african review february 2016

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

February 2016

Mining:Investment opportunitiesat Mining Indaba P48

Manufacturing:Demand and productionin metal packaging P38

Ghana’s mobile mediabusiness

The continent’smarket for concreteproducts

P22

P47

Transport:Opportunities in East Africantrade corridors P26

www.africanreview.com

African Review

of Business and TechnologyFebruary 2016

Volume 52 N

umber 1

www.africanreview

.com

Roshi Motman,CEO ofTigoGhanaP20

ATR Feb 2016 Cover_Layout 1 26/01/2016 13:30

S01 ATR Feb 2016 Start_Layout 1 26/01/2016 14:24

http://www.ethiopianairlines.com/

UP FRONT

3

REGULARS

FEATURES20 Business and Finance

Communications industry CEO leads on digital innovation and gender diversity; a newpartnership to innovate mobile media data capture in Ghana; and the Nigerian government’songoing work to achieve a well-designed health insurance system

26 TransportImproving freight transport and business travel across East Africa; and South and East Africancountries look to improve ports and railway lines to boost economic growth

28 EnvironmentCritical issues affecting the availability of reliable water supplies in urban areas

30 PowerEnergy monitoring agency sees a bright future for renewables everywhere; FG Wilson's newrange of generator sets, specifically for telecommunications customers; and routine guidancefor contractors who are working to large-scale generator maintenance contracts

38 ManufacturingThe growth in metal packaging manufacturing, driven by Africa’s emerging middle class

40 Construction and MiningThe development of Africa’s infrastructure; lifting business produces cranes for the continent;Balkrishna Industries' latest tyre manufacturing plant; taking the paper out of the machineinspection process; and the market for concrete pipes and related products; what’s new atMining Indaba; and research at SMI in SA

04 Agenda: Initiatives for industryand enterprises

14 Bulletin:New tech for materialshandling

56 Solutions:Technologies designed toimprove industry

Contents

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

February 2016

Mining:Investment opportunitiesat Mining Indaba P46

Manufacturing:Demand and productionin metal packaging P36

Ghana’s mobile mediabusiness

The continent’smarket for concreteproducts

P22

P43

Transport:Opportnities in East Africantrade corridors P26


Roshi Motman,CEO ofTigoGhanaP20

Editor’s Note

Cover picture: Riccardo Mayer/ShutterstockInset, top: Hawkeye PedershaabInset, bottom: Tigo Ghana

P24

P54

In this issue, covering business and finance from page 20 to page 25, there is a profile of TigoGhana CEO Roshi Motman, who leads the way on digital innovation and gender diversity in the

communications industry. There is analyis of a business deal to boost the broadcast industry inWest Africa,, and the Nigerian government’s continuing efforts towards achieving comprehensivehealth insurance. Between page 26 and page 27, this issue offers insights into improving freighttransport and business travel across South and East African countries. Critical environmentalissues are covered on pages 28 and 29, with reference to the availability of reliable water suppliesin urban areas. In the power sector, which is addressed one pages 30 to 36, a bright future isprojected for renewables,, FG Wilson's new range of generator sets are profiled for the company’stelecommunications customers; and there is a feature offering routine guidance for contractorswho are working to large-scale generator maintenance contracts. After assessing themanufacturing or metal packaging on page 38, this issue takes in construction and mining frompage 40, with appraisals of infrastructure development, reports on cranes, tyre manufacturing,and machine inspection processes, the market for concrete pipes and related products, and noteson what’s new at Investing in Mining Indaba. This issue rounds up with research on mining in SA

Dr Andrew Croft, Editor

African Review of Business and Technology - February 2016

Audit Bureau ofCirculations -

BusinessMagazines


Editor: Andrew [email protected]

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Egypt’s renewables energy sector presents a potential opportunity of more than US$10bnfor private sector financing over the next fiveyears. As Egypt’s installed power capacity is setto nearly double from 31 gigawatts in 2013 to 60gigawatts in 2020, renewables will play a key roleand present an opportunity of US$13bn ininvestment and development, according toFrost & Sullivan. In particular, Egypt plans toreach 20 per cent of its total power for a total of11.32 gigawatts from renewables by 2020,across wind, photovoltaic, concentrated solarpower, and hydroelectric projects, according to a report by the Regional Center for RenewableEnergy and Energy Efficiency.

“There are more than 4,000 megawatts inrenewable energy projects currently underdevelopment in Egypt, split between wind andsolar, procured under a newly established feed-in-tariff regime and competitive tenders. Therewill be strong medium to short-term growth, butto date it has been a slow process due to somevolatility and clarification regarding thegovernment regulatory frameworks,” said BakrAbdel-Wahab, managing director ofinfrastructure private equity at EFG Hermes.

The World Future Energy Summit (WFES)2016, hosted by Masdar and part of Abu DhabiSustainability Week held in January, added to analready extensive programme to allow for acountry-specific focus: Egypt Energy Forum. The

event proved to be a platform to learn about thelatest developments in the power, water, gas,solar, wind, and waste management sectors ofthe Arab world’s largest economy, whileenabling attendees to hear how the country’sleaders articulate the ten-year vision for the nation.

“There are many regional conferences onrenewables, but the World Future EnergySummit has the reputation for bringing in high-level developers and investors, providing a forum to give feedback to governments,”remarked Bakr Abdel-Wahab, who presented atthe Egypt Energy Forum and World FutureEnergy Summit.

Among the key issues to be discussed arepractical measures envisaged to acceleraterenewable energy adoption across the country,including a proposed feed-in-tariff programme,and the rollout of solar rooftops. There will alsobe discussion around the status of key public-private-partnership (PPP) programmes, and howthey will be accelerated in 2016, such as the NewCairo Wastewater Treatment Plan, the HelwanWastewater Treatment Plan, Recycling SolidWaste project, and Sharm El Sheikh seadesalination plant.

Finally, developers, operators, manufacturers,and contractors heard from experts in thefinance sector about its appetite for Egyptianproject finance.

4

NEWS

Power solutions specialist SDMO participated forthe second time at the Electricx exhibition heldin Cairo in December 2015. The companypresented its products and solutions alongsideone of its Egyptian distributors, Tawakol.

Electricx welcomes professionals from theelectricity sector annually, with dedicateddisplays for distribution, production andtransformation. SDMO and Tawakol wererepresented at the event by Laurent Berthouloux(SDMO Middle-East), Ahmed Shouman (SDMOCairo) and Khaled Seif (director of Tawakol).

Although the visitors to the event were mostly

from Egypt, they represented a wide variety ofbusiness profiles, from independent consultantsto design & engineering, from public services toconstruction companies.

The SDMO products exhibited for theoccasion (J110K, X1100, soundproofed T16,R110RC and RES 16) comfortably seized theattention of the multi-sector audience.

Abraaj invests inAlgerian hygienics


Agenda / NorthSDMO, Tawakol showcase powersolutions at Electricx

WFES forum to highlight Egyptianenergy opportunities


Investment entity The Abraaj Group hascompleted acquisition, through its

second generation North Africa Fund(‘ANAF II’), of a significant minority stake inCellulose Processing (CEPRO), whichmanufactures and distributes hygienicproducts in Algeria.

Founded in 2003 by Djamel Mehri of theMehri Family – a prominent diversifiedfamily-owned conglomerate in Algeriawith businesses in the hospitality,telecommunications and FMCG sectors –CEPRO represents an attractive investmentopportunity. Abraaj will work inpartnership with the Mehri Family toincrease production capacity andefficiency, diversify CEPRO’s productoffering, enhance marketing effortsthrough a new branding strategy, andexpand its network by developing newdistribution channels in Algeria and Sub-Saharan Africa. In particular CEPRO, whichcurrently operates with robust corporategovernance mechanisms, will look tofurther upgrade its enterprise resourceplanning (ERP) system and reporting platforms.

Ahmed Badreldin, partner and regionalhead of Middle East and North Africa forThe Abraaj Group, said, “CEPRO representsan exciting investment partnership for us,as it is a direct beneficiary of the Africanconsumer opportunity driven by marketnecessity, rapid population growth andthe rise of the middle class. We will applyour global experience in the consumerbusinesses sector to create local valuethrough job creation, industrialdevelopment and investment, andknowledge transfer. We look forward toworking closely with the Mehri Family, oneof the most established entrepreneurialgroups in Algeria, to further strengthenCEPRO’s position in the market andexpand regionally with a focus on Sub-Saharan Africa.”

SDMO products were promoted at Electricx

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http://www.volvoce.com/

1 1

World Bank Group member institution IFC hascommitted to the provision of a US$105mn loanto the Co-operative Bank of Kenya (Co-opBank) to support lending to small and mediumbusinesses, women entrepreneurs and thehousing sector.

The second largest bank in Kenya by totalassets, Co-op Bank has 143 branches across thecountry and a subsidiary in South Sudan. Smalland medium enterprises account for 18 per centof the bank’s lending, or close to US$386mn asof 30 June 2015. Co-op bank will use IFC’sfinancing to extend a wider range of financialservices to entrepreneurs, with US$30mnearmarked for women-owned businesses.

IFC estimates that close to 40 per cent ofKenya’s SMEs are owned by women, who oftenhave more barriers to gaining access financethan their male counterparts. Alongside theinvestment, IFC will advise Co-op Bank on howto tailor products to the needs of womenentrepreneurs. Through IFC’s Banking onWomen programme, this project is supportedby the Women Entrepreneurs OpportunityFacility, a first-of-its-kind global facility dedicatedto expanding access to capital for womenentrepreneurs, launched by IFC and GoldmanSachs’ 10,000 Women initiative in 2014.

The loan will enable Co-op Bank to promoteaffordable housing in Kenya by expanding itsmortgage lending and construction finance.

Rapid urbanisation has led to a housingshortage of two million units in Kenya, whichwill require private investment to build. Withonly 25,000 loans outstanding in a country ofmore than 10mn households, the mortgagemarket is underdeveloped. IFC will work withCoop Bank to streamline mortgage lending andsupport affordable housing projects.

Dr Gideon Muriuki, CEO of Co-op Bank, said,“The long-term tenure of the facility boosts Co-op Bank’s ability to offer financing solutions thatare better structured and priced to fulfil thelong-term financing needs of customers.”

Oumar Seydi, IFC director for East andSouthern Africa, said, " Small and mediumenterprises make up more than 95 per cent ofall firms in Africa, and are generating millions ofjobs on the continent. IFC works with localfinancial institutions like Co-op Bank to provideinnovative and specialised services toentrepreneurs, helping them grow theirbusinesses and drive African economies.”

IFC’s new investment in Co-op Bankcontinues a relationship that began in 2012,when IFC invested US$60mn to expand thebank’s SME portfolio and support theagribusiness sector. The current US$105mn loanwas mobilised in partnership with IFC’smanaged co-lending programme, a platformallowing investors to passively participate inIFC’s future loan portfolio.

6

NEWS

Through its programme Oil for Development, the Goverment of Norway is committed toproviding support to Kenya to improve management of its natural resources and protection of theenvironment so that oil and gas resources can more fully benefit the country and its people.

Norwegian Minister of Foreign Affairs Børge Brende said, "Kenya is an engine of economicgrowth in Africa, and is becoming increasingly important for Norwegian interests. Sound andtransparent management of its oil and gas resources will strengthen Kenya’s economy and createjobs, as well as bringing in revenues to the state. This agreement shows how developmentcooperation can mobilise capital for development."

Ethiopian commencesnew Durban route


Agenda / EastNorway to help Kenya develop oil sector

IFC invests in Co-op Bank tosupport entrepreneurs andhousing finance in Kenya


East African carrier Ethiopian Airlines(ET) has commenced operation of 3x

weekly flights to Durban, South Africa.Durban is the airline’s third destination inSouth Africa after Johannesburg and Cape Town.

ET already offers daily connectionsfrom London Heathrow to Johannesburgand 4x weekly connections to Cape Townvia its modern hub, Bole InternationalAirport in Addis Ababa.

Durban is the second largestmetropolitan city and the second mostimportant manufacturing hub in SouthAfrica. It is also one of the main tourismdestinations in Africa because of the city’swarm subtropical climate and extensivebeaches. Durban is an important gatewayinto South Africa; the new service willoffer passengers more choice andflexibility and facilitate trade, investment,and tourism ties between Ethiopia andSouth Africa.

Ethiopian Group CEO TewoldeGebremariam said, "As a pan-Africanairline working to bring Africa togetherand closer to the world, we are verypleased to spread our wings to our thirddestination in South Africa. The newDurban service will give our customersmore and convenient connectivityoptions when traveling both within andto and from the continent. We willcontinue to expand our reach withinAfrica with a view to supporting thecontinent’s socio-economic integrationand development”

Ethiopian currently serves more than91 international destinations across fivecontinents with over 200 daily flightsusing the latest technology aircraft -including the Boeing 777 and the Boeing787 Dreamliner - with an average fleetage of five years. Durban is the airline’s53rd African and 92nd internationaldestination respectively.


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8

NEWS

SDMO Iberica has recently delivered aninstallation designed to provide backup powerto a thermal-solar plant in Chile. This is thesecond project of this type for Abeinsa, a customer which has already demonstrated itsconfidence in the power equipment companyfor an identical project in South Africa.

In 2013, the technical department led byRamon Subiranas of SDMO Iberica won a contract with Abeinsa, the engineeringdepartment of the company Abengoa. Thisinternational company offers innovativetechnological solutions in the environmentand energy sectors, based on solar energygeneration, the production of biofuels, seawater desalination and the recycling ofindustrial waste. SDMO won the contract for a power plant consisting of two T1650 gensetsin ISO20 containers with separate coolingsystems coupled together and linked to themedium-voltage grid.

These gensets have been designed to act asbackup to a 100MW plant powered by solarenergy captured by parabolic trough mirrorsand stored using a system of molten salt.Located in South Africa, this plant is able topower 80,000 homes and has an estimatedlifespan of 30 years. By using renewable energy,this installation offers an annual reduction of300,000 tonnes in C02 emissions.

Commissioned in early 2015, this SDMOinstallation met all of Abeinsa's requirementsand the company decided to renew itsconfidence in SDMO with a second project ofthe same type: the Atacama 1 contract, this timein Chile. Begun during summer 2015, theproject’s conclusion sees the delivery of a powerplant consisting of five gensets: 1 x V500C2 withenclosure, 1 x T1540 in an ISO20 container, 2 x T1900s in ISO 40 containers and 1 x T2200 in a CPU40.

As the annual global demand for Halaal food soars beyond a trillion dollars (US), more andmore manufacturers, suppliers and service providers are taking advantage of the massivebusiness opportunities supplying Halaal products to Africa’s burgeoning Muslim population.The continent’s biggest food and beverage expo, Africa’s Big Seven (AB7), is playing an ever-greater role in showcasing the vast variety of Halaal products available from around the worldat its renowned Halaal Pavilion. The next AB7 takes place from 19 to 21 June 2016 at GallagherConvention Centre, Midrand, South Africa.

“The steadily-rising demand for Halaal products reflects the strong growth of the globalMuslim population – about 1.6bn people in 2010, which will grow to 2.2bn by 2030,” says AB7show organiser John Thomson of Exhibition Management Services. “There are 75 countriesin the world with Muslim populations of over one million people.”

PEPZ promotes local procurement in Zambia


Agenda / SouthSDMO gensets inbackup mode at renewableenergy powerplants

AB7 boosts Halaal business ops


Leaders of some of the largest and mosteconomically important companies in

Zambia met recently to discuss how theycould increase their business with localsuppliers in the country.

CFAO, Chibuluma Copper Mines, FirstQuantum Minerals, Shoprite Zambia, SparZambia, Total Zambia, Zambeef andZambia Breweries (SABMiller), along withthe Fresh Produce Export GrowersAssociation (FREPEGA) and the ZambiaDevelopment Agency (ZDA), took part inthe meeting and agreed to form a steeringcommittee to work on initiatives that willidentify local procurement opportunities andmake them more accessible to local small andmedium-sized suppliers.

As the largest buyers of goods and servicesin the private sector, these companies believethat by working together to share knowledgeand experiences they can make a significantcontribution to growing the Zambianeconomy and to saving and creating jobs

through increased local procurement. Thesteering committee will provide the necessarystrategic guidance and leadership inadvocating and propagating good practiceswithin the corporate sector and in theirsupply chains that will further open upopportunities for local suppliers.

The formation of the steering committeewas facilitated by and operates in partnershipwith the Private Enterprise Programme -Zambia’s (PEPZ) Business LinkagesProgramme (BLP), which also providestechnical assistance support to qualifyingsuppliers to improve their capacity to takeadvantage of these opportunities.

