) is committed to playing an important role in the country’s efforts to achieve and maintain sustainability. DEWA was established in January of 1992 through a decree issued by the late Sheikh Maktoum bin Rashid Al Maktoum to merge Dubai Electricity Company and Dubai Water Department, which before then had been operating independently.

Since it was established, DEWA has positioned itself as one of the best utilities in the world: providing world-class, highly efficient and reliable services to around 750,000 customers with a satisfaction rate of 94.4%.

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The roadmap towards clean energy DEWA’s targets for renewable energy are clear. In November 2015, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced the Dubai Clean Energy Strategy 2050, to provide 7% of Dubai’s energy from clean sources by 2020, 25% by 2030 and 75% by 2050.

DEWA’s investment programs include green building regulations, retrofitting existing buildings, district cooling, wastewater reuse, laws and standards to raise efficiency, energy-efficient street lighting, and the Shams Dubai initiative, which encourages building owners to install photovoltaic panels to generate electricity.

Dubai has a carbon abatement strategy to reduce carbon emissions by 16% by 2020, with DEWA contributing over 50% of this target. Dubai aims to become the city with the lowest carbon footprint in the world by 2050.

DEWA is also actively expanding its use of solar power. The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world, with capacity targets of 1,000MW by 2020 and 5,000MW by 2030, and with a total investment of AED 50 billion.

It will help achieve a reduction

“The country’s move to utilise solar power represents the potential of providing most of the UAE’s demand for electricity

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D E W A

by combining electricity and water to improve efficiencies while reducing our capital and operating expenditure.

However, it is not possible to retrofit existing plants with photovoltaic or other solar technologies. To overcome this challenge, MSF plants need to be connected to a central solar plant. DEWA’s strategy is to build RO plants in the future to meet water demand, as they require only 30-40% of the energy that MSF plants need.

Leading the way

of approximately 6.5 million tonnes of carbon emissions annually, which supports Dubai Government’s green initiatives and programmes.

DEWA has also recently issued an AED 100 billion tender for the development of the strategy, regulation, executive lists, and governance framework of the Dubai Green Fund, which was launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to provide the means for investors in the energy sector to fund various projects. DEWA assures the energy demand for the success of these projects, in addition to establishing their economic value.

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Today, DEWA has a water capacity of 470 million imperial gallons of water per day from its desalination plants. DEWA operates its electricity and water networks to high standards of efficiency, availability and reliability. In 1988 its network water loss rates were 42.5%, but today, at 8.2%, they are one of the lowest in the world.

In Dubai, DEWA’s production capacity is primarily derived from Multi-Stage Flash distillation (MSF) technology, with 6% coming from Reverse Osmosis (RO). As 70% of its production is from waste heat and is fuel-free, this means that DEWA is desalinating water

Another example of DEWA’s efforts towards sustainability can be seen in its recent announcement to supply 2,000 households of the Mohammed Bin Rashid Housing Establishment (MBRHE) project with 160,000 LED light bulbs and photovoltaic panels. This will reduce the demand for energy as well as the long and medium term costs for electricity. The move, which is the result of a strategic Memorandum of Understanding (MoU) that was signed by both DEWA and MBRHE, highly complements the objectives and goals set by the Green Economy for Sustainable Development initiative, which was launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum. It also marks a forward step in reaching the goals of the Dubai Integrated Energy Strategy 2030 to reduce energy demand by 30% by 2030.

Energy

Once installations are completed, it is expected to bring in an increased dependence on renewable energy as well as the share of electricity, thus limiting the use of natural resources and taking a huge leap towards sustainability.

The response to going solar

The country’s move to utilise solar power represents the potential of providing most of the UAE’s demand for electricity.

With this in mind, the UAE has already started taking initial steps to introduce solar power, and plans to generate the vast majority of its electrical energy by 2050 from solar and nuclear sources. In fact, the Mohammed bin Rashid Al Maktoum Solar Park is one of the world’s largest renewable projects based on an independent power producer (IPP) model. Besides the three phases that consist of solar farms using photovoltaic technology, the long-term project will also include concentrating solar power (CSP).

DEWA has received recently 5 bids from international organisations for the third phase of the Mohammed bin Rashid Al Maktoum Solar Park. The lowest recorded bid at the opening of the envelopes was US 2.99 cents per kilowatt hour. The next step in the bidding process will review the technical and commercial aspects of the bids to select the best one.

