WWW.AFRIC AOUTLOOKMAG.COM
Retail Congress Africa 2015 provides a platform for the industry’s most renowned brands to flex their muscles
EY’S FDI SURVEY 12 The annual report paints a rosier picture for countries outside of sub-Saharan Africa
ATT AFRICA 38 Building a long-term, continental vision
BROLL PROPERTY GROUP 66 Enhancing its leading position in sub-Saharan Africa by targeting international status
EDENDALE HOSPITAL 150 Hospital revamp meets National Core Standards
AFRICA OUTLOOK ISSUE 33 FEATURING: GHANA NATIONAL PETROLEUM CORPORATION | CELLULANT | CSI CONSTRUCTION GROUP
DRIVING TECHNOLOGY DELIVERING PRODUCTIVITY Our underground loaders and haul trucks are engineered for safety, productivity and reliability in your toughest mining applications. Rugged, compact and highly maneuverable, the ergonomic equipment oers enormous capacity for its size and returns a low cost per ton. Sandvik LH517 is a high-capacity, 17-metric-ton loader designed for three-pass loading of our Sandvik TH551 underground truck to optimize your ore-moving process. 5030 Mutentemuko Road Industrial Area, Kitwe Tel : + 260 212 241 000 Fax : + 260 212 218 896 MINING.SANDVIK.COM
W E L C O M E Expansion, Innovation, Operational Excellence and Consumer Knowledge The above buzzwords are undoubtedly key pillars on which every retailer worth their salt have built their businesses over the years, and are therefore the pillars on which 2015’s Retail Congress Africa were aptly constructed. Taking place in Cape Town at the beginning of November, the continent’s Retail Congress Africa 2015 premier bringing together of Africa’s provides a platform for the industry’s most renowned brands to flex their muscles most renowned industry protagonists provided a platform - as always - for the top decision makers to share their industry expertise, experiences and foresights over the course of two days; graced by an ever-increasing number of attendees from around the world. Never one to miss the party, Africa Outlook is not only an official media partner of Retail Congress Africa - as well as World Retail Congress and Retail Congress Asia - in both 2015 and 2016, but also took the opportunity to speak to some of the most esteemed attendants to get a slightly more exclusive gauge on the industry, and the companies driving change within it. Virgin Active, Spree, AttAfrica and Fruit & Veg City all took the chance to share their success stories in the midst of an exciting time for African retail across numerous frontiers; complemented and kick-started last month by Jumia’s slightly more digital take on the trends to expect in 2016. The latter also sets the scene for this month’s Sector Focus, as the Nigerian ecommerce giant analyses the growing influence of Black Friday on the continent. Completing our front-of-book section, we delve into two of the most credible gauges of African economy in the form of EY’s FDI attractiveness survey and FT’s Africa summit; paving the way for our monthly company showcase assortment. Ghana boasts the lion’s share via two of Africa’s most renowned telecoms operators, Airtel and Vodafone, while the stateowned Ghana National Petroleum Corporation shares its sustainable vision for the future. Elsewhere, the likes of Cellulant, Delta Food Industries, Three Streams, Good Time Steel and Edendale Hospital represent their respective sectors, complemented by a concerted construction focus headed by familiar industry Matthew Staff leaders, Broll Property Group. Editorial Director, WWW.AFRIC AOUTLOOKMAG.COM
EY’S FDI SURVEY 12 The annual report paints a rosier picture for countries outside of sub-Saharan Africa
ATT AFRICA 38 Building a long-term, continental vision
BROLL PROPERTY GROUP 66 Enhancing its leading position in sub-Saharan Africa by targeting international status
EDENDALE HOSPITAL 150 Hospital revamp meets National Core Standards
AFRICA OUTLOOK ISSUE 33 FEATURING: GHANA NATIONAL PETROLEUM CORPORATION | CELLULANT | CSI CONSTRUCTION GROUP
Outlook Publishing
EDITORIAL Editorial Director: Matthew Staff matthew.staff@outlookpublishing.com Deputy Editor: Emily Jarvis emily.jarvis@outlookpublishing.com
PRODUCTION Production Manager: Daniel George daniel.george@outlookpublishing.com Art Director: Stephen Giles steve.giles@outlookpublishing.com Advert Designer: Mandy Farnell mandy.farnell@outlookpublishing.com Images: Thinkstock by Getty Images
BUSINESS Sales Director: Nick Norris nick.norris@outlookpublishing.com Operations Director: James Mitchell james.mitchell@outlookpublishing.com Sales Managers: Eddie Clinton eddie.clinton@outlookpublishing.com Tom Cullum tom.cullum@outlookpublishing.com Project Directors: Arron Rampling arron.rampling@outlookpublishing.com Donovan Smith donovan.smith@outlookpublishing.com Project Managers: Callum Philp callum.philp@outlookpublishing.com Joe Palliser joe.palliser@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Stuart Parker stuart.parker@outlookpublishing.com
ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Admin Assistant: Sophia Curran sophia.curran@outlookpublishing.com Office Manager: Katie Park katie.park@outlookpublishing.com WEB DESIGN: Hamit Saka IT: James Le-May
OUTLOOK PUBLISHING Managing Director: Ben Weaver ben.weaver@outlookpublishing.com Chairman: Mark Weaver CONTACT Outlook Publishing Ltd Woburn House, 84 St Benedicts Street, Norwich, Norfolk, NR2 4AB, United Kingdom Sales: +44 (0) 1603 959 652 Editorial: +44 (0) 1603 959 655 SUBSCRIPTIONS Tel: +44 (0)1603 959 655 Email: matthew.staff@outlookpublishing.com
www.africaoutlookmag.com Like us on Facebook - facebook.com/africaoutlook Follow us on Twitter - @Africa_Outlook
Enjoy the issue!
WWW.AFRICAOUTLOOKMAG.COM
3
C
O
N
In this issue of Africa Outlook...
T
E
N R
28
T E
T
A
S I
L
RETAIL CONGRESS AFRICA Enabling Retail Entrepreneurs to Accelerate Growth in Africa
2015’s event brings together the continent’s most renowned retail brands
6
NEWS
12
EY’S FDI ATTRACTIVENESS SURVEY, 2015 It’s Time for North Africa
All the latest top stories across the month from Africa
30
VIRGIN ACTIVE SA Live Happily Ever Active
38
ATTAFRICA On Course for $1 Billion Target
Challenging the norm through motivation, encouragement and inspiration
Building a long-term, continental vision
The annual report paints a rosier picture for countries outside of sub-Saharan Africa
18
FINANCIAL TIMES Prioritising Nigeria’s Port Development
Exploring the standout themes of October’s FT Africa Summit
48
SPREE Unlocking Growth through Ecommerce
Bringing the best of local and international fashion brands and designers to South African ecommerce
S E C T O R
22
F O C U S
RETAIL Black Friday: A Turning Point for African Retail
Jumia’s continental championing of the US-incepted trend broadens
26
4
SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world
WWW.AFRICAOUTLOOKMAG.COM
52
FRUIT & VEG CITY Placing Freshness and Value at a Premium
A dedication to freshness at an affordable price
60
SPAR LOWVELD DISTRIBUTION Keeping an Eye on what’s in Store Facilitating a superior shopping experience
C O N S T R U C T I O N
66
BROLL PROPERTY GROUP Shaping the Future of Property Services
Enhancing its leading position in sub-Saharan Africa by targeting international status
116
VODAFONE GHANA The Journey of Transformation Continues
162
Reaping the benefits of Vodafone in every corner of Ghana
Breaking new ground in rubber compound innovations
F O O D & D R I N K
122
DELTA FOOD INDUSTRIES FZC High Value, Premium Quality, Best Price
168
78
CSI CONSTRUCTION GROUP High Standards of Workmanship
Collaborating to provide civil and building, electrical, mechanical and structural steel solutions
84
THREE STREAMS Celebrating 25 Years of Sustainable Aquaculture Capitalising on the continuous growth of aquaculture worldwide
138
CORNER BAKERY Taking a Share of the Retail Pie
F
Providing a total property solution to remain competitive in sub-Saharan Africa
96
T E C H N O L O G Y
100
AIRTEL GHANA Leading Ghana’s Data Revolution
Raising standards across Ghanaian telecommunications
110
CELLULANT A Leading Mobile Payment Ecosystem for the Increasingly Mobile Africa
Creating technological innovations that bring mobile payment services to Africans
A
N
C
E
S H I P P I N G & LO G I S T I C S
O
I
142
CARLSON REZIDOR At the Upper Scale of Hospitable Recognition Driving and unlocking value across 26 countries, and counting
N
MICROENSURE Unprecedented Insurance
Africa’s fastest growing insurance organisation
Extending its retail reach into Africa
90
I
172
Witnessing rapid expansion in the convenience food industry
McCORMICK PROPERTY DEVELOPMENT Pioneering Rural Retail Development COLLINS PROPERTY GROUP An Opportunistic Approach to Property
PPC ZIMBABWE Laying the Foundations for Infrastructure Growth Expanding its manufacturing facilities to capitalise on emerging market growth
Establishing trust and credibility among an increasing network of partners
132
NUVO RUBBER COMPOUNDERS Compounding Excellence
L
&
G
A
S
GHANA NATIONAL PETROLEUM CORPORATION Harnessing Petroleum Resources for Ghana’s Sustainable Growth
180
Capitalising on the international trade opportunities in southern Africa
MINING & RESOURCES
Partnering with the best in class for continued exploration success
186
EDENDALE HOSPITAL Making Significant Strides in 2015 Hospital revamp meets National Core Standards
E V E N T
192
MANUFACTURING
158
GOOD TIME STEEL ZAMBIA Building a Better Zambia Manufacturing a diverse range of quality steel products for Zambia and the surrounding countries
KHOEMACAU COPPER MINING (PTY) LTD Long-term Commitment to Botswana
Capitalising on Botswana’s wealth of mineral deposits in the northwest
H E A L T H C A R E
150
MAERSK NAMIBIA Enhancing Namibian Trade
F O C U S
GLOBAL OIL & GAS NORTH AFRICA AND MIDDLE EAST EXHIBITION AND CONFERENCE
Analysing Egypt’s future oil & gas and energy potential
194
RETAIL WORLD AFRICA Africa’s leading annual retail event returns in 2016
WWW.AFRICAOUTLOOKMAG.COM
5
N
E
W
S
TRANSPORT
Collaboration Drives Growth at 47th General Assembly of African Airlines Association (AFRAA) More than 300 senior decision-makers attended the 47th AFRAA Annual General Assembly, with this year’s hosts, ECAir, focused on ways to sustainably grow airline traffic for the benefit of all
Fatima Beyina-Moussa, CEO of ECAir, Equatorial Congo Airlines, the national airline of the Republic of Congo (DRC), chaired the proceedings of the 47th General Assembly of the African Airlines Association (AFRAA). The event, under the high patronage of Denis Sassou N’Guesso, President of the Republic of Congo, was held from 8-10 November, 2015 at the Complexe Sportif de la Concorde in Kintélé; with the theme ‘Open Skies: Growth through Competition and Collaboration’.
6
In total, 35 airlines attended and more than 300 participants discussed strategies to promote the implementation of the Yamoussoukro Decision, which enshrines free access for air carriers to intra-African connections. Even though it was adopted by 44 countries in November, 1999, to date only 11 African countries have committed to implementing it effectively. At the beginning of the discussion, the leaders of the AFRAA member airlines received valuable support from the Congolese President, Denis
Sassou N’Guesso. “One of the great merits of your association is the awareness that unity is strength and that in your industry salvation lies in the need for solidarity, in sharing essential resources and in vital synergy. Your association pursues ambitions and goals that are in perfect harmony with the African Union,” declared the Head of the Congolese state. The Republic of Congo is committed to making air transport one of the major pillars of its economic diversification strategy. In recent years, the DRC has in fact provided advanced infrastructure in this area. Significant investment has been made to build or upgrade nine airports. Three of these, including Maya-Maya Airport - which boasts ultramodern architecture - are world-class. In particular, the country has launched an airline, ECAir, which, in the space of just four years, has become the benchmark for passenger air transport in Central Africa. Fatima Beyina-Moussa, who headed AFRAA this year, said: “At ECAir, we opted to negotiate with our peers and were able to conclude inter-airline agreements with TAC, Asky, Ethiopian, South African Airways, Air Algérie and agreed to operate the Brazzaville-Beirut route in collaboration with Trans Air Congo. I am also pleased to announce that Kenya Airways and ECAir have decided to collaborate closely in the near future. I would like to thank my colleague, Mr Mbuvi Ngunze, CEO of Kenya Airways.” Edmund Makona, CEO of Air Zimbabwe, is to succeed Fatima Beyina-Moussa as head of AFRAA; with the Company hosting the 48th General Assembly of AFRAA from 2022 November, 2016, in Victoria Falls, Zimbabwe.
GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA
H E A LT H C A R E
Innovative Medical Diagnostic Solutions Shape SSA Healthcare Healthcare systems across subSaharan Africa (SSA) face a number of formidable challenges; namely limited energy resources, brain drain, inaccessibility to medical facilities, limited government funding, and high costs are placing tremendous strain on the healthcare system. The region bears 25 percent of the world’s disease burden, yet has only three percent of the world’s doctors. Furthermore, with a total population of close-to one billion across 49 countries, the region’s infrastructure challenges make it nearly impossible for healthcare
facilities to effectively deliver adequate services. In order to help combat these issues, Himore Medical in Cameroon has designed CardioPad, a wireless solution that enables the efficient monitoring of cardiovascular diseases (CVDs). While the majority of
TECHNOLOGY
Free Basics Partners with Praekelt Foundation Facebook’s Free Basics platform is now live, with more than 60 new free services available across the 29 countries, including 14 in Africa. At this year’s AfricaCom 2015, Praekelt Foundation and Facebook announced a partnership that aims to accelerate the impact of internet penetration to create services for the Free Basics platform in Africa. The Praekelt Foundation Incubator for Free Basics will support developers building apps for the Free Basics Platform. “When people are connected, they can achieve extraordinary things as individuals and as a community. Connectivity brings opportunity for
Ime Archibong, Director of Strategic Partnerships at Facebook
people around the world, and we’ve seen this firsthand here in Africa, where we began this journey,” said Ime Archibong, Director of Strategic Partnerships at Facebook. Free Basics has now been launched in Kenya, South Africa, Tanzania,
cardiovascular specialists practice in the capital city of Cameroon, Yaoundé, 80 percent of the country’s population lives in rural areas. The CardioPad provides improved access to cardiovascular healthcare for patients living in remote areas and is able to transmit a digitised electrocardiogram (ECG) of the patient’s heart function through a mobile network to a second CardioPad device situated in a city hospital - where a registered cardiologist can make a diagnosis. “The CardioPad is a pioneering product that addresses the low doctor to patient ratio by enabling the successful examination of patients for CVD, remotely. We are the first Company on the continent to manufacture a medical tablet capable of changing and saving the lives of CVD patients in rural areas,” said the Company. Senegal, Zambia, Ghana, Angola and Malawi. Mobile phone users in these countries now have access to a set of websites and services with no data charges, across categories including maternal health, education, news updates, as well as local information. The platform is making an impact on people’s lives by providing free health, education, and economic information. For instance, SmartBusiness, a website that helps people learn to launch and run a business, now sees five times more daily searches within their service since launching in South Africa in July, meaning more people are getting access to important economic information. Additionally, BabyCenter and MAMA both reach millions of people around the globe with vital health information on pregnancy and parenting, including 3.4 million people through Free Basics services alone.
GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA
7
N
E
W
S F I N A N C E
Private Equity to Provide Namibian Investors with Compelling Investment Opportunities Peter Hoitjink, Company Director, Strategy&
F I N A N C E
Capabilities-Driven Strategy Key to Success in Africa
According to a new study released by Strategy&, companies that adopt a capabilities-driven strategy will gain a competitive edge in African markets. Commenting on the new study, ‘creating value in Africa’, Jorge Camarate, Strategy& Partner, said: “Worldwide, multinational companies are including plans to expand across Africa in their growth strategies. CEOs throughout Africa have unanimously confirmed that they see high growth potential on the continent, according to research conducted by PwC. “This confidence is an indication of the positive long-term trajectory we have seen in general economic prospects, availability of finance, and the increasing presence of potential local and international partners attracted by the African continent’s potential.” Traditionally, firms formulate a strategy by looking for market opportunities, but all too often it does not work, particularly in the African context. Camarate commented: “We approach strategy the other way round with an approach that we call a ‘capabilities-driven strategy’.”
8
The implementation of new regulations requiring institutional investors to invest a minimum percentage of their assets into unlisted assets in Namibia, is set to provide a significant boost to private equity in the country, as well as benefiting investors and the local economy as a whole. This is according to Erika van der Merwe, Chief Executive Officer of the Southern African Venture Capital and Private Equity Association (SAVCA), who shared her insight
at the SAVCA event in November, themed around the changing regulatory environment and its impact on local investors. Van der Merwe said that, while research points to significant fundraising success for private equity funds in sub-Saharan Africa, the private equity market in Namibia is relatively untapped. “The new regulations will now provide Namibian long-term insurance companies and pension funds with the incentive to take advantage of this still-underutilised alternative asset class,” she said.
T E C H N O L O G Y
Riding the Wave of West Africa’s Digital Economy Companies in Nigeria and the rest of the region who do not utilise some form of business management software and other digital revolutions are at risk of a serious disadvantage to their competitors, according to the Regional Director of Sage West Africa, Magnus Nmonwu. Nmonwu says companies that want to stay ahead of the trend towards online business need to put modern business solutions in place that are ready for mobility, the Internet of Things, analytics and other digital technologies that are transforming the business environment. “With more than 93 million internet users in Nigeria alone, the region’s
Magnus Nmonwu , Regional Director for Sage West Africa
people form a formidable digital marketplace,” he said. “These internet users want the speed, simplicity and convenience of buying goods and services right from their mobile phones...Businesses that don’t keep up with changing consumer and employee behaviour will lose ground to their competitors,” Nmonwu adds.
GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA
M I N I N G
CONSTRUCTION
Louis Berger to Modernise Cameroonian Stadiums
The NEXIM Bank and The World Bank to Collaborate on Developing Nigeria’s Mining Sector The World Bank and NEXIM Bank are to potentially collaborate towards a structured intervention of Nigeria’s minerals sector to revitalise the mining industry, boost job creation and enhance foreign exchange earnings. At a recent meeting, the two financial institutions shared ideas on how to provide structured intervention towards revamping and deepening Nigeria’s mining sector. Since inception, NEXIM has provided investments to the tune of N7.17billion for the mining industry, creating more than 4,302 direct jobs plus many
Roberts Orya, Managing Director, NEXIM, and Dr. Francisco Igualada, Senior Mining Specialist, Energy & Extractives Unit, World Bank
indirect jobs. Besides direct funding, NEXIM has previously supported the Miners Association to move from their inaccessible office in Jos, Plateau State to facilities at the Bank’s headquarters in Abuja.
one load shedding occurs to South Africa’s national grid. So far, Standard Bank has provided finance to 14 active renewable energy projects delivering power to South Africa’s power grid. As Africa’s Renewable energy projects financed biggest lender by assets, the Bank has also provided additional financing by Standard Bank are currently for more renewable energy projects producing more than 40 percent that are yet to come on stream, of the 1,760MW produced by IPP’s but which are anticipated to add a under the REIPPP Programme, delivering roughly the same amount further 800MW of power to South Africa’s power generating capacity. of power that is cut when phase E N E R G Y
Standard Bank Commits to SA’s Power Provision
Louis Berger has announced it will be providing its project management expertise for the modernisation of several stadiums in Yaoundé, Cameroon’s capital, in preparation for the 2016 Africa Women Cup of Nations and the 2019 Africa Cup of Nations men’s tournament. “We are honoured to support Cameroon’s infrastructure needs ahead of two of Africa’s most prestigious sporting events,” said Jacques Blanc, Louis Berger’s Director General Delegate for Africa. “These stadium modernisations will give Yaoundé world-class sports facilities befitting the top talent that will play there over the next four years.” TECHNOLOGY
Sudatel Triumphs at the Global Carrier Awards
Sudatel Telecom Group has received the ‘Best African Project’ award at the Global Carrier Awards in recognition of the pivotal role it played in advancing infrastructure in a rapidly emerging market. Sudatel was participating in the competition for the first time as a result of its data centre project which represents a landmark achievement for the country and the wider region as a whole. After five years of planning and building, Sudatel launched the first purpose-built data centre in Sudan in December, 2014; the project becoming the most secure and reliable across North, East and West Africa with a Tier 4 specification.
GO TO WWW.AFRICAOUTLOOKMAG.COM/NEWS FOR ALL OF THE LATEST NEWS FROM AFRICA
9
TELL US YOUR STORY
AND WE’LL TELL THE WORLD AFRICA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Africa. We reach an audience of 165,000 people across the continent, bridging the full range of industrial sectors: mining; oil & gas; logistics; resources; manufacturing; construction; engineering; technology; food & drink; retail; finance; and healthcare. In joining the leading industry heavyweights already enjoying the exposure we can provide, you can benefit from FREE coverage across both digital and print platforms, a FREE marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to grow your business. To get involved, please contact Outlook Publishing’s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for free, in one of our upcoming editions.
W W W. A F R I C A O U T LO O K M A G . C O M Tel: +44 (0) 1603 959 650 Email: ben.weaver@outlookpublishing.com
E Y
F D I
A T T R A C T I V E N E S S
S U R V E Y
IT’S TIME FOR
NORTH AFRICA On the fifth anniversary of EY’s FDI attractiveness survey in Africa, the continent’s previously documented ‘norm’ has shifted somewhat, with the previously dominant South and West sharing their prosperity with the wider world far more evenly than before Writer: Matthew Staff
12
WWW.AFRICAOUTLOOKMAG.COM
E
C
O
N
O
M
Y
or five years now, EY has produced its annual FDI attractiveness report on the African continent, and while each instalment up to this point has followed a developing trend or progressive norm, 2015’s review of 2014’s quirks and fluctuations have signified a slightly more complex and ‘against-the-grain’ era. Perhaps unsurprisingly, recent surveys have confirmed the dominance of sub-Saharan Africa as the most attractive proposition - usually for potential investors in the US or UK - with South Africa and Nigeria, especially, solidifying their role as the cream of the continental crop with conditions ripe for international business expansion. Meanwhile, in the north, a mixture of political, economical and infrastructural challenges had cast the once prosperous region into the background in recent years. Perhaps though, this unwanted reliance on its own internal recovery has proved to be the very catalyst that the likes of Egypt and Morocco needed. A change of fortunes for both South Africa and Nigeria, coupled with this proactive resurgence of domestic investment activity in the north has caught the eye of the neighbouring world, and with the increasingly strong East Africa-Middle East connection to factor in as well, the dynamic of African foreign direct investments looks very different to that seen since 2010. “This [fifth edition] milestone is an opportunity to pause and reflect on how Africa’s attractiveness has evolved,” EY’s report notes. “Our very first edition was released after a decade of strong economic growth, at a time when South Africa had just successfully hosted the football World Cup; a time of increasing optimism about Africa’s progress. Our mission, from the outset, has been to provide factual substance to the ‘Africa rising’
narrative. “So where is Africa in its journey? North Africa rebounds, but FDI in sub-Saharan Africa shows contrasting trends. Political uncertainty following the Arab Spring in 2011 is beginning to fade, and North Africa is becoming more attractive as an investment destination.”
Northern resurgence
All told, Africa is the world’s second largest destination for FDI capital inflows, doubling over the course of 2014 to US$127.9 billion as a consequence of several landmark deals in the energy and oil & gas space. Nigeria and Angola were two beneficiaries of the ongoing international interest, but it is arguably a US$10 billion investment by Mac Optic into a new refinery and petrochemical plant in the Gulf of Suez, in Egypt, which gives the strongest indication of things to come in Africa. In general, economic expansion on the continent is likely to be its slowest in the five year duration of EY’s monitoring, namely as a result of
WWW.AFRICAOUTLOOKMAG.COM
13
E Y
F D I
A T T R A C T I V E N E S S
S U R V E Y
the aforementioned oil & gas sector. However, the consistency of individual landmark investments means that the resilience to these headwinds is stronger than before, with capital investments and job creation surging as a consequence. Once again, this is having an especially positive influence on the previously struggling north. “FDI investors returned enthusiastically to Egypt and Morocco,” the report says. “Last year, we highlighted an increase of FDI inflows in sub-Saharan Africa (SSA), while those to North Africa declined. 2014 saw a strong resurgence of FDI in North Africa, particularly in terms of capital inflows and jobs. Egypt and Morocco were the biggest winners.” As opposed to the meagre 19.1 percent in 2013, North Africa’s revival in 2014 was significant to the tune of more than half of all African FDI inflows, with the region subsequently generating 80,000 new jobs and doubling its overall share to 42 percent. EY continues: “Though Libya remains unstable, investors have shrugged off concerns over insecurity and political uncertainty, which had earlier dampened interest in North Africa and led international companies to postpone or scale down their investments. Egypt and Morocco, the region’s dominant economies, are benefiting most from the rebound in investor appetite.”
“2014 saw a strong resurgence of FDI in North Africa, particularly in terms of capital inflows and jobs. Egypt and Morocco were the biggest winners ” 14
WWW.AFRICAOUTLOOKMAG.COM
The West-East contrast
Unthinkable just 12 months ago, but 2014’s results - as a worst case hypothetical scenario - may prove to one day be the historical document of Nigeria’s Egypt-like decline in the years to come. Slightly melodramatic perhaps, and almost entirely dependent on the oil & gas price’s continued slump, but it has certainly been a tough year for a country which only recently became the continent’s biggest economy.
N
industry domain. Mozambique and Ethiopia both moved up EY’s rankings to break into the top 15 countries by FDI projects in 2014, and are being touted as two of the most promising nations looking forward, as international investors keep a close eye on the possibility to capitalise on both countries’ copious natural resources. The report says: “Mozambique garnered 50 FDI projects in 2014, moving up two places to become the fifth-largest recipient of FDI projects in Africa. The promise of large natural gas deposits has put Mozambique on the investment map. Yet the country is one of the few to win a balanced share of projects, funds and jobs. “In 2014, Ethiopia emerged as the eighth-largest recipient of FDI projects in Africa, up from 14th position in 2013. FDI in Ethiopia is atypical: though the 32 projects launched there last year accounted for only 4.4 percent of the African total, and involved relatively small sums, they provided an astonishing 18.5 percent of FDI jobs in Africa. The inflow reflects the combined attractions of Africa’s second-largest population, numbering 94 million, and an affordable workforce.”
– Chinelo Anohu-Amazu, Director General of the National Pension Commission
3.1
2.7 2.0 2.0
TUNISIA
4.4
RWANDA
5.5
ALGERIA
6.8 6.7
GHANA
NIGERIA
8.5
MOZAMBIQUE
K E N YA
MOROCCO
EGYPT
SOUTH AFRICA
9.1
“Nigeria’s core stock of infrastructure is estimated at only 20-25 percent of GDP – compared to 70 percent for other middleincome countries of its size – but the foreign direct investment opportunities in this sector are vast. Foreign direct investment will play a significant role in the country’s immediate economic future, particularly in regards to developing hard infrastructure such as broadband, transport (roads, railways, ports and airports), housing and energy; soft infrastructure such as education and skills development; and institutional infrastructure such as transparency and corporate governance. This last one is key because as Nigeria continues to grow as an investment destination of choice and attract further capital, equity and debt investors; security and political risks will become increasingly important”
Top 15 countries by FDI projects, 2014 (% share of projects)
16.5
9.7
Y
ZAMBIA
Pension Commission
Outside of Egypt and Morocco, arguably the biggest, ongoing success story in recent years is the emergence of rapidly developing East African nations, led by the attractiveness of Kenya as the eastern hub, and supported by the geographical ties with an equally thriving Middle Eastern
M
IVORY COAST
No need to panic for the West African giant just yet though, with 2014’s mixed bag of statistics not entirely off-putting to traditional exponents of the country. “Nigeria, now Africa’s largest economy after rebasing its GDP last year, attracted 49 FDI projects in 2014, 10 fewer than during 2013,” EY explains. “However, the average project involved more than twice as much investment, though job creation continued to lag. “Investment targeting Nigerian consumers slackened; investors announced only six projects in CPR, down from 23 in 2013. This widespread trend to fewer, but higher value projects was also displayed last year in Ghana, the second-largest West African economy, where growth in project numbers has averaged 34.1 percent since 2007.”
O
TANZANIA
O
UGANDA
C
ETHIOPIA
E
1.8
1.5
1.5
WWW.AFRICAOUTLOOKMAG.COM
15
E Y
F D I
A T T R A C T I V E N E S S
S U R V E Y
Coal, oil and natural gas still account for a quarter of all funds infiltrating the continent from overseas
Taking care of Africa’s future
So, the South and West are swimming against the tide, the East is riding a wave of momentum, and the North has built itself a lifeboat and is seemingly en route to safety. All of this makes for a much more even outlook across the continent, with the rest of the world faced with a much wider array of lucrative options for FDI than they have enjoyed in recent years. But to what industries are these investments being targeted?
“...The promise of large natural gas deposits has put Mozambique on the investment map. Yet the country is one of the few to win a balanced share of projects, funds and jobs”
16
“[There are]opportunities abound in infrastructure, consumer-facing and agricultural sectors,” EY emphasises. “Two trends defining Africa’s future growth path include rising urbanisation and a growing consumer class. In line with these trends, FDI data reveals strong inflows into real estate, hospitality and construction (RHC) in 2014. “Three consumer-facing sectors - technology, media and telecommunications (TMT); financial services; and consumer products and retail (CPR) - again attracted the largest share of investor activity. Respondents to our survey are also excited about prospects in the relatively underexploited agricultural sector.” Coal, oil and natural gas still account for a quarter of all funds infiltrating the continent from overseas, despite the challenges being encountered in these areas across some countries. However, much in the same way that each country has had to diversify its economic drivers in order to keep moving forward, international investors are similarly proving more diverse in their make-up and intentions.
WWW.AFRICAOUTLOOKMAG.COM
Top 10 source countries by FDI projects, 2014 1 USA 2 UK 3 South Africa 4 UAE 5 France 6 Germany 7 China 8 India 9 Portugal 10 Spain
E
C
O
N
EY adds: “Traditional investors, including those from North America and the Middle East, refocused their attention on Africa [in 2014]. Investors from the US, France, the United Arab Emirates (UAE), Portugal and China were particularly active during the year. From a regional perspective, Western Europe and Africa remain the largest sources of FDI into the continent.” Spurred by growth prospects in the future, the amount of intra-African investments rose, complementing a resurgence of interest from North America and the Middle East, and traditionally strong input from the UK. EY now predicts that Africa’s potential is coming to fruition. The label of ‘emerging’ has been tarnished by economical, structural and industryspecific challenges that some of the continent’s biggest economies have been forced to respond to; leading to a period of transformation in some cases
O
M
Y
“Three consumerfacing sectors technology, media and telecommunications (TMT); financial services; and consumer products and retail (CPR) - again attracted the largest share of investor activity ” - Egypt, Morocco and Nigeria being prime examples - and the opportunity to learn from others’ mistakes in other regions like East Africa. However, in order to reach
this potential and to strike when factors allow them to do so, this transformation must remain proactive, with EY laying the responsibility firmly at the continent’s leaders’ door. “Africa’s future will not take care of itself. Our view is that Africa and its leaders have reached an inflection point; deliberate and urgent choices are required to raise levels of productivity and competitiveness, accelerate structural transformation and make the shift toward an inclusive, sustainable growth path. “In our first edition, we declared ‘it’s time for Africa!’ Five years on, we now assert ‘it’s time for Africa’s leaders!’ By working together we have the opportunity to make a real difference in realising the dream of great African leaders like Nelson Mandela; to help build an Africa that is prosperous, where human potential has the opportunity to flourish, and where nobody is left behind.”
The continent’s biggest economies have responded to industry challenges, leading to a period of transformation
WWW.AFRICAOUTLOOKMAG.COM
17
F T
A F R I C A
S U M M I T
O V E R V I E W
Prioritising Nigeria’s Port Development Nigeria remains in the spotlight after many of the continent’s leading business minds met at FT Africa Summit in October, with the country’s economic outlook presenting itself as the prominent topic of the day Writter: Emily Jarvis
18
WWW.AFRICAOUTLOOKMAG.COM
E
C
O
N
ctober, 2015 marked the second consecutive year for the lucrative business event, Financial Times (FT) Africa Summit held in London, UK. With standout themes including corruption, infrastructure reforms, mining, shipping and commodities, Nigeria quickly surfaced as the country at the epicentre of debates, sparking talk of what the future holds for a nation that continues to show no signs of slowing down. Since the event, there has been ample coverage of many of the above sectors as the country’s leading minds work together to demonstrate that Nigeria has all the right ingredients to overcome challenges; putting to the test several new expansion
O
M
Y
plans, infrastructure and regulatory improvements to battle corruption in order to emerge above the parapet as Africa’s biggest economy for many more years to come. One of the most significant factors that Nigeria is dependent on to facilitate its future success stems from its import and export activities, which is something that the Nigerian Ports Authority continues to make a priority heading into 2016.
