Africa Outlook Issue 10 by Outlook Publishing

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FN EA REWELL MADIBA LSON ROLIHLAHLA MANDELA 1918-2013 TRENDS 2014

REVIEW OF THE YEAR

A look at what the year ahead has in store

2013 in review

RESOLUTION INSURANCE 98

Kenyan insurance firm celebrates tenth anniversary

INVESTMENT PROFILE: NAMIBIA 20

A look at investing in Namibia

AFRICA OUTOOK ISSUE 10 ALSO THIS ISSUE: JOHN HOLT | IMPERIAL LOGISTICS | BERRY & DONALDSON | FOVEROS MINING

WE Import & Distribute the finest quality Italian products into Africa

Mangiare Bene, Vivere Bene

- eat well, live well

Contact Clifford Barratt, Managing Director Email: Clifford@fratellifoods.co.za Website: www.fratellifoods.co.za

W E l C O m E Farewell Madiba

we are mourning the loss of an Africa icon, anti-apartheid hero Nelson Mandela who has passed away aged 95. He has been laid to rest at his ancestral home in qunu – after ten days of mourning and reflection upon one of the most remarkable lives in modern history. “today marks the end of an extraordinary journey that started 95 years ago,” said South Africa’s President Jacob Zuma, who pledged to build on Mr Mandela’s legacy. “As you take your final steps, is that South Africa will continue to rise... because we dare not fail you.” Friend and former Robben Island prisoner Ahmed Kathrada gave an emotional tribute. “Farewell my dear brother, my mentor, my leader... My life is in a void and I don’t know who to turn to.” this magazine is something of a Mandela special and within our pages you’ll find a timeline of his life and long walk to freedom as well as a piece paying tribute to his economic achievements (see page 26). Africa will miss him. Of course this is also our trends issue and, while remembering Mandela, we look to the future and find out what’s in store in 2014. And there is a lot to look forward to, from a world Cup to the spread of new technology that could change all of our lives. One such technology that immediately springs to mind is 3D printing. the 3D printing revolution has the potential to take weeks or months off the design process and make products much more affordable. For years 3D printing stayed as a prototype process, trying things out but that’s changing. Better techniques and materials are turning 3D printers into manufacturing operations - socalled additive manufacturers. In theory, every single product can be different, made to measure. exciting times. Learn more on page 16. we also continue to bring you all the company profiles you have come to expect from one of the market’s leading players and there is plenty inside from some of Ian Armitage Africa’s best known businesses. Editor, Outlook Publishing

EDITORIAL Editor: Ian Armitage ian.armitage@outlookpublishing.com

PRODUCTION Production Manager: Clare Durrant clare.durrant@outlookpublishing.com MAGAZINE DESIGN: Optic Juice Ltd

BUSINESS Sales Director: Nick Norris nick.norris@outlookpublishing.com Sales: eddie Clinton eddie.clinton@outlookpublishing.com Sales: Donovan Smith donovan.smith@outlookpublishing.com Projects Director: James Mitchell james.mitchell@outlookpublishing.com Project Managers: Sheridan Halls sheridan.halls@outlookpublishing.com Stuart Shirra stuart.shirra@outlookpublishing.com tom Cullum tom.cullum@outlookpublishing.com Ben wigger ben.wigger@outlookpublishing.com Arron Rampling arron.rampling@outlookpublishing.com

ACCOUNTS Finance Manager: Suzanne welsh suzanne.welsh@outlookpublishing.com Office Administrator: Daniel george daniel.george@outlookpublishing.com IMAGES: getty. Cover - original photo courtesy of wtO (http://www.flickr.com/photos/world_trade_organization/)

DIGITAL & IT: Hamit Saka HELPDESK: James LeMay

OUTLOOK PUBLISHING Managing Director: Ben weaver ben.weaver@outlookpublishing.com Chairman: Mark weaver CONTACT Africa Outlook / UK 22 wensum Street, Norwich, uK, NR3 1Hy Sales: +44 (0) 1603 559 551 Editorial: +44 (0) 1603 559 144 Fax: +44 (0) 1603 559 553 Africa Outlook / SA the Colosseum, First Floor, Century way, Century City, Cape Town, 7441 Tel: +27 (0) 21 527 0053 Subscriptions Tel: +44 (0)1603 559 144 ian.armitage@outlookpublishing.com

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Here’s to the future!

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In this issue of Africa Outlook... 06

NEWS All the latest news from across Africa TRENDS

Review of the year: 2013 Our look back at the stories which hit the headlines in 2013 TRENDS

Trends for 2014 Keep ahead of the pack… FINANCE

Investment profile: Namibia

Africa Outlook takes a closer look at Namibia’s business and investment potential TECHNOLOGY

24 44

IBM opens first African research lab Big boost for Africa tech MANDELA SPECIAL

Timeline Nelson Mandela’s long walk to freedom MANDELA SPECIAL

106

Farewell Madiba

A look at the economic policy decisions Mandela had to make upon becoming South Africa’s first black President

TELECOMS FOCUS

82 4

110

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C onnecting S ierra L eone Africa Outlook talks to Airtel Sierra Leone’s boss RVS Bhullar

SUPPLY CHAIN FOCUS H alf a cent u ry of logistics Berry & Donaldson is one of South Africa’s largest private forwarding and clearing agents

40 46

I mperial targets A frican growth Imperial Logistics has been reinvented and is targeting African growth

P ro u dly S o u th A frican Paccon Logistics is a multidisciplinary freight management company operating from Durban

HEALTHCARE FOCUS H ealth for all Unichem Ghana limited is a subsidiary of Unichem Group which markets and distributes pharmaceutical products worldwide

CONSTRUCTION FOCUS G . A mpofo & P artners Ghanaian construction consultancy firm GA&P Limited was established in 1978 and it is well versed in managing countrywide projects

E ngineering sol u tions Harlequin International Ghana Limited is the market leader of general mechanical and hydraulic engineering services in Ghana

H itting the N ail on the H ead Kasese Nail and Wood Industry (KNWI) is graded as a “Grade One” company for infrastructure work and building by the Ugandan Government

W hen the earth mo v es The current agricultural and mining policies that the Zambian Government have in place will see earthmoving and plant hire firm Foveros Mining expand

74 78

C hampion of N igeria Austine Agomuoh, Nestoil’s General Manager, Projects, talks about the firm’s dredging arm B&Q Dredging

FINANCE FOCUS

A D av id and G oliath story Bridge’s core business is retail unsecured lending

S terling B an k la u nches A gent B an k ing Sterling Bank’s Agent Banking underscores the need to provide access to affordable financial services and products for every Nigerian

H appy birthday ! Resolution Insurance Company recently celebrated its tenth birthday

MANUFACTURING FOCUS

106

P rints charming Africa Outlook talks to Shawky Hemeidan, the Managing Director of Lusaka-based New Horizon Printing Press

110

A breath of fresh air German efficiency is propelling Zambian air conditioning, ventilation and refrigeration specialist Drake & Gorham to new heights

118

J ohn H olt bo u nces bac k Nigerian conglomerate John Holt has had a difficult few years, falling on hard times EVENTS

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N E W S B u sin e ss

fastjet Tanzania appoints four new directors African low-cost airline fastjet has announced that it has appointed four new directors to the board of its Tanzanian subsidiary, fastjet Tanzania. Fastjet CEO Ed Winter and Kyle Haywood, GM for Africa, are joined on the board by prominent Tanzanians Ami Mpungwe, a leading diplomat, and businessman and lawyer Lawrence Masha who will serve as non-executive directors. Angus Saunders, fastjet’s Chief Financial Officer, and Richard Bodin, fastjet’s Chief Commercial Officer joined as executive directors. In a statement, Mr Winter said: “I am delighted we have two such

B u sin e ss

Nampak acquires Nigerian can manufacturer South African packaging company Nampak is set to buy Alucan Packaging, a Nigerian beverage can manufacturer, in a deal worth $301 million. In a statement Nampak said the Alucan factory is equipped with “a brand new, state-of-theart aluminium beverage can line” capable of producing up to one billion cans per annum. It has also been designed and constructed to accommodate a second line once demand exceeds the current capacity. Nampak’s CEO, Andrew Marshall said, “This acquisition will significantly increase Nampak’s

prominent members of the Tanzanian business community joining fastjet’s Tanzanian Board. Ami Mpungwe and Lawrence Masha bring a wealth of knowledge and experience of the African, and specifically Tanzanian, business and political landscape. We look forward to working with them to continue to build our increasingly successful airline. We are proud of

presence in Nigeria which is Africa’s second largest economy and where we already manufacture food and general cans in our factory in Lagos and cigarette cartons, food cartons and labels at our factory in Ibadan, 120 kilometres north of Lagos.” Alucan Packaging is situated in the Agbara industrial area which Nampak said was “an ideal location” close to major beverage producing customers as well as having “a reliable source of gas which will be used for heating and power generation”. “Beverage can manufacturing is one of Nampak’s core businesses with factories in South Africa and Angola,” said Marshall. “Nigeria with a population of over 150 million people has experienced good growth in demand for beverage cans and this is expected to continue. Plastic packaging is also a core business with

the fact that fastjet has helped both democratize air travel and improve the quality of aviation in Tanzania. We employ a growing Tanzanian workforce - indeed we are currently looking to recruit an additional 15 East African pilots - and the people of Tanzania have repeatedly expressed their whole-hearted support. The appointment of two such prominent non-executive directors is further testament to our commitment to Tanzania. “This is a very positive time for fastjet. As announced on 18 October, we started operating internationally with our route linking Dar es Salaam and Johannesburg and the newlylaunched Dar es Salaam to Mbeya route has been so successful that we have rapidly added extra capacity to meet demand.”

factories throughout the African continent and the United Kingdom. “This acquisition and the potential to acquire the plastics company will further contribute to our stated growth strategy in the rest of Africa where we currently operate in 12 countries generating R2.5 billion in annual revenue and almost 30 percent of our trading profit.”

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News

Gambia cuts ties with Taiwan

B u sin e ss

Total to explore offshore SA in 2014 Supermajor oil company Total will drill an exploration well off the coast of South Africa in 2014 in a new phase of exploration also targeting Kenya and the Ivory Coast, the Reuters news agency has reported. The French multinational integrated oil and gas company recently acquired a 50 percent interest in Block 11B/12B from CNR International, a field situated in the Outeniqua Basin, about 175 kilometres off the southern coast of South Africa. The report, which cited Total’s general secretary for Africa Abiodun Afolab, said the firm would drill its first exploration well at the field next year. “Total becomes the operator of the block which covers an area of about 19,000 square kilometres and where we will drill next year our first exploration well,” Afolabi reportedly told an oil and gas conference in Cape Town. He added that South African authorities had also granted permission to convert a technical cooperation permit on another block, Outeniqua South, where the company hopes to shoot 7,000 kilometres of 2D seismic data. Total is aiming for a production target of three million barrels of oil a day by 2017.

Taiwan has lost an African ally in the shape of the Gambia which says it is cutting all ties with the tiny Southeast Asian nation. According to reports, the move will pave the way for a potential wave of Chinese investment in the Gambia – China of course claims sovereignty over Taipei and does not maintain diplomatic relations with nations that recognise Taiwan. “This decision has been taken in our strategic national interest,” Gambia said. Taipei expressed shock at the announcement. “The Taiwan government expresses shock and regret toward this decision,” Deputy Foreign Minister Simon Ko told reporters.

Gambia was one of a few African countries, along with Burkina Faso and Swaziland, to recognise a self-ruled Taiwan. Its president Yahya Jammeh aims to transform the country into a trading, export-oriented agricultural and manufacturing nation, thriving on free market policies and a vibrant private sector.

News

South African papers defy Zuma house photo ban Several South African newspapers have defied a Government warning and published images of President Jacob Zuma’s residence. Cabinet ministers had warned that publishing images of Mr Zuma’s home would break security laws and said that anyone who published images or footage of the estate would face arrest. The Times newspaper ran the headline “So arrest us”, above a picture of the luxury thatchedroof compound. The Star meanwhile ran with “Look away! The photo Ministers didn’t want you to see”.

The latest row follows revelations that the Government had used taxpayers’ money to refurbish Mr Zuma’s Nkandla residence. According to reports some R206 million of taxpayers’ money had been used. South Africans, outraged by the news, have cheekily used Nkandla pictures as their profile pictures on social media.

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N E W S expanding from China and India into the Middle East and Africa,” BT said. BT targets growth in “The combined geography is expected Africa, Middle East to generate 44 percent of the global and Asia GDP growth by 2025, with three billion people expected to enter the middle British multinational class over the next decade.” telecommunications services company BT said it will hire more than 400 BT has announced a new phase of new people – in addition to 600 investments in the rapidly growing positions announced earlier this year economies of Asia Pacific, Turkey, for BT’s Global Development Centre the Middle East and Africa (AMEA) in Bangalore - to focus on regional with the objective of accelerating its business growth across “all key expansion in high growth markets. markets,” including Australia, China, In a statement the company said Hong Kong, India, Japan, Indonesia, that by hiring more people in the Malaysia, Singapore, South Africa, the region, launching more competitive United Arab Emirates (UAE) and Turkey. capabilities across a larger number New hires will include industry of countries and delivering a specialists focused on sectors such differentiated service experience, it will as logistics, healthcare, consumer be in a “strong position” to capture packaged goods and financial services, opportunities in a total AMEA market and professional services experts evaluated at around £32 billion. based in 11 countries. “This new phase of investments Charles Anderson, Associate VP and builds on the success of earlier Head of Telecoms & Mobility at IDC programmes announced in 2010 for Asia Pacific said: “BT has been very the Asia Pacific region and in 2012 committed to continuing to invest for Turkey, the Middle East and and enhance its capabilities in the Africa. Earlier this year, BT brought region. Over the past 12 months, BT those regions together into a single has launched numerous new offerings integrated market unit to better and service enhancements to its address the needs of a new generation already broad portfolio of services of regional multinationals and big in Asia Pacific. The new investments domestic players that are increasingly announced today across the wider B u sin e ss

B u sin e ss

Statoil exploration to focus on Africa in 2014 Norwegian oil major Statoil will focus exploration on Europe, South America and Africa - specifically Angola and Tanzania - in 2014, exploration chief Tim Dodson has said. Talking to the Reuters news agency, he said the firm will also move deeper into the Arctic with wells in the Faroe Islands. “Next year you can expect about the same level of activity we had this year and the same amount spent, more or less,” Dodson said. “Maybe not quite as many wells, but because

AMEA region show that BT does not rest on its laurels but continues to strive for service excellence to better serve its customers.” Luis Alvarez, CEO, BT Global Services, added, “In 2010 we launched our first phase of investments to accelerate our expansion in Asia Pacific. This has allowed us to generate strong growth in the region and to nearly triple the number of new Asia Pacific customers signing with us. We are investing again to further grow our business, in a wider region combining Asia Pacific with Turkey, the Middle East and Africa. We are doing this in close consultation with our customers. A new generation of regional multinational companies look to us to help them grab global growth opportunities, and the more established multinationals are determined to invest for growth in this vast region. We help them succeed and reap the benefits of instant globalisation by aligning our investments to their requirements, and providing them with our marketleading portfolio of networked IT services wherever they need them.” BT is one of the world’s leading providers of communications services and solutions, serving customers in more than 170 countries.

of Angola, there will be a few more expensive wells next year. “There will be a big tick up in [exploration in] Angola next year, continued drilling in Tanzania... one or two wells in the Gulf of Mexico, two wells the Faroes and one well in the UK probably,” he added. Statoil expects to keep exploration spending close to this year’s record level of about $3.75 billion in 2014.

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F inanc e

British banking giant Barclays has come under fire for promoting the use of offshore tax havens as a route for companies investing in Africa. The NGO ActionAid says Barclays’ marketing of offshore tax jurisdictions undermines the bank’s ambition of being a “force for good” He added that Barclays should do and that the bank is using its Offshore more to help companies invest directly Corporate department to market a in African countries. range of tax havens to big businesses “When companies avoid tax, in Africa including promoting the low they drain billions of pounds tax levels that are available. of revenues out of developing “Every year developing countries countries that could be used to lose billions of pounds of vitally help build schools and hospitals needed revenue because of tax and lift people out of poverty.” avoidance by big companies using ActionAid’s report ‘Time to clean tax havens,” ActionAid Tax Justice up: How Barclays promotes the use Adviser Toby Quantrill said. of tax havens in Africa’ shows that

in September Barclays Offshore Corporate increased the number of tax havens it was promoting to include the key African tax haven of Mauritius. Mauritius has a very low effective tax rate and its network of tax treaties with other African countries means that large companies can use it as a key location to avoid tax. ActionAid is now demanding that Barclays honours its commitment to change and specifically to close down its Offshore Corporate department, which it uses to promote tax havens to big businesses in Africa. “Tax revenue is vital to helping boost investment in basic services in some of the poorest parts of the world. But for as long as major companies like Barclays promote tax havens, then there will always be businesses who avoid tax. We are asking Barclays to do better than that. We want them to show that when they say they are “changing” – they actually mean it,” Mr Quantrill said.

“We succeeded to build on the achievements gained during the 2011 State Visit to South Africa by our late brother, His Excellency President John Atta Mills in 2011,” Zuma said. “We have to take advantage of the current growth trajectory as Africa is one of the fastest growing regions in the world in spite of the global economic meltdown.” South African investments in Ghana amounted to more than R64 billion between 2003 and April 2013, and totalled R5 billion in 2012. “We are pleased with the increasing presence of South African companies operating in Ghana,” Zuma added. There are more than 80 South African multinational and small scale companies registered in Ghana including MTN, Gold Fields, AngloGold Ashanti, Stuurrock

Shipping, Simat Group, BSi Steel, Educor, Metropolitan, Stanbic Holdings, Standard Bank, Goldfields, SABMiller, Woolworths, African Explosives Limited, Multichoice, Shoprite Checkers, Sherwood, Steers and South African Airways. “More agreements were signed today on the areas of transport, air services and electricity cooperation. Earlier this month, our Ministers agreed on an action plan and today further committed to ensuring the implementation of these instruments,” Zuma said. He was addressing Ghanaian President John Mahama and other delegates at the South Africa-Ghana Business Forum. It was his first state visit to Ghana whose investments in South Africa currently amount to an estimated figure of $7.4 million.

ActionAid wants Barclays to stop promoting the use of tax havens in Africa

News

Zuma calls on SA and Ghana to work together to “unlock economic development” During his state visit to Ghana in November, South African President Jacob Zuma called on the two countries to work together to ensure they “take advantage of” Africa’s current growth trajectory to “unlock economic development”.