“The UAE has developed a roadmap to achieve total sustainable development to position itself as a model for the whole of the Middle East.

DEWA had released a request for the Expression of Interest (EOI) for the 800MW third phase of the solar park on 8 September 2015 and received 95 EOI responses from international solar organisations between 8-29 September 2015. DEWA requested companies submit their requests for qualification before November 2015. This was followed by a Request for Proposals (RFP) to qualified bidders on 28 December 2015.

The Mohammed bin Rashid Al Maktoum Solar Park will also include the DEWA Innovation Centre, comprised of a group of research and development laboratories in the field of clean energy with a total investment of AED 500 million. The Solar Park also has two test technologies for photovoltaic panels and for CSP. These panels are studied, evaluated and tested for long-term reliability in local weather conditions.

Researchers cooperate with international organisations, to study the impact of dust on photovoltaic equipment. These

tests will help to create higher standards of photovoltaic products in the region.

Going forward

DEWA’s move towards clean energy resources is an effort to assure sustainability, protect the environment, and provide infinite resources of energy and development. The UAE’s leadership recognise the importance of achieving sustainable development, and in doing so attempts to continue the legacy of the country’s founding fathers.

From a more global perspective, the UAE has provided the world with energy for half a century and is committed to its responsibilities as an effective member of the international community. DEWA, along with other concerned agencies, has vowed its full cooperation, support and commitment in working to ensure energy, water and food security to achieve sustainable development and provide a high standard of life for the present and for generations to come.

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Sharjah Oasis w w w . s h a r j a h w a t e r f r o n t c i t y . c o m

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MiddleEast

of

Ambition Sharjah Oasis Real Estate is currently busy with one of the most exciting development projects in the Middle East – the Sharjah hear Waterfront City. from director Hayssam El-Masri, and examine some of what this enormous project involves.

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nown for being a company willing to challenge the status quo and embark on projects that others might find too daunting to pursue, Sharjah Oasis Real Estate was co-founded by Hayssam El-Masri in 2014, making it a comparatively young organisation already making huge progress in the area of real estate.

El-Masri is also the founder of Veyron Investment, a company with successful multiple fast food franchise portfolios built on happiness, customer satisfaction and rapid business growth.

Veyron Investment continues to nurture and provide high growth platforms to global brands throughout the Gulf Cooperation Council (GCC) and the Middle East.

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S h a r j a h

Hayssam El-Masri is also the founder of ENTO Capital Management Limited, an ethical investment bank. ENTO Capital operates in Dubai International Financial Centre (DIFC), and is regulated by Dubai Financial Services Authority (DFSA).

The company has expertise in both conventional and nonconventional banking, made up of a resourceful management leadership team that has over 60 years of investment banking experience.

Sharjah Waterfront City is Sharjah Oasis Real Estate’s flagship project, and a powerful indication of how the company intends to conduct itself. This

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looks to involve substantial projects involving large amounts of time, personnel, cooperation between strategic partners, and investment. El-Masri tells that “we work very closely with our strategic partners. They are very helpful with infrastructure, and we work with them very closely to meet requirements and regulations, with business practice and on the ground.”

“The Sharjah Waterfront City is the company’s flagship project and a powerful indication of how the company intends to conduct itself

E s t a t e

D e v e l o p m e n t

With such a large project you might expect a complex and perhaps unwieldy supply chain.

However, according to El-Masri Sharjah Oasis has avoided this by streamlining operations at the planning stage. Before any of the physical foundations of Sharjah Waterfront City were laid the company “worked for almost a year and a half just working on the program, sharing the knowledge and brainstorming with our strategic partners and suppliers”, ensuring efficiency when plans became reality. This process has seen Phase 1 of the project be launched successfully and progress with impressive intensity.

We are a UAE based EPC electrical contracting and trading company known for our integrated products and services tailor made for the utilities, airport, construction and manufacturing industries etc. Sound Domain knowledge, customer driven approach to business and process strictly conforming to global quality practices have catapulted us to No. 1 position in a short span of time, since our inception.

Today our very name stands for attributes as diverse as the range of services and products. We are into exemplary acumen steeped in ethical business practices, committed work force, a passion for belonging the best to the customers and the ability to execute the projects of any magnitude.