“The goal of the Business LinkagesProgramme is to facilitate and create a modelfor transnational and national corporationsdoing business in Zambia to actively engage inpromoting targeted local sourcing,matchmaking and local supplier development.Among the initiatives we hope to see is anannual business opportunity fair andworkshops focusing purely on local sourcingand matchmaking,” said PEPZ team leader Bayo Akindeinde.

Zambia Breweries’ head of procurementColin Ogilvie, was elected chairman of thecommittee, which discussed strategies topromote locally-driven supply chains in orderto bridge the gap between large corporationsand suppliers across various sectors.

Members of the PEPZ steering committee,along with PEPZ team members


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Financial services firm MoneyGram hasbecome is the first money transfercompany to offer customers in France,Germany, Ireland, Italy and Spain a way tosend money speedily to most personalNigerian Naira bank accounts. In manycases, they will be able to send "money in minutes".“This is a significant milestone for us. Withthe addition of Nigeria, MoneyGram nowoffers bank account deposits through ournetwork into five of the world's largestremittance receive markets - Nigeria,China, India, Mexico and the Philippines,”said Herve Chomel, MoneyGram’s regionalvice president for Africa. “Account depositis a fast and secure way to send andreceive funds between loved ones and weare proud to offer the service for ourcustomers in Europe and Nigeria.”Customers can send money to most of thepersonal accounts held at banks that aremembers of the Nigeria Inter-BankSettlement System network - includingFirst Bank, UBA, Ecobank, Fidelity, andZenith Bank - from MoneyGram agentlocations in France, Germany, Ireland, Italyand Spain. This marks an importantinnovation for the remittance industry inNigeria. By integrating into the Nigerian

Inter-Bank Payment System, MoneyGramcustomers are able to send money intomost bank accounts in Nigeria, almost inreal time. Receivers do not have toundertake any action as the funds areautomatically deposited into their accountand can be accessed via ATMs or online,without the constraint of a physical over-the-counter visit.

The International Fnance Corporation (IFC) is set to work with LAPO MicrofinanceBank Ltd to pilot and roll out agent banking that will increase access to financialservices for low-income customers, small-scale entrepreneurs and rural communities.IFC is also providing a two billion Naira (US$10mn) loan to support LAPO MfB’s lendingto micro-entrepreneurs. This is the largest investment IFC has made in a microfinanceinstitution in Sub-Saharan Africa.

Godwin Ehigiamusoe, managing director and chief executive officer of LAPO MfB, said,“LAPO Microfinance Bank has remained committed to its goal of economicempowerment through access to finance. We are taking further steps to increase ourreach to more low income earners and more micro, small and medium enterprises. IFC’slong term support has helped us and we hope this new project will lead to enhancedfinancial access for more financially excluded Nigerians.”

Ford equips motorcyclesto map health services

MoneyGram launches account deposit service intoNigeria’s remittance market


Agenda / WestMoneygram transfers "money inminutes" to Nigeria

IFC, LAPO expand Nigerian services


Automotive industry enterprise Ford isexpanding its use of OpenXC sensor

technology to motorcycles, allowingresearchers and programmers to betterunderstand how cars, bikes and othermodes of transportation in combinationcan create new mobility solutions and helpmake people’s lives better – includingimproving how healthcare is delivered ruralWest Africa.

“OpenXC started as a project to make a carsend a tweet five years ago, but has sincebecome a platform, or an ‘Internet of mobility’that allows us to use data to betterunderstand how people move around theworld,” said Ken Washington, Ford vicepresident, research and advancedengineering. “Now, the same open innovationmentality behind OpenXC has inspired ourteam to create a sensor kit for bicycles andmotorcycles to learn how other transportationoptions might best serve people in urban,suburban and rural areas, including improvingtheir health.”

Ford’s open-source hardware and softwarekit provides real-time access to vehicle data,such as sensors, GPS receiver and vehiclespeed. Ford has been using OpenXC tosupport some of its Ford Smart Mobilityexperiments for more than a year.

The company is gathering and analysingvehicle data collected by OpenXC as part ofFord Smart Mobility, its plan to takeconnectivity, mobility, autonomous vehicles,the customer experience, and data andanalytics to the next level.

The broad insights learned from vehicledata, including how people drive and usetheir cars, first inspired Ford researchers tocreate a sensor kit for bicycles to collectadditional data. Now, the company is rollingout the new sensor kit to motorcycles helpingRiders for Health.

The medical services group collects GPSdata and mapping coordinates to reachpeople who need medical care – vaccines,medications and live-saving hospital care –


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March1-2Cards & Payments AfricaJohannesburg, South Africawww.terrapinn.com

1-3Securex West AfricaLagos, Nigeriawww.securexwestafrica.com

2UK-Mali Trade & InvestmentForumLondon, UKwww.developingmarkets.com

3-5CIBEX East AfricaNairobi, Kenyawww.cibexeastafrica.com

8-9Gabon Oil & GasLibreville, Gabonwww.theenergyexchange.co.uk

14-15Oil and Gas TelecommunicationsLondon, UKwww.smionline.co.uk

15-16Power & Electricity World AfricaJohannesburg, South Africawww.terrapinn.com

15-17Cape VI African PetroleumAbuja, Nigeriacapeafrica.com

15-18Propak AfricaJohannesburg, South Africawww.propakafrica.co.za

18-20Plast-Print-Pack-PaperDar es Salaam, Tanzaniawww.mxmexhibitions.com

18-20Trade AfricaDar es Salaam, Tanzaniawww.mxmexhibitions.com

21-22Africa CEO ForumAbidjan, Côte d'Ivoirewww.theafricaceoforum.com

22-24Power, Steel & HousingCalabar, Nigeriapowerandsteelexpo.com

27-29East Africa Oil & GasDar es Salaam, Tanzaniawww.eastafricaogs.com

Events / 2016

African Review of Business and Technology - February 2016 www.africanreview.com

Experience trends, innovations and enthusiasm up close at the industry’s most important international exhibition. This is where the world comes together, so you can’t miss out! Prepare your business success and look forward to: 3,400 exhibitors More than half a million visitors 605,000 m² of space

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14

NEWS

Bulletin / CommunicationsWorld Bank crowdsources withMapillary to chart Tanzania Crowdsourced mapping app enterprise

Mapillary has formed a collaboration with

the World Bank’s Dar Ramani Huria project

to chart Tanzania’s largest city, Dar es

Salaam; supported by the World Bank’s

Global Facility for Disaster Reduction and

Recovery, this community-based mapping

project trains university students and local

community members to create highly

accurate maps of the city in areas that are

prone to devastating flooding.

Facebook introduces innovationchallenge with Internet.org Social network Facebook has launched its

Internet.org Innovation Challenge in Africa

with the aim of acknowledging developers

and entrepreneurs who are using the

internet to improve the standard of

education and economic health in their

communities; Ime Archibong, director of

strategic partnerships at Facebook, said,

“By connecting people and empowering

them with access to services and

information, we can help them achieve

extraordinary things and help them to

enhance their lives.”

Ooredoo signs new financingagreement of US$177mnTelecommunications company Ooredoo

has signed three new financing

agreements with local and international

banks worth US$177mn, to sustain general

corporate operations and to underpin

continued investment in the company’s

network and ongoing enhancement of

services for its business and consumer

customers; Jorgen Latte, chief financial

officer at Ooredoo, said, “With our clear

vision and strategy, Ooredoo attracts many

banks who want to participate and

support our strategic ambitions.”

Orange acquires Bharti Airtelassets in Africa French telecommunications group Orange

continues to expand in Africa with the

acquisition of two businesses from Indian

counterpart Bharti Airtel International;

Orange now owns 100 per cent of the share

capital of Airtel’s subsidiaries in Burkina Faso

and Sierra Leone, which have 5.5mn

customers between them.

Alcatel-Lucent, Bytes transformCape Town’s digital profileIn South Africa, the City of Cape Town has

signed a three-year agreement with Bytes

Systems Integration (Bytes SI) to expand its

broadband and IP routing architecture,

including deployment of the Alcatel-Lucent

7950 extensible routing system, 7750 Service

Router Portfolio, the 7210 Service Access

Switch and the 5620 Service Aware Manager

for a broadband IP infrastructure project;

Alcatel-Lucent Enterprise will provide the

OmniSwitch Ethernet LAN switching portfolio

to extend the services envisaged by the City

of Cape Town to offices and remote locations

as the network edge switches in connecting

via metro ethernet.

SNS finds M2M & IoT ecosystemopportunities ahead Research conducted by Signals and Systems

(SNS) Telecom indicates that global spending

on machine-to-machine (M2M) and Internet of

Things (IoT) technologies will reach nearly

US$250bn by 2020, driven by a host of vertical

market applications including but not limited to

connected car services, remote asset tracking,

healthcare monitoring, smart metering, digital

signage, home automation and intelligent

buildings; concurrently, multimedia and video

applications will account for more than 20 per

cent of the revenue generated by M2M and IoT

services by 2020, amid growing incorporation of

LTE in M2M modules and gateways.

Expresso Telecom Group joinsSAMENA CouncilSudatel Telecom Group subsidiary Expresso

Telecom has joined SAMENA Council’s

community of telecom operators, technology

providers, digital services companies; Tarig

Hamza Rahamtalla, managing director at

Expresso, said, “By joining SAMENA Council,

we hope to enrich our awareness of industry

matters and make our brand more visible, to

be able to realize our objectives of achieving

competitive edge as well as long-term

financial profitability for our investors."

Microsoft works with Udemy toboost youth employmentTo promote youth employability in the

Middle East and Africa (MENA), Microsoft has

signed a memorandum of understanding

(MoU) with Udemy, a marketplace for online

learning and teaching, committing both

parties to share skills-based course offerings

available through the Udemy platform on

“YouthWorks” a regional network of youth

employability portals led by Microsoft and

Silatech; in 2015 YouthWorks, or Ta3mal, as it

is named in the Arab world, reached 8.7mn

youths in the MENA region.

Siemon supplies West Africandata centre cabling solutions Network infrastructure specialist Siemon has

installed cabling solutions in the 3,500m²

MainOne data centre located just outside of

Lagos, Nigeria; the 600-rack facility is the largest

co-location facility of its kind in West Africa and

delivers consistent high-level performance, data

storage and data security to support leading

businesses from across the region.


Siemon's Z-MAX Cat6A shielded cabling



http://www.aksa.com.tr/

16

QUOTES


“Sustainable energy is vital fordevelopment and inclusive, fast-track growth in Africa. It willdetermine Africa’s ability tounleash its full potential andimprove living conditions.”

Thiong Niang, co-founder and vice-president, Solektra International

"With recent drivers such as theObama Administration's PowerAfrica initiative and the ParisClimate Pact, renewable energypromoters have an immenseopportunity to deliver realimpact."

Jerome Ringo, chairman and CEO ofZoetic Global

“Collaboration by variousstakeholders includinggovernments, NGOs andresearch bodies is needed nowto rapidly scale-up the Africanagricultural sector to improvefood security and resilience toclimate change.”

Estherine Fotabong, programmesdirector, NEPAD

“South African seafarers arehighly sought afterinternationally and demand forsenior officers is particularlyhigh. This, combined with thecountry’s world-class trainingand certification standards,

provides an ideal opportunityfor South Africa to play a moreactive role in the global seafarersupply market.”

Daniel Ngubane, group CEO, MarineCrew Services (MCS)

“Quotes”

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Daniel Ngubane, group CEO, Marine CrewServices (MCS)


http://www.americanaugers.com/en/

17

QUOTES

African Review of Business and Technology - February 2016www.africanreview.com

“We have seen phenomenalchanges across other areas withinternet infrastructure such asLagos, Nigeria where Yaba’sSilicon Hub continues toprovide opportunities for jobs,increased investor funding, andenhanced socialentrepreneurship which ispushing the frontiers ofeCommerce in Nigeria.”

Kazeem Oladepo, regional executive forWest Africa, MainOne

“West Africa is still one of thebiggest and fastest-growingindustrial, mining and powergeneration markets in the

world. The region has massivegold, copper and iron oredeposits and hundreds ofmining projects under way atany given time, all with heavyelectricity demands.”

John Thomson, managing director,Exhibition Management Services

“Not only does training equipyour people with skills andknowledge to enable them todo their jobs better, it alsoimproves their job satisfaction.Happy employees usually meanhappy customers. Whetheryou’re training your people touse your systems more

effectively, educating them inethics or law, or helping themdevelop softer skills such asnegotiation and salestechniques, your customers willbenefit.”

Sandra Swanepoel, managing director,Sage HR & Payroll

“Climate change will haveserious and adverseconsequences for manydevelopment sectors in Africa,and threatens the economiesand livelihoods of many Africancountries.”

Mohamed Abdel-Monem, specialadviser, AMCEN)

“Quotes”

#BeACarmixMan


http://www.carmix.com/

German photovoltaic (PV) mounting systems manufacturer Renusolhas established a presence in South Africa’s promising solar market.

The company supplies its innovative solutions for mountingphotovoltaic modules on roofs to South African wholesaler LumaxEnergy, which sells Renusol’s entire product portfolio.

Frans-Willem Vermaak,business developmentmanager at wholesalerLumax Energy, said, “Thesolar market in SouthAfrica is continuouslygrowing. On top of theestimated 100MW of roof-top and agriculturalphotovoltaic output thathave already been installedin the country, the Council for Scientific and Industrial Researchpredicts a significant rise in new installations in the future.”www.africanreview.com/energy-a-power

Renusol enters South African solar market

African Development Bank willmanage Africa's New Deal onEnergy along with investingUS$12bn in energy funding overthe next five years. Africa has been recognised as a hugeresource potential for the energysector, however, economic conditionshave not yet allowed the complete utilisation of this potential. It is thesecircumstances that have given rise to 'New Deal on Energy', unveiledduring the World Economic Forum in Davos in January 2016.www.africanreview.com/energy-a-power

A series of leadership changes have taken place at the executive level ofComputer Warehouse Group (CWG) Plc.James Agada, formerly the chief technology officer has been appointedas the new managing director and CEO. Agada is a highly innovative andversatile technology expert, who holds a first class degree and a master’sdegree in electronic engineering, with a specialisation in digital systemsfrom the University of Nigeria, Nsukka. He also holds an MBA from theInternational Graduate School of Management (IESE), Navara, Spain.www.africanreview.com/finance

18

WEB SELECTION

Payment solutions providerIngenico has set up 50,000terminals across Africa thatwill serve the unbankedpopulation in the continent.

Considering around three-quarters of the population isstill unbanked, there is a needto address this challenge,feels Luciano Cavazzana,Eastern Europe & Africa managing director for Ingenico Group.Ingenico has partnered with FINCA for the provision of financialservices in Africa.

Ingenico tapped FINCA agents to use its biometric terminals tocapture fingerprints of applicants to validate identities prior to loandisbursement. The programme has been implemented in Malawi,Nigeria, DR Congo, Tanzania, Uganda and Zambia.www.africanreview.com/finance

Promising 'New Deal on Energy' for Africa

An estimated 100MW of roof-top andagricultural photovoltaic output have beeninstalled in South Africa. (Photo: leungchopan)

The deal’s aims revolve aroundproviding more power for householdsin Africa. (Photo: meunierd)


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

CWG Plc witnesses executive levelleadership changes

Ingenico sets up landmark 50,000banking terminals in Africa


Algeria and China have signed a US$3.3bn deal to build a newtransshipment port around 60km west of Algiers.

The agreement was signed between Algeria’s transport ministry,China Harbour and Engineering Company (CHEC) and China StateConstruction Engineering Corporation (CSCEC) in Algeria.

The companies will construct the port with 23 docks, capable ofprocessing 6.5mn 20-foot containers and 26mn tonnes of goods per year.www.africanreview.com/construction-a-mining

Algeria and China to build US$3.3bn port

BTE Connectivity has opened its first manufacturing facility inMorocco’s Tangier Free Trade Zone.The facility will specialise in the assembly of new cables, whileadditionally focusing on the production of automotive applications.The range of products will cater to the needs of automotive sectorcustomers in the Europe, Middle East and Africa (EMEA) region. TE Connectivity’s facility in Morocco indicates the company’s strategyto be part of Morocco’s automotive ecosystem. The Moroccan Ministryof Industry, along with the Tangier Mediterranean Special Agency(TMSA), helped set up the factory in the Tangier Free Trade Zone andoperations began in less than a year.www.africanreview.com/manufacturing

TE Connectivity opens first cable assemblyfacility in Morocco

Through biometric scans, candidates’authenticity was validated prior to loandisbursement. (Photo: Chaikom)



http://www.doosanportablepower.eu/

Noted for her outstandingtransformational leadership, RoshiMotman, CEO of Tigo Ghana, has

never ranked higher amongst her telecommunications companies contemporaries.

