Africa Outlook Issue 20 by Outlook Publishing

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PPC Zimbabwe has stood the test of time thanks to the dedication of their staff and a consistently high quality product

INVESTMENT PROFILE

AIRTEL SIERRA LEONE 64

SOUTH AFRICA 18 An inside look at South Africa’s business and investment potential

Expanding their network across the region

TRANSLINK

90 Uganda’s premier distribution and logistics company

CUMMINS SA 42 Cummins SA has a stellar reputation in pioneering technology and aftermarket support and service

AFRICA OUTOOK ISSUE 20 A L S O T H I S I S S U E : B E I G E H O L D I N G S | H W A N G E C O L L I E R Y | G R I D C O

W E L C O M E It Pays to Plan Picking the right time to invest in a new service or undertake significant company expansion is never an exact science. African markets can and do change very quickly so careful planning and market research play important roles in a company’s ability to strike while the iron is hot. For the companies we feature this month, investment and expansion are very much on the agenda. Our front cover feature is with Gavin Stephens, Director of Business Development and Corporate Strategy at PPC Zimbabwe. The company has been a market leading cement specialist in the region for over a century, thanks to a dedicated workforce and a product widely regarded as the number one choice for builders and merchants. Through the strategic investment of a new cement mill in the country’s capital - Harare - PPC Zimbabwe are confident they will be around for a further one hundred years. On page 68, we speak with Airtel Sierra Leone’s Managing Director Sudipto Chowdhury, who is overseeing a period of strong investment and modernisation of the network towers and the introduction of a state-of-the-art data centre to herald in a new era of internet services for the country’s businesses and enterprises. In Uganda, logistics play a vital role in exporting and transporting goods from local businesses into the neighbouring countries. On Page 90, we spoke with Translink’s Sales Director Amar Thakrar, about how the company has been distributing products on behalf of some of the world’s biggest multinational companies across the region. In the front of the magazine is an article on the latest technological breakthrough from Philips, who have created a new tablet-sized ultrasound system called VISIQ, for the Kenyan market. This new invention will allow expectant mothers in rural areas to be able to access the same healthcare technology as those within the city. South Africa is the focus for this month’s investment profile; with the country widely regarded as the hottest potential investment area on the continent, thanks to its plentiful natural resources and solid infrastructure, it has attracted a lot of interest from foreign companies looking to venture into the subSaharan markets. Matt Bone “Practice makes progress, not perfect.” Editor, Outlook Publishing - Harry Weaver, Managing Directors son

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 www.opticjuice.co.uk

BUSINESS

Sales Director: Nick Norris nick.norris@outlookpublishing.com Operations Director: James Mitchell james.mitchell@outlookpublishing.com Sales Managers: Ben Wigger ben.wigger@outlookpublishing.com Senior Project Managers: Arron Rampling arron.rampling@outlookpublishing.com Donovan Smith donovan.smith@outlookpublishing.com Project Managers: Tom Cullum tom.cullum@outlookpublishing.com Callum Philp callum.philp@outlookpublishing.com James Smith james.smith@outlookpublishing.com Serge Utting serge.utting@outlookpublishing.com

ACCOUNTS

Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Office Administrator: Donna Redpath donna.redpath@outlookpublishing.com IMAGES: www.thinkstockphotos.co.uk 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 559 145 Editorial: +44 (0) 1603 559 152 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

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In this issue of Africa Outlook...

NEWS

Joburg - Gateway to Africa?

Medical Marvel: Tablet Ultrasound System Introduced in Africa by Philips

All the latest top stories across the month from Africa

Africa Outlook examines the economic reasoning behind why Johannesburg is increasingly being seen as the gateway to Africa

Africa Outlook takes a closer look at Philips’ newest medical invention for the continent

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INVESTMENT PROFILE South Africa

SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world

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

GRIDCO GHANA Ghana’s Backbone to Power Delivery GRIDCo’s strategy has been to develop and promote competition in Ghana’s wholesale power market

AIRTEL MADAGASCAR Madagascar My Country, Airtel My Network A Q&A with Maixent Bekangba, Managing Director of Airtel Madagascar

L O G I S T I C S

SPAR DISTRIBUTION The Beating Heart of SPAR

TRANSLINK Local Knowledge with International Reach

SPAR Distribution Lowveld has a dedicated fleet of 26 multi-axel trucks at their disposal

MANUFACTURING

PPC ZIMBABWE Built on Solid Foundations

BEIGE HOLDINGS Multinational Manufacturers

For over 100 years, PPC Zimbabwe have been manufacturing the highest quality cement in Zimbabwe

Beige Holdings aim to fill the gap left by the closure of several manufacturing companies in South Africa

HWANGE COLLIERY Zimbabwe’s Coal Colossus Hwange is the leading coal producer in Zimbabwe and supplies the nation’s requirements; a role it has diligently played for over a century

SWAKOP URANIUM Namibia’s Uranium Giant Swakop Uranium own the second largest uranium-only mine in the world

Translink are Uganda’s premier distribution and logistics company

EVENTS

Africa Outlook highlights the upcoming events across the continent

R E S O U R C E S

CUMMINS SOUTH AFRICA The Engine of Africa

Cummins SA has a stellar reputation in pioneering technology and aftermarket support and service

T E C H N O L O G Y

AIRTEL SIERRA LEONE Life Enriching, Life Impacting

Airtel Sierra Leone are expanding their network across the region

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S R E S O U R C E S

T R AV E L

SHANGHAI ELECTRIC WINS $1.2 BILLION NAMIBIA POWER PLANT CONTRACT

ETIHAD AIRWAYS LAUNCH NEW DAILY SERVICE TO DAR ES SALAAM Etihad Airways, the national airline of the United Arab Emirates, will expand its African route network with the launch of a daily service to Dar es Salaam, the largest city in Tanzania. Flights between Abu Dhabi and Dar es Salaam, which commence on 1 December 2015, will be operated using Airbus A320 aircraft with 16 Business Class and 120 Economy Class seats. Dar es Salaam will be Etihad Airways’ 110th destination globally, and its 11th destination in Africa and the Indian Ocean. The daily schedule will offer two-way connectivity over Etihad Airways’ hub in Abu Dhabi, with convenient onward connections to 45 popular destinations across the Middle East, Europe, the Indian Subcontinent, North and Southeast Asia, and Australasia. James Hogan, President and Chief Executive Officer of Etihad Airways, said: “Dar es Salaam is an important new route on Etihad Airways’ global network. It builds upon our existing presence in Africa, and supports the close trading relationship between the United Arab Emirates and Tanzania.” The UAE is the primary trade partner of Tanzania in the GCC region. Between 2007 and 2012, trade between UAE and Tanzania increased by more than 350 per cent to US$761 million. “Africa has one of the world’s fastest growing regional economies, and the launch of this new route also enhances access and the two-way flow of trade and tourism between the

continent and key destinations across our global network, supports inbound tourism, encourages investment, and provides much needed local employment,” he added. Tanzania has the sixth largest population in Africa (51 million), with over four million people living in the largest city, Dar es Salaam. A large proportion of the community consist of market traders and proprietors of small businesses whose families originated from the Middle East and Indian Subcontinent-areas of the world with which the settlements of the Tanzanian coast have had longstanding trading relations. In 2013, Tanzania was also named one of the worlds most sought after destinations for leisure travelers, and is blessed with numerous national and international tourist attractions including Mt. Kilimanjaro, the wildliferich national parks of the Serengeti, and the spice island of Zanzibar. Tanzania has the second largest economy in East Africa, and Dar es Salaam provides a strategic gateway for the transportation of goods and commerce to the surrounding six landlocked countries of Zambia, Malawi, the Democratic Republic of the Congo, Uganda, Rwanda and Burundi. You can download the Etihad Airways schedule for Dar es Salaam flights from their website.

Namibia has picked China’s Shanghai Electric as the preferred bidder to build a 1.2 billion dollar gas-fired power plant, according to the head of the country’s power utility. The Kudu project in south-western Namibia will pump gas from the Kudu field about 170 kilometres offshore to a combined cycle gas power plant. The plant, which is expected to have a total capacity of up to 1,050 megawatts (MW), will be connected to the Namibian and South African electricity grids for local and regional use. Paulinus Shilamba, Managing Director of NamPower, said in an email response to questions that Germany’s Siemens AG had been picked as the supplier of generators and turbines. A consortium of Mitsubishi Hitachi Power Systems, Sumitomo and Posco Energy had been selected as a “reserve bidder”, meaning it would be turned to if negotiations with Shanghai Electric failed, Shilamba said. Namibia has been working on projects to boost supplies of electricity in the country, one of the world’s top uranium producers. Its current installed capacity is 507 MW, below a demand of 534 MW. Demand is expected to rise to 800 MW by 2018.

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with the manufacturing of the dry cell battery, that has remained its largest revenue contributor, will lead to the redundancy of 98 roles. Nonetheless, the listed firm will henceforth source the dry cell batteries from its Energizer factory in Egypt. The firm has been fighting hard against counterfeit dry cells in the Kenyan market. Eveready’s sales plunged to 1.4 billion Kenyan shillings in 2013, while its net profit dipped to 45.4 million Kenyan shillings - 165.5 million Kenyan shillings during the period.

Hinged on a new strategy to increase efficiency by bolstering commercial operations, the company says it will now implement a low cost sourcing option for the dry cell battery product. However to remain a key player in Kenya’s economic circles, the firm has opted to focus more on the real estate segment. This it will champion through its new subsidiary Flamingo Properties Kenya Ltd. To grow its business in the region, the firm last year announced the opening up of another subsidiary in Uganda to support its distribution channels. “With the board’s approval, we started implementing this strategy last year and I am happy to announce that our Ugandan subsidiary is operational and we have signed an agreement with a competent distributor in Tanzania,” Mutua explained.

sector by 6,000 and transport by 4,000. The mining and electricity sectors went down 1,000 jobs respectively. The country also saw a rise in year-on-year employment statistics. “Employment increased by 229,000

jobs (+2.7 per cent) year-on-year between June 2013 and June 2014,” read the report. “Community services reported the largest increase (+220,000 or +9.2 per cent), followed by trade (+26,000 or +1.5 per cent) and finance (+15,000 or +0.8 per cent).” These increases were offset by employment decreases in mining, manufacturing and transport. The same period also saw a rise in gross earnings paid to employees by 3.9 billion rand from 404 billion rand in March 2014 to 408 billion rand in June 2014. The survey also reported year-onyear gross earnings having surged by 24 billion rand, which was mainly due to increases in the community services and transport industries.

B U S I N E S S

EVEREADY EA FORCED TO CLOSE IN THE FACE OF IMPORT COMPETITION Eveready East Africa has closed their manufacturing plant in Kenya after facing cut-throat competition from cheap battery imports. At a press conference in Nairobi, the Nairobi Securities Exchange listed firm noted that it was no longer able to keep up with its core business. It will be closing its plant in Nakuru, a key industrial town in Kenya. “The closure of our plant reiterates the shift to a commercial oriented entity. It has taken away the long cash conversion cycles and offers the flexibility to quickly react to market demands whilst focusing on our core business of distribution,” said Managing Director Jackson Mutua in a statement. The closure of the manufacturing plant which has been tantamount

E C O N O M Y

SA’S NON-AGRICULTURE EMPLOYMENT SURGES South Africa’s non-agriculture formal employment has surged by 155,000 jobs in the second quarter of 2014, the Quarterly Employment Statistics survey reported. According to the report released by Statistics South Africa, the increase was boosted by a rise in the community, social and personal services industry that saw a growth of about 5.8 per cent. The trade industry recorded an increase of 17,000 jobs, with the construction sector reporting 5,000 jobs. The survey also reported decreases in the manufacturing

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JUMIA, IVORY COAST’S LEADING E-COMMERCE SITE, DONATES 1,000 SCHOOL KITS TO PUPILS IN A VILLAGE IN ABIDJAN o coincide with the return to school, and as part of the #Tousalecole (Back to School) campaign, Jumia Ivory Coast has offered 1,000 school kits to primary school pupils in Yopougon Kouté in a ceremony attended by members of the National Ministry for Education and Technical Education. “Society gives us a lot. Today is our chance to give something back to society and to make our contribution,” said Fatoumata Ba, CEO of Jumia Ivory Coast, adding that the organisation believes in education as “the cornerstone of the future”. She asked pupils to “make good use” of these gifts, before giving them out in the presence of Inspector for Preschool and Primary Education in Yopougon Kouté and Mme Grah, the Secretary General for the Abidjan 3 Regional Department of National Education and Technical Education, who was attending on behalf of the Minister of Education Kandia Camara. Each student from the school group, which ranged from years CP1 to CM2 (aged 6-11), received a kit comprising a backpack containing plastic wallets, exercise books, a pencil and an eraser, as well as a slate and chalk for years CP1 and CP2. Kouté’s Village Chief, Agbassi Aimé, expressed gratitude to the company, describing the event as “historic” in his speech: “This is the first time that our school has received school kits, and we thank the donors for their support of our children’s schooling. This is proof that Yopougon-Kouté has not been forgotten,” he said.

On behalf of the National Ministry of Education, Mme Grah praised this gesture which supports the action of the government, and called for other businesses to follow Jumia’s lead: “Normally, it is the government who provides these school kits. With this donation today, we feel that the situation is changing and moving in a positive direction. Thank you for what you are doing, because you are contributing to the development of the Ivory Coast. I invite the leaders of private businesses to do the same in order to support parents, especially those whose incomes are limited,” she stated. This ceremony for the donation of school kits marks the launch of a series of social initiatives, with a particular focus on schools in the most disadvantaged areas of Abidjan. The money for the #Tousalecole campaign comes from purchases made online on the website: https://www.jumia.ci.

B U S I N E S S

NESTLÉ APPOINTS NEW CHAIRMAN AND MD Ian Donald has succeeded Sullivan O’Carroll as the new Chairman and Managing Director of Nestlé, effective from the end of September 2014. The company say the incoming new chairman will bring the much required experience: “Donald brings back to the country a wealth of experience in emerging markets. His career with Nestlé began in South Africa in 1972 and he has worked in various countries including Nestlé in Philippines, Malaysia and Pakistan,” reads part of the statement. Donald has been market head for Nestlé Equatorial African Region and was based in Kenya for the past two years where he was responsible for 21 countries in that region. “I am excited to be back home and humbled by this opportunity to lead this company that has been a part of our country for almost 100 years,” said Donald. Donald also added that Nestlé is set invest two billion rand into the business over the next five years: “Nestlé believes in Africa as an investment destination and part of our ongoing investment will include increasing capacity for our coffee factory in Estcourt, Kwa-Zulu Natal with the aim of creating a coffee hub for the region,” added Donald.

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T E C H N O L O G Y

SA’S INTERNET REVENUE TO HIT R71.6 BILLION BY 2018 A report on the South African entertainment and media industry says the country’s entertainment and media market is expected to grow by 10.2 per cent compounded annually (CAGR) from 2014 - 2018 to a value of 190.4 billion rand. “By far the largest segment will be the Internet. Combined revenues from Internet access and Internet advertising will account for an estimated 71.6 billion rand in 2018, accounting for 37.6 per cent of total revenues,” said PwC’s South African Entertainment and Media Outlook: 2014-2018. “Growth in the entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology as I N F R A S T R U C T U R E

WORLD BANK PARTNERS WITH TANZANIA ON PORT IMPROVEMENT PROJECT This port improvement project partnership will be delivered through the Dar es Salaam Maritime Gateway Project. The cooperation includes the provision of financial support to facilitate the deepening and strengthening of berths 1-7, the dredging of the entrance channel and turning basin in the port. The initiative will also see the construction of a new berth and roll on – roll off terminal, and improvements in the spatial efficiency and operational effectiveness of the Port of Dar es Salaam. “The provisional cost of the project is 565 million US dollars, and will be covered by a mixture of loan, credit, and grant from the

well as applications powered by data analytics and cloud services,” Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa added. Myburgh added that technology is “increasingly being driven by consumers’ needs and expectations.” PwC also predicts that aside from the internet, the fastest growth will be seen in video games and radio, which will enjoy growth rates at 9 percent and 8.2 percent respectively.

