african review december/january 2015

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

P32

Multi-modal transport,between South andWest Africa

Power:Himoinsa chairman Fran-cisco Gracia speaks on en-ergy in Africa and EuropeP46

Construction:How Africa produces anduses cement P52

Mining:Opencast opera-tions for emeralds

Nigeria’s new

insuranceindustry

P26

African Review

of Business and TechnologyDecem

ber/January 2015Volum

e 50 Number 4

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.com

December/January 2015

Cover ATR Dec 2014_Jan2015_Layout 1 21/01/2015 12:12

Fly now to the capital of Qatar

www.ethiopianairlines.com

DOHA

COME SHINE WITH US

FROM DECEMBER, 2014

S01 ATR Dec 2014_Jan 15 - Start_Layout 1 22/12/2014 11:26

Editor: Andrew [email protected]

Editorial and Design team: Bob AdamsPrashant AP, Hiriyti Bairu, Sindhuja Balaji Thomas Davies, Ranganath GS , Rhonita PatnaikLouise Quick, Prasad Shankarappa, Zsa Tebbit Lee Telot, Louise Waters and Ben Watts

Publisher: Nick Fordham

Publishing Director: Pallavi Pandey

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Subscriptions: [email protected]: Derek FordhamPrinted by: Paarl Media PaarlUS Mailing Agent:African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year byAlain Charles Publishing, University House, 11-13 LowerGrosvenor Place, London SW1W 0EX, UK. Peridicals postage paidat Rahway, New Jersey. Postmaster: send address corrections toAlain Charles Publishing Ltd, c/oMercury Airfreight InternationalLtd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

UP FRONT

3

REGULARS

FEATURES22 Business

The distribution of intra-African investment; Intersec’s security showcase for the Middle East andNorth Africa; and the prospects for African insurance markets

30 TechnologyHow cloud computing affects the role of the CIO

32 TransportMulti-modal logistics connnecting South Africa and West Africa

37 PowerAlternators for Africa; electrical equipment for power provision; generators andtelecommunications; electricity in East Africa; modular power plants for SSA; and technology forenergy resource management

48 ConstructionEmploying a loader to work at Douala port in Cameroon; managing a mixed-use developmentin Southern Africa; cement production, distribution and use around the continent; and anamvassador for best practice in East Africa

60 MiningHaulage fleets for opencast operations; health and safety in extraction industries; software forproject management; and site services to improve processes

04 Agenda: Corporate initiatives andmarket developments

14 Bulletin:Events, IT, aviation andpackaging technology

66 Solutions:Tools to serve materialshandling, concrete, andfinance

Contents

Editor’s Note

Cover picture: CaterpillarInset, top: SafmarineMPVInset, bottom left: Himoinsa

Following reports of news from around the continent, this issue of African Review of Businessand Technology offers analysis of intra-African corporate investment on pages 22 and 23, and

of security and insurance markets on pages 24 and 26. Cloud computing in Africa is addressed onpage 30. Multi-modal transport is spotlighted on page 32. With respect to power generation anddistribution, the use of alternators in Africa is addressed on page 37, preceding a special sectionon electrical equipment on pages 38-40. Following this are features on generators, includingsevice to communications networks, on pages 42 and 43. Grid electricity in East Africa andmodular power plant systems to serve the continent are assessed on pages 44 and 46. Technologyfor green energy management is featured on page 47. In the construction sector, significantharbour work in Cameroon is reported on page 48.Work undertaken on a mall project in SouthAfrica is reported on pages 50-51. Following this, the cement industry is featured on pages 52 to57. The construction section is completed with a profile of JCB’s key point man in East Africa, onpages 58-59. Opencast mine management is covered on pages 60 and 61. Health and safety inmining is featured on page 62. The mining section closes, on pages 64 and 65, with observatonson project management and site services.

Andrew Croft, Editor

African Review of Business and Technology - Dec 2014/Jan 15

Audit Bureau ofCirculations -

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Serving the world of business

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

P32

Multi-modal transport,between South andWest Africa

Power:Himoinsa chairman FranciscoGracia speaks on energy inAfrica and Europe P46

Construction:How Africa produces anduses cement P52

Mining:Opencast operationsfor emeralds P60

Nigeria’s new

insuranceindustry

P26

C Page 1

P46

P26


T

While we can’t quite do that, we can

h Like reducing your cycle times

o Volvo wheeled loaders feature load-sensing hydraulics to ensure rapid responses and

o The Automatic Power Shift and

F

J

Together with UNIDO, USAID, and theOCP Foundation, the Volvo Group has

established a vocational training school formechanics in Morocco. The school ismanaged in collaboration with localauthorities to train 150 students per yearfrom Morocco, the Ivory Coast andSenegal.

“Trained mechanics will have theopportunity to gain work in countries withhigh unemployment, while Volvo will gainaccess to the trained personnel that isrequired in order to expand in Africa. Bytraining local manpower, we will

contribute to sustainable growth in thecountries in which Volvo operates,” saidNiklas Gustavsson, Volvo Group executivevice president for corporate sustainability& public affairs.

The Volvo Group’s presence in Moroccodates back to the 1950s. The Group’s highshare of the truck market in combinationwith the country’s investments ininfrastructure makes Morocco a countrywhere the Volvo Group can grow. Moroccois a country with high unemploymentamong young people, and where theexisting education system places focus on

theoretical education, which does notreflect the needs of industry. Theconsequence is that the shortage ofadequate competency is impeding growthin the country.

“The distinctive feature of this trainingacademy lies within its ability to produceskills and expertise that can directly beemployed in the economic sectors that useheavy duty equipment and that work onthe big projects that are undertaken byMorocco”, said Mr Jamaleddine El Aloua,general secretary of the MoroccanDepartment of Vocational Training.

4

NEWS

Recently, Chinese construction machinemanufacturer Shantui racked up anothersuccessful export of one of its diversifiedproduct lines, as a SR32YR fully hydraulictrash compactor was shipped to a customerin Algeria. This particular model is performingwell with customers in the market, due to itsreliable performance and ease ofmaintenance, and this particular shipment isone of five that have been exported to theregion over the past year.

The SR32YR is one of Shantui's morerecently developed products, and is anexample of Shantui's commitment to bothdiversification and improvement of coretechnology. The machine features a fullyhydraulic drive from Rexroth, which combineswith electronic controls in the cab for smoothand precise operation. Those electroniccontrols are also connected to the workingdevice: an 11m³ blade ideal for levelingdebris. So as to bringmore power to bear, theSR32YR also boasts anenergy-efficientimported 335-horsepower Cumminsengine.

Further embodying theease of use that hasmade the machine

popular in Algeria, the compactor is designedso that the frame of the machine is enclosed,thus preventing solid materials fromdamaging key parts, and those key parts aredesigned in a modular fashion to easemaintenance if faults do occur. Additionally,the ROPS-equpped cab is enclosed, and fittedwith an air filter and deodoriser, so as toprovide a safe and comfortable environmentfor the operator.

In China, Shantui’s name has long beensynonymous with the word “bulldozer”. Today,Shantui is not only the world’s largest makerand seller of brand name dozers, but alsooffers a highlydiversified line ofconstruction, road,public utilityvehicles and cementhandling machinery,making everything

from wheel loaders and road rollers to truckcranes and motor graders, to forklifts andexcavators. Shantui is a distinguished brandand a leading Chinese multinationalcorporation with sales in more than 150countries and regions worldwide. Thecompany is publicly listed on the Shanghai-Shenzhen 300 Index, and is headquartered inJining, Shandong Province. Shantui pridesitself as provider of value in the constructionmachinery industry, offering a uniquebalance of high performance and great value.

Volvo’s vocational training in Morocco

Shantui SR32YR trashcompaction machine Algeria


Agenda / NorthShantui SR32YR compactor shipped to Algeria



volvoce.com

ALGERIA SMT Algeria+ 213 560 078 851

ANGOLAAuto Maquinaria+ 244 9 2782 4434

BENINSMT Benin+ 229 21 35 14 02

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BURUNDISMT Burundi+ 32 10 47 61 20

CAMEROONSMT Cameroun+ 237 99 41 40 30

CONGOSMT Congo+ 242 06 508 27 13

CÔTE D’IVOIRESMT Côte d’Ivoire+ 225 21 75 16 27

DEM. REP. OF CONGOSMT D. R. Congo+ 243 815 656 565

EGYPTGhabbour+ 20 242 107 794

ETHIOPIAEquatorial Business Group+ 251 11 442 4955

GABONSMT Gabon+ 241 07 515 008

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KENYA Auto Sueco Ltd+ 254 727 534 593

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LIBYAUnited Group+ 218 21 7313310

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MALISMT Mali+ 32 10 47 61 20

MAURITANIASMT Mauritania+ 32 10 47 61 20

MAURITIUSLeal Equipements Compagnie+ 230 207 2100

MOROCCOVolvo Maroc S.A.+ 212 522 764 800

MOZAMBIQUEBabcock International Group+ 258 84 2652397

NAMIBIABabcock International Group+ 264 81 6937473

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SIERRA LEONEA. Yazbeck and Sons Ltd+ 232 7730 3042

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SUDANAlbarajoub Engineering Co.+ 249 183 77 84 13

TANZANIAAuto Sueco Ltd+ 255 222 866 333

TOGOSMT Togo+ 228 99 99 92 15

TUNISIANordic Machinery+ 216 71 409 260

UGANDA Auto Sueco Ltd+ 256 791 500 400

ZAMBIABabcock International Group+ 260 212 216 200

ZIMBABWEConquip+ 263 4 485 543

Wouldn’t it be great if you could stop time on a project? While we can’t quite do that, we can

help to reduce the amount of time you need to spend on a job. Like reducing your cycle times

onsite. Volvo wheeled loaders feature load-sensing hydraulics to ensure rapid responses and

outstanding control of the load, resulting in faster cycle times. The Automatic Power Shift and

Fully Automatic Power Shift functions also automatically adjust machine gears in line with engine

speed and travel speed to allow the operator to concentrate on getting the job done quickly.

Just one more example of how Volvo is challenging convention to help improve your business.

Discover a new way.

Volvo Challenges TIME


Avertically-integrated companyengaged in geothermal and

recovered energy generation (REG),Ormat Technologies’ majority-ownedKenyan subsidiary - held by Ormat (51per cent), Symbion Power LLC (24.5 percent) and Civicon Ltd (24.5 per cent) -has signed a 25-year power purchaseagreement (PPA) with Kenya Power andLighting Co Ltd (KPLC) and a projectimplementation and steam supplyagreement (PISSA) with GeothermalDevelopment Company (GDC) for the35MW Menengai geothermal project inKenya.

Ormat is a vertically-integratedprovider - designing, developing,building and manufacturing most of itsown plant equipment. Under the PISSAagreement, Ormat will finance, design,construct, install, operate and maintainthe Menengai steam plant on a build-own-operate (BOO) basis for 25 years.GDC, which is wholly owned by theGovernment of Kenya, will develop thegeothermal resource, supply the steamfor conversion to electricity and maintainthe geothermal field through the term ofthe agreement. Under the PPA, KPLC willpurchase all the energy generated by theproject.

The Menengai project is expected tobenefit from the Partial Risk Guarantee(PRG) arrangement to be provided bythe African Development Bank.

Isaac Angel, Ormat’s chief executiveofficer, said, “We are extremely excited tocontribute from Ormat’s expertise in thegeothermal industry in building andoperating this project. This will be ourfifth plant in Kenya and once it isoperational, we will supply 145MW tothe Kenyan grid. Upon completion of theMenengai project, more households inKenya will gain access to cost-effectiveand clean power from their nation’sgeothermal resources.”

East African power distributor Kenya Power has selected IBM for an automated system thatwill provide a real time status of all business processes. This will enable Kenya Power toimplement its strategic expansion plans.

Kenya Power is counting on technology to expand its current 2.6mn client base by anotherone million clients and to push its current electricity generation capacity from 2025 megawattsto 5,000 plus megawatts by 2015. The company plans to roll out electricity distribution servicesacross more areas of Kenya as its drives a comprehensive strategy to capture more demandfrom under-served regions.

The new system will consolidate data from ten key operational sources to provide a singleview of enterprise data. This new infrastructure will use advanced IBM analytics to enableKenya Power to study and compare real time and historical data to better monitor businessoperations and trends, and anticipate future electrical needs. KP teams can now access data ondemand on one dashboard compared to 10 different dashboards. The real-time analytics canbe accessed through cloud computing, allowing executives working remotely to use mobiledevices to view data.

6

NEWS

The Rwanda Agriculture Board has been inviting investor interest in exploiting the marketpotential for canned beans, as regional demand soars. Approximately 700,000 tons of beansare produced annually, grown on 350,000 hectares in Rwanda. Current investment has beenheavily focused on climbing beans, which can produce about three times more food on thesame area of land than bush beans. Projections indicate canned beans could fetch aroundUS$85mn by 2017.

"We have a wide market that requires value addition on bean...this includes East AfricaCommodities Exchange, Rwanda Grains and Cereals Corporation and the governmentitself..." said Tony Nsanganira, the Rwandan Agriculture State Minister.

"Africa consumes the most beans world-wide. Rwanda's annual per capita consumption isover 60kg," said Minister Nsanganira at the second African Union Private Sector andAgribusiness forum held recently in Kigali, adding that there are also abundant businessopportunities in dairy, honey processing, horticulture and poultry. Agriculture contributes 35per cent of Rwandan GDP and employs 85 per cent of the nation’s population, attracting overUS$514mn private investment over the last decade.

Over the course of the 5th African Rift Valley Geothermal Conference (ARGeo C-5), the AfricanDevelopment Bank (AfDB) clearly reaffirmed its on-going support to the development ofgeothermal power in the East Africa Rift Valley region.

The ARGeo conference was held to further regional cooperation in the development andutilisation of geothermal resources in East Africa. It brought together approximately 400 policy,technical and development experts to network and interface with both local and internationalgeothermal companies to explore how to reduce project lead times, leverage financing andeffectively manage geothermal power plants. Thierno Bah, a principal energy specialist at theAfDB, said, ”The bank has worked hard to mobilise various instruments and sources offinancing, including the Partial Risk Garantee instrument as well as highly concessionalfinancing from the Climate Investment Funds (CIF), to support geothermal growth.”

Ormat set for Menengaigeothermal project


Agenda / EastRwanda seeks investors in beans

IBM helps Kenya Power perform

AfDB renews geothermal backing



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© 2014 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

OVERHAULS TAKE TIME.ORDERING THE PARTS SHOULDN’T.

8:43 AM

S02 ATR Dec 2014_Jan 15 - Agenda_Layout 1 22/12/2014 11:28

Diversified natural resources company SesaSterlite has confirmed plans to develop theGamsberg-Skorpion Integrated ZincProject in South Africa and Namibia at a costof US$782mn over a three-year period, todevelop an open-pit zinc mine in Gamsberg,South Africa, and to undertake the conversionof the Skorpion Zinc Refinery in Namibia.

The majority of the investment,approximately US$630mn, will go towardsdeveloping an open-pit zinc mine,concentrator plant and associatedinfrastructure at Gamsberg, one of world'slargest undeveloped zinc deposits. Thebalance of the investment will be used to

convert the refinery at the Skorpion Mine inRosh Pinah, Namibia, thereby enabling it torefine zinc concentrates from the Gamsbergmine into special high-grade zinc metal.

"The Gamsberg-Skorpion Integrated ZincProject is central to Vedanta's long termaspirations for Southern Africa," said Mr TomAlbanese, CEO of Sesa Sterlite. He confirmedthat this will also allow the diversified naturalresources company Vedanta Resources tomake a significant contribution to enablingthe SA government achieve its goal of usingthe country's mineral wealth to fight povertythrough the creation of sustainable, long-term employment opportunities.

8

NEWS

Alifab recently completed the installation of RoofGrip access walkways onto a newly-refurbished roofat Pepkor in Parow, Cape Town, South Africa.

After years of use, the roof sheets needed to bereplaced and as future accessing of the ventilationsystem mounted on the roof, had not helped tomaintain the integrity of the sheeting it was decidedto install Roof Grip onto the roof. The ability of RoofGrip to control access over the roof sheeting tospecific areas will ensure there is no damage to the sheeting by maintenance teams.

The Ampligrip expanded aluminium floor grating incorporated into the Roof Grip producthas a non-slip ridging that ensures the safety of the workmen. The product is manufacturedfrom aluminium extrusions that are rust free and not affected by UV, ensuring no maintenanceis required on the walkway. Its light weight makes sure no excess dead load is imposed on theroof structure.

Declining water quality and rising costs are compelling industries in South Africa to recyclewater, in turn lending momentum to the industrial water and wastewater treatment chemicalsmarket in the country.

Although the market is experiencing challenges, due to an uncertain economic climate, thecombination of stricter legislations and greater environmental awareness among end users isboosting the treatment and reuse of effluents.

Analysis from Frost & Sullivan, entitled ‘Overview of the Industrial Water and WastewaterTreatment Chemicals Market in South Africa’, indicates that the market earned revenues ofUS$148.9mn in 2013 and estimates this to reach US$176.4mn in 2018.

The study covers key chemicals, including coagulants and flocculants, corrosion and scalingchemicals, disinfectants and biocides, and pH adjustment chemicals.

Roof Grip has a non-slip ridging that ensures thesafety of workers


Agenda / SouthCape Town roof gets grip by Alifab

Sesa Sterlite set to work with zinc

SA sees rise in water treatment


Scheduled airline Proflight Zambiabegan flights on its new 50-seater

jet aircraft, following Zambia’s GoldenJubilee in October 2014. As theBombardier CRJ-100 plane is inoperation, the airline is assessingmarket demand with a view toextending its lease on the aircraft.

The jet primarily operates on theLusaka-Ndola morning and eveningflights, but where demand is high it isalso used on the Solwezi, Mfuwe andLivingstone routes. It has been provingpopular with passengers from theoutset, according to Proflight’s directorof government and industry affairs,Captain Philip Lemba.

“We have already seen strong take-upof seats on the new plane and thefeedback we are getting frompassengers is that the larger, morespacious cabin is very muchappreciated,” Captain Lemba said.

Proflight’s new jet adds a newer,modern plane to its fleet and the largersize will enable service to be providedby two cabin attendants, rather thanthe usual individual attendantemployed on its existing aircraft. It has50 seats, compared with the 29-seats onProflight’s largest other aircraft, theJetstream 41, enabling morepassengers to be accommodated, inmore comfort. It is 26.77m long and hasa wingspan of 21.21m. It has a basiccruising speed of 785km and amaximum range of 3,045km.

Proflight flies from its base in Lusakato Livingstone, Ndola, Kasama, Chipata,Mansa, Mfuwe, Solwezi and LowerZambezi, to Lilongwe in Malawi - andfrom Ndola to Lubumbashi in theDemocratic Republic of Congo. It willbegin flights to Kafue National Park in2015.

Nawa Mutumweno

Flying now, ProflightZambia’s 50-seat plane


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ANGOBEST, the local dealer of Shantuiequipment in Angola, recently held an

open day showcasing the Shantui brand inthe capital city of Luanda. On display wereShantui bulldozers, road rollers, loaders,and six types of motor graders. The openday was attended by more than 180 guests,including media representatives,government officials, customers, and othernotable figures. The event was a majoropportunity to promote the Shantui brandin the region, one which ANGOBESTcapitalised on, with dozens of machinessold in contracts worth nearly US$1.6mn.Included in the orders were 220-

horsepower SD22 and SD22F bulldozers,SG18-3 motor graders, and SR20MPvibratory rollers.

At the open day, Shantui worked withANGOBEST to effectively promote theShantui brand. To this end, the ANGOBESTstaff gave a presentation to the assembledguests communicating Shantui's corporatevision, operational support, sales andservice policy, and product information,with VIPs and large customer groups seatedprominently. So as to round out thecomprehensive promotional effort, thedealer invited the local media to cover theevent, including the influential television

broadcaster TPA. Already a popular brandfor bulldozers and a preferred supplier ofequipment to a majority of Angola'sengineering projects, Shantui andANGOBEST hope this open day will helpfurther solidify Shantui's position in theAngola market.

Shantui is not only the world’s largestmaker and seller of brand name dozers; italso offers a highly diversified line ofconstruction, road, public utility vehiclesand cement handling machinery, makingeverything from wheel loaders and roadrollers to truck cranes and motor graders, toforklifts and excavators.