Boosting intra-trade
Speaking at FT Africa, Aliko Dangote, Chief Executive Officer of Dangote Group was among the advocates for not only fighting against the country’s ongoing corruption problems, but boosting West African intra-trade by
Managing Director of Nigerian Ports Authority (NPA), Mallam Habib Abdulahi
addressing inefficiencies in Nigeria’s port infrastructure. Shortly after the event, Mallam Habib Abdulahi, Managing Director of Nigerian Ports Authority (NPA) also advocated for the provision
WWW.AFRICAOUTLOOKMAG.COM
19
F T
A F R I C A
S U M M I T
O V E R V I E W
“It is zero tolerance when it comes to corruption, and as a nation we remain resilient in the face of offenders” – Aliko Dangote, Chief Executive Officer of Dangote Group
of adequate port infrastructure by the Federal Government and the private sector to facilitate stronger export activities through the nation’s seaports; designed to change the trade orientation of the nation from import dependent to export leaders. In his opening discussion with Lionel Barber, Editor for the Financial Times, Dangote cited that costly West African intra-trade was also hindering business growth for indigenous companies, with expensive charges at West Africa’s ports that “do not allow Nigerian businesses to thrive”. “Intra-trade represents only 16 percent of the country’s trade, the rest of the country’s goods are exported,” he commented.
20
WWW.AFRICAOUTLOOKMAG.COM
Speaking at the International Seatrade and Investment Convention (ISIC) 2015 which followed this event, Mallam Habib also agreed that addressing other factors which might be extraneous to the Authority, such as corruption are also critical towards achieving enhanced export activities in the nation’s seaports. Stressing that the provision of appropriate port infrastructure was necessary to enhance trade in the economy, Malam Habib assured that it was imperative to explore new international trade frontiers. He reiterated that as globallyaccepted seaports account for more than 80 percent by volume of international trade and commerce, a Nigerian seaport must have a robust infrastructural base amongst other requirements to be competitive.
E
C
Acting on foresight
O
N
Both Dangote and Malam Habib identified that major infrastructural improvements were needed across key sectors, and with the help of public-private partnerships (PPP) the country’s visions and goals could be achieved. “PPPs are a crucial element to Nigeria’s success, and we are demonstrating our commitment to Nigeria through a $12 billion injection into the construction of an oil and petrol chemical refinery located just outside Lagos, to be completed by 2018. “We must all do what it takes to maintain growth...all of us want to be challenged,” said Dangote at FT Africa. Malam Habib said that the Authority has embarked on reinforcing its ports and harbour in all its four pilotage districts, coupled with the impending 25 year port master plan which has reached an advanced stage, which will position the organisation to properly meet the demand of all categories of port users for both imports and exports. The Authority will continue to consolidate and entrench the gains of the port reform by facilitating and synergising the activities of all port users and stakeholders, promising
O
M
Y
additional efficiencies to the nation’s seaports as well as making the system competitive, effective and user friendly on the world stage. “Sustained efforts at providing the enabling port infrastructure is impacting the overall port operational efficiency, in a good way,” Malam Habib added. In his goodwill message at the opening ceremony of ISIC, he further stated: “I feel we are the first of our kind in our nation’s maritime industry to act on foresight and this event could not have come at a better time than now as the nation strives to promote export trade, in that way changing the orientation of our nation’s seatrade which is import dependent.”
improvements in vessel waiting time and an overall increase in average vessel size calling at African ports” are just some of the challenges that Nigeria will have to manage going forward. Even then, some of these activities could breed corruption which will have a negative impact on the economy.
Remaining realistic
SeaIntel’s latest report, ‘Port Overview Africa 1H 2015’, alludes to the fact that there are many factors out of the Nigerian government’s jurisdiction that are responsible for creating a sustainable economy and port ecosytem in the country. According to the report, “improved schedule reliability is marred by infrastructure deficits in African hinterland connections, limited
Speaking at FT Africa, Dangote firmly reinforced the opinion of many African business leaders: “It is zero tolerance when it comes to corruption, and as a nation we remain resilient in the face of offenders,” he said. “But I am confident that the new government will be able to block loopholes because the President is very serious about it...And Nigeria is a place where most of the people misbehaving are well known.” Delivering perhaps the boldest takehome sentiment of the day, Dangote reinforced his belief in the Nigerian economy with the statement: “If you are a business in Africa but not in Nigeria, then you are not serious about being on the continent.” In summary, there has been an overwhelming sense of solidarity coming from Nigeria’s government and many of its business leaders during 2015; and, as we approach the end of the year, the theme of continued investment in, and commitment to, the country’s future is set to bolster its position as the leading African economy on the continent.
WWW.AFRICAOUTLOOKMAG.COM
21
S E C T O R
22
F O C U S
WWW.AFRICAOUTLOOKMAG.COM
R
E
T
A
I
L
Black Friday: A Turning Point for African Retail Two years after online retail giant, Jumia brought the most erratic of shopping ‘holidays’ to Nigeria, the benefits are clear for all to see, and being replicated by those now following suit Writer: Matthew Staff or the best part of a decade, apocalyptic scenes of crazed shoppers in the US have been etched across television screens around the world, but it would seem that this chaos is more desirable than it looks as the rest of the world continue to adopt the most frantic of ‘holidays’. Known as ‘Black Friday’, the day after Thanksgiving in America which falls on the fourth Thursday of November - has long been used by retailers as a day to drop prices, open earlier, shut later and cash in on what is generally perceived as the beginning of the Christmas shopping season. The onset of online retail took the trend one step further, with ecommerce exponents capitalising on people looking for bargains without the danger of being trampled.
All told, the day has become a staple for the retail industry, and slowly but surely, the rest of the world is following suit. Canada, the UK, Mexico, Romania, India, France, Colombia, Bolivia, Ireland, Denmark, Sweden, Panama, Germany, Austria, Switzerland and even Lebanon in the Middle East signify the globalisation of the trend, while Africa’s leading economies have joined the party over the past three years too.
A turning point
The first country on the continent to capitalise on the economic potential that Black Friday presents was Nigeria back in 2013, via online store, Jumia. As the country’s leading operator in the industry, the Company saw 2014 eclipse its initial success in 2013, and as word continues to spread, 2015 is expected to be even more frantic across its digital channel. Fatoumata Ba, Managing Director of Jumia Nigeria said: “Our projections for this Black Friday, 2015 are surpassing anything we could have hoped for only a year ago. The traction we are
WWW.AFRICAOUTLOOKMAG.COM
23
S E C T O R
F O C U S
observing on Jumia for Black Friday is unprecedented, with 100 times more traffic on the website than a year ago at the same time. Jumia not only intends to once again take Nigerian consumers by storm on 27 November, but hopes to even outshine the success of Alibaba’s incredible ‘Single Day’s Sales’ in China. Ba continued: “We have partnered very closely with more than 1,000 brands and vendors who gladly accepted our invite to make Black Friday the biggest sale event of the year and provided us with 10,000 products guaranteed to have the best prices in Nigeria. “You will be able to find the latest smartphones for the price of a blender! This year’s Black Friday will mark, we are certain of it, a turning point in the history of online retail in Nigeria. “Get ready Nigeria, it’s going to be legendary!”
Booming business community
The success of Jumia’s efforts in Nigeria certainly hasn’t gone unnoticed with many multinational brands jumping on the online bandwagon to receive their slice of Black Friday pie. This has been seen in numerous ways, and has set the scene for enhanced business activity in general via the likes of social media giant, Facebook. Partnering with Jumia Nigeria, the organisation hosted the first ‘Boost Your Business’ event in Nigeria one week prior to Black Friday; providing a platform for more than 500 Nigerian entrepreneurs to network, share best practices in marketing and learn how they can leverage the digital domain. The event served as a rallying call for attendees, who have an invaluable role to play in growing the country’s economy, while illustrating how using Facebook and Jumia can help them maximise sales on Black Friday.
24
WWW.AFRICAOUTLOOKMAG.COM
“We have partnered very closely with more than 1,000 brands and vendors who gladly accepted our invite to make Black Friday the biggest sale event of the year... “
R
E
T
“We enjoyed sharing our ideas at the workshop about how effective, easy to use mobile social media solutions can help Nigerian entrepreneurs accelerate the growth of their businesses,” said Nunu Ntshingila, Head of Facebook Africa. “SMEs are the backbone of Nigeria’s economy and encouraging entrepreneurial activity is critical to its growth and development. As of May this year, more than half the people on Facebook in Nigeria were connected to an SME.” Jérémy Doutté, Co-CEO of Jumia added at the event: “We are delighted to host an event for the booming Nigerian business community and our sellers in particular, providing them with a better understanding of how they can use Jumia and Facebook to grow their businesses exponentially. “Black Friday is also around the corner and we have been witnessing already 100 times more traction on our website than the traction we had last year for this sale. This event was thus an opportunity for us to bring our sellers together,
ed m ia r e c e iv In 2 0 1 4 , J u n 1 .5 m il li o more than st it o r s in ju is v e n li n o 50 More than 24 hours. rs t h e v is it o f o t n e c r pe h e s it e a cce ss e d t v ic e m o b il e d e through a nd id o r iO S a v ia A n d r o ted s represen t h e s e s a le ase r d e r in c r e o ld o f n e at t o 2 0 1 3 ’s compared a y. B la c k F r id
A
I
L
and coach them on how to make the most of Black Friday.”
Bring on 27 November
Jumia expects a total of more than 1.5 million online visitors on Black Friday alone, let alone the traction already received in the lead up to the day, and while its focus has been on introducing the trend to Nigeria over the past three years, the boundless nature of online shopping makes a continental knock-on effect inevitable. South Africa - perhaps unsurprisingly, when looking at the economic pecking order of the continent - was the first to follow Nigeria’s lead last year and expects a similar rise in interest to its western counterparts in 2015. “In 2014 we served more than one million customers on Black Friday. This year we have even more deals on offer, on everyday products that were carefully selected with our customers’ shopping needs in mind,” said Neil Schreuder, Marketing Director for Shoprite Checkers, who was the first retailer to bring the concept to South Africa’s shores. Retail sales in the country have grown below expectations over the past 12 months, making Black
Friday a welcome boost or get-out clause for both South Africa, and other countries in similar predicaments around the world. Even more reason then for nations yet to embrace the chaos, to do so in the coming years, as the saturation of one-day offers the lure of much more longstanding economic benefits. Nigeria’s neighbours, Ghana is certainly one such interested party as the country looks forward to its first Black Friday experience: “Africa’s disposable income and online consumption is growing at an extraordinary rate,” said Funlola Abe, Country Manager of Jumia Ghana. “In Ghana, we expect to sell more in this year’s Black Friday than in the whole of 2014. But this is just the start. We are here for the long-term and have plenty more surprises to come. “By tapping into this global shopping phenomenon, with the support of our partners, Infinix, Innjoo, Binatone, Mediatek, Tigo and Guinness, we have created a powerful event that our customers will love. “Bring on 27 November!”
WWW.AFRICAOUTLOOKMAG.COM
25
is a leading business-to-business publication promoting and showcasing the leading companies across an array of sectors on the continent. Appearing in both digital and print, the publication is aimed at boardroom members and hands-on decision makers, reaching more than 165,000 business executives. Each month we feature leading companies and business executives by profiling their operations and success stories. Covering areas of best practice, capital investments, the supply chain, innovation and continuous improvement, we aim to promote all that is good about the industry and the region, with your company taking centre stage throughout it all. Producing business profiles across the full range of sectors and every corner of the continent, Africa Outlook is the platform to promote your business success.
Read on for this month’s profiles. Emily Jarvis, Deputy Editor emily.jarvis@outlookpublishing.com
If you want to enjoy the exposure and coverage we can offer, please feel free to contact us to discuss the opportunity further. Tell us your story and we’ll tell the world. Matthew Staff, Editorial Director Tel: +44 (0) 1603 959 655 matthew.staff@outlookpublishing.com
RETAIL
CONGRESS
AFRICA
Enabling Retail Entrepreneurs to Accelerate Growth in Africa This year’s Retail Congress welcomed a new range of themes, features and formats, with more than 50 expert speakers providing insight into the continent’s burgeoning retail markets
etail Congress Africa launched in 2013 and, as the first of its kind on the continent, it brought together more than 270 of the most senior retail executives operating in the Pan-African region, as well as game-changing international leaders. In 2015 it continued its promise to provide a dynamic platform for
28
discussion on the critical trends and opportunities in retail across the continent. This year it welcomed a range of new themes, features and formats to help a vast range of attendees connect with like-minded peers and take home valuable insights to inform future strategy. Dedicated to exploring new trends and tendencies of the market, Retail Congress’ theme for 2015
WWW.AFRICAOUTLOOKMAG.COM
was defined as: ‘Driving the pillars of growth: Expansion, Innovation, Operational Excellence and Consumer Knowledge’. The Congress featured in-depth discussions on key areas for growth such as progressing into new markets, updating mobile and online capabilities, and understanding how to connect with new consumer groups who have more discretionary
R
E
T
A
I
L
income at their disposal. Taking place at the luxurious Westin Hotel in the vibrant city of Cape Town, sessions were challenging, powerful and provided actionable outcomes. Each speaker on this year’s programme shared their visions to inspire and to push for innovation. Retail Congress Africa, 2015 brought together more than 300 of the most senior members from both domestic and international retailer businesses; providing an invaluable opportunity to share ideas, be inspired by 50-plus expert speakers and network with those directing the future of the industry. As Africa represents the retail growth market of the future with unexploited opportunities for
first-movers, the Congress has long been a platform for problem solving and proactive collaboration, and attendees to this year’s event proved no different in providing revolutionary strategies to reach the new African customer. Attendance at the Congress facilitated the delivery of revolutionary strategies to reach the new African customer.
KEY SPEAKERS • Virgin Active SA • AttAfrica • Spree • Mars South Africa • McDonald’s • Pizza Hut • Massmart • Jaguar Land Rover • Groupon • KFC • Pick n Pay • L’Oreal • The Coca-Cola Company • Nando’s • The Walt Disney Company • Mondelez International
AFRICA OUTLOOK is an official media partner of Retail Congress Africa, 2015 and 2016, while also partnering with the wider World Retail Congress in the coming year. In this month’s edition, we take the chance to profile some of the speakers and attendees from the continent and sector’s premier gathering of experts, with Virgin Active SA, AttAfrica, Spree and Fruit & Veg City all sharing their comprehensive industry insights and personal success stories. Stay tuned over the next 12 months as our partnership continues in this vein, via even more features documenting the market leaders that are masterminding and dictating retail trends across Africa.
WWW.AFRICAOUTLOOKMAG.COM
29
ame V I R G I N
A C T I V E
S A
LIVE HAPPILY EVER
ACTIVE
Virgin Active is flexing its muscles in Southern Africa, boosted by an owner who considers local enrichment a priority, and an industry standing recently bolstered by its attendance at Retail Congress Africa Writer: Matthew Staff Project Manager: Callum Philp
30
he Virgin Active SA (VASA) footprint was established in 2001 when Nelson Mandela phoned Richard Branson to ask him to save thousands of jobs by taking over the liquidated Health and Racquet Club. Branson agreed and set in motion what was to become one of South Africa’s most loved and instantly recognisable brands. Virgin Active’s success has been built on a strategy that focuses on three key factors: Location; the use of precise demographics to ensure the clubs are situated in large catchments where the demand will support building large facilities. Value: large facilities allow the company to drive economies of scale which provide the opportunity to offer outstanding value for money with comprehensive multi-use facilities at competitive prices. Service; Virgin Active is a dynamic business with one of the world’s most recognisable global brands, which enables the company to attract great people who are very passionate about customer service. An effective recruitment, performance and talent management process is critical to the success of the business, with emphasis placed
WWW.AFRICAOUTLOOKMAG.COM
on proactive identification of future talent that supports the organisation’s strategic plans and championing of VASA’s values. In turn, the Company proved to be an extremely attractive business proposition.
Classic Collection
In April, 2015, CVC and Virgin Group announced that Brait had acquired a controlling interest in Virgin Active in
R
E
T
a transaction that put an enterprise value on the business of £1.3 billion. Brait’s experience in long-term global investments, as well as in Virgin Active’s biggest market, South Africa, fitted with Virgin Active’s aspirations for international growth in both emerging and developed markets, and would enable the Company to accelerate its proven strategy. Today, Virgin Active South Africa is
A
I
L
one of the success stories in the global portfolio with 122 clubs in SA, across a broad consumer offering consisting of three tiers. At the apex is the luxury Classic Collection; a portfolio of clubs designed for health and wellness enthusiasts who want year-round access to the latest fitness trends and innovations in a luxury health club environment. Members are also able
Richard Branson recently revisited his African legacy
to enjoy reciprocal access to other Classic clubs around the world, making membership a true passport to luxury. In South Africa, Virgin Active has three such clubs with two further clubs in the pipeline for 2016. All told, Virgin Active has 112 Health Clubs, on average more than 3,200 square metres metres in size, and
WWW.AFRICAOUTLOOKMAG.COM
31
V I R G I N
A C T I V E
S A
constituting the largest proportion of the estate’s offering. These double storey health clubs offer a wide range of activities under one roof, from top quality cardio equipment and specialist cycles, four to eight-lane heated pools or a more gentle style of exercise, such as yoga and Pilates. The majority of these clubs also offer a Club V facility for children and are geared towards active play and growing membership from an early age.
Gym made easy
Virgin Active’s latest innovation was launched in mid-2014. Billed as “gym made easy”, the new Virgin Active RED clubs offer South Africans in the emerging market an enticing value proposition while delivering the latest and most innovative equipment. Seven clubs were opened between mid-2014 to the end of 2015, and eight to 10 more are planned in 2016 with a similar number in the pipeline for several years thereafter. One RED club celebrated a ‘red letter’ day in November with a visit to RED Jabulani in Soweto from Sir Richard Branson. The brand CEO,
who last visited four years ago for the launch of the first Virgin Active Health Club in Soweto, said he was “thrilled to be back and to experience the infectious atmosphere and energy of the club, the staff and the members”. “This is an exciting new market for Virgin Active,” agrees Managing Director (MD), Ross Faragher-Thomas. “An opportunity for all South Africans to join a club that caters to their financial and health needs. “This doesn’t mean low cost, but rather clubs geared around a unique consumer category underpinned by the strong Virgin brand.” In 2016, Virgin Active SA will open a further eight to 10 Virgin Active RED clubs and two Classic Collection clubs; one at the iconic new precinct at the V&A Waterfront, Cape Town and one in Pretoria, Gauteng province. Faragher-Thomas sees the strong growth as a result of opportunities offered by South Africa’s diversity: “We understand that South Africa is unique and have made it our business to understand our members, what works for them and then cater to them. The existing population is transitioning
BAM ARCHITECTS
B
am Architects is a Cape Town based architectural practice providing its clients with a full spectrum of innovative and cutting-edge services across a wide geographical footprint. Founded in 1992, the practice boasts a significant depth of expertise in commercial property ranging from large corporate offices, high rise buildings, apartment blocks, industrial, healthcare, heritage and leisure facilities. Bam Architects is proud to partner with Virgin Active where it was instrumental in developing the Virgin Active Red concept and the practice continues to work closely with Virgin as it pursues its ambitious growth strategy across a range of formats. For more than 23 years Bam Architects have successfully delivered innovative solutions for a wide variety of clients throughout the subcontinent. Not only does this speak volumes about longevity, but as well as its sustained ability to perform creatively at the highest level over this period. Bam Architects are driven by a philosophy of unique solutions for each individual project, which is ultimately connected to context and function rather than per-determined stylistic ideologies. We believe that high quality architecture results from the continuity of the design process and intensive dialogue with the client, professional team, contractors and end-users. We continuously make the business case for good design through the belief that creativity shouldn’t cost more. CHRISTIAN BAM – Principal
T +27 21 4656007 E info@bamarchitects.co.za CSR is a pivotal facet of Virgin Active SA’s ongoing operations, with its Future Crew programme one of many local enrichment initiatives
32
WWW.AFRICAOUTLOOKMAG.COM
www.bamarchitects.co.za
V I R G I N
A C T I V E
S A
ORYX GROUP
O
ryx GROUP offers a vast array of specialised cleaning and hygiene services to a host of clients across diverse industries. These include - but are not limited to – the retail, hospitality, health, commercial and industrial sectors. The oryx GROUP team is confident that the group will continue to make its mark, offering value-added excellence to a broad crosssection of industries. With a track record spanning two decades, oryx GROUP Managing Director, André Vermaak is confident of the Company’s ability to deliver. T +27 11 453 1111 E andre@oryxgroup.co.za
www.oryxgroup.co.za Helping to promote a healthy, balanced lifestyle for South Africa’s youth
through LSM levels and we have ensured that our clubs are positioned to attract each market segment.”
Exportable formula
Virgin Active has had a significant impact on how South Africans view health and wellness. The clubs have become ‘third spaces’ (after the home and the office) and as such, have become destinations for much more than just getting fit. It is a place where families sign up to share a journey of wellness. The clubs have become a truly open and welcoming South African space. Every year, new products are designed and launched to not only reflect global trends but to create a unique South African offering. Notable products over the years have included The Grid, an innovative programme based on high intensity interval training designed to get people moving better, faster and more effectively using six primal
34
WWW.AFRICAOUTLOOKMAG.COM
By engaging these learners in sport and sharing knowledge, Future Crew can also identify, harness and tap into their raw talent and help create job opportunities
R
E
T
A
I
L
Our healthy relationship
ensures hygiene of the highest calibre The Oryx Group is proud of its longstanding association with the Virgin Active Clubs across Southern Africa. We are passionate about promoting a healthy environment in which to work out, and do so by offering a seamless hygiene solution. The Oryx Group offers a one-stop solution from Oryx Health & Hygiene cleaning the clubs to Design Hygiene supplying all the hygiene and cleaning related products to all the clubs. The hygiene products include the water fountains, soap dispensers, hair dryers and the list goes on. Our hands-on management style and a highlytrained workforce set us apart as a true one-stop hygiene solution.
oryxGROUP. making our MARK. doing it DIFFERENTLY.
Tel: 011 453 1111 andre@oryxgroup.co.za www.oryxgroup.co.za
Mbatha Walters & Simpson is proud to be associated with Virgin Active Mbatha Walters & Simpson Pty Ltd: An empowered consultancy with well over 80 years’ experience in the African continent, specialising in the built and construction industry. MWS offers a tailored professional service that ranges from site acquisition up to and including handing over a fit for purpose completed project. We pride ourselves for getting it right, on time and within a set budget. Our service includes amongst others Quantity Surveying, Construction Cost Management, Lenders and Donors Agency Consultancy, Client Representative and Facilities Planning and Management. Our doors are opened countrywide for your project immediate assistance.
Virgin Active clubs boast an extensive array of state-of-the-art fitness equipment
Johannesburg Tel: + 27 11 234 2696 JHB@MWSQS.CO.ZA
Cape Town Tel: +27 21 423 6200 CPT@MWSQS.CO.ZA
Durban Tel: +27 31 310 6400 DBN@MWSQS.CO.ZA
Petermaritzburg Tel: +27 33 347 0035 PMB@MWSQS.CO.ZA
WWW.AFRICAOUTLOOKMAG.COM
35
V I R G I N
A C T I V E
S A
movements. Classes combine strength, cardio and flexibility with members working out at their own pace and level. This formula has also proved highly ‘exportable’ to neighbouring African countries for several reasons. Botswana’s proximity to South Africa, the fact that the country’s economy is stable and flourishing, and the added incentive of government and business leaders being extremely welcoming to Virgin Active, were all compelling reasons for Virgin Active’s first foray into Africa after the success of its Namibian operation. Many countries now have the potential to host the Virgin Active brand in the future; particularly those with growing economies, stability and a real desire to make activeness a part of their lives. Virgin Active’s next destination will be Kenya, a development in the pipeline for 2016.
A Force for Good
From a corporate social responsibility perspective, Virgin Active has embarked on a journey termed ‘Business as a Force for Good’. As a force for good, any actions must be simultaneously environmentallysound, socially-just and economically sustainable. Business as a Force for Good is a strategy focused around creating opportunities to collaborate with as many stakeholders as possible to create synergies that impact people and the planet in a positive way, from suppliers to strategic partners and all the way through to members and staff. One of the most significant partnerships between Virgin Active’s Business as a Force for Good division and a supplier has been with Damascus Fitness Equipment, who supplies more than 180 fitness outlets in
36
WWW.AFRICAOUTLOOKMAG.COM
R
E
T
Branson’s recent visit to Soweto was in aid of celebrating the success of the Jabulani gym
South Africa. Virgin Active officially became Damascus’s enterprise development partners in 2013. Faragher-Thomas says: “We could see that our Company could play a strong role in growing and creating jobs, which is integral to our Business as a Force for Good strategy. “In turn, using a local upholsterer that maintained international standards meant we were spending less on
A
I
L
importing goods with the added benefit of a better, faster service.” Virgin Active is also the official Health Club partner of SA rugby and cricket teams, the Springboks and the Proteas, as well as the SA men’s and women’s hockey teams. The Company strongly supports up-and-coming community sports stars and para-Olympians to help these sportsmen and women excel in their sports by giving them full access to their increasingly successful health clubs.
WWW.AFRICAOUTLOOKMAG.COM
37
ame A T T A F R I C A
On Course for
$1billion
Target
ttAfrica is edging closer to its $1 billion goal as the snowball effect of early successes in the retail property investment market look set to drive future international growth, key business partnerships and sustainable recognition on a continental scale. The $1 billion relates to property assets, and signifies a concerted strategy which has been in place for the Company since its inception in 2012 under the name Atterbury Africa. Off the back of its initial achievements in Ghana and Zambia, a recent rebranding to the name AttAfrica signifies the standalone reputation that has manifested within the sector over the past four years, with the newlook business still able to leverage the experience and expertise of its three shareholders - Atterbury, Attacq and Hyprop - in the process. “It all started in 2012 off the back of the acquisition of Accra Mall,” Chief Executive Officer (CEO), Kevin Teeroovengadum recalls. “It was the first grade A mall in the city and we saw an opportunity to expand it
38
Property Investment Specialist, AttAfrica is reaching its goals by bringing the most sustainable and quality grade A retail developments to some of Africa’s biggest cities Writer: Matthew Staff Project Manager: Callum Philp
and use it as a gateway to do other developments in Ghana.” This is precisely the knock-on effect that occurred, with the purchased and revamped Mall setting the tone for Westhills Mall which opened in late 2014, Achimota set to open in October, 2015, and its Kumasi Development which will be up-and-running in early 2017. Adding the Manda Hill Centre opportunity in Lusaka, Zambia, AttAfrica is now truly an international Company and has ticked off phase one of its strategy in making its mark in the grade A retail development space; earmarking the leading facilities, in the most prosperous cities, in the most economically thriving sub-Saharan countries outside of South Africa.
Cream of the crop
Kevin Teeroovengadum, CEO, AttAfrica
WWW.AFRICAOUTLOOKMAG.COM
The hybrid approach of acquiring, investing in and constructing developments adds flexibility within what is understandably a niche space at the upper end of the market, and has already been epitomised by the variation in its projects thus far; balancing the initial acquisition of Accra Mall, and Zambian opportunity at Manda Hill with the construction
R
E
T
A
I
L
WWW.AFRICAOUTLOOKMAG.COM
39
ARE YOU KONNECTED?
Ghana Sierra Leone Cameroon Uganda South Africa
Full Turnkey Commercial Applications
Raising the level of available services...
Residential Solutions Generator Rental Long & Short Term Power Optimisation Full Repair Service Comprehensive Maintenance Packages Complete Range Of Original Spares
Toufic Haroun Ghana: +233 248 536 003
UK: +44 7774 520 514
Email: toufic@konnected.org
AFRICAN SUPPLIERS of world leading Power Solutions
A T T A F R I C A
AttAfrica is building a portfolio of retail assets in key cities on the continent
The vision from day one was to build a portfolio of retail assets, reaching $1 billion in four or five key cities and countries on the continent
Accra Mall
42
WWW.AFRICAOUTLOOKMAG.COM
and development of Westhills, Achimota and Kumasi. “The vision from day one was to build a portfolio of retail assets, reaching $1 billion in four or five key cities and countries on the continent,” Teeroovengadum explains. “With Manda Hill, the biggest mall in Lusaka, Accra Mall, Westhills, Achimota and Kumasi all either completed or under construction, we have really set up a presence in the best cities, the main catchment areas and the cream of the crop in terms of disposable income.” The primary strategy is now to take on development duties internally and is further recognition of the influence that each shareholder has too; epitomised by the experience of Atterbury Property Developments who played such a pivotal role in getting the operation off the ground in 2012. This naturally lends itself not just to the scope and finances that AttAfrica can bring to any given project, but the innovation, technological expertise,
K
onnected is an African service provider with strong roots in West Africa; striving to raise the standard of quality power generation by offering a seamless turnkey solution to power supply, installation and commissioning. Products and services Konnected supplies, installs, commissions and manages a range of power generation solutions, from 5kVa through to 6MVa. Further to this, the Company is an authorised distributor of an internationally-reputed automatic voltage regulator (AVR). Recognised as an approved supplier to international brand names such as Cummins, Perkins and Generator Logic, Konnected is able to leverage its strong pedigree of internationally-recognised products to provide a high level of service and maintenance solutions. Moreover, the Company has a qualified team of factory-trained technicians who oversee the installation process and uphold the highest product and safety standards across the board. Relationship with AttAfrica Konnected has retained a longstanding relationship with AttAfrica through work with its Atterbury division, supporting the power infrastructure at Accra Mall for many years; in addition to a number of other projects which are currently being negotiated. The turnkey contract to upgrade the Accra Mall power system is a multi-million dollar project which will involve the supply of two additional 1,250kVa generators to be integrated within the existing power arrangement. The new units will be introduced seamlessly with the help of stateof-the-art touchscreen technology. As a result of its growing reputation in the retail scene, Konnected has been awarded a further
three major contracts in Ghana, including supply and installation of standby power for the Kumasi Mall project, as well as the supply, installation and commissioning of the power systems for Achimota Mall. Outside Ghana, Konnected also operates in Sierra Leone, Uganda, Cameroon, South Africa, Burkina Faso and the Ivory Coast. Managed support services In addition to its retail power generation projects, Konnected is a major supplier to telecom service providers across Africa; recently supplying Airtel Burkina Faso, IHS Cameroon and Eaton Towers Kenya with generator systems. In line with its strategic growth plans, the Company will soon be initiating its managed support services which will bolster the Konnected brand as a provider of a total power support solution; including consumables, parts, maintenance services and rentals. Peace of mind power solutions: • Full turnkey commercial and residential applications • Short and long-term generator rental services • Power optimisation and full repair service • Comprehensive maintenance packages with a complete range of original spares • Robust relationship with industry-leading companies and suppliers Are you Konnected?
Ghana +233 553 122 177 UK +44 777 452 0514 E info@konnected.org
A T T A F R I C A
RAND MERCHANT BANK
R
and Merchant Bank (RMB), a division of FirstRand Bank Limited, is a leading African corporate and investment bank and part of one of the largest financial services groups in Africa. We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions. Our vision is to create sustainable value and bespoke solutions for our clients in Africa and beyond. Our investment banking talent and fixed income, currency and commodities experts have over the past two decades concluded many high-profile deals across multiple sectors in more than 35 African countries.
Kumasi Mall is to create more than 2,000 jobs for those local to the area
supply chains and industry reputation that comes in tow. “In Ghana for instance, three out of the four malls are Greenfield developments, and these are the ones we have developed and opened rather than the one we acquired,” Teeroovengadum continues. “Westhills, which opened last year, has also been given an award by the South African Property Owners Association taking into account that the mall is not only well designed, but is also good from an infrastructure and accessibility perspective, and from a capacity point of view as well.”
are the key facets which have helped instil the brand’s authority on the industry in Africa in such a short space of time, and are further compounded by its selling proposition of guaranteed longevity. When identifying such niche opportunities, embracing not only the prosperity of the city, but also the sheer size of the development and the amount of major tenants present in the mall, most competitors in the market look to take a leasing approach before moving on to new projects within five years. AttAfrica’s ambition of building its portfolio over a longer period Sustainable malls of time is highly appealing to the The significance of its Kumasi authorities granting such opportunities development, being situated in though, with the knowledge that Ghana’s second largest city, will almost the Company will look to develop certainly reap similar acclaim as a result with the future in mind, and with the of its wider influence on the city, its intention of retaining ownership of the people, its appeal as a retail centre and development for a matter of decades, its sustainability as a complex. rather than mere years. These skill-sets, combined with the “This is really what differentiates skill-sets of AttAfrica’s shareholders, us,” the CEO states. “We look to build
44
WWW.AFRICAOUTLOOKMAG.COM
We structure the most appropriate financing solutions to meet the needs of our clients, whether for project finance, on-balance sheet lending or a combination thereof. We value mutually rewarding relationships, question existing models, and develop innovative solutions to deliver on our business philosophy and brand promise: Traditional values. Innovative ideas. As the corporate and investment banking arm of FirstRand Bank Limited (which is wholly-owned by FirstRand Limited) RMB has representative offices and branches in the UK, India, China, and the Middle East, and has access to a retail bank network in 25 African countries. Listed on the Johannesburg Stock Exchange (JSE) and Namibian Stock Exchange (NSX), FirstRand Limited is the largest listed financial services group (by market capitalisation) in Africa. The group is differentiated by its ownermanager culture and operates through a four separately-branded franchises: RMB; First National Bank (FNB); WesBank; and Ashburton Investments.
T +27 11 282 8000
www.rmb.co.za
A T T A F R I C A
sustainable malls so we can build an ownership portfolio for the next 15-20 years and beyond. “Because of this, we are willing to spend more money up front, or to take on a Greenfield project, knowing that we want these developments to be durable and state-of-the-art for more than just three or four years.”
International criteria
We would always rather be choosy and have one great mall in a city, rather than five smaller ones...
