african review november 2014

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

Construction:A tool for East African telegraph poles P52

Power:Investment in geothermalenergy supply P26

Enterprise

mobilitymarkets

Ecobank’s new lookunder Albert Essien

P30

P26

Business:Challenges to WestAfrican economies P20

African Review

of Business and TechnologyNovem

ber 2014Volum

e 50 Num

ber 3www.africanreview

.com


November 2014

www.africanreview.com

50 yearsServing business in Africa since 1964

ATR�Nov�2014�-�COVER_Layout�1��22/10/2014��14:32��Page�1

S01�ATR�Nov�2014�-�Start_USE_Layout�1��24/10/2014��10:22��Page�2

Editor: Andrew [email protected]

Editorial and Design team: Bob Adams Hiriyti Bairu, Sindhuja Balaji, Thomas DaviesRanganath GS, Prashant AP, Rhonita PatnaikLouise Quick , Prasad Shankarappa, Zsa TebbitLee Telot and Ben Watts

Publisher: Nick Fordham

Publishing Director: Pallavi Pandey

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UAE: Camilla CapeceTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]: Steve ThomasTel: +44 20 7834 7676 Fax: +44 20 7973 0076Email: [email protected]: Michael TomashefskyTel: +1 203 226 2882 Fax: +1 203 226 7447Email: [email protected]

Head Office: Alain Charles Publishing Ltd, University House,11-13 Lower Grosvenor Place,London SW1W 0EX, United KingdomTel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215,Loft No 2/A, PO Box 502207, Dubai Media City,UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261Production:Nikitha Jain, Nathanielle Kumar Donatella Moranelli , Nick Salt, Favian White and Sophia WhiteE-mail: [email protected]

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

ISSN: 0954 6782

UP FRONT

3

REGULARS

FEATURES20 Business and Finance

Business opportunities in Nigeria; analysis of the key challenges to the continued rise of WestAfrican affluence; and Ecobank CEO Albert Essien discusses his work

30 TechnologyThe rise of enterprise mobility and the emergence of advanced data infrastructure andsolutions to serve connected African businesses

34 PowerPower for data centres; Icelandic investment in African geothermal operations; research on thevital components of the continent’s power generation and energy distribution; and monitoringof machine and plant conditions

42 ConstructionThe latest in screw technology and machine control solutions; rugged computing forconstruction workers; investing in transport infrastructure; housing microfinance in Egypt;managing urban environments in Tanzania; and an innovation to transport and delivertelegraph poles throughout East Africa

58 MiningAn appraisal of the key innovations at Electra Mining 2014, the equipment and solutions thatmay be expected to help shape African mining facilities, business models and processes in thenear-future

04 Agenda: Industry and innovation,across Africa

14 Bulletin:Communications, waterand energy management

63 Solutions:New excavators andpower generators

Contents


Construction:A tool for East African telegraph poles P52

Power:Investment in geothermalenergy supply P26

Enterprise

mobilitymarkets

Ecobank’s new lookunder Albert Essien

P30

P26

Business:Challenges to WestAfrican economies P20

African Review of Business and Technology

Novem

ber 2014Volum

e 50 Num

ber 3www.africanreview

.com


November 2014


50 yearsServing business in Africa since 1964

� � � � � �� Page�1

Editor’s Note

Cover picture: Handheld GroupInset, top right: GCISInset, bottom left: JCB

P23

P58

This issue covers West African economic and commercial concerns, and addresses several of thecontinent’s staple industries and available solutions and services - in finance, technology,

power, construction and mining.The numerous business opportunities in Nigeria and Ghana, for example, are assessed, betweenpages 20 and 25 - with the resurgence of Ecobank highlighted in an interview with the bank’sCEO, Albert Essien, on pages 26 to 28. Also examined, between pages 30 and 33, aredevelopments in technology for corporates, as seen in the rise of enterprise mobility served bynew data centre architectures.With respect to power generation and the distribution of energy, between pages 34 and 40, witharticles on Icelandic investment in African geothermal infrastructure, and on condition monitoringof power plant equipment for stable energy supply. From page 42 to page 56, the he constructionsector is comprehensively addressed, with articles on screw technology, equipment for machinecontrol and rugged computing - and on project work for transport, urban environments and otherforms of national infrastructure. Mining is covered between page 58 to page 62 with an appraisalof the innovations on show at Electra Mining recently.

Andrew Croft, Editor

African Review of Business and Technology - November 2014

Audit Bureau ofCirculations -BusinessMagazines


Events

Serving�the�wor ld�of�business


Amultiline property and casualty insurer,ACE Group has launched Image

Protect, an innovative insurance productdesigned to help companies across theMiddle East and North Africa (MENA) regioneffectively manage their reputational risks.

A recent study conducted by ACE withbusinesses across 15 countries, includingseveral within the MENA region, found that92 per cent of companies believe thatreputational risk is the most challengingcategory of risk to manage.

ACE Image Protect has been designed toaddress this concern by providing cover toprotect businesses financially, should anaccident happen that injures their customers,other visitors or staff on their premises or anyother covered location. More specifically,companies can benefit from:

Immediate financial assistance, enablingthe company to make cash payments tocustomers, and visitors who may havebeen injured on the premises, in cases ofaccidental death and accidentalpermanent or partial disability.

A dedicated budget for incidentresponse, enabling a company to hire theright experts who can help it to reducereputational risk in the aftermath of amass-loss incident, for example throughproviding professional counselling and PR/communications services.

A choice of four coverage optionsaccording to the company’s individual needs.

Steve Dixon, managing director for ACEin MENA, said, “In today’s highly connected,24/7 news-cycle world, reputational risks are akey source of concern for MENA companies asthey can cripple their most valuable asset:their image. This can be a particular challengefor those with premises or facilities that arefrequently visited by the public, and thosewho may not have the in-house resourcesthey may need to deploy in case of anincident. ACE Image Protect providescompanies in MENA with the support andconfidence they need in order to deal with arange of incident-related reputational risks.”

IFC has stepped up its work to encourage cross-border investments between emergingeconomies in the Middle East and North Africa and other developing regions over the pasttwelve months.

During the 2014 financial year, IFC committed around US$640mn to projects that help MENAinvestors expand into neighbouring countries and other parts of the developing world. That isan increase on the US$500mn invested in the previous year, and demonstrates IFC’s support forindustry leaders keen to share their knowledge and skills in new markets, create jobs, andboost growth.

“MENA still lags behind the rest of the world when it comes to economic integration,” saidMouayed Makhlouf, IFC director for the Middle East and North Africa. “One of our priorities is tosupport regional champions as they expand within the region and beyond, supporting them asthey become global leaders.”

Major successes this year include an investment of US$100mn in ACWA Power, which willhelp the company significantly increase the amount of power it generates from renewablesources and meet the growing energy demand throughout MENA.

4

NEWS

The World Bank Group has approved aUS$519mn project to support Morocco’songoing efforts to reduce its dependency onfossil fuels by developing its renewableenergy resources. The project will back thegovernment’s strategy of harnessing powerfrom the sun through the use of concentratedsolar power technology.

Morocco is the Middle East’s largest energyimporter, and depends on fossil fuel importsto generate over 97 per cent of its energy. TheNoor-Ouarzazate Concentrated Solar PowerProject will support the Moroccan Agency

for Solar Energy to finance the expansion ofMorocco’s first utility-scale solar energycomplex, helping increase its capacity andoutput, especially during peak hours

“Morocco stands at the forefront of climate-friendly policies in the region,” said IngerAndersen, World Bank Regional Vice Presidentfor the Middle East and North Africa. “Thecountry is well-positioned to benefit from itshead-start at a time when other regionalpowers are beginning to think more seriouslyabout their own renewable energyprogrammes.

The African Development Bank Group(AfDB) has concluded that its programmesand operational activities in Sudan throughto 2016 will require US $133.60mn inexceptional support. This finance is structuredto bolster strategic technical assistance,capacity building and targeted operationscritical to preventing Sudan from sliding intodeeper fragility.

The AfDB board has recognised that, whileSudan has made good progress on both the

political and economic fronts, dauntingpolitical challenges still remain. However, theboard has also observed that the country hasbeen eager to re-engage with the internationalcommunity. The most recent AfDB briefing onSudan states, “This difficulty to make headway,especially on debt relief front, comes with therisk that the country could slide into deeperfragility that could have regional implicationsand painful costs. This risk is exacerbated bythe conflict in South Sudan.”

ACE launches ImageProtect insurance


Agenda / NorthSolar complex to expand, to servemore Moroccans with clean energy

More MENA investment from IFC

Sudan to get exceptional support



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iSAT Africa is working with Eutelsat Communications on free-to-air delivery of African and international digital TV channels in Kenya

and across East Africa in order to accelerate the move towards a fullydigital broadcasting environment in the region.

The two entities are using the high-power African service area ofthe Eutelsat 70B satellite to broadcast a platform of channels tohomes beyond range of terrestrial reception.

The first channels include Family TV and K24. Homes receiving theplatform can pick up channels without subscription using a maximum90cm antenna and a digital free-to-air box that can be purchased offthe shelf.

iSAT Africa has also agreed terms with Eutelsat for use of capacityon the Eutelsat 3B satellite for contributing channels for aggregationin Nairobi and distribution across Africa, the Middle East, Europe andSouth America, covering a vast catchment area of broadcasters.

Eutelsat and iSAT Africa are combining their respective skills for thisnew venture in East Africa: Eutelsat bringing its extensive experienceof digital delivery in Europe and North Africa, including in France,Ireland, Italy and Algeria, and iSAT Africa its track record andreputation as a leading satellite service provider and video systemintegrator in Africa.