10

NEWS

Satellite operator Eutelsat Communications is working with IsocelTelecom, an Internet service provider in Benin, on a multi-year leasefor C-band capacity on the Eutelsat 3B satellite to support thecountry’s tax collection system - to enable a secure private networkfor Benin’s tax authorities.

The capacity booked on Eutelsat 3B supports a secure privatenetwork, raising efficiency by transmitting citizen tax data gatheredfrom collection centres across the country to the centraladministration in Cotonou.

This new data transmission network, using robust C-bandcapacity, has been specially designedto operate in a country whose tropicalclimate is characterised by themonsoon period running from April toNovember. Collection centres beyondrange of terrestrial infrastructure, fromOuidah in the South to Malanville inthe North, can now be directly linkedto the country’s centraladministration.

Robert Aouad, CEO of IsocelTelecom, said, “Through this firstcollaboration with Eutelsat we areexpanding our portfolio of serviceswith satellite communications andextending our coverage to the wholecountry, including to the mostisolated regions. We have placed our

trust in a leading satellite operator in the West African region andcan now benefit from the resources of the new Eutelsat 3B satellite.”

Rodney Benn, Eutelsat’s Regional Vice President for Africa, added,“Launched in May 2014, the Eutelsat 3B satellite is designed todiversify and increase our resources and footprint at the 3° Eastposition. Together with Eutelsat 7B, we are now exceptionally wellpositioned to meet customer demand for data transmission and siteinterconnection services across West Africa. We are proud to beselected for this new service by a major operator in Benin whosedevelopment is redefining the telecoms sector in the country.”

Shantui's Angola agent holds open day, wins big

The Eutelsat 3B satellite supports


Agenda / WestEutelsat and Isocel Telecom connect Benin tax authorities



S03 ATR Dec 2014_Jan 15 - Bulletin 01_Layout 1 19/12/2014 08:58

12

NEWS

CNH Industrial N.V. held a three-day eventat its first event series at the new IvecoSouth Africa Works facility in Rosslyn,Pretoria, Gauteng province.

The event’s three day agenda (19-21November) welecomed visitors who wereinvited to a 360-degree CNH Industrialexperience.

Also in attendence were South Africandignitaries, rmembers of the ItalianEmbassy, the French Ambassador to SouthAfrica, local media, customers and dealers.The Mayor of Pretoria, CouncillorKgosientso Ramokgopa was also at theevent and gave a speech.

CNH Industrial gave guests theopportunity to drive 4x4 “Tested by Dakar”vehicles: a Daily from the light range, aEurocargo from the medium range and aTrakker from the heavy, off-road range.

A ‘507 Dakar Replica’ Trakker, a vehicle

which competes in the off-road Dakar rally,where Iveco has been a long-time sponsorof one of its most popular teams: PetronasDe Rooy Iveco.

Around 1,000 South African employeesare set to be recruited for this new facilitywhere the Iveco and Iveco Bus brands havelaunched production assembly lines for

medium, heavy duty and extra heavy trucksas well as front engined and low floor citybuses. Many of these vehicles will bedesigned for the local South African marketand 20 per cent of them will be exported.The facility also includes a training centrefor technicians and a product qualityassurance department.

CNH Industrial hosts ‘Born in South Africa’ event at Iveco facility


The Iveco and Iveco Bus brands have launched productionassembly lines for medium, heavy duty and extra heavy trucks


January20-22

IBC Content EverywhereMENADubai, UAEwww.ibcce.org

18-20

IntersecDubai, UAEwww.intersecexpo.com

20-22

Offshore West AfricaLagos, Nigeriawww.offshorewestafrica.com

22-23

Indian Ocean Ports & LogisticsMaputo, Mozambiquewww.transportevents.com

27-28

Africa Oil & GasLondon, UKwww.africaoilandgassummit.com

28-29

AgriBusiness East AfricaDar es Salaam, Tanzaniawww.agri-eastafrica.com

February2-5

Nigeria Oil & GasAbuja, Nigeriawww.cwcnog.com

9-12

Investing in AfricanMining IndabaCape Town, South Africawww.miningindaba.com

10-12

WACEEAccra, Ghanawww.wacee.net

17-18

Africa Energy IndabaJohannesburg, South Africawww.africaenergyindaba.com

24-26

Re-EnergyCairo, Egyptwww.reenergy-eg.com

25-27

Air Cargo AfricaJohannesburg, South Africawww.stattimes.com

26-28

CIBEX East AfricaNairobi, Kenyawww.cibexeastafrica.com

Events / 2015


NEWS

Bulletin / EventsAn agricultural agendaLaunched at the Forum for Agricultural

Research in Africa (FARA), recently held in

Johannesburg, South Africa, the Science

Agenda for Agriculture in Africa identifies a

suite of issues and options for increasing and

deepening the contributions of science at the

local, national, regional, and continental

levels; the report, completed by researchers

of the Agricultural Science and Technology

Indicators (ASTI) programme at the

International Food Policy Research Institute

(IFPRI), identifies underinvestment,

inadequate human resource capacity, poor

research infrastructure, and a lack of coherent

policies as factors that continue to constrain

the quantity and quality of agricultural

research outputs in many countries.

African Halaal set to be bigbusiness at AB7The Halaal sector is set for strong growth in

Africa, as a report from the Dubai Chamber

of Commerce in the UAE estimates that the

global Halaal market will reach US$1.6 trillion

by 2018, and with Africa generating

US$160bn in Halal business during 2014;

Africa’s Big Seven (AB7), the African food and

beverage expo, will again host a Halaal World

Pavilion showcasing Halaal products to the

African market, from 21 to 23 June 2015 in

Johannesburg, South Africa.

Hatch Goba chairmanacknowledged for achievementThe prestigious Lifetime Achievement Award

for Excellence in Engineering has been

presented to Hatch Goba chairman Trueman

Goba at the inaugural South African

Professional Services Awards (SAPSA)

ceremony held recently in Johannesburg,

South Africa; Mr Goba said, “Pursuing a

professional career entails important

responsibilities”, adding that he felt honoured

to be counted alongside “achievers from

legal, accounting and finance professions”,

and that he hoped the award inspired “young

people aspiring to become engineers”

Hatch Goba chairman, Trueman Goba

A comprehensive range of Micromine Africa

solutions will be on display at the 2015

Mining Indaba, being hosted in Cape Town

from 9 to 12 February. These include:

Micromine 2014: A comprehensive and easy-

to-use exploration and mine design solution

that offers integrated tools for modelling,

estimation, design, optimisation and

scheduling.

Geobank: Micromine’s flexible, reliable and

secure data management solution captures,

validates, stores and manages data from

diverse sources.

Geobank Mobile 2: A new solution, enabling

easy collection and manipulation of

geological field data. The software ensures

accurate data capture with real-time

validation and rich data input controls to

minimise errors at point of entry - and to

maximise efficiency with customisable

calculated fields, in-built data approval and

transfer mechanisms.

Coal Measure: An integrated software

solution for coal data management and coal

data processing with 3D seam modelling,

resource categorisation, resource reporting,

pit optimisation, pit design and scheduling.

Pitram: A mine operations system that

records, manages and processes mine site

data in real-time, helping operations to

increase productivity, decrease costs and

improve safety.

Software that adds value to African mining operations

Renowned for superior quality, high

performance and competitive pricing,

the Turkish pump industry enjoys

considerable success, with 135 Turkish

pump manufacturers exporting to over

200 countries. Several Turkish companies

are set to exhibit at Pumps, Valves and

Pipes Africa 2015 Expo for the first time.

The massive trade show, now in its ninth

year, forms part of The SA Industry &

Technology Fair (INDUTEC), and takes place

from 20-22 May 2015 at Gallagher

Convention Centre, Midrand, South Africa.

Turkish company Ferat Dis Ticaret

specialises in the manufacture of

submersible and deep well pumps for

agriculture and water supply projects, and

will be exhibiting a range of cast iron

pumps, stainless steel pumps and

submersible motors and at the show.

“We decided to exhibit at Pumps Valves

and Pipes Africa 2015 because the long-

running exhibition is specifically focused

on our sector, and is certainly the most

professional pump industry event in South

Africa,” said Halil Ibrahim Dogan, Ferat Dis

Ticaret export manager.

Turkish pumps for Africa,promoted at PVPA 2015


NEWS

Bulletin / ITVFS TasHeel International toprocess Saudi visas in NigeriaSaudi Arabia’s Ministry of Foreign Affairs has

mandated VFS TasHeel International with

managing and administrating the its visa

application process from Nigeria, including

the mandatory enrolment process of

fingerprint collection and photo capture for

all applicants; Madhan Gopalakrishnan, CEO

of VFS TasHeel International, said, “The new

Visa Services Centre is packed with

convenience and comes with dedicated

service counters and a reception area, all to

outsourced to local technology firm Vumela

IT Services.

enhance the experience and add value to the

process of visa application.”

T-Systems extends ESD to KZNwith Vumela IT Services In South Africa, network solutions provider T-

Systems has launched the next phase of its

Enterprise Supplier Development (ESD)

initiative, which is aimed at promoting skills

development and job creation through

improbed procurement; the programme is

now active in the Kwa-Zulu Natal (KZN)

region, with a variety of field services being

Teams at T-Systems and Vumela IT Services are workigntogether to enhance procurement in Kwa-Zulu Natal

As the global urbanisation trend picks up, smart cities are emerging,

making use of IT to harness the resources needed to operate

optimally, and use resources sustainably. In South Africa, smart cities

are likely to be a reality within three to five years - to build them and

to leverage the benefits they offer, we need smart buildings.

Smart cities make use of IT and Big Data – data from devices, sensors

and meters, equipment, transport systems, smart energy grids, social

platforms, government and industry databases - to regulate and

conserve use of resources, optimise operation of critical systems,

improve the lives of inhabitants, and drive sustainability agendas. “On-

grid” buildings, organisations and individuals that support its objectives

are likely to be rewarded though rebates and preferential pricing.

Neil Cameron, GM, Johnson Controls Building Efficiency

To ensure the growth of micro small and medium enterprises (MSMEs)

in Nigeria, the Small and Medium Enterprises Development Agency

of Nigeria (SMEDAN) recently signed a Memorandum of

Understanding (MoU) with Computer Warehouse Group (CWG) at

SMEDAN’s corporate headquarters in Abuja, to provide a technology

platform for the use of MSMEs at very little cost, incorporating an

enterprise resource planning (ERP)

tool called Small and Medium

Enterprise Resource Planning

(SMERP), which allows MSMEs to

manage business operations and

provides functionalities such as

accounting management, inventory

management, and sales and order

tracking.

South Africa needs smarter cities Smedan works with CWG on tech for SMEs

Alhaji Bature Umar, director-general ofSMEDAN (L) and Mr. Austin Okere,founder and CEO of CWG


17

Austrian flies to Mauritius Austrian Airlines has commenced flight

services to Mauritius, adding the new

destination to its winter 2015/16 flight

schedule, non-stop from Vienna to Sir

Seewoosagur Ramgoolam International

Airport every Thursday, and back to Vienna on

Fridays; the airline’s passengers travel in the

new cabin of the its Boeing 767.

Egyptair connects Sharm El-Sheikh and LuxorIn line with its commitment to encourage

traffic between Egypt’s top leisure and

touristic destinations, Egyptair Express is

operating two weekly flights between Sharm

El- Sheikh and Luxor from December 2014;

the flights will be operated on Tuesdays and

Thursdays.

Bulletin / AviationNEWS

African Review of Business and Technology - Dec 2014/Jan 15www.africanreview.com

African cargo operator Ethiopian Airlines has taken delivery of a fourth Boeing B777-200

LR freighter. The airline was the first in Africa to receive and operate the B777-200 LR

freighter, in September 2012, and it is still the only African operator of this modern aircraft,

which has exceptional uplift, range and fuel efficiency, and is well-adapted to handle Africa’s

growing import and export freight requirements.

In line with the airline’s vision of growth, set out in its 2025 strategic road map, Ethiopian is

not only expanding its fleet capacity and cargo terminal but is also replacing its old aircraft

with the most latest and environmentally friendly airplanes with large capacity.

The Boeing 777 freighter is equipped with GE90 series of engines, which are fitted with

first ever composite fan blade in commercial aviation on the GE90.

This uniquely curved blade design is lighter, more aerodynamic and larger than traditional

titanium blades. The lighter blades reduce the weight of the engine and help lower fuel burn

which in turn increases capacity contributing to the performance and efficiency of the

aircraft.

"Our operation of new-generation, high performance aircraft and building one of the

largest cargo terminals in the world reflects our commitment in expanding and improving

our cargo service to support the exponentially growing imports and exports of our country

in particular and the continent in general," said Mr Tewolde Gebremariam, CEO of Ethiopian.

Ethiopian adds fourth Boeing 777 Freighter to its fleet


18

NEWS

Bulletin / PackagingKrones’ future labelling tech A new system from Krones has incorporated

the increasingly stringent requirements

clients now stipulate for labelling technology;

the Ergomatic and Ergomodul machines are

based on an expandable concept, which is so

versatile that with permanently installed

stations there’s an option for subsequent

change-over to replaceable stations.

the sterilisation process - using a concept

which was developed by Schoeller-

Bleckmann Medizintechnik (SBM), a Bosch

Packaging Technology company; Isa Alkan,

head of sales at SBM, explained, “By re-using

heating and cooling energy, the system

lowers the total cost of ownership (TCO).”

Smart PE packaging’s potentialA report published by IDTechEx, entitled

‘Smart Packaging Comes To Market: Brand

Enhancement with Electronics 2014-2024’,

indicates that the electronic smart packaging

market will remain primarily in consumer

packaged goods and will account for 14.5bn

units worth US$1.45bn globally within 10

years; recent examples include aerosols that

emit electrically-charged insecticide to chase

bugs, and electronic medication packs which

record how much is taken and when and

prompts the user.

Shower steriliser cost savingsWith a patented energy recovery concept for

hot water shower sterilisers, Bosch

Packaging Technology enables significant

energy savings in heating and cooling during

African Review of Business and Technology - Dec 2014/Jan 15 www.africanreview.com

The Ergomatic has permanently installed stations forcold-glue labelling

The self-contained, independent system consists of amultilayer storage tank, which is divided into severaltemperature zones and firmly piped to the steriliser via aheat exchanger

The 50th edition of Cibus Tec - Food Pack,

the international trade show for food

processing & packaging technologies,

held in Parma, Italy, was attended a

record 30.000 attendees coming to a

show hosting 1,000 companies, which

had been repositioned to address the

international market demands for a

highly vertical and specialised showcase.

The event’s new format was developed

by the joint efforts of Ucima, the Italian

Packaging Machinery Manufacturers

Association, and to the strategic alliance

with Koelnmesse, to offer innovative

synergies and business opportunities in

processing and packaging. Paolo Gambuli, director of Ucima, said,

“The integration of packaging technologies with the mainstream

sectors of Cibus Tec confirmed that our choice was right on the money

and above expectations. The international buyers confirmed us the

validity of the formula and at the same time confirms have been

expressed by the exhibitors that have already confirmed their

intention to take part and increase their presence in the 2016 edition.”

The organiser of Propak East Africa expects a 25 per cent increase

in visitor and exhibitor numbers for the 2015 edition of this

event, taking place in 17-19 March in Nairobi, Kenya. The last event

attracted over 2,000 visitors, 89 per cent of which were qualified

decision makers. There were 65 companies exhibiting from 15

countries, with products and services presented for a variety of

industries - including working machinery, raw materials, food

processing equipment and printing. Propak East Africa has become

the biggest gathering of industry leaders in East Africa.

The 2015 Propak Conference is expected to feature over 100

delegates from Tanzania, Uganda, Zambia, South Africa, Kenya and

elsewhere to discuss and gain further insights into the burgeoning

manufacturing industry in East Africa. Topics include trends within

the market as well as a panel discussion featuring top international

and local speakers. Exhibition director Alexander Angus said, “After a

fantastic first year, we are delighted with the huge amount of

interest for the 2015 exhibition.”

Returning exhibitor Keith Dilkes, export sales manager at Polyoak

Packaging, said, “The first Propak East Africa exhibition was

extremely positive for Polyoak Packaging as experts in offset

printing and in-mould labelling on rigid plastic packaging. The show

generated substantial interest amongst potential East African

customers in Polyoak’s extensive range.”

Propak prepares to grow in the EastUcima renews focus onprocessing and packaging

There has been extraordinarysuccess for the new Food Packsection created by Ucima, theItalian Packaging MachineryManufacturers Association


S05 ATR Dec 2014_Jan 15 - Business Report 01_Layout 1 19/12/2014 09:02

The University of Zambia hasplanned to establish solarapplied energy laboratories tomeet the growing demand forelectricity in the southernAfrican nation.

According to Prem Jain, headof energy, environment andresearch at the university, theinstitution will spend US$750,000 to set up the laboratories.

In addition to handling the demand for clean energy, the labswould also help offload graduates that are qualified to work in thefield of solar technology.africanreview.com/energy-a-power

University of Zambia to establish solar laboratories

China Railway Construction Corporation (CRCC) has signed a dealworth US$12bn with Nigeria to construct a West African coastal railway.

The railway project, stretching about 1,402 km, will link Lagos in thewest of Nigeria with Calabar in the southeast of the country.

The construction company said the project would create close to200,000 jobs on the project that will link two of Nigeria’s mostimportant commercial hubs.africanreview.com/transport-a-logistics

20

WEB SELECTION

Etihad Airways haslaunched a daily serviceto Dar es Salaam inTanzania from AbuDhabi, as part of a moveto expand its Africanroute network.

Flights between AbuDhabi and Dar es Salaamofficially began on 1December 2014, with Dares Salaam becoming Etihad’s 110th destination globally and its 11thdestination in Africa and the Indian Ocean.

Moris Pholeli, vice-president of Etihad Airways, said, “Dar esSalaam is one of the first growing cities in the world and we havedecided to enter into the market by starting operating with AirbusA320 aircraft, with 16 business class and 120 economy class seats.”africanreview.com/transport-a-logistics

The university will spend US$750,000 to setup the laboratories (PHOTO: ActivSolar)


African Review/On the WebA selection of product innovations and recent service developments for African businessFull information can be found on www.africanreview.com

China to build US$12bn railroad in Nigeria

Etihad Airways to begin daily flightsto Dar es Salaam


Mining company Coal India (CIL) has said it would begin miningcoal in central Mozambique’s Tete Province in order to increasesupplies to India.CIL officials said that India would start receiving coal from theMozambican mine within the next three to four years.“The final phase of exploration for CIL’s A1 and A2 mining blocks atTete Province is complete,” said a senior official of CIL. “Coal sampling isin progress. A geological report and detailed project report will beprepared. We hope to start mining within next six months to a year.”africanreview.com/construction-a-mining

Coal India to begin mining operations in Mozambique

East African cement maker ARM Cement has announced an increase ininvestments across the region as demand for cement continues to rise.

A statement from the company revealed that ARM Cement wouldcomplete a number of pending projects in 2014, with begin newprojects set to begin in 2015.

The company, which has plants in Kaloleni and Athi River in Kenya,as well as Dar es Salaam and Tanga in Tanzania, will complete onemore grinding plant in Tanga in 2015. The Tanzanian plant has thecapacity to produce 2,500 tonnes of cement daily.africanreview.com/construction-a-mining

ARM Cement to increase investments in East Africa

Etihad began flights between Abu Dhabi andDar es Salaam on 1 December 2014 (PHOTO: yakusa77/flickr.com)

APM Terminals has signed aUS$1bn deal with the governmentof Ghana to expand Tema Port.

APM Terminals, an internationalterminal container operating unitthat functions independentlywithin the Danish shipping majorMaersk, said the deal was signedthrough Meridian Port Services(MPS) – a JV between APMTerminals and Bollore AfricaLogistics – and the Ghana Ports and Harbours Authority (GPHA).

Peder Sondergaard, regional head of APM Terminals for Africa andMiddle East, said, “APM Terminals looks forward to take the next stepto drive the development of a world-class port expansion which canserve the country of Ghana in the coming decades.”africanreview.com/transport-a-logistics

Maersk-owned container firm signs dealto expand Ghana port

The expansion of Tema Port willincrease capacity to 3.5mn TEUs(PHOTO: WorldBank/Flickr)


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Intra-African investment is finally gainingmomentum, as South African, Kenyan, andNigerian trans-national corporations (TNCs)

tap into new opportunities in neighbouringcountries. Increasing intra-African foreigndirect investment (FDI) will help to deepenregional integration. For many smaller, oftenlandlocked or non-mineral rich countries,intraregional FDI is a critical source of capitalfunding because they are ‘over-looked’ byforeign-based TNCs.

