Africa Outlook Issue 12 by Outlook Publishing

www.aFRIC aoutlookmag.Com

DIESEl ElECTRIC 144 diesel electric services have gone from strength to strength since its humble beginnings in 1993

MOBIlE WORlD CONGRESS

BIGEN AFRICA 98 Bigen africa are committed to their principle of “doing good while doing business”

22 over the next three issues, we will be taking a closer look at the tourism highlights in the continent, examining the best holiday destinations Africa has to offer

KAPA OIl 36 kapa oil prides itself on being a sustainable family-owned business

AFRICA OUTOOK ISSUE 12 AlSO THIS ISSUE: ElTEK | HIllCREST PRIVATE HOSPITAl | TECHNO BRAIN | RISE OF THE MBA

W E L C O M E The Roots of Recovery As we approach the new South African fiscal year, many companies will be looking forward with renewed hope and vigour. For many, the financial crisis seen across the continent has begun to show shoots of recovery in some sectors, including telecommunications, logistics and energy resources. Our front cover article on Ethiopia’s investment potential is a shining example of financial recovery, as the country sees new promise in the technology industry and continued growth in their biggest economic asset: the agricultural sector. Similarly, our interview with Richard Baxter of Diesel Electric Services showcases how operating a well-structured management team and strong core values has ensured their name remains synonymous with market leading innovations and services. They have built a successful company that will stand firm in hard times. This issue also includes interviews with Stefanutti Stocks on page 76, who are looking to strengthen their market position by monitoring trends in the construction industry, and Techno Brain on page 128, who are the first company on the African continent to build their own automated fingerprint identification system. On page 14 we have a fascinating article offering an insight into the world of the Master of Business Administration qualification, which will give prospective MBA students a closer look at just what the qualification is all about and what it can offer. That feature also includes a Q&A with Walter Baets, Director of the University Cape Town’s Graduate School of Business, which promises to be an interesting read indeed. The magazine does not stop there; we have many more features for your reading pleasure and a page full of events that are worth putting in your diary. Enjoy. Matt Bone “Believe you can and you’re halfway Editor, Outlook Publishing there.” – Theodore Roosevelt

EDITORIAL Editor: Matt Bone matthew.bone@outlookpublishing.com Sub-editor: Emily Jarvis emily.jarvis@outlookpublishing.com

PRODUCTION Production Manager: Daniel George daniel.george@outlookpublishing.com MAGAZINE DESIGN: Optic Juice Ltd Martin Mitchell, Alex Cole, Nick Bond, Katherine Robinson

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

ACCOUNTS Finance Manager: Suzanne Welsh suzanne.welsh@outlookpublishing.co Oﬃce Administrator: Donna Redpath donna.redpath@outlookpublishing.com IMAGES: Getty 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 559 152 matthew.bone@outlookpublishing.com

www.africaoutlookmag.com Follow us on Twitter - @Africa_Outlook

WWW.AFRICAOUTLOOKMAG.COM

t 28

In this issue of Africa Outlook... 34

inVEstmEnt ProfiLE Ethiopia

sHoWcasinG LEaDinG comPaniEs

Africa Outlook takes an inside look at Ethiopia’s business and investment potential

Tell us your story and we’ll tell the world

ErGosYstEms Wall to Wall Innovation

Ergosystems are transforming ordinary walls into bespoke, innovative spaces

cHanDaria inDUstriEs Wiping Away the Competition

Chandaria Industries celebrate 50 years as the largest manufacturer and distributor of tissue, paper and hygiene products in Kenya

MANUFACTURING

C O N S T R U C T I O N

kaPa oiL Slick Operator

ParamoUnt traiLErs Keep on Trucking

nEWs

All the latest top stories across the month from Africa

tosHiba ranks no.1

africa’s toP bUsinEss scHooLs The Rise of the MBA

IDC’s CY 2013 ﬁnal results show Toshiba as the no. 1 Notebook vendor in East Africa

Part one: A closer look at the MBA and one school who consistently make the grade

traVEL anD toUrism The Best Holiday Destinations in Africa Part One Over the next three issues, we will be taking a closer look at the tourism highlights in the continent, examining the best holiday destinations Africa has to oﬀer

mWc 2014 Highlights from the Mobile World Congress

Africa Outlook takes a look at the highlights from February’s MWC 2014

48 52

art corP Powering Zimbabwe One Battery at a Time

Pcm niGEria Painting a Brighter Picture in the Country PCM Nigeria are a specialist in the manufacture of world class coatings

rank ZimbabWE Top of the Rank in Zimbabwe

Rank Zimbabwe have a long standing relationship with the education sector as a provider of vital scholastic products

financE Len Dekker on: The tendering process in South Africa

www.aFRICaoutlookmag.Com

Paramount Trailers is one of SA’s market leaders in commercial trailer manufacturing

Amalgamated Regional Trading Corporation drive the Zimbabwe automotive industry forward

Len Dekker gives us an insight into the tendering process in South Africa

Kapa Oil prides itself on being a sustainable family-owned business

saint Gobain PiPELinEs New Technology in the Pipeline

Saint Gobain Pipelines South Africa manufactures grey and ductile iron castings for use in various sectors

stEfanUtti stocks Building Southern Africa One Project at a Time

Stefanutti Stocks, delivering a range of construction projects in Southern Africa

LitHon Namibia’s One Stop Shop for Project Consultancy

Lithon lead the way in African construction consultancy

bELo anD kiEs South Africa’s Hands-on Construction Company

Belo and Kies and their hands-on approach to construction

tHE sarit cEntrE Bringing Retail to East Africa First

Nairobi-based shopping mall, The Sarit Centre, provide a one stop shopping experience

INFR ASTRUCTURE

biGEn africa Leading Infrastructure Development Solutions for Africa

Bigen Africa are committed to their principle of “doing good while doing business”

L O G I S T I C S

128

tEcHno brain The Brains to Succeed

134

Eaton toWErs Towering Ahead

At 15 years old, Techno Brain strive to be globally recognised for their local solutions

African telecoms infrastructure ﬁrm Eaton Towers is continuing to expand its mobile operations

158

sHaW riVEr manGanEsE Managing Manganese Mining Shaw River Manganese talks to Africa Outlook about their ﬂagship project in Namibia

162

LEWcor One Hundred Percent Namibian

Lewcor boast a huge range of projects in the works in the civil service and mining industries

R E S O U R C E S

H E A L T H C A R E

106

aDb airfiELD soLUtions Ensuring a Smooth Take-off

138

nEstoiL PLc Nestoil Plc Deliver Results, not Reasons

Africa Outlook speaks to the multi-national company ADB Airﬁeld Solutions

114

boLLorÉ africa LoGistics Raising the Level of Logistics from the East African Coast to the Heart of Africa Bolloré Africa Logistics: building synergies across its network in East Africa for a competitive advantage

118

Nestoil has grown to become to leading provider for major International Oil Companies

144

DiEsEL ELEctric sErVicEs Generation Leaders in Critical Power Solutions

HiLLcrEst PriVatE HosPitaL The New Face of Healing Hillcrest Private Hospital elaborate on their customercentric focus

Diesel Electric Services have gone from strength to strength since its humble beginnings in 1993

166 172

Gokals Laborex: The premiere pharmaceutical distributor in Ghana

frEiGHtWorX Delivering Your Tomorrow, Today

GokaLs LaborEX The Medicine Men of Accra

F O O D & D R I N K

Freightworx are conﬁdent that soon they will be market leaders who are second to none

T E C H N O L O G Y

150

african EnErGY rEsoUrcEs Botswana’s Colossal in the Coal Industry

African Energy Resources ﬁre up the coal industry in Bostwana

122

ELtEk Striking the Perfect Balance Between Power and the People

Eltek power their way to become market leaders

154

HYsPEc mininG sErVicEs High Expectations below the Ground

Hyspec Mining Services have been serving the mining community for over eighteen years

176 182

Pakco Some like it Hot

Pakco has been adding ﬂavour and quality to consumers’ lives since 1948

EVEnts

Outlook highlights the upcoming events across the continent

www.aFRICaoutlookmag.Com

S Technolo gy

R e s o u rc e s

Statoil find Natural Gas Reserves off the Shore of Tanzania

Tanzania to receive $6 million Telecoms Upgrade

Statoil and co-venturer ExxonMobil announced the results from their first drill stem test in the Tanzania Block 2 offshore discoveries. These initial results are positive, for an East African country and their economy. This data is important to reduce technical uncertainties in a possible future Tanzania offshore and LNG development. “The ongoing appraisal programme is crucial to firm up the design and development basis for bringing gas to shore and a first phase onshore LNG project in Tanzania,” Øystein Michelsen, Statoil’s Tanzania country manager stated in a recent press release. The test was performed in the Zafarani-2 well, 2400 metres underwater and approximately 80 kilometres off the coast of Southern Tanzania. “We are

Tanzania Telecommunication Company (TTCL) and Universal Communication Service Access Fund (UCSAF) have signed an agreement to improve basic telecom services in rural areas in a project that is set to cost over $6 million. The CEO of TTCL, Kamugisha Kazaura, stated that the multi-million project is expected to commence as soon as possible. The work will connect about 33 constituencies with around 202 villages, with some 300,000 people. “Our aim is to make sure that every constituency and village that was lacking telecommunication for a long time, to have that access,” Kazaura stated. The project will cover 16 regions in Tanzania, including Arusha, Tabora, Iringa, Kagera, Manyara, Dodoma, Lindi, Mbeya, Morogoro and Mtwara. Other regions that have been ear-marked for future development include Mwanza, Pwani, Ruvuma, Shinyanga, Singida and Tanga. “Most of the areas where the project is expected to be carried out are underdeveloped, this is mainly due to the lack of telecommunication links,” remarked Kazaura.

now working constructively with our coventurer ExxonMobil, Blacks 1, 3 & 4 and the Tanzanian authorities to progress the plans for a joint LNG plant development.” Stratoil have operated the licence on Block 2 since 2007, on behalf of the Tanzania Petroleum Development Corporation (TPDC), and has a 65 per cent working interest, with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35 per cent.

Sport

Kenya to Host the 2018 African Nations Championship It has been confirmed that Kenya have been awarded the 2018 African Nations Championship tournament in 2018. “The CAF Executive Committee has designated Kenya as host of the 2018 African Nations Championship (CHAN), following receipt of necessary government guarantees and complete dossier including the required infrastructure and security,” the football governing body stated. The CHAN tournament, which features footballers plying their trade in the domestic leagues, would become the biggest sporting event the country has hosted in recent memory.

Kenya should have hosted the same tournament in 1996 but lost the chance to do so after failing to meet the preparations to hose the tournament by the agreed deadline. The tournament was eventually handed to South Africa who eventually won it. The next tournament is scheduled for Morocco in 2015.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

BusIness

“Invest angola” pRovIdes entRepReneuRs wIth 60 BIllIon kwanzas In less than two yeaRs The Angolan Government has so far awarded a total of 600 million US dollars (about 60 billion Kwanzas) to entrepreneurs as a part of its impressive ‘Angola Invests’ programme, which aims to support national Small and Medium Enterprises (SME) in the country. “this huge sum of money, which has been invested into 204 separate approved business plans over an 18 month period, was given by commercial banks involved in the plan” said samora kitumba, administrator of Research, planning and Finance at national Institute of support to micro, small and medium enterprises (Inapem). the angola Invests programme was created in order for the government to support small and medium enterprises in angola. the project is aimed at investments in sectors of productive activity, with priorities for agriculture, livestock, Fisheries, Construction materials, support services to production sector, manufacturing , mining and energy Industries. samora kitumba went on to add that “the amount corresponds to the financing of enterprises or projects of various sizes and different sectors.” the main aim for this programme, which was launched in late 2012, is to have about 500 projects being financed by the end of 2014, and judging by the already high number of approved start ups being funded, this figure is not just a dream, but a genuine possibility.

Off-road 105-565 kW Power Generation 85 -770 kVA

UPTIME IN PRACTICE

Construction Mining/Quarrying Materials handling Stationary Agricultural Forestry Power generation Today, machine uptime is decisive for construction companies’ profitability. You depend on crushers, concrete pumps, air compressors and other equipment to just keep on going. That’s why Volvo Penta engines are reliable and safe – and a perfect match, what ever your specific application may be. By meeting present and future environmental legislation they are also your investment in a more sustainable tomorrow.

POWERING YOUR BUSINESS www.volvopenta.com www.volvopenta.se

go to www.aFRICaoutlookmag.Com/news FoR all oF the latest news FRom aFRICa

????? Technolo gy

7 African Mobile Operators Enter Landmark Agreement

Africa and the Middle East, lower than the global average of 47 per cent, so we need to work together to expand the reach of mobile.” The initial group of senior leaders who support this initiative includes: Christian de Faria, CEO Africa, Bharti Airtel Ahmad Julfar, Group CEO, Etisalat Group Sifiso Dabengwa, CEO and President, MTN Group Dr. Nasser Marafih, Group CEO, Ooredoo Group Marc Rennard, Senior Executive Vice President, Africa, Middle East and Asia, Orange Serpil Timuray, CEO, Africa, Middle East and Asia Pacific Region, Vodafone Group Scott Gegenheimer, CEO, Zain Group Between the operators involved, they collectively manage 76 mobile network operations across 47 countries in Africa

????? This year’s Mobile World Congress provided the platform for seven major mobile operators across Africa and the Middle East to meet. Consequently, seven operators have developed a roadmap to co-operate on network infrastructure sharing initiatives. “We are greatly encouraged by the shared vision of mobile operators and the common urgency to find solutions that will drive down the cost of mobile and Internet services and help connect the unconnected,” Anne Bouverot, Director General at GSMA said. “Unique mobile subscriber penetration is only 40 per cent in

?????????? Finance

World Bank Approves Funding for Ethiopia Road System Upgrades The Board of Executive Directors for the World Bank approved funds in late February to help Ethiopia upgrade their road system, strengthen road maintenance and reduce travel time along interregional corridors. The Road Sector Support Project is supported by a $320 million (USD) IDA credit as part of the $385 million total project cost. The Government of Ethiopia are also contributing $65 million. The project is aligned with the Growth and Transformation Plan and supports economic expansion by improving the quality of roads, serving areas producing exportable

????????????????

and the Middle East, serving 506 million cusomters. Manoj Kohli, Managing Director of Bharti Enterprises and Chair of the Public Policy Committee of the GSMA board, also supports the initiative: “This co-operation demonstrates that the industry is committed to innovating in order to serve the billions living in the rural areas. We call on Governments to support and encourage the commercial infrastructure sharing arrangements that we aim to propose.” According to a statement, the participating operators have made this commitment in order to provide Internet and mobile broadband access to un-served rural communities and drive down the cost of mobile services for all sections of the population. agricultural products. Additionally, the plans hope to halve the proportion of the population living below the poverty line. In a statement, the World Bank Country Director for Ethiopia said: “Ethiopia have experienced strong economic growth and achieved substantial progress on social and human development over the past decade. Upgrading and maintaining the country’s road sector was an important part of the Bank’s work in Ethiopia. The project will enhance trade, create new marks and provide improve access to education, medical services and food security for the country’s poor.” The first phase of the Road Sector Development Programme began in 1997, and since then the road network has increased from 26,500 to 85,900 kilometres.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

Technolo gy

South Africa sees Upsurge in the Demand for Tablet Devices Shipments of tablet PCs to South Africa increased 107.1 per cent year on year in the final quarter of 2013, reaching a total of 513,000 units shipped. These figures came from the International Data Corporation (IDC) and their latest insights into the market. Whilst tablets have seen this huge increase, the country’s traditional PC market suffered an 18.8 per cent decline over the same period, falling to 427,000 units. The innovative all-in-one (AiO) devices and convertible notebooks also saw an impressive increase. “The decline in PC shipments can be attributed to the weak rand, high unemployment rate, poverty and Business

Zambian Airports to Receive Major Investment Four of Zambia’s international airports are set to share a massive cash injection from the Government to the tune of nearly US$1 Billion. The four airports set to share this investment are US$360 million for Kenneth Kaunda International Airport, $522 million for Simon Mwansa Kapwepwe International Airport, $50 million for Harry Mwanga Nkumbula International Airport, while the level of investment to overhaul Mfuwe International Airport is currently being revised and looked at. “When the airports’ transformation is completed, Kenneth Kaunda International Airport specifically, will bear comparison with the best airports

cannibalisation from tablet devices,” claims Joseph Hlongwane, a research analyst at IDC South Africa. With the majority of end users using a tablet device to surf the internet and access social media, tablets are the device that fits the bill. “This is clearly reflected in the growing popularity of tablets with a screen size between 7 and 8 inches, which resulted in shipments of such devices increasing

208.5 per cent year on year in the fourth quarter of 2013 to a total of 369,000 units.” Android-based tablet shipments were up 170.9 per cent to a total of 436,000 units. In 2013 alone 1.2 million Androidbased tablets were shipped to South Africa, representing a significant 77.1 per cent of the market. In contrast, iOS-based tablets have declined by 15.7 per cent, representing a market share of 19.3 per cent. “As is the case in all hightech markets, tablets have grown exponentially since their introduction in South Africa and the trend is expected to continue along a similar path in the coming years. Their success in the computing space has been driven primarily by their mobility benefits, touch screen technology and competitive price points.” in Africa, both in infrastructure as well as in services delivery.” Robinson Misitala, the National Airports Corporation Limited (NACL) managing director, explained. He went on to further say “It goes without saying that as people fly in and out of a country, the first and last image they carry is centred on the airport outlook. Hence, we strongly feel the need to give visitors to Zambia something positive when they fly in and out of Lusaka, or when they use any of the three other international airports.” Spending this amount money on improving Zambia’s infrastructure is a positive step from the Government and can potentially influence other external companies to look at investing both time and money into businesses within the country, furthering Zambia’s ambition to become an investment capital in Southern Africa.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

????? bUS I NESS

Duet Group and its partners invest US$50 million into two highgrowth consumer companies in Ghana

????? Duet Group is pleased to announce that through the creation of Duet Consumer West Africa Holdings (DCWA), it has invested US$50m of growth capital into Ghana, taking controlling stakes into Shop N Save, a supermarket joint-venture with the founders of the Finatrade Group, and GNFoods, a fast-growing food manufacturing company. The growth capital invested into these two companies will be used to roll-out new food retail stores, expand manufacturing capacity and invest in sales and marketing capabilities. Duet believes both the food retail and food manufacturing sectors in West Africa are well positioned for rapid growth. The food retail sector across West Africa remains one of the most under-penetrated in the world, with less than 5% of food consumed being sold through organised retail channels, and Duet believes the partnership with the founders of one of West Africa’s largest food distributors will result in a market-leading regional supermarket player. In terms of food manufacturing, Duet believes that Ghana is particularly well positioned to become a food manufacturing hub for the region, as West Africans increasingly prefer home-grown affordable brands to expensive imports. Duet Group has appointed the former Chief Strategy Officer of

??????????

the H. J. Heinz Company, Daniel Milich, as non-executive Chairman of DCWA, to provide strategic insight to the companies drawing on his 15 year tenure at one of the world’s leading FMCG businesses. Duet Group has also has hired a former East African country-head for Coca-Cola, to act as CEO for the platform. Henry Gabay, CEO, Duet Group: “We are very excited about the future of consumer-driven businesses in Ghana, particularly given our belief that the country is at the beginning of a multi-year economic growth phase. Following ???????????????? our investment in Ethiopia through Dashen Brewery, DCWA shows our belief and commitment to the FMCG sectors in Sub Saharan Africa. Duet Group invested in excess of US$1 Billion into the Sub Saharan Africa and Mena public markets over the last 4 years and the investments into Private Equity are a natural extension of our investment philosophy for the region.” Duet Group: Duet Group is a UKheadquartered global alternative asset management firm with over US$4.7 billion of assets under management (AUM) www.duetgroup.net

T o u ri s m a n d Tr a d e

Chinese Ambassador to Ghana Calls for Co-operation Between the Two Countries to Promote Tourism and Trade Gong Jianzhong, the Chinese Ambassador to Ghana, has called for a stronger co-operation between the two countries to promote tourism and trade. Gong said this during a public forum on the theme: “Investment in tourism in Ghana and in China” organized by the Ghana China Friendship Association. “As we all know that tourism is an important economic sector in the world today. It is necessary for us to share ideas and experience to further promote the development of the tourism sector and strengthen our cooperation in this regard,” the Ambassador stated. Tourism in China has been one of the top economic earners over the last few decades since the transformation from closed doors to open arms, making the Asian country one of the most sought after inbound and outbound tourist markets in the world. According to Elizabeth Ofosu-Adjare, Ghana’s Minister for Tourism, Culture and Creative Arts, in a statement read by Joel Soun, a director at the ministry, Ofosu-Adjare stated that there have been more Chinese tourists coming to Africa than any other continent and that she would support and encourage ways to close the divide between Ghana and China in terms of developing the tourism, culture and creative arts sector. “Every country in Africa is making strife to have a share of the cake. We in Ghana have seen the signal and we are making the strife and that is why this interaction is important,” the minister highlighted during her statement.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

Technolo gy

WhatsApp Shows Promise in South Africa More than half of South African adult cell phone users living in cities and towns are using WhatsApp on their phones, says research conducted by World Wide Worx and Fuseware. The study into the use of social media and Instant Messaging (IM) on mobile phones in South Africa revealed that WhatsApp instant messenger is used by at least 10.6 million South African adults. The survey was conducted among a nationally representative sample of adult cell phone users living in cities and towns, representing approximately 20 million adults. The social and IM markets are characterised by a strong urbanHealthcare

Upgrades for Multiple Hospitals in Uasin Gishu County The Government of the Uasin Gishu county in Kenya have stated that they are to upgrade 30 hospitals across the county, at a cost of more than Sh260 million. This report comes from the Governor Jackson Mandago, who said that the upgrade will be done under a health care plan for residents to access medical services. He said that each of the county’s 30 wards will have an upgraded hospital. “We have to ensure our people have easy access to health facilities within their areas, so that they don’t spend a lot of money and time travelling to Moi Referral Hospital,” Mandago said. The Moi Referral Hospital only has a capacity of 800 beds and the hospital

rural divide, with WhatsApp used by 61 per cent of urban dwellers, compared to 37 per cent outside urban areas. Furthermore, the survey does not include ‘deep rural’ users living outside cities and towns, as IT News Africa reports. These findings were published after social media leader Facebook announced its acquisition of

WhatsApp for US$19 billion, proving the determination to dominate both social media and IM services. Facebook remains the dominant social network on phones, with 45 per cent – or 9 million – South Africans using it on their mobile devices at the end of 2013. The total use of the site on all devices was around 11 million, putting it slightly ahead of WhatsApp at this current time. Future projects claim WhatsApp penetration will raise to 63 per cent in the next 12-18 months, versus Facebook’s moderate growth to 53 per cent. BlackBerry Messenger (BBM) also continues to show signs of growth, and is now used by 21 per cent of adults in the country, with projected growth to 28 per cent penetration. is congested, forcing patients to share beds. It was originally only supposed to handle referral only cases, but now deals with all manner of diseases including TB and malaria. “The county health care plan, which is part of an Integrated Strategic Development Plan for the region, will be unveiled soon,” Mandago added. The Moi Teaching and Referral Hospital has successfully carried out kidney transplants on two patients, with the help of experts from the Netherlands. They are hopeful that this success will instil confidence in doctors looking to conduct similar procedures, thus reducing the costs incurred by patients who seek transplants abroad. “We believe these transplants to be a milestone in this region as we gear up to address the challenging diseases that affect residents,” CEO of Moi Referral Hospital, Dr John Kibosia, said after the transplant procedure was relaunched in recent years.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

t o s h i b a

r a n k s

n o . 1

NO.1 TOSHIBA RA N K S

in East Africa Notebook market

oshiba Gulf FZE is the number one vendor for Notebook market sales in East Africa including Kenya, Uganda, Ethiopia and Tanzania according to the latest International Data Corporation’s (IDC) CY 2013 final results. Toshiba holds the top position in East Africa with a high market share of 23 per cent and a massive year over year growth of 118 per cent in CY 2013. In addition, Toshiba has exhibited market dominance by achieving number one position in Jordan and Saudi Arabia respectively. Toshiba has a high market share of 30 per cent in Jordan, and 24 per cent in KSA. “Our continued efforts to develop and offer innovative products, services and programmes towards our customers and partners have driven us to strengthen our position in the market. We’ll continue to support our customers with value

added services and a range of mobile computing solutions to further enhance customer satisfaction,” shares Santosh Varghese, General Manager, Digital Products & Services, Toshiba Gulf. “This significant growth reflects the investments Toshiba has made in the region with having a steady

www.aFRICAoutlookmag.com

stock availability, a rebate program for partners, strategic promotions and smart marketing approach for high visibility,” explains Manish Kewalramani, Business Development Manager for East Africa and West Africa, Toshiba Gulf FZE. “This year, we aim to sustain this position through focusing on the B2B segment,” he adds.

MARKET SHARE OF TOSHIBA IN EAST AFRICA 35% 30% 25% 20% 15% 10% 5% 0% Source: IDC EMEA PC TRACKER - Final Results CY 2013

Toshiba Samsung Hewlett-Packard Lenovo Dell Others Acer Group Mecer

IDC’s CY 2013 final results show Toshiba as the no. 1 Notebook vendor in East Africa Writer Emily Jarvis

In 2013, Toshiba introduced a wide range of platforms across its laptops, Tablets, All-in-One PC, and Ultrabook including its first convertible Ultrabooks – the Satellite U920t & the Portégé Z10t, which has helped address a complete range of customer requirements, from entry level, to experienced and professional users. “In spite of the tough market situation especially in second and third quarter of 2013, Toshiba has been able to achieve the top position in the East Africa region with an impressive 118 per cent annual growth due to unprecedented innovations we introduced in our latest products, and our healthy channel partnerships,” remarks Varghese. Toshiba’s sell out driven strategy has proven to be a success. This has helped in keeping the days of inventory healthy, in addition to proper management of inventory, lifecycle and channel cash flow. The active monitoring of the lifecycle of the products has guaranteed the sell-through process and has enabled Toshiba to ensure that the stocks in the channel are refreshed with the latest Toshiba products.

A bout T oshiba G u l f F Z E

Toshiba Gulf FZE is a wholly owned subsidiary of Toshiba Corporation headquartered in Tokyo, Japan. Toshiba is a world-leading diversified manufacturer, solutions provider and marketer of advanced electronic and electrical products and systems. Toshiba Group brings innovation and imagination to a wide range of businesses: digital products, including LCD TVs, notebook PCs, retail solutions and MFPs; electronic devices, including semiconductors, storage products and materials; industrial and social infrastructure systems, including power generation systems, smart community solutions, medical systems and escalators & elevators; and home appliances. Headquartered in Dubai, UAE, Toshiba Gulf FZE caters to a number of regions including GCC, Levant and Egypt and aims to bring in “localfit” products and enhance Toshiba brand equity in these regions. The company offers a wideranging product portfolio that includes consumer and business notebooks; netbooks; laptop accessories; tablets; 3D, LED and LCD TVs; and Blu-ray Disc Players.

www.aFRICAoutlookmag.com

A f r i c aâ&#x20AC;&#x2122; s

t o p

b u s i ness

s c h o o l s

MBA The Rise of the

A closer look at the MBA and one school who consistently make the grade Writer Matt Bone

www.aFRICAoutlookmag.com

n MBA, or a Master of Business Administration, has become one of the most sought after qualifications in the corporate sector over the last 25 years. It can be the difference between you getting a top end job or not. However, it comes at a steep price. The average price of obtaining an MBA is US$110,000. So the big question for young professionals in Africa is: Is there real value in spending two additional years of intense schooling? It is expensive and demanding and it has lofty entry requirements, but it can be the basis from which becoming an executive in high profile companies is achieved. Africa has strived to be comparable to the rest of the world in terms of offering top end degrees and qualifications, in both universities and business schools. The Financial Times, in its Executive Education Rankings for 2012, included 5 African business schools.

Why an MBA?

You may well ask why an MBA is so sought after in business these days, so here is a few reasons why the qualification has gained its reputation as the one to have. 1. Gain a world known qualification An MBA is awarded after one or two years of university study that provides preparation in both the theory and practical application of business management. The qualification confirms that you have a high level of competency in all the major practical management roles in the modern corporation. An MBA is recognized throughout the world as one of the top credentials and can make you stand out from the other prospective candidates. 2. Provides you with a greater and closer look at the business industry The world of business is a fireclay

completive and ever changing environment. An MBA is a solid foundation that covers a variety of business applications, which can prepare you to enter this industry with confidence and aplomb. You will be able to recognise trends and apply the knowledge you have gained through the course to great effect.

worked in the business sector before. Professionals in sectors such as technology, design, medicine and biology can obtain an MBA and use it within their current roles.

The Reputation is Rising in Africa

Business schools in Africa have been gaining a reputation for not only gaining worldwide accreditations, but also for 3. A higher potential income producing top quality MBA graduates From a financial point of view, the who will help raise the profile of their course will set you back a large continent as a business excellence hub. amount of money upfront. However, The University of Cape Town Graduate job vacancies requiring an MBA School of Business (GSB) is attracting certification will often have a higher its fair share of the acclaim. GSB is starting wage, about 10% more, than home to the only full-time African MBA, a similar role that does not require which has been ranked in the top 100 an MBA. Your MBA is a long term by the prestigious Financial Times at a self investment and as with any very respectable 59th. The MBA comes other financial decision, you have to with full EQUIS accreditation from the decide if the amount you put in at European Foundation for Management the start, will be returned with profit Development and AMBA accreditation at the end. from the Association of MBAs. This has thrust the school into the business 4. Full time, part time and online limelight by becoming the only full-time availability MBA ranked business school from Africa You do not have to attend a over the last 10 years. business school every day in order Although only GSB feature in this to obtain your degree. Most table from Africa, do not be fooled into schools and universities offer thinking that they are the only ones MBA programs that be taken at worth noting in Africa. Schools such as your desired speed but must be the Gordon Institute of Business Science completed within a 5 year period. at the University of Pretoria and the The Open University has an online American University in Cairo have been course available and schools such noted by global companies as having as The University of Cape Townâ&#x20AC;&#x2122;s produced exceptional graduates in Graduate School of Business offer recent years. part time courses that cover the same modules as the 1 year course, but with a view to professionals who would be unable to attend day classes due to work commitments. 5. Advancement in Career Having an MBA can open doors to companies who offer exclusive MBA graduate only roles. A Master of Business Administration trains you for management roles in your current field, even if you have not

www.aFRICAoutlookmag.com

a f r i c aâ&#x20AC;&#x2122; S

t o p

b u S i N E S S

S c h o o l S

Q&a: WitH

WaLtEr baEts

walter Baets, spoke to africa outlook about what makes the university of Capetownâ&#x20AC;&#x2122;s graduate school of Business so unique Writer Matt Bone

What advantage international students will have while pursuing the programme at UCT GSB? the university of Cape town graduate school of Business is based in africa, an emerging market with its unique social and environmental issues, International students studying the gsB will gain a valuable new perspective on emerging market business thinking from a worldclass institution situated in an emerging market. unlike schools situated in the developed economies, the gsB is forging a new path for business schools, one that is informed always by the ebb and flow of the dynamics that define emerging markets, and students benefit from the up-close, hands-on approach to solving developing world problems while working in diverse teams; witnessing the entire process from idea, to initiative, incubation, and scalability. the curriculum, in responding to the realities on the ground right outside the doors of the gsB, is also completely new, and at the forefront of inclusive innovation thinking. unlike at schools that are more traditional in their approach to teaching about emerging markets, students will be exposed to the latest in business model innovation through integrative thinking, systems thinking and design thinking; institutional innovation; cross-boundary collaboration; co-creating through the value chain; developmental ventures; and consumer insights through big data analysis and pattern recognition. Rigorous research and academic vigour, and an extremely strong faculty in the programme will enable students to become confident in their own abilities to approach emerging market issues critically, creatively and proactively while gaining international exposure. What is GSB doing to attract and retain students from other parts of the world? The first and foremost thing to do is to deliver quality education that

www.aFRICaoutlookmag.Com

is relevant for the continent and the world. We continuously strive to uplift our quality, and our recent triple international accreditation (making us one of only 60 business schools in the world) is a guarantee for the students of their potential return on investment. The GSB is also only full-time MBA to be ranked by the Financial Times in its annual Top 100 MBAs. But the curriculum we offer, the exec education programmess we offer is not just more of the same. Africa has specific needs, focused on the African context that is focusing on economies with high degrees of complexity, high degrees of uncertainty and high degrees of inequality. There is a clear need for inclusive business thinking, and therefore business as usual is just not good enough. What schemes/strategies does GSB have in place to help retain business and science (engineering) students from the rest of the world? We do have a network of ambassadors through the world (our alumni) that are actively involved in our recruitment campaigns. We are developing partnerships with institutes, companies and B-Schools across the world in order to develop business school capacity and education. We do have special focus on Africa, although the purpose should not be to attract all students from Africa and further afield to South Africa, but rather to co-develop programmes throughout the continent. Students should actively choose to come to South Africa, since it would have a specific valued added that they cannot get in their country. Competition for very best academic talent globally is intense - do you have any comment on this? Welcome, join the club. Of course we need the best talents we can get, and we have to do what we can to attract those. But they equally have to be talents that have an understanding of

the African context, a sympathy for the specific cultures in Africa, and a real interest to do relevant research. I am not sure that we need yet another European or US academic, perfectly fitting the northern hemisphere academic culture, but of little added value in Africa. â&#x20AC;&#x153;Transfersâ&#x20AC;? of that kind have not always proven to be successful. Soccer teams (the better ones) tend to focus a lot on youth training, training their own timber. We should certainly not neglect that. Hence yes we need the best talents. No we do not necessarily need to import them.