Rakesh Kukreja, MD of iSAT Africa, commented, “We envisagethat media houses in Africa will see digital migration as anopportunity to expand across more territories and thereforeincrease viewership. This is a great opportunity for any mediahouse to cover the East Africa community and more than 160mnSwahili-speaking people...This will allow media houses tooutsource technical service delivery and focus on their corebusiness of content management."

6

NEWS

The environmentally friendly eco solutionsbusiness of Panasonic is accelerating growthin East Africa, beginning with the electricalconstruction materials market in Tanzania.This new pew phase sees innovative, highlyefficient and durable products madeavailable under a common platform -including wiring accessories, protectiondevices like circuit breakers, distributionpanels and air moving solutions likeventilation fans, ceiling fans, electric fans,stand fans, etc. Tatsuya Kumazawa, director,eco solutions category at Panasonic

Marketing Middle East & Africa, said,“According to a recent report published bythe African Economic Outlook (AEO), theeconomy of Tanzania is projected to grow byaround seven per cent in 2014 and 2015. Thecountry is currently witnessing an expansionin the public investments as well as relatedinvestments aimed at stabilizing theeconomy in general. This paves the way for abuoyant electrical construction materialsindustry.”

Mr Kumazawa added that Panasonic plansalso “to launch in Kenya and Uganda”.

Government services contractor Engility Holdings has been awarded a US$24.6mn contract to provide technical advisory services to the USAgency for International Development (USAID) and the Rwandan government as the two work together to strengthen the agriculturalsector in that country.

Specifically, Engility advisers will support Rwandan government agencies’ efforts to increase smallholder farmer incomes by promotingprivate sector investments from international and domestic sources. USAID defines a smallholder farmer in Rwanda as an individual whogenerally owns about three-quarters of a hectare, or less than two acres. The Rwandan government’s vision is to transform ruralagriculture to a market oriented, competitive and high-value sector, with the ultimate goal of improving local food security andincreasing incomes of smallholder producers.

iSAT Africa and Eutelsat at work on digital TV

A broad spectrum of wiring accessories, and protectiondevices like circuit breakers and distribution panels withhigh efficiency and durability

iSAT Africa has agreed terms with Eutelsat for use of capacity onthe Eutelsat 3B satellite


Agenda / EastPanasonic’s presence in Tanzania

Engility set on Rwandan agriculture



� ��

New Telco South Africa is facilitatingthe IP-based media CDN access to

Chinese expatriates across the Africancontinent. This has been enabled by theestablishment of a point of presence(PoP) for LiveCom at the Teraco datacentre in Johannesburg. LiveCom, a HongKong-based service provider, deliverstelecommunication services forenterprises and telco carriers and acrossthe globe. New Telco South Africa isassisting LiveCom to enter into theAfrican market with colocation,equipment hosting, interconnects andmanaged services that enable media CDNaccess to the continent.

“In order to make Internet mediastreaming of the news of localcommunities and regions more convenientand rapid to transmit to Chinese contentproviders and introduce to ordinaryChinese public, it was necessary forLiveCom to establish hosting points inAfrica. The PoP in Johannesburg is the firststep in this process. As a re seller of Teracodatacentre space and a leading provider ofcarrier neutral co-location solutions, wewere perfectly positioned to assist,” saidEckart Zollner, head of businessdevelopment at New Telco South Africa.

LiveCom has currently rented rackspaces in the Teraco datacentre inJohannesburg. New Telco South Africa isalso providing all service and maintenanceof the equipment, and addinginterconnects to providers as and whennecessary. The LiveCom PoP facilitated byNewTelco was installed in February 2014and has been live since March. LiveCom isnow looking to expand its offering throughdeployments in other parts of Africa, andJasco will be providing the backhaulservices between these PoPs.

"Ordinary citizens in China Mainlandnow can know what is happening in Africaand view the life and stories across thecontinent more quickly than before," saidYang Zhengrong, COO of Livecom Limited.

Now in its third year, the Junior Mining &Exploration Conference & Exhibition, hasfirmly established itself as an importantindustry gathering for junior miners in SouthAfrica. Taking place Bryanston, Johannesburg,from 4 to 6 November 2014, this year’sprogramme was developed in consultationwith the members of the 2014 Junior MiningAdvisory Board - a process ensuring relevanceof the topics and presenters alike.

This year’s event was concerned withshaping the future of the industry, byfacilitating an understanding of theopportunities available to junior miners - whoface numerous and often harsh challengeswhen operating in diverse landscapes. In thisregard, Kgomotso Tshaka of WesizwePlatinum Limited shares expert views andfocuses on the issues pertinent to sustainablecommunity development, and the role juniorminers can play in it.

Tshaka said, “It is this backdrop, which hascompelled the industry to creatively exploreinnovative ways of ensuring that there existsa harmonious environment and relationshipbetween the mining fraternity and mining

communities. Ignoring this can lead to direconsequences. The approach one adopts isirrelevant - whether you are a junior or majorminer; the resultant consequence can bedetrimental to the company, regardless. Theseverity is compounded for a junior minor, asit has limited resources to expand. Juniorminers are exposed to capital risks andfinancial challenges - especially post thefinancial meltdown, as most drive a oneproject concern. Junior miners thus have torun lean operations, with little capacity.”

8

NEWS

A communications service provider, offering integrated solutions to corporate and governmententities, SkyVision Global Networks Ltd (http://www.skyvision.net), a global communicationprovider, has engaged in sponsorship of AfricaCom 2014,which takes place 11-13 November inCape Town, South Africa. In addition to sponsoring the show, SkyVision will further its presenceby both presenting at AfricaCom and VSAT Africa conferences and participating in key panelsessions.

AfricaCom is regarded as the largest, most professional tech event in Africa that welcomessenior decision-makers from across the digital ecosystem. AfricaCom 2014 will be attended byclose to 10,000 participants, many of whom are leaders in Africa’s digital community, supportedby over 300 guest speakers from Africa’s telco sector. This event is an ideal platform to learn allabout new technologies and trends in the communications arena specifically suited to theAfrican market.

“SkyVision is deeply rooted in Africa’s fast-growing telco market and takes active means inbridging the digital divide across its rural areas. We view this event as the ideal venue for us tofurther expand our reach throughout the continent, meeting with customers, partners,prospects, and some of the industry’s foremost decision-makers,” said Dror Limor, SkyVision VPSales & Marketing.

Livecom and NewTelcoenable IP streaming


Agenda / SouthSkyVision sponsors AfricaCom

Social investment andsustainability in mining


Kgomotso Tshaka, Executive Sustainability at WesizwePlatinum Limited


� �� S02�ATR�Nov�2014�-�Agenda_Layout�1��22/10/2014��15:08��Page�9

The Hershey Company has beenpresented with the prestigious P3

Impact award for its CocoaLink mobilephone programme in Ghana.

According toMike Wege,senior vicepresident,chief growth &marketingofficer at TheHersheyCompany, “TheCocoaLinkprogramme’ssuccess ofimproving thelives of small-holder cocoafarmers, their families and communities isdirectly attributable to the power of itspublic-private partnership,. From thebeginning, we believed that a public-private approach would be the mosteffective way to use mobile technology toimprove farming and communities whileenhancing literacy and digital learning.”

Started in 2011, CocoaLink is apartnership between Hershey, the GhanaCocoa Board and the World CocoaFoundation. It provides a free, two-wayinformation exchange between cocoaexperts and cocoa farmers locatedthroughout Ghana. Cocoa experts createweekly text and voice messages based onthe cocoagrowing calendar and farmersuse their own mobile phones to register forand receive the messages. An independent,three-year study in 15 villages during 2014concluded that CocoaLink “significantlyimproved the

behaviour and livelihoods” of cocoafarmers who received weekly messages onbest farming and labour practicescompared to farmers who did not enroll inCocoaLink. Farmers in CocoaLinkcommunities increased their yields by 45.6per cent in three years.

The CWG Academy, which hassuccessfully trained and placed over500 ICT professionals into various fieldsof industry since its formation in 2010in Lagos, has been extended to theother operational bases of thecompany - including Accra, Kampala,Port Harcourt and Abuja. There are alsoplans to incorporate Cameroon by thefirst half of 2015.

The goal of the CWG Academy is tobridge the workforce knowledge gap in Africa by equipping fresh graduates with the requiredskills that will make them employable or become successful entrepreneurs. Of the over 500graduates from the Academy, about 85 per cent have been employed in leading companiessuch as IBM, CWG, MTN, Standard Chartered Bank, Stanbic-IBTC, Chevron, Cadbury,Etisalat, Ericsson and Unilever, while about 10 per cent have opted to become technologyentrepreneurs.

Eager to tell their stories, some of the CWG Academy alumni shared their experiences;Ezekiel Oyerinde presently working with IBM West Africa as a storage systems specialist said,“Though, I have gone to a couple of computer schools, the CWG Academy was the opener forme into the world of endless possibilities in IT. During the interview stage of my previousemployment at MTN, I was pleasantly surprised to see that among those shortlisted, the CWGAcademy graduates emerged tops. I consider myself blessed to have had a solid foundationprovided through this laudable initiative called CWG Academy. I am grateful to CWGmanagement and the Coordinator of the programme.”

With the extension into new frontiers, it is expected that beneficiaries of the Academy willquadruple over the next two years. Laying out the future plans of the project, CWG boss &entrepreneur in residence at CBS, Mr Austin Okere, said, “This project which started modestly asa means of maintaining the steady supply of high skilled engineers to the CWG enterprise hasgrown in leaps and bounds to become a succor for ambitious trainable youth, who wouldotherwise be locked out of reaching their full potential.”

10

NEWS

The European Investment Bank is now set to provide Euro23mn (US$28.9mn) to supportinvestment in one of the largest photovoltaic power stations in sub-Saharan Africa. TheEuro70.5mn scheme will be constructed at Zagtouli on the outskirts of Ouagadougou, thecapital of Burkina Faso, and operated by the national electricity utility SONABEL. The new plantis expected to act as a reference for future solar investment across the continent.