Motman was awarded CEO of the Year atthe 2015 COM World Series AfricaComAwards, a technology event held in CapeTown, South Africa, each November. Theprestigious award recognises the outstandingcontribution of a business leader in the fieldof telecoms and ICT within an African-listedcompany. It also celebrates business leaderswho contribute towards the expansion,growth and quality of information andcommunications technologies enterprises aswell as promoting socio-economic growththrough access to telecommunications andICT services, most notably to thedisadvantaged segments of society.

An enhanced teamMotman is part of Millicom’s (Tigo’s parentcompany) drive to increase female leadersacross the African continent. As well asMotman, Millicom’s senior leadership team inAfrica includes Cynthia Gordon (Africa CEO),Rachel Samren (executive vice president ofexternal affairs), Uche Ofodile (CEO, Tigo DRC)and Chantal Umutoni Kagame (deputy CEO,Tigo Rwanda).

Millicom is currently running a programmeto raise awareness, enhance recruitment and talent management from a diversity perspective.

Gordon said, “We are passionate aboutpromoting gender diversity at Millicom and Iam delighted that we have such a fantasticrole model in Roshi. We need to continue toensure that the same chances for success anddigital access are available to not only all ouremployees but to all African women as they

make and influence more of the decisionsaround the purchasing of smartphones anduse of data.”

Motman credits her management team,staff and customers for their support for herand the business she runs. She alsoemphasises the importance of new wavecompanies such as Tigo that are committedto hiring locally and promoting talent from within.

Since taking up the reins of Tigo Ghana asthe company’s first CEO in 2014, Motman hasnot only steered the telecom companytowards a refreshed brand outlook,aggressive network expansion, massiveservice delivery improvements and increasedsubscriber growth, but has also transformedcommunities, touched lives and been a source of inspiration for many. Heroutstanding track record of developing andnurturing talent, and making bold businessdecisions, sets her apart as an exceptionalleader. Among her many roles and initiatives,she has also chaired the Ghana TelecomsChamber, and mentored young women tocreate innovation through technology. �

GhanaBUSINESS

20

How women lead at TigoCommunications industry CEO and her contemporaries innovate digital access and gender diversity

Motman credits her management team, staff andcustomers for their support


Motman’s AfricaComaward, as 2015 CEO

of the Year, is testamentto Tigo’s stellar business

performance over thepast year and a half and

positioning as the digitallifestyle brand of

choice for Ghanaians”

Tigo Ghana’s initiatives for 2016Some of Tigo Ghana’s major initiatives for2016 include network optimisation andrevamping its product portfolios to attractand retain customers.

Cynthia Gordon, executive V-P, AfricaDivision of Millicom and parent company ofTigo, says that Africa’s telecommunicationsmarket is innovative and competitive, dueto the size and scale of predicted growththerefore the focus needs to be on some keystrategic pillars.

“Ghana is an interesting and excitingmarket. It is one of the most vibrant and hasenormous growth potential and we willdifferentiate ourselves by adding morevalue through existing infrastructure andpartnerships. For instance with theincreasing adoption of smartphones andinternet consumption locally and thedecreasing prices of smartphonesworldwide, we can help drive up thenumbers for smartphone connections

through a win-win partnership with anaffordable handset provider,” she explained.

She revealed the focus for Tigo in 2016 isto grow the volume and value of customersby accelerating growth in data, TigoBusiness and Mobile Financial Services, MFS.

In 2015, Millicom, the parent company forTigo highlighted industry predictions of anexponential growth in Africa’s mobilebroadband subscriptions – which areexpected to almost triple by 2018 whilstdata traffic in sub-Saharan Africa isestimated to grow by 20 times by 2019 –twice the global average. Industry researchalso forecasts that data revenue in Africarepresents 10-20 per cent of the totalrevenues, but this number is expected toreach 30 per cent by 2018.

Millicom’s vision is to leverage on the roleof the internet and digital technology toadvance people’s lives — financially and socially.

S04 ATR Feb 2016 Advertorial & Business_Layout 1 26/01/2016 13:42


http://www.exhibitionsafrica.com/

The Ghana Independent BroadcastersAssociation (GIBA) recently established a partnership with mobile surveying

company GeoPoll to be the provider of mediadata to GIBA members, which include TV,radio and web broadcasters throughoutGhana. GeoPoll’s joint product with KantarMedia, Kantar-GeoPoll Media Measurement(KGMM), is Africa’s largest provider ofovernight media data and the only source ofnext-day ratings for TV, radio, and print inGhana. GIBA’s partnership with KGMM comesat a pivotal time for Ghanaian broadcasters:the television industry is preparing a switchto digital signal in early 2016, a move whichwill introduce new channels to the marketand increase the need for a fast, reliableaudience measurement system.

GIBA is an association of authorised andoperational non-state owned, private andindependent broadcasting organisations.GIBA’s mission is to proactively supportand promote the independence, legal andeconomic interests of its membersthrough the provision of top qualityresearch, advisory, consultancy andadvocacy in a changing business andregulatory environment.

GeoPoll is a mobile survey platformconducts surveys through the mobile phoneand provides results to clients in real-time,giving anyone the ability to make data-drivendecisions. Through work with companies,nonprofits, and governments, GeoPollprovides insights on everything from food

security to brand preferences. GeoPollservices include both custom research andsubscription products.

“We are extremely pleased to partner withGeoPoll to bring better media data tobroadcasters in Ghana. Broadcasting inGhana is at a turning point, and audiences arebecoming increasingly savvy about the waythey consume media. We are confident thatwith this data broadcasters will betterunderstand the behaviour of their audiences,make more effective programming decisions,and improve their ratings in this competitivemedia environment,” said Akwasi Agyeman,president of GIBA.

Mobile penetration and media consumptionKGMM’s mobile-based methodology hasbecome increasingly valuable as mobilepenetration increases throughout Africa andmedia consumption moves away from thehome. Conducted through panel-based text-message surveys, KGMM’s daily data clearlydemonstrate media trends including popularstations and peak viewing or listening times.

KGMM allows for filtering of data by

demographics including age, gender, andlocation, or psychographics such as bankaccount ownership and preferred brands. Inaddition, KGMM provides media planningand post-campaign evaluation tools whichcan be used by broadcasters or agencieslooking to plan their advertising based on themost up-to-date data available.

GIBA's membership is open to all non-stateowned broadcasters in the country. GIBAsupports its members by providing topquality research, consulting, and advocacyservices. With this partnership, all GIBAmembers will have access to quarterly KGMMdata at no cost, and will be able to subscribeto KGMM’s monthly, weekly, or overnight dataservices at a discounted rate. GIBA andGeoPoll will work together to promote KGMMto the industry, and GeoPoll will provide GIBAmembers with specialised training on how tobest leverage KGMM’s data and toolset fortheir advantage.

Kantar-GeoPoll Media Measurement is alsoavailable in Kenya, Nigeria, Rwanda, Tanzania,and Uganda, and is set to roll out in the DRCongo, Côte d’Ivoire and Mozambique. �

GhanaBUSINESS

22

New national standardfor audience surveysGIBA, GeoPoll and Kantar Media form a partnership to innovate mobilemedia data capture in Ghana

Broadcasting in Ghana is at a turning point, andaudiences are becoming increasingly savvy aboutthe way they consume media, according to Agyeman(Photo: Riccardo Mayer/Shutterstock)


KGMM’s mobile-based methodology has

become increasinglyvaluable as mobile

penetration increasesthroughout Africa”


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Many Nigerians are yet to tap into theenormous advantages of healthinsurance. Hence, voices were being

raised incessantly in Nigeria suggesting thathealth insurance should be made available toall Nigerians and not only a handfulthat can pay.

Those in this clarion call were of the viewthat healthcare of everybody was sensitive andshould be first on the index of things notminding religious affiliation, creed, gender or tribe.

Worried by the gap between the Nigerianmasses and the healthcare, the former chiefmedical director of the Lagos UniversityTeaching Hospital, LUTH, Prof Akin Osibogun,in November 2015 outlined the need formandatory health insurance scheme for allNigerians in his book titled ‘My Life, MyMedicine: A Chief Medical Director’s Story’.

The professor said that the health insurancewould add importance and appeal in balancingpayment for personal health services. However,the irony was that governments at all levelswere yet to take charge in alleviating certainhealth goods and services that were supposedto be for public interest.

Health connoisseurs like Osibogun wereworried that there were health issues, problemsand diseases, which if not managed properlybut left for the individual to handle, couldwidespread. Buttressing his point, it was notedthat the model to give access to citizens andprotect them from spending much can only beachieved through a workable health insurance scheme.

A call for emergency in the health sectorChecks unveiled that the health insurance,perceivably, was programmed for governmentsector workers while the mass of Nigerianswere not meant to have hope in thegovernment payroll.

In order to arrest the challenges facing thehealth sector, the federal governmentlaunched the National Health InsuranceScheme (NHIS) in 2005. But, regrettably, experts

said that the commission was still yet to make asignificant impact.

During its recently-held Physicians’ Week, theNigeria Medical Association (NMA) called onGeneral Muhammadu Buhari to declareemergency in the health sector. The reason wasthat there was dearth of well-designedguidelines for medical practice in Nigeria,because the Medical and Dental Council ofNigeria was wrongly dissolved. The NMAlobbied for the appointment of a chief medicalofficer of the Federation to superintend andfast-track the urgency needed in the healthsector. It also called on the authorities toinstantaneously start the discharge of the 2014National Health Act. It added that there’s needfor a vivacious primary healthcare system in thestates to enliven immunisation and healthcare.

Pharmacist Abiola Olubunmi Paul-Ozieh,chief executive officer of Pharmacy Villa andHigh Rock Pharmacy, and currently thechairman of the Association of CommunityPharmacists of Nigeria (ACPN), Lagos State, andthe vice-chairman of Healthcare ProvidersAssociation of Nigeria (HCPAN) in Lagos State,told Vanguard Newspapers in an interview in

June 2015 that the NHIS was bewildered withconstraints such that the law that guided theNHIS was flawed.

“The enabling law in NHIS stated in Section16 that all Nigerians ‘may’ attach to it. It was notcompelling, for it to be compelling you need toput something like ‘it shall be’. When you makesomething compulsory, everybody knows thatthey have a stake in it,” Paul-Ozieh said.

Paul-Ozieh added that her team was lookingat that area. She said, “How do we bring inpeople in such a way that people no longer

NigeriaFiNANce

24

Accessible, affordableand available to allThe Nigerian government continues to strive to achieve a well-designedhealth insurance system

According to experts, the healthcare system in Nigeria deserved urgent reformation to assist poor people (Photo: Joseph Sohm/Shutterstock)


Nigerians can register for healthservices with their

mobile phones, accessthe services available,

and choose thehealthcare provider

they want”

S05 ATR Feb 2016 Finance_Layout 1 26/01/2016 14:08

FiNANceNigeria

25African Review of Business and Technology - February 2016www.africanreview.com

depend on out of pocket expenses when sickness comes, people won’tstay in the house for another one day, two days two weeks before theycan access health.”

She was of the belief that the only one way to ensure that NHIS wasaccessible, affordable and available to Nigerians would be through thehealth insurance.

It was evocatively effective that the NHIS in total sponsorship by thegovernment had not been able to meet the health needs of Nigerians.Many Nigerians were worried that there was no profound healthinsurance scheme, as many had no hope in the scheme, to subsidise themountainous hospital bills that Nigerians incur in the country.

A source in Vanguard Newspapers reported, “While consumers oftenaccuse healthcare providers of being too profit-conscious, manyhospitals complain of non-payment of the bills of patients treated bythem. Clients also moan that many diseases are not covered and they aregiven substandard drugs.”

Scarce achievement upon reformationGasping for the breath to rejuvenate the health sector, the healthinsurance scheme became operational in Nigeria in 2005.

This titular scheme was launched in 1999 via Decree (now Act) 35 ofthe Federal Government of Nigeria, the NHIS, having been first debatedin 1962 as the Lagos Health Bill, before it became operational in 2005.

The editorial of Vanguard Newspapers on 8 October 2015 mentioned,“Since it became operational in 2005, the scheme has not been on trackto meet its primary target of providing universal coverage for allNigerians by 2015. Its poor implementation has not justified the years ofspadework invested before it became a reality.

“For many years now, the state of the health system in Nigeria hasbeen in jeopardy. Even after 55 years of independence, Nigeria still rankslow among the World Health Organisation (WHO) member nations.”

To make the NHIS workIn April 2015, the Nigerian national telecommunications carrierGlobacom unveiled mobile health insurance product in Abuja to helpboost Nigerians’ access to quality health care.

“The mobile health insurance product was formally unveiled in Abujaon Monday by top Globacom officials and senior officials of the NationalHealth Insurance Scheme. Nigerians who subscribe to this scheme will beable to use their mobile phones for pre-defined medical treatment forwhich affordable premiums are remitted through the subscribers’ mobilephones,” reported a source of Globacom. Investigations revealed that,that innovation was intended to provide a lot of options when it finally widespread.

“There won’t be many excuses like ‘I can’t go to their office, I don’t knowthe direction to their office’ as people can register with their mobilephones, access the services available, people can choose their healthcareprovider, health maintenance organisation (HMO), the hospital or clinic,pharmacy, laboratory that they want. These are the options that would beavailable on the mobile health insurance platform,” reported Paul-Ozieh.

How to get out of the conundrum Experts have opined that the healthcare system in Nigeria deservedurgent reformation to assist poor people. They suggested that the timewas ripe for a policy on legal framework, because the era was forUniversal Health Care.

They added that the country needed to queue on the formations byindustrialised countries and tap into how they set the pace for Utopianexecution. They believed that the national health policy on ground onlyexists on the pages of the newspapers because it does not physicallyguarantees consumer protection and access to care. �

Odimegwu Onwumere

S05 ATR Feb 2016 Finance_Layout 1 26/01/2016 14:08

http://www.protile-equipment.com/index.html

26 African Review of Business and Technology - February 2016 www.africanreview.com

The ongoing construction of a US$3.8bnMombasa-Nairobi-Naivasha StandardGauge Railway is expected to ease

freight transport, reduce travel costsboosting businesses in Kenya and the largerEast African region. Upon completion in2017, the 609km line will reduce travel timefrom Kenya’s Port of Mombasa to Nairobi inthe hinterland by almost eight hours.

The project, part of Kenya’s Vision 2030project, is funded by the China Exim Bank at90 per cent with the rest coming from thegovernment of Kenya. Already, over 50km ofthe line has been laid with most of theconstruction works that include bridges andculverts completed. The China Road andBridge Corporation (CRBC) is the maincontractor in the project that entails theconstruction of 609km of single track railwayincluding necessary sidings, tracks, stations,workshops and depots. Also included is thesupply and installation of communications,electricity and water supply facilities along the route.

The Kenya Railways Corporation (KRC) isreplacing the old line, dubbed the “LunaticExpress”, which was constructed by Britishcolonial authorities over a century ago. Overthe years, ageing lines, engines and wagonshave pushed businesses to use roadtransportsconsidered more expensive and risky.

“Transport by rail is cheaper and reliablecompared to road transport. It can reducecosts by over 40 per cent. It also reducespressure on road repair costs,” observedEutychus Ndeithi, a cement retailer in Nairobiand one of the persons excited by prospectsof the standard gauge railway. According toMr. Ndeithi, rail transport improves thebusiness margins since businesses need notworry of incessant longhaulage vehiclesbreakdowns. A study by the East AfricanBusiness Council (EABC) indicates thatbusinesses are hugely affected by expensivecargo transport in Kenya and the region.

“It takes 28 days to move a 40 feetcontainer from the port of Shanghai inChina to Mombasa at a cost of US$600,while it takes 40 days for the same containerto reach Bujumbura from Mombasa at a costof US$8,000,” lamented Ms RosemaryMburu, a consultant with the Institute ofTrade Development.

New builds, more capacityAs part of the project, new 40 modernpassenger stations will be constructedbetween Nairobi and Mombasa to improvepassenger transport. Freight terminals - oneat the Port of Mombasa and an inlandContainer Depots at Embakazi near Nairobi -are also underway. The SGR line is designedto carry 22mn tonnes of cargo annually. It willalso have passenger trains with a capacity of960 and will travel at average speed of120km/hour. Freight trains with a capacity of216 TEUs will travel at an average speed of80km/hour. China has already supply the firstsix of the expected 56 diesel locomotives,1,620 wagons and 40 coaches.