“Video games have made the greatest transition to digital, largely due to the popularity of mobile gaming, but also because of the increased potential for digital distribution of console games,” adds Myburgh. According to the Outlook, the slowest growing segment in the E&M industry will be the music industry. The music industry has been declining as it was worth 2.13 billion rand in 2013, down from the 2009 figure of 2.41 billion rand. Annual revenue is forecast to grow marginally by a CAGR of 0.5 per cent to remain relatively flat at 2.18 billion rand in 2018. “Continued growth in broadband and Smartphone penetration is accelerating the shift to digital music. Digital music is cheaper, offers instant access and is more portable – these are all major advantages,” concludes Myburgh.

the capacity of the port to 28 million tons by 2020 from current 14.6 million tons handled in 2013/14. Phillipe Dongier, World Bank Country Director for Tanzania said the Memorandum of Understanding marked another significant milestone in the history of relations of the World Bank and Tanzania. “The World Bank Group has been a consistent supporter to the transport sector in the country in the past and we are delighted that now we are closely working with the UK Department for International Development.” Development Partners,” said the World Ros Cooper, acting head of office Bank in a statement. for Department for International “The overall objective of the coDevelopment (DFID) added that the Port operation is to support the TPA to realise of Dar es Salaam was Tanzania’s most the objectives of the government of important infrastructure asset. “Future Tanzania for the maritime sub-sector, as growth of the economy depends on expressed in the Big Results Now (BRN) the Port’s ability to improve, to become Initiative.” The Big Results Now is part of more efficient and to be able to handle Tanzania’s Vision 2025 seeking to increase more trade,” said Cooper.

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T E C H N O L O G Y TECHNO BRAIN CEO MANOJ SHANKER WINS ENTREPRENEUR OF THE YEAR AWARD AT CNBC AFRICA’S ANNUAL BUSINESS LEADERS AWARDS 2014 echno Brain is proud to announce that its CEO, Manoj Shanker, has won the coveted East Africa Entrepreneur of the Year award at CNBC Africa’s Annual Business Leaders Awards (AABLA) 2014, the continent’s most prestigious business awards. The AABLA regional awards for East Africa were held in Nairobi on September 20 and it was televised across the continent. Going into Saturday’s award function as a finalist on a two-man shortlist, Manoj went on to win the East Africa Entrepreneur of the Year category. On announcing Manoj Shanker as the winner, the jury said: “This award recognises the achievements of one who best exemplifies the ideals of entrepreneurship by starting and successfully managing a business in a way that demonstrates notable entrepreneurial characteristics and achievements, while practicing best values in the workplace and in their lives. Manoj has shown exemplary qualities and unwavering passion as an entrepreneur, leader and as a person. He has empowered lives across Africa, has been a game changer in his industry and has positively influenced the economies in Africa. This award not only recognises his achievements but also thanks him for his work and his positive influence.” In his acceptance speech, Manoj Shanker said: “I am greatly humbled and honoured to be receiving this award. I would like

to offer my sincerest gratitude to CNBC Africa for this honour. I did not make the journey here alone. Numerous people have supported me along the way.” He added: “When I moved to Africa 16 years ago, I was inspired by the amount of young talent Africa has. It has motivated and inspired me throughout all the years. I would like to dedicate this award to all the young people I work with. I consider it an honour to have the opportunity to be able to work with an amazing team that is spread across 23 countries globally who continue to inspire me every day. I am one of those fortunate people who goes home knowing that I make a difference in my community and in Africa by empowering lives. I would also like to thank my Chairman, Mr Mahesh Patel for all his support and wisdom throughout the years. Last but not least, I would like to thank my family for all the love and support they have given me. Thank you once again for this award, I am truly honoured.” Winners from all regions will get together for the final Africa awards to be held in Durban, South Africa on November 14, 2014.

F I N A N C E

METACOM ENABLES SA’S LEADING INDEPENDENT ATM NETWORK Since 2005, Spark ATM has grown to be South Africa’s leading independent ATM network, with over 2,500 cash machines in some of the country’s most remote areas - all built on the basis of a uniquely lean, low-cost business model that has enabled it to put ATMs where nobody else can. “Many of our ATMs are in deep rural areas or small towns where the transaction volumes are very low - as few as 500 a month,” says Spark ATM founder and MD Marc Sternberg. “If the cost of communicating with a site like that is R1,000 a month or more, it’s simply not viable to put an ATM there it’s too expensive. A good 20-30% of our network falls into that category.” What has made it possible to put ATMs at these sites, says Sternberg, is Spark ATM’s partnership with industrial communications specialist Metacom. “Using Metacom’s devices and network we’re able to keep our communications costs below R200 a month at each site, whilst not compromising on quality - and that makes all the difference.” Metacom’s modems and routers enable seamless connectivity to the full spectrum of GSM cellular communications, as well as ADSL or satellite. “We build the

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SOUTH AFRICA IN EARLY STAGES OF NUCLEAR POWER DEAL WITH RUSSIA outh Africa’s nuclear cooperation deal with Russia is part of a tender process that will involve other competing countries. This is according to government officials who also said that it is not a contract to build power plants. devices into our ATMs at our factory in Cape Town, so we arrive on site with the full communications solution already installed - all we need is a power supply,” says Sternberg. At about 10% of Spark ATM’s sites, there is no other way for residents to get access to cash; in many others, there is only one bank branch, which is closed at night and on weekends. “We believe we’re playing an important role in keeping economic activity within rural communities - and the demand is growing with the number of banked consumers, especially Capitec and SASSA (SA Social Services Agency) card holders.” Seamless communications through Metacom also enables Spark ATM to keep maintenance costs low, adds Sternberg. “Metacom’s service includes remote monitoring and control, which is critical. So far this year we’ve rolled out 10 versions of our software - with 2,500 machines the only affordable way you can do that is remotely. Our contact centre staff can diagnose and fix problems, change configurations and settings and reboot machines anywhere in the country, all without leaving the office.” “The Spark ATM network is currently growing by 50-60 a month,” says Sternberg, and the company is looking beyond the borders of South Africa. “We have just under 40 machines in Zimbabwe already, and plan to be represented in another five African countries within the next 36 months.”

The Russian atomic agency Rosatom said it had signed a 10 billion dollar deal with Pretoria to install 9.6 gigawatts of nuclear capacity by 2030, to help Africa’s most advanced economy cope with chronic electricity shortages. However, South African government officials said the agreement was still in the early stages, after the main opposition party criticised the deal. “There will be a South African procurement process of course. There will be other inter-government agreements signed,” Xolisa Mabhongo, an executive at South African state agency Nuclear Energy Corporation, said from Vienna, where the agreement was signed. The bidding process would be completed by mid-2015 before any final contracts were signed, officials said. “These kinds of inter-governmental agreements are standard with nuclear vendor countries. We foresee that similar agreements will be signed with other nuclear vendor countries, France, China, Korea, the US and Japan,” a senior South African government source, who is part of the country’s delegation to an International Atomic Energy Agency conference in Vienna, told Reuters. South Africa has an energy plan in place to build six new nuclear

power plants by 2030, providing 9,600 megawatts (MW) of power at a cost estimated between 400 billion rand and one trillion rand. But the energy department said last December it may delay the programme and focus instead on coal, hydro and gas as alternative energy sources. South African energy analysts and opposition parties criticised the Rosatom agreement, saying South Africa’s credit rating could be threatened if it commits itself to nuclear installations it cannot afford, Nedbank economist Dennis Dykes warned. “Hopefully ... there will be a lot more transparency before we actually have a final decision made,” he said. South Africa is struggling to meet rising electricity demand due to ageing infrastructure and its failure to build new power plants in over two decades. The government recently said it had approved a support package for state-run power utility Eskom, which will see the company raising over four billion dollars in additional debt and receiving an equity injection from the state. South Africa has one nuclear power station that provides around five per cent of the country’s 42,000 MW of installed generating capacity. Nearly all the rest comes from coal.

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J O B U R G

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Gateway

JOHANNESBURG

t is a statistical fact that Johannesburg ranks as Africa’s top city for doing business, according to surveys by various companies including Z/ Yen, AT Kearney, Citigroup and the Economist Intelligence Unit. Its African rivals for investment include Lagos, Nigeria’s overcrowded and congested commercial capital, where on average it rains 101 days a year, the daily maximum temperature reaches 31 degrees Celsius (87 degrees Fahrenheit) and power outages are a regular occurrence due to struggles with load shedding. East Africa’s main hub, Nairobi, is beset by crime and nightmarish traffic. Then there is the South, where South Africa accounts for about 22 percent of sub-Saharan Africa’s output; together with Nigeria, they

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What you’ve got to try and do is build local networks. Johannesburg is one of the easier places to do business across Africa. Lagos has infrastructure challenges, they also have power issues”

contribute 55 percent, World Bank data shows. Economic growth in sub-Saharan Africa was projected to pick up from 4.9 percent in 2013, growing to 5.4 percent this year, three times more than the US and four times the rate of Brazil, according to International Monetary Fund forecasts. We take a look at what factors have influenced Johannesburg’s growth and examine the city’s advantages and disadvantages; asking whether Joburg holds the key to economic development on the continent.

Local Networks

“You can’t be in every single country,” sub-Saharan Africa Managing Director for the Carlyle Group, Marlon Chigwende, once said; the world’s second-largest private-equity firm, which opened offices in Johannesburg and Lagos in 2011 and raised $698

to Africa? Africa Outlook examines the economic reasoning behind why Johannesburg is increasingly being seen as the gateway to Africa Writer Emily Jarvis SOURCE Business Report Africa million (R7.7 billion) for its first subSaharan Africa fund. “What you’ve got to try and do is build local networks. Johannesburg is one of the easier places to do business across Africa. Lagos has infrastructure challenges, they also have power issues.” In support of this, Johannesburg is the wealthiest of South Africa’s nine provinces which occupies only 1.4% of South Africa’s land area, but contributes more than 33% to the national economy and a phenomenal 10% to the GDP of the entire African continent. Goldman Sachs has more than 20 people based in Johannesburg, according to Colin Coleman, who was the New York-based bank’s sole employee in South Africa when he joined in 2000 and now heads its operations for sub-Saharan Africa. “Johannesburg is the capitalmarket centre for Africa,” Coleman

said. “Eighty percent of all equity capital-market trading happens on the Johannesburg stock exchange. For access to management, capital and a good lifestyle, this is a great springboard. Most multi-national companies are using Johannesburg as a base.”

Gold and Infrastructure Boom

Johannesburg, founded in the 1880s when the discovery of gold sparked a mining boom, dominates the province of Gauteng, which contributes a third of national gross domestic product of $316 billion. The population of the city of Johannesburg, the metropolis’ biggest component, rose to 4 million in 2014, from 2.6 million in 1996. This is spread across around 1,006 930 households, and is characterised by its youthful residents, with 42 percent of the

Eighty percent of all equity capital-market trading happens on the Johannesburg stock exchange. For access to management, capital and a good lifestyle, this is a great springboard”

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population under the age of 24 and 49 percent under the age of 34. The city’s population is always growing, largely as a result of migration from other parts of the country, and the number of households is increasing, placing huge demands on the city’s economic and social infrastructure. When it comes to key business and investment areas, commercial development is most evident in Sandton, the main financial district, which had a single 20-story office tower and a shopping mall in the 1970s and is now an expanse of office towers and luxury hotels. The city’s financial, municipal, roads and telecommunications infrastructure match that of leading world cities, with the City Deep freight terminal classified as one of the largest inland ports in the world - handling 30 percent of South Africa’s exports. The Sandton area had 1.5 million square meters (5 million square feet)

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of office space at the end of June 2014, data compiled by Jones Lang LaSalle Inc shows.

Four Airports

Ease of access is part of Johannesburg’s appeal as an African gateway. It has four airports, including the OR Tambo International Airport that’s used by about 45 airlines and can process 28 million passengers a year. The Gautrain, a high-speed rail line, links the airport, Sandton, the city centre and the capital Pretoria, alleviating congestion on the city’s 9,000-kilometre (5,600-mile) road network. The city plans to invest 100 billion rand on transport links and other infrastructure over the next decade. Johannesburg needs to constantly prove its worth as a continental stepping stone, said Patrice Motsepe, whose control of mining company African Rainbow Minerals has made him the wealthiest black

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South African, with a net worth of $2.3 billion.

Stark Inequality

Although business may be booming, the gap between rich and poor is stark. The city comprises millionaires’ mansions as well as shantytowns, illustrating why South Africa is ranked by the World Bank as one of the world’s most unequal societies. Those with means hire private security to keep the poverty and crime at bay. They have access to potable water, private schools, gyms, restaurants, cinemas and malls stocked with global brands. “Johannesburg is a very liveable city,” says Sam Moss, the Investor Relations Director of financial-services company FirstRand Bank, who moved to Johannesburg from the UK in 1995. “It doesn’t take two hours to commute on horrid trains. I haven’t been the victim of violent crime. I have the electric fence, the alarm systems,

SOURCE: Business Report Africa

and the ‘killer’ dogs. I check my back mirror every time I turn into my driveway. I try to be sensible without being paranoid. The day you can’t live with that mindset, it’s time to leave.” While South Africa’s murder rate has dropped by more than half to 31.1 per 100,000 people since 1995, it remains six times higher than that of the US. Of 16,259 homicides in the country in the year through March 2013, 1,158 were in Johannesburg, an analysis of the latest police data by the Pretoria-based Institute for Security Studies shows.

Joburg 2030 Vision

The adoption of Joburg 2030, an economic development plan aimed at achieving a better quality of life for all the city’s residents, is a long-term strategy which focuses on getting fundamentals in the economic and investment chain right. This vision is evidence that the city is aware of their downfalls and is committed to further improving both standard of

living and business opportunities in the city. It does this by identifying the three core mechanisms to achieve this: creating a conducive environment; improving the efficiency of investment; and accelerating business activities. By having such a vision in place, the city hope to ensure residents enjoy a higher standard of living than people in South Africa’s other main locales. Fiat’s CEO, Trent Barcroft, who was shot in his hometown in Joburg is unperturbed by his unpleasant experience, and instead emphasised his love for living in the city to the media: “I didn’t for a moment consider leaving. I think the first thing I told my wife [because I knew head office would be on the phone] was: You tell those people I’m not going anywhere, so don’t even think about it. This is my career. I feel like this here is my home; I have lived here for so long. I love my work here, there’s a lot more to do here and I am keen to see what levels I can grow the Chrysler and

Fiat business here to,” he added in a separate release: “There are so many positive things, the people generally are lovely, the climate is fantastic, the outdoors, you name it.” In conclusion, it is vital that Johannesburg work towards eradicating any issues that tarnish the area’s chances of achieving the 2030 vision. Of course, if you want to be a major business centre, you have to be able to attract people and make them excited about the prospect of living in Johannesburg. One of the main issues Joburg faces is the difficulty with the distribution of wealth between the rich and poor. Unless financial support is distributed equally to all areas of the district, the great divide between the poor and the rich will worsen. Failure to do this will result in gaps in infrastructure, forcing the poor to get poorer and the rich to get richer. For more country facts and figures, visit http://www.imf.org

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M E D I C A L

M A R V E L

TABLET ULTRASOUND SYSTEM INTRODUCED IN AFRICA BY PHILIPS Africa Outlook takes a closer look at Philips’ newest medical invention for the continent

edical arvel

Writer Emily Jarvis oyal Philips unveiled its new ultramobile ultrasound system VISIQ to the Kenyan market during the Nairobi leg of its annual pan-African Cairo to Cape Town Roadshow. Currently in its fifth consecutive year, the roadshow enables Philips to engage in dialogue with customers, governments, NGOs and media to ascertain a better understanding of each country’s unique requirements and to develop the relevant technology to support their needs on maternal and infant care.

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The size of a tablet, the VISIQ is the first ultra-mobile system from Philips. It provides high quality images for expectant mothers wherever care is taking place. VISIQ exemplifies Philips’ commitment to more cost effective, simplified, patient-focused health care innovations with high clinical performance. By launching this new system in Kenya, Philips continues to demonstrate its dedicated support to the Kenyan Ministry of Health in its mission to reduce child mortality rates, improve maternal health, meet the UN Millennium Development Goals 4 & 5 and revitalise Kenya’s health infrastructure as part of Kenya’s Vision2030.