Between 2009 and 2013, the share of cross-border Greenfield projects - the majorinvestment type in Africa - originating withinthe region rose to 18 per cent, from about 10per cent during 2003-08, according toGeneva-based United Nations Conference onTrade & Development (UNCTAD). The grossvalue of cross-border intra-Africanacquisitions also grew from just three percent of total investments in 2003-2008 tomore than nine per cent in the next five years.Fast-expanding consumer markets haveunderpinned these trends, given that anincreasing amount of FDI into Africa - fromabroad and by region - goes to consumer-oriented industries, led mainly by bankingand telecommunications.

Data from fDi Intelligence showed thatAfrican investors nearly tripled their share ofFDI projects in the past decade, from eightper cent in 2003 to 22.8% by 2013. The rate ofintra-African investment, too, expanded evenfaster in value, from 4.4 per cent in 2003 to 22per cent in 2013. Intra-African investment hasboosted much-needed job creation on thecontinent. It is now the second-largest sourceof jobs behind Western Europe, jumping fromfourth position in 2012.

This growth is driven by the need forimproved regional value chains andpromoting regional integration. The milestonedecision by the Common Market for Easternand Southern Africa (COMESA), SouthernAfrican Development Community (SADC) andthe East Africa Community (EAC-5) to

establish the ‘Tripartite’ single free trade area(FTA) is an important development. Anothergrowth factor is the indigenous investors’better appreciation of potential marketopportunities and challenges within theirresourceful continent.

Investing in labour-intensive sectorsCompared with other types of FDI, intra-African projects are concentrated inmanufacturing and services rather thanextractive industries. UNCTAD data indicatedthat only three per cent of the value ofannounced intraregional Greenfield projectsover 2009-13 were channelled into primarysector, compared with 24 per cent for other-regional Greenfield projects during the sameperiod.

Intra-African investments in themanufacturing sector target mostly agro-processing, building materials,electric/electronic equipment, and textiles/

apparel, while in the services industry AfricanTNCs are attracted to ICT, and retailbusinesses, especially in rapidly growingeconomies like those in Nigeria, Ghana,Angola and Kenya. Other popular industriesfor intraregional investments are financials,and business services, where investors fromSouth Africa, Kenya, Togo and Nigeria areexpanding in the neighbouring countries.

The high shares of intra-African investmentgoing into manufacturing sector accord withevidence from recent trade statistics showingthat the industry products, which are mosttraded intra-regionally are manufacturedgoods - especially those entailing low andmedium levels of processing. Theseindustries stand to benefit the most fromregional integration initiatives. Hence, anenlarged market provides companiesenough scope (i.e. economics of scale) togrow and create incentives for region-widebusiness expansion.

EconomyBUSINESS

22

Increasing intra-Africancorporate investmentRecent economic analysis indicates that more African conglomerates areoperating in their own backyard

Geographical Distribution of Sources of Green�eld Investment in Africa by number of Projects, 2009-13

**Of which, three largest intra-regional investors are South Africa (7%); Kenya (3%); and Nigeria (2%).

Europe

Rest of the World

China

India

North America

Africa **

13.0

18.0

41.0

19.0

6.0

3.0



BUSINESSEconomy

23

In financials, low-technology consumerproducts and wood furniture, intra-Africaninvestments accounted for two-fifths of allGreenfield investments by number ofprojects. In residential construction andhospitality, TNCs from South Africa, Kenyaand Egypt are major investors in Africa bynumber of cross-border acquisitions deals.

The share of intra-African FDI in themanufacturing and services sectors variessignificantly across regional economiccooperation (RECs) or sub regional-groupings. In some RECs, such as EconomicCommunity of West African States (ECOWAS)and EAC-five, intraregional FDI in thesesectors represents over one-third of allinvestments; in others, such as the ArabMaghreb Union (UMA) in North Africa, it ismarginal compared with peer sub-regions.

Developing greater expertiseIntraregional investment can help build localcapacities - prerequisite for participating inglobal value chains (GVCs), which in Africa isstill mostly limited to downstream processingof raw materials in the exports of developedcountries. Intraregional FDI is one of the mostimportant mechanisms through whichAfrica’s growing consumer demand can bemet by a better utilisation of its ownresources. Moreover, intra-African investmenthelps major African firms enhance theircompetitiveness by increasing their scale,developing their technical know-how andproviding access to better and cheaperinputs.

Smaller economies like The Gambia,Guinea-Bissau, Benin, Togo, Rwanda, Malawi,Lesotho and Swaziland depend heavily onregional FDI - which comprise around one-third of their FDI stocks, according to UNCTADfigures.

Similarly, Mozambique, Namibia, Ugandaand Tanzania have also received a heftyamount of their FDI stock from within theregion. By contrast, intra-investments in

North African countries such as Morocco andTunisia are minimal; the bulk of investmentsthere come from Southern Europe and theMiddle East - especially the UAE, Qatar, Kuwaitand Saudi Arabia.

African multinationalsThe rising dynamism of African blue chips onthe continent, in terms of both trade andforeign investment symbolizes Africa’s rapidsustained growth of the last decade. Amongregional TNCs, South African-basedcompanies are among the most active in sub-Saharan Africa. One such prominent investorwith extensive regional reach is South Africanretailer Shoprite, which now plans to open 47new outlets across the continent, focusing onlucrative consumer markets of Nigeria andAngola. Similarly, Standard Bank Group(Africa’s No.1 bank by Tier-one capital andtotal assets) opened a representative office inCôte d’Ivoire in 2013, expanding its Africancoverage to 19 countries.

Other South African- conglomerates thatare expanding across the continent includeCoca-Cola Sabco (a Coca-Cola bottler), MTNGroup (telecoms), Nampak (professionalservices and consulting), Naspers (media),Sanlam (insurance) and Tiger Brands(consumer goods), Anglo Gold Ashanti,Pick’n’Pay Stores (retail/general trading),Aspen Pharmacare (pharmaceuticals).

During 2007-2013, South Africa was the 4thlargest investor in the African continent byFDI projects. South African projects in otherAfrican countries have grown at a massivecompound annual growth rate (CAGR) of 44.2per cent since 2007. In fact, excluding FDIprojects from other countries into SouthAfrica itself, South Africa emerges as thesecond-largest investor in the rest of Africaover 2012-13. Several of prominent AfricanTNCs that have gone global, notably AngloAmerican and SABMiller, were assisted indeveloping their internationalcompetitiveness through first expanding in

their own backyard.Kenyan and Nigerian companies have also

been opening new businesses, especiallysince 2010 - evidence of the increasingbalance sheet strength of companiesheadquartered in these countries. Nigeriaoutflows are mostly concentrated in buildingmaterials and financial services. First Bank ofNigeria, Access Bank, Zenith Bank, DiamondBank and United Bank for Africa (UBA) haveopened full-fledged banking subsidiaries inWest/Central and East Africa in recent years

Dangote Group (Nigeria’s largest companyby market capitalisation) is now planningmega-regional investments, includingcement factories in Zambia, Cameroon andSouth Africa. In 2013, the company alsobegan construction of a new US$500mncement facility in Mtwara, Tanzania. SameerGroup (Kenya) is active in agriculture,manufacturing, distribution, high-tech,construction, transport and financebusinesses in neighbouring countries.

A few emerging TNCs from North Africahave expanded their reach over thecontinent. Sonatrach (Algerian hydrocarbonsgiant) is present in the energy sector of someAfrican countries. It is Africa’s largestcompany, with a consolidated turnover ofaround US$100bn in 2013. The Camerounaisedes eaux (CDE), Cameroon’s national waterutility is managed by a Moroccan Company.Compagnie Cherifienne (Morocco’s leadingchocolate-maker) is also building a 40,000tonnes a year chocolate factory in Cameroon.Orascom Construction Industries (Egypt),active in the building materials and chemicalsindustries, is extending its presence in NorthAfrican countries.

In sum, intra-African investments aretrending up, driven by a continuous rise inSouth African FDI into the continent, alongwith increased inflows since 2009 from Kenya,Nigeria, and Northern African countries.Cross-border FDI in Africa is projected toaccelerate further, as local blue chips seeknew growth markets. External investorsprovide long-term capital, managerial skillsand technology, and intra-African flows createa virtuous circle that will encourage moreforeign investments across sub-regions in thecoming years. Intraregional FDI could helpintegrate most countries into globalproduction processes.

Referring to cross-border trade, ObiageliEzekwesili, former World Bank’s vice presidentfor Africa, said, “Promoting intra-African tradehas emerged as a top priority, in recognitionthat the African market of one billionconsumers can be a powerful engine forgrowth and employment.” �

Moin Siddiqi, economist


Table: Announced Value of FDI Greenfield Projects in Manufacturing and Services, cumulative 2009-13Host Region Total value US$ billion Share of investment from Africa (percent)ECOWAS 58 37.0EAC-five 31 36.0ECCAS 23 18.0SADC 83 17.0COMESA 106 15.0UMA 43 1.0Grand Total 344 17.0Source: Data from fDi Markets (Financial Times).

ECOWAS - Economic Community of West African States.

EAC-5 - East Africa Community: Burundi, Kenya, Rwanda, Tanzania and Uganda.

ECCAS - Economic Community of Central African States.

SADC - Southern African Development Community.

COMESA - Common Market for Eastern & Southern Africa.

UMA - The Arab Maghreb Union.


Taking place at the Dubai InternationalConvention and Exhibition Centre in theUnited Arab Emirates (UAE) over 18-20

January, Intersec 2015 delivers acomprehensive showcase of solutions, to meetthe double-digit growth of Middle Eastern andAfrican security and safety markets.

Intersec has played a major role in the last16 years in reflecting the security industryworldwide. The exhibition combines a stronginternational profile, with a huge regionalimpact. Intersec 2014 featured 1,213exhibitors from 54 countries and welcomed24,615 visitors from 130 countries. For theMiddle East and Africa in 2015 this keysecurity and safety trade fair is set to feature300 debut exhibitors, with top ten globalsecurity companies on board.

Expectations at the eventThe global demand for security equipment isestimated to grow seven per cent annually,reaching US$117bn by 2016,* with theunderdeveloped Asian, Eastern European,and Middle East & African markets leadingthe charge. The 17th edition of Intersec is alsosetting the pace for market, meeting demands

for development, as organiser Epoc MesseFrankfurt said it expects the event to register atleast 15 per cent growth in exhibition spaceyear-on-year. In january 2015 Intersec featuresmore than 1,300 exhibitors from over 50countries, including 300 newcomers.

The three-day event focuses on the five coreareas of Commercial Security:� Information Security� Fire & Rescue� Safety & Health� Homeland Security� Policing

Ahmed Pauwels, CEO of Epoc MesseFrankfurt, said, “The Middle East and Africaregion continues to emerge as a key securitymarket, and Intersec functions as thebellwether event that showcases the currenttrends prevailing across the globe, while

presenting vital indicators of futuredevelopments in the industry.

“With a footprint that spans the entireregion and active participation from leadinginternational players, Intersec is today a must-attend event for the global security, safety, andfire protection communities.”

International interestIntersec 2015 features 13 country pavilions -including Canada, China, France, Germany,Hong Kong, India, Italy, Korea, Pakistan,Singapore, Taiwan, UK and USA.

Held under the patronage of His HighnessSheikh Mansoor bin Mohammed bin Rashid AlMaktoum, Intersec is the largest and mostinternational trade fair of Messe Frankfurt’sglobal network of security and safetyexhibitions, which includes:� Secutech India� Secutech Taiwan� Secutech Thailand� Intersec Buenos Aires� Secutech Vietnam� Seguriexpo Buenos Aires �

Visit www.intersecexpo.com

EventsBUSINESS

24

Safeguarding industrypartners at IntersecKey security event tracks double-digit growth as Middle East and Africa’sappetite for protective equipment surges

Intersec brings global industry partnersto local markets in the Middle East and Africa


Intersec underlines the Middle East and

Africa’s fast-growingsecurity market - which

has seen double digitgrowth of in security,

safety, and fire protection

Innovations at the event help to manage the five coreareas of commercial security

Products on show at Intersec includepersonal protection equipment


African Review: Could you give us a profileof the current situation with regard toinsurance in Africa?Dr Femi Oyetunji: Insurance in Africa is still inits infancy. Across Africa insurancepenetration, for both life and non-lifeproducts, I believe, is less than two per cent,except in South Africa. In South Africa,insurance penetration is about 15 per cent.The global average is about eight per cent. Sothere is opportunity for growth - and I thinkthere has been a lot of interest in bothinsurance and reinsurance companies inAfrica. One problem that we do have in Africais a proliferation of insurance companies. InNigeria we have around 50 insurancecompanies.

AR: And what is the situation in otherAfrican countries?FO: In some countries, proliferation is evengreater. Take the example of Liberia, with apopulation of less than three million. That

country has 20 insurance companies. Andthat is replicated elsewhere, in manycountries in Africa. We don’t have obviousmarket leaders as the market is sofragmented, which has led to stiffcompetition, hence it’s tough for people tounderwrite new business. But as Africadevelops and we see a huge emergingmiddle-class that creates demand, they willhave assets to insure, and therefore potentialfor the insurance industry is very promising.

In South Africa alone, insurance premiumsrun to US$10bn a year. So it’s not aninsignificant industry.

Just imagine, if we were able to getinsurance penetration in the rest of sub-Saharan Africa up from one or two per cent tosix per cent, it would create a very attractivemarket.

Continental Reinsurance is the largestprivately owned reinsurance company inAfrica, outside South Africa, but includingNorth Africa - but in North Africa the biggerinstitutions are state-owned companies

AR: Can you give some idea of the value ofyour business?FO: We have the balance sheet of US$150mn.We have been growing at about 25 per centannually for the past three years in terms ofthe premiums we collect. We have similargrowth in profit before tax. It is currentlyabout 15 per cent.

We reported an increase of 28 per cent inGross Premium Income to NGN15.86bn(US97mn) in 2013, compared to US$75.5mnin 2012. The non-Life and Life businessesgrew by 32 per cent and 11 per centrespectively.

We have investment income as well.Typically in Europe and US, the combinedratio [the ration between premiums andclaims] is 98, 99 or 100 per cent or over 100per cent sometimes. So that is why

NigeriaBUSINESS

26

A revival inAfrican reinsuranceDr Femi Oyetunji, managing director of Continental Reinsurance, talks toAfrican Review about prospects for the insurance industry in Nigeria andelsewhere on the continent

Dr Femi Oyetunji, managing director of ContinentalReinsurance


Austin Okere, founder of CWG Plc and entrepreneur in residence at ColumbiaBusiness School (CBS), promoted Nigeria’ s business competitiveness at the most

recent CBS Entrepreneurs in Residence Week in New York, in the USA. Addressing agroup of graduate students in the Private Equity and Entrepreneurship in Africa Coursewith Professor Murray Low of the Eugene Lang Entrepreneurship Centre, Mr Okerehighlighted Nigeria as one of the top three investor destinations in Africa. Quotingfigures from the United Nations Conference on Trade and Development (UNCTAD),Austin reiterated that of the US$57bn foreign direct investment (FDI) that Africaattracted in 2013-14, Nigeria took US$5.6bn, and noted that only six other countriesattracted investments above US$3bn. Mr Okere’s speech is taken in the context ofNigeria’s rise of five places in the latest release of the World Bank Doing Business Report- well above the average improvement of two positions by the other MINT countries(Mexico, Indonesia, Nigeria and Turkey). More importantly, the ‘Starting a Business’ and‘Getting Credit’ pillars saw the most significant changes, moving up nine and 73 placesrespectively, indicating better engagement with small and medium enterprises (SMEs),which tend to be the engine of growth in most developing economies.

CWG boss backs Nigerian business


NigeriaBUSINESS

28

investment and asset management is a very important matter ininsurance and in insurance companies.

AR: I understand that you are also highly rated amongst theindustry’s regulators.FO: Yes, we have the second-highest rating of any privately ownedreinsurance company in Africa. There is one insurance company rated‘A’ and one of the state-owned Maghreb companies is rated B++, andwe are rated B+.

We believe that we are in a strategically important situation. If I cantake you back some 30 years ago, African nations were very worriedabout insurance premiums being taken overseas, so what mostcountries did was to create an reinsurance company and make itcompulsory for all insurance companies to give a percentage of everypremium to that company.

We in Nigeria didn’t have that type of legislation, which I think wasfortunate for us because it meant that we had to be innovative, wehad to be more aggressive and we had to be more creative.

We started this business some 30 years ago in Lagos then weopened the first branch office in Douala, Cameroon in 2003. In 2008we opened a branch office in Nairobi, Kenya. Now we have convertedthe Nairobi office to a subsidiary

Continental Reinsurance opened offices in Abidjan, Côte d'Ivoire, in2012, and in Tunisia last year - and we created a subsidiary inBotswana earlier this year.

AR: Can reinsurance be described as a wholesale insurance product,allowing insurance companies to hedge their business?FO: It is. We insure the insurance companies, it is business to business,and we also, in turn, have our own insurance programmes.

AR: How big a problem is the issue of fraud in Nigeria? FO: Unfortunately, we do have this problem. It is something that hasplagued the insurance industry. We have legislation and strictpenalties for anybody caught trying to defraud insurance companies.But I think technology is assisting us, and companies are now able tocompare notes with one another. We have to be careful to investigatecertain claims, but inevitably some people say that we just don’t wantto pay!

AR: Do you have much involvement with the oil and gas industry?FO: Yes, indeed. As Nigeria is one of the leading oil producingcountries we have specialist knowledge, and we are now providingsupport to Kenya now that Kenya has discovered hydrocarbons. Weare assisting not just in underwriting also but in terms of framinglegislation to support the underwriting, by having a dialogue withregulators.

AR: Do you see linkages between mobile technology andinsurance, particularly for micro insurance?FO: I think mobile technologies do offer innovative ways to paypremiums, allow customers to make and check claims, receivepayments etc. So it’s an interesting development. It’s significant that atthe last meeting of the African insurance industry in Kigali, the chiefexecutive of the Lloyds market said that there was a lot that Europeaninsurers could learn from Africa in terms of the use of communicationstechnologies.

AR: Does the insurance sector in Nigeria have strong links with thebanking sector? FO: The situation has been changing in Nigeria because of newregulations from the Central Bank of Nigeria, the central bank,affecting those banks that have insurance subsidiaries. Perhaps part ofthe problem is that we don’t have a common regulator. I think wehave only two insurance companies that are still affiliated to a bank.

AR: Are the big international insurance companies now eyeing Africa?FO: Fortunately or unfortunately, yes they are and you see a lot ofthem visiting Africa. Insurance is truly a global business. But what wehave seen in Africa is our best and brightest leaving to acquire skillsand experiences overseas. So the objective for our industry, I believe,is to encourage our people with those skills to return to Africa. We arealways on the look out for people who want to come back.

Let me give you an example. In Nigeria there are probably onlyeight qualified actuaries. All the others are working overseas - so oneof my passions is to try and attract them back to Nigeria.

AR: Do you ever foresee a day where African insurance companiescan take position in Western economies? FO: It depends on how things are allowed to develop. I am sure we aregoing to see a lot of vision within Africa.

The question is, where will the investment come from? If investmentcomes from within Africa, we will build strong pan African institutionsand we will be able to look beyond Africa in the near future. Ifinvestment comes from outside Africa, unfortunately we will have losta good opportunity. Africa’s economic growth is at almost doubledigit. That is not happening anywhere else in the world, but we mustleverage our opportunities.

So I do believe that the growth opportunities are in Africa and wecan work in such a way as to harness our own strength and developinternational companies who will be able to compete. And that is myvision for Continental Insurance. �

The interview was conducted for African Review of Business andTechnology by Stephen Williams



TECHNOLOGYSoftware

29

Leading the way withindustry appsCreating industry applications with GE's innovative Predix Industrial Internet platform


GE has brought innovative technologiesto the Middle East, North Africa andTurkey (MENAT) markets through the

launch of its software platform Predix, whichpowers the Industrial Internet. Available now,Predix enables users to create and deploycustomised industry apps at speed and scaleto manage the performance of their assetsbetter.

The launch of Predix closely follows theunveiling by GE of ‘The Future of Work inMENAT,’ a roadmap to unlock the true growthpotential of the region by redefiningeconomies of scale, creating new jobs foryouth, reshaping supply chains, promotingsmall and medium enterprises andaccelerating the pace of innovation. A keypillar in ‘The Future of Work’ is the IndustrialInternet - the merger of cloud-based analytics(big data and industrial machinery (big iron))to boost efficiency. Globally, GE is estimatedto have delivered more than US$1bn inincremental revenue in 2014 from 40Industrial Internet offerings, with US$1.3bn inorders, helping customers improve assetperformance management (APM) andbusiness operations across the company.

