Africa Outlook Issue 7 by Outlook Publishing

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Built in SAPETRO is a Nigerian-based upstream oil and gas exploration and production company with portfolio of five assets in four countries spanning the full E&P value chain THE TURNAROUND SPECIALIST 144

Rory Mackey has put SA Corporate on a much sounder footing

INVESTMENT PROFILE

LIVING THE DREAM 106

Ethiopian Airlines makes record high profit of 2.7 billion birr

AIRTEL

Telecoms giant goes on the offensive in Uganda

Tanzania

AFRICA OUTOOK ISSUE 07 A L S O T H I S I S S U E: S A S T R I K E S E A S O N | S B D G U I N E A | T S E B O O U T S O U R C I N G G R O U P | P I Z A E V I N O

> Corporate and Investment Banking

NOTHING BUILDS A STRONGER FOUNDATION THAN A WEALTH OF EXPERIENCE

REDEFINE PROPERTIES LImITED

gROWThPOINT PROPERTIES LImITED

DELTA PROPERTY FUND

ZAR 488 million

ZAR 750 million

ZAR 306 million

Term Funding

Syndicated Term Funding

Term Funding

gROUP FIVE hEAD OFFICE Atterbury group

hYPROP INVESTmENTS LImITED

ASCENSION PROPERTIES LImITED

ZAR 408 million

USD 40 million

ZAR 502 million

Development Funding

Term Funding

ACUCAP PROPERTIES LImITED

EYEThU ORANgE FARm mALL

LEAF PROPERTY FUND TRUST

Stretford Land Developments, Flanagan & gerard, Dipula and Orange Farm Community Trust

ZAR 450 million

ZAR 376 million

ZAR 150 million

Term Funding

Development and Term Funding

Term Funding

Our experience shows how involved weâ&#x20AC;&#x2122;ve been in building the real estate market. This foundation allows us to provide you with the best possible financial solutions for your real estate needs. www.standardbank.com/cib

Moving Forward

Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 140012/R-3/13 Moving Forward is a trademark of The Standard Bank of South Africa Limited

W E L C O M E Built in Africa

Our cover story this month sees us look at SAPETRO, a Nigerian-based upstream oil and gas exploration and production company with portfolio of five assets in four countries spanning the full E&P value chain. The company famously entered into a partnership with Total and Petrobras to undertake a very successful exploration programme leading to the discovery of the 500mmbbl Akpo field and the similar size Egina field. It is a fastgrowing business built in Africa and you can read more on page 14. On the subject of fast growing businesses, Airtel is a company familiar to us here at Africa Outlook. Flick through the pages of any of our recent publications and you’ll see a number of them have been dedicated to bringing you the story of the company’s growth in Africa. This month we bring you the story from Malawi, Tanzania and Uganda, each as interesting and inspiring as the other. We’ve many other exciting growth stories inside, no more so than on page 152. Piza e Vino is the brainchild of Paul Christie and Miki Milovanvic, the clever folks behind the much-loved Doppio Zero franchise. Plans are now afoot that will see both brands flourish. Staying in South Africa we’ve also a very interesting look at the turnaround at SA Corporate, a diversified property unit trust listed on the JSE. The fund’s woes stemmed from a series of poorly timed acquisitions, disposals and funding structures and new CEO Rory Mackey worked hard to put it on a much sounder footing thanks to a new Ian Armitage focus and four-pillar approach. Editor, Outlook Publishing Enjoy the magazine.

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

PRODUCTION Production Manager: Clare Durrant clare.durrant@outlookpublishing.com

BUSINESS Sales Director: Nick Norris nick.norris@outlookpublishing.com Sales: Eddie Clinton eddie.clinton@outlookpublishing.com Sales: Donovan Smith donovan.smith@outlookpublishing.com Projects Director: James Mitchell james.mitchell@outlookpublishing.com Project Managers: Debbie Clark debbie.clark@outlookpublishing.com Sheridan Halls sheridan.halls@outlookpublishing.com Stuart Shirra stuart.shirra@outlookpublishing.com Jason Gilkes jason.gilkes@outlookpublishing.com Tom Cullum tom.cullum@outlookpublishing.com

ACCOUNTS Financial Administrator: Abby Nightingale Suzanne Welsh accounts@outlookpublishing.com Oﬃce Administrator: Daniel George daniel.george@outlookpublishing.com MAGAZINE DESIGN: Optic Juice Ltd IMAGES: Getty DIGITAL & IT: Hamit Saka HELPDESK: James LeMay

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

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In this issue of Africa Outlook...

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NEWS All the latest news from across Africa

INVESTMENT PROFILE TA N Z A N I A Africa Outlook takes a closer look at Tanzania’s business and investment potential

BUSINESS FOCUS SA STRIKE SEASON A combination of broken promises and poor growth has trapped South Africa in a continued cycle of industrial action

OIL & GAS FOCUS B U I LT I N A F R I C A SAPETRO is a Nigerian-based upstream oil and gas exploration and production company with portfolio of five assets in four countries spanning the full E&P value chain

MINING FOCUS WASTE MASTERS Gerrit Jansen van Ryssen formed mine residue handling company Cyclone Engineering Projects following popular demand

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70 152 4

106 118

THRILL OF THE DRILL RC drilling specialist SBD Guinea has worked on some of West Africa’s most significant and exciting exploration projects

40 44

GOLD AMBITION Aureus Mining to become Liberia’s first commercial gold producer

ON THE BRINK OF G R E AT N E S S Future’s bright for Zimbabwe’s African Consolidated Resources

GLOBAL SPECIALITY DRILLER Energold Drilling Corp can drill in most conditions using modular portable drilling rigs

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THE BEST TOOLS FOR THE JOB Filtration and separation technology specialist Roymec Technologies continues to supply its clients “best service and equipment to be found anywhere”

IMPORTING QUALITY As the only distributor of Hyundai’s earth moving equipment HPE Africa is a valuable resource for the industry

TELECOMS FOCUS ON THE UP AND UP Airtel Malawi has been deploying highspeed Internet capacity across its network

64 70

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ZIMBABWE’S LARGEST H E A LT H C A R E G I V E R PSMI is Zimbabwe’s premier healthcare service provider

122 126

PUSHING FOR MORE In recent months Airtel Tanzania has slashed tariff costs, making it easier than ever for Tanzanians to communicate

FOOD FOR THOUGHT Tsebo Outsourcing Group offers market-leading services in outsourced catering solutions, contract cleaning and hygiene solutions

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PROPERTY FOCUS

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ETHIOPIAN AIRLINES Record high profit of 2.7 billion birr

HEALTHCARE FOCUS H E A L I N G A N AT I O N In August pharmaceuticals giant Aspen Pharmacare pledged to contribute R5 million towards the establishment of the Nelson Mandela Children’s Hospital

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MOTSENG PROJECT MANAGEMENT Pareto injects R228m into redevelopment of Pavilion Shopping Centre

THE TURNAROUND SPECIALIST Rory Mackey has put SA Corporate Real Estate Fund on a much sounder footing thanks to a new focus and four pillar approach

144

102

TRAVEL FOCUS

K O R L E B U T E A C H I N G H O S P I TA L Pioneering healthcare in Ghana

SUPPLY CHAIN FOCUS

AIRTEL NIGERIA Taking a megabyte out of the competition

AIRTEL GOES FOR LEADERSHIP IN UGANDA After acquiring the operations of Warid Telecom Uganda, Airtel Uganda is now hot on the heels of market leader MTN

DREAMING BIG Pietermaritzburg’s Daymed Medical Centre and Private Hospital is the realisation of one man’s dream

FO OD & DRINK FOCUS A PIZZA THE ACTION Piza e Vino is the brainchild of Paul Christie and Miki Milovanvic, the clever folks behind the much-loved Doppio Zero franchise

152 158 162

OILING THE WHEELS South African oils manufacturer Teubes is celebrating its 30th anniversary LAST BUT NOT YEAST Anchor Yeast celebrates a proud legacy of 90 years EVENTS

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FINANCE

MASTERCARD, BLUE LABEL IN RURAL PAYMENT PUSH Thousands of small businesses in South Africa will for the first time accept bank card payments from consumers thanks to a partnership between Blue Label Telecoms and MasterCard. The partnership will see 22,000 small traders and rural shops equipped with Point of Sale (POS) devices, the pair said in a statement. The payment solution will increase sales, improve cash flow and reduce the amount of cash that traders handle, which can be unsafe and costly. For consumers, using bank cards is seen as the fastest and safest way to make purchases. It also provides convenience and safety. Blue Label currently provides thousands of POS terminals in South Africa, which are used predominantly to sell prepaid vouchers. “Over and above the estimated 100,000 spaza shops spread across South Africa, there are tens of thousands of small- and medium-sized retailers and service providers. Through our partnership with MasterCard, we will introduce many of these businesses to the safety, security, and convenience of electronic payments, enabling financial inclusion in communities where consumers have largely been unable to use formal payment products,” says Mark Levy, Joint CEO, Blue Label. “While the number of South Africans with access to formal banking products has increased

S NEWS

MANDELA DISCHARGED FROM HOSPITAL South Africa’s former president Nelson Mandela has been discharged from the Pretoria hospital where he has been receiving treatment for a recurring lung condition since June 8. The 95-year-old was discharged on September 1 and will continue his recovery at his Johannesburg home. The South African government has said his condition remains critical and can sometimes be unstable. He would be readmitted to hospital should his condition warrant it. “Madiba’s condition remains critical and is at times unstable. Nevertheless, his team of doctors are convinced that he will receive the same level of intensive care at his Houghton home that he received in Pretoria,” a statement by South Africa’s Presidency said. “His home has been reconfigured to allow him to receive intensive care there. The healthcare personnel providing care at his home are the very same who provided care to him in hospital. If there are health conditions that warrant another admission to hospital in future, this will be done.” BUSINESS

WORLEYPARSONS IN MOZAMBIQUE RAIL DEAL

significantly in the last year, the number of card acceptance locations – especially in rural and peri-urban areas – has not grown in tandem,” says Philip Panaino, Division President, MasterCard, South Africa. Blue Label will roll out over 15,000 new EMV-certified, contactlessready POS terminals, allowing traders to accept Chip and PIN and contactless payment cards, as well as upgrade some 7,000 of Blue Label’s existing terminals used in smaller spazas, with MasterCard Mobile software.

Australian mining services company WorleyParsons has won a contract to build a 584km-long rail line connecting Brazilian resources giant Vale’s coal mine in Mozambique with the Port of Nacala in the country’s north-east. When it is finished, the rail link will be able to transport 18 million tonnes of coal a year. The Nacala Rail Corridor Project will be undertaken by WorleyParsons’ Mozambique and South Africa divisions. WorleyParsons will also perform the detailed design of the rail facilities and maintenance complex at Nacala. The contract was awarded by Corredor Do Desenvolvimento Do Norte S.A. (CDN). WorleyParsons Chief Executive Officer, Mr Andrew Wood said: “We are delighted that Vale has chosen WorleyParsons for this critical infrastructure project and we look forward to assisting Vale with the achievement of its business objectives in Mozambique.”

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BUSINESS

HYPROP REPORTS STRONG H1 RESULTS South Africa-based Hyprop Investments has reported a 7.6 percent rise in distributions for the six months ended June. The retail-focused property fund also received its first dividend of R1.4 million from its 37.5 percent stake in Atterbury Africa which is jointly controlled by the Atterbury Group and Hyprop and focuses on shopping centre investments in Africa. Atterbury Africa is taking a focused approach, working with South African retailers and targeting countries that can accommodate several investments. Ghana has been the focus of its attentions, where it has acquired a significant interest in the successful Accra Mall in Ghana and where it is planning to develop further shopping centres. Atterbury Africa is also looking at other projects in Mozambique, and Zambia, where the Waterfalls mixed-use hotel, retail

and office development is being built in Lusaka. “Hyprop’s focus is to develop and own quality shopping centres and this joint venture affords us the perfect opportunity in Africa,” says CEO Pieter Prinsloo. In the first months of the year, vacancy levels across Hyprop’s portfolio increased slightly to 2.7 percent due to increased vacancies at value centres. Its shopping centre vacancies were below one percent, while office vacancies decreased from 9.1 percent in December to 8.1 percent. Hyprop changed its year-end to June 30 to facilitate its conversion to a Reit (real estate investment trust) and converted to a Reit on July 1. It said it will, in due course, “implement a capital restructure to simplify its capital structure and ensure compliance with legislation.” Hyprop added that it expects to show distribution growth of between 6.5 percent and 8.5 percent for the year ending June 2014 – taking into account “the short-term dilution due to the Rosebank Mall redevelopment.” “The Rosebank node has been under major development for the past five years,” Prinsloo says. “The Gautrain

infrastructure has seen the node grow to the second busiest business district in Johannesburg, resulting in large corporates moving their head offices to Rosebank. Rosebank Mall is doubling in size to 62,000m2. The construction programme is on schedule and we anticipate the completion of the mall in September 2014. Interest from the market in the mall has been phenomenal with 95 percent let. Rosebank Mall will see the first Edgars in Rosebank, a double level Woolworths Platinum store and a Dischem are among the top national retailers incorporated into the scheme.” Hyprop is South Africa’s largest listed retail property fund and its portfolio is valued at a cool R21.5 billion.

BUSINESS

TWO SA GOLD MINERS REACH SETTLEMENTS Hopes of a quick end to the strike hitting South Africa’s gold sector are high after two gold miners - Pan African Resources and Village Main Reef - reached agreements with the National Union of Mineworkers (NUM) and United Association of South Africa (Uasa) ending strikes at their Evander and Tau Lekoa mines respectively. According to reports, the settlement involves an offer of an eight percent increase in basic wage for category 4 and 5 employees and a 7.5 percent increase in basic wage for category 6-8 employees, miners and artisans, and officials. The agreement comes after 80,000 members of the South African NUM started a country-wide strike.

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BUSINESS

TRAVEL

FASTJET FIRST INTERNATIONAL ROUTE TEMPORARILY POSTPONED African low-cost airline fastjet has announced that its first international flight between Dar es Salaam in Tanzania and Johannesburg in South Africa, previously scheduled to take place on Friday 27 September 2013, has been temporarily postponed. Fastjet said the postponement was due to “unexpected administrative delays caused by the South African Department of Transport this week making a very late request for additional documentation”. It said that the delayed launch was not expected to have “any material effect” on the financial performance of fastjet Tanzania. “This postponement is very disappointing,” fastjet Chief Executive Ed Winter said. “Unfortunately however, administrative delays of this nature are not unusual in the markets in which we operate. Having complied with all the requests made of us and secured all the necessary licenses and permits in an extremely diligent and timely fashion, fastjet was led to believe that we were fully on-track to launch this route on the 27th September.” Fastjet apologised to its customers for any inconvenience and said all those affected by the delay will receive a full refund and assistance with re-booking a complimentary seat to fly within the next month. “Launching flights on this route remains a key priority for fastjet, and we are confident we will be operating on this service by mid-October,

S NIGERIA TO REDUCE RELIANCE ON FUEL IMPORTS By 2016 Nigeria and other African nations will be “less reliant” on the importation of fuel, Africa’s richest man and President of the Dangote Group, Alhaji Aliko, Dangote has said. The Dangote Group is planning to build “Africa’s largest refinery, petrochemicals and fertilizer manufacturing complex” in Nigeria, with a loan secured from a consortium of 12 local and international banks providing a total of $3.3 billion credit facility for the project. The project, expected to be completed in 2016, will lower Africa’s dependence on international markets. “The plants, which will cost a total of $9 billion, will generate up to 9,500 direct and 25,000 indirect

starting a new era of choice for passengers who continue to suffer inflated prices on flights between two of Africa’s largest and fastest growing cities,” Winter continued. Flights between the two cities will initially be operated by fastjet three times a week on Mondays, Wednesdays and Fridays, increasing in frequency as soon as consumer demand dictates. “fastjet has been on an incredible journey since we started flying domestically in

jobs, in addition to reducing current volumes of refined fuel imports by around 50 percent and will effectively stop the importation of fertilizer,” the group said in a statement. Nigeria is Africa’s biggest oil producer but has to import most of its fuel as it lacks refining capacity. Dangote Group says it is still seeking an additional $2.5 billion in development funds to augment the $3.5 billion of its own equity put into the project. Aliko Dangote said: “This plant will further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer. As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets.” Tanzania with a single A319 plane nearly 12 months ago between Dar es Salaam, Mwanza, and Kilimanjaro,” said Winter. “Our Johannesburg route, where we will compete head-to-head with South African Airways to provide real value for money flights, represents the next step on that journey. Healthy and fair competition is vital in any economy and in any industry. Competition will bring choice and lower fares – a win-win for consumers.”

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BUSINESS

GOLD STRIKE HITS SOUTH AFRICA Around 80,000 gold miners in South Africa have gone on strike calling for higher pay. The National Union of Mineworkers (NUM) is calling for an increase of R2300 for surface and opencast miners and R3000 for underground miners (an increase of around 10 percent), down significantly from earlier demands for increases of up to 60 percent for some workers. Workers have already rejected an offer of a 6.5 percent rise - the same as the current annual rate of inflation. “The NUM is determined to pursue its demands for an increase of R2300 for surface and opencast miners and R3000 for underground miners,”

NUM spokesman Lesiba Seshoka said in a statement. “The NUM has not been willing to undergo industrial action but given the arrogance of the captains of the gold mining industry, the union is forced to embark on nationwide industrial action that will change the gold mining landscape forever. The captains of the industry have continuously awarded themselves huge bonuses with Gold Fields CEO getting R45 million per annum last year.” President Jacob Zuma has urged both sides to find a solution, saying: “A strike hurts both sides.” “The union is aware of the devastating impact industrial action would have on the economy which is largely a white man‘s economy with no benefits for poor black mineworkers,” Seshoka added. “The union reiterates its position of rejecting with contempt

Website: www.harvestbags.co.za E-mail: info@harvestbags.co.za

slave wages as represented by an increase of a meagre 6.5 percent or R300 per month.” The country was left shocked last year when police shot dead 34 platinum miners during an unofficial strike called by NUM’s rival Amcu, which accused the NUM of being too close to the ANC government. The NUM represents about 65 percent of South Africa’s 120,000 gold miners.

Tel no: +27 12 546 8721 Fax no: +27 12 546 0602

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I N V E S T M E N T

INVESTMENT PROFILE 10

P R O F I L E

Tanzania Africa Outlook takes a closer look at Tanzania’s business and investment potential. Writer Ian Armitage

hen U.S. President Barack Obama visited Africa earlier this year his whistle-stop tour ended in Tanzania, East Africa’s second largest economy. During his stay, he laid a wreath for the victims of the 1998 U.S. embassy bombing in Dar es Salaam and visited a U.S.-owned power plant after which he pledged $7 billion to double access to electricity in sub-Saharan Africa and help combat frequent power blackouts. Funds from the initiative - dubbed ‘Power Africa’ will be distributed over the next five years. “We’re starting with countries that are making progress already with reforms in the energy sector - Tanzania, Ethiopia, Kenya, Nigeria, Ghana, Uganda, Mozambique and Liberia,” he told a business leaders forum in Dar es Salaam, adding that, “Tanzania has the potential to unlock new economic growth not only in this country but all across East Africa.” The world is investing in Africa like never before and many see Africa as the world’s next major

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economic success story. The U.S., China, Japan, and almost everyone else, from almost every sector imaginable, wants to be a partner in that success - keen to establish earlymover advantage. But why Tanzania? First of all, there’s an abundance natural resources and Tanzania has an estimated 41.7 trillion cubic feet of recoverable natural gas reserves. The opportunity comes from the fact little of it is pumped out, while economic growth remains constrained by chronic energy shortages that result in frequent power blackouts. This is in part behind Obama’s investment. “With a focus on cleaner energy, we will initially add 10,000MW of new electricity generation, which expands electricity to 20 million homes and businesses,” he said.

Just before Obama’s visit, General Electric and Symbion Power Tanzania, a subsidiary of the U.S. power company, signed a co-operation agreement to develop a 400MW gas-fired power plant in southern Tanzania’s Mtwara region. It will also include a transmission line to Songea, a city near Lake Malawi. “Tanzania is growing rapidly and to ensure we have an enabling environment that supports sustainable economic growth, we need to overcome inhibiting challenges such as interrupted power supply. This project will do just that,” John Rice, Vice Chairman and President of GE, said in a statement. Discoveries offshore of Tanzania and Mozambique waters have led to predictions the region could become the world’s third-largest exporter of natural gas: offshore Tanzania may hold as much as 17 trillion cubic feet of natural gas considering recent discoveries there, says Norwegian major Statoil. In March it announced with joint venture partner Exxon Mobil that it had discovered at least four trillion cubic feet of natural gas offshore in the Tangawizi-1 well, bringing the total reserve estimate to as high as 17 trillion cubic feet. “The Tanzania government is pleased to learn about additional gas resources ... and remains optimistic on future developments,” Tanzanian Minister for Energy and Minerals Sospeter Muhongo said. Statoil Exploration Vice President Tom Dodson added that Statoil has completed five wells in Tanzania in the last 15 months. More are planned for this year. “Recoverable gas volumes in the range of 10-13 TCF brings further robustness to a future decision on a potential LNG project,” he said. “I am very satisfied to see how the organisation is able to rapidly follow up on the exploration success both by being able to develop a successful drilling strategy and to plan and

complete the drilling operations in a safe and cost-effective manner.” Tanzania’s booming extractive industry (it also vies with Mali to be Africa’s third largest producer of gold) makes it attractive to investors in many places. Yes, there are political schisms and corruption in Tanzania, but the country’s stability is important for business and despite the corruption and likely instability in the future, it is a fantastic investment destination. Tanzania foreign direct investment is expected to grow 10 percent this year from $13 billion in 2012. New projects are expected in agriculture (for example Carlyle Group has partly funded a $210 million investment which will allow Tanzania’s Export Trading Group to open a factory producing soya protein meals) and infrastructure and the country is planning its first Eurobond. The UK topped the country’s FDI list last year with $4.7 billion from companies including BG Group Plc and SABMiller Plc. SAB India invested $1.8 billion. Poor infrastructure has made Tanzania a high-cost business area. The World Bank has stated that the country and its East African neighbours could boost their annual GDP by up to $1.8 billion and $830 million respectively by taking measures to improve the efficiency of the Port of Dar es Salaam. The port is the gateway for 90 percent of Tanzania’s trade, clearing $15 billion of merchandise annually. In addition, it provides vital access to Tanzania’s six landlocked neighbours: Malawi, Zambia, Burundi, Rwanda, Uganda and Eastern DRC. “The Port of Dar es Salaam has enormous potential to contribute to the transformation of the country as its impact cuts across all aspects of life in Tanzania,” said Philippe Dongier, the World Bank Country Director for Tanzania, Uganda and Burundi. “For example, medicines

are imported through the port as well as some of the food consumed in Tanzania. This underscores why efficient operation of the port should be a concern for everybody.” Tickets recently went on sale for fastjet’s new domestic route in Tanzania, between Dar es Salaam and Mbeya. The low-cost African airline said flights to Mbeya’s new Songwe airport will commence on November 1 and initially operate three times a week. The newly-developed Songwe airport serves not only the city of Mbeya, but also the densely populated cross-border regions of northern Zambia and Malawi. Commenting on the launch, Ed Winter, fastjet CEO said: “We have been inundated with requests from passengers for fastjet to operate a service on this route and are extremely pleased to be launching ticket sales today, building on the success of our existing Tanzanian operation. The Government of Tanzania has invested a considerable sum to develop this brand new airport and the regeneration of its infrastructure is due to be completed in October, allowing us to commence flights on the 1st November.” Fastjet CCO Richard Bodin added: “The launch of flights between Mbeya’s Songwe airport and Julius Nyerere airport in Dar es Salaam demonstrates that we are committed to delivering on our promise to the Tanzanian population to fly to airports that are sufficiently developed to accept our modern jets. We are offering fares starting at our trademark price of $20 (Tsh 32,000) excluding fees and taxes and are confident that this will not only stimulate both commercial and leisure traffic but also give passengers an alternative to long and arduous journeys by road.” To learn more about investing in Tanzania visit www.tic.co.tz.

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S O U T H

A F R I C A N

S T R I K E

S E A S O N

Strike

Season A combination of broken promises and poor growth has trapped South Africa in a continued cycle of industrial action. Writer Ian Armitage

trike. It’s a word you’ll have seen a lot of lately. Especially if you are South African. Gold, car manufacturing, textiles and clothing, fuel retail, aviation, civil engineering and construction all hit by strikes. Left strike, right strike, centre strike: a combination of broken promises and poor growth has trapped Africa’s biggest economy in a continued cycle of industrial action. And it costs billions. The majority of the strikes are centred on pay, with the unions involved effectively demanding double digit increases in all cases and improved benefits. The crippling three week strike in South Africa’s motor sector cost

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manufacturers 50,000 cars in lost production, it has emerged. “They have to make up for the lost production of 50,000 vehicles,” Nico Vermeulen, director of the National Association of Automobile Manufacturers of South Africa (Naamsa), told a press conference. Throughout the manufacturing chain these losses may add up to R20 billion, he added. “Although the vehicle manufacturers strike has just ended, the industry still faces a tragic and worrying situation with the starting of the other (strike) in the components sector. “It may be a question of days again before production grinds to a halt due to lack of components.”

Industrial action directly harms business and consumer confidence. A recent South Africa Chamber of Commerce and Industry (SACCI) survey of its members found in over 60 percent of cases, strikes temporarily reduce output or services to clients, while 30 percent of businesses experienced a permanent increase in costs. Cosatu spokesman Patrick Craven has said high levels of inequality combined with higher costs of living for the poor are behind the latest wave of strikes. “I don’t think (the frequency of strikes) has changed over the last few years but the nature has changed,” he said. But it isn’t just the monetary cost hurting South Africa. There is a human cost. In recent years strikes have become more violent, with striking workers targeting those who refuse to participate in the mass action. And last year we watched in horror as rivalry between Amcu and the National Union of Mineworkers (NUM), a political ally of the ruling African National Congress, played a role in the deaths of 34 mineworkers at Marikana on. The event has left simmering anger against the backdrop of employerlabour relations that are the worst in the world according to World Economic Forum.