Manda Hill Mall
46
WWW.AFRICAOUTLOOKMAG.COM
The main benefit of this approach may be even more evident in the second half of AttAfrica’s strive for $1 billion, however, with the existing malls under construction or completed now paving the way for the Company’s international growth. Kenya and Nigeria are two natural options across Nairobi, Abuja and Lagos, with these cities likely to be attracted not only to the aforementioned longevity, but also to the reputation that has been built as a consequence of early successes and its shareholders’ market presence. Teeroovengadum says: “Firstly, when we go into these countries, they know that everything we do from a design and infrastructure standpoint is quality. Africa is a relatively small place, so word spreads, and we’ve already seen this with Nigeria identifying Westhills Mall in neighbouring Ghana as the best mall development in West Africa. “This makes it a lot easier for us to go into Lagos or Abuja and make our pitch to the authorities with them knowing we will be there to build sustainable products and to be there for the long-term. “Secondly, it’s good for the retailers as well because a lot of them are looking to expand internationally, with malls inevitably being a sweet spot. And we will meet their international criteria.” AttAfrica has consequently already been courted by international retailers, building important relationships in the process and gearing the Company up perfectly for its next stage of
R
E
T
A
I
L
10
95
75
25 5 0
Westhills Mall is the largest single-phase modern shopping mall in Ghana
evolution. This will be compounded by a similarly sustainable commitment to retaining a local focus in each new country entered, once again ensuring that its adherence to the long-term comes through loud and clear when the next major city’s decision-makers decide to edge AttAfrica closer to its $1 billion target. “We would always rather be choosy and have one great mall in a city, rather than five smaller ones, so to meet these expectations it’s very important to be localised and build local talent, to design with the future in mind, and to make sure we produce something which investors and retailers will like in the long-term,” Teeroovengadum concludes. “In threefive years’ time, we envisage that we will have achieved and exceeded that $1 billion of gross assets, we’ll be in at least four countries and we will have done so by building strong teams of local talent.”
WWW.AFRICAOUTLOOKMAG.COM
47
ame S P R E E
ince launching in April, 2013, online retailer, Spree, has successfully established its name and brand within both the fashion industry and amongst major retailers. Initially launched as a womenswear retailer, and leveraging Media24’s target audiences and partnerships with publications to take its ecommerce offering to market, the brand and product offering has grown and expanded over the past few years to include a full menswear offering, children’s and baby clothes as well as well-known international brands. The launch of its new mobile application marks a further commitment to the seamless and convenient online shopping experience. As part of South Africa’s largest traditional media Company with more than a century of publishing experience, Spree has been able to take it’s understanding of customer demands and translate these into bringing the best brands and fashion apparel to consumers; displayed through what Head of Customer Service and Business Intelligence, Nic Robertson, calls “beautiful look-books and editorial styled photo shoots”, that create a “digital shoppable magazine offering”. “Spree was a welcome addition to the already diverse Media24 portfolio, comprising more than 60 magazines and 90 newspapers, offering a mixture of news and lifestyle stories. In recent years, the Group has diversified into the digital media and services space, and Spree is one of these divisions which embraces the Group strategy to reshape its contentcentric offering so as to remain relevant and useful to consumers and clients,” Robertson recalls. Marking Media24’s first foray into the
48
ecommerce space, Spree was initially launched to directly support the popular Afrikaans women’s lifestyle publication, Sarie magazine. “The success of the Sarie Winkel and understanding the role that magazinestyle content plays in creating demand to purchase, formed the catalyst for creating Spree, South Africa’s first content-driven ecommerce site,” he further highlights. After launching its curated women’s range in the first year, Spree recorded growth of 500 percent, followed by more than 200 percent growth in 2014, which demonstrated the Group’s comprehensive understanding of its target audience; taking the best aspects from the magazine and pairing similarities to bring an online glossy magazine experience to consumers that was both familiar yet recognisably new. “We found ourselves riding the coattails to keep up with South African consumer demand and subsequently increased our product and brand ranges,” he says. Since its launch two and a half years ago, Spree has become South Africa’s most fashionable online store.
Convenience
Writer: Emily Jarvis Project Manager: Callum Philp
Unlo Gro
Within Spree’s majority target demographic of internet users between the ages of 20 and 44, Robertson estimates that the Company currently has access to between three and four million consumers; but with both smartphone ownership and the emerging middleclass touted to rapidly increase, the demand for ecommerce is set to grow. “20 to 25 million people own a smartphone in South Africa, and as the price of data decreases and the appeal for our offering grows in line
WWW.AFRICAOUTLOOKMAG.COM
Spree strives to be the fashion ecommerce destination of choice among South African men and women by offering a convenient and seamless digital shopping experience with easy transition between the website, mobile site and app platforms
R
E
T
A
I
L
ocking owth T H R O U G H
E C O M M E R C E WWW.AFRICAOUTLOOKMAG.COM
49
S P R E E
with larger consumer spends, mobile internet usage is set to increase. We’re therefore very focused on ensuring our platform is ready for this change by making it easy to use and adopt the right branding to catch the consumer’s eye. “The online fashion industry is really starting to scratch the surface of the market potential, so it is vital that we remain ahead of the competition,” he explains. To do this, Spree is supporting a number of local fashion designers through its Spree Boutique, while also working with larger local and international brands who can utilise the ecommerce platform as a means to expand and provide market accessibility. He adds: “For instance, we were given rights to retailer, Mango online in South Africa, fulfilling fast delivery times through our usual logistics partners. The partnership allows Mango to strengthen their presence in South Africa while building awareness and reach to the whole country.”
Brand investment
As a technology-based Company who is present in the fashion vertical, Spree will continue to dedicate a significant amount of its continuous investments into reinforcing its platform backbone so that can be scaled further to cater for the exponential growth the Company is hoping to continue.
50
Investing in platform reinforcements
On the brand awareness side, we have been focused on transactional marketing that we can measure, by using digital channels such as social media - namely Facebook, Snapchat and Twitter
Robertson adds: “On the brand awareness side, we have been focusing on transactional marketing that we can measure, by using digital channels such as social media - namely Facebook, Instagram and Twitter - to interact with the millennial demographic; which currently makes up 75 percent of our audience. We believe the future of our business, in terms of those who will typically engage with the latest fashion will be within this demographic, so that is where our focus is.” Further increasing engagement in this market, Spree launched a new mobile app in November, 2015. Within the Media24 Group, mobile applications are exceptionally important and subsequently heavily promoted. “The Spree fashion app offers a seamless shopping experience for customers and we are very excited about its launch. We are at the tipping point of growth for ecommerce in Africa, but many macro-economic factors are at play that need to be addressed for us to truly unlock growth.
R
E
T
A
“The convenience and ease of shopping online with various payment and delivery methods will open consumers up to new markets. Right now, we are focused on consolidating our platform, making sure that it is easy to use and has a good variety of brands,” Robertson emphasises. He concludes: “In South Africa, ecommerce is to exponentially grow by 25-30 percent, but internationally this figure has historically been much higher. As a reflection of this, we strive to target 60 percent growth over the next two-three years and will continue to leverage the Media24 consumer base to tap into growth, becoming the brand destination of choice.”
I
L
SUPPLIER AND MANUFACTURER OF READYMADE GARMENTS. Jeans, Chinos, Cargo Shorts, Jackets, Denim Shirts, T-shirts, Skirts & related products.
Your True Skin Denim www.gnpwear.biz +00 230 435 74 58 gnpwear@gmail.com
The millennial generation has become a key, target demographic
WWW.AFRICAOUTLOOKMAG.COM
51
ame F R U I T
&
V E G
C I T Y
Freshness and Value at a Premium Fruit & Veg City has earmarked the DRC, Zambia, Kenya, Ghana and Nigeria as its next expansion routes as it continues to introduce a fresh approach to food retail to an increasingly large audience Writer: Matthew Staff Project Manager: Callum Philp ruit & Veg City has spent more than two decades bringing new levels of freshness to South Africa and the surrounding sub-Saharan region, and has maintained its strong entrepreneurial flair in broadening its presence further in 2015. Incepted in 1993 by brothers Brian and Mike Coppin, the business remains a family one to this day, facilitating the kind of
52
flexibility that has been required for a Company striving to continuously update and innovate its model in order to keep ahead of grocery trends and retail opportunities. This is further driven through the attendance of continentallysignificant events such as the African Retail Congress which helps keep the business firmly ahead of the industry curve, but any knew knowledge is always applied back to its core values established from day one. “Since the beginning it has always been a family business, with emphasis placed on good old family values such as wholesomeness, trust, honesty and integrity,” the Group states on its website. “The brothers’ vision was to create a store that would resemble a marketplace of old, where farmers brought their fresh
WWW.AFRICAOUTLOOKMAG.COM
produce from their farms to be sold to the public. This was how their first store in Kenilworth, Cape Town was run, and this is how every Fruit & Veg City store that has opened since is also run.” Nearly 23 years later, and 130 stores throughout Southern Africa - as well as Australia - have followed this philosophy, with the refusal to rest
R
E
T
on its laurels evident each year via a series of new store openings, business expansions or international ventures. In 2015 alone, 15 new stores have been introduced, taking its total to 130 in South Africa; complemented by 40 franchised stores, 200 convenience stores and 30 international outlets outside of South Africa. All of which strongly symbolise the ethos on which
A
I
L
130 stores
In 2015 alone, 15 new stores have been introduced, taking its total to 130 in South Africa
the initial business model was built by the two brothers all those years ago. The Company continues: “The dedication to freshness at an affordable price has always remained one of the cornerstones on which Fruit & Veg City is built. “Today there are more than 100 Fruit & Veg City stores throughout Southern Africa, and even as far afield
WWW.AFRICAOUTLOOKMAG.COM
53
F R U I T
&
V E G
C I T Y
as Australia. Yet, it remains a family business with brothers Brian and Mike still running the day-to-day operations of the Company. “Their vision is still visible in every Fruit & Veg City store, where freshness and value are placed at a premium.”
Theatre of food
Not only has Fruit & Veg City expanded in literal terms via its ever-expanding outlet portfolio, but it has done so under an equally diversified range of brands in order to fully capitalise on the acclaim that its core service offering was receiving in the region. The first of this four-pronged evolution was seen through its Food Lovers Market, as the Company explains: “The next step in the evolution of Fruit & Veg City was to create a modern eatery where food aficionados could indulge in a range of gourmet foods. “It was this vision that finally gave
The next step in the evolution of Fruit & Veg City was to create a modern eatery where food aficionados could indulge in a range of gourmet foods
The Fruit & Veg City team crossed the globe in search of the hottest international trends in food
54
WWW.AFRICAOUTLOOKMAG.COM
birth to the Food Lover’s Market, a theatre of food that was designed specifically with connoisseurs in mind. The Fruit & Veg City team crossed the globe in search of the hottest international trends in food.” Visiting places as far afield as the US, Europe, Australia and East Asia, Fruit & Veg City ultimately brought back a stylish and modern food emporium incorporating the freshest tastes from around the globe for the benefit of the most refined pallets in South Africa. It is this balance of meeting customer expectations, while also bringing them something a little bit different that continues to make the Company such an appealing prospect, while also endearing itself to high profile business partners in the process; as was seen through the formulation of its Fresh Stop subsidiary which came about via a strategic alignment with Chevron. “These trendy stores, located at selected Caltex service stations,
F R U I T
&
V E G
C I T Y
“Over the years we have established strong relations with farmers who have vast experience in growing, harvesting, storing and packaging fresh produce for exporting. Our buyers oversee operation at the pack houses, closely monitoring that the fruit is packed according to specifications, and cooled at the correct temperature. “FVC international also has its own logistics company in partnership with two of South Africa’s largest fruit growers, which ensures that orders reach their destination in the shortest possible time, in perfect conditions.”
A synergy of values
By establishing a one-stop offering at selected Caltex service stations, Fruit & Veg City expanded its consumer reach
feature a variety of innovative departments and products that focuses on the ever-increasing, time conscious demands of consumers,” the business notes. “True to its name, Freshstop at Caltex is a one-stop shop for fruit and vegetables, with an extensive fresh produce section that is supplied and stocked by the Fruit & Veg City distribution network.” A 50 percent stake in Diamond’s Discount Liquor in July, 2012 resulted in a similarly successful joint venture under the new Market Liquors brand a retailer and wholesaler of both liquor and soft drinks - while the Company’s vision to be the best import and export Company in Southern Africa was driven by the introduction of FVC International, which has subsequently led the business as far afield as Australia. Fruit & Veg City adds: “Our vision is to...offer a complete hands-on facility, and ensure that our products are grown, picked and packed in perfect conditions.
56
WWW.AFRICAOUTLOOKMAG.COM
We felt very strongly that we wanted to offer a range of Waitrose products in our stores. We saw a synergy with the brand as their core retail values of offering high-quality food products and innovation in retail are so closely aligned to ours
Constantly looking for potential gaps in the market for new, lucrative opportunities on which to capitalise, the aforementioned franchising and wholesaler routes have proved especially prominent for Fruit & Veg City in recent years as a way to expand its influence in a quick, yet relatively risk-free manner. Arguably the most significant of all these examples, however, was its 2012 decision to expand its grocery range to include international food products from British retailer, Waitrose. Strategically introduced as a way to once again differentiate the business in an increasingly-competitive food retail industry, the South African operator took on more than 200 of Waitrose’s food products in order to not only meet consumer demand, but to once again unveil something a little different to the ordinary offering. “We felt very strongly that we wanted to offer a range of Waitrose products in our stores. We saw a synergy with the brand as their core retail values of offering high-quality food products and innovation in retail are so closely aligned to ours,” said Chief Executive, Brian Coppin at the time. “The retailer expanded its range from fresh food to include non-food grocery items in 2012 and plans to
R
E
T
A
I
L
MANUFACTURERS MANUFACTURERS OF: OF: POLYPROPYLENE POLYPROPYLENE FILM FILM TUBING TUBING CENTREFOLD CENTREFOLD TUBING TUBING SHEETING SHEETING BAGS BAGS GLUE-STRIP GLUE-STRIP BAGS BAGS NEW EXTENDER-FRESH BAGS BAGS NEW EXTENDER-FRESH NEW HOT NEEDLE PERFORATED NEW HOT NEEDLE PERFORATED BAGS BAGS AND AND SHEETING SHEETING CONTACT CONTACT DAVID DAVID HANDLEY HANDLEY ON: ON: Telephone: 082 559 6229 Telephone: 082 559 6229 Email: Email: jhprange@iafrica.com jhprange@iafrica.com Website: Website: www.rangeplastics.wordpress.com www.rangeplastics.wordpress.com
THE DRINK OF THE FUTURE HAS ARRIVED Clover and Futurelife partnered together for the launch of Smart Drink; On-the-Go smart snack with added nutrients.
Smart Drink comes in a unique easy to grip 250ml bottle and will be available in 3 flavours: Vanilla Caramel ∞ Strawberry & Banana ∞ Milky Chocolate
Smart Drink is designed for everyone who lives their lives on-the-go. It is a delicious smart snack formulated with Clover milk and the nutritional benefits of Futurelife functional foods. It is an ideal in-between snack for the whole family with 50 nutrients. It is a source of protein and calcium and high in energy and 12 vitamins. www.smartdrink.co.za
WWW.AFRICAOUTLOOKMAG.COM
57
F R U I T
&
V E G
C I T Y
convert all Fruit & Veg City outlets to its premium brand, Food Lover’s Market,” added a business report analyst. “In some locations Food Lover’s Market competes with Woolworths Food stand-alone stores, which have stocked fresh produce, groceries and non-food products for more than a decade. “Food Lover’s Market will be stocking a range of Waitrose’s ambient and frozen products, including frozen ready meals, tarts, cakes and ice cream, as well as rice, pastas, coffee and canned foods.” While this slide away from the traditional Fruit & Veg staple seemed drastic at the time, Coppin assured that this was a diversification and expansion rather than a transformation, and this has subsequently set the tone for the Company’s more recent strategic acquisitions, partnerships and expansions; with a more wellrounded consumer offering to rely on in entering new domains.
A lovely business model
Looking forward, and this bedrock of unrivalled reputation in the region, coupled with the same entrepreneurial, family-driven ambition that has propelled the Company for the past two decades, will undoubtedly see Fruit & Veg City become a household name on an even vaster scale in the future, with countries across Central, East and West Africa all in the crosshairs. Kenya, Ghana and Nigeria are very much areas of interest moving into 2016, building upon a very recent announcement of its decision to set up a wholesale centre in Kasumbalesa, the border town between the DRC and Zambia. The Company’s Head of African Operations, Frans van der Colff explained in a recent interview: “I have stood at that border and [watched] trucks arrive and stand there, and they are emptied; they sell
58
WWW.AFRICAOUTLOOKMAG.COM
It is about establishing a base in a country first and then growing from there... It doesn’t all happen overnight...
everything on the truck before they even cross the border. “And people don’t come through the border post, they just run through the bush on the side, buy… and then simply run back and sell on the other side.” Described as a “phenomenally busy” border crossing, this decision is yet another example of the kind of out-ofthe-box thinking Fruit & Veg City has become so renowned for, and the plan may come into fruition just as quickly as the decision was made, while the retailer consolidates its Zambian operations. “Almost everything in the DRC is brought in. So the thinking is one sets up a more wholesale type operation – like a Fruit & Veg City ‘Makro’ (South African wholesaler) – where people can buy in bulk whatever they want
R
E
T
A
I
L PREMIER AD UK final
10/11/15
5:59 PM
Page 1
THE SPECIALISTS IN RETAIL PACKAGING SOLUTIONS Manufacturers of Quality Flexible Plastic Packaging for the Retail Industry.
• Manufacturers of HDPE plain and printed carrier bags. • SPECIALISING in RECYCLED printed carriers.
SALES OFFICE AND FACTORY: 334 Toop Street, Despatch, Pretoria, South Africa Tel: +27 (0) 12 803 7908 • Fax: +27 (0)12 803-7429 Email: info@premierplastics.co.za Website: www.premierplastics.co.za
PROUDLY ASSOCIATED WITH
for their smaller shops on the other side,” Van der Colff continued. “I think it is a lovely business model, and in that area specifically it will work very well.” Sector analysts anticipate that this latest move will be another subtle tweak on the established Fruit & Veg City model; opening itself up to a large array of local retailers as opposed to opening one or two of its own Food Lover’s Market outlets in each new country as it establishes its supply chain networks. However, with the African footprint vast, farming partnerships across the continent firmly established and the vertical integration capabilities to fall back on, the Company is seemingly on the verge of unveiling yet another string to its tantalising bow. “It is about establishing a base in a country first and then growing from there,” Van der Colff concluded. “It doesn’t all happen overnight... [but] we’ve got the space, the ground, the fertile soil and there is water in most instances. It is just literally about supplying the seeds.”
dedicated to delivery efficiency
Road freight of perishable goods, general & industrial consignments, within the RSA & SADC REGION Consolidated loads from RSA to Zimbabwe & Zambia Warehousing and distribution Global door to door ocean freight SOUTH AFRICA JNB: Tel: +27 (11) 907 8808 Fax: +27 (11) 869 3323 email: transit@transitco.co.za CPT: Tel: +27 (21) 981 4779 email: allan@transitco.co.za ZAMBIA Cell: 00260 966 860703 email: karen.russell@realsk.co.zm ZIMBABWE Tel: 0027 828 177700 Cell: 00263 78320 8424 email: transitfanuel@zol.co.zw
WWW.AFRICAOUTLOOKMAG.COM
59
ame S P A R
L O W V E L D
D I S T R I B U T I O N
KEEPING AN EYE ON
60
WWW.AFRICAOUTLOOKMAG.COM
R
E
T
A
I
L
SPAR Lowveld Distribution continues to expand its footprint and diversify its service offering, as it continues to leverage one of Southern Africa’s strongest brand names Writer: : Matthew Staff Project Manager: Callum Philp
PAR Lowveld Distribution has enjoyed yet another 12 months of successful progression and expansion as it once again leveraged the wider SPAR brand’s reputation to maintain its Southern African momentum. Overseeing logistics services for 29 SPAR stores, as well as 18 smaller SUPERSPARS, 27 Tops Liquor stores, 11 Savemore outlets and two pharmacies in the region in 2014, the Company’s continuous improvement strategy comprised the ambition to introduce an additional eight new stores by the end of 2015; a drive which is well on the way to completion across South Africa, Swaziland and Mozambique. As one of six main distributors for SPAR South Africa, the Lowveld operation may be the smallest, but still carries the weight of a brand name which is among one of the most prestigious in the retail sector in the
WWW.AFRICAOUTLOOKMAG.COM
61
S P A R
L O W V E L D
D I S T R I B U T I O N
ASPEN GROUP
T
he Aspen Group is committed to sustaining life and promoting healthcare through increasing access to its high quality, effective, affordable medicines and products. Aspen has an extensive global presence and is represented in 47 countries. The Group has 26 manufacturing facilities at 18 sites on 6 continents and approximately 10,000 employees.
T +27 11 239 2000
www.aspenpharma.com
We spend a great deal of time strategically looking at the best locations and places where the SPAR brand can flourish, and of course sourcing suitable store owners
wider region. As a consequence, the necessity to continually develop and seek new value propositions for its clients is of paramount importance. Subsequently, the operation comprises not only the expected logistics services, but also a full marketing function, advertising and promotional activities, retail operations, management consultancy and store development assistance. The result is an all-encompassing portfolio of services to not only aid the main SPAR brand, but also a range of
62
WWW.AFRICAOUTLOOKMAG.COM
8
Stores earmarked for development by the end of 2016 Rob De Vos, Divisional Managing Director for SPAR Lowveld
R
E
T
A
I
L
independent small, medium and large retailers in a position to either tackle the convenience markets or compete with the major chains, respectively.
Learning curve
Of course, the core business aims of SPAR Lowveld Distribution revolve around product procurement, warehousing and distribution services, but the focus is very much balanced across this staple offering, and the work it consistently carries out alongside independent operators; instilling heightened levels of product offering, customer service and community involvement in each case. In recent years, the primary goal of the Company has been to not only hone this model, but to carefully and strategically replicate it on a widened footprint; namely into Mozambique. Rob De Vos, Divisional Managing Director for SPAR Lowveld explained: “When it comes to bringing the SPAR
brand to new regions, we do not just walk into a new area and set up shop. “We spend a great deal of time strategically looking at the best locations and places where the SPAR brand can flourish, and of course
sourcing suitable store owners.” While this process got underway in earnest back in 2009, this steady migration continues to this day, with eight stores earmarked for the country by the end of 2016.
WWW.AFRICAOUTLOOKMAG.COM
63
S P A R
L O W V E L D
D I S T R I B U T I O N
Overcoming a series of social and logistical challenges along the way, SPAR Lowveld’s development in the country has mirrored the infrastructural development of Mozambique itself since the turn of the decade, but the Company has placed much of its emphasis on creating a strong local influence in its operations to ensure the transition was - and continues to be - as smooth as possible. “It has been a big learning curve for us, but when we look at what we have achieved after moving into the country, it was worth the early setbacks,” De Vos said. “Like any good brand, we soon won over the locals with our competitive prices and stores offering many high quality goods, services, and a superior shopping experience. “All of our store owners in Mozambique are natives to the country and we think this is very important to the success we have seen. With native owners and
Earmarking significant expansion alongside new value-add offerings
64
Native store owners give SPAR a degree of understanding of what products and requirements are needed locally
WWW.AFRICAOUTLOOKMAG.COM
R
E
T
A
I
L
We also see major advances in transportation with the application of scheduling and routing software and telemetrics. This results in considerable advances in service level and reduction in running costs and CO2 emissions
managers, we already have a degree of understanding of what products and requirements are needed. “Being able to comply with laws, legislation, procedures and different systems was made that much smoother by tapping into the local expertise we had in terms of our business owners and their staff.” staff,” he added.
Powerful, well-known and loved
As one of the most trusted brands in Southern Africa, the ability to replicate models and successes across countries is more expectation than
hope, but SPAR still looks to remain entrepreneurial and agile in the market, utilising its distribution arms’ experience and scope to facilitate new business propositions. In recent years, this has incorporated its new Pharmacy division, applying its efficiency and convenience attributes to a relevant sector in need of innovation in the region. Although there are only two outlets at present, De Vos acknowledges the role that SPAR and SPAR Distribution can play in the sector and has already earmarked significant expansion. “With new additions to stores like
the Pharmacy at SPAR being very well received and used by the consumers, I think it is only a matter of time before we double or even triple the number of SPAR pharmacy stores in the Lowveld region,” he affirmed. Alongside new market offerings, the Company also continues to enhance and expand the capabilities of existing services, addressing advanced technologies in making payment options more refined, while also improving its own supply chain efficiencies. De Vos continued: “The introduction of warehouse management software, RF scanning and a more streamlined process has contributed hugely to improved performance at the Lowveld warehouse. “We also see major advances in transportation with the application of scheduling and routing software and telemetrics. This results in considerable advances in service level and reduction in running costs and CO2 emissions. “The investment has allowed for significant growth in the volume delivered to SPAR stores. This was achieved by increasing the capacity of the existing distribution centres and constructing new perishable facilities.” Ultimately, this internal optimisation has a knock-on effect on the ongoing influence it has externally, preserving the reputation of a Group which De Vos describes as one of the most “powerful, well-known and loved brands” in Southern Africa.
WWW.AFRICAOUTLOOKMAG.COM
65
ame B R O L L
P R O P E R T Y
G R O U P
SHAPING the Future of Property Services In its 40th year, Broll Property Group is targeting a significant milestone that will see the business become fully internationalised across the African continent Writer: Emily Jarvis Project Manager: Nick Norris
66
roudly celebrating its 40th anniversary, Broll Property Group has been strengthening every facet of its business to further penetrate the sub-Saharan Africa property market; embracing an ethos of local employment and addressing current market trends to enhance its international status. The globally reputed and leading property Group has developed from a
WWW.AFRICAOUTLOOKMAG.COM
single service property management line into a multi-disciplinary, awardwinning Company that today, services the investor and occupier markets across sub-Saharan Africa. “Reaching the 40-year milestone is of huge importance to us,” says Group Chief Executive Officer (CEO), Malcolm Horne. “It goes back to the old saying that life begins at 40. We’ve grown the business with a solid platform, having developed it in such a way that we are now a single point of contact across
C
O
N
S
T
R
U
C
T
I
O
N
Located in Meadowdale, Germiston in Gauteng, the recently redeveloped Meadowdale Mall is jointly-owned by Vukile Property Fund and the Moolman Group
the continent for a range of property services. “As a forward-looking business, we believe in Africa and its future despite the doom and gloom we often hear about. We are old and mature enough to have a solid foundation and strong roots on the continent, and young enough to start enjoying what we have achieved while working on our next milestones,” he adds.
Shaping the Group’s future
When South Africa became a democratic nation in 1994, Broll saw an opportunity to venture into Africa and opened its first office outside the country in Namibia in 2003. In order to secure long-term business on the continent, the Group signed an affiliation deal with CBRE the following year. Through this affiliation, Broll is able to access global market knowledge and
$2
billion
Broll FM has $2 billion under management, comprising 12 million square metres of managed facilities
best practice to the benefits of its clients. To diversify its income streams, the Group added other service lines and opened offices in West Africa, starting with Nigeria in 2004, swiftly followed by Ghana in 2006. More recently, the Group looked east for its latest expansion, opening an office in Kenya in 2013, with the Mozambique office having opened this year. By the end of this financial year, Broll is to report record client numbers and growth across the board, Horne summarises: “Our ever-widening geographies and depth of service delivery across sub-Saharan Africa has allowed the business to continue to absorb growth and expand our client base, allowing us to grow just as fast as demand. “By the end of 2015, Broll will have offices in 12 countries; including South Africa, Namibia, Malawi, Zambia, Mozambique, Mauritius, Ivory Coast, Uganda, Cameroon, Ghana, Kenya, Nigeria and operations in more than 17 sub-Saharan African countries. “Our next milestone is to see the business being fully internationalised, so we encourage investors to watch the space!”
WWW.AFRICAOUTLOOKMAG.COM
67
B R O L L
P R O P E R T Y
G R O U P
Broll Facilities Management Delivers Award-Winning Efficiency
Rowland Gurnell, COO
FM Awards GOLD for Facilities Excellence in the 2015 PMR Golden Arrow Award BRONZE for Facilities Excellence in the 2014 PMR Golden Arrow Award GOLD for Facilities Excellence in the 2013 PMR Golden Arrow Award
IN THE past year, Broll Facilities Management (FM) has seen a rapid increase in its business, growing by more than 200 percent in line with the increase in clients opening offices in various countries across the continent. Chief Operating Officer (COO) for Broll FM, Rowland Gurnell puts this down to the Group’s ability to “consistently deliver excellent, awardwinning service levels to clients in an environment where we learn all the time and continue to improve our service offering”. Today, Broll FM is looking at ways to further consolidate and refine its offering across its current operations in the corporate, retail and tertiary sectors with the integration of the facilities and property management silos within the wider Group. “Our affiliation with world-leading real estate and investment advisor, CBRE has also contributed to our growth with the addition of a number of global clients,” Gurnell adds. Working across these three key sectors and striving for continuous improvement demonstrates that Broll FM understands that each client has different needs. “This is why we integrate a client’s FM models so that they are flexible and can be customised to fit their individual needs and requirements,” he further notes.
TAILOR-MADE SOLUTIONS
B
y closely working with the client and their portfolio, Broll FM is able to offer a tailor-made solution where a full FM service is not economically viable. Gurnell explains: “Whether clients are in a space of 100 square metres or 30,000 square metres, Broll FM has been a proven costsaver; leveraging our extensive contractor database to negotiate the best rates and offer these contractors increased volumes of work as well as a platform to share resources.” Moreover, Broll FM’s drive to further improve efficiencies and cater for the aforementioned rapid growth has led the Group to implement some of the best technologies to support its service offering; including an effective reporting tool that tracks every call made by the Company, and a supplier interface portal offering full transparency from call tracking to invoicing. Broll FM currently operates in South Africa, Swaziland, Lesotho, Namibia, Zambia, Zimbabwe, Mozambique, Kenya, Rwanda, Uganda, Tanzania, Cameroon, Nigeria, Ghana and Ivory Coast; and in Egypt and Morocco through CBRE. “To satisfy the growing demand for facilities management, in the next few months, Broll FM will be opening offices in Congo, Gabon, Senegal, GuineaBissau, Liberia, Benin, Southern Sudan and Ethiopia,” Gurnell summarises.
68
WWW.AFRICAOUTLOOKMAG.COM
DELTA AFRICA • The first multi-listed property fund to offer international property investors direct access to immediate high growth opportunities on the African continent outside of South Africa • Primary listings on the main board of the Johannesburg Stock Exchange (JSE: DLA) as well as the Stock Exchange of Mauritius (SEM: DEL. N000) • Exposure to select high-growth economies on the African continent including Mauritius, Morocco, Mozambique, Zambia, Ghana and Kenya • Core portfolio consists of landmark commercial offices and dominant retail centres anchored by blue chip international counterparties • Investment decisions based on - Tenant quality, tenure and sustainability thereof - Quality and location of asset - Yield • In November 2015 announced forming of a strategic relationship with JSE listed The Pivotal Fund Limited to create property powerhouse on the continent • Enlarged fund to be named Mara Delta Property Holdings Limited (Mara Delta) • Mara Delta will be a total return fund with a good income producing portfolio currently valued at USD 458 million, alongside a solid development component • Mara Delta will be uniquely positioned with economies of scale to consolidate a number of opportunities on the continent • The larger company will have an additional strong anchor shareholder in Pivotal, access to a considerable acquisition and development pipeline through Abland Africa Limited and other promoters as well as the trackrecord and expertise to draw on local knowledge and experience
Delta Africa is a pan African property income fund focusing on African real estate assets (excluding South Africa), underpinned by US Dollar denominated long-term leases with high quality tenants delivering strong sustainable income.
Our properties include:
MOZAMBIQUE
MOROCCO
MOZAMBIQUE
anadarko building
anfa place
kpmg/hollard building
MOZAMBIQUE
ZAMBIA
MAURITIUS
vodacom building
mukuba mall
barclays house 4th Floor, Raffles Tower 19 Cybercity, Ebene, Mauritius
workin g tog eth er • c rea t i n g g row t h
www.deltainternationalproperty.com
B R O L L
P R O P E R T Y
G R O U P
The Growth of Broll’s Real Estate Occupier Services Writer: Jess Cleland, Head of Strategy and Consulting: Occupier Services
Jess Cleland
12
Years of ISO quality management standards
WHILE MANY multinational corporates already have a successful track record spanning decades in Africa, many more are still in the process of developing their operations across the continent. Africa delivers the potential for a strong and loyal consumer base from a largely under-serviced, yet rapidly urbanising population, now supported by a generally less restrictive regulatory environment. Requirements from a real estate solution for corporate occupiers, therefore, depend on the growth phase of the individual company and vary enormously across the spectrum from an initial supporting functional role to an integrated platform for business enhancement. Real estate services for occupiers revolve around managing the accommodation value chain from start to finish. Elements include managing property
ATLAS AIR CONDITIONING
A
tlas Air Conditioning is well equipped to provide South African business with first world service and maintenance, whilst also enhancing first world commerce. Aiming to expand our business through excelling in the service and maintenance industries, we provide guaranteed quality workmanship and Service Level Agreements (SLA’s) and form real, tangible relationships with our customers, to afford you a more personal one-on-one communication structure.
T +27 11 794 8101/1477 E info@atlasair.co.za
www.atlasair.co.za
transactions, lease administration and reporting, finance and data functions, estates management and the strategic integration of real estate with business strategy. The common cornerstone across all stages of the business cycle is the need for a fit-for-purpose real estate portfolio that provides value for money.