Once operational the new solar plant will significantly increase power generation in BurkinaFaso, reduce dependence on energy imports from Ivory Coast and Ghana and help preventpower cuts. It is estimated that less than a quarter of the country’s inhabitants have access toelectricity. In recent years, power demand in the country has increased annually by 10 per cent;however, power cuts and limited electricity access have seriously hindered economic growth.

“The European Investment Bank is a strong partner for Burkina Faso and this closecooperation over many years has enabled significant investment in new water and energyinfrastructure that has created jobs across the country,” said Lucien Bembamba, Minister ofEconomy and Finance for the Republic of Burkina Faso.

Hershey acknowledgedfor Impact on cocoa

CocoaLink provides timelymessages on planting, pruning,fertiliser use, labour, andimproving farmer and familysafety


Agenda / WestFinancial support for solar project

CWG extends Academy reach


Graduates from the CWG Academy, which isbeing extended


S03�ATR�Nov�2014�-�Bulletin�A_Layout�1��22/10/2014��15:09��Page�11

12

NEWS

December2-3

Mozambique Industry ForumMaputo, Mozambiquewww.mozambiqueindustryforum.com

2-4

GeoPower Global CongressIstanbul, Turkeywww.greenpowerconferences.com

2-4

Valve World ExpoDüsseldorf, Germanywww.valveworldexpo.com

7-11

ITU Telecom WorldDoha, Qatarwww.itu.int

8-10

MEBADubai, UAEwww.meba.aero

10-11

TOC Market Briefing West AfricaTenerifetoc-marketbriefing.com

11-14

MS & Africa Middle EastCairo, Egyptwww.msafrica.net

January20-22

IBC Content Everywhere MENADubai, UAEwww.ibcce.org

20-22

Offshore West AfricaLagos, Nigeriawww.offshorewestafrica.com

22-23

Indian Ocean Ports & LogisticsMaputo, Mozambiquewww.transportevents.com

27-28

Africa Oil & GasLondon, UKwww.africaoilandgassummit.com

28-29

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

Events / 2014 / 2015

African Review of Business and Technology - November 2014 www.africanreview.com

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14

NEWS

Bulletin / CommunicationsMascus makes 300,000equipment adverts online Representing over 6,900 companies, online

marketplace Mascus (www.mascus.co.za),

which facilitates the sale of transportation

vehicles, construction machinery, agricultural,

material-handling and forestry equipment,

has reached a new major milestone in its

growth, with 300,000 online advertisements;

Tim Scholte, Mascus CEO, said, “In the last four

years, we have tripled the number of ads on

Mascus - the most dynamic sectors are

construction, transportation and agriculture.”

Globalstar extends satelliteservices to Southern Africa In partnership with Broadband Botswana

Internet (BBi), mobile satellite services (MSS)

firm Globalstar has commenced

construction of a gateway in Gaborone,

Botswana, to provide a full line of Simplex

services, including Globalstar’s SPOT line of

affordable personal tracking and life-saving

solutions, as well as its line of commercial

Simplex tracking and monitoring solutions;

"We believe that southern Africa is a

significant untapped market for our

traditional MSS solutions and we thank our

partner at BBi for all of their efforts to make

this opportunity a reality," said Jay Monroe,

chairman and CEO of Globalstar.

Unity Bank is better connectedwith SkyVision solutionCommunications provider SkyVision has

formed a partnership with Unity Bank, a

Nigerian retail financial institution, to

connect Unity Bank’s core applications -

including peripheral applications - to its

headquarters, enabling continuous, seamless

business operations in its rural area branches;

SkyVision provided its satellite-based virtual

private network (VPN) services via its local

Nigerian hub to support Unity Bank’s local

area network (LAN).

PAYFORT Launches pay@storeservice in Egypt Arabic online payment service provider

PAYFORT has launched its pay@store service

in Egypt, to help bring the benefits of online

shopping to millions of unbanked Egyptians,


Electronic learning (e-learning) has gained massive traction in

workplaces around the world, though African companies have

been slower to embrace its potential. However, as enterprise software

firm Sage demonstrates, its benefits are clear, and it can offer

organisations more effective, cost-efficient ways of delivering training

and educational content to employees scattered around the country.

Here are five reasons why companies that have not added online

learning to their training approach should consider doing so:

1. The workplace is digital

Today’s businesses depend on digital systems to keep their workflow

going - from cloud-based accounting and payroll systems to

customer-facing e-commerce sites and intranets for their employees.

2. It’s cost-effective

Without downplaying the costs and commitment a successful e-

learning strategy will demand from the organisation, digital delivery

reduces training costs while maintaining or even enhancing the

quality of the learning experience.

3. It’s flexible

E-learning is flexible, both for the organisation and the employee,

because it doesn’t tie training down to rigid times and places.

4. It’s fun and practical

Even if the training is done online, it can still be practical, interactive

and use real-life examples.

5. No geographical barriers

Today, many parts of Africa have broadband Internet connectivity, so

e-learning is a great option for companies with people to train in a lot

of towns and cities.

Ansie Snyders, head of training and seminars at Sage VIP Payroll & HR

Why e-learning is the right training solution for today’s workplace

while boosting Egypt’s e-commerce industry

by allowing merchants to cater to the large

segment of the market that is still dominated

by cash transactions; Omar Soudodi,

managing director of PAYFORT, said, “With

pay@store, unbanked users who don’t have

credit or debit cards will be able to take

advantage of the benefits associated with

online shopping - not least of all comfort and

competitive prices - as they can now access

the variety of products and services available

in Egypt through leading merchants and

service providers registered with PAYFORT

Network.”


S04�ATR�Nov�2014�-�Bulletin�B_Layout�1��22/10/2014��15:11��Page�15

16

NEWS

Bulletin / WaterLowara pumps are designed tosuit several applications By combining high efficiency with high

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options and temperature, the new Lowara e-

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from Xylem Water Solutions South Africa

represents an ideal choice for a vast number

of industrial and building applications -

actual conditions, with case studies sections

provide pictures of pumps in use around the

world, while curves, specs sheets and

drawings can be accessed through the

eCatalog.

Local oily water separationtechnology for global industryThrough its commitment to the localisation,

in South Africa, of its ProSpin oily water

separation solution, environmental

management expert Procon Environmental

Technologies is offering world-class

technology at significantly lowered costs,

with substantially reduced turnaround times;

Procon founder and director of sales &

business development Andy Miller said, “The

ProSpin solution offers considerable local

benefits without compromising on efficiency

and reliability.”

incorporating innovations suxh as mechanical

face seal options to eliminate leakages; when

combined with Xylem Water Solutions South

Africa’s Hydrovar pump controller, the Lowara

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per cent to save as much as 82.5 per cent of

power consumption, compared to a

traditional pump.

Pioneer pumps new iPhone apphelps calculate requirements Calculating system requirements has become

much easier with the Pioneer Pump app (at

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selecting the right pump for a job based on

The Lowara e-NSC range is suitable for a variety ofapplications, including water transport, hydronic heatingand chiller systems, fire systems



17

Vanguard to lift 20 generatorson SA’s Eastern Cape

Specialists in turnkey heavy lift, transport

emissions; the company’s unique patented

vortex offers waste-to-energy plants that

are cost-effective and highly efficient, while

boasting a small footprint and negligible

emissions.

IEA calls for clarity andcredibility on solar energy Two reports issued by the International

Energy Agency (IEA) indicate how solar

photovoltaic (PV) systems could generate up

to 16 per cent of the world’s electricity by

2050 while solar thermal electricity (STE)

from concentrating solar power (CSP) plants

could provide an additional 11 per cent; a

central message in both publications deals

with the need for clear, credible and

consistent signals from policy makers, which

can lower deployment risks to investors and

inspire confidence.

and plant relocation, Vanguard is

providing the craning solution for 20 wind

turbine generators (WTG) at the new

Grassridge wind energy facility near Port

Elizabeth in the Eastern Cape; the company

is lifting and positioning Vestas V112

3.0megawatts (MW) WTGs at an average

rate of two a week during Q4 2014 on the

R1.2bn (US$106mn) facility, which can

generate up to 60MW of renewable energy

- enough for about 40,000 homes.

Clear Sky Energy wins award forwaste conversion solutionThe Pitching Den competition, which

featured at the recently-held SA Innovation

Summit, with 34 local inventors and

entrepreneurs, was won by Clear Sky

Energy, a breakthrough waste-to-energy

technology, which dramatically reduces

Vanguard has been involved in a number of wind farmprojects in South Africa

Bulletin / EnergyNEWS

African Review of Business and Technology - November 2014www.africanreview.com


Burundi has started operationsat a new nickel mine, whichholds an estimated reserve ofabout 150mn tonnes of themetal, in the Musongati region.

The nickel mine will beoperated by a joint venture ofBurundi Mining MetallurgyInternational and the federal government.

Danko Konchar, managing director of Burundi Mining MetallurgyInternational, said that other metals associated with the nickel suchas iron, copper, cobalt and platinum also have also been traced inthe region. Konchar said, however, that 800MW of energy would berequired to exploit the Musongati mine site.africanreview.com/construction-a-mining)

Burundi launches activities at nickel mine

The African Reviewwebsite has beenredesigned with abrand new look,encouraging readersto click on and readbreaking news storiesacross Africa’sconstruction andmining, energy andpower, transport andlogistics, manufacturing, financial and IT sectors.

Readers can navigate through the website more easily and followAfrican Review on Twitter, as well as subscribe to both the magazineand e-newsletters.