The Amcu/NUM turf war continues and the government is seemingly unable to end or control the situation, with Amcu infamously refusing to sign a government-brokered stability pact, the Framework Agreement for a Sustainable Mining Industry. South Africa’s Chamber of Mines, Fedusa and Cosatu, and mining minister Susan Shabangu all signed however. “All parties agree that it is important to ensure that peace and stability prevail and that human beings and property are protected so as to create an environment conducive to development,” a statement issued by the presidency said. “Government will act decisively to enforce the rule of law, maintain peace during strikes and other protests relating to labour disputes ensure protection of life, property and the advancement of the rights of all.” But, truth be told, strike season 2013 hasn’t been nearly as destructive or deadly, mostly because of multiyear agreements in some sectors (public service, retail, transportation, and local government), which have been spared strike action, and because settlements were reached before strikes even started. Meanwhile, strikes in the mining sector were a lot less about wage disputes and much more about unions attempting to assert their

authority and get recognition (will Amcu please stand up). With three of four unions in South Africa’s gold industry signing a two-year wage agreement with gold producers on September 10, the strike season effectively ended. In a statement, the Chamber of Mines chief negotiator Elize Strydom said the settlement “was reached at levels that were more than employers would have preferred”. It was signed by Solidarity, Uasa and the National Union of Mineworkers, which represent about 72 percent of workers, but not by the rebel Association of Mineworkers and Construction Union (Amcu), which represents 19 percent of workers. “We took the view that the agreement has helped secure stability in the industry for a two-year period. Overall, the settlement represents a reasonably balanced outcome, in the best interests of shareholders, management and employees,” Strydom said. In terms of the agreement, category four and five employees and rock drill operators would receive an eight percent increase and other employees a 7.5 percent increase from July 1. Employees will receive a CPI-linked increase in July 2014. The current monthly living out allowance of R1,640 would increase to R2,000 in two R180 steps, on September 1 2013, and again in 2014. The Chamber of Mines represents AngloGold Ashanti, Gold Fields, Rand Uranium, Harmony Gold, Evander Gold, Sibanye Gold, and Village Main Reef. This isn’t the end of the story. Strike season is more predictable than the weather patterns in South Africa and this time next year we’ll see more. Will it ever end? To do so, South Africa will have to take a long hard look at its economy. Inequality needs to be reduced. If it isn’t, strikes will remain the workers’ weapon of choice.

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S A P E T R O

B U I L T

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I N

SAPETRO is a Nigerianbased upstream oil and gas exploration and production company with portfolio of five assets in four countries spanning the full E&P value chain. Writer Chris Farnell Project manager Sheridan Halls

erhaps one of the most crucial sectors in the modern oil and gas industry is the exploration sector. The people who search for new oil fields are among those taking the biggest risks in the industry, while seeking out the greatest rewards. This is what SAPETRO does. The firm is an indigenous Nigerian exploration and production company with operations in Nigeria, the Republic of Benin, Madagascar and the French Overseas territories. The company was established in 1995 with the specific objective of building up the Nigerian capability to participate in the hydrocarbon industry. It was an ambitious goal, but one which very quickly began to pay off. “In the indigenous bid round in 1998 SAPETRO was awarded the deepwater frontier acreage OPL 246,” explains Martin Trachsel, SAPETRO’s CEO. “The company entered into a partnership with Total and Petrobras to undertake a very successful exploration programme leading to the discovery of the 500mmbbl Akpo field and the similar size Egina field. Post discovery the parternership was joined by CNOOC and the four parties jointly undertook the development of the Akpo field. Continued

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The Akpo field came on stream in 2009 and is now producing at a plateau rate of 175,000bbls/day. This year the partnership also took a final investment decision to bring Egina field on stream by 2017. They’re predicting the Egina field will have a production rate of 200,000bbls/day. Additionally SAPETRO has continued to expand into new frontiers, laying claim to yet more lucrative territories. “In 2004 we entered the Republic of Benin as an operator in our own right. There we are the 100 percent owners of block 1, where we have concluded a successful appraisal programme and are currently redeveloping the Seme field,” Trachsel says. “More recently in 2011 we acquired very substantial acreage in the Mozambique Channel from Roc Oil where we have undertaken a 13,000km high-tech 2D seismic survey, Continued

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The Akpo field came on stream in 2009 and is now producing at a plateau rate of 175,000bbls/day. This year the Partnership also took a final investment decision to bring Egina field on stream by 2017”

BRISTOW HELICOPTERS

www.bristowgroup.com

ristow Group is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated. The Group is one of two helicopter service providers to the offshore energy industry with global operations. Our Company has major Logistics operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Canada, Russia and Trinidad. Bristow Helicopters Nigeria is one of the largest and leading helicopter providers in the energy sector of the Nigerian Economy. We maintain a fleet of helicopters ranging in size and capacity from small through to heavy this allows us to meet our clients’ unique needs. Bristow Helicopters is known for adhering to the highest standards for safety, quality and integrity this ensures delivering industry leading values to our clients. We are able to track our continuous improvement procedures to provide valued services to IOCs and LOCs; this we do to guarantee high values to our clients. We work in innovative partnerships with our clients, further developing our workforce whilst expanding business and extending our horizons. Our aim and commitment to our clients and the Nigerian Economy is in the provision, over 29years; well trained personnel through our Pilots’ training

selection program and engineering training in collaboration with NCAT Zaria. Solution to Clients • Efficient crew change • Reduction in Exploration and Production Cost • Fast and efficient Medical Evacuation • Safe and performance driven engineering Services Solution to Nigeria Manpower • National Pilots training: • Engineering Training • Administrative staff training and development Our Target Zero Culture “Target Zero” is our value promise to our clients. Our “Target Zero” program will ensure, Safety, Reliability - reduce client’s production; and On-Time- Departure Performance. In keeping with our “Client Promise” to deliver Target Zero – Accident; Downtime and Complaint, Bristow’s developed scorecard (called Client Value Added Card _CVA) tracks and manages our drive towards the delivery of superior safety and customer service to our clients. Our service to each client is measured on Safety; Reliability and Customer Complaints. We believe that when Target Zero is achieved on these measures, it will substantially reduce exploration and production costs for our clients. Bristow partners with clients to look for ways to improve crewchange planning and aircraft utilization which ultimately impacts our clients’ production costs.

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SEAMLESS DELIVERY...

World class conductor supported platforms and riser systems, along with hydraulic systems, rental equipment and full installation support, providing complete project delivery â&#x20AC;&#x201C; from conceptual design and engineering analysis to procurement, construction, and life-of-field support.

...YOUR TRUSTED PARTNER

Visit us at: aquaterraenergy.com R I S E R S Y S T E M S | O F F S H O R E S T R U C T U R E S | H Y D R A U L I C S Y S T E M S | S E R V I C E & R E N TA L

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which shows very significant promise. Starting in September we will undertake a 9,000sqkm 3D survey in the same area, and we’re very excited about the potential results.” What makes SAPETRO’s story so interesting isn’t just the highly successful ventures the company has already engaged in however, it’s that these successes are happening in the hands of an entirely indigenous African company. As the company’s slogan says, “Africa is our home”. “SAPETRO is a home-grown African company who understand doing business in Africa and how to create and maintain value adding partnerships,” Trachsel says. “The company has been highly successful in creating value in Nigeria and intends to continue doing so while looking for high impact opportunities to repeat

In 2011 we acquired very substantial acreage in the Mozambique Channel from Roc Oil where we have undertaken a 13,000km high-tech 2D seismic survey, which shows very significant promise”

this success in other African countries.” Of course, any success worth having doesn’t come easily, and creating an entirely home grown exploration operation from scratch was no mean feat. “When SAPETRO started out the biggest challenge was in building our technical capabilities from scratch. But there is a lot of talent in Nigeria which the company has been able to capture and develop. Our joint venture has faced and overcome the challenges of successful deepwater development in Nigeria while maximising the use of local content. Abroad we operate in a highly competitive environment but we have been successful in obtaining attractive exploration positions and demonstrating that we can successfully operate and explore abroad.” Continued

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Aquaterra Energy

Tel +44 (0) 1603 788233 Email jameslarnder@aquaterraenergy.com www.aquaterraenergy.com

quaterra Energy’s work in developing innovative solutions to offshore drilling challenges has earned the company a place in the top rankings of the world’s offshore oil and gas engineering providers. The company specialises in riser systems and offshore structures, with particular focus on innovation in rig installable conductor supported platforms (CSPs). The benefits of CSPs often outweigh those of traditional platforms and subsea trees for shallow water development projects. Aquaterra Energy’s Sea Swift CSP allows marginal fields to be developed quickly, using just the jack-up and supply vessel needed to drill the wells to install a complete platform. Sea Swift offers all the benefits of a traditional platform, coupled to the rig based installation of a subsea development. This field proven technology helps Aquaterra Energy’s customers to achieve reduced platform costs, lower installation costs, simplified critical path and reduced intervention costs within shallow water developments. Sea Swift also opens up opportunities for accelerated first oil and removes the scheduling barriers inherent in developments requiring multiple installation vessel types. By providing a complete solution approach, from design through to fabrication and ultimately offshore installation, Aquaterra Energy has

developed a proven track record. From the world’s first CSP in 65 metres of water offshore Malaysia to sub 20 metre developments offshore West Africa, the CSP is a remarkably adaptable solution. Following a global design competition, the Aquaterra Energy team has commenced work to design, fabricate and install a minimum facilities CSP off the West African coast for South Atlantic Petroleum Benin S. S. (SAPETRO). Now at the fabrication stage, the contract was awarded following completion of a detailed pre-engineering design study by the Aquaterra Energy team, which resulted in the development of a fast track solution intended to meet SAPETRO’s accelerated timeline and budget. The Aquaterra Energy designed Sea Swift CSP for SAPETRO will be located in water depths of 26 meters and will connect three planned wells with an on-shore processing facility located 15km away. It will consist of integrated deck topsides, riser guides, boat landing and a subsea jacket structure. Facilities equipment will be controlled from the on-shore facility via an integrated fibre optic communication and power cable. The platform will be fabricated in Africa and installed under supervision of Aquaterra Energy’s offshore service team. The low cost, fast track nature of the Sea Swift CSP will ensure that the oil field is a commercially successful development for SAPETRO and commitment can be made to an early first oil date.

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Of course a large part of the reason the company’s ventures have been so successful is that SAPETRO is a company dedicated to building the best team it possibly can. To this end the firm has an extensive and thorough recruitment process. “We advertise all our positions in the national papers to ensure people from all over the country have a chance to apply but we also invite nominations from recruitment companies,” Trachsel says. “So we

SAPETRO is a homegrown African company who understand doing business in Africa and how to create and maintain value adding partnerships”

always have a large pool to select from and take great care in t he selection process to find excellent candidates.” But building the best team doesn’t end with simply hiring the right staff. “Once hired we take care to ensure our staff have opportunities to develop and grow and we provide frequent training opportunities. In the past we have posted some staff with partners for development, but we now have enough of our own Continued

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First Bank of Nigeria First Bank of Nigeria Limited is Nigeria’s largest financial services institution by assets and gross earnings. With more than seven million cus¬tomers, over 750 branches and five subsidiary companies, First Bank provides a comprehen¬sive range of financial services. The bank has an international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, and Banque International de Credit (B.I.C) in the Republic of Congo, as well as its representative offices in Johannesburg, Beijing and Abu Dhabi.

SOLID FOUNDATIONS

Tel +234 708 062 5000 / +234 1 448 5500 Email firstcontact@firstbanknigeria.com www.firstbanknigeria.com

Since its establishment in 1894, the bank has consistently built relationships with customers focusing on the fundamentals of good corpo¬rate governance, strong liquidity, risk manage-ment and strong capitalisation. First Bank has 1.3 million shareholders globally. It is quoted on The Nigerian Stock Exchange (NSE), where it is one of the most capitalised companies, and also has an unlisted Global Depository Receipt (GDR) programme. Both sets of listings were transferred to a holding company, FBN Holding Plc, in December 2012. First Bank has evolved and re-invented itself in line with the dynamic operating envi¬ronment in Nigeria and customers’ needs. Our recent metamorphosis – culminating in the preparation for the celebration of our 120th anniversary – places the bank in good stead to take advantage of the multitude of opportuni¬ties in the economy. With the bank’s global reach, it provides investors wishing to explore the vast business

opportunities that are available in Nigeria with an internationally competitive, worldclass brand and a credible financial partner.

INSTITUTIONAL BANKING GROUP

The Institutional Banking Group banks several key organisations across five industry groups – Energy, Telecoms, Construction an Infrastructure, Conglomerates and Services, Manufacturing, and Financial Services/ Multilateral Agencies. The Group’s target market and clients include multinationals, large corporates and corporate players, specialized businesses like International Oil Traders, and Financial institutions, both local and international. The group provides an array of banking and financial services ranging from project finance, trade and corporate finance, reserved based lending, term loans, foreign exchange, treasury services, cash management, guarantees, as well as bespoke solutions that are unique to individual client’s requirements.

ACCOLADES

FirstBank received ‘The Bank of the Year in Nigeria’ award from The Banker in December 2012. It was also the recipient of the ‘Best Bank in Nigeria’ in the Euromoney Awards for Excellence 2013 and ‘Best Bank in West Africa’ in the African Banker Awards 2013; ‘Best Financial Reporting Company’ by Africa Investor, and ‘Most Innovative Bank in Africa’ by African Banker Awards. For two consecutive years, 2012 and 2013, the Bank has been named ‘Nigeria’s Number One Banking Brand’ by The Banker and Brand.

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operations and mentors to develop people internally.” Today the hard work of SAPETRO is really starting to see some concrete results, as it comes to the end of what has been an extremely productive year for the company. “The last 12 months have been extremely busy but highly successful,” Trachsel says. “Akpo has produced steadily at its designed plateau and we have managed to overcome the many challenges in making a final investment decision on Egina. In Seme we have successfully commenced the field redevelopment programme and we are now constructing facilities and preparing for drilling in October. Meanwhile, in the Continued

OBAX WORLDWIDE LTD

When SAPETRO started out the biggest challenge was in building our technical capabilities from scratch. But there is a lot of talent in Nigeria which the Company has been able to capture and develop”

OBAX has a long standing track record of providing the following services in Nigeria and across the continent. Engineering and project management Services Maintenance of Offshore and Onshore Pipeline and Production services Installation and Upgrade of onshore and offshore production facilities and platforms Marines Services & WellTesting services Tank farm construction services & Agricultural Services. OBAX PROJECT HISTORY & CURRENT ACTIVITIES EPCI of Seme 12,000BOPD Onshore Process Facility (Ongoing) EPCC of 2x50,000BBL Storage Tanks System (Ongoing) EPCI of 200MMSCD Ovade -Ogharefe Cryogenic Gas Plant Project Engineering Construction and Upgrade of Ovade-Ogharefe Flow Station Electrical and Instrumentation works for 130MMSCD Ovade-Ogharefe Gas plant (Phase 1) Fabrication of 2 x 20,000bbl Crude Oil storage Tank Lease, Construction Operation and Commissioning of 10,000 EPF Facilty Fabrication & Installation of Pipe Spools and tank Drain Lines. OBAX owns a range of heavy and light duty construction equipment for ensuring effective and speedy project delivery. Tel +234-803-728-1668 / +1-314-581-9074 Email ceo@obaxworld.com

www.obaxworld.com

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F E A T U R E

WORLDWIDE LIMITED Obax worldwide Limited is an oil and gas Construction Company which has built up a reputation for delivering Engineering, Procurement, Construction, Installation and Commissioning (EPCIC), Operation & Maintenance (O&M)services in the oil and gas Industry

Tel: +234-803-728-1668 / +1-314-581-9074 Email : ceo@obax world.com w w w.obax world.com

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ENERGY AND MINERAL RESOURCES LTD EMR is a consulting firm providing independent commercial and technical advice to companies in and associated with the oil and gas industry. EMR’s services cover the entire range of the oil and gas business lifecycle in both Oil & Gas and mineral resources to major and independent oil and gas, exploration and production (E&P) companies and include: Exploration / portfolio management Field development studies and operations planning Feasibility studies including concept evaluation Project management and Engineering consultancy Geological laboratory and allied services Gas market advice Oil and gas asset valuations and due diligence Expert advice to banks / financial institutions for debt or equity finance. Tel +234 1 461669 Email info@emrng.com, emr. geoscience@hyperia.com

www.emrng.com Mozambique Channel we have been delighted by the results of our 2D seismic interpretation with the identification of over 70 leads, the best of which we will shortly be covering by 3D seismic.” But even this is just the beginning of what SAPETRO has planned. “We’re definitely planning steady further growth inside and outside Nigeria,” Trachsel tells us. “We are currently looking very seriously at IOC divestment opportunities and I think we will be able to put together some very credible and serious bids focusing on what we can do to build production for Nigeria and improve the lives of Continued

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The last 12 months have been extremely busy but highly successful”

Brone Positioning & Survey Limited was incorporated in the year 2000 being the first of the Brone Group of companies. Specializing in Geo-Hazard Surveys, Analogue Surveys & Rig Positioning, Brone Survey has well established itself as a strong entity, one not to be ignored with operations from Nigeria to neighbouring West African countries such as Ghana, Cameroon, Republic of Benin and Liberia. Brone Geo-Solutions Limited was incorporated in 2008 with the acquisition of the first indigenous wholly owned 2D Seismic Survey Vessel in West Africa, the RV Brone Explorer. Specializing in marine operations and now, geotechnical surveys

with the recent acquisition of the MV Brone Investigator. The company serves the marine and geotechnical operations of the group. Brone Positioning LLC, USA is a member of the Brone Group. Incorporated in 2008, it serves as the US liaison for many purchase agreements and arrangements with foreign allies and entities. Brone Systems UK Limited is the newest addition to the group. Incorporated to manage the activities of the group in Europe, it is looking to expand the groupâ&#x20AC;&#x2122;s business reach to new areas and territories in the North Sea and beyond.

Core Principles Some of the principles that we have aggressively imbibed to form the basis of our work culture therefore giving us the cutting edge and making us the preferred option for many are listed as follows:

Group Fast Facts Group headquarters is situated in Port Harcourt, Nigeria.

Enforcing uncompromising levels of job ethics.

Executed over 300 survey and positioning projects in Nigeria and beyond.

Employing competent staff. Applying tested and proven methods of work execution. Adopting best practice standards.

Staff strength of approximately sixty (full time).

Pioneered local participation in the marine survey business in Nigeria.

Executing projects in strict compliance with ISO 9001 based work instructions. Appropriating new technological innovations in soft and hardware.

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local communities while continuing to build our company. We’re also going to continue to explore our concessions in the Mozambique Channel as well as looking for further high impact opportunities elsewhere on the continent.” Amidst this expansion, SAPETRO continues to enjoy unrivalled support from its owner, Nigerian military general turned businessman, General Theophilus Danjuma, whose other interests span across shipping, construction, hospitality, petrochemicals and real estate. Having a wholly owned Nigerian oil and gas company providing opportunities for Nigerians in addition to exporting valuable skills to other African countries where significant investments are being made by SAPETRO in the exploration and development projects is truly a dream come true. To learn more visit www.sapetro.com.

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UNITRUST INSURANCE Unitrust is Nigeria’s leading general insurance company delivering differentiated insurance products since 1986 with an outstanding Board chaired by General T. Y. Danjuma (Rtd) and an experienced management team led by Mr. J. Matni Integrity, ethics and professionalism are our core values A strong reinsurance support led by Munich Re A strong financial base with =N=5 billion authorized share capital, out of which =N=3.3 billion fully paid up and its shareholders’ fund is in excess N5.89 billion Gross premiums written in 2012 is over N3.17 Billion with a net profit of about =N=694 million Prompt claims payment as over N1.3 billion paid in 2012. Tel 01-4617031-2, 4626850-2, 2701167-9 Email info@unitrustinsurance.net or jmatni@unitrustinsurance.net

www.unitrustinsurance.net

We are proud to be associated with South Atlantic Petroleum Nigeria Ltd (SAPETRO) We create value for our stakeholders by ethically delivering diďŹ&#x20AC;erentiated products and partnering with our clients to proactively manage their risks

Web: www.unitrustinsurance.net

Email: info@unitrustinsurance.net

We are currently looking very seriously at IOC divestment opportunities and I think we will be able to put together some very credible and serious bids focusing on what we can do to build production for Nigeria and improve the lives of local communities while continuing to build our companyâ&#x20AC;?

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Waste masters mast Gerrit Jansen van Ryssen formed mine residue handling company Cyclone Engineering Projects following demand from the mining industry and the fast growing company has gone from strength to strength. Writer Ian Armitage Project manager Debbie Clark

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ll business managers will tell you of the importance of creating your own niche – being focused on a targetable part of the market. As the pool of people you are looking at is smaller, it will be easier to identify potential clients, and it is this that has seen Cyclone Engineering Projects grow. “I’ll start at the beginning,” says founder Gerrit Jansen van Ryssen. “I had and still have another company called Cyclone Projects and Consulting (CP & C) which was formed in 1998 and we would consult the mining industry in Africa and all the major mining houses – AngloGold Ashanti, Debswana Diamond Company etc. – and design tailings management solutions for them. That business was formed because there are two inevitabilities about mining for certain types of minerals: they consume vast amounts of water and produce equally large quantities of waste. Tailing management is also expensive and comes with considerable responsibility so we stepped into handle that, specialising in a process of Tailings Storage Facility (TSF) construction known as cycloning. Cyclone Engineering Projects was founded during 2007 on demand by the mining industry to operate and manage cycloned- and other tailings storage facilities (TSFs). I thought it a good opportunity; there was big demand from the mining industry. It has gone very well.” The company specialises in conventional and vacuum cycloning

P R O J E C T S

and has developed “new systems which we have patented,” says van Ryssen, whose long interest in cycloning saw him start the company upon leaving Foskor where he was a manager. “We achieved a major breakthrough in developing the patented vacuum cycloning, which proved to be a very successful element, creating tremendous cost savings to the mining industry in water saving,” he says. “We also introduced the very successful mine/ contractor JV principle where a major cost saving to the mines is achieved in the construction of new TSFs. “We are doing well and more mines are looking at the system.” CP & C is considered by the industry to be the leaders in the field of TSF cycloning. The operations of any type of TSF fall under the jurisdiction of CEP. “That’s it summed up,” van Ryssen says. “We have the patented system. We call it the vacuum cycloning system. It is new, modern... and a handful of opportunities and benefits for the mining industry.” How does the system work? Well, slurry is pumped to the TSF where cyclones are then used to separate coarse and fine materials under gravity forces. A large percentage of the slurry can be used for building the walls of the TSFs. This material dries within two hours, as opposed to more than 24 hours for the outdated spray-bar technology, making it considerably faster, more labour friendly and easier to maintain. “We have recently developed the dual cyclone system and it has also been patented,” van

GENIUS LANDBOU IMPORT AND EXPORT

enius Landbou is a fully agricultural related business, which is focussing on the supply and service of the complete range of agricultural machinery and equipment. We also supply items for the mining sector and road works. The company has been operating for the last 15 years in areas of a wide variety. In the last four years, our company has grown from an average sized dealer to a big dealer in the complete and highly competitive agricultural industry. We have been appointed – two years in a row – 2009 & 2010 – dealer of the year. We believe that this was achieved (in a very competitive market) by means of high quality service, reliability and professionalism, which gave our clients, trust in our company. Genius Landbou is servicing the complete industry, i.e.: Vegetable crop growers All various grain crop growers Mines (Gold, Chrome and Coal mines Recreational maintenance, (sports fields) and contractors (Servest, Turftec and Real landscapes) Department of land affairs and rural development Department of correctional services – Leeuwkop, Modderbee; Baviaanspoort; Zonderwater; Brits, etc. Flower industry and nurseries. Tel 011 952 9926 / 7 / 8 Email landinitarlton@gmail.com

www.geniuslandini.co.za

F E A T U R E

Supply and service of a complete range of agricultural machinery and equipment

Genius Landbou Import & Export (Pty) Ltd Email: landinitarlton@gmail.com Contact Office: 011 952 9926 / 011 952 9927 / 011 952 9928 Bart: 082 576 0130 Marco: 082 929 5850

www.geniuslandini.co.za

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Ryssen adds. “The dual system is in effect a combination of conventional and vacuum cycloning. The results obtained from a site where cycloning delivers only on average 16 percent (by others), we managed to increase the rate to +/- 50 percent. Underflow material, which is used in wall development, is of high quality and satisfies the need of the client. The cyclone residue deposition system is a cost-effective and environmentfriendly alternative to outdated day wall and spray systems. We’ve been selected as the slimes dam engineer by a number of large mining houses and mines, owing to the fact that the company offers the most advanced and cost-effective technology in the industry. All these types of TSFs we operate, where we do the design, we have never had any incidents in terms of failures or anything like that. There are a lot of slime dam failures worldwide. We have never had something like that and trust and believe that will be the case going forward. Stability is the key. It is the biggest benefit we can give the mines. They can be sure in our system; that nothing will go wrong at the TSF. We have many advantages over the traditional slime dams built, the obvious being water - we give the mines back a lot of water, between at least 50 and 70 percent.” The potential for the business is massive. For one, more efficient extraction techniques by the mines are now allowing lower grade ores to be mined, creating greater quantities of waste in the process. Of course, the tailings have no commercial value. They are a burden to the mine operator and their management is not something that can be taken lightly. “The rest of Africa, Tanzania, DRC and those places, where you need stability and for the TSFs not to liquefy etc is an area we want to

P R O J E C T S

expand into as our system is as strong as rock! It won’t liquefy. We can go to the harshest environments and build slime dams. “So we are looking to expand into Africa. There are challenges however. Africa is a challenging environment and we are a little bit on the cautious side about expanding into Africa. We would rather consult the mines and teach them how to use and operate the system and we would be on the sideline – letting the mine do the work, and we would do the consulting and training.” Van Ryssen would like to see the business grow between 10 and 15 percent per annum each year over the next five years, with “at least 50 percent of the market coming our way”. “That is a big claim but if you look at our competitors it would be easy to eat into it with a new technology,” he says. “The mines are certainly interested and where we tender we Continued

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PC METALLURGICAL EQUIPMENT (PTY) LTD PC Metallurgical Equipment (Pty) Ltd started specialising in the manufacture of different products for the mining industry. Equipment for polyurethane spraying and moulding are built in-house. Engineering packages are available for the different products for spiral gravity separators, hydro cyclones and screens. Development is the keystone to success in the future. It plays an important role in the continuous upgrading of existing and new products and techniques. The company operates from its own premises in Pretoria. A fully equipped tool room and skills are used to produce all the moulds, dies and jigs for the products. The company is stable resulting in long service records and a considerable amount of depth among these employees. Tel +27 12 541 2010 Email metquip@mweb.co.za

www.metquip.co.za

PC Metallurgical Equipment (Pty) LTD Manufacturing a variety of products for the mining industry

PUMPS - SCREEN PANELS - SPIRALS - HYDROCYCLONES Contact Us: 209 van Eden Crescent, Rosslyn, P.O.Box 911 796, Rosslyn 0200 - South Africa Tel: +27 12 541 2010 Fax: +27 12 541 9091 Email: metquip@mweb.co.za

www.metquip.co.za

are successful. We have been going out to market and making the mines aware of the new technology. Now we can go into a growth phase. It is coming. 50 percent of SA market in five years isn’t unrealistic.” What’s the secret to his success? “I’m passionate; passionate in my work,” van Ryssen says. “I started the company and I don’t work for a boss - what I do I do for myself and I do it for the company. Also i’m confident as all my all my senior management are hand-picked. They can be trusted and are just as passionate to see the company moving from strength to strength. I have got the cream of the crop in the company. We look after them and that is where the success is. “I can’t sit still – I always innovate and look to improve.” This is definitely one to keep an eye on. To learn more visit www.cyclones.co.za.