FT Global top 100 MBAs for its fulltime MBA 2014: Which MBA Executive MBA 2013: only one in Africa to feature in this new ranking of Executive MBAs FT Executive Education customised ranking 2013: GSB appears on this list along with USB, Wits and Gibs. QS Global 200 Top Business Schools employers ranking 2013: GSB top in Africa and Middle East

An emerging market business school Africa needs something that goes beyond business as usual to address its specific challenges. The GSB defines emerging as economies (or organisations) with high degrees of complexity, uncertainty and inequality. The school is dedicated to equipping leaders and managers Best in Africa operating in such contexts with the The GSB has more top rankings and accreditations than any business school relevant skills to be effective and in Africa helping to put African business is spearheading emerging market business thinking to create more schools on the map. These include: inclusive business models that focus on developing the base of the Triple-crown accreditation: The GSB pyramid and creating shared value. is now one of just 59 out of 13,670 business schools worldwide to be tripleA focus on values-based leadership crowned. This means it is accredited GSB is committed to exploring by the three most influential business new ways of doing business, based school accreditation associations: the on purpose, sustainability and Association to Advance Collegiate responsible practices. While we are Schools of Business (AACB): The living in a time of intense human Association of MBAs (AMBA) and the European Foundation for Management conflict and institutional breakdown we are simultaneously at the Development, which awards the European Quality Improvement System precipice of great positive collective transformation. Through it research (EQUIS) accreditation. and practice the GSB is deepening its understanding of ethical business and values-based leadership and how it can create healthier organisations. Key initiatives: Alan Gray Centre for Values-based Leadership: Established in association with the Allan Gray Orbis Foundation and sponsored by Alan Gray. What will be the unique learning for students at UCT GSB? Cape Town is quickly growing into one of the strongest innovative hubs on the African continent. Some of the unique features of the GSB:

www.aFRICAoutlookmag.com

D E S T I N A T I O N S

RT O

N E - PA

H O L I D A Y

-P

THE BEST HOLIDAY DESTINATIONS I A F RN ICA

Over the next three issues, we will be taking a closer look at the tourism highlights in the continent, examining the best holiday destinations Africa has to offer Writer Emily Jarvis iven the size and diverse offering of Africa as a continent, the country offers plenty of destinations for all kinds of people. As the second biggest continent in the world, Africa boasts an expansive landscape, formidable animal life and it is arguably the best land for any ambitious photographer. This being said, this destination is far less popular with British and European travellers when compared to visits to the United States, Latin America and Australasia. In part one of three, Africa Outlook takes a look at some of Africa’s best holiday destinations on offer in this unique continent.

CABO VERDE/CAPE VERDE

With similarities to the Canary Islands, the archipelago of Cabo Verde has some of the whitest beaches, soaring volcanoes and lush tropical vegetation spread over the ten islands. Kept a secret for almost ten years, Cabo Verde boasts year-round sun and a unique blend of Africa, Portuguese and Brazilian cultures that now attract tourists on package holiday deals. Located 604 kilometres oﬀ the coast of West Africa, the archipelago comprises of ten islands and eight islets. These include Sal, famous for its 350 days of sunshine, which is one of the most popular resort hubs thanks to the lovely beaches of Santa Maria. In contrast, Boa Vista provides the opportunity to climb dunes, dive to see marine turtles and explore the tropical Lisbon and cobbled streets of Sal Rei. For those with a fondness for rural living, Santo Antao incorporates elements of tourism, with a chance to meet locals and get away from the beaches. In the South, there is a chance to visit the famous site where Darwin made landfall during his epic Beagle voyage, located in Santiago.

WWW.AFRICAOUTLOOKMAG.COM

T R A V E L & T O U R I S M

MOROCCO

Situated at the foot of the Atlas Mountains, the capital city of Marrakech is both a large and fascinating place. If you enjoy busy environments with lots to see, then it is a fun place to go on holiday. Spending at least three days in the medina of the capital is recommended, as this is home to all the action. The Majorelle Gardens oﬀer a lovely contrast from the bustle of the souqs that should not be missed, in addition to visiting the heart of the medina, the Djemma el Fnaa. Between the Atlas Mountains and the dunes of the Sahara lies one of Morocco’s most splendid and remarkable landscapes called the Draa. This mass of date plantations punctuated by Kasbahs made of rammed red earth rising against the sky presents the perfect photograph opportunity. Zagora, at the southern end, makes a good place to stay with adequate hotels and restaurants. If staying in Marrakech, allow ﬁve hours

by car to reach the Draa via an amazing route across the Atlas Mountains. If you are looking for a far less touristy destination than Marrakech, Fes el Bali has a medieval market - or souk – and is sometimes described as the ‘real Morocco’. Home to the oldest university in the world and famous for its Arabesque architecture, Fes is a UNESCO World Heritage Site and is thought to be the world’s largest contiguous car-free urban area. As regards to sightseeing, the city has recently seen the conversion of many of the traditional houses into hotels, meaning that you can stay in the midst of the bustle of the city centre. The most user-friendly part of the Sahara is accessible from the northern edge of Morocco. You can trek on camel-back with Berbers, (indigenous people), from the town of Zagoura, or camp out in Tazzarine where runners from all over the world complete the week-long Marathon des Sables every Spring.

GABON

This small West African country on the Gulf of Guinea is blessed with some of the most diverse tropical forests in the world. The ancient jungles straddling the equator are believed to contain more than 8000 plant species, 600 diﬀerent types of bird and 20 species of primate. On the same day, you can hope to see gorillas in the mist, hippos surﬁng the waves and whales on a holiday retreat. Locals hope that Gabon will become the ‘Costa Rica of Africa’, attracting wildlife and adventure tourists to its 13 new national parks. With 85 per cent of the country covered in tropical forest and the largest population of lowland gorillas and forest elephants in all of Africa, this destination is one for the photography and animal enthusiasts.

WWW.AFRICAOUTLOOKMAG.COM

H O L I D A Y

D E S T I N A T I O N S

GAMBIA

If you are looking for sun during the UK Winter months, Gambia is a great destination to consider as it is good value for money. The small size of the country and the friendliness of the locals are strong draws. Visitors can choose between a relaxing beach holiday or exploring the culture and indigenous tribes. The main tribes are Mandinka, Wolof, Fula and Jola; and it is commonplace to receive an invite to visit one of these Gambian settlements.

GHANA

In 2009, US president Barack Obama chose Ghana as the ďŹ rst African country worthy of a presidential visit, praising its democratic traditions since gaining independence in 1957. The capital, Accra, is a very modernised and vibrant place. Activities are varied and ideal for voluntourists, (volunteer tourists), and adventure travellers. Visit Ho and its game parks to see kobs, duikers and baboons, go mountain biking to the villages of Biakpa and Amedzofe or hike through the Kulugu canyons to the Mountain Paradise ecolodge.

WWW.AFRICAOUTLOOKMAG.COM

T R A V E L & T O U R I S M

MALI

Mali is home to one of Sub-Saharan Africa’s oldest cities, Djenne, located a few hundred miles downstream from Timbuktu. Founded in 800 AD and situated on an island in the Niger River Delta, it was a natural hub for traders who shuttled their goods between the Sahara Desert and the forests of Guinea. After becoming a centre for Islamic learning, Djenne’s market square is dominated by a beautiful Grand Mosque. The market, held every Monday, is well worth attending as it is one of the liveliest in Africa. The best time to visit these lands is at the end of the rainy season, which is at the end of August or start of September; this is when Djenne turns into its own island. The Sahara is also home to the annual Festival au Desert, a three day celebration of song and dance held in Essankane. World music fans will no doubt enjoy this festival and marvel at the cultural diﬀerences on display.

NAMIBIA

For those of you who enjoy wildlife and ecology, this southern African country reigns supreme. With lion, cheetah, rhino and leopard-spotting, the world’s highest dunes and second deepest canyon, Namibia is a country with huge geographical variety. A large part of the Kalahari Desert is located in the east of the country, with the Etosha Pan in the north; a game-rich area with a huge range of animal inhabitants. The Namib Desert and Skeleton Coast lie along the western seaboard, whilst the Caprivi Strip is a dramatic, 280-mile long silver of Namibia between Botswana on the south and Angola and Zambia to the north, providing access to the Zambezi and the habitat of the endangered Wild African Dog. The Sossusvlei Dunes are by far Namibia’s most outstanding attraction. The literal translation of Sossusvlei means “the gathering place of water”, but do not let the name deceive you,

you will need to bring your own water to stop you from dehydrating. The dunes have developed over millions of years as a result of material ﬂowing from the Orange River into the Atlantic, carried north and returned again to land by the surf. Climbing the dunes yields breathtaking views, including the Deadvlei, a ghostly expanse of dried white clay punctuated by skeletons of ancient camelthorn trees. The Spitzkoppe features giant granite peaks in the Namib Desert, with the highest peak standing at nearly 1800 metres. Activities here include bouldering and rustic cave camping as well as multiday safaris. The great Fish River Canyon is second only to the United States’ Grand Canyon. It is more than 500 meters deep and more than 160 kilometres long. Be sure to visit during the dry season to see the beautiful turquoise pools of seasonally-flowing water stretching into the distance.

WE CONTINUE OUR SEARCH FOR HOLIDAY DESTINATIONS IN THE NEXT ISSUE...

WWW.AFRICAOUTLOOKMAG.COM

M W C

2 0 1 4

2014

Highlights from

M o b i l e World Congress

The Mobile World Congress is the world’s biggest mobile show, which took place in 24th-27th February in Barcelona, Spain. This trade show looks at the current state of mobile and where it might go next. The four days were filled with brand new announcements and mobile handset advances as Firefox, Samsung, Huawei, LG, Microsoft, HP, Lenovo and many others showcased their best products and services. Writer Emily Jarvis

Airtel CEO wants sub$100 4G devices

Gopal Vittal, CEO of Bharti Airtel – the largest operator in India – flagged up the high price of 4G devices as one of the main barriers to LTE rollout in India. Vittal said that until prices drop below $100, LTE would not be significant. “We look at LTE and the opportunity, but it’s still some time away. The vast majority of mobile users are on 2G.” Airtel’s CEO pointed to other “infrastructure challenges” holding back 4G. Vittal added that while India has 900 million mobile customers, only 130 million have mobile internet access. And of that smaller number, there are only 67 million smartphones.

www.aFRICAoutlookmag.com

BlackBerry Launched the Z3 Smartphone

BlackBerry announced new enterprise solutions, partnerships and Smartphone models, to enable enterprises and individuals to maximise their productivity, communication and collaboration. The launch of these solutions is seen as the company’s efforts to deliver technologies across the entire mobile spectrum-from the enterprise to the end user.

“We have engineered a new strategy to stabilise the company and restore our customers’ confidence in BlackBerry.” - John Chen, the Executive Chairman and CEO at BlackBerry. The Z3 handset is an all-touch Smartphone designed for customers in Indonesia and is the first product to come from the company’s strategic partnership with Foxconn. This 5” mobile comes with the new BlackBerry 10 OS version 10.2.1. “The Z3 embodies all that BlackBerry 10 offers, with its exceptional productivity features and reliable communications.” BlackBerry also announced the Q10, which will combine the classic ‘QWERTY’ keyboard with the new OS and a 3.5” touch screen. “This is only the beginning of what we know will be a long and fruitful partnership between Foxconn and BlackBerry.” -Terry Gou, Founder and Chairman of Foxconn

Nokia announced BlackBerry Messenger, Nokia X and Nokia X+

As expected, the Nokia X and Nokia X + were made known as their first line of Android phones. Coming with a host of MS services, the phones are built on the AOSP platform, meaning the phones are open source with their own Nokia and Microsoft services on top. Additionally, the Nokia XL was revealed; a much bigger device that comes with a 2 megapixel front facing camera. “The Nokia X is about the people who look for budget-for growth markets like India.” -Stephen Elop, Ex-CEO for Nokia. The Nokia X is $122, the X + is $135 and the XL comes in at an affordable $149. With affordability seeming to be the name of the game, the Nokia Asha 230a was also announced, costing just $61.

www.aFRICAoutlookmag.com

M W C

2 0 1 4

Samsung Unveiled the Galaxy S5

The evening of the first day saw the reveal of Samsung’s flagship mobile device: the Galaxy S5. Specs: 080p Resolution 5.1” Super AMOLED display USB 3.0 charging port Waterproof and dust resistant IP67 rated 2.5 GHz quad-core processor 2GB RAM 4K video capabilities LTE 4G Built-in heart sensor

Global launch on 11 th April

www.aFRICAoutlookmag.com

Mark Zuckerberg launches So cialEDU Initiative

Amongst other tech news discussed at Mobile World Congress was the rollout of a pilot online education program in Rwanda, as part of Facebook’s pitch to bring the internet to the unconnected world. Dubbed SocialEDU, the new initiative comes today from the social media giant’s founder Mark Zuckerberg, who gave a keynote speech at congress.

Telefonica, LG, Samsung, Sony Ink Wearables Alliance

Telefonica announced a plan to collaborate with LG, Samsung and Sony Mobile to integrate services, and therefore be compatible, with the smart wearables of the device makers. “Experts and analysts now point to these devices as a technology trend with the greatest market, and Telefonica wants to participate and lead the development, integration and support of services in the wearables.” -Marieta Rivero, global marketing director of Telefonica.

www.aFRICAoutlookmag.com

L e n

D e k k e r

Q&A Understanding Africa’s Tendering Process:

with

L e n

Len Dekker gives us an insight into the tendering process in South Africa Writer Len Dekker

D e k k e r

frequently asked questions on the tendering process in South Africa. Public procurement policies and procedures in South Africa to contract for the provision of goods and services apply to all “organs of state”. This includes all national departments, all the departments of the nine [9] provincial governments, all municipalities (226 local municipalities, 44 district municipalities and 8 metro municipalities), National Public Entities listed in Schedule 3A of the Public Finance Management Act No. 1 of 1999 and Provincial Public Entities listed in Schedule 3B. Although general or generic procurement rules are applicable to all organs of state, each entity is required to have its own Procurement Policy. Rule No. 1 in preparing a tender/bid is to acquire the specific Procurement Policy in respect of the institutions to which the tender or bid is being submitted.

These five [5] basic or fundamental principles in the Constitution set the basis or benchmark for all public procurement rules. Does the same legislation, policies and procedures in respect of Supply Chain Management apply to all organs of state? Acts that apply to all organs of state include: The Constitution; the Preferential Procurement Policy Framework Act No. 5 of 2000 and Regulations R501 of 08 June 2011; the Board Based Black Economic Empowerment Act No. 53 of 2003; the Construction Industry Development Board Act No. 38 of 2000; and the Prevention of Corrupt Activities Act No. 12 of 2004. At National and Provincial Government level the Public Finance Management Act No. 1 of 1999 (PFMA) applies. The National Treasury issued Treasury Regulations in terms of the PFMA for National and Provincial Departments, Trading Entities, Constitutional Institutions and Public Entities – see Supply Chain Management Regulation 16A. At Municipal Government level the Local Government: Municipal Finance Management Act No. 56 of 2003 (MFMA) and the Regulations of 30 May 2005 applies to all municipalities and municipal entities.

What are the five [5] fundamental

PUBLIC PROCUREMENT: principles of public procurement? LEGISLATIVE FRAMEWORK Section 217(1) of the Constitution

Frequently asked questions regarding public procurement policies and processes are posed and answered in this short editorial. Mr Dekker, attorney, expressed that on each question, there is much opportunity for more detailed answers to be given. The following Q&A with him represents concise responses to some of the most

of the RSA provides that all public institutions must contract for goods and services in accordance with a system which is: fair equitable transparent competitive cost-effective

www.aFRICAoutlookmag.com

At Municipal Government level, why are Councillors barred from serving on tender committees? Part of the broader reform programme across all spheres of government has been to ensure that the political, executive and administrative functions are clearly articulated. Councillors are required to set policy and the administration headed by the municipal manager as “accounting officer” is

(CFO) (or delegate), the senior manager responsible for the bid (or delegate), at least one senior supply chain management official practitioner and technical experts from the municipality or entity. The committee should consider the report(s) and recommendation(s) made by the evaluation committee. Depending on the delegations granted by the accounting officer, the adjudication committee could make the final award of the bid, or make a recommendation to the accounting officer to make the final Who should sit on tender committees award. The CFO of the municipality or municipal entity should chair the and how should it be structured? The Accounting Officer should appoint adjudication committee. The evaluation committee and the following three [3] bid committees: adjudication committee must Bid specification committee - this committee is responsible for compiling comprise different members to ensure that a transparent review of the the bid (tender) specifications. The evaluation and award is undertaken. specifications committee may be Members of evaluation committees comprised of one or more officials may present their reports to the bid from of the municipality or entity and, adjudication committee and clarify any where appropriate, include external uncertainties. Such members should, specialist advisors. The request for a however, not have any voting power bid must clearly indicate exactly what on the adjudication committee. is required to be delivered. The bid specification, evaluation and Bid evaluation committee - this adjudication process must be within committee is responsible for the the ambit of the legislative framework evaluation of bids received and set by section 217 of the Constitution to verify legal criteria and past as well as the provisions contained performance history of the tenderer. in the PPPFA and its associated Membership of this committee as far regulations, and the Broad-Based Black as possible should comprise officials Economic Empowerment Act, No. 53 from the department requiring of 2003, and its associated regulations. the goods of services and at least one supply chain management Can the normal SCM procedures practitioner of the municipality be waived for the provision of or entity. This committee should emergency goods and services? evaluate all bids received and submit Regulation 36 of the Municipal a report and recommendation(s) SCM Regulations provides that the regarding the award of the bid(s) to municipal manager as “accounting the adjudication committee. officer” may dispense of the official Bid adjudication committee - this procurement process and may apply committee should comprise at any “convenient process”, but only in least four senior managers of the the following limited circumstances: municipality or municipal entity of whom at least one member In any emergency; is the Chief Financial Officer if such goods or services are required to execute that policy. Council, in discharging its oversight role, must monitor performance and hold the administration accountable for delivery. The MFMA makes a distinction between the role of Councillors as the policy making body, and the administrative functions headed by the municipal manager and executed by the municipal staff. The acquisitioning of goods and services, whether through quotations or other means of competitive bidding, is an administrative function.

produced or available from a single provider only; for the acquisition of special works of art or historical objects where specifications are difficult to compile; acquisition of animals for zoos; or in any other exceptional case where it is impractical or impossible to follow the official procurement processes. A further requirement is that the accounting officer must record the reasons for any deviations and report the reasons to: The next meeting of the Council; and include the reasons as a note in the annual financial statements.

Conclusion

These are some of the more frequently asked questions about the public procurement system in South Africa. More practical questions which directly affects consulting firms and other bidders include: “What steps can be taken by an unsuccessful bidder who is of the opinion that the unsuccessful bidder should have been the preferred bidder?” The best advice is to consult an attorney if this problem arises, as there are a number of legal steps that can be taken to protect the legitimate interests of the unsuccessful bidder, including a request for reasons, a request for copies of documentation, submitting an internal appeal or applying for a review of the bid by a competent Court. Being a successful bidder is the lifeline of any undertaking. To understand the rules of bidding is thus absolutely essential. To obtain appropriate professional legal advice can be crucial before, during and after the bidding process. ATTORNEY LEN DEKKER Tel: 082 923 0307

www.aFRICAoutlookmag.com

I n V e S t M e n t

P r o F I l e

i n V e s t M e n t

ethiopia iopia Africa Outlook takes a closer look at Ethiopiaâ&#x20AC;&#x2122;s business and investment potential Writer Emily Jarvis

P r o f i l e 28

www.aFRICaoutlookmag.Com

i N v e s T M e N T

p R o F i l e

Why Ethiopia?

Situated in the North-eastern part of Africa - sharing the West border with Sudan, Eritrea to the North, Somalia to the East and Kenya to the South â&#x20AC;&#x201C; Ethiopia has the potential to play a significant role in investment opportunity.

The most attractive things about Ethiopia are:

A pro-investment government Politically stable and secure Macro-economic stability Strikingly improved service delivery Simple and transparent legal procedures The largest domestic market with a population of 80.9million Both regional and international market opportunity Competitive investment incentive package Investment guarantees and protection Exceptional climate A competent and cheap labour force by African standards

The country boasts a religious harmony between Christian and Muslim groups, which has been a long historical and cultural tradition of the country. Ethiopia is a venue for numerous conferences and seminars, for the united Nations and other international organisations. It is a home for thriving commercial communities.

Growth and Transformation Plan (GTP)

With a projected average growth rate of 11.2 per cent, the Ethiopian Government has formulated a five

year GTP to maintain this fast growing economy in all sectors. By the end of 2014, the countryâ&#x20AC;&#x2122;s installed electricity generating capacity is expected to reach 10,000 MW, rising from the current level of 2000 MW and coverage across up to 75 per cent of the country. All-important national access to a potable water supply is to rise from 73.3 per cent to a massive 98.5 per cent by the end of this year. This is part of a huge project to create safe water in the towns and rural areas. Additionally, the total road network reached 53,143km in 2010 and the Government has a target to increase the total road network to 64,500km in the next year.

Importation and Exportation

With a number of state-owned and private banks and insurance companies operating in Ethiopia, micro-finance institutions play an important role in providing credit and saving facilities for micro-enterprises. Although the country does not have a coastline, it is linked by road to the port of Djibouti and the port of Barbara in Somaliland, and Port Sudan provides another external trade route for export-import trades. The Ethiopian Highlands link the country with over 63 destinations worldwide, with an additional 40 cargo destinations spread across Africa, Europe, Asia and the Middle East via its capital city Addis Ababa. Addis Ababa is linked by road to the port of Djibouti, at the Gulf of Aden.

Market Opportunities

With a large population of 80.9million, Ethiopia has plenty of market opportunities as it has potentially one of the largest domestic markets in the whole of Africa. Its close proximity to the Middle East means further promising market contingencies, plus it is part of the Common Market for Eastern and Southern Africa (COMESA), which embraces 19 countries with a total population coverage of 400million.

WWW.AFRICAOuTlOOKMAG.COM

Foreign investors wishing to invest in Ethiopia are required to apply to the Ethiopian Investment Agency (EIA) on a designated form. The minimum capital required of a foreign investor is $200,000 per project. However, if a foreign investor invests in partnership with domestic investors, the minimum capital required of him is $150,000 per project. The minimum entry capital required of a foreign investor investing in areas of architectural, engineering works or related technical consultancy services, technical testing and analysis and publishing work is $100,000 where the ownership fully foreign owned, and $50,000 where the investment is made jointly with

domestic partners. A foreign investor reinvesting his profits or dividends generated from existing enterprise is not required to allocate a minimum capital.

Areas worth Watching

The most promising areas for potential investment and development in Ethiopia today are agriculture, agro-processing, textile and garment, leather and leather products, sugar, cement, chemical and pharmaceutical industry, tourism, mining and hydropower. Ongoing privatization presents enormous investment opportunities to private investors, particularly in the agricultural, manufacturing, hotel and tourism sectors.

CONSTRUCTION

Ethiopia has extensive opportunities in the construction industry, in particular road networks, residential, commercial and industrial building.

MANUFACTURING

With a GDP contribution of 13.4 per cent in 2010/11, the country manufactures food, beverages, tobacco, textiles and garments, leather goods, paper, metallic and non-metallic mineral products, cement and other chemicals. under the Growth and Transformation Plan for 2010/112014/15, priority areas for investment include textile, leather, cement, metal and engineering, chemical, pharmaceuticals and agro-processing.

WWW.AFRICAOuTlOOKMAG.COM

i N v e s T M e N T

p R o F i l e

GgyYindustryat the O L O olo e th ECHNican technno surpris Internet

T ith the Afrt comes as mobile andmillion

, W ing, i n, 40 end d line boom er of fixe 3.05millio ly by the er of e b b h v i num num will reac respect rent market r r s n u r o c e i l e il us pe ile .69m ith th mob o 70 and 3 4. And, w rs in the er cent t ep a p 1 e se of 20 phone u from 30 one to k e s i rt s i a r r o m t S to is sec cted expe y 2017, th b cent eye on. e s o l c

MINING

Geological studies have identified Ethiopia as a favourable geological environment, hosting a wide variety of mineral resources.

ELECTRIC POWER The private sector can participate in electricity generation from any source and without any capacity limit. Transmission and supply of electrical energy through the Integrated National Grid system is, however, exclusively reserved for the Government. However, private investors of both a foreign and domestic background are allowed to operate an off-grid transmission and distribution of electricity.

WWW.AFRICAOuTlOOKMAG.COM

EDUCATION

Although in the early stages, Ethiopia strives to attract internationally reputable educational institutions, including universities and training centres.

TOURISM

The growth of tourism in Ethiopia is increasing as a result of the Government’s commitment to provide an enabling environment for the industry to thrive in. Specialised international restaurants and grade one tour operations mean foreign investors can take full advantage of these opportunities through direct investments or joint-ventures with Ethiopians. Jointly, this sector also has construction opportunities for the building of stardesignated hotels and resort hotels all over Northeast Africa.

HEALTH

Foreign investment exists in this sector for general hospitals and specialised hospitals, including the construction of these institutions themselves.

AGRICULTURE

Ethiopia’s biggest sector is agriculture. With altitudes ranging from 148 metres below sea level to 4620 metres above sea level, the country has 18 major and 49 sub agro-ecological zones, each with its own agricultural and biological potential. The country possesses one of the largest and most diverse genetic resources in the world. The soils and hot climate enable growth of a variety of food crops including cereals, pulses, oil seeds, coffee, cotton, tobacco, sugar cane, tea, spices and a broad range of fruits, vegetables and flowers. These are all fast-growing exports that produce the main commercial cash flow for Ethiopia.

Egyptian Firms Show Interest to Invest in Ethiopia In February, the communication director of the Ethiopian Investment Agency said that more Egyptian companies are choosing to carry out projects in Ethiopia, with 22 currently managing projects worth a total of $41million. The Egyptian projects have created nearly 5000 job opportunities for Ethiopians and 16 further projects worth $25 million has already been licensed. This is a promising sign for foreign investors wishing to invest in Northeast Africa. By examining the Gross Domestic Product (GDP) for Ethiopia, we can determine crucial economic indicators for a country’s prosperous future. The Ethiopian economy witnessed sustainable double digit broad based growth between 2009/10 and 2010/11 of 11.4 per cent. Agriculture is Ethiopia’s main source of GDP, accounting for 41.1 per cent in the fiscal year 2010/11, 90 per cent of foreign currency earnings and 85 per cent of employment. Overall, the economic growth of the country has been associated significantly with the performance of the agriculture sector.

WWW.AFRICAOuTlOOKMAG.COM

L e a d i n g C o m p a n i e s frica outlook is a leading business to business publication that promotes and showcases the leading companies on the Continent. The digital and print publications are aimed at boardroom and hands on decision-makers in a wide range of industries, reaching over 135,000 business executives every month. With over 11,000 unique visitors to our website on a weekly basis africa outlook is the platform to promote your business success. each month we feature leading companies and business executives by profiling their operations in their own words. Covering all aspects from supply chain, investments and developments, best practice, innovation, growth plans and future project and products we aim to promote all that is good about industry, economy and business. producing business profiles across all sectors and regions of africa we give companies the opportunity to tell their story to our readers.

Emily Jarvis Sub-Editor

w w w . a f r i c a o u t l o o k m a g . c o m

If you want to enjoy the exposure and coverage we can offer please feel free to contact me and we can discuss the opportunity at length. Tell us your story and weâ&#x20AC;&#x2122;ll tell the world.

emily.jarvis@outlookpublishing.com

k A P A

o I l

slick operator 36

WWW.AFRICAOuTlOOKMAG.COM

With over 50 years experience, Kapa Oil delivers quality and cost effective products in the oil, detergent and soap manufacturing sectors Writer Emily Jarvis Project Manager Nick Norris

tarted by Shah’s grandfather and his two brothers, Kapa Oil prides itself on being a sustainable family-owned business, which has grown to a size of around 2500 employees. Ani Shah, Head of New Projects and the third generation in the family to enter the company, spoke to Africa Outlook about the company origins and retaining their position in the market.

Karina Packers

The name ‘Kapa’ is an acronym derived from the title ‘Karania Packers’ which was established in the late 1960’s as a salt packaging and baking powder manufacturing company. Karania Packers grew steadily and within a short time, they ventured into producing cooking fats and edible oils. As a result, it became known as Kapa Oil Refineries Ltd. While treading in new territories, Kapa showed its commitment to innovation by being the first manufacturing company to introduce the packing of cooking fats in reusable plastic containers, a norm that all cooking fat manufacturers now follow. As the industry quickly expanded, Kapa steadily acquired more market share. In succession to the cooking fat and edible oils, Kapa started manufacturing a premium detergent powder called Toss, which took the detergent powder market by storm. Toss has been and still is the market leader in the detergent powder category, with advertisements regularly featured on TV. With continual research and development, Kapa saw prospective opportunities in the FMCG industry and proceeded to manufacture different varieties

www.aFRICAoutlookmag.com

k a p a

o i l

of laundry soap bars followed by margarine, glycerine and luxury toilet soaps. In 2003, Kapa cemented its commitment to quality by being certified the prestigious ISO 9001:2000 award for its Quality Management Systems in the manufacturing of cooking fats, edible oils, margarine, baking powder, laundry soaps and glycerine. Kapa is proud to be the first company in the manufacturing sector to be HACCP UK certified for its edible oil processes. Kapa takes pride in manufacturing qualitative and affordable end products for its customers. Due to this factor, Kapa has always and keeps enjoying unmatched brand loyalty from satisfied customers. The company products are now trusted household names, not only in Kenya but throughout East, Central, West and Southern Africa as they export a diverse range of products to over 14 African countries serving

WWW.AFRICAOuTlOOKMAG.COM

With the current trend of healthy eating we are seeing across the continent, more people are aware of their diet and the foods they consumeâ&#x20AC;?

the Common Market for Eastern and Southern Markets (COMESA) and South Africa Development Community (SADC) markets. Being a consumer health driven company, Kapa believes in the manufacture of safe and healthy edible products. unlike other cooking fats, oils and margarines in the market, Kapa products are non-hydrogenated. Hydrogenation is a harmful process which alters the composition of raw materials to resemble those of plastic with the addition of trans-fatty acids as a by-product of this process. Kapa Oil cooking fats and cooking oils are free of hydrogenation thus making them heart friendly, cholesterol free and beneficial to the health and well-being of all consumers.