Engineering the economyCurrently, the SGR is one of the key factorsdriving Kenya’s economy which the WorldBank projects to attain seven per cent annualgrowth by 2017. Already, the project hasemployed over 2,000 Chinese and 25,000Kenyan workers.

At the Syokimau campsitenear Nairobi,over 400 engineers and over 15,000technicians and skilled workers areundergoing intense training to handle tolocomotives and other equipment uponhandover to the Kenya Railways Corporation.The project comes at a time when data fromthe Kenya Bureau of Statistics indicates thatthe transport sector has been growing at a steady five per cent. While goodstransported by road have grown by 15.2 percent to US$6bn in 2014, experts say that thisgrown will decline upon completion of theSGR as more goods are move to rail. Goodshauled by rails expanded by 24.3 per centfrom 1.2mn tonnes in 2013 to 1.5mn tonnesin 2014. The Port of Mombasathe maingateway to Kenya and beyond recorded an11.3 per cent grown in cargo handled from22.3mn tonnes in 2013 to 24.9mn in 2014.

“The SGR will be a gamechanger. Kenya istransit state that requires a first classinfrastructure,” said AlyKhan Satchu, a Nairobi-based financial analyst.

While the project is currently connectingKenyan cities, SGR is to be rolled out fromMalabaon the Ugandan border to Kampalaand Kigali in Rwanda. A branch will also runfrom Kenya’s city of Kisumu to Juba, inSouthern Sudan, easing transport in the EastAfrica’s Northern Corridor. �

Mwangi Mumero

RailTRANSpoRT

Reducing costs withstandard gauge railHow the forthcoming US$3.8bn Mombasa-Nairobi-Naivasha railway couldimprove freight transport and business travel across East Africa

Booyco Enegineering awarded a contract to supply HVAC systems for the 240 BombardierTRAXX Africa, TFR’s Class 23E locomotives being built by Bombardier Transportation forTransnet Freight Rail for General Freight Business (GFB). The HVAC systems are an evolutionof the previous systems which were engineered for the 15E and 19E locomotives. Thesesystems have an established track record for reliable performance under the harsh operatingconditions in South Africa, making them suitable for even the most demandingenvironments worldwide. “This contract underlines our ability to perform at this level andfirmly positions us to participate in the international market on an ongoing basis,” saidBooyco Engineering managing director, Jeremy Pougnet.

Booyco wins Bombardier HVAC locomotive contract

S06 ATR Feb 2016 transpor t& water_Layout 1 26/01/2016 14:36

South and East African countries have been urged to improveboth ports and railway lines operations so as to boosteconomic growth in the regions by supporting business links

to land locked countries. According to the participants at thesecond annual port and rail expansion summit conducted in Dares Salaam, Tanzania, in December 2015, African countries need tolook to the opportunities and alternative trade routes to boostbusiness in the continent.

Landlocked countries depend on its neighbours’ seaports androad infrastructure to move their exports and imports. Thusimprovements of ports operations will see improvement inbusinesses and economic growth in the regions. For so long, therehave been many complaints on the poor services offered atvarious ports in East and Southern African ports. Delays to cargotransport, too much bureaucracy and poor cargo security wereamong many issues raised by stakeholders. Moreover, movingcargo from ports to various destinations by road has been anotherbig problem, in particular causing road damage throughooutEastern and Southern Africa. Some countries have put plans inplace to revive and construct new railways lines, so as to easecargo transportation.

According to Walvis bay Corridor Group CEO Johnny Smith,Africa needs to focus on building human capacity so that peoplecan be fully involved in implementing various projects includingport and rail expansion. He said, “Africa needs to focus on humancapacity to be able to do better and implement various projects interms of port expansion.”

Ms Nozipho Mdawe, secretary general of the Port ManagementAssociation of East and Southern Africa (PMAESA), saidthecontinent is rich in both resources and opportunities and thatthere is a need for its people to set plans on how to utilise them.She observed, “African countries need to change way of thinkingand doing things. In order to end port related problems, we mustbuild a strong foundation. Africa’s population is expected to growfrom the current 1.1bn to 1.6bn in the next year and that meansthe trade volume will also increase. Are our ports ready for this growth?”

Mr Paul Wallace, CEO of the Tanzania International ContainerTerminal Services Ltd (TICTS), which handles cargo at the port ofDar es Salaam, explained how containers have been increasing atthe port and called for more investment to tap the potentialswhile delivering at reasonable times. He said, “I think the solutionto decongest our ports is the construction of standard gaugerailway which will be connected across the region.”

The 2nd Annual Africa Port and Rail Expansion summit wasorganised by Noppen Group. The summit was attended by more100 participants from different parts of the World.

Florentine Muga

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WaterENviRoNMENT

Meeting urbanwater challengesWith growing urban populations, the availability of reliable water suppliesin urban areas is more crucial than ever

There are many stats associated with howmany people have, or don’t have, accessto reliable and sufficient water supplies

in urban Africa from a wide variety of organisations.

The International Institute for Environmentand Development, around 300mn peoplerepresent the urban population across Africa,of whom at least 150mn do not haveadequate water supplies. The IIED also claimsthat when it comes to overall sanitation,which relies heavily on the availability ofgood water supplies, some 60 per cent or urban dwellers in Africa have inadequate sanitation.

Even with such stark figures, the overallurban water supply and sanitation situationin Sub-Saharan Africa has improved in thepast 10-15 years. But the disparities meanthat targets for improvements set under thevarious development programmes such asthe Millennium Development Goals (MDG)for the period 1990-2015, are not being met.

MDGs and JMPsMonitoring the MDG, WHO/UNICEF haveundertaken their Joint MonitoringProgramme (JMP) reporting at regularintervals; the 2015 JMP is the last before theMDG term finishes. Some of the mainfindings of the latest JMP with regard toAfrica lay down probably the most accurateand current information on the state of play of water supplies across the region available.

It has found that the number of the world ’s population without access to improveddrinking water globally now stands at 663mn,marking the first time this number has fallenbelow 700mn. It has also found that since theMDG period began in 1990, some 2.6bnpeople have gained access to an improveddrinking water source.

The good news in sub-Saharan Africa isthat 427mn people gained access toadequate water supplies during the MDG

period, which equates, according to WHO, toan average of 47,000 people being served perday for 25 years. And what appears as aremarkable achievement is that, as of thisyear, only three countries in the world –Angola, Equatorial Guinea and Papua NewGuinea – have adequate water supplycoverage of less than 50 per cent, whichcompares to 23 countries in such a poor statewhen the MDG period began.

That said, MDG targets were not met byNorthern and Sub-Saharan Africa, and whilethe latter did not meet the MDG target it stillachieved a 20 per cent increase in the use ofimproved sources of drinking water duringthe period and that includes urban supplies.One of the anomalies shown up by the JMPrelates to sanitation and shows that acombination of population growth and slowprogress has resulted in the number ofpeople in sub-Saharan Africa without accessto sanitation actually increasing since 1990.

The latest JMP also suggests that – andhere ’ s a stat which does not quite agree withthe IIEE figure above – some 319 millionpeople (urban and rural) in Sub-SaharanAfrica remain without access to adequatewater supplies. Let ’ s face it, though, exactstats are pretty immaterial other than as trendindicators; what matters is the numbers inneed are huge, the problem remains and thekey issue is what governments, internationalorganisations and NGOs, as well as privatesector participants are doing about this challenge.

TargetsIn a recent report, ‘Progress on Sanitation andDrinking Water’ from the World HealthOrganization and UNICEF, several key targetswere set down for a post-2015 world, whichshould impact urban populations in Africa’sdeveloping economies. These include:� An end to the practice of open defecation;� Safe water, sanitation and hygiene at home

should be available to all;

� Water, sanitation and hygiene should beavailable at every school;

� Water, sanitation and hygiene should besustainable;

� Inequalities in access should be eliminated.

The details of these targets are furtherexpanded by the entities, where we see 2025as the target year beyond which no onepractices open defecation; a major hurdle inachieving this is also a goal for 2025 - an endto the inequalities leading to the practice ofopen defecation in the first place.

Then, by 2030, the aim is that everyoneshould have basic drinking water and hand-washing facilities available for use at home;by the same year basic drinking-watersupplies, adequate sanitation, hand-washingfacilities/personal feminine hygiene facilitiesshould also be available in all schools andhealth centres, again with inequalities leadingto the current poor situation eliminated.

The overall aim of these WHO/UNICEFglobal targets – which apply equally to urbanAfrica – is to achieve progressively affordabledrinking, hygiene and sanitation services thatare environmentally sustainable andfinancially accountable for all stakeholders.And that aim is set to be reached after 2040,at which time the specific goals are foreveryone to be using adequate sanitationwhen at home and the proportion of thepopulation not using an intermediatedrinking-water supply service at homeshould, by then, have been reduced by half. Inaddition, by that time human waste from atleast half the health centres, schools andhouseholds in urban as well as rural areaswith adequate sanitation should beundergoing effective management and treatment.

Private Sector RealityWhile the major organisations likeWHO/UNICEF, Save the Children, Christian Aidand many other NGOs set ambitious and


Water


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admirable targets to give some structure formany countries, governments and agenciesto follow as a framework, on the groundbeyond the talk and meetings, manygovernments in Sub-Saharan Africa havealready set about a process of thedecentralisation. This is aimed at passing theresponsibility for such services as urban watersupply and sanitation to regionalmunicipalities and local authorities. It alsoallows for the involvement of the private sector.

Many African governments haveintroduced wide-ranging reforms of theirurban water sectors in order to improveefficiency in service delivery that extendsaccess to greater numbers of people, whileat the same time doing so using afinancially viable and sustainable businessmodel. One of the key aspects in manycases and countries has been private sectorparticipation (PSP) to help central and localgovernments achieve these aims. Theresults have been varied across Africa’snations with some good, some bad. Thatsaid, in certain regions where inefficientstate-run organs have limped along foryears, the idea of PSP has been enough forthem to re-invigorate their methodologiesand breathe new life into theirinfrastructure and businesses.

Happening as we speakIn July 2015, the African Water Facility(AWF) announced the approval of a€1.9mn grant for the Democratic Republicof Congo (DRC) to help improve drinkingwater and sanitation services in Kinshasa,as well as for the expansion of watersupply services towards Kinshasa-West.

The project should benefit over 3.5mnpeople. This is actually a pilot scheme, butit should significantly increase the city’scapacity for strategic planning and resultin the growth of Kinshasa’s drinking waterand sanitation services. The AWF will fundthe development of a master plan for theintegrated urban water management inKinshasa, and a feasibility study ondrinking water supply and sanitationservices in the western part of the city.

The project will follow integrated urbanwater management principles to promotethe coordinated management of naturalresources and urban water derivatives as a way to maximise social and economicbenefits. This approach will have theadvantage of turning the management ofliquid and solid waste into income-generating activities. It is the aim, once theproject is complete, that its results and thelessons learned will inspire other cities inthe region, which are also looking todevelop their drinking water supply andsanitation services.

The production of drinking water inKinshasa is currently unable to keep upwith an ever-increasing demand. The‘production deficit’, as it is termed, hasreached 300,000 cubic metres per day.Kinshasa’s population reached 10mnpeople in 2014 and is projected to reach 14-17mmn by 2030, based on a five percent population growth rate per year. Waterneeds, as a result, will reach some 1.2mncubic metres per day in 2027, more thandoubling the current rate of production.

The sanitation sector in Kinshasa is alsoexperiencing severe service deficits. Only 14 per cent of the population have access toadequate sanitation services and poormanagement of sanitation waste has led toenvironmental degradation. Close to 70 percent of the city’s solid waste ends up ininformal landfills, most of them located alongthe riverbanks.

To address these issues, the AWF will presentthe Congolese Government with planning andmanagement models to improve the financialprofitability and technical performance ofKinshasa’s water and sanitation services, andreduce water pollution. The project alsoproposes to introduce measures to build thecity’s resilience to climate change, through theprovision of water supply and sanitationservices designed around the predictedimpact of climate change on the region’s waterresources. The total cost of the project is€2.5mn, of which 76 per cent is covered by theAWF, 15 per cent by the Global WaterPartnership and nine per cent by theGovernment of the Republic of the DRC. �

Tim Guest

ENviRoNMENT

SSA’s urban watersupply and sanitation

situation has improved inthe past 10-15 years -but disparities mean

that targets set byvarious agencies for

improvements are notbeing met”


http://www.booyco-electronics.co.za/

30 www.africanreview.com

Africa’s renewable energy sectorcould finally be on the verge ofrealising its mighty potential

following the December 2016 UN ClimateChange summit in Paris, France. At thesummit, over 190 countries agreed to cuttheir fuel emissions in a bid to reduceglobal temperature rises to 1.5C above pre-industrial levels. Bodies likeGreenpeace have since hailed the accordsaying it spells the death knell for fossilfuels in the coming few years.

But African nations did not wait for theformal agreement before agreeing to takeaction. Indeed, in an unprecedented movea total of 54 African Union (AU) countriesunveiled their African Renewable EnergyInitiative (AREI) on 1 December - a weekahead of the formal Paris gathering. Theaim of AREI is to mobilise US$20bn ininvestment and to develop at least10,000MW of renewable energy across thecontinent by the end of the decade.

This in itself will be the mere prelude to a further ramping up of renewable energyin Africa during the following 10 years. TheAfrican Development Bank (AfDB) - whichfunds both conventional and renewablepower plants - is co-sponsoring theinitiative and has said it will triple itsfinancing of climate action projects toUS$5bn per year by 2020.

Gathering support for changeHowever, the success of the plan stands orfalls on its ability to attract bilateral fundingfrom wealthy donors as well as multilateralfunding. France and Germany have alreadyannounced their support for renewableenergy projects in Africa. After meeting withthe heads of state from 12 African countriesgathered for the climate in Paris, PresidentFrancois Hollande announced that Francewill commit two billion euro to the sectorbefore 2020. This is twice as much as thecountry contributed over the past five years.

The German Economic Cooperation andDevelopment Ministry also said it willcontribute Euro 3 billion to the projectbefore 2020. The AREI is expected toreceive additional funding from the $100billion pledged by rich countries in 2009 to fight climate change in thedeveloping world.

Although renewable energy projects arespringing up right across Africa, it is North,East and Southern Africa that is in the lead.Egypt in particular is taking massivestrides. At the end of 2015, the country’sMinistry of Electricity signed a cost-sharingagreement with 24 renewable energycompanies that have qualified for theimplementation of solar and wind powerplants in Benban, Aswan through the feed-in tariff (FIT) system. The companies haveagreed to pay 30 per cent of the cost of the plants which will eventually have a 1,950MW capacity.

South East of Egypt, Ethiopia hasambitions to become a regional renewablepower leader on the continent. Thecountry has an estimated 45,000MW ofhydro resources and its economy isgrowing fast, making it one of the mostattractive African destinations for powerinvestment. In 2013, the generation andtransmission sectors were fully opened tothe private sector when new legislationallowed private investors to compete withthe state-owned Ethiopian Electric PowerCorporation (EEPCO).

In October 2015 the Africa-focusedinvestment fund Black Rhino, owned by theBlackstone Group, said that it wasconsidering an investment in Ethiopia’srenewable power generation sector. Thisannouncement followed the landmarkagreement in July when Ethiopiaconcluded its first power-purchaseagreement (PPA) from the 1,000MWCorbetti geothermal power project for500MW of privately generated electricity.

Capacity, is expected to be ramped up to1,000MW by 2023.

However, there are calls for Ethiopia’stariffs to be increased to provide evengreater incentives to private investors.Currently, the country’s power tariffs,which are subsidised, average just $0.056per kWh - making them some of the lowestin the region. This means that EthiopianElectric Power (EEP) is effectively spendingabout $0.09 per kWh on electricitygeneration. The utility’s CEO Azeb Asnakehas conceded that prices will need to beraised and the utility is understood to beconsidering increases of up to 50 per cent.

Elsewhere in East and Southern Africa,ZTE Corporation of China has sealed a US$146mn solar energy deal with theZimbabwe Power Co that will lead to thecreation of a solar equipmentmanufacturing plant. Together with ZPCand Intratrek Zimbabwe, the Chinesecompany will also construct the 100 MWGwanda power plant. This solar facility willhelp to expand the country’s powergeneration capacity that is adjudged to betoo small to meet both domestic andindustrial demand.