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N E W S News

UN deputy secretary general calls for action in CAR UN deputy secretary general Jan Eliasson has called for urgent action to what he described as a “rapidly deteriorating situation” in the Central African Republic (CAR). In a statement he said, “We face a profoundly important test of international solidarity and of our responsibility to prevent atrocities. “A country in the heart of Africa is descending into complete chaos before our eyes.” Mr Eliasson urged the UN Security Council to strengthen the African Union-led force in the country and said preparations should be made to

News

Zimbabwe warns foreign firms of January arrest in latest indigenisation drive The owners of some foreign firms operating in “reserved sectors” in Zimbabwe face arrest after 1 January 2014 if they fail to meet strict indigenisation criteria, state media in the country has reported. “We are putting in place measures for enforcement in the event that they do not comply,” state-owned Herald newspaper quoted Economic Empowerment Secretary George Magosvongwe as saying. Mr Magosvongwe’s ultimatum was aimed at foreign owners of business in sectors now reserved for “indigenous” Zimbabweans. To avoid prosecution, foreign

turn the AU force into a UN peacekeeping operation. “The country faces a desperate security situation. There is a breakdown of law and order. The population is enduring suffering beyond imagination. As we see far too often, children and women are at the greatest risk,” Mr Eliasson

owners will have to present an indigenisation compliance certificate, proving that they have transferred a majority holding in their company to a Zimbabwean. According to the Herald the “reserved sectors of the economy” include retail and wholesale business, hairdressers, beauty salons, bakers, employment agencies, agriculture, transport, estate agencies and advertising agencies. Indigenisation was one of President Robert Mugabe’s main campaign themes in the March election.

said. “Human rights violations are mounting. The use of child soldiers is rising. Sexual violence is growing. “There are widespread reports of looting, illegal checkpoints, extortion, arbitrary arrests, torture and summary executions.” The CAR has been in turmoil since rebels seized power in March with armed gangs, mainly former Seleka rebels, now controlling most of the country. “The CAR is becoming a breeding ground for extremists and armed groups in a region that is already suffering from conflict and instability,” Mr Eliasson added. “If this situation is left to fester, it may develop into a religious and ethnic conflict with longstanding consequences, even a civil war that could spread into neighbouring countries.”

B u sin e ss

Nampak’s African investment pays off Packing company Nampak has reported a 11 percent increase in group revenue to R18.3 billion for the year ended September. Operating profit from continuing operations increased eight percent to R1.9 billion and the group reported headline earnings per share of 196.6c, up from 194.4c a year ago. Nampak said trading income from Africa rose 60 percent to R506 million largely thanks to strong performance in its Angola-based beverage-can manufacturing facility, which operated at abovedesign capacity for the majority of the year, as well as its Kenyan aluminium packaging operation, which benefitted from a good pineapple crop.

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b u sin e ss

Sasol to explore for hydrocarbons in Durban and Zululand basins, offshore KZN Sasol upstream oil and gas subsidiary Sasol Petroleum International has signed an Exploration Right permit to explore for hydrocarbons in South Africa’s Durban and Zululand basins and offshore Kwazulu-Natal with the Petroleum Agency South Africa (PASA). The Exploration Right permit was granted for an initial period of three years. In a statement Sasol said the Durban and Zululand basins were “of interest” because they sit at the southern end of the Mozambique Channel. Significant discoveries have recently been made in the north of Mozambique, most notably in the Rovuma basin, it said. BUSINESS

Dube TradePort launches graduate work experience programme South Africa’s Durban Dube TradePort has launched an ambitious internship programme designed to provide select graduates the opportunity to “gain meaningful work experience” to complement their studies. Saxen van Coller, Dube TradePort Corporation’s CEO, said: “A good internship programme provides the opportunity to gain hands-on work experience which you just can’t get in the classroom. Dube TradePort Corporation believes it has

“This is Sasol’s first operated Exploration Right licence in South Africa for at least a decade,” Ebbie Haan, Managing Director at Sasol Petroleum International, explained, adding that Sasol will ensure that a robust public consultation programme is implemented during the assessment phase and that stakeholders’ concerns will be addressed. Sasol already has an exemplary track record in conducting exploration of this nature. Offshore Mozambique, it has a responsibility to make a significant contribution in this regard.” Training would take place at the corporation’s offices in La Mercy and would offer experience for trainees in the fields of accounting, contracts and compliance, supply chain management, human resources, marketing, network and data centre management, maintenance, horticulture, agricultural science and/ or engineering, tissue culture, water quality, development, town planning, environmental management, quantity surveying, architecture and the built environment and/or civil engineering, as well as safety, environment, risk and quality. Some 600,000 graduates in South Africa were reported to be unable to find employment in 2012.

conducted three separate seismic surveys and drilled three wells with no negative impacts on marine mammals, including the endangered dugong, whilst maintaining good relationships with artisanal and commercial fisheries, as well as the tourism and conservation sectors. In 2011 Sasol was granted a Technical Cooperation Permit (TCP 032) to study and investigate the potential for hydrocarbons in an area covering 83,000 square kilometres. The granting of the Exploration Right permit follows the submission of a work programme in September 2012, followed by a high-level Environmental Impact Assessment and Environmental Management Plan completed in February 2013. Sasol has already completed 4,000 kilometres of a 2D seismic survey in terms of a programme covering an area of 5,950 kilometres. The remainder will be acquired in 2014, following which the results will be analysed and interpreted. News

Somali PM loses confidence vote Somali Prime Minister Abdi Farah Shirdon has lost a vote of confidence in parliament and has been removed from office after 15 just months in the job. He fell out with President Hassan Sheikh Mohamud in November after he tried to sack some of the President’s allies from the cabinet. Before the vote, Mr Shirdon told the BBC he would accept the outcome in order to support the country’s “weak” institutions. He lost by 184 votes to 65. The President, who took office in 2012, will now appoint a new Prime Minister.

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T R E N D S

2013 Review of the year:

Sometimes to look forward you must look back. Here’s our look back at the stories that hit the headlines in 2013. Writer Ian Armitage

Valentine’s Day massacre? f there was a word that could sum up my 2013 it would be ‘meh’. Okay, that’s more of a sound than a word, but you get the point. It wasn’t a classic year. Yes, world trade grew (World Trade Organisation economists now predict 2013 growth of 2.5 percent), but I’m really struggling to remember too many positive headlines. I’ve had to delve into our archive....

This is probably the most shocking story of 2013 and began on Valentine’s Day when Reeva Steenkamp, the girlfriend of South African paralympian Oscar pistorius, was found dead. Police said she was shot in the head and arm at Pistorius’ home in Pretoria and charged the athlete with murder. It has had plenty of press coverage since. He will stand trial in March.

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Marikana probe drags on This is a story that continues to run. We all remember the fateful day in August 2012 when South African police shot and killed 34 miners who were striking at Lonmin’s Marikana mine. Soon after, and following public outrage, the Marikana commission of inquiry was appointed – the exact date was August 23. It was supposed to report back in five months. More than a year and many hours of expensive legal time later, it seems to be nowhere near the end.

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which found that crime in the country reached its lowest level in 15 years. The report – which is divided into two indices: the violent crime index and the property crime index – further stated that crime rates dropped 38 percent since its peak during the 2002/2003. Some good news, I guess?

Taxi driver dragged through streets of SA

FS Africa acquires Lonrho

In February footage emerged of taxi driver in South Africa being handcuffed to a police vehicle and dragged hundreds of yards. The man, 27-yearold Mido Macia from Mozambique, was later found dead in a police cell in Daveyton. It was another low point for Africa’s biggest economy. Officers claimed they put Mr Macia in a police van in order to take him to a police station on the East Rand and could not explain how he later died. A bystander however had recorded the whole thing on his mobile phone. A trial against the officers accused of his murder was postponed in November because of funding issues. The incident caused widespread revulsion.

One of the biggest business deals of 2013 slipped under most radars but not ours. Indeed in May, Lonrho and FS Africa announced they had reached agreement in terms of a cash offer by FS Africa for the entire issued share capital of Lonrho, at 10.25p per share. The transaction valued Lonrho at about £174.5 million. FS Africa is an investment vehicle controlled by Swiss billionaire Thomas Schmidheiny and investor Rainer-Marc Frey. Lonrho’s board said the best interests of shareholders were served by the offer.

Better regulatory environment

Crime in SA lowest level in 15 years Before that incident, just a few weeks before in fact, South Africa’s Minister of Police, Nathi Mthethwa, proudly welcomed the IHS Crime Index report

Okay, I’m exaggerating a bit. There were some positive stories in 2013 and one that immediately springs to my mind was the World Bank’s 2014 Doing Business report which revealed that Sub-Saharan Africa continues to record a large number of reforms aimed at easing the regulatory burden on local entrepreneurs. Of 47 economies in the region, it said, 31 implemented at least one business regulatory reform in 2012/13 – an amazing feat. Rwanda, Côte d’Ivoire and Burundi were among the ten economies globally improving business regulation the most.

Zimbabwe election Continuing the good news trend, 2013 saw a number of successful and peaceful elections around Africa - think Kenya. But, and it is a big one, it also saw an election in Zimbabwe. While largely peaceful, the jury is still out as to whether it was a success or not. It was of course won by President Robert

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T R E N D S

Mugabe. Mugabe’s opponent Morgan Tsvangirai, who heads the Movement for Democratic Change, labelled the election a sham and said it was ‘null and void’. In contrast, the African Union (AU) observer mission led by Former Nigerian President Olusegun Obasanjo said they were ‘free, honest and credible’. So it is about perspective. Since winning, Mugabe has continued his controversial indigenisation drive that will force all companies to surrender economic control to black Zimbabweans. It was a key part of his election manifesto. Speaking at a rally to mark Defence Forces Day Mugabe, 89, said: “The indigenisation and empowerment drive will continue unabated in order to ensure that indigenous Zimbabweans enjoy a larger share of the country’s resources.”

majority of 2013 it was roiled by serious labour unrest which has contributed to economic growth lagging behind the rest of Africa and dented the country’s image abroad. In October German carmaker BMW said instability had cost its factory in the country a chance of producing a new model.

Number of African billionaires grows 2013 was a good year for African billionaires it seems, and Nigeria-based Ventures financial magazine revealed that their numbers had grown, reaching 55, with a combined wealth of nearly $144 billion. In 2012, Forbes named 16 billionaires but Ventures said its “on-the-ground knowledge” had helped it identify many more. Of the 55, 20 are Nigerian, including several oil barons, while South Africa and Egypt boast nine and eight, respectively. The richest man is Nigeria’s Aliko Dangote with a fortune of $20.2 billion. The magazine estimated the 55 billionaires’ combined fortunes at $143.88 billion, an average of a $2.6 billion per person. Ventures listed businessman Allan Gray as South Africa’s richest man with a fortune of $8.5 billion.

DR Congo M23 rebels ‘end insurgency’ In November, the Democratic Republic of Congo’s M23 rebel movement announced it was ending its insurgency in the country. In a statement the movement said it would adopt “purely political means” to achieve its goals and urged its fighters to disarm and Strikes demobilise. At least 800,000 people have fled their homes since the M23 South Africa and the word strike took up arms in 2012. seem to go hand in hand and for the

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Malaria drug There was better news when it came to malaria and its treatment with drug maker GlaxoSmithKline announcing in October that it was seeking regulatory approval for the world’s first malaria vaccine after trial data showed that it had reduced cases in African children. Known as RTS,S, the vaccine was found to have almost halved the number of malaria cases in young children in the trial and to have reduced the number of malaria cases in infants by about 25 percent. GSK is developing the drug with the nonprofit Path Malaria Vaccine Initiative (MVI), supported by funding from the Bill & Melinda Gates Foundation. “Results from a large-scale Phase III trial, presented today in Durban, show that the most clinically advanced malaria vaccine candidate, RTS,S, continued to protect young children and infants from clinical malaria up to 18 months after vaccination,” GSK said in a statement. “Based on these data, GSK now intends to submit, in 2014, a regulatory application to the European Medicines Agency (EMA).

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The World Health Organisation (WHO) has indicated that a policy recommendation for the RTS,S malaria vaccine candidate is possible as early as 2015 if it is granted a positive scientific opinion by EMA.” The malaria trial was Africa’s largestever clinical trial involving almost 15,500 children in seven countries. GSK has been developing the vaccine for three decades.

Westgate Mall terror

SA celebrates B-BBEE milestone 2013 marked ten years since South Africa introduced Broad-based Black Economic Empowerment (B-BBEE) and it remains an integral part of the country’s economic policies and transformation, according to President Jacob Zuma. Speaking at the first ever B-BBEE Summit, hosted by South Africa’s Department of Trade and Industry (dti) in collaboration with the Presidential B-BBEE Advisory Council, which Zuma chairs, he said that the State will continue to intervene and promote transformation. “B-BBEE is part of a broader objective of promoting inclusive growth and economic development,” he said. The policy has had its critics over the years and local commentators have been calling for more clarity and improved transparency as the government assesses its options to increase the pace of transforming black people’s lives.

On Saturday 22 October, between 12 and 15 al-Shabaab militants brought mayhem to an upmarket shopping centre in Nairobi, executing unarmed men, women and children as they tried to hide or flee. At least 67 people were killed in the terror attack. Al-Shabab has said it carried out the atrocity in retaliation for Kenyan military operations in Somalia and Kenya’s foreign minister said “two or three” Americans and a British woman were among the attackers. On 1 October, facing mounting criticism of Kenya’s handling of the Westgate attack, its President Uhuru Kenyatta promised an official inquiry.

ex-wife Winnie Madikizela-Mandela told South Africa’s Sunday Independent newspaper that Mr Mandela was unable to speak and was “quite ill”. She said he used facial expressions to communicate “because of all the tubes that are in his mouth to clear [fluid from] the lungs” but dismissed rumors that he was on life support. “He can’t actually articulate anything... He communicates with the face, you see. But the doctors have told us they hope to recover his voice,” Ms Madikizela-Mandel said. “I have heard this nonsense that he is on life support - he is not. It is difficult for him. He remains very sensitive to any germs, so he has to be kept literally sterile. The bedroom there is like an ICU [intensive care unit] ward.” Mandela sadly passed away on 12 December. Read more on page 26.

Cardinals elect new pope

Mandela’s health Former South African President Nelson Mandela wasn’t far from the headlines at all in 2013. In September he returned home after nearly three months in hospital with a recurring lung infection and received treatment at his home in Johannesburg, which was specially adapted for his care. In November, his

On Wednesday 13 March 2013 a new pope was elected. And it was a surprise choice - Jorge Mario Bergoglio of Argentina. He took the name Francis I and became the first non-European pontiff in nearly 1,300 years. The choice of the 76-year-old from Buenos Aires was announced by cardinal Jean-Louis Tauran with the Latin words “Habemus Papam,” which translates as “We have a pope.” Pope Francis, who is the first Latin American and first Jesuit pope, was greeted by crowds roaring their approval when he appeared at the balcony overlooking St Peter’s Square. “It seems that my brother cardinals have gone to the ends of the earth [to find a pope],” he said.

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T R E N D S

2014 Tr e n d s f o r

Life has never been about just keeping up and so we’ve gone out to the world in a bid to keep you well ahead of the pack. Here’s what you need to look out for in 2014 (and a few events for your diary). Writer Ian Armitage

he word ‘trend’ is multifaceted. For some, it means the Autumn/ Winter collection 2014. For others, it means which games consol the kids will want this year – that sort of thing. We’re using ‘trend’ as an opportunity to share with you the things to look out for this year. It could be new technology, a consumer trend or an event. Either way, pay attention and expect to see a lot more of these things in the coming 12 months...

traffic deaths,” Toyota Managing Director Moritaka Yoshida said at a presentation in Tokyo. Toyota said that while Automated Highway Driving Assist (AHDA) lets drivers put the vehicle on auto-pilot, leaving most of the work to the computer system, they would still need to be alert and take part in the driving process. “Toyota recognises the importance of the driver being in ultimate control of a vehicle and is therefore aiming to Driverless cars introduce AHDA and other advanced driving support systems where the driver Toyota has unveiled the next generation maintains control and the fun-to-drive aspect of controlling a vehicle is not of cars featuring an autopilot system compromised,” it said in a statement. that will swerve to avoid collisions and AHDA lets vehicles communicate also keep to the middle of the road, all wirelessly to avoid running into each without drivers touching the wheel – other while keeping the car in the and the technology could be available middle of the road lane. on the market in a few years’ time. The company plans to install the “These advanced driving support system in its commercial models over technologies prevent human errors, the next few years. reduce driving stress and help drivers Google also has a self drive avert accidents, which has a big car (pictured). potential to reduce the number of

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vowed that the World Trade Centre complex would be fully rebuilt and the skyline made whole again. This is the year the stop-start new World Trade Center (WTC) project will be completed and that dream will be fulfilled. The WTC is a vision of downtown New York that “combines modern, safe and sustainable commercial space, convenient transportation, and a destination cultural centre,” its website says. It 2014 Fifa World Cup includes five new skyscrapers (One, Two, Three, Four and Five World Hooray. I’ve been counting down the Trade Centre), the World Trade Centre minutes to Brazil 2014 since the final Transportation Hub, 550,000 square whistle of the World Cup Final between feet of retail space, and a performing Spain and Holland in Johannesburg on Arts Centre. The tallest of the new 11 July 2010. And what a tournament skyscrapers is One World Trade it is: an opportunity for your country Centre, previously called the Freedom to shine and show the world what Tower. It stands a symbolic 1,776 you can do (unless you’re English – in feet from base to pinnacle, recalling that case prepare for the inevitable the year in which the Declaration of underwhelming performances). One Independence was signed. particularly exciting aspect is that it is the first World Cup finals at which we’ll have goal-line technology – so no more dodgy goals. Africa will be represented in Brazil by Ghana, Algeria, Cameroon, Ivory Coast and African Champions Nigeria, all of which coincidentally played in the 2010 edition.

Smart watches The market for digital watches grew considerably in 2013 and it will continue to grow this year. Tech experts agree that these devices are one of the most important new product categories in consumer electronics. Apple, Google, Microsoft and Samsung are among the firms launching a myriad of hi-tech watches.

Digital health No more cavities?

New World Trade Centre We’re all aware of what happened on September 11, 2001 and soon after then-President George W. Bush

Have you heard about Keep 32. No? Well I’m not surprised. What is it? It is a new molecule developed by scientists in Chile which is present in a range of dental care products that eliminates Streptococcus mutans, one of the two main bacteria responsible for tooth decay. Its inventors say it makes teeth ‘cavity-proof’.

I’m excited about this one and while it is nothing new, it will pick up in terms of pace in 2014. Digital health is described as the “convergence of the digital and genetics revolutions with health and healthcare” and it is about empowering you to better track, manage and improve your own and your family’s health. It also helps to reduce inefficiencies in healthcare delivery, improve access, reduce costs,

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increase quality and make medicine more personalised and precise. There are a number of Apps and things out there already that help people track diet and exercise information. Some Apps even enable you to book doctors’ appointments. There are set to be many more innovations in this field. Watch this space.

Switched-on brands

Ecological sustainability

Emerging markets It is my belief that in 2014 we will see an explosion of products and services from emerging markets for emerging markets, with the symbols, lifestyles and traditions that were previously downplayed, if not denied, becoming a source of pride for domestic consumers (think about things like African dolls). Emerging markets are increasingly competitive and consumers are increasingly powerful so if you want a slice of the pie then you’ll have to come in with products they want. Check out places like www.afriqueduzoot.com.

What is a switched-on brand, I hear you ask? Well, quite simply, it is brands that are embarking on the journey towards a more sustainable and socially responsible future. It kind of links in with ecology/green but is more than that and is particularly important in the African context as the continent looks to finally prosper from its abundance of natural resources and strength in numbers. CSR in Africa will be increasingly important in 2014.