New Ventures and Trends

As Head of New Projects, Ani Shah revealed that a new product, that will be coming to market in April this

F a

year. “My job has been to organise and professionalise the company in a nutshell, and look at new technology-related projects. This new project has been in the pipeline for a number of years now and we have now secured the approval from the board,” Shah explains. The company have seen success across the spectrum with all of their products, most notably in the sale of their oils. “The oil industry has become more and more competitive but our top brands are still holding strong,” remarks Shah. However, Government spending in the market has, in recent years, been low, which means that the industry as a whole has seen a small decline in sales. Shah does not see this as a problem as company growth has been fed from becoming more efficient and implementing market research strategies. As regards to recent market trends, Kapa Oil have found that more of

We say to customers, we will never reduce prices to compromise quality. We truly believe that our quality and branding speaks for itself”

their customers have moved from using cooking fat to cooking oil. “With the current trend of healthy eating we are seeing across the continent, more people are aware of their diet and the foods they consume. With this in mind, more people have moved towards using our Olivia oil. This has been good news for us in terms of revenue, however, we have also seen a rise in the number of competitors in our market, looking to make money in this industry,” remarks Shah. Kapa Oil have to make sure that bringing in foreign investment can start a sustainable relationship. Shah commented on the number of outside investors who are trying to enter the market and how this relationship is key to successful business: “We have both local and foreign suppliers and, as with any company, business relationships are fundamental. Whether it is your customers or your suppliers, managing these

WWW.AFRICAOuTlOOKMAG.COM

k a p a

o i l

relationships is crucial. We take this very seriously and even in semiretirement, our chair wants to be involved in the company as much as possible, maintaining a key role in this process as a senior member of our team.”

A Benchmark Company

Mr Shah proudly stated that Kapa Oil want to continue as a family business: “We want to be the best we can be. This also means integrating the new generation of the family into the business, and will be key to taking the business to the next level. Our aim is to eventually secure an Africa-wide position and secure operations in new countries,” he added: “If you ever ask what makes us different, we make sure that our quality speaks for itself; we deliver the most quality and cost effective products in the market as compared to our competitors. As an example of this best practice, every element of our detergent powders and oils including refining - are done to the highest quality we can achieve.” With a comprehensive health and safety scheme in place, it is rest assured that staff will receive the right treatment services as Shah cites: “Over the years we have had a few accidents as tends to happen in the manufacturing sector. We look after our people. If there is an accident, our health and safety policy ensures we have the relevant insurances, and this is crucial to us.” With a third generation in the family to carry on the legacy, Kapa Oil will continue to make sure that their products are of the best quality in their markets of operation. As Shah concludes: “We say to customers, we will never reduce prices to compromise quality. We truly believe that our quality and branding speaks for itself.”

www.aFRICAoutlookmag.com

Kobian Scientific Kobian Sceintific is a leading provider of Laboratory Reagents, Consumables, Instruments and Equipment to the scientific community - Kobian Scientific facilitates discovery by supplying researchers and clinicians with the tools they need We at Kobian Scientific are proud to carry the finest names in laboratory supply from manufacturers located all over the world We stand behind these quality products with outstanding customer service and personal attention to your needs Kobian (KENYA) LIMITED Kobian House | Mombasa Road P. O. Box 46617, 00100 | Nairobi - Kenya Tel +254 20 216 12 65 Email sales@kobianscientific.com

www.kobianscientific.com

Aquachem Kenya AquaChem is a leading Water & Process treatment company operating in Middle East & Africa region AquaChem is a market leader in the provision of specialty chemicals & technical services for treatment of Boilers, Cooling, Waste Water, Reverse Osmosis & Process water in a wide range of applications covering many industries including Refineries, Power Plants, Food & Beverage, Edible oil refineries, Sugar, Paper, Cement, Mining and Hotels AquaChem (Kenya) Ltd P.O. Box 63330 -00619, Nairobi Tel +254 20 3745182 / +254 729406660 Fax +254 20 3745184 Email ackl@aquachemme.com

www.aquachemme.com

F A

Enhancing Scientific Research

www.aFRICAoutlookmag.com

P A R A M o U N T

T R A I l e R S

keep on Trucking

WWW.AFRICAOuTlOOKMAG.COM

stablished in 1997 and based South of Johannesburg, Paramount Trailers is one of South Africa’s leading manufacturers and refurbishers of commercial trailers. Their products range from Flat Deck to Bulk Feed trailers and they even offer specialised bespoke trailers for their clients. The business is family owned and operated, with founder and current CEO Fernando Marques and his son Warren, Managing Director since 2008, at the helm. Paramount have recently moved into a new 72,000 m² manufacturing facility. The company has over 200 employees and an on-site design department with engineers and designers, who are able to meet unique preferences, provide leading innovation and cost effective solutions to customers. Paulo Ribeiro, Financial Director of Paramount Trailers since 2010, has played an integral part in the success the company has seen in recent years. “I joined Paramount about 4 years ago and I have seen paramount grow from a SME (Small to Medium Enterprise) to a MlE (Medium to large Enterprise) business over the last few years. During this same period our staff quantity has more than doubled.”

A New Home

Paramount Trailers have become market leaders by offering quality and customer service based on personal relationships with their clients Writer Matt Bone Project Manager Ben Weaver

In 2011, Paramount purchased a plot of land 13km from their previous base of operations and began to lay the foundations on a R150 million manufacturing facility. Construction began in 2012, and was completed by the following August. The new custom built facility was four times as big as Paramount’s original location and offered huge possibilities and potential for expansion. Ribeiro explains why this move materialised: “The need for new premises was born out of a need to consolidate our manufacturing facilities. The previous facility was managed over 2 streets in 6 separate workshops, so

WWW.AFRICAOuTlOOKMAG.COM

P a r a m o unt

T r a i l e r s

logistically speaking it was difficult to collate our activities and streamline production. The second reason was a simple one, with the business growing, we needed more space in order to facilitate our client’s needs and ensure we met and maintained this growth. The move allowed us to stabilise and monitor our growth carefully.” The move to the new facility has indeed strengthened Paramount’s customer base and has ensured they remain market leaders in the trailer manufacturing industry. Ribeiro believes that the new facility has been a huge step in the right direction for them but has to be managed properly. “We wanted to implement processes properly and carefully when we opened our doors on the new site. We could easily have taken on 50 new projects and found ourselves snowed under with work, but we slowly built up our new projects until we found our optimum operating level. We have always maintained a core value of sustainability. Fernando Marques has always wanted the company to be sustainable and to ensure our workflow is never more than we can handle.”

Cause and Effect

The South African economy has seen strong fluctuation over the last two years and industries in different sectors have all been affected. The mining industry, which is one of South Africa’s biggest industries, was hit particularly hard during the financial crisis as well as industrial action and that in turn had an impact on Paramount’s business as Ribeiro explains: “When the mining industry in South Africa had big problems during the recent financial troubles, it had an indirect impact on many businesses countrywide and our business too. With mining being such a huge part of the market and indeed South Africa’s GDP, clients began to stop spending across a variety of markets and it is only very recently

www.aFRICAoutlookmag.com

Fernando Marques has always wanted the company to be sustainable and to ensure our workflow is never more than we can handle”

WWW.AFRICAOuTlOOKMAG.COM

p a R a M o U N T

T R a i l e R s

that we have seen an increase in sales from those particular clients.” Although Paramount was hit by the financial crisis, their customer base did not shrink as much as predicted due to the diversification of products being offered into new markets. The company pride themselves on having strong relationships with their customer base and even have some customers who have been trading with them since the company opened its doors in 1997. “Meeting expectations is very important to us. We create, nurture and manage all our customer and supplier relationships very carefully. It is very easy to destroy a relationship and you might not be able to get that back again. We always ensure that we stick by our word and deliver products and services on time. After all, where would we be without our customers?” This philosophy has ensured that Paramount Trailers generate significant volumes of repeat business, retaining their position in the trailer manufacturing market.

Suppliers

Paramount Trailers work alongside a group of suppliers who they have forged tight knit and beneficial working relationships over the years. Ribeiro believes that a strong supply chain is one of the biggest assets to any manufacturing business. “Our suppliers are always loyal to us. We never look to import unless we cannot obtain a specialist item from one of these local suppliers. We want to ensure our partnerships and relationships with our suppliers last through the years. Some of our suppliers have been with us for 15 or more years and this shows that we are doing things right by them. They are our lifeblood and we intend to continue working with local companies as much as possible, it is good for us and good for the economy of South Africa as well.”

WWW.AFRICAOuTlOOKMAG.COM

It is imperative for us to understand the unique logistical requirements of every client and to be able to provide unmatched flexibility”

manufacturing

“Maintaining our steady growth”

As new markets have become accessible and industries have grown, Paramount have expanded their trailer portfolio to include new models. The freight transportation system in Africa is growing and it is imperative that the companies within the industry can meet the demands of new transportation modes. In Africa, trucking is the most frequently used mode of transportation and continues to grow within the manufacturing and commodity sectors, despite investments in air and rail transportation. “It is imperative for us to understand the unique logistical requirements of every client and to be able to provide unmatched flexibility,” states Ribeiro, making clear Paramount’s unwavering customer focus. Ribeiro is confident that Paramount can not only match, but exceed their clients’ needs in every project: “We have highly trained employees and unsurpassed manufacturing experience, which allows us to always meet production schedules while allowing us flexibility of project parameters set by - and sometimes changed by- clients at the last minute. We will maintain the steady growth we have seen over the last year, but to do this we must continue to always be accessible to our clients.”

www.aFRICAoutlookmag.com

A R T

C o R P

poweRiNG ZiMbabwe oNe bATTeRy AT A TIMe

Art Corp are charging forward in Zimbabwe. Marketing Director Mr Mukarakate tells Africa Outlook more about their manufacturing specialties Writer Matt Bone Project Manager Ben Wigger

WWW.AFRICAOuTlOOKMAG.COM

malgamated Regional Trading Corporation, (ART Corp), is the holding company of a manufacturing group of businesses in Zimbabwe with distribution operations in Malawi, Zambia, Zimbabwe and South Africa. Art Corporation was incorporated in 1912 and is one of the largest industrial companies in Zimbabwe involved in paper manufacturing, paper converting and distribution, pen manufacturing and lead-acid battery manufacturing and distribution, employing over 1,800 people. Marketing Director, Franklin Mukarakate, says that investment is the single biggest priority for the company right now: “We need to ensure that we maintain our machinery to a high standard, and this requires investment which in turn, will bring our costs down and keep our production line running at the best possible quality.”

Products to Suit Customers

Art Corp has several subsidiary companies that are providing consumers with high quality products that have seen the company gain a substantial market share in recent years. Battery Express is one of these subsidiary companies. The company has been in the business of supplying and servicing batteries for more than twenty years, commanding a market share of 59 per cent. Battery Express is the largest distributor of automotive batteries nationwide and it has six branches in the country. Mukarakate is very pleased that despite continued competition, the batteries continue to sell well: “We have seen repeat business and key clients come back to us with large orders, who have chosen to stay with us over the years.” One of the biggest subsidiaries of Art Corp is Eversharp, formed in 1972. They have become a

www.aFRICAoutlookmag.com

a R T

C o R p

GLADeRcom FReiGhT

ladercom Freight provide customs clearing services for all goods in and out of Zimbabwe at reasonable prices and a guarantee all things being equal a 48 hour turn-around time. We also offer consultancy services. The company has been in business since 2005. Since then, we have gained enough understanding of the freight business. The company enjoys cordial relations with strategic partners worldwide and we have grown over the years to be a recognised player in the freight industry. This network of partners aids the company in providing seamless convenience in goods forwarding around the globe. Tel +263 4 585587/8 email info@gladercomfreight.com

www.gladercomfreight.com

leading manufacturer of ball point pens, rulers and markers in Zimbabwe. Eversharp’s strategic focus is to provide a diverse writing instrument product line within its core competencies. In particular, the provision of quality, reliable and affordable writing instruments is the driver of its operations. The Eversharp product array is well assorted to serve the market’s need for writing, be they students, business people or professionals. The brands are available in Malawi, Zambia and South Africa; this is to fulfil the Company’s promise of distributing high quality goods to as many countries as possible.

Asian Importation and Industry Depression

With certain goods coming from Asia falling below Africa’s standards, Mukarakate recognises that

WWW.AFRICAOuTlOOKMAG.COM

We are still producing great products that benefit the consumer in their everyday lives. Our workers come into work every day knowing that they are making a difference to people’s lives with every product we make”

competition is currently high in the market: “We have seen more and more cheap Asian imports coming into the energy market. Our batteries are very high quality and the imports do not last as long and there is no customer service for problems that may arise. Customers who buy these batteries are quickly finding that the battery does not last as long as it should, and are subsequently paying out more in the long term than if they had chosen a local, reputable company like us.” Art Corp are always looking at new and innovative ways to cut costs and raise capital, but so far it has proven very difficult. However, there is still great positivity around the company as Mukarakate explains: “We are still producing great products that benefit the consumer in their everyday lives. Our workers come into work every day knowing that they are making a difference to people’s lives with every product we make.”

F A

Governmental Assistance

High importation tax has been a problem for Art Corp, with on average half of their suppliers coming from abroad. After rounds of talks and negotiations between industries and the Government, a resolution was found. The Government of Zimbabwe has looked at several ways in order to help the industries within the country get back on their feet and kick start the economy. One such measure was to relax, and in some cases abolish, importation tax and duties on a variety of raw and finished materials. Mukarakate has seen this positive approach already begin to show signs of helping the markets Art Corp currently work in. “The Government has helped us a lot by reducing and abolishing several importation taxes on our key materials and supplies. This has been a huge help to us, as we can now redistribute the money that would have been spent on taxes into

The Government has helped us a lot by reducing and abolishing several importation taxes on our key materials and supplies”

areas of production and support that are in need of a cash injection.” A substantial amount of Art Corp’s products are distributed to Zambia, Malawi and South Africa through its regional businesses of Regional Stationery and Battery Express. The Group has established trade links with Mozambique, Namibia and Botswana, and is making in-roads in Angola, the Democratic Republic of Congo and Kenya. This expansion into

neighbouring countries has accounted for the steady stream of income over the last 12 months. Mukarakate believes this expansion will prove to be a wise and profitable business decision: “The company has seen good growth from Zambia and Malawi and I feel that this is one of the key reasons we have managed continue prospering in this industry. We do not want to get too big, but at the same time we want to be able to offer our products to as many people as possible, but in a way that will not compromise on quality of products and other important factors.” Mr Mukarakate has a positive outlook on the next 12 months: “With the right approach to the challenges Art Corp faces, we will make sure that our staff remain positive and happy as, after all, without our workers we do not have a business. We will continue to do as much business as possible, without compromising on quality,” he concludes.

www.aFRICAoutlookmag.com

P C M

N I G e R I A

painting a brighter picture IN The CoUNTRy

PCM Nigeria are well placed to not only consolidate their position as market leaders, but continue to grow into a truly international company Writer Matt Bone Project Manager Tom Cullum

WWW.AFRICAOuTlOOKMAG.COM

aints and Coatings Manufacturers Nigeria Plc., (PCMN), are a specialist in the manufacture of world class coatings including, protective, marine, industrial, decorative and Concrete Coating Systems. Since their establishment in 2001 in Port Harcourt, Nigeria, PCMN have grown considerably to become the manufacturing and distribution solution for some of the world’s leading brands. The company have been widely seen as the first to bring in world class Protective and Marine Paints & Coating systems into the Nigerian market. Mike Thompson, CEO of PCMN is proud that the company has become so trusted by its clients and consumers: “It is always important for us to be a recognised brand in the industry, but we are not just about paints and coatings, we also offera holistic solution to clients needs for surface preparation and application as well. To make things even clearer, we are not just a paint company, we have some amazing products that have the potential to really make a difference to the country.” PCM Nigeria currently hold ISO 9001:2008, ISO 14001:2004 and ISO 18001:2007 and Thompson explains that international and national companies look to PCMN as having obtained these standards through hard work and dedication: “We are very pleased to say we have these international accreditations. It shows that the work we have put in and the dedication of our team has paid off. That is not to say we will stop improving, no, we will continue to be the best we can and to raise the bar further. We have been judged by independent and stringent ruling bodies and found to be at a similar level that other global companies have currently attained. This is very important for us as a company.”

Products to be Proud of

PCMN currently offer products including Protective & Marine Coating Systems, which are the International Paints brand, manufactured in Nigeria under license from IP, a member of the Akzo Nobel Group and the world’s leading brand in Protective & Marine coating systems. Thompson then explains some of the latest products currently available from PCMN: “Our Specialised Flooring and Wall Coating Systems are manufactured under license from Resin Building Products uK, a major uK manufacturing of company specialising in flooring, Acid lining systems, bespoke flooring and wall systems for FMCG Pharmaceutical and other industries,” Thompson continues: “Our decorative Range, PROMA, is being rolled out fully in 2014

and beyond, and offers some of the world’s finest Decorative & Architectural paints.” One of their latest product ranges is the pioneering anti-malaria paint and allied products, the Mozzi Brand. This ground breaking new product is available in different options depending on client requirements. Firstly, it is in a paint format that can be applied to a house or office area and is eco friendly and non poisonous, which works by repelling the mosquitoes as opposed to killing them. The second is a textile spray formulation, which is sprayed onto clothes that can even be washed multiple times, the item will be protected for an average of 3 months. It does not discolour or harm the clothing in any way and is safe for children and adults alike. The final option is in a Soak and Dry format,

WWW.AFRICAOuTlOOKMAG.COM

p C M

N i G e R i a

which is predominantly for use in informal and rural areas, for those who may not have access to washing machine but have a higher density of mosquito related illnesses. The liquid sachet is mixed in a tub along with water and the clothes are then soaked accordingly and hung out to dry. When dry, the clothes are able to repel mosquitoes and provide a “halo” of protection, stretching up to 500mm around a person and lasting for approximately 1 month. “We are very pleased with the results attained from consumers using Mozzi, it feels like we are really helping the consumer combat the terrible problem of mosquito related deaths and illnesses. This is at the heart of all our Mozzi products: ways to help our public consumers enjoy life that bit more.”

Challenges in the Market

Although PCM Nigeria have enjoyed positive growth in the market over the past 4 years, they have seen trends and changes which may have a significant impact on Nigerian manufacturing industry. The challenges they face are: the cost of providing products to the end user has grown over the last year due to Naira depreciation, raw material input cost increases and the cost of infrastructure, as Thompson identifies: “As we have to provide our own infrastructure due to the uncertainty and lack of stable electricity and water in Nigeria, our fuel consumption has risen for our generating sets which power our processing and manufacturing plants.” Secondly, direct importation has had an adverse effect on the business. “What happens is a client in the fabrication industry - who is compelled to use a globally recognised brand such as those represented by PCMN - but instead of buying it direct from the Nigerian Manufacturer, they go to uSA, Europe, Middle East or China and buy the same product there

WWW.AFRICAOuTlOOKMAG.COM

F a

At ATIB SERVICES LIMITED, we are a highly professional software company leading in the provision of standard computer services ranging from accounting solutions, software development to education and computer guidance services. As a member of Institute of Software Practitioner of Nigeria (ISPON), provision of affordable, reliable and efficient software solutions is our primary objective. ATIB Services Limited is a business partner to Sage Pastel South Africa (PLANTIUM).

www.atibservicesltd.com Atekoja Adebayo | Tel: 08033486156 / 07025031909 Email: Sales@atibservicesltd.com | bayo@atibservicesltd.com Akinade Yetunde | Tel: 07025021213 Email: Sales@atibservicesltd.com | yetunde@atibservicesltd.com Ogundimu Aderonke | Tel: 07025021210 Email: Sales@atibservicesltd.com | ronke@atibservicesltd.com

cheaper than in Nigeria, due to economies of scale. Though those companies have benefitted from Nigerian content preference, they do not cascade this down into the rest of the manufacturing and supply industry, thereby benefitting the whole Nigerian economy. This negatively affects our economy and weakens the stability we have built up in this industry”.

Investing in Nigerian Industry

With Nigerian industries beginning to see more external investment come into the market, Mr. Thompson believes this will be highly beneficial for the company and hopefully stimulate the economy in general: “We have seen a lot of foreign domestic investment from various countries in Africa, ranging from financial institutions to breweries and telecommunications. This is good news for the economy as with more money coming into the markets, companies

We are not just about paints and coatings, we also offer a holistic solution to clients needs for surface preparation and application as well” are able to use that money to build up their companies and then in turn, put more money back into the economy. It is a win-win situation for us.” In order to sustain and continue to develop products that consumers will want to buy, PCMN have in the past few years, implemented training programs for new and current workers, to ensure PCMN is able to

meet and exceed the demands for skills as the marketplace grows. “There has been a shortage of experienced workers in Nigeria who are able to come and work for us and be able to hit the ground running. To counter this we have ongoing training programs for our workers, so that they can be equipped for the demands of the industry and be the best at what they do. That is not to say they currently are not, but like any role, there is always room for improvement.” By utilising these programmes and addressing the shortage in worker experience, PCMN are well placed to not only consolidate their position as market leaders, but continue to grow into a truly international company that can match the products it offers with a core of staff who are professional, highly trained and always looking for new products and ways to better both the Nigerian economy and their customer base.

WWW.AFRICAOuTlOOKMAG.COM

R A N k

Z I M b A b w e

Rank ToP oF The

IN ZIMbAbwe

WWW.AFRICAOuTlOOKMAG.COM

Rank Zimbabwe are the number one stationery and paper distributors in Zimbabwe, who aspire to be the trusted one-stop shop for local schools, offices and print companies Writer Emily Jarvis Project Manager Tom Cullum

otus Stationery Manufacturers, trading as Rank Zimbabwe, were initially started in 1981 as a manufacturer and general wholesale company focussed on the grocery market in Zimbabwe. In 1995, Rank decided to increase capacity and focus on the stationery and plastic markets in line with its key competitive advantages: Being a local company, trusted brand name and having quality products. In the last five years, the company has expanded further, increasing their workforce and implementing a paper trading arm. Rank is proud to be a 100 per cent indigenous with 134 members of staff. We were fortunate to speak to Ketan Naik, Finance Director of Rank Zimbabwe. The decision to focus on stationery was based on a drive to develop the education sector in Zimbabwe, and Rank have long-standing relationships with nearly all primary and secondary educational institutions in Zimbabwe, as well as the Ministry of Education. They produce scholastic products including stationery and books and some plastics for home use.

Trading

Rank is now the leading stationery supplier in Zimbabwe, distributing directly to businesses as well as the leading chain stores such as OK Zimbabwe and FoodWorld. Rank also distributes a wide range of paper and board products to the printing industry. Rank shares a logistics partnership with Vision Freight Services, who offer a complete solution to their logistical needs. It is their strategically located network of independent agents that sets the company apart from its competitors. In addition the plastic ware line, distributed through Speedline Marketing, Rank supplies retailers and chain stores alike with a growing range

WWW.AFRICAOuTlOOKMAG.COM

R a N k

Z i M b a b w e

of household products. Rank also operates a manufacturing plant with 22 plastic injection moulding machines, 2 fully automated exercise book machines, 7 envelope manufacturing machines and other various paper and stationery machines. The company’s focus in 2013 was to expand their paper trading side of the business as Naik explains: “We want to get more technical in terms of the paper products that we supply. We have a very good relationship with SAPPI, who are the largest paper producers in the world based in South Africa. As a result of this relationship, we are trying to expand our range of products.”

Buy Zimbabwe

Rank’s two biggest own-brand products are Merit exercise books and the Kian range of office and scholastic stationery, which they are keen to promote in order to stay ahead of the competition from the Far East and within the region. This promotion is in line with a local campaign called Buy Zimbabwe, where there is a focus on locally manufactured products and hiring local companies boosting the country’s economy, as Naik outlines: “With the increase of imports in Zimbabwe, it becomes a more difficult environment for local manufacturers. However, we are a huge supporter of Buy Zimbabwe. We are proud to still be the number one stationery manufacturer in Zimbabwe and wish to give back to the local community.” With the limited range of machinery Rank have, their attention has been on marketing their products. “We already have an excellent brand and understanding of our customer’s needs built up over thirty years, and we wish to ensure that our successful line of products continue in the future. We would rather be trading our own manufactured products rather than importing. This has been our focus.”

WWW.AFRICAOuTlOOKMAG.COM

We are proud to still be the number one stationery manufacturer in Zimbabwe and wish to give back to the local community”

Naik says that as a result of limited local finance for capital expenditure, there is not enough capital that can be invested in securing new machinery for Rank’s factory. However, in line with government policy,(known as ZIMASSET),to manufacture products locally they are seeking out second hand machinery from Europe in order to manage their long term finance in an effective manner. “This will keep our costs competitive, in line with other manufacturers in Southern Africa,” states Naik. Reducing their cost base will mean Rank can establish a stronger export market, becoming more efficient. “We’ve got the skills, so we are looking at increasing our manufacturing base. We are working with a couple of banks such as BancABC, FBC and MBCA Bank to achieve these improvements to our facilities.”

F A

As a result of the trend that Zimbabwe imports more of their products, local manufacturing has taken a hit, and Rank are one of the few manufacturers still able to operate in this tough environment. In order to combat this, Naik is looking to increase company revenue by focussing on the quality of their products. “A lot of our competition doesn’t have the range, quality or high stock levels that we retain. This year, we are hopeful we can reach our target to increase our revenue by between 7 to 10 per cent.” In the last school season Rank estimated that they were able to manufacture and supply 80% of the exercise books in Zimbabwe compared to the previous season of 55%. The target for the next season is to manufacture 100% of the exercise books for Zimbabwe.

Corporate Social Responsibility

Rank have organised a number of donation drives providing schools with essential educational supplies and sponsoring prizes and awards. The trend in Zimbabwe for schools is that the Government distribute funds directly to schools, who then buy their books from Rank Zimbabwe. “Between 70 and 80 per cent of schools in the country buy direct through us or our distributors. We are proud to have maintained such a strong relationship with local schools.” Furthermore, Naik emphasised how Rank always want to give back to the community: “In 2013, we renovated and donated a computer centre to a local school which included furniture and computers.” Moreover, every six months, Rank identify another school that needs either classroom space or computers, offering product donations where they can. “It is important to keep giving back to them. Most have been our customers for the last 20 years. The lack of funding not only hits businesses, it hits schools too. Zimbabwe has a literacy rate of over 90 per cent and has a strong focus on education. We are involved in the industry and want to contribute to this literacy rate as much as possible,” Naik remarks. Rank Zimbabwe aspires to be the “one stop shop” for any stationery and print consumer, ranging from individual scholars to schools, offices and industries. They offer friendly customer service coupled with a local, wellknown brand name that customers can trust.

A TRUSTED LOGISTICS PARTNER TO RANK ZIMBABWE AND OTHER IMPORTERS/EXPORTERS Vision Freight Services Zimbabwe International and local freight, Logistics, Air, Sea, Road, Rail, Documentation, Packing, Crating, Bonded warehousing, General Warehousing, DAP, DDP, Marine Insurance. No. 1086 Western Close | Greendale | Harare | Zimbabwe Tel: +263 864 408 0710 | Fax: +263 4 446 512 Email: willard@visionfreight.co.zw / reception@visionfreight.co.zw

www.visionfreight.com

www.aFRICAoutlookmag.com

S aint - G o b ain

P ip e l in e s

New Technology in t h e

Saint-Gobain Pipelines SA has done the groundwork to secure future business by upgrading their industrial technologies Writer Emily Jarvis Project Manager Tom Cullum

www.aFRICAoutlookmag.com

aint-Gobain Pipelines SA, previously known as Besaans-du Plessis, manufactures grey and ductile iron castings for use in various sectors. These include industrial and general engineering applications, cast iron cookware (Potjie Pots), access covers, and soil and drain systems. They are a second tier supplier to the OEMs (Original Equipment Manufacturers) in the industrial and engineering sector who, in turn, supplies mainly into the railway, mining and construction markets. The cookware products have various routes to market, while all access covers and soil and drain products are manufactured for their sister company, Saint-Gobain PAM. Manufacturing is done in Pretoria West, Gauteng province. “SaintGobain purchased the company in 1998 as it provided a platform for entering the Southern African market. Besaans-du Plessis was an established manufacturing company with commercial presence in all the major cities and was well-known in the market,” explains Stefan Du Toit, General Manager of Saint-Gobain Pipelines. “This investment fitted well with our global strategy of being present in all of the markets we serve in over 60 countries.” Supply chain and supplier partnerships are extremely important for Saint-Gobain. With long-standing partnerships with suppliers that understand their business, very few of their materials and components are imported. “We do import some components through our international Saint-Gobain sourcing teams and offices. By using these structures, we know that we are getting the best prices and service. It is important to source from companies we regard as responsible employers,” Du Toit remarks.

www.aFRICAoutlookmag.com

S a i nt - G o b a i n

P i p e l i n e s

What makes them different?

When I asked Du Toit what makes the company stand out in an industry so full of competition, he explained how the importance of being a local business partner has maintained customer relationships for up to 20 years: “We compete with local foundries and import traders. We have a casting solution which includes everything from basic casting modelling, to pattern making, to machining with various coating options. This allows the customer to purchase a finished product ready for assembly with local support,” he continued “we recognise that there is value in having a local supplier. This gives the customer the ability to manage risk and working capital more effectively.” Boasting ISO:9001, ISO:14001 and OHSAS:18001 certifications, Saint-Gobain realises the importance of sustainability and quality when it comes to the bigger corporations that they supply into. SaintGobain Pipelines believe this gives them the edge on many of their manufacturing competitors from the East.

Biggest Challenges

There are many challenges impacting Saint-Gobain Pipelines SA, and the foundry industry in general, of which two probably stand out above the rest, as Du Toit outlines: “Firstly, the continued increase in electricity prices has hit us, and the industry, hard in the last four years. With annual price increases ascending into double digits, it has forced us to look at our installed technology and to find solutions that are more energy efficient. This requires capital.” The second challenge is finding suitably skilled people that can help drive manufacturing efficiencies. The latter was identified recently by industry organisations and the South African Government, and plans have been laid down to up-skill the industry. “When you are fighting competition from the East with the kind of local

www.aFRICAoutlookmag.com

we recognise that there is value in having a local supplier. This gives the customer the ability to manage risk and working capital more effectively”

manufacturing inflation we are facing, you have to continually drive your productivity and manufacturing efficiencies, which are very difficult to achieve without the right skills. This is critical if we want to remain competitive.” Specially trained staff such as pattern makers, foundry technicians, metal smelters and moulders have started to decline in the industry, which means this up-skilling scheme will drive efficiency in the foundry industry.

Focussing on Health and Safety

Saint-Gobain is serious about employee health and safety, and it comes as no surprise that the company puts a lot of resources toward achieving what they call ‘ZERO HARM’. Du Toit confirms: “In the last two years, we have improved the general working conditions in the foundry through new dust extraction systems and have been working on improving general safety in the plant in line with the Saint-Gobain Group safety

standards.” The company has not spent money in expanding capacity. Instead they are making significant investments internally focussing on product quality through strategic improvements, such as replacing chemical analysis instruments in their laboratory with the latest technology, improving measurement capability in machining and materials handling. Driving industrial efficiencies is part of modern day manufacturing and the management team at Saint-Gobain made the decision to implement World Class Manufacturing techniques. “This toolkit already existed within the larger Saint-Gobain Group and we started implementation in 2013. It isn’t a major project from an infrastructure perspective, but it involves all 280 people on site focussing on achieving ZERO lOSS. This concept includes health and safety, customer service, people development and operational development efficiency. Du Toit believes that the company will succeed in sustaining the improvements made as there is a strong “peopledevelopment” element to the programme. He says: “Sustainable change is only possible through robust processes and engaged people.” The industrial strikes in the mining sector have been ongoing since the middle of last year, which have affected some of Saint-Gobain’s business. Nevertheless, Du Toit is able to highlight some upsides: “The Government is spending a significant amount of money on upgrading the railway structure. There is a requirement for local content for all of the suppliers into this infrastructure development.” The project has just started, and most of the major contracts have been awarded to the international players, who are now in turn trying to source from local suppliers. If Saint-Gobain secures a contract, the company will be looking at a 5-10 year supply into the rail development programme.