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T H E

DRILL Reverse circulation drilling specialist SBD Guinea has worked on some of West Africa’s most significant and exciting exploration projects and operating mines. Writer Ian Armitage Project Manager Debbie Clark

estern Australia-based drilling contractor SBD Guinea (‘SBDG’) has had a presence in West Africa for well over a decade. In recent years, West African countries have increased exploration, production and export of minerals including gold, iron ore and bauxite and SBDG has capitalised on this expansion. SBDG’s corporate base is in West Perth. It has drilling operations in Guinea and Senegal and its African corporate office is in Conakry, Guinea. It has worked with the likes of Rio Tinto, Anglo American, BHP Billiton, Bellzone, and Teranga Gold. Founded by Executive Director Graham Keys, SBDG was formed in 2001 and is a recognised industry leader in the African RC drilling market.

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It has been heavily involved in Rio Tinto’s Simandou project, a world-class iron ore mining project located in the south-east of Guinea. “Simandou was our flagship and core operation,” says SBDG General Manager Matt Franklyn. “We operated RC, diamond and maintenance contracts there between 2001 and 2012. “Simandou has the potential to be a globally significant mine. The construction of the mine and related infrastructure will positively impact on the Guinean economy and people. It was exciting to be involved in the development of a resource of this magnitude.” Since 2001 the number of mining companies and contractors in Guinea “has increased dramatically,” he says.

“When we first entered the African market there weren’t a lot of Western companies in West Africa. In the mid 2000’s more started to enter the region, mostly Australian and Canadian miners. These companies are now a large employer in the nations in which they operate. It’s pleasing to see the social development initiatives mining companies are increasingly engaging in.” SBDG has also been heavily involved in Iron ore group Bellzone Mining’s Kalia project in Guinea and at their operating Forecariah mine. The Kalia project is Bellzone’s flagship operation. SBDG completed all RC exploration at Kalia, as well as Grade Control drilling. “Kalia and Simandou are two of the largest iron ore projects in West Africa,” says Franklyn. “Simandou will be the largest integrated iron ore mine and infrastructure project ever developed in Africa, producing 95Mt/y at full production. Kalia has a JORCcompliant resource in excess of six billion tonnes. Kalia and Simandou still require the associated infrastructure in order to commence production and export. This should occur in the coming years, and will lead to a surge in the number of Guineans in the workforce. “We have also worked across the border in Senegal for Teranga Gold at their Sabodala gold mine. We drilled over 80,000m of RC at Sabodala, comprising exploration drilling as well as 300m pre-collars for Diamond rigs in the operating open pit Sabodala mine. “The Bellzone and Teranga jobs started in early 2010. They ran for three years up until 2013. I think the fact that the contracts we’ve operated have been a minimum of three years speaks volumes for the quality of service we provide.” SBDG focuses on first class safety management system, and the employment of experienced, highly skilled personnel. They are key differentiators in a competitive

market. “We combine RC and mechanical expertise with a critical focus on safety, environmental conservation and cultural development programmes,” says Franklyn. “And we provide all clients with a high level of service and a commitment, working with them to safely achieve their exploration targets.”

Simandou has the potential to be a global significantly mine. The construction of the mine and related infrastructure will positively impact on the Guinean economy and people. It was exciting to be involved in the development of a resource of this magnitude”

SBDG own and operate a fleet of track mounted Atlas Copco Explorac 220 RC rigs. The Explorac sets itself apart from its rivals through its safety features. “All of our rigs are equipped with automated rod handling systems, fire suppression, on board sampling units, under body carbon spillage trays, and working at heights safety systems,” says Franklyn, who highlighted the fact that the control panel can be set up at a distance of 10m from the drill rig, giving the driller an unimpaired view of the crew and operation. Similarly, the rod handler joystick can be situated 15m from the rig, placing the operator

out of the ‘line of fire’. These features are of critical importance in minimising the risk of an incident caused by a falling rod string. The Explorac 220 RC is powered by an electronically governed Caterpillar C18 engine with low emission outputs “They’re more fuel efficient that our rivals,” says Franklyn. “We estimate they use approximately 30 percent less fuel than competitors’ specialist RC rigs, while offering comparable performance. With the current increased focus on cost control, this is a significant advantage. Importantly the smaller size of the engine and body of the Explorac doesn’t detract from the productivity. It can still drill in excess of 400m. Also, the air capacity of the Explorac and auxiliary compressor and booster units we operate means we are able to produce a quality, dry sample. Quality samples are crucial to our clients and something we pride ourselves on delivering. “The compact manufacturing of the Explorac is similarly an advantage. Combined with the fact our rigs are track mounted, this means we are able to operate in mountainous terrain with ease. The design and mobility of the Explorac also makes it ideally suited to infill and grade control programs, where setting up quickly between holes is vital.” Exploration contractors in Africa and worldwide currently are feeling “the pinch” due to reduced exploration budgets by major and junior mining companies amid lower commodity prices. Resources companies have reined in expenditure in the current environment. Juniors are currently having difficulty accessing capital, says Franklyn. “Major miners, on the other hand, are refocusing spending on mines already in production rather than on exploration efforts, which they can cut without any immediate effect on revenue,” he explains Continued

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G U I N E A

TECHNIDRILL Created in 1989, Technidrill today integrates development, manufacturing and distribution of drilling products, with 50 people on 4 sites in France. Our company is present in 60 countries all over the world. Since 2011, Technidrill is integrated to the Eurofor Group, completing the drilling machine’s offer of the group. Our clients are in mining and quarries, geotechnical drilling, special foundations, waterwell drilling, geothermal drilling and demolition. OUR PRODUCTS Technidrill proposes a large range of products for the following applications: Core drilling with wireline core barrels, conventional core barrels, special core barrels, casings and accessories Destructive drilling with rotary products, top hammers, down the hole hammers, overburden drilling products and accessories

For that reason SBDG is undergoing “a rebuilding phase”. The aim is to “make ourselves known to more companies, and emphasise the range of services we can supply at all stages of the mining cycle” and “to capitalise on the long term potential of Africa”. And there is plenty of potential. “We see the slowdown as a minor phase. As investor confidence returns and West African nations continue on their path of economic and social development, we see a massive opportunity in this underexplored, under-developed part of the continent.” So what does SBDG have to offer prospective clients? An intimate knowledge of working in remote African locations, the safest, most reliable crew and equipment available and a critical spares list.

“It’s a schedule of essential parts which, if damaged, can cause a breakdown” says Franklyn. “We have spares of these items in country, on the shelf, at all times. We currently have over $1 million worth of parts in country. This system is designed to maximise utilisation of our rigs and equipment.” SBDG is all set for a bright future on the African continent. “We are in West Africa for the long haul. We’re excited to be part of the mining industry assisting in the development of crucial infrastructure and opportunities for West African nations and their people. We have the equipment, commitment to safety, crew and key African exploration experience to thrive for decades to come.” To learn more visit www.sbddrilling.com.au.

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Reverse circulation with specific tools, subs, rods and accessories Soil tests with monitoring units, probes, tubes, accessories and associated services. OUR AMBITIONS Technidrill’s development ambitions are: To Master: by reaching excellence levels and criterias To Innovate: by proposing pioneering products To Expand: by opening on new markets.

Tel +33 6 89 65 33 94 Email rolf@technidrill.com / sales@technidrill.com

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F E A T U R E

2013 Technidrill : products of world class excellence RODS • Standard • Stainless Steel • Remet, Metzke, PIP, CIP

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Z.I. Carros - 1re avenue | 18e rue - B.P.433 | 06515 Carros Cedex - France Tél. : +33 (0) 4 92 08 82 20 |Fax : +33 (0) 4 92 08 82 29 Contacts: sales@technidrill.com | rolf@technidrill.com WWW.AFRICAOUTLOOKMAG.COM

A U R E U S

M I N I N G

Aureus Mining Gold Producer

TO BECOME L IBERIAâ&#x20AC;&#x2122;S FIRST COMMERCIAL

Aureus Mining Inc. is engaged in the exploration and development of gold deposits in highly prospective and under-explored areas of Liberia and Cameroon. Writer Hannah Eiseman-Renyard/ Nick Smith Project manager Debbie Clark

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ureus Mining Inc announced in September that it had secured a debt financing package worth $100 million to develop Liberia’s first commercial gold mine. Where most junior miners have struggled in the current market to raise finance, after a period of extensive due diligence, two South African banks committed to provide debt funding for its New Liberty gold project. This has followed on from the successful raise of $80 million through equity in November 2012 which kick-started the building of the mine. The $100 million debt package is made up of $88 million from Nedbank and Rand Merchant Bank and $12 million provided by RMB Resources by way of a subordinated debt facility. Significantly, the $88 million has been underwritten by the Export Credit Insurance Corporation of South Africa. This deal is anticipated to cost roughly six percent a year in financing, provided half of the senior debt package value is spent on content from South Africa. “It’s not an easy period in the mining industry at the moment,” says CEO David Reading. “It’s a real positive endorsement of the project and the mining team that we are able to complete this transaction.” The financing package considerably de-risks the New Liberty project, putting Aureus in an extremely advantageous position compared to its peers. Despite the volatile gold price over the last 12 months, some sources such as CRBC World Markets have estimated that the real cost of one ounce of gold is $1,500. Aureus believes they will produce an ounce of gold at an all-in cash cost of under $1,100 which provides a healthy margin at today’s gold price.

However, with an established democracy in place, the political situation is much more stable, and with many years’ experience on Aureus’s board of directors, the stage is now set for the first commercial gold mine in the country. “We’ve also built a team of capable people from board-level down with a track record of building mines in West The strategy from Africa,” says Reading. Construction has already started the outset in on site. Most of the equipment creating Aureus was to for the New Liberty project will be harness the potential of sourced from South Africa however the precious metal assets the key partners and suppliers are based worldwide. With good in Liberia and Cameroon road connections, the project is and to rapidly develop the located only 100km from the nearest platform to become a shipping port, Monrovia, making import and export logistics more mid-tier gold producer cost-effective. within the next few years” Aureus boasts considerable upside in addition to their flagship New Liberty gold project. Only 40km north-east of the project, within the 457km2 Bea The company plans to produce a total Mountain Mining license, Aureus of 859,000 oz of gold over the eightis undertaking exploration work year life of the open pit project, with on the Ndablama gold target. average annual production of 119,000 Ndablama is situated within a 13km oz over the first six . gold corridor with multiple gold “The Archean rocks of the world targets. To date work has been host 20 percent of the world’s gold undertaken at six targets in this deposits,” says Reading. “I would corridor which include Ndablama, safely say that Liberia now is the most Gondoja, Leopard Rock, Ndablama under-explored portion of the West North, Koinja and Gbalidee. African craton.” A recent 18-hole diamond drilling Mr Reading has plenty of programme has outlined multiple experience in the field, having gold intercepts associated with pioneered gold exploration in West three distinct high grade mineralised Africa for over 20 years. zones. Exploration work has recently “From about 1993 onwards I was stopped due to the onset of the lucky enough to be part of this rainy season, however threephase of exploration and we dimensional geological and grade did indeed explore most of the modeling of the deposit is ongoing and will shortly be validated by Francophone countries. The result an independent expert, following of that work was at least 20 mines which, Aureus expects to deliver coming into production. Liberia at that stage was not able to participate maiden resources at two of their exploration targets. for obvious reasons.” In addition there have been very few major new gold discoveries in recent years, making it an excellent investment proposition in the mid to long term.

Continued

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A U R E U S

M I N I N G

DIGBY WELLS ENVIRONMENTAL Preferred African provider of environmental, social, health, and risk consulting services Sustainable mining solutions across the mining life cycle Fully integrated feasibility studies, due diligence assessments, economic evaluations and risk assessments Mining and Environmental Legal services Environmental and Social services provider to the resource industry across Africa

Construction of school building at the village relocation area being constructed by Aureus for the community of Larjor

Aureus Mining Inc was registered in Canada in 2011, following a split from African Aura (now Afferro Mining Incorporated). It has an office in the UK, is listed on both the TSX and AIM stock exchanges and is becoming one of West Africa’s fastest growing gold exploration and development companies. It has operations in both Liberia and Cameroon and employs around 200 staff: both full-time and contract workers on a project-by-project basis in Africa, and has the stated strategic objectives to be a gold producer, expanding through highimpact exploration to join the midtier ranks. “The strategy from the outset in creating Aureus was to harness the potential of the precious metal assets in Liberia and Cameroon and to rapidly develop the platform to become a mid-tier gold producer within the next few years,” says nonexecutive chairman David Netherway. “I am pleased to report that Aureus is well on the way to achieving this strategy, spearheaded by the significant progress made at

Gold, Coal, Diamonds, Platinum, Base Metals, Energy, and many more.

New Liberty. This project is on track to produce gold from early 2015 and will be the first commercial gold mine in Liberia.” Between the geo-political situation and the geology, Liberia looks to be one of the great untapped sources of gold. “I think the history of the company over the past two years is one of evolution, from an exploration company to a developer and soon to be a mining company,” says Reading. Aureus’ six-strong board of directors seems poised to take the challenge to new heights and will leverage its vast African experience in successfully developing New Liberty. Mr Reading himself is the former CEO of European Goldfields and the former General Manager of African exploration for Randgold Resources. The rest of the board combine expertise from various mining and gold mining companies, accountancy firms and large multinationals. The first gold is expected in the first quarter of 2015, signaling a whole new phase for the company, and the country.

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Tel +2711 789 9495 Email info@digbywells.com

www.digbywells.com

SRK CONSULTING SRK Consulting (UK) Limited is part of the wider independent SRK Group of consulting practices which includes approximately 1,600 employees located in 50 practices in 22 countries. SRK provides professional technical consultancy services to the mining and metals sector, encompassing multidisciplinary technical studies and due diligence for mineral assets including exploration through to development, operation and mine closure. Clients include private companies, publicly listed companies and public sector organisations, ranging from: junior exploration companies, to mid-tier developers and vertically integrated global producers; financial, accounting and legal advisors to the mining and metals sector; sovereign wealth funds; governments; regulatory authorities and EPCM contractors.

www.srk.co.uk

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

R E S O U R C E S

Future’s bright FOR ZIM’S AFRICAN CONSOLIDATED RESOURCES

African Consolidated Resources is a company perched on the brink of great things. This Zimbabwe-focused company has projects covering gold, nickel, platinum, copper, phosphate and diamonds. Africa Outlook talks to Chairman Roy Tucker about what the future has in store. Writer Hannah Eiseman-Renyard Project manager Debbie Clark

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frican Consolidated Resources (AFCR) has been active since 2004 and has made great use of first mover advantage, purchasing an enviable portfolio of over 12 key projects at a time when many companies are struggling to raise the capital for new ventures. “It’s been quite a difficult investment background, but we have been successful in getting a number of properties,” says Chairman Roy Tucker. “We are progressing from being exploration and prospecting only to development and mining too – and this partly changed because of the world economy.” It’s safe to say that the development is currently going extremely well. We spoke to Mr Tucker the day after African Consolidated Resources announced that the definitive feasibility study (DFS) had been completed on time and within budget for the Phase 1 being the oxide cap of its 3.2 million ounce PickstonePeerless gold site in Zimbabwe. The DFS established a maiden reserve of 136,000 oz at 2.06 g/t. This is merely the feasibility study for Phase 1. The full open pit planned for the site is reported to have 813,000 ounces of gold at 5.1 g/t, producing a much higher yield. “We regard the oxide pit as just a stepping stone for the larger pit,” says Tucker, who aims to raise capital through the bankable Phase 1, while feasibility studies are carried out on the extremely promising Phase 2. At a time when the gold price is volatile and banks are skittish, raising the funds – even for a project this promising – is tricky, but African Consolidated Resources have plenty of options. “We would be willing to possibly sell part of the mine to raise funds,” says Tucker “We are looking at a variety of options.” Continued

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However, with a current drought of funding for new exploration in the industry, a bird in the hand such as this is worth plenty – and is set to become worth even more. “People talk about the gold price a lot but there’s been a lot of work into the real cost which must ultimately underpin the price. CRBC World Markets have done a lot of work and found the real cost of one ounce, taking into account all exploration and other costs has now reached at least $1,500. In addition there have been very few major new gold discoveries in recent years and eventually that’s good for the gold price... eventually.” Indeed, AFCR’s feasibility study used a 2014 gold price estimate of $1,250 per ounce, a 2015 price at $1,350 and a $1,500 price thereafter. On these assumptions this is an especially sweet investment prospect, but the proposal remains profitable even at much lower prices. That said this is just one in AFCR’s portfolio. “Gold has to be our focus because we have the PickstonePeerless mine, but we’re not wedded to gold. On principle we want to be a multi-commodity company.” With nickel, platinum, phosphate, diamonds and copper also in the mix, AFCR has plenty to be upbeat about. The company has recently taken on a new non-executive director Neville Nicolau, former CEO of Anglo American Platinum. AFCR CEO Craig Hutton welcomed him stating, “Neville is a highly experienced and respected mining professional, who brings an enormous breadth of knowledge to the AFCR team at this critical time in our evolution into a development and mining company. His previous incarnations as CEO of Amplats and COO of AngloGold Ashanti give him an exceptional insight into the development of a resources company, and we hope to use this to leverage our position into a mid-tier multi-commodity production company.”

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R E S O U R C E S

With such ambitious growth goals, what are some of the challenges AFCR faces in the future? The costs of exploration claim costs from the Zimbabwean government are an ongoing issue for the industry as a whole – having risen 5,000 percent in recent years. “It’s a huge disincentive for greenfield explorations which is what we’ve previously been very good at,” says Tucker. The entire industry has been operating in a difficult political environment, but AFCR has adapted its plans accordingly and is upbeat about the future. “We’re aiming to have a very positive relationship with the new government of Zimbabwe.” In addition there is the Indigenisation legislation to consider as the company grows to produce profits. “Though we don’t yet have to indigenise the company as matter of law, as a matter of practice we plan to initiate this soon as a gesture of goodwill. We are also looking to employ a Zimbabwean COO in Harare.” As the political situation stabilises

For a small company we’ve got quite a broad width, and we are poised to become a much bigger company”

and investment rises, operations are steadily becoming easier. AFCR has not yet commenced any mining except on a trial basis, but hopes to be well into production at the Pickstone-Peerless project during the course of next year. “The local level of education is good and unemployment is high, so we look forward to job creation in the near future.” Though the company announced losses of $11.02 million for the year to March 31 2013, this was expected as exploration programmes continue. Meanwhile the company has raised $16.1 million in cash through private placement of 323 million shares. Further fundraising will be required, but the prospects are good. Phase 1 of The PickstonePeerless project is estimated to produce $50 million earnings post-tax and discussions are well advanced on the obtaining of debt finance. In addition AFCR has the important but earlier stage Gadzema gold project in Zimbabwe, which has the potential to be no smaller than Pickstone-Peerless, and an important copper project in Zambia currently held up by a legal process as well as other early-stage operations in Zambia (rare earths) and Romania. AFCR recently informed shareholders it has been invited to take part in an exploration by a copper mining company in Romania too and has signed a memorandum of understanding with Remin SA, Romania’s State mining company. What does the future hold? “We own three potentially world-class properties and we have a robust team to carry them out,” says Tucker. “For a small company we’ve got quite a broad width, and we are poised to become a much bigger company.” As soon as the Pickstone-Peerless project begins production African Consolidated Resources is guaranteed a steady - and probably rising – income with which to fund development on the rest of its property portfolio. One to watch.

Contact: Dirk Visagie | B Ing (Mining) Methuselah Mining (P/L) | 31 Grey Street Chegutu | Zimbabwe Cell number: +263 712 807972 / +263 772233553 Email: methuselah961@gmail.com

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E N E R G O L D

D R I L L I N G

GLOBAL SPECIALITY

driller Canadian company Energold Drilling Corp is listed on the Toronto venture stock exchange (EGD:TSX-V) and can drill in most conditions using modular portable drilling rigs which are manufactured in-house. Vice President of Operations for the Europe, Middle East and Africa Division, Richard Thomas, tells us more. Writer Hannah Eiseman-Renyard Project manager Debbie Clark

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nergold is unique in the industry and over the last 10 years has enjoyed a period of rampant growth. That growth has stabilized due to global market pressures in the resource sector but the firm has maintained a robust balance sheet, making a series of acquisitions in the mineral exploration, manufacturing and energy sectors, providing diversification of its drilling operations and the benefit of complementary skills. “We operate a fleet of over 140 mineral exploration rigs in over 20 countries worldwide and have become a global specialty drilling services provider,” says Vice President of Operations Richard Thomas. “We’ve a niche know-how of frontier drilling.” Envirodrill Ltd, which was a “private family company with 10 drills” in West Africa, was acquired in 2010 offering Energold a gateway into African markets. The firm was set up by Mr. Thomas’s father. “Within a year of meeting Energold Drilling Corp in March 2009, Envirodrill had done a deal and we became the managers of Energold’s African operations,” he says. “Fred Davidson, the CEO of Energold Drilling Corp calls it a semi-autonomous operation, which I think is very important. We’ve got the backing of the group, but we’re given the flexibility to approach different markets. I think the key to being able to offer the full service is a well-funded support network which the Group structure provides. We want to be able to provide the service the clients want, drill the holes, and do it in a costeffective way – without any drama – and that’s what we’re aiming to do.” Mr. Thomas has over 30 years’ experience of managing all types of drilling operations as do much of his EMEA Division team. “Envirodrill Ltd. was a family company set up in the late 70s. I joined it in 1981,” he

says. Even before the investment of the Energold Group, Envirodrill was looking to smaller, more portable type rigs. “We’ve got drill rigs which can be split down into modular parts, so each section can come apart. They can be carried by men or by land cruiser 4x4 vehicles, by mules or by canoes – whatever method is needed to allow site access. Each rig module weighs 180kg or less which allows us to carry the rigs through the bush or plantations and avoids the need for roads and subsequent land damage.”

Energold is wellfunded and that makes a dramatic difference. Energold has good resources, good coffers and diversified streams so the challenge is just the general global market downturn” This low-impact machinery reduces the need for infrastructure in remote areas and therefore the amount of damage and ultimately compensation which exploration companies might otherwise have to pay. “Our method greatly reduces those demands on the client.” With the support from the Energold Group, in 2010 the formerEnvirodrill operations were able to invest in greater numbers of the low-impact smaller drills, and build a strong niche offering. Mr Thomas’ operations went from being a private company of 10 drills, mostly in West Africa, to being part of a company with over 140 – 45 of which are part of the EMEA division, and with a much larger global reach. “As Envirodrill the biggest challenge was funding and Energold is well-funded and that makes a

dramatic difference. Energold has good resources, good coffers and diversified streams so the challenge is just the general global market downturn,” Mr Thomas says. He is looking to expand the division back into Europe and the Middle East, the latter region already has its first project in Saudi Arabia. “Having the niche offering of the portables is putting us in a good stead to go forward. The technological development has also been ongoing. With our sister Company in the UK, Dando Drilling International, we’ve assisted with development of the Energold Series 3.5 using experiences of operating the portable fleet on remote contracts and we’re by far the largest operator of this kind of portable exploration rig.” With a client-centric service, new technology and a strong cash reserves, Energold Group’s mineral exploration operations are spread widely across Africa, Central and South America and into Asia, with plans to continue expanding in the Middle East where they already have one rig operating and have bid further projects. In the EMEA division there is a “fiveyear plan to continue the growth up to 100 rigs,” says Mr Thomas. “It is subject to market conditions but we believe we can do it,” he adds. Another area for expansion is to return to old contacts and sites in Europe, where the quality of the Envirodrill work is missed. “We’re still pushing in Africa, that is our key market, but now we’re also developing into the old areas where we have been previously and where we’re going to try and drive growth.” Complimentary to the portable rigs, Energold offers its clients larger, conventional style drilling as well as air drilling with the RC rigs, ensuring a multi-faceted approach in the market place. In addition, the types of markets are changing. Continued

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D R I L L I N G

With commodity prices under downward pressure, Energold is expanding into water and geotechnical drilling and other mine site related programmes as well as continuing to serve its core market of mineral exploration. So, how does Energold reach these areas other contractors can’t? “We do this with a skilled core team and support staff,” says Mr Thomas. “Energold have got a drill school in the Philippines which was developed in the Envirodrill days and that Energold continued to develop. Obviously we’ve got a lot of rigs to keep busy and, you’ve got to have a pool of talent available to come through and operate your machines – especially to the standards that we require.” In addition, many of the staff have grown and risen through the ranks: “We look to skilled staff retention as a key part of our operations which allows us to offer a consistent level of service to our clients,” says Mr Thomas. By developing talent, Energold has proven its ability to operate in difficult geological conditions. An example of this is at a leading Iron Ore project in West Africa. “The recent Nimba project in Guinea provided some very tricky, difficult ground conditions but historically we’ve always had a reputation for obtaining core samples in difficult formations and our experience allowed us to succeed on this project where up to four rigs were deployed during 2012. We have found ourselves on tricky jobs where other contractors simply can’t perform and that is part of our specialised service offering.” Africa is an important market for the Group and Energold has pretty much seen it all. In its time it has worked in Sierra Leone, Liberia and the Democratic Republic of Congo – all countries who’ve experienced difficult geopolitical situations.

How does it maintain a working business model and reliable sources despite geopolitical tensions? “It’s challenging, let’s say that,” says Mr. Thomas. “Our model is to establish a local office and support structure, we develop local teams in most of the countries we operate in and have many local staff members in our Africa operations, many who have worked with the EMEA division management for more than 10 years, including drillers, local supervisors, drivers, mechanics and administration staff. The operations are all overseen from the UK EMEA divisional office and members of the UK management team make regular visits to all operations to review operations and liaise with clients and drill crews alike. Before moving into Africa, the EMEA management were involved in many UK and European projects, including Northern Ireland during the troubles there, and so have experience of working in areas with challenging politics and are familiar with overcoming the challenges that different countries might present but it all becomes normal, to be quite honest.” Energold’s EMEA division utilises the local knowledge it has gained and keeps close tabs on operations with daily reports by phone call, SMS and email, as local conditions allow, to all its operations around the world. “It’s a constant process monitoring the site and this level of communications ensures a steady and reliable information flow so we can ensure operations are running smoothly and the highest level of client satisfaction,” Mr Thomas concludes. To learn more visit www.energold.com.