South Africa itself is a major producerand consumer of solar power. Indeed, morethan 200,000 homes are said to receivesolar power from the world’s largeststorage solar farm near Upington in theNorthern Cape. As at end-2015, the ACWASolafrica Bokpoort CSP Power Plant wassaid to be operating at full capacity, justtwo years after the start of construction.

Meanwhile, in December, themultilateral Climate Investment Funds(CIF) announced that it has endorsedUganda’s Investment Plan (IP) to build onits renewable energy resources. The IP willbe implemented with support from theAfDB and other partners, including theInternational Finance Corporation (IFC). It

RenewablepoWER

potentially morepowerful projectsWith Cop21, the continent's renewable energy sector has finallygained the boost it needs to expand



31www.africanreview.com

will enhance the country’s policyinfrastructure for sustainable energy thatis envisioned in the ‘Vision 2040’ plan forUganda, which includes increasing energyaccess to ambitious 80 per cent by 2040.

In Tanzania, UK aid is backing a schemeto bring household solar systems to thecountry’s remote, rural areas. Tanzania isalso targeting geothermal power. TheJapanese multinational Toshiba recentlysigned an agreement with the TanzaniaGeothermal Development Co. (TGDC) tosupport the country’s geothermal powerexpansion plans. Tanzania is estimated tohave up to 650 MW of geothermal powerpotential and it is currently preparing a renewable energy policy and a Geothermal Act to expedite thedevelopment of new power generation.

The Power System Master Plan (PSMP)estimates that Tanzania will need anadditional 9 GW of generating capacity by2025 to meet the growing demand and toreplace its ageing facilities. The forecast isthat coal will supply 45 per cent of thecountry’s energy supply. Hydro is expectedto provide 35 per cent of Tanzania’s energywith oil and gas the remaining 21 per cent, respectively.

In Kenya, the solar company M-Kopa isaiming to deliver solar power to a millionhomes by 2017. With as little as an upfrontcost of US$35 and payment of US$0.50 perday for a year, the company is alreadydelivering power to Kenyans, Ugandansand Tanzanians. And like Tanzania, Kenya is developing its geothermal power potential.

By 2023, the Kenyan utility KenGen isexpected to become the world’s largestgeothermal power generator with aninstalled capacity rising to 1,500MW. This,according to research don by RenaissanceCapital, will leapfrog in size Chevron’s plantin Indonesia and Calpine in the US, whichproduce 1,339MW and 1,250MW,respectively. It is projected that Kenya’snew plants will contribute up toUS$656.7mn per year to Nairobi’s coffers.

The one disappointment is West Africa. Theregion has - so far - failed to match the sheervision for renewable energy that is on displayin North and East Africa. However, there arehopes that Nigeria is about to become a sizeable player.

In November, developer Access Infra Africaand asset management firm Quaint GlobalEnergy Solutions announced that they are toco-invest in a US$100mn 50MW PV project inNigeria’s Kaduna state. The groundbreakingAbiba solar project will be the first significantsolar array in Nigeria. Access executivechairman Reda El Chaar said, “We see thisproject as a gateway to the widespreadadoption of renewable energy in Africa’slargest economy.”

The following month, Nigeria’s solarprospects took another big leap forward withthe signing of an agreement between theWorld Bank’s lending arm, the InternationalFinance Corporation (IFC) and Middle BandSolar One for the development of a 120MWphotovoltaic (PV) solar plant.

Only 40 per cent of Nigeria’s populationhas access to grid electricity supply andvirtually nothing is supplied by solar power.But under the current solar PV programme,the government hopes to increase the share

of the technology by three per cent in 2020and at least 6 percent by 2030.

Also in West Africa, the small state ofLiberia announced its first solar project in thesecond half of 2015. The Arizona-basedjunior mining firm Sunergy is looking tolaunch the project that would supply powerto the John F Kennedy Hospital in Monroviaover the next 18 months through a 50MW, orlarger, solar facility. Sunergy has nowreceived the approval of the Liberian EnergyMinistry to start with a small-scaleinstallation. It said it expected that theproject would be supported by a powerpurchase agreement (PPA) from LiberiaElectricity and a sovereign guarantee orimplementation agreement.

Although its beginnings have been patchy,it is now clear that African governments arestarting to realise the developmentalpotential that exists in solar power. And asinstallation and running costs come down -and encouraged by the multilateral lendingbodies to switch from fossil fuels – the rate atwhich solar and other renewable projects getlaunched across Africa will undoubtedlyaccelerate. �

Nnamdi Anyadike

poWERRenewable

Cronimet Mining Power Solutions GmbH and KfW subsidiary Deutsche Investitions- undEntwicklungsgesellschaft mbH (DEG) have signed a three-year partnership intended toexpedite the parties’ individual socio-economic growth and electrification targets in Africa.The public-private partnership’s interests are aligned through the advancement of large-scale photovoltaic (PV) and PV/diesel hybrid power plants in over 20 African countries.Funding contributions through the develoPPP.de programme of Germany’s Federal Ministryof Economic Cooperation and Development (BMZ) and Cronimet have been made availablefor early phase PV development activities, technical skill transfer programs during pre-financial close development and on-the-job training and vocational workshops during theconstruction of large scale PV projects.Rollie Armstrong, managing director of Cronimet, said, “Having already invested substantialamounts of capital to develop PV in remote parts of Africa since 2013, we feel this publicprivate partnership compliments each party’s continued commitment to socio-economicadvancement in remote and underserved electricity markets. The funding will support localdevelopers and technical learning and educational capacity building programs appliedthrough Cronimet’s PV development projects in over 20 countries throughout East, West andSouthern Africa.”

Cronimet and DEG agree to fund PV developments in Africa



32 www.africanreview.com

According to the African DevelopmentBank some 30mn people live onislands located either in lakes or

alongside Africa’s shores. These islanders arepaying around US$0.52kWh for electricity, ornearly four times the average price paid bymainland US consumers. Therefore, it is notsurprising that islanders are seeking moreaffordable power generation solutions. Thisreview of island schemes demonstrates thatrenewables, such as wind and solar, canaugment traditional power generationtechnologies alongside pumped storageand batteries, giving considerable costsavings for consumers.

Cape VerdeIn 1994, Cape Verde Islands was whollydependent on expensive imported diesel togenerate electricity. Today, 30 Vestas windTurbines installed by Cabeolica Wind FarmsSA taking advantage of the trade winds belt,provide up to 25MW, or nearly 20 per cent ofthe power needs of the country’s populationof 475,000. The scheme, was financed from a public- private investment fund for sub-Saharan Africa. According to the state powercompany, wind power has cut annual dieselimports by 22,000 tonnes, improved energysecurity and reduced power cuts. Thissuccessful outcome has encouraged itsstakeholders to set a target of increasingwind’s energy’s contribution to 50 per cent ofpower generation by 2020. Andris Piebalgs,EU Development Commissioner said inFebruary 2014, “Energy in Cape Verde iscrucial, for education and healthcare, forgrowth, tourism and even for the supply ofwater. In short, renewable energy is thecountry’s main route towards growth and development.

Lake Victoria: source of the NileBugala Island, the largest island in LakeVictoria, Africa’s biggest lake, is home to a new hybrid solar- diesel power plant which

came online in January 2015. The plantaccommodates a 0.6MW solar farm and a 1MW diesel generator owned by KalangalaInfrastructure Services Ltd. The diesel plantwas constructed by Ugandan firm, FerdsultEngineering Services and the solar farm byIndia’s Premier Solar which provided the solarthermal hybrid system generators andbatteries sufficient to meet the power needsof the area’s 50,000-plus residents. A consortium led by UK-based InfraCo,Nedbank of South Africa and USAID, financedthis US$3.3mn project.

Spain's Canary IslandsMeeting the power needs of the 10,000inhabitants of the remote island of El Hierro ,part of the Canary Islands, has always proveda headache for Spain’s power companyEndesa SA. For consumers, the electricityprovided by Endesa’s 11.36MW diesel-firedplant was expensive at €0.242/kWh(US$0.26/kWh). A connection with Endesamain power plant on Tenerife some 200kilometres distant was ruled out on thegrounds the difficult seabed typography. July2015, saw the completion of Endesa’s €82mnproject encompassing five wind turbines witha total capacity of 11.5MW and two waterreservoirs - one of which- lies at 700m abovesea level. The two reservoirs are connected bytwo 3km-long pipes and any water runningfrom the upper to the lower reservoir passesthrough a series of combined turbines thatcan either generate electricity or pump water.This hybrid system is expected to reduce theisland’s diesel use by around 40,000 barrels a year translating into an annual savings of€1.8mn. However, given the vagaries of windpower and periodic need for maintenance,this scheme has not entirely eradicated theneed for diesel power generation.

South Africa’s Robben IslandIn March 2016, the South Africangovernment is due to announce the winner

of a public tender to install a 400-kW solarpower plant on Robben Island, the formerprison-home of Nelson Mandela. Backing theuse of solar power, Tourism Minister DerekHanekom stated in his budget speech ofMarch 2015, “A 10 kW PV system could save a 15-room guesthouse more than ZAR 5,000 a month in energy costs, while a 250-roomhotel could save more than ZAR 50,000 a month through the installation of a 65 kW PV system.”

Putting schemes in placeThese innovative schemes, designed to meetthe needs of relatively small number ofconsumers, often located in relativelyinaccessible places or remote places from thegrid, demonstrate the increasingcompetitiveness and adaptability ofrenewable technology for improvinggenerating capacity and reducingconsumer’s electricity costs.

RenewablepoWER

islands of newenergy potentialThe technologies, projects and opportunities being developed to improvepower supply to African islanders




The demand for fossil fuels such as oiland gas to drive Ghana’s energyneeds have not been reliable

considering years of continuousinadequacy of these energy mix, but suchdrawbacks cannot be ascribed torenewable energy because of its reliabilityand sustainability. Some examples ofsources of renewable energy are: solar,wind, biomass, tidal wave and geothermal.

Policyy and preparationVery much aware of the great demand forenergy as the years go by, because ofexpansion of the economy in terms ofindustrialisation, the Volta River Authority(VRA) worked out a Renewable EnergyPolicy, a preparation towards installing upto 150 megawatts of wind and solarenergy in the years ahead. The VRA hadalready conducted feasibility studies onsolar and wind energy.

In 2010, the Authority approved a Renewable Energy Policy targetingbetween 100MW and 150MW of wind andsolar in the not too distant future.

The Ghanaian government is stillkeeping to its promise of reducing thepower cuts and outages significantly byDecember 2015 and also increasing theinstalled electricity generation to5,000MW by the end of 2016 as it isexploring multiple energy mix for a solution to the challenge. But therenewables are what government is verymuch convinced that, they will help a great deal in energy addition to ensuresustainable power.

For Dr Kwabena Donkor, Minister ofPower, “Renewable energy will provide a major chunk of the country’s energysupply to meet the 12 per cent per annum growth, especially for off–grid communities.

“It is expected that come ten to twentyyears from now, renewable energy willbecome a major tool for the country’ssocio – economic development due togovernment’s sustained efforts toward the

renewables sector. We need to harnessthe vast potential of renewable energy toaddress the current gap in power supply,as well as tackle the dire threats of climatechange in the country.”

Indeed, having been passed byParliament, the Renewable Energy Act,2011 has made it possible for actors in theindustry to scale up their activities in thecountry’s renewables sector such as theVRA’s 2.5MW connected to the nationalgrid solar PV system, located at Navrongoin 2013 among others.

Of greater significance is the ongoingsolar installation being supervised by theUK-based renewable energy investor anddeveloper, Blue Energy, and being executedby its subsidiary, Mere Power NzemaLimited. The solar plant is located close to a village called Aiwiaso in the WesternRegion of Ghana. It is a 155MW project andwill be the largest solar photovoltaic (PV)power plant in Africa and the fourthbiggest in the world. It will connect into the

161KV West African Power Pooltransmission line which links Ghana withIvory Coast, Togo, Benin and Nigeria. Aftercompletion, such a facility will increaseGhana’s current generating capacity by sixper cent and will meet 20 per cent of thegovernment’s target of generating 10 percent of Ghana’s electricity from renewablesources by 2020. Such a project is supposedto be fully operational in 2017 and theplant will have 20-year operational life.

The CEO of Blue Energy, Chris Dean,said,, “Ghana’s forward – thinking strategyputs it in a strong position to lead therenewable energy revolution in sub–Saharan Africa. Nzema is a case study inhow governments can unlock the hugepotential for solar energy in Africa. We aredelighted that it will make a strongcontribution to the national economy,provide much needed generating capacityand help develop the skills of the future.”

Emmanuel Yartey

poWERRenewable

investing in sustainableenergy initiatives



Africa is on course to be the world’s first continent electrified byclean renewables, according to International Energy Agency (IEA)executive director Fatih Birol. By contrast, the development of

OECD countries is essentially based on very dirty coal. As well as reducing carbon emissions (135 giga tons over the period

2014-2040 according to the IEA) global adoption of renewables is beingaccelerated to enhance air quality, energy security and global diversity ofsupply. And here in rural Africa there is often no other source of poweravailable, anyway.

Ahead of the successful COP21 climate summit, the IEA stated thatthere were clear signs that an “energy transition” was under way aroundthe globe. The agency reported, “Renewables contributed almost half ofthe world’s new power generation capacity in 2014. The world’s appetitefor electricity lifts demand by more than 70 per cent by 2040.”

Nevertheless, around 550mn people will still remain without any accessto power by 2040, most of them here in sub-Saharan Africa. TheRenewables section of the IEA’s World Energy Outlook (WEO), reports:� Renewables secured their position as the world’s second-largest

source of electricity in 2014.

� By 2040 they are likely to account for one-third of total power generation.

� Global capacity additions will total 3600GW between 2015 and2040, more than for all other forms of power generation puttogether. Investment in renewable capacity will total about 60 percent of the total.

� Cost reductions are improving the competitiveness of sometechnologies like solar PV (photovoltaic) panels dramatically.

� Asian manufacturers such as Trina, JA Solar and Hanwha (allChina) supplied nine out of every ten of the panels sold aroundthe world in 2014.

African installationsIn South Africa, the region’s largest single power market, there exists a target for the installation of a million solar water heaters alone by 2030.This will be supported by 17.8GW of new renewables capacity beinginstalled there within 15 years.“SSA is rich in energy resources – huge renewable resources remainuntapped” the previous WEO report had stated in November 2014,pointing out that the sub-region accounts for 13 per cent of the world’spopulation but only four per cent of global energy demand. Biofuels likewood and charcoal – with the adverse environmental and health effectsthey bring - account for well over 60 per cent of total energy demand.However one-half of SSA’s grid-connected power generation remainslocated in South Africa, and two-thirds of the population still have noaccess to mains electricity at all.

Hence, the success we have noted of off-grid solutions such as M-KOPA’s innovative pay-as-you-go products in the East.

Back to the IEA’s own views. The findigns in the agency’s reportinclude the following observation: “The sub-Saharan energy systemexpands rapidly to 2040, but so do the demands placed on it ... thepower system evolves quickly, with generation capacity quadruplingto 385GW. Almost half of the growth in electricity generation to 2040comes from renewables.”

Other points made in the Agency’s special focus on SSA includes:� Through 2040 the ‘mix’ of generation sources diversifies as the

share of renewables more than doubles to 44 per cent.� Total power-sector investment will average around US$46bn a year,

just over half of this in essential transmission and distribution (T&D) activities.

� By 2040 950mn people are projected to gain access to electricity byvarious means, including off-grid solutions such as the one cited above.

� A successful programme for grid-based renewables was stimulatingprivate investment in SA in particular. The potential in Nigeria wasthought to be especially good, too. �

RenewablesPOWER

34

A rosy renewables futureEnergy monitoring agency sees a bright future for renewableseverywhere, especially here in SSA


Scenario are expected to be:2015-2025 2026-2040 (bn US$)

Hydro 55 117Bioenergy 10 21Wind 15 31Solar PV 31 107Other (incl geothermal, concentrating solar) 17 72

S07 ATR Feb 2016 Power_Layout 1 26/01/2016 14:38

http://www.apsuae.com/

POWERF G Wilson


FG Wilson has announced a newrange of generator sets, specificallyfor telecommunications customers.

Following consultation with operators,tower companies and hybridmanufacturers, the new range deliversreliable power for extended runningperiods of up to six months betweenservice and fuel replenishment intervals.To minimise site visits, 600, 1,000, or2,000-litre fuel tanks and an extendedservice interval option can reduceoperating costs for the generator set byup to 50 per cent.

Using market-leading control modules,including built-in mains sensing andchangeover systems, the generator sets aredesigned to be easily and quickly deployed.Complete with the latest Deep Seacontrollers, the new FG Wilson Telecom rangecan be tailored to meet all technicalrequirements, from configurable alarms and

protections, to remote monitoring, controland preventative maintenance.