African markets
Eyethu Orange Farm Mall (see further images on page 72)
70
WWW.AFRICAOUTLOOKMAG.COM
Across Africa, supply is evolving to meet those needs. Real estate is truly becoming a creator of change and is in fact changing the face of entire markets and cities. Within this context, corporate real estate services are increasingly seen not only as a facilitator to business and economy, but as a potential source of competitive advantage for corporates in terms of attracting and retaining customers and employees alike. Major themes across many occupier portfolios currently tend to revolve
C
O
N
S
T
R
U
C
T
I
O
N
Air conditioning contractors, sales and services Individually tailored service and maintenance contracts - Specialising in Airedale close control units Server room/data centre specialist - Controls upgrade - Chiller plants - New installations
a breath of fresh air...
Tel: +27 (011) 794 8101/1477
Fax: +27 (011) 794 4347
around improving levels of space utilisation, portfolio optimisation and structuring portfolios to unlock inherent value and ensuring flexibility - all with a driven focus on reduction of total occupancy costs and delivering financial benefits in line with business objectives.
Tailor-made occupier portfolio
Meeting this cross-section of real estate needs is achieved through strategies crafted to optimise the portfolio to manage internal and external uncertainties with enough flexibility to adapt to changes in the operating environment. Sources of such change may include fluctuations in market supply and demand, the competitive landscape, the company’s own business model and an evolving and dynamic customer base. The Broll delivery model of occupier services through regional hubs combined with central oversight
Email: info@atlasair.co.za
Broll’s platform is based on wellproven processes and technologies using global best practice which has been tailored to the African markets
atlasair.co.za
provides on-the-ground professionals with local skills and knowhow, integrated with centralised process development and quality controls of the central team. The ripple effect of such global service standards delivered incountry reaches across markets and industries. The entire professional market benefits from upliftment and interconnectivity, whereas such skill sets were traditionally imported, often on a short-term basis. Global brands have an expectation of world-class service from their service partners, no matter which country of operation. Broll’s platform is based on well-proven processes and technologies using global best practice which has been tailored to the African markets. Our clients are therefore able to benefit from leading edge occupier services, confident in the experience that Broll brings.
WWW.AFRICAOUTLOOKMAG.COM
71
B R O L L
P R O P E R T Y
G R O U P
The 27,000m2 Eyethu Orange Farm Mall is located in Orange Farm, mid-way between Johannesburg and Vereeniging. It is owned by Flanagan & Gerard Investments (Pty) Ltd, Stretford Land Developments (Pty) Ltd, Dipula Income Fund and the Orange Farm Community
72
WWW.AFRICAOUTLOOKMAG.COM
C
O
N
S
T
R
U
C
T
I
O
N
The Vodacom Building is owned by Delta Africa and is located in Maputo, Mozambique
Anadarko Building is located in the most prestigious upcoming business node and capital city Maputo, Mozambique. This six-storey prime grade building was the first asset acquired by Delta Africa and is anchored by Anadarko Petroleum 30 Jellicoe is located in Rosebank, Johannesburg and is owned by Investec Property Fund
Located in Meadowdale, Germiston in Gauteng, the recently redeveloped Meadowdale Mall is jointly-owned by Vukile Property Fund and the Moolman Group
Investec Property Fund-owned property, BMW Boksburg, is located at the corner of North Rand Roads & Pond Roads in Bardene, Boksburg North in Gauteng
WWW.AFRICAOUTLOOKMAG.COM
73
B R O L L
P R O P E R T Y
G R O U P
A Cutting-Edge Solution to Real Estate Management BROLL INVESTOR Services provides a comprehensive, holistic and value-add service to its clients across sub-Saharan Africa and the Middle East; comprising real estate investment asset management, property management, specialised retail leasing, feasibility and sustainability analysis and assessments, and specialised research. Standing out from the competition in subSaharan Africa requires the implementation of relevant business and market intelligence and the provision of a value-add service, along with strategic long-term relationships with both tenants and management partners. Heidi Rix, Managing Director of Broll Investor Services further explains: “We do not take client partnerships for granted. The value of such relationships and our commitment to adding value as a multiple of our cost has been borne out in the growth of our managed portfolio; both by way of client portfolio growth and continued faith in our management service as well as newly acquired management clients and contracts. “We thank our clients, staff and support services for their continued support and we look forward to many more mutually beneficial partnership years.”
Delivering the right solution
Heidi Rix, Managing Director of Broll Investor Services
$12
billion
Broll has more than $12 billion assets under management
Strategic Involvement
Investment Management
Asset Management
Property Management
Facility Management
Operational Involvement
By following an experience and research-led approach to fulfilment of the real estate hierarchy of needs, Broll Investor Services is able to add value to clients on both an operational and strategic level
74
WWW.AFRICAOUTLOOKMAG.COM
According to Rix, efficient asset management is the key to success, achieved by way of aligning the interests of the property investor, the tenants and the manager; utilising a blended recipe of skill, experience, knowledge, relationships and proactive operational efficiency including establishing proper checks and balances in the property operation process, and integrating the latest technology into internal processes. In order to achieve this, Broll utilises its market-leading Broll online management system, a fully integrated property and financial management system offering valuable business intelligence analytics and assessment capabilities. “Delivering value-add is about constantly asking the ‘why’ while successfully implementing the ‘how’ via the development of a strategic plan to reach the client’s objectives in the most efficient way possible,” says Rix. She concludes: “Ultimately, effective asset and property management is about identifying and finding synergy between the client’s objectives and what the market, the property and the tenant’s can deliver in terms of
RETAIL LEASING PORTFOLIO > Nine major projects in South Africa with a combined 425,650m2 portfolio; including Mall of Africa and Fourways Mall extension > 18 projects in West Africa with a combined 320,000m2 portfolio > Five projects in East Africa with a combined 131,000m2 portfolio > 11 projects in the SADC region with a portfolio close-to 200,000m2
C
O
N
S
T
R
U
C
T
I
O
N
building maintenance garden maintenance cleaning services Providing you with a full range of building maintenance and repair services, as well as a cleaning and garden maintenance offering.
www.integrico.co.za T: 011 764 2712 E: info@integrico.co.za
meeting those objectives. Broll strives to move from diagnostic analytics - ‘what happened?’ - to prescriptive analytics – ‘how can we make it happen?’ – and recognises that real estate is not static and therefore our management approach needs to remain proactive and dynamic in the face of opportunity in Africa.”
LESCORP
At Mndhavazi we believe that every meal should be an occasion: an opportunity to stop and savour both the food and the moment, whilst nourishing body, mind and soul… Because we see your staff and customers as our guests, we created “delicious experiences” that they can enjoy - capturing colours, textures, flavours and aromas that nurture and energise their senses.
www. mndhavazi.co.za T: 011 764 2712 E: info@mndhavazi.co.za
INTEGRICO
MHDHAVAZI
A
A
• Our flexibility and responsiveness mean that we can offer a full spectrum service on a day-to-day basis.
Our business has grown into a full-spectrum corporate catering and eventing company and today, Mndhavazi’s services includes the full management of staff canteens, hosting large or intimate functions and events, and everything in between. The company’s range of specially crafted goods adds another layer of foodie magic to these services – transforming each into an occasion that can be savoured and enjoyed.
t Integrico, we pride ourselves on our unique understanding of our clients’ premises and what they require from us as their supply partner, ensuring that we exceed their expectations.
• Our staff are trained to view client office space as their own – assessing sites and generating incident reports on a regular basis. • Green options within our service offering mean clients are encouraged to reduce their impact on the environment and improve their triple bottom-line. Bigen Africa: Located at 1617 Allan Cormack Street at The Innovation Hub in Pretoria, Gauteng. This A-grade office property is owned by Investec Property Fund
t Mndhavazi, we understand that dining is a very personal and intimate experience. Whether you are eating alone or with others, the combination of colours, aromas and flavours should tantalise and delight.
T +27 11 764 2712 E info@intergrico.co.za
T +27 11 764 2712 E info@mndhavazi.co.za
www.integrico.co.za
www.mndhavazi.co.za
WWW.AFRICAOUTLOOKMAG.COM
75
B R O L L
P R O P E R T Y
G R O U P
outstanding relevant services. “We see training as the tool that creates knowledgeable and multiskilled staff who can work in teams or independently without constant supervision. “Moreover, this also improves employee performance and confidence, helping the Group maintain its strong position in the industry,” he further highlights.
Value-add
Malcolm Horne, Group Chief Executive Officer
Broll Property Academy: Leading Property Excellence ESTABLISHED IN 2002, the Broll Property Academy was the first of its kind in Africa to provide property-related courses aimed at upskilling employees. Supported and accredited by the SETA (Sector Education and Training Authority), with training provided in conjunction with the University of Pretoria, Broll Academy has many useful facets that can be tailored to suit the business. “The Academy has a Recognition of Prior Learning; it takes staff with years of experience (and those without experience) and through a structured process, benchmarks that on-the-job practical knowledge against formal learning standards, in this way, recognising the knowledge and skills gained through informal training,” comments Horne. With a varying level of education felt across the continent, Broll Property Group holds training close to its heart, with local employees and black economic empowerment (BEE) initiatives deemed the most valuable assets as the key to delivering
76
WWW.AFRICAOUTLOOKMAG.COM
2,851 To date, 2851 Broll staff have been trained through the academy, 694 of which were from previously disadvantaged backgrounds
Training, regardless of an individual’s level, is dependent on the needs of the service line and career development of individuals. Broll Academy’s all-encompassing course range includes; Introduction to Property Management, Certificate in Lease Negotiation, Introduction to Facilities Management and Advanced Facilities Management. Additional ad-hoc courses, such as legal practices in the workplace, personal assistant training, the Occupational Health & Safety Act, as well as a variety of computer related and business writing courses are also in place to address other core competencies. “The Academy remains the best investment we have and this will continue to be the case. Some of our employees have even been promoted as a result of training and we see this as a real value-add to our business,” the CEO explains. He concludes: “As we continue to strive for excellence, and, being the leading real estate services company servicing the needs of the investor and occupier markets, we will unveil a new concept where we will choose pockets of excellence on service lines to further unlock employee potential and performance benchmarked against international standards. Through our affiliation with renowned international real estate firm, CBRE, we pride ourselves on having international knowledge, which helps us service the needs of our clients.”
C
O
N
S
T
R
U
C
T
I
O
N
Fully Internationalised Status WITH ALL the right components in place to succeed across property management, Broll Property Group is utilising its vast industry knowledge to identify exactly where to expand, and where to consolidate in an admirable and efficient strategy that will see the Group maintain its leading position on the continent. Aligning with the Group’s focus on education, Broll is to continue investing in its people and scout for passionate and dedicated new talent that can shape its long-term future as it targets the opening of new offices in Botswana and Zimbabwe. Moreover, Horne is set to announce a platform to grow new business entrants in the property sector as service providers; an initiative which will be piloted in South Africa before being rolled out into sub-Saharan Africa. He details: “In light of the recent success of the occupier services and specialised retail offering service lines, we will continue to look at ways of expanding our service lines when the opportunities arise. Our IT platform, Broll Online, must remain robust, so we plan to invest heavily in refining this and many other internal processes.” Horne concludes: “In 2016, Broll is aiming to achieve fully internationalised status, with our clients spreading word of our services and locales across the continent; clients are our best sales people. “We are extremely proud of our 40-year history and track record. If we can deepen this track record and add even better value to our clients’ businesses going forward, then we are on the right track to achieve great things in the next 40 years.”
METRO CLEANING SERVICES Metro Cleaning Services has accumulated a wealth of experience in the industry for the past 20 years. We are a national cleaning company and our success lies in the flexibility and dedication in meeting the clients’needs. Our professionalism is indicated by long-term relationships with both major valued clients and staff. Metro Cleaning Services rapid growth is due to its commitment to providing the highest quality services. These include:
Cleaning > Hygiene > Pest Control > ‘One-off Cleaning’ • Corporate Offices • Factories • Universities • Schools / Colleges • Hospitals • Apartment Blocks • Financial Institutions • Retail Stores • Malls
• Stripping and Sealing of Hard Floors • Pre and Post Occupation Cleaning • Carpet and Upholstery Cleaning • Window Cleaning • Ablution Deep Cleaning • Cold Storage Rooms
Metro Cleaning Services
Tel: 0861 445522 / 021 686 1395 www.metrosanitarysolutions.co.za
WWW.AFRICAOUTLOOKMAG.COM
77
ame C S I
C O N S T R U C T I O N
G R O U P
High Standards of
Workmanship Thinking global in terms of quality and local in terms of staff expertise are two elements that make CSI Group stand out from the competition in Tanzania and the surrounding region Writer: Emily Jarvis • Project Manager: Stuart Parker
78
WWW.AFRICAOUTLOOKMAG.COM
C
O
N
S
T
R
SI Construction Group has had the privilege of working on a number of significant construction projects across Tanzania; applying its local knowledge and proactive approach to business to provide the highest standards of workmanship. Since forming 28 years ago as a subsidiary of the wider Coastal Steel Industries Group, CSI Group today comprises four divisions that collaborate together where necessary to deliver holistic construction, electrical, engineering and installation solutions. Although the youngest Company in the Group, CSI Electrical has quickly caught up with the pace of the other three divisions, demonstrating its commitment to quality and safety management systems by not only becoming the first ISO 9001 accredited Tanzanian electrical contractor, but
U
C
T
I
O
N
also obtaining an OSHAS 18001 accreditation along the way. Chris Glasson, Managing Director of CSI Electrical explains: “From its commencement in 2007 with an annual turnover of US$250,000, CSI Electrical now has a direct workforce of 200 persons, an indirect workforce of 70 persons and expects to achieve an annual turnover in excess of US$10Million in 2016.” Modelling itself on international best practices across sustainability and health & safety, CSI Group has led the market in delivering high quality and cost-competitive installations, with all divisions continuing to develop a reputation as the indigenous contractor of choice in Tanzania. “Leveraging our team of locally qualified professionals, we are able to provide quality services to our clients that rival international standards, both of which help to give us a
competitive edge,” says Zuh Versi, Project Engineer and shareholder at CSI Construction. Knitted together by crossshareholding of Directors across the four divisions, CSI has a diverse portfolio of construction business interests in East Africa, spanning from the aviation and mining industries, to infrastructure and fit-outs; known for representing Tanzanian dealerships for Hilti, CTM tiles, Kingspan, Schindler Lifts and SDMO Generators.
Healthy pipeline
Heading into 2016, CSI Construction has a number of projects on the cards which it is expected to tender across the commercial, power and civil engineering sectors; including six substations in the areas around Dar Es Salaam, a new Toyota showroom, the development of an office block near Bahari Beach and security upgrades for an embassy.
Zuh Versi, Project Engineer and Director, CSI Construction
WWW.AFRICAOUTLOOKMAG.COM
79
C S I
C O N S T R U C T I O N
15
CSI Electrical has assisted in the development of more than 15 power substations in Tanzania
G R O U P
Versi says: “Given the size of our portfolio in Tanzania, we are actively seeking to expand into the surrounding East African region; namely entering Rwanda and Uganda, and strengthening our presence in Mozambique. The main reason for this expansion is to capture different parts of the market, and seek out clients who are focused on quality construction, in addition to expanding our industry into a lucrative market.” Similarly, from Glasson’s perspective, CSI Electrical has a secure order book for the next 18 months, with ongoing projects in not just Tanzania, but small construction opportunities in Ghana, Nigeria, Rwanda and Uganda as well. Moreover, since moving into Mozambique in 2012, following requests from existing clients operating in these markets, CSI Group will continue to adopt this strategy to move with the customer in order to explore further opportunities for expansion. Glasson highlights: “We are currently working on two 220kV substations in Dodoma and Iringa, Dar es Salaam Airport Terminal 3, electrical reinforcement at the six aforementioned substations, Kilimanjaro substation expansion and much more. “CSI Electrical has two specific business development targets in 2016: to continue to maintain a steady flow of projects while expanding the valueadd service delivery of the business; these objectives are reciprocated across the Group. We are extremely excited about the future development opportunities for us - given the investments in infrastructure being made by the government and the opening of Tanzania to international investors - especially across the mining, oil & gas and power sectors.”
TEMBO TILES
A
s a leading manufacturer of tiles, blocks and pavers, Tembo Tiles is continuing to set the bar in the cement industry with Tembo Concrete, a great new ready mix concrete batching plant and delivery service. Located in the Mikocheni Industrial area of Dar Es Salaam, we are the solution to your construction hardships with proven mix designs and state of the art concrete pumping service. Whether you’re a contractor, a housing developer or a homeowner, you can count on Tembo Tiles and Tembo Concrete to provide great service and competitive pricing to meet all your specifications. T +255 656 559 999
www.tembo.co.tz
DAR-ES-SALAAM GLASS WORKS
D
ar-es-Salaam Glass Works is responsible for the glazing of the largest and iconic projects in East Africa. It has always been a priority to stay ahead by investing in the latest technologies and using the highest quality materials and an experienced technical team. Dar es Salaam Glass Works has a wide range of high quality and long lasting materials for all types of windows, doors, structural glazing, curtain walls, skylights, ceilings, interior glasses, showers, balustrades and other associated products. T +255 22 218 1419 E sales@dsmglass.co.tz
www.dsmglass.co.tz Kinyerezi Power Station
80
WWW.AFRICAOUTLOOKMAG.COM
C
O
N
S
T
R
U
C
T
I
O
N
WWW.AFRICAOUTLOOKMAG.COM
81
C S I
C O N S T R U C T I O N
G R O U P
Part of the team
Firmly rooted in East Africa, CSI’s broad local knowledge and emphasis on local partnerships has proved extremely beneficial to achieving regional success. Valuing each individual for their contribution on a project or contract, the Group has many longterm employees, the majority of which are Tanzanians. In 2015, the Electrical division selected two individuals from a disadvantaged background to participate in a three year electrical apprenticeship scheme being run by VETA in conjunction with a German Development Organisation. “These two individuals have been provided with a full competitive salary, full support and work experience supervised by senior members of the CSI Electrical team. As a Group, we North Mara Gold Mine
82
WWW.AFRICAOUTLOOKMAG.COM
As a Group, we remain engaged in identifying skills shortages in the construction sector and develop strategies for bridging this gap
remain engaged in identifying skills shortages in the construction sector and develop strategies for bridging this gap,” Glasson notes. Similarly, the Group believes in assisting its local subcontractors to develop and improve their industry knowledge. Versi explains: “We always support our subcontractors and suppliers and it is our core belief to embrace competition, rather than shy away from it.
C
O
N
S
T
R
U
C
T
I
O
N
NOTABLE PROJECTS • CIVIL AND MECHANICAL WORKS FOR THE KINYEREZI I - 150MW POWER STATION, WHICH WILL PROVIDE UP TO 20 PERCENT OF THE TANZANIA’S POWER REQUIREMENTS • CONSTRUCTION OF A MUD PLANT FOR BG GROUP AND REFURBISHMENT OF THE MTWARA HARBOUR WHARF • ENTIRE WELFARE AND INFRASTRUCTURE FOR NEW VILLAGE CAMP AT A NEW GOLD MINE IN BUZWAGI, PROVIDING HOUSING FOR UP TO 137 EXPAT STAFF AND MANAGERS AND 256 JUNIOR MEMBERS
“Our philosophy is to help and promote our associates as much as possible. When we find a good supplier with good standards and quality, and the drive to improve, we will promote them and in return this is reciprocated.” With a focus to reach as many people as possible, CSI Group is also very active in the corporate social responsibility space, providing support to various institutions across healthcare, sport, youth and disability.
70
CSI Construction has fit-out more than 70 bank branches in Tanzania
subsidiaries of CSI into one entity, forming a consolidated, multi-discipline business that can prosper in the East Africa region and beyond. Glasson concludes: “Exploring opportunities in other African markets forms a natural part of the growth of the business. Having successfully expanded the business in Tanzania and having a proven delivery model, we are confident that the Group can succeed in other African markets.”
Multi-discipline business
Going forward, CSI Group will continue to focus on continuous improvement of its management teams to maintain international standards of delivery in terms of quality, safety and environmental processes. “These factors will continue to set CSI apart from the competition,” says Versi. “Ultimately, our focus is on ensuring the highest standards of delivery in the projects we undertake.” Once the Group has been sufficiently strengthened, the Company is looking to amalgamate the four separate
Zanzibar substation
WWW.AFRICAOUTLOOKMAG.COM
83
ame M c C O R M I C K
P R O P E R T Y
McCormick Property Development is adjusting to industry trends while remaining true to its pioneering roots as a property developer focused on addressing the retail needs in South Africa’s rural areas Writer: Emily Jarvis Project Manager: Stuart Parker
84
WWW.AFRICAOUTLOOKMAG.COM
D E V E L O P M E N T
C
O
N
S
T
R
U
C
T
I
O
N
Pioneering RURAL RETAIL
Development cCormick Property Development (MPD) has been refining its business model over the past 33 years in order to respond to changing industry trends across African retail; most recently responding to the increasing demand for upmarket retail malls and mixed-use developments from the growing middle-class in South Africa. Influenced by his father and Company Founder, John, Managing Director Jason McCormick has largely remained focused on addressing the retail needs of the previously disadvantaged and rural areas of South African through a unique strategy that remains largely unchanged since 1983. He recalls: “My father developed a model that allowed us to break up the main construction contract into smaller, more manageable ones, designed as a way to better manage our full turnkey service property development offering, with us project managing every aspect; from architects to financing, facilities management to asset management. This has been a vital contributor to achieving a stronger return on investment, as well as ensuring long-term, sustainable growth of assets.� From humble beginnings, this
family-owned business emerged as the first of its kind to focus solely on the provision of retail facilities in the former homelands of South Africa, where black residents previously had to travel hours to access formal retail facilities. “My father was somewhat of a visionary in that he saw opportunity where no-one else saw it at the time. Bringing retail services to the poorest of the poor was a huge challenge, but hard work and sheer perseverance eventually allowed retailers to see the opportunity that existed in these areas and they started to follow him into these previously disadvantaged areas. With retail facilities now on their doorstep, disposable income that was previously being spent on transportation to the main urban centres was now being channelled into the goods and services at his developments in the homelands. The result is that we have some of the
WWW.AFRICAOUTLOOKMAG.COM
85
M c C O R M I C K
P R O P E R T Y
D E V E L O P M E N T
QUANTICOST
Q
uanticost’s philosophy is to ensure that every client’s needs are served by committed, experienced, well trained and enthusiastic individuals. All tasks undertaken are aimed at reducing the financial risk of each development and adding value to every project. Communication is the essence of being in control and “on top of the project”. “Companies that survive longest are ones that work out what they uniquely can give not just growth or money but excellence, respect for others and ability to make people happy. Some call these a soul.” - Charles Handy
T +27 (12) 348 5400/0 E general@quanticostpta.co.za
www.quanticost.co.za Located in Pretoria West, Capital Mall will consist of 76,500m of retail space and is due to open in 2018 2
Mall of Mozambique is a 63,000m2 retail development, due to open in 2017 in Matola, Mozambique
86
strongest trading densities for many of the South African national retail chains now housed within our portfolio,” McCormick notes. At this time, the Company faced a number of economic challenges dictated by a lack of basic infrastructure in these areas, McCormick adds: “The early business model was therefore focused on putting in place the relevant water and sanitation infrastructure in order for our developments to be fully sustainable, which required significant upfront spending. From a leasing aspect, we would also make sure that our shops were reserved for local businesses to encourage not only local content, but local economic empowerment as well.” With a portfolio of more than 58 completed developments in South Africa under its belt, McCormick Property Development is now working across the full retail spectrum in rural and urban areas, taking
WWW.AFRICAOUTLOOKMAG.COM
Due to open in 2018, the Mall of Zimbabwe has already secured proposed tenants including Pick n Pay, Edgars and KFC
C
O
N
S
T
R
U
C
T
I
O
N
C O R P O R AT E
PROFILE
C O R P O R AT E
PROFILE
Quanticost offers a comprehensive quantity surveying and construction cost consultancy service, all in accordance with the South African Quantity Surveying Act and conforming to the high ethical standards associated with the profession.
Quantity Surveying
Construction cost advice
Building cost estimates Preparation of tender documentation Adjudication and / or negotiation of tenders Controlling interim payments Managing variations and scope changes Final account negotiations and settlements Tenant installations
Feasibility studies Dispute resolutions Contractual claims advice Reinstatement and replacement valuations Value engineering
Tel: +27 (12) 348 5400/1 general@quanticostpta.co.za www.quanticost.co.za
Excellence is not an exception, it is a prevailing attitude. Charles R. Swindoll
Suite 9 Daventry Forum 15 Daventry Street Lynnwood Manor Pretoria
Excellence is not an exception, it is a prevailing attitude. Charles R. Swindoll
Edition 3 • January 2015
Edition 3 • January 2015
As competition in the market continued to grow throughout the 90s and 00s, we had to come up with a strategy to maintain our market-leading status
P O Box 75307 Lynnwood Ridge 0040
inspiration from retail hubs across Europe and other internationallyrenowned hotspots, and bringing the best elements to the rapidly emerging markets within South Africa, Mozambique, Zimbabwe, Swaziland and Angola.
Generating returns
Leveraging its reputation as one of the first property development Companies in the rural retail construction market in South Africa, MPD currently owns and manages a portfolio of more than half a million square metres of retail space. “As competition in the market continued to grow throughout the 90s and 2000s, we had to come up with a strategy to maintain our marketleading status,” says McCormick. “Overproliferation of shopping centres in South African cities and the more urban areas is steadily resulting in the competitors moving into the rural space. In light of this, we formed a division designed to
WWW.AFRICAOUTLOOKMAG.COM
87
M c C O R M I C K
P R O P E R T Y
specifically strengthen our pipeline by securing land and establishing business relationships. So far, this has been successful and has kept us on our toes, securing a further 40 shopping mall developments in our healthy pipeline,” he further explains. Furthermore, making a concerted effort to create an infrastructure backbone for each project has been another crucial differentiator for MPD, demonstrating that the Company is capable of managing huge upfront costs in energy, water and waste prior to laying the first brick. McCormick emphasises: “We are in no way risk adverse, and throughout the Company’s history this has always been the case. For instance, we are now embracing South Africa’s emphasis on, and funding for, renewable energy projects and implementing this to find ways to become even more sustainable.
Jason McCormick, Managing Director This is not just applicable for our new projects, but we are looking at ways to roll out renewable energy in our existing portfolio as well; mitigating the need to rely on municipalities who are themselves under pressure to provide a steady supply of electricity and water to the country’s rural areas.” MPD’s completed retail projects form the epicentre of South Africa’s rural developments. This perception
88
D E V E L O P M E N T
Tsakane Mall in Springs, South Africa has anchor tenants including Shoprite, Spar and Mr Price
has prompted the Company to make sure its older shopping centres are continually upgraded in line with the growth of the surrounding areas. “As a consequence of the increasing prominence that retail has in these emerging middle-class areas, there has been an influx in the need for housing and other amenities. Therefore, we have been working closely with the local communities to design the appropriate mixed-use developments; adding hospitals, entertainment, apartments and other key necessities to further strengthen the main nexus in these areas,” McCormick says.
Staff incentive awards at the 2014 head office Christmas Party
WWW.AFRICAOUTLOOKMAG.COM
Education-centric
The Company’s continued focus on community development extends throughout its value chain, including its attitude to employment. Boasting a workforce that is almost entirely South African is something which McCormick has continued to emphasise within the business and it also represents a historically important milestone. McCormick explains: “In 1985, my father set up the country’s first ever B-BBEE scheme in Giyani. This became a model for the government scheme formed in more recent times. He always focused on individual development with an extensive bursary programme for schooling less privileged individuals, often spending his own money on sending employees to university to pursue further education. “I am keen to maintain our educationcentric focus, ensuring the ongoing training and skills development of all members of our team.” Similarly, MPD uses this same model when sourcing partners, engaging with the best local professionals to bolster
C
O
N
S
T
R
local credibility within its supply chain. “Above all, we create wealth and employment by developing not only real estate, but entire communities in the process. “In line with our internal continuous improvement strategy, we hold an annual conference each year where our country managers and suppliers can network and share information, which has proved an incredibly useful tool,” he adds.
U
C
T
I
O
N
iQS Quantity Surveyors is a group of dedicated professionals committed to efficient Cost Management and Project Delivery. By combining an innovative approach with over 25 years of experience we ensure optimal project performance.
Geographic expansion
Staying one step ahead of the competition and continually researching and investing in the latest trends, MPD has been able to create developments of the right quality and price point for clients. Now targeting expansion into East Africa, the Company is already bringing its unique value proposition to Mozambique, Swaziland and Zimbabwe, with future plans for Uganda and beyond. “Due to the region’s strong agricultural industry and its geographic positioning near the Indian Ocean, we hope to gain interest from the growing number of Middle East investors who are increasingly present in countries along the eastern seaboard,” says McCormick. He concludes: “As a communityfocused Company with fixed interests in high-growth emerging markets, we have been able to successfully maximise both the shopper experience and returns for the retailer. My father would be proud to learn that South Africa now has the sixth biggest mall presence in the world, comprising a strong portfolio of centres he developed and ones that now remain under our ownership and management. “Going forward, our core focus will remain in addressing the huge retail need in rural areas, enhancing the availability of a platform for local businesses in their own neighbourhoods through affordable leasing and high quality construction.”
iQS in Africa
Contact us to assist you in projects ranging from leisure to retail. www.qsint.co.za
Civil engineering & contractors in South Africa
Proud to be working alongside McCormick Physical Address: 5 Quarry Road, Hilton, 3245 Postal Address: Postnet Suite H10 Private Bag X9118, Pietermaritzburg, 3200 Tel: +2733 343 1630 Fax:+2733 343 1608 Email: info@ddtcivils.co.za www.ddtcivils.co.za
WWW.AFRICAOUTLOOKMAG.COM
89
ame C O L L I N S
P R O P E R T Y
G R O U P
An Opportunistic Approach to Property With a historically strong presence on the African continent, Collins Property Group has continued to maintain its reputation with the backing of a growing project portfolio of commercial property developments Writer: Emily Jarvis Project Manager: Stuart Parker
90
WWW.AFRICAOUTLOOKMAG.COM
C
O
N
S
T
R
U
C
T
I
O
N
ith a history spanning four generations over a period of more than 100 years of operation, Collins Property Group is leveraging its reputation for commercial property development to reach new strategic milestones across a wider African market. Since entering a Memorandum of Understanding with Tradehold (TDH) for the bulk of its African property interests outside South Africa last year, Collins Property has adopted an opportunistic outlook for the future growth of the business in sub-Saharan Africa. “Although the majority of our business over the past 10 years has been in the development of distribution and retail centres throughout Southern Africa, the Group has recently moved into residential development projects, as well as increasing its activities across the continent; in a bid to make sure we can provide an end-to-end service for our clients,� says Murray Collins, Managing Director of Collins Property Group.
Murray Collins, Managing Director
Alphonse Villa
WWW.AFRICAOUTLOOKMAG.COM
91
C O L L I N S
P R O P E R T Y
G R O U P
NEDBANK CORPORATE AND INVESTMENT BANKING
N
edbank Corporate and Investment Banking (NCIB) is the wholesale banking arm of the Nedbank Group, one of the four largest banking groups in South Africa. Nedbank is a JSE Top 40 company with ordinary shares listed on the Johannesburg stock exchange since 1969 and on the Namibian stock exchange since 2007. NCIB is based at the Group’s head office in Johannesburg, with large operational centres in Durban, Cape Town, Angola, Kenya, London, and Toronto. We have a shareholding of 20% in Ecobank, offering 2,000 branches in 39 countries. NCIB offers transactional banking solutions, financing and advisory services and commercial property finance. Investment banking stretches from debt advisory and long-term project financing to equity trading and research.
Germiston
Led by a dynamic and hands-on approach, the Company’s total property solution approach was identified as a way to become more competitive, making decisions much faster to ultimately deliver a high quality product within an improved time frame. “We have built up a significant project portfolio that demonstrates our core competencies and ability to handle a project from the planning phase right through to asset management. Moreover, the absence of hierarchy within our management structure means we’re able to make decisions and deliver on our promises much faster than ever before,” he adds.
Strategic partnerships
As one of the first property developers to move into Africa’s retail and distribution sectors during the early 2000s, Collins Property Group has formed many longstanding relationships with the likes of
92
WWW.AFRICAOUTLOOKMAG.COM
We believe our partners should play an active role in our vision to be seen as a local business; it’s key that everyone in our supply chain is totally committed to this core value
successful retailers including Shoprite and Pepkor over the years, along with other national tenants across Namibia, Botswana, Seychelles, Zambia and South Africa. Collins highlights: “A serious belief of ours when it comes to doing business, both locally and internationally, is to choose the right partners. We certainly favour local partnerships as these individuals and organisations know what’s happening on the ground and we can work together to source the best deals. We believe our partners should play an active role in our vision to be seen as a local business; it’s key that everyone in our supply chain is totally committed to this core value.” Working with likeminded organisations such as Tradehold Africa has been a critical part of the Group’s success. This particular partnership has helped Collins Property Group to expand its Namibian portfolio, creating a “good deal flow for retail centre projects in this burgeoning sector”.
C
O
N
S
T
R
U
C
T
I
O
N
14540
SUCCESSFUL JOURNEYS COME FROM ENDURING PARTNERSHIPS. Nedbank Corporate and Investment Banking is a proud partner to the Collins Group, one of South Africa’s foremost property development and investment groups. We value our long-standing relationship with them and being able to help them spread their wings over Africa. To partner with the bank that understands your property finance needs contact Anand Joseph at anandj@nedbank.co.za. nedbank.co.za
Nedbank Corporate and Investment Banking is a division of Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
14540 NB Collins CIB press rev.indd 1
2015/11/25 4:27 PM
Upcoming projects
In Namibia, Collins Property has a fantastic partnership with Safland Property Group, based in Windhoek and in collaboration, have some exciting projects in the pipeline including:
Germiston
He further details: “As mentioned, our philosophy is to go into areas where there is both a buoyant market and in countries where we believe we can make a difference. Namibia is a very aspirational country and there is great opportunity to create retail environments where every desire of the shopper can be met.”