In the last two years, we have improved the general working conditions in the foundry through new dust extraction systems”

WWW.AFRICAOuTlOOKMAG.COM

s a i N T - G o b a i N

p i p e l i N e s

G4S G4S is the largest employer quoted on the london Stock Exchange and has a secondary stock exchange listing in Copenhagen. G4S has operations in more than 125 countries and over 620,000 staff members. G4S has a broad range of customers around the world but our strategic focus is on sectors where safety and security are key. Our expertise, global reach and attention to service quality generate the flexibility our customers expect. Our reputation for efficiency and quality in the provision of services is based both on extensive employee screening processes and the high level of training provided. Tel +010 001 4500

www.g4s.co.za

Additionally, the South African market has shown signs of recovery and growth in the construction sector after the decline in the market following the 2010 World Cup and the recession. As a result, market leaders supplying into the construction sector are returning to Saint-Gobain as customers, and the company is seeing the benefit of this.

Gearing up for the Future

Saint-Gobain Pipelines SA is continually looking forward. Currently they are reviewing the feasibility of upgrading their melting technology in around 18 month’s time. Du Toit hypothesised: “We continuously look at manufacturing cost and in this case energy efficient melting technology is very high on the list. This also fits well with SaintGobain’s focus on sustainability through manufacturing and products.” The company has an ambition to provide the best value solution to customers. This includes quality, price

WWW.AFRICAOuTlOOKMAG.COM

F A

Care and Justice | Cash Solutions | Secure Solutions

G4S is the world’s leading international security solutions group, which specialises in outsourcing in countries and sectors where security and safety risks are considered a strategic threat.

Tel: +27 (0)10 001 4500 | Web: www.g4s.co.za

and service. Being able to compete with the East on price will be the main focus in coming years. It is important to keep in mind that the company has been in operation for nearly 70 years. Du Toit pondered on how, when reviewing old company marketing material, it was good to see that SaintGobain Pipelines has always recognised the loyal support of their customers throughout these years. “We believe, even today, that establishing lasting partnerships with customers who are market leaders is critical for business success and continuity.” Du Toit adds: “The Saint-Gobain Group celebrates its 350th birthday next year, proving that the company is a sustainable organisation with solid foundations.” It is clear that Du Toit has a clear understanding of the market, as his company continues to build its business strategy around the customer and its people. “Unless we invest in our people and technology to keep

The SaintGobain Group celebrates its 350th birthday next year, proving that the company is a sustainable organisation with solid foundations”

up with the latest trends and prices, we will fall behind our competitors. Establishing lasting partnerships with our customers is very important; we need to understand their business and find a way to add value as a supplier.” Saint-Gobain is the world leader in sustainable habitat and construction markets. The company designs, manufactures and distributes building materials, providing innovative solutions to meet the growing demand for energy efficiency and for environmental protection. In South Africa, it is determined to develop construction solutions that will meet the requirement of SANS 10400-XA and SANS 204 (energy efficiency in buildings). Gyproc (plasterboard and gypsum plasters), Isover (glasswool and mineral wool insulation), Norton (abrasives and cutting tools), PAM (ductile iron and cast irons products) and Weber (industrial mortars) provide the construction industry with system solutions.

www.aFRICAoutlookmag.com

e R G o S y S T e M

wall to 66

WWW.AFRICAOuTlOOKMAG.COM

o wall I N N o vAT I o N Ergosystem bring their brand of passion and bespoke services to Southern Africa Writer Matt Bone Project Manager Arron Rampling

WWW.AFRICAOuTlOOKMAG.COM

e R G o s y s T e M

rgosystem and its subsidiary companies, Translucent and Acoustic, are creative and innovative solutions-driven companies based in South Africa operating in the commercial, hospitality, retail and domestic interiors markets. Together or in isolation, they are able to transform ordinary or proposed walls, dividers, screens into practical solutions that are clad decoratively, walls that are demountable, single-sided, doublesided, illuminated or non-illuminated. Many of these applications have also transgressed their boundaries and become floor and ceiling treatments. Dean Armstrong, Managing Director of Ergosystem is quick

WWW.AFRICAOuTlOOKMAG.COM

It all comes down to passion. If you love the job you do and go to work with a fire in your heart for what you do, then you will always put in 110 per cent”

to point out what makes them so unique: “We don’t believe that we are a small company operating in a third world country. We know we are a competitive, structured company with integrity and values, differentiating ourselves by adopting a first world mindset where quality and service are an essential part of our core business.” Ergosystem offer a truly unique and bespoke service that is always tailored to the client’s specifications. No two projects Armstrong has overseen have been the same and it will continue to be so: “I do not like doing the same style again and again, I want each one to be fresh and commissioned exactly as the client envisaged.”

F a

“Passion for what we do”

Having overseen impressive and constant growth over the last 9 years, Armstrong is convinced that there is one main reason why they have seen such a period of growth in a recession: “It all comes down to passion. If you love the job you do and go to work with a fire in your heart for what you do, then you will always put in 110 per cent. That is not to say that there are other attributes that have helped us become a very successful company, but it is our passion as a team, that really drives us forward.” It is true that this passionate approach to workmanship has been noted by Ergosystem’s clients and by prospective clients, as at least 50 per cent of the company’s work comes from word of mouth recommendations.

This work for us is very important because it is a global brand and it gives us a big platform with which to showcase our work”

“If we create a unique feature wall in an architect’s house for example, and he then shows it off to fellow architects and gives us a good recommendation, then soon more business comes our way. It is the nature of all business,” remarks Armstrong, clearly pleased with how his company’s reputation is spoken about. As Managing Director, Dean Armstrong does not just sit back and watch his company work, he has a very hands on approach to daily dealings. “I am the type of man who believes you cannot get a true picture of something unless you see it with your own eyes. I work alongside our managers and designers closely each day to ensure I am always in touch with our latest projects and trends.”

WWW.AFRICAOuTlOOKMAG.COM

Erg o s y s t e m

Selling Relationships

It is not just walling solutions that Ergosystems sell, in the eyes of Mr Armstrong: “We sell relationships,” he clarifies this “when we sell a project to a client, whether it is a walling solution or an entire solution for multiple projects, we are not just selling that product; we are selling a relationship between us and them. This could be in the form of always being available to them for consultation or accountability, or maybe just being there if a design or a budgetary requirement is changed. We then nurture that relationship because all it takes is one unhappy client to say something to another professional and a business can be ruined. That is something we never want to happen.” With the recent influx of Chinese products into the manufacturing market, Ergosystems have had to rethink their approach. Customers

www.aFRICAoutlookmag.com

I do not like doing the same style again and again, I want each one to be fresh and commissioned exactly as the client envisaged”

have increasingly looked for cheaper alternatives but Armstrong is confident that their reputation and stature will count for more in the long run. “We have seen a big rise in the competition in our market from outsides sources from Asia and Europe. These companies came with different specs and different approaches and the standards were very different. We had to ensure our standards did not slip so we could land more projects. Our margins are important but we really believe in sustainable pricing. We have a base price and we will work to ensure clients can get a fair deal but I will not lower our standards just to secure the next project,” says Armstrong, giving a clear indication that Ergosystems are in this market for the long haul.

Supplying the Future

One aspect of Ergosystems that Armstrong is particularly proud of

F A

Tel: +2711 837 8602 Fax: +2711 837 1261 Email: sales@kayreed.co.za

www.kaydav.co.za is the suppliers they work with on a regular basis. Having a strong relationship with his suppliers, Armstrong often tenders on projects with an exclusive supplier. He explains that this is down to having a previous and ongoing relationship with the supplier that has served them both well: “When I call a supplier on the phone and ask him to help me with a project, they are always willing to partner up with us, as they know the reputation of our company and just what we have achieved in the past.” Ergosytem work with respected suppliers in South Africa including Advance Glass, Hulamin and Wispeco, who have worked closely on several of Armstrong’s key projects in the last ten years. One of the big future projects Armstrong is working on is with a large international banking group, looking to expand their footprint into

I am the type of man who believes you cannot get a true picture of something unless you see it with your own eyes”

South Africa and Africa. The bank has invested in local banks and before this investment, Ergosystem were already working on several projects at these banks. The new international partners have taken the bank on and Ergosystems have been retained as suppliers to complete the work. “This work for us is very important because it is a global brand and it gives us a big platform with which to showcase our work. It strengthens and accelerates our efforts of expansion into Africa, and it’s nice to hold hands in doing so.” With a strong supply chain, high quality design and implementation strategy and a Managing Director who prides himself on the relationships he has created, nurtured and watched blossom into highly profitable partnerships, Ergosystems can be assured that their place in the manufacturing industry in South Africa is all but guaranteed for the foreseeable future.

www.aFRICAoutlookmag.com

C h an d aria

I n d ustri e s

Wiping Away the Competition

Chandaria Industries celebrate 50 years of manufacturing products for Kenya, East and Central Africa Writer Emily Jarvis Project Manager Tom Cullum

stablished in 1964, Chandaria industries Ltd are the largest manufacturer and distributor of tissue, paper and hygiene products in Kenya, East and Central Africa. Their sister company, Tanpack Tissues Ltd, is also the largest manufacturer and distributor of tissue, paper and hygiene products in Tanzania. The group also has an extensive interest in property and other investments. Darshan Chandaria, Director of

www.aFRICAoutlookmag.com

Chandaria Industries Ltd, offers a birdâ&#x20AC;&#x2122;s eye view of his family-owned company, as the company celebrates its 50 Years anniversary. As the only manufacturer of tissue materials in Kenya, Chandaria Industries pride themselves on delivering excellent products, many of them from recycled raw materials. â&#x20AC;&#x153;By being the only company in Kenya that does this, we have control on the quality of our products right from the beginning to the end of the manufacturing process. From receiving

change, serving the mobility needs of business men and women. “MacCoffee was driven by two things: my passion for the food and beverage sector, and the ability to successfully identify and serve the niche segment in African markets.” Within three years, MacCoffee has gained a huge market share and is now in third position in the instant coffee beverage sector.

“The game has changed”

the raw materials, to getting our products on the supermarket shelves, this end-to-end process has secured our leading position in the market,” Darshan explains.

MacCoffee

Over the years, Chandaria Industries have diversified the range of products they offer, in addition to their existing tissue and hygiene line. Since Darshan joined the company, he expressed a fascination in exploring the food and beverage sector. In the year 2010/11,

the coffee brand MacCoffee was born. “I had always wanted to enter the food and beverage sector. I wanted to explore what I felt was a niche market in East Africa: the 3 in 1 instant coffee concept. After studying and spending a significant amount of time in the UK and discovering these products, I realised they did not exist here in Kenya.” Darshan gained inspiration from the booming specialist instant coffee markets in foreign countries, knowing that places like Nairobi and other African cities would benefit from this lifestyle

One of Chandaria’s key challenges has been the varying cost of importing equipment, and the decisions involved. China has revolutionised the manufacturing industry, as Darshan cites: “The country is able to offer equipment at very low, competitive prices. These lowered capital costs in terms of barriers to entry have caused the game to change, what China has done is revolutionary,” he adds “however, there are certain quality and control parameters which we look for in our machines, which the Chinese manufacturers are struggling to achieve.” Furthermore, the business has seen a drastic increase in cost in terms of raw materials, electricity usage and other operational costs, including Kenya’s Railway Development Levy, a further 1.5 per cent cost on all imports into the country. Although the funds are being used to improve Kenya’s infrastructure in a significantly beneficial way, this has obviously had an impact on the operational costs for any company in Kenya.

“Waste Paper is our DNA”

At the heart of Chandaria Industries is their supply chain, which is the most important component of their operations. “For companies like us, who have over 500 different types of products, we require an extensive variety of imports and raw materials. It is critical that we maintain the appropriate balance of stock levels

www.aFRICAoutlookmag.com

C h a n d a r i a

In d u s tr i e s

and the right quality.” Darshan also emphasised that Chandaria Industries always aim to work with the best supply chain partners available, who have excellent track records. The most important aspect of the manufacturing process is the recycled waste paper raw material, “waste paper is our DNA, without it we cannot function,” Darshan acknowledged. He also points out that recycled products are now globally considered more environmentally friendly by customers, therefore the demand for recycled products has increased.

Taking Premium to the Next Level

Chandaria Industries’ brand building activities have also helped them strengthen their market leading position further: “If you talk about Chandaria Industries in Kenya, the first brand people will name is Velvex, which is the most premium brand on the market today in Kenya and East Africa.” While in Kenya, Darshan observed that all major restaurants, hotels and institutions were using a Velvex branded product and the brand was visibly dominant. Darshan went on: “We always want to further innovate and take our premium brands to the next level, but without increasing the price unnecessarily.” There is no doubt that the Kenyan market is showing positive signs for growth. When we asked Darshan what this growth meant for his market, he replied: “All the big companies are trying to segregate Africa into four main wings, and Kenya is the focal point in the East. The Nairobi market is going to grow; therefore competition will also increase very quickly, with new players both national and international.” With Chandaria’s core tissue and hygiene markets becoming more competitive, they are seeking to diversify further, looking into a number of different industries.

www.aFRICAoutlookmag.com

We always want to further innovate and take our premium brands to the next level, but without increasing the price unnecessarily”

F A

World Class Practices

Chandaria Industries have a strong intention to further professionalise their operations by not only bringing in the best people, but also operating the business on what Darshan calls a “flat organisational structure”: “By this I mean that anyone from the ground level up in the organisation’s structure can come and speak with me directly, even if they report to another member of management, I operate an open door policy.” By bringing in world class practices and projects, the company will become more efficient in their manufacturing process, accompanied by this method of people management with over 1,200 employees. This value reflects the close-knit family structure in the business: “People are often surprised that my brother, Neer Chandaria aged 24 and myself aged 28, are responsible for the day to day operations of Chandaria Industries,” affirms Darshan. “My Dad, Mahesh Chandaria is extremely busy as Group Managing Director, therefore my brother and I have loved taking up this challenge.” This year being their 50th year, Chandaria Industries will celebrate everything they have achieved. Rest assured 2014 will be a major year for the company. The company has a firm focus on training their people to be the best they can be, accompanied by a vision to be a Pan-African player.

www.aFRICAoutlookmag.com

S t e fanutti

S t o c k s

www.aFRICAoutlookmag.com

B o ts w ana

Building S o ut h e rn A frica Stefanutti Stocks are always looking for new and exciting construction projects to work on Writer Matt Bone Project Manager Stuart Shirra

www.aFRICAoutlookmag.com

tefanutti Stocks is one of South Africa’s leading construction groups, with over 12,000 employees and the capacity to deliver a range of projects of any scale to a multitude of clients in diverse markets. All South African operations are divisions of Stefanutti Stocks (Pty) Ltd, a Level Two B-BBEE contributor. The company have a Grade 9 rating from the South African Construction Industry Development Board (CIDB) provides us with unlimited tender capability. Despite a stagnant market and an industry that has been plagued by Governmental cutbacks and project shortages, Tim Stow, General Manager of Stefanutti Stocks, is confident the company will weather this storm and continue to offer the same world class market leading quality construction. “The industry as a whole has been affected by the Botswanan Government’s reluctance to put more work into the public domain, whether in the form of short to medium projects or long term tenders. There is very little private sector work going on and even when a tender does arise, there are so many companies going for it that realistically it is very difficult to win that project.” But there is a potential light at the end of the tunnel as Mr Stow goes on to explain: “Of course every industry has lean spells, but it is how you cope with the lack of work that defines you as a company. We have had to tighten our belts and this will have an effect on what project we tender for, but I believe that this spell will soon end. By June, I think we will see more tenders and more projects becoming available. This will be good news to not just us but also to the Botswanan economy as a whole.”

s T e F a N U T T i

s T o C k s

Maintaining Supplier Relationships

Suppliers play an integral part of any business and especially in construction, where suppliers are paramount. PPC Botswana and Stefanutti Stocks have been working together now for over 10 years and formed a strong working relationship that stands firm in both good times and lean ones. Solid strategic partners are required to turn PPC products into enduring landmarks. Stefanutti Stocks represents such a partnership and the relationship between the two entities is as strong as ever. Stefanutti Stocks has been involved in the construction of iconic buildings in Botswana, some of which include: Otse Police College, SADC building, Maun Hospital and Mascomâ&#x20AC;&#x2122;s head office. Both the Maun hospital and Mascom building were finalists for the PPC Botswana Number 1 Builder competition; showcasing building excellence and long term vision. The two companies work closely together to deliver first rate end results and they are both strong advocates of innovation through partnerships. It is this level of commitment between a supplier and a construction company that helps markets that have been unsteady for the last year become stronger and more stable.

A Closer Eye on Trends

Where some companies look to diversify in work shortage periods, Stefanutti Stocks have decided against doing this. Stow thinks that by staying in their current markets, they will be able to keep a closer eye on potential trends emerging and then then be in an even stronger place to capitalise on them. â&#x20AC;&#x153;We will not look to diversify at the moment as I think things may well start to pick up again in the next 6-9 months and if we continue to keep chipping away at the market, we will surely strike first if something big does come along.â&#x20AC;?

WWW.AFRICAOuTlOOKMAG.COM

b o T s w a N a

HoisTinG soluTions (pTY) lTd

oisting Solutions (Pty) ltd was established in 2005 and started its operations in June 2011 as a crane hire company. The company was launched in December 2012 by the Honourable Assistant Minister of Trade and Industry Mr Keletso Rakhudu. The company provides services in the mining, commercial and construction industries. Hoisting Solutions (Pty) ltd (HS) has changed the trend in the industry as the local company and introduced a choice for customers. HS puts emphasis on safety, delivery and reliability amongst other things and is a trend setter in quality of crane services. The company owns a fleet of wellkept cranes and well trained and experienced operators. It aims to be the company of first choice for crane hire and lifting solutions in the region. The work proudly done thus far amongst several other large scale projects includes erecting and dismantling tower cranes for Stefanutti Stocks in Gaborone for the Fairscapes building. HS covers a wide spectrum of capacity with its fleet and can undertake various projects of different sizes.

Tel +267 3 922 911 email cranes@hoistings.co.bw www.hoistings.co.bw

s T e F a N U T T i

s T o C k s

Stefanutti Stocks are currently working on finishing a project for the Sere Wind Farm in the Western Cape. A consortium between Stefanutti Stocks Power business unit and power solutions manufacturer, Powertech, are undertaking the construction of a complete substation and a 132kV power line for the Sere Wind Farm in the Western Cape. The contract commenced back in June 2013. The wind farm, consisting of 50 turbines, is located approximately 300 kilometres North of Cape Town, with the nearest towns being lutzville and Koekenaap. The 44km power line winds through very sensitive Namaqualand flower route. In order to preserve this sensitive area as well as defer the risk of heavy mixer trucks getting stuck on the sandy servitude, Stefanutti Stocks Power elected to pre-cast foundations for the guyed towers. Furthermore, the mostly sandy soil conditions enable efficient levelling and lining up of precast items. The contract completion target date is 21 May 2014 One of Botswana’s biggest industries is diamond mining and Stefanutti Stocks have been working alongside the various mining companies in recent years. The competition for lucrative diamond mining projects is very intense, with companies doing everything they can to undercut and beat the competition. Stow is acutely aware of this situation but believes that the companies tendering the project are looking for more than just the cheapest option: “I have seen several tenders won by companies who were not the cheapest, they were the ones who offered the best package all round. I think the mining companies are realising that the cheapest option is not always the best option. This gives me confidence that other industries will look to do the same thing and carefully look at all tenders before choosing.”

WWW.AFRICAOuTlOOKMAG.COM

b o T s w a N a

ppC lTd.

ppC’s sTrenGTH BeYond The bAG

We will not look to diversify at the moment as I think things may well start to pick up again in the next 6-9 months”

PPC Cement is the leading supplier of cement in Southern Africa, with cement manufacturing facilities and milling depots across South Africa, Botswana, Zimbabwe and Rwanda. Its cement brands include the marketleading SureBuild brand in South Africa, Botcem in Botswana and unicem in Zimbabwe. In addition to serving the Southern African markets, the company exports cement to other African countries. To retain the industry leadership position, PPC strategically partners with companies such as Stefanutti Stocks that help turn PPC products into enduring landmarks. Tel 390 1553

www.ppc.co.bw

Proudly Botswana Consistent Quality products Technical Support Builders App Efficient deliveries and collections

We at PPC Cement believe in driving innovation and strategic partnerships PPC is grateful to our strategic partners for making proper use of PPC products in order to create buildings that last a lifetime. Together we can do it all. For more information call 390 1553 or visit www.ppc.co.bw

An Important Year Ahead

The next 12 months will be very important for Stefanutti Stocks as they look to help push a struggling market forwards in the hope to see new tenders and projects emerge. “We will continue to work in Botswana alongside the various industries, but there are a lot of civil companies who are tendering against us but we have seen some good projects completed in the country, and we will always consider it to be a positive market for construction industry.” Tim Stow is confident that the current market slump seen in construction in Southern Africa will soon change for the better and Stefanutti Stocks will be ready and waiting to undertake any and all projects they can. “We are always looking for new and exciting projects and tenders to work on. If you become too fussy about the projects you pick, you will end up losing business, if you take each one at face value and then make an informed decisions then you will have a greater variety of work to undertake,” Mr Stow surmises.

WWW.AFRICAOuTlOOKMAG.COM

Lit h o n

www.aFRICAoutlookmag.com

NAMIbIA’S

oNe sTop shop FoR PRoJeCT CoNSUlTANCy

In an industry that demands perfection, lithon Project Consultants is striving to become the preferred company of choice in this ever-competitive field Writer Matt Bone Project Manager James Mitchell

ithon Project Consultants are an established and highly sought after engineering firm that provide project management, multi-disciplinary consulting engineering and mining services to their clients. They have a highly skilled and qualified professional team of more than 65 people that serve clients from 4 offices in Namibia and 2 offices in South Africa. Directors Jan Fourie and Frikkie Holtzhausen, describe the company as a “one stop shop” for engineering and mining projects:

WWW.AFRICAOuTlOOKMAG.COM

L i t h o n

“We offer a fully multi-disciplinary project management service that enables us to have all our clients’ bases covered. The client can then be assured that everything to do with their project is dealt with by the same team and that team can be reached at any time.” Lithon aim to provide their clients and the communities with whom they work across Africa with excellent professional engineering service. Lithon are not just focusing on one type of engineering but they work on all types of projects, from the concept planning stages through to completion, with a highly skilled professional team supported by state of the art office equipment and software.

Substantial Growth

The majority of companies see their profit year on year as a good indicator of business growth and sustainability. Fourie explains how the growth of Lithon has been such that they no longer look at profit as their marker: “In 2011 our revenue was 17miilion Namibian Dollars (NAD) and in the current fiscal year we have reached 45 million NAD. This growth has been substantial for us but we do not use it as a marker of how successful we are. That is shown by the number of key repeat business clients we have.” “These key business clients that we continue to work with at Lithon have come back each year and given us bigger contracts than the previous ones. It is a sort of stepping stone up to the next level every time we complete a project on time and to the quality requirements expected by the client,” explains Holtzhausen, who has more than 20 years experience in the industry. Lithon pride themselves on their capacity for not only quality building, transferring of knowledge and sustainable development; they also want to provide employees with a

www.aFRICAoutlookmag.com

fulfilling work experience and an opportunity to grow professionally. “I strongly believe that Lithon’s biggest asset are our people and our strong teamwork as we are guided by our unifying corporate principles of Love, Integrity, Trust, Honesty, Obedience and Nobility (LITHON),” remarks Fourie.

Expertise and Professionalism

Lithon Project Consultants aim to provide training programmes to assist in establishing and investing in young engineering professionals in the industry. Holtzhausen cites: “Our staff must be more than simply technically qualified to do their job. We are encouraging our staff to develop a wide range of skills and this will remain a key focus for Lithon Project Consultants.” It is this strong emphasis on training their professionals in house that has pushed Lithon to the forefront of the industry. It offers workers the chance to become even better in their roles through carefully planned and taught training. The company have built up a pool of excellent specialists with diverse experience who will be able to meet all of their client’s needs. Lithon Project Consultants have access to further expertise and specialist services through associations with local and international companies on a project related basis, enabling them to undertake any major multi-disciplinary engineering or mining project.

Trends

The engineering industry has seen a rollercoaster rise in the last 3 years in Africa. With the nationalisation of the mining industry and the stagnation of the market, Lithon have seen little progress in the mining sector, but are confident that they are turning a corner in terms of profitability. “We have

www.aFRICAoutlookmag.com

l i T h o N

seen a downturn in the expansion of certain areas in the mining industry in Africa. With Nationalisation of mines and the drive towards decreasing operational costs, planned expansion projects have been put on hold in many cases,” explains Fourie. However, as mentioned, lithon feel that the industry is beginning to turn a corner now. Fourie is confident that the next 12 months will show an upwards trend in the mining sector: “There is a positive feeling coming out of the mining companies and engineering companies who work in that sector. The Government has made more money available for mining and infrastructure projects in Namibia.”

Supply and Demand

We always ensure our clients are fully aware that we will be working alongside them and consulting them from beginning to end of all projects we undertake”

WWW.AFRICAOuTlOOKMAG.COM

As with all businesses, a good supply chain is a paramount asset. However, lithon do not just choose to use the same supply chain time after time: “We always make sure that the first thing we do is meet the client’s needs in terms of supplies. We look to our local markets and suppliers first, but if the client needs specialist equipment or something that is not available, then we look at international suppliers and service providers to compliment the client requirements. India and China have supplied our projects with equipment, and materials at a competitive cost and to the required quality. To exceed our clients’ requirements is our main priority. Without clients, we don’t have a business.” With this demand for high quality project management, lithon have begun to expand into the surrounding countries, especially in South Africa, where as previously mentioned, they have opened up two new offices. Fourie says that this expansion will be of long term

Construction Specialist is within your reach

Fraser Alexander is a leading mining and industrial services company able to develop solutions to complex problems in collaboration with clients. Our construction capabilities are embeded in a seamless combination of skilled manpower and specialised equipment which is deployed across a variety of challenges: Bulk earthworks; civil structures; pipeline construction; construction of waste sites; are a few examples of our capabilities. Tel: +27 (0)11 929 3600 • Telefax: +27 (0)11 397 3006 E-mail: construction@fraseralexander.co.za

benefit for both professionals and the company: “We have seen a skills shortage in this industry as most of the highly qualified professionals end up going to South Africa or abroad to Europe and America. The primary drive behind opening offices in South Africa was so that highly qualified project managers and engineers abroad could also be a part of the family which we are building here at lithon.”

The Future of lithon

With the expansion of lithon at the forefront of future plans, Fourie explains that they are currently working on three long term plans in North Namibia which will see them into 2016: “We are currently working on an industrial project in the North of the country and two agricultural Green Scheme Projects near Rundu. The agricultural

projects encompass all aspects from surveying, bush clearing to irrigation and pivot layouts and river/booster pump stations, to help facilitate the client’s needs. We are very proud to be offering an integrated service that will, in total, have seen us work closely with the client for 3 years.” Holtzhausen adds: “We always ensure our clients are fully aware that we will be working alongside them and consulting them from beginning to end of all projects we undertake. We want to become the preferred consultant for Namibian clients at first and then who knows, maybe in Sub-Saharan Africa in the future.” 2014 will be a big year for lithon, with bigger projects becoming the normalcy and more key clients giving them repeat business, due to the high quality of their work and the integrated project management services they offer. Fourie and

www.fraseralexander.co.za

We want to become the preferred consultant for Namibian clients”

Holtzhausen are confident they will not only meet but exceed their clients’ requirements: “We are both confident that what Lithon offer is exactly what the client needs; quality, professionalism and a service that is all encompassing and always with the client’s needs at the heart of what we do.”

WWW.AFRICAOuTlOOKMAG.COM

b e l o

k I e S

hands-on Construction Company S o U T h A F R I C A’ S

elo and Kies is a privately owned construction company that was formed in 2000 by the two directors: Wimpie Kies and Victor Belo. As the company structure firmed up, other members of the Kies and Belo families joined the management team of the company and its current structure positions it well for further growth.

WWW.AFRICAOuTlOOKMAG.COM

The key to good quality is a hands-on approach”

up until the company’s inception, Wimpie and Victor were employed by one of the major construction companies in South Africa. Boasting a wealth of experience in both academic and practical settings, the directors are highly experienced and competent team leaders, who like to adopt a hands-on approach with all their construction projects. This mix of qualifications is what has stood Belo and Kies in good stead and allowed

With a focus on a continued reputation for quality and efficiency, Belo and Kies adopt a hands-on approach to construction Writer Emily Jarvis Project Manager Arron Rampling

it to progress to become the awardwinning company it is today. “The key to good quality is a handson approach by myself and Victor. We set the correct standard and then ensure that the standard is achieved by managing it carefully, we never leave a team on their own. That is one of the contributions that has helped the company become a success; we like to be as involved as possible,” explains Mr Kies, one of the company directors.

Management consciously cultivate adherence to a daily activity cycle, paying close attention to the planning, organising, action and control stages of any given construction project. “We deliver a good quality product, and are very hands-on with this process. We have a foreman on site who manages each project and undergoes regular performance appraisals so that we can work on any weaknesses staff may have.” In addition to this emphasis on quality, regular reviews of individual employee performance are undertaken. Belo and Kies adopt systems and procedures to support quality control and ensure that safe working practices are in place. This is underpinned by a philosophy of having the right people on board to deliver a quality product to achieve excellent financial results, creating what the Directors term as a “mutual beneficial relationship with clients where clients perceive value for money and the company achieves cost effectiveness.” When it comes to health and safety, Belo and Kies continues to strive for excellence and places a very high priority on safety policies. The Occupational Health and Safety and Environmental Procedure Manual sets out the company commitment to the identification, assessment and management of the Occupational Health and Safety and Environmental Risks and Hazards. “We strive to have

Most of our staff are local to each individual project, which helps to support the economy wherever our projects take us”

our systems in line with OHSAS 18001 and ISO 14001,” Mr Kies affirmed. Belo and Kies have completed over 350 contracts since its inception and maintained partnerships with Xstrata and Exxaro, carrying out commercial and industrial constructions. As proud members of the MBA (Master Builders Association), CIDB (Construction Industry Development Board) and NHBRC (National Home Builders Registration Council), the company have projects in a number of locations spread across the country, with 40 management staff and 300 labourers behind them. The company have successfully completed a wide variety of projects over the last year including FleurDal Shopping Centre in Bloemfontein, three Virgin Active leisure centres, Atkinson house apartment conversion and New Jozini Shopping Centre; a R110 million shopping mall built over ten months in 2013 in a rural location.

A Solid Reputation

Through their past projects, Belo and Kies have managed to establish themselves as a company that can deliver big projects on time, without compromising on quality. Mr Kies told Africa Outlook that although the recession had been taking its toll on the construction industry in South Africa in terms of margins and the amount of work available, the industry has started to turn. With more jobs available and more acceptable margins surfacing once more, developers have now learned not to simply contract the cheapest construction company, “they would rather negotiate to get someone with a good reputation for quality and workmanship.” Moreover, the company has managed to secure a good order book for the next twelve months, with several projects lined up including Tugela Ferry shopping centre in Natal, Wall Street Mall in Rustenburg, a

WWW.AFRICAOuTlOOKMAG.COM

b e l o

a N d

k i e s

Se STeeL

E Steel Fabrication is an industry veteran in the steelwork and steel construction industry.