The new website redesign offers advertisers more advertisingspace with a new featured content box and upcoming event bar.The website also features bigger banners, improving visibility and inturn providing better campaign results.africanreview.com

The Nyabarongo River Hydropower Plant in Rwanda will beginproducing 28MW of power in November 2014.

Construction on the power plant began in 2010 and the Rwandangovernment enlisted the help of several companies to develop theproject. The Nyabarongo dam comprises two generators, each capableof producing the power of 14MW.africanreview.com/energy-a-power

18

WEB SELECTION

Dubai-based airline Emirates hasannounced plans to expand itsnetwork in Africa by introducingat least 10 new routes by 2030.

Tim Clark, CEO of Emirates,revealed the company’s growthplan for the next 10 years, whichincludes investment for expansionby more than 40 per cent in Africa.

“Emirates will continue to channel traffic through Dubai, which hasalready become a key gateway to the African continent,” said Clark. Thecarrier has been seeking African destinations with oil and gas reservesthat require regular transport for people and cargo, Clark added.africanreview.com/transport-a-logistics

African Review website relaunched

Nickel deposits in Musongati were firstdiscovered in 1972 (PHOTO: Romain/Flickr)

The relaunched site allows readers to navigatethrough the latest news from across Africa with moreease and offers advertisers more advertising space


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

Rwandan hydropower to start generation

Emirates to intorduce new Africa routes


Nigeria’s Unity Bank has partnered with communications providerSkyvision Global Networks to support the bank’s local area network(LAN).

Skyvision will provide its satellite-based Virtual Private Network(VPN) services via its Nigerian hub to complement Unity Bank’s onlinefunctions, said the company in a statement. This would help connectthe bank’s headquarters in Lagos to branch offices across Nigeria.

The VPN solution connects Unity Bank’s core applications,including peripheral applications, to its headquarters, enablingcontinuous, seamless business operations in its rural area branches.Fully deployed and managed by SkyVision Global Networks, theVPN will enable Unity Bank to connect their LAN sites with noinvestment in additional infrastructure.africanreview.com/it

Skyvision to support Unity Bank online

WesBank, a division of South Africa’s FirstRand, has signed amemorandum of understanding (MoU) with the National AutomotiveCouncil (NAC) to offer vehicle finance in Nigeria.

The company said in a statement that the MoU will allow WesBankto work closely with NAC to develop vehicle financing solutions,specifically for those vehicles built in Nigeria with the aim to makethem more affordable for the average Nigerian consumer.

Chris de Kock, CEO of WesBank, said that the Nigerian governmentrecently restructured their local economy to attract investment fromvehicle manufacturers and increase the supply of locally-manufactured vehicles.africanreview.com/financial

WesBank to offer vehicle finance in Nigeria

In the last five years, Emirates has carriedmore than 1.6mn passengers betweenAfrica and China (PHOTO: Milad A380)


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Nigeria is now the world’s 26th biggest economy after recentrebasing of gross domestic product (GDP) and seventh mostpopulous nation that possesses the means of becoming

even a larger marketplace over the next decade. An Insparo AssetManagement frontier market specialist said, “There are not manyplaces in the world that are growing at seven per cent and can bereasonably expected to maintain that for some years.”

The team at Investec Asset Management agree, saying, “Nigeriaremains one of the most attractive long-term growth stories on thecontinent.”

The newly rebased GDP from 1990 to 2010 at current marketprices puts total 2013 value of economic output at US$510bn -which is US$158bn ahead of South Africa. The exercise revealed thechanging dynamics of Nigeria, and how, over the past 20 years, thecountry has reduced its historic reliant on oil by developing a morediverse economic base mainly led by services. GDP now includesindustries previously either uncounted or under-represented likeICT and telecoms, music and film-making, airlines, hospitality,online sales and especially banking/finance (see Table 1). Thenational account reveals the emergence of new sectors andtechnologies driving growth, which bodes well for futurecompetitiveness. Ngozi Okonjo-Iweala, Coordinating Minister forthe Economy and Finance, said, “With better information, we cansee that our economy is more diversified than before. It underlinesto foreign investors that this country has a large consumer base.”

In 1990, Nigeria had one telecoms operator with 300,000 phonelines. Now four major operators - MTN Nigeria, Globacom, AirtelNigeria and Etisalat - dominate cellphone industry with 130mnsubscribers (up steeply from 19mn in 2005) and about a quarter ofusers have a smartphone. Likewise, 24 years ago there was just oneairline, and now there are many. The thriving entertainment industry,known as ‘Nollywood’, produces on average 50 films per week thatare distributed across Africa and overseas on video CDs and DVDs.

Rapid expansion of servicesThe macroeconomic outlook remains broadly ‘positive’ (see Table 2).After the rebasing, the budget deficit and external debt-to-GDPratio fell to lows of 1.0 and 2.8 per cent, respectively, thus providingmore room for borrowing. Moreover, Nigeria is a net ‘creditor nation’(i.e. gross sovereign assets exceed external liabilities), according tothe Bank for International Settlements (BIS).

The key driver of growth remains non-oil economy, whichcomprises two-thirds of total GDP, with growth averaging 8.2 percent/year over 2010-13, according to the International MonetaryFund (IMF), the best performance for decades. By contrast, the oilsector grew at a meagre rate of 0.6 per cent/year in the same period- attributed to supply disruptions arising from oil theft and pipelinevandalism, and by weak investment in upstream activities with nonew oil finds. Middle-class Nigerians are flourishing according to asurvey of major cities (Lagos, Abuja, and Port Harcourt) byinvestment bank Renaissance Capital. Nearly 70 per cent of themare aged below 40. About half at any given time are in the marketfor durable consumer goods. By 2030, nearly two-thirds of Nigerianswill live in cities and Renaissance Capital reckons the period untilthen could mark “very rapid [economic] growth” - with swellingdemands for housing, home improvement, transportation, andleisure. Emeka Emuwa, managing director of Union Bank, said, “Thedevelopment of the economy - power, oil, consumer goods,industries, agriculture - is increasing demand for banking. Peopleare spending more and are willing to borrow.”

Regional FDI hubAccording to Geneva-based United Nations Conference on Trade andDevelopment (UNCTAD), net foreign direct investment (FDI) inflows to

NigeriaBUSINESS

20

Changing dynamics andlong-term growthCapturing the business opportunity in Nigeria, which has become Africa’stop economy


Table 1: Contribution to GDP by Sector, % of Total2008 2013

Agriculture 32.9 22.0Oil & Gas 37.4 14.4Manufacturing 2.4 6.8Public Utilities 0.2 1.3Construction 1.3 3.1Wholesale & Retail Trade 14.8 17.5Transport, Storage & Communication 3.0 12.2Finance, Real Estate & Business Services 6.0 14.6Public Administration 0.7 3.6Other Services 1.1 4.5Source: African Development Bank (AfDB).

Table 2: Key Macroeconomic Indicators Proj. 2010 2011 2012 2013 2014 2015

Real GDP Growth * 8.0 7.4 6.7 7.4 7.3 7.1Oil & Gas * 5.2 -0.6 -0.2 -1.8 6.8 3.4Non-oil Growth * 8.5 8.9 7.8 7.7 7.4 7.5Consumer Price Index ** 11.7 10.3 12.0 7.9 7.0 7.0Exports FOB / 77.4 93.3 96.0 93.8 93.8 93.4Hydrocarbons (%) export 96.5 96.5 96.8 95.3 94.3 93.2Price of Nigerian Oil (US$/barrel) 79.0 109 110 109 104 98.5Imports FOB / 46.8 62.2 53.6 57.2 60.5 63.4Trade Balance / 30.6 31.1 42.4 36.6 33.3 30.0FDI inflows (net) // 6,099 8,915 7,127 5,609 6,500 6,700Portfolio Investment (net) // 2,600 3,600 15,100 9,600 9,600 9,300Gross Forex Reserves / 32.3 32.6 44.2 43.6 44.5 44.3External Debt Stock // 5,100 5,600 6,500 8,200 10,000 11,500* Annual percent change; ** End-of-period; / US$ billions; // US$ millions.

Sources: Nigerian authorities, IMF, AfDB & UNCTAD.


Nigeria were US$71.8bn over 2004-13, equivalent to 58 per cent ofWest Africa’s total (US$123.8bn) during this period. FDI stock in 2013totalled almost US$82bn (Africa’s third-highest) after South Africa andEgypt. Major investors are from China, Netherlands, Britain, the US andSouth Africa. A buoyant domestic market offers opportunities infood/beverages, ITC, power, financials, manufacturing and carassembly plants and real estate.

Multinationals likes of Unilever, Nestlé, SAB Miller, Procter & Gamble,General Electric and Nissan, among others, are expanding theirproduction in Nigeria - gateway to West Africa. Nigeria remains‘natural hub’ for intra-regional investment and trade thanks to its openborders, streamlined customs procedures and deep-water ports. It hasattracted fair amounts of ‘vertical’ FDI from companies keen to tap theECOWAS market of 300mn-plus customers. Martin McCann, head ofinfrastructure at US law firm Norton Rose, explained, “There is a clearpipeline of airports, ports and other projects in Nigeria being offeredto investors. It is too important a country for bidders not to look at.”Renaissance Capital believes, “You can get a much better return oncapital than you can in Europe or even central Europe.” Significantly,doing business is now easier and less costly than previously thanks toa ‘One-Stop’ Investment Centre that offers facility for obtainingcustoms, immigration and tax clearance.”

Critical development challengesDeep-seated structural deficiencies and social deprivation (withpoverty affecting three-fifths of the population) highlight the paradoxof Nigeria’s economy, where roughly 2mn young people annually jointhe labour market. Therefore, revised GDP does not alter formidablesocio-political challenges facing the country. Although the

demographics point to huge possibilities, “the government will haveto press ahead vigorously with major economic reforms to sustainhigh rates of growth and foster shared prosperity if the country’spotential is to be realised,” advised the Washington-based Institute ofInternational Finance (IIF). The IMF also cautioned despite sustainedrobust growth over past decade, unemployment and poverty are highand social indicators lag those of peers.