Local loyalty
Collins Property has a significant interest in fostering healthy internal relationships with its staff, offering quality training and skills development to those who join its local team. “As a family-owned business operating in the international property market, we hire top quality staff with
• Dunes Mall, Walvis Bay: Shopping mall (32,000m2), the second largest in Namibia, with anchor tenants’ Pick ‘n’ Pay and Spar • The Steps, Windhoek: Comprising offices and a City Lodge • Oasis Mall, Oshakati: An upmarket shopping mall with convenient parking at the popular C45 from Angola • Gobabis Shopping Mall, Gobabis: An upgrade and extension • There are also plans to develop another mall in Rundu, Angola, based on the retail demand both companies have identified in the country
WWW.AFRICAOUTLOOKMAG.COM
93
C O L L I N S
P R O P E R T Y
G R O U P
Completed projects PEP Warehouse, Fibres Road, Durban. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000m2 PEP Warehouse, Baltex Road, Durban. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000m2 Unilever Warehouse, Mkondeni, Pietermaritzburg. . . . . . . . . . . . 45,000m2 Masstores Distribution Centre, Gosforth Park, Gauteng . 70,000m2 Illovo Sugar Distribution Centre, Willowton, Pietermaritzburg 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,000m Toll Distribution Centre, Pomona, Gauteng
Sasol Gas, Gosforth Park, Gauteng. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000m2
It’s no secret that doing business in Africa presents its challenges, however, with our track record and previous experience in Africa, we believe we will grow our business by 20 percent over the next three years
the necessary skills and commitment to the Collins Property brand. This feeds into our business expansion strategy too,” says Collins. Headed up by experienced executives, the Company’s inhouse team facilitates the optimal development of large and medium-
94
scale projects for major clients. “As we are an opportunistic Company, we will do deals as and when they make sense in Africa. It’s no secret that doing business in Africa presents its challenges, however, with our track record and previous experience in Africa, we believe we will grow our
WWW.AFRICAOUTLOOKMAG.COM
Toll Distribution Centre, Pomona, Gauteng. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000m2
business by 20 percent over the next three years,” he further explains. Further bolstering its presence on the continent, Collins Property has recently entered into an agreement with Aveng to redevelop an existing portfolio from a previously successful joint venture arrangement. Signed earlier this year, Collins bought a majority stake in an Aveng portfolio, comprising 35 properties. “There are significant opportunities within this portfolio to redevelop prime industrial properties also,” says Collins.
C
O
N
S
T
R
U
C
T
I
O
N
BUILDING AND CIVILS
Although predominantly active in Gauteng, Abbeydale Building and Civils has undertaken contracts throughout Southern Africa, with offices now established in Zambia. Regarded as one of South Africa’s largest privately owned construction companies, with experience across the board in retail, commercial and industrial construction,
we are proud to be associated with Collins Property Group. 15 Innes Road, Jetpark, 1459 Tel: 011 323 2700 Fax: 011 823 2103 www.abbeydale.co.za
Unilever Warehouse, Mkondeni, Pietermaritzburg
Illovo Sugar Distribution Centre, Willowton, Pietermaritzburg
“Beyond this project, Aveng has a good presence in Africa and, with its diverse construction, infrastructure and engineering expertise, we look forward to collaborating with them in the future.” He adds: “In addition to these key expansions, we are also looking at various other projects including retail centres throughout the African
markets in which we operate, including Mozambique and Zambia.”
Seychelles archipelago
The Seychelles archipelago has become a hotspot for hospitality and retail projects in recent years and is something that Collins Property has focused on over the past decade. Collins emphasises: “As part of the
SADC (Southern African Development Community), we are very positive about what’s happening in the Seychelles. Therefore, we’d love to contribute more to its growing tourism scene and add more products under the Alphonse Fishing Company brand, as well as look for opportunities to develop niche tourism opportunities within the Seychelles archipelago. “Currently though, we own and manage Alphonse Island Resort and, together with the Islands Development Company, we have plans to develop Poivre Island into a world-class Eco Resort.” With the ability to handle all aspects of property development in-house, combined with a substantial portfolio of projects across commercial and hospitality – and more recently, the residential sector – Collins Property Group is now focused on ensuring to deliver an efficient, cost-effective solution to any property development, no matter the country.
WWW.AFRICAOUTLOOKMAG.COM
95
ame C A R L S O N
R E Z I D O R
At the Upper Scale of Hospitable
RECOGNITION
The Republic of Congo, Algeria, Mauritius, South Africa, Nigeria, Togo, Chad, Kenya, Ethiopia and Mozambique have all made it onto Carlson Rezidor’s expansion agenda for 2015 as it thrives on the continent’s momentum Writer: Matthew Staff Project Manager: Stuart Parker
96
WWW.AFRICAOUTLOOKMAG.COM
ne of the world’s largest and most dynamic hotel Companies has strengthened its already extensive African portfolio in 2015 via the opening of numerous new establishments. Targeting both new and existing countries of operation, the latest additions represent 15 years of expansion on the continent, having initially introduced its internationallyrecognised brands - Quorvus Collection, Park Plaza, Country Inns & Suites by CarlsonSM, Radisson Blu, Radisson Red and Park Inn by
Radisson - to Africa at the turn of the century, in South Africa. Nearly 70 hotels and 26 countries later and the Group can be truly recognised as one of the sector’s most successful international businesses on the continent. However, Carslon Rezidor views its development as far from complete, as indicated by its recent opening of the Radisson Blu M’Bamou Palace Hotel in Brazzaville in the Republic of Congo; its first foray into the country. “We are delighted to arrive in the Republic of Congo; the 26th African country we are present in,” enthused Rezidor President and
C
O
N
S
T
R
CEO, Wolfgang M. Neumann. “Africa is our most important growth market, and we want to further expand our network together with existing and new partners. “As Africa continues to grow and thrive economically, we are delighted to be part of this momentum by welcoming the first internationally-branded hotel to the area,” added Marc Descrozaille, Vice President for sub-Saharan Africa. “Brazzaville is a key port and host to many corporations, government organisations, NGOs and Africa’s regional office for the World Health Organisation.”
U
C
T
I
O
N
The upscale property opened in September and comprises 178 rooms, 28 suites and two penthouses fit to house visitors who will also benefit from the full range of technological, leisure, dining and function room amenities that have become so synonymous with the Rezidor offering around the world. “With the opening of Radisson Blu M’Bamou Palace Hotel, Brazzaville, we are bringing one of the world’s leading hotel brands to Congo,” said Patrick D’Hoore, General Manager of the Radisson Blu M’Bamou Palace Hotel. “Set in a great location - close to the local and regional banks and
governmental institutions – the hotel is built to offer a stylish, sophisticated and iconic hotel experience to international travellers to Congo.”
Unlocking value
Numbering 64 at present, the portfolio of hotels boasted by Carlson Rezidor in Africa is only set to rise even more rapidly and concertedly in the future, with a further 20 - at least - scheduled for the next five years alone. Ultimately, this plan will transpire in the doubling of its current array by 2020, and 2015 kick-started
WWW.AFRICAOUTLOOKMAG.COM
97
C A R L S O N
R E Z I D O R
LOUIS KAROL
L
ouis Karol is one of the largest and most eminent architectural firms in South Africa and our portfolio of work comprises of numerous corporate head offices and commercial office buildings, waterfronts, residential apartments, hotels, retail facilities, convention and exhibition centres, educational buildings and numerous refurbishment projects. Our commitment to quality has led to the development of a multi-disciplinary organisational structure, and thus offers architectural, urban design, interior design and project management services. The firm’s strengths are derived from its thorough understanding of commercial pragmatism, construction processes, demonstrable quality control, and the ability to tackle the largest fast-track project, on time and on budget.
CAPE TOWN +27 21 462 4500 JOHANNESBURG +27 11 447 3011 Dr Eitan Karol ekarol@louiskarol.com
www.louiskarol.com
Park Inn by Radisson, Onitsha, Nigeria
the process not just in the Republic of Congo, but also across South Africa, Nigeria, Mauritius, Togo and Chad. Leaving no region untouched, its comprehensive sub-Saharan saturation has also been complemented in the North this year via a re-entering into Libya and a more recent opening of the Radisson Blu Hotel, Tipaza in Algeria. “Algeria is the largest country in Africa and one of the richest nations on the continent. It has seen considerable infrastructure and tourism investments over the past years, and we want to support Algeria’s economic and social developments as a strong international hospitality partner,” said Neumann at the African Hotel Investment Forum (AHIF) in Addis Ababa, Ethiopia. The new-build upper-upscale property featuring 168 rooms will welcome its first guests in late 2017 and is Carlson Rezidor’s second project in the country; bringing the Group’s total portfolio of operational or under-development rooms to more
98
WWW.AFRICAOUTLOOKMAG.COM
Algeria is the largest country in Africa and one of the richest nations on the continent. It has seen considerable infrastructure and tourism investments over the past years, and we want to support Algeria’s economic and social developments as a strong international hospitality partner
than 14,400 across the continent. Elie Younes, Executive Vice President & Chief Development Officer at Rezidor added: “Algeria offers huge potential for our core brands, Radisson Blu and Park Inn by Radisson, and compelling investment opportunities in hotel real estate. “Our objective is to unlock value for both our partners and shareholders. We are pioneers at many destinations; also in Tipaza where the Radisson Blu is the first internationally branded hotel in the city.”
Driving value
Ethiopia, Mozambique and Kenya in the east, as well as Ghana in West Africa, are all on the agenda for 2016 too, but when it comes to continental expansion and influence, it doesn’t all boil down to physical property. Carslon Rezidor’s external influence in regards to the enrichment of the wider communities is not only witnessed within its almost exclusively
C
O
N
S
T
R
Radisson Blu M’Bamou Palace Hotel, Brazzaville, Republic of Congo
U
C
T
I
O
N
local employment ethos, but is driven by a much more all-encompassing philosophy of unlocking the continent’s full potential. “Driven by economic growth, rapid urbanisation and favourable demographics, and facing an undersupply of quality hotel rooms, Africa offers huge opportunities for growth,” Neumann explained at AHIF. “It plays a key role in our long-term strategy targeting asset-light and sustainable growth in EMEA and particularly in emerging markets. “We want to be a leading player in the travel & tourism sector across the continent, constantly driving value for our owners, guests and employees.” As one of the most ethical companies worldwide, Carlson Rezidor has an industry-leading Responsible Business programme including Group-wide energy and water saving initiatives, and area-specific offers such as the Youth Career Initiative
in Africa opening up training and job opportunities to underprivileged young talent. Carlson Rezidor also supports selected hotel projects and owners in Africa, and provides equity financing through a collaboration agreement with several Nordic Development Funds. Andrew McLachlan, Vice President of Business Development, Africa & Indian Ocean Islands at Rezidor added: “Our joint vehicle, ‘AfriNord’ was created in 2005 and extended in 2014. It has already successfully supported hotel developments in South Africa, Kenya, Ethiopia, Sierra Leone and Mali, and created 1,500 new permanent jobs. “It enables us to drive developments and to help our regional owners and business partners to reach project completion in time and on budget. Among the target countries for future projects are Nigeria, Ghana, Ethiopia, Mozambique, Angola, Kenya, Tanzania, and South Africa.”
WWW.AFRICAOUTLOOKMAG.COM
99
ame A I R T E L
100
G H A N A
WWW.AFRICAOUTLOOKMAG.COM
T
E
C
H
N
O
L
O
G
Y
LEADING GHANA’S
DATA
Revolution Managing Director, Lucy Quist has only been at the helm of Airtel Ghana for 18 months, but has evolved the operator to enjoy new market heights, unrivalled subscription rises and ongoing critical acclaim Writer: Matthew Staff • Project Manager: Donovan Smith
irtel Ghana has confirmed its impressive and rapid national rise to prominence in the telecoms market by officially becoming the country’s second largest operator. The accolade is inevitably a step towards the Company’s ultimate goal of becoming the market leader in the future, but has been somewhat cast to the background of Airtel’s extensive list of 2015 success stories, obscured by a plethora of significant investments, subscriber statistics and most of all; its acclaimed new Managing Director (MD). Since the new incumbent, Lucy Quist joined the business in April, 2014 the improvements instilled into Airtel’s Ghanaian operations have not only elevated the Company to new heights in the sector, but has been recognised as such via vastly increased consumer interest and numerous awards.
Running parallel with this industry success has been an equally prevalent strive for wider community enrichment, partnering with worldrenowned organisations in an attempt to bridge the skills and tech knowledge gap that still exists within Ghana. First and foremost in 2015 though, a concerted drive towards infrastructural improvements was seen across its fibre and fixed-line networks, as well as through the digitisation of huge projects in the data space. As a result, customers now enjoy 42mps download speeds as a result of its fibre enhancements, as well as a national leader in ecommerce as one of the Company’s premier value-add services.
Exceptional leadership
While Airtel Ghana was certainly heading in the right direction prior to Quist’s introduction to the business, it has been widely accepted that her
WWW.AFRICAOUTLOOKMAG.COM
101
- Sleek metallic body with 5.2� FHD Screen - Dual SIM 4G LTE - Superb low light perfomance with 13MP rear camera with OIS
consumer.huawei.com
A I R T E L
G H A N A
role at the head of the Company has proved the catalyst for the quickened evolution over the past 18 months. As such, the Managing Director recently complemented the wider Company’s Telecom Brand of the Year award, by being crowned the Marketing Woman of the Year at the Chartered Institute of Marketing Ghana (CIMG) Marketing Performance Awards held at the Banquet Hall of the State House in Accra, in September. Quist was recognised for her contribution to the telecommunication industry and the marketing fraternity as a whole, as well as for her leadership in driving transformational change in the sector; evidenced by Airtel Ghana’s innovative and cutting-edge communications, connectivity and collaborative solutions. Part of her citation read: ‘this award is in recognition of your exceptional leadership, your excellence in strategic marketing in the areas of
Lucy Quist was crowned Marketing Woman of the Year at the CIMG Marketing Performance Awards in September
To be recognised for this is truly inspiring. It is also a humbling experience but one that challenges me to do more, to achieve more and to inspire others to do same
Quist is continually recognised for her business decisions
104
market insights, marketing strategy development, managing your corporate reputation, right down to managing marketing teams and your CSR programmes for the year 2014 and your contributions to the telecommunications industry’. The MD is the first Ghanaian female Managing Director of a major telecommunications company in the country. She was also recently recognised for her contribution to and mercurial rise within the telecom industry at the Ghana Telecommunications Awards, where
WWW.AFRICAOUTLOOKMAG.COM
Airtel Ghana won a total of four awards. Asked how she felt about the awards she said: “I am delighted to be the recipient of this award. This clearly is a recognition of the continuous effort we put in everyday at Airtel to raise the standards of marketing not only in the telecommunication sector, but across industry as a whole. “To be recognised for this is truly inspiring. It is also a humbling experience but one that challenges me to do more, to achieve more and to inspire others to do same.” She continued: “I want to thank my family for their continuous support and encouragement and to my team at Airtel, who put in their best effort every day to make us the most loved brand in the daily lives of Ghanaians.”
Remarkable achievement
Quist’s now esteemed name in the African telecoms domain is made all the more enjoyable by her Company’s adjacent successes; forming a
When Opportunity Meets Preparation: Success Story of Airtel Ghana’s Partnership with Huawei “Success is when opportunity meets preparation”, these words of the great psychologist, Henry Hartman perfectly describe the successful partnership between Airtel Ghana and Huawei Technologies, Ghana. As a global leader in telecommunications equipments and carrier services, Huawei Technologies currently serves 45 of the world’s top 50 telecommunications service providers and Airtel is one of the key networks the company currently serves in Ghana. When success translates into recognition “There is no greater joy than to see your hard work payoff”. Such is the joy and pride Huawei felt when the very distinguished and hardworking Managing Director of Airtel Ghana, Madam Lucy Quist emerged with the most prestigious award at the 2015 CIMG Awards after been named the Marketing Woman of the Year. “We at Huawei Technologies Ghana are very proud of Madam Lucy Quist for her achievement. We are glad to have contributed to this success story,” Russell Xu, the CEO of Huawei Technologies, Ghana commented. Laying of fibre optics for improved network In order to help Airtel Ghana build a faster and convenient network pipeline, Huawei Technologies Ghana provided metro fibre network for Airtel Ghana. The fibre optic cables provide a much faster broadband as research has also proven that fibre optic cables which are made of either glass or plastic facilitate fast movement of data along their length. It is Airtel Ghana’s vision to be the number one data provider on the Ghanaian
market and we are confident that a fast stable fiber network will help them achieve this. A partnership with a brighter future Huawei Technologies continue to improve all aspects of its business and for a relatively young entrant into the smartphone market, the tech giant continue to make significant strides as the Company is now the 3rd largest Smartphone manufacturer and brand worldwide. As a telecommunications Company that prides itself as “the smartphone network”, Airtel can get even closer to their goal of becoming the number one telecom network provider through their partnership with Huawei to offer their customers attractive consumer packages and data bundles with Huawei’s high-speed devices. The assurance Huawei Technologies has a mantra of being an innovative enabler and continues to push for a better connected world; as such the company is always prepared to live by its ultimate pillar of being customer-centric at all levels of business as it is the core vision of Huawei Technologies to help our customers achieve success. Airtel Ghana can therefore be rest assured that their partnership with Huawei Technologies Ghana will continue to be beneficial. It is also the wish of Huawei Ghana to partner with Airtel Ghana in other business areas relevant to their operations.
consumer.huawei.com
A I R T E L
G H A N A
formidable combination in competing for the number one spot in Ghana. The Company’s most recent achievement to this end saw its subscriber numbers rise to more than four million in the latest telecom voice and data subscription report released by the National Communications Authority (NCA). The report showed a consistent growth in the subscriber base of the Company over the first six months of 2015, moving from a voice subscriber base of 3.75 million in January to 4.11 million as of June, 2015; adding more than 360,000 new subscribers to the network which clearly makes Airtel the network with the highest percentage growth (8.77 percent) and the fastest growing network over the six month period. Commenting on the growth, Quist said: “This is truly a remarkable achievement and we are excited about this performance. “We have been leading the industry in product, service and digital innovation that clearly differentiates us from the competition and positions
Airtel as the network of choice for the Ghanaian public. These latest results from the NCA validate our position as the most loved brand in the daily lives of Ghanaians.” She continued: “I want to take this opportunity to thank every single one of our more than four million customers who interact with our brand every day and to invite those yet to experience our superior product and services to join us. You now have more than four million reasons to be on the smartphone network. Make your change now.”
Data revolution
The report went on to reveal that Airtel Ghana’s growth across data was also unmatched with additions of more than 330,000, translating to a 13.3 percent growth over the six month period; the highest percentage growth in the industry. Quist attributes this to Airtel’s “superior network and data quality, coverage and competitive pricing which is unparalleled in the Ghanaian market”.
OGILVY & MATHER GHANA LTD
O
gilvy & Mather Ghana Ltd, based in Accra, is a marketing communications agency and the regional hub for West and Central Africa; offering professional services in marketing strategy, advertising, media planning and buying, public relations and digital marketing. Our team of market-leading professionals has 40-plus years of global and local experience in crafting strategies for blue-chip companies, emerging market brands and local champions operating in the sub-region and beyond. Our clients’ business spans across telecommunications, FMCG, alcoholic and non-alcoholic beverages, food and confectioneries, hospitality, real estate, banking and finance, insurance, and retail among others. Ogilvy & Mather Ghana Ltd is part of Ogilvy & Mather Worldwide operating in more than 500 offices in 161 cities across the globe, serving Fortune Global 500 companies as well as local businesses. Ogilvy & Mather has been named Cannes Lions Network of the Year at the Cannes International Festival of Creativity four times in a row, from 2012 to 2015. The company has also been named the EFFIEs World’s Most Effective Agency Network for two consecutive years, in 2012 and 2013. Ogilvy & Mather Worldwide is a WPP Group Company, the world leader in marketing communications. WPP Group is made up of more than 100 international marketing communications companies; 3,000 offices, and 190,000 employees operating in 112 markets globally. T +233 30 701 0734 +233 30 701 0735 E info@ogilvy.com.gh
www.ogilvyafrica.com Airtel’s growth across data usage is unparalleled in the Ghanaian market
106
WWW.AFRICAOUTLOOKMAG.COM
CAN’T Spell b iness without
US
in it.
We don't just build brands here at Ogilvy & Mather Ghana, we create experiences. We know what to say, when to say it and how to say it in the most effective way to give your brand the necessary impact it deserves. Plus with a team of market leading professionals with over 40 years of local and global experience in crafting strategies for blue chip companies worldwide, we're not just pretty good at what we do, we're the best.
EST.1948
Visit www.ogilvyafrica.com or call +233 307 010 735 to join the winning team.
A I R T E L
G H A N A
AE SOLUTIONS GHANA
A
E Solutions Ghana is a leading household name that provides unique turnkey solutions to a huge number of customers:
• Network power, power systems and data centre solutions • Project, procurement, logistics and asset management • Deployment and maintenance of fibre optic infrastructure • Turnkey solutions for telecommunications companies • Information and communications technology solutions • Commercial and residential solutions • Process management, industrial automation and climate technologies T +233 264000002 / +233 262344808 E info@aesolutionsghana.com
www.aesolutionsghana.com
Airtel Ghana is committed to corporate social responsibility
“We have led breakthrough innovations in the digital space, providing customers with value-added services such as rollover data bundles, browse chaw bundles with 2X, the dual scratch card which enables consumers to load either voice or data directly, and offerings such as free Facebook,” she continued. “These are the reasons why customers continue to choose us first for voice, data and business solutions.” The latter value-added service has proven especially popular, not just in Ghana but across Facebook’s 17 African national partners; through the introduction of Internet.org, an incentive put in place by the social media giant to help bring digital capabilities to previously untouched areas of the world. Airtel’s involvement in capitalising on this opportunity in Ghana will once again provide the perfect balance of brand recognition and an evident commitment to corporate social responsibility.
108
WWW.AFRICAOUTLOOKMAG.COM
Our partnership with Facebook which brings their internet.org mobile app to Ghana opens up more opportunities for the millions of people to stay connected and grow their potential from the wealth of information available on the internet
“Our partnership with Facebook which brings their internet.org mobile app to Ghana opens up more opportunities for the millions of people to stay connected and grow their potential from the wealth of information available on the internet,” Quist said at the launch. “We have invested heavily in upgrading and expanding our network over the past few years to provide access to information in all areas including remote and rural populations in Ghana. “We are proud that we have the second largest network in Ghana with the fastest 3G experience driven by our powerful 3.75G and second carrier investments. This partnership with Facebook will make it easier for people to access basic internet services. “We have been at the forefront of the data revolution in Ghana. Through Facebook’s Internet.org app, Airtel customers using mobile internet capable devices will now be able to access a set of free
T
E
C
H
N
O
L
O
G
Y
SOLUTIONS
Solutions for Telecom, Mining, IT, Banking, Petroleum & Oil & Energy
AE Solutions Ltd is a Ghanaian Company
working hard to make significant contributions to the country’s telecommunications industry and utility services infrastructure; promoting IT development to deliver innovative products, services and solutions that advance businesses and enrich lives.
C O N TA C T U S TELEPHONE: +233 264000002 +233 262344808
Trusted partners include Emerson Network Power, Ericsson and Airtel.
EMAIL: info@aesolutionsghana.com www.aesolutionsghana.com
Airtel is proud of its position as the second largest network in Ghana, with the fastest 3G experience
services in categories such as health, education, communication, jobs and local information.” The partnership evolved one stage further in October, 2015 with an announcement from Facebook’s CEO, Mark Zuckerberg revealing that ‘Free Basics’ internet services would be introduced via Internet.org to enhance the assortment of apps and services on offer to those already capitalising on the initiative. “Connecting people across the African continent is critical to our mission. We’re going to keep pushing forward to develop new ways to bring people online until the whole world is connected,” Zuckerberg said. The MD added: “We are proud to be part of Africa’s increasing relevance and contribution to the global innovation map. If you do not have an Airtel SIM, I invite you to pick one up and be part of the fastest changing telecommunications provider in Ghana.”
WWW.AFRICAOUTLOOKMAG.COM
109
ame C E L L U L A N T
110
WWW.AFRICAOUTLOOKMAG.COM
T
E
C
H
N
O
L
O
G
Y
LEADING PAYMENT ECOSYSTEM FOR THE INCREASINGLY
MOBILE AFRICA
Leveraging the hugely impactful success of the Growth Enhancement Support Scheme in Nigeria, Cellulant continues to shape its business in pursuit of its goal to become the number one mobile ecommerce Company on the continent Writer: Emily Jarvis • Project Manager: Donovan Smith fter 13 years of connecting consumers in Africa to digital mobile payment services, Cellulant has been able to unlock unprecedented growth and continues to shape the business in pursuit of its goal to connect more than 100 million consumers in Africa, while building a $1 billion Pan-African Company. Formed as a result of blue-sky thinking between two likeminded individuals, Ken Njoroge and Bolaji Akinboro, Cellulant has a history full of awardwinning industry firsts, known for its intuitive mobile content applications and services across Africa since the launch of its first platform in 2004. “Cellulant’s original business model was drawn up on a table napkin. Right from the beginning, we knew that
CELLULANT’S
OPERATIONS BOTSWANA GHANA KENYA NIGERIA MALAWI MOZAMBIQUE UGANDA TANZANIA ZAMBIA ZIMBABWE
we wanted to build a Company that provides services at the intersection of government, financial services, consumers, mobile telephone companies and content providers, creating real technological solutions for African consumers and businesses,” recalls Njoroge, the Company’s CoFounder and Chief Executive Officer (CEO). After testing mobile banking platforms in focus regions across Africa, in 2009, Cellulant deployed the first mobile banking solution using US currency for one of the first multinational banks; becoming the third Company globally to deploy this solution. From here, the Company’s success began to manifest itself in mobile payment and financial inclusion solutions to create a seamless experience for operators and the consumer across mobile commerce. “Cellulant’s digital payment solutions have been the catalyst for the penetration of mobile commerce across the countries in which we operate our mobile banking and mobile payment solutions. By digitising the value chain across various industry sectors, we are transforming economies and people’s lives,” adds Faizal Mirza, Cellulant’s Chief Technological Officer.
WWW.AFRICAOUTLOOKMAG.COM
111
C E L L U L A N T
GES Scheme
The Growth Enhancement Support (GES) Scheme in Nigeria is just one of the local solutions Cellulant has
provided in recent years. Using a digital e-wallet system, Cellulant has simplified the disbursement of fertiliser subsidies to smallholder farmers – those who needed government subsidies the most - while increasing their average income. Having obtained a license from the Central Bank of Nigeria to operate a mobile payments’ scheme, Cellulant took to market one of the largest-scale uses of mobile commerce to drive transformation in the agricultural sector. GES has since powered $1 billion in subsidy payments to more than 10 million farmers.
INPUTS
90% REACHED 7.1m CUSTOMERS BY 2014
INCOME
112
ECONOMY OVER
Njoroge continues: “We have created a converged ecosystem that better connects banks, merchants and mobile networks with the customer. Partnering with leading banking institutions and merchants across the continent not only requires a holistic approach, but a local focus that engages the consumer and improves our overall value chain; this is something we excel at.”
$30
BILLION
CONTRIBUTED TO THE NIGERIAN GDP
FINANCING
$1800
$600
FOR EVERY FARMER, FROM $700
CREATED IN LENDING & MICROFINANCING OPPORTUNITIES
WWW.AFRICAOUTLOOKMAG.COM
MILLION
SAFARICOM INNOVATION: THE ONLY CONSTANT IN MOBILE MONEY Mobile money has proven to the biggest disruption to the financial sector over the last decade. It has not only introduced new paths in the movement of funds, but continues to be a hotbed of innovation. Take for instance the thousands of customers who have mapped their bank accounts to their mobile wallets. They in turn make payments for goods and services from their mobile phones, without having come into contact with cash. This has given life to the Cash-Lite and Cashless Economy Concepts that seemed unrealistic not too long ago. In tandem, at Safaricom have actively been growing the number of business outlets which accept payment using mobile money. The Lipa Na M-PESA tills now stand at over 35,000 and the number keeps growing by the day, as more people appreciate the benefits that come with it. More recently, we started partnering with financial institutions to introduce Real Time Settlement, which is a technological advancement that ensures that funds sent between Lipa Na M-PESA tills and bank accounts are recognized in real time. This means that the downtime that discouraged many businesses from adopting Lipa Na M-PESA has been done away with, thereby entrenching the mobile money in the transaction space in Kenya. With all these developments we illustrate that mobile money is indeed a safer and more convenient way to transact, whether you are a consumer or a business.
www.safaricom.co.ke
C E L L U L A N T
the average farmer’s income, from Co-Founder and CEO of Cellulant Nigeria, Akinboro explains: “There was $700 to $1,800, opening $600 million worth of opportunities in lending and a time when agriculture contributed microfinance. 60 percent of the GDP in Nigeria. For As a consequence of the success of a population of 170 million people, this was significant. However, by 2013, the Scheme, Cellulant is amplifying its agriculture contributed only 20 percent local impact in a new partnership with the Nigeria Agriculture of the GDP. With 84 Payments Initiative million hectares of arable (NAPI). land, there was a definite Akinboro highlights: problem to address. This is “This is the next step for where Cellulant came in. us that will create further “Farmers began opportunities for the getting the fertiliser they Nigerian farmer and the needed, empowering the country as a whole by agricultural industry to increasing their financial contribute a much larger independence and amount to the GDP.” turning the agricultural Between March 2012 MILLION industry on its head to and 2014, more than $30 drive economic growth in billion was contributed to Nigeria once more.” Nigeria’s GDP, with food REGISTERED He summarises: “Our imports dropping by 75 SINCE 2012 ‘make possible’ spirit has percent. Additionally, the driven us to great heights; project almost tripled
FARMERS
4.5
changing lives of Nigerians for years to come. It became our strong belief that if we could make any solution work in Nigeria, it would be one that could be adopted and scaled throughout Africa.”
Make Possible Academy
Since its inception, Cellulant has been able to achieve extraordinary results under challenging economic circumstances; showcasing the same ‘make possible’ spirit through its incredibly talented staff to drive the business forward. This spirit is closely intertwined with the Company’s training initiatives, dedicated to continuous improvement for the betterment of the business. Njoroge says: “The Make Possible Academy is Cellulant’s internal talent learning and development programme that aims to provide staff with different training opportunities at various stages of their employment. In some cases, we leverage our wider market reach to expose staff to different opportunities and ensure we have strong management teams with a full understanding of our Company’s mission and goals across Africa.” Furthermore, the Group has a vested interest in youth development and training, mentoring individuals at high school and undergraduate students who embody the Cellulant ‘Make Possible’ spirit. Recently, the Company partnered with the African Leadership University (ALU) to sponsor students who will get a chance to intern at the company during their schooling BILLION and eventually have the opportunity to work at Cellulant at the end of ACCESSED their education. “This THROUGH THE goes hand-in-hand with SCHEME SINCE 2012 our continued pursuit to
SUBSIDIES
$1
Nigerian farmers will have greater financial independence
114
WWW.AFRICAOUTLOOKMAG.COM
T
E
C
H
N
O
L
O
G
Y
The Problem
The Solution dsidy deposit su
disbursed
The Group has a vested interest in youth development and training
e-wallet sactions tran
subsidy 50%
grow the workforce in Africa, investing in young people who exemplify the ‘make possible’ and can-do attitude in pursuing excellence. Our partnership with ALU ensures that these students get the best possible education,” he adds.
Replicating its success
With the aim of more than doubling its market presence in the next three years, Cellulant will continue to invest in its payment ecosystem;
with a concerted focus on innovation, growth and advancement in order to provide the most relevant services to the consumer, subsequently providing a competitive advantage to banks, multinational companies and merchants. “Using the GES model, we will continue to extend our payment gateway and scale it for other sectors, enabling us to continue to tackle some of the continent’s biggest challenges;
providing solutions across sectors including travel and hospitality, education, water and power,” comments Mirza. Njoroge concludes: “By 2018, we expect to be present in 23 countries, serving approximately 150 banks comprising around 600 customers across the continent. In line with this expansion, we will continue to upscale our applications including the e-wallet; replicating and amplifying the successes we have seen in Nigeria to continue on our path to become the leading mobile payments ecosystem in Africa. “Above all, our services are comparable to none. We aim to connect 100 million consumers with our world-class yet localised one-stop digital payments ecosystem that remains relevant to their everyday usage.”