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HALCO ROCK TOOLS

alco Rock Tools is a world class manufacturer of Down-The-Hole (DTH) drilling equipment based in Halifax, UK. Produced for more than 65 years, our products continue to be regarded as one of the most reliable and durable available today. This is due to our commitment to our customer needs, design expertise and rigorous product testing in extreme drilling conditions. Although predominantly used for mining, our DTH drilling products are also a premier brand in waterwell drilling, construction, quarrying, formation sampling and the oil and gas industry. From October 2013 Halco Rock Tools will be opening a brand new facility in Johannesburg for customer support, servicing and repair of our DTH rock drilling products. Also supported at this facility will be a strategic stocking area that will include the best fit products for the African market allowing the utmost agility to work around the customer’s needs in an ever challenging environment. Halco has always been associated with quality and service, with an ongoing commitment to customer satisfaction; We aim to provide consultation, fully qualified site assessments and 100 percent lifecycle support. We believe there is no better choice. To find out how Halco Rock Tools can reduce your cost-per-foot and give you breakthrough performance, please visit our website. Tel +44 (0) 1422 399900 Email salesuk@halcorocktools.com

www.halcorocktools.com

F E A T U R E

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T E C H N O L O G I E S

The Best Tools

FOR THE JOB

Filtration and separation technology specialist Roymec Technologies continues to supply its clients “best service and equipment to be found anywhere”. Writer Chris Farnell Project manager Debbie Clark

oymec Technologies is a company boasting impeccable credentials in the area of filtration and separation solutions. Its sound mechanical, process and project experience combined with its engineers’ full complement of in-house design and engineering expertise have made it a leader in the industry since it was established in the year 2000. The company has built itself a recognised name that has partnered with leading global companies, offering cutting edge solutions and the latest designs to its client base. It is actually a relatively small

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operation, and yet with its small size the company has advantages often not found with larger firms. As Mark Langton, the company’s Process Director explains, “Roymec Technologies is a separation technology supplier, particularly of liquid solid separation, coalescing filters and iron exchange. We’ve made a unique selling point of the fact that we tend to be a niche product supplier and being a small, flexible company we can adapt our approach to suit the client’s needs. We don’t supply off the shelf equipment; everything we supply is custom designed for each application. We invest significant time and resources

in process development, aiming to become the industry leaders in the technology we provide.” However, being a small company in a resource-led industry sector brings certain risks with it, and Roymec Technologies has faced some serious challenges in recent years. “We certainly felt the pinch in the recent downturn in the economy,” Langton admits. “We’ve been quite focused on base metals where the impact of the downturn has been significant. However, the application of our technologies in other industries has cushioned the impact on our company. One of the major challenges the company

is currently facing is the threat of Chinese supplied equipment entering our markets. We’re seeing Chinese multinationals buying mineral deposits in places like Zambia and the DRC, and then using their own engineering and expertise. “I think becoming world leaders in our specific range of technologies is the best approach to overcoming this threat. We’re also looking at the potential of joint ventures with Chinese companies. We want to partner with Chinese companies on their own projects when possible. Roymec Technologies also has the advantage of being able

to offer local post project support to those clients.” As a small but flexible company, the challenges of the market are only pushing Roymec Technologies to find new and more innovative approaches to their work. Warrin Rautenbach, the company’s COO, adds, “We have a broad customer base and wide market. We are now enhancing our efforts in providing post project support and maintenance contracts for our equipment. The traditional mining industry is very quiet, so we’re looking at other growth markets, such as Russia. Yet again, it all comes back to having the best product to offer.” Continued

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T E C H N O L O G I E S

BOLLORE AFRICA LOGISTICS/ SDV The most extensive integrated logistics network in Africa Flocculant Mixing Plant

Bollore Africa Logistics/ SDV have had a Presence in Africa for over 50 years We offer a full scope of logistics related services from vessel’s operations to inland distribution Bollore Africa Logistics/ SDV is the leading corridor operator from Dakar to Port Sudan With 14 port concessions and 11 multimodal platform concessions, Bollore Africa Logistics/ SDV is Africa’s leading terminal operator handling an average of 6.5 million tons of general cargo a year We accompany our clients in their projects with a global service and assist them in all stages of their projects whatever the sector: Mining, Oil & Gas (exploration and drilling), Energy and Other industries. Tel +27 11 398 5000 Email sales.south-africa@sdv.co.za

www.bollore-africa-logistics.com

NexGen Thickeners (Radﬂow Feedwell)

Fixed Bed Ion Exchange Plant for Uranium

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One of the major challenges the company is currently facing is the threat of Chinese supplied equipment entering our markets”

Leading Operator in Africa

1st: We are the 1st integrated logistics network in Africa 24: The number of port & rail concessions 43: The number of African countries where we are present 250: The number of subsidiaries in Africa 250: Million Euros investments per year 2 010: Million Euros turnover per year 6 000: Transport vehicles used in Africa

Bolloré Africa Logistics, a worldwide network dedicated to Africa

22 000: The number of people employed in Africa 3 500 000: Containers handled per year 6 500 000: Tons of freight handled per year

Mark Thompson +27 11 398 5000 m.thompson@sdv.co.za Mary-Anne Oldfield +27 11 396 0300 mary-anneo@sael.com www.bollore-africa-logistics.com

8 000 000: Square metres of warehousing space and yards

“We believe we’re becoming industry leaders in a number of the technologies we provide,” Langton agrees. “So rather than just focusing on Africa we’re offering these products to projects worldwide.” Of course, to be able to provide the best custom-designed technology you need to have a team of competent personnel on your side, and this is why recruitment is an issue that Roymec Technologies takes very seriously. As Rautenbach tells us, “We look to employ the most qualified and motivated individuals we can find. Their experience in this line is critical to us. We want people suitably qualified, highly motivated with the best experience. To this end we use qualified, market leading recruitment companies to source those people. When they get here we have a focused approach on their training, either one

Cobus Fourie 011 398 5000 c.fourie@sdv.co.za

on one or giving them the opportunity to attend conferences and industry shows anywhere in the world to get training specific to our industry.” Once they have the talent they need, Roymec is a company that’s determined to keep it, and they invest heavily in the professional development and working environment of their staff. “We have very low staff turnover,” Rautenbach says. “In fact since I’ve been here we’ve had only one person leave us. It’s a harmonious working environment, with a motivated group of people in an open plan office environment, so the connection between our staff is very close.” Every member of that staff is dedicated to ensuring that the technology Roymec has to offer is the very latest and best available in the industry, and R&D is a crucial part of everything the firm does.

“We have two spheres of approach in that regard,” Langton explains. “In the process environment we’re constantly visiting our customers to see how their technology is functioning and what issues it is facing or pitfalls it may have come across. And we test it in a lab environment to fix issues clients have on site. “Secondly our R&D department has highly qualified engineers that experiment with unique ways of testing theories to improve the workings of existing equipment. We spend a lot of our turnover on R&D, typically over $1 million on an annual basis.” By having the best tools for the job, Roymec Technologies aims to provide the best solutions possible to its market and customers. It’s a simple but effective philosophy. To learn more visit www.roytecsa.com.

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H P E

A F R I C A

IMPORTING Earlier this year Invicta holding company acquired High Power Equipment Africa. The acquisition was a “strategic investment which will enable Invicta to broaden its product offering to the plant hire, construction, quarrying and mining industries in South Africa and into Africa” said Tony Sinclair, CEO of Capital Equipment Group, the Invicta subsidiary which brought the company. Writer Chris Farnell Project manager Debbie Clark

s the only distributor of Hyundai’s earth moving equipment HPE Africa is a valuable resource for the industry and has been since it achieved this position under the leadership of Alan Grady 13 years ago. The company has made a flagship product of Hyundai’s range, distributing products as esteemed as Astra off-road, articulated and rigid dump trucks, Soosan hammers and drills, MB crusher buckets and Hyundai Packaged Power Stations.

Every product in HPE Africa’s range has been specially selected to meet the special needs of their South African client base. Their products confirm to European emissions standards, environmental regulations, build requirements and safety standards. With top of the line products and an uncompromisingly customer-driven focus, HPE Africa has seen exponential growth in its service of the plant hire, mining, construction, demolition and materials handlings sectors, for private and government customers alike.

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However in this day and age it simply isn’t enough to provide quality products alone and HPE Africa’s aftersales care features comprehensive full or part service contracts, available 24 hours a day, seven days a week from the firm’s stand-by workshops and parts departments. Internal technicians, artisans, the parts department and an excellent field service team are constantly working to provide excellent after-sales service to ensure minimal downtime on equipment.

G QUALITY

The company recognises that in the current climate it is important not just to provide top of the range equipment, but to be able to keep older equipment in perfect working order. This is particularly true when importing industrial equipment into Africa, where the climate and conditions can take a greater toll than the manufacturers originally planned for. Fortunately Grady himself has been involved with Hyundai Heavy Industries, and research carried out in Korea has led to new product being built to withstand even the most demanding conditions.

Fundamentally, HPE Africa has learned to thrive by understanding the needs of its customers. For instance, when Hyundai offered the Hyundai RC210-7 excavator, general manager Neil Sauls pointed out that it was a reintroduced version of the older Hyundai RC220-7LC excavator model. HPE Africa was able to market these products to businesses that had less in the way of financial resources but didn’t want to compromise on the quality of their products. HPE Africa is aligned with Hyundai in that it too

isn’t willing to compromise on quality to compete on price with inferior imports. As Sauls said in a recent interview, “As a result, we have reintroduced our older -7 technology, which is tried-and-trusted worldwide. The final outcome is that HPE Africa clients can now purchase a powerful and reliable 21-ton excavator for a highly competitive price.” In the current climate savings like this are crucial for businesses that depend on liquid capital to invest in and expand their business. Continued

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“In challenging economic conditions, the money saved on the purchase of the Hyundai RC210-7 excavator can be reinvested into the company to make it more financially stable,” Sauls pointed out, “or it may open up new avenues of opportunity for entrepreneurs who simply would have been unable to afford such an excavator in the past.” The Hyundai RC210-7 excavator includes features such as a medium undercarriage, standard boom and stick and a 1 m3 bucket capacity, the whole thing powered by a 5,9 ℓ Cummins 6 BT diesel engine, fully compliant with Tier II low emission standards established by the U.S. Environmental Protection Agency.

that customers do not have to wait for parts, and space is available in the warehouse to allow them to stock a wider variety of parts. As Sauls himself said, “HPE Africa endeavours to ensure that it is always available to offer a personalised and tailor made service for each of its individual clients. The company has 24-hour telephone numbers for parts and field service departments, in order to ensure that the customer gets the exact service that they deserve.” But HPE Africa doesn’t just see itself as having a responsibility to its customers. The firm also takes seriously its responsibility to the wider community, and they are heavily involved in assisting various charities through a scheme of donations and fund raising events that serve not The power and only to give something back to the versatility of the community but all to help improve staff Hyundai RC210-7 makes morale. In recent years the company has be responsible for helping out it the ideal choice for charities as varied as Animals in Distress, quarrying and CANSA, a HIV/AIDS hospice shelter, construction applications the Kempton Park Family Upliftment in particular” Center, Kind Hearts and Sea Rescue. This is all in HPE’s past however. The company’s future is set to be bigger “Compliance with EPA specifications and more exciting than ever before. ensures that Cummins engines Investment and management company minimise environmental damage Invicta Holdings, through the Capital by generating clean power, while Equipment Group of their holding increasing fuel efficiency and lowering company, Humuani Investments, have operating costs, without affecting recently come to an agreement to the power of the engine,” Sauls said. acquire 100 percent of HPE Africa’s “The power and versatility of the ordinary share capital. Hyundai RC210-7 makes it the ideal Tony Sinclair, CEO of CEG, is choice for quarrying and construction enthusiastic about the acquisition. applications in particular.” Speaking to journalists recently he As with all of HPE Africa’s products, said, “The acquisition is a strategic the company has a wide stock of investment which will enable Invicta to spare parts for the Hyundai RC210broaden its product offering to the plant 7. The company prides itself on the hire, construction, quarrying and mining in-house accuracy of its parts stock, industries in South Africa and into Africa. which currently stands at more than 97 The transaction has been approved by percent. A system of strict controls and the Competition Commission. HPE, the cycle counts ensures that fast-moving Hyundai earth-moving and construction parts are more readily-available so equipment and spare parts agency for

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CUMMINS

he South African division of Cummins - a global leader in the manufacture, sales and servicing of diesel engines and related technology - continues to expand its geographical footprint across Africa through service agreements with authorised partners such as HPE Africa. Cummins SA Whole Goods Lead, Gerhard Potgieter points out that the company is committed to empowering local OEMs and distributors by certifying their technicians. “Cummins places a strong emphasis on sharing its diesel engine expertise with tried and trusted OEM distributors such as HPE Africa, in order to provide the end user with the greatest return on investment,” he says. HPE Africa sales manager Alan Straw meanwhile notes that the most popular engines in the local Hyundai range are currently the B-Series, C-Series and Q-Series models. “These engines boast highly reliable, durable rotary fuel pumps that deliver a steady stream of pressurised fuel for strong performance across a wide range of African terrains and operating conditions in Africa.” Potgieter indicates that the construction and mining industries in Africa will play an important role in Cummins’ expansion plans. “Cummins sees the South African construction industry as a growing market, and it is a focus point moving forward. Beyond our borders, I believe that the most growth for Cummins in Africa will be generated from rapidly developing construction and mining industries.” Tel +27 11 321 8700

www.cummins.com/southafrica South Africa and surrounding countries, will form part of Invicta’s CEG and will continue to trade as HPE, operating as a separate entity from Invicta’s other related equipment operations.” HPE Africa may be becoming part of the CEG family, but it’s still firmly maintaining its own identity, and from what we’ve seen that can only be a good thing.

F E A T U R E

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Airtel Malawi

ON THE UP AND UP

As part of plans to meet growing demand for data services among its customers, Airtel Malawi has been deploying high-speed Internet capacity across its network. Managing Director Saulos Chilima tells us more. Writer Ian Armitage Project manager Donovan Smith

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irtel Africa, a subsidiary of Indian telecommunications giant Bharti Airtel, has operations in 17 countries. One of those is Malawi. It isn’t an easy place to operate in – we’ll get onto the challenges - and ranks 157 (out of 185) on the World Bank’s ease of doing business index. Airtel however is enjoying considerable success and is number one where quality of network is concerned. The launch of its 3.75G platform in the country is certainly aiding that. “Right now I would say the business is performing very well given the challenges we have in the economy,” says Airtel Malawi Managing Director Saulos Chilima. Malawi faced serious macroeconomic challenges in 2011 and 2012: growing fiscal deficit and rising inflation. The government, which came to power in April 2012 under the leadership of President Joyce Banda has responded with bold macroeconomic policy adjustment measures including the devaluation of the Malawian kwacha by 49 percent, with a move towards a flexible exchange rate regime, a tightening of monetary and fiscal policy and a removal of subsidies on fuel. The government has also re-engaged with the IMF, resulting in the resumption of direct budget support by donors. The reforms have helped, as evidenced by improved access to foreign exchange by the business community. Economic recovery, however, is fragile. “If I go back 12 months, hard currency exposures would certainly be one of the big lows,” says Chilima. “As a country, we’ve suffered and businesses have suffered. It’s affected several aspects of the business, least of which being the constraints it has put on expansion

plans. Obviously when you have a currency issue it impacts significantly on your bottom line. “We are also faced with energy problems and still experience inconsistent supply. As a result you have to resort to using generators and that puts the cost of running the network up significantly. But one of the important achievements in the last 12 months is the deployment of 125 solar powered towers.” Despite economic obstacles, Airtel Malawi has achieved much in the last year: the launch of Airtel Money being a major highlight. “We were first to market with a solution like this and Airtel Money enables customers to reduce dependency on physical cash while providing real time access to their balances in a secure environment,” says Chilima. “The mobile phone market has transformed the face of banking and financial services and Airtel Money offers a large segment of the unbanked population access to financial service.” Malawi’s finance minister has described the system as ideal for Malawi as “urban populations have typically had easy access to financial institutions while rural populations, on the other hand, have often been left out of the system due to high operational costs and distance from the urban centres.” “With Airtel Money, both the banked and unbanked customer are able to enjoy the benefits of affordable, fast and secure financial transactions,” says Chilima. Malawi has a low level of financial inclusion with only around half of the population accessing some form of financial services and only a small percentage accessing formal banking services. Airtel Money has been a huge success with 360,000 customers registered since it was launched in February last year. Continued

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We are leading in service performance compared to other networks... and our investments are aimed at continuously improving our quality of service”

The service has also been launched in Kenya, Zambia, Tanzania and Uganda. “We thought we should take the lead and introduce mobile commerce to facilitate transactions, create convenience and security and also bring in something that is a lot more modern in this market,” says Chilima. “The response has been great and the results we’ve seen have been tremendous. It is a great success story.” And it isn’t the only success. As part of plans to meet growing demand for data services among its customers, Airtel Malawi has upgraded from the 3G data service to a 3.75G network – a third generation mobile network which offers faster information transfer. The upgrade to 3.75G means Airtel now provides the fastest data speeds in the country, offering maximum internet speeds of up to 21Mbps (previously speeds reached a maximum of 7.2Mbps). The improved technology allows users to make video calls, download movies and music, watch live

streaming of events, upload and download information, access social media pages and mails from their mobile devices at the fastest speeds ever. Chilima says the data service being offered from the 3.75G network infrastructure is not only the widest and largest in Malawi but is also the best and most affordable in the country and said it ties in with the company’s “promise of giving its customers the best mobile telecommunication can offer”. Airtel has invested $5.2 million to upgrade its network infrastructure to 3.75G. “We are leading in service performance compared to other networks... and our investments are aimed at continuously improving our quality of service. Our subscribers have welcomed the upgraded network and it will help mobile phone users to make uninterrupted phone calls for longer distances due to its wider coverage as well as access data services such as internet which now has faster Continued

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Airtel’s new head office in Lilongwe

F E A T U R E

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speed than before. We always strive to maintain high standards so that we continuously provide an unmatched customer experience.” With this in mind, Airtel has remained committed to deepening its network coverage, particularly in rural areas – not easy given Malawi’s economic troubles. “It has constrained our expansion, but you don’t completely freeze, you just slowdown,” Chilima says. “At the same time you have to look at alternative means and ways of avoiding getting to a completely hopeless situation with the deployment. While it was a big challenge, being an international company that is backed by 16 other sister companies on the continent, you get benefits – financial muscle at a group level. Every operating unit must however be profit-making and sustain its own investment and we do that. So, we didn’t completely freeze the deployment, but we staggered it to compensate for the slowdown and the economic challenges of the last 12 months.” What about the situation now? Are things picking up? “Yes, it has improved significantly over the last nine months and there are good signs that the economy is getting back on its feet. Once that happens it becomes an environment conducive for more and more investment,” Chilima adds. Data usage will grow; so too will Airtel. He is excited. “We want to be ready to pounce. We are focusing on data and are in a good position there. We will also continue the 3G deployment. On the voice front, we’ll bring in quality improvements. That will be done through optimisation of the existing grid and, where there is clear indication that economic activity is improving, we’ll go for new coverage. We are poised to deploy and already have adequate infrastructure such that should we need to deploy we can do

The corporate suite

it. We are also investing in a new data centre. It will give us bigger capacity.” Mr Chilima became the first local Managing Director of Airtel’s Malawian operations in August 2010 and is one of this country’s youngest executive officers. He joined the company in 2006 as Sales and Distribution Director, bringing with him over 15 years experience in various sectors. “Credit has to go to the team - we are achieving some great things,” he says. “We will leave a legacy in Malawi where telecoms is concerned.” Two years ago, Airtel Malawi was awarded the best data operator in Southern and Eastern Africa by the Africa Telecom People Award for best overall network quality in 2010/11. It was also recognised as an OpCO of the year among all then Zain operators in 2008. To learn more visit www.africa.airtel.com.

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Airtel showroom

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Malawi Switch Centre Limited, 4-6 Victoria Avenue, Old Reserve Bank Building,P.O. Box 384, Blantyre, Malawi Tel: +265 1 820 051 / 1 821 042 Fax: +265 1 820 638 / 1 822 773 Email: helpdesk@malswitch.com Web: www.malswitch.com

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MEG

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TAKING A

GABYTE OUT OF THE

COMPETITION Airtel is redefining the data experience in Nigeria and is reaping the rewards – including a 92 percent increase in its internet customer base. Writer Ian Armitage Project manager Donovan Smith

ur pages are littered with investment opportunities. Whether it is opportunities in Kenya’s insurance market or new mines in Namibia, we’ve pretty much covered it all within the pages of Africa Outlook over the past six months. Investors are definitely excited by what Africa has to offer. And they are particularly excited about opportunities that exist within the telecoms sector. To quote the UK’s BT, “it’s good to talk”. Nigeria is one market causing quite the stir and according to U.S.-based research firm Pyramid Research, the rate of growth in Nigeria’s telecommunications industry and a large population are parameters that will continue to make the country one of the most attractive markets to investors in Africa and the Middle East. Pyramid Research is a company that provides international market analysis and consulting services to the communications industry and its study took a five-year look at the country’s telecommunications sector returns, saying that demand profile in the country, both for voice and data services, is high and by far, the largest in Africa. It also identified the sound regulatory regime put in place by the Nigerian Communications Commission (NCC), the industry regulator, as a key factor bringing about and sustaining the growth potential. One of the country’s leading mobile telecommunication services providers is Airtel, a firm that has seen its fortunes transformed and is now close to becoming Nigeria’s second-biggest mobile phone company. Nigeria accounts for 35 percent of Airtel’s sales in Africa. Its market share in the country is now at 20.2 percent. Continued

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Airtel Nigeria celebrates International Women’s Day

What’s that down to? Airtel is committed to “driving positive change” in the nation’s telecoms industry by ensuring a “steady stream of innovative product offerings to the market,” says Managing Director & CEO of Airtel Nigeria, Segun Ogunsanya. “We have redefined the data experience in Nigeria,” he says. Airtel was recently rated the fastest growing Internet/data operator in Nigeria based on a recent study carried out by industry regulator, the NCC. According to the report, covering the period of June 2012 to March 2013, Airtel recorded a 92 percent increase in its internet customer base. “Without a doubt this report confirms our leadership position

Without a doubt this report confirms our leadership position in providing reliable and fast 3.75G network coverage to telecoms consumers across the country”

in providing reliable and fast 3.75G network coverage to telecoms consumers across the country, especially as we have the widest data/ internet footprint in the country,” says Ogunsanya. “I must say it is a great feeling that telecoms consumers in Nigeria are beginning to realise that Airtel has the widest and most reliable 3.75G network in the country. I want to specially thank all our customers for the confidence they have reposed on us. As a network, we always feel a sense of constructive discontent; and this will, without a doubt, deepen our resolve and commitment as we continue to provide excellent network and service experience to all our customers. We are passionate about providing the most amazing hitch-free Internet experience to Continued

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London

Marseilles Portugal

India

Mumbai

Burkina Faso

Accra

Djibouti

Kano

Benin Togo Ghana

Nigeria

Abuja Oshogbo Abeokuta LagosSapele Warri Calabar Port harcourt

Ibadan

Yola

Cameroon

Gabon

Kenya

Congo

Libreville

Boma

Tanzania

Angola Luanda

Mozambique

South Africa Capetown

SERVICES PROVIDED: • TOWERS • MICROWAVE BACKHAUL SOLUTIONS • POWER SOLUTIONS • LOW COST RURAL SITE SOLUTIONS • DATA OFFLOADING

OTHER SERVICES PROVIDED: • BASE STATION ANTENNAS • CABLES AND RF • COOLING SYSTEMS • BUILDING SOLUTIONS • VALUE ADDED SERVICES • SERVICES

CHANNEL IT NIGERIA LTD. Plot 1434, Amodu Tijani Street, Victoria Island, Lagos, Nigeria Phone: +234 (0) 14 616 716 www.channelit.com

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telecoms consumers across the country.” In the last 12 months Airtel has introduced revolutionary High Definition voice services and a Google cache solution. It has repeatedly been voted the best telecoms brand in the country and at the prestigious eight edition of the Nigerian Telecoms Awards beat other Telcos to emerge the Industry’s Most Innovative Telecom Company of the Year, Telecom Brand of the Year and Customer Friendly Operator of the Year. Leadership newspaper also named it Best Telecom Company of the Year 2012. Airtel is determined to make the best services easy and affordable to the

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We are passionate about providing the most amazing hitch-free Internet experience to telecoms consumers across the country”

majority of Nigerians and make the most of existing and future “opportunities”. “There are opportunities in the Nigerian market,” says Ogunsanya. “We have a strong youth population. The uptake of trendy gadgets is on the rise and there is a huge demand for data just as there is demand for voice. Certainly, high penetration of smartphones is defining the mobile telephony landscape. The transition from voice to data keeps gaining traction and this is changing the game. You must also single out the extreme and huge demand for mobile broadband. The youths are early adopters with a large appetite for mobile broadband.” The company recently completed is Long Term Evolution (LTE) trial Continued

Channel IT

•

Background Founded in 2003 by Nigerian telecoms entrepreneur Bassim Haidar, Channel IT forms part of the Channel Group, a diverse pan-African company operating in the fields of Telecom and related Infrastructure, Distribution and Power Solutions, and increasingly active in the provision of Value Added Services (VAS) for the mobile industry.

Low Cost Rural Site Solutions- Solutions which Unlock revenues from new subscriber bases, on the edge, or outside the coverage of Operators, at remarkably low investments, and rapid returns

Channel IT is Africa’s largest independent distributor of Mobile Network Services, and is a trusted partner of Mobile Network Operators, boasting a portfolio of both integrated and stand-alone services and products specifically tailored to the region, falling under two broad categories:-

Our Vision Through collaboration with specialised partners, enabling access to leading global technologies, Channel IT aims to provide an integrated service which supports mobile operators in Africa, Asia and the Middle East.

1. Value Added Services (VAS) Airtime Credit service- Offering a convenient recharge facility to subscribers and enabling Operators to retain and support customers Electronic Airtime and Mobile Money PlatformA transaction platform which enables the sales of Electronic Airtime and Mobile Money transactions over POS terminals, mobile phones, ATMs and websites, 2. Mobile Network Infrastructure Tower Supply- Supply, installations and Maintenance of Angular, Hybrid, Rapid Deployment, Guyed Towers Base Station Antennas- Supply and Installation of Top of the Range 2G, 3G, and LTE Antennas providing high quality reception Cables and RF- Installation of Lightweight cost saving aluminium Feeder Cable, Connectors and RF Sub-Systems, enabling Operators to optimise existing infrastructure and ensure faster deployment of network upgrades.

SERVICES PROVIDED: • TOWERS

• MICROWAVE BACKHAUL SOLUTIONS • POWER SOLUTIONS

SIM and Bio Registration (KYC)- Supply of locally appropriate technology enabling an accurate registration process for SIM and Mobile banking • LOW COST RURAL SITE SOLUTIONS • DATA OFFLOADING

A Word from the CEO “I founded the company on two principles ‘innovation and delivering value’. Put simply, we have targeted areas where there have been key needs. We encourage our teams to collaborate with partners, combine this with product research, and then bring the idea through from germination through the process of development, and guarantee timely implementation. CIT builds a relationship built on trust with vendors, supplier and operators – and strengthening this through on time delivery of products and solutions.” Channel IT is currently investing significantly in the introduction of Value Added Services (VAS) across networks in operational areas, and I envisage that products and services will only form approximately 30 percent of our revenue in the future, as VAS becomes a core part of our business.