Founded in 1981, the company uses more than three decades of experience to find structural steel solutions that will meet the unique requirements of each and every client. Proudly working together with Belo & Kies, SE Steel Fabrication uses its expertise and experience as well as the most up-to-date technology, to deliver the most reliable and professional steelwork from design to implementation. Tel (011) 953 4584/5 email info@seteel.co.za

Belo and Kies have a high number of returning sub-contractors and suppliers that have supported them over the years”

WWW.AFRICAOuTlOOKMAG.COM

www.sesteel.co.za

Virgin Active gym in Waterfall Park Kyalami and Ivydale shopping centre in Polokwane. Kies identified a trend that a lot of developers are expanding their portfolios by completing regional shopping centres, some even in rural areas: “These projects have been a key factor to secure us future work and further our reputation for quality. The demand for shopping centres in rural areas is also on the rise.” Belo and Kies have a high number of returning sub-contractors and suppliers that have supported them over the years. “loyalty is key to our success. Most of our staff are local to each individual project, which helps to support the economy wherever our projects take us,” remarks Mr Kies. The company are constantly reviewing and tweaking their structures, systems and procedures to keep up with the pace of growth in the construction industry. “We can only be successful with a proper

support team in place. We are very selective with our team, requiring those who can take a project by the reins and accept responsibility for their area, and train others. In other words, people who support our slogan: Building South Africa.â&#x20AC;? Reinforcing their workmanship, the company has won a wide array of awards including MBA first place certification and Safety Management Shield for the Xstrata Spares Stores, a five star grading for Occupational Health-Safety-Environment for the New Jozini Shopping Centre and many other MBA awards. With a remit to be acknowledged as a reputable construction company who deliver a quality product safely and right first time, Belo and Kies promises fruitful returns for both contractors and shareholders. To find out more, visit their new website: www.beloandkies.co.za

WWW.AFRICAOuTlOOKMAG.COM

S A R I T

C e ntr e

he Sarit Centre was the first-ever shopping mall in East Africa, which was opened in 1983. The concept for the design was based on the Brent Cross Mall in London, which the developers visited shortly after it opened its doors in the late 1970s. They shared the vision that this new retail concept could be successfully implemented in Nairobi. Construction commenced in 1981 but was halted by political instability. As a result, around 200 applications for retail units were stunted and many

www.aFRICAoutlookmag.com

one-stop shopping experience with a diverse range of retail and service tenants, providing everything under one roof”

business families left Kenya, meaning only two units were in place on the opening day in April, 1983. These were the Uchumi Supermarket, which is still there today, and Text Book Centre. The objective of the centre has remained the same over the years; to provide a comprehensive one-stop shopping experience with a diverse range of retail and service tenants, providing everything under one roof,” Peter Moll, Public Affairs Coordinator added “city within a city is the centre’s slogan, and a concept that complements our plan for the future of

nstructi

Bringing

Retail t o East A fri ca f irst We chat to Peter Moll about The Sarit Centre, the first ever shopping mall in East Africa which opened its doors in 1983 Writer Emily Jarvis Project Manager Sheridan Halls

the Sarit Centre and all developments, which we aim to fulfil.”

by their forefathers to start afresh. Their vision was make a difference in Kenya and their businesses flourished Family Histories to encompass investments and today, they are prospering in several The idea for the shopping centre was developed by two Indian families from sectors of the economy,” Moll cites. Murng’a and Karatine, two small towns In addition to their flagship shopping centre, the business has seen many in Central Kenya. At Independence in new malls built and now in operation in 1963, unlike thousands of Indians and Europeans who left the country at that Nairobi over the past 30 years. time, they envisaged the opportunities National Economy of the new vibrant nation that was to emerge. “They moved to Nairobi 2013 was a difficult year overall for and utilised the experience and Kenyan entrepreneurs as the National finance of the businesses built up Elections took place, bringing with

them a new ruling political regime and new President, Uhuru Kenyatta. “Post- April, the Kenya economy became increasingly buoyant and peaked towards the year-end with good Christmas sales,” affirms Moll. In Kenya, any major constraints have centred on the state of the national economy. This being said, Kenya is one of the most stable countries in Africa, with elections held without fail every five years. However, Moll states that the major issues for the country remain focussed around infrastructure: “Nairobi is growing at

www.aFRICAoutlookmag.com

s a R i T

C e N T R e

an unprecedented pace, which puts a strain on power generation, water supply and the need for sewerage systems.” The Government is tackling these issues head on, with wind-turbine projects in several parts of the country and geothermal power projects to boost the supply of electricity. Water still remains a problem that is being resolved by the creation of individual boreholes and the construction of new highways and sewer connections are beginning to come into fruition. Perhaps the biggest challenge that The Sarit Centre had to overcome was securing the finance for the 100,000 square metre target, costing around uS$250 million. “Work has inevitably had to be rolled out in phases, not least so that new developments do not impact too negatively on the existing businesses within the Centre,” Moll remarks.

Directly Managed

Moll states that in retrospect, perhaps the most positive aspects of the Sarit Centre’s success has been the decision made very early on to “owner-manage” the complex. This proved crucial in some of the more difficult years and has resulted in a mutually beneficial relationship between tenants and management. “Many of the tenants that joined the centre early on have remained with us, and have subsequently seen the benefits, growing significantly in their areas of operation.” As a result of their continued dedication to customer service, The Sarit Centre was nominated for the award as East Africa’s friendliest shopping experience. The needs of the local community in West Africa and even further afield have also been recognised, as the Centre has been nominated for several road developments, contributing to its community service commitments; including education, medical and hospital assistance. “We have raised funds for national famine relief campaigns, the uNICEF Tsunami

WWW.AFRICAOuTlOOKMAG.COM

Many of the tenants that joined the centre early on have remained with us, and have subsequently seen the benefits, growing significantly in their areas of operation”

WWW.AFRICAOuTlOOKMAG.COM

S a r i t

C e ntr e

www.aFRICAoutlookmag.com

truct

Appeal, drought, the mentally ill and many other causes to great success.”

Value Loyalty Card Concept

One of the aspects that The Sarit Centre added to their business in 1997 was a loyalty programme for regular shoppers as Moll further explains: “Customer service has always been emphasised, and over the past year, the management has given a great deal of time and money to improving its Value Card loyalty concept.” New hardware and software have been invested in with Amity India to make this friendlier for retailers and shoppers alike and as a consequence, membership is now booming. Over the past ten years, there has been a significant increase in the number of African middle class, which has sent the retail business in Kenya skyrocketing. This reflects well on the stability of the country and also reflects the success of its education programme, allowing people to aim for better prospects and opportunities in life. “African shoppers now buy everything that their Western counterparts buy, forming 80 per cent of our shopping mall traffic,” Moll added “in Nairobi alone there are around 25 shopping malls in operation or under development, whereas 30 years ago there was just the Sarit Centre. It’s this incredible retail growth that investors are now trying to satisfy in a modern day Africa.”

Retail Competition

The Sarit Centre’s premier position has faced stiff competition but still remains one of the busiest and extremely vibrant shopping malls in Nairobi, with an average daily footfall of 25,000. “Location, location, location is the creed of shopping centre developers and the Sarit Centre has an unrivalled position in the affluent Westland suburb of Nairobi, at the hub of a busy road network going to Uganda and beyond,” Moll emphasised. What’s more, the developers are now working on enormous expansion plans which encompass a new international conference and exhibition complex of 6000 square metres and a 200 room business class hotel to complement this facility. This is expected to attract major international and country trade fairs, social events and more retail shops to achieve the aforementioned 100,000 square metre target. “This will call for an extensive marketing campaign over the next five to seven years to attract major retail chains from around the world. We hope they will look to Kenya and Africa for their next expansion initiative,” concludes Moll.

www.aFRICAoutlookmag.com

b I G e N

A F R I C A

leadiNG iNFRasTRUCTURe developMeNT solUTioNs FoR aFRiCa Bigen Africaâ&#x20AC;&#x2122;s vision is to improve the quality of life for all through the development of sustainable infrastructure solutions Writers Annette Van Zyl & Emily Jarvis Project Manager Stuart Shirra

WWW.AFRICAOuTlOOKMAG.COM

igen Africa, established in 1971, has evolved into a leading infrastructure development company operating in the health, education, agriculture, water and sanitation, property, energy, road, rail and mining sectors. The company has successfully expanded the delivery of infrastructure projects from its original South African base into other African countries – first expanding into neighbouring countries and, during the past few years, in line with its Africa expansion strategy, into west Africa, which will be followed by ventures in east Africa. The company now operates from sixteen offices across Africa, including South Africa, Zambia, Botswana, Namibia and Ghana, with formal representation in Kenya, Nigeria, Congo Brazzaville, DRC, Madagascar and Mauritius. The company’s in-house capabilities and strategic partnerships enable it to integrate the entire value chain in the infrastructure process – from feasibility studies through project preparation, management and implementation to development finance and ongoing asset management. This approach creates costeffective, sustainable projects and sets it apart from other engineering companies.

Structural designers for 240m high 50 storey Bahrein World Trade Centre Twin Towers, in association with Atkins.

Bigen Africa is constantly identifying changing industry needs and adapting to meet them, to position itself as the thought-leading multinational infrastructure development consultancy”

Sustainability is further entrenched through its principle of “doing good while doing business”, which aims to improve the quality of life of all stakeholders in its infrastructure solutions. Optimum impact on community stakeholders is ensured through the Intuthuko Foundation, a non-profit organisation Bigen Africa established in cooperation with other project stakeholders. Intuthuko addresses socio-economic development imperatives by acting as a facilitator and mobiliser of funds for integrated development projects and a catalyst for creating socioeconomic investment opportunities for corporates through coordinating strategic partnerships.

Thought-leading Consultancy

“Bigen Africa is constantly identifying changing industry needs and adapting to meet them, to position itself as the thought-leading multinational infrastructure development consultancy with core capabilities in engineering, management consulting and development finance,” says Dr Snowy Khoza, CEO. Goal-setting is based on the company’s five-year strategy, S-Vision 2016, which has motivated the strengthening of a competent leadership core to drive growth in both the public and private sectors. The company recognises the business benefits of consistent investment in its staff, building skills and capacity to make it an employer of choice. Tools to achieve competency and career growth include performance management, integrated across the organisation to effectively determine the accurate calculation of individual performance scores based on individually-agreed objectives. Performance plans are aligned with the overall short- and long-term strategic and financial objectives of the company.

WWW.AFRICAOuTlOOKMAG.COM

B i g e n

Afr i c a

African Challenges and Opportunities

“We attribute our success in Africa to our in-depth understanding of the continent’s unique challenges and expectations, accelerated by our approach to project implementation, fund mobilisation, job creation, poverty alleviation, skills transfer and indigenisation requirements,” says Dr Khoza. Africa poses both risks and opportunities: Political risks, including corruption and land or asset expropriation; Insufficient developed human capital; A lack of proper planning and coordination of natural resources; Economic disparity between countries; Rapid population growth; Weak institutional and legal frameworks in some countries; Governments which struggle to roll out infrastructure projects due to fiscal or manpower constraints; The price of exports out of Africa has increased as trading has improved. The African economy is growing. Increased foreign direct investment is flowing into the continent. R593 billion has been invested in Africa by South African businesses; Africa’s demographic factors and its demographic pyramid point to its percentage of world population increasing, both as far as youth and ageing population are concerned, as a result of its higher fertility rate than other continents; Old-age dependencies will have an impact on public finance; Regional trade has overlaps and inconsistencies and requires streamlining, including efficient and transparent border services; and Private-sector interest in Africa is growing and participation in publicsector infrastructure programmes should be stimulated.

100

www.aFRICAoutlookmag.com

We attribute our success in Africa to our in-depth understanding of the continent’s unique challenges and expectations, accelerated by our approach to project implementation, fund mobilisation, job creation, poverty alleviation, skills transfer and indigenisation requirements”

????????????????

Bigen Africa Managing Principal, Wallie Louw, and the Mayor of Newcastle, Cllr RF Rehman, unveil the sponsorship board at the Zithuthukile Creche opening.

i N F R a s T R U C T U R e

Retained as civil and structural engineers for the 55000m2 Telesure HQ, Steyn City Properties (Pty) Ltd in Johannesburg, SA.

“Bigen Africa aims to accommodate these challenges and opportunities in its capacity as a development activist and public sector activist, and through partnering with its private sector colleagues,” says Dr Khoza “The infrastructure development gap in sub-Saharan Africa is not narrowing and it will require all stakeholders to work together to close it. Bigen Africa Group remains a partner of choice in this regard.” Dr Khoza went on to say that “Bigen Africa aim to provide sustainable solutions to these challenges covering road infrastructure, bridge design and construction, electricity provision, water supply and treatment, telecommunications services, housing, construction and project feasibility studies. Our approach will unlock infrastructure development across a wide sphere of infrastructure development enablers and activities, including knowledge-sharing, crossborder cooperation, infrastructure funding, accountability and dialogue.”

relationships and resources provide the company with more impactful projects and operations. Currently Bigen Africa is partnered, through Prodelko, with Australianbased Wave International as its mining international partner. During 2013 the company strengthened ties with various international consultancies seeking to establish a presence in Africa and which have limited overlapping capabilities with Bigen Africa and no existing partnerships in sub-Saharan

Africa. The Group’s relationship with CARDNO has progressed to a level of common strategic fit, as evidenced by the successful conclusion of the Australia Aid Partnership Facility [AAPF]. Bigen Africa has also signed an MOU with Parsons Brinckerhoff [PB], a wholly-owned affiliate of the Balfour Beatty Group. PB is already based in the RSA and various initiatives in the energy, transport [rail] and SIP programme of the RSA government are being pursued.

Roodeplaat water treatment works, a ﬂagship plant for Tshwane completed as part of the Roodeplaat Bulk Water Supply Project, one of the most advanced water treatment facilities in SA.

Innovation and Collaboration

Bigen Africa encourages innovation within its ranks and amongst collaborators to keep finding improved solutions to development dilemmas experienced by clients. Superior

WWW.AFRICAOuTlOOKMAG.COM

101

B i g e n

Afr i c a

The company has also finalised a preliminary working relationship with a leading French-speaking consultancy, aimed primarily at joint projects development within francophone Africa. This consultancy is also already based in the RSA, which serves to reduce the normal language barriers experienced in similar partnerships. On certain large and complex projects inter-divisional factors dictate the need for executive decisions as to which division should lead a particular project and which person or external organisation should lead the customerrelationship function and/or institutional risk management. The executive fulfils these functions through the Group’s Project Integration Committee [PIC] and its Africa Committee [AFCOM]. Regional intelligence and relations are directed for the Group by those executive members responsible for the operating regions. In the same manner that Bigen Africa adheres to South African B-BBEE guidelines, it respects countries’ transformation policies, be it affirmative action, localisation or citizen empowerment, because transformation is a prerequisite for fairness and equity, stability within a political economy and new business development, including access to decision-makers and procurement responsiveness and preference. Enterprise development forms an important pillar of the company’s transformation drive in projects it embarks on and it complements its commitment to doing good while doing business.

It’s All about Strategy

Bigen Africa has developed its S-Vision 16 strategy as an overall guide for both business planning and day-to-day operations. It also formalises the company’s evolution from an engineering consultancy to an infrastructure development firm

102

that provides the full spectrum of services in engineering, management consulting and development financing and advisory services. The strategy encompasses business development, strategic partnerships, geographical expansion, corporate restructure, human capital development and financial objectives, all ultimately aimed at enabling the provision of sustainable infrastructure development in Africa. Bigen Africa aims for full capability in assisting countries to address their key emerging public policy priorities which, amongst others, include integrated human settlements, rural development, renewable energy, road and rail freight transport, operation and maintenance of existing infrastructure. Bigen is expanding its asset management, roads, rail and transport, and energy sector focus, while continuing to excel in water and sanitation, human settlement, structures, and development financing sectors.

Ground-breaking Projects in a Growing Market

The growth strategy into West Africa is spearheaded through the establishment of Bigen Africa Ghana Limited with a first office registered in Accra. The launch of Bigen Africa into Ghana in 2013 was supported strongly by engagement in local strategic partnerships with notably Jescan Construction and Lithos Corporation. Presentation of the Bigen Africa capabilities to a range of financial institutions in Accra has been very well received. A focused approach has been adopted in order to optimise investment towards establishing a sustainable revenue stream. To this end, Bigen Africa has been engaged by STX Ghana Engineering and Construction Limited to assess the

www.aFRICAoutlookmag.com

LEN DEKKER LDA initially consisted of formerly high ranking state officials who have returned to private legal practise The founding members have extended their work ethic and practical knowledge and expertise to the other members of the firm Represented some of the most prominent civil infrastructure role-players in South Africa during complicated consultations, negotiations, drafting and dispute resolution procedures Only a few law firms in South Africa truly understand the intricate nature of the various relationships between organs of state and private entities, which are governed by a unique web of laws that comprises a legal framework within which the institutions operate Successful litigation includes favourable Supreme Court of Appeal rulings relating to municipal property rates and the reinstatement of an unfairly dismissed senior municipal official.

Tel +27 12 346 8774 admin@lendekker.co.za

URBAN DYNAMICS URBAN DYNAMICS GAUTENG INC. have been instrumental in the successful implementation of many large scale housing projects, through key public and private partnerships and unique developmental processes. Our approach hinges on the principle of providing a full turnkey service, which grows a project from conceptualization to implementation; incorporating all the key role players, culminating in sustainable integrated development, supported by financial models, developmental agreements and community commitment. Urban Dynamics Gauteng Inc. received the Govan Mbeki Merit Award for the Greatest Contribution to Work Creation through Housing Projects in Gauteng Province in 2013. Tel +27 11 482 4131 Fax + 27 11 482 9959 Email hannes@urbandynamics.co.za

www.urbandynamics.co.za

i N F R a s T R U C T U R e

LEADING HOUSING DEVELOPMENT COLLECTIVELY DEVELOPING SUSTAINABLE & INTEGRATED HUMAN SETTLEMENTS

URBAN DYNAMICS GAUTENG INC. SERVICES PROVIDED: Programme Management; Project Management; Land Development; Facilitation; Urban Design; Strategic Planning; Town and Regional Planning; Land Surveying; GIS; Community Facilitation; Construction Management and Material Management; Construction of Infrastructure, and Construction of Housing. Physical Address: 37 Empire Road, Parktown West, 2193 Postal Address: P.O. Box 291803, Melville, 2109 Tel: +27 11 482 4131; Fax: +27 11 482 9959 Email: hannes@urbandynamics.co.za Website: www.urbandynamics.co.za

WWW.AFRICAOuTlOOKMAG.COM

103

B i g e n

Afr i c a

feasibility and development of an appropriate delivery model for an estimated 30 000 housing units to the armed forces in Ghana. The initiative is co-funded by the South African Department of Trade and Industry Capital Project Feasibility Programme as part of its export promotion drive. In South Africa, the company will continue to assist the government in achieving national development goals through infrastructure development projects focusing, amongst others, on roads, housing, schools and water and electricity provision. The company has many projects both locally and further afield, including programme management and support to the Department of Basic Education in the implementation of the R12 billion, SIP 13, Accelerated Schools Infrastructure Delivery Initiative (ASIDI), currently delivering on average one completed school per week and an electrification project in Ethiopia providing electricity for 100 000 rural villagers.

Secret to Delivering Infrastructure Solutions

The secret to Bigen Africa’s success is a culmination of all facets of the company: a strong history of value-add and innovation in engineering solutions over decades, which formed the foundation for its S-Vision 2016, which is an allencompassing, activist approach to delivering solutions that benefit client, community and country. This approach will increase its lead in delivering infrastructure to the continent. Partnerships feature prominently in Bigen Africa’s growth strategy and its value proposition stresses that the company integrates the entire value chain in infrastructure development through in-house capabilities and strategic partnerships. Bigen Africa aims to build, through strategic partnering, its capabilities in the renewable energy, rails, mining and

104

www.aFRICAoutlookmag.com

SA graduates AKA Bigenners team, distributed math textbooks to schools in Botswana as part of Bigen Africa’s “Doing good while Doing Business” programme.

Partnerships feature prominently in Bigen Africa’s growth strategy and its value proposition stresses that the company integrates the entire value chain in infrastructure development through in-house capabilities and strategic partnerships”

industrial, mechanical engineering and project delivery services. Besides partnering with African governments, Bigen Africa aims to extend its Africa footprint through partners in the construction industry and international partners in mining and industrial, energy, asset and revenue management, real estate, international finance and rail. At Bigen Africa’s first Partnership Conference last year, respected industry specialists conferred for this purpose.

Effective Supply Chain

Bigen Africa’s supply chain involves unique processes which ensure the effective operation of the supply management process and exceptional risk management thereof. Divisional supply chain administrators and risk officers manage risks pertaining to the supply chain in the company. With regard to procurement, quality management is stringent and involves in situ inspections of manufacturing processes, even if it means travelling outside the continent of Africa. As far as possible, local suppliers, partners and labour are utilised on project sites, however far afield, as this agrees with the company’s

Infr a s tructur e

vision of improving the quality of life of all through the development of sustainable infrastructure solutions, and its principle of “doing good while doing business”. The Bigen Africa Group is ISO 9001 (2008) certified and compliant. Bigen Africa has resolved to drive towards the international standard ISO 31000 (2009) - Integrated Risk Management.

Industry Recognition

Bigen Africa’s excellence has been recognised through numerous awards – both nationally and internationally – over the years, for achievements in sustainable growth, professional management and business excellence, and for its commitment to empowerment. Recent awards are ranked in the top five for engineering consultancies in South Africa, and ranked in the top 500 companies in South Africa. Last year, the company was awarded “mentor of the year” in the annual Council for Engineering South Africa awards. Bigen Africa mentors registered with the Engineering Council of South Africa were identified and aligned to the candidate programme and a comprehensive process of mentorship and coaching was undertaken. Tel: +27 (0) 12 842 8700 www.bigenafrica.com

www.aFRICAoutlookmag.com

105

A D B

106

A i r f i e l d

S o l u t i o n s

www.aFRICAoutlookmag.com

ADB Airfield Solutions ensure that airports around the world maintain a high standard in both construction and technology products Writers Emily Jarvis and Matt Bone Project Manager Nick Norris

www.aFRICAoutlookmag.com

107

ADB

A i rf i e l d

S o l ut i o n s

DB Airfield Solutions (Pty) Ltd is the South African registered entity of the multinational ADB Airfield Solutions, headquartered in Brussels, Belgium. The parent company manufactures airfield lighting equipment in Belgium, China, and USA. The South African based part of the company is responsible for projects and sales in sub-Saharan Africa, headquartering in Rivonia, Johannesburg. With a team of 50 direct and contract workers and revenue of R180 million, ADB have been providing vital solutions for airports for over 65 years. Nel Kotze, the Chief Operating Officer for ADB Southern Africa, explains what sets them apart from other airfield construction companies: “ADB serve a niche and specialized market with full turnkey solutions that revolve around all the

108

electrical and electronic aspects for a modern runway. Our strength lies in not only providing high quality equipment but also in offering the full project to the client providing end to end, integrated and sustainable solutions for visual guidance; this includes design and advice, project management, installation, commissioning and maintenance.” ADB have formed a strong focus on technology, quality, processes and people, powering a series of innovations ranging from individual light control and monitoring systems to advanced surface movement ground control systems; and from the first LED airfield lights to runway incursion systems. “Every aspect of our business is attuned toward innovation from ideation and execution to delivery. This is reflected in our well-defined Idea Management and Product Lifecycle Management (PLM) processes, our

www.aFRICAoutlookmag.com

strong R&D focus and efficient global supply chain,” Kotze cites. The main scope of activities is for the supply and installation of various ADB products which include Airfield Ground lighting (AGL), Control systems for Air Traffic Controllers (ATC) to control the AGL, Automated Weather Observation Systems (AWOS) for use next to runways and Instrument Landing Systems (ILS). More technical still are the surveillance systems such as surface movement radar, multilateration systems for ATC to track aircrafts en-route in conjunction with secondary radar and Terminal building equipment such as baggage handling systems, flight info displays and security equipment. “In addition to these services, we also supply electrical and power backup systems for airports, which is critical for safe and reliable airfield operations,” says Kotze.

MaJoR pRoJeCTs Cape TowN RUNway ReFURbishMeNT (aGl systems) pr o j ec t C o m p l e t e d 2 0 1 3 The ADB Airfield Ground Lighting portion is R30m which is part of the overall runway resurfacing project worth R180m done by Civil company Power Construction The client, Airports Company South Africa, while planning a new runway for Cape Town Intl Airport within the next 5 years, had to maintain its current runway to ICAO standards during this time. Cape Town is the only runway in South Africa with a CAT3 rating on its approach from the South. During the construction period the airport operated on CAT1 meaning more aircraft diversions due to inclement weather occurred. ADB was tasked with returning the status to CAT3 by June 28, 2013 which ADB successfully executed. The installation involved: Permanently installed illuminated runway closure crosses controlled from the tower. 213 new lED runway centre line lights that can be switched according to the landing direction. 180 new lED touch-down zone lights. 100 new ADB high-intensity lED runway edge light (EREl) 120 new lED taxiway centre line lights for use on the runway turnouts. 180km of new secondary cable to the lights. 54km of new primary cable in certain areas of the runway. Refurbishment of transformer manholes.

WWW.AFRICAOuTlOOKMAG.COM

109

a d b

a i R F i e l d

s o l U T i o N s

MaJoR pRoJeCTs GeoRGe RUNway displaCeMeNT aNd aUToMaTed weaTheR obseRvaTioN sysTeM ( a Gl sy st em s and aw os) R 1 1 m p ro j ec t c u rrent ly o ngo i ng The ADB Airfield Ground Lighting portion is R11m which is part of the overall runway resurfacing and displacement project worth R70m done by a civil company Concor Road and Earth Works. Due to an accident involving an Airlink aircraft overshooting the runway and ending up on a public road, ACSA, decided to move the runway longitudinally by 120m to ensure compliance of the RESA (Runway End Safety Area). The AWOS system is also being replaced with Vaisalaâ&#x20AC;&#x2122;s (Finland) latest Avimet software and sensors to measure cloud height, visibility, runway visual range (RVR), temperature, pressure, wind, solar radiation, etc. This is to ensure aviators are provided with the widest and most accurate data for safe operations. The system also populates data to the world-wide METAR system so all aviators with an interest in the current weather at George Airport has access to this. ADB is also installing red stop bar lights which are interlocked with green lead-on lights which safely controls access to the runway and prevents runway incursions. The apron floodlighting was replaced with new LED lighting panels for uniform and glare free illumination of the apron to the required ICAO lux levels

110

WWW.AFRICAOuTlOOKMAG.COM

In the last five years, ADB has emerged as a preferred AGl partner for Civil Aviation Authority of Botswana with the successful completion of four major AGl modernization projects at key international airports. These include Sir Seretse Khama International Airport (SSKIA), Maun International Airport, Kasane International Airport and Francistown International Airport. ADB has delivered AGl, signs, AGlCS systems, apron floodlighting and LED lighting, power equipment, as well as Automated Weather Observation Systems.

An Innovative Team

“Every innovation starts with a winning idea. At ADB, we realize the need to nurture ideas from our employees so we can truly realize their value and help our customers. A simple and practical Ideas Management program encourages our sales teams to present their ideas on new products or suggest

Every aspect of our business is attuned toward innovation from ideation and execution to delivery”

improvements to existing products, and highlight its potential benefits to customers. Ideas are evaluated by a cross-functional global panel of experts and those with potential are explored further, and if feasible, integrated into our product vision and roadmaps. A strong Product lifecycle Management (PlM) process forms the foundation of our product vision, design, production and delivery. Every new product we bring to the market satisfies customers’ needs in terms of performance, reliability and affordability, and corresponds to the quality we as a company have set forward.” - Nel Kotze, COO

Project Oversight

Many clients do not wish to work with a lot of subcontractors, so a single contractor is hired to manage a project and then subsequently appoints additional subcontractors,

WWW.AFRICAOuTlOOKMAG.COM

111

ADB

A i rf i e l d

S o l ut i o n s

who then coordinate the entire project. This is commonplace in African industry and ADB have made project management and oversight a key faculty. As with any project undertaken in any industry, there can always be aspects that require specialised knowledge or skills that a company may not have. ADB use such specialist subcontractors in order to get a project finished. “We are a specialist company but there are times that we need an even more specialist service, after all we are not expert in every aspect of the industry. We then sub contract a professional firm with excellent reputation to help us with this service request. But all the time ADB manages the project and all processes from start to finish to ensure our name and reputation are always maintained at the highest level by all our subcontractors,” Kotze explains.

Fluctuating Rates

With the rate of exchange between the Euro and local currencies fluctuating on a daily basis, ADB have developed a systematic approach to cover the volatile financial climate with its clients. “We negotiate a contract with clients and subcontractors that make provision for adjustment of our local currency invoice to the prevailing exchange rate. Not all customers accept this negotiation, so we organise forward cover and we can additionally attach an extra payment clause should prices vary radically.” Kotze cites, and is keen to point out that normally “our clients are happy to have this security in place with regard to the finances.”

Establishing Long Term Relationships

The key to a good business model is having strong and beneficial

112

www.aFRICAoutlookmag.com

George High-mast Project

working relationships with your suppliers and clients. ADB have such a business model and Kotze is proud of how the relationships that he has overseen has been carefully nurtured: “We are attempting to establish ourselves as the long term partner of airport authorities. We believe that a relationship based on honesty and guaranteed quality is mutually beneficial for all parties involved. We have a number of suppliers who have been working alongside us for a number of years and likewise airports who continually request our services based on outstanding previous work,” he cites.

Demand for Investment in African Airports

There is a need for greater investment in African airports to improve safety, reliability and

We believe that a relationship based on honesty and guaranteed quality is mutually beneficial for all parties involved”

availability of airside infrastructure. Projects are, however, taking many years to get off the ground due to several reasons including political change, infrastructure costs and a lack of investment in the country. The main challenges lie in convincing Governments and companies to invest greater amounts in the upkeep, expansion and renovation of the airports in order to cope with this influx. The main challenges lie in a more positive outlook connected with the rapid growth of the African continent and investment necessity has been seen in countries such as Zambia and Botswana; where Governments and foreign investors have injected much needed capital into aviation projects. South Africa will hopefully begin to see further investment based growth in the aviation industries in the coming 12 months.

WWW.AFRICAOuTlOOKMAG.COM

113

B o l l o r ĂŠ

A frica

L o gistics

Raising the Level BollorĂŠ Africa Logistics: building synergies across its network in East Africa for competitive advantage

114

of Logistics

Writer Emily Jarvis

from t h e East A frican C o ast

Project Manager Stuart Shirra

t o t h e H e art o f A frica

www.aFRICAoutlookmag.com

gistics

t has been more than 50 years since the Bolloré Group began their operations in Africa and since then, the Group grown to become the leading integrated logistics network in the continent, with subsidiaries in 55 countries, 45 in Africa. While the Bolloré Africa Logistics brand was only created in 2008, the Group’s activities were previously undertaken under various successful brands including SDV, which is a whollyowned subsidiary of the Bolloré Group. The logic behind the brand change was to unite all activities in the continent so as to create synergy in strategy, direction and operations. In East Africa, Bolloré Africa Logistics has 33 operational bases in the region and an active presence in Kenya, Uganda, Tanzania, Rwanda, Burundi, Sudan South Sudan, Ethiopia and Djibouti. With its unrivalled territorial coverage, and decades of experience and success in Africa, Bolloré Africa Logistics is today the specialist in customised industrial projects, with customers all over the world.