Nigeria continues to be hampered by infrastructure bottlenecks,especially in energy supply and transportation, and under-investment in human capital. Africa’s most populous countryproduces on average 6,500 megawatts (MW) a day - with per capitaconsumption of 155-kilowatt hours (KWh) equivalent to about halfthe global average or a fraction of South Africa’s averageconsumption of over 4,500KWh. Estimates indicate that privatelyowned diesel-powered generators produce an additional 7,000MW,hiking business cost by whopping 40 per cent. Transport and logisticsconstitute a major barrier on businesses. The ports are congested andthe road networks running down.

Despite 70-75 per cent mobile penetration rates within just 10 years,broadband service in Nigeria is in its infancy due to limited availabilityof fibre-optic cables and regulatory barriers. Only nine per cent ofhouseholds have Internet access directly. E-banking and onlineshopping, however, is taking off. The rate of adult financial exclusion inNigeria is estimated at 46.3 per cent, one of the highest in Africa. Thenumber of people with bank accounts is below 30mn - equivalent to17 per cent of total population (173mn). There are estimated 12,000ATMs across major cities and only 25mn bank cards in circulation. �

Moin Siddiqi, economist

NigeriaBUSINESS

22 African Review of Business and Technology - November 2014 www.africanreview.com


BusinessGhana

23

Governing Ghanaiangrowth in industry

Analysis of the key challenges and opportunitiesimpacting affluence in West Africa

African Review of Business and Technology - October 2014www.africanreview.com

For a decade, Ghana’s economy surgedahead as it won debt forgiveness,started pumping oil and achieved the

much-coveted middle income status. Thecountry enjoyed five years of economicgrowth above eight per cent, making it thetoast of global analysts and the envy of otherAfrican countries. The growth has, however,hit a roadblock, forcing the government togo to the International Monetary Fund (IMF)to discuss new policy options.

A wide budget deficit, high inflation and aplummeting currency are taking their toll onthe economy with the IMF forecasting grossdomestic product (GDP) growth for 2014falling to 4.5 per cent from the 7.1 per centrecorded in 2013 - well below thegovernment’s estimate this year.

"Ghana continues to face significantdomestic and external vulnerabilities on theback of a large fiscal deficit, a slowdown ineconomic growth and rising inflation," theFund said in a statement after talks withgovernment officials in Accra late September.

The country has been hit by a fall in the

price of gold, a major source of governmentrevenue, while analysts said fiscal difficultiesand power shortfalls also hindered growth.

"These vulnerabilities are puttingGhana’s medium-term prospects at risk,"the IMF said. The government has its ownreform programme, but the Fund said thefiscal deficit would end 2014 at 9.75 percent, wider than the government’sprojection of 8.8 per cent. But Ghana’sdeputy finance minister Mona Quarteybelieves the government will hit the 8.8target saying the Fund’s projectionssignifies a worst-case scenario.

"The good thing is that we know and wehave identified the same issues they [theIMF] are raising and we are working ferventlyto address them," she said.

Factors affecting investmentIn late September 2014, the internationalratings agency, Fitch, reaffirmed itssovereign rating for the country at ‘B’, fivemarks below investment grade and gave ita negative outlook. Fitch said its

affirmation reflected a number of factors,including the government’s successfulUS$1bn Eurobond and the Ghana CocoaBoard (Cocobod) successfully raisingUS$1.7bn syndicated loan. These, Fitchsaid, have alleviated some short-termpressures on reserves and the currency.

The agency strongly believes that only byagreeing and implementing a strategy withthe IMF can the government achieve alasting reduction in funding pressures.

"A lasting reduction in funding pressures,for both the fiscal and current accountdeficits, is unlikely until an IMF programme isagreed and a credible deficit reductionstrategy is implemented," it said.

According to Fitch, the magnitude of fiscalconsolidation in the coming years willdepend on the path of deficit reductionagreed with the IMF.

"Two years of double-digit deficits,combined with a cumulative 45 per centdepreciation of the currency since January2013, has seen debt jump to 61.7 per cent ofGDP in 2013, based on Fitch’s calculations,

The pace of economic growth in Ghanahas been rapid, but the nation now faces

significant challenges to sustainability

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from 39 per cent in 2011 - well above the ‘B’ median of 43.7 percent. The Bank of Ghana’s role in funding Ghana’s budget deficit inthe first half of the year [2014] illustrates the financing challengesthe government faces," it said.

Other analysts are, however, bullish about the near-term outlook forthe economy. They believe that Ghana sustain economic growth wellinto the future if the government improves its macreconomicmanagement which requires bold efforts to reduce its budgetimbalance. "The near-term outlook for Ghana is positive, growthprojected at 8 per cent in 2014," the Institute of Statistical, Social andEconomic Research (ISSER) of the University of Ghana, said in study ofthe Ghana economy early October.

Despite this optimism ISSER notes a declining trend in GDPgrowth since 2011, pointing out that the 2013 growth rate of 5.4per cent was short of the targeted 8.8 per cent. ‘This negative out-turn is the largest since 2008. For instance, in 2012, the shortfall was0.6 per cent, compared to the 3.4 per cent in 2013,’ said ISSERdirector Felix Asante. The 2013 growth was buoyed particularly byoil exports, with the non-oil GDP growth rate of 3.9 per cent,compared with 5.4 per cent overall GDP growth. Ensuring industrial engagementISSER identifies unemployment as a key challenge, sayingopportunities for employment in the industrial sector remain limitedand highly specialised. In addition, the composition of Ghana’s tradecontinues to be dominated by primary exports - gold and cocoa.

"The reliance on a narrow range of commodities as well as anarrow range of markets makes Ghana’s export earnings extremelyvulnerable to volatility in these markets," ISSER said adding that"there is an urgent need to diversify exports in terms of products aswell as markets". Also, to ensure that medium-term growth targetsare met, "there is the need for massive investment in theagricultural sector - whose output is declining - as a whole and ininfrastructure in particular".

Felix Asante attributed the agriculture sector’s decliningperformance to the rapid expansion in the oil sector, which shrankthe agricultural sector’s performance in relative terms. Accordingto ISSER, the advent of oil production seems to be changing thepattern of the country’s exports, wondering whether the countryis teetering toward an oil-dominated economy, and if theproceeds from oil exports would be used to diversify theeconomy.

In addition, Ghana’s weak infrastructural systems, especially in theenergy and transportation sectors, and ineffective public

GhanaBusiness

24

Traditional industries remain strong in Ghana, but thebroad economic base is facing severe challenges

African Review of Business and Technology - October 2014 www.africanreview.com


administration structures undermine efforts to make investing inGhana a worthwhile venture. In order to ensure industrial growth, thechallenge of power shortages needs to be tackled with robustefficiency by the government.

On the fiscal side, there is the urgent need for prudent managementof government resources. ISSER is urging the government to increaseefforts to mobilise revenue through an expanded tax base, saying themain culprit for recent huge deficits is government expenditure, whichshould be reined in, in the short-term.

"Indeed the budget’s credibility, particularly with respect to theoverall fiscal targets, will improve if there are more concrete steps toreduce expenditure," it says, adding, "the rigidities in governmentexpenditures can only be matched by increasing the limited fiscalspace the country has."

It warns that unless revenues are able to match potentialexpenditure slippages that might occur, the overall fiscal target maybe missed.

"There is no doubt that the IMF programme will help in thestabilisation effort for 2014, but it is unrealistic to expect it to changethe potential fiscal slippage that is likely to occur in 2014." �

Jon Offei-Ansah

BusinessGhana

25African Review of Business and Technology - October 2014 www.africanreview.com

Developed at Meltwater Entrepreneurial School of Technology(MEST) in Ghana, PollAfrique is a research platform for Africa,which allows respondents to participate in incentivised surveysvia a number of online channels.

CEO Samuel Dzidzornu leads a strong team that will bring anew perspective on big data. Recently featured on CNBC,PollAfrique has been highlighted as a "Venture of Pan-AfricanSignificance", and was recently selected by the Rwandantechnology incubator, think, to support the development ofdigital infrastructure utilising Tigo resources.

Digital research


Albert Essien is every inch an ‘Ecobanker’. He started his careerwith Ecobank, Africa’s premier banking group, in 1990. Afterteaching economics in Nigeria, he started his banking career

with the National Investment Bank in Accra, Ghana in 1986.Almost a quarter century after joining Ecobank, he was tasked with

focusing the group to restore stability and confidence. He hadpreviously served the Lomé-headquartered Ecobank in various seniorcapacities, including that of deputy group chief executive and head ofcorporate and investment banking. It had been a bruising couple ofyears for the Ecobank brand after a boardroom tussle developedfollowing the appointment of Thierry Tannoh, a former IFC Africa vice-president, to succeed Arnold Ekpe.

Seeking a unique strategyEcobank was created as a private banking institution, initially to serveWest Africa, specifically the ECOWAS region. But in recent years, undera former chief executive Arnold Ekpe, it has taken on a pan-Africanvision, to serve what it defines as Middle Africa - south of the Saharaand north of South Africa.

Through a series of bold acquisitions, it now has a full-bankingpresence in 36 African countries, including its move intoMozambique, concluded in the middle of this year. One of the firstquestions I asked Essien was about the strategy he has executed aschief executive.

“It has been mainly about consolidation and optimising the bankingplatform,” he explained. “My strategy can be summed up as basically toextract efficiencies. We have a unique banking platform, but thequestion everybody asks us is ‘where is the value’?