This year the Intergovernmental Panel on Climate Change (IPCC) releases the final part of its Fifth Assessment Report, which further discusses the possible future impacts of climate change. The first two reports, released in 1990 and 1995, both highlighted the potential rise in global temperature and the long term effects of greenhouse gasses and the second report was particularly strong in clarifying that humans were affecting the climate. It is clear that, in the long term, we’ll all have to be more ecologically sustainable as businesses, consumers and individuals. In 2013 we witnessed the emergence of products and services that quite literally contain new life inside them. For example, Korean designer Gyeongwan Koo created the ‘To Be Nature Chopstick’ as an environmental alternative to Spread of new technology disposable chopsticks and a team in the U.S. developed Sprout, a pencil that wants to be a plant We’ll see the spread of a number of www.plantyourpencil.com. new technologies throughout 2014,

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some of which we may already know about and others we don’t. Two that immediately spring to mind are 3D printing and Make on Demand. The 3D printing revolution has the potential to transform our lives, taking weeks or months off the design process and make products much more affordable. For years 3D printing stayed as a prototype process, but that’s changing. Better techniques and materials are turning 3D printers into manufacturing operations - so-called additive manufacturers. In theory, every single product can be different, made to measure. A technology that could really transform Africa.

African exploration

Increased automation in retail environments

VoIP As more Africans get high speed Internet, more may be able to get VoIP phone service as well. This means that some people who have never had regular phone service before may be able to get VoIP. The biggest advantage is the cost.

Checkout operators of retail chains are increasingly being replaced with automated systems in order to save costs and improve efficiency. They aren’t a new concept but in 2013 major retailers around the globe started trialling them. Walmart-owned UK retailer Asda was one of them and it tested a fully automated Wincor Nixdorf checkout on which, it says, items can be scanned in less than one second each - three times faster than scanning by hand. In Europe, retailers such as Rewe Group, Dia and ICA Gruppen have already been testing fully automated scanners since 2011. In the U.S., Kroger has been piloting its in-house fully-automated tunnel scanner, first developed in 2010. In Africa however, low labour costs and high crime rates mean that self-service checkout will probably not be an ideal solution for most retailers for some time to come.

When it comes to exploration 2014 will be all about Africa. Norwegian oil major Statoil has already signalled its intention to focus exploration on Africa - specifically Angola and Tanzania. “Next year you can expect about the same level of activity we had this year and the same amount spent, more or less,” Exploration chief Tim Dodson said recently. “Maybe not quite as many wells, but because of Angola, there will be a few more expensive wells next year. There will be a big tick up in [exploration in] Angola next year, [and] continued drilling in Tanzania.” Statoil expects to keep exploration spending close to 2013’s record level of about $3.75 billion in 2014. Have you got an innovation you’re sure will make it big in 2014, a growth story you want to share or a plan to break into emerging markets? Why not get in touch with ian.armitage@ outlookpublishing.com and share your story? Make 2014 Africa’s year.

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Namibia: T he land of the bra v e

Africa Outlook takes a closer look at Namibiaâ&#x20AC;&#x2122;s business and investment potential. Writer Ian Armitage

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amibia has enjoyed considerable successes since it gained independence from South Africa in 1990 – that’s despite having a population of just 2.2 million people – and the middle-income African nation is renowned for sound economic management, good governance and inherited a well-functioning physical infrastructure, a market economy, rich natural resources, and a relatively strong public administration. It has made significant progress too in addressing many development challenges like job creation, education, primary healthcare services, safe water, poverty and inequality. In the 2013 World Bank /IFC Ease of Doing Business Study, Namibia ranked third out of 25 African countries. In the Ernst and Young Emerging Markets country rankings, meanwhile, it ranks ahead of all of the BRIC economies. Perhaps unsurprisingly, this has attracted international investors, with Namibia attracting the 15th most FDI projects in Africa since 2003 which ranks it as the top African investment destination on a per capita basis. But still it isn’t without its problems, suffering from high unemployment – some estimates put it as high as 50 percent of the population. One company working to change that is the Namibian Diamonds Trading Company (NDTC) and it has contributed more than N$450 million in dividends alone to the national coffers in the past five years. The diamond beneficiation company is a partnership between renowned world diamond producers De Beers and the Namibian Government and its primary objective is to facilitate the creation of a sustainable diamond cutting and polishing industry in Namibia, NDTC Head of Sales and Marketing Brent Eiseb told us in a recent interview.

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“Our main objective is to drive local beneficiation from diamonds by growing and supporting the downstream diamond industry in Namibia, with the broad aim to ensure the maximum, long-term value from Namibian diamonds through world-class sorting, valuing and sales practices in Namibia,” he said. NDTC was established in 2007 as part of a sorting, valuing and marketing agreement between the Government of the Republic of Namibia and De Beers. Since then, the company has spearheaded the growth of the domestic diamond manufacturing industry and helped create a sustainable downstream diamond industry in the country.

Job Creation

NDTC’s customers are called Sightholders, selected in a rigorous process to determine their financial viability, technical capability and integrity. They are appointed for three-year periods during which they have the right to buy diamonds offered to them by NDTC. “The Sightholder selection process is a robust and comprehensive process,” Eiseb said. “NDTC’s objective is to partner with the best diamanters in the world. We want to partner with companies that can add the most value to the rough diamonds that we sell and create a competitive advantage through their technical ability, marketing and distribution ability. Secondly, we look at what these companies are doing in terms of beneficiation. Is that something they are committed to? What are they doing? Are they employing Namibians to cut and polish the diamonds sourced from NDTC? Are they transferring skills to Namibians? Skills the country needs to develop its economy. Added to this is the fact that NDTC has a finite amount of rough diamonds to make available

for beneficiation activities and invariably this leads to increased competition for supply and the only way to ensure fair distribution of the limited availability of rough diamonds is to run a competitive selection process.” About 1,200 direct workers are employed by NDTC’s 12 Sightholders – it is a remarkable feat.

Mining ambition

As NDTC shows, mining is a big employer in Namibia and the industry currently constitutes some 12 percent of the country’s GDP. And it is about to get much bigger in the coming years. In July, we were lucky enough to talk to the management of exploration company Lodestone Namibia, just as they were drawing a close to their latest round of exploratory drilling and were finishing a Namibian mining license application, which they expected to submit at the end of August. Lodestone’s third phase of drilling at Dordabis commenced in March 2013 and produced 6,500 metres of core samples.

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“This round of drilling threw up a few pleasant surprises, revealing an extension of our main ore body that we hadn’t foreseen,” said Carsten Mosch, CEO of Lodestone, at the time. “For us it will mean bringing in far more material to our mineral resource and geological block models. Exploration and drilling demand time, money and patience. We invested the resources to prove the viability of the project and now is the time to move from exploration to production. Fortunately everything is progressing better than we would have predicted.” In addition to applying for its mining license, Lodestone is currently conducting a pre-feasibility study (to be completed in late 2013) and a bankable feasibility study (to be completed in May 2014). Mosch was quick to distinguish Lodestone from other African iron ore projects. “This project is distinct from many that have been announced in areas such as Guinea, DRC and even Botswana,” he said. “Most of those projects need major rail and

port infrastructure before they can proceed. Many of the announced projects presuppose the installation and development of large scale infrastructure. It is not clear that they will succeed. While Lodestone’s initial export goals may be modest (1.2 million tons/annum production), we can send a good amount of iron ore into the seaborne market using Namibia’s existing infrastructure. “If we were producing tomorrow we could use the existing rail lines and the port at Walvis Bay.” His enthusiasm is strengthened by the fact he believes “an increasing dependency on iron ore imports in key world markets presents a substantial opportunity for the intensified development of African iron ore projects” like Lodestone’s Dordabis project. “Our Exclusive Prospecting Licenses cover a significant iron ore deposit,” he said. “There have been a number of analysts saying some rather alarmist things about the iron ore price and the demand and supply balance over the next couple of years. We are optimistic for the outlook for the demand for our product because it is much higher grade than the market standard. Regardless, Lodestone will be a low cost producer so we will still enjoy solid margins in the event of a bearish pricing scenario.” The project has everyone at the firm excited and it would have positive ramifications for Namibia. “We have had encouraging conversations with export and economic development bodies, both official and quasi-official in Germany and Europe. There is a great deal of enthusiasm and support from public bodies as well as private investors and offtakers to secure as much international business between Namibia and Germany as possible,” Mosch said. “The resource we have in the ground can support far more

Would you believe it?

If we were producing tomorrow we could use the existing rail lines and the port at Walvis Bay”

than 1.2 million tons a year of exports which is our current base case assumption but we can ramp that number up significantly and rapidly at the point that the infrastructure of Namibia grows. “We can evolve from being a modest-sized mine to being a large iron exporter when Namibia does invest the resources required to improve its rail and port infrastructure. We think Lodestone can be the catalyst to encourage the Namibian Government - perhaps with investment from Europe - to improve that infrastructure. It is a chicken and egg thing where Namibia lacks the public resources to build out its infrastructure to foster economic growth and that growth can only occur with expanded infrastructure. However, Germany Inc needs high grade iron ore which they are having trouble sourcing from the world market. Lodestone can drive real economic growth and employment in Namibia using the existing rail and port to deliver the natural resource Europe needs.”

As unlikely as it might seem though, and despite all we’ve just said, Namibia’s most precious resource is likely to be water, not diamonds or iron ore. Wait, you say... Isn’t Namibia sandwiched between two of the world’s most famous deserts (the Namib and the Kalahari) and isn’t it the direst country in sub-Saharan Africa, with less than 370 millimeters of rainfall on average each year? Well yes it is. And here’s the but... In 2012 the Namibian department of water affairs announced the discovery of a significant body of underground water - an aquifer dubbed Ohangwena II - that scientists say could supply the north of the country with enough water for centuries. Situated on the border with Angola, Namibia’s side of the 10,000-yearold aquifer covers an area about 70 kilometres by 40 kilometres (43 miles by 25 miles). Project manager Martin Quinger, from the German Federal Institute for Geoscience and Natural Resources (BGR), said it was a substantial body of water and could supply 40 percent of the nation’s population for as long as 400 years. “The amount of stored water would equal the current supply of this area in northern Namibia for 400 years, which has about 40 percent of the nation’s population,” he said. “What we are aiming at is a sustainable water supply so we only extract the amount of water that is being recharged. “What we can say is that the huge amount of stored water will always be enough for a back up for an area that is currently supplied only by surface water.”

Conclusions

Namibia has had and continues to have its struggles but is a very realistic and viable investment. To learn more visit www.mti.gov.na.

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I B M O pens D oors of

First African Research Lab

©IBM Research

In November Kenya’s President Uhuru Kenyatta officially opened Africa’s first commercial technology research facility in Nairobi. Writer Ian Armitage

enya’s profile as a technology hub received a major boost late 2013 as technology giant IBM opened its first research lab in Africa in Nairobi. The facility, which is situated at the Catholic University of Eastern Africa, is the technology giant’s 12th global research lab and its first commercial one. It will, the company said in a statement, be a centre of creating IT solutions and will “conduct applied and far-reaching exploratory research into the grand challenges of the African continent by delivering commercially-viable innovations that impact people’s lives.”

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Through the centre, young people will have an opportunity to learn from the best minds from the world such as the Massachusetts Institute of Technology (MIT) and Harvard University. “The 2,000 square metre facility features one of Africa’s most powerful, cloud-enabled computing hubs giving IBM researchers the ability to analyse and draw insight from vast amounts of data in the search for solutions to Africa’s most pressing challenges such as energy, water, transportation, agriculture, healthcare, financial inclusion and public safety,” IBM said, adding that the lab’s research agenda will, “include the development of

We are currently experiencing the emergence of a new Africa - one where science and technology are enabling a pivotal ‘leapfrog’ moment”

cognitive computing technologies which integrate learning and reasoning capabilities enabling experts to make better decisions in areas such as healthcare delivery and financial services. In the new era of computing, IBM believes that Africa has a strategic opportunity to become an early adopter of cognitive systems.” Kenya’s President Uhuru Kenyatta underscored the role of ICT as a key driver to the country’s targeted economic growth prospective of ten percent annually. “The establishment of this research laboratory underpins the Government’s commitment to innovation ecosystems that are already available in Kenya,” he said. “Using innovation to drive homegrown solutions, Kenya continues to lead the continent in ICT. My government is proud that Kenya, and indeed Africa, will benefit from the presence of one of the most advanced research facilities, with some of the world’s most talented people, using some of the most powerful technologies to address the continent’s biggest challenges and opportunities.” Over the past year, the IBM Research - Africa team has been

conducting research projects while the laboratory was under construction. It now comprises seasoned IBM scientists and new recruits, starting with 20 PhDs and growing in line with the lab’s development. “We are currently experiencing the emergence of a new Africa - one where science and technology are enabling a pivotal ‘leapfrog’ moment allowing governments and businesses to drive economic growth, raise the standard of living and compete with their global counterparts,” said Dr. Kamal Bhattacharya, Director, IBM Research – Africa. “The launch of Africa’s first full-scale, technology research facility signifies a new era in African innovation - one where commerciallyviable solutions to Africa’s grand challenges are developed in Africa for Africa, helping to lay the foundations for the continent’s future scientific and economic independence.” Key areas the lab would focus on include smarter cities, medical healthcare, education, water, agriculture and transport. On traffic, IBM has partnered with Kenyan internet service provider Access Kenya to develop a pilot solution to enable Nairobi commuters to use their mobile phones to get advice on driving routes through the city depending on estimates of traffic congestion. IBM Vice President, Research, Robert Morris, said that some of the innovations from the centre would also be imported to other economies and ensure Kenya continues to be a key hub around the world. “We also intend to invest in and facilitate a digital economy by empowering youth to develop market-ready software to be consumed by national and country governments and business enterprises,” he said. This is a fascinating story and we look forward to bringing you updates in the near future.

©IBM Research

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MANDELA

T I M E L I N E 1918 THE JOuRNEY FROM PRISONER TO LEGEND

As South Africa and the world mourns the death of the man who steered his country out of white-minority rule, we chart Mandela’s rise to symbol of freedom, forgiveness and hope. Writer Ian Armitage

elson Mandela’s activism made him a central figure in ending apartheid in South Africa and in his lifetime he was a lawyer, an activist and prisoner before becoming the country’s first black President and an inspiration to generations around the world. In December he died at the age of 95. Here we look at the milestones in his life.

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The early years

Born Rolihlahla Mandela at Mvezo in the transkei on 18 July 1918, Mr Mandela went on to be the first of his family to go to school and it was there he received the name Nelson. in 1941, in a bid to escape an arranged marriage, he fled to Johannesburg, met walter Sisulu and got work at law firm Witkin Sidelsky. in 1944 he joined the ANC and co-founded the ANC youth League. He also married evelyn Ntoko Mase.

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1952 Treason charges

In 1952 Mr Mandela, by now a qualified lawyer, set up the country’s first black law firm with Oliver Tambo. The defiance campaign began and he was arrested and charged for violating the Suppression of Communism Act. He was found guilty and sentenced to nine months imprisonment with hard labour, suspended for two years. Fearing a ban by the apartheid government, the ANC asked Mr Mandela to make plans to ensure the party could work underground. He was arrested in 1956 and charged with treason along with 155 others. the trial lasted four-and-a-half-years, and ended with his being acquitted. In 1958, he married his second wife, winnie Madikizela.

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1963 Rivonia Trial and prison

the Sharpeville massacre on 21 March 1960 was a dark day for South Africa. the government feared retaliation so it declared a state of emergency and banned the ANC. the organisation formed a military wing, umkhonto weSizwe (MK), led by Mr Mandela. In 1962, he was arrested and tried for leaving the country illegally. He was sentenced to five years in prison and in 1963, while in serving that sentence, he was charged with sabotage in what became known as the Rivonia trial. He and seven others were sentenced to life in 1964 and jailed on Robben island.

1990

Freedom and Noble Peace Prize

In 1990, after 27 years in prison, the ANC was unbanned following years of political pressure and tough international sanctions and a few days later, on 11 February 1990, he was freed. Crowds cheered as he and his wife winnie left the prison grounds. the next year Mr Mandela was elected ANC President at the party’s first national conference. talks began on forming a new, multi-racial democracy. In 1993, he and South African President Fw De Klerk were jointly awarded the Nobel Peace Prize for efforts to bring stability to the country. the Nobel Committee said both men had made “a brilliant contribution” to peace.

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TIMELINE

1994

South Africa’s first black President in 1994, for the first time in South Africa’s history, people from all races voted in democratic elections, election which, of course, Mr Mandela and the ANC won. He became President on 10 May. Later that year he published his autobiography Long Walk to Freedom and a few months later, in February 1995, he visited the prison on Robben Island where he had spent 18 years in captivity for the first time since his release from jail. He also established the Nelson Mandela Children’s Fund.

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1997

Steps down after one term Mr Mandela stepped down after one term as President in 1997. His successor thabo Mbeki led the ANC to victory at the polls in 1999 and Mr Mandela increasingly focussed on his charitable work. On his 80th birthday he married his third wife graca Machel. He retired from public life in 2004, joking “Don’t call me, i’ll call you.”

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90th birthday

we all remember Mandela’s 90th birthday and what an event it was - musicians, film stars and politicians all joining him at a famous concert in London’s Hyde Park. Speaking to the crowd, he asked future generations to continue the fight for social justice. “it is time for new hands to lift the burdens, it is in your hands now,” he said.

2011

Twilight years

After his 90th birthday celebrations in 2008, the former President made few public appearances, although he appeared at Jacob Zuma’s inauguration in May 2009 and at the closing ceremony of the 2010 football world Cup, hosted by South Africa. In January 2011, he was admitted to hospital with a respiratory infection and suffered repeated infections over the next two years. He spent his 95th birthday in hospital and died at home on 5 December 2013, three months after being discharged.

NELSON ROLIHLAHLA MANDELA 1918-2013

2008

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Farewell Madiba Africa Outlook looks at the economic policy decisions Nelson Mandela had to take upon becoming the countryâ&#x20AC;&#x2122;s first black President and remembers a brave man not ashamed of compromise. Writer Ian Armitage

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s Mandela once said, “what counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.” to me, those are more than just words. they are the ideals. Ideals by which we all hope to live. Of course, it isn’t easy. Nothing worth doing ever is. And that is the lesson I’ve learnt from Mandela, a lesson not easily forgotten. Like millions around the world, from Beijing to texas and everywhere in between, I was deeply saddened by Madiba’s passing (Madiba being Mr Mandela’s clan name) and it is quite hard to express just what he means to me. while not unexpected, there was an almost overwhelming sorrow that a great light had gone out. As thabo Mbeki put it, “Nelson Mandela has now gone forever, never to return. Inevitable death has cut down a sturdy pillar, intsika, on which we leaned for so long, which helped to ensure that we walk upright.” Mandela led by example. And what an example. while not always a saint, the dignity with which he has acted is without parallel. “Before Nelson Mandela was arrested in 1962, he was an angry, relatively young man. He founded the ANC’s military wing. when he was released, he surprised everyone because he was talking about reconciliation and forgiveness and not about revenge,” friend Archbishop Desmond tutu famously said. Now I love this quote. yes, Mandela may be compared to the likes of Mahatma gandhi or Mother Teresa, as a great moral figure of our times but you shouldn’t think of him as a saint. the reality is he was complicated and passionate. Mandela’s achievements are many and varied but I think they are the greater because he admitted to errors.