Plug-and-play options allow upgrading onsite when required. With security in mind, therange conceals all fuel pipework and fuelfilling connection protecting against fueltheft and optional security features includelockable door latches and GPS tracking

devices. With a new range of acousticenclosures at different sound attenuationlevels, the range is suitable for allapplications and locations. And when a generator set needs to be moved to a new location, its modular designedenclosures can easily be upgraded toensure it meets all local noise regulations.

Customers now have the choice of tworeliable products at different price points.

The new range has also undergonerigorous validation testing to ensure it isbuilt to run for many years. The newrange comes with class-leading

aftermarket support from 370 FG Wilsondealers spread across 150 countries, all fullytrained in technical, maintenance and servicesupport, with ready stock of parts andsupported by a 59,500m2 parts facility,carrying more than 11,500 product lines anddispatching over three million genuine partsper year. �

Power for telecoms

S07 ATR Feb 2016 Power_Layout 1 26/01/2016 14:38

http://www.su-kam.com/

+

� � � � � ��

The primary responsibilities of industrialgenerator maintenance contractors areto maintain records, learn the

manufacturer’s technical information, inspectthe engines and systems, and take themanufacturer’s suggested precautionarysafety measures. There are steps to take whilecarrying out scheduled maintenance toensure reliable generator operation,including:� Removing worn out parts.� Upgrading components as necessary.� Checking fluid levels.� Verifying control panel indicators and

readings.� Load bank testing.� Changing air and fuel filters.

When carrying out routine maintenance ondiesel or natural gas power generators, thetechnician must record each action in thesystem’s log book; various readings andparameters are also logged along with theinspection date and hour meter reading ofthe generator. With this history, any variationin the readings can be an indicator of a faultwithin the unit, impacting its performance.

Regular load testing intervals of theautomatic transfer switches help keep trackof the unit’s mechanical and electricalintegrity during the mechanical transferoperation. Other factors that should bechecked periodically are:� Timing and starting relays.� Utility phase sensors.� Start signal continuity.

Replacing worn components andmaintaining a unit regularly are smallinvestments that can save big on expensiveand unnecessary upgrades. They can evensave you from replacing the entire genset inthe future.

Preventative maintenance is the best wayto ensure you have an uninterrupted powersupply. Diesel generator sets, whether usedfor back up (emergency) or primary power,

must be maintained regularly to providequality power throughout their service lives.Some larger companies who maintain manygenerators (or if the generator is being usedas a primary power source) may employ anin-house engineer to oversee themaintenance of their gensets. Smallercompanies who use generators primarily forbackup in emergency outages often have acontracted agreement with a generatordealer or electrical contractor. Either way, thelife-cycle of industrial power generators iswell known and documented so that routinemaintenance of them is fairly straightforward.Best practice for generator maintenance is tofollow the maintenance schedule suggestedby the generator’s manufacturer, such as thedocumentation provided by companies suchas Cummins and Caterpillar.

The history of generator usage helpspredict when the generator needs service, orif it will fail. A reliable maintenance schedulecan usually be obtained from themanufacturer and can be overseen byelectrical contractors/engineers or a localgenerator dealer. Conforming to theseschedules will safeguard the generator units,and ensure proper operation and maximumservice time. Larger manufacturers ofindustrial generators have well-establishedmaintenance routines and will service notonly their own generators, but many of theother major brands in the industry as well.

Whatever routine method you choose, it isvital to the operation and life-cycle of yourindustrial generators to have routine,manufacturer suggested maintenance and tokeep that maintenance as well-documentedas possible. This attention to detail will addyears to your units’ lifespans, and will give youintegrity and confidence in your operation asa whole. �

GeneratorsPoweR

36

Priorities for industrialpower problemsRoutine guidance for contractors who are working to large-scalegenerator maintenance contracts


Source: Worldwide Power Products

S08 ATR Feb 2016 Power & Manufacturing NEW_Layout 1 26/01/2016 14:43

South Africa Tel. +27 31763 3222Nigeria Tel: +234 (0)12122522Tanzania Tel: +27 31 763 3222 Tunisia Tel: +216 71 19 00 06

Algeria Tel +213 2160 90 77Botswana Tel. +27 31763 3222Mozambique Tel. +27 31763 3222Cameroon Tel. +237 677 285665

Clarke Energy is a specialist in the supplyand maintenance of gas and diesel enginepower plants. Clarke Energy is theauthorised distributor and service providerfor GE’s reciprocating engines business inAlgeria, Botswana, Cameroon, Lesotho,Mozambique, South Africa, SwazilandTanzania, Tunisia and has an installed baseof 500MW on the continent supported by anetwork of local service engineers,committed to delivering high qualityinstallations and providing reliablemaintenance support for your generator.

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The importance of Africa as a globalpackaging centre is growing and it isdestined to surpass India and China in

the not too distant future. Much of thisgrowth is predicated on the rapid increase inmetal food packaging. Food typicallyaccounts for 50 per cent of Africa’s consumerpackaging industry, though when thebeverage sector is added that can increaseto 69 per cent.

Demographic dynamicsAccording to a study by Standard Bank, if

current demographic patterns continue foranother 85 years, then by the end of thecentury, Africa could have 4.2bn people,compared with today’s 1.1bn today.Nigeria’s population alone is expected torise from 180mn to 910mn.

But it is the sheer explosion in the size ofAfrica’s middle class that it is responsiblefor the growth in the continent’s packagingsector. Africa’s middle class (defined by thebank as those earning at least US$450 permonth) has tripled from fewer than fivemnin 2000, to 15mn today. In the next 15years its numbers are forecast to swell byanother 25mn.

Growing markets, more demandAll of this demand growth will require more

food and therefore more metal packaging.Currently the packaging of local foodstuffs ispoorly developed and much produce is stillinformally packed for sale in ‘open markets’.However, this is beginning to change andAfrica’s domestic metal packaging sector isbecoming increasingly adept at handling thesurge in demand for local agriculturalproducts from ‘farm gate’ to household.

The expansion of Africa’s packaging sector isexemplified by the link up of two of Africa’smetal packaging industry ‘giants’ - the Nigerianaluminium beverage can maker GZ Industries(GZI) and South Africa’s Golden Era Packaging.

The two companies recently announced theestablishment of a US$75mn joint venture toset up a 1.2bn cans a year manufacturingplant in Johannesburg to cater to localpackaging demand. Called Gayatri GZIBeverage Cans, the venture will commenceoperations in the second quarter of next year.

The factory will manufacture two-piecealuminium beverage cans in multiple sizes.According to GZI CEO Motti Goldmintz, it willenable GZI to become “sub-Saharan Africa’slargest packaging-solution provider to thebeverage industry".

The new plant will give GZI a totalcapacity of more than 3.5bn aluminiumbeverage cans a year.

South Africa’s packing industry is the mosthighly developed on the continent. Thecountry’s total packaging market, includingpackaging for exports, amounts to 3mntonnes of materials with metal accounting foran estimated 400,000 tonnes.

This size puts GZI’s packaging ambitionsinto perspective. It wants nothing less than tojockey for Africa’top spot with theJohannesburg Stock Exchange (JSE) listedNampak – currently Africa’s largest packagingmanufacturer and which is also looking toincrease its production capacity with newcanning plants in Nigeria and Ethiopia.

Nampak has large aluminium beveragecans operations in South Africa, Angola andNigeria. The company’s can division, Bevcan,is the only tinplate beverage can andaluminium ends manufacturer in SouthernAfrica. Within its home market it has theadvantage of being able to source much ofits steel and tinplate as well as aluminium,from local suppliers.

But next year, GZI will commission a newmetal canning plant in Nairobi, Kenya, whichwill be the first can manufacturing facility inEastern Africa. The facility will supply cans tobottlers and brewers not just in Kenya, butalso in Ethiopia, Uganda and Rwanda.

Industrial innovatorsGZI - a comparative packaging industry

upstart – is putting Nigeria’s expandingmetal packaging industry firmly into theinvestor spotlight. The private company,which was only incorporated in 2006, isowned by four Nigerian and foreigninvestors. Production at its third canningplant in Aba to the east of the countrycommenced in the first half of 2015.

Nigeria’s canned/preserved food sectoris growing fast. A Euromonitor reportestimates its full-year 2014 growth at 12per cent. And the prospects are for a 2 percent compound annual growth rate(CAGR), in constant retail value terms, overthe coming years.

Elsewhere in Africa, a similar trend is atwork. With a population of 90mn and a totalof 3,390 food and beverages factories,Egypt’s drinks and food canning sector isalso a force to be reckoned with in Africa.Packaging equipment for the foodprocessing industry represents 50 per centof the total market, which this year isexpected to grow by 25 per cent.

There are still formidable challengesahead,. In the first place, Africa’s packagingindustry is starting from a very low base.And this presents problems with regardsto plant location and size. The foodpackaging industry derives its strengthfrom large volume production. And theinability to produce to ‘world scale’,outside of Nigeria and South Africa, haslimited investment. It has also restrictedthe local packaging industry’s ability tomeet international standards. In a report,the FAO says that one way to jump startthe food packaging industry in Africawould be to “relax packaging regulationswithout [at the same time] sacrificing foodsafety considerations”.

Nnamdi Anyadike

PackagingMAnuFAcTuRinG

Domestic demanddrives local industryHow the growth in metal packaging manufacturing has been drivenby the emerging affluence of Africa’s middle class



http://www.ekohotels.com/

it is widely known that Africa’s infrastructureis in need of investment. A recent KPMGreport suggested that Africa needs basic

infrastructure investment of aroundUS$100bn per year over the next decade – a third of which is needed just formaintenance. Furthermore, most of theinfrastructure developments already in playare concentrated in more developedcountries including South Africa, Algeria,Egypt and Morocco whereas the rest of thecontinent continues to lag far behind ininfrastructure provision.

Many have argued that the infrastructuredeficit is the continent’s single biggest hurdletowards long term economic growth anddevelopment. With this in mind, we’ve seenmany African governments look to addressthis issue and create a more welcomingenvironment for construction companies.Add to this growing interest in Africanindustry from the international investorcommunity, and the continent is at a turningpoint, ripe for infrastructure developmentover the next decade. Here, we look at theopportunity for Africa’s construction sectorand what trends we see developing.

Growth of private investmentThere has been, and to some extent,continues to be a significant funding gap tofulfil Africa’s infrastructure needs. Historically,most of the capital has come from the publicand third sector with development agenciesand African governments allocating funds todevelop or repair creaking infrastructure.

Until recently, private investment has beenfairly limited, partly due to the challenginglandscape for infrastructure development. Ina 2012 survey conducted by the Organisationfor Economic Co-operation and Development(OECD), several development agenciespointed to obstacles in promotinginvestment in Africa such as politicalinstability, weak public administration,unreliable legal frameworks, corruption, the

low capacity of project promoters,bankability of projects, lack of long-termfinancing, and insufficient resources forproject preparation. These issues created a vicious cycle of limiting the amount ofcapital available to improve the enablingenvironment on the continent.

In the past decade though, change hasbeen afoot. There has been a steady rise inforeign private investment coming into thecontinent and the construction sector hasbenefitted from this influx of capital. A recentAVCA study revealed that more thanUS$22bn has been raised for African privateequity investment alone since 2007. With a third of all African PE transactions occurringin the energy, industrials and utilities space,a significant chunk of this funding will bedirected at plugging the continent’sinfrastructure deficit.

Investors are seeing opportunities in theconstruction sector to deliver the large-scaleinfrastructure projects that Africa needs to

fuel her growth. From new roads to drainagesystems, forward thinking firms can utilise theinflux of capital for infrastructure projects onthe continent.

For the last 35 years, Spencon has been a staple in the East African constructionindustry having been involved in over 200projects in some of the most difficultgeographies including urban and rural Kenya,Uganda, Tanzania, Rwanda, Zambia, Malawi,Mozambique, and southern Sudan. Duringthis time, we’ve seen the many challengesthat project developments face in the regionand also experienced the changingconstruction landscape in East Africa.

Going forward, we continue to identifyopportunities for Africa’s construction sectorin the following key areas –

Power Power instability remains a key issue in Africawith most governments keen to address theproblems to support long term economic

infrastructure

40

Cross-sector stakeholdersbuild economiesHow the construction industry can contribute to the development ofAfrica’s infrastructure and economic growth

There has been a surge in demand toimprove transport facilities in the region

African review of Business and technology - February 2016 www.africanreview.com

ConstruCtion

S09 ATR Feb 2016 Construstion_Layout 1 26/01/2016 10:22

growth. Over the last five years, there havebeen a wealth of new power projects acrossAfrica and in particular, East Africa, awardedto international construction firms. Thisincludes the US$684mn power-plant inTanzania to plug regional energy shortageswhich will be built by China NationalMachinery & Equipment Import & ExportCorporation (CMEC) and German engineeringgroup Siemens. As Kenya, Uganda and manyother African nations focus on improvingtheir power networks, more of thesecontracts will be available to internationalfirms with significant expertise. Firms withexperience in delivering such large scaleprojects on time and on budget will proveinvaluable to local and national governmentswho need hand-holding through the process.

Many of these projects are funded byinternational investors or developmentagencies like the World Bank, hence therequirements for adequate reporting andcorporate governance are substantial andshould go some way in improving the qualityof service provision within the sector.

WaterAdequate provision of clean water tocommunities is a priority for many Africannations, as well as development agenciesinvesting in the continent. As water andwaste management will play a critical role inthe near to medium, and long-term future ofthe continent and world at large,construction firms are well placed to invest inthe sector as it is expected the number ofprojects are likely to grow by two or three-fold.

In East Africa, we’ve been involved innumerous water and sanitation projectsworking with international companies for thedesign, construction, supply, installation,testing and commissioning of water andwastewater treatment plants. Recently,Spencon, in consortium with Degrémont,

completed the design and construction of a 90,000 cu/m per day water treatment plantin Lower Ruvu, Tanzania.

TransportBusiness and economic growth in Africa hasdriven the urgency for a complete revamp ofthe continent’s crippled transport network. Inour 35 years of operation, we’ve seen a surgein demand for implementing road projects toimprove East Africa’s transport networks.

Firms across the world are already takingadvantage for example, the Portugueseconstruction giant Mota-Engil, Engenharia E Construcao SA winning the US$64mncontract to construct the second phase of theKampala Northern Bypass in East Africa.

Regional integration and cross borderprojectsWhilst many make the mistake of viewingAfrica as one indigenous entity, its truepotential lies in its diversity and variety.

Within the large land mass that is Africa, arevarying climates, economies and with thatdifferent challenges to overcome.

Many of Africa’s 54 countries are small witha population of fewer than 20mn andeconomies less than US$9.9bn. TheProgramme for Infrastructure Developmentin Africa (PIDA) noted in 2011 that most of thecontinent’s present infrastructure arereflections of the continent’s colonial past,with roads, ports, and railroads built forextracting valuable resources and aid politicalcontrol, rather than to integrate territoriestogether economically.

In recent times, countries have realised thebenefit of creating regional links and buildingregional infrastructure in order to createlarger, more competitive markets forbusinesses’ rather than operate as smaller,isolated and inefficient ones. Bodies likeECOWAS (Economic Community Of WestAfrican States) and the EAC (East AfricanCommunity) are driving regional integrationand thus, creating opportunities forinfrastructure projects that span acrossborders. At Spencon, we’ve experienced moredemand to work across borders anddemonstrate flexibility across terrains.

During the last 35 years of our operation,Africa has experienced enormous political,social and economic change and it is likelythis period of growth and development willcontinue for the next few decades. However,the infrastructure on the continent to supportthis change has been slow to follow mainlydue to the lack of appropriate financing. Asgovernments, development institutions andinvestors look to address the funding gap, theconstruction sector is ripe for growth and willplay an increasingly important part in Africa’sdevelopment. After a successful threedecades on the continent at Spencon, we arelooking forward to witnessing andcontributing to Africa’s progress in the nextthree decades. �

FEAturEConstruction

41African review of Business and technology - February 2016

frenchsa

Andrew Ross,CEO of Spencon



http://www.torreindustries.com/group-activities/torre-lifting-solutions/

From light-duty applications todemanding processes, Konecranesequipment is particularly suited to the

harsh conditions in sub-Saharan Africa.Konecranes standard offering includes high-quality basic equipment, while the advancedoffering includes the latest high-techfeatures. Products can also be tailored tospecific customer requirements. The productrange comprises Workstation lifting systemsfor lighter loads and overhead cranes withlifting capacities of up to 500 tons.