“So, for the period that I find myself as chief executive, working withmy colleagues the objective is to show the value by extracting theefficiencies so that we can provide good returns to our shareholders.”

However, Essien is also quick to note that customer service comestowards the top of his agenda.

“Customer service is very important for any commercial institution,”he emphasised, reiterating his focus on consolidating, optimising thebank’s human and financial resources most cost-effectively, makingefficiency the watchword, and ensuring excellent customer servicedelivery. “That is what I am working on to achieve.”

That might be interpreted to mean that Essien is going to focus onwhat Ecobank calls “domestic banking”, sometimes described as “retailbanking”, as opposed to wholesale banking. The two parts of thebank’s operations contribute near equal revenues of 51 per cent and49 per cent respectively. But Essien says the main emphasis is on“commercial banking” in general, although he agrees with a renewedfocus on domestic banking.

“We have spent considerable time and investment on the retailbanking arm, that we call domestic banking, and we need to makesure the value is realised. But domestic banking is not an easyproposition, especially in this part of the world. You need to get yourtechnology infrastructure in place, to drive the efficiencies, and you

need to make sure that you deliver on customer service. “We have moved to cards, ATM services, point of sale terminals,

internet banking etc. And we have tried to ensure that when peoplewalk into Ecobank branches, they get a great service.”

The time to transition However, Essien has just a short time to achieve what he wants for thebank. The Ecobank constitution requires that Essien steps down onreaching 60-years of age. Does he have enough time remaining aschief executive to really do all that he might wish to?

“I’m a Gemini, born May 24th, and I am now 59-years,” he admits,“and next year I'll turn 60. So, technically, that’s the limit, but I guess itall depends on how it is played, how it evolves. There is asubcommittee of the board that is looking into it. It’s in their hands,”he said.

BankingFINANCE

26

Steadying the shipAn interview with Albert Essien, who became the chief executive ofEcobank, the pan-African banking group, succeeding Thierry Tanoh

Ecobank has inaugurated the new Ecobank Academy at its headquarters in Lomé


S07�ATR�Nov�2014�-�Finance_Layout�1��22/10/2014��15:14��Page�26

But in the time remaining, Essien is intent to provide the leadershipthat will restore confidence and trust.

“I think for these intangibles, if I can put it that way, I am on theroad to doing that, resolving any remaining problems withoutwashing our dirty linen in public, so to speak. That strategy is, to alarge extent and barring any last minute issues, on track," he said.“Now, on the issues of efficiency, customer service, and returns to theshareholder, I would say that by working with the team, I have beenable to continue from where my predecessors left off. I came into asituation where we had virtually completed the bank’s expansionplan. Whether I will finish that totally, I don’t know, but I think that wewill have now positioned the bank at a very good point, and we’llcontinue with all those metrics.

“Today, for the first time, our return on equity, at 18 per cent, ishigher than our cost of equity, which is about 17 per cent. One can saythat we have broken even and so now we need to move forward. Thatis what I intend to work on.”

Essien is grappling with the issues of trust, which he admits franklyhas been dealt a severe blow with the events of the last year or so.

“I am talking about the trust of the public, of our stakeholders, ourshareholders, our regulators, our clientele. Banking is all based ontrust, and banking doesn’t want negative noise.

“I’m sure that we are restoring trust in the bank. People know me,and I guess that when I came in as chief executive, that createdstability, because people know me; I’ve been around for a long time.There is always a lingering doubt and people still speculate aboutEcobank, asking ‘will they slip?’ The important thing for us is tocontinue to build trust while walking the talk. That is what we willcontinue to do.”

While I had not wished to dwell on the past, I had wanted to askEssien about his views on the chief executive succession process, andwhether he thought that, given past experiences, it was preferablethat succession should really come from within the bank.

“That’s an argument,” he told me, “and I am sure that debate will beongoing. But I think the important thing is to get the right person, andthe right person for me should be somebody who appreciates ourcorporate culture and the uniqueness of the group. It should besomebody who can really continue to work on the domestic andwholesale banking. That is what we should work on, and I think wehave that talent within the group.”

His answer seemed to imply that he was sympathetic with theidea of an internal promotion for the next chief executive, but headded a rider.

”If you ask me, that’s my preference. However, there would be a listof criteria. I do not think that we should just shut the door on theoutside candidate but benchmark those we are looking at fromoutside with those inside the group.

“I think the paramount thing is a recognition of our unique culture,the corporate ethos of the institution is so important. You also need anexperienced commercial banker. I guess in the past we thought thatamongst other qualities, it would be good to find somebody whoknows the world, perhaps might be politically savvy, and politicallywell connected.

“But I think those qualities can be acquired. The core thing is thatthe candidate appreciates the culture and the ethos of this institutionand knows about retail and commercial banking.“

Essien also discussed the proposition and desirability of finding awomen for the top job - in the bank’s history there had been morethan half a dozen male chief executives, but no woman.

”Yes. You never know what will transpire,” he told me, “but theimportant thing is not to appoint just for affirmative action. We needthe best person whether it is a man or a woman. The important thingis to get the right person.”

Since the departure of Tannoh, Ecobank has changed its Board ofDirectors quite radically. I asked Essien what lay behind this move.

“I guess the idea was to send a signal to the business communityand the outside world that we wanted a break with our recent past,and to indicate that we also we take corporate governance veryseriously. It's a shame to say this, but the old board was becomingdysfunctional. You cannot have a dysfunctional board going forward,and in fact the old board actually proposed that we overhaul itscomposition. We now have a new board with a new chairman,Emmanuel Ikazoboh, who is a very competent financier - he knowsboth the francophone and anglophone markets extremely well. He is

FINANCEBanking

27African Review of Business and Technology - November 2014

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Albert Essien, chief executive of Ecobank


BankingFINANCE

28

from Nigeria where we have 40 per cent of our assets, and a verygood team of directors from different backgrounds has joined him.

“We have experts in terms of risk management, a legalbackground, corporate governance, treasury etc. I think we nowhave a good mix; we have an excellent board.”

Banking on important marketsAlthough Essien’s mandate has been to consolidate the bank’sposition and reinstate stability and trust amongst the variousstakeholders, Ecobank has lost none of its drive nor vision, andmoved quickly to grasp the opportunity to move into a new marketwhen it bought out Banco ProCredit, Mozambique and begantrading in May of this year as Ecobank Mozambique.

“This is the biggest of the lusophone markets where we have apresence today,” Essien said. “We think that Mozambique is reallyready for business. Mozambique provides a very important link toour strategic SADC area because the port of Beira in Mozambiqueserves as an important entry point for Zimbabwe, for Zambia, forMalawi and for the DR Congo.

“We are in all these SADC countries and we need that access, weneed that corridor to the Indian Ocean with our focus on regionaltrade. Also, Mozambique is one of the fastest growing Africaneconomies, so it makes very good business sense to be inMozambique.”

With the take over of Banco ProCredit, a relatively young bankestablished in year 2000, Essien explains, Ecobank has gained, at astroke, 67,000 new clients, and a dozen new branches in thecountry.

I asked Essien if there were any particular challenges withbringing such a large lusophone economy into the Ecobanknetwork. He replied, “Not yet, but in business you never know, therecan be so many unexpected challenges. Bank of ProCredit came as agood opportunity, and a good fit for Ecobank as well as for ourpartner Nedbank, that has taken a 30 per cent stake in anotherMozambican bank. It's more of an SME institution, it started as amicrofinance institution. But we intend to superimpose our modelof retail and corporate banking in creating Ecobank Mozambique."

And Essien also has his sights set on entering the Angolaneconomy, by some measures the fifth largest economy in sub

Saharan Africa. Ecobank already has a banking license in Angola,and there is already a representative Ecobank office in Luanda.

”If you take the banking pools in sub Saharan Africa, Angola hasone of the biggest banking pool revenues,” he said.

Mozambique and Angola have economies that are dominated bythe hydrocarbons sector and the oil and gas business, with, in thecase of Mozambique, the potential and in Angola the realised,extensive offshore assets.

For Essien, exposure and experience to the oil and gas industriesin Nigeria, in particular, gives him the confidence that Ecobank canplay an important role in the business. In fact, the oil and gas sectorrepresents 18 per cent of Ecobank’s total African portfolio.

“You need quite a big balance sheet to play a good role. However,you can also play an initiating role and not necessarily throw yourfull balance sheet at it,” he noted. "You can be a good initiator,especially with regard to our investment bank angle. We intend toplay these roles in Mozambique, and perhaps Angola too, goinginto syndications and partnerships.”

But Essien is guarded about any future acquisitions, at least in theshort time - “unless the proposition is so mouth-watering,” he saidwith a chuckle. Rather, there is he says a fair amount of work to bedone with what Ecobank has already and, as he repeats, ensuringefficiencies are extracted.

“We have always talked about our footprint. I think ourshareholders, our stakeholders would first want to see what ourcurrent footprint can provide in terms on a return on equity,” heinsisted.

Nor does he believe there is an easy answer as to how long a newmarket should take in returning revenues to the group.

“As for the time it should take for a country to become profitable,”he said. “It all depends on where you find yourself and the level ofdevelopment of that country. We went into Zimbabwe, and despiteall those problems with the economy, in the first year we virtuallybroke even. We went into Equatorial Guinea and in the second yearbecame very profitable.

“Yet, when we went into Uganda, it was not so easy. We went intoTanzania, I think in 2010, and it is only this year that we began toshow month-to-month profit. “I think that within two years, or bythe third year, you should start to make money. The first year youput all the nuts and bolts in place. In some countries it's faster. Ialways look at it like a garden: in the first year you prepare the soil,plant your seeds and water them. Then you can expect to haveresults. If you have an acquisition and it is a relatively good bank,then you can ramp it up and expect results very quickly.”

Ecobank has expanded with a variety of acquisitions andgreenfield developments.