He wasn’t the sort of leader we have now (across the world) that refuses to accept mistakes are made or is too pig-head to change his ways. think now of his economic policy. After 27 years in apartheid jails, Mandela emerged in 1990 pledging to seize South Africa’s mines and banks. “the question of nationalisation of mines is a fundamental policy of the ANC. I believe the ANC is quite correct in this attitude and we should support it,” he said shortly after his release, sounding remarkably like a certain Robert Mugabe. that isn’t what happened of course and Mandela changed his mind. Instead of pushing nationalisation, he opened the economy and invited foreign investors into the country, paving the way for the longest period of growth in the country’s history. Only Mandela could have done that. Sadly however his economic legacy has come under attack, more so than ever in recent years. Some young South Africans accuse him and the ANC more broadly of “selling out” to privileged minority interests. the deal he struck at the end of apartheid, they feel, saw a shift in political power but too little economic change. And they have a point. the jobless rate remains 24.7 percent while average earnings for black households are a sixth of their white counterparts. Last year, an angry ANCYL, led by firebrand Julius Malema, waged a campaign for the nationalisation of banks and mines, the very policies Mandela ditched in 1994. My message to his critics is this. what you have to realise is that Mandela made the best of a very difficult lot and quickly normalised and stabilised South Africa’s vulnerable post-apartheid economy. He realised what steps had to be taken and was brave enough to take them. South Africa could use a few Mandela’s in Parliament today.

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A irte l

S ierra

Leone

Africa Outlook talks to Airtel Sierra Leoneâ&#x20AC;&#x2122;s boss RVS Bhullar who tells us more about how the telecoms giant is meeting growing demand for data services and why it is deploying high-speed Internet capacity across its network. Writer Ian Armitage Project manager Donovan Smith

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eco

hen Bharti Airtel entered Africa acquiring the Zain portfolio in March 2010 there was a heck of a lot of fanfare, experts eager to see what the new kid on the block would do. They anticipated a major shake-up in the telecoms sector across the continent. In Sierra Leone, Airtel offers “2G, 3G wireless services and mobile commerce” and it is continually improving. “We have the widest coverage, the largest geographic footprints in the country and are number one for bringing innovative products to the people of Sierra Leone,” says Airtel SL managing direct RVS Bhullar. The company has grown rapidly in innovation, quality services and other advanced technologies. To match this growth, it moved its headquarters to a sophisticated new building at Hill Station in Freetown. Bhullar says that the company “needed a building that could match the current trend of innovation” and it is another signal of Airtel’s commitment to Sierra Leone. “Airtel is leading contributor to the economy. Over and above that, our CSR contributions continue to impact the daily lives of Sierra Leoneans through school adoptions and also Airtel Rising Stars. We’ve also increased employment by creating self-employed jobs through retail schemes,” he says. Of course Sierra Leone represents a challenging environment. Torrential rains during 2013 brought down Airtel’s communication towers in Port Loko districts north of the country, resulting in the loss of telephony coverage within and to the area. The rains accompanied by lightning grounded a total of 14 network sites causing severe difficulties for subscribers to make and receive calls and send text messages.

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The weather isn’t the only challenge. “There have been a lot of issues mainly the exchange rate fluctuation, the cost of fuel, as bulk buyers pay more than retail, considering more than 70 percent of our site is not on grid, and the company makes GST Payments on behalf of the customer,” explains Bhullar. “Energy is the big problem; the unavailability of the national grid and accessibility to sites.” Despite all this, Airtel SL has achieved much in the last year, successfully increasing the capacity

We have over the previous year invested a lot in our network to ensure that we provide a seamless experience for customers”

of most of its sites which has “improved the quality of service for both voice and data,” says Bhullar. “We have over the previous year invested a lot in our network to ensure that we provide a seamless experience for customers. We have continued to bridge the communications divide by introducing non-banking solutions via Airtel Money, by launching 3.75 G network and reintroduced One Airtel (previously One Network). We also, of course, invested in and have successfully moved into our newly commissioned world class office premises. And we have successfully connected to fibre which has improved on the data experience.”

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T feat e l u re eco

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Telecoms in Sierra Leone is still growing and connecting to the Sierra Leone Cable (SALCAB) ACE fibre was a major milestone. The result has been better service due to increased bandwidth, a variety of new services that are anchored on the platform of faster internet and, eventually, it will bring down the price per MB. Importantly, data access has much improved and is more convenient than ever with services like WIFI or public hotspots in key locations like airports, universities and colleges, and business districts. It is driving a technological revolution. “The industry is still growing. There is much to be done on the infrastructure of the country however,” says Bhullar. “But there are still opportunities like new coverage potential as we continue to improve on our footprints and data experience.”

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We have continued to bridge the communications divide”

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There is no secret to our success here; it’s just sheer hard work and dedication” Airtel’s plans include an additional $82 million CAPEX investment over the next three years designed to “increase population coverage to 98 percent” and build a “world class” data centre. “If I met a Genie who offered to have all of Airtel Sierra Leone’s dreams come true, what would I ask for? To get the power grid sorted so that all towers are connected to it and generators will be a thing of the past and of course improve on the road network system to enable access to sites,” concludes Bhullar. “There is no secret to our success here; it’s just sheer hard work and dedication by a lot of committed people.” To learn more visit www.africa.airtel.com.

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B erry

D ona l dson

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ychain

H alf A

Century of Logistics Berry & Donaldson is one of South Africa’s largest private forwarding and clearing agents. Writer Chris Farnell Project manager Stuart Shirra

his is a year of 50th anniversaries. It’s the 50th anniversary of Doctor Who, of the assassination of JFK, the Beatles debut album and, according to the poet Philip Larkin, sex. One of the auspicious 50th anniversaries being celebrated in 2013 is that of global supply chain and logistics company Berry & Donaldson. Berry & Donaldson is one of the largest forwarding and clearing firms in the whole of South Africa and it’s not surprising the company is using this as an excuse for both celebration and reflection. “We’ve had a bit of a media splash,” explains Stuart Friedmann, Berry & Donaldson’s Managing Director. “We had an internal party and a conference for some of our clients. The industry has changed dramatically over the last 50 years, becoming more technologically integrated. We’ve acquired a new software system called CargoWise and we have a huge forwarding network we’ve forged over the last 50 years. Our overseas agents are owner managed, picked for their size and ability to work within their own regions. We have our own fleet of vehicles and air freight warehouses, and with our office in Hong Kong our international presence is opening up.” While Friedmann is firmly focused on the future of the company he’s also extremely proud of how well established the company is already. “We’re a family company that started off as a clearing house and branched out into forwarding, logistic services and project freight,” he tells us. “We have six offices, three in Cape Town including our HQ, and three more in Durban, Johannesburg and Hong Kong.” The last 50 years has seen the company grow at a remarkable rate

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B E R R Y

D O N A l D S O N

IFORWARDING

Forwarding is a young freight forwarding company established by hard working, creative, experienced, flexible and reliable people who are dedicated to their clients and their job. we believe that good partnership with our clients & suppliers make us different from competition. We find solutions by thinking out of the box. we are not tightened by large structures. Which makes us very flexible in dealing with operational & commercial problems. we stand close to our valued clients & agents. We can be reached 24/7. Tel +32 3 780 17 090 Email info@iforwarding.com

but Berry & Donaldson has never lost sight of what’s important. As Friedmann points out, “we exist in a unique space in the market. we’re big enough to have infrastructure and stability, while being small enough to provide that personal touch that comes with being a family run business. we’ve a turnover of around R3 billion a year and the full range of logistic and supply chain management offerings but we’re still a privately owned family company who deal with customers on a personal level. we still view each and every one of our customers as a business partner.”

Rising to New Challenges

Of course you don’t last 50 years without navigating at least a few difficult times and recently businesses all over the world have been feeling the pinch. So too has Berry & Donaldson. “the current economic climate is a challenge because of a huge trade

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The industry has changed dramatically over the last 50 years becoming more technologically integrated”

deficit that needs to be closed,” Friedmann admits. “economies are pretty slow right now while our government is rightly trying to make it less appealing for people to import rather than using our own goods and there is stiff competition in the sector. People are quite cost conscious, sometimes at the expense of service, so we’re having to cut our cloth accordingly, working to maintain the levels of service our customers expect while remaining ahead of the financial challenges they face.” the challenge that Berry & Donaldson faces is that it has built a history of providing a comprehensive, cutting edge service, and so is working hard to maintain that while keeping one eye on matters of economy. “It’s particularly challenging when you’re offering a one stop shop, providing all our customer’s logistic needs in one package,” says Friedmann. “the business is growing

all the time and the industry changes rapidly. Supply chain management is very dynamic and we have to respond to that. the technological improvements are a double-edged sword. It gives us great tools but it can be difficult to keep up.” With that in mind the firm has been retooling itself, looking at how it has worked so far and considering where it is going to go next. Friedmann is excited to talk about what’s to come. “the last year has been one of consolidation,” he tells us. “we’re looking forward to where we’re going and back to the where we’ve been. we need to take a more strategic approach to how we grow as opposed to the more organic growth we’ve been experiencing so far. “we are looking to become an international player, opening more branches overseas. we don’t acquire offices just for the sake of it, we need a good reason to open up a new market.

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B E R R Y

D O N A l D S O N

we’re currently looking at the trends happening over the next five to ten years, strategically planning our future. “Our projects division is growing, our project freight is working on solar, oil and gas projects. that division is really taking off and we’re very excited about the projects we’re involved.”

A team for the Next 50 years

One thing that has remained a constant from the company’s foundation in 1963 through to its plans for the future is that Berry & Donaldson’s people are its most valuable asset, and when Friedmann talks it is clear it is serious about investing in its staff and recruiting new staff from the right places. “We have lots of long serving members of staff - some as many as 25 to 35 years. we

The current economic climate is a challenge”

recruit within the industry and a lot of our expertise comes from our practice of hiring staff from a customs and excise background. we grow talent within the company. we have people who started as drivers who are now working at management level. Our people progress through the company by learning organically and through our structured programmes. we also firmly believe in employment equity codes. The company staff complement reflects the race and gender make-up of the community in which it serves. we’re very committed to that.” we can’t wait to see what Berry & Donaldson does with the next 50 years. to learn more visit www.berrydon.co.za.

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Knowles Husain Lindsay Inc congratulates Berry & Donaldson on their 50th birthday Through our advice we aim to always give Berr y & Donaldson a strategic advantage 4th Floor, The Forum 2 Maude Street, Sandown, Sandton 2196 PO Box 782687, Sandton 2146 Tel: +27 (0)11 669 6000 Fax: +27 (0)11 669 6299 Docex 42, Sandton Square 10th Floor, 2 Long Street, Cape Town 8001 PO Box 1478, Cape Town 8000 Tel: +27 (0)21 405 4200 Fax: +27 (0)21 419 1413 Docex 49, Cape Town

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I m p E R I A l

l O G I S T I C S

IMPERIAL TARGETS AFRICAN GROWTH

Imperial Logistics has been reinvented and is targeting African growth. Chief integration Office Cobus Rossouw talks to Ian Armitage Writer Ian Armitage Project manager Stuart Shirra

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upply chain and logistics group Imperial Logistics has reinvented itself and, says chief integration officer Cobus Rossouw, is now better able to offer clients “customised solutions that boost their competitiveness”. “we decided we wanted to take a step forward and that is by focusing on what we can do for our clients,” he explains. “Imperial Logistics offers more than just logistics and our capabilities extend into things procurement and brand activation.” Rossouw sees Imperial as a growth enabler. “we are an extension of our own customers’ business, building their brands alongside our own business. Our own differentiators lie in a combination of an extensive resource base and world class integrative processes and technology. we apply our supply chain management skills to manage operational processes across end-to-end value chains on behalf of our clients.” to make sure it delivers on this promise Imperial has been streamlining and simplifying its business, honing in on its capabilities. One such consolidation merged group companies BROCO and Cargo Africa into Imperial Managed Logistics. “we also created Imperial Retail Logistics, previously known as tFD Network Africa, by incorporating contracts from other Imperial businesses,” Rossouw adds. these businesses specialise in enhancing customers’ logistics and supply chain network capabilities. “we can take your product from manufacturing to the point of purchase – that is what we can do,” says Rossouw. “we are the only company that can do it. “the three dimensions of our growth strategy are new geographies, new industries and new capabilities.”

where required this will be achieved through acquisition and Imperial has never been afraid to buy the right businesses. In May, for example, it acquired a 49 percent stake in MDS, a leading logistics provider in Nigeria, for S$26 million. the acquisition saw it enter Nigeria’s fast growing FMCg, telecommunications and pharmaceutical industries. “It has strengthened our footprint in the continent and is consistent with our strategy of focusing on these consumer opportunities and following our customer base into Africa,” says Rossouw. Another acquisition – that of Rtt Medial - has seen Imperial Logistics enter the pharmaceutical space and the group is also playing a growing role in Africa’s mining, construction and petrochemical industries, Rossouw says. “I think we are positioned well.” Of course, Africa is where everybody wants to be – with companies increasingly setting their sights on the continent’s growing middle classes and increasing aﬄuence. Understanding the markets is central to success. imperial offers that. “the opportunity in Africa exists in becoming part of Africa to which we are expanding as the Nigeria acquisition shows,” Rossouw says. “No continent will grow more or faster than Africa in the coming years and the opportunities are there if you have the right approach. Africa is the fastest growing and youngest population in the world and its consumer-facing industries are expected to boom in the years to 2020. through our approach we can help our clients grow in the continent.” Imperial has launched an extensive expansion drive into Africa which will see the company invest heavily in developing corridors while more local partnerships are being forged to

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I m p E R I A l

l O G I S T I C S

TYRES 2000

yres 2000, a national tyre supply and management company is extremely proud and appreciative of its long-term relationship with tanker Services. Our interaction began when tanker Services submitted a request for proposal for a tyre cost per kilometre (CPK) contract to all the major tyre retailers. traditional tyre CPK contracts had lost credibility in South Africa thus tanker Services requested from all a fresh approach to managing their tyres. Tyres 2000 offered their unique industry-first ALL eNCOMPASSiNG tyRe CPK CONtRACt which tanker Services thoroughly evaluated for two years within their robust Fuel And gas division. this comprehensive trial resulted in tyres 2000 being appointed sole service provider to the entire tanker Services group countrywide.

HERIOTDALE Tel (011) 626-2800/2516 62 Lower germiston Road, Cnr greene Str Tim Hurly 082 560 9301

help clients benefit from the mass consumerisation of Africa. “Our strategy into Africa is all about the continent’s mass consumerisation,” Rossouw says. “we have very aggressive plans in the pipeline. we are actively working on further expansion in Africa and we are also actively working on filling some of the other gaps in our South African business in either industries we don’t have a presence or capabilities we don’t have. In South Africa the challenge is that growth is not that aggressive. the economy is quite flat. But we see growth because we are growing by capability into new markets we weren’t present before. So, I think we are going to have a very exciting 2014.” If validation of the work Imperial has done was needed, it came in the form of a first place finish at the

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The three dimensions of our growth strategy are new geographies, new industries and new capabilities”

Cobus Rossouw

ychain

prestigious Annual African Access National Business Awards. It was the second consecutive year Imperial won the Logistics Category - ahead of other finalists including Bidvest Panalpina Logistics and DHL. The award reflected the group’s success in offering customised solutions to drive clients’ competitiveness. “We are proud of the recognition that we have achieved,” Rossouw concludes. “The challenge – which is also our purpose and will shape everything we do going forward – is to improve our clients’ competiveness by customising our experience in outsourced value chain management. We have no designs on being seen as the biggest but we definitely want to be seen as the best.” To learn more visit www.imperiallogistics.co.za.

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p A C C O N

l O G I S T I C S

PROuDLY

South African

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t’s an exciting time to work at Paccon Logistics. In 2013 the founding directors of this South African freight company - Andrew wallace and Steve gillespie - successfully purchased the minority interest that was formerly held by Paccon Logistics Australia. this means that the company is now, in its founders’ own words, “100 percent proudly South African”. It is by no means the new kid on the block, however. Paccon Logistics, which prides itself on its local knowledge and on-the-ground experience, was established in the early 2000s and next year will celebrate ten years in business. this near-decade of experience means that Paccon has built a rock-solid reputation, with a noted specialty in heavy industrial and project logistics. To this end, the firm doesn’t own its own fleet but instead manage and outsource to much-trusted third party sub contractors from cargo surveyors to abnormal transport operators and border agents. Paccon’s core activities centre on heavy industry sectors in South Africa and its neighbouring countries Botswana, Zimbabwe and the Democratic Republic of the Congo.

going it alone

Paccon Logistics is a multi-disciplinary freight management company operating from Durban in South Africa. Writer Rebecca Wigmore Project manager Stuart Shirra

it seems appropriate that 2014 will herald a new era of independence for Paccon, as the company was built in the spirit of entrepreneurship and regional know-how. However it wasn’t always so easy as Andrew wallace explains: “After around 20 years of working for corporates I became disenchanted with office politics and decided to open my own business. Having spent a large amount of that time involved in cross-border trade and industrial project logistics, I decided that it

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Paccon

Logistics

was an area where a small hands-on operator could thrive. The first couple of years were difficult but we have seen consistent growth.” Paccon’s clients are many and varied and the company has been involved in “virtually all capex projects in South Africa’s ports for about seven years,” handling all manner of equipment “from forklifts to postpanamax gantry cranes, and shipping equipment for mining and process plants in sub-Saharan countries.” It has also freighted construction materials and power generation/ transmission plant equipment, both hydroelectric and thermal. This is by no means the limit of what Paccon can handle however and Wallace reveals further ambitions. “General engineering and fabrication is also a sector we are growing into,” he says. “[Although we provide] an inherent understanding of machinery and all things mechanical, the real difference is our extremely hands-on approach and passion for what we do. Another important factor is that although each member of staff has a specific role to play, everything is a team effort and so hierarchical structures don’t really play a part. [If the job requires me] to go down to the port, working cargo to assist my operations team, then that is where you’ll find me. It may be clichéd but we really do treat our clients’ cargo as if it were our own and when we say we are on duty 24/7 we really mean it. We have built up an enviable reputation with both clients and service providers and do everything in our power to protect that.” There is a certain steely sense of pride in the way that Wallace and his team approach and solve logistical problems. “There are many challenges we face every day - such is the nature of our industry - but what sets a company apart is how they deal with

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We have been involved in virtually all capex projects in South Africa’s ports for about seven years”

UPPL

each and every challenge,” he explains. Bureaucracy is a commonly cited bugbear, particularly as the public sector “often does not have the same aims as the private sector.” That said 2013 has been a banner year for Paccon with the company gaining new clients both locally and internationally. In addition, the company has recently joined the international project logistics network GPLN and, after its first conference, established firm relationships with a number of companies that need like-minded agents in Southern Africa. Despite this sense of rapid expansion, the Paccon team is relatively small, comprising 15 employees. When asked about his compact workforce, Wallace had this to say: “A big question in our industry at the moment is the shortage of suitably qualified staff, especially in niche sectors such as ours. As a small company, we are not as affected by this problem. Fortunately most of our staff have been with us for a few years and so have grown into their roles as every day is a learning opportunity. From a training perspective we obviously have on-the-job practical learning and my managers and I can be found at our staff’s desks discussing the details of a shipment on a regular basis. All this is supported by formal learning through a variety of courses offered by industry service providers which staff attend on a rotational basis and are paid for by the company. This is not limited to junior staff - in fact, myself and two colleagues attended a heavylift course last year. Apart from the training side, we also try to create and maintain a working environment where everyone enjoys coming to work and feels that their contribution is an important part of our success.”

ain

There are many challenges we face every day - such is the nature of our industry - but what sets a company apart is how they deal with each and every challenge”

He also noted that 2014 would likely herald some new hires and the possible opening of new offices. What is certain however is that 2014 will be a year of deserved celebration, with the 10th anniversary of the firm providing “a good excuse to host a party and invite as many of our clients and service providers as possible.” In the eyes of Wallace’s co-founder, Steve Gillespie, Paccon Logistics’ newly acquired independence from Australian investors marks a turningpoint in the business’s history: “With the consolidation of our shareholding now firmly South African, we are free to pursue our strategies for the benefit of current and future shareholders as well as our loyal staff and clients,” he concludes. To learn more visit www.pacconlogistics.co.za.