WWW.AFRICAOUTLOOKMAG.COM
115
ame V O D A F O N E
116
G H A N A
WWW.AFRICAOUTLOOKMAG.COM
T
E
C
H
N
O
L
O
G
Y
The
JOURNEY
of Transformation Continues Vodafone Ghana remains on course to reach its goal of enriching the entire country, as a series of network investments, service additions and CSR initiatives broadens its reach even further Writer: Matthew Staff • Project Manager: Donovan Smith
odafone Ghana has surpassed its expectations in 2015, fulfilling its ambitions not only in terms of network expansion, but also across its wider, more all-encompassing, goal of enriching the country as a whole. Established in 2008 following the acquisition of Ghana Telecom, the core blend of mobile and fixed offerings has been complemented in the subsequent seven years by a plethora of value-add services, bridging mobile money and broadband data especially. The latter has been a core focus over the past 12 months too, having invested GH¢4.5 million into its fixed broadband network, once again finding a way to enhance what is already a market-leading option for its loyal customers. “We have invested in modernising the infrastructure as well as developing
a backbone of fibre across the entire country. This is not only serving the needs of the Company, but also the wider industry and other players in the market who want access to that connectivity,” explained Chief Executive Officer (CEO), Haris Broumidis at the start of the year. “The process has been a journey of transformation, and still remains an ongoing agenda. “It is our responsibility to ensure that every corner of Ghana reaps the benefits of the Vodafone offering in their lives.” Such widespread national transformation isn’t always as simple as injecting money into a project however, with the digital domain influenced not only by market competition, but adjacent industrial challenges as well. The advent of the energy crisis, for instance, has made it difficult
WWW.AFRICAOUTLOOKMAG.COM
117
V O D A F O N E
G H A N A
SCANAD GHANA
S
canad Ghana is a full service advertising agency; incorporating creative, media buying, planning, digital and PR. We are part of the Global Communications Group WPP and to date we are the most awarded agency in Ghana. Sparking conversations and unearthing truths are the bedrock to our belief system. Our philosophy has produced some of Ghana’s most prevalent brand stories for Vodafone, Woodin, and Coca-Cola to name a few.
T +233 302 734 862 E Jebet.amdany@scanad.com Vodafone at West Hills Mall
for all operators to offer consistent connectivity across both fixed-line and broadband services, and has subsequently formed a battleground on which the sector elite have been competing to find a differentiator or solution. In Vodafone Ghana’s case, this has included an upgrade to its existing power sources to provide a more reliable and resilient service to customers, while continuing to offer all active fixed broadband customers up to 20GB worth of mobile data to ensure unwavering connection. Julius Owusu-Kyerematen, Head of Vodafone’s Fixed Broadband business said: “It is not in doubt that the energy crisis has had profound commercial impacts on our operations as a Company. However, I must say we are happy with the investment we have put in place so far to bring comfort to customers. “Going forward, we will continue to implement measures to continuously
118
WWW.AFRICAOUTLOOKMAG.COM
support the network and ensure our customers are offered a great experience with our fixed broadband.”
Game-changer
Going forward, we will continue to implement measures to continuously support the network and ensure our customers are offered a great experience with our fixed broadband
Continuously at the forefront of innovation within Ghana, the need to keep ahead of the industry curve is inevitable for any Vodafone entity, but it is the Company’s ability to act locally within its wider organisational framework that has won it so many accolades and plaudits over the years. Its mobile money platform is further evidence of this, developing a service, in the form of M-Pesa, which addresses the specific needs of the domestic population and the local business scene. “If you take mobile money for example, we launched this platform in 2015, following other operators that have already done so in the market,” noted Broumidis. “We are confident that ours will be a game-changer in the country. We have a track record
T
E
C
H
N
as a global company with this service, having introduced the concept to great success in countries like Kenya and Tanzania, with M-Pesa. “By launching mobile money in 2015, we believe we can differentiate our service from existing ones; not because it’s a different concept but because the Vodafone mobile money product offers a different experience for the customer.” As a result of this continuous drive to improve the availability of such services, August, 2015 saw all customers gain the ability to rollover any unused data allowance from their broadband service to the following month, as a way to bring even further value and convenience, while its free 20GB offering will continue into 2016 as well. From an enterprise perspective, this same dedication to progression has been evident in 2015 through the reintroduction of its ‘Red Business’ product, in an effort to entrench
O
L
O
G
Y
#20 Kanfla Street, Asylum Down, Accra - Ghana PO Box 12802, Accra North. Accra - Ghana Tel: +233302253496; +233205865592; + 233263009901 Email: info@royalsystems.com.gh; www.royalsystems.com.gh Major Clients
WWW.AFRICAOUTLOOKMAG.COM
119
V O D A F O N E
G H A N A
its position as the Best in Telecoms business; a feat recently achieved at the Ghana Telecom Awards. The initiative is part of a strategic commitment to identify and meet the bespoke needs of its SME customers across the country. “The customer is at the heart of the business landscape in the present dispensation,” Angela Mensah-Poku, Head of Vodafone Business Solutions added. “The service-dominant logic is what makes businesses successful and it is something we have unflinching dedication for. “Going forward, we want our customers to be rest assured that all their concerns will be effectively addressed by us. We want them to know that without them we have no business”.
Group directive, as well as launching new M2M services and a Vodafone Appstore; rewarded in turn by an increase in subscribers from 6.9 million to 7.3 million. “Back in 2008, at the time of Vodafone Ghana’s inception, there were only 400 sites across the country, a figure which needed dramatically increasing if the business was to implement its acclaimed array of network services,” Broumidis recalls. “Six years on and that increase
Smart initiatives
Elsewhere, Vodafone Ghana has invested $700 million into its network in 2015, in line with a wider Vodafone
has culminated in more than 2,000 sites being developed – and counting – signifying the success of a transformation period which has already dramatically improved the levels of coverage and quality within the country.” Improving the country is ultimately what Vodafone has always tried to achieve in Ghana, and this is apparent not just within its technological expertise, but perhaps even more significantly across its corporate social
Good customer experience The area of improvement acknowledged as being the most critical to the business
Meltwater Entrepreneurial School of Technology (MEST) works with Vodafone’s Innovation Team, providing entry routes to markets around the world
120
WWW.AFRICAOUTLOOKMAG.COM
T
E
C
H
N
O
L
O
G
Launched in 2009, Vodafone Ghana Foundation supports sustainable issues that drive social change
Y
responsibility efforts. In 2015 this has comprised the launch of Vodafone Farmers’ Club; a range of mobile services tailored directly for the farming community with a view to help counter the numerous agricultural challenges that have engulfed the nation in recent years. “One-third of humanity relies on food grown by 500 million smallholder farmers with less than two hectares of land. As Ghana’s population continues to expand, farmers have an urgent need to produce ever-increasing amounts of food without destroying habitats or depleting resources in unsustainable manners,” explained Serpil Timuray, Regional CEO of Vodafone Africa, Middle East & Asia Pacific. “Smart and forward-looking initiatives such as the Vodafone Farmers’ Club concept can make a real difference in addressing the global challenge of food production and security.” Areas of health and education are similarly addressed, often in conjunction with governmental initiatives, as Vodafone continues to positively impact a country which increasingly embraces the global brand as its telecom operator of choice. “Vodafone has a global strategy in terms of how we operate across different countries and we need to work within that framework. But when it comes to execution, it’s pretty much a local issue that takes into account competitive dynamics, market maturity, and our market positioning,” Broumidis said in relation to the Company’s philosophy in Ghana. “Our fundamental belief is that while we are a profit-making organisation, we cannot have a sustainable business future if we don’t make a real social impact on the world around us. “The more the economy progresses and the better prospects Ghanaian companies and people have, the better the conditions will be for Vodafone to grow its operations within Ghana.”
WWW.AFRICAOUTLOOKMAG.COM
121
D E L T A
122
F O O D
I N D U S T R I E S
WWW.AFRICAOUTLOOKMAG.COM
F Z C
F
O
O
D
&
D
R
I
N
K
C REAM UAE’S
OF THE CROP
Delta Food Industries has only been operational for four years, but has already embarked on a series of significant expansions; none more so than its new dairy plant set to open in late 2015 Writer: Matthew Staff • Project Manager: Sammy Wilkinson elta Food Industries is capitalising on a strong first four years of operations inside Sharjah Airport Free Zone, UAE with its latest capital investment which will see enhancements across capacities, range and efficiencies as the Company enters the next stage of its international development. The Free Zone exporter of food products - ranging across tomato paste, tomato ketchup and milk powder products since 2011 - occupies an area of 9,000 square metres inside the Sharjah Airport International Free Zone (SAIFZone), but with an ethos of continuous improvement and expansion, a recent 20 percent stake sale to Rafi Agrifood in July has set the tone for its biggest step forward to date. In-keeping with the Company’s general upgrade and expansion plan across its facilities, a new plant for the production of evaporated milk and sterilised cream is due to open in
“In September, 2014 we decided to venture for the manufacture of evaporated milk and cream and immediately purchased the adjacent premises at E2-10 and ordered machineries for dairy plants,” says Chairman, Shiraz Osman. “The new dairy production machinery is a modern, state-of-the-art technology imported from Europe and India and is capable of producing 90,000 cartons of 170 gram evaporated milk and cream. “The processing facility for the dairy plant has also been designed in such a way that it can double its capacity by adding one Steriflow.” The flexibility and speed in which Delta Food can make such decisions is testament to its youth in the market, Shiraz Daud Osman, Chairman/Director but also to the levels of innovation December, 2015; not only consolidating and ambition within the business, and its strong position in the Middle East Osman is already assured that there is and GCC market but leveraging its new a customer base ready and waiting to products to introduce more advanced capitalise on the new product offering. technologies and process into the He continues: “Customers, both business also. existing and new, are already aware
WWW.AFRICAOUTLOOKMAG.COM
123
D E L T A
F O O D
I N D U S T R I E S
F Z C
Delta’s reputation in the region has grown just as rapidly as its product range
of the new facility and look forward to purchasing everything from one supplier rather than shopping around for different products from different suppliers.”
Versatile manufacturing
Once opened, the new plant will represent an astounding evolution in such a short space of time, from origins that began when Chairman, Shiraz Osman invited food industry expert and friend, Ali Parpinchi to join him in a venture that initially only comprised five members of staff. More than 200 additional employees later, and a series of aggressive expansions and investments has forced the issue from a production capacity perspective over the years, backed up by an even more pivotal commitment to quality processes and quality products. “Whenever demand increases, Delta increases its production capacities by
126
WWW.AFRICAOUTLOOKMAG.COM
Osman thanks Saif Zone authorities for their continuous support and understanding investors’ needs. The infrastructure provided by Saif Zone gives opportunities to companies like Delta Food to expand and grow swiftly.
adding new machines, and this has recently included a processing facility the backbone of the Company - so that production capacities can be easily expanded in the future just by adding new filler and seamer machines,” explains Osman. To further compound this dedication to quality, Delta also works closely with the health department of Sharjah Municipalities and SAIF-Zone to adhere to the very best health & safety guidelines, while it is also ISO 22000, ISO 9000, HACCP and HALAL certified; all of which lays the foundations for an even bigger concerted focus on rapid product and service launches along the way. He says: “Over the years, Delta has also introduced the packaging of new products like custard powder, starch, oats and semolina, while new machineries have been added for the manufacture of different sizes of tomato paste, hot sauce and milk powder in tins.
Globe Express Services G
lobe Express Services is a provider of comprehensive logistics and supply chain solutions. Established in 1974, the range of services offered by the company includes ocean freight, air freight, customs clearance, warehousing & consolidation, project & heavy cargo services, international transportation, cargo management, information integration, and compliance management. The Gulf region’s vibrant business landscape is attracting the attention of international investors which in turn has driven immense development projects across a wide range of industries. Europe has been enhancing trade relations with the Middle East as well, leading to a wealth of potential initiatives that will create market gaps that can be addressed by GES’ wide range of solutions. Growth & expansion strategy The expansion and opening up of new branches is a part of its comprehensive and dynamic strategy to address the growing demand for logistics services in the region and worldwide. Globe Express Service currently operates globally in 55 countries. The Company currently operates in Bangladesh, China, Hong Kong, India, Malaysia, Thailand, and Vietnam in the Asia Pacific region; Brazil and Chile in Central and South America; France, Italy, Russia, Switzerland and Turkey in Europe; Kuwait, Lebanon, Saudi Arabia and the UAE in the Middle East; and Canada and the US in North America. At the helm Mustapha Kawam, was recently appointed as the President & CEO of Globe Express Services. He first joined the company in 1995 as a sales representative.
Under his leadership as the Managing Director of the Gulf States, Globe Express Services has received Maersk Line’s Platinum Award for four years in a row. GES announced the signing of a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE’s national railway network and also reported expansion activities in various parts of the globe. His current focus is directed towards maximizing industry opportunities and sustaining GES’ global success. He aims to continue the Company’s relentless efforts to achieve higher levels of customer satisfaction and service and steadily build and expand GES’ business to create new opportunities. Additionally, he also wishes to establish a positive work environment for all employees, displays excellent leadership skills, an astute business acumen, and deep industry knowledge. Corporate social responsibility at GES Volunteerism and humanitarian initiatives are deeply ingrained in GES’ corporate culture. As an organization and as individuals, they take great pride in the social and environmental causes supported at both the local and global levels by actively participating in noteworthy activities such as spearheading medical missions, promoting education and the arts, launching charitable works for underprivileged women and children, distributing food and clothing provisions to those in need, and supporting environmental conservation and recycling efforts.
T +971 4 3388-599 E Mustapha.Kawam@globeexpress.com www.globeexpress.com/en/
D E L T A
F O O D
I N D U S T R I E S
F Z C
GULF CANS & PACKAGING INDUSTRY
G
ulf Cans & Packaging Industry (GCPI) was incorporated in 2010 and its commercial production started in January, 2012. During a very short span of time, Gulf Cans has established itself as a very reliable supplier in the Middle East. Our product range consists of round lithographed tin cans for food & non food products, printed sheets, RLT assemblies, lids, easy open ends and peel off lids.
Quality Control To facilitate such continuous capacity growth and proactive expansion of its products and services, September, 2015 saw the opening of Delta Food Industries’ new Quality Control (QC) Laboratory; equipped with modern equipment for chemical and microbiological analysis of raw materials and finished products. QC also conducts physical inspection during the production phase to make sure all safety and hygiene standards are met. The quality control department plays a very important role in ensuring that all the products are safe for human consumption and the process of production conforms to the established regulations of the certifying agencies such as the HACCP, ISO and HALAL.
Our key strengths are quality and timely delivery.
T +968 26701707-08 F +968 26701709 E sehgal@gcpioman.com
www.gcpioman.com
New machinery has been introduced for tinned milk manufacture
“With a versatile manufacturing unit, good team members and the active involvement of partners, Delta Food has progressed well and met expectations and visions, which has led us to our further expansion, and decision to venture into manufacturing evaporated milk and cream.”
128
Quick expansion
The end result is a plethora of tailored products that Delta Food Industries knows will be successful in the Middle East market, embracing the latest consumer trends; not just in terms of eating habits, but also in regards
WWW.AFRICAOUTLOOKMAG.COM
to how customers want their food packaged and presented. Subsequently supplying said products within tins, pouches, glass bottles, sachets and PET jars, the Company’s diversity also has a knockon effect on the types of sizes that can
F
O
O
D
&
D
R
I
N
K
Office & Factory P.O. Box No. 64, Postal code 327 Sohar Industrial Estate, Area No. 5, Sohar, Sultanate of Oman. Office tel: +968 26701707 / 708 Fax: +968 26701709 Email: sehgal@gcpioman.com www.gcpioman.com
We are proud to be associated with Delta Food Industries, SAIF Zone, UAE
Delta is quick to recognise the customer needs and expands its portfolio of products to satisfy these market demands
Delta has continually expanded its production capabilities since inception
be offered as well. “Delta has introduced additional products as per the requirements of its existing customers which has resulted in quick expansion,” Osman explains. “Delta’s manufacturing unit is versatile, meaning it can increase its production
by adding different packaging units; for example, starting with tomato paste, Delta started with just two packaging sizes; 400 grams (g) and 850g. “Now, by adding different filler machines, it has numerous additional sizes; 70g, 175g, 370ml, 1.6 kilograms
(kg), 2.2 kg and 4.5 kg.” This strategy has been replicated across its milk powder products and completes a cycle of continuous improvement that embraces manufacturing, capacities, automation, flexibility and, ultimately, product quality and diversity.
WWW.AFRICAOUTLOOKMAG.COM
129
D E L T A
F O O D
I N D U S T R I E S
Trust and credibility
The demographic of customers subsequently enjoying the fruits of Delta’s labours are primarily private brands in international markets, as well as locally distributed to clients. The all-encompassing, turnkey nature of what Delta has created, however, now lends itself to looking further afield in the future. Osman notes: “Apart from UAE, Delta’s main customers are in Iraq and GCC countries including Saudi Arabia, Qatar, Kuwait, Oman and Bahrain. We also export to countries in Africa though, including Somalia, Sudan, Guinea and Ethiopia. Once our capacity permits, we will continue to branch out across the Arab league countries like Egypt and Libya too.” Facilitating this strategy is an in-house supply chain management department catering for the needs of both the Company’s internal systems and those of its customers; once again bringing into mind areas of sustainability and operational excellence.
Delta aims for quality production and timely disposition of deliverables, and these are the key factors that establish trust and credibility with our partners and customers
130
WWW.AFRICAOUTLOOKMAG.COM
F Z C
AWARD WINNING
The Sharjah Airport International Free Zone (SAIF Zone) presented the SAIF Excellence Award (SEA) to Mr Osman in December, 2014, in recognition of the Company’s outstanding achievements within the Free Zone and its exemplary business blueprint that has helped Delta Food become one of the more successful investors in the region.
CEO, Osman received the prestigious Global Leadership Award in recognition of his vast contribution to society as an influential entrepreneur. The recognition was given by the Kerala State Business Excellence Awards in partnership with the IBPC and Al Leem Knowledge Centre.
The excellence award was presented by event management Company, Glamour & Glitter in 2014 at the MILAAP event; an informal conclave of more than 400 successful businessmen whose significant contributions to the flourishing economy of the Emirates were given recognition.
F
O
O
D
&
D
R
I
N
K
Delta Food Industries’ CEO, Shiraz Daud Osman has watched the Company he established alongside friend, Ali Parpinchi rise to the top of the sector in Dubai, creating strong business partnerships and customer loyalty along the way
Now, firmly driven by its newest and most significant of additional plants, Delta Food can cast an eye to a future which will also incorporate a stronger emphasis on vertical integration by establishing a plant to manufacture its tins; the Company’s primary packaging material. By doing so, the turnkey offering will be almost complete, the appeal to
customers will reach new levels on a broadened scale, and the Company will have come true on a promise which was first laid out by the founders back in 2011. “Delta’s USP is the manufacturing of goods in private labels, so not marketing the Delta brand on the packaged products; a strategy which most competitors don’t entertain,” Osman concludes. “Delta aims for quality
production and timely disposition of deliverables, and these are the key factors that establish trust and credibility with our partners and customers. “Delta is quick to recognise the customer needs and expand its portfolio of products to satisfy these market demands.” www.deltafood.ae
WWW.AFRICAOUTLOOKMAG.COM
131
ame T H R E E
S T R E A M S
H O L D I N G S
CELEBRATING
25
( P T Y )
YEARS
L T D
OF
Sustainable Aquaculture With global aquaculture estimated to reach 80 million tonnes by 2050, Three Streams is expanding its operations to meet demand in a sustainable manner and maintain its mission to provide a premium quality end product Writer: Emily Jarvis • Project Manager: Chris Marsh
132
WWW.AFRICAOUTLOOKMAG.COM
F
O
O
D
&
D
R
I
N
K
aving been present in the aquaculture industry since 1990, Three Streams has experienced firsthand the need to address the intensifying demand for quality fish products in sub-Saharan Africa, through its involvement in the entire value chain; including research & development and distribution of marine fin-fish. Celebrating its 25th anniversary this year, the Company has witnessed healthy and steady growth of its business in line with increasing demand for aquaculture production; helping to build a market that was virtually non-existent a few decades ago, into a thriving mainstream retail, wholesale and foodservice industry. “Supported by my two brothers, Andrew and David, we were able to embark on an ambitious strategy of vertical integration with a concerted focus on supplying a quality product. Rather than trying to be a price-setter, the business was designed to recognise the need to remove pressure on the ocean’s dwindling resources by establishing sustainable fish farming activities and value-added services such as smokehouses and hatcheries,” explains Gregory Stubbs, Chief Executive Officer of Three Streams. Now with a footprint spanning beyond South Africa into Zimbabwe and the highlands of Lesotho, Three Streams has created a better economy of scale for the business, creating fruitful partnerships that add value through sustainable fish farming practices. “The future of fish farming and production requires continuous investment back into the Company, and keeping a close eye on the latest industry trends and regulations and training our staff to uphold these standards in order to maintain customers for the long-term,” he adds.
WWW.AFRICAOUTLOOKMAG.COM
133
T H R E E
S T R E A M S
H O L D I N G S
( P T Y )
L T D
Identifying potential
Through its closely-linked divisions spanning the whole lifecycle of fin-fish, Three Streams has been adapting to the aforementioned increase in demand by growing its salmon and trout operations across Africa. Stubbs highlights: “Since our working with Nynga Trout Farm in Zimbabwe, we have been on a mission to completely turn the previous operations around and draw attention to the true potential for trout production and supply in the country.
Three Streams Value Chain Three Streams Salmon and Trout South African hatchery and juvenile supply company producing 1.6 million fingerlings a year Three Streams Smokehouse The leading processing facilities for salmon, trout and seafood products in South Africa Katse Fish Farms joint venture Lesotho’s premier trout farming operations in the Highlands and trades under the Royale Highlands Trout brand SCANSA TRADE One of the largest suppliers of smoked salmon and other seafood to the food service industry and all major retailers Cape Trout Black economic empowerment (BEE) trout farming and eco-tourism initiative promoting social upliftment in the farming communities
134
WWW.AFRICAOUTLOOKMAG.COM
Gregory Stubbs, CEO of Three Streams Holdings
F
O
O
D
&
D
R
I
“It is an exciting process to research the potential to grow salmon and trout in new sites across Africa, but is one that is costly and sometimes does not bear fruit.” When investment does pay off, it can yield great results; with one such example being Katse Fish Farms (KFF) in Lesotho; which Three Streams has a 35 percent shareholding in. “KFF was a way to expand production relatively close to our South African operations, and, working in tandem with other investors, the Company has become the premier supplier of the Royale Highlights Trout brand,” he adds. Aligning with the world’s sustainable fish farming goals and regulations, KFF is just one example of Three Streams’ good farming practices. Stubbs further details: “KFF is all about quality, both in terms of quality of life for the trout, and the subsequent final product. Low stocking densities of one percent fish to 99 percent water allows our fish to grow strong, lean and healthy. Moreover, we make sure that all our stock is traceable from the egg to the plate, grown by one of our proven sustainable farmers. “As a result, KFF has now reached the right quality and right pricing to satisfy the current demand in South Africa and Lesotho; so we are now looking towards new market opportunities outside of Africa, such as in the Middle East.” In order to make sure that its supply of fish is consistent with its expansion plans, Three Streams is planning a significant upgrade to its juvenile trout hatchery operation in South Africa, targeting a healthy production figure of 1,200 tonnes of large trout a year. “And we will also continue to implement the relevant technologies to complement our processing activities, such as automated brining, portioning and washing equipment, and working with the likes of Marel to implement the right technical equipment and software
N
K
• cold rooms • freezer rooms • cold/freezer room doors • repairs & maintenance • refrigeration services
tel: 021 975 4290 www.evercool.co.za
industrial & commercial thermal insulation specialist
5 Pastorale Street Durbanville Industrial Park Durbanville, Cape Town, South Africa.
QUALITY FRESH FISH
DESERVES
QUALITY
PROCESSING Contact us: Marel South Africa JHB: Tel: +27 11 823 6940 CPT : Tel: +27 21 975 5503 DBN: Tel: +27 82 602 9022 marketing.za@marel.com www.marel.co.za
WWW.AFRICAOUTLOOKMAG.COM
135
T H R E E
S T R E A M S
H O L D I N G S
( P T Y )
L T D
Trout grow-out pen at KFF on Katse Lake, Lesotho
that makes a meaningful difference to our operations,� he says. Additionally, and amongst other regulatory achievements, the business operates to Marine Stewardship (MSC) and Aquaculture Stewardship (ASC) certification standards; the latter accreditation is not yet available in South Africa, but is considered a world best practice in eco-standards that has taken huge amounts of time, investments and effort to maintain.
136
WWW.AFRICAOUTLOOKMAG.COM
Realising growth
With the health benefits of fish becoming further acknowledged around the world, all signs point towards aquaculture remaining steady as one of the fastest growing food industries in the world; with Africa representing one of the frontrunners as a continent with the greatest potential for the fastest growth. Three Streams sees itself playing an active role in this outlook, leading the way in terms of setting the benchmark for quality high; leveraging its experience with trout and salmon primarily, and
F
O
O
D
&
D
R
I
N
K
Celebrating 25 years of processing: Greg Stubbs with Chef Matthew Gordon and Executive Chef Pieter de Jager
translating this into a much wider species portfolio and geographic spread. Stubbs emphasises: “Africa is a very different place to operate in comparison to other markets around the world, but the continent has amazing potential for us to grow. International companies are often blown away by our efforts to go the extra mile, and we want this to remain the case for the foreseeable future. “It is our commitment to continued reinvestment into the Three Steams business which has allowed it to grow.
By investing in a 99 percent local workforce and management teams, gradual growth in line with demand and some of the most recognised industry accreditations and quality standards, the Company has been able to establish a strong footprint in one of the fastest growing industries in the world. He concludes: “In September, our team proudly celebrated the Company’s 25th anniversary at Leopard’s Leap Winery, emerging more energised and more focused than ever on reaching the next growth milestone.”
Whole Royale Highlands Trout from Katse, Lesotho
WWW.AFRICAOUTLOOKMAG.COM
137
ame C O R N E R
B A K E R Y
Retail Taking a Share of the
Pie
In five years, Corner Bakery grown its convenience food business into the fourth biggest retail chain in South Africa, with more than 640 stores in the country today and a sizeable portfolio of food & drink products Writer: Emily Jarvis • Project Manager: Chris Marsh
elling more than one million pies every month and creating more than 2,000 jobs through its franchisees, Corner Bakery has cemented its reputation as a fresh food and confectionery provider, baking products on-site daily to the highest food hygiene and safety standards across the franchise. Complementing the sale of pies and baked goods is a new range of Brazilian coffee from the Equatorial Coffee franchise brand.
138
WWW.AFRICAOUTLOOKMAG.COM
Corner Bakery recently passed the 640 store mark, making the up-andcoming franchise Group the fourth biggest retail chain in South Africa in terms of store numbers, and one of the biggest local business success stories in the country. “We are dedicated to bringing you our wide range of products every day with extra convenience to suit your schedule at the kind of prices that suit your pocket,” says the Company. Holding Company, Retsol’s Chief Executive Officer (CEO), Wayne Duncan is particularly proud of the rapid growth and acceptance of both brands into South Africa’s convenience food & drink industry. “Retsol was started and is still operated by experienced entrepreneurs who are constantly innovating to offer consumers the best products and services in a retail setting,” the CEO states. Since purchasing Corner Bakery in 2007, Duncan has grown the Company from a “franchise by name only” with no franchisees, to one
F
O
O
D
&
with outlets in Engen Garages across not just South Africa, but a further 65 stores spread across Botswana, Namibia, Zimbabwe, Mozambique, Zambia, Reunion and Mauritius. Since signing a management agreement with Engen just under five years ago, with outlets established on Engen service station forecourts that are operated by Engen franchisees, the number of Corner Bakery stores has grown exponentially; with the majority of stores located along the west and east coast with a further 60 inland. Equipped with this efficient and proven franchise model, Corner Bakery is now looking for a handson entrepreneur eyeing success in a fast-moving convenience market as a franchisee.
D
R
I
Additional products
N
K
Although the Company’s core product category is pies - which is particularly well suited to, and in demand at service stations - additional products have been added to complement its portfolio to cater for a range of tastes. Commenting on the reasons for the franchise and franchisee success of the Engen Garages, Gary Milne, Managing Director of Corner Bakery said that “the service station forecourt market is an exciting and unique retail environment and hence a networked solution is important. That means that there’s a need for standardising the right products”. In total, Corner Bakery has more than 2,000 menu items and each franchisee can select between 60 and 100 items so as to tailor each individual
store offering to suit the individual market. “This enables the brand to be both flexible and one size fits all,” added Milne. Duncan and Milne said in a recent article that the success of the Corner Bakery brand within the existing South African market can be attributed to the fact that consumers across all LSM’s (living standard measures) are becoming more sophisticated in their choices. Milne explained: “At the very beginning, pies were the staple product and accounted for between 80 and 90 percent of our business. The Company then began to explore value-add products for the consumer, including the addition of coffee through another Retsol subsidiary - the Equatorial Coffee brand - subsequently
WWW.AFRICAOUTLOOKMAG.COM
139
C O R N E R
B A K E R Y
Corner Bakery offers a whole host of sweet and savoury products including pies, sandwiches, burgers, donuts, muffins, pastries, breads and much more
growing the product offering. “We found out very quickly that, in the convenience food space, there is a strong correlation between buying food and beverages. To exploit this synergy, Corner Bakery has offered a number of combination coffee and food promotions.” Nevertheless, pies still dominate the menu and together with other fast-food items, now account for 50 percent of turnover.
We are growing sales aggressively. So far, growth has been organic. Revenue has come through the existing market as well as product innovation
After enhancing its product range with value-add food & drink products, Corner Bakery partnered with Rhodes Food Group to create its own, larger 210 gram (g) pie; compared to the standard 170g and 180g pies that were available before. These new pies were launched at the same price point and with the same stamp of quality Corner Bakery is known for. Another recent success has been the introduction of Pie Bites™ – smaller mini pies of between 35g and 50g, which are sold in packs of three. “Still within the pie category, Corner Bakery has introduced the Big Shot Burger Pie™, which is effectively ‘the Big Mac’ of pies. This has quickly taken its place among the brand’s top five products,” highlighted Milne.
New geographies
As the emerging middle-class continues to offer promise for the convenience food & drink industry, Corner Bakery has adopted an
140
WWW.AFRICAOUTLOOKMAG.COM
F
O
O
D
&
D
R
I
N
K
We also specialise in: We also specialise in: Cold and Freezer Cold and Freezer rooms Displayrooms refrigeration
Display (selfrefrigeration contained) (self contained) Canopy extractions Canopy extractions Flu pipes for bakery Flu pipesovens for bakery ovens Underbars
Underbars Stainless steel tables StainlessSinks steel tables Fryers Sinks Bain maries Fryers Tilting pans Bain maries Industrial stoves Tilting pans And manystoves more Industrial stainless steel And many more products stainless steel
products Proud to be associated with Retail Solutions (Pty) Ltd as a preffered supplier of Catering Refrigeration Equipment Proud to be associated with Retail Solutions (Pty) Ltd as a preferred supplied of Catering and Refrigeration Equipment
Proud to be associated with Retail Solutions (Pty) Ltd as a preferred supplied of Catering and Refrigeration Equipment
Equatorial Coffee uses only the finest Arabica and Robusta beans from all along th equator; namely Brazil, Guatemala, Tanzania and Ethiopia. These beans are brought back home, freshly ground and brewed together to produce a great cup of coffee in under 60 seconds
expansion strategy to take the brand beyond its current geographies; targeting the addition of stores in the DRC and Gabon, as well as increasing the total store count across the entire African continent. In the past few years, Corner Bakery’s turnover growth has averaged 20 percent year-on-year and Duncan is confident that the franchise will continue to register double-digit growth for the near future. “We are growing sales aggressively. So far, growth has been organic. Revenue has come through the existing market as well as product innovation,” Duncan explained in a recent interview. Supported by a vertically integrated supply chain and facilities in Cape Town and Durban, the Company will also be adding a further factory in Johannesburg early next year, in a bid to cater for its expansion plans and grow the franchise into new regions.
WWW.AFRICAOUTLOOKMAG.COM
141
ame G H A N A
N A T I O N A L
P E T R O L E U M
C O R P O R A T I O N
Harnessing Petroleum Resources for Ghana’s
SUSTAINABLE
GROWTH Ghana National Petroleum Corporation is fulfilling its role as a governmental driver of economic sustainability by bringing the very best standards to the country’s oil & gas evolution Writer: Matthew Staff Project Manager: Eddie Clinton hana National Petroleum Company (GNPC) continues to fulfil the needs of a nation in meeting governmental expectations amid challenging industry conditions. As a corporation 100 percentowned by the Ghanaian government, it is responsible for the provision of commercial oil & gas, both onshore and offshore, and was created to promote the country’s objective of supplying adequate and reliable petroleum for the country and the discovery of crude oil across all the nation’s regions.
142
WWW.AFRICAOUTLOOKMAG.COM
Established as a state-owned Company, the mandate was and remains simple; to engage in exploration, production and disposal of petroleum products. And, for a country and indeed region that relies so heavily on the industry, the pressure to adhere to these functions in an innovative, diverse and socially responsible way is something that GNPC has strived for since its inception. “The Corporation has amongst it functions to promote petroleum exploration activities, to appraise existing petroleum discoveries, to ensure that Ghana benefits the most from the development of the country’s petroleum resources,” its Wikipedia page aptly explains. “The Corporation promotes the training of Ghanaians in petroleum-related activities and ensures environmental protection in all petroleum-related activities.” After six years of establishing commercial crude oil quantities, the country’s oil fields - known as Jubilee Fields - were finally entered for production in late 2010, with the Corporation enjoying a controlling stake in all active oil wells. Further expansions from this initial western foray were later witnessed
O
I
L
&
G
A
S
WWW.AFRICAOUTLOOKMAG.COM
143
G H A N A
N A T I O N A L
through a new oil discovery at the Paradise offshore project - discovered by US Company, Hess Corporation with GNPC subsequently lifting more than 135,000 metric tonnes. “This represented crude oil on behalf of the Ghana Group, comprising the Government of Ghana (GoG) and GNPC,” a report says. “It represented the first lifting of crude oil from the Jubilee fields. The barrels lifted comprised accumulated government royalties of 37,557 metric tonnes and accumulated GNPC’s 13.75 percent participating interest entitlement of 98,119 metric tonnes.”