“We have done greenfield developments in Tanzania, Uganda,Zambia; we acquired in Kenya, Burundi and Malawi,” Essien said. Butit might be argued that Ecobank will be required to increase itscapital to continue with even a medium-term expansion of itsfootprint. When asked whether this necessarily means finding freshinvestors or looking to the existing shareholder base, Essienclarified that Ecobank should first consolidate its assets and increaseits capital through retained earnings.

“But having said that,” Essien went on, “we are also lookingforward to Nedbank exercising their options and topping up theirshare capital, which will give us some head room - but as I said,within my period as chief executive I believe we have toconsolidate, to take a breath - unless we get an offer that we simplycannot refuse!” �

Stephen Williams


Ecobank offers cards, ATM services, point of sale terminals, and Internet banking


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Enterprise mobility is a new buzz phrasefor the workplace. It refers to atransformation in working habits, with

employees doing more of their workremotely and in the field rather than in theoffice with the help of the latest technology,including mobile and cloud devices.

"The demand for enterprise mobilitysolutions varies across the continent," saidMaged Wassim, vice president, industry andvalue creation at IBM Middle East & Africa. "Inthe markets where smartphone penetrationis reaching or already exceeded 25 per centsuch as South Africa, Egypt, Nigeria and fewothers we are definitely observing anincreased interested in mobility solutions. Thefirst area is mobile customer serviceapplications such as mobile banking,eGovernment or Telecom Self Services. Thesecond area is employee productivity andoperation improvement solutions. The lattermost often involves mobile devicemanagement systems."

Market intelligence firm IDC has predictedthat enterprise mobility activity in Africa willintensify. According to the 2012 IDCEnterprise Mobility Survey, uptake has beenlow- 39 per cent of companies in Africasurveyed had enterprise mobility strategy

within their firms, 18 per cent of enterpriseshad plans to create one within the year.However, 43 per cent said they had nowhatsoever plans to create one.Nonetheless, IDC anticipates that thenumber of mobile applications developedfor the enterprise sector will increase, andadoption should consequently be on therise. IDC has predicted a rise in "emergingmarket smart devices".

A reflection of growing excitement aboutAfrica’s enterprise mobility market is the buzzthat one annual enterprise mobility-focusedconference in Africa now produces. The 2014Enterprise Mobility Africa Summit, hosted inJohannesburg in July, proved a huge success.The topics were probing, revealing thatAfrican companies are at an advanced stagewhen it comes to approaching enterprisemobility from different, complex angles.

Speakers included Brett Loubser fromWeChat Africa, who discussed the future ofthe use of mobile phone applications in theworkplace, particularly within the financialsector, and whether the development ofnative apps is the future. The head of the

digital division at Santam also gave apresentation on mobile strategies withincompanies, with a focus on how blueprintsfail when firms see enterprise mobilityexclusively as about technical solutions, andfail come up with concrete objectives orsecure necessary support from stakeholders.

In addition, the conference delivered asnapshot of which industries in Africa aremost interested in exploring enterprisemobility strategies. Employees from thefinancial sector made up the biggestproportion- representing 35 per cent ofattendees. Telecommunications and ITcompanies were not far behind, and provideda quarter of the attendees. Twelve percentcame from the manufacturing sector, eightper cent from mining and six per cent fromFMCG and retail.

Smartphone adoption stimulates enterprisemobility marketAccording to experts, a number of factors aredriving the enterprise mobility market inAfrica. Rising mobile connectivity is animportant contributor.

Data CentresTECHNOLOGY

30

Ready forenterprise mobility?Interest in Africa’s enterprise mobility market is rising, and companies mustadapt working conditions

There is genuine value creation from new architecture for enterprise mobility (Photo: IBM)


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Data CentresTECHNOLOGY

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"The current demand for enterprisemobility very much depends on the maturityof the mobile market measured by theadoption of smart devices. Other factorsinclude the general state of local economiesand market size. Today there are already100mn Smart-phone users in Africa," saidWassim, who also stressed that adoption ofsmartphones in Africa is still relatively low."This, however, may quickly change in thecoming years due to the growing availabilityof mass-market smartphones priced at US$50or less. This will drive the demand forenterprise mobility solutions across thecontinent.

"We see a move on the usage of mobilephones at an individual level. This is driven byinclusion of citizens in the local economy.One of the main tools is mobile phone,mobile wallets and micro payment. Webelieve this will drive growth that will reachthe enterprise market."

Firms in Africa embrace enterprise mobilityLeading technology manufacturers are clearlymaking enterprise mobility a priority in termsof their Africa strategies and they insist thatthere is clearly a market.

"Enterprises across our region are askingthe same question: How can we reach ourcustomers, employees, citizens and otherstakeholders on an individual basis? Tocapture the potential of this change, IBM inAfrica is executing an agenda focusing ondata, cloud, mobile and social," Wassim said."We are working across many sectorsincluding banking, telecommunicationsoperators and government agencies formobility solutions in Africa and the MiddleEast. We see great potential in other sectorssuch as energy and utilities, oil and gas,transportation, education and retail."

IBM has made significant investments inthe enterprise mobility solutions, including achain of important acquisitions. Its exclusivestrategic partnership with Apple is set toprovide world-class enterprise mobilitysolutions to serve IBM's mobility strategy forAfrica and other emerging markets.

For example, IBM has been workingrecently with Apple to come up with a newversion of MobileFirst, a mobile solutionpackage geared towards enterprise mobility,especially for iOS. It includes a range ofenterprise applications specially tailored forApple smart phones and tablets. IBM plans toboth deliver the applications and providesupport in terms of product maintenance andsupport.

Enterprise mobility is proving to be ofparticular interest to financial organisations inAfrica. Nedbank in South Africa is a case inpoint.

"Enterprise mobility is a priority forNedbank," said Barry van Huyssteen,divisional executive, Nedbank infrastructure &operations. "We regard mobility as anessential part of our strategy to obtain ourgrowth targets. Our current strategy is tointegrate the various forms of communicationapplications and infrastructure pieces into asingle interface which is already familiar toour staff and clients."

van Huyssteen added that the bankanticipates to make gains in productivity, costreductions and improve customer experienceby reducing the likelihood of delays when itcomes to operations.

Nedbank already has an extensiveenterprise mobility strategy that makes use ofseveral different technology tools includingmobile video banking, online real-time groupcommunication and multimedia-enabledcontact centres. To help employees to carryout work remotely, Nedbank also makes useof mobile phones and tablets, mobile videomeetings, instant messaging and laptoptelephony.

"Our mobility strategy is well-developed,"said van Huyssteen. "Rather than adopting a‘big bang’ approach, we prefer to enhance themobile experience with every deployment wehave. All deployments are naturally funded bythe benefits we derive from either growth orthe increase in efficiency or effectiveness. Ourstrategy includes components of mobilevideo banking- in fact, all accesses via anyrecognised device across the bank’s ownnetwork. Underpinning the strategy is ourtransitioning across the group to InternetProtocol Telephony.

"Already, the Nedbank App Suite hasenabled our workforce to make contact withpeople more quickly by accessing ourenterprise directory from all mobile devices.Currently Nedbank allows staff access to oursystems via secure methods from anylocation using bank-authenticated devices."

In fact, Nedbank has mapped out a clearpath for the future in terms of its enterprisemobility strategy.

"The near future will see the completevirtualisation of our workstations, using thelatest proven technologies to effectively setour people free from fixed, dedicated workdesks," said van Huyssteen. "They will be ableto access their Nedbank virtual desktopsremotely from almost any access point usingfixed line, Wi-Fi or broadband. We havealready virtualised hundreds of desktops andour plan is to increase the formal rollouttowards the end of 2014. This makes for ameaningful staff value proposition."

SMEs can profit, tooAccording to IBM, it is not just big companies

in Africa that stand to benefit from enterprisemobility technology.

"Actually African SMEs can benefit mostfrom mobility solutions. There is evidencethat a 10 per cent increase of mobilepenetration results in 0.8 per cent increase ofGBP in African markets," says Wassim fromIBM.

"In this context, we should remember thatabout 85 per cent of African businesses haveless than 10 employees. African SMEs arelooking for cost effective and easy to deploysolutions that can bring them an instantbusiness value. We see this as a greatopportunity."

Overcoming obstacles to connect AfricaNonetheless, enterprise mobility is stillunderdeveloped in Africa compared with therest of the world. This is largely becauseconnectivity infrastructure still has some wayto go. Internet penetration in Africa in thefourth quarter of last year was 21 per centcompared with a world average of 39 percent and the Internet penetration rate for therest of the world, which was 42 per cent. In2011, the total available internationalbandwidth in Africa was under one terabitper second- around one-seventieth of theinternational bandwidth capacity In Europe.Internet is also an extremely expensiveservice in Africa, with organisations oftenpaying fifty times the amount they would inEurope for connectivity. This all makes the useof Internet-based enterprise mobilitytechnology out of the office tricky - especiallyas tools like Internet-based videoconferencing require reliable and high qualityInternet connections.

Connectivity is improving, however,particularly when it comes to mobilenetworks. In August, Ghana became the sixthcountry in sub-Saharan Africa to get highspeed Internet. Surfline Communicationsestablished the West African country’s 4Gnetwork along with its partner, Frenchtechnology firm Alcatel-Lucent. Ethiopia,Kenya and Angola are among those countrieswhich already have 4G.

Another challenge that enterprise mobilityenthusiasts will have to grapple with in Africais affordability.