H E A LT H C A R E & T E C H N O LO G Y

Maternal Screening Allows for Early Detection of Complications

focus on cost effective systems, smaller footprints and imaging According to the Philips’ Fabric of equipment which is both easier to Africa trends report, women in Africa operate but has improved clinical are at significant risk of premature functionality. The Philips VISIQ has death, with particularly high mortality been specifically designed with this rates recorded in pregnancy. Women in mind and embodies Philips’ image in semi-urban and rural areas across quality legacy, driving innovation Kenya (in fact all of Africa) often die and efficiency in ultrasound imaging. due to preventable complications VISIQ provides high quality images during child birth as they have no for quick and reliable diagnostic access to ultrasound screenings to decision making,” summarises Peter detect critical conditions. Many of van de Ven. these deaths can be diagnosed with VISIQ’s unique combination of Clinical Training - Ridge Hospital basic imaging technology. mobility, ease of use and image One of the benefits of VISIQ is that quality, will enable clinicians to it is portable and easy to use so it’s perform ultrasound examinations across a variety of clinical settings. Small available for expectant mothers in outpatient clinics or community centres can carry out comprehensive obstetric remote areas who wouldn’t otherwise and abdominal scans themselves rather than referring patients to regional have access to this type of innovative ultrasound centres. This enables fast diagnosis and treatment. technology. “It makes me proud to Approximately ten times smaller than a traditional ultrasound machine and see how Philips’ cost-effective, easy with reduced energy consumption, VISIQ can also be used in community care to operate ultrasound systems can programmes in remote rural areas for screening, triage and foetal well-being scans, make a real difference in Africa. It all of which helps to address the critical issue of maternal and infant care in Kenya. shows that meaningful innovations Maternity Screening Camp to Enable Early Detection of Complications can contribute to saving people’s lives,” says Peter van de Ven, Vice As per previous years, Philips is President & General Manager, Philips organising a maternity screening Healthcare Africa. “Improving access camp during the Cairo to Cape to healthcare is high on the Philips Town roadshow jointly with African agenda in Africa and we are very Medical and Research Foundation eager to contribute to the Vision2030 (AMREF) in Kibera; the largest goals of the Kenyan government to informal settlement in Nairobi. improve access to quality care for For a majority of the expectant all Kenyans. VISIQ allows clinicians mothers in this community, this to provide ultrasound in a variety of screening camp will be their clinical environments, offering soonfirst ever opportunity to have to-be parents the comfort of having a scan. This will ensure that regular pre-natal check-ups.” any complications are detected Philips introduces innovative ultra-mobile ultrasound in advance of labour. Philips system ‘VISIQ’ in Kenya to bring high quality, Designed for the Needs of the will be providing ultrasound affordable healthcare to a wide range of clinicians Kenyan Market equipment, including the VISIQ According to the World Health system and clinical specialists for the camp, whereas AMREF, through its Organisation (WHO), diagnostic referral programme with the local public hospitals, will take care of any imaging is crucial in healthcare. complications detected during the screening. Many countries in the developing Philips is also organising a roundtable discussion as part of its ‘Fabric world cannot afford to purchase of Africa’ campaign, on the topic of “Innovations in Rural Healthcare” expensive high technology imaging and will organise clinical training workshops on topics including foetal equipment despite the urgent need monitoring, infant warming, jaundice management and clinical ultrasound. to use imaging resources in these Over the course of three days, Philips will train close to 120 local healthcare countries. “There is a growing global professionals, increasing the quality of healthcare workforce in Kenya.

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I N V E S T M E N T

P R O F I L E

INVESTMENT PROFILE 18

SOUTH Africa Outlook takes a closer look at South Africaâ&#x20AC;&#x2122;s business and investment potential Writer Emily Jarvis SOURCE KPMG Report

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SOURCE: KPMG Report

odayâ&#x20AC;&#x2122;s South Africa is one of the most sophisticated, diverse and promising emerging markets globally. Strategically located at the tip of the African continent, South Africa is a key investment location, both for the market opportunities that lie within its borders and as a gateway to the rest of the continent, representing a burgeoning market of about 1 billion people. With an estimated population of over 52 million, South Africa is the economic powerhouse of Africa and forms part of the BRICS group of countries with Brazil, Russia, India and China. It has a favourable demographic profile and its rapidly expanding middle class has growing spending power. South Africa has a wealth of natural resources - including coal, platinum, coal, gold, iron ore, manganese nickel, uranium and chromium- and it enjoys increased attention from international exploration companies, particularly in the oil and gas sector. It has world-class infrastructure, exciting innovation, research and development capabilities and an established manufacturing base. It is at the forefront of the development and rollout of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact. South Africa has sophisticated financial, legal and telecommunications sectors, and a number of global business process outsourcing (BPO) operations are located in the country. It has political and macro-economic stability, an abundant supply of semiskilled and unskilled labour,

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and it compares favourably to other emerging markets in terms of the overall cost of doing business. The South African government has introduced wide-ranging legislation to promote training and skills development and fast-track the building of world-class skills and competencies. One of the main reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors. South Africa has a host of investment incentives and industrial financing interventions that are aimed at encouraging commercial activity and its trade rules favour a further expansion in South Africa’s burgeoning levels of international trade. South Africa’s unrivalled scenic beauty and reputation for delivering value-for money also make it an attractive leisure and business travel destination.

Overview of the Economy

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that is the 18th largest in the world; and modern infrastructure supporting a relatively efficient distribution of goods to major urban centres throughout the region. Growth was robust from 2004 to 2007, as South Africa reaped the benefits of macroeconomic stability and a global commodities boom but began to slow in the second half of 2007 due to an electricity crisis and the subsequent global financial crisis’ impact on commodity prices and demand. GDP fell nearly 2% in 2009 but recovered in 2010-11 and in 2014; the country’s total GDP figure now stands at US$350.6 billion. Unemployment

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remains high and outdated infrastructure has constrained growth. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating “load-shedding” cuts in 2007 and 2008 to residents and businesses in the major cities. Consequently, South Africa now faces regular power cuts and the government is urging people to conserve energy in any way they can whilst new energy plans are rolled out, including a growing scene for renewable energy projects such as wind and solar power. Economic problems remain from the apartheid era – especially poverty, lack of economic empowerment among the disadvantaged groups, and a shortage of public transportation. South Africa’s economic policy is fiscally conservative focusing on controlling inflation and attaining a budget surplus. The current government largely follows these prudent policies but must contend with the impact of the global crisis and is facing growing pressure from special interest groups to use state-owned enterprises to deliver basic services to both simultaneously deliver basic services to low-income areas and increase job growth.

Natural Resources

South Africa is well known throughout the world for its gold, diamonds, coal and platinum industries, but the country mines a number of other minerals besides these. What is not as commonly known is that the country also has a wide range of additional natural resources such as timber, sugar and a number of other agricultural items. The timber industry of South Africa is very productive and supplies almost the entire country’s timber requirements as well as exporting a sizeable percentage of wood grown

Transport & Communications

PORTS & SHIPPING

in these plantations. Another industry that goes relatively unsung is South Africa’s sugar industry, situated mainly in KwaZulu Natal and to a lesser degree in the Eastern Cape and the Mpumalanga area. The sugar industry of South Africa generates an income of about six billion rand annually and provides work opportunities for a very large number of people living in these areas. Not to be forgotten of course is the wine industry of South Africa. Since the end of Apartheid the export of wines from South Africa has continued to grow with each passing year and today, South Africa is one of the top ten wine producers in the world. South African agriculture also encompasses a wide range of additional products such as fresh fruit (grapes, citrus, nectarines and others), as well as maize, tobacco, wool and cotton. Most of these items are also exported.

South Africa has a modern and well developed transport infrastructure. The roads are world-class; the air and rail networks are the largest on the continent”

Major shipping lanes pass along the South African coastline in the south Atlantic and Indian oceans. Approximately 96% of the country’s exports are conveyed by sea, and the eight commercial ports are the conduits for trade between South Africa and its southern African partners as well as hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa. The state-owned Transnet National Ports Authority manages the country’s ports. These are: Richards Bay and Durban in KwaZulu-Natal; East London, Port Elizabeth and the Port of Ngqura in the Eastern Cape; and Mossel Bay, Cape Town and Saldanha in the Western Cape. In order to further improve the country’s shipping capabilities, Transnet is upgrading several of the country’s ports as part of a multi-billion rand capital expenditure programme.

ROAD & RAIL

South Africa’s total road network is about 754,000 kilometres, of which over 70,000km are paved or surfaced roads. The drive from Musina on South

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SOURCE: KPMG Report

South Africa has a modern and well developed transport infrastructure. The roads are world-class; the air and rail networks are the largest on the continent. The country’s ports provide a natural stopover for shipping to and from Europe, the Americas, Asia, Australasia and both coasts of Africa. The transport sector has been highlighted by the government as a key contributor to South Africa’s competitiveness in global markets. It is increasingly being seen as a crucial engine for economic growth and social development, and the government has unveiled plans to spend billions of rand to improve the country’s roads, railways and ports.

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member, SAA also offers its customers 975 destinations in 162 countries and 18,100 flights daily.

Communications

Africa’s northern border to Cape Town in the south is a 2,000km journey on well-maintained roads. While the Department of Transport is responsible for overall policy, road-building and maintenance is the responsibility of the South African National Roads Agency (Sanral) as well as the nine provinces and local governments. Sanral is responsible for the country’s network of national roads, which grew to over 20,000km and an estimated value of over R40billion in 2010. A multi-billion rand freeway improvement scheme has significantly eased congestion on the roads in Gauteng, the country’s busiest province. South Africa has an extensive rail network - the 14th longest in the world - connecting with networks in

the sub-Saharan region. The country’s rail infrastructure, which connects the ports with the rest of South Africa, represents about 80% of Africa’s total. The Gautrain is an 80km rapid rail network, connecting Johannesburg, Pretoria and OR Tambo International Airport, easing congestion on the Johannesburg -Pretoria highway by offering commuters a safe and viable alternative to road travel.

AVIATION

Sixty-two airlines, making 274,000 aircraft landings and carrying 16.5-million passengers (counting departures only), moved through South Africa’s ten principal airports in 2009. South African Airways (SAA) is by far the largest air carrier in Africa, with connections to more than 20 cities across the continent. As a Star Alliance

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South Africa’s telecom sector boasts the continent’s most advanced networks in terms of technology deployed and services provided. In a virtually saturated voice market, four mobile networks - Vodacom, MTN, Cell C and Telkom SA - are competing for market share in the next growth wave, mobile broadband. 3G/HSPA mobile broadband services now rival available DSL fixedline offerings in terms of both speed and price, and have consequently taken the upper hand in terms of subscriber numbers. All four operators are preparing for the introduction of the next generation of mobile technology, LTE (also referred to as 4G), but are being held back by delays with suitable frequency spectrum allocations. While emerging as the country’s leading broadband providers, the major mobile operators are also branching out into fixed-lines, fibre backbone networks, international fibre connectivity, mobile banking and entertainment in a rapidly converging environment. Fixed-line incumbent Telkom SA has reacted by launching its own 3G mobile network and the country’s first commercial WiMAX service, but various competitors are hard on its heels rolling out the same technology, including second national operator Neotel. South Africa’s Internet and Broadband market has finally taken off after years of stagnation due to an expensive operating environment created by Telkom SA’s dominance in the fixed-line and international bandwidth market. The new converged licensing regime has created hundreds of companies licensed to offer Internet services. There has been consolidation in the sector which is expected to continue.

SOURCE: KPMG Report

With its relatively well developed and diverse infrastructure, South Africa is also taking a regional lead role in the convergence of telecommunication and information technologies with the media and entertainment sector, promising reductions in telecommunication costs and better availability of information and services. Digital media and social media have reached a level of development to foster an associated advertising and marketing industry. The FIFA World Cup held in the country in 2010 has showcased these developments. While South Africa lags behind other countries on the continent in the development of e-government, e-health and e-learning applications, it is a regional leader in the areas of electronic banking and mobile banking services and social media.

Economic Outlook

The real GDP growth forecast for 2013 was 2.1% (revised down from 2.4% previously) because of a range of domestic and external constraints. Data from the first five months show that retailing and manufacturing both grew more slowly (by 3.4% and 1.7% respectively) than during the same period of 2012. Mining growth quickened to 1.7% in January-March (after contracting a year earlier) but the sector will continue to be weighed down by weaker commodity prices, slack external demand and the risk of more widespread strikes as wage negotiations intensify during the third quarter. Manufacturing also faces a heightened risk of strikes, while all industrial sectors continue to face the threat of power shortages. Moreover, consumer spending will slacken in the face of weak job creation and high debt levels, despite the persistence of low interest rates and brisk real wage growth. The euro zone debt crisis and a slowdown in key emerging markets will serve as additional constraints

on growth. The government will remain supportive of growth through an ongoing fiscal stimulus, although private investors will be cautious, because of uncertainty about government policies towards land and labour. The risk of recession is low, but growth will be too sluggish to cut the high unemployment rate, which will continue to constrain aggregate demand. Growth is expected to rise to 3.4% this year, in line with the modest global economic recovery. However, persistent structural constraints, including skills shortages, high unemployment, crime, corruption and inefficient parastatals, will act as a drag on growth. Fiscal consolidation will also affect both household and government consumption, while uncertainties in

the build-up to the 2014 election may deter private investment. On the plus side, the expansion of South Africaâ&#x20AC;&#x2122;s growing middle class will facilitate consumer spending on durable goods and services such as telecommunications and banking. Growth is expected to pick up slightly towards the end of the forecast period, rising to 4.8% in 2016 and 5.0% in 2017, helped by the start-up of new transport networks and power stations (which will boost energy-intensive sectors), although structural constraints will persist. Growth in 2015-17 will also benefit from a more accommodating global environment and an increase in regional trade. Nevertheless, a negative external balance will continue to weigh on growth throughout the forecast period.

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P P C

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PPC Zimbabwe has stood the test of time thanks to dedication from their staff and a consistently high quality product Writer Matt Bone Project Manager Ben Wigger

or over 100 years, Portland Holdings Limited T/A PPC Zimbabwe has been manufacturing and distributing the highest quality cement in sub-Saharan Africa. With a product used for home building to stadium construction, roads to mighty dam walls, PPC Zimbabwe has become the largest producer of cement products in the market, boasting a 57% market share and having seen steady growth over the last five years. For a company that has been a part of the changing face of manufacturing in Zimbabwe for a century to remain successful, even during periods of political and economic uncertainty, there must be a strong belief in the workforce and product. Gavin Stephens, Director of Business Development and Corporate Strategy, puts the success of the company down to 3 key areas: Passion, Product and Persistence. “From the start, we have been committed and passionate about building the company up while also building the country as well. Throughout the years our commitment to making the product as superior as possible has been a core focal point in our business model and we have spent many years perfecting our goods to ensure they are always going to be the first choice for all builders. Finally I think it is the persistence of the company’s managers who have steered the company through two World Wars and economic sanctions to ensure that the name PPC will always be around,” explains Stephens.

Building for the Future

PPC Zimbabwe has embarked on three significant projects, two of which were to do with the upgrading of the Bulawayo factory and the third will take the form of a new cement mill in Harare. The upgrades to the Bulawayo

From the start, we have been committed and passionate about building the company up while also building the country as well.”

site have included the installation of a new palletiser, commissioned in March 2014, which is the first of its kind in the country. The new palletiser has been installed with customer service and improved production in mind. The new system will increase production levels, enabling PPC to reduce turnaround times and ship out greater quantities of materials in a shorter space of time. The second installation in the factory is a state of the art bulk loading system, capable of filling 1.5 tonne bags and both rail and road tankers.