The future of work, through the IndustrialInternetGE’s ‘Future of Work’ approach of capitalisingthe power of Industrial Internet, AdvancedManufacturing (through techniques like 3Dprinting) and the Global Brain (the collectiveintelligence of human beings integrated bydigital communication networks) is an idealfit to the aspirations of business leaders inthe region, reflected in the findings of the2014 ‘Global Innovation Barometer’ survey. Inkey findings, for example, compared to aglobal average of only 52 per cent, over 78per cent business executives in the UAEobserve that the nation is currently in a newIndustrial Revolution era defined byIndustrial Internet, the meeting of hardwareand software.

“The tools are in place to realise thepotential of the Industrial Internet to increaseproductivity for our customers and for GE,”said Jeff Immelt, chairman & CEO of GE. "Themore we can connect, monitor and managethe world’s machines, the more insight andvisibility we can give our customers to reduceunplanned downtime and increasepredictability. By opening up Predix to theworld, companies of any size and in anyindustry can benefit from the investments GEhas made by eliminating the barrier to entry.”

Nabil Habayeb, GE’s president & CEO for theMiddle East, North Africa and Turkey, added,“The launch of our Industrial Internet offeringsreflect the fundamental shifts occurring in theregions’ business sector. Across ourgeographic footprint, our customers andpartners are increasingly drawing on thepower of innovation and digital technologiesto maximise their operational efficiency. OurIndustrial Internet offerings will be the game-changer for the region as they enablebusinesses to make the right decisions at theright time to keep assets safe, help them run

better, consume less fuel, receive service moreefficiently and minimise unplanneddowntime.”

Optimising processes with PredixTo help businesses accelerate the adoption ofIndustrial Internet solutions, GE also offers anAPM tool, which helps customers assess theircurrent operations and identify the assets andprocesses that would benefit the most fromincreased connectivity, data analysis, andoptimisation. Rania Rostom, GE’s chiefinnovation officer, GE MENAT, commented,“Businesses in the region are open to a waveof innovation led by collaboration and co-creation. Industrial Internet technologies arethe future and present a win-win situation forall; for us, it enables us to provide optimalsolutions for our partners, and they in turnbenefit from the increased operationalefficiency and potentially reduced costs. Italso supports the region in creating a thrivinglocal supply chain and business ecosystem,which is powered by the innovative initiativesof small and medium enterprises sector. �

Jeff Immelt, chairman &CEO of GE

S07 ATR Dec 2014_Jan 15 - Technology_Layout 1 19/12/2014 09:05

Apptio, which provides cloud-based technology businessmanagement (TBM) software, recently introduced a new versionof its software, to automate application total cost of ownership

(TCO) to accelerate investment and rationalisation decisions. Newcapabilities are designed to meet needs outlined by more than 200 ITleaders during a recent series of TBM industry and functionalWorkgroups hosted by the TBM Council, an organisation of IT leadersseeking to influence new IT management standards, collaborate withpeers, and redefine the value of technology in business.

Apptio Cost Transparency (CT) is powered by the Apptio TBMUnified Model (ATUM), a standardised combination of data and costmodels. Building upon the foundational capabilities delivered tocustomers in a previous version of the CT package. ATUM now extendsfrom IT cost pools and resource towers to the application level.

With the kind of comprehensive monthly analysis of applicationcost trends and drivers delivered by this kind of software, IT leaderscan accelerate decisions on application rationalisation, investment,and cloud migration. With enhanced application TCO analysis, usersare able, quickly and easily, to manage the financial impact of eventslike mergers and acquisitions, data centre change, shared servicedmigration and outsourcing.

Working with technology for businessThe TBM Council recently joined with KPMG and ISG to host sevenTBM Workgroups chaired by forward-thinking CIOs to collaborate onbusiness management strategies, financial best practices, andindustry-specific benchmarks.

A key conclusion shared by attendees of these workgroups was thatunderstanding the factors that drive application costs is timeconsuming and challenging. Without this information, IT leadersencounter overconsumption of infrastructure, difficulty consolidating

their application portfolios, and the inability to report and show thevalue of their costs to the business.

Enhanced cost management capabilitiesAs an example of an improved approach to business, CT users haveaccess to interactive guidance on the data needed to power relevantanalysis, good/better/best cost modelling options, andcategorisations to slice and dice application costs by businesscriticality, investment objective, family, function, type, and more.Additionally, CT now includes tens of thousands of configurable out-of-the-box key performance indicators (KPIs) to analyse granular costand resource metrics for each application.

These enhanced business analytics allow users to:Automate a monthly “buy-build-run” cost breakdown for eachapplication in their portfolio to maximise alignment to businessobjectives.

Drive understanding and action with interactive, granular views intothe composition and drivers of application cost. TCO is achievedthrough a comprehensive cost view including software licenses,development projects, support, infrastructure and operations.

Automate monthly analysis of the total cost to buy, build, and runeach resource-intensive application with a total view of software,project, asset, and labour costs.

“It’s our goal to design and develop elegant, powerful, and effectiveapplications for our customers that ultimately make their job easier,”said Ted Kummert, EVP of engineering at Apptio. “Cost Transparencyarms IT leaders to solve one of the key challenges facing them today.We believe that the capabilities included within this release areessential to IT leaders looking to understand the impact of theirapplications on IT costs.” �

Cloud ComputingTECHNOLOGY

30

Managing cloudbusiness modelsThe emergence of cloud computing and big data has fundamentallychanged the role of the CIO, requiring clearer insight into IT spend

IT is improving with cloud-basedtechnology business management (IICD)


Business computing costs can now bebetter managed (Photo: Robert Nunnally)


Block 54A, Plot 10, Off Rufus Giwa StreetOff Adebayo Doherty RoadOff Admiralty Way Lekki Phase 1, LagosTel: 234-1-2706065, 01-2809800 Ext.: 1000Fax: 234-1-2706064Email: -mail: [email protected] Website: www.cwg-plc.com

Computer Warehouse Group Plc Headquarters

E-mail: [email protected]: www.cwg-plc.com

E-mail: [email protected]: www.cwg-plc.com

E-mail: [email protected],[email protected]: www.cwg-plc.com


Shipping line SafmarineMPV expects themulti-purpose trade between SouthAfrica and West Africa to grow in 2015 as

South African companies strengthen theirfoothold in the West African market andbecome more globally competitive. Accordingto SafmarineMPV’s James Lewer, “Intra-Africatrade of value-added, manufactured goodshas grown faster than African exports to therest of the world, according to a recentEconomic Outlook Report published by theAfrican Development Bank, OECDDevelopment Centre and United NationsDevelopment Programme (UNDP). SouthAfrican companies such as Gauteng-basedDominex – which provides infrastructure partsand manufactured goods to railway andmining companies in Africa – have seeminglyproven their competitiveness globally as wellas their ability to respond to West Africa’sneeds for goods and services.”

Angolan linksDominex was recently awarded a tender tosupply Angola’s major railway line, Caminhode Ferro de Benguela (CFB) with 11 railwagons, following a global tender process.The rail wagons were destined for theCaminho de Ferro de Benguela (CFB) which

links the port of Lobito to the eastern bordertown of Luau in Moxico province, where anew international airport is under construction.Dominex had previously supplied two trainsets to CFB in 2011 and were chosen again asthe preferred supplier for the new tender as aresult of their proven ability.

According to Dominex’s Kirk and NicoChristodoulakis, “Angola is rebuilding andupgrading the railway infrastructure for thefuture, responding in particular to the

demand from the emerging and growingmiddle-class for more executive railtransportation and accommodation. The CFBis a very important and strategic Angolan railnetwork, not only because it provides accessto the inner part of the country but, moreimportantly, because it links to thecopperbelts of Katanga province, theDemocratic Republic of Congo and Zambia.”

Shipping opportunitiesThis was the first time Dominex and theirfreight forwarder, Mentor Freight Services,had shipped with Belgian-based shipping lineSafmarineMPV. According to KirkChristodoulakis, “Having access to a reliableand frequent shipping service, such asSafmarineMPV’s SAFWAF service, makes itpossible for companies such as Dominex totake advantage of the significant businessopportunities in West Africa.”

James Lewer commented, “SafmarineMPVwas on hand throughout the loadingprocess and appointed a team whichcomprised in-house and third-party expertsin rigging and lashing as well as handlingand stowing to ensure the rail coachesarrived safely in Lobito.” �

Multi-modalTRANSPORT

32

South meets West formulti-purpose tradeGood prospects for logistics services between South Africa and WestAfrican countries, encompassing multiple modes of transport

An executive rail coach is loaded onto the Safmarine Longaunder the watchful eye of SafmarineMPV staff and crew


Dominex’s Nico Christodoulakis was on hand to overseethe shipment of the nine rail wagons to Angola

S08 ATR Dec 2014_Jan 15 - Transport_Layout 1 19/12/2014 09:07

ANALYSISSecurity

33

Powering Up With anEye on Corruption


In June 2013, during his visit to South Africa,Barack Obama announced a new initiativethat many hope will generate significant

investment opportunities for energy marketsacross sub-Saharan Africa. Obama’s “PowerAfrica” speech signalled the commencementof US$7bn in new investment inflow into theAfrican power sector. The call to action, whichaimed to generate an additional 10,000MW ofelectricity to power 20mn new homes andbusinesses across the continent, received overUS$20bn in commitments by August 2014.

The initiative fosters long-termrelationships between private investors andAfrican governments, with a view to delivermajor advancements in powerinfrastructure and capacity. Severaltransactions have been initiated under theprogramme, including a 1,000MWgeothermal-power project in Ethiopia,wind-power projects in Kenya, and hydro-and solar power projects in Tanzania.Private equity in the African energy sectoris likely to continue to increase throughout2015, especially in light of a pledge byNigerian investor Aliko Dangote to investUS$5bn jointly with Blackstone group insub-Saharan Africa with a special focus onelectricity infrastructure and generationassets.

African governments had already begunto address the power conundrum prior toObama’s announcement. The Nigeriangovernment recognised that it had neitherthe resources nor skill required to plug thepower deficit, and it began to privatise thestate-run power sector. Other Africangovernments are similarly opening up theirelectricity sectors to private investors. Avariety of opportunities has sprung up forprojects linked to national power grids aswell as independent, “off-grid” solutions.

Significant challenges around undoubtedinvestment potentialThe process of privatising the Nigerianpower sector highlighted some of the

challenges that will be faced by investorsacross the continent. Several high-profileinternational financial backers steered clear

of the process in Nigeria, citing suchproblems as inadequate electricity tariffs, aperceived lack of transparency regarding

Gbenga Abosede, Practice Leader for Compliance Intelligence Investigations and Technology at Control Risks


SecurityANALYSIS

36

the conditions of assets being auctioned,and the absence of government guaranteesto protect investors against circumstancesbeyond their control, such as gas supplyoutages. The net result was that thewinning bidders relied on debt capital fromlocal Nigerian banks. One year on, thesector is in urgent need of additionalfinance to recapitalise the asset purchases.There is now a need to replace local short-term financing with long-term capital fromforeign investors as local banks contendwith lending limits. The Nigerian Ministry ofPower estimates the requirement will beabout US$10bn over the next 10 years.

African governments are taking steps tofacilitate investment in their economies byimproving the regulatory environment.However, a significant hurdle remains- therisk associated with investing in emergingeconomies, where there are concerns abouthigh levels of corruption and politicalinterference. Anxiety about ‘integrity’ is atthe top of the agenda, not only forinternational businesses but for the moresophisticated local African investors. Theyare keen to attract co-investment, andaware of the judicial and reputationalpitfalls of being caught up in bribery,conflicts of interest and political intrusion.

Three powerful drivers are sharpeningcorporate attitudes to corruption. First, theUS is consistently tough on bribery andcontinues to diligently enforce the ForeignCorrupt Practices Act (FCPA), which claimsjurisdiction over international transactions.Secondly, other industrialised economiesare tightening enforcement and somemember countries of the Organisation forEconomic Co-operation and Developmentare following the US lead. Finally, andperhaps most significantly, emergingmarkets are also joining in the enforcementtrend. Recent developments in China, Braziland India have signalled that anti-corruption enforcement – driven by several

factors, including economic protectionism� is no longer a Western phenomenon. Inthis context, more than ever, internationalinvestors need to be prepared to accountfor the effectiveness of their anti-corruptionprogrammes.

Implementation instead of glossyprogrammes on paperIn this year’s edition of Control Risks’ annualsurvey International Business Attitudes toCorruption, 638 senior legal andcompliance professionals from around theworld answered questions aimed atestablishing whether their organisationsare ready for the challenges of today’scompliance environment. Our findingssuggested that although companies areaware of the warning signs from varioushigh-profile prosecutions, there remains adisconnect between their observations andthe actions they take to improvecompliance levels. 87.9 per cent of therespondents stated that they have policystatements banning bribes to securebusiness. However, far fewer have actuallytaken measures to implement such policieseffectively.

Investors should consider introducingmeasures in the following critical areas:

� Leadership – Without clear leadership fromthe top, company policies, however welldrafted, are unlikely to be effective. Of thesurvey respondents, only 47.5 per cent hada board director or a compliancecommittee specifically responsible for anti-corruption. A company’s reputation is astrategic issue that demands closeattention at the very highest level.

� Third-party checks – Most high-profilecorruption-related enforcement actionsinvolve intermediaries paying bribes onbehalf of their business partners tosecure contracts. Several FCPA cases havedemonstrated that companies areexpected to ensure intermediaries andother third parties do not pay bribes ontheir behalf. Failure to do so could lead toprosecution. Our survey found that only58.3 per cent of respondents hadprocedures for carrying out integrity duediligence assessments of new businesspartners. Fewer than half of therespondents said they frequentlyconduct integrity due diligence of thirdparties in high-risk jurisdictions. InControl Risks’ view, integrity duediligence is an essential measure forinvestors in these jurisdictions and is keyto demonstrating a company’s

commitment to getting to grips withintegrity risks.

� Anti-corruption assessments – Despite thefact that most businesses have an anti-corruption policy statement, only 38.2 percent of respondents said they haveprocedures for assessing corruption riskswhen entering new countries. In ourexperience, contextualising the real risksthey will face is an essential step inimplementing a policy statement.

� Training – Anti-corruption training is aneffective method of getting the messageacross to employees. However, our surveyfound that only half of the respondentshave such training programmes foremployees. Fewer than a third haveprogrammes for selected groups ofemployees, such as board directors, salesprofessionals and other high-riskemployees.

� Internal communications – To demonstratecommitment to clear and accessible linesof communication, confidential whistle-blowing lines should be a pillar ofmanaging a business in a high-riskjurisdiction.

The power sector is just one example of thegrowing investment opportunitiesmushrooming from the demand for betterinfrastructure and amenities amid developingand urbanising populations in fast-growingAfrican economies. The issues faced byinternational and local investors are commonacross sectors; businesses need a roundedapproach to managing and mitigating thesevery real risks.

About the authorGbenga Abosede is Practice Leader forControl Risks' Compliance IntelligenceInvestigations and Technology department inWest Africa. Gbenga specialises in integritydue diligence and provides strategic adviceon corruption-related matters and theireffects on investment in the region.Contact him at [email protected]

About Control RisksControl Risks is the only internationalintegrity risk consulting and investigationspractice with a real and permanent presencein Africa. Our Africa teams based in Lagos,Johannesburg, Nairobi and London areexceptionally well equipped to delivernuanced assessments of context-specificissues faced by our clients. �

www.controlrisks.com


Power Africa fosterslong-term

relationships betweenprivate investors and

African governments,with a view to delivermajor advancements

in powerinfrastructure and

capacity”


POWERAlternator

37

Alternators offering reliability and durability Leading alternator manufacturer Cummins Generator Technologies elaborates ontheir range of power alternators, and why the products are a perfect fit in Africa


AFRICA HAS GRAPPLED with power supply for severalyears now. However, there has been a steady streamof investments and new technologies coming to the

aid of Africans. UK-based Cummins Generator Technologiesis assisting the process of power generation in Africa bysupplying the latest range of alternators.Currently, the low to middle range of STAMFORD are the

most popular across Africa at this time. These alternatorsrange between 4kVA to 700kVA. Specifically, theSTAMFORD P0 and P1alternators have been themost popular productsacross Africa to date. The P0and P1 alternators arerobust, with power outputsof up to 45 kVA and aredesigned for primepower, construction,telecommunications,standby power, oiland gas, criticalprotection, marine andCHP. They are available ineither two or four poleswith single or doublebearings, and can be fittedwith optional anti-condensationheaters while operating in demanding conditions.Power requirements in challenging environmental

conditions such as in Africa have meant that alternatorsmust be more robust and capable now than they ever havebeen. Air filters are commonly employed to keep out sandand dust, while water filters can be fitted to large alternatorsto moderate the temperature in hot and challengingapplications.The alternators are mainly made out of “active materials”

such as copper and electrical steel. The quantity and qualityof these materials are critical to the overall performance andreliability of the product. Designers of modern alternatorsare always looking at improvements in other areas,particularly insulation, where new materials with improvedthermal and di-electric strength are continuing to bedeveloped. This gives the designer the opportunity toincrease power/voltage outputs or increase the operatingtemperature of the electrical machine.

In addition, the company also offers marine alternatorsacross STAMFORD and AvK ranges with various, tailoredoptions including water coolers and enclosure options,depending on the type and harshness of the marineapplication.According to officials at Cummins, applications like

telecommunications, residential and prime power arepopular in Africa, while

commercial and mining aretouted to be the sectors toprovide the company themost potential to grow inAfrica in the next decade.While in southern Africa,

the main applications arestandby power, it is forprime power in the restof Africa. Nigeria, SouthAfrica, Egypt, Moroccoand Algeria are amongthe company’s largestmarkets currently.Cummins GeneratorTechnologies has increased

its investment in Africa and nowhas a growing presence. Africa is a

key market for Cummins and one that itwants to grow in.

Authenticate your STAMFORD alternator:There are many fake STAMFORD alternators in the Africanmarket. Many customers do not realise they are counterfeitand therefore contact Cummins Generator Technologiesdirectly for after-sales support. Cummins is proactively tryingto educate customers about how they can authenticate theirSTAMFORD alternators (see www.genuine-stamford.com formore information). Dedicated to the success of theircustomers, Cummins has created an informational micrositeon how to guarantee customers can always get genuineSTAMFORD alternators ( www.genuine-stamford.com ) aswell as another microsite on the complexities of Grid Codesand how customers can be guided through to compliance (www.gridcodegenerators.com ). From 2015, customers willbe able to tune into live Webinar broadcasts hosted byCummins Generator Technologies, which will help them witha range of technical advice. �

STAMFORD P6 alternator fromCummins Generator Technologieshas a power range up to 1,250kVA

and is designed for standby andisland mode operation

S09 ATR Dec 2014_Jan 15 - Power 01_Layout 1 19/12/2014 09:08

There are many opportunities forinvestors seeking industrialapplications for innovative energy

technologies, or to create a distributed,heterogeneous, robust, and sustainableenergy infrastructure. However, socio-economic developments are constrained bythe relative immaturity of the continent’senergy networks.

The statistics show the broad need forfurther growth. The World Bank indicatesthat only 24 per cent of the sub-Saharanpopulation has access to electrical power,and many regions that do have power areplagued by rolling blackouts. However,electrical equipment manufacturers andsuppliers are benefitting from orders forlarge-scale projects and local sourcing, and

stronger interest in prioritising productquality over price. There is some way to go,but the following pages offer evidence thatthe industry for power components isstrong and gaining momentum. The keymessage is that Africa is open totechnologies for all forms of powergeneration, as well as strategies foroperating in smarter ways.

Electrical EquipmentPOWER

38

Transforming Africa’spower provisionAfrica’s markets for electrical equipment are growing, in line with thegrowth of economies and the rise in orders for infrastructure


For over 50 years Rotary has beenmanufacturing motor rewind workshopequipment. It has helped many Africancompanies improve their productivity andquality of service.

Rotary’s history as a high voltage coilmanufacturer and repairer of power stationgenerators and motors of all sizes led to thedesign and development of a completerange of equipment which we manufactureeither as one-off additions to a rewindworkshop or as part of a complete packageof workshop design, training andtechnology transfer where required.