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Uniche m

G hana

l i m ited

Unichem Ghana is a subsidiary of Unichem Group which markets and distributes pharmaceutical products worldwide. Writer Chris Farnell Project manager Eddie Clinton

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nichem Ghana is a company with a vision and that vision is to provide healthcare for everyone. As a leading pharmaceutical firm with a globally recognised presence, Unichem is dedicated to serving Sub-Saharan Africa with the highest quality products to improve wellbeing, life expectantly and quality of life at prices that are widely affordable. It is a goal that Unichem Ghana is meeting not by remaining static but by growing and changing constantly to maintain its position at the forefront of healthcare innovation and development. It takes into account people’s physical, emotional, social, vocational and even spiritual wellbeing to create a new definition of the phrase “healthy lifestyle”. At the Ghanaian headquarters of the much larger Unichem Group, the firm has been responsible for the distribution and marketing of the highest quality ethical pharmaceutical specialities, including surgical products, hospital disposables and generics. Through Unichem, Ghanaian healthcare professionals have access to such leading global brands as 3M, LUEX, Pfizer, Sanofi Aventis, Wallace, and Walter Ritter, paving the way for safe and affordable healthcare across West Africa. For over 50 years the firm has led pharmaceutical distribution in Ghana and the region, building capabilities and making efficient use of resources to set up Unichem Industries Lt., a state-of-the-art manufacturing plant producing tables, capsules and dry powder that has become a benchmark for the rest of the African pharmaceutical market. Even now it is working on the Unichem Liquid Industry, broadening its product range even further. As the domestic market in Ghana continues to grow, Unichem has been

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Uniche m

G hana

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working hard to grow alongside it, meeting both the local market and the wider sub region.

There’s No “I” in “TEAM”

Unichem Ghana is a company whose every action is dedicated to a mission. It is working hard to deliver innovative medicines, mature products, over the counter medication, FMCG nutraceuticals and allied products to the market, exceeding customer expectations and upholding the core human values that are the bedrock of the healthcare industry. However, Unichem is highly aware that it cannot achieve this on its own. The company has built strong interdependent relationships with its customers and business partners to create valuable synergy across the industry. Together, the Unichem Group and its partners have created a contingent that strives to bring the highest quality products and service to the market and Unichem has been quick to assimilate the best qualities of those they work with. Even the customers are not seen as being outside of the loop – Unichem Ghana considers them business partners every bit as much as the others it works with. The customer, after all, is at the centre of every one of Unichem’s principals. Without a customer you can’t provide customer satisfaction. But these partnerships aren’t only extended outside the company, for Unichem the word “TEAM” is an important part of their philosophy, particularly when broken down into the acronym “TOGETHER EVERYONE ACHIEVES MORE”. Using the Kaizen approach to continuous improvement, Unichem Ghana strives to create a conducive working environment where every member of staff is working to improve themselves and the company as a whole.

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The company has built strong interdependent relationships with its customers and business partners to create valuable synergy across the industry”

Serving Africa

All of this is run with the continent that Unichem Ghana exists to serve – Africa – in mind and its rich resources and great people are at the heart of everything the company does. Indeed, Unichem Ghana aims to reflect the friendly and peaceful nature that is often associated with Ghanaians in everything it does. And the company’s relationship with its country becomes crucial as Africa is growing in influence politically and economically on the world stage. With this in mind, Unichem has an extensive and detailed Corporate Social Responsibility policy. More than just a tacked on PR exercise, the firm believes it exists primarily for the betterment of the world. Listed on its website in black and white, Unichem Ghana’s values include treating the Earth and all that dwell on it with respect, working together for the benefit of all mankind, giving assistance and kindness wherever it is needed, doing what they know is right, being truthful and honest at all times and taking full responsibility for their actions. This thinking has led to Unichem’s “Values in Healthcare” initiative, in collaboration with the Janki Foundation. The project aims to reduce stress and put an emphasis on “self care” for medical professionals. The initiative features a number of educational modules that teach medical professionals ways to improve their own lifestyles, because when doctors are healthier, their patients benefit as well. As well as working hard to encourage healthy living among the medical fraternity, Unichem Ghana also has wide ranging Corporate Social Responsibility and education schemes on the go. You’ll commonly see them at conferences arranged by the Pharmaceutical Society of Ghana, Ghana Medical Association, Society of Private Medical and Dental Practitioners, the Medical Assistants AGM GHANA, the Ophthalmological Society of Ghana, the Paediatric Society of Ghana, the Association of Midwives Ghana and the Pharmaceutical Technologist Association of Ghana, while sponsoring numerous medical events, groups and associations. Unichem Ghana is also regularly conducting scientific seminars with the Ghana Health Service, as well as polyclinics and hospitals across West Africa. Driven by these values, Unichem is driving Ghana towards a happier and healthier future. To learn more visit www.unichemghana.com.

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CONTRIBuTIONS TO THE GHANAIAN

construction industry

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ghanaian construction consultancy firm G. Ampofo & Partners was established in 1978 and it is well versed in managing countrywide projects. Africa Outlook talks to Managing Director Sam Asare. Writer Rebecca Wigmore Project manager Arron Rampling

or almost 40 years, G. Ampofo & Partners has been building a distinguished reputation as one of the most trusted construction management firms in Africa. Based in Ghana, the company offers a wide variety of services including quantity surveying, management and construction cost consultancy, and project management. gA&P, as it is often abbreviated, has worked on a number of countrywide projects including the design and supervision of classroom pavilions and technical auditing of the community secondary school project for the Ministry of education and it has provided project management services to International companies such as AP Moeller Maersk group. these include the Maersk Office Project, which is now the head office of the Ghana Ports and Harbours Authority, and the recently commissioned 36,000square metre Inland Container terminal in tema for APM terminals. “we [consistently] raise our construction standards to match international practice and work to maintain high ethical standards,” Sam Asare, the company’s Managing Director explains. in addition to efforts to keep improving services, gA&P has worked hard to diversify and provide every service a client might need under one roof so that the complex process of construction management is kept as simple and streamlined as possible. “The founder of the firm and i set up a consortium that would provide that one-stop shop. we also worked to deepen the scope of our services so we include project management and value-added technical advice and auditing services,” Asare says. this approach has paid dividends and in the past few years the firm has worked with countless international

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B. APPAH ELECTRICALS LIMITED (BAE)

. Appah Electricals Limited (BAE) is an electrical engineering and contracting company that provides electrical services for building projects and also supplies and distributes quality, yet affordable electrical products. BAE provides electrical installation and maintenance services and has accreditation for the distribution of the following brands; SCHNEIDER ELECTRIC, MK ACCESSORIES AND CABLE MANAGEMENT, NEXANS ALCATEL CABLES, FURSE EARTHING AND LIGHTNING PROTECTION and THORN LIGHTING, BELOTTI CAPACITOR BANKS AND AUTOMATIC VOLTAGE REGULATORS. Due to continuous expansion, the company now has two main Units, the Project Business Unit, providing electrical engineering and contracting services and the Consumer Business and Retail Unit, supplying and distributing quality electrical products. With staff strength of approximately 160 employees including professionals from different fields of study, BAE has expanded its operations beyond the boundaries of Ghana to other African countries.

We also worked to deepen the scope of our services so we include project management and value-added technical advice and auditing services”

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The underpinning of BAE’s success has been its pursuit of high quality and on time delivery at reasonable cost and building of a long-term working relationship with its customers, suppliers, and colleagues in the electrical industry. This is driven by our commitment to Honesty, Quality, Team work, Respect, Fairness and total client satisfaction. Tel 0302-770178/770155 Email info@bappahelectricals.com

www.bappahelectricals.com

feat u re

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funders who have financed projects that include cost model development for the construction of a World Bank Group office in Ghana, a technical advisory role in the development of One Airport Square in Accra, pre and post contract administration for Scancom Ghana (Ltd) and the development of fivestorey office buildings in Takoradi, Tumale and Kumasi for the National Communication Authority.

Riding the Boom

However, running a company like GA&P isn’t without its challenges. The business supports around ten employees, although that number can fluctuate. “We try to provide a blend of both mature and young professionals who stay the course. All three shareholders including myself started right at the bottom and worked our way up to being directors. All shareholders are

Ltd

full-time and we are part of the team. Then we have professionals and technicians, the number of which has grown or shrunk, depending on our future prospects,” says Asare. Dealing with economic instability is one of the greatest managerial battles facing GA&P. Despite the firm’s excellent reputation and expertise, Asare has experienced firsthand how the changing fortunes of the Ghanaian economy and accompanying political climate can derail any number of projects. “I think the biggest challenge is adapting to the developing economy and that challenge is peculiar to the construction of built environment. There isn’t always adequate resources to fund all the developments,” he explains. “There’s political instability. We’re waiting for the developing economy to catch up with the rest of the world. Governments come and go; there’s turbulence in the system. I know that in the developed economies of Europe and the U.S. the construction industry can be turbulent and it is even more pronounced in developing economy like Ghana.” As we talk, it becomes clear that the ability to adapt is a crucial trait to possess if you want to survive in construction consultancy in Ghana. Asare has been working with GA&P for over 33 years and has been Managing Director for the last 11 years. Over that period there has been tremendous change in the industry. “I came straight from school and it is quite amazing what technology has done to improve efficiency in business over the years. I think client requirements have change and procurement strategies have change. Sometimes we have a joint venture with foreign firms with better resources and occasionally it puts us at a disadvantage. But I think our biggest challenge is

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not having enough resources. Construction tends to be an economic barometer - if there’s a boom, we ride the boom. If there’s a depression, the industry is the first one to suffer.”

Opportunities for the best & the brightest

Perhaps because of its ability to weather the storm of a fluctuating marketplace, the future looks bright for GA&P. As Asare is keen to stress, there is no shortage of expertise in the workforce. There is too an obvious commitment to recruiting and nurturing the best available team. “We recruit at all levels – for instance, at the moment we are doing a project for a bank, part of which means we have to advice the sanction of all loans, and exercise

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Construction tends to be an economic barometer - if there’s a boom, we ride the boom. If there’s a depression, the industry is the first one to suffer”

due diligence,” says Asare, explaining the hiring process. “So we had to look for somebody who already had the know-how. I brought somebody down from London who has already been exposed to and involved in that kind of work. From his previous experience, I knew he was the right person for the job. We also take on young men and women who have just finished their degrees and if they have the aptitude, the right attitude and are trainable, we’ll recruit them. We then mentor [the recruits] and take them through continuous professional development. Those that are good stay on and those that don’t meet our high professional standards have to go.” Perhaps this unstinting professionalism and commitment to quality explains why GA&P has survived for decades.

Although procurement in the construction industry is always changing, especially when considering design and project builds, Asare seems quietly confident about the company’s strategy. “The plan for the future is to remain competitive and relevant. We need to take partnership in bigger building environments so we can offer a more diversified service. We need to adapt to change to remain relevant instead of waiting to be commissioned by an employer. We are looking to go into partnership with developers so that we can provide a service beyond what is traditionally offered. We need to be on par [with international standards] and we want to be on that level.” To learn more visit www.gampofo.com.

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H A R l E q u I N

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G H A N A

Engineering SOluTIONS

Harlequin International ghana Limited is the market leader of general mechanical and hydraulic engineering services in ghana. Writer Chris Farnell Project manager Arron Rampling

ince its formation in 1998 Harlequin International ghana Ltd (HIt) has become the leading general, mechanic and hydraulic engineering company for the mining, oil and gas, agriculture and ports and harbours markets in ghana. But to understand how the company did it, you’ll need to take a closer look. It provides a range of services and products ranging from fabrication to hydraulics, engineering to brush plating, and sand blasting to the sales and maintenance of Linde’s leading material handling equipment, high pressure hydraulic systems and even hand tools. Name’s you’ll find in its stock include Krost Shelving, Hyva, Linde, toolquip, enerpac, gedore, Rigid and Parker Hydraulics. Harlequin itself has become the go-to name for a host of industries, and it has achieved this with an unprecedented range of capabilities within the engineering market, a committed, experienced and reliable workforce, and a history of adding value to its hydraulic, electrical and mechanical services and products. However, for HIt, it is not just about having the right talent and resource. It is also about knowing how to apply them and the company will never take a job on unless it can guarantee it will complete the project to complete customer satisfaction. the company’s experience completing quality turn-key projects means that it knows exactly where and when it can provide the best products at the height of value for money. today, the business boasts 2,000 square metres of workshop area, stateof-the-art fabrication centres, hydraulic repair centres, engineering and CNC centres, brush plating, metrology, a spray booth and temperature controlled storage areas, as well as a well stock forklift centre and an

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expertly manned CAD centre with the latest in CAD and solid works software. But you shouldn’t just take Harlequin’s word for it. The firm is the first of its kind to receive the ISO 9001/2008 certification in Ghana via Det Norske Veritas (DNV). This accreditation neatly demonstrates to its customers that all of HIT’s products, procedures and training meet the highest exacting standards. And the company isn’t resting on its laurels either. In 2003 HIT established a new wing in the form of the LFS Company, based in Takoradi. By 2007 it was exclusively dedicated to providing services to the oil and gas industry and it is a leading brand in the Ghanaian market for both the topside and undersea operators, thanks to a comprehensive project management service that takes projects from the original feasibility studies through to the execution of the project and any subsequent onshore and offshore engineering and manufacturing needs. HIT has since purchased a site covering 220,000 square metres only 15 kilometres from the main centre of Takoradi and has started developing the site for offering all offshore fabrication and riser maintenance. This will accommodate laydown pipe yard areas together with full workshop facilities inclusive of 40 ton overhead lifting capacity, the company says. To get a better idea of how Harlequin became so successful however, it’s worth taking a look at an individual line of the company’s product range, in particular, its extensive offer of forklift trucks. HIT is the exclusive agent for Linde Material Handling Equipment in Ghana, a position that it holds with pride because Linde Material Handling are among the world’s best manufacturers of forklift trucks and warehouse handling equipment,

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as well as being well known for their hydrostatic drives that are used internationally in farming, construction and forestry machinery.

A Vision for the Future

As well as standing by the best names in the business, the company also has the latest technology. HIT recently purchased the USM Vision total weld inspection solution and the software will create an integrated database using procedures drawn from international codes and standards, with ray tracing functionality to aid in the validation of UT parameters. The cutting edge software is used in collaboration with a specially designed hand-held flaw detector that features a unique user interface that uses two track balls to direct the device, making it easy to use for even untrained operators. The device weights only four kilograms and bosts a 10.4 inch screen with 1024 x 768 resolution, as well as a hot battery swap exchange so that low batteries can’t bring work to a halt. The handheld device allows for USB, Ethernet or wireless connections, can operate IPC and analysis software, and features an encoded scanner designed for TOFD and phased array manual acquisition. The device will simplify ultrasonic inspection, making it a job that is open to and understandable by a far wider range of people while still complying with the most stringent international codes and regulations. It’s a great example of the ways that HIT applies the latest technologies to achieve impressive results.

Proof in the Pudding

However, perhaps the most powerful endorsement of HIT’s expertise is the number of their customers who are willing to go to bat for them. Its testimonials are impressive.

We were astounded that a shop of this quality existed in this area of the world”

Derek Duncan, a rig manager, says, “I have personally found Harlequin International to be 100 percent professional in my many dealings with them over the last three years. Barry Williams also has the ability to make you feel that you are his only customer and always has time to answer questions and explain his processes.” Jim Haley, Ex Operations Manager from Atwood Oceanics, adds, “We made initial contact

with Barry Williams, he gave us a tour of his shop facilities; and we were astounded that a shop of this quality existed in this area of the world.” By applying high end brands and the latest technology with exemplary customer service, it’s not hard to see why Harlequin International is a winning name. To learn more visit www.hit-gh.com.

WYNAND HAMILTON EXTERNAL SALES TEL: + 233 20 405 2352 Wynand.hamilton@bsisteel.com

MIKE PRINSLOO GENERAL MANAGER TEL:+233 20 379 2344 Mike.prinsloo@bsisteel.com

PLOT 6, INDUSTRIAL PARK,AFLAO AFTER KPONE POLICE BARRIER, TEMA, GHANA

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K asese

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H itting the

Head on the

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Kasese Nail and Wood Industry (KNWI) is graded as a “Grade One” company for infrastructure work and building by the Ugandan government. Africa Outlook talks to Director Mark Nsubuga and learns more about the firm’s fascinating story. Writer Chris Farnell Project manager Arron Rampling

nfrastructure is a big deal in Uganda and the companies working to improve it have a big task ahead of them. But one such business started out with far more humble beginnings. Mark Nsubuga, Director of Kasese Nail and Wood Industry, explains its story. “We were incorporated in 1982, as manufacturers making wire nails and carpentry and joinery products,” he says. However, it wasn’t long before they realised that the company would need to set its sights higher.

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“We had to diversify because that line of business wasn’t all that lucrative,” Mark admits. “We moved into construction and today we mainly work on civil engineering products such as roads, bridges and buildings.” The move turned out to be a wise one, and from there Kasese Nail and Wood Industry, or KNWI as it’s often known, has gone from strength to strength. “We’ve grown from a relatively small company ten years ago to a medium sized construction firm by Ugandan standards,” Mark says. “And we’re looking to expand over the next few years. We have a plan and are looking forward to seeing it put into action to get our business where we want to be. It’s 100 percent Ugandan owned. We’re operating exclusively in Uganda at the moment but we’re already looking to expand into neighbouring countries in the near future.” However one thing that hasn’t changed from the start is KNWI’s

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I nd u stry

We will soon be an oil producing country and that will bring in a lot of work for the construction industry and the company over the next few years”

commitment to providing the absolute highest level of work, reflected in the company’s motto, “Getting It Right the First Time”. “We’re proud of our ability to get the work done properly first time round and that’s been one of our key advantages,” Mark says. “We’re able to do that because of the high level of ability and expertise among our staff. We get competent, capable people, who are the best there is. At the same time our eyes aren’t bigger than our stomachs so if we take a project on it’s because we know that we can deliver to deadline and with high standards of quality, safety and cost effectiveness.” It’s not been an entirely smooth road however and KNWI has faced obstacles along the way, ranging from the task of finding staff who are capable of meeting the company’s high standard, to problems with the current high cost of raising capital. “In this part of the world one of the biggest challenges is the cost of capital,” Mark admits. “We borrow at rates of 22 to 23 percent, which is obviously challenging. We also do a lot of public work which brings its own challenges. There’s not so much private work at the moment but we’re hoping that will improve in the near future. It’s also a challenge to find skilled personnel locally. And of course the competition from foreign companies is also a challenge, as many of them come into the market with much cheaper labour and resources than we’re able to access. However by competing on quality we’re more than capable of holding our own.”