Ergonomy and safety with workstationlifting systemsWorkstation lifting systems represent a widescope of expertise. The products areparticularly designed for lighter loads and areflexible and versatile in their use. Productsrange from hand-held lifting tools to robusthoists with up to 20-ton capacity.

Konecranes chain hoists are ideal fordemanding workstation use and cover liftingcapacities of up to 5,000kg with the CLXchain hoist and up to 2,500kg with the SLXchain hoist, which includes stepless hoistingspeeds. The chain hoist is not only convincingwith its reliability but also with itsappearance, having received the prestigiousRed Dot award for Industrial Design in 2013and a special mention in the German DesignAward competition for design quality in 2015.

Busy workstations can benefit from lightand durable XA Aluminium and modular XMWorkstation cranes, with lifting capacities ofup to 2,000 kg, while Jib Cranes are adaptableto various processes. For lifting processeswhich require a fast pick-and-place operation,Konecranes’ ATB AirBalancer, with up-downcontrol of up to 350kg, enables accuratepositioning and balancing control. Otherproducts include a telescopic lifting devicecalled the ATL vertical lifter, which is able tolift loads up to 250kg outside the center ofgravity. In addition, manual products areavailable for environments in whichelectricity is impractical or unavailable.

Overhead cranes with the latesttechnology featuresKonecranes industrial overhead cranesrepresent a high-quality product whichincludes the latest technology features tohelp increase safety and productivity. Severalof these are already operating in South Africa.Konecranes Smart features represent the

most advanced crane functionality on themarket today. The latest features are SnagPrevention, Hook Centering, and Active SwayControl, which can aid to improve speed,accuracy, and the safety of customers’ lifting processes.

Konecranes industrial overhead craneproduct portfolio is wide, starting from theCLX chain hoist cranes, with lifting capacitiesof up to five tons. The robust design andsmooth controls of the CLX crane make itsuitable for various manufacturing processes,while easy service access and self-adjustingmagnetic breaks keep maintenancedowntime at a minimum.

The CXT wire rope hoist cranes can lift upto 80 tons with one hoist and can be scalablefor various lifting requirements. One of thebenefits of utilising a CXT wire rope hoistcrane is the efficiency of space used underthe crane and the excellent hook approacheswhich make the CXT crane suitable for nearlyany industrial setting.

For lifting capacities of 500 tons,Konecranes provides open-winch cranes,SMARTON and UNITON, which are stronglinks in production processes and fordemanding uses.

CXT Wire Rope Hoist crane equipped with many of ourSmart Features, like ESR (Extended Speed Range) and

positioning features; the crane contributes to thespeed and precision of ATA’s production in Finland

Cranes ConstruCtion

42

Meeting Africanbuilders’ lifting needsLifting businesses group Konecranes provides an extensive range of cranes

CLX Chain Hoist crane used at MAN NederlandDealer truck repair shop. The CLX crane isequipped with travel inverters, which improveaccuracy in load positioning during precisiontasks like removing and replacing engines



Konecranes’ standard offering alreadyincludes a wide range of options but can alsoprovide tailor-made cranes for processes thatrequire customisation.

Cranes for hazardous environmentsKonecranes’ product portfolio is also availablein explosion-proof applications and includesindustrial cranes, jib cranes, and manualcranes, as well as electric and manual hoists,with lifting capacities from 125kg to 160tons.Konecranes follows strict quality and safetyregulations, which is substantiated bymultiple certifications of IECEx and ATEX

Industry knowledge built into every productEvery industry requires something different.For instance, steel manufacturing needsprotection from heat and dust. Fuel andenergy production often require specialisedgrabs, and the automotive industry usesspecial cranes for coil handling, stamping,and assembly, while mining and primarymetal processing often occur in specialenvironments, with special requirements forcranes. By working on the productionfrontline of industrial customers on everycontinent, Konecranes’ experience is reflected

in a deep industry knowledge that is builtinto every Konecranes product. All key cranecomponents are manufactured and designedin-house, in order to function flawlessly invarious lifting applications and industries.

Extensive service networkThrough its global service network andfeedback from over 600 branches around theworld, Konecranes offers specialisedmaintenance and modernisation services for

all types of industrial cranes. These servicescan be applied to a single piece of equipmentor across the entire operation, boosting theproductivity and safety of industrialprocesses. Excellent, proactive, and real-timeservice is one of Konecranes’ strategicpriorities. With 634 service locations in almost50 countries (ten in Southern Africe alone),the company has the largest service networkin the industry and provides high-qualityservice 24/7. �

ConstruCtionCranes

43African review of Business and technology - February 2016www.africanreview.com

A 20-ton SMARTON crane operatingin the coil storage area of a steel mill


http://www.escortsece.com/

the vision of BKT is to become a leader inthe global off-highway tyre market,which is why they decided to build

a manufacturing unit in the state of Gujarat. The company's Bhuj plant is located about

100 km from Pakistan and around 60 km fromthe port of Mundhra, which is on the ArabianSea - making it convenient to tap intolucrative business opportunities.

Spread across 300 acres, the US$500mnplant, by the time of formal inauguration, hadalready achieved a daily production capacityof around 150 MT. It is expected to touch 325MT a day, according to Rajiv Poddar, jointmanaging director of BKT.

While the first tyre was rolled out in March2012, the entire project will be completed by2016. The tyres currently being made at theplant include 22 sizes of the Maglift solid tire,various measures of Liftmax LM 81 tire (bothfor forklifts), Portmax PM 93 in size 280/75 R22.5 for straddle carriers and the giantEarthmax SR 45 Plus tire for dumpers.

Construction of the plant began in 2011.Company officials, at the press conference,recounted the various hardships they had to

endure during construction including harshweather conditions and presence of wildanimals at the project site. BKT needed a continuous expanse of land for sustainedconstruction of the plant and related facilitiessuch as a power plant and a reservoir. Shortlyafter construction of the plant began, an eightkm-long pipeline for drinking water as well as13 km of electricity lines were laid out.

Lucia Salmaso, managing director of BKTEurope, said, “The Bhuj production site is amilestone in BKT’s growth, not only for its highlevels of technical and quality standards, butalso because it is the BKT plant that is situatedat the closest distance to a port – a decisivefactor to speed up delivery time. Likewise, thisis a great benefit for companies that havechosen BKT tires as original equipment.”

Like all BKT plants, Bhuj has obtained theISO 9001: 2000 Quality Certificate. As far asproduction parameters, quality control andenvironmental regulatory requirements areconcerned, BKT adheres to the strictestinternational standards.

In addition to being a world-classmanufacturing facility, the Bhuj plant also has

a host of amenities such as a testing track, anR&D centre, thermoelectric plant and waterreserves. BKT’s testing track is supposedly oneof the best in the country, and is in demand byseveral Indian tyre manufacturers fortesting purposes.

A specific and handy aspect of the BKTplant was a fire station – considering how farout the plant is from city limits, having a fully-loaded fire station is a matter of assurance forthe thousands of workers.

According to Arvind Poddar, chairman andmanaging director of BKT, primary resourcefor the growth and success of any business isits staff. “More than six hectares of the Bhujsite a small town for the employees was builtincluding modern flats for 406 families, a mall,a green area, a recreation centre, a medicalcentre and a fire station,” he revealed.

The launch was attended by mediarepresentatives worldover, who got a chanceto witness the various production aspects andprocesses at BKT’s plant. Through thismilestone, BKT feels ready to embracechallenges and become a game changer inthe market. �

tyresConstruCtion

44

Made in india,for the world indian off-highway tyre specialist Balkrishna industries Ltd inaugurated itslatest manufacturing plant in Bhuj, Gujarat in December 2015, establishingits presence in the tyre manufacturing business

The Bhuj facility’s testing track is used to test BKT products, aswell as being approached by other tyre product companies in

India for similar testing purposes. (Image source: BKT)




http://www.liebherr.com/en/deu/start/start-page.html

TechnologyCONSTRUCTION

46 African Review of Business and Technology - February 2016

Caterpillar is taking the paper out of the machine inspectionprocess with Cat Inspect, an easy-to-use mobile applicationthat allows users to download machine-specific

inspection forms and capture actionable information duringtheir walkarounds.

Inspection types include Technical Analysis (TA1) inspectionforms and Preventive Maintenance (PM) checklists. The checklistsare serial-number specific, which gives users guidance specific tothe Cat equipment they depend on every day.

Users can add ratings, make comments and take pictures duringthe inspection. Subsequent inspection reports lists items requiringattention, from immediate to normal. If users are inspectingmachines with optional equipment not listed on their checklists,they can document that equipment and add the information to the form.

Besides eliminating the need for paper, Cat Inspect allows typedor dictated notes, off-line inspections, forwarding to the Cat dealer,and PDF distribution. Important alerts are also sent to VisionLink, sousers can get an even better overall view of their fleets.

Cat dealers and technicians have tested, improved and used CatInspect over the past year, ensuring an outstanding experience for

all customers, especially those using a mobile device on inspectionsfor the first time.

Cat Inspect is available at no charge through Google Play, theApp Store on iTunes and the Windows Store.

Improving inspection



http://www.zamilsteel.com/

CONSTRUCTIONHawkeyePedershaab

47

‘Concrete marketexists for pipes’


Concrete pipes are an important part ofany country’s infrastructure. And inmany years to come there will, all over

the world, remain a big need for concretepipes, manholes and related products.

One major reason is the growingurbanisation, which means people moving tothe cities, and this will grow the demand forinfrastructure development like housing,transport systems and services like watersupply systems, drainage systems andsewage systems. Also climate change willplay a big role in the future demand forinfrastructure development. Theprecipitation patterns are changing andmany existing drainage systems will need tobe upgraded and expanded toaccommodate the changes. As concrete isthe strongest, most flexible and economicbuilding material for infrastructure products,these circumstances inevitable will maintainor increase the need for concrete pipes. Thisalso lead to companies will be looking toinvest in new production plants for theseproducts to cover the market demand and tobe competitive.

Key is proper planningSo what should a potential investor in

concrete pipe production consider in order tobe able to meet the demands of the future? A good idea would be to also check out thetrends in infrastructure development in othercountries. An expert likeHawkeyePedershaab that has built concretepipe plants all over the world can be reliedon their experience and know-how to investin pipe production.

Torben Morch, director of globalmarketing at HawkeyePedershaab, explains,“In most markets there are existingspecifications for concrete pipes in place, andit is relatively easy to configure a pipe plantthat will honour these specifications. Butmost markets go up and down and youprobably would like to have some flexibilityin your plant to be able to diversify into otherproducts if the markets shift. And this iswhere we know we can add a lot of value toour customers.

“First, we have the widest range ofmachines in the industry so we have a solution to every customer and everysituation. Secondly, from our experiencesaround the world we can bring informationabout new products and new trends in theindustry to the table so that the pipe producerwould have an idea of what direction themarket could be going. These two things puttogether give any investor the security fortheir investment they are looking beforeputting a lot of capital into a new plant.”

Where could the market be goingThe traditional concrete pipe products aredrainage pipes (culvert pipes) and sewagepipes (spigot and socket pipes) together withmanhole products. Products growing inpopularity are also jacking pipes or microtunnelling pipes for applications where it isnot possible to install pipes in open trenches.All these products are circular and havetraditionally been manufactured withspinning technology. In more and moreplaces, the spinning technology has been —or are being replaced — with vertically

drycast production technology because this,compared to spinning technology, offersclear advantages such as higher productivity,lower production costs and safer production environment.

Other products growing in popularity areHDPE or PVC lined concrete pipes forapplications where the environment is moreaggressive and also concrete box culverts,which are used for road underpassings ofwater, pedestrians or even electricalinstallations. All these products can also bemanufactured with the vertically drycastproduction process, but cannot bemanufactured using the spinning process.

“It is very important to be aware of thetrends in the infrastructure markets whenchosing the production technology for a newplant”, Morch explains.

“We have seen markets change many timesand we will without any doubts experience itagain. Then it is nice to see companies whoare able to adapt to the changes using ourequipment and put new products on themarkets. It also makes us proud when ourcustomers are successful”. �

The traditional concrete pipe productsare drainage pipes, i.e., culvert pipes


Mining Indaba will see an array ofglobal and regional industry leadersand experts for the 2016 Investing in

African Mining Indaba that will take placefrom 8-11 February in Cape Town, South Africa.

The speaker line-up is set to reflectinvestment opportunities available as well asthose beyond the current mining cycle. Thefour-day conference programme will take a close look at how the industry can improveoperational efficiencies, evaluate how to bestmitigate risks associated with investing in thesector, and to identify the critical partnershipsfor ensuring the development and futuresustainability of mining in the years to come.

Some of the key speakers include OliverAndrews, executive director, Africa FinanceCorporation; Tendai Biti, former financeminister, Zimbabwe; Harry G Broadman,director, Council on Global Enterprise andEmerging Markets, Foreign Policy Institute,Johns Hopkins University; Mark Cutifani, CEO,Anglo American PLC; Alan Davies, chiefexecutive, Rio Tinto; Makhtar Diop, V-P, Africa,World Bank Group; Robert Friedland,executive chairman and founder, IvanhoeMines Ltd; Srinivasan Venkatakrishnan, CEO,AngloGold Ashanti Ltd, among others

“Setting the benchmark as the world-classmining investment event and presiding asthe convener of global and influential deal-makers to provide the platform that channelsbillions of dollars in capitalising the Africanmining value chain remains our core focusand we intend to deliver on this promise forthe 2016 annual conference,” says JonathanMoore, managing director of Mining Indaba.“The programme will include internationalspeakers providing visionary keynotes,insightful panel discussions, personalisednetworking elements, and unparalleled deal-making across Africa’s mining industry.”

According to a recent study byPricewaterhouseCoopers, the 2015 financialyear has proved to be extremely challengingfor South Africa’s mining industry. Local costpressures, labour action, and a continuingdownswing in commodity prices haveresulted in shrinking margins and impairmentprovisions. Mining companies are grapplingto improve productivity in order to addressthe demanding global and local mining environment.

These are some of the findings from PwC’sseventh edition of ‘SA Mine’, a series ofpublications that highlights trends in theSouth African mining industry..

Michal Kotze, PwC African mining industryleader, says, “The message to miners is clear— Continue to focus on costs, refocus onyour core business and carefully evaluategrowth opportunities. It certainly will makefor some interesting planning and forecastingdiscussions in the coming year.”

Market capitalisationThe 2015 financial year saw the decliningtrend in market capitalisation continue withfew, if any, companies left unscathed. Marketcapitalisation for the top 35 companiesdeclined to US$25.14bn mid-last year ascompared to US$41bn in June 2014.

Although iron ore and coal prices were themost severely impacted, platinum and goldmining companies have not escaped thecontinuing downward slide in commodityprices. South Africa’s main revenuegenerating commodities haven’t experiencedreal prices as low as those experienced in2015 in ten years, and it is not certain yet if orwhen the prices will start to recover.

Contribution by commodityDespite a continued reduction in prices, coalremains the highest earning commodity inSouth Africa. Coal had a solid performanceover the last decade, with marginal increases

Mining IndabaMInIng

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Mining Indaba looks toboost ailing industryThe annual conference will bring in top global experts to provideextensive insight on how to improve mining sector and mitigatefinancial and operational risks

Mining companies in Africa are grappling to improveproductivity in order to address the demanding globaland local mining environment. (Photo:NooScapes/Shutterstock)

www.africanreview.comAfrican Review of Business and Technology - February 2016

S10 ATR Feb 2016 Mining_Layout 1 26/01/2016 14:56

in production in the last few years. The long-term decline in gold production wastemporarily halted in the last two years. Thisdecline is indicative of the ever-increasingdepths of existing mines, technical difficultiesexperienced by start-up operations and a continually growing base. Platinum groupmetal (PGMs) production has been severelyimpacted by industrial action since 2012 andby mine enclosures in the low-priceenvironment. In the absence of a meaningfulprice increase, it is unlikely that platinumproduction levels will increase from thecurrent lower base.

Financial performance“Financial performance for the SouthAfrican mining industry in 2015 wasextremely challenging and downcast,” saysAndries Rossouw, PwC Assurance Partner.This year’s cash flow is the worst since thefinancial crisis in 2008 and reflects themargin pressure and liquidity concernsexperienced by the industry.

Revenue rise by a mere four per centOperating expenses increased by 14 percent, which is higher than the 13 per cent ofthe previous financial year. However, when

companies affected by the platinum strikeare excluded, the increase climbs to 15 percent. Labour costs still remain the biggestcost component in the local miningindustry in the continent. The share oflabour costs decreased marginally from 47per cent to 45 per cent in the current year.