That explains the notable expansion of our customer base and the sharp rise in our turn-over. What’s more, we are on the list of electrical contractors and suppliers accredited to the Federal Electricity and Water Authority. Sharjah Electricity & Water Authority, Dubai Electricity & Water Authority, Abu Dhabi Electricity & Water Authority, and various other reputed organization in the U.A.E. EPC Electrical Contracting for supply, Installation of substation equipment’s & power cables from low voltage up to 220kV. We are Stockiest & Supplier of Transformers, Switchgear, HV & LV material including Cables & OHL. We expertise in Substation, Transformers, Switchgear, Cable, OHL, FOC/SCADA & Telecom equipment’s.

The 132/33/11kV substations in Star#1 & Star#2 will meet the growing demand in all areas of the Emirate. Within Short Span we completed the project on time including 132kV external cabling work Through-out the construction, we demonstrated our commitment to providing quality products & workmanship to our client, paying attention to all detail while coordinating all aspects of the works.

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Email: sales@scanelectromechanical.com | www.scanelectromechanical.com

S h a r j a h

O a s i s

R e a l

The Sharjah Waterfront City

With the Middle East, and especially Dubai, becoming more and more famous for daring real estate projects – it’s necessary only to look at the Burj Khalifa to see what kinds of ambitions are being realised – it’s not surprising that another amazing development is currently underway. It’s difficult to exaggerate some of the complexities and scale involved in the creation of Sharjah Waterfront City. The project could be described as a hyperdeveloped archipelago, and will be comprised of eight natural islands connected by canals and bridges, spread across 36 square kilometres on the north eastern coast of the UAE. The whole development will have a luxury atmosphere, and will provide an extremely high standard of living for all its inhabitants.

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Sharjah Waterfront City is a mixed use real estate project comprising of residential, commercial, retail, education, entertainment, and more, and enormous provisions have been made for a projected influx of tourism, said by the emirate of Sharjah’s Vision 2021 to attract 10 million tourists by the year 2021. Sharjah Waterfront City will accommodate over 120,000 residents – roughly the population of a medium-sized city in the United Kingdom.

E s t a t e

D e v e l o p m e n t

Extensive commercial facilities will also be created, so that the development will be a multiuse area with an incredible infrastructure, and fully deserving of the title ‘city’. Different areas of Sharjah Waterfront City will specialise in tourism, residential and commercial concerns, with vast infrastructure connecting these three aspects of living.

A short rundown of projects to be completed might include 200 mixed-use towers, 95 luxury apartment buildings, multi-level hotels and service apartments, over 1100 water-front and parkside villas, a shopping mall, and amenities such as mosques, schools and restaurants. These will involve financers, suppliers, engineers and architects all working together to see the project to completion.

“It’s difficult to exaggerate some of the complexities and scale involved in the creation of Sharjah Waterfront City

Crystal Lagoon Water Theme Park

One especially exciting part of Sharjah Waterfront City’s future is its Crystal Lagoon Water Theme Park. The theme park is set to become the development’s largest attraction for tourists, as well as benefiting its residents, many of whom will be raising families.

El-Masri explains the scale of this aspect of the waterfront city alone: “Based on and inspired by Sharjah Tourism Vision 2021, our crystal theme park is more than 1.5 million square feet, and carries between 29 and 34 attraction programs. It’s going to be adding value for our customers, and we expect tourism to increase with that development.”

“Part of our development program is to be working on new technologies, and to mine as much as we can from technology and sustainability Designed by world-renowned design firm Jack Rouse Associates and equipped with state of the art facilities and world-leading rides, the Crystal Lagoon Water Theme Park looks to become a jewel in Sharjah Oasis Real Estate’s crown, and key to the future success of Sharjah Waterfront City. A market and feasibility study prepared by Colliers International suggests that 1 million people are expected to visit the theme park every year.

Sustainability and new technologies

Embracing new technologies is often not just a desirable addition to large-scale infrastructure projects such as this – sometimes they are absolutely necessary to see it through. New technologies are associated with routes towards increased sustainability, which is an important part of Sharjah Oasis’ plans. El-Masri tells that “part of our development program is to be working on new technologies, and to mine as much as we can from technology and sustainability. We are working with a few consultants right now in order to increase the provision of sustainable programs to power Sharjah Waterfront City.”

IN

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