P E T R O L E U M
C O R P O R A T I O N
GNPC lifted more than 135,000 metric tonnes of oil for the Paradise offshore project
barrels of oil and 170 million cubic feet of gas a day, capable of generating This set the tone for the following four close to 1,000 megawatts of power. years of activity in the country, and the First oil from the field is expected in snowball effect that has occurred has August, 2017, while gas production will culminated in 16 new projects in the commence in February, 2018. GNPC pipeline at present, as well as With global sector heavyweights, having completed a few already. Eni and Vitol as operators and GNPC as In line with this, the Company has the leading partner, the aim behind the had to refine its own internal capacities major project is to produce substantial as well; subsequently opening a gas to power Ghana’s thermal energy subsidiary office in the country and plants for at least the next 20 years; also identifying the possibility of signifying the kind of sustainability moving into exploration in the near and longevity that GNPC is designed future. All of which will facilitate even to instil. more extensive operations moving Comprised within this key forward, such as the recently approved philosophy is the appeasement of US$7.9 billion Sankofa-GyeNyame gas any negative effects that stem from project. such invasive and extensive industrial The integrated project, when activity, but this project has proved completed, will produce 80,000 to be a prime example of the financial
Sankofa-GyeNyame
benefits being enjoyed by rural communities as a consequence of such projects. GNPC and its Partners in the Offshore Cape Three Points (OCTP) block, Eni Ghana Exploration & Production Limited and Vitol Upstream Ghana Limited, have paid an amount of US$1.6 million in compensation to land and property owners in Sanzule, in the Elembelle District of the Western Region. The amount paid formed part of the processes to secure 237 acres of land to serve as the site to host an onshore gas receiving plant, dedicated to the project. As many as 205 claimants made up of 175 crop farmers, 14 building/ structure owners and 16 fish pond owners, received an amount of US$1 million, while the remaining $650,000 was used to pay families and clans, as land lease compensation, for a period of 30 years.
Build national capacity
Local enablement and enrichment is the bedrock on which GNPC was originally built
146
WWW.AFRICAOUTLOOKMAG.COM
Local enablement and enrichment is broadly speaking the bedrock on which GNPC was built, with the economic benefits of having a professionally and successfully functioning oil & gas representative pivotal to the country’s ongoing development. This isn’t to say that there haven’t been challenges from a local perspective, with the lack of
A STRONG PARTNER FOR GHANA DEVELOPMENT Since 2009, International Paint has upgraded the protective and marine coatings market in Ghana with the latest state-of-theart technology. With the advent of oil exploration in Ghana, the requirement for protective and marine coatings has increased and International Paint came in to supply the best suitable portfolio for the various sectors. As part of AkzoNobel, the leading global paints and coatings and a major producer of specialty chemicals, International Paint has been the leading global supplier in the following PC segments: infrastructure, mining & minerals, oil & gas, original equipment manufacture, power and water & wastewater. Apart from PC, International is a major player for Marine coatings as well. As a display of its pioneering technology, AkzoNobel has just won a prestigious innovation award from ICIS for the launching of a biocide-free anti-slime coating, which helps ship owners to save fuel and cut emissions. The ICIS Innovation Awards recognise outstanding technological and business innovation in the chemical industry. In Ghana, International, both Marine and Protective Coatings have cooperated with strong partners in various projects, such as: • Sinopec International Petroleum (Atuabo Gas Project). • Bui Hydro Power Project. • Tank Farms (Chase Petroleum, Total Ghana Ltd.) • Modec Ghana Ltd (Modules for the 2nd FPSO). • Dry Docks (Fishing Vessels, Tuna Vessel and Supply Vessels)
Around the world, when industry requires high performance protective coatings, it turns to the experience and expertise of International Paint. With operations in over forty countries across six continents, International Paint is the global provider of asset protection through technology based on extensive and unrivalled research and development. Manufacturing products in 21 factories in 19 countries, International Paint has developed an advanced product range to protect steel substrates at new construction and maintenance, in a wide range of aggressive environments and industries. International’s worldwide product range provides products that will have the same formula and product data sheets, everywhere in the world. This is the assurance that, no matter where the customer’s project is, whether in Ghana or Norway, International will always provide the best quality product. Aware of its role as an industry leader in product development and product quality, International Paint sees its responsibility to take the lead in helping its customers, all over the world, to specify safety conscious and more environmentally conscious coatings. Ecotech is International’s global initiative to promote the increased use of environmentally conscious coatings. Further development of both water-borne and high solids technology goes towards achieving such aims. International Paint is distributed by Coral Paints Ghana, the sole representative of Akzonobel for Ghana, Togo and Burkina Faso.
T +233 302 222 012 E sales@coral-ghana.com
G H A N A
N A T I O N A L
P E T R O L E U M
C O R P O R A T I O N
VDCOM AFRICA LTD
I
ncorporated in February 2009, VDCOM Africa Limited is a trusted ICT solution provider in Ghana, providing local and national communication services to enterprise, government and customers. Some of our products include PBX, IP PBX, Bulk SMS Gateways, and data security products. VDCOM has one of the best integrated radios in the world, 130 km range, LOS, that come in point-to-point (PTP) and pointto-multipoint (PTMP) models to link and connect your offices.
GNPC currently has 16 projects in the pipeline, in addition to those it has already completed
skilled industry professionals causing problems over the past few years, but GNPC has both overcome these and improved the situation by carrying out training in-house and by instilling a strong internal promotion culture within the organisation. Additionally, the Corporation has also recently launched its Learning Foundation in an attempt to both drive and support capacity development in the industry and country. Unveiled in April from its head office in Accra, the Foundation was announced as an “autonomous entity set up to give better institutional focus to GNPC’s contribution to build national capacity in oil & gas sciences, policy, management and operations; in order to achieve national ‘local content’ aspirations”. The Company’s website continues: “The Foundation is pursuing strategies in support of individual and institutional initiatives designed to build capacity holistically across the oil & gas industry value chain.” The GNPC Oil & Gas Learning Foundation called for applications from eligible Ghanaians wishing to benefit from its scholarship and grant scheme to pursue studies in geosciences, petroleum engineering, engineering, and a vast range of complementary oil & gas related disciplines.
148
The applicants were required to be no older than 35-years old and could choose either a Master’s Degree or Doctoral PhD programme, and perhaps most importantly, were encouraged to demonstrate a commitment to utilising their subsequent qualifications in Ghana in the future.
WWW.AFRICAOUTLOOKMAG.COM
VDCOM is a one-stop shop ICT company that has delivered on its promise over the years to its esteemed customers including Ghana National Petroleum Corporation and Ericsson Ghana. We aim to grow from strength to strength with our comprehensive portfolio of products from our valued partners abroad. Doing business with VDCOM Africa is the surest way to move your company to the next level ahead of your competitors.
Frontline communities
...the Corporation has also recently launched its Learning Foundation in an attempt to both drive and support capacity development in the industry and country
GNPC’s influence on the education sector certainly doesn’t stop there either, and is complemented by its equally prominent corporate social responsibility activities. In November, 2015, the Company once again teamed up with Hess Ghana Exploration Limited to award 125 scholarships to “brilliant but needy” students, as part of the HessGNPC Scholars Programme. The number selected for 2015 marked a 25 percent increase over the previous year’s allocation, and brings the total number of beneficiaries to date to 396. The scholarship fully covers the entire government-approved costs (boarding fees, administrative fees, books, kits, uniforms) and other auxiliary costs for each individual, and is something that GNPC’s Chief Executive, Alexander Mould feels is imperative to the ongoing
O
I
L
&
G
A
S
VDCOM Africa Ltd
The choice of a good brand of products cannot be under estimated in this technological era. At VDCOM Africa Ltd, with our guaranteed competency and credibility, we liaise with the best companies in the world in the ICT sector to give our customers the best technology that catapults their businesses to the next level. Cell: +233 24 498 7937 / +233 26 453 1726 Tel: +233 50 642 3682 Email: pawume@gmail.com Loc: Malejor, Near Valley View University, Dodowa Rd.
development of the sector in Ghana. “Our frontline communities are dear to our hearts and we ensure that our social investments are well targeted to achieve the best outcomes. The scholarship is supporting the most disadvantaged in the coastal districts of the Western Region,” he said. A further statement emphasised that the government was keen on building a robust oil & gas industry and recognised scholarships such as these as essential in augmenting the Corporation’s efforts towards achieving that goal.
Voice and Data Communication are key to the growth of any serious business. At VDCOM, we propose the best solutions to our clients implement and support those solutions to their total satisfaction.
Our frontline communities are dear to our hearts and we ensure that our social investments are well targeted to achieve the best outcomes
Charity isn’t solely restricted to the core industrial domain wither, with healthcare also firmly falling under the umbrella of wider community engagement; something which has been seen in late 2015 through the rescuing of Korle-Bu Burns Centre’s intensive care unit (ICU). GNPC’s board of directors gave approval for the organisation to invest in the Centre in June and, once fully operational, it is expected that the rate of survival at Korle-Bu will increase from below 40 percent to as high as 90 percent; based on similar investments seen in other developed countries. A willingness to carry out such extensive investments with long-term benefits has been the platform on which GNPC has built its success in recent years, and with the full backing of concerted governmental initiatives behind its future ventures, Ghana can expect to reap the benefits of the Corporation’s ever-evolving stature for many more years to come.
WWW.AFRICAOUTLOOKMAG.COM
149
ame E D E N D A L E
H O S P I T A L
Making Significant Strides in 2015 Edendale Hospital has continued to invest and innovate this year following a R237 million grant and subsequent renovation of both medical and administrative facilities Writer: Matthew Staff Project Manager: Eddie Clinton
150
dendale Hospital has made great strides over the course of 2015 as it continues to affirm itself as one of the leading medical pioneers in the KwaZulu-Natal province of South Africa. Having achieved a score of 90 percent in the latest National Core Standards assessment, the institution’s rise from humble beginnings has arguably been completed from an outside perspective but, from an internal point of view, the Hospital’s development is far from done. An ongoing commitment to continuous improvement and remaining ahead of, or at least in line with, global medical care processes has
WWW.AFRICAOUTLOOKMAG.COM
culminated in yet another proactive 12 months of capital expenditures, knowledge sharing, treatment enhancements and, most importantly, patient care improvements. Urolology and ophthalmic services have both seen service expansion, while Edendale’s Emergency department has also benefitted from new technologies and machinery to enhance diagnostic aspects. Two further ward upgrades, the installation of 256 network points to enhance tech access around the hospital, and the implementation of additional CCTV cameras to improve security are further evidence of what can be achieved in just one year, and are all part of a general R237 million
H
E
A
L
T
grant from the Department of Health (DOH). “Capacity increases will occur through the DOH Revite programme while other projects have followed on from this as a result of the hospital needing a revamp because of its ageing infrastructure,” explains Edendale’s Chief Executive Officer (CEO), Zanele Ndwandwe. “It consists of a fire detection system, electrical reticulation upgrade, new linking bridge, provision of decanting space, an upgrade of the dental unit and various structural upgrades to our buildings. “These projects are very significant because it will solve a lot of our space problems and enable us to be
H
C
A
R
E
compliant in terms of the National Core standards in preparation for NHI implementation.”
Better treatment
Beginning in earnest in late 2015, these projects will cover a three year cycle which will no doubt see a plethora of further investments and introductions to maintain the momentum that has been gained in recent years. Looking back to the beginning of the year gives as clear an indication as any as to the extent of continuous development that needs to occur in order to not only meet minimum expectations, but to react in time to industry progression for the good of the regional population.
Zanele Ndwandwe, Chief Executive Officer
WWW.AFRICAOUTLOOKMAG.COM
151
E D E N D A L E
H O S P I T A L
The importance of research and development, and the sharing of international knowledge have transpired in the form of an improved maternal, infant and child health unit over the past 12 months, while one of its core focuses in the form of HIV care has been addressed once again by an increase in counselling and testing uptake. “We also wanted to ensure early detection and improved management of non-communicable diseases through improved ophthalmology services,” Ndwandwe says. “We have increased cataract surgery rates from 672 in 2014 to 941 as of today, and it is supported by the implementation of our Vision 2020 strategy with better treatment guidelines for eye conditions and evidence of compliance within these guidelines.” Oral health has also been a pivotal part of Edendale’s 2015 agenda via the strengthening of its internal and school health services, while protocol surrounding mental health has also been given an upgrade from a management perspective. Rehabilitation services, a strengthening of PHC services and a reduction in the number of fatalities and complications arising from trauma and violence completed Ndwandwe’s targets for 2015, but still only represent a portion of the expenditures injected into the Hospital’s evolution this year.
Edendales’ Health Unit has targeted improvments to HIV care, with an increase in counselling and testing
Improved governance
We have increased cataract surgery rates from 672 in 2014 to 941 as of today, and it is supported by the implementation of our Vision 2020 strategy with better treatment guidelines for eye conditions and evidence of compliance within these guidelines
154
WWW.AFRICAOUTLOOKMAG.COM
Behind the scenes, an equally significant array of improvements have been made to the hospital’s wider infrastructure, both complementing the investments going into ward upgrades and capacity increases, and facilitating the extensive medical enhancements being introduced across each department. These tweaks to the Hospital’s existing processes and systems are subtle across each standalone
Dr Sbu Mhlambi Managing Director
Masentle Rangoako Sales Consultant
I
Vusa Tsekiso Finance Manager
cembe Medical™ is a manufacturer, marketer, distributor and seller of quality medical devices. This well-established and respected brand in the South African public health sector is set apart by the organisation’s passion to make a tangible difference to the health and welfare needs of everyday South Africans. The company that is majority black owned, controlled and staffed, has created, since its establishment in 2005, an enabling environment - Icembe Employees Trust was launched awarding 10% of its shares to its employees, other shareholders include Corez Investments (Pty) Ltd (80% shareholding), the global advanced medical devices company Smith & Nephew (Pty) Ltd (10% shareholding).
Icembe Medical’s pride and joy is the company’s locally designed and manufactured oscillating autopsy and orthopaedic saw which was launched in the forensic pathology South African market in November 2015. Back in 2014 Icembe Medical™ identified a gap in the market for the supply of locally designed and manufactured post-mortem equipment to local forensic pathology facilities. This signified a strategic step towards the development of Icembe branded products for this market. The first product to come off the production line, is the post-mortem oscillating saw – Ubomi™ OS3000 – which was meticulously designed and developed around the needs and ease of use by pathologists and mortuary assistants.
The business of Icembe Medical™ in the industry involves distributing wound care supplies to hospitals, management incubator services to emerging Small and Medium sized enterprises in the medical industry, and innovating on manufacturing, and distributing medical equipment.
Ubomi™ OS3000 oscillating autopsy and orthopaedic saw’s unique features include its power efficiency, user friendliness and it is super-fast.
www.icembe.co.za
E D E N D A L E
H O S P I T A L
area, but become a concerted, allencompassing overhaul of its methods when analysing the full list of actions taken over a 12-month period. “Firstly, we ensured the implementation of referral protocols, strengthening our outreach programmes, while improving coordination of referrals,” Ndwandwe notes. “Improved clinical governance has also occurred through ensuring full functionality of clinical committees, the availability of appointment letters and registers, and through ensuring that morbidity and mortality reviews are being conducted.” Pharmacy and therapeutics, functional disaster management, blood transfusion, and functional research committees have also been put in place to further hone in on clinical governance in key areas and are backed-up by similarly pivotal governance refinements across audits, awareness campaigns, a rebranding and improved community involvement; all of which have been overseen by a
On 20 August 2015, the Hospital was visited by the delegation from the National Parliament Oversight Committee for the purpose of establishing progress and fulfilment of the commissioned projects. Pictured: the delegation and the KZN Provincial Health Department Principals, joined by the Edendale Hospital CEO, walking out of the newly-opened Emergency department and Communicable Disease clinic and pharmacy
156
WWW.AFRICAOUTLOOKMAG.COM
Improved clinical governance has also occurred through ensuring full functionality of clinical committees, the availability of appointment letters and registers, and through ensuring that morbidity and mortality reviews are being conducted
more functional Hospital board. HR and financial management remained an area of focus in 2015 as it has done in the past, alongside improved supply chain management processes, asset management and revenue management; paving the way for even the most seemingly insignificant areas of hospital life to be addressed as a consequence. Everything from laundry to cleanliness, waste management and IT has been incorporated within Edendale’s yearly strategy. Already planning for 2016, Ndwandwe hopes to complement these administrative and internal process enhancements even further via an upgrade to the Hospital’s electronic patient record system, as well as more stringent monitoring of litigation cases which come about as a result of medical errors. From a clinical perspective, “our
H
E
A
L
T
H
C
A
plans are to see the completion of the ED/ OPD departments and to make strides into our plans for a midwifery obstetric unit (MOU) as well as an waiting mothers lodge for women with high risk pregnancies”, Ndwandwe says. Continually exploring the possibility of change and improvements is what has stood Edendale Hospital in such good stead over the years, and it is not just the patients who are noticing the benefits of this proactive, unwavering approach.
First prize
In 2015 alone, Edendale has been rewarded for numerous facets of its overall operations, as Ndwandwe adds: “At MEC’s Service Excellence Awards, Edendale Hospital was honoured to receive three awards in May; including a bronze award for National Core Standards, and first prize for Best Practice and Innovation. “At the District Service Excellence Awards, we were honoured to receive an award on the National Core Standards including our referral clinics.” Incorporating individual honours within
R
E
Our Commitment We believe our first responsibility is to the doctors, nurses and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.
Edendale Hospital team receiving the Gold Award from the Honourable Premier Mr S.E Mchunu in a prestigious ceremony held in ICC Durban on the 16 July, 2015
2015’s portfolio among the Hospital’s physicians, the accolades didn’t end there either, with Premier’s Service Excellence Awards also recognising Edendale’s accomplishments by naming the Hospital as a gold winner for the Best Public Service Creative/Innovator on its Kangaroo Mother Care BeadieBeadie project. The latest National Batho Pele Excellence Gold award was also received by Dr. R Wise, Head of Clinical Unit: Critical Care for saving blood and saving lives; an innovative project which was named the best implemented of 2015. Empowering mothers with craftwork skills through a series of internal donations is yet another example of the enrichment that Edendale Hospital continues to engrain into its processes and the wider community, as it looks towards yet another year of bettering itself for the benefit of others.
WWW.AFRICAOUTLOOKMAG.COM
157
ame G O O D
T I M E
S T E E L
Z A M B I A
Good Time Steel has made significant investments in strengthening its facilities and subsequent product offering in order to better meet the needs of its customers in Southern and Central Africa Writer: Emily Jarvis • Project Manager: Joe Palliser
fter opening a new branch in Kitwe in September, 2015, Good Time Steel (GTS) Zambia has been widening its geographic reach and expanding its facilities in order to provide an increasingly diverse range of steel products to copper belt clients and Zambia’s eight neighbouring countries in the most efficient and flexible way possible. Commencing production from a greenfield factory in January, 2008, GTS has become the second largest
158
steel-producing Company, now equipped with a 40,000 square metre workshop facility situated in Lusaka’s heavy industrial area on Mungwi Road. GTS was formed to fill a gap in the market and represents one of the biggest privately-owned Chinese investors in Zambia today, having spent more than US$100 million on its continuous improvement to date. “Since inception, we have established an impeccable record in the manufacture of reinforced steel for the construction industry, providing a reliable service backed by our
WWW.AFRICAOUTLOOKMAG.COM
reputation among the most recognised and well-known leaders across the construction industry,” says Jacky Huang, Managing Director of Good Time Steel Zambia.
Country-leading products
In the past two years, GTS has commissioned two plants in a bid to increase its product range and capacities to more than 6,000 tonnes per month, compared to 3,000 tonnes per month previously. “Off the back of our expansion success, we were able to extend our product range into
M
A
N
U
F
A
C
T
U
R
I
N
G
Building Zambia A
B E T T E R
tubes, steel plates, roof sheets, lip channels, galvanised pipes and any other steel fabrication products that a project may require such as window and door frames,” he adds. Investing significant portions of its profits back into the business has strengthened GTS’s reputation as a one-stop shop manufacturer, distributor and wholesaler of steel
products, all certified by the Zambia Bureau of Standards (ZABS). With plans to grow its reach even further, both in terms of industry sector and geographic reach, GTS is now targeting the equivalent qualification in South Africa, in order to be able to better support the two governments in their efforts to construct further hospitals and schools.
In recent years, GTS has taken advantage of Zambia’s landlocked position to export to its surrounding eight neighbours including Namibia, South Africa, Zimbabwe, Tanzania, Malawi, Mozambique, DRC, Burundi, Rwanda and the Great Lakes region. “This has been possible thanks to the government’s focus on creating cross-border partnerships, which has
WWW.AFRICAOUTLOOKMAG.COM
159
G O O D
T I M E
S T E E L
been a crucial contributor to Zambia’s economic growth. Based on the success we have seen from the new Kitwe branch, we are to open a branch in Kasumbalesa near the border of DRC in 2016, designed to improve our flexibility in terms of our cross-border pricing and logistics offering,” he further highlights. Additionally, GTS is to invest US$5 million in a new smelting plant that will increase its smelting capacity by 60,000 tonnes. “Our continued focus
Commissioning tubes plant
Z A M B I A
towards product improvement and consistent high quality will ultimately result in a long-term gain that reduces total cost of ownership in terms of our investments in machinery.”
People management
Representing more than half of Zambia’s steel production, GTS has always placed a concerted focus on its labour force and has been recognised as a leading employer in the industry. Its current workforce of 600 Zambians is complemented by around 50 Chinese expats who are engaged in skills sharing and continuous training to keep the GTS operations running as smoothly as possible. Huang emphasises: “We have some of the best technicians and most skilled workers in Zambia’s steel sector, demonstrating professionalism on every level so as to provide the most efficient production levels and customer service.
We work alongside our local partners, imparting training and expertise of benefit to their own company development, as well as offering financial support. By helping them, we strengthen local businesses
MAJOR PROJECTS > Levy Mwanawasa Hospital, Lusaka > Levy Mwanawasa Stadium, Ndola > Lusaka National Heroes Stadium
Angle bars
160
Galvanized pipes
WWW.AFRICAOUTLOOKMAG.COM
M
A
N
U
F
A
C
T
U
“Moreover, we always give priority to local people when there is a vacancy, which forms part of our longterm plan to maintain a 90 percent local, multi-skilled workforce and an attractive job proposition through maintaining a flat organisational structure.” This local focus extends to GTS’s supply chain, which represents more than 70 percent as Huang further explains: “We work alongside our local partners, imparting training and expertise of benefit to their own company development, as well as offering financial support. By helping them, we strengthen local businesses.” Further supporting the Company’s prestigious local reputation is its aspiration for the best health, safety and environment policy in Zambia’s steel industry; proudly adhering to the laws and regulations of the country to promote sustainable practices, job creation and economic development.
R
I
N
G
Wheel Tyres Services
Contact us: wheels_tyres2008@yahoo.com Tel: 00260 977 405 920
Driving core competencies
Good Time Steel handles more than half of Zambia’s steel production
Equipped with country-leading facilities and a technically-minded local workforce, GTS is keen to continue to grow its products and services in line with changing industry demands. Huang says: “Our long-term plan is to become the leading steel provider in Southern and Central Africa. To achieve this, we will continue to invest in new technology, building a local team influenced by international expertise. We will keep widening our product range and provide the best service levels possible to satisfy clients’ needs.” He concludes: “The new smelting plant is currently on course for completion on-time, and the DRC branch near the border will round-up our current round of investments; allowing us to focus on driving our core operational and production competencies while looking for new investor partnerships to help us continue to overcome economic and industry challenges.”
WWW.AFRICAOUTLOOKMAG.COM
161
ame N U V O
R U B B E R
C O M P O U N D E R S
Compounding
EXCELLENCE After undergoing a recent name change in 2015, NUVO Rubber Compounders has its sights set firmly on advancing its products to stay one step ahead of the competition Writer: Emily Jarvis Project Manager: Joe Palliser
162
pecialising in the manufacturing of natural and synthetic rubber compounds, NUVO boasts an extensive range of compounds for a wide variety of applications across the mining, industrial, automotive, transport and building industries. This year marked the strategic rebranding of Natal Rubber Compounders (NRC) to create a refined and revitalised Company; NUVO Rubber Compounders. The newly formed Company is now almost a year old and has continued to leverage its four decades of experience to deliver on its promise of manufacturing quality products while striving to break
WWW.AFRICAOUTLOOKMAG.COM
new ground in terms of research and development (R&D). “Established in the mid-1970s, NRC has grown into a business that invests not only in state-of-the-art technology and machinery, but in its processes and staff that deliver a quintessential product and service offering that exceeds all expectations,” the Company notes. With its manufacturing facilities strategically located in KwaZulu-Natal – often considered as a hub for South African industry – NUVO has “grasped hold of the reins” since new ownership in 2008 and invested in its continuous improvement and advancement to stay one step ahead of its competitors. “With an affinity toward innovation, the NUVO Group of Companies have advanced, and our progression has not only led to investment in new
M
A
N
U
F
A
C
T
U
R
I
N
G
WWW.AFRICAOUTLOOKMAG.COM
163
N U V O
R U B B E R
C O M P O U N D E R S
technology and equipment, but in the actual brand ideology and identity itself. In early 2015, the Company adopted the name NUVO as a representation of their progress and ability to break new ground in the rubber industry,” the Company highlights. Where others have played safe in terms of pushing the boundaries of innovation and technological advancement, NUVO has exceeded expectations through its customerfocused ethos and capacity to produce both quantity and quality to order.
Enhancing technology
Innovative R&D combined with advanced mixing and laboratory technology has positioned NUVO Rubber Compounders to exceed customer expectations and remain at the forefront of rubber compounding within South Africa and the world. In line with these philosophies, NUVO has recently spent R2.5 million on upgrading its laboratory, commissioning a Montech Rubber
Utilising innovative R&D techniques
164
WWW.AFRICAOUTLOOKMAG.COM
H&R
...the use of NST rotors, over the standard two-wing rotors, leads to compound physical property improvement of up to 12 percent and up to 17 percent improvement in energy efficiency
H
&R was established in 1919 in Hamburg by Heinrich Hansen & Emil Rosenthal. Today, H&R Group has embraced globalization and has subsidiaries in, Africa, America, Asia, Australia & Europe. H&R Group offers a wide product range that services a number of diverse and specialized industries, including the lubricants, tyre/rubber, plastics, cables, printing, packaging, agriculture, personal care as well as cosmetics. In South Africa, H&R SA Sales (Pty) Ltd is an active member of different industry bodies such as IOM3, ROSE, SAIT, COSCHEM & DCC, which allows us to continuously exchange information with our customers and be in a position to quickly and flexibly react to the needs of our customers. All our processes and services are set up in such a way that they are subject to continuous improvement with the aim of maximizing customer satisfaction. Our products not only fulfill market requirements, but also exceed these in part through further developments and innovations, several which are protected by patents. Quality combined with active environmental protection and work safety not only increases our standing, but also our efficiency and allows us to offer branded products of consistently high quality. Research and pioneering developments play a particularly important role in all our product areas. H&R SA Sales (Pty) Ltd has a dedicated shipping staff that ensures delivery safety, delivery reliability & cost control. For us, “just in time” is not a vague term, but a quantifiable duty that we review monthly. Our Durban sidings are strategically located in the busiest port in Africa, Durban, which connect us to the waterways, national roads and key facilities to further ensure on-time & infull product supply next to all the time. At H&R we are not only in the business of selling petroleum based products, we strive to provide customers with the best-fit solutions, thereby helping them connect better with their own customers.
Process Oils Aromatic Paraffinic Naphthenic
White Oils
Wax Emulsions
Technical Medicinal Custom Blends
Timber Board Custom Applications
Base Oils Group 1 Solvent Neutrals Bright stock Custom Blends
White Oils Technical Medicinal Custom Blends
Petroleum Jelly
Tudalen Process Oils Hair Care Skin Care Aromatic Cosmetics ParafďŹ nic Naphthenic
Agricultural Industries WeSpray ServeOils Crop Oil Lubricants Citrus Agriculture Deciduous Fruit Plastic Rubber
Waxes Fully Refined Paraffin Microcrystalline Slack waxes Base Oils Ozone Protection Custom Wax Blends Solvent Neutrals Bright Stock
sasales@hur.com www.hur.com
CONNECTING INDUSTRIES THROUGH CLASS LEADING PRODUCTS & SERVICES Your trusted advisor
N U V O
R U B B E R
C O M P O U N D E R S
NUVO strives to break new ground in the development of rubber compounding and rubber manufacturing technology
Process Analyser 3000 (RPA), which promises to consolidate several processes into one machine, while vastly broadening the Company’s analytical capabilities. The Company explains: “This is a dynamic rheometry instrument with similar basic principles to the more commonly-used Moving Die Rheometer (MDR). Unlike MDR, however, the RPA allows the strain, frequency and/or temperature to be varied in one test.” The RPA provides an invaluable insight into the process ability, performance and cure characteristics of the rubber compound at molecular level, which essentially means it can be developed to be more energy efficient while maintaining the same high quality levels NUVO is known for. Since its new management, NUVO has also commissioned a new Farrel F305 Banbury mixer in 2009, fitted with NST rotors, the latest technology rotors offered by the manufacturer. According to the website, studies have shown that “the use of NST rotors, over the standard two-wing rotors, leads to compound physical property improvement of up to 12 percent and up to 17 percent improvement in energy efficiency”. Furthermore, NUVO is home to a Farrel K6 Intermix fitted with NR5™ rotor technology, and a F305 Banbury which was commissioned in 2010. “These rotors ensure the maximum possible dispersion of ingredients and fillers making it ideal for the processing of technologically advanced compounds,” the Company explains.
IOM 3 conference
NUVO has recent spent R2.5 million on upgrading its laboratory
166
WWW.AFRICAOUTLOOKMAG.COM
Earlier this year, NUVO Rubber Compounders took part in the 22nd National Rubber Conference in Drakensberg to show the international rubber industry how the Company’s new name and state-of-the-art R&D lab investments are propelling the brand towards the cutting-edge of rubber
M
A
N
U
F
A
C
compounding research. During the two days of presentations from various companies and research institutions, NUVO’s Production Manager, Donal Ryan utilised the conference to present his paper titled ‘Optimising Rubber Compound Mixing Conditions, Mechanical Properties, and Batchto-Batch Consistency using a Rubber Process Analyser’. Ryan’s paper was praised and received the award for the best local presentation, further demonstrating the local NUVO team’s commitment to innovation. This is just one example of how NUVO instils a strong spirit of pride in the hearts of each of its employees as the Company notes: “NUVO Rubber Group of Companies is committed to opening doors of opportunity for each employee, through focussed skill advancement and training programmes.”
T
U
R
I
N
G
Proud supplier of
specialised embossed rubber release films and general packaging to Nuvo Rubber Compounders
Tel: +2711 3923728
Email: pgpack@pgpack.co.za
Break new ground
By utilising the very latest mixing equipment in its facility, NUVO has the capacity to efficiently produce up to 2,000 tonnes of rubber compound a month, which makes the Company among the most advanced customer rubber compounders in South Africa today. “NUVO strives to break new ground in the development of rubber compounding and rubber manufacturing technology. Our strict standards of control, skilled technicians and advanced testing methods exceed conventional standards, ensuring uncompromising consistency and quality from one batch to the next,” emphasises the Company. The Group concludes: “Above all, the core philosophy of NUVO is to exceed customer expectations through the use of advanced technology, as well as remaining innovative and streamlined by following sustainable business practices.”
Certified as a result of meeting customer expectations
WWW.AFRICAOUTLOOKMAG.COM
167
ame P P C
Z I M B A B W E
Laying the Foundations for Infrastructure
Growth As Zimbabwe’s largest producer of ordinary Portland cement, and the only local producer of grade 42.5 cement, PPC is ideally positioned to play a leading role in developing the country’s infrastructure Writer: Emily Jarvis • Project Manager: Ben Weaver
168
WWW.AFRICAOUTLOOKMAG.COM
C
O
N
S
T
R
s Zimbabwe’s largest and oldest cement manufacturer, Pretoria Portland Cement (PPC) continues to remain one step ahead of the increasing competition filtering into the local market. With its operational performance buoyed by increased infrastructure projects in Zimbabwe, driven by the government’s concerted focus on addressing the infrastructure gap through foreign direct investment (FDI), PPC is strengthening its production capabilities with the advent of a second manufacturing plant in order to cater for demand. “What is opening up now is private sector participation...The government has come to the realisation that the best way to progress is through FDI, and to become investor-friendly,” stated PPC Zimbabwe’s Managing Director (MD), Njombo Lekula, earlier this year. Some of the major multi-million dollar infrastructure projects taking
U
C
T
I
O
N
Bulawayo factory
place in Zimbabwe today include the refurbishment of the Kariba Dam wall, construction of Kariba South Power Plant and Plumtree-Mutare Highway construction; all of which have been made possible through public-private partnerships (PPPs). To cater for these projects, PPC is spending $86 million on expanding its production facilities to meet increasing demand, as the country’s cement market evolves from mostly cash-in-hand sales for home building and renovation, to renewed maintenance spending on the nation’s infrastructure.
plant in August, 2015, Lekula said the investment in the plant was a vote of confidence in both PPC’s and Zimbabwe’s manufacturing future. “PPC Zimbabwe is looking toward the future of the country, with today’s event providing a promise of things to come. While our existing factory in Bulawayo has positioned us well in Matabeleland, it’s clear that much of our country’s future growth centres around Harare and northern Zimbabwe,” he said. This latest investment in Zimbabwe is part of a rapid ramp-up in the PPC Group’s African investments outside of South Africa in order to remain competitive. While the Company has a continuous improvement policy to support its main South African operations, the Group seeks to garner 40 percent of its overall revenue from the rest of the continent by 2017 in a bid to branch-out and explore more of the continent’s most lucrative markets.