Rotary’s range includes: coil windingequipment, including coil presses andspreaders for HV coils; DC coilmanufacturing equipment; motor test

consoles; coil removal equipment: coilpullers, coil end winding cutters, burnoffovens; varnish dip tanks; bearing extractors;bearing heaters; brazing equipment.

www.rotary.co.uk

Rotary’s rewind workshop

Rotary’s motor rewind and coil manufacturing technologyAt ADIPEC 2014, held in November in AbuDhabi, Marelli Motori presented currentand potential customers with a mediumvoltage explosion proof motor speciallydeveloped for hazardous areas such as therefineries and offshore installationscommonly found the Middle East andNorth Africa.

The company also offered insights intothe recent IECEx certification of itsexplosion-proof motor range. An IECExCertificate of Conformity attests tocompliance with the international productstandards and that the manufacturing sitehas been audited to verify that quality.Hence, in addition to the range’s attributes,certification makes international tradesimpler, faster and more cost-effective.

Marelli Motori attends to clients at ADIPEC

At ADIPEC 2014, held in November in AbuDhabi, Marelli Motori presented current andpotential customers with a medium voltageexplosion proof motor specially developed forhazardous areas such as the refineries andoffshore installations commonly found theMiddle East and North Africa.

The company also offered insights into therecent IECEx certification of its explosion-proofmotor range. An IECEx Certificate of Conformityattests to compliance with the internationalproduct standards and that the manufacturingsite has been audited to verify that quality.Hence, in addition to the range’s attributes,certification makes international trade simpler,faster and more cost-effective.

Marelli Motori attends to clients at ADIPEC

Omicron´s RelaySimTest software allowsCMC test set users to easily performsimulation-based relay testsindependent of the relay type,manufacturer and detailed parameters.For end-to-end testing in the field, evenmultiple CMCs can be controlled fromone PC, using a standard Internetconnection. This considerably simplifiesdistributed testing of systems such asteleprotection or line differentialprotection. The time synchronization ofthe devices is conducted by the flexiblePTP grandmaster clock CMGPS 588.

With RelaySimTest, distributed testscan be performed in the same way assingle-end shots. The required injectionsignals are calculated for all endsautomatically, making troubleshootingof the network very efficient.Comprehensive reports can be generatedin a single place over the whole test,covering all relays. Furthermore,RelaySimTest simulates relay-controlledbreaker operations. With iterative closed-loop simulation, the testing ofauto-recloser functions is possible evenin distributed protection systems.

Application-oriented and distributed protection testing


POWERElectrical Equipment

39African Review of Business and Technology - Dec 2014/Jan 15www.africanreview.com

Part of the BON Hotel Group, Hotel Verdehas been dubbed ‘Africa’s greenest hotel’

and it is obvious why. Every aspect of thehotel is designed to be as sustainable aspossible, employing systems that areefficient at saving water and electricity,while reducing waste. The building featuresgreen landscaping, a vegetated roof,impressive three-3kW vertical axis windturbines and a façade of photovoltaic panelscontributing to renewable energy,generated on-site. The lighting infrastructureformed a central part of the energy savingsenvisioned by the owners and they wantedto invest in cutting edge, energy efficientlighting technologies right from the start,whilst considering the aesthetics of thehotel. In order to achieve this, they turned tolighting experts Eurolux and Blair Hammond& Associates for help.

Eurolux and Blair Hammond & Associateswere contracted to design and supplylighting solutions for Dematech’s offices,Hotel Verde’s bedrooms, conference rooms,living wall, parking garage and exteriorlighting, which included architectural, streetand security lighting. The brief was to createan exceptional guest experience showcasingthe beauty and functionality of energyefficient lighting, whilst adhering to themost advanced global sustainabilitystandards. Given the hotel’s location – but astone’s throw from Cape Town InternationalAirport – aviation standards required thehotel to only illuminate downwards, furtheremphasising luminaire selection.

In order to achieve all of the above, acomplete lighting design was completed foreach of the specific areas, taking intoaccount luminaire specifications andlighting control systems. A detailed Basis ofDesign (BoD) document was also compiledto document all technical aspects of theconcept design, relevant codes, systems,equipment and parameters required toachieve a maximum Leadership in Energyand Environmental Design (LEED) rating.

The density of designEach area of the hotel was modelled inlighting design software in order to confirmcorrect light levels and to ensureachievement of the lowest possible lightingpower density targets, over and above theLEED baseline values.

“The use of lighting design softwareenables the client to make an informeddecision by being able to visualise the effectof the lighting designs, this allows the

design process to run smoother and moreaccurately,” explained Daniel Hammond,lighting designer at Blair Hammond &Associates.

LED light sources were installedthroughout the hotel’s interior and exterior,with the exception of the conference roomsand task lighting for offices. In theconference rooms and offices, lowbrightness T5 fluorescent fittings wereinstalled, as these illuminate work spaceswhile minimising glare. Eurolux alsosupplied all 2560 meters of LED striplighting and 528 drivers for the hotel. Allfittings in the conference rooms, receptionand restaurant are controlled by the lightingcontrol system, which was installed by aspecialist company. This ensures that theoptimum usage of light and energy isrealised when needed.

Eurolux further boosted the energyefficiency of the hotel by supplying a rangeof sensors. All public areas, including thepassages, boardrooms, undergroundparking areas and gym have motion-sensorsthat activate the lights when motion isdetected. After a timed period of about 15minutes without any motion beingdetected, the lights will switch off. Inaddition, they also fitted light level sensorsthat measure the amount of light received.These sensors consider factors such asnatural light entering through windows,and dim or brighten the output of the lightsto ensure sustained light levels.

“The lighting designs by Blair Hammond &Associates specified the latest LEDtechnologies, with careful consideration forstable colour temperature, good colourrendering, durability and most importantly,aesthetics,” said Shaun Bouchier, director atEurolux. “We provided top of the rangeproducts that met with all the requirements.”

Lighting up the Hotel Verde - Africa's greenest hotel

Caption

Legrand’s range of service sector solutionsincludes an uninterruptible power supply(UPS) system, which enhances products -from structured cabling systems for datanetworks, to control and management ofthe installation, including trunking anddistribution systems.

“Legrand’s environmentally approach toconstantly changing global markets,encompasses ongoing technologicaldevelopments of the company’s extensiveproduct portfolio. “Energy efficiency,quality power supply, optimum safety andenhanced aesthetics are critical in theadvancement of all Legrand systems,”claims Luk Ivens, general manager, LegrandSA, global specialists in electrical and databuilding infrastructures. “The Legrand UPSsystem, which ensures continuity of servicefor installations in diverse industries,provides reliable performance in terms ofpower and back up time.

Legrand’s new UPSsystem enables continuityof service

Tracking, sequencing, FuseLink - these termsdesignate highly attractive extra functionalityincluded in the new R&S HMC804x powersupplies from Rohde & Schwarz. Data loggingand an integrated energy meter are furthernew features.

The R&S HMC804x power suppliesdeveloped by Rohde & Schwarz subsidiaryHAMEG Instruments are equipped with one(R&S HMC8041), two (R&S HMC8042) or three(R&S HMC8043) channels. All models from thisseries deliver up to 100W of power and areadjustable between 0V and 32V in steps of1mV. They also offer a range of attractive extrafunctions.

Tracking is available in the two multichannelmodels and enables combined parallel or serialoperation. It is still possible to provide powerto several circuits independently. Changes tocurrent and voltage values are carried outsynchronously in combined channels.

R&S HMC power suppliesgain functionality

The R&S HMC804x power supplies series deliver up to100W of power, are adjustable between 0V and 32V insteps of 1mV and offer a range of attractive extrafunctions.


Electrical EquipmentPOWER

40 African Review of Business and Technology - Dec 2014/Jan 15 www.africanreview.com

Power and automation technologiesprovider ABB has won orders worth

around US$16mn to supply tractionsubstations and auxiliary power supply for anew rail corridor in Ethiopia. The Awash-Kombolcha-Weldia line is part of a five-yeargrowth and transformation plan beingimplemented by the Ethiopian Governmentto provide efficient mobility, facilitate tradeand strengthen the economy. The order wasbooked in the third quarter.

The contract was awarded by Yapı MerkeziConstruction and Industry Inc., a leadingTurkish transportation infrastructurecompany. The project is scheduled forcompletion in 2017.

ABB will design and supply engineeredequipment packages for five 230/25 kilovolt(kV) traction substations, eight section postsand about 30 auxilliary substations. Key

products to be supplied include a range ofhigh and medium-voltage switchgear,traction transformers rated at 25 megavolt-ampere (MVA), power factor correction (PFC)transformers, FSK II+ railway circuit breakersand auxiliary power supply equipment.

The 400km Awash-Kombolcha-Weldiarailway line will connect the northern andeastern traffic corridors of Ethiopia viaKombolcha and Weldia/Hara Gebeya in thenorth. The line will also connect to the linelinking Addis Ababa, the Ethiopian capital, tothe port of Djibouti. This will enhancepassenger travel and trade, reducing traveltime to the port by 50 per cent.

“These substations will enable the efficientsupply of electricity to power the network’sexpansion and ensure reliable operation andperformance of this rail network,” said ClaudioFacchin, head of ABB’s power systems division.

Be it kilowatt or megawatt systems, Dehnprotects investments against interferencecaused by lightning currents and surges.

The Dehncombo YPV SCI combinedarrester safely protects PV systems fromsurges caused by lightning interference.This surge protective device combines atype 1 lightning current arrester and a type2 surge arrester in a single device. Itincorporates a tried and tested Y circuitwith patented SCI technology and takesup little space.

The Dehncube YPV SCI surge arresterreliably protects the d.c. side ofphotovoltaic systems from surges causedby lightning interference. This newconcept for the first time combines anumber ofbenefits for PVsystems in asingle device.

Concentratingon the essentialwithoutcompromisingsafety – thismeans for theprotection ofstring inverters,that reliable products with economicbenefits are required. The compactDehnguard YPV SCI type 2 arrester fromthe surge and lightning protection expertDehn, which was specifically developed forstring inverters, meets this customerrequirement and has a total dischargecurrent of 40 kA (8/20 μs).

Satir manufactures thermal imaging cameras for thermography, process control, security,surveillance, vehicles (for night driving) and specific applications such as fever detection.Either handheld or fixed mounted and bespoke systems can be supplied, as per requirements.Typically, the firm offers: 80x60, 100x80, 160x120, 384x288 and 640x480 resolution UFPAdetectors, with 25µm pitch, 50-80mK thermal sensitivity at 50Hz, license free.

Satir’s latest products include: PK160 thermal camera, which integrates tablet and thermalcamera technologies; the NV600 and La Moon range of products, which have been designedto assist the drives of any vehicle, lorry and buses; UMTI monocular technology for night timepatrolling and observation; and thermal cores with optional lens and resolutions designed tomeet the demands of the new industries such as UAV and process control.

ABB equipment for new railway line

Dehn protects PV systems – in apractical and future-oriented way

Dehnguard YPV SCI - New surge protective device forstring inverters

Dehncombo YPV SCI type 1 and 2 combined arresterfor PV system

PV systems from Dehn

Satir’s portfolio of thermal imaging products

A subsidiary of Enerdynamic HybridTechnologies Corporation (EHT) has enteredinto an agreement with Sopam SA toestablish an entity called Maple Leaf EnergySA (MLE) to serve West Africa from Côted’Ivoire. MLE is targeting the EconomicCommunity of West African States (ECOWAS)for the sale of its micro hybrid energy line ofproducts, which include micro wind, solar andbattery back-up systems packaged forvarying power outputs, and which can beassembled in approximately one hour. This‘Ener product line’ can be used by consumersto power homes in remote locations wherethere is no grid connection or to power ahome and distribute power to the grid whenthe electricity supply exceeds demand.

Solar tech firm Phaesun offers compact user-friendly lithium batteries for small off-grid PVsystems. Solar Side lithium batteries can supply lamps, small TVs and other standard 12VDCappliances up to 60W. With three load outlets (5A, 12VDC), loads can be connected in plug &play fashion. A USB-Outlet (1.5 A, 5VDC) allows 5V USB devices to be recharged or operated.

EHT enters West Africanelectrical market withSopam

Phaesun’s plug ‘n’ play Lithium battery for off-grid systems

A provider of power solutions for marine,industrial, and automotive application, VictronEnergy offers eight models within its ultra-fastBlueSolar charge controller (MPPT) range.

Key features include: automatic batteryvoltage recognition, intelligent batterymanagement by load shedding, ultra-fastresponse times to solar irradiance, and multistage charging algorithms.

Whilst BlueSolar MPPTs (like other majormanufacturers) allow solar modules to beplaced in series as well as parallel to increaseinput power; Victron MPPTs are unique inhaving solar power limiting built in, whichensures the output power of a system willnever exceed the maximum rating of thecontroller. This special feature of the VictronBlueSolar MPPT range allows customers toconnect a surplus of nameplate solar power.

Victron Energy’ s solarcharge controller range


Himoinsa is looking to build on businessin Africa with hopes to open asubsidiary in the northern region in

2015, according to Himoinsa executivedirector Lydia Gracia.

The global provider of energy generationsystems has stated that nations includingMorocco, Algeria and Senegal are potentiallyviable locations to house Himoinsa’s secondAfrica regional subsidiary.

“The company is very focussed on openingnew subsidiaries and North Africa has beenquite an interesting market for us over the lastyear,” the company executive director toldAfrican Review.

“We consider the area is big enough todemand us internally. It’s something we’reworking on […] I think 2015 will be the year.”

Telecommunications is one industrialsector where the company is experiencinggrowth in the African market. According toHimoinsa, it has worked with more than 20telecommunication companies across thecontinent and has sold approximately 100units for one company in Morocco alone.

“This is a very important sector, which isgrowing,” Lydia Gracia stated. “With telecomswe are succeeding well in Africa, SouthAmerica, and Asia.”

She added, ”2015 will be quite an importantyear for telecommunications projects.”

Evidence of Himoinsa’s growing interestand investment in Africa can be found in thenews, announced in May 2014, that it hasappointed a new position of businessdevelopment director in Eastern Africa.

Awarded to Ramy Mohy, the appointmentwas made in light of the significant inroadsand strong distribution network that theenergy provider had achieved in the regionover recent years.

Mohy commented, “Himoinsa is constantlyendeavouring to increase its internationalpresence. My goal is to draw on all mypersonal strengths to extend the company’sdistribution network in those countries in EastAfrica where it is not fully represented.”

Furthermore Francisco Gracia, chairman ofHimoinsa, highlighted the importance of

Africa and the value of the business potentialand resources it holds for Europeancompanies.

He said, “Africa is the fuel of Europe. InEurope we must be clever enough to considerAfrica as a partner in order to help themdevelop the area.”

The Himoinsa chairman, who has followedHimoinsa’s steady growth since it wasfounded in 1982, explained that the twocontinents make ideal partners, because theycompliment each other in regards to theresources that both continents lack.

“One of the problems in Europe isemployment. There are 60-70mn people inEurope who cannot find a job and Africaneeds 60-70mn people in helping them todevelop their resources,” he stated.

“In Europe there are a lot of people withknowledge in many sectors. Sending peopleto Africa is a way of helping Europe while alsohelping them.”

Himoinsa boasts a global network, withdistributors in more than 100 countries andmore than 1,000 employees. FurthermoreHimoinsa has one subsidiary in Angola, whichis joined by nine others across the Middle East,Europe, South America and Asia.

According to Himoinsa, much of its successis thanks to remaining a family-run verticalmanufacturer and the speed and flexibilitythis allows in decision making.

Francisco Gracia explained, “The reasonHimoinsa has [reached] the size it has isbecause we reinvest all the profit back into thecompany, new machinery, and new factories.”

He added, “We have to be competitive, butat the end of the day price will be forgottenand quality will remain always in the minds ofthe people.”

With eight production plants worldwide,Himoinsa has the capacity to produce 60,000generating sets per year.

According to the company chairman,robotising the production processes hasallowed Himoinsa to maintain a consistenthigh quality product throughout.

“High quality control is important,” hestated. “Robotising the production processesis how we can keep the high quality product.”

With new appointments to parts of thecontinent and plans to establish a secondregional subsidiary, it is safe to say thatHimoinsa’s presence and business in Africa isexpected to develop considerably over thecoming years. �

GeneratorsPOWER

42

Africa: the fuel of EuropeThe energy generation systems provider Himoinsa speaks to African Reviewabout plans to expand business in the continent and the value of Africa’stelecommunications sector

Himoinsa chairman Francisco Gracia



43African review of Business and Technology - Dec 2014/Jan 15www.africanreview.com

PowerGenerators

Akey figure at market research companyPowerGen Statistics (PGS), RomainMocaer offered an appraisal recently of

the performance of the diesel generatormarket through 2014 in Europe, the MiddleEast and Africa (EMEA). Mr Mocaer accountedfor export performance, and growth inmarket demand, and supply-side data.

Globally, the first half of the year was downby nine per cent. However, the export markethas risen slightly in Q2 and Q3 2014 amongstexporting countries, three - UK, USA andChina - represent the majority of exports,with China the greatest exporter. France, Italyand Spain follow the big three, but by somedistance. China's exports tend to be lesspowerful, cheaper sets than those emanatingfrom the UK and the USA. Three-quarters ofUS sets, and around 60 per cent of UK sets areabove one kVA in capacity. However, Chineseexports of larger sets are rising, indicating amaturity of the manufacturing industry inthat country, alongside a maturity in Chinesesales abroad, and specifically to EMEAmarkets.

The EMEA region represents more than 50per cent of global imports, and much of thismarket is in Africa and the Middle East. ManyArabic imports are destined for oil and gasoperations, whereas a significant share ofsub-Saharan imports are bound to supportcomputing and telecommunications facilities.

One notable fact emerges with respect tobilateral trading. Britain exports gensets toNigeria more than to any other country. �

Powerful data explainedby PowerGen

UK companies such as JCB are prime exporters to Africa

PGS data reveals genset export giants andAfrica's largest importer

of diesels for standbypower


electricity Power

44 African review of Business and Technology - Dec 2014/Jan 15

The Electricity Regulatory Authority (ERA)of Uganda has formulated a ten-yearstrategic plan (2014/15-2013/24) with

the focus directed towards ensuring powersupply security and sustainability of theelectricity supply industry and facilitatingincreased access to electricity by allUgandans.

The government body ERA regulates thegeneration, transmission, sale, export, importand distribution of electrical energy in thecountry. "Our role will be to establish aregulatory framework that will facilitateachievement of these key outcomes, andhence contribute to national socio-economicdevelopment," says Richard Apire, chairmanof ERA.

He added that the strategic plan isexpected to drive the electricity industry tothe next level and has taken into account theCommon Market for Eastern and SouthernAfrica (COMESA) and East African Community(EAC) energy agenda, the five-year NationalDevelopment Plan, rural electrificationstrategy and Uganda' vision 2040.

Uganda's vision 2040 states that in orderfor Uganda to attain its development agendaand meaningful economic growth, the

provision of quality, reliable and affordableenergy services is critical for the country toattain middle income status in 30 years.

The ERA stated in its strategic plan that theperformance of the electricity supply industryhas steadily improved over the last ten yearswith more private sector participation andgovernment investment with an increase ingeneration capacity from an installed of380MW in 2003 to 852MW in 2013.

The transmission network has alsoincreased from 1,165km in 2003 to 1,626kmin 2013 - the main addition being the Bujagaliinterconnection line while energy sales havemore than doubled from 1,038GWh in 2003to 2,118GWh in 2013.

With the growing demand for electricityestimated between 10 to 12 per cent perannum in the short to medium term, the ERAwould continue to focus the regulatory thruston expansion of generation capacity withcorresponding investment in transmissionand distribution infrastructure.

Recognition is made of the fact that thedevelopments in Uganda's oil industry arelikely to trigger significant industrialisationand hence, substantial increase in electricitydemand in the medium to long term. ERA will

remain alert to these developments andadjust the demand assumptions andelectricity generation targets in this plan.

Benon Mutambi, CEO of ERA noted that the"strategic plan serves as a roadmap for ERAfor the next ten years, takes advantage of thefoundation laid by previous plans and itemphasises the positioning of electricitysupply industry as a key enabler for theachievement of the country's sustainabledevelopment goals."