Tel +234 (0) 14 616 716 www.channelit.com

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FIRST CLASS GROUP LIMITED From our humble beginnings in 2002, FCGL commenced operations within the telecoms industry with the sales, installation and maintenance of specialized high precision cooling units Today, we have evolved into a formidable enterprise with footprints in virtually all major telecoms operators and some other reputable institutions both in Nigeria and on the West coast of Africa, where we provide high quality installation and support service solutions to critical data and switch center infrastructure

operations in Lagos and taken a huge step forward in launching a service that will support faster data speeds on mobile networks. “At Airtel, we pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers across the country,” says Ogunsanya. “Lagos is the commercial nerve centre of Nigeria and with the successful completion of the first 4G LTE trial we are ready for test in the other major cities across the country including the country’s capital, Abuja and Port Harcourt. “The Lagos trial threw up exciting results as data users could open up simultaneous HD Videos on Youtube without buffering. Download speed, under ideal conditions was 37 Megabits per Second (Mbps), while under non ideal conditions, was 32 Mbps; Upload speed was - 10.6 Mbps. Measurement under non ideal condition was done using Continued

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These activities include but are not limited to site acquisitions, Turnkey deployment of (prefabs & permanent) data centers, Installation & maintenance support for high precision cooling units, DC power solutions such as inverters and Ups’s, power filtration equipment such as AVR’s, fire suppression systems such as (FM200) etc. In addition, FCGL provides data center monitoring and facility management in several Data Centers throughout Nigeria and beyond

We have a strong youth population. The uptake of trendy gadgets is on the rise and there is a huge demand for data just as there is demand for voice”

With over 160 dedicated staff with diverse expertise and ethnicity spread across 15 states in Nigeria and led by a very responsive and customer-centric management, FGCL is capable of responding very promptly to client’s requests and is recognised widely for its cooling, power, fire suppression and DC facility management capabilities which it can provide at very short notice To deliver prompt and efficient services to it’s clients, FCGL partners either commercially or technically with strategic principals such as Emerson Network Power (SA) (PTY) Limited, LG and Daikin FCGL has in recent times worked either as main or subcontractor with some of the following clients namely, Airtel, MTN, Glo, MainOne, GT Bank, Emerson, Ericsson, Lagos State Government and some Federal Parastatals. Email office@firstclassgrouplimited.com

www.firstclassgrouplimited.com

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www.Speedtest.net. This shows our commitment to strengthening our position as a true pioneer of innovation in the Nigerian telecommunications domain in line with our overall corporate vision of becoming the most loved brand in the daily lives of Nigerians. At Airtel, we pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers across the country. At present, we are taking the Lagos success story to other parts of the country so that Nigerians will benefit from this innovation when finally unveiled.” Airtel’s burning passion is to create a new culture of services in the telecoms industry and become the “most loved brand in the daily lives of Nigerians” – its brand promise. Amongst other things, it has deployed mobile device and data experts to its shops to provide customers with data and device Continued

Commissioner for Education, Cross River State, Professor Offiong E. Offiong and Regional Operations Director, Airtel Nigeria, Godfrey Efeurhobo

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We pride ourselves as leaders and we are passionate about continuously creating the next innovation to empower telecoms consumers and enrich the lives of our customers”

VIRGO SERVICES NIGERIA

Designing, installing and servicing electrical and mechanical equipment

• Fuelling Services • Preventive Maintenance • Air-Conditioning • Lightening • Janitorial • PHCN • Power Utilities • Shelter Maintenance • Emergency Response

For more information pleace contact Adeoye Omololu on 07085340660 or visit www.virgoengineeringservices.com Plots 2,3,6&8 Chief Adeoye Adis Layout, adegbayi Area, old Ife Rd, beside Buso Rock Hotel, Ibadan

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AVIAT NETWORKS

viat Networks, head office at 5200 Great America Parkway, Santa Clara, CA 95054, is

the wireless expert in advanced IP network migration. Aviat Networks is in the business of manufacturing telecommunication equipment for Mobile Operators, Oil & Gas Companies, Network Service Providers and Public Safety establishments. We are building the foundation for the 4G/LTE broadband future. Our Solution Aviat delivers complete wireless solutions to evolve communications networks globally. Our products and services extend from the core to the edge of private and enterprise

solutions to boost their product knowledge and enhance their experience. “This is to provide customers with data and device solutions to boost their product knowledge and enhance their experience on our products and services,” says Ogunsanya. “The ‘Airtel Techies’, a team of tech-savvy young men and women are always on hand to attend to customer queries and concerns at our showrooms and contact centres. The introduction of Airtel Techie further Continued

networks. Our LTE proven Microwave backhaul solutions provide the most comprehensive IP transport features Commissioning of Airtel’s Adopted School, St. John’s Primary School

of any other wireless backhaul solution in its class. Our key products IP Mobile Backhaul solutions to

Mr Femi Oyewole, Regional Director of Airtel presents gift to First Lady Dame Patience Jonathan

enable mobile operators transform their backhaul networks to meet the explosive growth in new HSPA/4G/ LTE-based mobile broadband data services. Our innovative and marketleading Eclipse™ and WTM® microwave transport solutions provide a smooth migration path from existing TDMbased backhaul infrastructure to all-Ethernet/IP. Our solutions combine scalable capacity architecture to support future traffic growth while delivering fiber-like performance under the toughest conditions. Tel +234 1 270 1923-4 Fax +270 1 270 1888 Email info.nigeria@aviatnet.com

www.aviatnetworks.com

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Aviat Networks, Inc. (NASDAQ: AVNW) is a leading global provider of microwave networking solutions transforming communications networks to handle the exploding growth of IP-centric, multi-Gigabit data services. With more than 750,000 systems installed around the world, Aviat Networks provides LTE-proven microwave networking solutions to mobile operators, including some of the largest and most advanced 4G/LTE networks in the world. Public safety, utility, government and defense organizations also trust Aviat Networks' solutions for their mission-critical applications where reliability is paramount. In conjunction with its networking solutions, Aviat Networks provides a comprehensive suite of localized professional and support services enabling customers to effectively and seamlessly migrate to next generation Carrier Ethernet/IP networks. For more than 50 years, customers have relied on Aviat Networks' high performance and scalable solutions to help them maximize their investments and solve their most challenging network problems. Headquartered in Santa Clara, California, Aviat Networks operates in more than 100 countries around the world.

• All IP Packet Microwave • Hybrid Microwave • Trunking Microwave • Packet Network Synchronization • Network Management Nigeria Head Office Plot 274 Ajose Adeogun Street Victoria Island, Lagos, Nigeria. Tel: +234 1 270 1923-4 Fax: +270 1 270 1888 Email: info.nigeria@aviatnet.com www.aviatnetworks.com

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HELIOS TOWERS HTN was established in 2002 by Helios Investment Partners (HIP), a UK-based private equity fund and is Nigeria’s pioneer independent telecommunications co-location service provider, commencing operations in 2005. By December, 2009 the Company portfolio has grown to over 1500+ sites up from 100 as of 31st Dec. 2007: HTN is the only true co-location company in Nigeria offering Infrastructure sharing, Managed Services and Backhaul HTN’s customer base includes all Wireless Operators MTN, Zain, Etisalat, Glo, Smile,Spectranet ,IPNX, Swift Networks, Vodacom, Visafone, etc Value Proposition Speed to market- less than 10 days guaranteed Opex reduction of up to 30 percent guaranteed Zero tower site Capex investment by 70 percent Best Industry uptime of 99.99 percent guaranteed which exceeds the 70 percent industry average. Benefits Helps customers focus on core business of selling airtime Cost effective site roll-out and management Segun Ogunsanya, CEO, Airtel Nigeria

Improved network Quality of Service (QoS) 24/7 site monitoring through Lagosbased Network Operations Centre (NOC)

confirms our customer-centricity and innovativeness. It emphasised that the drive to consistently delight customers with best in-class service delivery remains Airtel’s priority as the company exists primarily to meet the expectations of its numerous customers. As telecom consumers, especially the youth, increasingly embrace Airtel’s robust 3.75g network that covers the 36 states of the federation and Abuja, there is a corresponding increase in

the use of data-enabled and highend phones. Naturally, enquiries on data and devices as well as other concerns are on the increase. That informed our decision to provide round-the-clock solutions to customers in this regard.” Airtel is a great place to work, an exciting organisation with a highly motivated workforce, which is “truly passionate about enriching the lives of our stakeholders and creating positive impact”, he adds. Continued

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Well programmed Procedures for site issues escalation and response Environmental cooling, site and shelter security Zero regulatory and security concerns. Our passive Infrastructure will reduce Capex requirements of the users and will enhance their financial flexibility and cost efficiency due to reduced set-up and operating costs. Tel +234-1-4616349 Email info@heliostowers.com

www.heliostowers.com

Nigeria

Providing site solutions as the heart of wireless operators By providing wireless operators with FULLY-MANAGED tower sites on a leased basis, we deliver the highest levels of QOS and the vast coverage that our customers need to grow ROBUST and EFFICIENT networks. At Helios Towers, we focus all our activities towards meeting and exceeding the needs and expectations of our customers by providing the highest quality service possible in an environmentally friendly manner. We do this through continuous strategic and technological innovation.

Address: 9, Alfred Rewane Street(Old Kingsway Road) Ikoyi,Lagos OďŹ&#x192;ce Tel: +234-1-4616349 Email: info@ heliostowers.com Website: www.heliostowers.com

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“Our corporate vision is to become the most loved brand in the daily lives of Nigerians. We are clear in our key objectives as we want to be the preferred by more customers, targeted by top talent and benchmarked by more businesses. “As a business, our core values include: Empowering people, Being flexible, Making it happen. Being open and humble and creating positive impact. At Airtel, we are connected as a team and we are committed to our corporate vision of becoming the most loved brand in the daily lives of Nigerians.” Airtel invests heavily in CSR and its concept of social responsibility is not limited to a concern with welfare schemes, charity work, or the occasional support for Health, Education, Security/Emergency, Sports, and the Arts. The company perceives and positions itself as an “integral part of society”, which must be socially responsible at all times in all its dealings,

SWAP

As part of our social investment in Nigeria we have initiated a partnership with the Ministry of Education to build and maintain schools, where rural children across the country will be provided free education, free books, and free school uniforms”

stablished in 2001 in Lagos, Swap is a leading independent owner and operator of

towers for wireless communications companies in Nigeria, with operating subsidiaries in Cote d’Ivoire and Ghana. Its primary business is leasing space on its multi-tenant tower sites to all major wireless operators in Nigeria pursuant to long term lease agreements. In addition, Swap offers site build as well as managed services to wireless operators in Nigeria, Cote d’Ivoire and Ghana. In Nigeria, Swap currently owns and manages approx 700 tower sites across Nigeria and executed one of the largest tower transactions in Nigeria to date with the acquisition in Dec 2010 of over 400 towers from Starcomms PLC and over 100 towers from zoom in 2009. Swap has over 1,174 tenants

Continued

as at 31 July 2013. For the fiscal period ending June 2012, Swap recorded revenue of $40 million. Segun Ogunsanya, CEO Airtel Nigeria

Headed by its founder, Mr. Olatunde Titilayo, Swap, with approximately 120 employees in Nigeria, Ghana and Cote d’Ivoire, is led by a highly experienced management team with diverse backgrounds in tower management, operations and deployment, telecommunications services and engineering. Tel +234 1 730 6995 / +234 1 844 9415 / +234 812 221 6081 / +234 803 203 1015 Email info@swap-ng.com / sales@swap-ng.com

www.swap-ng.com

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SWAP

“we share our space...your concerns...”

Setting International standard in Telecommunication infrastructure sharing across AFRICA.

We are a leading infrastructure sharing provider in Nigeria with “Best in class” SLA of 99.9% uptime. We guarantee quick time-to- market, which in turn translates to increased revenue and profitability for our customers. Our state of the art Network operating centre provide the best customer centric services across Nigeria.

www.swap-ng.com

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ADOLD ENGINEERING DEVELOPMENT COMPANY ADOLD is an indigenous engineering company that has emerged as one of the leading construction companies with participation in the Telecommunication sector for Turnkey base station projects Solution provider in the most prudent way Quality is our watch word as we strive to maintain the highest quality in the industry

Airtel is committed to social investment

We use our capabilities to provide innovative and individualistic solutions for our clients ADOLD provide services to the Oil and Gas sector through manufacture and sale of surface gathering equipment systems and design of platforms

maintaining high ethical standards and compliance with the rules and regulations in its methods and practices of doing business. “We are currently partnering with the government in the provision of education for less privileged children,” says Ogunsanya. “As part of our social investment in Nigeria we have initiated a partnership with the Ministry of Education to build and maintain schools, where rural children across the country will be provided free education, free books, and free school uniforms. In May, 2011, we commissioned our first Adopted School, Oremeji Primary School 2 in Ajeromi Ifelodun Local Government Area of Ajegunle, Lagos State. The commissioned Oremeji Primary School 2 is a six classroom block with an office for the head teacher and water borehole with lavatory facilities for the boys and girls as well as male and female teachers. As part of the programme, we also provided Continued

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We offer full range of services in engineering and management related to the construction industry. Tel +234 1 761 1256 Email adold@adoldengineering.com

Airtel will always support initiatives that will unleash the talent and innate abilities of the Nigerian youths and open doors of economic abundance for all”

www.adoldengineering.com

MAHINDRA & MAHINDRA LTD. & SCOA NIGERIA PLC

ahindra group, a $16.2 billion company is present in the Nigerian power generation segment through its brand Powerol along with its Nigerian partner, SCOA Nigeria Plc. Mahindra Powerol products from 7.5kVA to 200kVA are presently available in over 20 Countries across Africa, Middle East & Asia. Tel +23412802072 / +2348034027262 Email scoatrac@scoaplc.com

mahindra.com

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school uniforms, furniture, books and school bags for the children. All these were accomplished within a record time period of three months. This year, we have renovated and commissioned schools in Oke-Agbo, Ogun State and Ediba in Cross Rivers State. Our school in Amumara, Imo State, will be commissioned soon. It is our intention to also get into more communities as we plan to commission five more schools this financial year. â&#x20AC;&#x153;We are delighted to partner with the government and people of Nigeria in the quest to chart a new course for the development of education. Without a doubt, quality education offers children the best opportunity in life to realise their dreams and become the leaders of tomorrow. A great environment is also critical to the development of a sound mind. Continued

Ubah Ubasi of Alcon Nig Ltd; Airtel Nigeria COO, Deepak Srivastava; Samuel Ekpuk, CEO, Pierce Green Associates Ltd and Williams Ajayi at the Airtel Corporate Consumer Forum

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The Lagos trial threw up exciting results as data users could open up simultaneous HD Videos on Youtube without bufferingâ&#x20AC;?

TELCOMMUNICATION INFRASTRUCTURE | ELECTRICAL ENGINEERING POWER ENGINEERING

Tel: +234-12955150 | Email: info@pilotscience.com | www.pilotscience.com

Leading provider of facilities, infrastructure and project management

Plot 908, Lateef Jakande Road, Omole, Ikeja, Lagos Telephone: (234)-1-8988281, 08023628086 Email: info@hatfieldconsult.com | www.hatfieldconsult.com

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Official commissioning of Tech Mahindra’s Call Centre Facility in Abeokuta

It is, therefore, in recognition of the importance of education and as part our Corporate Social Responsibility initiative that we have committed to the adoption of public primary schools across Nigeria.” Airtel Nigeria recently pledged to help grow and develop Nigeria’s economy through sustained empowerment of SMEs. “We will always welcome every opportunity to continue its role as a catalyst; nurturing entrepreneurial dreams and aspirations of Nigerians and creating wealth across the country. We are committed to the growth and development of the nation’s economy through a sustained empowerment of the Small and Medium Enterprises (SMEs),” says Ogunsanya. “Airtel will always support initiatives that will unleash the talent and innate

abilities of the Nigerian youths and open doors of economic abundance for all.” “We will continue to be innovative in our offerings and strategic in building capacities to ensure that both existing and potential customers enjoy the best telecoms service experience

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that human ingenuity could offer. The good news is that we have a culture of supporting SMEs and, thus far, we have thrown our weight behind several SME initiatives.” The future is bright. Airtel is positioned as the operator of first choice for Nigerians, in a market

Our corporate vision is to become the most loved brand in the daily lives of Nigerians”

ALLIANCE SYNERGY POWER AND ENGINEERING LIMITED MECHANICAL SERVICES: •Design and construction of water systems •Water distribution systems – Pipe laying and reservoir construction •Heating & Cooling System S Design and Installation •Erection of steel structures and stanchions

ELECTRICAL SERVICES: •Power Distribution Design and Construction •Lighting Design & Construction •Communications Design •Elect •Electrical Systems •Linkage and connection to national grid •Maintenance of estate and municipal power services •Erection and commissioning of transmission towers

MAJOR CLIENTS: •Airtel Networks Nigeria Ltd •TKM Maestro Ltd. (MTN) •Westcom Technologies and Energy Services Ltd •Bank PHB Plc (Keystone Bank) •Banksome Global Resources Ltd LAGOS OFFICE: Maria Lodge, 19, Ikorodu Road, Maryland, Lagos. Nigeria. Tel: 08033236835 OR 08129023528 Email: info@aspelengineering.com www.aspelengineering.com

that shows so much potential. “Nigeria is a rich country of determined, energetic, and industrious people,” says Ogunsanya. “The country is moving fast towards the direction of a connected society, a positive and interesting development.” Most network providers are adopting a data-focused approach and with huge demand for data, it is definitely interesting times for broadband service providers. To learn more visit www.airtel.com.

SAGAMU OFFICE: 80, Hospital Road, Sagamu. Ogun State. Tel: 08062147620

• Project Implementation • Sourcing and procurement • Turnkey/Civil Site Built • Microwave Transmission • Antenna System/Feeder Sweep Test • Resource Vending • 2G-3G BTS Swap/ Capacity Upgrade • GSM Radio Base Station • Installation of Synchronization Equipments • Tellabs DXX Transmission Nodes • Fabrication and erection of Towers • Managed Services Tel: +234(0)8022909835 | +234 (01) 8441343 Email: intelligenceera.ng@gmail.com | www.intelligenceera.net

Customer Contact Solutions Nigeria Limited System Integrator and Business Process Outsourcer that provides contact centre solutions for Nigeria and West Africa. Contact us for more information: Tel: +234 1 6280112 Fax: +234 1 2716722 Email: sales@ccsnl.com / support@ccsnl.com / solutions@ccsnl.com

www.ccsnl.com CCSNL Partnered With:

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Leader ship

After acquiring the operations of Warid Telecom Uganda, Airtel Uganda is now hot on the heels of market leader MTN. Writer Ian Armitage Project manager Donovan Smith

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irtel Uganda is owned by Bharti Airtel the world’s fourth largest mobile phone operator and earlier this year acquired the operations of Warid Telecom Uganda. It was a watershed moment, a game changer, which saw the company’s customer base balloon - after adding Warid’s customers to its books, Airtel now has over seven million subscribers. The move strengthened the telecoms giant’s presence in the country and consolidated its position in the market. Airtel Uganda’s Managing Director VG Somasekhar says: “This happens to be the first in-market acquisition in Bharti Airtel’s history. We believe this market consolidation offers great synergies by bringing together the best of Airtel and Warid to better serve customers in Uganda. Now 7.2 million people in Uganda are able to access the most affordable, reliable telecommunications services in the country and also to connect globally, enjoying the benefits of ‘One Network’ that empowers over 270 million customers in 20 countries worldwide.” It’s fair to say the people at Airtel are happy. Ugandans are happy too. “We have seen a strong growth in revenue from our products and the expanding client base for our data services,” says Somasekhar. “Mobile Money has also been an area where we have introduced several new innovations with bank to Mobile Money account transfers and more pay bill options. We’ve also had incredible traction for our partnerships with Samsung, Huawei and the Ugandan government.” With a cumulative investment of $135 million Airtel has, with the Warid acquisition, brought further investment to enhance “customer experience,” he adds. “Regarding the merger, we have gone further to

harmonise Airtel and Warid call rates, products, data packs, and Mobile Money services increasing the value for money for Ugandan consumers on both networks.” Initially customers were anxious about the move, something Airtel was quick to act on. “Customer anxiety was proactively addressed through consumer awareness, and deliberate interactions with all stakeholders to create a deeper appreciation of the merger,” Somasekhar explains. “Consumer awareness has been vital, answering any questions customers had – it is after all the first ever in market consolidation involving telecommunications in the history of Uganda. This merger is a key part of our strategy to deliver industry leading performance. Together, we will continue the legacy of marketplace innovation to benefit consumers. The combination of Warid and Airtel has created an even stronger force in the Ugandan telecommunications market and it has received approvals and full support from the Uganda Communications Commission. This merger paves way for heightened competition improved customer service and continued innovation driving both ICT development and economic growth.” The consolidation has already opened up opportunities, as Somasekhar continues. “Our integrated distributors and Mobile Money agents are expanding their businesses. They are now serving more than seven million potential customers looking to buy phones, airtime and sim packs. This is a large expansion opportunity to most of them as they see more volume and value in their businesses. “This merger has provided Airtel with an opportunity to reach Ugandans from all walks of Continued

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OBOPAY MOBILE TECHNOLOGY

bopay’s pioneering mobile money service transforms any mobile phone into a convenient, easy and secure way to send or receive money, top-up mobile, buy online, buy via mobile, pay bills ,bulk Disbursements, cardless ATM withdrawals, cross border remittance, tax payments etc.

Airtel Uganda and FUFA officials ﬂag oﬀ Airtel Rising Stars season 3 that has seen young under 17 football talent brought to the surface in Uganda

life, whether they are in urban, rural, remote, or central areas. Furthermore, they will benefit from Airtel’s ‘One Network’ across 20 countries and get access to innovative products and roaming benefits in the near future. With Airtel and Warid customers being able to call each other on net rates, we have created a big happy family of 7.2 million people enjoying affordability and innovation.” Airtel’s main consideration in making the acquisition was that it is in line with its vision of being “the most loved brand in the daily lives of Ugandans” and Somasekhar believes that by acquiring a network like Warid, which had managed to establish itself as a favourite for many Ugandans, “we would be able to spread out and touch lives of more Ugandans making us the number one brand and network of choice”. “What does the Warid acquisition mean in the context of the wider industry? Well, it will create a superior and wider network and will see Airtel invest more in key areas such as technological innovation and customer service,” he says. “Specifically for Warid customers,

they are able to enjoy the benefits of the One Network with lower roaming rates across Africa and South Asia that other Airtel consumers globally have been enjoying such as the widest 3G coverage, Blackberry services and superior roaming services. “Through this investment Airtel has demonstrated its commitment to Uganda that Airtel has come to Africa to invest, and grow while contributing to the continent’s economic and social development.” Somasekhar says the merger made extremely good business sense, “creating a level playing field”. For the economy too there are the “medium to long term revenue inflows of taxes to the exchequer from the sector and overall development of the ICT sector,” he says. Airtel is positioned well for the future and it expects a bright one, Africa being the fastest growing mobile market in the world with almost 20 percent annual growth over the past five years. Indeed, the continent is now the world’s second largest mobile market after Asia with a total of almost 650 million users Continued

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The company offers mobile payment services to Mobile Network operators, Banks and Independent Financial Institutions in emerging markets of India and Africa. Our end-to-end solutions deploy branded services addressing a comprehensive range of use cases that drive incremental transactions and revenue. Obopay’s fully customized, future-proof technology protects partner investments through full life-cycle support. The company has a rich experience working with industry leading partners since 2005. Tel +91 80 4147 2771 Email Info@obopay.com

www.obopay.com

With Airtel and Warid customers being able to call each other on net rates, we have created a big happy family of 7.2 million people enjoying affordability and innovation”

F E A T U R E

Twitter - @obopay

Obopay provides the most comprehensive mobile money solutions and expertise to help our partners succeed.

http://www.linkedin.com/ company/obopay

Pre Pay, Pay Now and Pay Anyway.

Email: info@obopay.com Web: www.obopay.com

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Directors and Board Members during a recent Visit by Bhatti Airtel’s CEO Sunil Bhatti Mittal (front Center)

Zero Rates Local content for its customers along with the Minister for ICT Hon. Ruhakana Rugunda

Directors and Board Members during a recent Visit by Bhatti Airtel’s CEO Sunil Bhatti Mittal (front Center)

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and with these kinds of figures it is easy to see that there is huge potential in Uganda. “The telecommunications sector is continually growing in terms of product and service innovations and especially in Africa,” says Somasekhar. “Our focus is very much on high-quality service provision and increased penetration. It’s not good enough anymore to be reactive to some perceived demand. The opportunities in the industry lie in being proactive; in developing and providing product solutions and services which are compatible and relevant to our market’s needs. As a company those are the key areas where we will be growing and improving the business. “Over the past year, including the acquisition of the merger and SIM registration process, we have hit the ground running expanding the business. One of the ways has been to open new branches: a Premium Centre in Buglobi was opened with more retail outlets following regionally. Just weeks after the merger announcement a stream of new products and services were rolled out for call rates with the Bang Mob Kb, competitive international call tariffs, transfers between Mobile Money accounts and Equity Bank, Smart Internet Packs which start from as low as 500sUgx have all been introduced. All these areas have been exceptionally strong for us and we have taken huge strides in ensuring a seamless transition during the merger period for consumers. We have had an extremely good year. “Going forward, in addition to expanding mobile money services and providing competitive call tariffs one of our big growth areas will also be in data penetration escalating regionally and with quality innovations and improved technological capabilities for our subscribers.” Airtel will be looking to invest more in key areas such as technological innovation and customer service. Already it has introduced new data packs, international calling rates and opened up more premium centres to serve high value customers. “Mobile phones have completely revolutionised the way people do just about everything,” concludes Somasekhar. “We are really excited about the months ahead and we are focused and working hard on some amazing new products that we will introduce in the months to come and across 2014.” As Winston Churchill said, “To improve is to change; to be perfect is to change often.”

“We create brand demand”

• EVENTS • MARKETING • PROMOTIONS Plot 20 Kakungulu Road Ntinda / P.O. Box 213, Kyambogo Tel: +256 414 28977 / 0712310000 / 0702 000080 Fax: +256 414 289 888 www.balaammarketing.com

Balaam Marketing and Promotions Agency is the number one Events organizer in Uganda. The Agency is excellent in Concept development of major brand promotional and Public Awareness campaigns, plus Logistics provision that covers both national and localized scope.