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The final project will see the breaking of ground on a new multi-million dollar cement mill in the Zimbabwean capital. Construction is due to start at the end of this year with the planned opening being touted for mid-2016. The new cement mill will offer an additional 100 tonne per hour cement capacity to PPC’s existing manufacturing capability. “The new equipment we have installed at our facility in Bulawayo will really enhance our production capabilities. By being able to produce more product, we can then ship our products to more customers each day. As we run 24/7, this will really make a difference to our operations across the board. When our new cement mill becomes operational, we will double our production levels and really begin to flex our manufacturing muscles,” highlights Stephens.

Growth During Slowdown

Zimbabwe’s markets have been heavily affected by the global recession and when coupled with a falling GDP, stagnation has begun to creep into the industries in the country. However, that said, PPC Zimbabwe has posted strong growth figures over the last five years, although this year has seen weaker growth than the same period in 2013. Despite this slower growth period, September 2014 was an all-time record sales month for PPC Zimbabwe. The months running

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Over the next three to five years, I am confident we will begin to see an upsurge in the cement manufacturing and construction markets”

Beitbridge Bulawayo Railway

eitbridge Bulawayo Railway (Pvt.) Ltd. (BBR) is a private, railway company incorporated and registered in Zimbabwe in 1997. It became operational in July 1999 and was commissioned by the President of Zimbabwe on 1st September 1999. Its main business is the operation of a 350 kilometres railroad link between Beitbridge (at the border of Zimbabwe and South Africa) and Bulawayo. The railway line, once a dream only, became a reality and was constructed in a record time of 16 months. Construction funds amounting to US$ 85 million were raised from shareholders as well as from South Africa’s Rand Merchant Bank.

project based on the B.O.T. (BuildOperate-Transfer) concept symbolised the commitment of the NLPI (Pvt) Ltd Group, to current and future investment, that relieve Governments from funding infrastructure projects thus making such funds available for other sectors such as health, education and the like, for the benefit of the regional citizens.

It is the first operation of its kind in the SADC region and reflects the progressive execution of the SADC countries transport policy that is well defined in the SADC protocol on transport, communication and meteorology aimed at “increasing private sector involvement in railways investment with a view to improving railway net-work and service standards.”

The railway line connects South Africa to the industrial hub of Zimbabwe, contributing to increased trade between the two countries. By being a part of the shortest and most efficient transport corridor in the region, connecting South Africa and Zimbabwe through to Zambia and Democratic Republic of Congo, the new link is in great demand for transit traffic throughout the region.

SHAREHOLDERS

Beitbridge Bulawayo Railway’s shareholding comprises leading foreign, private investors and financial institutions namely, Nedbank Ltd, Old Mutual, Sanlam and Grindrod under the umbrella of New Limpopo Bridge Projects Limited (NLPI) with an 85% interest. Locally the National Railways of Zimbabwe holds a 15% stake in the company. The self-financed

The NLPI Group has contracted Grindrod Rail Consultancy Services to provide technical services.

CONNECTING THE CONTINENT

The BBR line has not only shortened the geographical distances between countries, turnaround time and efficiency, but it has primarily reduced the gap between the people of the region and access to modern infrastructure as:

Traffic moves through borders with minimum hassles. Shortened transit and wagon turn around times.

Same gauge railway implies that no transshipments of cargo from loading point to destination. Guaranteed availability of shared resources for international traffic. TheNorth-South corridor [Beitbridge Rail Corridor] is a 3,500 km continuous railway line run by 4 national railways and BBRwhichare all members of the Southern Africa Railways Association (SARA), running through South Africa, Zimbabwe, Zambia and DRC with anoption todivert traffic via Swaziland.

NEW LOCOMOTIVES

BBR has deployed 6 new 3,000 HP locomotives which have replaced the old smaller class 35 GE locomotives thereby improving the trailing load capacity and transit time. The locos are being used to move local traffic i.e. PPC traffic and transit traffic from Beitbridge to Victoria Falls using a block train operational concept which entails moving a load all the way from Beitbridge to Victoria Falls without breaking the load. This concept is more efficient and provides ourcustomers with a transit time of 30 hours over a distance of 814 km.

www.nlpi.net

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BUY ‘N’ BUILD

aving the right brands and the best quality products don’t define a great hardware store.

At Buy ‘n’ Build, that’s just the beginning. Supplying high quality, brand name products at affordable prices is important, but what really matters to Buy and Build Hardware is that we create a compelling alternative for customers seeking convenient and knowledgeable home repair solutions. Buy and Build Hardware strives to create a quick, in-and-out shopping experience with knowledge and personalised customer service and convenient ordering capabilities. With locations throughout Zimbabwe, Buy and Build offer exceptional service from our trained staff and are always available to help and ready to assist you with selecting the right hardware, electrical, plumbing, automotive, housewares, home improvement, paint, or lawn & garden supplies. In addition to specialising in commercial

Njombo Lekula, Managing Director

and homeowner hardware, we have an industrial sales division that caters to

up to September were the busiest period for the company and are often widely regarded as the peak period in Zimbabwe construction. “With the improved delivery thanks to our new palletiser at the factory, we were able to get more of our products out into the market, meaning a stronger brand presence for the consumer. We also had key marketing campaigns across various mediums which further drove our message across to the customer that PPC is the brand you can always rely on,” remarks Stephens.

PPC Zimbabwe has faced a series of further challenges in their sector over the last 18 months. The rising cost of manufacturing in Zimbabwe has hit an all time high, forcing many companies in the country to close their doors permanently. When you couple this with the ongoing currency depreciation in neighbouring countries South Africa, Botswana, Zambia and Mozambique against the US Dollar, the buying power of the bordering companies, who account for 15% of PPC’s turnover, is greatly reduced. PPC Zimbabwe is acutely aware that these short term

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our corporate customers, and a rental department which offers competitive rates on almost everything we sell. “What makes us different is how we respond to what we hear from our customers every day: It’s about this product, - the one I need right now.” Welcome Mabuza - Managing Director Tel +263 60051 Email sales@buynbuild.com

www.buynbuild.com

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impacts are a problem; the medium to long term outlook is much better for the business. “Having seen many companies, both in Zimbabwe and in neighbouring countries downsizing or closing their doors due to the economic situation in Southern Africa, I feel that although it is currently a problem, it will not be this way forever. Over the next three to five years, I am confident we will begin to see an upsurge in the cement manufacturing and construction markets, provided that we can get over the current economic impasse,” cites Stephens.

A Housing Backlog

Low income housing in Zimbabwe has become a matter of national importance. There have been a growing number of low income housing projects being created in the country, but not fast enough to keep up with the ever increasing number of families looking for a new home. With urban drift being cited as one of the main reasons, as well as a rise in the average cost of living, PPC Zimbabwe has jumped into the fray and begun looking at ways to help ease the backlog and create a system in order to find a solution. Although there is no magic wand that can fix this problem overnight, Stephens explains how PPC Zimbabwe will work on easing the house shortage: “Low income housing has become a sore point in the country. There are many

FREIGHT CONSULTANTS

reight Consultants Bulawayo Zimbabwe was established in 2005 by Mike and Lily Milne, who have over 40 years of experience in the freight industry. With immense knowledge of customs clearing and freight procedures by land, sea and air, Freight Consultants are able to offer our clients a professional service and believe in keeping our clients informed whilst we are handling their shipments. 127A Main Street Bulawayo Zimbabwe Tel +263 9 72920 |+263 9 72921 | +263 9 72923|+263 9 72926 Email cargoair@mweb.co.zw | freightcons@yoafrica.com

Bulawayo Cement Factory

Collen Bawn Plant

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M A N U F A C T U R I N G

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families who have moved out of the urban areas and into the surrounding areas as they can no longer afford to live in the city. The problem is that there are more people than there are houses available to put them in. We are looking at ways to become a big part of easing the backlog, but it will not be an overnight fix, it will take time, but we are prepared to give the necessary time for the projects.”

Training the New Generation

With a smaller talent pool than their neighbours in South Africa, PPC Zimbabwe has placed emphasis on in-house training for all new staff. In conjunction with parent company PPC Ltd, PPC Zimbabwe has brought in university students on placements to give them a feel for what the industry is really like. As well as university students, the company has an apprenticeship

PPC Zimbabwe has placed emphasis on in-house training for all new staff” scheme that hires more applicants than spaces available in order to educate pupils on the manufacturing sector. Now while this may seem a little odd, Stephens says that it is the perfect way to train up workers for the future of industry: “By bringing in more apprentices than necessary, we are actually giving people relevant training, who upon leaving our scheme will have the necessary skill set and qualifications to enter into the industry as opposed to having to find another way into a job. For every person we train up, it is another chance for them to help shape Zimbabwe’s manufacturing industry down the line, because you never know when you might just give a chance to someone who could help revolutionise the sector in a few years.”

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Launch of PPC Zimbabwe 42,5 Surebuild Cement “Promotion bag” handed to the Mayor, City of Bulawayo, His Worship, Clr M Moyo, August 2014

Colleen Bawn Plant

M A N U F A C T U R I N G

Bulawayo Factory

Moving the Company Forward With the success seen over the last five years and a record sales month in September, PPC Zimbabwe is looking at transferring this success from year to year. With the new plant coming online in mid-2016, continued investment in the current facilities and a dedicated employee base at the heart of PPC Zimbabwe, the company has all the right tools to ensure it remains a market leading specialist for the next 100 years.

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B E I G E

H O L D I N G S

Multinational M A N U FA C T URERS Beige Holdings have been working hard to bring in new clients and have signed contracts with major multinational clients including Beiersdorf and Henkel Beauty Care Writer Matt Bone Project Manager Ben Wigger

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ine months ago we featured an interview with Quality Products, a subsidiary company of Beige Holdings. In this issue, we spoke with Beige Holdings themselves to see how the broader company has fared during a difficult economic time. Many things can happen in nine months in the South African manufacturing industry. Currency depreciation coupled with inflation rising quicker than income means that companies can fold and takeovers can happen. But it is not all doom and gloom in the case of Beige Holdings, who during this time have expanded and filled the void created by competitors who have ceased trading. For Struan Robertson, Beige Holdings Group Sales & Marketing Manager, the last nine months has been a challenging but ultimately successful time for the company: “The last few months have seen many changes in the country. Companies are finding it increasingly difficult to post a profit or break even due to the constant material rises and reduction in product valuation. As we have always operated within realistic margins and budgets, we have remained afloat throughout this time.”

Depreciation of a Market

With the rand in constant fluctuation and very weak against global currencies, the price of doing business in South Africa has risen sharply. With the global recession still clearly being felt in the region, many companies have been forced to either be taken over by bigger companies or alternatively close altogether. With less competition in the market but inflated material prices, Robertson believes that as long as the company can continue to produce goods at cheaper costs, they have the perfect opportunity to

ride the ‘consumer demand’ wave. Imported goods have nearly doubled in price and as the manufacturing business relies heavily on imported goods and materials, the market is beginning to stagnate. “South African manufacturing has gone through a lot of changes in recent months. We have seen imported materials rising in price and as a lot of manufacturing relies on imported goods, this has had a significant effect on the market,” explains Robertson.

Expanding Strategically

Over the last 18-24 months, several multi-national companies have been using South Africa as a springboard to begin exporting their goods into Southern Africa. With less competition in the marketplace and new joint

South African manufacturing has gone through a lot of changes in recent months. We have seen imported materials rising in price and as a lot of manufacturing relies on imported goods, this has had a significant effect on the market” ventures in place, Beige Holdings have been working hard to bring in new clients and have subsequently signed contracts with two major multinational clients – Beiersdorf and Henkel Beauty Care. These new contracts will enable Beige Holdings to expand their reach into the neighbouring countries of Mozambique and Zimbabwe, giving

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B E I G E

H O L D I N G S

THE GREAT SUPPLY CC The Great Supply is a chemically orientated business which has been operational since 1991. We occupy premises in Westmead, Durban where we conduct numerous business activities. These include the construction of a pre made battery chemical pack, sale of raw materials in small pack sizes, speciality processing, toll manufacturing, manufactured detergent packing from start to finish and the sale of specialised fragrances and dyes. The diversity of our business operations allows for a wide range of customer requirements to be fulfilled. We aim to provide all customers with unparalleled service and quality. Tel +27 31 700 4168 Fax +27 31 700 3508

Our focus is on maintaining the stellar reputation and name of Beige holdings. It is all about ensuring excellent customer service and maintaining profit margins” them in-roads into the respective countries that had previously seemed strategically unviable. Manufactures already present in neighbouring countries Zambia and Mozambique have been faced with continued problems, including the lack of sustainable power from the national grid and industry material availability, both of which have led to a downturn in manufacturing productivity. “The contracts we have agreed on will see us move into neighbouring markets and with the current problems in the

Struan Robertson, Sales and Marketing Manager

manufacturing sectors in Zambia and Mozambique, we will be able to offer a product that may not be currently available in the country. It is not about taking their market share away, it is about bringing high quality products to a market that has a strong demand for consumer goods,” remarks Robertson.

Three Strikes, Still Not Out

In South Africa, strikes have become so prevalent that strike season has become an annual event. Between the months of April and July, all sectors

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came under fire from workers wanting to negotiate wages, working hours and other issues they felt aggrieved by. In the manufacturing sector, strike season can almost halt production across the board. The July 2014 strikes in South Africa hit the manufacturing industry very hard and forced several companies to shut their doors for good. One such industry to be hit was the manufacturers of plastic drinks bottles. This had a huge knock on effect as without the bottles, no drinks could be made and without the drinks, distributions and packaging companies lost large sums of revenue. Crystal Pack, a subsidiary of Beige Holdings, manufacture plastic bottles and although they suffered due to strikes, the company was able to remain open and have bounced back to help plug the gap in the market left by the companies who closed during the season. “Strike season in South Africa is always problematic, but this year it

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was difficult as it directly affected us. Multi-national companies invested in the surviving businesses, like Beige Holdings, and set about driving those businesses forward,” cites Robertson, who goes on to say: “In their eyes, the question and answer is simple; why invest in seven companies to do something can be done equally as efficiently by three?”

Middle Class Consumer Needs

With the rise of the middle class in South Africa, the homecare and personal care markets have seen strong growth over the last year, something that has been good for Beige Holdings. With home and personal care, two of Beige’s biggest product markets, greater emphasis has been put on ensuring that the consumer demand for these is met and exceeded. It will not be an easy market to compete in though, as fierce competition from other countries to fill this new demand for products has increased and Robertson is confident that Beige Holdings have a strong enough product portfolio to compete at the top: “With the backing of Beiersdorf and Henkel Beauty Care, we have a product range to compete at the highest level.

The middle class household wants to have the best domestic products and we plan on ensuring those products come from us,” remarks Robertson. One of the traits of a successful company is passing audits with flying colours, and Beige Holdings have done exactly that. All the current certifications both nationally and internationally, including ISO and JSE (Johannesburg Stock Exchange) company listing requirements have been passed with a perfect record. Robertson believes the clean audits are a good indicator that the business is conducting itself professionally and successfully: “Our focus is on maintaining the stellar reputation and name of Beige Holdings. It is all about ensuring excellent customer service and maintaining profit margins. The audits we receive are simply a byproduct of good service and a keen attention to transparent business activities.”

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C U M M I N S

S O U T H

THE

A F R I C A

engine OF

ummins SA design and manufacture industry leading and innovative filtration and air intake products for diesel engines and gas powered equipment in sub-Saharan Africa. Formally established back in 2010, Cummins SA is the African operation of Cummins Inc., who since 1946 have had a footprint on the continent and launched its first African manufacturing plant for filtration services in 1998. Since that time, the company has built a stellar reputation in pioneering technology and first class aftermarket support and service. From their headquarters in Kelvin, Johannesburg, Cummins

has expanded to include approved dealers in Madagascar, Malawi, Mauritius, Namibia, Swaziland and Zambia and employ over 1,000 staff directly and 3,000 indirectly. On the back of this expansion and development in Africa, the Johannesburg office has become the nucleus for the African operations with the company having additional subsidiary companies in Botswana and Zambia.

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Cummins South Africa serves the varied needs of its customers with world class coolant, filtration and fuel additive products.