A leader in public-private partnerships

Bolloré Africa Logistics is also the leading operator of public-private partnerships in the port and rail sectors, with 30 public-private partnerships, including 16 container terminals, in the port, rail, inland waterway and dry port sectors. Their dual role as port operator and logistics provider informs a unique end-toend approach to develop the entire logistics corridor, from the seaboard to the heartland of the continent. Performance and efficiency of the port and inland operations are directly related. “Our corridor approach involves developing the point of entry, i.e. the Ports, as a gateway

www.aFRICAoutlookmag.com

to trade in the hinterland as well as investing in supportive infrastructure in the hinterland to enable the Port to operate as efficiently as possible,” explains Jason Reynard, the CEO of the East African region. “In East Africa, this involves optimising our network to ensure that we are able to provide the same standard of service across the region as well as additional premium services that offer additional value to our customers at every stopover along the different corridors in the region. For example, we have Inland Container Depots in Kampala and Kigali, where our customers can consolidate/ deconsolidate cargo for onward freight to South Sudan, Burundi and East DRC. In doing so, we offer our customers an alternative to the bases we have in Mombasa and Nairobi.” In Kenya specifically, Bolloré Africa Logistics was among the first companies to set up an Inland Container Depot in Mombasa, with a view to decrease congestion at the Port of Mombasa by providing a more efficient alternative for custom clearance. The ICD concept has been instrumental in increasing efficiency at the Mombasa Port, handling 61% of local imports and 43% of the total cargo inflows at Mombasa.

Strategy for Sustainable Development

The corridor approach is also a testament to the company’s commitment to contribute to the continent’s development: “Our greatest strength is our entrepreneurial spirit. The primary objective of our business is creating opportunities for trade - we are an enabler for economic development. Thus, our ability to identify opportunities for our customers and create tailor-made solutions to ensure that they can effectively and efficiently operate in new markets is

115

B o l l o r é

Afr i c a

L o g i s t i c s

a key advantage. The success of our foundation, and our current success, can be attested to this.” Underpinning this success however, is the commitment to continually invest in improvement and optimization. “We believe not only in doing things different, but also doing things the best way they can be done. Thus, Bolloré Africa Logistics is engaged in the quest for excellence,” Reynard cites. The Bolloré Group has been a member of the United Nations Global Compact since 2003. In 2011, it signed the 10:10 undertaking which sets out to reduce greenhouse gas emissions by 10%. In line with this, Bolloré Africa Logistics seeks to conduct its business in compliance with the most demanding international standards, thereby guaranteeing that its customers enjoy optimal service while safeguarding its employees and its environment. “We are a responsive company that puts the needs of its customers

first: through innovation, we widen our customers reach in the continent enabling them to pursue new markets. Through our commitment to quality and safety, we ensure that our customers achieve the greatest value, while safeguarding the sensitive environmental and social structures of these frontiers; and through responsible investment, we strive to build a sustainable impact in our operations and for the communities we work with.”

Challenges and opportunities

Obviously, poor infrastructure is a challenge for any business in Eastern Africa. A lot of time and money is spent contending with the road network; for the governments maintaining the roads, and businesses losing out on time to market. The lack of a reliable rail network also puts the region at a disadvantage and contributes to having some of the most expensive transportation costs worldwide. On

Thus, Bolloré Africa Logistics is engaged in the quest for excellence”

116

www.aFRICAoutlookmag.com

Tipper Hauliers Limited Tipper Hauliers Limited provides all aspects of international transportation and tailor made logistics solutions. The company mainly specialises in: Turnkeys projects Containerized loads Less containerized loads Break Bulks Heavy machineries Relief & emergencies supplies Tipper Hauliers Limited keeps and maintains a strict vigil on the quality check on any services it provides, from point of loading to delivery along the designated route to the loading point. The company maintains close tracking on the entire cargo movement to ensure maximum efficiency is optimised. Email tipperhauliers@africaonline.co.ke / info@tipperhauliers.com

www.tipperhauliers.com

gistics

the upside however, digitisation and consequent integration of the regional customs process, if handled properly, will shorten the time taken for clearance as well as reduce contentious issues arising from the differences in regulation between the EAC member states. The region is currently witnessing its version of an industrial revolution. The discovery of oil in Uganda and Kenya, gas in Tanzania, new investments into infrastructural developments which cuts across the region, and the growing potential of the mining industry present an opportunity for Bolloré Africa Logistics to employ its unique expertise in providing tailor-made industrial logistics solutions - a global approach tailored for Africa.

Large Scale Professional Teams

Bolloré Africa Logistics has a global workforce of 25,000 in the African

continent. Having 10% of them based in the East African region speaks to the magnitude of the East African operation. An endeavour to promote local development has seen the company invest millions in training and career development, with over 95% of their management being indigenous Africans. “We have a well-established secondment system, which allows our staff to work in countries outside their own so as to grow their level of experience while streamlining internal processes and systems. The program has proved useful in encouraging innovation, an attribute that is essential to growth in such a competitive sector,” remarks Reynard. In the last five decades, Bolloré Africa Logistics has witnessed tremendous growth. The market is getting tougher, more saturated, which only strengthens their drive to experience and excel in all the projects they undertake. “Our expertise in logistics and port

Our greatest strength is our entrepreneurial spirit. The primary objective of our business is creating opportunities” management, and our extensive investment into improvement of the facilities under our responsibility ensures Bolloré Africa Logistics remains a reliable professional, long-term partner to the authorities, as well as the ship owners, importers and exporters who rely on their efficient operation of these facilities.” Going forward, pursuing their ship-to-shore strategy remains a key growth sector for Bolloré Africa Logistics.

www.aFRICAoutlookmag.com

117

F r e ig h t w o r x

D e l i v e ring y o ur

tomorrow, today

Freightworx have risen from one man with a vision, to a multi-national logistics powerhouse Writer Matt Bone Project Manager Stuart Shirra reightworx was established in 1999 in South Africa, when a demand arose for airfreight cargo to the north of Tanzania. Having serviced the majority of other freight markets as well as numerous mines in the area, the company decided to increase its options and began to incorporate alternative means of transporting freight. Since then Freightworx has grown considerably to a stage where they now employ in excess of 100 people. Throughout the organisation, revenue has grown from US$1-

118

www.aFRICAoutlookmag.com

We are a leading logistics company that has set the standard as a supply chain and logistical solutions provider to various industriesâ&#x20AC;?

million to US$12 million. Freightworx specialises in the field of international freight, project freight and logistics on a global scale. Freightworx offers a door to door service into Africa and 450 cities in 130 countries worldwide. Raj Maharaj, the CEO of Freightworx, has seen his company grow from just one man with a vision, into one of the largest logistics companies in Sub Saharan Africa. â&#x20AC;&#x153;We are a leading logistics company that has set the standard as a supply chain and logistical solutions provider to various industries. From our humble beginnings as a one man operation, I have seen the

gistics

company, Maharaj is quick to point out that the work they do in Africa is just as important as in other continents: “We work with many countries across Africa ranging from South Africa, Burundi to Uganda and beyond. We are an African Global Logistics company and proud of that fact.” The company pride themselves on Global Trade is a complex and having the dedication to provide the challenging business where success right solution at competitive prices. depends on specialised knowledge This is what distinguishes us from our and personal contact. Freightworx competitors. We have our own offices have implemented key strategies and which are strategically situated at all the networking relationships in order to utilise local knowledge and international major trade hubs in Sub Saharan Africa. Freightworx have the use of offices contacts to offer their customers such and various Global Logistics Network a service. Although a global logistics company evolve into a one stop solution by providing export and import services, air, sea and road freight as well as offering handling, storage and packaging services as well.”

(GLN) agents throughout the world, which enables them to guarantee safe cargo handling and time sensitive freight solutions for their clients. With such an expansive and extensive global structure, Maharaj ensures the greater satisfaction of his customers. “For me, our clients are the most important aspect of our business. If our clients think we have done a bad job or have not actioned their requests, they will not work with us again. I personally ensure that our client’s requests and needs are always met and often exceeded when they use our company.”

www.aFRICAoutlookmag.com

119

F R e i G h T w o R X

A Good Year

Freightworx have enjoyed a busy 2103, which has given them a solid platform to push onwards in 2104 and they have done just that. Maharaj gives an example of just one of the various projects that they have worked on over the last 12 months: “We were asked to handle 12 000 tons of Bitumen for one of our clients. This was a very delicate job as even a single container spillage would result in a massive environmental disaster. The scope of that project also included a sea freight to Durban, Customs and Port clearance, transport to our Johannesburg warehouse, destuffing of the containers within a set time, storage and finally, the distribution to various construction sites.” Freightworx have increased their fleet of trucks from 15 to 30 during the last 12 months. Maharaj has played an instrumental part in expanding

120

Freightworx have freighted in 2013-14 in excess of: KG ,000 600

220,000 KG 205,000 KG

the company’s footprint in Africa by establishing owned and operated offices in Mozambique, Mauritius and Zimbabwe. Currently, Freightworx have offices in South Africa (Durban and Johannesburg), Kenya (Mombasa and Nairobi), Tanzania (Dar Es Salaam and Tanzania). Maharaj is currently leading the development of a state

WWW.AFRICAOuTlOOKMAG.COM

of the art 10,000 square meter warehouse with bonded facilities close to O.R. Tambo airport, Johannesburg.

The Challenges Arising

As with many companies, the economic downturn has played a big factor in recent financial problems for Africa. However, this is only one of the challenges facing Freightworx. Mining strikes and fluctuation of the local currency against the uS dollar have proved to be challenges that Maharaj has had to circumvent. Maharaj states: “A big problem has been in securing contracts to move cargo into Africa. We would like to decrease our standing time at the various borders which can end up being over 5 hours in some cases which is detrimental to our company and our clients business.” Due to the above becoming more prevalent in recent months, Maharaj has seen a rise

in clients moving from air freight to road freight to reduce cost and time in airports. Whilst the BRICS and the Eu have still not recovered from the economic slowdown, the developed nations have turned their attentions to begin strongly focusing on Africa’s natural resources and growth opportunities in mining, infrastructure and telecoms, in the hope of kick-starting their sales and revenue streams.

Planning for Further Expansion

There has been lateral movement with regards to growth in the last year for Freightworx. Maharaj is confident this growth will form the basis for a strong year ahead. “We are now experiencing a slight upward trend in terms of revenue and sales. Companies have been utilising our logistical expertise in strong numbers and we are hoping this will continue for the rest of the year.” One sector Freightworx are keen to build up this year is investing in the development of Human Resources. Maharaj wants all his employees to be trained at the same level so that if one is required to begin work in a different faculty of the company, the transition will be minimal. “I believe that workforces who are multi-disciplined and can work across a variety of different departments are invaluable assets to any company.” Expansion is definitely on the cards for Maharaj, as he looks to expand Freightworx’s African operations into the rest of Africa by means of mergers and acquisitions. The main projects currently being worked on for expansion are a new 10,000sqm warehouse, the new acquisition of a fleet of vehicles and new container handling equipment, which will help to provide new options to clients. Maharaj is also pleased to announce a string of projects Freightworx has been awarded: “We have tendered and been shortlisted for five new mining and construction projects in Africa. The project life is between 15 and 20 years, which is good news for the longevity of our company and the logistics market in general.” The next twelve months will be a strong indicator of just how far Freightworx have come in a short space of time. Maharaj is confident that a year from now the company will be market leaders who are second to none. “Our mission is to be the best freight and logistics service provider in Africa. We will strive to provide exceptional value to our customers without compromising our ethics or integrity in the pursuit of profits,” he cites, giving a clear indication of just what a personal touch means in the logistics world.

Raj Maharaj, CEO

WWW.AFRICAOuTlOOKMAG.COM

121

E l t e k

122

www.aFRICAoutlookmag.com

STRIkING The PeRFeCT

b A l A N C e

b e T w e e N

poweR people ANd The

Eltek have constantly led the way in high efficiency power electronics in Africa Writer Matt Bone Project Manager Donovan Smith

or over 40 years, Eltek have led the way in high-efficiency power electronics and energy conversion. Their headquarters are based in Norway and they have over 2400 employees in their company across 40 countries. As a global corporation and market leader, Eltek has customers in more than 100 countries across a variety of industries including telecom, rail and infrastructure, power generation, power distribution and solar energy. Helping customers save energy and money while reducing their environmental impact, Eltek are always looking for new and innovative ways to further this foundation. Bob Hurley, Regional President of Eltek in Europe, Middle East and Africa (EMEA), spoke about what makes them a market leader. “For me it is our technology that makes us a market leader, especially in the telecommunications power industry. We were the first power manufacturer to come up with a High Efficiency (HE) rectifier, and we changed the market standard by at least 4-5 per cent, in moving from non-HE to HE technology. Also I think our product density from a technology viewpoint is a market leader. We currently have the most dense power supply on the market, which is very important to us and the operators who use it.”

Regional and local

Eltek are very keen to press upon the fact they are not just a European company who has opened offices in Africa. Although their headquarters are in Europe, their approach to business on the African continent is very much central to their operations. “We have offices in Kenya, Nigeria and Cairo, we also have a major repair facility in Johannesburg, so that we can

123

e l T e k

m-p inFrasTruCTure

-P Infrastructure limited (MPI) is a full Turnkey Infrastructure provider that offers hybrid and DC power solutions to the telecommunication industry and have been at the forefront of supporting operators in their power OPEX reduction drive.

This objective played a large part in establishing a strategic partnership with Eltek - a global power conversion specialist that develops markets and provides support for energy systems to industries and industrial applications across West Africa. MPI believes that a combination of Eltek’s leading technology product suite and its local footprint will further strengthen its resolve to meet client requirements within the West African sub-region. Tel +234 807 9993843 (NG) +233 302 544303 (GH) email infoghana@mpinfrastructure.com

www.mpinfrastructure.com maintain and repair our systems in the continent, which is a big benefit to us and the client because it can reduce waiting times for the clients and lower costs in logistics.” Eltek pride themselves on being very focused on the African markets. By looking at market potential, products and in depth understanding of cultural factors, Hurley believes the company is well placed to understand the needs and requirements of the MEA market. “When you have spent a long period of time in the country analysing the trends and forces in the market, you can begin to piece together where the gaps in the market are. For example if you see that clients are looking for products that reduce run time in their generators, you can begin to focus on that. It is really about listening to the end user; after all, they will be the ones who purchase your product.”

124

Reliance and Solution

One of the biggest challenges and current problems found in the mobile telecommunication industry is diesel theft. As all generators run off diesel, it has become a highly sought-after commodity that is expensive and not often available in large quantities to the general public. “Diesel theft has become a big problem for companies whose mobile base stations run off generators. On average 30 per cent of diesel used by companies is stolen from them, it has a huge impact on cost for everyone. As you know, diesel is not cheap and with prices always looking likely to rise, more and more companies are looking for ways to become less reliant on diesel. In short, there are always challenges for companies in industries that rely on fuel so much; it just varies from country to country.”

WWW.AFRICAOuTlOOKMAG.COM

eneRSyS® EnerSys® is the global leader in stored energy solutions for industrial applications. We complement our extensive line of motive power, reserve power and specialty products with a full range of integrated services and systems with sales and service locations throughout the world. Headquartered in the uSA , with regional headquarters in Europe and Asia, EnerSys employs over nine thousand people and operates 30 manufacturing and assembly facilities worldwide. This vast infrastructure and over 100 years of battery experience positions EnerSys at the forefront of both manufacturing capabilities and new product development. EnerSys has wide experience in telecom backup solutions. Tel +971 (0) 4 339 2234

www.enersys-emea.com

OLO

Powerful Solutions for Hybrid Applications Extreme temperatures. Remote locations. Increasing power demands. Introducing the PowerSafe® SBS® EON Technology® batteries for

Even more capacity, flexibility and OPEX savings Ideal for hybrid telecom Specifically developed for harsh environments and cyclic applications Significant OPEX savings in both float and off-grid applications Our new 2V batteries offer up to 50% extra energy density compared to standard VRLA batteries United Arab Emirates | Hawker Energy Products Ltd Dubai | PO Box 37420 | Dubai | UAE Tel: +971 (0) 4 339 2234 | Fax:+971 (0) 4 339 2236

www.enersys-emea.com

Battech (Pty) Ltd – trading as “Enersys-Powertech” PO Box 3992 | Edenvale | 1610 | RSA 140 North Reef Road | Elandsfontein Office Tel: +27 11 776 4300

www.aFRICAoutlookmag.com

125

e l T e k

This is where Eltek can step in and offer those very companies solutions for this diesel reliance. With their new hybrid technology, they can offer a hybrid system that can save the consumer over 60 per cent on their diesel running costs. This is done by having a system that enables a generator currently running 24 hours a day down to only using diesel for 8 hours a day. Hurley is very proud of this new technology and the substantial benefits it not only offers the end user but the world. “With such a huge amount of diesel being spent on running generators, this new High Efficiency Hybrid technology will save the end user an average of 66 per cent on their costs; by simply bringing down the number of hours the generators are running from 24 down to 8 or less. This smaller runtime brings its own benefits in terms of longevity of the generator and also reduces the amount of servicing and maintenance it would require. It becomes a threefold benefit when you look at the bigger picture. On top of that, the amount of CO₂ that is saved by switching to alternative hybrid technology is also a key factor for the global climate.”

Supply and Demand

Eltek employ a mixture of both local and international suppliers including in Europe and China. Most of the equipment required is made there and shipped down into the continent. However, it can take 4-6 weeks of manufacturing and then an additional 10 weeks to get the products to the various countries in Africa. logistically speaking it can be quite time consuming for both Eltek and the end user. Mr Hurley explains that Eltek are currently working with their suppliers to lower this lead time. “What we try to do is work with suppliers and utilise

126

existing stocks that they have got locally. By locally I mean companies who have stocks in Dubai, France and Southern Africa, which enables us to service Northern and Central Africa quicker. We can then reduce the customers lead time by weeks with this approach which saves them money and underlines our dedication to the customer.” It is this customer centric approach to business that builds the foundation of what Eltek do. Customers are increasingly putting trust in companies who offer solutions when problems arise instead of just ignoring the issue. Eltek are such a company: “We always try to offer the client options with regards to our products and lead times. Our reputation is always there for people to see, we are a company that delivers on our word and our focus is always on the customers.” Eltek work closely with partners who

WWW.AFRICAOuTlOOKMAG.COM

produce bespoke cabinets for their hybrid systems, by maintaining close working relationships they ensure everyone benefits from the work. By using local workforce as well as external companies, Eltek can ensure clients have their networks and base stations up and running quicker and begin earning revenue in a shorter space of time.

Future Focus

With these values at the core of Eltek’s operating structure, it is easy to see how they have reached the impressive milestone of selling their 1 millionth High Efficiency Power Conversion unit. This technology has given an option to customers which not only contributes to cost savings for the operators, but also a substantial reduction in carbon footprint in excess of 900,000 tons. To put this into a more understandable context, here are the figures for just

A S O F F E B . 20 14 W E H A V E E N A B l E D SAVinGS EQuIVAlENT OF: The annual electricity of:

101 000 homeS

The annual CO2 emission of:

186 000 cARS The price of:

750 000 solar panels

enouGh TO POWER 10 750 BASE STATIONS on pure solar energy what a benefit the HE modules have been so far: As of February 2014 O1,246 KWh (Kilowatt hours) in energy savings 149 million uSD in energy cost savings 900,000 tons of CO2 reduction 2013 has provided Eltek with a solid growth and Hurley is confident that in the next 12 months he will see the company grow even stronger: “I think in the next year, we will see a 30 per cent growth in Africa along with product penetration in the market.” Eltek’s stock is indeed on the rise and it is in no small part thanks to the company’s customer centric philosophy. “We have four key values here at Eltek: Customer Centric, Culturally Sensitive, Technologically Ambitious and Aggressively Competitive. These four make up what we do, our

customers are our lifeblood, without them we have no business, but before that we have to understand the African markets and countries we are operating in, in order to understand the cultural significance of our product,” Hurley adds “Without the best technology our customers would go elsewhere. The

competitive spirit of the Eltek family ensures that we are always on; passionate about leading the way in the industry and about delivering premium value to our customers. We strongly believe that this is the prefect recipe for success and the solid growth we are experiencing is proof of that.”

WWW.AFRICAOuTlOOKMAG.COM

127

T e c h n o

128

Brain

www.aFRICAoutlookmag.com

The

bR AINS To sUCCeed Techno Brain seek to establish a prominent global position and strong brand credibility as an IT solution provider Writer Emily Jarvis Project Manager Donovan Smith

WWW.AFRICAOuTlOOKMAG.COM

129

T e c h n o

Br a i n

echno Brain is a 15 year old company operating in 19 countries, with origins in Tanzania and Daresalam, boasting an impressive 1400 employees in post across their offices. The company now have offices across the world including in the USA, UK and a Developing Centre in Hyderabad, India and Dubai. Manoj Shanker, the company’s CEO, has been involved in Techno Brain’s entire journey, and has more recently been in charge of securing an outstanding status for quality on a global scale. As Mr Shanker states: “Africa is a huge continent and we are an African company at our heart, who deliver local solutions at a local cost. However, we want to be known for our excellence worldwide.”

From Training to Solutions

Each year, Techno Brain train close to 15,000 people across the African continent. “We take IT Education very seriously. Our training ranges from basic literacy to advanced programming, networking, database, project management, security and much more.” Techno Brain’s biggest challenge has been to secure employees with the desired skill set required for the jobs they have available. “Across the entire group of our 1400 employees, over 1200 of our staff are African. Since last year we grew by 125% and to cater for this kind of growth we need more people, specifically those with an excellent skill set.” The company’s biggest challenge has been to find these readymade skills

Understanding the African Market

Mr Shanker identified that the IT and Telecoms industry in Africa has not matured in the same way as the Western world. “There are two areas that Africa are still lagging behind, one is development of local content and software. The second is the development of business applications. These are the two areas that Techno Brain have focussed on and built credibility in the market where we are able to develop and deploy complex business applications in both the public, private and non profit sectors and bring a value to the customer by deploying local resources; delivering local solutions at a local cost.” In the last 5 years, there has been a tremendous amount of interest in the continent in relation to the technology industries. With more investments and more need for IT, many companies are choosing to set up here as Shanker identifies: “The market shows promise that it will continue to grow for many years, and I see Africa as the next growth destination in the world.”

130

www.aFRICAoutlookmag.com

Serenic Serenic and Techno Brain Bring Accounting Solutions to NGOs in Africa Serenic Software and Techno Brain are partners in the effort to bring comprehensive fund accounting solutions to NGOs in Africa. Serenic Navigator, powered by Microsoft Dynamics NAV, ensures transparency, accountability and efficiency across the entire organization. With Serenic Navigator, you get full control of your financial data, eliminating surprises and reducing audit and compliance risks. Serenic Navigator offers the unique functionality NGOs require to ensure accurate financial reporting to funders, donors, managers and other stakeholders. Mothers2Mothers Implements Serenic Navigator Business Situation M2M needed a financial system with true fund accounting that could handle cost allocation, grant management and consolidation of all data from various countries using multiple currencies.

We want to attract talent from all over the world, but also invest in people within the continent, so that in the long term we have people ready for our future”

Solution M2M’s implementation of Serenic Navigator streamlined financial reporting that merges financial transactions from all sites and enables uniform reporting across the four different countries in which they operate. African Wildlife Foundation Chooses Serenic Navigator Business Situation AWF needed an efficient way to manage approximately 70 grants spread across different programs spanning nine geographical regions. Solution With Serenic Navigator, AWF met the need for a distributed control process without hiring lots of overhead finance people for each field office. Tel +255 689198198 Email marketing@serenic.com

www.technobraingroup.com

OLO

Manoj Shanker, Group CEO, Techno Brain

in Africa as Shanker highlights: “We want to attract talent from all over the world, but also invest in people within the continent, so that in the long term we have people ready for our future.” The Governments in Africa are yet to implement a strategy to develop and encourage local companies to invest in IT, in terms of building applications and solutions in Africa unlike other continents in the world. In order to overcome this issue, the company are taking major steps to establish a Techno Brain Academy in Kenya. “The objective of the Academy is to attract the best people from the continent and the globe and train them not only in technology, but in human resources, marketing and other key areas. This is a long term solution to our skills shortage and key to the company’s future success. We are trying to achieve this centre of excellence that can train thousands of people,” Shanker explains “our raw materials

www.aFRICAoutlookmag.com

131

T e c h n o

Br a i n

Comztek Africa

ince 1995 Comztek Africa has established itself as a leading distributor of technology and communications products and solutions throughout the African continent. Today, as a member of the Westcon Group, Comztek Africa boasts a regional network across Southern and East Africa, with offices in Namibia, Zambia, Kenya and Mauritius and a base in Johannesburg for the SADC team, offering services to 26 countries. Each region boasts a team of highly skilled people who work closely with its reseller base to support: Consumer, Software, Networking, Mobility, Storage, Security and Retail specific solutions across a myriad of vendor and brand partners.

Microsoft Country Partner Of the Year 2013

1st Floor, Eden Square, Westlands, Nairobi Tel +254 20 367 3450 Email Jamesk@comztek.com

www.comztek.com

are our people, and there is no short answer to getting this workforce.” Techno Brain hire hundreds of graduates every year, taking them through a mentoring programme, certifying them and placing the new employees in post across different countries. “This is producing a very good result, even if it takes a lot of time and money, but from my experience, it is clear that there are a considerable number of talented people in the continent, and this is the best way to produce skilled people.”

“We enjoy a special relationship with Microsoft”

More recently, the company have branched into Business Process Outsourcing in order to compete with the likes of India and the Philippines. They now have a BPO centre in Kenya, Uganda and Malawi. Techno Brain’s largest sector continues to be in IT

132

solutions, where they have several industrial-specific solutions, with the biggest being the identification business. “Today, Techno Brain is in a unique position where we offer driving licences and national ID production. We are the first company on the African continent to build our own automated fingerprint identification system.” Their other services include a Government consulting business, whereby Techno Brain provide tax administration solutions for customs and revenue authorities across the region. Shanker is proud to stand behind a company that have developed 11 of their own IP products including MEsure, a project Monitoring and Evaluation system which helps the Government to monitor and track their projects, and an enterprise and human resource management software certified by Microsoft. InspireHRM is a Microsoft Certified ISV Product. It is a complete Human Resource Management and

www.aFRICAoutlookmag.com

Payroll Management System which can be integrated seamlessly with financial software like MS Dynamics Nav and other ERP packages to manage the Human Resource and Payroll of an organisation in an efficient manner. Also, they have developed an airport revenue management system, which has already been deployed in four airports across Africa. Shanker spoke in detail about the company’s relationship with Microsoft: “We enjoy a special relationship with Microsoft. We are their largest partner in Sub Saharan Africa. For the last four years, we have won partner of the year with Microsoft in the continent. We have a lot of products and solutions that operate on the Microsoft platform.” Other important partners include Oracle, SAP and also work with Cisco. Techno Brain are predominantly a software centric company, who use these partners to develop their solutions using their platforms.

OLO

Comztek sells Microsoft software

Full Packaged Products

For more information visit WWW.COMZTEK.COM

Volume License Programmes

Cloud Offering

Licensing Skills & Services

advert 032014.indd 1 TwoHP_MS of the most notable projects Techno Brain have completed are: Currently implementing a large country wide financial system for the Government of Uganda: an Integrated Financial Management System for the local Government. Deploying financial and revenue management solutions at each local county, which will help the local counties to account for the money they receive from the Central Treasury, and also collect revenue more effectively using automated tools. Developed Border Control solutions for the Government of Malawi in Lilongwe and this will help to secure the borders and track people’s movement by taking their photographs/ biometrics/identify documents country-wide, helping with the identity and authentication of travel documents.

Lync

Africa Authorised Distributor of Choice

2014/03/05 03:58:24 PM

Steps to Achieve a CMMI Level 5 Status

The Governments in Africa are yet to form a strategy to develop and encourage IT investment, and to choose Techno Brain for their IT solutions as Shanker cites: “Being an African company, we have the issues of the global perception of us. High-tech companies have not yet established a brand credibility that makes a world class company. Our objective is to take Techno Brain

to the next level, to achieve global recognition, and we have taken several steps to improve systems and processes. We are CMMI level 3 and are targeting CMMI Level 5. There are only a handful of companies worldwide that have achieved this. This would secure our visibility worldwide in terms of our quality and standard of service,” Shanker believes. Boasting a US$65 million turnover in 2013, Techno Brain are looking at a substantial US$100 million turnover for this year.

www.aFRICAoutlookmag.com

133

Eat o n

T o w e rs

Towering Ahead

134

www.aFRICAoutlookmag.com

Africa Outlook talks to Alan Harper, the Co-founder and CEO of African telecoms infrastructure firm Eaton Towers, which owns and manages telecom infrastructure across the continent Writer Emily Jarvis Project Manager Ben Weaver

rican telecoms infrastructure firm Eaton Towers is continuing to expand its mobile operations and is one of a number of specialist players to launch services in Africa in recent years. When we last spoke to Eaton Towers, they had plans to build 250 transmitter towers in 2013, increasing their African portfolio by a sixth. They put this growth down to the rapid increase in users of the Internet. The original plans were to build about 100 towers in Uganda, 100 in South Africa and 50 in Ghana, and the project is still ongoing. Their customers include Airtel, Vodafone, South Africa’s MTN and Orange. “The internet boom is one of the key drivers - more people are getting online as smartphone prices fall and telecom operators improve their networks. Mobile operators are building new base stations for two reasons – one is obviously coverage, and there is still some coverage expansion going on, but increasingly it is for adding capacity to the networks,” says Alan Harper, Eaton Towers’ Co-founder and CEO.

The Importance of a Mobile Data Service

A lack of extensive fixed-line infrastructure in most African countries means mobile networks provide the main means for people to access the internet, he adds: “That’s right. With fixed-line penetration being so low in so many countries most of the data usage is on the mobile networks and therefore whether it is 3G, or now we are seeing some LTE development in some markets, new base stations are needed to meet that capacity growth. That is benefiting Eaton because that is adding to new base station installations on both our existing towers and it is one of the driving forces for the new tower construction as well.”

www.aFRICAoutlookmag.com

135

e a T o N

T o w e R s

Internet use in Sub-Saharan Africa will rise to 24.7 percent of the population by 2020 from 10.5 percent in 2010, according to Euromonitor International. “Why would a mobile operator approach us?” Harper asks. “Firstly, building and maintaining mobile towers in Africa is typically more expensive than in other regions because of high security costs and a shortage of electricity and infrastructure – Africa’s main challenges. It adds to the complexity and expense. Secondly, many operators are increasingly looking at splitting costs, which they can do via towersharing deals – we offer that and so it is increasingly popular to have specialist firms such as Eaton build the towers, which can then host multiple operators at the same site. We’re certainly looking to expand our tower-sharing business.” Eaton Towers is benefiting from operator plans to roll out lTE (longTerm Evolution, high-speed networks), and Harper says further expansion is on the cards: “Historically we operate in those countries so we have towers already. So, we are working with existing customers in existing markets. We are building towers and selling space on those towers in countries like Ghana, uganda and South Africa where we’ll be putting in the new towers as an expansion to our established business in those markets. And it’ll be with existing customers, those we already have signed up on other towers. It is really a growth and consolidation in the markets we are already focused in. “That’s not to say we don’t eye new territory and as we expand into other markets over time we will be building in new countries as well, obviously. But it doesn’t really make sense to build just a handful of towers in new countries. You really look to try to build on top of a portfolio of existing towers in an established market.” Is expansion into new African nations likely further down the road? Yes, says Harper. “We are always looking at

136

WWW.AFRICAOuTlOOKMAG.COM

TeLemiSiS® - siTepro®

The internet boom is one of the key drivers - more people are getting online as smartphone prices fall and telecom operators improve their networks”

SitePro® field equipment is designed and manufactured to the highest quality standards and is proven to be highly reliable, enabling continuous delivery of management information in the harshest environments. Automatic selection of communications to ensure information is always available and alarms are delivered without delay. Advanced autonomous data processing and reporting increases operational efficiency and provides vital business intelligence. Flexibility to cover all your needs from ultra-small repeater sites to full sized switch sites. Wide range of sensors and interfaces to meet all your site monitoring needs. World-class support systems and ongoing upgrades keeping your systems modern and relevant. Tel +44 3333 660088 email sales@telemisis.com

www.telemisis.com/eaton

opportunities in East and West Africa – in the West there are three or four countries that we are working on. There are opportunities too in North Africa. Up until now, most of the tower activity has been Sub-Saharan Africa but there are new opportunities emerging all over. We have a pipeline we are working on; I can’t really go into the specifics but it is basically Pan-Africa.” Capital International Private Equity Funds (CIPEF) is Eaton’s majority shareholder, while London-based private equity group Development Partners International and Eaton’s management team also owns stakes. The business is well funded and well-placed to expand.