Motion Media U Ltd, Plot 75, Bukoto Street. P.o.Box 24472 Kampala, Uganda Tel: +256 (414) 668486 Cel: +256 (752) 016070 Email:info@motionmedia.ug & rwehabura@taxi-ad.net

www.motionmedia.ug FRANCHISEE OF

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Pushing for more

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In recent months airtel Tanzania has slashed tariﬀ costs, making it easier than ever for tanzanians to communicate at the most competitive rates. Writer Ian Armitage Project manager Donovan Smith

irtel is a company familiar to us here at africa outlook. Flick through the pages of any of our recent publications and you’ll see a number of them have been dedicated to bringing you the story of the company’s growth in africa. and it’s quite the story. airtel africa, a subsidiary of Indian telecommunications giant Bharti airtel, has operations in 17 countries. we’ve brought you the inside track on things in Nigeria, uganda and malawi. Now it’s tanzania’s turn. airtel tanzania was launched in october 2001, positioning itself “as the most innovative mobile phone operator in the country”, the company said in information sent to an africa outlook researcher, and it has introduced many “firsts” in the telecommunications sector “providing communication services to all 26 areas in the tanzania region”. In keeping with what it has done in other african countries, airtel has also launched money services in tanzania, with even the most remote areas in the country able to take advantage of the service thanks to airtel tanzania’s “widest rural reach and quality network”. “we support the economy of tanzania by provision of opportunities to local experts in different fields not only in Tanzania but also across the region where it operates; having employed people to deal with network, dealer support, suppliers and freelancers in the market place,” the company said. airtel tanzania also provides customers with roaming services at their local rates while in East africa through a service known as one Network. It employs about 150 local people and provides indirect employment through its local and international partners such as IBm, Huawei, Nokia Siemens and Ericsson. Continued

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“airtel has a wide training plan, ‘for individuals and departmental training’,” the company told us. “the aim of this training is to help the employees build a strong reliable team that translates into improved customer experience. we encourage development of skills thus leading in advancement in the individual careers.” airtel tanzania runs the airtel Services academy (aSa), a special training for its Customer Care team; the airtel Centum Sales university (aCSu), which trains its Sales and Distribution teams; and the Business Enterprise academy. “what are airtel’s plans for the future tanzania? airtel will continue to strive to provide our customers with innovative products that are tailored to meet the individual communication service needs and lifestyles,” the company said. airtel tanzania’s mD is Sunil Colaso and he is responsible for strengthening the company’s leadership in both network availability and quality in tanzania. His mandate consists of further strengthening data and the VaS oﬀering and ensuring that Airtel money becomes the preferred m-commerce platform in the country. Prior to this appointment Colaso, who holds an mBa in marketing from the university of mumbai and has over 22 years of experience in marketing, distribution and sales, was Director for marketing and Distribution across 17 countries in africa. Before joining airtel africa, he was managing Director for warid in uganda. tanzania is a “key market” for airtel and its ambitious long-term plans are certainly impressive. of course, it has successfully launched 3.75g, rolled out airtel money and the future looks bright. “In line with our target of promoting innovation, products and services

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have been rolled out and they aim to serve the customer with great communication services,” the company told us. “Some of the services we have rolled out to the customers are Hamia airtel, Supa 5, and now the leading service that is has created a big buzz right now in tanzania is airtel Yatosha. Yatosha is a Swahili word meaning ‘enough’ and the response from our customers on the launch of this product has been positive.” airtel said the airtel Yatosha service “enables customers to call across mobile networks at affordable rates and it gives the customers a bundle that contains: voice call minutes, sms and internet bundle with the option of subscribing daily, weekly or monthly”. to subscribe the customer dials *149*99# and gets access to a variety of bundle packages that are tailored to suit individual needs. “we will be rolling out a new campaign soon,” the company added. “Following the success of airtel Yatosha, we have introduced airtel money Yatosha and this is another massive offer through Airtel Money. It will be a very exciting promotion in tanzania tagged ‘HakatwI mtu HaPa’ which means airtel money customers will not be charged anything for sending and withdrawing money.” airtel will continue to push more innovative products, customer beneficial promotions and strive to provide state of the art services throughout tanzania, it said.

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EF OUTDOOR LTD

F outdoor ltd, a leading outdoor advertising company operating in East Africa offering innovative outdoor visibility to the market while making a positive impact to the society through Public Private Partnerships EF Outdoor has partnered with different City Councils such as kigali, mwanza, Dodoma, Shinyanga, musoma and Iringa to achieve sustainable financing of installation and maintenance of efficient public lighting infrastructure in exchange of out of Home advertising rights. the project has helped in enhancing road safety, beautifying cities and prolonging business hours for traders. municipalities who once had the burden of maintaining the streetlights can now focus on other priorities such as education and health moreover, EF outdoor is providing branded bus shelters and litterbins improving lives and cleanliness. litterbins have also gone a long way in assisting municipalities with garbage management we go green! with a rapid growth in the aviation industry in tanzania, EF outdoor through PPP has augmented this development initiative by providing branded airport trolleys at kilimanjaro, mwanza and mtwara airports bringing much needed convenience to passengers. thanks to our clients you made it happen as your CSR too. Tel (+255) 754 058 812 / 784 813 856 Email info@efoutdoor.com

www.efoutdoor.com

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Dream L I V I N G

the

Ethiopian Airlines makes record high profit of 2.7 billion birr Writer Ian Armitage Project manager James Mitchell

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thiopian Airlines recently announced it made a record profit. The company’s chief executive officer, Tewolde Gebremariam, credited the profitability to the use of new, modern and fuel-efficient jetliners such as the Boeing B787 Dreamliner and B777, and his “exceptionally dedicated employees”. The company’s operating profit between July 2012 and June 2013 was 2.7 billion birr, 165 percent up from the profit it made the previous year. Net profit increased by 178 percent from 734 million to 2.03 billion and the airline generated a revenue of 38.5 billion, up by 14 percent. It transported 5.5 million passengers and hauled 174,000 tons of cargo during the year. “The 2012-2013 fiscal year has been a challenging year for the global industry in which many airlines faced factors that have affected their performance,” Ethiopian Airlines told Africa Outlook in a recent interview. “These factors include high and volatile fuel price and weak global economic situations which in turn reflect in low demand for travel. Although Ethiopian was no different and was faced with similar challenges, it managed to finish the year with record revenues and performance and continue its double digit growth registered over the last decade.” During the year, Ethiopian took delivery of 14 new aircraft, deploying ultramodern fuel-efficient aircraft. The Boeing B787 uses 20 percent less fuel - its airframe is predominantly made from composites, which account for 50 percent of the aircraft by weight. This makes the aeroplane significantly lighter than previous airliners in the same size category, thereby reducing fuel expenditure and costs. The aircraft also contributed

to Ethiopian’s green efforts as its 20 percent less carbon emission and 60 percent less noise pollution contribute significantly to mitigating the airlines impact on the environment. Ethiopian Airlines received its first Dreamliner in August 2012. The airline was the launch customer in Africa and the first outside of Japan, for Boeing’s new-generation airliner, which entered revenue service in October last year. Ethiopian has five B787s (it ordered 13), which, of course, has had some well documented problems leading to a grounding by the U.S. Federal Aviation Association (FAA), following incidents related to the battery, while smoke was detected on an Ethiopian plane parked at London Heathrow – issues with a Emergency Locator Transmitter (ELT) reportedly to blame. Ethiopian grounded its B787s until the end of April, for three and a half months, along with 50 Dreamliners grounded globally. A solution eventually lead to a retrofit and the planes were returned to the skies with Ethiopian’s Dreamliner being the first to return to service. This cost the airline however. Had it not been for those issues profits would have been even higher. But ‘onwards and upwards’, they say. “We’ve a lot to look forward to,” Ethiopian told us. Its achievements are nothing short of remarkable, especially in light of the Dreamliner issues and the fact that the aviation industry is grappling with stiff competition, high and volatile fuel prices and economic recession in Europe. Fuel expense now accounts close to 50 percent of total operating expense. Poor airport infrastructure, the absence of uniform aviation policy and regulation, high income tax and airport duties are among the problems faced in Africa. “The current trend of the industry

is very turbulent with the global industry expected to make a small margin of profit in general,” says Ethiopian. “The African aviation industry overall is not performing well. However the trend in the travelling public in Africa is very encouraging. This is due to the continent being the second fastest growing region in the world: we’ve a young and fast developing population and rich reserves of precious metals, large oil reserves and 60 percent of the world’s arable and uncultivated land. These developments have resulted in increased and huge investments and trade with the rest of the world. These developments have also resulted in increased travel to and from the continent as well as a growing middle class in Africa which has disposable income and hence likely to travel by air.” As a pan-Africa airline with the largest passenger and cargo network in Africa, Ethiopian seems to be well positioned to serve the demands of the growing number of travellers. However, this has not been without its challenges. “The regulatory framework in Africa is eschewed against African airlines. Non-African airlines often get more favourable air traffic rights than African carriers; currently 82 percent of the inter-continental traffic to and from Africa is operated by non-African airlines and the remaining by African airlines,” says Ethiopian. “In our view, there is unfair competition from Gulfbased airlines which have access to government subsidy and cheap fuel on top of a high operating cost environment in Africa.” Despite these challenges, Ethiopian remains on upward growth trajectory remaining the only African airline to make profits in the past three years. Continued

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The national flag carrier is also expanding its international routes. In the 2012-2013 fiscal year it opened nine new routes, a record for a single year. “Ethiopian continues to bring Africa together and closer to the world by connecting the continent to major trading centres by leveraging its network, fleet and experience,” the airline says. Indeed, Ethiopian is on a fast growth trajecatory which is a part of its 15-year growth blueprint dubbed Vision 2025. Already in its fourth year of implementation, Ethiopian has been working on transforming the airline into an aviation group. The aviation group will comprise seven strategic business units — Ethiopian Domestic and Regional Airline, Ethiopian International Passenger Airline, Ethiopian Cargo, Ethiopian MRO, Ethiopian Aviation Academy, Ethiopian In-flight Catering Services, and Ethiopian Ground Services. “Despite the challenges faced by the global industry as well as Africa, Ethiopian Airlines just finished third year of its year strategy dubbed Vision 2025 with what can be considered as the highest performance and profit in the industry,” the airline says. “Through Vision 2025, Ethiopian is transforming into an Aviation Group comprising of seven strategic business units. This will

see Ethiopian become a world class African airline with fleet size of more than 112, flying 18 million passengers and uplifting 820,000 tons of cargo to 121 destinations by 2025 generating $10 billion in revenue and $1 billion dollars in profit.” The seven business units are being developed into independent profit centres which will generate 50 percent of their profit from services rendered to third party clients (mostly African and Middle Eastern Airlines) on top their service to the aviation group. “The fast, profitable and sustainable growth set in Vision 2025 are being achieved through four pillars – fleet, infrastructure, human resources and systems which encompass cost leadership, operational excellence and efficiency, investment in latest IT, employing best practice business process as well as fleet modernisation,” the airline says. A key feature or overarching strategic objective of the airline is creating multiple hubs in Africa. It is working to develop a regional hub in Lilongwe, Malawi, after it recently bought a 49 percent share on the newly-established Malawi Airlines Ltd. Ethiopian is already operating out of a second hub in Africa in Lome, Togo, through a community airline called ASKY in which Ethiopian holds a 40 percent equity and is

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German President Joachim Gauck poses with the Ethiopian Airlines crew

Continued

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F training academy

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serves 22 destinations in Western and Central Africa. “Ethiopian has equity participation and provides technical, management and commercial support to ASKY, which has been in existence for three years and is doing very well in capturing the niche regional market in West and Central Africa,” Ethiopian says. “The objective with ASKY is to tap into the regional market and create hub to hub connection that enables ASKY to feed ET for the long haul intercontinental travel. This is being met satisfactorily.” It is also eyeing hubs in Central Africa. “The plan for 2013-14 is to continue in the current fast, profitable and sustainable growth,” the airline says. “Continue the implementation of the various facility expansions and open nine new international destinations - Singapore, Manila, Madrid, Niamey, Kano, Shanghai, Bata, Munich and Athens.” Ethiopian will also continue to introduce some of the current Orders of 35 aircraft: B777s, A350s, B787s, B737s, and Q-400s. This includes the introduction of B777-300 ER (Extended Range) in November this year making Ethiopian one of the few airlines in Africa to own and operate this ultrarange aircraft. Ethiopian serves 76 international (46 in Africa) across five continents and 17 domestic destinations. It has 60 aircraft with an average age of seven years, the youngest fleet in Africa. The airline employs 7,300 full time workers. It has created 20,000 direct and indirect jobs. “Ethiopian, as a pan-African airline first and foremost, has Africa, its home market, as its focus bringing the continent together and closer to the world,” the airline concluded. To learn more visit www.flyethiopian.com.

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2012 - 2013

MAJOR ACHIEVEMENTS July 16, 2012 - Ethiopian launched the first non-stop regular flight services between Africa and Canada with its twice weekly flights to Toronto. August 14, 2012 - (The beginning of a new era) Ethiopian made a historic achievement by receiving Africa’s First Boeing 787 as first airline in the world outside Japan to receive the aircraft. September 19, 2012 - Ethiopian made another milestone achievement by receiving its first in Africa B777 Freighter aircraft from Boeing. November 20, 2012 - Ethiopian Airlines CEO, Tewolde Gebremariam received African CEO of the year award from the African CEO Forum 2012 December 02, 2012 - Ethiopian Airlines scooped the International Diamond Prize for Excellence in Quality by the European Society for Quality Research (ESQR) in Brussels. December 12, 2012 - Ethiopian won the “African Business Leader of the Year” award from the Corporate Council on Africa (CCA) on December 12, 2012. January 12, 2013 - Ethiopian MRO approved for Full Airframe Maintenance Capability for Bombardier Dash8/Q-Series aircraft. February 27, 2013 - Ethiopian MRO Services developed shop overhaul capability for the CFM56-3 and CFM56-7 engines March 9, 2013 - Ethiopian Cargo inaugurated state-of-the-art perishable cold storage Facility. April 20, 2013 - Ethiopian selected as an “Official Carrier of the 50th anniversary celebration of the Organization of the African Unity African Union”. April 22, 2013 - Ethiopian Airlines awarded “Africa Deal of the Year Award’’ for the second consecutive year. (US EX-IM ) June 09, 2013 - Ethiopian won the 2013 Airline Reliability Performance Award from Bombardier Aerospace, for three years in a row. June 18, 2013 - Ethiopian received SKYTRAX World Airline Award for Best Airline Staff Service in Africa, at Le Salon du Bourget Air Show, in Paris. July 14, 2013 - Ethiopian CEO Wins 2013 Airline Strategy Award for Regional Leadership becoming the first African Airline CEO to receive the Regional Leadership award in the award’s 12 year history which is annually given out by Airline Business Magazine, a publication of Flight Global. September 9, 2013 – Ethiopian wins Passenger Choice Awards for Best Airline in Africa.

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NEW DESTINATIONS Ethiopian further expanded its network by opening eight new destinations in the budget year, namely: Toronto; Ndola; Kuala Lumpur; Muscat; Seoul; Cotonou; Blantyre; and Berbera. The year was also one in which Ethiopian showed great stride in all performance factors despite the effects of the grounding of its four Dreamliners for close to four months. Ethiopian Airlines was steadfast in its pursuit of growth and expansion maintaining an upward growth trajectory. In the financial year, the airline operational and financial results heralded a new milestone in the airlineâ&#x20AC;&#x2122;s history. Available Seat Kilometre (ASK): + 15 percent Passenger carried: + 13 percent Revenue Passenger Kilometre (RPK): +14 percent Available Ton Kilometre (ATK): + 13 percent Operating Revenue: +14 percent Operating Profit: +165 percent Net profit: +178 percent

Ethiopian Growth vs

GLOBAL INDUSTRY AVERAGE Ethiopian Growth vs. Global Industry Average RPK

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Source: IATA July 2012-May 2013; ET July 2012-Jun 2013

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In August JSE-listed pharmaceuticals giant Aspen Pharmacare pledged to contribute R5 million towards the establishment of the Nelson Mandela Children’s Hospital. The need for such a facility is clear: Right now there are only four dedicated children’s hospitals in the entire continent of Africa, one in Cape Town, one in Nairobi, and two in Cairo. Yet, there are nearly 450 million children. Writer Chris Farnell Project manager Eddie Clinton

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n South Africa there are 54 deaths per 1,000 children born every year compared to eight per 1,000 or less in the U.S., UK and Germany. Deaths among the under-fives are becoming increasingly concentrated in Sub-Saharan Africa, which is also where children are at the highest risk of death within their first month of life. It is a serious problem that will need a large scale solution. To this end, the Nelson Mandela Children’s Hospital has been launched, a project that will result in the largest children’s medical facility in Africa, building towards achieving the Millennium Development Goal of cutting mortality among the underfives by two thirds between 1990 and 2015. Nelson Mandela is a name that is recognised the world over as that of a great humanitarian leader but even now there are still people working to expand his legacy for a whole new generation. In his own words: “A children’s hospital will be a credible demonstration of the commitment of African leaders to place the rights of children at the forefront. Nothing less would be enough.” One of the people inspired by these words is Sibongile Mkhabela, CEO of the Nelson Mandela Children’s Hospital Trust. “The Nelson Mandela Children’s Hospital Trust was initiated by the Nelson Mandela Children’s Fund when, in 2007, Mr Mandela and his wife Mrs Graca Machel, personally requested that the Fund look into the healthcare needs of the children of Southern Africa,” she says. “This led to the establishment of the Nelson Mandela Children’s Hospital Trust, whose vision is to build a state-of-theart specialist paediatric academic and tertiary referral hospital providing child-centred, best quality medical services to the children of Southern

Africa, irrespective of their social and economic status. We are currently fundraising to build this hospital, and our overall target is R1 billion to build and equip the hospital, as well as training the medical professionals who will work in it.” The need for such a hospital is clear: Right now there are only four dedicated children’s hospitals in the entire continent of Africa, one in Cape Town, one in Nairobi, and two in Cairo.Yet, there are nearly 450 million children. “This shows that enormous gap that exists when is comes to the care that our children need,” Mkhabela explains. “Nelson Mandela Children’s Hospital will go towards fixing such disparities.” The new hospital will boast a number of unique features. It will be a specialist hospital that treats children with complex illnesses, including craniofacial, cardiothoracic, renal, pulmonology, haematology, oncology, and neurology facilities. The hospital will also serve as a valuable platform for training the next generation of medical staff. “As a training facility the hospital will be able to help build capacity in Southern Africa,” Mkhabela says. “Not only through those who are physically training at the hospital but, with the use of telemedicine platforms, consulting with those in the rest of the region as well.” The hospital will also make research a crucial part of its operations, allowing the facility to better treat the illnesses that are specifically affecting children in the region. However the training and research complement a holistic healing environment for children that also provides space for meditation and reflection for parents and staff alike, as well as therapeutic gardens for the children. This will be combined with nearby accommodation for the families of patients provided through Continued

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a partnership with Ronald McDonald House Charities as part of their pilot project in Africa. Perhaps most importantly, the Nelson Mandela Children’s Hospital will be open to children regardless of their economic or social background. South Africa’s Government has made significant progress in the healthcare sector through the introduction of a proposed National Health Insurance scheme. However, while neonatal units and Kangaroo Mother Care units have been successfully introduced across the board, not all children have benefited equally from the improvements. The Nelson Mandela Children’s Hospital will create easier access to tertiary healthcare services for all children, rich and poor. Although the hospital itself will be capable of treating only a portion of Africa’s many vulnerable children, the project’s founders foresee it having a much wider impact thanks to twinning arrangements and satellite units across the region. It’s an ambitious project, and so naturally the path has not always been easy, particularly in the current financial climate. “As a capital campaign with a target of R1 billion, fundraising in these economic times has been challenging,” Mkhabela admits. “However we are optimistic that we will be able to start building soon, with the hospital admitting its first patient in the last quarter of 2015.” Fortunately the project is backed up by a team that is more than up to the task of raising the necessary capital in time. “We have a small but dynamic team of fundraisers, which is led by a fundraising committee of known philanthropists and businesspeople,” Mkhabela explains. “The common factors among our team are passion, integrity and good team work.” Continued

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Progress has been good; the projects business case was completed in July 2012, with a public fundraising campaign being launched soon afterwards. The campaign has galvanised the support of corporations, foundations and the general public, raising sizeable donations. The project has garnered support from figures as senior as South Africa’s Minister of Health, Dr Aaron Motsoaledi, who a letter of support for the Nelson Mandela Children’s Hospital project stating that: “The National Department of Health hereby confirms that due process has been set in motion... It is my belief that this letter of commitment will provide surety and continued support by government to this initiative to ensure that the construction and commissioning happens to benefit the children of South Africa and other countries within the SADC region.”

JSE-listed pharmaceuticals giant Aspen Pharmacare recently pledged to contribute R5 million towards the cause, with CEO Stephen Saad, one of Africa’s richest men, declaring that he hoped the firm’s contribution “will lead to a further call of action from Corporate South Africa to support this extremely worthwhile initiative”. The Nelson Mandela Children’s Hospital is a large-scale solution to a large-scale problem that has been seen to bring out the best in everyone involved. We’re very much looking forward to seeing how it turns out.

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Africa Outlook profiles Pietermaritzburg’s Daymed Medical Centre and Private Hospital, the realisation of one man’s dream. Writer Ian Armitage Project manager Eddie Clinton

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n 2004 The Daymed Medical Centre and Private Hospital opened its doors. The facility is the realisation of a dream of Dr Navind Dayanand, who has used his own money to set up it up. And he’s doing a fantastic job. “We employ 120 staff and have 85 beds, casualty, general and semi private wards, maternity, renal dialysis, an operating theatre, x-ray, ICU, ambulance services and much more,” Dr Dayanand explains. “It has taken a lot of resilience, hard work and determination.” Dr Dayanand is one of the most respected doctors in Pietermaritzburg and the hospital was born from a determination to “do something better”. “I wanted to have a small hospital basically and we’ve kept on growing,” he says. “How has it changed? I initially founded a medical centre and it grew significantly leading to the opening of a hospital, initially 22 beds and it increased and increased over time. And the range of medical services has also expanded.” In the last 12 months the hospital has performed “very well” with ward occupancy at “about 93 percent”. It has now embarked on an extension which will see the number of beds rise to 215. “We are extending the hospital now to almost 100 beds more,” says Dr Dayanand. “The building has commenced already and it is a multimillion-rand expansion. It is a modern hospital with better facilities and catering for the needs of today.” He loves the challenge of running his own hospital. “You get to do everything and I’ve been able to put my own imprint on everything. I think we can be more creative too and have a family-like atmosphere. Of course, decision-making is more straightforward and swift, so we Continued

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can be nimble. Basically all hospitals in South Africa are run by corporate companies. I am one of the few that runs my own hospital. I have to watch over everything.” But Dr Dayanand wouldn’t want to take all the credit for the hospital’s success. “The biggest thing is having the right staff,” he says. But, getting “the right people” especially as the hospital expands will be challenging. It will take time and a short to “We have a problem with nursing medium term solutions was needed. staff and we’ve actually been “There aren’t adequate nurses going to India to get them,” Dr trained in South Africa and those Dayanand admits. that are trained are moving abroad, going to the Arab countries,” admits Dr Dayanand. “They are tempted to leave for financial gain. Decision-making is There are better paid jobs there, more straightforward better conditions and less and swift, so we can infectious diseases. “We’ve had to recruit from India be nimble” because of the shortage of qualified professionals here. Also, I trained in India and qualified there and Indians In March, South African Health have a high work ethic, while the Minister Aaron Motsoaledi unveiled standards are excellent. Until we get a national strategic plan aimed sufficient numbers of nurses coming at rebuilding and revitalising the out of training institutions we will likely nursing profession. continue recruiting from overseas. The National Strategic Plan for Nurse Their arrival in South Africa has and Education, Training and Practice was will ease the burden of South African developed by a task team appointed nurses battling staff shortages.” by Motsoaledi following the 2011 Daymed’s ongoing expansion, Nursing Summit, which identified the which will be complete in 2014, main challenges facing the country’s will help position it for the future, nursing profession. especially in the fast-changing The plan seeks to promote high healthcare landscape in South Africa quality training along with high where healthcare can be divided into standards of professionalism and well- private and public – the haves and resourced practice environments for have nots, essentially. nurses and midwives. “There is stark difference between It also aims to ensure strong public and private healthcare in leadership at all levels of nursing South Africa; no more so than when and midwifery practice, as well as looking at the facilities on offer,” the training of the number of nurses admits Dr Dayanand. required to deliver healthcare services It is amazing that in a country of 49 in the country. million people less than nine million

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are covered by health insurance, referred to as medical schemes. The public healthcare system is characterised by run-down buildings, missing medication and widespread corruption, and not a day passes without a story about broken equipment leading to deaths or facilities closing because they cannot afford to pay their creditors. The private healthcare system is a world apart. It has worldclass facilities, the most advanced equipment and the best doctors. The result is that the quality of private care is much better than that offered in the public healthcare system. Of course, the National Health Insurance (NHI) scheme has been proposed as a way of addressing the balance. It has yet to be made law. “The Government says it is not intended to destroy the private sector believing it will make the sector more sustainable by making it levy reasonable fees,” says Dr Dayanand. “It is being piloted and it will impact all hospitals. We will need all available beds. The national health will give healthcare access to everyone. How will we position for that? We are quite well adjusted and will be able to provide care to more patients in the NHI once our expansion has finished. Demand for hospital beds is great. Hospitals have a shortage of beds and there aren’t enough to cater for the population.”

Family butcher shop supplying the finest and freshest meats

www.willowton.co.za The Daymed Medical Centre and Private Hospital is an ultra-modern private and registered hospital which offers a “full and comprehensive range of medical services to all sectors of the community at affordable prices”. From its inception, a spirit of caring, dedication and community involvement has become its hallmark. “We’re well known for our quality and we are popular,” says Dr Dayanand. “Our modern architecturally designed building creates an ambience of friendliness and warmth and certainly adds a new dimension to what we offer. Those principles will remain in the expansion.” It is personal attention that sets Daymed Private Hospital apart from its competitors; Dr Dayanand is keen to maintain that. “What’s the secret to our success? Hard work, dedication and hands on management,” he concludes. The hospital is staffed by a handpicked team of experienced hospital management team and nursing staff who together have spent many years in the nursing field. To learn more visit www.daymed.net.

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Premier Service Medical Investments is Zimbabweâ&#x20AC;&#x2122;s premier healthcare service provider. Writer Ian Armitage Project manager Eddie Clinton

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imbabwe’s healthcare was once the envy of Africa. It was outstanding. But in the last two decades it has deteriorated, made worse as a result of the country’s economic crisis. Indeed, Zimbabwe’s economy boomed after independence in 1980, a time when healthcare standards were high, but from 2000 the seizure of white-owned farms led to chaos in the agriculture sector and the economy shrank by half. In 2008 hyperinflation of 231 million percent broke the national currency and left millions of people hungry and healthcare in crisis The adoption of the U.S. dollar and South African rand however have brought a measure of stability and the government’s national budget for this year stands at $3.8 billion, with the economy projected to grow five percent. And, on the healthcare front, the government is acting. It wants to have the highest possible level of health and quality of life for all its citizens – and that means ensuring every Zimbabwean has access to comprehensive and effective health services. Currently however, if you don’t have medical insurance in Zimbabwe, the method of payment is cash. There is no room for negotiation of terms. Levels of access are low. The result is a sorry state of affairs when it comes to affordable medical treatment. Key to improving this will be companies like Premier Service Medical Investments (PSMI), a subsidiary of Premier Service Medical Aid Society (PSMAS) “established in year 2003 with the objective of servicing PSMAS members at affordable costs as well as the generality of the public”. “The geographical spread as well as health services offered by

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PSMI makes it easier for corporates and individuals to access services anywhere in the country,” PSMI’s website says, with PSMAS’s website adding that it is “the largest and most experienced Medical Aid Society in Zimbabwe. But of paramount importance to the Society is how well members are served as reflected by the motto – We Value your Health. PSMAS offers several scheme products and has 10 branches around the country.” Zimbabwe-based PSMI provides a one-stop shop for health services from diagnostics and family health to hospitalisation and has grown from a small enterprise to become Zimbabwe’s largest medical service provider with several hospitals, clinics and pharmacies across the country, as well as other services like a fleet of ambulances. It also has operations in Botswana and South Africa, according to our research, and last year following the successful implanting of an implantable cardioverter defibrillator (ICD) device to a cardiac patient,

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PSMI group managing director Dr Farai Muchena said the operation had provided a platform to re-establish cardiac specialties in Zimbabwe. “The success of the implant and the life saving therapy that the patient continues to receive is testimony to the skills and temperament of medical professionals involved. We hope that this is the first of many such successful cardiac therapies for the people of Zimbabwe and that our cardiac skills development programme continues to improve patients with lifesaving therapy in years to come,” said Dr Muchena. He added that the initiative was a collaborative initiative between PSMI and a South African cardiology company – Amayeza Abantu Biomedical – to bring cardiac specialties, resources and skills back to Zimbabwe. “It is hoped that this will culminate in the roll-out of appropriate resources to re-establish cardiac specialties in Zimbabwe,” Dr Muchena concluded.