From air filters offering multi layered protection specifically optimised for the rough African landscape, to coolant systems designed to operate at cold or hot temperatures, Writer Matt Bone Cummins SA have worked tirelessly to ensure that all Project Manager Arron Rampling of their products are held to the highest international standards. The company proudly hold internationally accredited ISO Certifications 9001:2008, 14001:2004 Products for the Markets Diesel engines and generators play a vital and OHSAS 18001:2007. Cummins SA are strong role in various African markets, ranging from off-road trucks to cell tower power advocates of sustaining generation. However, the engines, while a cleaner, healthier and sturdy and built to last, are no match for safer environment by going Mother Nature and on a continent with a further than just safety and very diverse and demanding topography, industrial compliance. The ensuring that those engines remain in business proactively seek running smoothly is imperative. Two improvements to products of the biggest problems for engines on and procedures and will the continent are remaining at optimum continue to not only offer running temperature during the day environmentally friendlier and ensuring dust, sand and other goods, but constantly particles are kept outside the engineâ&#x20AC;&#x2122;s refine and reinvent those inner workings. Cummins SA have been products to be even manufacturing and selling cutting edge greener without technology designed to combat and compensating reduce the probability of engine failure for due to either problem. performance.

Cummins SA are strong advocates of sustaining a cleaner, healthier and safer environment by going further than just safety and industrial complianceâ&#x20AC;?

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Donâ&#x20AC;&#x2122;t Throw Away; Re-build

Even though all Cummins products are developed and manufactured to the highest level, sometimes parts do go wrong and require replacing. With this in mind, Cummins SA offer round the clock customer service and sales of Cummins OEM and ReCon (reconstituted) parts. All Cummins ReCon parts go through a thorough five step remanufacturing process including complete disassembly, cleaning, inspection, restoration and testing. At the end of this process, the ReCon parts are as good as new - and sometimes even better - thanks to Cummins using the latest upgrades in design, new materials and manufacturing technology throughout their processes. With the market for ReCon parts growing in Southern Africa due to the recession, many companies have found they lack the financial power to continually buy new products. With this in mind, Cummins SA have provided the perfect solution to keep the driving force of the business running at peak performance. All of the parts that are reconditioned are worked on by a team of highly skilled engineering staff who not only have extensive knowledge of the parts, but also the technical skills to reconfigure and rebuild the components.

Cleaner Emission Solutions

With the global push to reduce CO2 emissions across the entire world, Cummins SA have stepped up to the challenges with gusto. The company design, manufacture and distribute leading aftermarket exhaust technology and commercial solutions for many vehicle specifications such as off-road trucks, light and heavy vehicles and high horsepower engines. With increasingly stringent regulations concerning emissions being introduced by governing bodies, Cummins Emission Solutions are dedicated to developing systems and products that produce lesser levels of air contaminants while maintaining the need for smarter fuel efficiency and performance for the customer.

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REAGOLA IT SERVICES

EAGOLA IT Services (RITS), an ICT company, is a level 1 BBBEE entity which is 100% Black owned with a 50% shareholding by a Black female. The staff complement is currently 120 spread across locations in Randburg, Cape Town, Durban, Nelspruit, Bloemfontein and Port Elizabeth. As can be seen from our service offerings below, we are able to provide end to end services in the infrastructure space and have partnerships in place for Software products or services that clients may require: Procurement Centralised infrastructure support De-centralised infrastructure support LAN & WAN including cabling Stock management E-Waste 50 Seat Disaster Recovery facility Microsoft services e.g. SCCM , SCOM, Exchange, Active Directory etc. Call Centre Services i.e. 1st line, inbound & outbound Mobile services Repairs workshops Our association with Cummins has been hugely beneficial as we were introduced to world class standards and very professional ways of doing business. We are looking to increase our involvement with Cummins by providing our services into the African countries they have a presence in. Tel +27 877003591 Email info@rits.za.net

www.rits.za.net

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It is not just the reduction of CO2 that is being highlighted globally at present but also a reduction in levels of NOx (Oxides of Nitrogen), Hydrocarbons (a key component of smog) SOx (Sulphur Oxide) and CO (Carbon Monoxide). One of Cummins SA products, the Selective Catalytic Reduction unit (SCR) has played a critical role in reducing the level of NOx being pumped into the atmosphere in Africa and Europe. The reducing unit works by mixing an agent with NOx to change the pollutants into Nitrogen, Water and small levels of CO2, all of which are natural elements found in the atmosphere and more eco-friendly than its original compound. SCR’s are manufactured in the Cummins facility in Pretoria and as of 2013, over 500,000 units have been built and distributed across the continent and into Europe. This mammoth milestone is a testament to the dedication of the company in trying to create a greener

SCR’s are manufactured in the Cummins facility in Pretoria and as of 2013, over 500,000 units have been built and distributed across the continent and into Europe” future for all and showcases industry willingness to comply with regulations and to lessen their own carbon footprint.

Values to Do Business By

All successful businesses have a creed and ethos by which they conduct themselves in all aspects of their work. For Cummins SA, these values are the very basis of what drives the company forward. The values set out for the whole Cummins brand are focused on ensuring that the company is always looking to better both its own products and the impact they have on local and international industries.

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SANDOWN COMMERCIAL VEHICLES

andown Commercial Vehicles has three dedicated Freightliner dealerships to offer customers with Cummins-powered trucks the full spectrum of products and support services, including transport consultancy, parts and service operations. The combined strength of Sandown Commercial Vehicles allows for a service offering to from owner- operators to large national fleets and enhanced value and quality through greater focus on core competencies and dedication to the trucking business. We understand the trucking needs of customers with Cummins-powered Freightliner vehicles and strive to meet their demands on time, every time. We are a Level 2 BEE contributor. Tel +(012)621-7400 Tel +(011)611-2100 Tel +(021)948-0684

CUMMINS COMPANY VALUES

Integrity: Strive to do what is right and do what we say we will do. Innovation: Apply the creative ingenuity necessary to make us better, faster, first. Delivering Superior Results: Exceed expectations, consistently. Corporate Responsibility: Serve and improve the communities in which we live. Diversity: Embrace the diverse perspectives of all people and honour with both dignity and respect. Global Involvement: Seek a world view and act without boundaries

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Committed to keeping your Cummins-powered Freightliner Running Smart Sandown Commercial Vehicles is the one-stop service provider for your Cummins-powered Freightliner. With three dedicated Freightliner dealerships – and the backing of Sandown Motor Holdings and MercedesBenz South Africa – you can count on Sandown Commercial Vehicles for world-class sales, parts, and service support.

Sandown Commercial Vehicles Centurion 1 Park Avenue North Highway Business Park Rooihuiskraal, Centurion (012) 621-7400

Sandown Commercial Vehicles Roodepoort 1141 Leader Avenue Stormill, Roodepoort (011) 611-2100

Sandown Commercial Vehicles Bellville Corner Brug & Isotope Street Stikland, Bellville (021) 948-0684

Established 1982

Sandown Motors is a Level 2 BEE Contributor

Distribution of Power Although Cummins SA works predominantly in the filtration and emissions solutions markets, they also have an extensive distribution network across the continent, specialising in the supply of genuine Cummins products. Cummins Inc. have an extensive portfolio of goods ranging from diesel engines, generators and fuel systems, all the way through to electronic control modules and turbo chargers. The overall goal of Cummins is to bring more of their products to more countries via the supply network in Africa and with the building of new regional distribution centres- such as the one in Ghana -this goal is becoming closer than ever. The new RDC (Regional Distribution Centre) opened in July this year and will not only create more jobs in the country but by having a hub for supply in the country, fulfilment turnaround times for stock orders and urgent orders are greatly lessened. With the RDC in Ghana allowing Cummins a gateway into the Western African markets, it will only be a matter of time before the company launches a new RDC in Africa, furthering the expansion of Cummins SA’s already sizeable supply network.

IDS Technologies, founded in 2001, have been providing ‘State of the art’ video surveillance, access control and alarm technologies to the market over the last decade, successfully completing many projects. Due to our infrastructure, we feel that our company in a position to maintain electronic equipment anywhere in the Republic of South Africa and neighbouring countries. Our company is responsible for maintenance and installations in the security industry and we also offer rental options on all our equipment and products. • CCTV & IP CCTV • Remote offsite monitoring – CCTV • • Access control • Alarm systems • Fire panels • • Wireless networks • Optic fibre • Time and attendance • • Mobile DVR’s – Vehicle tracking • • Electric fencing – Certificates of compliance • • Complex intercom systems •

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A Reputation Built on Employees

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Cummins SA takes great pride in their products and their ability to serve the needs of their customers. The company believes that it is the creativity and commitment of their employees that makes it possible for the company to remain market leaders across the continent. Having invested in training their employees to a high standard and giving them the necessary tools and services to do the best job possible, Cummins SA are confident that satisfaction among employees will in turn lead to satisfaction among consumers by means of innovative products that are created by innovative employees. It is not just the engineers and designers that have made Cummins SA such a strong company but also the outstanding customer service and assistance employees provide clients on a daily basis. Cummins SA believe in keeping customers for life and in order to do this, they aim for total satisfaction with every aspect of the business, from products to servicing and customer service. The company also conduct customer satisfaction surveys, work with focus groups to better understand the consumer drivers and meet with customer councils. Cummins encourage customers to get in touch with them and offer suggestions on how they can better their customer satisfaction and services through various channels such as social media and online contact forms.

Supporting the Industry and the Environment With renewable energy projects in South Africa growing, Cummins SA have been quick to align themselves with the developments. In 2013, the company supplied power generation to a R3 billion solar project during its construction phase in the form of 19 Cummins Power Generation 17 kVA single-phase generator sets which ensure dependable power backup for the plant’s onsite motor control centres. Cummins SA sees CSR (Corporate Social Responsibility) as not just investing and participating in social programmes, but as the development of a social profile that has a responsibility to use parts of the company’s resources to respond to the needs of society. Cummins SA’s success as a company will be influenced by their ability to appreciate and comprehend the societies where they do business and with 15 community involvement teams in Africa,

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communities can be sure that their thoughts and feedback will be heard by the company. Cummins believe community participation not only builds positive communities but also helps entice the finest employees who want to make a difference in their communities in any way possible. With a strong, creative and resourceful workforce designing and manufacturing revolutionary products for the market, Cummins SA have quickly become one of the most dominant players in the sub-Saharan African diesel engine products and service technologies industry. With the continued investment in African expansion from Cummins Inc., the company’s footprint will continue to grow steadily backed by a customer base who demands only the finest products from the finest company, something Cummins SA are renowned for.

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G R I D C O

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PowerDelivery GHANA’S BACKBONE TO

As the company celebrate their sixth anniversary, GRIDCo’s growth is much stronger than anticipated Writer Emily Jarvis Project Manager Arron Rampling

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he 1st August 2014 marked the sixth anniversary of the operationalisation of the Ghana Grid Company Limited (GRIDCo); a great achievement for both the company and Ghana’s power generation industry. Since its incorporation in December 2006 as a private limited liability company, GRIDCo’s strategy has been to develop and promote competition in Ghana’s wholesale power market by providing transparent, non-discriminatory and open access to the transmission grid for all the participants in the power market, in particular for the power generators and bulk consumers and thus ensuring efficient power delivery for all. The company became operational on August 1st, 2008 following the transfer of the core staff and power transmission assets from VRA to GRIDCo. The company was established in accordance with the Energy Commission Act, 1997 (Act 541) and the Volta River Development (Amendment) Act, 2005 Act 692, which provides for the establishment and exclusive operation of the National Interconnected Transmission System by an independent Utility and the separation of the transmission functions of the Volta River Authority (VRA) from its other activities within the framework of the Power Sector Reforms.

Ghana as a Gateway to the West African Market With Ghana’s strong desire to establish itself as a gateway to the West African market, key supporting factors such as resources and power generation are required for the country to reach its goal of becoming a middle-income country. Following the successful commercialisation of its oil reserves, Ghana is in a position to raise additional

public funding for infrastructure in order to address the country’s needs, which puts GRIDCo in a strong position. “Continuing to exist through these times in Ghana has been a great achievement in itself, but to prosper and grow as we have done during these six years is particularly satisfying, and makes me feel extremely proud of the GRIDCo team,” the CEO said in a message to its employees and customers. “It is only thanks to the teamwork we have built around a diversity of skills, backgrounds, ages and personalities, your commitment, loyalty and patience that we are still here today.” The CEO equally acknowledged their fruitful partnership with the government, board, management and staff, saying he expects this collaboration to reach new heights in the future “as we continue our climb to the top of the class”.

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Ghana’s most pressing challenge lies in the power sector, where the lack of reliable power is a major constraint to economic growth. As a result of rising remand, the government has plans to address the energy supply gap by increasing its power generation capacity to 5,000MW within the next four years. Due to their unwavering determination to be the best in Ghana’s power sector, GRIDCo have worked through many challenges successfully, developing a better understanding and appreciation for the forces that drive the electricity generation industry. “We can assure all that we not only get better every year, but we are not yet the best we can be; we can always get better,” says the CEO. Further, GRIDCo have their customers to thank for supporting the company over the years, recognising them as the backbone to their power delivery and services.

Company Developments

In 2012, GRIDCo added five substations to the grid and increased their transformer capacity in their substations from 2,200 MVA to 3,400 MVA - an increase of about 55 percent

capacity. “We built and commissioned new state-of-theart real time System Control Centres and increased the power transmission capacity to Accra from Akosombo with the stringing of the 4th Circuit Transmission Line,” the CEO’s statement says.

From day one, there was a vision, passion and excitement and an incredible dedication on the part of our staff to ensure that we succeeded” Since 2008, the company have initiated 29 projects out of which 11 have been completed, 13 at different levels of completion and 5 that are to commence between now and 2015. This includes doubling transformer capacity in about 20 single transformer substations. Over the years, GRIDCo have been decentralising their operations and have now increased their

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STELIN AUTOMOTIVE AND TRADING COMPANY

telin Automotive and Trading Company is a leading importer of brand new Toyota saloon, commercial and SUV and four-wheel drive vehicles in West Africa. For the last 20 years, we have been serving customers in diverse fields, including government, mining, oil and gas, construction and financial services with exclusive brands, models and spare parts backed by excellent after-sales service through our talented team of professionals. We are proud to be associated with Gridco through their fleet of Toyota vehicles and continued excellent after-sales service support. This fleet includes a range of Toyota Land Cruiser 70 pick-up trucks, the Personnel Carrier, Hilux Pick Up truck and Land Cruiser Station Wagon. Tel +233 302222375 | +233 302250566 Email stelinauto@gmail.com

work areas from five to seven, further decentralising their maintenance and operations work to ensure they can tackle network challenges. Additionally, the company has grown their human resource base from 657 in 2008 to over 800 employees scattered around some 56 substations across Ghana. “Indeed, we will continue to pursue our projects and programmes with increasing dedication and discipline to provide the best of services to our consumers,” the statement adds.

GRIDCo’s Operations Grow Stronger Every Day As the company celebrate their sixth anniversary, Dr Ansah says GRIDCo’s growth is much stronger than anticipated: “The investments in our business operations have grown steadily with increasingly strong financial and operational performance flowing directly from

the Corporate Strategy and Five Year Capital Investment Programme we rolled out in our first year of operations.” This is all thanks to the CEO’s vision to succeed in Ghana. “As I have continuously said in the past, we are where we are today because from day one, there was a vision, passion and excitement and an incredible dedication on the part of our staff to ensure that we succeeded. Throughout our operations, we have demonstrated commitment, perseverance and resilience in the pursuit of quality and excellence in our work,” he proudly says in the statement. The future for GridCo looks bright as several strategies and programmes have been launched that enable stakeholders to obtain further knowledge of the power section and plan their activities accordingly. Among these plans are the Generation Master Plan, which serves

as a long-term blueprint for public and private sector investment in generation system development; and the Transmission System Master Plan that will complement the former. These, combined with the completion and commissioning of substation projects in Ayanfuri and Buipe, and the upgrading of a number of substations, have increased the transformation capacity across the

In 2012, GRIDCo added five substations to the grid and increased their transformer capacity in their substations from 2,200 MVA to 3,400 MVA - an increase of about 55 percent”

grid. “Additionally, we can see major substations coming up in Tema, Accra, Kintampo and Kumasi which we are looking to modernise the National Interconnected Transmission System; making it more robust, and providing the required system reliability and efficiency levels,” the CEO comments. The message from the CEO concludes by enforcing that: “In the ensuing years, GRIDCo will build on its strength and work to consistently create a very dynamic institution that will continuously make reliable and quality transmission of power its hallmark. Ultimately, our goal is to bring satisfaction to all electricity consumers and give personal and professional fulfilment to our staff across the country. This can only be achieved through effective collaboration with VRA and ECG in the achievement of the power sector policy objectives of the government.”