Investing in People

In order to combat the wide skill shortage facing the industry, KNWI has invested heavily in training its staff, sometimes making them a prime target for headhunters. “We do a lot of training, trying as hard as we can to retain the staff that

we have,” Mark says. “Because there’s so few talented people everyone wants to pick them up, which can cause a challenge. But we provide valuable training, we pay competitively, motivate our people well and build a strong brand identity that breeds a real sense of loyalty among the staff.” Of course, one guaranteed way to ensure that you’re best talent doesn’t roam is to make sure that it always has things to do. “We’re a growing company, there’s every effort from the owners to keep us growing and people like to be part of a company where they are working all the time, constantly facing new challenges, so people will stay around as long as there is work,” Mark says. This is why KNWI has been able to perform well even in the face of a global economic climate that has been a disaster for some companies. “The company has been performing well, even though the economic downturn that has been affecting everyone in the industry because the availability of work during those periods was low, but it’s beginning to pick up again now and the future’s looking brighter,” Mark tells us.

A PILLAR IN GLOBAL DEVELOPMENT AS SEEN WITH KASESE NAIL & WOOD INDUSTRIES LTD

PLOT 52 LUGOGO BYPASS | P.O BOX 7153 | KAMPALA UGANDA

Tel:+256414233915 +256752213024 +256753293482 Email: tata@tatauganda.com www.tatamotors.com

A Bold New Era

KNWI has shown that it’s possible to thrive even under difficult conditions, but things are soon to take a turn for the better for Uganda’s construction industry, and the company is ready to reap the rewards. Soon Uganda is going to become an oil producing country, which is going to mean a big investment in infrastructure to support the exploitation of those resources, and will yield an income that in turn will fund bigger and better projects. Mark is understandably excited by the possibilities. “We will soon be an oil producing country and that will bring in a lot of work for the construction industry and the company over the next few years,” he says. “We’re looking at handling much bigger projects by partnering with other firms. If it’s all managed well it will translate into more Government revenue, more infrastructure development and more work for firms in the industry. Most immediately it’s going mean infrastructure development in the oil producing regions. In the long run it’s going to have wider implications that will be a boom to the entire country.” To learn more visit knwi.co.ug.

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F O V E R O S

m I N I N G

WHEN THE

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the current agricultural and mining policies that the Zambian government has in place will see earthmoving and plant hire firm Foveros Mining expand says CeO John Samaras. Writer Ian Armitage Project manager Arron Rampling

his is a unique moment in time for Africa and there are a lot of exciting things happening across the continent. It is becoming less volatile, creating a better environment for business development, and there is far greater stability. what’s more, six of the top ten fastest growing economies in the world are in Africa. there is a rapidly growing middle class. And urbanisation is increasing faster than the infrastructure is able to keep up with. these are undeniable facts that bode well for “the right players,” says John Samaras, CeO of Zambian earthmoving and plant hire firm Foveros Mining. Naturally, he is looking to tap into the opportunities as he sees them. “Zambia is Africa’s top copper producer and has enjoyed a spectacular boom; it has been great for business.” He has a point. the main stakeholders in Zambia’s mining industry – the likes of First quantum Minerals, Vedanta Resources, Barrick gold, and Vale – are either scaling up investment or expanding production capacity and there is a reported $6 billion coming into the country’s mining sector. the government says it plans to increase copper production, which dropped to 824,976 tons last year from 881,108 tons the previous year, to about 1.5 million tons in the next five years. “there are obviously opportunities for us in mining,” Samaras says. “From an operational point of view I think we are going great. we are acquiring some more assets, some more mining equipment, and we have placed orders for next year. the business is expanding; we are looking at increasing our turnovers year-on-year and generally becoming more efficient and more productive. we have around 200 people at the moment and we

anticipate by June next year being up another 50 or so. that is just in the mining operations. As a group we employ over 3,000.” Foveros was established in April 2006 as a subsidiary to triple S Ranch Ltd to service growing demand for earthmoving equipment in Zambia. From humble beginnings in the agriculture sector it now owns a fleet of assorted excavators, articulated dump trucks, graders, bull dozers and support equipment. “we are part of the Olympic Milling group of Companies located in Zambia’s Copperbelt and the group is involved in a diverse mix of industries but agro-processing is the core business and from that we have ventured into mining, dam building, bridge clearing and general earthworks,” Samaras says. “It is a family business.” Of course in recent years the control of the mining industry in Zambia has moved from private to State and back to private again and this is important for companies like Foveros as history has shown that the performance of the mining industry in Zambia has tended to be good during the time of private control, as opposed to the time of State control. “Obviously our country has stability, we have a new democracy and things are going great,” Samaras says. “we’ve had a whole raft of investors come in from all over the world and generally Zambia is a massive mining destination. It could soon overtake Australia and Indonesia in terms of copper production.” But mining isn’t the only industry where there is opportunity – they exist too in infrastructure, energy, utilities and basically anything where earth needs to be moved. the ratio of projects versus available equipment very much puts the ball in Foveros’ court. And it isn’t just within Zambia’s borders.

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F overos

Mining

“As a business and a company there has been massive demand for earthmoving equipment, not only in Zambia but in the region,” Samaras says. “We have done work in the DRC and we are looking at projects in Malawi and Mozambique. There is great scope in the future as demand outstrips availability.” Great scope indeed, particularly in agriculture. “The current agricultural and mining policies that the Government has in place are ones that stimulate industries and propel the economy,” Samaras, a proud Zambian, says. “Our company embraces these traits and it is in our opinion a major opportunity for growth. “I think it is all about diversification at the moment. The environment is changing quite a lot and because we are in the agro-processing sector I would like to see us getting more and more involved in that key market. Mining is finite. Agriculture in Africa, for us, is basically the future. Generally, the population in the world is exploding and somebody needs to feed everybody. Over the last two years we have seen that industry growing and big international companies are now looking for land to build dams, new roads, airports, production facilities and that sort of thing. You have all this land that is going to be developed and we don’t want all eggs in one basket.” Samaras says he is confident of “tapping into this growth potential” because Foveros is “an African company”, an advantage because it doesn’t have to “navigate the precarious waters of Africa”. “I think we’ll be able to take advantage of the astounding growth prospects in Africa,” he explains. But important in that will be the staff it employs. Foveros employs some of the best in the business. “What we have seen is that you can have the biggest and the best equipment but if you don’t have a motivated

workforce and a workforce you can rely on it is very difficult. Zambians by their nature are good people; they are hard working and strive for success all the time. I think that is a major advantage we have,” Samaras admits. He says the majority of the firm’s equipment comes from major industry players like Volvo and Caterpillar – who need little introduction – and in a way it is to be expected because of the challenges of manufacturing equipment suited to African conditions. “Machines from the likes of Volvo and CAT have proven themselves in Africa’s tough terrain and environments,” he explains. “Importantly too they also backed up with superb aftersales service. The big guys have huge networks and their service delivery is impressive. That is vital in this industry. Some of the locations we serve are pretty remote and they’ll go the extra mile in terms of getting components there when you need them.”

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BARLOWORLD EQUIPMENT ZAMBIA Barloworld Equipment Zambia is the sole dealer for Cat® earthmoving machines, power systems and related equipment in Zambia We have built our reputation and comprehensive customer base not on selling machines, but on providing solutions Barloworld Equipment believes in mutually beneficial partnerships with customers, in other words, in Working as One Our strategic planning therefore looks ahead not only to the future of our business but to the future of our customers’ businesses so that we can continue to provide appropriate, value adding solutions to our customer’s equipment procurement and management needs Broadest range of machines from one source Offering New, Cat Certified Used, or Rental. Tel Lusaka: +260 212 288 218 Kitwe: +260 212 211 311 Email zm_marketing@barloworldequipment.com

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Nobody moves more in the mining industry. That's why they choose Cat® equipment. Caterpillar and Barloworld Equipment gives the mining industry access to the broadest line of underground and surface mining equipment in the world from one source. And behind the great products are the people. A team with over 85 years of experience, innovation and entrepreneurship. And one focus: helping mining customers succeed.

THE WIDEST RANGE OF MINING MACHINES FROM ONE SOLUTION Contact Us:

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E-mail: zm_marketing@barloworld-equipment.com

Another factor is that the big boys are willing to “grow with companies like Foveros,” Samaras says. “We grow together and that is absolutely vital in Africa. Whenever we are discussing or negotiating we want partners that work with us. It doesn’t end at the end of the day when the lights go off. We are still there and we want them to be also. It is a relationship we have built over a number of years.” Making sure Foveros is a well run, with the best machines, the best service and highest efficiency is Samaras’ main goal. “Also, from a customer perspective, the environment is becoming more and more of a concern and that is driving change in that we have to be more aware of things like disposal of waste and the efficiency of our engines. All of that plays a role,” he concludes. To learn more visit www.foverosmining.com.

Aon Zambia differentiates itself from its local competitors through its ability to provide a full range of insurance and risk consultancy services via a global network of expertise. This includes retail insurance broking (all classes of non-life insurance), risk management services (loss control surveys), employee benefits consulting (group life assurance, funeral and medical schemes) and pension fund administration. Aon Zambia has a staff complement of 51, is headquartered in Lusaka and operates a Copperbelt Branch located in Kitwe. Tel: +260 211 367288

www.aon.com/zambia Acacia Park, Plot 22768 Thabo Mbeki Road, Arcades P O Box 35403, Lusaka, Zambia

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B & Q

D redging

Ltd

C hampion of Nigeria

Nestoil is one of Nigeria’s leading indigenous oil and gas companies Along with its sister companies Hammakopp, Gobowen, Energyworks Technology Limited, B&Q Dredging Limited, Century Power Generation Limited and Time Power Global Dynamics Limited, it is a pioneer of local content in Nigeria’s oil and gas sector and an emerging force in the local power industry. Africa Outlook talks to Austine Agomuoh, Nestoil’s General Manager, Projects, about the firm’s dredging arm B&Q Dredging. Writer Ian Armitage Project manager Arron Rampling

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hen B&q Dredging, a subsidiary of Nigerian oil and gas giant Nestoil, was founded in 1996 it had a rather ambitious goal – to become the first real indigenous Nigerian dredging company. It soon delivered, says Austine Agomuoh (pictured), Nestoil’s general Manager, Projects. “In 1996 the company was re-organised as a fullfledge oil servicing company providing professional engineering services, dredging, flood and erosion control, shoreline protection and consolidation, canalisation urban renewal and reclamation services to Nigerian energy, oil and gas industries,” he says. “B&q Dredging has a total of seven dredgers. Out of this number, four came from a company that was divesting and the other three were acquired from Manufactures overseas. Among the fleet is the enesto dredger, one of the biggest dredgers you can get around in Africa. that was acquired in 2007 specifically to address the requirements of one of the projects that Nestoil was doing at the time – the 97 kilometre Nembe Creek Cawthone trunkline (NCtL) project awarded by Shell.” this is a good point at which to take a step back and look at what’s been happening behind the scenes in Nigeria’s oil and gas industry so you can understand the build up to the award of the NCtL contract. In 1990, Nigeria’s Federal government took key steps to increase local content in the industry and it set a target of 45 percent by the end of 2007 and 70 percent by the end of 2010. the 2007 target could not be met because the multinational companies who dominated the industry didn’t want to involve indigenous operators in their activities. But the Nigerian Content Bill opened the door for indigenous participation. It was a watershed moment for firms like Nestoil and B&q Dredging.

Austine Agomuoh, Nestoil’s General Manager, Projects

“Following that we have enjoyed growth,” Mr Agomuoh says. Indeed, as he explained, Nestoil famously executed part of Shell’s 97 kilometre NCtL pipeline delivered in 2010, one month ahead of schedule. It turned out to be a mammoth project and B&q Dredging was responsible for a number of key aspects of it. The project consisted of five kilometres of a 12-inch diameter pipeline from the Nembe Creek III manifold to the Nembe Creek tie-in manifold; 44 kilometres of a 24inch diameter pipeline from Nembe Creek to San Bartholomew; and 46 kilometres of a 30-inch diameter pipeline from San Bartholomew to Cawthorne Channel. It was challenging. “we are proud of our work there,” says Agomuoh. “It was a major milestone in Nigeria

and brought to an end domination of foreign oil companies in the construction of mega pipeline projects. it was the first time a wholly Nigerian company was awarded a contract of this magnitude in a very difficult terrain and completed it successfully, safely and ahead of schedule.” Significantly the contract was awarded at a time when there was heightened insecurity in the oil-rich Niger Delta, which brought the Nigerian petroleum industry to its knees. And despite the security concerns, the contract was delivered ahead of schedule. “B&q Dredging did the entire portfolio of River crossing in package A of the NCtL and two rivers in package B. Package B belongs to

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B & Q

D redging

Ltd

©www.bqdredging.com

Italian oil field services contractor Saipem. Package A belongs to Nestoil,” Agomuoh says. “We are very proud to have successfully completed these River Crossings, between 2009 and 2010.” This isn’t the only high profile project B&Q Dredging has been working on. It has also worked on the Belema Delivery line project, completed in 2011, SokuSanbath project River Crossings completed in 2013, for example. “That one was as a result of the work we did at the Krakrama River crossing project,” says Agomuoh, adding that, “moving forward to today, we are handling all the dredging works on a project with Neconde, a Nestoil-led consortium which has acquired a 45 percent stake in the OML 42 from Shell, Total and ENI, containing developed oil fields and gas reserves. We are doing work there, for example canalising

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the wells. We were contracted to do all the dredging and presently we have four dredgers deployed to that project.” B&Q Dredging has also been working with Setraco, a leading engineering construction company.

Today, all the assets that we have and deploy are owned by us. That gives us a competitive advantage in the industry”

Enviable Reputation

We shouldn’t be surprised by the success it has enjoyed. The firm has a goal-driven management team, a team renowned for its foresight and proactive stance – a key part of its expansion over the years. They were fast movers in the oil and gas field and have built up an enviable reputation. “We have team of professionally qualified, widely travelled and internationally connected managers and B&Q Dredging is a top flight, knowledgeable, competent and experienced dredging/canalisation contractor,” says Agomuoh, adding,

“In 2007 there were a lot of security challenges in the Niger Delta and companies divested. we could have decided not to invest but we saw an opportunity, a great opportunity. even though there were a lot of challenges the market was there, there was a demand. we were brave. Somebody has to do the job and we took the chance, investing in the dredgers. And now we lead the market. “today, all the assets that we have and deploy are owned by us. that gives us a competitive advantage in the industry.” He expects a bright future. “Are we well placed for the future? yes. we are tendering for a lot of jobs and we are getting a lot of work. we’re excited.” to learn more visit www.bqdredging.com.

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bridge

A & Story

David Goliath

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finance

Bridge’s core business is retail unsecured lending. The company was established in 1994 in order to provide all South Africans with the right of access to credit. Writer Rebecca Wigmore Project manager Sheridan Halls

hen talking about the future of Bridge, its Chief Growth Officer Neels Grobler is buoyant: “There’s only one way and that’s upwards.” His optimism may prove to be wellfounded. The company has a footprint of over 120 Bridge Loans branches in South Africa where its core business is retail unsecured lending to the growing South African middle class. A general overall upturn in the country’s economy and an unprecedented investment in current infrastructure have allowed Bridge to provide the South African market with up to R150 million worth of unsecure credit per month. As Grobler explains, “We do not lend to the corporate space currently. We are absolute retail players.” Indeed, integral to Bridge’s success is its “focus on small, short-term unsecured credit,” that runs around six months on average. Bridge is also committed to technological innovation. “We are a technology-driven company. Our whole credit riskscoring mechanism makes sure we give correct credit of the correct amount to the correct people. All these decisions are driven through technology,” Grobler says. And the firm is steered by a dynamic executive team consisting of CEO, Emile Aldum, Clifford Coombe (Chief Legal Risk & Compliance Officer), Conrad Erasmus (Chief Operating Officer), Chief Financial Officer Michael de Klerk and of course, Grobler himself. Despite a sense of general optimism, the world of unsecured finance is not without its difficulties. Bridge is very much a company that wants to prove itself in the marketplace. “The micro lending industry certainly also has its challenges when it comes to securing adequate capital investment for our industry,” Grobler admits. “During the past year the

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bridge

unsecured credit industry underwent great challenges. Bigger players in the unsecured credit space were starting to experience a much high level of impaired loans than usual. However, what distances us from them is that we are a legitimate sizable niche player in this highly regulated environment who can react and scale quickly to economic changes and industry challenges. For us it’s absolutely imperative to be ethical and a responsible provider of retail unsecured credit to the market.” Bridge’s ability to work outside of traditional lending scenarios is one of the reasons that its future looks so bright. Its financial strategies are nimble and reliable when it comes to making a return. “We’re different to the bigger banking scenarios in the sense that we provide short-term loans in smaller amounts –

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We are a technology-driven company. Our whole credit risk-scoring mechanism makes sure we give correct credit of the correct amount to the correct people”

our average loan currently paid out is in the vicinity of R2,800 whereas larger credit providers are in the R30,000 to R40,000 ranges, and this sort of loan is offered over a much longer period. Our exposure is small and we recoup the capital quickly,” Grobler says. Funding unsecured loans also has its own challenges hence Bridge is implementing a long-term capital provision strategy. This will entail both a debt and equity funding model in order to boost its growth in the unsecured credit market and tap the market potential by offering various above average return financial products to potential investors. One such example is the Bridge Savings Bond. Bridge will make retail saving bonds directly accessible even to lower income customers through cutting out the middle man, i.e. corporate financial institutions.

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bridge

Redinc Capital

edinc Capital is a boutique corporate ad-visory firm that provides independent advice to corporates and financial sponsors on financing strategies throughout Africa. Our independent advisory model enables us to objectively examine all possible structures and alternatives and develop the best solution for our clients. We are specialists in delivering creative debt funding solutions from a wide range of financing sources, including corporate bonds, commercial paper, securitisations paper and syndicated loans. We provide Debt Sponsor services to corporates looking to list debt instruments on the Johan-nesburg Stock Exchange.