The Ugandan agency recently announcedmeasures aimed to address the challengessurrounding supplying energy to Uganda'surban areas, including the implementation ofa Demand Side Management Plan. The planttargets saving 20 to 50MW of electricitythrough a number of interventions such aspromotion of consumer awareness on energyefficiency and efficient lighting technologies,applying Time of Use (ToU) tariffs to attractconsumers to use more electricity outsidepeak hours and conducting energy audits toidentify areas of improving efficient energyutilisation, especially for commercialconsumers. �

Geoffrey Muleme

empowering Uganda Uganda's power regulatory body has devised a 10-year strategic plan toensure an uninterrupted flow of electricity to the east African nation



Machinery manufacturer Cat hasintroduced a Modular Power Plantfor the production of electricity and

heat in a reliable and sustainablemanner. The product was beingdeveloped over the past twoyears, stated officials from thecompany. Each ModularPower Plant is a location-independent completesystem, fully equippedwith components forspeedy installation. Thedevice takes only 12 daysto assemble.

Cat officials also statedthat the modules would bedelivered to the installationsite to be assembled,facilitating ease of onsiteinstallation and enabling precisionassembly with availability of limitedinfrastructure.

The power plant is suitable forcontinuous and intermittent use and canprovide fast ramp up times when required.The device is commonly used in mining,

heavy and light industry, electricity utilities,and oil and gas industry.

Each module has a Cat CG260-16 generatorset with an output up to 4.3MWel per unit,which can be deployed in all natural gas andbiogas applications. The gensets are designed

for the highest electrical andthermal efficiency, low

operating and service costs,as well as high reliability andavailability. More than 580power generators withnearly 2,170,000kWelhave already beeninstalled in variousapplications.

Each Cat ModularPower Plant can beexpanded step-by-step to

include up to six modularunits, delivering a rated output of

up to 25.8MWel. The device offersdecentralized and mobile power

generation with an overall efficiency of over86 per cent in natural gas operation.

In addition, the modular plant can be easilydisassembled, enjoys advantages of creditfinancing due to a mobile system

The Cat generator set has high availability,with extended maintenance intervals andmajor overhauls at 80,000 hours.

The power plant is ideal for eco-friendlypower generation and is economical too. �

Plant Power

46

electricity on the go Cat’s latest power plant is economical, eco-friendly and can beassembled onsite despite limited access to infrastructure, makingit an ideal fit in sub-Saharan Africa

The modular plant by Cat iseco-friendly and economical

African review of Business and Technology - Dec 2014/Jan 15 www.africanreview.com


Africa is being touted as the next frontier that will supply naturaland renewable resources to the global energy market, butmany countries within sub-Saharan Africa are either struggling

to provide access to energy and electricity for their citizens or can’tkeep up with demand, resulting in rolling blackouts becoming acommon part of people’s daily lives. Within the African energy sectorthere are a number of key issues that are preventing the continentfrom living up to its potential as a reliable contributor to the globalenergy balance sheet and more importantly, stemming regionaleconomic development and social well-being.

Power to the peopleThe first of these key issues is a low level of access to energy forinhabitants. According to The World Bank, less than one in four people(24 per cent) in sub-Saharan Africa have access to electricity,compared to 40 per cent of the population within other low incomecountries.

Governments and utility providers in the region can adopt variousstrategies to help alleviate the continent’s power poverty problem.These include the need for safe, portable solar chargers that cancharge cellphones and the like as well as fluorescent bulbs (CFLs) thatdramatically slash power demand.

Managing power demand wellAnother factor is poor reliability when it comes to the provision ofpower to citizens and businesses. South Africans are very familiar withrolling blackouts as a consequence of ageing infrastructure thatbreaks down at inconvenient times or the need to optimise assets tomeet the increasing demand for power, especially during winter.

Unfortunately, the rest of Africa are not strangers to this scenario, asAfrican manufacturing enterprises are plagued by power outages by awhopping 56 days annually on average, according to The World Bank.This causes African businesses to lose six per cent of sales revenues inthe informal sector alone and up to 20 per cent within areas in whichback-up power solutions are limited or non-existent.

Modern ICT tools can help energy providers with outagemonitoring and prevention, demand response, asset performance,analyse consumption patterns and load forecasting. There aresoftware packages delivering a single, real-time view of utilitycompanies’ operations to boost plant as well as grid efficiency.

African power pricingThe final key issue is the high cost of energy within Africa. Accordingto The World Bank power tariffs have dropped in most emergingeconomies to US$0.04-0.08 per kilowatt-hour, whereas the SSAaverage is US$0.13 per kilowatt-hour. Utility providers can cut costsand tap revenue by upping the price of power. However, big data canbe used by organisations to generate business opportunities for themto exploit.

By using data analytics and other solutions, firms can coverimportant areas as diverse as balancing profits, monitoring

sustainability and safety of supply by diagnosing and even predictingissues before they happen. This leads to increased asset effectiveness,improved prevention and handling of unplanned downtime in real-time, better daily forecasting and even the ability to predict demand.For example the Plant and Grid Operations solutions from SAP enableutility providers to create a safe, reliable, profitable energyinfrastructure, and monitoring of plant as well as grid performance.

Various deficiencies and limitations in the African power sector arenot just inconvenient for companies and citizens, but actually threatenthe continent’s long term economic growth prospects andcompetitiveness as a region within the global economy.

The cost to the economy of load-shedding is equivalent to 2.1% ofGDP on average according to The World Bank. This means that the useof technology to manage power better not only makes life moreconvenient for people and businesses, but enables economic growthfor the continent as well. �

Ashley Boag, head of energy and natural resource industries at SAP Africa

PowerTechnology

47African review of Business and Technology - Dec 2014/Jan 15

Prime Rated 2000KVA Perkins

PERKINS 4016-61TRG3 coupled to LEROY SOMER LL9124L

£140,000.00 EX WORKSAvailable Immediately, ex-works UK

Many more machines both new and used in stock

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Power tech potentialsUsing ICT to manage energy resources smarter, to manage challenges inAfrican power provision



Anew initiative has enableddecongestion at the timber yard in thePort of Douala, in Cameroon’s capital

city. Through much of 2013 and 2014,congestion at the port has paralysed certaincritical operations, impacting negatively onthe national economy of Cameroon, and alsothe economies of nations served by the port.

The Lumberyards Operating Company ofCameroon (Société d'exploitation des parcs àbois du Cameroun, SEPBC), contacted SMTCameroun (SMT) in order to acquire newhandling equipment to help decongest thewood yard at the port.

SEPBC is the concessionaire of the timberyard at the port. Over the three months fromAugust to October 2014, 246,196m3 of logsand 82,550m3 of sawn wood were delivered.In October 2014 alone, it cleared 122,562m3of wood (91,196 m3 of logs and 31,366m3sawn timber). These performances wererecorded while the company took delivery ofnew handling equipment, to strengthen itsoperational capabilities. The portperformance was enhanced by delivery of thenew handling equipment, to strengthenSEPBC’s operational capabilities.

Machines for material handlingSEPBC acquired two new Volvo L220G loadersand a Speed Appro barge. Another threeL220G loaders, coming from Bolloré, arebeing delivered at the timber yard, which willmake a total of five Volvo L220G loadersworking there.

The L220G loaders can handle loads of upto 12 tonnes. They are used for specialistapplications such as loading dock balls, andsorting and retrieval of packages on site.They optimise handling operations withsafety and speed.

And the Speed Appro barge - a flat-bottomed boat, without an engine - is usedgenerally in convoys on rivers and large-gauge canals. It can carry up to 400 tonnes ofcargo and enables log delivery operations.

Aside from the immediate improvementsto performance, in clearing the wood andfollowing decongestion of the timber yard,SEPBC’s investment, which amounted to 382mnCFA francs (US$718,000), will significantlyboost activity in the timber terminal.

Investing in improvementIn Cameroon, Bolloré Africa Logistics operatesboth the port concession (DoualaInternational Terminal) and rail concession(Camrail). It is a major shareholder in SEPBCsupporting SEPBC’s annual investments toimprove the quality of its services. The fundsploughed in to port operations helps toincrease rates of unloading (trucks and cars)and load (crane and ramp) on the terminal, insubstantial terms. A prominent example ofsuch investment by SEPBC is the acquisitiontowards the end of 2014 in a quay crane grid,at a cost of over two billion CFA francs.

Eric Gerbet, CEO SEPBC, said, "Theequipment purchased by SEPBC are thematerialisation of a desire to continue toprovide our customers with quality service.We will stay the course with currentperformance. And I must also say that thedialogue that has prevailed between theplayers in the timber industry and SEPBCfacing congestion, allowed us to bringtogether and unite our efforts to improve theperformance of our timber terminal. Today

we reach the peak load of approximately4,700 m3 per day. We aim to reach the Capeof 6.000m3 wood removed daily."

Philemon Alfred Mendo, Deputy DirectorGeneral SEPBC, added, "Today we celebratethe success of an exemplary collaborationwith the Directorate General of the Port ofDouala. When we arrived we took themeasure of the problems created by themassive influx of wood from Central Africa,Congo and even our country, Cameroon. Withinvestments and mobilisation of the entirestaff and management of Bolloré AfricaLogistics, we were able to reverse the trendand it is clear that we will maintain thesystems put in place to continue toparticipate in the massive modernisation ofthe port of Douala."

Finally, Jacques Dupanloup, of the Group ofWood Industry of Cameroon, affirmed that hewas optimistic about a return to normalperformance within few months on the backof the investment by SEPBC in the Volvoloaders and the Speed Appro barge, andstressed the continuing benefit of investmentto working relations at the port. He sid, “Wemeet regularly with SEPBC officials to make apoint about changing things. We hope that itcontinues to provide the necessary fluidity toa real lumberyard bottlenecking ... But we areoptimistic in view of the efforts made inrecent times.” �

CameroonCONSTRUCTION

48

Decongestion at thePort of DoualaSEPBC uses a Volvo loader to clear the timber yard at Cameroon’s principalharbour, alleviating stress on a critical area of the nation’s economy

The Volvo L220G, at work in thetimber yard in the Port of Douala


S11 ATR Dec 2014_Jan 15 - Conctruction 01_Layout 1 19/12/2014 09:14

CONSTRUCTIONEquipment


An updated attachment bracket fromVolvo Construction Equipment turns

your wheel loader into a real all-rounder,increasing your versatility and ensuring youalways get the most out of your machine.

To ensure maximum productivity, it isimportant to be prepared for any job. Withmany jobsites requiring more than oneoperation – but not more than one machine– Volvo Construction Equipment providesyou with a tool that allows you to adapt yourwheel loader to a number of different jobs,giving you the versatility needed to increaseyour profitability.

At the heart of the updated design is atradition of quality and expertise. In 1954,Volvo CE invented the world’s first wheelloader attachment bracket, and throughconstant innovation and improvement thecompany is still the market leader today. Thispioneering design enables a safe, quickconnection to a variety of attachments,

providing the flexibility to perform a widerrange of tasks.

When used together with Volvoattachments, the attachment bracket has aminimal impact on machine capacity. Toensure the highest levels of precision andcontrollability, the operator has excellentvisibility of the attachment from the cab at alltimes.

The attachment bracket meets allinternational safety standards, including theupdated EN474-1 and the upcoming ISO13031.

A versatile additionThe attachment bracket increases theversatility of your wheel loader to the higheststandards. The hydraulically driven bracketallows the operator to switch easily andquickly between attachments, minimizingdowntime, and it is safely locked from theoperator seat by the press of a button.

To ensure excellent performance andprofitability, Volvo provides acomprehensive range of attachments thatare designed to work in harmony with Volvowheel loaders. Attachments include buckets,grapples, forks and material handling arms.Whatever the job – make sure your wheelloader is ready with the improved Volvoattachment bracket.

New attachment bracket aids wheel loader operators

“The future potential of the African region isexcellent,” said Craig Griffiths, extractionbusiness development manager at VolvoConstruction Equipment Sales Region EMEA.“The mineral resources in this region areextensive and infrastructure improvementsare essential. The same applies for theaggregate business.”

Construction aggregates are the mostmined materials in the world. They are widelyused in drainage applications, and as basematerial for foundations, roads, and railroads.Griffiths said. “Materials are required in highdemand within the region. Interestingly wesee that the way of working is beingmodernised which creates a demand forimproved safety features and machinereliability.

“Productivity is a high priority forcustomers - especially for companies thatrely on operators being in the machine forlong shifts. Safety, quality and reliability arealways identified as key selling points.”

Aggregates firms in Africa chooseequipment such as the Volvo EC220D crawlerexcavator to handle primary extraction andbulk muck shifting duties at quarry sites. Theperformance and reliability of machines suchas the EC210 is often, indeed, the primaryconsideration when companies are lookingto add excavators to fleets. Aggregates firmscan gain from significant fuel savings andtake advantage of weight and specification

advantages to find improvements in overallperformance. But, more than this, the keypiece of equipment to have on site is theVolvo A30F articulated hauler. With theirheavy duty frames and immense off roadperformance, Volvo’s F-Series articulatedhaulers are the ideal platform for a host ofapplications. Moreover, on the A30F model,hauling speeds are increased thanks to soft,progressive gas-hydraulic front suspension,which minimises vibrations to the operator,reducing fatigue and enhancing productivity.The A30F is fitted with fully hydraulic brakesand dry discs on all wheels. The A30F also

features a hydraulic retarder and VolvoEngine Brake (VEB). VEB comprises acompression brake and exhaust retarder.

“With the Volvo articulated haulerscustomers get a lower total cost ofownership, with long life, high availabilityand productivity,” Craig Griffiths observed.“The products can operate in tough terrainand are very well suited for transportingmaterials, on both short to medium haulingdistances. And to support the machines,Volvo CE has many available dealers acrossthe continent that can quickly assistcustomers.”

The Volvo A30F articulated truck is depended upontime and time again on jobsites around Africa

How Volvo equips operators for aggregates

The new attachment bracket helps Volvo wheelloaders switch tasks with ease


The 1.6mn square metre mixed-useWaterfall City is being called the mostambitious commercial development

undertaken in southern Africa to date. Close tothe Allandale off-ramp to the N1 highway inMidrand, Gauteng, Waterfall City will be theepitome of the eat-shop-work-play integratedliving environment that we are already seeingat internationally acclaimed commercial hubsacross the globe. At its centre is the Mall ofAfrica. Set to become the largest mall everbuilt in a single phase in South Africa, Mall ofAfrica is raising the bar for retail centres on theAfrican continent.

Earthworks for the Mall of Africa began inOctober 2012, with the mall’s openingscheduled for April 2016.

It is envisaged that the 130,000 m² retailmall’s distinctive design, which wasmeticulously planned by MDS Architects,prime location and envious retail mix will offer

a unique retail experience, making it adestination for both local and tourist visitors.

Aurecon was contracted by leading SouthAfrican property developer and investor,Atterbury Property Developers, to undertakeboth civil and structural engineering on thisiconic development, with a focus on optimiseddesign solutions through continuous valueengineering, working closely with the QuantitySurveying team, to ensure budgets areadhered to in support of the feasibility of theproject.

Proven investment potential “Several urban studies have proven that thereis an excellent business case for situating theMall of Africa within the Waterfall Citydevelopment. The mall will help the Cityrealise its financial potential,” said Aureconproject director, Nicol Labuschagne.

He adds that while involvement in such a

InfrastructureCONSTRUCTION

50

Working inWaterfall CityA 1.6mn square metre mixed-use development,regarded as the most projects undertaken insouthern Africa to date


The 1.6mn square metre mixed-use Waterfall City, the most ambitiouscommercial development undertaken in southern Africa to date


CONSTRUCTIONInfrastructure

51African Review of Business and Technology - Dec 2014/Jan 15

large-scale project has been exciting, projects of this scale and magnitudepresent a unique set of challenges to the project team.

Pre-empting material shortageThe recent strike in the metals and engineering sector, led by the NationalUnion of Metalworkers of South Africa (Numsa), saw over 200,000 Numsamembers embark on what was dubbed an ‘indefinite strike’ by the localmedia. This could potentially have derailed a number of majordeliverables on this project.

“In this instance, detailed design documentation had to be fast-trackedeven further to enable the contractor, WBHO/Group Five JV, to pre-orderrebar and steel formwork ahead of the strike. This mitigated many of thepotential delays as a result of the strike,” said Labuschagne.

Geotechnical challengesThe underlying geological profile of the 16.5 hectare footprint of the mallsite comprises soft to very hard rock granites with intrusions of diabase inplaces. Residual soils have developed from the weathering of the granitesand diabase bedrock with overlying transported hillwash of varyingdepths and an abundance of subsoil groundwater in places.

“Geotechnical challenges to be dealt with as a result included theupfront profiling of the granite bedrock to minimise the amount of hardrock excavations, the subsoil drainage design over such a large footprint,and the varying founding conditions encountered due to the variablenature of the site geology,” said Labuschagne. “This meant that no singlefounding solution could be used. Our project teams had to tailor thefounding solution for each column or wall in accordance with its specificsite condition, making use of either piling or conventional spread footingsor a combination of both.”

Time constraintsThe planned opening of the mall at the end of April 2016 has placed theprofessional team and the contractor under tremendous pressure with anumber of milestone deadlines to meet. This called for close cooperationand collaboration with the full professional team.

“For Aurecon, this meant ramping up our delivery capability byallocating additional resources to the project to ensure our constructiondocumentation is timeously produced, peer-reviewed, approved andissued to site. The fast-track nature of the construction programme saw ususing reinforced concrete flat and coffer slabs for the retail areas and post

tensioned flat slabs for most of the parkingdecks to speed up construction,” explainedLabuschagne.

The epitome of integrated livingIn terms of aesthetics, the parking areas atWaterfall City include valet parking as well asadditional parkades which, together with theentrances, will accentuate the urban planningframework and the unique identity of themall. The development is being designed tocreate a pedestrian-friendly environmentaround the perimeter, with focus beingplaced on immaculately landscaped areasand aesthetically pleasing walkways.

“The Mall of Africa is much more than aneconomic anchor of Waterfall City; it’s also avisual and social anchor with striking featuresand bespoke amenities. Aurecon applaudsthe developers for this bold, ambitiousproject and is proud to be involved,”Labuschagne said. �



In the latter half of November 2014, Luandain Angola and Nairobi in Kenya played hostto a delegation trip by representatives of

eight German companies from the cementplant engineering sector. Under the umbrellaof the VDMA Construction Equipment andBuilding Material Machinery Association, theyinvited local building material manufacturersto two symposia to get to know technicalsolutions “made in Germany” and to discusslocal features and individual requirements.

Delegation trip with eight companyrepresentatives“With our symposia, we hope to createopportunities for our customers,” said

CementCONSTRUCTION

52 African Review of Business and Technology - Dec 2014/Jan 15

Engineering prospectsin Angola and Kenya



delegation leader Bernhard Pagenkemper, head of sales at Haver &Boecker OHG, who went on to explain the aim of the delegates'commitment in sub-Saharan Africa. “When we take care of thingsand travel with stamina, good will and a smile, we have always beenwell-received. It is worth believing in Africa: every country offersopportunities for our companies to sell something.”

As well as Haver & Boecker, the delegation includedrepresentatives from Aumund, Claudius Peters, Hazemag & EPR,Gebr. Pfeiffer, Christian Pfeiffer, Toni Technik and Thyssen Krupp.

Angola and Kenya are developing wellAngola and Kenya are two economies that are enjoying gooddevelopment. Economic growth means an increase in cementconsumption. The construction material industries of both countrieshave a long way to go to catch up. Until 2013, cement was the most-imported product in Angola by some margin. Cement imports werebanned at the start of this year in order to kick-start domesticproduction. Experts estimate production in the country to be around5.5mn tons, while demand is 8.5mn tons per year. The governmentplans to increase capacity to 12mn tons by 2016, so that the surpluscan be exported to other countries in the region. The politicalsituation can be expected to remain stable until the next election in2017, and infrastructure and construction projects are beingfinanced with profits from the oil business. The sector also seessignificant potential in eastern African countries. In Kenya, forexample, cement consumption rose by 6.8 per cent in 2013compared to the previous year, putting it at 4.2mn tons. Here, too,various large-scale projects and increasing private need for buildingmaterials is pushing up demand.

Germans also want to provide training and establish serviceFor the German mechanical and plant engineering companies, this isfertile ground for business. However, as Pagenkemper said, “We wantto do more than just help the countries with deliveries; we want totrain the people in how to use the machines and to establish properservice.”

The Germans hope that this long-term commitment hasdistinguished them from the Chinese competition, which is ubiquitousin sub-Saharan Africa.