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H W A N G E

C O L L I E R Y

Colossus ZIMBABWEâ&#x20AC;&#x2122;S COAL

Hwange Colliery has strict internal policies whose objective is to guarantee ontime delivery for all customers and an excellent handle on health and safety throughout its mining and processing practices Writer Emily Jarvis Project Manager Glen Newton

wange Colliery Company Limited is in the business of mining and processing coal, production of coke and related by-products. The company aims to produce more than five million tonnes of coal per annum in order to satisfy both the domestic and key export customers. Hwange is the leading coal producer in Zimbabwe and supplies the nationâ&#x20AC;&#x2122;s requirements, including low phosphorus coal and coke. The largest

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coal consumer, Hwange power station, is situated adjacent to the mine and currently takes about 180,000 tonnes per month of HPS coal which is delivered to the power station as an opencast runof-mine product from the upper portion of the coal seam. The lower portion of the seam comprises high quality coal with coking attributes and provides feedstock for metallurgical processes both within and outside Zimbabwe. Further, the higher quality coal from the lower portion of the seam is sold after processing through local distributors

Coking Coal (HCC) raw coal mining capacity to levels consistent with the established demand as well as providing opportunities for a consistent supply of low phosphorous coal from the dragline pit that has the greatest potential to capture new markets both locally and for exports,” says Thomas Makore, Managing Director of the Hwange Colliery Company.

Hwange – A Self-Sustaining Coal Town

CHABA MINE

HIGHLIGHTS for use in agriculture, mines and associated industry, homes as well as three smaller thermal power stations in Bulawayo, Harare and Munyati.

Chaba Mine

Operations at Chaba Mine were commissioned in February 2006. The mining operations, which commenced with overburden production so as to expose coal, produced the first tonne of coal in April 2006 and an overall 22,563 tonnes was mined in the same month. “The mine’s monthly output has steadily increased since then. It was developed as a new strategy to exploit the Chaba East shallow coal reserve as this presented the best option to preserve Hwange

Reserves: 52 million tonnes Planned production: 200,000tpm (tonnes per month) Life of mine: 21 years Exposing coal for bulk testing Used as a strategic pit for current operations

Zimbabwe’s leading coal producer, Hwange Colliery is located in the remote western tip of the country, at Hwange town. Although remotely located, it is however far from being isolated, as just next door is the beautiful Hwange National Park and, only one hundred kilometres to the northwest, is Victoria Falls, one of the natural wonders of the world on the mighty Zambezi River.“To speak of Hwange town is to speak of Hwange Colliery Company. It is a mining town, a company town, a coal town, which, owing to its remote location, has developed a self-contained community with a population of about 55,000”, Makore comments. All services associated with local and central government – from road maintenance to refuse collection, water and power reticulation, schools, health, housing, recreational facilities and sewage disposal – are provided by the Hwange Colliery. Furthermore, it operates its own railway and road transport system, internal security and telephone system. As a self-sustained community, adequate shopping, postal and banking facilities are provided by Hwange. The company has provided to the locals - amongst other things an 18-hole golf course, tennis, cricket, bowling, squash, badminton, angling and boating clubs and has a football team playing in the country’s Buddie Premier Soccer League. Additionally,

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H W A N G E

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the company provides and maintains suitable housing for all 3,200 employees and owns and operates a large, modern and well equipped six ward hospital, the biggest in Matabeleland North outside Bulawayo, which is staffed by seven doctors and other professional staff. “The health and wellbeing of our employees is very important to us, it is a significant part of our company ethos,” cites Makore. Hwange Colliery fulfils the energy needs of the whole nation via its mining and processing of coal. The economy of Zimbabwe is of great strategic importance, as coal is a vital source of energy found in abundance in the country.

Safety, Environment and Customer Service First Hwange Colliery Company Limited places safety at the very top of their priorities and Makore was keen to highlight these measures as pivotal to their success: “Our quality policy is implemented through a Quality Management System which is based on the ISO 9001:2008 certification. The aim of this policy is to ensure that the company is and remains customer focused and continuously strives to improve its working practices.” In terms of equipment, the company always provide employees with adequate safety tools and knowledge in order for them to work safely. On the other side of the coin, Hwange Colliery recognises that customers have a choice and will seek other suppliers if they do not satisfy their requirements. “We understand that we are in a competitive market in Zimbabwe and as such, our job is to stand out from other companies through our strict policies and customer focus,” affirms Makore. “Indeed, we are constantly learning from customers and adapting to industry changes in order to improve

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We are constantly learning from customers and adapting to industry changes in order to improve product quality”

product quality. We recognise that coal is a natural product liable to natural variability and shall take all measures to manage and to control this variation within customer’s specifications.” With quality review meetings held quarterly, Hwange Colliery regularly improves its business, product offering and employee performance. When it comes to environmental sustainability, the Colliery is committed to the principle of integrated environmental management and continues to invest time and funds in striving for greater harmony between its operations and the ecologically sensitive environment in Zimbabwe. Of the two mining methods, opencast mining is more destructive to the environment in that to get access to the coal seam below the surface, the land has to be stripped bare of its vegetation. The mixture of fireclay, carbonaceous mudstones and shales

found in the overburden material encourages the process of spontaneous combustion. To correct this, Hwange Colliery has in place a rehabilitation program which involves covering burning spoil piles with inert supplementary stripping material to suppress the fires and starve them of oxygen. This material is then levelled and contoured before agricultural lime and fertilisers are added. Indigenous trees and grasses are planted at the start of the rainy season to re-vegetate the land and thus encourage fauna to return to their natural habitat. The principle of developing self-sustaining eco-systems is followed. Additionally, Environmental Impact Assessments (EIA) are part and parcel of any future expansion programmes at the mine in accordance with the requirements of Zimbabwe and International Legislation. Hwange Colliery ensures that its marketing department liaises closely with the production departments in order to align their customer commitments with production capacity. Combined with the above internal policies, Hwange strives for guaranteed on-time delivery for all customers and an excellent handle on health and safety.

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Swakop Uranium is constructing and developing the Husab uranium mine, approximately 65km by road from the coastal town of Swakopmund in Namibia Writer Emily Jarvis Project Manager Tom Cullum

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Eleven giant Komatsu haul trucks have been assembled and handed over to the Husab project mining team.

wakop Uranium was established in 2006 to explore, evaluate, develop and produce uranium oxide as a source of fuel for low cost, environmentally-friendly, nuclear power. Swakop Uranium has identified as its first task “to deliver to its shareholders and the Namibian nation one of the largest and most efficient uranium mines in the world,” says Swakop’s Director: Communications and Stakeholder relations, Grant Marais. Cementing its place as one of the largest resource drilling projects globally, Swakop Uranium has completed over 800,000 metres (or 800km) of combined reverse circulation and diamond core drilling since April 2006. The Husab area was targeted as an exploration area of interest in 200607. The geological reasoning behind this was that similar rock formations to those hosting the Rössing Mine to the north were interpreted to be concealed beneath the desert plain in the northern part of Swakop Uranium’s Exclusive Prospecting License (EPL). The discovery holes were drilled in late 2007, the chemical assay results for the three discovery holes were returned from the laboratory in early 2008 and released to the market in February 2008. Until April 2012, Swakop Uranium was a 100% subsidiary of Extract Resources, an Australian company listed on the Australian, Canadian and Namibian stock exchanges. However, in April 2012, Taurus Minerals Limited of Hong Kong became the new owners following a successful takeover of Extract Resources. At the end of June 2014, Swakop Uranium moved its corporate head office from Windhoek to Swakopmund. The new offices, previously owned by Areva, will be referred to as the Husab Tower.

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Namibia is an investor-friendly country which has a great attitude towards foreign investment and securing the technical skills required for the job”

Husab Uranium Mine Project Details in-Brief

Swakop Uranium is constructing and developing the Husab uranium mine, approximately 65km by road from the coastal town of Swakopmund in Namibia. The mine is planning first production by December 2015 and will reach nameplate production by 2017. The Namibian government granted Swakop Uranium a license on 30th November 2011 to develop the Husab mine, a project that will create about 1,584 permanent jobs and an additional 6,000 temporary jobs during construction. This will increase the number of people employed in the Namibian mining sector by approximately 17%. The project will furthermore create up to 16,000 indirect job opportunities as a result of the mining-multiplier effect. The Husab project officially kicked off on 18th April 2013 with a groundbreaking ceremony on the mine site.

Just over a year later, on 8th May 2014, the start of mining operations was declared officially open by the Namibian President, His Excellency Hifikepunye Pohamba. On the previous day, the permanent road from the B2 transport route to the Husab mine was officially opened by Namibia’s Founding President, HE Dr Sam Nujoma. The road project included a 160m bridge over the Khan River, linking the mine to the main B2 transport route leading to Swakopmund. This is the longest bridge built in Namibia since the country’s independence in 1990. The surfaced road connecting the mine with the Namibian road network, stretches over 22km. Swakop have received exceptional support in constructing roadways, water and power networks to the mining site. “Namibia is an investorfriendly country which has a great attitude towards foreign investment

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To signal the start of mining operations on the Husab project, HE Hifikepunye Pohamba, President of the Republic of Namibia, and other high ranking dignitaries set off a virtual blast accompanied by a loud bang. With the President are form left Mr Zheng Ke Ping, Swakop Uranium’s CEO, Mr Cleophas Mutjavikua, Governor of the Erongo Region, HE Dr Sam Nujoma, the Founding President of the Republic of Namibia, Hon Isak Katali, Minister of Mines of Energy, HE President Pohamba, Mr. Wang Yiren, Deputy Minister of China Atomic Energy Authority, Mr He Yu, Chairman of China General Nuclear Power Company (CGN) and Mr Zheng, Senior VicePresident of CGN.

and securing the technical skills required for the job,” says Marais. Husab is being developed as a low-risk, conventional, large-scale load-and-haul open pit mine, feeding ore to a conventional agitated acid leach process plant. The mine has a potential life of more than 20 years.

Developing Namibian Infrastructure

Since the Husab project was officially approved in October 2012, Swakop Uranium has made significant progress. Construction of the 37 hectare Husab contractors’ village is complete. The village is a showcase in Namibia, comparing well with the standards of mining companies around the world. Before officiating at the Commencement of Mining Operations on 8th May, President Pohamba visited the Husab project construction village. He inspected the living quarters, the dining room,

Various nationalities and cultures are represented at the Husab project, all working in unison towards the same goal.

Swakop Uranium involved a group of scientists to assist with the removal of some of the Welwitschia plants that had to be sacrificed because of the construction of the Husab mine and associated infrastructure.

the kitchen, the ablution facilities and recreational areas. He also spoke to several of the residents in the village. During his speech later in the day, he praised Swakop Uranium on the excellent quality of the accommodation facilities in the village, where up to 4,000 workers will be housed during the life of the project. “The facilities are even better than some Windhoek hotels,” he said. He further encouraged workers to cherish the employment opportunities at the Husab project: “As a national workforce, Namibians should all focus on improving their productivity,” he said. By the end of August 2014, the onsite project workforce stood at 3,500, of whom 87% were Namibian citizens. “Higher levels of Namibian citizens are targeted as we reach the production stages, as local human capital is important to us,” Marais adds.

His Excellency Hifikepunye Pohamba (left) and Mr He Yu, Chairman of Swakop Uranium’s shareholder, China General Nuclear Power Company.

Swakop Uranium has also confirmed plans to build a 500,000 tonne sulphuric acid plant at the mine. Sulphuric acid is a key chemical used to recover uranium in an ore body. Construction of the sulphuric acid plant will start in October 2014. The Husab mine is expected to utilise all the sulphuric acid produced at the envisaged plant. Additional acid, if needed, will be imported or sourced locally.

Swakop Uranium Foundation Trust, assisted the Asser Kepere pre-primary school in Arandis, to build a fence around the school and fix the cracks in the classroom walls.

Operational Readiness Programme

In the meantime, Swakop Uranium has started filling permanent positions well in advance of the opening of the mine as part of the Operational Readiness Programme. This will ensure that staff will be sufficiently trained and ready to hit the ground running. To this end, Swakop Uranium has initiated a scholarship programme to reduce the skills shortage in various fields in the longer term, signing

Grant Marais - Director, Communications and Stakeholder Relations

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Civil construction and thickener steel construction of the Counter Current Decanting (CCD) area.

Swakop Uranium gives special attention to the recruitment of females in a male dominated mining world.

Stripping activities in Husab’s Zone 1 pit. After twenty years of mining, the Zone 1 pit will be about 3km long, 1km wide and 412m deep.

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various agreements with Namibian universities. “Where possible, we will take students on for work experience and tours in order to develop the human population of the country,” Marais states. Moreover, Swakop Uranium publically supports the Namibia Institute for Mining Technology (NIMT) and continues to assist in skills development for unemployed individuals. Graduates will be afforded the opportunity to develop their skills and gain experience with Swakop Uranium through a structured graduate training programme, thus providing the base to develop future leaders. To ensure development to a postgraduate level, the company will sponsor highly motivated and talented Namibians to study abroad and obtain postgraduate Master’s degrees at a university in China. Junior level employees will have specific training programmes to ensure upward mobility in the organisation. The mining training programmes are on-going and progressing very well. Six simulators were delivered to site and are in full operation supporting the training programmes.

SHER Policy

Safety is the most critical element to any construction or mining business and Swakop are proud to have completed approximately 3 million man hours without accident. “This reinforces the entire safety culture we have put in place. We would like our workers to go home in the exact same state they arrived at work. Our rigorous SHER safety programme ensures safety above all,” Marais highlights. Environment and health are also equally as important to make sure that radiation levels remain at low levels. “Our Safety, Health, Environment and Radiation policy manages any and all aspects of safety in the workplace accordingly,”

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Marais comments. “Mining is not just about extracting ore. For us, it is more important that we create a sustainable future for the area in which we are developing the Husab mine; in particular focusing on the socio-economic side of the business which we feel is in dire need of assistance.” As such, Swakop Uranium have put in place a sustainability programme that looks after the triple bottom line. What’s interesting about the location of the Husab project is that it is built in the native area of the endangered Welwitschia plant. This 1,500 year old plant grows extremely slowly and is only present in parts of Namibia and Angola. Swakop Uranium have taken it upon themselves to preserve the plant as Marais further explains: “We want the environment to be as close to what it was before we were present here, to preserve these plants for the next generation. Consequently, we have invested significant resources in researching this plant and its root structures, placing a GPS point to the 50,000 we have discovered in the area; photographing each one and recording their state of health, gender and size. We have even moved roads to avoid disrupting the Welwitschia plants, and of course this is not just limited to preserving this one form of vegetation; it extends to all plants and trees in the area.”

Community Involvement Swakop Uranium firmly believes that the company’s reputation will not only be measured on their exploration, mining activities and contribution to the economy, but will be affected by the manner in which the company conduct themselves through interaction with the broader Namibian community and the environment. Swakop Uranium has therefore committed itself to social

Nine Swakop Uranium bursary holders had the opportunity to expand their practical knowledge when they completed internship stints at the company between June and August 2014.

A section of the 22km road that runs from the B2 highway to the Husab Mine. The road offers one of the most beautiful drives in Namibia.

The Founding President of Namibia, His Excellency Dr Sam Nujoma, unveils the solid granite road marker at the B2 turn-off to the Husab mine. The marker weighs a massive 34 tonnes.

and empowerment aspects such as local procurement, local recruitment, involvement in social responsibility programmes, training, education and sound environmental management practices. Swakop Uranium attaches great importance to its goal of localisation in Namibia. “An example of our commitment to local suppliers is Ben Kahirimana of Office Experts, who have grown their businesses exponentially by offering core services to Swakop Uranium and to the growing communities around them.” Marais speaks for the entire company when he surmises that Swakop Uranium herald a great importance in developing the people of the Namibian region in a sustainable manner: “We are very proud of our achievements within both the community and the Husab mine project, and are committed to supporting the Namibian economy.”