Integrating risk into business strategyWhen one compares the risks facing themining industry from the prior year to thecurrent year, overall they have not changed.What has changed is the priority ofrankings allocated to the different riskexposures. In the current year, mostcompanies increased their focus onenvironmental compliance and liquidityrisk. Rossouw adds, “Many miningcompanies are in the process ofrenegotiating the terms of their debtfacilities with financial institutions, or willbe doing so in the near future. Given thecurrent environment of low commodityprices and high production costs, it seemsinevitable that some companies may not beable to make large terminal repaymentsfrom profits and may have to enter intonegotiations with loan providersin order to agree on more workable agreements.”

In addition to the high-profile risksidentified, the study also anticipated otheraspects and risks that are likely to arise inthe coming year. Some of these include:uncertainty on the Mining Charter reportingoutcome, water scarcity, and productivitychallenges at selected mines. �

MInIngMining Indaba


Labour costs still remain the biggest cost componentin the local mining industry



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In the coal processing industry, the totalcost of ownership model is heavilydependent on strategies that lower the

initial capital cost of replacement screenmachines. Coupled with this is an emphasison an improvement in the overall durabilityof the traditional coal dewatering screen,which will then facilitate lower operating costs.

According to Kurt O’Bryan, Weir Mineralsglobal product manager for screens andscreen media, achieving these goals ispossible by carefully and strategicallymatching solutions to specific customerneeds and applications. He notes that thecompany’s latest developments in coal screenmachine technology are focused onincreasing the size and mechanical durabilityof its coal duty vibrating screen line. TheEnduron product range (formerly known asLinatex) from Weir Minerals concentrates on increasing throughput and decreasing downtime.

The supply and installation of Linatexscreening equipment in the coal industryspans a number of decades. The first Linatexdewatering screens were supplied in 1983 ina coal application in South Africa to AngloAmerican Coal’s Kleinkopje operation. Linatexdewatering screens have since beensuccessfully supplied for fine coalapplications where they have significantlyreduced the moisture content of the finesproduct, O’Bryan adds.

Over 450 Linatex banana and horizontalscreens in single and double deck format,sieve bend static screens and horizontalrotary screens have been supplied to the coalindustry for applications ranging fromprimary and desliming to dewatering for finalproduct. The customer list includes AngloCoal, BHP Billiton (now South 32), Exxaro,JHDA and Portaclone.

Winchester Maphosa, Weir Minerals Africaproduct manager for comminution andscreens, says, “Weir Minerals Africa continues

to provide support for these screens and, in a number of installations, the screens haveoperated for in excess of 10 years without anyreplacement necessary.”

Another brand within the Linatex rangefrom Weir Minerals recently launched in theNorth American coal market is the highperformance Fusioncast polyurethane screenmedia panels. The material is designed tomaximise service life through superiorabrasion resistance, a critical factor in coaldewatering. The product’s properties andwear characteristics make it ideal for use in a number of coal applications including rawcoal refuse screens and fine screening.

“In field trials it was confirmed that theproduct exhibits wear life advantages of up to50 per cent when compared to injectionmoulded polyurethane screen media panels.This results in a significant time and costsaving for customers. Added operationalflexibility is provided by the product beingsupplied with a wide range of openings forseparations as coarse as up to 25 mm,” says O’Bryan

In 2014 Weir Minerals Africa aligned itsscreens brand with Enduron comminution

equipment, allowing the company to providethree to 4.3 metre wide screen designs forlarge modular coal plants. O’Bryan notes thatthe Enduron VD dewatering screen range hasbeen designed to ensure that maximumefficiency and lowest cost of ownership isachieved. Enduron products aremanufactured according to ISO 9001:2010 standards.

Featuring an innovative 45° feed section,the Enduron screen’s feed profile increasesthe screening area and the dewateringcapacities, using high feed end velocities toaid in the dewatering process. The main deckof the screen slopes upwards to maximisesolids retention and dewater the cake bed.

The lightweight Enduron VD dewateringscreen is suited to applications in the sandand aggregates, and mining and mineralsprocessing industries and can be suppliedin variations from 0.3 to three metres wide.

O’Bryan concludes by saying, “All coaldewatering screens in the Weir Mineralsrange across the globe are backed by thetechnical expertise of our team, together with a pre- and aftermarketsupport system.” �

IndabaMInIng

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Decreasing total cost ofownership in coal plantsWeir Minerals coal dewatering solutions focus on machinedurability for processing

The Enduron product range (formerly known as Linatex) from Weir Mineralsconcentrates on increasing throughput and decreasing downtime

www.africanreview.comAfrican Review of Business and Technology - February 2016


MInIngIndaba


London-listed diamond developmentcompany focussed on West Africa StellarDiamonds plc has mined a 55 carat

diamond during trial mining at its 75 per centowned, five-hectare Baoulé (Project)kimberlite pipe in Guinea.

According to the company, the recoveryconfirms the presence of large stones in thepipe and there has been a continued recoveryof high quality gems of up to 12 carats. Thetrial mining has yielded a total of 8,043 caratsto date at an average grade of 12.7 cpht

The revenue from Baoulé diamond sales todate of US$700,644 from 5,173 carats and theobjective to mine and process 100,000tonnes of kimberlite is currently at 63 percent complete.

Stellar Diamonds plc chief executive KarlSmithson said, “We are extremely encouragedto have recovered this 55 carat stone as itconfirms that the Baoulé pipe is a possiblesource of the large diamonds, which havebeen mined in alluvial deposits downstreamof the pipe for many years. We will carefullyexamine the stone which appears to have a ‘boart’ exterior and a potentially betterquality diamond on the interior. Gem qualitydiamonds continue to be recovered from theBaoulé kimberlite up to 12 carats in size.

“With approximately 63 per cent of our trialmining and processing at Baoulé nowcomplete, subject to the company havingsufficient working capital, we are currently ontrack to finalise the trial mining and processing

of 100,000 tonnes in Q3 and look forward toproviding further updates in due course.”

Trial mining of the Baoulé kimberlite piperesumed in late November 2015 after therains, with stripping and mining of thewestern lobe. The kimberlite material remainspredominantly weathered, with increasingamounts of friable harder primary kimberliteat depth.

The overall objective of the trial miningexercise is to extract and process up to100,000 tonnes of kimberlite in order todetermine with confidence the diamondgrade and ultimate value of the pipe. Thecompany has remained on track to achievethis objective, having processed over 63,000dry tonnes of kimberlite, thus far. �

55 carat diamond foundin guinea


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Just over a decade ago, South Africa’sCentre for Sustainability in Mining andIndustry (CSMI) was established,

funded in part by BHP Billiton amongstother majors.

CSMI has an excellent reputation fortraining and research on sustainabilityissues affecting mining.

Prof Caroline Digby took over as thedirector in January 2014. As a dedicateddevelopment economist, she had spent theprevious nine years at the world-renownedEden Project, a multi-purpose regenerationscheme for a huge pit left redundant bychina-clay extraction operations. Eden isalready one of the UK’s leading visitorattractions, but offers a lot more than that.

She describes her work as ‘Post-miningregeneration and how to build partnerships

and collaborations that deliver grassrootscommunity development and ‘greeneconomy’ jobs.’

On her recent appointment she says, “Weare currently working on a plan to developa cross-disciplinary programme on mineclosure and post-mining land use, whichwill allow us to draw in a whole range ofdifferent disciplines.”

Digby notes that the CSMI endeavours toproperly define what sustainability meansto the mining industry and its stakeholders,as people often attach personalconnotations to the term.

So the 9th International Mine ClosureConference was hosted by Wits University,where the centre is located, inJohannesburg a year ago. CSMI wascommissioned by AngloGold Ashanti to

address some of the research and trainingissues outlined in the annual report. As aresult, the company’s head of sustainabledevelopment David Noko is quoted onsome of its ongoing activities.

“Times are becoming ever morechallenging for the mining sector,” says thedirector, listing adverse factors such as lowprices and declining productivity. “So thereis a huge agenda, many contested issuesand much work to be done. We have nowfocused our work programme under threeheadings.” The centre concentrates onhealth/safety (H&S) issues, environmentalpolicy/governance/management, andsocio-economic development both locallyand globally. Prof Digby adds that withinSouth Africa particular attention has to bepaid to the transformation of society, still

ResearchMInIng

54

Out of EdenSouth Africa’s SMI Centre helps institutions, companies and others promoteresponsible practice in mining – including post-closure issues

CSMI plans to develop a cross-disciplinary programme on mineclosure and post-mining land use (Photo: Vladimir

Nenezic/Shutterstock)



impacted by the country’s unfortunate past.“A new future direction” is described forthe centre by Prof Cuthbert Musingwini,head of the Wits School of MiningEngineering, which also oversees theCentre for Mechanised Mining Systems.New themes of CSMI’s overallprogramme include —

� Analysis of the contribution of mining todevelopment throughout Africa, withinthe context of wider growth

� The role of local H&S regulations� Post-closure land use issues� The role of small-scale mining in SSA as

a whole, including inter-connections withoperations on a larger scale.Research in this area includes the

effectiveness of outcomes-based OHSlegislation in South Africa, a review of theimplementation of mineworkers’ right torefuse dangerous work, the efficacy ofhealth and safety officials in promotingworker participation in OHS principles anda review of OHS performance data in South Africa.

The second area of applied research andtraining comprises environmental policyand governance, which is concerned withthe impact that mining has on thebiophysical environment. This research fieldhighlights different regional approaches tomanaging the environment around miningoperations and measuring the miningindustry’s environmental footprint.

The third area of applied research andtraining studies socioeconomicdevelopment, which is concerned with howmining impacts on local communities,regional prosperity and the national economy.

This type of applied research projecthighlights the changing socioeconomic andindustrial relationships in South Africa, aswell as regulations on artisanal and small-scale mining operations in Southern Africa.

Further, the projects propose ways inwhich the local mining industry cancontribute positively to broad-based blackeconomic empowerment and socialdevelopment in South Africa; they also dealwith best practice with regard to mine closure.

Training is a key part of the centre’sactivities, and already this year it has beenworking with the Mine H&S Council as a local source of expertise. In 2014, CSMIformed a partnership with Synergy Globalto develop interdisciplinary courses incompany/community relationshipdevelopment, specially designed to copewith the operational risk-managementissues faced by the extractive industries.Participants have already attended from

more than a dozen sub-Saharan countries,including Ethiopia and Ghana.

Kabanga Nickel’s Theophil Celestine(Tanzania) says, “It was very productivetraining. We can change our routine style of working as community relations practitioners.”

Conferences play a key role in extendingand disseminating the Centre’s researchfindings. Two years ago it had helpedorganise Southern African Institute ofMining & Metallurgy’s first Mining,Environment & Society event. And in 2014 itwas involved in the special Mine Closuregathering hosted by Wits on behalf of theAustralian Centre for Geomechanics, on the

theme of ‘Leaving a positive legacy’. A list ofits latest conference presentations isincluded in the latest report.

“We actively seek exchanges and thesharing of experience and perspectiveswith other African universities and centresof excellence across the globe,” thedocument says, citing recent collaborationswith both CSIR and Mintek.

It concludes, “Responsible mining ispivotal to Africa’s emerging economies as itfosters social cohesion and developmentwhile ensuring acceptable returns oninvestment.” CSMI’s “Holistic approachtranscends individual mines to addressboth sectoral and regional application.” �

MInIngResearch


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56

SOLUTIONS

TrainingCaterpillar has launched the pilot-phase ofthe Technicians for Africa Project, an e-learningwebsite for people who aspire to become a technician in Nigeria, Mozambique and DRCongo. The website, which is available inFrench, Portuguese and English, is leveragingCaterpillar’s existing, state of the art e-learningsolutions and makes them available for anyonein the three countries that has the ambition to develop a career as a heavyequipment technician.

“There is a vital need for skilled labour acrossthese sectors in Africa. We are proud to see thelaunch of this initiative,” said David Picard,regional manager responsible for Caterpillar’sdistribution in Africa.

The pilot websites in English, French andPortuguese have already been launched andduring the pilot stage they will be available in

Nigeria, DR Congo and Mozambique. Theaccess to the basic Caterpillar Techniciancurriculum is free.

“Many school leavers are unable to enterthe job market because they have been unable

to receive enough technical knowledge. Inschools, the latest technical information isn’talways available,” explained Maurice Manders,Caterpillar’s learning and developmentmanager and also team leader of the e-learningproject. “Offering an Internet-based basiclearning curriculum that is available to schoolsand students is an efficient solution to thischallenge.”

The new free e-learning curriculum, whichcontains 18 modules of easy-to-understand,technical insights about safety and basicfundamental systems like electrical, hydraulicsand powertrain, complements the paid-for e-learning platforms that are available toCaterpillar’s dealers and customers. Payingcustomers get access to a wider range of e-learning and more functionality of the learningmanagement system.

Caterpillar’s free e-learning website for future technicians in Africa

The new free e-learning curriculum contains 18modules of easy-to-understand, technical insightsabout safety and basic fundamental systems


S11 ATR Feb 2016 Solutions_Layout 1 26/01/2016 10:03

http://www.helukabel.com/za/home.html

57

SOLUTIONS

MachiningPrecision calibration for screw connectionsAn estimated twelve kilos of screws are used tobuild a medium-sized vehicle. The safety risk‘danger to life and limb’ applies to 15 per centof these. Precision and stability are vitallyimportant for these components. In order toensure the quality of screw connections, thetools responsible must undergo regular testsand calibration procedures. Usually theseservices must be carried out by themanufacturers. Deprag Schulz GMBH & Co alsooffers a diverse range of service options relatingto calibration and since January 2015 thecompany has been offering on-site calibrationwith its mobile service unit.

“Since the introduction of this option, around30 per cent of all calibrations have beenprovided on-site at the customer’s facilities,” saidTobias Dirrigl, application technician, ECscrewdriving technology, at Deprag. The trend

is increasing. Many well-renowned clients havealready tested the calibration service, one ofwhich is Valeo Schalter und Sensoren GmbH.

Deprag service test-driveValeo is an international supplier in theautomobile and commercial vehicle industry,

with subsidiary operations in Morocco andTunisia. Within the business sectors of comfortand driver assistance systems, drive systems,thermal systems and sight systems, Valeo hasdeveloped innovative solutions forimprovements in comfort and safety for vehicles.

“The calibration of individual measurementdevices and measurement components in ourautomated systems and manual productionsystems is an essential service. It provides reliablefunctionality and totally replicable accuracy fortools (such as the Deprag screwdriver), whichdirectly influences the quality and function ofour products,” explained Philipp Geyer,production planner for Valeo Radar Systems.

It is only by using precision tools that falsemeasurements, production problems or evenclaims for compensation can be prevented.



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Volvo PentaPROFILE

58 African Review of Business and Technology - February 2016

Volvo Penta has launched the second generation of its fuel-savingstart/stop function for industrial engines. First introduced in 2013, thefeature is now available for Stage IV/Tier 4 Final D5, D8 and D11engines, as well as Stage III/Tier 3 D11 engines.

For owners and operators, the benefits of the start/stop functioninclude reduced fuel consumption, noise and emissions.

The feature works by shutting down the engine during extended idleperiods and turning it back on when the equipment needs to resume itsoperations. This is increasingly common in automobiles, and VolvoPenta was one of the first companies to integrate the function intoindustrial off-road engines.

The system provides owners with a good return on investment bysaving between five and 15 per cent in fuel costs – depending uponhow much idling there is in a given application.

Emissions are also reduced, while a reduction in idling keeps theengine-aftertreatment system at a better working temperature. Thisleads to a more efficient conversion in the SCR-catalyst and lower NOxemissions. With the engine turned off when it’s not needed, excessnoise is also reduced.

New benefitsThe latest generation of start/stop has been updated with newfeatures. The hardware has been integrated into the engine ECU forgreater reliability; a stronger, more robust starter motor is nowincorporated which ensures durability; and a battery voltage monitor

allows the system to check the battery status and ensure that there isalways enough capacity for a re-start.

As with all Volvo Penta off-road industrial engines, those fitted witha start/stop system are covered by the company’s full two-year, 3,000-hour international or North American warranty.

David Hanngren, product planning manager at Volvo Penta, said,“Start/stop is one of our latest innovations for the off-road market. Wedeveloped this feature in close cooperation with our OEM customers.With our approach, they benefit from using start/stop as an integratedpart of our offer, providing a proven solution that is fully protected byour warranty coverage. It is a winning combination.”

New start/stop feature for vehicle engines

www.africanreview.com58

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