Msasa expansion
Equipped with its new plant in Msasa, near Harare, which is due to be fully completed by 2020, PPC will be able to produce a further 600,000 tonnes of cement per annum, almost doubling the current 700,000 tonne production capacity. Speaking at the groundbreaking ceremony for the
Njombo Lekula, Managing Director
WWW.AFRICAOUTLOOKMAG.COM
169
P P C
Z I M B A B W E
Colleen Bawn Plant in Gwanda, Zimbabwe
While we’ve enjoyed growth in market share, we still maintain an extensive capacity and this compares favourably to the international competition
Indigenisation
After obtaining an indigenisation certificate in 2012, PPC Group has forged ahead of its competitors as a Company that is aware of the importance of local empowerment through local job creation and sustainable development. In Zimbabwe, PPC is in the process of implementing this indigenisation law, which will see an increase in the local shareholding within the Company. Commenting earlier this year on the law, the Company said: “While we’ve enjoyed growth in market share, we
170
Njombo enjoys involvement in daily operations
WWW.AFRICAOUTLOOKMAG.COM
still maintain an extensive capacity and this compares favourably to the international competition.” Since the country adopted multiple foreign currencies, the cement industry has enjoyed a solid recovery and good growth. The market remains challenging however, since 70 percent of the world’s cement production comes from emerging markets, and for Zimbabwe, this means the market has become further saturated with multinational companies who want to capitalise on the country’s infrastructure growth. In spite of this, in 2014, the parent Company’s annual report commended the Zimbabwean operation for recording a fifth consecutive financial year of growth. “Cement volumes were under pressure in South Africa and Botswana, while sales volumes in Zimbabwe continued to improve. “Sales volumes in South Africa were affected by poor economic growth, increased strike activity and above-
C
O
N
S
T
R
U
C
T
I
O
N
average rainfall, while Zimbabwe enjoyed a fifth consecutive year of rising cement demand, albeit on a slower growth trajectory than prior years,” the report said.
World-class
Despite the challenging economic situation in Zimbabwe, the country has witnessed increased construction activity – both on a large and smallscale basis – and PPC is keen to lead the pack and set the standard for a quality cement product. The new plant in Msasa is being built to world-class standards by Chinese Company, Sinoma International Engineering and will feature bulkhandling and palletising capabilities that drive efficiencies and production targets, similar to those introduced at the Bulawayo factory previously. Moreover, PPC has placed emphasis on engaging with numerous local suppliers to leverage the scope of opportunity for value-add services
The experts in moving your trophies and freight from/to Zimbabwe to/from any destination in the world. P O BOX 706, BULAWAYO, ZIMBABWE TEL: +263 9 474154/5/6/7 FAX: +263 9 474151 www.zimbabwe-freight-consultants.com
PPC’s indigenisation certificate has allowed the Group to forge ahead of its competitors when it comes to hiring local people
beyond the engineering, procurement and construction management (EPCM) agreement. With a growing local team who are up for the challenge, PPC Zimbabwe is to continue capitalising on the country’s increasing need for infrastructure and to play its part as Zimbabwe begins to rebuild and resume its role as one of the largest sub-Saharan markets outside South Africa. “As Zimbabwe’s largest producer of ordinary Portland cement, and the only local producer of grade 42.5 cement, we are ideally positioned to play a leading role in developing the country’s infrastructure. We have the equipment, processes and tanker fleet in place and are thus able to handle the bulk deliveries that are vital to these big projects. “As such, we see ourselves as providing not just cement but a total solution to our customers,” Lekula concluded.
WWW.AFRICAOUTLOOKMAG.COM
171
ame M I C R O E N S U R E
Unprecedented
Insurance
MicroEnsure has proved over the past 13 years that it is possible to insure the low-income market and has subsequently thrived off the back of its unique and innovative service provision Writer: Matthew Staff • Project Manager: Callum Philp
172
WWW.AFRICAOUTLOOKMAG.COM
F
I
N
A
N
C
E
icroEnsure has enjoyed an unprecedented rise in registered customers over the past 12 months as a result of its innovative product and distribution approaches, and is already setting its stall for the next 12 months in the low-income insurance bracket across the continent. The increase to seven million customers served in Africa, from the one million accounted for at the beginning of 2014, provides the answer to a question the Company asked itself prior to inception in 2002: “Is it possible to insure the low-income mass market?” A resounding “yes” has been the response from Ghana and Kenya initially, and now from a further eight markets across Africa, through its partner Group model comprising telecoms, banks and other aggregators. With a global headquarters in the UK, MicroEnsure provides a turnkey solution portfolio from its regional headquarters in Nairobi - in partnership with its distributors - for brands looking to use insurance to drive their business: its offering including innovative product design; customised, customerfacing mobile technology; back-office operations; risk management; policy and claims administration; customer engagement; and ongoing product performance management. Marketing Director, Peter Gross adds: “Low-income customers can’t afford to pay the same premium as typical insurance customers, and yet they face greater risk. We found that we could serve this market sustainably by lowering administrative costs, reaching scale quickly, building great products, and preserving trust through fast claims payment. “In the process we uncovered dozens of new ways to provide insurance and we’ve become the fastest-growing provider in Africa by outreach.”
WWW.AFRICAOUTLOOKMAG.COM
173
M I C R O E N S U R E
An additional four million customers around the world in 2015 alone epitomises the freshness and uniqueness of the offering to this segment of the market; something which Gross attributes largely to the high levels of innovation found within the Company. “We’re very much market innovators, in as much as we don’t design products and services in a boardroom,” Gross continues. “We go out to slums, villages and towns to talk to the individuals there to find out what they really need from an insurance product and design it around them. “We also look to provide value to our partners. How can we help their retention levels by developing solutions that their customers really want? What this has done has really put us at the forefront of our market and we’re really proud that we’re being recognised for our efforts.”
We go out to slums, villages and towns to talk to the individuals there to find out what they really need from an insurance product and design it around them
Peter Gross presents a cheque in person to a client, one of many satisfied MicroEnsure customers
174
WWW.AFRICAOUTLOOKMAG.COM
F
I
N
A
N
C
E
Unprecedented insurance products
Managers always try to talk to their clients in person
While the aforementioned segment of customers is one that large, turnkey insurance specialists have traditionally bypassed, it certainly isn’t a small segment, with MicroEnsure accessible to the middle 70 percent of consumers outside of the top and bottom rungs. Subsequently, the Company has managed to not only change the dynamic, but has done so in an extremely lucrative domain following a strong a positive response from the majority of prospective customers existing under this umbrella. Once again though, simply entering the market was never going to work without bringing something equally dynamic, different and ultimately tailored along with it. “Over the years, we’ve created a number of unprecedented insurance products to meet the needs of the mass market,” Gross says. “What we found was that the mass market is
WWW.AFRICAOUTLOOKMAG.COM
175
M I C R O E N S U R E
very well-educated about the risks they face, and they have many ways of coping with those risks. As a result, our best product ideas have always come from our customers. “Today we offer a range of products that are easy to use, from hospital cash products that provide cover at any hospital for any medical reason, property insurance products that protect against any natural or manmade disaster, to life insurance that covers any one at any age, without all the terms and conditions and restrictions that typically lead people to mistrust insurance companies. “We can provide these useful benefits because of the massive scale we reach. We find that scale requires simplicity, but also that scale justifies simplicity as well.” MicroEnsure compounds this collaborative influence via a product design approach which actually encourages change among its customers’ behaviours for its partners also. Gross explains: “For example, Barclays Africa uses our products in four African markets to increase salary accounts. Airtel Africa uses our products in eight African markets to drive customer loyalty and spend, as well as direct revenue. “What we’ve found is that, due to the low penetration of traditional insurance but the high demand for valuable protection from risk, massmarket consumers will reward a brand that protects them in the course of their normal customer relationship. We have shown that insurance does not have to be a “grudge purchase” as is commonly assumed. “The result is a win-win for the brand and the customer. The brand receives increased patronage and the customer receives access to valuable insurance, often for the first time.”
176
WWW.AFRICAOUTLOOKMAG.COM
F
I
N
A
N
C
E
Value proposition
...Barclays Africa uses our products in four African markets to increase salary accounts. Airtel Africa uses our products in eight African markets to drive customer loyalty and spend, as well as direct revenue. Establishing partnerships has expanded MicroEnsure’s customer base faster than others in Africa
Barclays is just one of the numerous globally-renowned brands who have partnered with MicroEnsure in recent years, epitomising the rapid growth experienced by the Company over a relatively short period of time. As a for-profit social enterprise, a shareholding structure comprising the likes of AXA, Omidyar Network, International Finance Corporation and Sanlam has set the tone for a partner portfolio which features Airtel, FINCA, Advans and Opportunity International among its network. “By establishing large partnerships with Airtel and others, and then delivering on those partnerships with fast implementation, we’ve seen our customer base expand faster than any other insurance organisation in Africa,” Gross emphasises. “We were only able to establish those partnerships because we provide unique products supported by the best service in the market, whereas many of our competitors see insurance as a commodity business and compete primarily on price. “We’ve found that the biggest consumer brands on the continent aren’t interested in a commodity offering, insurance or otherwise. They want something new that addresses their customers specifically, and they want to see an insurance provider deliver a service that is helpful and easy to use, and that is key to our value proposition.” Ultimately, MicroEnsure’s positive reputation has derived from a ‘golden rule’; to serve customers in the way that you would want to be served, on a local level in each country of operation. This has been rewarded as such, and becomes a pivotal aspect of the Company’s continuous improvement strategy which requires the business to keep expanding and diversifying in the same way it expects its partners to do. From a capital expenditure perspective, “we have invested
WWW.AFRICAOUTLOOKMAG.COM
177
M I C R O E N S U R E
heavily in the past several years in our back-office technology, to ensure that our quality, speed-to-market, and customer learning engines are up to standard as compared to other mobile VAS (value-added-service) providers”, Gross notes. “We don’t spend money on flashy offices; we’d rather spend money to improve our service offering. “As a result, we were able to launch last year in Zambia with only ten weeks from the first meeting to the launch of the product, and we covered more than two million people overnight. Mobile operators expect that kind of speed when bringing a product to market, in contrast to most insurance offerings which often take months or years to see the light of day.”
Once we learned that wider and deeper forms of coverage were in demand and made business sense, we started to expand our offerings, and we aren’t finished yet. We’re committed to ongoing innovation from year-to-year
Ongoing innovation
As well as the Company’s presence in Ghana, Kenya and Zambia, MicroEnsure has also penetrated into Burkina Faso, Niger, Madagascar, Nigeria, Tanzania, Uganda and Malawi over the past 13 years; ensuring strong local support in each case as a key facet of its commitment to sustainability. People and skills development and
corporate social responsibility efforts further enforce this dedication to long-term enrichment both inside and outside of its core industry operations; laying the perfect foundations for the next stage of MicroEnsure’s rapid rise to prominence. Assessing the Company’s evolution
5.5
billion Although the industry serves 500 million people today, there are another 5.5 billion to reach CEO, Richard Leftley at Financial Times IFC forum
178
WWW.AFRICAOUTLOOKMAG.COM
thus far, the Marketing Director says: “When we started, we weren’t sure what would be possible from a product perspective, so we started small with credit life insurance. “Once we learned that wider and deeper forms of coverage were in demand and made business sense, we started to expand our offerings, and we aren’t finished yet. We’re committed to ongoing innovation from year-to-year.” In terms of services, the Company has expanded into becoming fully mobile in recent times, addressing the latest trends and the realisation that mobile is the future of financial services. “We feel we are on the leading edge of where the industry is headed,” Gross continues. “Looking forward, we already have 10 products to roll out in our telecom markets and over the next three-to-five years I would expect this number to be increasing year on year. “We are constantly innovating and looking at how we can do things better and maybe in a different way to how they are done now, so it’s a very exciting time.” The health domain will form a particularly concerted focus for
F
I
N
A
MicroEnsure in the coming years, while the Company is also looking to capitalise on smartphone penetration and an enhancement of its technological processes. All of this will help to not only build upon the market significance already enjoyed by MicroEnsure, but will set the business up for a drive into the vast potential that still lies untouched around the world. Gross concludes: “Although the industry serves 500 million people today, there are another 5.5 billion to reach, so much work remains to be done, and our approach will continue to focus on ongoing enhancements to product and service offerings, and new areas of innovation in distribution. “We were selected [by the FT/
N
C
E
In 2015, MicroEnsure won the Financial Times IFC Transformational Excellence Award
Peter Gross, Marketing Director
IFC to receive their special 10-year anniversary award for excellence in transformational business] as being the best of the best from the past decade: the Company that stands head and shoulders above all the other winners of the awards; a list that includes most of the world’s largest banks and leaders in inclusive finance. “This is as a result of the monumental effort put in by the MicroEnsure team across the globe and the award really does go to show that we are making a real difference to the people we serve, and is testimony to the phenomenal effort and hard work that everyone has put in over the past 10 years.”
WWW.AFRICAOUTLOOKMAG.COM
179
ame M A E R S K
N A M I B I A
Maersk Namibia has pledged to continue developing products and services that stimulate trade with Namibia, utilising new technologies and methodologies to support this strategy Writer: Emily Jarvis • Project Manager: Tom Cullum
180
WWW.AFRICAOUTLOOKMAG.COM
fter witnessing substantial evolution in terms of its capacity and trade during the past 20 years, the Port of Walvis Bay in Namibia has grown to international notoriety as a growing cargo hub for southern Africa that now handles five million tonnes of cargo per annum. The country therefore represents a vital part of the awardwinning Maersk Line Africa operations, as the Company continues to capitalise on inter-regional and international trade opportunities, edging closer towards integration of both its upstream and downstream service offerings.
S H I P P I N G
&
L O G I S T I C S
NamibianTrade With a presence in Namibia spanning more than 18 years, Maersk Namibia represents one of the largest and most reputable groups operating in the shipping and oil & gas industries today; with the wider Maersk Group reporting profits of $5.2 billion last year. In Namibia, the Company is making concerted efforts to further align itself with the wider Group to consolidate its processes and offer the same seamless service levels throughout its
operations. However, the Company faces many economic challenges that have the potential to hinder growth. “I believe one of the biggest challenges we face along with other emerging markets is to start connecting the dots inland and create efficiencies and cost advantages to move business from landlocked locations into and out of the ocean gateways. When looking locally we need to ask ourselves as members of the community how ready are we as a region
to facilitate more digitised, automated and standardised processes to facilitate cross-border and inter-regional trade,� Maersk Namibia Managing Director, Robert Maslamoney said in a statement last year. The Port of Walvis Bay offers an alternative gateway to southern Africa, including Zimbabwe, Botswana and Zambia, as well as access to the lucrative import/export markets in South Africa.
WWW.AFRICAOUTLOOKMAG.COM
181
Namport NAMIBIA LOGISTICS HUB DREAM Namibia is a country of just over 2 million people and the current developments of our nation’s infrastructure of i.e. new port facilities, new airports, road infrastructure, and rail infrastructure will undoubtedly create the needed competitive edge to realise the dream of becoming a logistics hub for the 300 million inhabitants of SADC. Namibia’s competitive advantage stems from its stable and secure environment, its strategic geographical position, generous amount of land available for development and relatively efficient services. With its deep water depth and stable weather conditions, the Port of Walvis Bay is ideally located to accelerate the growth of Namibia and the SADC region as a whole by providing a gateway to the Region, thus serving as a logistics hub. We are confident that the completion of the new container terminal at the Port of Walvis Bay in 2017 will go a long way in establishing Namibia as a Regional logistics hub and will further support the Namibian government’s stated intention to develop an industrialised economy. For any port, capacity to handle various commodities is key, hence the Port of Walvis Bay’s new container terminal on reclaimed land project, which is Namibia’s biggest ever port construction project since independence, and the project is envisaged to pave the way for the port to more than double its container handling capacity from 350,000 TEU’s to 750,000 TEU’s per annum.
Some of the project details are: • Approximately NAD 4 billion in value • NAD 3 billion loan from African Development Bank • Commenced in May 2014 • Project commission date is September 2017 • Various contractors are used, of which the biggest is China Harbour Engineering Company Ltd • To date the project is 26% completed, and still on schedule • A total amount of just over NAD 1.5 billion has been spent on the project to date • 600 metres of new quay wall is being built, with a water depth of 16 metres
Namport CEO, Mr Bisey Uirab
www.namport.com
tbwa.com.na
DEMOCRATIC REPUBLIC OF THE CONGO
TANZANIA
KOLWEZI LUBUMBASHI
MALAWI
NDOLA
ANGOLA
LILONGWE
LUBANGO
ZAMBIA LUSAKA OSHIKANGO
KATIMA MULILO
ONDANGWA
LIVINGSTONE
TSUMEB
NAMIBIA OTAVI
HARARE
ZIMBABWE
GROOTFONTEIN
OTJIWARONGO
botswana OKAHANDJA
WALVIS BAY
BULAWAYO
MOZAMBIQUE
francistown
GOBABIS WINDHOEK MARIENTAL
GABORONE JOHANNESBURG KEETMANSHOOP
SWAZILAND
AUS
UPINGTON
EAN
IC OC
ANT
ATL
Lüderitz
SOUTH AFRICA
LESOTHO
THE PREFERRED ACCESS TO SOUTHERN AFRICA It is with great knowledge and experience that we get excited by every consignment that comes through our gateway. Though our port has the capacity to accomodate 4 000 vessels, 355 000 containers yearly and handle over 6 million tonnes of cargo, we don’t see them as just numbers. It is the endless possibilities within them that motivates our dedicated team, to deliver the ultimate port experience to our customers. To our customers it’s not just cargo, but their livelihood and we understand that because after all we are also human.
www.namport.com
M A E R S K
N A M I B I A
“It is not good enough to built capabilities on the ocean transport side and not have similar matching capabilities on the land side. A key component of growing intra-African trade is to develop regional trade blocks and break down barriers to trade,” he continued. In line with this, Maersk Nambia has been encouraging the country’s transportation to look closely at not only its shipping freight rates, but also at all other elements in the value chain including transport costs, port costs, border formalities and transit times. “Any asset-heavy company with large balance sheets is aware that there is only so much one can do to create efficiencies and reduce costs. At some point you need to focus on increasing profitability, generating a healthy top line and a reasonable return on your cost capital,” Maslamoney highlighted. Operating from its headquarters at Walvis Bay, the Company has pledged to continue developing products and services that stimulate trade with Namibia, utilising new technologies and efficient methodologies to support this strategy.
184
WWW.AFRICAOUTLOOKMAG.COM
Technology investments
1 billion
N$
Expansion project currently being undertaken by China Harbour Engineering Company
For the past six years, Maersk has been looking closely at its global IT systems in order to streamline its processes across all its operations to address any inconsistencies in service levels. In doing so, the Group has reduced the number of applications by more than 2,000 and in a move towards a more standardised use of technology. However, the investment has to be justified at each location to make sure that it will provide long-term cost returns. After spending more than a century in the global shipping market, Maersk Group recognises that technology is a crucial differentiator that requires a huge amount of time and investment to make sure that software keeps up with modern cargo demands, delivering on its shipping promise in the most efficient way possible.
S H I P P I N G
&
The recent implementation of Maersk’s case management software in many African countries has been a key enabler that delivers multiple benefits to both customers and the Company itself. From backend systems that enable direct communication via EDI batch transfer messages to customers and suppliers, to remote monitoring of vessel bunker consumption, the right technologies form an integral part of the Company’s value proposition. The case management software creates a reference number that tracks a customer query – provided the query cannot be immediately concluded – and this reference is then available to every colleague around the world to action in the most effective way. The software creates a standardised platform which enables further efficiencies in communication; for example, a customer does not need to repeat a query if they want an update on an issue, they merely quote the reference number. The Group is now working to stabilise the software to ensure that it will deliver the expected benefits when promoted to the rest of the African market.
L O G I S T I C S
It is not good enough to built capabilities on the ocean transport side and not have similar matching capabilities on the land side
Truly global
As the only major ocean carrier in Namibia with offices in the close vicinity of the port, Maersk has the right support structures in place to support the further development of the country’s biggest shipping hub. Moreover, the Company is working closely with other shipping operators and the port authority to make sure the industry is sustainable in the longterm. With a N$1 billion expansion project currently being undertaken by China Harbour Engineering Company (CHEC), Walvis Bay will see the addition of a new terminal that will add 40 hectares of land, a 2,100 metre quay and a further 482 reefer container plug points; due to be completed by 2017. “This project, coupled with our investments in technology, will ensure that our customers enjoy the full benefits of Maersk Line services. Applying our principle of constant care, the team of dedicated, dynamic and highly motivated Maersk Line staff in Namibia, we can offer more than just a port-to-port transportation service,” the Company notes. “In today’s highly competitive world, it is imperative for any business to deliver a fast and reliable service. Therefore, Maersk Namibia is dedicated to the success of our customers and we can offer more ways to add value to their business,” the Company concludes.
WWW.AFRICAOUTLOOKMAG.COM
185
ame K H O E M A C A U
C O P P E R
M I N I N G
( P T Y )
Long-term Commitment TO
BOT SWANA
Cupric is leveraging its decades of mining experience and world-class standards to work towards the steady evolution of Khoemacau and its future copper assets in Botswana, starting with its underground operation at Somelo in the Kalahari Copperbelt Writer: Emily Jarvis • Project Manager: Arron Rampling
186
WWW.AFRICAOUTLOOKMAG.COM
L T D
M
I
N
hoemacau Copper Mining (Pty) Ltd (Khoemacau), a subsidiary of Cupric Canyon Capital (Cupric), has, in recent years, emerged as a prominent name in Botswana’s mining industry; with its sights firmly set on developing new copper and silver mineral deposits in the northwest region. Designed to add value to underdeveloped copper assets, construction of Khoemacau’s US$200 million copper mine in Zone 5 near Somelo is imminent and with the build due to take place throughout 2016 and 2017, the Company expects to export its first copper shipment in the first half of 2018. Addressing the reasons why US-based Cupric Africa entered the country, Johannes Tsimako, Regional Manager of Khoemacau strongly believes Botswana operates a pro-mining culture that recognises the infrastructural benefits that the
I
N
G
industry can bring to the country’s economy. “There aren’t a lot of mines in the northwest region of Botswana, which makes Khoemacau a crucial component in the development of the region. The benefits to the local communities stretch from power and communications infrastructure to skills development. This is part of our parent Company’s philosophy,” he said.
Leveraging excellence
Known for its conducive work environment and huge deposits of copper along the Kalahari Copperbelt, Botswana is among the highestranked jurisdiction on the African continent when it comes to mining and exploration projects. Ranking 17th in a global survey in 2014, the country was commended for its attitude to work, reasonable approvals process and firm grasp of regulations. In line with these figures, Cupric is applying its decades of mining experience and world-class standards
to work towards the steady evolution of Khoemacau and its future copper assets in Botswana, starting with its underground operation at Somelo on the Kalahari Copperbelt. “At present, we believe the mine has an estimated lifespan of 20 years, however, other deposits in our prospecting license areas have huge potential to develop further in the future. It seems we have only scratched the surface,” said Tsimako. Addressing the media in Gaborone earlier this year, Cupric Africa’s Chief Executive Officer, Sam Rasmussen said the mine will produce 50,000 tonnes of copper and 1.8 million ounces of silver per annum. Backed by Barclay’s Natural Resources, Cupric’s investments at Somelo are also expected to benefit from proposed rail projects, access to roads and water and power infrastructure expansions, with the 600MW expansion of the government-owned Morupule power plant set to come online by 2018 being just one example of this.
WWW.AFRICAOUTLOOKMAG.COM
187
K H O E M A C A U
C O P P E R
M I N I N G
( P T Y )
L T D
Boseto Mine
BARCLAYS
Demonstrating its desire to further grow its operations and improve Botswana’s economic outlook, Khoemacau recently concluded a deal through an offer of compromise to buy the mothballed Boseto Mine, which is only 30 kilometres away from the Somelo site. “The acquisition of Discovery Metals’ Boseto Mine and its exploration licences builds capacity for us to fully consolidate exploitation of the Kalahari copper belt. We also expect to reopen Boseto Mine by 2018 as an underground mine,” commented Rasmussen. “Our capex at Somelo would have been much higher had it not been for the processing plant we have acquired in taking over Boseto, and Khoemacau has so far taken on board 30 workers who were formerly employed by Discovery Metals to further add value to the business,” he added.
The acquisition of Discovery Metals’ Boseto Mine and its exploration licences builds capacity for us to fully consolidate exploitation of the Kalahari copper belt. We also expect to reopen Boseto Mine by 2018 as an underground mine
B
arclays Bank Botswana provides a broad spectrum of financial services and solutions to the mining and metals industry comprising advisory, financing and risk management. We have one of the most established mining and metal franchises in the industry from which we provide our clients with a consistent product offering worldwide. Our global presence and ability to raise funds in all the major mining and metal jurisdictions supports the needs of our clients and their multinational servicing requirements. Barclays Bank Botswana has experience working with governments and local agencies in the most challenging geographies and is able to provide expert advice to clients who need a local partner. We are committed to placing clients at the heart of our business. Our global team of specialists provides in-depth and diverse experience and cater to clients of all sizes, from juniors looking to raise finance and guarantee a specific revenue flow for their first project to large diversified companies looking to secure major acquisition financing. The team is underpinned by local expertise, giving our clients, regardless of their size and requirements, with the handson knowledge and know-how that they need. In addition to their industry knowledge and strategic support, our Relationship Directors can provide you with access to investment banking and finance from across the Barclays Group to meet your needs through the cycle, including; cash management, foreign exchange, risk solutions, online banking, liquidity management and trade finance.
Cupric’s work has concentrated on defining the Khoemacau Project’s Zone 5 underground Cu-Ag resources, as well as the high-grade Cu potential of the district. The Company recently expanded its land position with the acquisition of the Boseto Mine, and now controls 3,995 square kilometres of mining and exploration licenses in this highly prospective region of the Kalahari Copper Belt
188
WWW.AFRICAOUTLOOKMAG.COM
T +267 363 3931 E phibeon.mutibura@barclayscorp.com
www.barclays.co.bw
TJDR 56788
When ambitions change lives, we all prosper.
MAURITIUS Sustainable growth of local fuel production
BOTSWANA Helping the economy shine
GHANA Bringing quality healthcare closer to the people
UGANDA Affordable and locally made life-saving medicines
Working in partnership with our clients to realise the endless opportunities for growth and development in Africa, together we change the lives of millions. cib.barclaysafrica.com Corporate and Investment Banking
Best Domestic Cash Management House 2015
Barclays Bank of Botswana Limited is regulated by Bank of Botswana under licence number BA/95/002. Terms and conditions apply.
AFRICA Facilitating over 450 000 cross-border Forex transactions
K H O E M A C A U
C O P P E R
M I N I N G
( P T Y )
L T D
Shumba Coal has become one of the first in the region to announce plans in mid-2015 to develop a solar power station that will produce up to 200MW
When completed, Somelo and Boseto are expected to employ 800 workers at full production. Furthermore, since the region which hosts the copper rich Kalahari Copperbelt is currently not connected to the power grid, Khoemacau is also in negotiations with the government over the connection of the northwest region to the national grid. In order to bolster power supplies to the northwest, many energy companies have been looking to capitalise on the growth of mining along the Copperbelt, with Shumba Coal one of the first to announce plans in mid-2015 to develop a solar power station that will produce up to 200MW. According to a recent news release, the power station is expected
190
WWW.AFRICAOUTLOOKMAG.COM
to supply upcoming copper mines in the Kalahari Copperbelt, which are currently not connected to the national grid.
The name of the mine itself was provided by the school children of Kuke Primary school, who dubbed the mine ‘Khoemacau’, meaning ‘the hills of the people’
Hills of the people
First and foremost, Khoemacau seeks to change the livelihood of the people of Botswana via its mining activities, and Tsimako has held a vested interest in this idea since inception; often taking part in ongoing corporate social investment projects and identifying how best to take part in local activities. “The name of the mine itself was provided by the school children of Kuke Primary school, who dubbed the mine ‘Khoemacau’, meaning ‘the hills of the people’. It was a great honour to have the local children provide the name of our project, as they will be the generation that benefit over the course of the mine’s life,” detailed Tsimako.
M
I
N
I
N
Cupric is also drilling at two of Discovery Metals’ previous mines, including NE Mango and NE Zeta
G
The name encompasses the physical features of both the Ghanzi and Ngamiland Districts and in essence, means that the mine will improve peoples’ lives by creating employment opportunities, businesses and bring development to the nearby villages and the country at large. “Ultimately, Cupric has helped us to achieve our long-term vision and focus for the mines. With a good team behind us and a mutual understanding of where we want to take the project, we are confident that our positive impact on the economy and local infrastructures will be fruitful for everyone,” Tsimako concludes. Khoemacau is also the proud owner of another copper-rich asset in Botswana, the Banana Zone in Gantsi; which Rasmussen hopes to use to the Company’s advantage in the longterm, and develop the Zone over the next 10-15 years, once Somelo and Boseto are both fully operational.
WWW.AFRICAOUTLOOKMAG.COM
191
G LO B A L O I L & G A S M I D D L E E A S T & N O R T H A F R I C A E X H I B I T I O N A N D C O N F E R E N C E
E V E N T
F O C U S
Global Oil & Gas Middle East & North Africa Exhibition and Conference INDUSTRY FACTS OPEC member countries in MENA have a combined 840 billion barrels of proven oil reserves and around 80 trillion cubic metres of proven gas reserves, representing 58 percent and 43 percent of global totals respectively The value of projects under execution or in the planning phases in the MENA region are worth more than $700 billion, representing one of the most investment-heavy hydrocarbon markets in the world An estimated $525 billion of investments will be made in oil & gas and electricity generation over the next four-five years across the MENA region
ENI’S RECENT DISCOVERY of one of the world’s largest natural gas fields off the Egyptian coast, the Zohr field, is estimated to hold 30 trillion cubic feet or more of natural gas (equivalent to 5.5 billion barrels of oil). This ‘supergiant’ find could not only change Egypt’s economy and potentially propel the nation into becoming an energy exporter, but it could also bring more opportunities for investors compared to other fields in the Mediterranean. Now is the right time for investors to enter this market by attending the Global Oil&Gas Middle East and North Africa Exhibition and Conference, taking place on 27-29 January, 2016 in Cairo, Egypt. The event is supported by the Ministry of Petroleum of the
192
Arab Republic of Egypt. Visitor registration is complimentary and will provide the opportunity for investors to buy, specify and source, as well as learn about the latest regional oil & gas products, technologies and services. All sessions are free to attend for exhibition visitors, including a technical conference which will form part of the exhibition. The topics covered will include; exploration across the Middle East and North Africa (MENA) region; offshore operations - subsea and deepwater - drilling and completions; and unconventionals including shale oil and shale gas projects; enhanced oil recovery; LNG; third party access and tariffs and much more.
WWW.AFRICAOUTLOOKMAG.COM
There has been a strong commitment to upstream investments in crude oil, NGLs and GTLs, with an expected investment of around $200 billion in 83 upstream projects through 2015
E V E N T
D E TA I L S
WHEN: 27 - 29 January, 2016 WHERE: Cairo International Convention Centre, Cairo, Egypt CONTACT: og@ite-events.com REGISTER: www.global-oilgas.com/mena
RETAIL
WORLD
AFRICA
E V E N T
F O C U S
Retail World Africa AFRICA’S LEADING ANNUAL retail event, Retail World Africa returns for its fifth year as a platform for big retailers and SMEs alike to gather with cutting-edge solution providers. Incepted in 2011, Retail World Africa has exploded into an enormous expo with six co-located events: The Ecommerce Show Africa, The Enterprise Mobility Show Africa, The Cash Handling Show Africa, Cards & Payments Africa, Future Bank Africa and Digital ID World Africa; giving access to seven times the networking and seven times the content. The success of this event has been phenomenal. Over the years the event has continued to consistently deliver world-class retail and ecommerce speakers, superior content and market-leading solution providers. Apart from delivering a great experience, the fifth annual exhibition and conference will also take visitors on a journey to accelerate business
194
growth as it welcomes the future of commerce. For 2016, Retail World Africa is creating an entirely new standard and scale for the event. “We invite you to the VIP conference, a place that creates unprecedented business opportunities, tools to transform your business and prepare you for the future of retail and ecommerce in Africa,” the event states. “In the face of the exponential evolution of retail, there is no doubt that Retail World Africa is the place to keep up with the latest retail trends as well as drive growth and innovation. Join the traditional players, the emerging disruptors and risk-taking visionaries of retail, ecommerce and enterprise mobility. “Thousands of executives and business leaders from across Africa have attended the show over the past five years. Come find out why they keep coming back! “Come join us! Don’t miss out!”
WWW.AFRICAOUTLOOKMAG.COM
E V E N T
D E TA I L S
WHEN: 1-2 March, 2016 WHERE: Sandton Convention Centre, Johannesburg REGISTER: www.terrapinn.com/exhibition/ retail-world-africa/index.stm
SUCCESS STARTS WITH
74713B / MASANA
THE RIGHT PARTNER
Achieving excellence is your number one priority. Helping you get there is ours. What makes us a leading fuel marketer is the commitment we bring to transformation in the fuel industry through our strong B-BBEE credentials. By understanding your particular business needs, we are able to provide agile solutions and service, which means you can focus all your energy on achieving success, while we fuel it.
MASANA To find out about Masana, visit www.masana.biz
Fuelling Excellence
Here for generations Here for good You have spent a lifetime building wealth. Now you want future generations to understand the responsibilities that come with it. One bank is here for you.
sc.com/hereforgood