The symposium in Luanda was held on 18 November, and that inNairobi on 20 November 2014. The events were organised incooperation with local German Chambers of Commerce. �

CONSTRUCTIONCement



Cement is used in 65 to 75 per cent of allconstruction projects in Africa anddemand for the commodity is on the

rise in the sub-Saharan region. In Nigeria, thecement industry has grown by 95.6 per centsince 2005. In Kenya, cement consumptionper capita has increased 60 per cent over thepast five years.

The scale of this burgeoning industry willbe reflected again at the 2015 Totally ConcreteExpo, scheduled to be held 26-28 October inNairobi, Kenya, where cement andconstruction industry magnates will convene -as they did in May 2014 - for access togovernment stakeholders and investors whocan facilitate commercial opportunities inAfrica's high-growth markets. Previously,discussions have been held at Totally Concretewith personalities such as HE Vincent Karega,High Commissioner of the Embassy ofRwanda, Eng. Daniel Manduku, CEO of Kenya'sNational Construction Authority and RocksonDogbegah, vice president of Africa at theChartered Institute of Building (CIOB) inGhana - each of whom has providedinvaluable insights into doing constructionbusiness in their respective nationalmarketplaces.

Manufacturing cement to meet construction needsIn East Africa, demand for cement hasincreased competition in the marketplace.

Local producers such as ARM Cement havebeen building additional clinker plants, whileinternational companies such as SavannahCement, a consortium of Chinese and Kenyaninvestors, have been spearheadinginvestment initiatives in cementmanufacturing infrastructure to meet growingdemand fuelled by an upsurge in privatesector housing developments, foreign-fundedcommercial projects and mega infrastructureprojects ranging from ports to rail to roadsfinanced by government and donors.

In Southern Africa, African companies stilldominate the market. PPC is well-establishedwith cement plants in Zimbabwe, Botswana,Mozambique and ongoing efforts to extendits presence with facilities such as theUS$260mn cement factory in the DemocraticRepublic of the Congo. Dangote Cement isanother example of an establishedinternational player, with facilities in SouthAfrica and Zambia and ongoing engagementin Tanzania, the Republic of Congo, andGabon.

As local and international companies vie forbusiness in African cement markets, newplants have been built at a rapid rate. Africa'sincreasing demand for cement is attractingglobal attention, with international andmultinational players now investing millionsof dollars into projects in the sub-Saharanregion. Once more, Totally Concrete may beexpected to provide an outlet for construction

business development for new entrants intothe African marketplace and also to offerpractical insights into managing dailyoperations in the African context. At the lastevent, for example, Wouter Trollip,Consolidated General Minerals (CGM) projectmanager in Mozambique, highlighted therequirements and obstacles to building acement plant in Africa. Previously, also,Nedbank Group South Africa lead principal forinfrastructure Brett Botha educatedparticipants with proven exit strategies forhigh growth, high risk markets.

Incorporating both strategic and technicalelements, Totally Concrete has practical toolsand techniques for all professionals active inproducing cement or using concrete. In 2014stakeholders from over 40 countriesworldwide gained access to cutting edgetechnology - and more are expected at thenext event. Totally Concrete has beenendorsed by over 60 industry associations andsponsored by PPC, Lafarge, AfriSam, CCS,PMSA, Reimer, Nyeleti Consulting and WBHO.John Sheath, CEO of the Concrete Society ofSouthern Africa (CSSA), an endorsingassociation, has observed that TotallyConcrete "provides a distinctively Africanplatform in which the concrete andconstruction industries can converge for skillsdevelopment, access to cutting edge buildingand construction technologies and cross-border information sharing". �

CementCONSTRUCTION

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Cement as anAfrican commodityThe demand for and value of cement is rising dramatically to serve thegrowth in construction industry across the continent

The current African building boom isboosting the continent’s cement industry



Afirst-of-its-kind moisture measurement system that combinesBluetooth, GSM, Windows, smart phone and microwavetechnology is now available through Pan Mixers South Africa

(PMSA) - the largest supplier of a complete range of quality concreteequipment ,machinery and technology in Africa.

The FL-MOBI-MIC Inspector, developed by German-based moisturecontrol expert Ludwig Moisture Control, utilises a combination ofadvanced technology that secures the technical status of readymix

concrete in transit, from the supplier's batch plant, to handover ordelivery at the construction site.

PMSA sales and marketing manager Quintin Booysen notes that thesystem consists of a microwave moisture measuring probe and aconsistency measuring bar with transmission unit mounted on thetruck’s rotating drum, which in turn communicates via Bluetooth to areceiver module in the cab.

“This signal is then forwarded on the GSM network via a Windows-based smartphone or compatible device, therebyenabling the data to be available in almost anylocation. What’s more, an industrial standard forthe Bluetooth connection ensures reliable datatransfer at long range even under challengingconditions, which is particularly important in theharsh African environment,” he said.

In addition to the transmission of productmoisture data, the FL-MOBI-MIC Inspectorsystem also sends other crucial processparameters for real-time monitoring. Theseinclude; product temperature, consistency,slump, residual water, filling level, rotatingdirection and speed of the mixing drum.Booysen reveals that this ultimately puts thesupplier in full control and able to monitor theconcrete whilst in transit, for the first time.

“Throughout the entire transit phase, thesupplier is aware of any change introduced to thereadymix product. This eliminates various risks –such as water being added onsite to speed up theload discharge – to fully guarantee the qualitycontrol of all readymix deliveries,” he said. �

CementConsTRuCTion

56 African Review of Business and Technology - Dec 2014/Jan 15

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Manufacturer of galvanised and plastic coated wire, nails Cavatorta’sReplax T Sport is a plastic-coated chainlink with diamond shapedmesh made using the simple torsion method.

The zinc-plated steel wires of the mesh have an enhanced diametreand are coated by PVC through the sintering process ‘Galvaplax’developed by Cavatorta.

This helps Replax T Sport to be strong and durable that isparticularly suitable for constructing fencing that requires specialsafety standards and high shock resistance (UNI 10121-2), such asstadiums and any type of sport facility.

In normal conditions, Replax T Sport is guaranteed againstcorrosion for over 10 years.

The features of Replax T Sport include:� Shock resistance without deformation due to the diametre of the

wires, the sizes of the mesh and the connection mode among thewires that make up the mesh

� Optimum front and side visibility of the pitch even from a veryclose position to the fence

� Effective and durable corrosion resistance thanks to the special PVCcoating of the wires developed by Cavatorta

Replax T Sport is sold in compact rolls of 10 metres with protectivecovers on the ends, in bundles of nine rolls each.

57

Profile

Replax T Sport are particularly suitable for perimeter boundaries inside football stadiums.

AfriSam has commissioned two new readymix plants atPietermaritzburg and Umlaas Road in South African province ofKwaZulu-Natal (KZN).

“The plants were commissioned in late 2013 and are in response toincreased demand in the Durban/Pietermaritzburg corridordevelopment as well as to give AfriSam a readymix presence in areas

where we already had quarries established,” Pieter Uys, sales managerat AfriSam in Durban, said.

“As we use AfriSam cement in readymix production in KZN, it alsogave us an opportunity to pull through additional volumes of cement,”Uys added. The construction materials group currently operates sevenreadymix plants and six quarries in Durban, the Natal Midlands andNorthern KZN. It also operates a fleet of 50 readymix trucks and twosophisticated boom pump vehicles.

“KZN is a strategically important market for a construction materialscompany, hence the plan to expand the footprint of AfriSam in theprovince.”

AfriSam focuses on a range of market segments in KZN, frombuilding residential and non-residential to civil, retail, national andlocal government, municipalities, asphalters, readymix, concreteproduct manufacturers and cash customers.

“Although we had a presence in terms of cement at retailers formany years, we started marketing cement to other market segmentsthrough our KZN sales team from 2012,” the sales manager explained.

Another major opportunity for AfriSam to bolster its presence in theprovince is the 20-year, multi-billion rand Cornubia mixed-usedevelopment in Umhlanga, the eThekwini Municipality’s first CabinetLekgotla priority project. “Additional provincial flagship projects atpresent include development plans at Richards Bay Harbour, theDurban to Pietermaritzburg Corridor Development and mass housingthroughout the province.”

Looking at particular initiatives launched by AfriSam in KZN,Uys said that it offered various services to its customers,“including mix optimisation using our high performing cement aswell as providing on-site training on aggregate and concretesampling and concrete cube making procedures.” The KZNProvincial Development Plan aims to make the province the‘Gateway to Africa and the world’ by 2030.

AfriSam operates a fleet of 50readymix trucks and twosophisticated boom pumpvehicles in KZN


Cavatorta’s mesh protects against shocks

AfriSam sanctions two readymix plants in South Africa



Meet David Whiston, JCB's man onthe ground in Africa, and anambassador for best practice at

every level or stage of the constructionindustry. Over three decades' employmentat JCB, David has developed personalexperience or knowledge of constructionequipment at every level. African Reviewinterviewed Mr Whiston recently, to gaininsights into the construction industry fromthe perspective of this key equipmentmanufacturer.

The JCB DNA, that consists of aninnovative spirit and a passion for quality,runs through David Whiston. He has workedon the factory floor, within service teams, insales and distribution, and on constructionsites. He has worked within teams and hasled the way. And he has worked acrosscontinents, developing JCB's business inEurope, the Americas and most recently in

Africa. The first thing he told African Reviewis that, consistently, he has been guided bythe company's pursuit of quality andinnovation to benefit its customers. He said,"The reason why JCB is a success is becausewe listen to what customers say, and we doeverything we can to put that feedback intoour plans and our products."

Experience and applicationMr Whiston began his career at JCB as aresearch apprentice - learning theconsiderations affecting design,development and manufacture ofconstruction equipment. He became, then, ademonstrator, gaining advanced knowledgeof both JCB products and of competitorproducts, as they are used around the globe.Eventually, he applied his knowledge ofJCB's product manufacture and applicationto JCB's regional and national sales forces,

helping build the company's presence inSpain, Brazil, Mexico and Portugal beforereaching Africa. Today, Mr Whiston is JCB'sregional sales manager for East Africa. Hedirects and oversees the day-to-day businessof dealers throughout the region - incountries as diverse as Kenya and Sudan.

He is widely regarded within the companyin the industry as a pioneer. He has openedup markets and generated salesopportunities for sales teams. The key to hissuccess rests not only with hiscomprehensive experience, but also how heuses that experience to ensure operators ofthe company's equipment benefit fully fromuse. He knows that customers need tounderstand their product and any possibleapplications. He knows that operators needstaff to be trained. He knows that productknowledge, business acumen andknowledge-sharing are essentialcomponents in successful relationshipmanagement.

And the human touch goes a long way. Ashe puts it, to do his job to his satisfaction, toserve his markets well, he must engage withoperators where they work, and speak in alanguage they understand. Not only doesthat mean using vocabulary familiar tooperators, when discussing machine use. ToDavid Whiston, it also means conversing inSpanish, Portuguese or French; he haslearned each language specifically to bringhim closer to his customers. He said, "Youhave to be personal in this business. Peoplethink that earth-moving equipment ismassive industry, a global market, but it's not.Realistically, when you get into each country,it is a very small, close-knit community.Everybody knows everybody else."

Of service to African enterpriseDavid Whiston stresses that success lies inselling what customers need rather thanwhat they want. He has seen many

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A pioneer of productand applicationHow East African operators are benefitting from one man's experience inequipment manufacturing and application

The JCB 1CXT, a tracked backhoewith ‘go anywhere’ performance



The 1CXT gives operators the option of running on tracks for reduced ground damage, superlative climbing,exceptional pushing power, unparallelled stability and improved soft ground performance

ConsTRuCTionProfile


examples of companies being sold thewrong piece of equipment for a particularoperation or application.

He said, "If you sell a customer what hewants, then you are liable to wasting hismoney and his time. I have seen so manypeople around Africa who sell on the basisof opportunity, and solely on product, andnot on the needs of the operator - and that'swrong. It slows business. It breaks down theconfidence the customer has in the market.That's why, at JCB, we approach customersby building confidence in our product butalso by building confidence in JCB as apartner. When I speak to a customer inAfrica, I'll tell them that I don't want them tobe my customer, but I do want us topartners in success. Their success is oursuccess."

In many parts of Africa, longevity is key togood business relations. In construction,after-sales service often matters even morethan the original product sale. Speaking toAfrican Review, David Whiston wasemphatic on this point. He said, "You haveto remember that the most important thingabout earthmoving equipment whereveryou are in the world is not the salesman. Hewill sell the first machine. However, themechanic will sell every machineafterwards. Your after-sales service, and yourresponse to problems, are crucial."

He learned, doing business in Europe andin Latin America, the necessity of building inservice to the sale. He brings to Africa an

understanding of the importance of makingsure that when a customer is buyingequipment, he can guarantee that thetransport links are in place, the teams areready and able to serve the customer, byaddressing any issues with any equipmentsold, in any application. The key here is tounderstand the challenges the customerfaces. As he put it, a customer might have a45-tonne vehicle in Mombasa, which heneeds to bring to work on a site half-wayalong the road to Nairobi. So, as thatcompany's partner, it is necessary to knowwhat it takes to move that machine to sitefrom port - and what it takes to ensureservice, if required, when it gets there.

In this sense, he empowers JCB’s dealersin East Africa to extend full local support tocustomers. The relationship betweencustomers and dealers is critical to theongoing success of JCB's partnershipsacross the continent, as around the world.Mr Whiston said, "I work with the dealers,because the dealers are a reflection of JCB.Customers will not be speaking to me. Theyare speaking to our dealer in Nairobi, or ourdealer in Khartoum. The dealers feed backto me the issues they have encountered, thesupport they have provided, what they haveseen work and not work on site - and weintroduce that into JCB's DNA, feeding thoseexperiences in to product development, sothat we are continuously innovating withour products and ensuring comprehensiveservice for our partners.” �


EmeraldsMining

60 African Review of Business and Technology - Dec 2014/Jan 15 www.africanreview.com

Emeralds are thegreenest investmentKagem Mining Limited expands the production of its haulage fleet withCat 730C articulated trucks, unlocking the value of its opencast operations

The world’s largest producer of ethicallysourced coloured gemstones, GemfieldsPlc has captured the attention of

investors and jewellery manufacturersworldwide with its innovative marketingstrategies and with the introduction of areference grading system for emeraldsaccording to colour, size and clarity. For thefirst time in the industry, an auction platformwith graded parcels of emeralds, coupled to ahealthy demand, has led to Gemfieldsachieving record auction results.

Primary production toolsEmeralds are being sourced from Gemfields’Kagem mine in Zambia, an operationcovering a licence area of approximately43km², situated some 65km south fromKitwe, the main centre in the country’sCopperbelt Province.

A variety of the mineral beryl, emeraldsderive their distinctive colour chiefly fromthe trace element, chromium. Consideredone of the rarest gemstones, theirmineralisation can only occur when twodifferent rock types with contrastingcharacteristics come into contact with oneanother under unique conditions. ForZambian emeralds, it was the specificcombination of the 1.5bn-year-old highgrade metamorphic rock named the TalcMagnetite Schist (TMS) and the younger500mn year old intruding pegmatite. Thecontact zone, known as the reaction zone,is where the emeralds have crystallised.

Chama is the main pit and revenueearner at Kagem Mining Limited. However,Kagem runs two other opencast operations- the Fibolele pit, established almost threeyears ago, and Libwente, which is the most

recent development to come on streamand is currently at the bulk sampling stage.Across all operations, it deploys a dedicatedCat earthmoving fleet to meet itsproduction and waste strippingprogrammes. Recent acquisitions by thecompany include a fleet of 28 tonnepayload Cat 730C articulated trucks,supplied and supported by BarloworldEquipment Zambia.

The Cat 730Cs are used for production,with Kagem’s larger 39.5 tonne payload Cat740Bs deployed for waste haulage.Production mining takes place duringdaylight hours only, whilst waste strippingis ongoing 24/7, with Cat 374D L hydraulicexcavators deployed as the primary loadingtool. A portion of the load and haul wastestripping programme is out-sourced to acontractor.

Latest generation Cat 730C articulated trucks beingloaded by a Cat 336D L hydraulic excavator at Libwente,Kagem’s newest pit, which has a targeted final depth of60-80m according to the geological survey

S13 ATR Dec 2014_Jan 15 - Mining_Layout 1 19/12/2014 09:17

MiningEmeralds

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Mining methods for pit viabilityCombined, the scale of the operation acrossthe three pits is large. In an average month,some 900,000 tonnes of waste rock will bemoved, of which between 7,000 and 8,000tonnes will be sent to the washing plant forpotential emerald recoveries. There are highproduction costs to be sustained in thediscovery and processing of these raregemstones.

“For every one gram of beryl we have tomove one tonne of rock. And of that onegram of beryl only 10 per cent constitutes ofour premium grade,” explained RobertGessner, senior manager: geology for KagemMining Limited. “The key to our planning inthe various pits is that we have emeraldbearing contact areas, or reaction zones,available at all times, which requires precisepre-production planning.”

As reported in Gemfields’ financial results forthe six months ending 31st December 2013,the average grade at Kagem was 267 caratsper tonne, with total production for the periodof 10.4mn carats of emeralds and beryl.

At Chama, a strip and fill miningmethodology is used - stripping the high walland filling the footwall. According to Kagem,this practice entails optimum efficiencies forsubsequent face advancements and newbench layouts. Both being waste materials,

TMS and pegmatite are removed by blastingand mechanised mining. All the top soil istransported via articulated trucks to dumpson the mine boundary and are brought backduring the final rehabilitation phase. Thefootprint of the mine and dump area isapproximately 4km².

The pit depth at Chama is now down toaround 110m from surface, with a west toeast strike length of approximately 900m.

Ongoing workIn the meantime, as work continues fromsurface, an underground project is alsoongoing at Chama. This pilot programme thathas been running for more than five yearswith the intention of determining the bestmining approach and future viability oftapping into emerald bearing contact areasthat extend down to at least another 2kmfrom the current depth.

So far, some 950m has been tunnelled andsupported and around 16,000 tonnes of rockremoved.

“Kagem is the first company in the Zambianemerald sector to mine underground on thisscale, and the results so far are veryencouraging,” Gessner said.

Work at Libwente, Kagem’s newest pit, isalso looking promising, with a targeted finaldepth of between 60 and 80 metresenvisaged according to the geological

survey. The presence of TMS with pegmatiteat shallower depths will also result in lowerstripping volumes, passing on operationalsavings, and here Kagem’s new Cat 730Ctrucks are helping to drive down the costper tonne.

Srinivasan Ramachandran, head ofengineering at Kagem, is responsible formanaging the overall maintenance of themine’s 160-strong plant, light and HEMMequipment fleet, of which around 60 are Catearthmoving units. He said, "The performanceoutput to date on our new Cat 730C truckshas been excellent, and they are an optimalloading match with our recently acquired Cat336D L hydraulic excavators.”

Caterpillar’s new Cat 730C articulated truckfeatures a new, more powerful engine, anadvanced transmission, plus automatictraction control. The truck’s 274kW Cat C13ACERT engine delivers nearly 16 percentmore gross power, and a 30 per cent grosstorque improvement when compared to theprevious generation model.

On the C-Series, the Cat 6F/1R power-shifttransmission, which electronically modulatesclutch engagement pressures for smooth,positive shifts, now also incorporatesCaterpillar Advanced Productivity ElectronicControl Strategy (APECS). The APECS systemimproves acceleration, maintains torqueconverter lock-up (and ground speed) duringcritical shifts, increases rimpull, providesautomatic speed-holding, modifies shiftpoints to match operating conditions (forincreased fuel economy), and automaticallyreduces retarding forces on lesser grades inlower gears.

The overall net benefits are optimumproductivity and truck control, which isproving beneficial as the machines move inand out of the various in-pit operations.

Going forward, Kagem has a five year mineplan in place, with a major focus on exploration within its licence area. �


The pit depth at Chama is now down to around 110m from surface, with a west to east strikelength of approximately 900m


Anew-and-improved basic safetytraining programme ensures thatemployees along all levels of an

organisation are fully aware of, andunderstand, the importance of adhering tointernationally recognised OHSAS 18001standards.

KBC Health and Safety continues torevolutionise the concept of workplace safety,through the development of a first-of-its-kindvideo-based safety training that interactivelyexplains basic health and safety principles inthe workplace, while covering OHSAS 18001standards.

Visual cuesKBC innovation manager Natalie Pitoutrevealed that a video-led presentation ismore inviting and easily understandable fortrainees, when compared to the standardslide-based presentation. “The video is morevisually-appealing, and provides a morehands-on approach to safety training. What’smore, it can be paused at any time toencourage regular interaction andparticipation,” she explained.