A Company with no Distractions

“I think [firstly] we are very focused on what we do,” says Harper. “We are a tower company for Africa. It is the only thing we do. We are not distracted by going into other continents or other markets outside of Africa or in other

Alan Harper, co-founder & CEO

lines of business apart from being a tower company.” Within this, Eaton Towers have built up an organisation with a very experienced group of people that have been in the mobile business in Africa for many years. “We know the countries, the people, the organisations and we know how business gets done in those markets. Importantly, we are well funded and that is significant because this is a very capital intensive game, there is a lot of money that needs to go into it. We have the required equity and debt funding already in place so that when we see opportunities for expansion either in existing or new markets we are able to go into those new opportunities. We don’t have to go out and raise funds for a new idea or opportunity.” To learn more about Eaton Towers and its expansion visit www.eatontowers.com.

www.aFRICAoutlookmag.com

137

N e S T o I l

P l C

N e S To I l d e l I v e R

RESULTS NoT ReASoNS 138

WWW.AFRICAOuTlOOKMAG.COM

urc

Nestoil has demonstrated project excellence in all of its ventures, employing a team of highly skilled and goal-driven professionals to deliver first class solutions to industry problems Writer Emily Jarvis Project Manager Sheridan Halls

estoil Plc was incorporated in Nigeria in 1991 for the provision of Engineering, Procurement and Construction (EPC) services to the energy and oil and gas industry. Since then, Nestoil has grown to become the leading indigenous EPC provider for major IOCs (International Oil Companies) in Sub-Saharan Africa for National Petroleum Company (NNPC), Shell, Exxon Mobil, Chevron and Total. Employing highly dedicated, skilled and goal-driven professionals and using unique and innovative technology, Nestoil Plc delivers excellent, first class and cost effective solutions to industry problems. Nestoil’s policy is to use the best resources, with stringent supervision that assures safe working conditions and excellent quality. The company are also committed to the optimisation of local content in all aspects of their business and the growth of their workforce and host communities. Nestoil offer onshore and offshore services including Civil Works, Dredging, Manifold and Flowstation, River Crossing, Pipeline Construction. Indeed, Nestoil has earned its reputation as a company with world class project execution capacity during the past 23 years of operation in the Nigerian Oil and Gas industry. Nestoil has invested heavily in the development of its human and material capacity. In terms of equipment and facilities, Nestoil is second to none. Sitting on several hectares of land, their fabrication yard in the Industrial Area at Abuloma Port Harcourt is among the top three best yards in Nigeria, sitting on several hectares of land. Nestoil’s strength lies in providing a complete project package; from

initial planning through to design, procurement, construction and installation of new oil process facilities, start up operations and maintenance to perhaps outages/ shutdowns. They develop projects from the concept stage through to implementation.

“We are truly indigenous and proudly Nigerian”

With communication network and contact offices spread nationally and internationally, Nestoil’s vision is to become an international oil and gas service company that provides services of international standards. With a mission to create value in the form of innovative, cost effective EPC solutions deriving from technical leadership, quality service and client partnerships, it is little wonder than Nestoil are committed to retaining their reputation for integrity. The activities of Nestoil are centred on the objective of becoming a first class Nigerian EPC Company with international posture. The company already provides these services for major-industry players in Sub-Saharan Africa, retaining a prestigious position among other indigenous businesses in the Nigerian oil and gas sector. Ernest Nnaemeka Azudialu, the current CEO, is driven to optimise the value created for clients by deploying a unique combination of highly skilled, goal driven professionals and cutting edge technology, whilst still embracing the local content policies ingrained in all aspects of our business activities. With the benefit of its pedigree as a multifaceted oil and gas services company, Nestoil is vigorously perusing a programme of acquisition of oil block, including oil wells that are ready for production. This is done through Nestoil’s sister company Gobowen E&P Limited.

www.aFRICAoutlookmag.com

139

N e s T o i l

p l C

“Quality, Health, Safety and

aTlas CopCo

Environment is a top priority”

By ensuring that QHSE (Quality, Health, Safety and Environment) remains a top priority for the management of each employee, in addition to maintaining compliance with all applicable laws and regulations within their area of operation, Nestoil continue to meet environmental targets and initiatives. The company have adopted these health and safety measures to ensure that they achieve best practice when it comes to preventing an accident. Any activities that are found to be unsafe, unhealthy or insecure with negative impact or potential harm are stopped immediately and remain stopped until the necessary corrections are in place. With their Quality System meeting the ISO 9001:2008 award, Nestoil strive

Serving the oil and Gas industry

We are proud of our multicultural and multinational landscape of professional team players and highly motivated employees. Nestoil is a global company for all people”

We provide reliable equipment for many challenging applications along the entire oil and Gas value chain We know our business – and we know yours. When we work with our customers, we have one goal in mind: sustainable productivity. From the well all the way to the downstream, Atlas Copco provides reliable equipment for the industry’s entire application range. Our unique global service presence provides local assistance for customer applications with parts and service, as well as comprehensive Customer Support Plans.

We are close to our customers We have an established structure of Oil and Gas competence centers that can design special products in line with customer specifications. We have experience with all relevant international standards. Our equipment is designed, manufactured and tested to comply with ISO 1217 regulations; our equipment is built with API specifications in mind. We can include DNV crashframes for offshore deployment, corrosionproof products for marine environments, as well as ATEXcertified compressors operating in offshore areas. Rounding out this offering are our state-of-the-art control and monitoring systems which ensure optimum performance, easier field follow-up via internet, satellite or mobile networks. your contact in nigeria: Atlas Copco Nigeria ltd. Bourdillon Street 1A, Ikoyi, lagos Tel +234 (0) 817 234 9415 email robert.koeck@ng.atlascopco.com

www.atlascopco.com

140

WWW.AFRICAOuTlOOKMAG.COM

N e s T o i l

p l C

ihc meRWeDe IHC Merwede is the global market leader for efficient dredging solutions and offers amongst others: ihc beaver® dredgers www.ihcbeaverdredgers.com The IHC Beaver® is well known for its robust construction, reliable operation and excellent performance. With more than 50 years’ experience, IHC Beaver® cutter suction dredgers incorporate the latest technological innovations and highly technical engineering. Without doubt, they offer even better performance and the lowest cost per cubic meter in comparison with any other cutter suction dredger on the market. ihc easydredgeTm www.easydredge.com

to constantly review and revise their policies to promote a higher standard across all company operations.

“Nothing less than the best”

Nestoil pride themselves on being a global company for all people with a welcome desire to contribute towards making the business the best it can be. “We are proud of our multi-cultural and multi-national landscape of professional team players and highly motivated employees. Nestoil is a global company for all people.” The company’s first major project was awarded in 1998 by Shell (SPDC), the Edjeba Sewage Treatment Plant in Warri. The project was executed successfully and today the plant is still in active use at the SPDC Edjeba complex. It received an award from Shell for excellence in

142

quality and safety. This achievement was a significant landmark in the life of the company and a boost to the national economy. Since then, Nestoil’s reputation as a local company with world class project execution has secured them multimillion dollar projects. Nestoil has demonstrated that it is a market leader in project management, design and construction management of a new build and upgrade and modification projects for oil and gas production facilities. The company has a proven track record and capability in the procurement and installation of new oil processing facilities. Additionally, the business also renders consultancy and project management services to smaller companies in the industry as part of its local content development initiative.

WWW.AFRICAOuTlOOKMAG.COM

The Dutch dredging knowledge and experience is unrivalled worldwide. using this knowledge IHC Merwede presents the easydredgeTM. A range of affordable, cost efficient, heavy load trailing suction hopper dredgers with quality add-ons to match your wishes now or in the future. With its sophisticated design, standardized components and short delivery time the easydredgeTM is a great start or addition to any dredging fleet. ihc Life-cycle support www.ihcps.com IHC Merwede customers rely on the unrivalled level of commitment that is offered to them through dedicated and comprehensive life-cycle support services. This helps to maximize the equipment’s availability and the return on investment, and therefore reduces the total cost of ownership. Tel +31 184 41 15 55 email info@ihcmerwede.com

www.ihcmerwede.com

Reliable partner for eﬃcient dredging solutions

Innovative vessels

Advanced equipment

Life-cycle support

IHC Merwede is the world’s number one shipbuilder for the dredging, deep sea and alluvial mining industries offering unrivalled expertise and vast experience in these fields, accumulated over four centuries. IHC Merwede has been active on the African continent for decades and have supplied many dredgers to various clients, varying from trailing suction hopper dredgers to cutter suction dredgers. This is reflected in the standard series IHC Beaver® cutter suction dredgers as well as in the new easydredge™ range of standard trailing suction hopper dredgers. Both are dredging tools that provide high efficiency and reliable production on a wide variety of dredging projects. This is ensured by providing life-cycle support with our local support office in Africa. IHC Merwede P.O. Box 204 3360 AE Sliedrecht The Netherlands T +31 184 41 15 55 F +31 184 41 18 84 info@ihcmerwede.com www.ihcmerwede.com

d I e S e l

e l e C T R I C

S e R v I C e S

GeNeRaTioN leadeRs IN CRITICAl PoweR SolUTIoNS DES specialises in the design and manufacture of diesel and gas fuelled generating sets that are helping power South Africa Writer Matt Bone Project Manager Nick Norris iesel Electric Services (DES) have gone from strength to strength since its humble beginnings in 1993 and the company has built on a legacy of excellence, experience and commitment. This wealth of expertise has enabled DES to become the market leader in the critical power industry in South Africa. DES offers customers

144

WWW.AFRICAOuTlOOKMAG.COM

We are looking at offering turnkey solutions for these countries with a simple approachâ&#x20AC;?

a complete solutions package. DES specialises in the design and manufacture of diesel and gas fuelled generating sets, lV distribution boards, static and rotary uPSâ&#x20AC;&#x2122;s, Data centre racks and cooling, MV switchgear, solar and hybrid technologies, and associated products and services to suit the needs of practically any organisation. Richard Baxter, Sales Manager of DES is quick to point out that

urc

it is the solutions they offer to customers that have really propelled DES to the forefront of the industry: “By offering a customer a solution to their critical power requirement and not just a piece of kit or a product, we are able to establish a long term, mutually beneficial partnership with them. Our customer relationships are so important to us and that’s why we’ve invested so heavily in establishing undoubtedly one of the best service organisations around.” The company relies on a strong set of values at the centre of all its operating procedures. “The ingredients contributing to the making of the finest products include affordable business solutions, industry leading brands, excellent service, short lead times, solid relationships and attention to detail.”

Shelter from the Storm

During the power crisis of 2008, (which saw the collapse of the National Power Grid), the business grew rapidly. “To a certain extent our business in South Africa was shielded from the effects of the world recession through the various soccer world cup projects, the Gautrain projects etc.” When South Africa was awarded the 2010 FIFA World Cup, many companies in a variety of industries saw a surge in their workloads and subsequently profit margins during the construction and manufacturing stages. However, Baxter says that straight after it seems the phones stopped ringing: “It was quickly realised that the game had changed, and a new game plan had to be developed.” After the SA power crisis companies began springing up in the industry looking to take a slice of the business. What was traditionally a relatively small competitor base, quickly grew and the fight for business was on. This was not the only stiff competition Baxter and DES faced. Cheaper Asian products began to trickle into the market and some customers began to favour these imports over local companies because of the lower prices. Baxter, on the other hand, believes that many customers have become more discerning and are more cautious about what they are buying and the service levels offered. “Customers are quickly realising that they are spending more in the long run than if they had bought our reputable products and services in the first place.” What Diesel Electric Services offers is not just a top quality product, they offer support, servicing,

www.aFRICAoutlookmag.com

145

D i e s e l

E l e ctr i c

S e r v i c e s

Mecc Alte World-class Synchronous Alternators for the African market There are six main reasons why we’re a world-leading producer and supplier in our market sector: We only make one kind of product. This means that we’re always totally focused on producing high quality synchronous alternators Our company is totally independent. That’s why we never

maintenance and they are always available on the phone to talk to should any problem arise.

compete with any of our customers in the end market We believe in the power of

Expansion is King

Diesel Electric Services are not about to sit back and rest on their laurels though. Strong expansion plans have been put into place and DES is currently active in numerous countries including Nigeria, Ghana, Zambia and Angola, where Baxter is confident the DES brand and focussed market approach can really make a mark. “We are looking at offering turnkey solutions for these countries with a simple approach, simple best-practise engineering and quality products and services, with a strong balance sheet and resources; we have the ability to finance our own projects, thus avoiding costly interest charges on loans, etc.” With DES looking to gain a strong foothold in emerging markets, expansion is at the forefront of DES’s current strategy. Baxter is always looking at potential opportunities in countries where DES’s solutions are increasingly becoming a priority. The Democratic Republic of Congo (DRC) is one such country. The

146

www.aFRICAoutlookmag.com

partnerships. Consequently we consistently aim to be the most reliable partner for companies working in the energy field

We are very confident in our own abilities and reputation to proudly showcase any of our services and products in the media and in public”

We do it all. From the design and personalisation of high quality synchronous alternators right through to solutions to technical problems and after-sales assistance We’re strategically focused. We offer a versatile range from 1 – 3000kVA, from portable alternators to machines for industrial use We do everything ourselves. We have complete control over our sales and distribution and absolute control over all the components we use Tel +44 (0) 1572 771160 Email info@meccalte.co.uk

www.meccalte.com

D i e s e l

E l e ctr i c

S e r v i c e s

Volvo Penta

olvo Penta is a world-leading supplier of engines and complete power systems for marine and industrial applications. All our efforts strive to give our customers the right product, with the right qualities. We work with a deep commitment to quality, safety and environmental care.

DES’s involvement in SKA will show that we are not just about diesel and electric solutions but that we offer a whole host of world class industry leading products”

mining industry there has boomed over the last 10 years, but careful consideration of all the associated business risks involved is necessary. One thing is certain - DES is looking at the opportunities from a short, medium and long term perspective. “You cannot go into a country, supply them a product, make money and then walk away. It is bad for business relationships and it is bad for the industry.”

DES and the SKA MeerKAT One of the most complex high profile projects DES have worked on to date is the SKA MeerKAT installation. DES have been awarded the contract for the design, manufacture, delivery, installation and commissioning of the Rotary Unit Power Supply solution for the site from the 33kV incomer to the 400V distribution boards at the SKA MeerKAT.

148

The SKA MeerKAT project is a radio telescope currently under construction in the Northern Cape of South Africa. It will be the largest and most sensitive radio telescope in the Southern Hemisphere until the Square Kilometre Array is completed around 2024. The telescope will be used for research into cosmic magnetism, galactic evolution, and the large-scale structure of the cosmos, dark matter and the nature of transient radio sources. It will also serve as a technology demonstrator for South Africa’s bid to host the Square Kilometre Array. Baxter is very proud of the company for being selected to work on such a prestigious project. “This is a massive project not just for us, but for Southern Africa as a whole. DES’s involvement in SKA will show that we are not just about diesel and electric solutions but that we offer a whole host of world class industry leading products and services as an integrated package.”

www.aFRICAoutlookmag.com

Our range of high quality products with built-in reliability keeps the power production running. Volvo Penta engines are designed for the most demanding commercial operations thinkable: powering heavy-duty trucks, all types of vessels at sea and of course gen sets. When you add long service intervals, quick service and low oil volume – you have a winning equation. The low cost of ownership with Volvo Penta diesel power comes from high efficiency engines that offer exceptional reliability for maximum uptime. Easy installation and worldwide support are also reasons why world leading generator set producers choose Volvo Penta. Volvo Penta Southern Africa PO Box 26005 East Rand 1462 Corner Saligna & Jet Park Road Tel +27 11 842 5000 Fax +27 866 817 147

www.volvopenta.com

What Diesel Electric Services offers is not just a top quality product, we offer support, servicing and maintenance”

Off-road 105-565 kW Power Generation 85-770 kVA

UPTIME IN PRACTICE

Power generation Construction Materials handling Mining/Quarrying Stationary Agricultural Forestry

Today, uptime is critical for all power generation installations. Hospitals, airports, concert events and other operations depend on secured and continuous power supply. That’s why Volvo Penta engines are reliable and safe – and a perfect match, whatever your specific application may be. By meeting present and future environmental legislation they are also your investment in a more sustainable tomorrow.

POWERING YOUR BUSINESS www.volvopenta.com www.volvopenta.se

Proud to be Seen

In the past DES stayed away from excessive marketing and media presence. Now they are much more assertive in their approach and want all to know just how impressive their reputation is. “We are very confident in our own abilities and reputation to proudly showcase any of our services and products in the media and in public,” explains Baxter, who is pleased with how the

company is now pushing its media campaigns across several different mediums. With this kind of media savvy, a well-structured management team and a strong set of core values that have repeat business and customer satisfaction ingrained, Baxter believes that DES will ensure that its name remains synonymous with market leading innovation and service.

WWW.AFRICAOuTlOOKMAG.COM

149

A frican

En e rg y

R e s o urc e s

CALCULATED COAL MINING

150

www.aFRICAoutlookmag.com

ining

frican Energy Resources Ltd (AFR) is a mining and energy development company based in Perth, Australia, who began life as a company in Zambia looking for Uranium. They also have main offices in Gaborone (Botswana), Lusaka (Zambia) and a registered office in Guernsey. The Company own three large coal projects in Botswana which collectively contain over 6 billion tonnes of thermal coal. Dave Edwards, Director at African Energy Resources Botswana explains how uniquely positioned AFR is in the Botswana Coal and Energy industry: “The company is fairly unique in Botswana as the other companies in the coal market have not fully investigated the transport and power generation options. We have developed a close relationship with the authorities to attempt to fulfil a need for power in the Southern African context.”

A Gap in the Market

African Energy Resources (AFR) Director Dave Edwards believes that this year will be a positive one for the company Writer Matt Bone Project Manager James Mitchell

Southern Africa is currently experiencing a severe power shortage and this problem is not being addressed fast enough, and Edwards is very much aware that AFR is in a strong position to offer a power solution: “We have been approached by various parties to develop a power station for the region, and we are looking at that now as a very urgent project. Interest was high last year and we expect to go to tender very soon.” Botswana is geographically very well placed to service Southern Africa’s coal power market needs. The country’s central location in Southern Africa, gives it a strategic advantage over other countries with strong coal mining projects. “Botswana’s location in Southern Africa and the strong GDP and

economy of country, [Botswana has the highest credit rating in Africa], have enabled us to become a strong contender in the coal and power industry,” says Edwards.

The Long Hard Road

AFR have worked very hard to convince the Botswana Government of their bona-fides and have invested large sums into proving the feasibility of their projects. “There was a flurry of speculative coal prospectors which saw the Government placing a moratorium on new prospects until a Coal Roadmap Strategy was finalised. This was done and Government are now supportive of AFR’s efforts,” Edwards cites. Private companies and investors are looking to invest their money into local companies, but they have wanted to see a much quicker return on their money and have become very risk adverse in the recent months. Power projects such as coal mining are very big projects with budget requirements of US$800-900 million and although coal mining in Botswana is one of the lower risk investment opportunities, the projects are time consuming and profits do generally take a little longer to come back to investors.

Demand for Coal

With the cost of coal production quite low in Botswana, several countries in Asia, especially India and China, have been buying up the coal en mass in order to fuel their power plants. “There is a massive demand for coal from China and India, due to the many power plants currently being built in those countries,” explains Edwards; however it is not all positive though as he went on to say “The profit made on such bulk buying from abroad is affected by transport costs to these countries. Supplying the coal to Asia requires a very large

www.aFRICAoutlookmag.com

151

Afr i c a n

En e rg y

R e s o urc e s

logistics operation, as the coal will travel by rail, sea and road before it gets to its destination several thousand miles away. This eats into margins very heavily.”

Projects and Positives

In 2010, African Energy Resources discovered the Sese coal deposit in Eastern Botswana. The company immediately recognised the potential to develop multiple projects from a single, colossal resource. Total resources at Sese now stand at 2.65 billion tonnes, of which over 625 million tonnes are in the Measured Resource category, sufficient for projects spanning several decades. The Company is currently developing the Sese Integrated Power Project, with an initial 300MW power station scheduled to commence generation in January 2016, and the Sese Export Project to supply thermal coal to Asia.

152

A joint development agreement has been executed between AFR and ACWA Power International to jointly develop one or more 300MW or larger power stations at the 2.5 BT Sese Coal and Power Project. The 2.4BT Mmamabula West Project is a recent acquisition which is being assessed through a feasibility study for an initial 4Mtpa underground export coal mining operation. Finally, the 1.3BT Mmamantswe Project, which lies less than 20km from the South African border, is being assessed as a source of coal and power for the South African market.

Proactive Year Ahead

African Energy Resources has been cautious in its approach to business in the last few years with Edwards overseeing a “carefully calculated” approach to their projects. “We have had to be very careful with

www.aFRICAoutlookmag.com

Gondwana Ventures

ondwana Ventures are Exploration Consultants and Contractors, based in Francistown, Botswana since 1994. Gondwana Ventures were contracted by African Energy Resources to assist with their Uranium Exploration Project in North Eastern Botswana. During this project Gondwana Ventures identified the potential for an extensive coal resource. As a result the focus of Exploration activities shifted and Gondwana Ventures conducted the successful coal exploration programme. Their involvement with the Sese coal project is the latest contribution by Gondwana Ventures to successful exploration projects in Botswana, including the discovery of 5 kimberlites and Mupane Gold Mine. Tel +267 2402431 Email jerry@gondwana-ventures.com

spend and budget on our projects, as have many other companies worldwide due to the financial crisis globally. That does not mean we have skimped on quality or desire, we have just not thrown money into a bottomless pit, we have analysed and carefully calculated everything that has been required to give our clients the best value for their money,” he remarks. Edwards is confident that the year ahead will prove to be very different from the last 12 months. “I think that the year ahead will be a radical year. I think at least one of our power projects will really bear substantial fruit and potentially even two if things go to plan. We have done all the ground work and now we are waiting for the long hours we have put in to come good,” affirmed Edwards, who believes this year will be a positive one for the company.

WWW.AFRICAOuTlOOKMAG.COM

153

H y sp e c

M ining

S e r v ic e s

High Expectations b e l o w t h e G r o un d

154

www.aFRICAoutlookmag.com

mining

Hyspec Mining Services have been rolling out an intensive training programme, to further improve their team of dedicated professionals Writer Emily Jarvis Project Manager James Mitchell

yspec Mining Services have been serving the mining community for over eighteen years from seven African countries. The business was founded in 1996 as a hydraulic services provider in Ghana, where they were pioneers in the mining industry, being the first company to offer fully managed on-site workshops at individual mine locations. The Hyspec Mining Services are now head quartered in Australia, and have a focus on providing hydraulic, fuelling and lubrication equipment and services to the mining and exploration industry across Africa. Hyspec has a large purchasing and logistics centre in Perth, Western Australia, with operational central warehouses in Ghana, Guinea, Mali, Sierra Leone, Burkina Faso, Tanzania and Zambia. All regional offices are registered under the Hyspec name and are fully registered local companies each with its own Operations Manager. The company further operates a “Managed Workshop” model in four other countries. Hyspec provides services from over fifty wholly owned mine-site based workshops across their countries of operation, and gives around the clock services to mining contractors, drilling companies and mine support businesses operating at the mine sites. Hyspec are the market leader in its field and is an integral partner to the mining companies and their contractors, assisting in their constant struggle to reduce the downtime of mining production equipment. The company provides replacement hydraulic hose assemblies and associated parts 24/7 from over 50 mine-site based workshops and stores to cater for the wide range of heavy duty mining and drilling equipment operating on mine sites.

The products and services supplied by Hyspec in Africa to the mining industry are crutial, demonstrably reduce downtime, and position Hyspec as a welcome partner in any new mining project. With this in mind, it is the company’s mission to establish itself as an integral part of the mining industry throughout Africa. “Providing only the highest quality hydraulic hoses and services, Hyspec offers cost effective products whilst ensuring a return on investment and a growth rate consistent with current management guidelines,” the website states. Hyspec strives to ensure that all of its customers’ expectations are exceeded in all transactions, and to ensure close relations with its customers, Hyspec operates its business as close as possible to its customers’ facilities. As part of its portfolio of complete end to end services, Hyspec also stocks and supplies adaptors, lubrication and pumping equipment, dispensing and handling parts, industrial hoses, valves, pneumatics and pressure gauges, as well as monitoring/ metering equipment. The company constantly strive for excellence in all aspects of their operation; this includes keeping high part stocks at each workshop, which have been assembled on site, along with experienced local staff working as an integral part of the mining team. In addition, inspection and fitting services, coupled with failure analysis systems, are provided to customers with the objective of reducing the customers’ equipment downtime. Hyspec also maintains hydraulic and lubrication components on service skids, fuel bowsers and workshop lubrication facilities. The workshop and stores are supported by in-country warehouses to ensure adequate stocks of equipment are always available. Expatriate management is available in each country to work closely with

www.aFRICAoutlookmag.comwww.aFRICAoutlookmag.com

155

h y s p e C

M i N i N G

s e R v i C e s

dangers of hydraulics and safety rules when dealing with hydraulic hoses and systems. The second phase of the training consists in providing participants Intensified Training Programme with detailed knowledge of Hyspec products and services: hose Further to its overwhelming success and substantial increase in the number assemblies, adaptors, valves, hose protection, refrigeration hoses and of workshops it operates, Hyspec Mining Services has decided to intensify fittings, introduction to MSE products (Graco Hydraulic and Banlaw Fast its training program and to allocate Fuelling solutions, filtration systems). a team of dedicated professionals to Phase three of the training, mainly develop and enhance it. for hose technicians, supervisors, and Rey Bautista, who has been Project Manager with Hyspec for eleven years, project managers, focuses on the operation and maintenance of Hose was appointed Technical Training Assembly equipment. Phase four is Manager in August 2012. His role was to develop Hyspec’s existing technical about hose assembly procedures, hose inspections, hose installation and training program, to harmonise it routing techniques, failure recognition across the group, and to ensure that and prevention. everyone, from apprentice hose This training has already been rolled technician to Operations Manager, out in Sierra leone, Tanzania, Zambia receives a high quality technical and Mali, and is currently being rolled training on Hyspec products and out in Guinea, Ghana and Burkina Faso. services, in relation with their skills, expertise, and with the demands of their position. The first phase of this technical training is to provide all participants with knowledge about the history of Hyspec, the nature of Hyspec’s business, its clients and the hydraulic hose industry. It also aims at providing the program trainees with tools to understand Hyspec clients’ hydraulic hose related issues, such as the effect of hose failure on their operations (production downtime, spillage, health and safety issues, environmental impact); and to help them understand how Hyspec can provide a solution to these problems by reducing downtime and helping customers avoid unnecessary costs. This part of the training also ensures everyone in the group is provided with a basic knowledge and understanding of key topics such as measurement, units and tools, thread identification, hydraulics and pneumatics, the customers in order to ensure that their needs are met in a timely manner and services delivered and constantly improved upon as required.

156

WWW.AFRICAOuTlOOKMAG.COM

BuTCHer paull & Calder

utcher Paull & Calder combines over 30 years of experience with youthful exuberance to create a professional, hard working, experienced and reliable law firm. We are pleased to have been able to assist Hyspec Mining Services to restructure its business in Australia and also provide it with legal services associated with conducting its operations in Africa including: Ghana Guinea Cote D’Ivoire Mali Tanzania Zambia Sierra leone Burkina Faso Tel +61 8 9323 3900 email info@bpclawyers.com

www.bpclawyers.com

L A W Y E R S

OUR SERVICES INCLUDE: Mergers & Acquisitions

Butcher Paull & Calder is proud to provide legal support to Hyspec Mining Services operations in Africa and Australia

www.bpclawyers.com

Contract Advice Litigation & Court Superannuation & Trusts Corporations & Business Law

Supply & Distribution Agreements

Butcher Paull & Calder Level 8, 231 Adelaide Terrace GPO BOX S1354 Perth WA 6000 Tel: 08 9323 3900 / + 61 8 9323 3900 Fax: 08 9323 3999 / + 61 8 9323 3999 Email: info@bpclawyers.com

A more advanced training was implemented throughout 2013, for Hyspec employees who have successfully completed the first phase of this technical training. This training includes subjects such as Compliance to MDG41, Advance Routing Techniques (re-engineering of hose installations), Database and Traceability, detailed MSE training such as installation and maintenance of auto-lube systems. Technical trainers have also been identified in each country, and will follow a train the trainer course, to ensure that continuous training is provided to all Hyspec employees in each country. “The objective of these trainings is to ensure that all Hyspec staff and managers on the operational side understand and have an excellent command of the technical aspects of our business,” explains Rey Bautista, Hyspec Mining Services

Taxation & Revenue

Business Succession, Planning & Funding Advice on United Nations Corruption Protocols

Hyspec strives to ensure that all of its customers’ expectations are exceeded in all transactions, and to ensure close relations with its customers”

Technical Training Manager. “ These trainings also provide everyone, from hose technician apprentice to Operations Manager, with the opportunity to share their ideas with the rest of the group on how we can improve our services to our customers and enhance the training further.” Part of Hyspec’s remit is to contribute positively to the communities and environments in which they work. Hyspec provide a safe, comfortable and professional work environment, adhering to strict health and safety policies. With their new training well and truly underway, the business is managed with honesty and integrity, in order to ensure the development of long term partnerships with their customers and suppliers. Hyspec recognise that profitability is essential to improving client service.

www.aFRICAoutlookmag.com

157

S h a w

R i v e r

M angan e s e

Managing

Manganese Mining Shaw River Ltd. have recently pushed forward with their flagship Otjozondu project in Namibia, where excellent logistics means a competitive investment environment Writer Emily Jarvis Project Manager James Mitchell

158

haw River Manganese Limited is an Australian based mineral exploration and development company focussing on manganese project opportunities internationally. Its flagship project is located in Namibia, in the south west of Africa. With a current focus on exploration, defining and increasing their mineral resource base and project studies, the company have recently developed an open-cut mining operation at its Otjozondu (Otjo) Project in Namibia. From its appearance on the stock exchange in late 2006, initially with all assets held in Western Australia, Shaw River now have a shareholder relationship with Atlas Iron, who

www.aFRICAoutlookmag.com

have a 53.45 per cent interest share in Shaw River Manganese Limited. Peter Benjamin, Managing Director of Shaw River, talked to Africa Outlook about their flagship “Otjozondu Project” and his understanding of the mining and manganese industry.

Why Africa?

With a complex Government approvals process in Australia, projects can be expensive and take years to complete. Benjamin says that investment is only coming into the industry for very large projects: “Those with an excellent return on investment and a good margin, often in excess of 100 per cent, are the projects that attract attention and investment in the current investment environment.”

mining

There are sometimes very good resource investment opportunities in Africa because of a combination of Greenfields (new), better availability of capital, lower labour and operating costs and relatively quick timetables for the approval process. “However, in some parts of Africa, often they don’t have sufficient infrastructure in place to support resource operations, especially for bulk minerals such as coal, iron ore and of course, manganese,” explains Benjamin. However, in regards to our Otjozondu Project, Namibia is an exception to this rule. Whilst the country has a relatively small population of around 2.2 million people it has very good logistics in place as a consequence of the British and German construction history. They have a very good rail and road system and most importantly a transparent and fair rule of law as Benjamin remarks: “It is one of the best countries in Africa to do business; they have a good mining law system [similar to Australia] which makes it quite attractive and secure for tenements and projects.” Another of the great things about doing business in Namibia is that that they currently enjoy a competitive labour environment compared to other parts of the world, in particular Australia. For example, a project of the same size and quality in Australia can be built for significantly less in Southern Africa, as Benjamin emphasises: “You can get terrific savings in capital costs as well as reasonable operating costs, compared with a similar sized project in other parts of the world.” In addition, there can be considerable time savings for obtaining the necessary resource approvals in Southern Africa for Resource projects.