Bridge’s ability to work outside of traditional lending scenarios is one of the reasons that its future looks so bright”

Historically, South Africa has not had a strong culture of savings, but by offering bonds at an inaugural R50,000 and then dropping the price to as low as a R1,000 minimum, Bridge is making a real attempt to provide a way for its loan clients to also become investors. This isn’t the only way in which Bridge is committed to “giving back” to its customers. With its regular support for causes that include School Project Programmes, community sport team sponsorship and regular hamper donations to the Orphanage Association, Bridge has a strong drive of community engagement. The company is also committed to providing education regarding fiscal

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We also advise our clients on equity capital raising alternatives, mergers and takeovers, sell-side and buy-side assignments, buy-ins and buy-outs, joint ventures and strategic alliances. We offer specialist advice to asset finance and leasing businesses throughout Africa that covers the full spectrum of the value chain. For OEM’s seeking to set up their own captive finance house we can assist through the provision of a turnkey business process outsource solution. We provide outsourced administration ser-vices of special purpose vehicles that are utilised in structured finance and secu-ritisation transactions. Tel +27 11 465 2909 Email enquiries@redinccapital.com

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bridge

responsibility and making sound financial decisions through its Financial Literacy Programmes. It isn’t only Bridge’s customers that receive positive treatment. Bridge has just under 700 employees, most of whom work in the 120+ branches across South Africa. According to Grobler, “Employees want to work for a dynamic company and that all comes down to branding. The Bridge brand has been in existence for many years. We are optimistic about growing an even more positive brand identity in the coming years” Bridge has certainly worked hard to make sure this is the case, engaging the services of King James (one of South Africa’s top marketing and advertising agencies) and working with design firm Jam Factory to produce its distinctive corporate identity. Recently, the very famous Faction Media House has signed a strategic partnership with Bridge to enhance, execute

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Compuscan Established in 1994, Compuscan is a full service credit bureau committed to providing credit management solutions across the entire credit life-cycle

Because we are so technologydriven, there are a lot of people who want to be part of that excitement and journey. We do things in a different way”

We operate in countries across Africa including South Africa, Namibia, Botswana, Uganda, Ethiopia and Lesotho Our range of comprehensive datasets provide a holistic view of consumer and business information In addition, our range of credit management products and services aim to result in greater efficiencies and reduced risk for our clients We also extend our services to consumers by providing access to free credit reports on an annual basis Tel 0861 51 41 31 Email info@compuscan.co.za

www.compuscan.co.za

As a proudly South African credit bureau, Compuscan’s advanced solutions are leading innovation across the African continent. With our range of credit management solutions and reliable credit bureau data, clients across Africa trust Compuscan as their credit bureau of choice.

www.compuscan.co.za and further strengthen its marketing strategies and plans. But it’s really the challenges of the business that have made Bridge such a stimulating place to work. “Because we are so technologydriven, there are a lot of people who want to be part of that excitement and journey. We do things in a different way,” grobler says. “we provide a certain amount of capital for training at all levels in our business. we want staff to be up-skilled and to create a strong entrepreneurial spirit within the company. People contribute [to Bridge] as much as we contribute to them. In addition to the training programme, we have developed a platform called the “Innovation Circle” which allows staff members a space to offer innovative ideas and spearhead plans for improving efficiency, reducing costs and pursuing operational excellence. this scheme is buoyed by financial rewards for the best ideas and

Emile Aldum, CEO

allows every member of the workforce a chance to make a positive difference to the company.” Bridge is consistently looking to the future and ways to expand its services and product offering. Among others is an ambition to secure a banking licence within the foreseeable future. there are also exciting plans for growth. Currently Bridge has a one percent market share of the South African unsecure credit market. Hence, it is a company that seems bound for greater success. “we are geared to grow our market share three or fourfold over the next four to five years.” Grobler concludes. “we’re on a marketing drive to secure external funds and once we have there’s absolutely no limit to where we can go. we’ve built a cuttingedge technology driven engine that’s capable of so much more.” to learn more visit www.bridge.co.za.

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S T E R L I N G

B A N K

Sterling Bank l aunches

Agent Banking

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inan

Sterling Bank’s Agent Banking underscores the need to provide access to affordable financial services and products for every Nigerian. Writer Robert Michaels Project manager Sheridan Halls

igeria’s banking sector imploded after the 2008 global financial crisis but has since recovered and is in good stead. Nobody illustrates that better than Sterling Bank, one of Nigeria’s fastest growing banks by revenue and profit in 2013. Its third quarter unaudited results revealed its nine month pre-tax profit rose to N6 billion, up 26 percent from the same period last year. Gross earnings at the lender grew 31.4 percent year-on-year to N65.1 billion up to September 30, compared with N49.6 billion in the same period a year earlier, the Bank said in a statement. “I am pleased with the steady progress that our bank has made in the first nine months despite regulatory headwinds arising from tighter monetary policy measures,” said Yemi Adeola, Sterling Bank’s CEO. “Top-line revenues remained strong having increased by 31 percent year-on-year to N65.1 billion. In line with our targets, we grew deposits by 29 percent, net loans by 36 percent, while reducing the proportion of non-performing loans to two percent. In the quarter just ended, we successfully launched a N12.5 billion equity issue by way of rights for which we are currently awaiting final regulatory approval. We are also in the process of concluding a private placement of $120 million to further strengthen our capital position. In the final quarter of the year, we will continue our rollout of conventional and alternative delivery channels to bring our products and services nearer to our target markets and further diversify our income streams. Our capital plan remains on track and we expect to close 2013 with record customer numbers arising from gains made year-to-date in this respect” he added.

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S T E R L I N G

B A N K

Panar Limited

anar Limited was established in 1981 with a capacity to produce UPVC pipes from 20mm diameter to 500mm in different pressure rating i.e. 4 bar, 6 bar, 10 bar and 16 bar The pipes are produced to meet International or national standards such as DIN (Germany), ISO, EN and BS as per the customer demand. Geokev Company Nigeria Limited, established in January 1988 with a wide range of PET Bottles, Jars, performs, HDPE and PP containers Our modus operandi is to be market leaders and not followers e.g. we were the first company In Nigeria to convert pharmaceutical packaging from glass to PET. We pioneered “in mould” manufacture of PET vegetable oil bottles with handles in Nigeria. Our main products under current production are: Pressure Pipes

Boost for Nigeria

In November, that rollout of “conventional and alternative channels” saw Sterling Bank inaugurate its agent banking service which is expected to boost the financial inclusion strategy introduced by the Central Bank of Nigeria in 2012. It is a major milestone and, as Sterling Bank’s website puts it, agent banking “aims at taking banking to the unbanked/underbanked via an array of products that will appeal to all adult Nigerians in a cost efficient manner”. Services on offer include accountopening, deposits, withdrawals, bill payments, funds transfer and airtime top-up services. “CBN as a matter of policy hopes that the whole unbanked Adult population of our society is financially included by 2020; especially by relaxing the Know Your Customer (KYC) requirements for certain small/medium businesses,” Sterling Bank’s website adds.

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Drain Pipes Cable Ducting and Conduit Pipes Riser main pipes with SS couplers

I am pleased with the steady progress that our bank has made in the first nine months despite regulatory headwinds arising from tighter monetary policy measures”

Borehole Casing and Screens Hand Pumps- Tara pump, Ruwatsan I and Ruwatsan II Rubber Ring Gasket for drain and pressure pipes PET Bottles from 50ml to 5 ltr with side handle and top handle PET Preforms from 11.5gram to 120 gram with various neck profile HDPE Containers from 60ml to 30 ltrs Various types of closures Tel 234-1-7736447 Email info@panargroup.com

www.panargroup.com

f eat u re

www.panargroup.com

Product details: • Wide range of UPVC pipes from 20mm to 500mm diameter with 4bar, 6bar, 10bar and 16bar pressure ratings • Riser main pipes with SS couplers • Borehole Casing and Screens • Hand Pumps- Tara pump, Ruwatsan I and Ruwatsan II • Rubber Ring Gasket for drain and pressure pipes • PET Bottles from 50ml to 5 ltr with side handle and top handle • PET Preforms from 11.5gram to 120 gram with various neck proﬁle • HDPE Containers from 60ml to 30 ltrs • Various types of closures

Head Office: Plot 447, Apapa-Oshodi Express way, Near Cele Bus Stop, Ijeshatedo, Lagos, Nigeria Tel: 234-1-7736447, 08095207575, 08140126555, 08095207577, 08103772034 E-mail: info@panargroup.com Kano Sales office: Plot 21/22, Sharada Ind Estate, Phase II, P.O.Box-6248, Kano, Nigeria, Tel: 08033186011 Email: panarkan@panargroup.com Lagos Sales office: Plot 447, Apapa-Oshodi Express way, Near Cele Bus Stop, Ijeshatedo, Lagos, Nigeria Tel: +234 (0) 8095207332, +234-1-7753460 Email: skdas@panargroup.com

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S T E R L I N G

B A N K

The CBN’s guidelines have been developed to ensure increased agent activity in the delivery of banking services outside the traditional brick and mortar bank branches, through additional financial access points such as existing retail stores, petrol stations or post offices or via technology e.g. mobile phones. Sterling Bank’s agent banking underscores the need to provide access to affordable financial services and products for every Nigerian and will lead to economic development as well as better life for all Nigerians. The Governor of the CBN Lamido Sanusi has publicly stated that the financial inclusion strategy was aimed at reducing the number of adult Nigerians, who are excluded from formal financial services from 46.3 percent in 2012 to 20 percent in 2020, with specific targets for payments, savings, credit and insurance.

Eterna Plc Our business: Lubricants Manufacturing We established a technical trading relationship with Castrol in 1991. The relationship has developed over the years resulting in licenses to blend, market and distribute world-class BP Castrol lubricants in Nigeria. Eterna Plc is the only Company licensed to blend Castrol range of Marine lubricants in Nigeria. Petroleum Storage Terminals We own and operate a 30 million litre facility for storing petroleum products at the Ibru Jetty, Ibafon, Apapa, Lagos. We own an Aviation tank farm along Bill Clinton Drive at the Nnamdi Azikwe International Airport, Abuja. Fuel Stations We have secured strategic sites and are developing a network of modern fuel stations. Upstream Products • Transaqua HT • Brayco Micronic SV • Turbo-k Turbine Detergents • SPD-Surface, Production & Drilling Specialty Lubricants Marine, Automotive & Industrial Lubricants • Castrol Marine Lubricants (engine oils, hydraulics, cylinder oils, compressor oils, turbine oils, refrigerating oils & greases) • Automotive & Industrial Lubricants (engine oils, gear oils, circulatory oils, hydraulics & greases). Power Generation & Offshore • Transformer Oils Aviation Lubricants • Air-BP Aviation Lubricants Toll Blending Arrangements We offer Toll Blending services for a select range of lubricants, hydraulics and greases. LPG, Natural Gas and Associated Products We have commenced strategic investments in the distribution of natural gas. Head Office 5A Oba Adeyinka Oyekan Avenue, (Formerly Second Avenue) Ikoyi, Lagos Abuja Office Plot 1031 Obafemi Awolowo Way, Utako District, FCT Abuja Port Harcourt Plot 184a Trans Amadi Industrial Layout, Port Harcourt Tel +234 1 4605316, 4605317, 4605318, 4604061, 4604062 Email info@eternaplc.com

www.eternaplc.com

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S T E R L I N G

B A N K

As a bank, we owe it as a duty to play a role in creating wealth across the board. It is not enough to embark on Corporate Social Responsibility or charity initiatives”

According to Sanusi, sustaining the country’s development hinges on ensuring that at least 80 percent of all adult Nigerians have access to affordable financial services. Speaking at the inauguration held at the Makoko Fish Market in Lagos, Sterling Bank’s CEO said the decision to launch the initiative came a few days after the Bank’s management ended a strategic retreat that was meant to redefine its reason for being - enriching lives. “Today, there are more than 70 million Nigerians who are living below the poverty line,” Mr Adeola said. “As a bank, we have a role to play in creating wealth across board. It is not enough to embark on Corporate Social Responsibility or charity initiatives. We must remember that progress in the poorest parts of the country will benefit all of us in the long run.” “Every now and then, plans to eradicate poverty and bring financial services to the unbanked are discussed with much hype and promise; but in reality, no real action is taken. But this time around, I am pleased to announce that this is

a reality initiated by the CBN and propelled by Sterling Bank. Sterling Bank is taking action,” he added. Sterling Bank decided to launch the scheme at Asejere Market in Makoko, a predominantly fishing community in Lagos because of the market’s significance in the society. “We are strategically targeting our financial inclusion initiatives at communities where our efforts will have the greatest impact. We shall continue to provide creative ways to bank the unbanked,” he explained. Customers are encouraged to learn more about the Bank by visiting www.sterlingbankng.com. Sterling Bank Plc is a leading commercial bank in Nigeria with total assets of over N700 billion and one of the country’s fastest growing banks. Originally incorporated in 1960 as NAL Bank (the country’s first investment banking franchise), it acquired the operations of the erstwhile Equitorial Trust Bank in November 2011 in pursuit of its growth and expansion plans. The bank currently operates out of 165 branches, about 4,648 POS and 241 ATMs across Nigeria.

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inan

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R eso l u tion

I ns u rance

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ast year marked a period of exciting change for Kenya’s Resolution Insurance. Formerly known as Resolution Health east Africa, the company changed its name to reflect its change in status: in February 2013, the country’s Insurance Regulatory Authority (IRA) gave the go-ahead for Resolution to become a general insurance provider. this means that Resolution is now able to underwrite, retain risks, make investments and better safeguard policy obligations. the company’s focus remains on health insurance although there are significant plans to diversify the insurance products offered to customers across the region. this isn’t the first time that the company has been seen to lead the way with health insurance – it celebrated its tenth anniversary in 2013 and, in 2003, was the first firm to be registered as a medical insurance provider.

Serving the working man

Resolution Insurance recently celebrated its tenth anniversary and has eyes on expansion. Writer Rebecca Wigmore Project manager Sheridan Halls

At present Resolution serves 60,000 active members, most of whom are members of Kenya’s burgeoning middle class. the company also works with small- to medium-sized employers in order to provide healthcare packages for individuals, groups and corporate entities. Resolution’s approach allows it to reap the benefits of growing businesses. It boasts a strong network of medical service providers including hospitals, clinics and pharmacies who are based across east Africa. Prospective patients can use their Resolution card to receive help with treatment from the list of practitioners published on Resolution’s website – as Resolution deals exclusively with these medical professionals,

Mr Frost Josiah, Dr Jacqueline Kitulu, Mr Macharia, KRA, Mutike Musangi, Peter Nduati

Donald Nyadwe receiveing top Broker award for 2012

Dr Jacqueline Kitulu, Robert Onyango, Kellen kariuki, Eunie Nyakundi

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R E S O l u T I O N

I N S u R A N C E

ACTIVUS Activus provides enterprise class insurance software to the global medical and protection insurance and assistance markets. Our core platform, Act-isure is used by some of the world’s largest carriers. Activus views Africa as a strategic market and works with leading African medical insurers serving their rapidly growing markets.

Members of resolution staﬀ working together

it has been able to build a solid network of doctors, pharmacists and therapists that do not want to lose patients by being unaffiliated with their insurer.

Nduati’s grand plan

Kenya is by no means the sole focus of Resolution’s business acumen. CeO Peter Nduati has spoken publicly of his ambitions to extend Resolution’s reach as part of its vision to be the ‘recognised leader and preferred provider of insurance services in Africa’. Resolution already has partnerships in uganda, South Sudan, Sudan with International Air Ambulance Care, Speed Insurance and Juba Insurance. Recently, Nduati was also pleased to announce that Resolution will begin trading in Burundi in the near future. this extended reach is part of a triumphant upswing in profits that saw Resolution bring in Ksh2.08

100

billion in 2012. One of the reasons for this sharp increase in profits is not only the diversification of what Resolution can offer its clients but also the change in Kenyan society. Improvements in living standards mean that heart disease and HIV/ Aids are being replaced by another killer: cancer. Cancer treatments are often lengthy and expensive, with families having to sacrifice much in order to afford the medical care they need. Resolution’s healthcare packages allow cancer patients a way to fund treatment without ruining themselves financially.

Service with a smile

Resolution’s commitment to excellent customer service must also account for the firm’s rise in profits. Quite apart from the highly trained sales and operational staff, Resolution has a dynamic marketing team that utilises social media to great effect. the company operates a breezy and

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the medical insurance market traditionally operates on thin margins. Africa’s medical insurers face additional challenges educating consumers into the rights and obligations that an insurance policy confers whilst agreeing fair tariffs with the increasing but small numbers of medical providers who have considerable negotiating power. Act-isure’s world class claims software provides the automated rules to minimise the claims leakage that can occur as a result. Act-isure also provides industry leading levels of automation and manages processes to required service levels. we have been delighted to contribute to Resolution Health’s success, a relationship that was the springboard to working with other African health insurers. Having established a presence in Africa we are looking forward to serving other African insurers who seek to serve the increasing numbers of companies and people who want to protect their families with health insurance products. To find out how we can help contact; Tel +44 117 316 09093 Email info@activus.co.uk

www.activus.co.uk

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CHANCERY WRIGHT INSURANCE BROKERS LTD Eric Omondi with the KIds at the childrens club

Chancery wright Insurance Brokers Ltd is an Insurance brokerage and consultancy firm established in 1991. Since inception Chancery wright has been perfecting insurance brokerage services. Internationally recognized by International Star for quality, geneva 2006 among others. Chancery wright is the award winner of best corporate lines broker 2013 by think Business initiative. For the past 22 years Chancery wright has been perfecting the art of insurance brokerage with remarkable success. We offer all classes of general and life insurance to corporate and individual clients. Tel +254 (020) 272 1555 Email chancery@chancerywright.com

www.chancerywright.com

friendly Facebook page, a twitter feed and a youtube channel which advise the public on the benefits of healthcare insurance, engage in polls and lifestyle conversations and respond to user questions and feedback. Also notable is the company’s engagement with wider culture – it regularly provides fun and improving opportunities for its policy holders, from discounts on fashion and pampering events to sponsoring sporting events and Christmas concerts. there are even opportunities for members’ children and Resolution offers regular ‘Fun Days’ and gifts two free tickets to every members’ child born in an allotted month, rotating the month for each Fun Day so that no-one misses out. these popular Fun Days are attended by around 1,000 people at a time and are full of activities that range from face painting to acrobatic displays.

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esolution has a dynamic marketing team that utilises social media to great effect

In a more serious vein, Resolution is also dedicated to making sure its members take advantage of healthimproving opportunities and publicises free breast cancer screenings, immunisations and health checks. this commitment to healthy living continues on the official website, where a wealth of articles on health issues like depression and early detection of cancer are provided free of charge. with all this online and social engagement, Resolution has positioned itself both as a socially constructive enterprise and a corporation that has not lost its sense of humour. As an exercise in positive branding, it’s hard to beat.

working with resolution at Resolution

Although around half of Resolution’s revenue comes from

finance

external brokers, the company still retains the services of around 300 internal employees. Around half of these employees are internal business consultants, dedicated solely to sales. Resolution prefers to hire salespeople aged over 25 with at least one year of sales experience – this is a firm that prizes loyalty, stability and keeping employee turnover low. Salespeople are offered incentives and consistent training and development to keep them progressing in their chosen field. There must be something in this formula – at a recent company team-building event, around 30 employees received a commendation for having been with the company since it was incorporated. So what’s next for a company that inspires such loyalty? Nduati’s

duati has called for tax incentives to inspire Kenya’s middle class to embrace life insurance policies and he has urged all insurance providers to play a developmental role in Kenya’s economic development

plans for expansion across Africa are well underway. There are challenges inherent in this project however not least that 50 percent of Kenyan people live below the poverty line. With this in mind, Nduati has called for tax incentives to inspire Kenya’s middle class to embrace life insurance policies and he has urged all insurance providers to play a developmental role in Kenya’s economic development. The key to success seems clear: consistent work towards an innovative, competitive marketplace and an economic climate where health insurance is accessible to an even greater proportion of the African people. For more information please visit www.resolution.co.ke.