In order to make the training as engagingand user-friendly as possible, the fully-narrated training video focuses on a day in thelife of the protagonist ‘Joe’, and KBC trainersuse a spaza shop analogy to introduce the 12OHSAS 18001 standards to the learners inbasic language, as many people in this targetaudience do not have matric.

“At the end of the one-day course, learnerswill be able to describe OHSAS 18001standards, explain employer and employeeduties with regard to occupational safety andhealth in the workplace, and explain thegeneral safety rules in the workplace. What’smore, they will understand the use andapplication of personal protectiveequipment in the workplace, the importanceof good housekeeping, as well as theapplication of emergency procedures in theworkplace,” said Pitout.

A model for practiceThe KBC basic safety training course alsofeatures an organisational model forcontinuous improvement, which is made up of

four sections — plan, do, check and act. Pitoutadded, “The 12 OHSAS 18001 standards areintroduced to the learners, and explained inmore detail by demonstrating how they all fitin to the running of the spaza shop.”

Plan: As part of the planning section, acompany must know what it wants toachieve, who will be responsible, how willgoals will be achieved, and how success willbe measured. The goal is to achieve no harm.The company must also decide how tomeasure performance, and how to handle allemergencies. Finally, a plan for changes in theworkplace and law must also be considered.

Do: A company must subsequently identifyits risk profile and assess these risks, beforeidentifying what could cause harm in theworkplace, who it could harm, and what to doto manage the risk. The company should aimto involve all employees in communication,so that everyone is clear on what is requiredof them. This leads to the development ofpositive attitudes and behaviours.

Check: It is essential that performance isconstantly measured, by making sure thatplans have been adhered to. The companyshould also measure how well the risks arebeing controlled and if objectives are beingachieved. Any incidents or near misses shouldbe thoroughly investigated.

Act: In the final part of the cycle, thecompany must review its performance,learn from past mistakes and take thecorrect safety actions. Plans, policydocuments and risk assessments shouldbe updated. By embracing change, thecycle will continue to ensure continuousimprovement.

Responding to demandSince launching this basic safety trainingcourse in May 2014, KBC has received anoverwhelmingly positive response fromcustomers.

Pitout said, “Mining companies form thebulk of our client base, and they havedisplayed their satisfaction in the new layoutof the training programme, which serves as avalue-added offering in a constantlychanging environment.”

Confident of future success, the managersaid that given the success of the programmein the mining sector, that there is a strongpossibility for growth in this market. “Theconstruction industry also holds enormouspotential, and we are placing a strong focuson penetrating this burgeoning marketthrough the development of tailor-madesolutions to suit each specific client,” shenoted. �

Health and SafetyMining

62

Visual cues for workplaceKBC Health and Safety demonstrates essential safety practices, if taught tominers in an engaging and interactive manner, can be more effective

Since launching this basic safety training course in May 2014, KBC has received an overwhelmingly positive responsefrom customers



Asmart and accurate work breakdownstructure, budget and schedule can cutfive to 10 per cent off a project’s final

installed cost because key performancecriteria can be simply and effectively trackedand controlled, according to John Dixon,project manager at SNC-Lavalin.

The engineering and constructioncompany offers experience and know-how tohelp mining clients in Africa remaincompetitive by implementing latest projectmanagement and control methodologies andsoftware.

SNC-Lavalin has already carried out variousstudies and executed projects in the iron ore,copper, gold and rare earth market sectors.Dixon said that one of the challenges facingprojects in Africa that some of the players arenot really convinced of the advantages of theproject management discipline, and itscriticality in effectively managing risk andopportunity on their projects,.

He, however, warned against themisperception ‘that too much money is beingspent on project management and controls’.

“I think that is false economy. Certainlyeveryone is moving towards ‘leaner andmeaner’. However, what you can save bycutting back on project management andcontrols is minuscule in the context of theentire project,” the executive noted.

A major challenge looming over iseducating operational management withinthe mining industry as to the benefits ofproject management and controls. “There is agreat deal of work to be done in upfrontplanning and structuring of a project so as torender it eminently controllable. Operationalfocus is often more immediate and situationdriven, whereas project focus tends towardsconsideration of a wider set of success criteriain a somewhat more measured andstructured approach.”

He said that more was being expected a lotfaster, and the engineering project houseshave to continually streamline their approach

to execution within the constraints ofestablished workflow processes anddiscipline.

“Leveraging low-cost procurement andhigh-value engineering centres to supportoptimal and cost-effective delivery of projectsare two of SNC-Lavalin’s strengths in thatregard,” Dixon added.

Another area of concern is the level ofappreciation for multi-disciplined peerreviews, engineering verification andprofessional sign-off on designs prior toimplementation and after construction.

“Within SNC-Lavalin, project managershave a corporate responsibility to formallyattest on a regular basis that this is actuallytaking place within their projects and raisealerts and propose remedial action whendeviations occur. Often the appreciation forsuch discipline at the coal face is low, beingperceived as restrictive or evencounterproductive. It is one of the importantroles of the project manager to ensure thatthe key players on the client’s team areappropriately educated in this regard.”

He pointed out that supply chain

management and logistics in Africa do notpresent insurmountable problems. “It needsto be dealt with early on in the study phaseby tailoring design to avoid having totransport large complex items that can beeasily damaged. We look at engineering forsimplicity of construction, which often meansmodularisation and containerisation. Boltingcomponents together, rather than on-sitewelding, can materially reduce constructiontime and cost.”

Looking to the future, Dixon is of theopinion that the mining industry in Africacontinues to offer opportunities. “I thinkthat while this year we will still have totough it out as an industry, particularly inSouth Africa, the fundamentals of miningprojects in Africa, in general, remainlucrative and we have pretty muchgraduated from the school of managingthe risks in the challenging environmentsin which they are developing. We have ahigh degree of flexibility, creativity andtenacity that we can bring to bear in thedelivery of effective project managementsolutions in Africa.” �

ManagementMining

64

‘Work smart’ for efficientproject outputManagement discipline, including software, will help a long way for execution of projects in Africa, SnC-Lavalin opines

Despite shortcomings, the fundamentals of mining projects in Africa, in general, remain lucrative




MiningMine Site Services & Equipment

BSPH Kundalila specialises in materialshandling, crushing and screening,loading and hauling, rehabilitation

and other turnkey solutions. It has over 320items of earthmoving equipment in its fleetand is the largest owner of Cat 950H frontend loaders in Africa, Asia, Australia andSouth America.

The firm is now looking to work ‘smart’ “We want to do quite a lot more mineralprocessing and try and get into more ‘smart’work. Turnkey solutions provide a uniqueopportunity in this regard as it is less volumework but with higher margins,” said JeremyPetter-Bowyer, MD of SPH Kundalila.

Established in 1969 as Saldanha PlantHire for general plant hire and explorationdrilling and later to mine limestone forAnglo Alpha near Saldanha in the WesternCape, SPH Kundalila has continued to

expand its service offering and geographicbase in the region.

The firm operates various crushers inSouth Africa, ranging from jaw to cone andVertical Shaft Impact (VSI) crushers. Forexample, it crushes up to 350,000 tonnes ofore a month for Pilanesburg Platinum bymeans of a 57 t Metso L120 crusher and a106 tonne Sandvik Crawlmaster with acapacity of 750 tonne per hour. In addition,SPH Kundalila has also partnered with sistercompanies and dedicated suppliers todesign, construct and operate fixedcrushing and screening plants.

Another focus area for the company isloading, hauling and materials handling.

According to Petter-Bowyer, the companyprioritises and ensures the safety of theirclients’ reefs by fitting tracking devices to themajority of the vehicles so they can bemonitored constantly from a centralised

control room. “At West Driefontein Gold Minein Carletonville, we have specifically modified aCat 980H wheel loader with a control mastertele-remote unit. This remote loader is able toretrieve valuable raw material from adangerous site not accessible to humans dueto a risk of sinkholes. This is believed to be thefirst remotely controlled wheel loader ever tobe deployed on a surface application in Africa.”

Another value-added service offered issite rehabilitation, which is currently in highdemand in the South African miningindustry. “We recognise the ever increasingimportance of minimising the impact on allaspects of the environment and arecommitted to complying with the latestlegislation in this regard. Our achievementsinclude the successful rehabilitation of partof GoldFields’ South Deep Gold Mine aswell as some of Driefontein’s rock dumps,”the MD noted. �

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66

SOLUTIONS

Materials Handling

Ranging from 10t up to 45t capacity, Magni categorises its HTHrange in four main families:

The HTH 10.10 and HTH 16.10 are the most compact models ofthe range,. Equipped with Mercedes-Benz engines with 156hp,the have hydrostatic Bosh Rexroth transmission (two speedsforward - reverse) four wheel drive, and four wheel steering. Thesemachines are very suitable for the heavy industry, recycling andwaste disposal, since they can equip a multitude of attachmentswhich makes them very polyvalent. They are also very good forrental fleet since they match a very good compromise betweenprice and performances.

The HTH 23.11 and HTH 27.11 models are also equipped withMercedes-Benz engines, with 204hp and a Bosch Rexrothhydrostatic transmission, four wheel drive and four wheel steering.The best applications for these models are heavy industry, oil andgas, and mining. Thanks to the wide range of attachments, theycan handle and place pipelines for crude petroleum with specialclamp, pull and place segments for conveyor belts systems with apin hook or make maintenance on big mining machines withwheel and cylinder clamps.

The HTH30.12 and HTH 35.12 are the best selling models inmining. The two biggest buyers are BHP Billiton and 1stQuantum Minerals. These models have a special Bosch Rexrothtransmission, which is hydrostatic with a fully automatic shiftinggear box (developed by DANA). The thermic engine is a Mercedes-

Benx with 320hp from six-cylinders. The hydraulic circuit is load-sensing and 350 bar working pressure to ensure the best possiblelifting performances.

The HTH 45.14 is the biggest rough terrain telescopic handler inthe world, it is equipped with the same transmission and engine asthe 30 and 35 ton models and, as all the other models of the range,has the possibility of levelling +/- 5° on each side. The bestapplications of this machine are heavy industry, mining and oil and gas.

Higher holding capacity with the Magni HTH

The LIFTUBE is an efficient solutiondeveloped by SISA INDUSTRY in order tooptimise the sealing and safety of conveyorbelts. This patented system ensuressignificant reductions in dust emission andspillage, while improving maintenanceservice and the safety of workers. The LIFTUBEis designed for belts up to 1,400mm wide. Itcan carry material up to 300°C with particlesup to 500mm.

The LIFTUBE has a numerous benefits:Modular: Standard, adaptable andprogressive elements on new or existingconveyors/Installation on all or part of theconveyor. Compatible with reversible belt.Quality: No contamination of the material.Safety: A complete protection for pinch

points, avoiding physical contact with theband. Moreover, the reduction of dustemission improves the health, safety andworking conditions of the workers.Environment: Reduction and channelling ofdust emissions at the transfer points,

compliant with the ISO 140001environmental management standard.Maintenance: Thanks to the tilting glideboards, the belt can be accessed easily andquickly for maintenance purposes. The idlersbrackets also simply the replacement ormaintenance of idlers.Payback (or profitability or cost efficiency):Thanks to the improved maintenance accessand its enclosed design, the LIFTUBE is verycost efficient, allowing a quick return oninvestment while reducing production losses.Moreover, it does not require majormodification of the existing conveyor design.Option: ATEX/Food Grade/Fire Auto-extinguishing.

www.standard-industrie.com


Why LIFTUBE lifts profits by protecting belts


S14 ATR Dec 2014_Jan 15 - Solutions 01_Layout 1 19/12/2014 09:20

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68

SOLUTIONS

Materials Handling

Bobcat's manufacturing facility inPontchâteau, France, has produced over80,000 telescopic handlers over five decades Aquarter of that production run has emergedfrom the plant since it was acquired byIngersoll-Rand, now a Doosan subsidiarycompany, in 2000. Almost 1,400 machineswere sold in 2014 alone. According to LaurentGicquel, Bobcat plant manager at the site,seven machines a day are built at the site.

Three-quarters of Pontchâteau’stelehandlers have been made for customers inEurope, the Middle East and Africa (EMEA).Just over half the machines are sold toagricultural operators, with the remainingtelehandlers going to constructioncompanies.

There is a new portfolio of productsemerging from Pontchâteau - the T35105,T350105L and T36120SL. The workingenvironment in these machines is bothcomfortable and well-equipped, with featuressuch as a large digital display, refinements tothe joystick, and a semi-automatic wheelalignment empowering the customer oroperator to produce higher quality work thanbefore.

Cab visibility has been increased for thenew telehandlers, as a consequence of a newbox-welded frame design. The frame itself is

reinforced, withshieldedbottom plate to protect components. The rearlights are also protected, and are fullyintegrated into the counterweight.

Bobcat has sourced its engines for Africanmarkets from Deutz to ensure optimalperformance. The goal for Bobcat was,according to Olivier Traccucci, Bobcat's globalsenior product manager for telescopics, "howto make the best even better, how to increaseprecision an smoothness of transmission".

Alongside Mr Traccucci at a recentpresentation at the Pontchâteau facility,Bobcat France product line director XavierLarroque, the T36120SL - a 12m compacttelescopic handler - offers new levels ofperformance and comfort, with a spaciousand ergonomic cab design and theintroduction of hydrostatic transmission withforward/neutral/reverse (FNR) control on thejoystick. Active diagnostics combined with anew boom and frame structure translate intosuperior performance as compared to othermiddle lift models in the market.

Like the T36120SL, T35105 and T35105Lfeature a panoramic cab, with a large curvedwindscreen to ensure comprehensive visibilitywhen handling loads at reach and at height. Inall three models, the cab is configured with anew dashboard with digital display andergonomic controls including a joystick withintegrated forward/reverse control.

Precision and speed are attributes - and thedesign of Bobcat's frame-levelling system is as

important as the engines which power therange. Frame-levelling uses the frontoscillating axle, piloted by a hydraulic ram, asa conventional frame-levelling device, at +/-6°up to 50° boom angle, and +/- 2°above 50°boom angle.

The T36120SL, T35105 and T35105L areinherently stable designs - so, the hydraulicram, proportionally controlled, can be usefulto side-shift, whatever the boom angle. Thesetelehandlers can travel as fast as 30km/h, butoperators can also switch to an inchingfunction for accurate positioning. One keydistinction in the range is the incorporation ofboth stabilisers and the frame-levellingsystem in T36120SL, whereas the T35105Lfeatures the frame-levelling system alone. Allthree models are fitted with a 1.12m-widefoldable pallet forks carriage, and 1,200mmpallet forks. A notable safety feature is theaggravating movements arrestor (AMA)system fitted as standard, which cuts off allaggravating movements, regardless of theattachment or the type of load.

A new level of performance inBobcat’s telehandler portfolio



69

SOLUTIONS

African Review of Business and Technology - Dec 2014/Jan 15www.africanreview.com 69

ConcreteFor many years, Vortex Hydra srl of Italy hasbeen supplying concrete roof tilemanufacturing plants throughout Africa asthe continent has sought to produce high-quality building products and to initiate andpromote local industry. The numerous plantssupplied range from low output ‘start-up’ sizeplants for entrepreneurs and small familybusinesses who are looking to set up a newbusiness in the roof tile manufacturingindustry through to the fully automatic highvolume plants used by large multi-nationaltype companies.

Yet again, Vortex Hydra have thesatisfaction in announcing the successfulinstallation and commissioning of a new fully

automatic roof tilemanufacturing plant inAfrica following severalmonths of discussion with anew customer, Turnall’s ofZimbabwe.

Turnall’s have beenoperating since 1943 andare a market leader in thequality manufacture of fibrecement type roofing,sheeting and pipingproducts in Southern Africa.The management of Turnall decided todiverse by adding high quality concrete rooftiles to their extensive range of buildingproducts. The production plant consists of:� Automatic batching and mixing plant.� Automatic production line including

extrusion machine to produce twodifferent tile profiles.

� Automatic ‘Rotary Rack’ for automaticwarm air curing of the tiles together withautomated racker/deracker.

� Automatic packing system for forming tile

packs through to palletisation.� Production line for ridge, rake and other

special trim tiles for roof finishing.

The installation and commissioning of theplant progressed very smoothly to the mutualsatisfaction of both Turnalls and Vortex thanksto the high standard of professional assistanceprovided by the Turnall technicians and thespecialist expertise of the Vortex team ofsenior commissioning engineers assigned tothe project.

Vortex Hydra continues to succeed in Africa

Specialists in concrete spraying equipment at AtlasCopco have developed a new MEYCO mobilespraying unit designed for highly efficientshotcreting of mid-size tunnels. This unit, calledMEYCO Versa, is the first Atlas Copco branded

product to be launched on the market since thecompany acquired MEYCO in 2013. The new mobileunit is designed to meet the present and futureconcrete spraying (shotcreting) needs of mid-sizetunnel in hydro-power, road and rail projects.

MEYCO Versa, the new mobile concrete spraying unitfrom AtlasCopco, dedicated to mid-size tunnel profiles

A house tiled with Vortex Hydra technology


Atlas Copco offers MEYCO Versa


Turnall and Vortex engineersassembled at the Turnall factory


70

EQUIPMENT/CLASSIFIED


Joerg Engelhardt is VP, global productmanagement, at financial security and servicesfirm Diebold. He spoke, recently, of the design,efficiency and reliability of the company's 5500Series cash-dispensing terminal. "This is all about purposeful innovation," he said."We have been doing a lot of research toexamine changing needs, changing demands." The key is the capability of a footprint optimisedmulti-location design. There is consumer-driven,vibrant colour selection. There is a 15" multi-touch screen. And it is mobile-ready - so it canscan bar codes, it is enabled for near fieldcommunication (NFC), and it has a two-wayvideo capability for interactive consumerengagement and support, and for marketingcampaigns for the financial institutionsdeploying these units. It doesn't matter whereit sits. We are addressing the cost of ownership,and facilitating consumers." Diebold has focused strongly on emergingmarkets, where power consumption is at a

premium. It has reduced power consumptionby 60 per cent, and has increased uptime by 40per cent. Security is probably the biggest concern to beaddressed these days. The new terminals havethe Diebold ActivEdge secure card reader tocombat these concerns. External skimming isno longer possible, and internal skimming isprevented by new encryption technology, rightthrough from the read-head to the CPU. Toensure that there is no external intervention,the CPU must be paired with maintenancedevices, too. Mr Engelhardt is bullish about the terminal'sprospects for emerging markets, as much as formore established financial territories. Dieboldhas deployed a live unit already in the USA, anddiscussions are currently underway with banksin Eastern and Southern Africa for deploymentin a number of key markets. "There is no geography that you can excludewith this terminal," he said.

Al Fajer Establishment (arabplast 2015) ................................................................63Bell Equipment Company SA Pty Limited ............................................................50Caterpillar Inc. - Energy ..................................................................................................7CG Power Systems Belgium NV ................................................................................43Computer Warehouse Group Plc ..............................................................................31Control Risks ....................................................................................................................34Cummins Power Generation - SA ............................................................................41Eko Hotel and Suites......................................................................................................71EPOC Messe Frankfurt GmbH (Intersec 2015)......................................................67Ethiopian Airlines Enterprise ........................................................................................2Fidelity Bank PLC ............................................................................................................27Gedore Tools SA Pty Limited ......................................................................................17Geo Professional Services Ltd ....................................................................................25Guava International Ltd................................................................................................11Heineken N.V. Global Corporate Relations............................................................19Hess GmbH (Usetec 2015) ..........................................................................................16IIR Exhibitions (Africa Electricity 2015)....................................................................41Intermat 2015 ..................................................................................................................57JCB Sales Limited ............................................................................................................55Kirloskar Oil Engines Ltd...............................................................................................72Magni Telescopic Handlers Srl ..................................................................................52Mahindra & Mahindra Ltd. ..........................................................................................15Metalgalante S.p.A. ........................................................................................................21Pan Mixers South Africa (Pty) Limited ....................................................................59Power Engineering (India) Pvt Ltd............................................................................44Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd ................13Topcon Positioning Middle East & Africa FZE (SOKKIA) ..................................61Topcon Positioning Middle East & Africa FZE ......................................................69TVH Group NV..................................................................................................................51Verhoeven Grondverzetmachines BV ....................................................................28Volvo Construction Equipment AB......................................................................5, 52YelloGen Ltd......................................................................................................................47Zamil Steel Buildings Co. Egypt ................................................................................53Zest WEG Group ..............................................................................................................65

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Diebold introduces its 5500 Series cash dispensers,which enable banks to operate more securely andmore efficiently


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