A Logistical Advantage

More than 90 per cent of Shaw River’s effort and expenditure has been invested into their flagship manganese

project, the Otjozondu (Otjo) Project, in Namibia. Otjo lies to the North East of the capital Windhoek and the company is determined to take the project into production. The site was originally mined in World War One by the Germans, where it’s been reported that they produced more than half a million tonnes of manganese at 44 per cent manganese grade. Boasting a fruitful offering, Benjamin is confident that Otjo will be a competitive investment: “We are fortunate in that Otjo is only 550 kilometres from the coast, with a good road system in place, and the site is 146 kilometres away from the nearest rail network. This means the material can be transported to the coast by either rail or by road to the container or bulk facilities port at Walvis Bay.” Shaw River are in an excellent position with Otjo, because many other South African manganese mines are considerably further away from the nearest ports, meaning Otjo is very competitive from a logistical perspective. “Around 65 per cent of our cost base is in logistics, therefore in order to be competitive, the logistics base has to be good,” Benjamin added.

Those with an excellent return on investment and a good margin, often in excess of 100 per cent, are the projects that attract attention and investment in the current investment environment”

A Cyclical Industry

The mining industry always has been and always will be a cyclical industry. With prices for most commodities being low at the moment, Benjamin revealed it is a challenging environment to be working in. This being said, the Otjo project seeks to buck this trend: “The manganese market is really driven by steel production, 10 per cent of the manganese produced in the world, approximately 20.3 million tonnes goes into manufacturing manganese metal but almost 90 per cent goes into making manganese alloy for steel making. The Otjo project will produce a silico-manganese product, which is used to make long steel for construction, which is ideal for developing nations, such as China.” The demand for manganese is strongest in China, with the country importing more than 50 per cent of its manganese, Benjamin recognises there is huge possibility for their client base.

The Otjozondu Project

During 2013 Shaw River has continued to build confidence in key parameters of the Otjo Project including those deposits with higher grades and metallurgical response. Typically, the next step would be further investigation of project parameters such as manganese grade, geological continuity and metallurgical yield within a Pre-Feasibility Study (PFS). Shaw River has been reviewing operational plans that aim to improve their understanding of key operational assumptions whilst advancing the Otjo Project in the most cost effective manner. Considering the time and cost taken to complete a PFS, and the reasons overleaf, Shaw River has decided to obtain this information by commencing Blast Hole surface drilling in an area, targeting the basis of a start-up inventory. This initial area forms a subset of broader, staged plan to subsequently mine and process.

www.aFRICAoutlookmag.com

159

S H A W

R I V E R

M A N G A N E S E

This approach is considered appropriate because: Otjo manganese mineralisation occurs at surface or under shallow (<5 metres) Kalahari sands. The areas initially chosen, contain Mineral Resources delineated during the 12,060 metre resource drilling program completed in December, 2012 and reported according to JORC, 2004. Extensive rock chip sampling results indicates that material of suitable manganese grade (>25% Mn) “occurs at surface”, with the potential to be mined in future, subject to drilling results. There is existing infrastructure and owned equipment such as a Terrex crusher, screens, conveyors, a fines JIG, including an electricity allocation, water, workforce, and mining lease, with all approvals in place. Considerations for future mining could be via shallow open pit and the manganese processed using existing well established technology, such as, a JIG plant. Two companies are operating nearby and producing manganese product using similar operational practices, one for 10+ years and who is producing >120-140Kt pa of manganese product from the same geological Otjo manganese field, albeit from small, unconnected mine leases representing about 10 percent of the area of the Otjo field. Shaw River Managing Director Peter Benjamin said that “the Shaw River decision to expedite the company’s transition from explorer to project developer was a very encouraging development.”

Local Suppliers

In both Africa and Australia, attracting and obtaining high quality personnel

160

WWW.AFRICAOUTLOOKMAG.COM

In the minerals industry, the best resource is the people, and with good people you can achieve anything”

and meeting their salary expectations can be a challenge. “There is a reasonable amount of concern in Australia in regards to employment. There are quite a few mining projects that are being put on hold or shelved indeﬁnitely, so it is challenging to attract the investment for resource projects, and in turn, securing the right personnel to do the job,” Benjamin states. Benjamin has a strong preference to use local suppliers where that service exists in Namibia. “I have sourced great people, and they provide great service and are cost-competitive. Every developing nation wants to provide jobs for its nation in order to become more developed. I have two native Namibian geologists in my team; they are both excellent and they have a good technical knowledge.” In addition to sourcing a local team, Shaw River is preparing a CSR Programme (Community Social Responsibility) to help improve aspects of the local communities.

Secret to Success

The secret to success for Shaw River comes from a true understanding what opportunities there are for manganese and developing a strategy around those opportunities; clearly scoping out exactly what you need to do in terms of cost, time and any future gain. “You must develop a plan. Unless you have a great team of people who want to work together, coordinate and communicate towards a common goal, and are experts in their ﬁeld of endeavours, then you can do almost anything. In the minerals industry, the best resource is the people, and with good people you can achieve anything.”

WWW.AFRICAOUTLOOKMAG.COM

161

l e w C o R

oNe-hUNdRed

162

WWW.AFRICAOuTlOOKMAG.COM

peRCeNT As uranium and gold prices saw a decrease in 2013, lewcor explain how they are overcoming the challenges of Namibian mining Writer Emily Jarvis Project Manager James Mitchell

WWW.AFRICAOuTlOOKMAG.COM

ewcor are a mining and civil services company, founded in the 1980s by Mr C.J lewis. As a family owned and run business, Africa Outlook spoke to eldest son Helmuth lewis, one of the Directors at lewcor along with his younger brother. The company started as a building contractor, evolving into a fullyfledged civil services company supplying products such as pipelines, building roads and other such services. The change to establishing themselves in the mining service came as a result of the amount of work they were able to successfully secure through civil services contracts, as Helmuth lewis explains: “There were a significant number of construction contractors, whereas the civil services sector was more of a niche back then. Moving into this sector was the ideal move for us.” lewcor also laid almost 2000 km of fibre optic cable for the local telecom, and was a fore runner in the design and specs written with Telecom to get Namibia up to standard in the optic technology. Additionally they built several large earth dams in rural areas where water was not easy to come by and when it comes to mining, they have their own fleet of mobile crushers and screening plants. All of this combined with its own fleet of small to large transport, means that lewcor are able to offer a wide variety of expertise in the civil and mining industries. lewcor continue to keep a hand in the construction business as well as mining. “A significant number of these developments are residential houses we build to supply housing to our local mine workers. We have large scale property developments in a variety of towns and cities,” lewis cites. Boasting an impressive fleet size of around 300 pieces of large mining and construction equipment, lewcor are the biggest privately-owned mining

163

l e w C o R

company operating in Namibia in terms of the amount of equipment they have available. They work with over 750 people, and 250 sub-contractors across their current project portfolio; which consists of several mines including drilling, blasting and bulk stripping at the Navachab gold mine, a manganese mine in the exploration stages and a new copper mine that is set to become one of the flagship mines in Namibia, opening at the end of April this year. lewcor also have a transport division consisting of a fleet of highway trucks that transport materials and equipment to local mines. “Among our own portfolio of mines, we manage a site that mines semi-precious stones and selling to China. This is an open pit situated near Okahandja, mining a mineral blue

chalcedony, which is one of the largest mining equipment in Namibia, the mines of its sort in the world. We provide internationally recognised brands full mining services at his site.” ATlAS Copco and Caterpillar have local distribution networks, which is Choosing the Right Equipment where most of lewcor’s equipment comes from. “All our mining machines lewcor has three key focus areas: Firstly, to carry out quality works whilst come from international sites such as America, India and Sweden. maintaining reputable standards, ATlAS Copco and Caterpillar have secondly to have a staff of fully a dealership here which is helpful. trained and qualified technicians and The decision to use these recognised lastly, maintaining a high standard brands is what stands us above several of machinery. It is the last point that other civil service mining companies,” lewis drew our attention to: “We always ensure to give our workers the Lewis affirmed. Moreover, being lightest equipment and best machinery a small company allows them to effectively maintain the machinery in order to complete their work they have, making the mining process efficiently. This is what has got us to as productive as possible. where we are now.” Although limited in the brand The Fluctuating Nature of choice for earthmoving and

Commodity Prices

We are proud to be able to help smaller towns in any way we can. In turn, feeding back into the economy as the mine keeps the local town economies thriving”

uranium and gold commodity prices saw a decrease in 2013 and this was one of lewcor’s major challenges, coupled with the uS dollar increase for the price of gold in Namibia as lewis further explains: “This increase has meant we have been caught up in high operating costs. Both of these factors make it difficult to correct the price we charge for mining so that we make a good return.” The majority of mining sites in Namibia are uranium mines; however there is currently only one gold mine - with one other starting up - in the country that has, because of costs, been scaled down for the time being. “These issues aside, we have secured contracts for the next 3-5 years with the majority of our explorations. Our sale of semi-precious stones to the Chinese market remains a secure investment for the next 3 to 4 years,” adds lewis.

Mining Operations Training Centre

When it comes to training, lewcor have seen a skills shortage across the mining sector; and in 2013, the idea to

164

WWW.AFRICAOuTlOOKMAG.COM

build their own training centre was born. “As a third world country, we struggle to secure a very local workforce, but we strive to change this in the near future. We want Namibians who really know the mining sector and market well. As the demand for good operators isn’t available at the moment, we decided to build a training centre. We have already acquired accredited trainers and are in the process of construction,” Lewis remarks. The new centre in Namibia promises to improve the local workforce, whilst up-skilling the industry. MOTC will be a state of the art centre, with 20 to 30 people a month put through the training programme on a constant basis. With the help of the Government, this will solve a lot of our staff hiring issues.” In addition to providing employment, Lewcor abide by their CSR in projects such as constructing around 40 residential houses for their workers in towns near to their sites of operation, soccer team sponsorships and by supplying Namibian schools with computers and air conditioning. “We are proud to be able to help smaller towns in any way we can. In turn, feeding back into the economy as the mine keeps the local town economies thriving,” Lewis exclaimed.

Long Term Possibilities

Due to the substantial size of Lewcor’s fleet, the company are best suited for the larger kinds of mining operations. “This plays a huge role in the criteria we look for when thinking of expanding, as we then have to seek out larger mining sites that may be further afield. Then, we have to get our equipment to these mines which can take over a year in some cases,” Lewis stated. Advantageously, most of the neighbouring countries to Namibia pay in US dollars, which as previously discussed is currently quite high against the Namibian dollar. “Our long term plan may be looking into expanding into South Africa, Zambia, Zimbabwe and Botswana markets. In contrast, the training centre and Namibian projects will be our short term focus.” Lewcor hope these short term plans will place them in good stead to take on bigger projects and contracts in the long term. With the physical presence of a management team at each site, Lewcor are able to track company strengths and weaknesses on a day to day basis. Furthermore, equipment is maintained to a high standard which improves the staff working environment and eliminates a significant number of issues at their sites of operation.

www.aFRICAoutlookmag.com

165

h I l l C R e S T

P R I v A T e

h o S P I T A l

healing The New FACe oF

illcrest Private Hospital is committed to nurturing an environment of health and healing through engaging relationships with patients, staff, doctors, the community, and beyond. Nestled in the leafy suburb of Hillcrest, KwaZulu-Natal, Hillcrest Private Hospital provides quality health care driven by a strong, customer-centric focus. The hospital opened on the 1st July 2011 and is a new, fresh, inviting environment equipped with the latest medical instruments and facilities. The establishment boasts an extensive

166

WWW.AFRICAOuTlOOKMAG.COM

Integral to their philosophy of providing quality health care solutions is their 3Cs motto: Customer, Care and Comfortâ&#x20AC;?

range of top medical facilities and offerings designed to meet the growing needs of the community and with another facility currently being built, the hospital continues to provide quality health care solutions with a dedicated team of doctors and nurses. From a day clinic to eight operating theatres, Hillcrest Private Hospital provides patients with a wide array of medical facilities staffed by professional, friendly, and approachable personnel who share the vision of moving beyond health care in both service delivery and customer relations. The staff at Hillcrest Private

With a new hospital on the horizon, Hillcrest Private Hospital and their team are driven by a strong, customer centric focus Writer Emily Jarvis Project Manager Eddie Clinton

Hospital aim to deliver a fresh and comfortable hospital experience while adhering to international standards of quality care. Integral to their philosophy of providing quality health care solutions is their 3Cs motto: Customer, Care and Comfort. Hillcrest Private Hospitalâ&#x20AC;&#x2122;s unique geographical positioning allows patients and visitors the convenience of a world-class medical facility set in peaceful, tranquil natural surroundings. They are the only private hospital within a 40 kilometre area. Easily accessible from the N3, M13, and central Hillcrest roads, Hillcrest Private Hospital provides an escape from

the hustle and bustle of city-based hospitals, allowing patients to breathe in the serene surroundings while receiving top-quality medical care.

Think hospitality not just hospital and experience a new face of caringâ&#x20AC;?

Customer-Centric Service

The hospitals customer-centric service philosophy means that Hillcrest strive to provide their customers with quality medical care, coupled with a dedication to service delivery excellence. Hillcrest Private Hospital proposes a new lease on the existing model, a revamp in expectations and a transformation of service delivery. From check-in to checkout they believe in delivering a

WWW.AFRICAOuTlOOKMAG.COM

167

h i l l C R e s T

p R i v a T e

h o s p i T a l

family-focused hospital experience that is as comfortable and stress-free as possible. This approach extends from the doorman that welcomes you, to the professional and caring medical team. Designed to complement and blend with its natural, tranquil surroundings, the facility delivers top-quality, convenient care in a modern, safe and fresh environment that emphasises both health and healing. Beyond the hospital’s structure and equipment lies an attitude of excellence that radiates from management through to staff. They have a team of highly skilled professionals that are dedicated to clinical excellence; staff are trained and nurtured to go that extra mile, to deliver that special something that makes all the difference as their website states: “Think hospitality not just hospital and experience a new face of caring.” Designed with customer comfort in mind, the unique ward configuration at Hillcrest ranges from en suite semi-private (2, 3 or 4 beds) and private, to premier Executive Suites – apartment-style rooms that provide patients with an added level of luxury and convenience. All wards are equipped with modern electric beds, 22” HD televisions and Wi-Fi, allowing for optimal patient comfort and safety. The hospital’s location removed from the CBD allows both patients and visitors to experience the natural calm of nature in an environment free of noise and distractions. Additionally, the golf cart park and ride is an innovative idea that provides transport back to your car.

Home Comforts

The hospital’s 200-bed capacity allows staff to give patients added attention, care and comfort. These extra comforts take Hillcrest Private Hospital from good to great in their

168

WWW.AFRICAOuTlOOKMAG.COM

T-sYsTems buiLDinG ouR nATion ThRouGh TechnoLoGicAL innoVATion The Healthcare industry is a highly specialised and demanding one. An industry where there is little room for error, where innovation is king, and where quality of service trumps all. It is against this backdrop that the T-Systems team has developed a range of highly specialised healthcare technology solutions to meet the express business needs and unique challenges facing healthcare professionals and service providers. We understand that your organisation has to tow a fine line between quality healthcare, profitable business, regulations and compliance. TechnoLoGy ThAT WoRKS By deploying a healthcare management solution from T-Systems you are deploying a solution that meets the needs of a myriad of audiences, including government, healthcare professionals, patients, financial service providers and medical aid organisations. Our solutions cater for medical and clinical environments such as … Nursing Pathways Radiology Outpatient Surgery Medication laboratories Emergency Intensive Care They also include departmental or practice management modalities such as: Gynaecology Paediatrics Cardiology Gastroenterology Nephrology Neurology Ear-nose-throat Dermatology Dentistry Electronic Consultation Statistics and Reports to Authorities Tel +27 11 254 7400|+27 21 974 3000

www.t-systems.co.za

H i l l cr e s t

Pr i v a t e

H o s p i t a l

Alcon

lobally, through the merger of Novartis and Alcon, uniting the strengths of Alcon, CIBA VISION and Novartis Ophthalmics into one eye care business, Alcon has become the second largest division of Novartis. With these collective resources and scale, Alcon now offers the widest spectrum of eye care products in surgical, pharmaceutical and vision care across 180 markets and runs operations in 75 countries. Alcon South Africa, in turn, successfully services the South African market as well as 22 English speaking countries in Africa and prides itself in being an employer of choice, investing in people, customers, the industry and the country. Tel +27 11 840 2300

www.alcon.com

We provide a state of the art facility with the latest diagnostic and treatment technology to allow our medical professionals to work effectivelyâ&#x20AC;?

170

www.aFRICAoutlookmag.com

quest to provide patients with a relaxing, convenient and professional medical experience. Their website reinforces this value: “At Hillcrest Private Hospital, we provide a state of the art facility with the latest diagnostic and treatment technology to allow our medical professionals to work effectively.” Skills and high-tech tools allow staff to deliver a level of care that meet and exceed their patients’ health needs. From the hospitals eight state-of-the-art theatres and comprehensive ICU facilities, to an impressive IT infrastructure, the staff and systems allow patients to benefit from cutting-edge technology coupled with a comfortable and inviting hospital experience. The hospital has a 24 hour casualty, maternity ward, paediatric ward, women’s health unit, IOPC unit, gastrointestinal unit, and retail pharmacy. Among the other facilities

is a Radiology Department that offers a full range of services including MRI, CAT scans, mammography, bone density and general scanning and each theatre is equipped with specialised air cleaning systems and all the modern tools and equipment required to perform surgery. Hillcrest have also applied for a license for cardiac facilities and spinal and stroke rehabilitation facilities, in addition to seeking further beds. Hillcrest has a customer-centric service philosophy, which is stated on their website: “We do our best to provide our patients with quality medical care together with the best service possible. During your stay, we will do our utmost to ensure that you feel comfortable and have everything you need for a rapid recovery.” With a new hospital expected to be completed in July this year, Hillcrest are on track for a healthy long-term future.

www.aFRICAoutlookmag.com

171

G o k a l s - La b o r e x

Medicine Men o f A ccra

Gokals-Laborex have seen their pharmaceutical stock rise thanks to a keen understanding of their markets Writer Matt Bone Project Manager Eddie Clinton

172

www.aFRICAoutlookmag.com

car

ince they began operating in 2008, Gokals-Laborex have seen their joint venture blossom. By ensuring a strong combination of a global presence with local industry knowledge and expertise, they have become the premier pharmaceutical distributor in Ghana. Mahesh Gokaldas, Managing Director of Gokals-Laborex, explains just what the company can offer the Ghanaian public: “We distribute and promote pharmaceuticals to the mainstream market and medical facilities ranging from everyday medicines to high end branded products. We specialise in these toend branded goods and do not distribute generic products, so you know when you buy from us it is always the best quality pharmaceuticals available.” Gokaldas’ vision for the company when it began was to grow a global company, and through the partnership with French company Laborex, he has begun to realise that potential. “Laborex had been looking for a company to join forces with in Ghana for two years and approached me to work alongside them. I felt it was a wise and beneficial choice to join hands with someone who was already in the global markets. Once that happened we began to gain more contracts. We quickly grew from having about 10 different suppliers to now having over 15 suppliers who give us such a vast portfolio of pharmaceuticals, which we can in turn offer to our clients.”

A Brand Name in Pharmaceuticals

Gokals-Laborex currently have 145 staff on their books, including 90 medical representatives who work very closely with medical facilities and hospitals, to promote the latest advancements in medicine that could

benefit their patients. Gokaldas is very proud of the relationship his company has with local hospitals and is keen to ensure its longevity: “Our medical reps spend a great deal of time with local hospitals and clinics, promoting the latest pharmaceutical advancements and upcoming products as well. I think this is a huge bonus for us to have dedicated people who can offer in depth advice and answer questions when it is required. The hospitals continue to use us because we have this existing relationship built on trust and quality service,” cites Gokaldas.

Expansion

Although Gokals-Laborex are not currently undertaking any new large scale projects, they are, however, beginning a steady expansion drive which will see them firstly move into a new custom built and state of the art warehouse with offices attached in Ghana’s capital, Accra. “We are currently undertaking an expansion process which will help us to further our market reach into every corner of the country and then begin to move out beyond our borders. The first stage however, is to ensure our headquarters is fully functional and running. This will not be completed until well into next year.” Gokaldas says. As part of this steady expansion, Gokals-Laborex have been looking at the option of adding one or two companies to their supply chain. “We have been looking for the last few months at potentially adding a couple of new suppliers to our list. We have located one in India and one in Italy. The products and the company quality are the level we require and I am confident they will hopefully become great assets to us, although it is still early days,” Gokaldas mentions and goes on to add that “The new suppliers we are interested in working with

www.aFRICAoutlookmag.com

173

G o k a l s - l a b o R e X

The hospitals continue to use us because we have this existing relationship built on trust and quality service”

will enable us to offer high quality pharmaceuticals to the end user but at a greatly reduced cost. This will benefit the everyday consumer who might not be able to afford the current high-end medicine.”

Industry Changes

One of the main challenges faced by Gokals-laborex has been the exchange rate in Ghana. With its ever changing price, Gokaldas has seen a dramatic hike in the expenditure of the company in the last 24 months. “2013 was one of the worst years for us since we began. It is mainly down to the Ghanaian exchange rate. It is very low against other countries and we have to pay high prices for items that would be much cheaper elsewhere.” Companies such as Gokals-laborex have seen general prices rise rapidly in Ghana in the last 24 months, with the Government changes being one of the biggest problems the companies have

174

WWW.AFRICAOuTlOOKMAG.COM

faced. Firstly, the subsidies that were available to companies for fuel and energy have been taken away, meaning crude oil and fuel has seen almost an 80 per cent price hike, placing it as one of the most expensive commodities in the country. The second has been the lack of support for companies in exportation as Gokaldas explains: “Without subsidies from the government and the huge price hike, we have struggled with our import/export. If they had slowly increased maybe 5-10 per cent a year, we could have been better off. This lack of support to us has hit our expansion quite a bit. logistic prices have gone up due to the fuel levies and even items which we import from abroad have gone up in price, forcing us to carefully evaluate how we do business.”

Managing the Market

As Gokals-laborex is one of the market leaders in Pharmaceutical supplies in Ghana, they are always

up against stiff competition. Gokaldas has seen this competition rise over the years and believes that although healthy competition is good, the company has had to be mindful of fluctuating market forces and the every changing exchange rate. â&#x20AC;&#x153;We are always analysing the market and our products within it. We always try to ensure that our products and prices are adjusted accordingly with trends that we see. The problem is that our market is based largely on credit. Hospitals and clinics do not have such capital upfront, so we work on a credit system. Usually the invoices are paid between 6-12 months after the product has been supplied. We appreciate and understand the operating costs of a hospital and we have always allowed them this credit function, so that we all benefit from being in a trusting relationship. This is at the heart of our business,â&#x20AC;? Gokaldas explains, showcasing a clear understanding of his markets and end-users. Having a company that understands and appreciates suppliers, customer relationships and situations, is what sets Gokals-Laborex apart from the market. Gokaldas is confident the year ahead will be a better year than the last and this will come as a result of the companyâ&#x20AC;&#x2122;s continued resilience and market understanding in an ever changing industry.

www.aFRICAoutlookmag.com

175

p a k c o

176

www.aFRICAoutlookmag.com

Pakco are renowned for their delivery of flavour through their foodenhancing product lines Writer Emily Jarvis Project Manager James Mitchell

www.aFRICAoutlookmag.com

177

p a k C o

s a world class food manufacturer with proudly South African roots, Pakco has been adding flavour and quality to consumers’ lives since 1948 and is a market leader in the manufacture of spices, condiments, instant meals and complementary products. The company manufactures 9 brands with over 200 SKu’s, represented in more than 10 categories in-store. Pakco’s family of brands is renowned for reliability, ease of use, and a well-loved, home cooked taste. Through ongoing research and product development, Pakco ensures that the latest international technology and trends are combined with local insights to keep products relevant and in high demand. Pakco (Pty) ltd. is wholly owned by Renaissance Brands (Pty) ltd. Recently, after extensive negotiations, the land Bank has joined as a 50% shareholder of Renaissance Brands (Pty) ltd. The value in such a powerful banking partner is selfevident as Mr King cites: “There are benefits in having a big financial partner, this will facilitate rapid expansion, both organically and by acquisition.” Pakco is located in Durban, KwaZulu-Natal, which is home to one of Africa’s busiest ports and where founder, Pakkiri Pillay, bottled his first batch of spiced pickle over 60 years ago. The group manufactures, packs and distributes staple, dry-packed, and tinned foods, both branded and private label.

BBBEE Standards

Pakco is committed to sustainable growth and development and the business meets South African Broad-Based Black Economic Empowerment (BBBEE) standards. As a community sensitive organisation, socio-economic development in line with national imperatives is a priority and the business is structured to assist previously disadvantaged groups and individuals while simultaneously improving its economic viability.

178

WWW.AFRICAOuTlOOKMAG.COM

South African Markets

All four manufacturing facilities were either rebuilt or refurbished in 2008 and 2009, resulting in a globally competitive manufacturing operation, certified by the South African Department of Health and accredited by FSSC to global food safety standards. Pakco currently has an established market in the SADC (Southern African Development Community) region, and is in the process of moving into Eastern and Western Africa. More recently the company has launched a global strategy starting in the Gulf and parts of Europe. This has been enabled by the achievement of global food safety accreditation. The South African market is not growing at a rate that is comfortable. There is a trend towards convenience foods on one end, but also towards cost savings and commoditisation on the other. “Due to the change in lifestyle, people are searching for convenience, while at the same time looking for something that is affordable. Consumers tend to buy in bulk at the end of the month, to enjoy the discounts associated with this, but are looking to purchase smaller product sizes during the month, as this allows the consumer to buy products they enjoy, at a price that they can afford. Catering to these needs of the consumer is imperative to our success,” King affirms.

Challenges

In the sophisticated and highly competitive SA FMCG Food Industry expansion is a challenge, hence Pakco’s move into the African and global markets. The global recession has put a lot of pressure on the retail industry in general, both in terms of sales and margins. In South Africa, global food safety has gained momentum over the last 5 – 10 years and has driven the smaller players out of the market. This has opened up opportunities.

WWW.AFRICAOuTlOOKMAG.COM

179

p a k C o

LibeRTy FooDS

iberty Foods is a manufacturer’s route to market in the food service and industrial sectors. Founded 10 years ago in Cape Town, our growth has been spectacular with depots in Johannesburg, Cape Town, Port Elizabeth and Durban. liberty Foods is a food manufacturer’s sales agent, warehouse and distribution solution, offering delivery lead times unheard of until now. Our management teams have over 80 years combined experience in food sales and distribution. Liberty Foods is a firm believer in local manufactures, and only imports when items can’t be procured locally at the correct price and quality. Tel +27 21 552 4707 email sales@libertyfoods.co.za

www.libertyfoods.co.za

Voted Number one Sauce Choice in SA

Pakco scooped ‘Product of the Year’, one of the FMCG industry’s most prestigious recognitions, in the 2014 Product of the Year Awards for Pakco Sauces; voted the country’s number one sauce choice by South African consumers. Product of the Year is the world’s largest consumervoted award for product innovation. Established in France 25 years ago, Product of the Year currently operates in 28 countries. In South Africa, the Product of the Year seal is backed by the votes of 5000 consumers and has a significant influence in assisting future customers in their purchase decisions. “For manufacturers of the winning products, the award is a powerful marketing message, proven to increase product trial, awareness, distribution and sales,” explains Mr King.

180

Pakco has launched a number of successful new products already this year, including extensions to their Curry Made Easy cook-in sauce, Bisto cook in sauce variants, a Bisto canister as well as an extension to Southern Coatings in the form of Southern Crumbs.

The Glamorous Side to the Food Industry

With the rise of popular television shows such as MasterChef, Come Dine with me and Top Chef, there is now a major trend in the food industry. This has encouraged business because cooking has now become part of the entertainment, whereas before, it was just the finished meal that provided entertainment. King explains how Pakco is benefitting from this trend: “Pakco creates spices and ingredients that allow people to become master chefs in their own kitchen. In addition

WWW.AFRICAOuTlOOKMAG.COM

Pakco creates spices and ingredients that allow people to become master chefs in their own kitchen”

Pakco Food Service POWERED by Liberty Foods

105% growth since partnering

Let Liberty Foods do the same for your food service offerings www.libertyfoods.co.za Johannesburg Unit 3 Clovelly Business Park 342 Old Pretoria Road Halfway House email sales@lfsgt.co.za

Cape Town ( Head Office ) Liberty Park 23 Bolt Avenue Montague Gardens Cape Town

Durban Tongaat Industrial Park 9 Walter Reid Road Tongaat Email libertykzn@mweb.co.za

Port Elizabeth 122 Albert Road Walmer Email salesrepsec@libertyfoods.cp.za

We want to maintain the high standards of quality our consumers have come to know and trust” to this, there is a long standing trend that has moved the Western world to a stronger taste profile, which is evident in the uK, as tikka chicken has over taken fish and chips as the number one selling fast food option.” This puts Pakco in an advantageous position as this highlights spices and products that Pakco is most well known for, and more and more people want to try these types of dishes.

Secret Recipe to Success

Pakco is the only pickle manufacturer that uses a natural fermentation process in making its pickles; it is why they taste so much better than any other product on the market. “The recipes

are decades old and we do not want to change this, as we want to maintain the high standards of quality our consumers have come to know and trust,” remarks King. “We’ve maintained recipes using real vegetables cooked/ fermented in the traditional ways,” King emphases. With a plan to move into Africa, The Gulf and Europe, as well as continually offer new and innovative products to their consumers, Pakco remain at the top of the flavouring game.

WWW.AFRICAOuTlOOKMAG.COM

181

c o m p a n y

n a m e

Entrepreneurs Convention

Africa Utility Week

Hyatt Regency Hotel Rosebank Johannesburg

International Convention Centre Convention Square 1 Lower Long Street Cape Town South Africa

5 A pri l 2 0 1 4

International Convention Centre Cape Town

1 2 A pri l 2 0 1 4 www.entrepreneursconvention.co.za

20th Western Africa Oil, Gas LNG & Energy Windhoek Country Club Windhoek Namibia

1 4 - 1 6 A pri l 2 0 1 4

www.petro21.com/events/?id=858

Zimbabwe International Trade Fair 2014 Zimbabwe International Exhibition Centre Zimbabwe

2 2 - 2 6 A pri l 2 0 1 4

13-14 May 2014

www.african-utility-week.com

African Construction Expo and Conference Sandton Convention Centre Johannesburg South Africa

26-28 May 2014

2 8 - 3 0 A pri l 2 0 1 4

1 0 - 1 1 J u ly 2 0 1 4

4th Annual Enhancing Customer Experience, Loyalty and Retention in Telecoms Venue to be announced Johannesburg South Africa

ILTM Africa

4 - 5 A ugust 2 0 1 4

International Convention Centre Convention Square 1 Lower Long Street Cape Town South Africa

Tech4Africa

28-30 May 2014 www.iltm.com

International Conference Centre Harambee Ave Nairobi Kenya

2 6 - 2 7 J un e 2 0 1 4 www.roofingafricaexpo.com

www.petro21.com/events/?id=851

182

Crowne Plaza Hotel Johannesburg South Africa

www.construction-week.com

Roofing Africa

InterContinental Hotel Nairobi Kenya

Cement Business and Investment Africa Conference (CBI)

www.prescon-int.com/cbi2014

www.tradeshowz.com

5th Eastern Africa Oil, Gas and Energy

www.aFRICAoutlookmag.com

www.fextons.com

Focus Rooms Sunninghill, Sandton Gauteng Johannesburg

9 - 1 0 Oct o b e r 2 0 1 4

4th Mining Business and Investment Conference (MBI) Safari Park Hotel Nairobi Kenya

1 6 - 1 7 Oct o b e r 2 0 1 4 www.mbieastafrica.com