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Enriching Airtel Sierra Leone are investing millions on the modernisation of their network towers and a new data centre in the country Writer Matt Bone Project Manager Donovan Smith

ome companies enter into an industry purely to turn a quick profit and make a quick exit, whilst others enter into a market to really make a difference with their products. In the case of Airtel Sierra Leone, the overriding goal for the company is to continue offering “life enriching and life impacting” services for the people of Sierra Leone. Sudipto Chowdury, Managing Director of Airtel Sierra Leone, has set his companies sights on connecting the region by offering several convenient and market leading services including the widest availability of 3G data capabilities across the country, mobile banking and a customer service you can rely on: “With a country like Sierra Leone, there are many regions that are

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Impacting rural and cut off from the main towns and cities. Here, telecommunications play a massive role in bringing people together and connecting them with each other and the outside world as well. What I want to do is use Airtel’s services to connect the region and provide services which enrich the lives of millions of Sierra Leoneans.”

Network Modernisation

Airtel Sierra Leone has invested over US$180 million in the renovation, modernisation and upkeep of their network towers and the creation of a state-of-the-art data centre. The new data centre will house an IT data centre and a telecom network switching centre, becoming an integral part of Airtel Sierra Leone’s telecom and data infrastructure. As the leading telecommunications provider in Sierra Leone, Airtel constantly strive to bring in the latest technology for their infrastructure development for the benefit of their customers and Chowdhury believes the new data centre will fit the bill: “This new data centre fits right into our strategy. It provides fast expansion as well as activation of both new telecoms and data services to meet increasing customer demand. Once

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CONCIEL Our team’s passion for creativity and a drive to deliver results have contributed to the success of CONCIEL

ounded in 2005, with a focus on providing clients with management consulting and IT solutions, CONCIEL has expanded over the subsequent years to become a business tasked with solving its customers’ mission-critical problems through the innovative application of technology and expertise. Driven forward by a team of people, who together are empowered to go the extra mile for its clients by delivering outstanding value and productivity, CONCIEL has always believed that its success has been built upon the fact that it creates fundamental and tangible results in all of its competence areas. The products and solutions that we design and implement for our clients themselves fall under three headings, which include data centres and telecommunications infrastructure, energy products and software solutions to complement them. Our engineering services are very much focused towards the telecommunications and data centre aspects of our business. When it comes to the latter we are able to design data centres from the ground up, so from the building of the structure to the installation of mechanical and electrical requirements, right through

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to the supply of relevant products and equipment and their implementation. CONCIEL operates in Nigeria, Sierra Leone and the Congo, with future expansion plans into Kenya. Currently our expansive range of clients reside in the telecommunications, oil and gas and water industries, and this year we penetrated the banking sector by offering a mobile money solution.

SAAS SOLUTIONS

Our wide range of software products include Electronic Document Management Systems (EDMS), Computerised Maintenance Management Systems (CMMS) and Risk Business Inspection (RBI) tools, Data Centre Information Management (DCIM), telecom operator billing and price simulator and recently a mobile money application. However, software on its own is of little or no use without data, which is why we work to provide a full turnkey service that encompasses all of our solutions by offering the application in the form of “software as a service” after doing data collection, processing and entry, ensuring the application is fully ready for the end user to operate. CONCIEL’s greatest strength is that our management believe in creativity and that we never look to impose an idea or a particular product upon a client. If a particular solution doesn’t fit the

client specifications, then we will work to find one that does. It all comes back to delivering tailored solutions that are individually relevant to each client.

CONCIEL understands the challenges presented by the building typology and considers the following components to be of absolute importance in all its data center projects:

OUR RELATIONSHIP WITH AIRTEL SIERRA LEONE

We are working with Airtel Sierra Leone on their new data centre project in Freetown, which is one of a kind for the country. As the leading Reliability OUR WORK IN THE telecommunications provider in Sierra Security TELECOMMUNICATIONS Leone, Managing Director Sudipto Scalability and technology adaptability SECTOR Chowdhury of Airtel Sierra Leone High-performance design The telecommunications industry operates constantly strives to bring in the latest Maintainability in a rapidly evolving environment that technologies and keep up with market Productive work environment presents numerous challenges and trends in mobile money, internet use opportunities for service providers. and call rates. >>Monitor and control your cell site >>Stay Ahead of Your Competition CONCIEL is in charge of the design CONCIEL offers its proprietary (CELLNetwork operators face intense CORE) monitoring and controlling platform and project management for the market conditions. Price competition project, in addition to the construction for Remote Cellular Tower Sites with the and demand for data services mean of the passive infrastructure of the data following capabilities: organisations must reduce costs while centre, both on civil works and power Controlling and monitoring the alarm enhancing performance. that is why supply. “We see that the MD puts system and sensors to secure this year we offered a unique product quality as his top priority, and doesn’t the perimeter; which does price analysis and simulation compromise on it. As a result, this End-to-end smart diesel tanks metering and provide accurate, fast and effective project will make sure that Airtel Sierra solution features to monitor the gasoline Leone remains the leading telecoms price modelling for all types of service usage and flow; providers, our first project is currently provider in the country,” Michel End-to-end smart electricity metering being implemented with ETISALAT Maalouf, the company Managing NIGERIA, the solution eliminates the Director said. solution features; guess-work and implements a reliable Environmental monitoring - thermic pricing methodology, improves margins map of temperature, security and safety, and launches successful campaigns with and electricity saving; greater accuracy and speed. Controlling and monitoring the tower antenna lighting; >>Understand your data center Controlling and monitoring the A data center, by nature of the function perimeter fence; and program, uniquely demands a selfTel +33782488844 On-site access control capabilities; and reliant, stand-alone facility that has an Email info@conciel.com inherent level of complexity more akin to On-going tank calibration www.conciel.com a machine than a typical office building. and consumption.

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completed, the project will generate IT & Telecom awareness amongst young local engineers and technicians as well as providing opportunities for long term employment monitoring and maintaining the data centre.” Network expansion is one of the key drivers for Airtel Sierra Leone, and with funds already being invested in the modernisation of the existing

This new data centre fits right into our strategy. It provides fast expansion as well as activation of both new telecoms and data services to meet increasing customer demand” Sudipto Chowdhury (Pictured above), MD of Airtel Sierra Leone

cell towers, new locations are being drawn up to further the reach of the company’s voice and data network. With the country made up of a varying topography ranging from savannah to rainforests, the task of having a 100 percent coverage area is no easy feat. Chowdhury is still confident that Airtel Sierra Leone will complete nearnationwide coverage over the next two to three years.

Demand for Data

One of the biggest changes in the telecommunications market in Sierra Leone has been the rise in demand for data services. With the increase of social media sites and networking in Africa, more and more consumers have opted to use less voice services and text messaging in favour of popular apps such as Whatsapp, Facebook and Twitter. With this in mind, Airtel’s 3.75G coverage is currently supported by towers across the region, with the view to upping this by the end of 2015. “With the rise in the number of mobile internet users in Sierra Leone, we have taken big strides to ensure that as many areas as possible have access to 3.75G data speeds. We plan to have towers using 3.75G capabilities running by the end of next year and then we will be able to offer even faster data speeds across the network,” remarks Chowdhury.

Airtel Money

Banking facilities in Sierra Leone are not as widespread or accessible as some of the neighbouring countries, but Airtel have been rolling out a strong banking and finance platform called Airtel Money. Airtel Money is the convenient and safe way to transfer money from person to person, or pay for goods from your mobile phone. It has become one of the leading financial tools in Africa and Airtel Sierra Leone has seen a big uptake in its usage from the customer base. “Airtel Money is being picked up by our customers in their thousands since we began rolling it out across the network. We currently have over 100,000 subscribers to the service and this figure rises each month. It is the simple and easy way to transferring money to people or paying for utilities and other supplies. If you live in rural areas, accessing a bank is not very easy and can be time consuming. Airtel Money

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can help you send payments quickly and safely to another person or pay bills, with the maximum of ease from your own home. Airtel Money will marry those who are unbanked with banking and informal economy with formal economy.”

An Invisible Challenge

Sierra Leone is currently facing its single biggest challenge since the civil war that tore the country apart. The Ebola outbreak in East Africa has already claimed a thousand lives with many more cases being reported daily. The epidemic has spread through the region and this has caused disruption across the network and the customer base. With heavy restrictions in place for travel, import and export and quarantined off sections of the country, Airtel has seen the country grind to a standstill. “With the restrictions in place from the government and World Health Organisation, our ability to continue our modernisation of the cell towers and our expansion plans have been placed on temporary hiatus. What we have done though is poured our resources into setting up emergency phone lines, Ebola call centres, free information through our website and fundraisers to help bring in much needed money to fight this virus,” affirms Chowdhury. The second problem affecting Airtel Sierra Leone is the price of commodities used in the daily running of the networks. Diesel fuels the towers used by the operator and with imports greatly reduced into the country, the diesel supplies in the region are beginning to run out, and those that are left have seen their price rise almost fivefold. With the rise in general commodities as well, the average spend on mobile top-ups and services have dropped rapidly as customers have switched their spending to focus on essential items only.

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With Sierra Leone currently in the midst of the Ebola crisis and with no clear end in sight, Airtel Sierra Leone have already raised over one billion Leonean’s for the Sierra Leone government and have pledged one Leone for every call made on the network as part of the company’s continued support to fight against the Ebola virus.

Dedication to the Community

Airtel Sierra Leone take great pride in their goal of becoming the ‘most loved brand’ in the nation’s telecommunications market. The company adopts the view that as new technology and innovation is introduced, the lives of the consumer should also be enriched and modernised by this innovation. The main aim for Airtel is to ensure that all their customers feel that the operator is a brand that provides them with a service they can trust at a price they can afford. Airtel Sierra Leone has always listened to what the customer wants and strives to provide a high level of service in return, further cementing the claim that the customers are as much a part of the brand as the Managing Director himself.

“The Post-Ebola Project is something we proudly align ourselves with and have the backing of the First Lady of Sierra Leone”

One of the biggest CSR projects currently being undertaken in partnership with the First Lady of Sierra Leone, Sia Nyama Koroma, is the setting up and implementation of a scheme to help orphaned children during and after

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ELECTRONS ELECTRICALS & GENERAL TECHNICAL SERVICES Electrons Electricals & General Technical Services offer wide ranges of services including: • Medium voltage network construction and installation • Generator installations • Related consultancy services

the Ebola crisis. The project will look at potential re-homing and education of the orphans and will offer support for widowed women who now have to provide for the family by means of mainstream employment. “The Post-Ebola Project is something we proudly align ourselves with and have the backing of the First Lady of Sierra Leone. We want to ensure that no man, woman or child is left alone during and after the Ebola crisis. With our help, we want to be able to provide basic needs and services for those who need it most, whether this is through education, training or other means,” proclaims Chowdhury.

“Success Drives Us”

Airtel Sierra Leone has become the market leader for mobile telecommunication services in Sierra Leone by offering a product and a brand that consumers can trust. Airtel Sierra Leone currently has more than 50 percent market share of the three million mobile users in the country, with the remaining 1.5 million customers split between three competitors. This is a big achievement considering the tough competition surrounding the telecommunications market in the country, but Chowdury believes that Airtel Sierra Leone’s market leader status is down to investing in services that people actually want and need: “I think that the huge investments we have made

8th Beckley Kane Tengbeh Town Freetown Sierra Leone Tel: +232 764 75523 Email: eegtechs@yahoo.co.uk

Airtel Sierra Leone currently has more than 50 percent market share of the three million mobile users in the country, with the remaining 1.5 million customers split between three competitors”

in upgrading our cell towers and being able to offer faster data speeds, has strengthened and secured our status as a market leader. We listen to what the customer wants and then we act upon this, it is the success of the network that drives us forward. There is no point in having the latest Smartphones in the country if the networks and infrastructure are not strong enough to handle them. In the end, a good business can be identified by offering a product and service that is right for their customers. That is something Airtel Sierra Leone always does.”

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Q&A MADAGASCAR

MY COUNTRY

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AIRTEL

MY NETWORK

Africa Outlook spoke to Maixent Bekangba, the new Managing Director of Airtel Madagascar about how he is working to bring a better service to the country Writer Matt Bone Project Manager Donovan Smith

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Tell me about Airtel Madagascar’s operations in your own words Airtel is Madagascar’s leading telecommunications company in terms of subscribers as well as revenue market share. The company product offering includes 2G and 3G wireless services, mobile commerce and enterprise services. Airtel Madagascar had over 3 million customers across the country as of the end of September 2014. Our vision is to make Airtel the most loved brand in the country. To do this, we are servicing the community with value-add services such as having the largest network coverage, superior quality of service, engaged employees, innovative products, and intensive CSR projects focusing on health, education, youth, gender and ICT. We try to encapsulate everything we do in our motto: Madagascar my country, Airtel my Network.

Airtel Madagascar is one of the only operating companies where 50% of the executive committee members are female and of native citizenship and we are very proud of this. What has Airtel Madagascar been doing over the last twelve months? Airtel Africa is investing over one billion US dollars in its operations on the continent this year. As Madagascar is one of the countries where the teledensity - a measurement of how many telephones are available per capita - is low (around 35%) compared to the average African country (55-60%). As a result of these figures, we are one of the key beneficiaries of this investment fund. Any investment we do receive will be directly put towards our 2/3G network coverage deployment and upgrade, capacity improvement, upgrade of direct services and other parts of the business that require funding. When Maixent Bekangba, Managing Director

QTE INSTALL

ur mission statement is to align the group with the evolving telecommunications and energy sectors on the African continent, to the mutual benefit of all stakeholders. Our vision is to become the partner of choice for our clients, and a company whose staff are proud to be an integral part of. Quality Transmission Equipment Ltd (QTE) is a 100% privately owned ISO 9001:2008 certified, leading Pan African infrastructure provider in the telecommunications and energy services sector, delivering turnkey solutions to its clients. In Madagascar working with Airtel, QTE has successfully delivered projects on time, within budget and to the required quality, while maintaining focus on continuous improvement on internationally accepted standards. Tel +261 33 37 280 13 Email chris@qteinstall.com

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H.B.C

.B.C is present in all of areas of building, telecommunication, and infrastructure maintenance and strive to ensure unique designs and irreproachable qualities of our products, whilst continuously developing better production processes, studies and conceptions. We promise to provide profitable products and services, and coupled with our reliability, we put our customers’ interests first. With our experienced staff, we offer the best services to our clients, allowing them to establish a communication system in order to answer their personal and business needs. “We build to last” Tel +261 330 732 522 Email fanantenana@hbc.mg

www.hbc.mg

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we have 3G in place in the country, we will begin to phase out 2G handsets and focus more on affordable 3G capable Smartphones for the data generation. These investments will strengthen our dominance in the Madagascan market with the objective of always maximising the value for our customers, shareholders and employees.