Zimbabwe-based PSMI provides a one-stop shop for health services from diagnostics and family health to hospitalisation and has grown from a small enterprise to become Zimbabwe’s largest medical service provider with several hospitals, clinics and pharmacies across the country”

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Dr Muchena has been credited as the man driving growth at PSMI. His aim is to continue investing in Zimbabwe and the region. “We are passionate about what we do,” PSMI Business Development Director Nhamo Marandu told our researcher in a recent call. PSMI’s website says that it “offers a Healthcare fund to corporate organisations as a means of availing healthcare services to employees of various companies.” It offers, “Healthcare services in various disciplines and in various geographical locations in a bid to be readily accessible in different areas”. “Where PSMI is not present, we enter into agreements with “Referral Partners” who can attend to PSMI patients, thus extending our services to areas where we may not be physically and professionally present,” it adds. “PSMI works closely with the Association of Healthcare Funders of Zimbabwe (AHFOZ) in providing continuous service within agreed parameters that satisfy members and member organisation.” PSMI is the largest healthcare giver in the country. PSMAS controls over 60 percent market share in medical insurance. To learn more visit www.psmi.co.zw.

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Pioneering HEALTHCARE IN GHANA

The Korle Bu Teaching Hospital is Ghana’s “premier healthcare facility”. It is also celebrating its 90th birthday. Writer Ian Armitage Project manager Eddie Clinton

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hana has made significant improvements in healthcare and there have been remarkable achievements when it comes immunisation rates and under-five mortality in the past few decades. A lot of thanks must to go to the government and its development partners. However more can always be done. Established on October 9 1923, the Korle Bu Teaching Hospital continues to “blaze the trail” when it comes to healthcare and over the last 90 years has grown from an initial 200-bed hospital to a world class medical facility with over 2,000 beds. That makes it Africa’s third largest hospital. It is also the leading national referral centre in Ghana. “Korle Bu, which means ‘the valley of the Korle lagoon’, was established as a General Hospital to address the health needs of the indigenous people under Sir Gordon Guggisberg’s administration, the then Governor of the Gold Coast,” the hospital’s website says. “Population growth and the proven efficacy of hospital-based treatment caused a rise in hospital attendance in Korle Bu. By 1953, demand for the hospital’s services had escalated so high that the government was compelled to set up a task force to study the situation and make recommendations for the expansion of the hospital. The government accepted and implemented the recommendations of the task force which resulted in the construction of new structures, such as the Maternity, Medical, Surgical and Child Health Blocks. This increased the hospital’s bed capacity to 1200,” it adds. Indeed, the hospital has changed considerably over the years and gained teaching hospital status in 1962, when the University of Ghana Medical School (UGMS) was established “for the training of medical doctors.” The UGMS and Continued

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five other constituent schools are grouped under the College of Health Sciences to train an array of health professionals. All the institutions of the College however, undertake their clinical training and research in Korle Bu. “At the moment, the Hospital has 2,000 beds and 17 clinical and diagnostic Departments/Units,” Korle Bu’s website says. It has an average daily attendance of 1,500 patients and about 250 patient admissions. “Clinical and diagnostic departments of the hospital include Medicine, Child Health, Obstetrics and Gynaecology, Pathology, Laboratories, Radiology, Anaesthesia, Surgery, Polyclinic, Accident Centre and the Surgical/Medical Emergency as well as Pharmacy,” its website adds. “Other Departments include, Pharmacy, Finance, Engineering, General Administration.” The Hospital also provides sophisticated and scientific investigative procedures and specialisation in fields such as Neuro-surgery, Dentistry, Eye, ENT, Renal, Orthopaedics, Oncology, Dermatology, Cardiothoracic, Radiotherapy, Radio diagnosis, Paediatric Surgery and Reconstructive Plastic Surgery and Burns.

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The Reconstructive Plastic Surgery and Burn Centre, the National Cardiothoracic Centre and the National Centre for Radiotherapy and Nuclear Medicine in particular also draw a sizeable number of their clientele from neighbouring countries such as Nigeria, Burkina Faso and Togo. “Korle Bu Teaching Hospital continues to blaze the trail when it comes to the introduction of specialised services,” its website says. “It recently carried out the first ever kidney transplant in Ghana. It is one of the few hospitals in Africa where DNA investigations are carried out. Other specialised services the Hospital provides include brachytherapy intervention for the treatment of prostate cancer and keyhole surgeries. Plans are underway to venture into molecular testing and employ the use of cutting edge technology. All these are part of the grand plan to offer a wider spectrum of specialist care to position Ghana as the hub of health tourism within the West Africa Sub region.” Korle Bu’s cancer ward, which is amongst the best in West Africa, recently underwent a radical facelift with help from Vodafone Ghana.

GOKALS-LABOREX LTD Gokals-Laborex Ltd epitomises the extent of sophistication within the Ghanaian Pharmaceutical market and industry

Established as a joint venture between Gokals Pharmacy Limited and Eurapharma, Gokals-Laborex blends local knowledge and expertise as the third largest distributor of pharmaceutical and allied products in Ghana, with the benefits of Eurapharma, one of the leading multinational pharmaceutical distributors The main aim of this venture is dedicated to ensuring unfettered accessibility to quality, reasonably priced, reliable authentic promotion and distribution of pharmaceutical products to the Ghanaian public Customer satisfaction is a key component of Gokals-Laborex’s customer policy With a staff strength of 124 consisting of qualified and highly trained pharmacists and medical representatives Gokals-Laborex is equipped to compete in the pharmaceutical industry of Ghana Gokals-Laborex currently represents major multinational pharmaceutical companies namely Pfizer, Sanofi, Novartis, Roche, Novo Nordisk, GlaxoSmithKline, Mepha, Denk, Bayer and Innotech Gokals-Laborex, being an indigenous Ghanaian company, has established links with all major stake holders within the pharmaceutical industry and has received numerous recommendations, accolades and awards despite its recent arrival on the pharmaceutical scene in Ghana Gokals-Laborex prides itself as a good corporate citizen and periodically supports many philanthropic causes. Tel + 233-30-2249180 Email sales@gokals-laborex.com

www.eurapharma.com

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Distributors for

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The new “Herbert Osei Baidoo Cancer Ward” was established as a lasting legacy to Herbert Osei Baidoo, a member of the Vodafone board, who passed away last year and it uses “21st Century technology to enhance the treatment of cancer, which is one of the leading causes of death in Ghana and the leading cause of death worldwide according to the World Health Organisation,” Korle Bu says. The 650-square-foot ward is located on the second floor of the Surgical Department and was in need of renovation to “provide the necessary standard of care for patients with cancer”. It now has a brand new chemotherapy suite with reclining armchairs and entertainment; a new cytotoxic room, where pharmacists can mix and store toxic drugs safely; an increased and equal number of beds for male and female patients; new washrooms with en suite facilities; air

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conditioning throughout the ward; and a new waiting room for visitors and families. “In a further move to enhance the treatment and recovery of patients, Vodafone and RLG have supplied handsets and airtime, that will be given to doctors, nurses and patients, to help them stay in touch and ensure that care plans are being followed,” Korle Bu said in a statement. “Vodafone has also implemented a maintenance programme with Korle Bu to ensure the long-term sustainability of the ward.” Kyle Whitehill, CEO of Vodafone Ghana said: “We demonstrated our passion for healthcare with the launch of our award winning TV programme Healthline, which is all about empowering Ghanaians to take control of their health. Transforming this ward into a world-class cancer treatment facility is our way of

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contributing towards the delivery of improved health care for Ghanaians.” Vodafone has also completely transformed the Children’s Cancer Unit. “We are absolutely delighted and proud to have such world-class facilities in our hospital. The entire team is excited about continuing to provide improved standards of care to cancer patients in Ghana,” said Professor Afua Hesse, CEO of Korle Bu Teaching Hospital. Ghana has one of the best healthcare systems in Africa but there is always room for improvement. The government is looking at raising sector spending and reforming the medical system as it aims to honour the Abuja Declaration pledge and achieve the UN’s Millennium Development Goals and ensuring universal access to basic healthcare. To learn more about the Korle Bu Teaching Hospital visit www.kbth.gov.gh.

BEINGOD LTD

Proud to be associated with Korle Bu Teaching hospital

Contact: Prince Dogbey prncdogbey@yahoo.com | Tel: 00233 244 509 195

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foodforthou

Tsebo Outsourcing Group offers market-leading services in outsourced catering solutions, contract cleaning and hygiene solutions. We talk to Dr Chris Jardine, the man who heads up its Catering arm. Writer Ian Armitage Project manager Stuart Shirra

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r Chris Jardine heads up Tsebo Catering Solutions, a South African market leader, which is part of Tsebo Outsourcing Group, the country’s largest hospitality services and facilities management company. He is the former group CEO of the J and J Group, a diversified investment and management company and has worked in the logistics, IT and telecommunications, and industrial and financial services sectors. Besides his strong operational track record, Dr Jardine has also served on the boards of companies as diverse as MTN, Transnet, Macquarie First South and Union Carriage and Wagons. He holds BS and MS degrees in Computer Science and a PhD in Information Technology, all from George Mason University in Virginia. It is an impressive CV and he has been using all of his experience to do some pretty interesting things at Tsebo Catering as it looks to keep pace in a changing world, faced with competition for talent. “We needed to differentiate ourselves by doing things that haven’t been done before,” he says. “What became evident was focusing on the basics first. We started with a refreshed operational excellence programme and we’ve looked at our service culture – from the way we greet our customers on a dayto-day basis to the way we present our food. We also looked at our reporting systems and importantly we’ve had a huge drive to invigorate and transform the way we deliver experiences to customers.” It’s paid off, with a few notable contract wins, much to Dr Jardine’s delight. “Tsebo is a fascinating place to work right now. It is very exciting. Very tough because of market conditions but we are an incredibly

exciting point in our history for a number of reasons. “Our Group was fortunate enough to win a major pan-African contract with a global leader in financial services for South Africa at the back end of last year – our facilities management company landed the facilities management contract – and as part of that Catering has taken the responsibility for providing services to the entire portfolio in SA and we looking at one or two sites across the border as well. “With that have come challenges because it accelerates the investment and growth across the continent for Tsebo while operating as a multinational keeps you on your toes as the client keeps raising the bar. This is great for us as it means that we have to keep on improving. On our side we have been investing heavily in insuring our skills are appropriate, our quality and our management systems are working at the top of their game and also insuring that we can manage them as a large client on individual sites but still manage them as a single entity. It has been very exciting. It has been a good challenge for us and I am happy to say that I believe that we are operating at the appropriate levels.” It isn’t the only contract win. “We’ve also just won a large contract in the oil and gas sector in South Africa as well, and we’re very pleased that we were able to create the partnership that such prominent and powerful clients can rely on as a Group, providing services across the Tsebo spectrum. Oil and gas has long been a cornerstone of our business, and we see it growing steadily across Africa,” Dr Jardine says. Tsebo’s unique selling point is that it is able to sell “peace-of-mind” contract catering services across the spectrum. “We can customise our offerings and have strong experience. I think Continued

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PRIME CLEANING SUPPLIERS Prime Cleaning Suppliers is a leading South African cleaning solutions supplier, which was established in August 1996. They continue to show strong growth complemented by a passion for excellence. Prime Cleaning Suppliers quickly grew into a preferred supply company offering an exciting range of products and brands to service all sectors of the cleaning industry. Prime Cleaning Suppliers have spent a number of years building strong brands on which many have been tested by the SABS to the 1828 and 1853 standards, and carries their mark of surety which gives the customer the confidence when using the products. All disinfectants are registered as per Act 29 and compliance to VC8054 compulsory specification for disinfectants

in terms of upping the quality of the product, particularly in the corporate sector. We have experienced good growth on the corporate side. On the other hand, it’s not all been roses. For example, we haven’t been able to solve the problem - and it is a sector problem - of churn of people at the lower end of the industry. “The initiatives like those looking to improve service excellence have been successful. On the whole, 2013 has been challenging. South Africa has been in the news for a lot of reasons, particularly the ongoing labour disputes. In amongst that our improvement initiatives and our operational excellence initiatives have stood us in good stead because, even as we have experienced work stoppages and total shutdowns, we have been able to more than keep our heads above water and for that we are pleased. We are also pleased, I must say, in the sense that the environment is

calming down now, more labour agreements are being struck and they are more reasonable and rational. As a country we are getting back to work. From my perspective, with a client base across the economy, the labour situation in the country seems to be settling down.” The future is bright and Tsebo Catering’s footprint will continue to grow - into Africa. “We’re bedding down the acquisition of the leading catering company in Mozambique which complements us nicely and is part and parcel of the general African growth strategy that the

Prime Cleaning Suppliers has an ongoing commitment to product and service quality to ensure the best long term solution to their customer Prime Cleaning Suppliers are the official Distributors of: Kimberly Clark, Scott, Kleenex, Technical Concepts, rubbermaid and have recently become the sole Wetrok Agents in South Africa. Tel +27 (0)21 551 4570 Fax +27 (0)21 551 4509 Email sales@primecs.co.za

www.primecs.co.za

Of course, we will continue relentlessly with a drive to continue operational excellence and business efficiency”

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Prime Cleaning Suppliers is a national company, with branches and agents in Cape Town, Gauteng, Garden Route, Eastern Cape, KwaZulu Natal and Freestate

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Group has,” Dr Jardine says. “We are in the process of building capacity in Botswana and we are starting aggressively in Zambia, so we are looking beyond our borders - neighbouring countries and beyond. They are all going through a bit of a boom right now and there are huge opportunities for outside services-based businesses in particular. That is front and centre of the Group’s strategy. We have to be innovative. We have to look to new markets. But, we are mindful that we have to win our home games. We are looking at the market across our various segments, where opportunities are and I’m pleased to say some of that has been successful. Because the tough times haven’t receded yet, we are constantly looking at increasing our footprint within our existing client base as well and looking to provide additional services.”

Dr Jardine is a strong believer in execution being a strategic differentiator in business and once a course has been charted, the ability to make it happen and get the job done is “what distinguishes you”. He is confident about the future but also cautious that success isn’t guaranteed. “I’m optimistic,” he says. “Of course, we will continue relentlessly with a drive to continue operational excellence and business efficiency.” Despite challenging conditions and the fact the barriers to entry in the industry are low, Tsebo Catering leads the field. It is in part down to continued training, something the firm “never cuts back on”. “We have not done that and will not cut back on training our people. We are one of the few companies in our sector that still has a dedicated, in-house training entity. For us, it’s about continuous training.

Tsebo is a fascinating place to work right now. It is very exciting. Very tough because of market conditions but we are an incredibly exciting point in our history for a number of reasons”

LA CONCORDE BAKERY

Siituated in Linbro

Business Park, Sandton, La Concorde specialise in the wholesale supply of a wide range of bakery and confectionary goods to restaurants, coffee shops, canteens, caterers, schools and universities. We pride ourselves in our ability to work with our customers to create and customize new products that will suit their individual needs. To ensure timely deliveries, seven days a week, La Concorde owns a fleet of vehicles covering the entire Gauteng Province. The bakery is certified Halaal, and has a Level 2 BEE rating. Tel 0834906696 / 011 6080888 Email cheron@laconcorde.co.za

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Willcaro Working Interiors Design, equipping and project management of lodge, hotel, and corporate building kitchens management | planning services | professional advice | technical skills

www.willcaro1.co.za 54 Klapperboom Avenue | Randpark Ridge | Jhb | 2040 | South Africa

admin@willcaro.co.za or sales@willcaro.co.za Phone: 011 791-6860 / 7517 Fax: 011 791-4327

La Concorde Bakery PO Box 97 Morningside 2067

Email: cheron@laconcorde.co.za Tel: 0834906696 / 011 6080888 Fax: 011 608 0303

La Concorde are proud to be associated with the Tsebo Group and wish them success in the future fu

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N1 RESTAURANT SUPPLIERS N1 Restaurant Suppliers is a HACCP approved importer and exporter of meat cuts and other perishable food items From AAA grade meat cuts to value processed lines, N1 offers clients a wide choice of products, all of which are portion controlled and prepared according to client specifications Separate facilities prepare Halaal or non-Halaal products N1 services clients across South Africa and cross-broder, with a growing client base in many African countries as well as the Middle East and Far East N1 has over 20 years experience in the meat supply industry and operates from branches in Cape Town. And Johannesburg. Tel +2721 557 1510 Email Kevin@n1.co.za

www.n1.co.za

It is not magic our people are good in pulling together as a team and that is a cultural thingâ&#x20AC;?

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N1 RESTAURANT SUPPLIERS IS AN ESTABLISHED MEATPACKER AND BUTCHERY IN BOTH THE WHOLESALE AND EXPORT MARKETS... PROVIDING OUR CLIENTS WITH THEIR EVERY NEED

www.n1.co.za

021 557 1510 52 Kilarney Avenue Kilarney Gardens, 7441

Unit 3, Riverside Industrial Park, Koevoet Street, Kya Sand PO Box 511, Fourways, 2055 Tel: 0114623418 Fax: 0114629720 Email: sales@microfuture.co.za

www.microfuture.co.za

“We like to believe too that our people aren’t confined to boxes. We try to encourage innovation and ownership and hopefully our people experience that and express themselves in ways that benefit the business. It is not magic - our people are good in pulling together as a team and that is a cultural thing, which I can’t take the credit for; it is a huge part of our foundation and it continues. We tend to support each other as people and I believe that this is a big part of any success we enjoy.” Tsebo Catering comprises of four entities: Fedics, Fedics Site Services, TsAfrika and Equality Reef Services.

High Quality Food Packaging Catering and Cleaning Products Other products include a range of Biodegradable Packaging:

To learn more visit www.tsebo.com.

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M EG A EXPANS for Pavilion

Motseng Project Management is fast carving out a niche as one of the very best end-to-end property development and project managers around. Africa Outlook talks to managing director Dewald Van Staden to find out what makes this award-winning company work so well and learns more about the redevelopment of Durbanâ&#x20AC;&#x2122;s Pavilion Shopping Centre. Writer Hannah Eiseman-Ranyard Project manager Stuart Shirra

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SION

otseng Project Management (or MPM to those in the know) manages a portfolio of over R5 billion. It is part of the larger Motseng Investment Holdings Ltd, the largest black-owned property management group in South Africa, and it has been highly specialised company from the start. It has a small and focused portfolio specialising in retail and commercial developments and is currently overseeing the first phase R228 million development of the iconic Pavillion Shopping Centre in Durban. The Pavilion, owned by Pareto Ltd, has been a huge success for over 20 years. What will its redevelopment mean, and how did Motseng Project Management (MPM) win such an impressive contract? “At Motseng Project Management (MPM) we are very small and focused,” explains Mr Van Staden. “We get involved in understanding the client’s business, and we want to contribute to the bigger picture. We are involved from concept to feasibility, so we can offer a complete service.” The advantage of working as part of a group environment is Motseng Project Management (MPM) can offer clients the attention to detail of a smaller company, yet has great range. “We are selling a host of services,” agrees Van Staden, “offering clients the best of both worlds.” Motseng Investment Holdings, holding company of Motseng Project Management, has 15 years experience and turnover of well over R100 million, so it has the backing and the industry connections to support projects through all services, while Motseng Project Management’s focus allows it to deal with clients’ needs in a detailed and focused way, helping to shape, optimise and synergise the Continued

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“The Incredible Journey” Advertising Billboards

Triple Volume Esculator

property management project from the very beginning. The bigger picture view enables Motseng Project Management to offer their clients a fully joined-up service, from transport links to other nearby businesses. “At the Pavillion Shopping Centre, the goal is to build on the centre’s impressive 20-year legacy to create something up to date moving forward. “Our aim is to make the current shopping centre in-line for the next 15 to 20 years,” says Van Staden. “To upgrade, update and contemporise it. On completion, visitors and shoppers will experience a world class retail and entertainment centre with upgraded amenities. “A major part is to look at and enhance the nodal development and the surrounding businesses which are supporting the Pavilion.” In the case of the Pavillion this planning for the future has

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also included using cutting-edge technology and low-energy offerings to reduce the complex’s carbon footprint. The heating, ventilation and air conditioning (HVAC) use pioneering technology, while the project on the parking development won the accolade “Most Innovative International Project” at a prestigious trade show in Barcelona. And this is just the first phase. The second is planned to commence around August or September 2014. Marius Muller, CEO of Pareto Ltd, which owns the shopping centre, seems extremely happy with MPM’s work: “This major investment in both the Centre and the region is in line with our vision to create sustainable projects within our property portfolio, as well as taking into account the economic development in the Durban West area and beyond. Our redevelopment is not only to maintain

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the Centres’ position as an iconic retail and entertainment centre, but to concurrently stimulate growth in the surrounding area to promote business success and create a legacy that is relevant to the community.” With an extremely focused niche, the company has managed to win contracts with some of the largest companies in South Africa. So what’s Motseng Project Management’s secret? “We always aim to not just complete our work, but apply our best minds to it,” explains Van Staden. “We make sure our work is done not at the best levels but at exceptional levels.” Applying the same attention to detail to Motseng Project Management as well as Motseng Project Management’s clients, he takes a great interest in personnel to ensure his team is exceptional. “A company is as good as its staff, so I’m involved with all my team’s recruitment.”

Via Pareto, shopping centre view

Proudly Associated with Motseng at the Pavilion Shopping Centre Upgrade for HVAC Durban | Gauteng | Cape Town | Eastern Cape Contact: Ayanda D. Xintolo Tel : +27 (82) 339 3946 Fax: 086 776 3945 Email:ayandax@telkomsa.net / adxadmin@telkomsa.net

www.adxprojects.com

The challenge starting out was for Motseng Project Management to break into the corporate market and get its foot in the door. With two years of successful projects behind it, what are the new goals, and what do the next few years hold? “From a financial, exposure and company pointof-view we are where we want to be, so our goal is not to maintain the standards we wanted to over-achieve them.” Having built such a solid reputation in such a short time, Motseng Project Management is looking at expanding end-to-end services to wider sectors such as offices, medical offices hotels and conference sectors. While no two projects will ever look quite alike, that is part of the ongoing challenge which Motseng Project Management enjoys rising to every time. The ongoing high standards and high achievements reinforce and reinvigorate both the company’s ability to gain new clients and new contracts, but also staff motivation. “Our staff carries across the passion and the pride… Where there’s a lot of passion you do well.” We anticipate great things for the future. To learn more visit www.motseng.co.za.

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The

turnaround

S P E C I A L I S T Rory Mackey has put SA Corporate Real Estate Fund on a much sounder footing thanks to a new focus and four pillar approach. Writer Ian Armitage Project manager Stuart Shirra

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A Corporate is a diversified property unit trust listed on the JSE. It invests in retail, industrial and commercial property, mostly in the major metropolitan centres of South Africa and its portfolio consists of 139 properties. The fund however is a traditional underperformer, lagging the market in terms of distribution and share price growth.

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COX YEATS ATTORNEYS

ox Yeats Attorneys have a long and established association with SA Corporate Real Estate Fund (SA Corporate). Cox Yeats were actively involved in the listing of SA Retail Properties Limited (SA Retail) on the JSE in 2001 and acted for SA Retail after it was listed. When SA Retail was acquired by SA Corporate and the management team of SA Retail were absorbed by SA Corporate, the relationship between Cox Yeats and SA Corporate grew.

Rory Mackey

But where some see adversity, others grasp opportunity - I’m talking about people like Rory Mackey. He has had an eventful year, stepping in to head up SA Corporate. He’s the fifth CEO in six years. “The funds woes stemmed from a series of poorly timed acquisitions, disposals and funding structures,” he says. The result was that while other listed property firms have boomed, SA Corporate has limped along. You could say the only way was up. But that wouldn’t strictly be true. A turnaround in the recent performance (which led to 7.3 percent distribution growth) has been attributed to a strong industrial portfolio and recovering retail assets as well as a new policy rolled out by Mackey. “We have had a busy 12 months initially formulating a turnaround strategy and then executing it,” he says. “Given that the market had lost confidence in the fund due to it being a historic underperformer, it was essential that tangible results from the turnaround strategy were evident very quickly. This we managed to achieve by using disposal proceeds to settle expensive debt, restructuring its debt swap profile and buying back units. As a consequence of the former we were in a position to immediately reduce our weighted average cost of debt by 2.3 percent. The fund was over-hedged with existing swap contracts being too short and expensive. We therefore proceeded to cancel the existing swap contracts and took out new interest-rate swap agreements for tenors informed by a well-considered hedging policy at lower rates. By buying back units we were able to make an immediate improvement to the capital Continued

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Over the years the professional teams within Cox Yeats have worked closely with the management team of SA Corporate in the numerous transactions SA Corporate has been involved in. They participate in all aspects of SA Corporate’s transactions, whether it be disposals or acquisitions, drafting sale agreements for freehold, leasehold and sectional title properties, assisting with due diligence investigations, including vetting of leases, preparing resolutions, attending to applications for competition approval and thereafter attending to transfers of properties. Cox Yeats has also assisted SA Corporate in various development and construction related transactions and agreements. Cox Yeats continues to work closely with SA Corporate, recently advising SA Corporate on the acquisition of the World Trade Centre building in Sandton, attending to the application to the competition commission for approval of the large merger and procuring the approval of the competition tribunal in that transaction. The knowledge and expertise of the professionals in the property, commercial and construction teams at Cox Yeats will enable Cox Yeats to continue providing the highly experienced team at SA Corporate with the professional advice and service they require to keep growing SA Corporate’s portfolio in the future. Tel (031) 536-8500 Property : rgreen@coxyeats.co.za and rwestley@coxyeats.co.za Commercial : mjackson@coxyeats.co.za Construction : ahay@coxyeats.co.za and rhoal@coxyeats.co.za www.coxyeats.co.za

F E A T U R E

Business Law Engineering and Construction Law Litigation Property Services Maritime Law, International Trade and Insurance Mining and Minerals Administration of Estates and Trusts

Property Services Cox Yeats is a leading and dynamic commercial law firm where the partners of Cox Yeats are represented by some of South Africaâ&#x20AC;&#x2122;s top lawyers in their fields of expertise. Our specialist property team combines their knowledge and experience of property law and conveyancing with innovative ideas to maximise profit potential.