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Mbesa kakenyi and Peter Nduati cutting the cake at the 10 client celebration

CEO PROFILE: PETER NDUATI Peter Nduati is the Founder and Chief executive Officer of Resolution Insurance. Aged 45, he is an astute entrepreneur, excellent manager, strategic planner and a remarkable human being. He is a business leader in Africa who has demonstrated through Resolution Insurance that it is possible to build an international brand from a simple idea. through Nduati’s stewardship the general insurer has grown rapidly in the last ten years and today has a presence in five African nations namely Kenya, tanzania, uganda, South Sudan and Sudan. In 2012, Resolution Insurance grosswritten premiums increased by 31 percent from Kshs1.58 billion to Kshs2.07 billion. Nduati is credited with taking a bold executive step that opened up enhanced benefits of medical coverage for individuals and families. As a result of his innovation, Resolution insurance became the first company to offer individual maternity benefits, optical, dental and hiV/

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Aids medical plans to individuals. the company now also covers pre-existing medical conditions for individuals. He has been involved in a number of Corporate Social Responsibility activities including community service, employee motivation or educational support as well as wellness checks and healthy living advice to members. Nduati was named entrepreneur of the year 2013 in the east Africa round of the Johnnie walker Blue Label CNBC Africa All Africa Business Leaders Awards. the continent’s most prestigious business awards, the AABLAs recognise innovators and pioneers in a variety of categories, reflecting the diversity of the African business environment. Similarly, he has received another recognition and has been admitted as a global Fellow in the Africa Leadership Institute, the ASPeN initiative. the Africa Leadership Initiative (ALI) is a collaborative effort of seven partner organisations in Africa and the u.S. to foster values-based, action-oriented leadership in Africa. ALI Fellows are

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highly successful entrepreneurial individuals from business, government and civil society. A Master’s degree holder in economics and Insurance, Mr Nduati is a chartered insurer with over 20 years’ experience in the Insurance Industry. He is a results-focused and effectual leader with proven ability to turnaround and has strengths in Strategic Management and Financial Planning, Marketing and HR Management and ensuring a good Corporate Culture. He is currently pursuing a doctorate programme focusing on entrepreneurship in Kenya. He is also the founder and director of First Benefits Ltd, Pine Creek holdings and Brown Oak Ltd which is an investment holding company. In addition, he sits on the board of Absolute Security Ltd and board of governors of Dagoretti High School. He is the Chairman of AISeC Daystar university and Director of Kenya Rugby Football union. A renowned family man, Peter is the proud father of four.

finance

FOR PROFFESSIONAL AND QUALITY SERVICE

Congratulations to Resolution Insurance. We are Proud to be associated with you.

It takes more than just looks to stand out in a crowded market We provide Insurance Brokerage service for: • Money • Machinery Breakdown • Contractors All Risk • Fire & Perils • Medical Insurance • Burglary • Cash In Transit • Fidelity Guarantee • Domestic Package • All Risks • Public Liability • Electronic Equipment • Motor • Travel • Personal Accident • Marine • Industrial All Risk • WIBA • Terrorism & Political Risk Cover Corporate House, Treasury Square Rd Mombasa, Kenya Tel: +254 – 41 – 2228455/65 Mob: 0722484866 Email: md@ams-insurance.net

Royal Office, 3rd Floor, Suite 32 Mogotio Rd, Off Muthithi Rd Nairobi, Kenya Tel: +254 – 20 – 8022305 Email: nairobi@ams-insurance.net

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PrintsCharming Africa Outlook talks to Shawky Hemeidan, the Managing Director of Lusaka-based New Horizon Printing Press. Writer Ian Armitage Project manager Ben Wigger

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hawky Hemeidan is one of the most passionate and interesting Managing Directors/ entrepreneurs I’ve ever talked to (and over the many years I’ve talked to a lot). He’s a confident, positive thinker who believes heavily in the projects and things he does – and he isn’t the sort of man you can keep in a box. These traits have helped to create one of Zambia’s leading printers, New Horizon Printing Press (NHPP). “We founded the business in February 2000,” says Hemeidan. “I’m the Managing Director and major shareholder of NHPP and we came into the country and started commercial printing such as catalogues, magazines, brochures and books and since then we have been re-investing into this industry in various diversified sectors.” A focus on customer requirements and a flexible approach has stood the company in good stead. “We are not afraid to invest - we ventured into new flexi printing machines and we diversified into packaging such as lightweight boxes,” Hemeidan continues. “For the past 14 years we have been re-investing and growing in the market whilst trying to satisfy the market needs and minimise the importation of printed materials. We’ve also invested in digital and large format printing as well as t-shirt screen printing. It’s the latest equipment and state-of-the-art technology.” Of course, it’s no secret that top talent makes businesses go. Whether you are a start-up business or a multinational conglomerate, you want and need top talent to grow and add value to your company. NHPP recognises this. “We’ve invested considerable resources in to our workforce and training is a major focus. We are one of the leading companies in our sector and we employ over 200 people. New Horizon’s policy is to grow in Zambia

to make sure that the country has a strong printing industry and is easily able to accommodate the demands from the manufacturing sector, service sector, and mining sector – all the sectors. We want to produce high quality products with the best turnaround time and the best price.” And there it is – two of Hemeidan’s defining characteristics, a willingness to take a calculated risk when necessary and a burning desire to be more. “This is a family-owned business and we all want to expand,” he says. “We give almost 12 hours a day as directors to our business and we are running the day-today operations, making sure that customer satisfaction is always there. This doesn’t just depend on price. There’s also quality, turnaround time and we want to make sure we can meet their demands on short notice.” Zambia’s investment climate is one of the most stable and attractive in Africa and the future of NHPP is certainly bright. Hemeidan is excited. “This is one of the most stable countries in the SADC region, maybe in all of Africa. It has a vibrant investment policy. Your investment is protected and is encouraged by the Government. They want to grow the manufacturing sector and you will have a lot of support. There is a lot of potential here in Zambia. If you are looking to invest you can make a good return on it here. It is secure and the Government is doing its best to attract investors into the country and offer incentives to people who wish to come here. As a business we are well positioned because of our diversification.” In the last 12 months NHPP has invested over $4 million into expanding its capabilities and strengthening its business offering. In the first quarter of 2014, NHPP will roll out 24 outdoor LED Screens nationwide at prime locations

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and will offer advertising and promotional space to local and international clients. For the first time in Zambia, NHPP will introduce state-of-theart machineries to print paper bags packaging for application like sugar, flour and mealie meal as well as other industries. Paper packaging is a “safer material and environmentally friendly” compared to plastic and other types of packaging, says the ambitious Hemeidan. “NHPP is the only and first press that can now offer spot UV based varnishing. SPOT UV Varnishing has been around in the printing industry for many years but love it or hate it, it remains one of the most popular creative print finishes ever. Spot UV will help our clients products to stand out from the crowd. Applying a high gloss varnish onto selected areas has the immediate impact of capturing the attention. It not only helps to create interest in the printed piece but also promotes the impression of a quality, premium product and international standard. “We are always looking at how we can grow and compete,” he adds. “We’re buying in bulk and doing volume work in order to reduce our costs in order to compete with the world market – there is lot of imported product from Asia, Europe and African neighbours like South Africa and Kenya. We are very competitive and, of course, being in Zambia, we are local and on the ground so the service will be far better than any foreign company can offer.” Looking to the future, security printing is one option Hemeidan is exploring. “Cheque books and security featured printing such as holograms... that is on the table,” he says. “There is a need for it in Zambia. Most of the security printed materials are coming from outside Zambia currently. It is a niche market that we are looking to penetrate.”

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What Mr Hemeidan is most proud of isn’t that his business has grown and continues to grow or that it has become a leader in the market. He is most proud of the fact that, through its competitiveness and ambition, NHPP has stimulated the local market and fellow local players have emerged. “Let me tell you, ten years ago no one would have had the capacity to do a very good job at a very good rate but now people see through our example that other companies can compete in this sector,” he explains. “We have had a very positive effect on the sector. The printing market has grown and we’ve had a positive impact on the printing industry as a whole in Zambia and we are very proud of this. Born in Liberia, Hemeidan says he now views Zambia as his “home country” and plans to become a nationalised citizen next year. “I feel that Zambia is my home now. I’m the Honorary Consul General for Zambia

F A

Ekman Africa

Our comprehensive service package can be tailor-made to add value to the supply chain of any of the following products: • Pulp • Paper and Packaging • Recovered Materials • Bioenergy Contact: Grant Robertson Cell: +27 83 658 5319 Office: +27 21 680 5327 Email: grant.robertson@ekmangroup.com | www.ekmangroup.com Ground Floor, Liesbeek House, Gloucester Road, River Park, River Lane, Mowbray 7700, Cape Town, South Africa

We diversified into packaging such as lightweight boxes”

in Beirut and I represent Zambia in that respect and I am very excited about Zambia’s future because it is a destination where your return on investment is very good. It is a winwin situation. I would recommend for anyone to come to Zambia and invest here. the tourism sector, manufacturing sector and even the printing sector – I don’t mind having competition. It is good for the consumer. there is a lot of space for investment to come in.” we wish him well.

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A breath of

fresh air German efficiency is propelling Zambian air conditioning, ventilation and refrigeration specialist Drake & Gorham to new heights. Writer Ian Armitage Project manager Tom Cullum

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ambia is booming and to capitalise on its potential the Government has announced a robust development agenda anchored on critical sectors of the economy, namely agriculture, construction, tourism, manufacturing and mining. It is a fantastic time to be in business. “The last year has been good, we must say,” says Mark Lüring, the Managing Director of local air conditioning, ventilation and refrigeration specialist Drake & Gorham. “We exceeded our initial expectations and targets for 2013 and managed to penetrate into the mining sector which is a very key industry here in Zambia and ever growing. That is very pleasing. As a local company to get your foot in the door there is encouraging because these

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are all international firms playing in the mining space and they usually bring in their own suppliers from outside of the country. We have managed to get our foot in the door there and that industry has great potential for us, with good growth potential.” Lusaka-based Drake & Gorham is ahead of the game and is certainly a leader in its markets. Chief Executive Arne Lüring and his son, Mark, are determined to build on its authority. “We’ve a great reputation,” Arne says. “Our main areas of work are in air-conditioning, ventilation and refrigeration, where we are number one here in Zambia.” The firm isn’t a newcomer by any means. It has a heritage that stretches back over 55 years. The Lüring Family acquired Drake & Gorham through an MBO several years ago.

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We brought Daikin on board in order to offer a complete portfolio, a full product range of Air Conditioning Solutions”

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“We are well experienced in all works regarding air conditioning, ventilation, refrigeration, chillers, cold storage facilities and equipment, including the supply and installation of all required or client requested materials and equipment,” says Mark. “We provide full back up and after sales service on all supplied equipment and installation work.” In a significant move, Drake & Gorham added Daikin to its portfolio. Daikin is an international leading manufacturer of environmentally friendly air conditioning equipment for all domestic, commercial and industrial applications. “We are very excited by that,” Mark says. “We brought Daikin on board in order to offer a complete portfolio, a full product range of air conditioning solutions. Daikin fills in the gaps in our offering and it is one of the most renowned air conditioning brands worldwide. We have managed to get a partnership with them in Zambia and there is great growth potential for our business in that. It is a premium brand and sits alongside Samsung which we’ve had for almost 15 years as a valued partner.” It is this that makes Drake & Gorham different. It is a pioneer in the local industry. “Just because we are in Africa or the developing world doesn’t mean we can’t be at the cutting edge,” Arne admits. It is its relationship with electronics giant Samsung that enhances their goal to continuously be at the forefront of the newest latest technology. An incentive for Samsung’s Triple Protection technology in air conditioners, for example, came from inside Zambia. “We have a historic relationship with them and were in fact the first company to introduce Samsung air conditioning into Zambia,” says Mark. “Samsung is a world leader

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in air conditioning technology and when we first got in contact with them we were convinced it was a good product, decided to promote it and use it as our core brand. We have done a lot of collaboration with Samsung in the past, providing them with important information on the particular challenges we face in our market to improve their equipment with our feedback on challenges we were facing and played a role in the development of their Triple Protection technology. We wrote to them on several occasions to say we had trouble with power in Africa, particularly Zambia, and 12 months later it led to the development of this technology. We have a fantastic relationship and over the years it has grown from strength to strength – if you come to Zambia and speak about Samsung people will automatically associate that with Drake & Gorham.” The Lüring’s are, as the name suggests, of German descent. Of course, one of the main stereotypes associated with Germans is efficiency and a certain determination to achieve the highest standards, without compromise. This is true of the culture instilled throughout the business. “My dad is the CEO of the company and from Germany. He believes in quality of the highest standard without any excuses or compromise,” Mark explains. “We have never seen the fact we are in Africa as an excuse. We were one of the first companies to introduce multi-split systems into Zambia over 15 years ago for example. It is not an excuse just because you are in a developing country to say we can’t apply or use the most modern technology. It just isn’t. Obviously there is the challenge of having enough capital – not everyone is as rich or developed

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Dunham-Bush For more than a century, since 1906, Dunham-Bush has been providing innovative solutions in the HVAC needs of its customers. Today as one of the World’s largest manufacturers of HVAC equipment, we remain at the forefront of design and technology, while creating comfort environments for Millions of People Worldwide. With many manufacturing facilities, offices and representation globally we are able to meet and exceed the needs of our customers in all aspects of service, reliability, spares back-up, stock holding and cost effectiveness. We assure you of our positive investment in Africa and loyal efficient support of all our equipment entering the market. Tel 27-12-345 4202 Email info@dunham-bush.co.za

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Just because we are in Africa or the developing world doesn’t mean we can’t be at the cutting edge”

m A N u F A C T u R I N G

Moving Forward™

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The subsequent months under the new Government, has restored the confidence in the Zambian economy and after a good 2013, we see a bright 2014 ahead... new investment coming in has certainly been a fantastic push for the country and it is still coming in”

as in the industrialised world – but our experience has shown the African market wants cutting-edge technology, quality and is also prepared to carry the cost of such technology, if within in reasonable means. The Zambian market is still very price sensitive but with the right approach and patience it is open for all good technologies.” And demand is growing as Zambia grows, its economy attracting considerable international investment. “There was a change of Government here in 2011 and we did notice a slight slowdown in business for a short period thereafter. But I assume that after 20 consecutive years with one governing party, investors were holding back to see what route the new Government would take,” Mark says. “But the subsequent months under the new Government, has restored the confidence in the Zambian economy and after a good 2013, we see a bright 2014 ahead... new investment coming in has certainly been a fantastic push for the country and it is still coming in. Zambia seems to be a really great investment destination in Africa and we feel very fortunate to be here and be part of it.”

Arne adds that the company’s focus has been on infrastructure, construction and mining: “We have been focusing on the construction sector, a number of our projects are carrying into 2014, and we have got several new projects lined up too specially in infrastructure and mining for the coming year,” he says. “If we are as successful in 2014 as we have been in 2013 and the years before that, our growth rate will continue with the help of all of our staff, management and employees.” Drake & Gorham is not the only one benefitting. The country is too and Drake & Gorham has helped to boost Zambia’s reputation, while investing vast amounts in the quality and development of its employees. “Training is essential,” Arne concludes. “You have to train in accordance with the latest technologies. We send our staff to South Africa and Asia, in particular South Korea, for annual training and we also have trainers coming into Zambia to train our technical staff. With that we are making continued contributions to Zambia.” To learn more visit www.drakeandgorham.com

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Nigerian conglomerate John Holt has had a difficult few years, falling on hard times. This isnâ&#x20AC;&#x2122;t a company that gives up easily however and through hard work it has returned to profitability. We talk to Executive Deputy Chairman David Parmley. Writer Ian Armitage Project manager Tom Cullum

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ohn Holt is a key player in various sectors of the Nigerian economy, offering quality products and services through a network of branches nationwide. And it is a company on the rebound, having undergone a major restructuring exercise. Indeed John Holt, a household name, has been through the mire in recent years. Allegations of fraud and a turbulent business environment negatively impacted on the fortunes of the company, with it falling on hard times. “We’ve just had our year end in September,” says Executive Deputy Chairman David Parmley. “I’m happy to say that we’ve returned to profitability after what has been an extremely difficult period. We’ve repositioned the company to meet various challenges and obviously had some problematic times in recent years where as a result of various malpractices we made a huge loss. We’ve managed to isolate and remove problems and we have focused on transforming our business.” As part of that John Holt moved into a new head office. “Has it been a good move? Yes,” says Mr Parmley. “We had a huge site which was getting on for ten acres and it really was inconsistent with the size of the business. So we moved to a new office and a new operational site, which we now separate. In doing that we have premises which are now appropriate for the business activity and we are now lean and mean and looking to the future, having made fantastic strides through the restructuring exercise.” The turnaround strategy also saw stock levels reduced where appropriate, the removal of unprofitable businesses from the group and staff redeployed within

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and across divisional boundaries - carried out to ensure that “we functioned at the optimal level,” says Parmley. “We can now apply ourselves to profitable areas of business as we look at new opportunities. The troubles we’ve had have been well publicised. We don’t want to hide them. They are there for everyone to see. But we have got through the worst and have now returned to a profitable situation and expanding. There are always opportunities in Nigeria.” One area that has him excited is power which falls under the remit of John Holt Engineering, a business unit that specialises in the provision of power solutions. Nigeria’s population of over 160 million people and the country’s large industrial concerns share a meagre six gigawatts of electricity. There is huge opportunity. “We have been investing resources in independent power generation which complements our business of selling electrical generators,” Parmley explains. “The power situation is a persistent problem for business and one of the things we are looking at is that most of the generators we sell are powered by diesel oil which is relatively expensive because it doesn’t receive a government subsidy. So we are exploring gas conversion and the supply of gas powered generators as the pipeline network becomes extended. We see an opportunity in the transformation of the energy sector. ” Opportunities also exist in the country’s construction industry, while he sees growth potential for John Holt’s Fire Safety Solutions business unit, which amongst other things distributes Angus Fire and Rosenbauer fire fighting equipment in Nigeria. “There is growth in construction and we see further development

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DELTA MARINE OIL SERVICES NIG. LTD. Delta Marine Oil Services Nig Ltd (DELMAROS) has been in the Nigerian Oil and Gas industry since 1995. We offer Rigs, Casing & Tubular Services, NDT & Tubular Inspection, Mud Shearing, HVAC, Marine Equipments, Oil Spill Response Equipments, and OCTG. Our services speak volumes hence our clients span major IOC’s to indigenous operators as we are a proud promoter of Local Content. Our team (our most prized asset) is made up of experienced and dedicated hands ready to proffer tailor made solutions to each individual challenge. Strategically located in Lagos, Warri and Port Harcourt – we have a good network of office and equipments needed to provide outstanding services sometimes at short notice. Tel +(234) 805 834 9775 Email info@deltamarineoilserv.com

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of our fire protection business and armoured vehicles – there is a big demand in certain sectors for that, operating in areas where there is civil unrest,” Parmley says. “We’ll be focusing solely on Nigeria. We have no plans to go beyond our borders. Nigeria is a difficult market to deal in but we don’t feel at this stage that cross border trade is really the direction we want to be going in the short to medium term.” Obstacles remain. Perhaps the biggest is the country’s banking sector. Commercial lenders have slashed lending. “The banking scenario is difficult,” says Parmley. “We have interest rates getting close to 20 percent. Of course the banks haven’t fully recovered from the global financial crisis which was delayed in its effects here. The effects were about two years behind the rest of the world. Banks

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remain reluctant to lend. Their capital base has been eroded. Share values have been wiped out. That is a challenge. All companies want is a fair deal. There are two parties to any transaction and if it is done properly both benefit. My message to the local banking industry would be that I think they have to try to lend more. We don’t want unrestrained and irregular lending. But ordinary commercial lending should be a priority.” John Holt plc was started by Briton John Holt in 1862 and is a founding member of the Nigerian stock exchange. The 21 year old had £27 in his pocket when he arrived in Africa and his first Nigerian business venture was established in Lagos in 1897. It focused on the distribution and export of farm produce. To learn more visit www.jhplc.com.

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