Maixent Bekangba, Managing Director

Maixent Bekangba opening Airtel Rising Star programme

Maixent Bekangba providing new mums with a gift during the international Motherâ&#x20AC;&#x2122;s Day

What are the biggest challenges Airtel Madagascar has faced? I think our main challenge remains the income per person and the demand for our products in the country. Madagascar is one of the poorest countries in the world, where a significant portion of the country is living well below the poverty line (less than US$1 per day). That is why we have really appreciated and welcomed the new elected President and his visions for the ongoing transformational country project he has been implementing. I am sure that the international aid and direct foreign investment being garnered by the government will help grow our economy, help lower the number of families living below the poverty line and boost industry revenues including the telecommunications sector. However, that said, the demand for our products has risen among the population and we are constantly looking for ways to bring the prices of our handsets and tariffs down so that more people can become connected and less isolated in Madagascar. What would you say is your stand out feature as a telecommunications company? We are a customer-focused company. No matter what we have done in the past, what we are doing now and what we will be doing tomorrow, customer satisfaction will remain at the centre of our business. We already have the fundamentals for great customer service

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in place here at Airtel Madagascar: the largest countrywide coverage, superior network quality, well-trained and engaged employees and a varied portfolio of products and services. Off the back of a great customer service is our ability to capitalise on growing market trends. Considering that mobile data usage has become a growing trend worldwide, we see the need to accelerate our current deployment of a 3G network countrywide with the aim to jump to 4G very soon. How would you sum up the current state of the industry? There are three main reasons to believe that the telecommunications industry in Madagascar is changing for the better. Firstly, we have a new found political and governmental stability, which will provide a clear and fair telecommunications operating framework and regulatory rules backed by officials in the government. Secondly, with this new framework in place, we can work towards giving 65% of the population who do not have access to any form of telecommunication a chance to gain access to mobile networks and handsets. Thirdly, we are operating in an underdeveloped country where there are a significant number of planned activities in mining, agriculture, tourism and infrastructure developments. We are looking at ways to help these projects by offering them a network and operator that will give them nationwide communication capabilities and a platform to do business on. Tell me about the recent trends youâ&#x20AC;&#x2122;ve witnessed and how you intend to capitalise on them While voice revenue on the networks is growing slowly, data consumption and demand for faster speeds have

Madagascar Executive Comittee

grown considerably over the last three quarters of 2014. Data and social media-related networking is the future of the telecoms business, not only here in Madagascar but across the whole of Africa. Data revenue is expected to contribute up to 50% of our growth over the next two years. Our goal is to be the widest reaching, fastest, smartest network for all of a customerâ&#x20AC;&#x2122;s data needs. This ambition will be reached through our dedicated project called Project Destiny that will change the organisation into a data driven company over the next 18 months through widespread transformation of all our functions and operations. Tell me about your partners and vendors For the last four years, Airtel has been embarking on an outsourcing model. Our network is managed by NSN (Nokia Solutions and Networks)

and our IT is looked after by the globally recognised IBM. Having our networks looked after by such world-class companies has allowed us to focus on our customers and the Madagascan market. As well as working with NSN and IBM, we also work closely with local partners and companies, who play a key role in our site and tower construction, maintenance and other important day to day functions. How important are CSR projects to Airtel Madagascar? We do not want to be like an island of prosperity in the middle of poverty. That is why we are undertaking giving back to the community through our ever present CSR programs, which highlight and work on current issues including education, health care, youth issues and ICT in the community. For the last six months, we have been working very closely

with social health on a large scale through our mobile clinic camp. The clinic looks after around 20,000 people across the country, offering advice and screening on current disease and health issues. Finally, what would you say is Airtel Madagascarâ&#x20AC;&#x2122;s secret? Having a brand that is trusted and recommended by its customers is important, and in Airtel, you have a brand loved throughout the continent with a service that is second to none in sub-Saharan Africa. The reason for our success can be put down to offering a service that is centred on customer needs. Having a reliable network, a good product and above all else, a customer service team that listens to feedback from customers, have all played key roles in the progress we are making Madagascar.

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SPAR THE BEATING HEART OF

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SPAR Distribution Lowveld oversee logistic services to twenty nine SPAR stores eighteen SUPERSPAR’S, twenty seven Tops liquor stores, eleven Savemor stores, and two pharmacies in the Lowveld region Writer Matt Bone Project Manager Callum Philp

PAR Lowveld is one of the six main distribution centres for SPAR South Africa, one of the biggest supermarket chains in Southern Africa. SPAR Lowveld offers a full range of services to: 29 SPAR stores 18 SUPERSPAR’S, 27 Tops liquor stores, 11 Savemor stores, and 2 pharmacies in South Africa’s Lowveld region, ranging from Komati in the east of the region, to Carolina in the west, and Phalaborwa in the north, as well as in Swaziland and Mozambique. These services include a full marketing function (buying of grocery items at competitive prices which are then passed on to the stores themselves), advertising and promotions, retail operations management advice (include in-depth financial advice and services), store development assistance and logistical services. The objective of SPAR Lowveld is to put independent small, medium and

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large retailers in a position to compete with the major chains, as well as dominate the convenience markets. Whilst their core businesses are is product procurement, warehousing and distribution services, they exist to service independent retailers operating under one of the SPAR banners. Their focus is the development and support of these independent retailers to be the best operators in the markets they serve in terms of retail offering, exceptional customer service, and meaningful community involvement. Rob De Vos, Divisional Managing Director for SPAR Lowveld division, states that although Lowveld is the smallest of the six SPAR divisions,

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The objective of SPAR Lowveld is to put independent small, medium and large retailers in a position to complete with the major chains, as well as dominate the convenience markets”

it does not stop them expanding their market where possible, as long as it is strategically viable: “When it comes to bringing the SPAR brand to new regions, we do not just walk into a new area and set up shop. We spend a great deal of time strategically looking at the best locations and places where the SPAR brand can flourish, and of course sourcing suitable store owners.” In 2009, SPAR Lowveld moved into Mozambique and by December, began to distribute goods to their flagship store. Now, SPAR has three stores, all of which have been well received, so much so that SPAR plans to open an additional five stores in Mozambique over the next two years.

Cross Border Challenges

When it comes to expanding a business across country borders, challenges do arise that may have long term impacts on the viability and success of company expansion. Even though Mozambique borders with South Africa and the two countries have a good relationship, SPAR Lowveld have had to negotiate several key challenges both in logistical and social terms, in order to create a new network in-country. Lowveld distribution centre is only 180km from their current stores in Mozambique, and this has made transporting goods into the country more viable. Mozambique as a country is going through a phase of infrastructure rebuilding, including the repair, upgrade and new development of roads, and this has assisted in terms of logistical operations. “We found there was a lot of red tape to traverse in order for us to open our first SPAR store in Mozambique, mostly concerning the transportation of

We spend a great deal of time strategically looking at the best locations and places where the SPAR brand can flourish, and of course sourcing suitable store owners”

goods across the Mozambique - South Africa Border. It has been a big learning curve for us, but when we look at what we have achieved after moving into the country, it was worth the early setbacks,” remarks De Vos. “All of our store owners in Mozambique are natives to the country and we think this is very important to

Rob De Vos, Divisional Managing Director of Spar Lowveld

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Like any good brand, we soon won over the locals with our competitive prices and stores offering many high quality goodsâ&#x20AC;?

the success we have seen over the last 12-18 months in the region. With native owners and managers, we already have a degree of understanding of what products and requirements would be needed. Local knowledge plays a massively important part in our stores as does being able to comply with laws, legislation, procedures and different systems which was something that was made that much smoother by tapping into the local expertise we had in terms of our business owners and their staff.â&#x20AC;?

looking to concentrate its focus on continuous improvement at locations which they are already present in, and the company is already looking at an additional five stores being opened in Mozambique by 2016/17. One aspect of the SPAR brand that is currently being expanded is the Pharmacy at SPAR.

Expansion SPAR Lowveld has plans to develop their South African network by adding an additional eight new stores by the end of 2015. Furthermore, expansion into Mozambique is being regarded as a big success. As such, SPAR is

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For the past 2 years, SPAR has been offering this timesaving and convenient solution that is accessible to all. SPAR is one of the

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With new additions to stores like the Pharmacy at SPAR being very well received and used by the consumers, I think it is only a matter of time before we double or even triple the number of SPAR pharmacy stores” most trusted brands in Southern Africa and the new pharmacy offering compliments this attribute by providing quality medicines and products to care for the whole family. Although there are currently only two locations offering this service in Lowveld’s regional network, De Vos believes it is only a matter of time before more pharmacological locations are added: “With new additions to stores like the Pharmacy at SPAR being very well received and used by the consumers, I think it is only a matter of time before we double or even triple the number of SPAR pharmacy stores in the Lowveld region. “

Investing in Supply Parallel to the ongoing investments being made at store level, SPAR has secured significant spending to develop their supply chain capabilities, expanding them where possible. “The introduction of warehouse management software, RF scanning and a more streamlined process has contributed hugely to improved performance at the Lowveld warehouse. We also see major advances in transportation with the application of scheduling and routing software and telemetrics. This results in considerable advances in service level and reduction in

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running costs and CO2 emissions. The investment has allowed for significant growth in the volume delivered to SPAR stores. This was achieved by increasing the capacity of the existing distribution centres and constructing new perishable facilities.” SPAR Distribution Lowveld has a dedicated fleet of 26 multi-axle trucks at their disposal. A single lorry will service different stores across the distribution network, although with some stores over 300km away, the average stores serviced by one vehicle is two stores a day, with the full fleet operating virtually 24 hours a day, 365 days a year. “Another key area SPAR has been focusing on is the fresh produce and chilled goods and how we can ensure that the goods being transported from the distribution centre reach the stores in perfect condition. With the stores in Mozambique 180km away, the fleet of top end vehicles can deliver the goods from the warehouse without any loss of quality,” remarks De Vos. The 21,000m2 warehouse at Lowveld distribution centre caters for 60% of retailer needs in terms of the products available. The remaining 40% is available direct from suppliers on a drop shipment status. Lowveld are involved in negotiating prices with drop shipment suppliers and also handle payment from stores to the suppliers as well. Taking both direct and indirect influence in the supply of goods to stores, Lowveld Distribution centre oversees about 85% of retailer needs from start to finish. “All told we look after about 85% of store product requirements. The remaining percent is normally made up of local suppliers such as dairy farmers or local producers selling their stock to their local SPAR shop. SPAR are always looking to work with local farmers and the local people to strengthen the bond between store and community,” highlights De Vos.

SPAR Success The success seen by SPAR in Southern Africa has been something to behold. De Vos believes it is down to two key reasons: “The main reason behind the success we have seen can be put down to how powerful, well-known and loved the brand is in Southern Africa. Consumers really do vote with their money, and based on how many lorries we send out to stores, business is good. The second reason is business philosophy. SPAR stores are owned by independent business owners, who own and manage their businesses, and in most cases they live in the local communities; ideally placing them to be able to address key community issues and to develop an offering tailored to the particular community. This means you can opt to buy or develop a store and become a part of our success, bringing your own experience and marketing prowess as well.” SPAR have placed

The main reason behind the success we have seen can be put down to how powerful, wellknown and loved the brand is in Southern Africa” a lot of emphasis on leadership and support, by employing people to go out into the field and liaise with store managers and owners and build up strong, mutually beneficial relationships. Seeing the expansion into Mozambique as a sign of things to come, SPAR will look to not only cement their position as one of the top food and drink retail stores in Southern Africa, but retain the top spot for many years to come.

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Translink Uganda Limited combines local knowledge with international business acumen to deliver first class distribution services to East Africa Writer Matt Bone Project Manager Donovan Smith

ith global multinational companies looking for new markets in Africa to expand into, logistics and distribution companies with impeccable service delivery, coupled with strong local knowledge of markets and cultures, have become indispensible. Having been operating in the country since 1991 and with roots in the region stretching back to 1905, Translink Uganda Ltd fit this very criteria. Translink are Uganda’s premier distribution and logistics company,

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representing some of the world’s most renowned industry leaders including Samsung, Johnson & Johnson and Nestle. Amar Thakrar, Sales Director of Translink, has noted a considerable change in the market’s composition over the last 23 years and this change has benefitted the company greatly: “When the company was first established, we were operating in a very traditional market, largely driven by a few wholesalers with limited retail infrastructure. With the shift to a more contemporary and structured market place, trade

has become considerably more organised and larger in scale. Big retail chains have taken over the wholesaler role, meaning logistics and distribution companies like us - representing high quality brands have really prospered.”

business ethos and international business practices that enabled them, upon their return to Kampala in 1989, to professionally set up and manage the organisation. By understanding and implementing new business ideas in Uganda based on western principles, Translink were Western Ethos, Ugandan Knowledge able to begin negotiating distribution With Idi Amin’s successful Coup D’état contracts with globally renowned in Uganda the 70’s, the company’s multi-national companies. This, founders, Mukesh Thakrar and Raj coupled with a vast understanding Thakrar were forced to move to the of the local culture, customs and UK. During this period of exile, they market forces made Translink a clear gained valuable experience and a favourite for any brand seeking to greater understanding of western enter the Ugandan market.

Strengthening Distribution Channels

With Uganda being landlocked, trade and expansion into neighbouring countries is a must for any successful distribution company. Translink have set up new distribution centres in Kenya and Rwanda, which have allowed the company to further their distribution network into two key markets in East Africa. With Kenya being one of the strongest and most stable markets on the eastern seaboard for imports and exports, Translink’s management made the decision to enter into these eastern markets, with a view to establishing a strong rapport

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Growth in Challenging Times Ugandan businesses are faced with several key challenges that can have a long term impact on the success of any company. The high cost of borrowing in Uganda limits spending power of a population with a GDP per capita of just US $572. This, coupled with the fluctuating currency depreciation of the Ugandan shilling, has led to increasing costs for importation and distribution of goods for Translink which inevitably affects the end consumer. As the majority of Translink’s business is realised through imported goods, this is a problem that will not be quickly alleviated. “Over the years, the Ugandan Shilling (UGX) has been steadily depreciating against the US dollar which makes it critical for us to forecast with the companies currently operating in the region. and plan well in order “We have already negotiated agreements with key to optimise inventory retailers in Kenya and Rwanda and will continue to and run our business build up our footprint in the region,” adds Thakrar. efficiently,” cites Thakrar. To further capitalise on the vast and growing With electronics opportunities in the region, Translink has begun distribution being one developing their own brand items such as razor of Translink’s main blades and consumables for the surrounding markets. revenue streams, having “With a lot of cross-border business coming from the a consumer market with neighbouring countries, we want to ensure that we relatively low disposable can capitalise on the opportunities. By working with income has proved numerous multinational corporations over the years, challenging, but it is we have learnt the importance of brand development something that Thakrar and value-added services to grow our footprint in believes will change the market, but have been somewhat restricted by thanks to a rise in the territorial restrictions. By developing our own brands number of middle class we have been able to overcome these barriers thus homes in the region: boosting our own revenue streams,” explains Thakrar. “Uganda’s middle

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NAKUMATT HOLDINGS

ith a complement of 50 world class branches across the East African region, Nakumatt Holdings is well positioned as the discerning shoppers’ retail store of choice. Our Smart Shoppers enjoy a variety of more than 200,000 quality products stocked in the most inviting environment and served with a smile by some of the friendliest shop assistants. At Nakumatt convenience stores, supermarkets and hypermarkets, our five star promise to deliver quality, value, variety, service and lifestyle is a living commitment to guarantee you an excellent shopping experience. Tel +254 733-632130, +254 722-204931, +254 20-3599991-4 Email nakumatt@nakumatt.net

www.nakumatt.net

By working with numerous multinational corporations over the years we have learnt the importance of brand development and value-added services to grow our footprint in the market”

class has been steadily growing over the last five years, which coupled with investment in electrification infrastructure has meant the demand for the latest Smartphones, home appliances and widescreen TV’s has also risen.” The recent discovery of oil in Western Uganda is also expected to have considerable added benefits for the economy and businesses over the next 5 to 10 years. “Although the rest of the consumer market has very little extra spending available to them, the desire and aspiration for these goods still exists. This is why we have projected a 20% growth for the company’s revenue this year,” adds Thakrar.

Swift Success

In the distribution industry, swift decision making can be the difference between securing a contract with a major retailer and letting the opportunity slip through your fingers.

Translink’s senior management are all based in-country and are actively involved in the business, meaning that if an executive decision is needed post-haste, managers can be reached at short notice. Thakrar considers this to be one of the key reasons Translink have been so successful in acquiring contracts with global companies: “With the company being familyowned and operated, our senior management team are all situated in Uganda, so when a major contract with a multi-national company is presented to us, we have the ability to return a response in a swift manner. In addition, our high tax compliance and impeccable reputation with the various authorities has helped build a very strong foundation for the company’s growth. These are some of the key reasons for why we are widely regarded as the premier logistics and distribution company in Uganda,” he concludes.

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03-07 NOVEMBER 2014

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17th Annual Africacom CTICC Cape Town South Africa

11-13 NOVEMBER 2014 www.africa.comworldseries.com

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01-03 DECEMBER 2014 www.west.totally-concrete.com

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