Estate Planning Agriculture and Environmental Law Empowerment and Transformation Tax Law Labour Law Competition Law Insolvency and Recovery of Assets Intellectual Property

Services include: Acquisition, sale and transfer of commercial, industrial and residential properties; Township developments; Sectional title developments; Commercial, industrial and residential leases; Commercial and residential mortgages

21 Richefond Circle, Ridgeside Office Park, Umhlanga Ridge Tel: 031 536 8500 | www.coxyeats.co.za

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structure particularly because of the fund’s historical underperformance that made buying our own portfolio initially more attractive than making other acquisitions.” With the execution of these “quick wins” SA Corporate was able “in a short period” to substantially improve performance. However, they were “only a small initial part of a four pillar strategy that we are embarking on to achieve sustainable distribution growth,” says Mackey. “The four pillars are investment strategy, sector best property management, optimal capital structure and aligning investor and management interests,” he says. “I’m pleased with the progress we have made in the last year with each of these four pillars.” With respect to investment, SA Corporate has made several acquisitions which have “further enhanced” the quality of its industrial

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portfolio and it has acquired premium grade offices in “prime locations” while “divesting from largely vacant C grade offices in secondary nodes”. It has also sold a “retail property not of a quality compatible with the Fund” in the long term. “Our recent acquisitions of R640 million include industrial properties totalling more than 85,000sqm of lettable area with bluechip tenants and the 20-storey World Trade Centre in the Sandton financial district,” says Mackey. “An important element of our investment strategy in the future will be the redevelopment of our existing portfolio and repositioning it for growth.” The two primary projects in this regard are East Rand Galleria and Umlazi Mega City. “East Rand Galleria is an estimated R410 million redevelopment and we will be downscaling the current Pick ‘n Pay from 21,000sqm to 13,000sqm and replace it with primarily national tenants in new malls to meet the

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DLA CLIFFE DEKKER HOFMEYR Our Real Estate Team has extensive experience, a strong track record and remarkable industry insight We act for private-sector clients across all asset types, from banks and other financial services institutions to capital market players such as listed property funds, real estate investment funds, asset managers and property syndicates In the public sector we act for government departments and stateowned entities Our practice is backed by DLA Piper’s Real Estate group, the world’s largest, top-ranked Real Estate practice Our Africa Group lawyers have indepth knowledge and experience of real estate matters in their local markets, giving you expert advice in any African jurisdiction. Tel +27 11 562 1000

www.cliffedekkerhofmeyr.com

We are privileged to be of service to the SA Corporate Real Estate Fund

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Tel: +27(0)11 450 2245 | Fax: +27(011) 450 1841 Email: info@nogada.co.za

www.nogada.co.za

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aspirations of shoppers to one of Johannesburg’s busiest retail nodes. The redevelopment of Umlazi Mega City, estimated to cost in the region of R450 million, involves increasing the lettable area by 20,000sqm to 54,000sqm thereby ensuring that Umlazi’s primary shopping centre continues to dominate the catchment area. Furthermore, to contribute to accelerating the improvement in performance of the fund’s smaller community shopping centres, we have entered into a joint venture relationship with Retail Africa who in return for the opportunity to co-invest 25 percent in the redevelopment of certain of the fund’s retail properties requiring renewal will provide their expertise and experience in retail property redevelopment.” The 25 percent co-investment level has been set to ensure that SA Corporate’s NAV in the redevelopment

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SA Corporate is now Broll’s largest client and the benefits of this relationship are already evident from the leasing of vacancies and improved arrears management”

properties is “not diluted but the partnership does provide for Retail Africa to introduce new investment opportunities to the partnership and is incentivised to do so by then allowing it to increase the 25 percent co-investment to 50 percent to the extent that this is equalled by new investment opportunities to the Fund,” admits Mackey. One big problem with SA Corporate had been its alignment of interests either with the unit holders, who are driven by sustainable earnings growth, or the management company, which is driven by fees and asset growth. In the past it appeared that several decisions were not aligned with the best interests of unit holders. Mackey has made some positive moves. “For one, the fund’s property management has been outsourced to Broll, South Africa’s largest property manager,” he says. “SA Corporate is now

Broll’s largest client and the benefits of this relationship are already evident from the leasing of vacancies and improved arrears management. In addition, property management expenditure is anticipated to reduce by 20 percent as a consequence of the new contract.” Huge structural change is also underway. “Management is of the view that the property unit trust structure is no longer relevant with the advent of REIT legislation and is therefore engaging with the Financial Services Board in respect of a process to convert to a corporate REIT,” Mackey says. “In respect of internalising the management, negotiations with Old Mutual Property are well advanced and an announcement in this regard can be expected shortly.” It is a remarkable turnaround – not so long ago Capital Property Fund was in the process of making a bid for SA Corporate. The progress the fund has made to date has much to do with Mackey and while the road ahead will not be easy, he is confident. “Am I happier we are on a sound footing? Whatever happens going forward, the value of the fund is in a very different position to where it was and I think we can build on it.” To learn more visit www.sacorporatefund.co.za.

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pizza

the action

Piza e Vino is the brainchild of Paul Christie and Miki Milovanvic, the clever folks behind the much-loved Doppio Zero franchise. Plans are afoot that will see both brands flourish. Writer Ian Armitage Project Manager Jason Gilkes

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t’s like mini Italy here, says one review. The ingredients are fresh, flavour combinations are well thought out and the overall vibe is hip and happening, says another. These are Tripadvisor reviews and they’re about Piza e Vino, the brainchild of the clever boys behind Doppio Zero. It isn’t “just another pizzeria” and what started as a bakery café in Greenside in Gauteng 12 years ago is now two sought after restaurant franchises with their sights set on expanding throughout the country and beyond. “Basically there are two companies under one umbrella - Doppio zero and Piza e Vino,” explains Neil Griffiths, group operations manager for Piza e Vino. Doppio Zero owner, Paul Christie, moved to Johannesburg in 1992 after studying in Cape Town. He opened a number of convenience stores and small restaurants, but it was in 2002 that he and his business partner, Miki Milovanovic secured the first site. At the time, it didn’t have restaurant zoning and Milovanovic had a baking background, two factors that combined to create a great business opportunity. “They started Doppio Zero and then seven years later Piza e Vino evolved,” says Griffiths. “I became involved about six months after the brand launched its first site in 2009. I am the operations director of the Piza e Vino brand and Paul and Miki have brought in a gentleman called Ivan Walsh who is the operations director for Doppio. Doppio Zero currently sits with eight stores. A ninth is about to open in November. Piza e Vino currently sits with six stores with a seventh opening in October. Most of our stores are in Gauteng although Doppio does have a store in Cape Town and they are just about to launch - the latter part of this Continued

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NAPKING® One of the first things your guests encounter is the napkin you present on the table and the right napkin is key to any dining tables image Our innovative Airlaid NapkinG ® material offers luxurious disposable napkins with the same look and feel as linen The NapkinG® range is budget friendly and eliminates the costs associated with dry cleaning and replacement of linen napkins and eliminates wastage of paper serviettes Many leading hotels, restaurants and lodges have made the switch Make the smart choice with our collection of high quality single use napkins like Piza e Vino and Dopio Zero have and enjoy the savings, convenience and hygiene benefits without compromising on quality. Tel 0027 (0)82 926 0793 Email info@napking.co.za

www.napking.co.za year/early next - their first restaurant outside South Africa where they are opening a store in Egypt which is great news. Doppio is a slightly more complex restaurant than the norm in that they have a bakery in each of the restaurants plus they have a retail section where they sell cakes, gelatos, pastries both sweet and savoury as well as having a full-on restaurant where they sell breakfast lunch and dinner. Piza e Vino is very much aimed around pizzas, as the name suggest; we try to create something that is about pizza and wine. I think we are an upmarket, modern outlet, aiming at all age groups but the majority of our clientele are young and trendy.” Piza e Vino is all about energy and commitment with a passion for Italian food and people and it is developing its franchise model to aid expansion. Currently most outlets are joint ventures or owned by Christie and Milovanovic and a lot of time and effort

has gone into building the infrastructure needed to run a much larger operation, developing an operations manual, recipe books and more. For Griffiths, the starting point in any franchise is finding good people that can be taught the systems they need experience in running restaurants but the most important attribute is to have a good manner in dealing with customers. “We are in expansion,” he says. “We want to grow both Doppio and Piza e Vino over the next five years and we are looking now for Piza e Vino to go out of Gauteng for the first time. We are looking at Durban, Bloemfontein, Cape Town and possibly going out to other countries ourselves, next year possibly the year after. “Expansion is a big part of the future and our plans. How will we do it? We have two different plans really: You have Doppio Zero where

obviously they have eight, almost nine stores, and with that they’ll have a selection of company stores, joint venture stores and franchises. The majority of Doppio Zeros are franchises. Piza e Vino is currently out of the seven stores, if we include the one we are about to open, we will have six stores that are either company owned or joint venture and one that is a franchise. As we grow it is very much more going to become a franchise model. That represents its own challenges. The big thing with franchising is that it is all about people; it is not just about the fact they have money. It is about are they going to be the right operator for the store and are they going to adhere to our operational manual, standards and quality going forward? So it is very much about the person. Obviously they have to have a certain amount of money to buy a franchise, but the most important thing is Continued

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High Quality Single Use Napkins A better option to linen • Our high quality Airlaid napkins have the same look and feel as linen and are more absorbent. • Eliminate the high costs associated with cleaning, handling and replacing linen napkins. • Our NapkinG® range provide style, elegance and convenience at affordable prices. • Colours and printing options available. Available Nationwide in South Africa. Export options available throughout Africa.

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Email: expressmeat@tiscali.co.za

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actually the person themselves. And we favour owner-managers as they should have a vested interest in the business.” Location is an important factor too and Griffiths says Piza e Vino will only grow as “quickly as is comfortable”. “We don’t want to grow quicker than we feel comfortable growing and if we feel comfortable growing at two or three a year, that is what we’ll do,” he says. “If we feel comfortable at five or six, we’ll go at five or six. I think it is important from our point of view that we have the control from a head office point to make sure that the training implementation and stores we are opening are going to be good for our brand. We don’t want to just open stores for the sake of opening stores.” And the brand is essential to protect. Fortunately it has a strong one. “With Piza e Vino I think our difference is that we are unique in our decor; i think we are a little bit unique in the offer we give with our pizzas, i.e., the toppings. We try to be as authentic as we possibly can be in regards to what we are trying to create, although we have to put a South African twist on it, obviously; and we do a very good wine selection,” says Griffiths. “I think our biggest point of difference is the fact that we are what we say we are. There are so many South African restaurants that try and be everything to everybody. What we do is stick to our pizzas. Our menu changes twice a year but the volume of our menu doesn’t change. If you have ever been to South Africa you will understand what i mean when you go into a restaurant and you can have anything from breakfast to lunch to sushi to fish to chicken. We have a menu that has 36 pizzas, eight pastas, eight salads, one steak and one chicken dish. That is our menu. I am a big believer in

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being great at one thing and not trying to be good at everything.” Piza e Vino is known for using classic Italian ingredients in “weird ways” and is obsessed with quality and customer service. “Finding the quality ingredients isn’t really a challenge as there are a lot of companies here that do quite a lot of importing so it isn’t too difficult to get the products we want. For authenticity, we have just had an Italian chef called Matteo come over to do pizza and pasta training in our stores, both Doppio zero and Piza e Vino, working with our head chefs, group chefs and our central kitchen to try and take us to another level. I believe he did. Of course the implementation of that training is a continual thing both groups have group chefs who work within the stores, constantly training. Training is a big part of both our brands. We try and make sure the service levels and the quality of food is consistent across all of our stores.” The brands have very strong supply chains and have worked with many suppliers like Express Meat Market and NapkinG for “a long time”. Its expansion represents opportunities for them too. “Our expansion does represent opportunities for our suppliers,” says Griffiths. “We have good relationships with our suppliers and as we grow, they grow. Sometimes we have to mix things up due to things like pricing or maybe they’ve lost track a bit as we’ve grown. Also some suppliers prefer to stay small and don’t want to grow. We are becoming a more of a corporate group now as we grow and roll out more stores.” The time is right to expand, he says. “I think we are now in a market place where there are more restaurants than there

ever have been. There is a real appetite. I think the public are more discerning now. Because there is more choice, you have to be better than your competitors otherwise your customers will go to them. I think we are in quite a hard market in the pizza and pasta industry because it is probably one of the most popular styles of dinning out; obviously there are a million and one pizza and pasta restaurants all over the world and South Africa is no different. I think what we have to do is make sure that we do it better, we become even more consistent in every store and to try and be the name on people’s lips when the talk about going and eating pizza or pasta.” One challenge is finding staff. In South Africa, the food service industry is seen “as a stepping stone” while standards of education are poor. It means finding people is hard and finding people with the right skills even harder. “I think the industry is the same wherever you go in the world but the biggest difference in this country is the people. I mean that with regards to the people you employ,” says Griffiths. “A lot of the people are uneducated, untrained and you have to go back to basics and insure you pick the right people. Experience isn’t necessary but it is vital to pick out the right talent. Also I think the one big difference in this country compared to other markets is that it is very much seen as a bit of a stepping stone to something else. What we are trying to create as a brand is giving people the ability to grow. I’m talking about local people; we want to make them realise it isn’t a stepping stone. It is a career.” The passion in Griffiths’ voice is almost palatable. It is a passion shared by founders Miki and Paul. These are brands on the up.

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OILIN

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eels

NG THE

South African oils manufacturer Teubes is celebrating its 30th anniversary. We popped to meet founder Clive Teubes who says that “a new era is opening up” as it reaches the milestone. Writer Chris Farnell Project manager Jason Gilkes

f there is one quality that more companies could stand to benefit from it’s the benefit of having a true expert at the helm of the company – somebody whose passion lies with the product the business is selling, rather than the act of selling itself. Teubes cc, a company selling a huge variety of oils and natural extracts, is one such company. Talking to Clive Teubes, the founder of Clive Teubes cc, it is clear that his technical background has played a significant part in the development of the company. A variety of chemical processes have been developed down the years which involve distillation, rectification, extraction and various chemical synthetic processes. Consequently today the business is based on a technical foundation which is under continuous development and expansion. It’s a skill Clive Teubes has spent his life honing. After completing his studies in chemistry at the University of Cape Town in the early 70s, he spent four years in England with ICI (Imperial Chemical Industries) receiving industrial training in the design and operation of chemical plants. When he returned to South Africa, Teubes built on that experience during his employment at AECI and Air Products. However, even then, he was keen to go into business for himself and, as the market in essential oils, flavours and fragrances grew, in 1981 he started his own company, producing sample products in his garage. “Some personal sacrifices had to be made, such as driving a cheaper car, but it was all worth it,” says Teubes. He started up the company in partnership with local flavour and fragrance house DJ Gunther (Pty) Ltd, who later sold its shares to AECI. Continued

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When it started out, Teubes’ company offered a range of aromatics, eventually moving into citrus products and refining Eucalyptus to produce Eucalyptol. At this stage the company depended on the many local flavour houses like BBA (now IFF), Naarden (now Quest International) and Haarmann & Reimer (now Symrise) for business but soon the firm picked up its first international clients Charabot in France and Augustus Oils in the UK. These relationships exist till today. Of course, shipping product over greater distances brought with it its own challenges. “I recall in 1985 the telex machine clattered out the following from our client in France: ‘Please be aware that we have been advised by our shipping agents that the container of products en route from Cape Town to Marseilles met with very stormy seas

off the bulge of Africa. Unfortunately this container together with a number of others dislodged from the ship and was lost overboard. Therefore I need to tell you that our container of product is now at the bottom of the Atlantic Ocean!’ Thankfully this situation has never repeated itself,” recalls Teubes. The company went from strength to strength, and by the beginning of the last decade it was expanding its production facilities, opening up a second factory to accommodate an additional plant and equipment to cater for its growing local and international markets. Throughout its history Teubes cc has been rising to the challenge that has felled so many other businesses, not just creating a new business, but creating one that will last. While only four percent of companies in South Africa achieve entrepreneurial sustainability, Teubes

is currently looking at celebrating its 30th birthday. It’s not an achievement that’s come easily and like most businesses it felt the brunt of the financial meltdown of 2008/2009. However, Teubes responded to the economic conditions by cutting costs and engaging in operational reengineering, improving its processes and operational efficiencies. As well as navigating economic obstacles, Teubes cc has also been working hard at improving, and having recognised, the quality of its products, with the company recently working towards organic certification. “Besides the paperwork, the significant effort needed to convert to organic oil production was no small task for the farming community,” Teubes admits. “Over the past 10 years, however, farmers have adapted well. Nowadays the certification process from the harvest field Continued

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www.katyaniexport.com ESSENTIAL OIL "NATURAL" SPICE OILS AROMATIC CHEMICALS FLORAL ABSOLUTES HERBAL EXTRACTS HERBS EXOTIC HERBAL OILS ISOLATES INDIAN ATTARS

325, 3rd Floor, Plot No. 12, Vardhaman Big V Plaza, Near M2K, Road No. 4, Pitampura, New Delhi - 110034, India Phone : +(91)-(11)-47591371 Mobile : +(91)-9910125250

through to the packaging of the final product is well established as is the annual audit which is part and parcel of this certification process.” But now, looking back on such a landmark anniversary for the company, it all seems worth it. Teubes himself is philosophical about the achievement. “The company, like any other company in markets like this has seen its ups and downs but has achieved sustainability, with loyal customers and very good relationships throughout the supply chain and we’re very proud of it,” he says. “On the 19th of October all our staff and loyal suppliers will be treated to a Gala Dinner, alongside people involved in the community work our business has achieved.” But before the party is even started, Teubes is already thinking about the challenges for the next 30 years. “The biggest challenge for me is to continue training and developing the younger generation to shoulder the

responsibilities that go with running the business beyond myself,” he declares. “I can’t see myself stepping away from the business completely. It has always been a joy and a privilege to be involved in this industry. In the years ahead I certainly hope that I will still be able to make some contribution to the business. “It has been an enjoyable 30 years and a challenging time. There are significant growth plans in place and as we reach 30 years of age it feels like a new era is actually opening up to us, using the experience and knowledge we have accumulated over time. I am grateful that we are still playing a role in the industry. Our contribution isn’t large when it comes to a global perspective but I like to think that our presence in Africa makes a positive contribution. It is one of our key objectives to encourage other African companies to join us on the international stage.

We have enjoyed loyal support from many local and overseas clients. They would know who they are and I am extremely grateful to them for this. Without their support we wouldn’t exist. Our intention is to develop these relationships even more offering a wider range of products ‘Out of Africa’.” To learn more visit www.teubes.co.za.

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ANCHOR YEAST

CELEBRATES A PROUD LEGACY OF

90 YEARS This year Anchor Yeast celebrates 90 years of supplying innovative product solutions to customers and consumers, locally and internationally. The Anchor Yeast brand has been a South African icon since 1923 and has entrenched itself in the heart and homes of South African families. We speak to MD, Vic De Melo, about Anchor and its future. Writer Hannah Eiseman-Renyard/Vanda Evens Project manager Jason Gilkes

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nchor Yeast, the leading yeast manufacturer in SubSaharan Africa, has embraced changing market conditions and has welcomed the challenge of new opportunities over the years. The most significant event in the last decade was its acquisition by Lallemand a Canadianbased company in 2006. “This acquisition brought together two companies that are long-standing leaders in the production and distribution of yeast and ingredients, for the baking and fermented beverage industries,” explains Anchor’s Managing Director Vic De Melo. “Both companies have been in existence since the early 1920’s and have common goals, strong values and a commitment to customers, quality products and high service levels.” Lallemand’s growth agenda enabled global market penetration and access to leading technology. Both companies have pioneered solutions for bakers, wine makers and consumers alike. Lallemand is also a world leader in the development of specialty yeasts and bacteria for animal and human nutrition, as well as fuel ethanol and fermented beverages. “In order to meet the needs of our customers and to remain focused on being a leader in dough raising technology, Anchor is structured into three market-focused Business Units,” explains Vic. “The Bakery Specialities Business Unit serves the Baking Industry, whilst Anchor Bio-Technologies supplies natural yeast solutions to the wine, whisky, commercial brewing and bio-control industries. The third business unit focuses on the Consumer market.” Anchor values the role that people play in the success of the business and country – the length of service of their 300 employee base bears testimony to this. “I would say

approximately 75 percent of our employees have in excess of 15 years’ service with us.” Training is paramount to enabling the future and the firm has provided training to bakers in Africa since 1986 in its fully-equipped, expert training facility which is accredited by FoodBev Seta. To promote home-baking, Anchor also offers training courses and demonstrations to home-bakers, schools, community groups and small-scale commercial bakers. At its facility in Durban, annually it employs at least eight students focusing on engineering and biotechnology – many of them have since joined the company permanently. Anchor recently invested in a new state-of-the-art manufacturing facility in Durban, which manufactures yeast 365 days a year. The facility allows for flexible and innovative packing solutions which meet a wide range of specifications in diverse markets. Anchor also has a ‘fresh yeast’ manufacturing facility in Mozambique. All Anchor manufacturing facilities conform to international quality standards and operate with HACCP and ISO certified Quality Management systems. The Anchor product range is also kosher and Halaal certified. “Our distribution network plays an important role in ensuring the delivery of product which is consistent in quality. This is a key market differentiator. We are uncompromising in our view of food safety” says Vic. “We provide a cold chain network that ensures that product is always delivered in its ‘freshest’ state.” In addition to understanding market needs there is an ever-present need to be cost effective and manage one’s impact on the environment. With this in mind Anchor has recently embarked on a multi-million rand project geared towards reducing energy consumption in its manufacturing facility which has Continued

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yielded excellent results. As the largest yeast supplier in Southern Africa, Anchor is uniquely placed to grow its market into Sub-Saharan Africa with yeast, enzymes and specialised ingredients, meeting the needs of localised customs and traditions. Anchor is currently represented in about 15 countries in Africa. “We enjoy a leading share in the South African home-baking market and are aiming to utilise this know-how to expand our footprint within Africa. More so than international brands, Anchor has an intimate understanding of the local markets and the product needs of consumers

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Our distribution network plays an important role in ensuring the delivery of product which is consistent in quality. This is a key market differentiator. We are uncompromising in our view of food safety”

in Africa,” Vic explains. One of the company’s leading consumer brands, Gold StarTM, was recently awarded a gold award in the South African TGI Icon Brand Survey in the baking category – these brands meet the needs and expectations of consumers, based on product usage. Another exciting area of the business is wine yeast manufacturing. Expansion into this field started 38 years ago and resulted in Anchor Yeast being the second company in the world to produce dried wine yeast. The company’s success in this market segment has been as a result of its successful association with Stellenbosch University, which assisted Anchor in developing a unique range of

HEARTLAND LEASING (PTY) LTD

he Umbogintwini Industrial Complex is a secure, welldeveloped industrial park, situated approximately 20km south of Durban. Owned by AECI and managed by its subsidiary, Heartland Leasing, the 104 year old site has long been associated with the chemical industry. Twelve major companies producing a diverse range of products, operate within the Complex. Heartland Leasing provides essential services such as rail operations, electrical distribution, steam provision, wastewater treatment, and engineering and laboratory services.

offerings for winemakers. Vic explains: “Collectively Lallemand and Anchor are one of the leading manufacturers of wine yeast in the world and remain dedicated to research and development associated with new products. After all, if one does not remain current with technology you will get left behind.” Anchor and Lallemand remain committed to research and development and are working on new strains and packaging which will extend product freshness and consistency. They are also investigating other industrial applications for highly

specialised organisms. Applications range from products for the forestry industry to products for maintaining greens on golf courses. “The future remains bright and is one in which the evolution of healthier eating habits and a greater awareness for natural and organic foods, combined with changing lifestyles; will fuel the demand for safe, affordable and convenient products,” says Vic. We wish Anchor a happy 90th anniversary and many more to come.

The companies are “connected” through shared safety, health and environmental values leading to very open sharing of knowledge, experience and technical expertise relating to SHE issues. This quality, unique in a multi-user site, has provided the vision for high safety, health and environmental objectives and operating standards, and the common will to ensure that they are maintained. The potential impacts of site activities are communicated very openly with the surrounding communities by means of focus groups and in local publications with wide readership. In excess of 70 hectares has been set aside as green area, consisting mainly of coastal forest and wetland. Three of the reserves, Umbogavango, Vumbuka and Mamba Valley, are recognized as areas of conservation significance by eZemvelo Wildlife and Umbogavango serves as the base for environmental awareness training for local schools. Tel +27 31 9492452 Email caroled@twini.co.za

To learn more visit www.anchor.co.za.

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LogiAfrica The Gallagher Convention Centre Johannesburg South Africa

2-3 OCTOBER 2013

http://www.wbresearch.com/ logiafrica/home.aspx

Streamlining mining approval permits in Africa Montecasino 1 Montecasino Blvd, Johannesburg 2055 South Africa

14-17 OCTOBER 2013

http://miningpermitafrica.com/

PHP South Africa 2013 Venue to be announced Cape Town South Africa

4-5 OCTOBER 2013

www.phpsouthafrica.com

Tech4Africa 2013 Focus Rooms The Core 1st Floor South, Cnr Kikuyu and Leeuwkop Streets Sunninghill Sandton South Africa

9-10 OCTOBER 2013

http://tech4africa.com/event/tech4africathe-annual-conference/

2013 IT Conference Takoradi Ghana

13-19 OCTOBER 2013 www.itconferencegh.com

2nd East Africa Oil and Gas Summit (EAOGS) Intercontinental Hotel City Hall Way 00200 Nairobi Kenya

T Big Data World Africa Sandton Convention Centre Johannesburg South Africa

29-30 OCTOBER 2013 www.terrapinn.com

BIG Africa Summit 2013 Montecasino 1 Monte Casino Blvd Johannesburg 2055 South Africa

4-6 NOVEMBER 2013

www.bigafricasummit.com

29-30 OCTOBER 2013

Mozambique Investment Summit

The Mobile Show Africa

Guoman Tower St Katharineâ&#x20AC;&#x2122;s Way London UK E1W 1LD

www.eaogs.com

Sandton Convention Centre Johannesburg South Africa

4-7 NOVEMBER 2013

29-30 OCTOBER 2013 www.terrapinn.com

www.mozambiqueinvestment summit.com

The Enterprise Technology Show Africa 2013

3rd annual Nigeria Energy and Power Summit

Sandton Convention Centre Johannesburg South Africa

Transcorp Hilton Abuja 1 Aguiyi Ironsi St Abuja 900001 Nigeria

29-30 OCTOBER 2013 www.terrapinn.com

28-29 NOVEMBER 2013

www.nigeriaenergyandpower.com

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REACH NEW

HEIGHTS Asia Outlook is a fantastic platform to share success stories and find ways of growing your business in Asia. To discuss your options contact Ben Weaver ben.weaver@outlookpublishing.com