"Probably, the main barrier today is still theavailability of affordable and simpleenterprise mobility solutions combined withthe cost of smart devices and data packages,"said Wassim, who is adamant that there isstrong enthusiasm for using mobiletechnology in the workplace in Africa. Headded, "People in Africa simply love theirmobile phones."�

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IBM and SAP work together onenterprise cloud adoptionSAP has selected IBM as a premierstrategic provider of cloudinfrastructure services for itsbusiness-critical applications -accelerating customers’ ability torun core business in the cloud. TheSAP HANA Enterprise Cloud serviceis now available through IBM’shighly scalable, open and securecloud. The expansion of SAP HANAEnterprise Cloud to markets withthe addition of the IBM cloud datacentres is expected to enablecustomers to deploy their SAPsoftware around the globe in afaster and more secureenvironment, with support fromIBM’s proven cloud capabilities.

“The demand for SAP HANA andSAP Business Suite on SAP HANAin the cloud is tremendous andthis global agreement with IBM heralds a new era of cloud collaboration. We anticipatecustomers will benefit from this collaboration and expansion of SAP HANA EnterpriseCloud,” said Bill McDermott, CEO of SAP.

ICT solutions and services providerDimension Data has been deployingglobally standardised managed servicesfor data centres since mid-September2014 - built on the group’s ManagedServices Automation Platform, theportfolio manages server, storage andnetworks for on-premise, cloud and hybriddata centres.

Dimension Data is committed toquadrupling the size of its data centrebusiness to US$4bn by 2018. This suite ofmanaged services represents the next stepin a set of strategic initiatives to expandthe group’s capability to support domesticand multinational clients’ data centretransformation requirements.

Steve Joubert, Dimension Data’s groupexecutive for data centres, said, “We’reseeing a shift away from clients owningand managing their own data centre tooutsourcing the entire infrastructure, orthe management of the environment.

Dimension Data’smanaged servicesdeployment

50 per cent of enterprises will have hybrid cloudsby 2017 (Credit: IBM)


Data centres POWER

34 African Review of Business and Technology - November 2014 www.africanreview.com

Adata centre is defined as acompany or facility within acompany that houses servers

and network equipment, processesdata, hosts web sites and generallyprovides Internet connectivity. Thismarket is driven by our increasinglyconnected world and digitisation. Therise in popularity of mobile devices, e-commerce, video on demand, big dataand social media are all underlyingreasons for increase in demand fordata centres.A data centre ideally needs power,

space and bandwidth. It is imperativeto have a reliable power source, opticalfibre routing, more major Internetexchange points (IXPs), stablegeographic location and economicalcost of energy to establish an efficientdata centre.

Co-location and enterprise segmentsThe end user data centre market iscomprised of two segments – co-location and enterprise. Co-location

refers to the building and selling ofdata centre space to others, and this isthe fastest growing segment. Co-location can be further segmented intoretail and wholesale providers. Retailproviders sell on the basis of individualracks/cabinets or cages to customers,which typically range from 46 sqm to464 sqm in size. Ideally, largeenterprises with significant ITexpertise, SMB (small and mediumbusinesses) looking to outsource datacentre requirements, Internetapplication providers, socialnetworking providers, entertainmentand content providers, telecom carriersand hosting providers are among thoseseeking co-location. In addition toproviding data centre facilities,additional maintenance, systems, firesuppression, security backup andHVAC are also included.Meanwhile, the enterprise segment

comprises customers who build andutilise data centres to support theirbusinesses. This includes mid-sized to

large corporations such as Facebookand Walmart, financial institutions andbanks, large manufacturers that have ahigh requirement for computing, web-hosting and cloud providers such asGoogle and Amazon, andtelecommunication companies likeAT&T, Verizon and Huawei.However, enterprise companies, with

the exception of cloud provider andtelecoms, do not feel data centres arepart of their core competency.

The need for powerA good power source should have agenerator large enough to carry theload of the data centre and should beable to run endlessly as data processesnever really stop. Diesel generators area major source of power for datacentres, in addition to being aneconomic alternative. Specifically, theUptime Institute has stated dieselgenerators as the primary source ofpower for data centres and its utility aneconomic alternative.

Data centres at the core of information processingWith technology and digitisation rapidly changing the world, data centres have beenaiding the process of change at a steadily pace. Power generation equipment solutions provider Cummins elaborates the evolution of data centres and the latesttechnology to stabilise them in day-to-day operations

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Power requirements within a datacentre facility is growing due to theincreased power density of servers andthe associated cooling. Today, the mostcommon power density for server racksis 5kW/rack, but this is increasing to20kW/rack and larger. Largercustomers such as Google, Microsoftand Amazon design their own serversand the power density goes up to40kW/rack. This increase in densitycreates more heat, thus requiring morecooling to reduce hot spots within theraised floor. Energy efficiency is ofparamount concern, which has led to anumber of different coolingarchitectures. These have reduced theoverall power requirements for datacentres, and consequently changes theoverall building load profile which canimpact equipment.

Components that make a data centre functionIt is vital to understand the varyingpower requirements of a data centre.Cummins has devised an algorithm tocalculate electricity consumption oftechnology units, which would helpdetermine the amount of powerneeded. This algorithm is especiallyuseful as it aids the understanding ofhow the technology required to coolthe data centres also consumes similaramounts of power as the data centreitself so the whole setup has to have abalance.Another factor to consider while

setting up a data centre is the reliabilityarchitecture. The Uptime Institute’s TierClassifications Define SiteInfrastructure Performance providesbasic guidelines to follow while settingup a data centre and establishing itsinfrastructure. Once this structure isdefined, it helps determine the power

infrastructure accordingly. Forexample, if a reliability architecture thatmeets Tier II guidelines is chosen,certain power system elements willhave redundant components, i.e. anN+1 configuration. Accordingly, afacility that needs one 2,000 kWgenerator to support the base electricalload would purchase and install two2,000 kW generators.Power and reliability infrastructure

consequently influences operationalcomplexity – if a higher tier level ischosen, it means a slew of add-ondevices such as switchgears andcontrols have to be added, whichmakes the operation more complex.

Procuring space for a data centreData centre space can be leased out bywholesale providers, and this couldrange in size from 464 sqm to 1,858sqm, and up to 4,645 sqm. Theseproviders sell to enterprises and retailco-location providers. While theytypically do not provide technician,remote-hand services or networkmonitoring, they do assist with theprovision of security guards,maintenance of fire alarm systems,security systems, generator, HVAC andUPS systems. Several wholesaleproviders also offer build-to-suitservices, providing flexibility toenterprises looking for single tenantdata centre facilities.

Industry structureWithin the data centre segment, thereare three key influencers throughoutthe sales cycle – the end user,contractor and consulting engineer.Contractors are looking to work withdistributors who are easy to work with,have experience with consultingengineers, offer competitive price and

lead times and can executive projects.Consulting engineers want to work withreputable suppliers who have expertisethey can bring to the design phase andhave the ability to integrate to meetsystem specifications andrequirements, while end users valuerelationships and build trust throughexperience with equipment and servicepersonnel. They want consistency andsupport wherever they have facilitiesand a reliable power systems partner.In the data centre industry, end users

that are repeat customers put upfacilities across distributor territoriesand geographical regions. Hence, it isincreasingly important to establishrelationships with end users –especially those that are in the businessof building and/or operating datacentres as they exert more influencethan a consulting engineer orcontractor as opposed to conventionalstandby applications.

Data centre market trends• Customers to move towards co-location and the cloud, which willincrease influence of the UptimeInstitute

• Co-location firms continue to spendon demand – supply chain impact

• Energy efficiency drivesadvancements in cooling – changingload profiles

• Increasing emphasis on after-salessupport

• Customers testing renewables(primarily fuel cells) technology

• States and countries providingincentives for data centres providersto build facilities.

• Interconnected Data Centres offerusers workload mobility, businesscontinuity and disaster recovery

Trends are towards large or megadata centres with above 9,000 rack yieldand more than 22,500 sqm of space. “Cummins leverages application

expertise, system design experience, anindustry-leading sales and servicenetwork to build a reliable long-termpartnership with our customers. We'rethere with you before data processingstarts and we'll ensure it continuesthroughout the life of the data centre.” �

For more information Robin Kuriakose Tel: +27 835564651 E-mail: [email protected]

POWER

35www.africanreview.com

Data centres


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African countries can draw lessons from Iceland when it comes to dealing with thecarbon dioxide, which is emitted as a waste during geothermal energy generation.

Adivergent plate boundary that stretches from the Afar TripleJunction, an area dividing the Nubian, Somali and Arabianplates into eastern Africa, the Rift Valley encompasses thirteen

countries - from Eritrea at its northern tip down to Mozambique in thesouth. Experts estimate that the geothermal potential in the area isaround 15,000MW.

“The East African Rift could generate tens of thousands ofmegawatts through geothermal energy and its potential is beyonddoubt,” said Magnus Dagur, regional director for Africa and Middle Eastat Iceland-based Reykjavik Geothermal (RG). “Kenya and Ethiopia areclearly the leaders for the region. That said I would not discount

countries like Tanzania, Djibouti, Rwanda and Eritrea, which areslightly less far along.”

Despite the significant geothermal potential in the area, only Kenyamakes it into the top ten geothermal energy producers in the world.On the whole, geothermal energy generation in the East Africa RiftValley has been very limited. Lack of investment, technology andskills have all contributed to limited development in the geothermalsector to date.

Nonetheless, there has been an uptick in geothermal activity inAfrica recently. Icelandic organisations and firms are playing a heavyrole. This is perhaps unsurprising. Iceland is the leading geothermalenergy producer in the world. The European country’s installedgeothermal capacity is 665Mg, making up 26 per cent of thecountry’s total energy generation to serve its population of 300,000people. Moreover, geothermal energy is used to heat 90 per cent ofbuildings in Iceland.

Moreover, the European country has long been a leading centre forgeothermal research and training. The United Nations Universitylaunched a geothermal education centre in Iceland in 1979. So far 515postgraduate scientists and engineers from around 50 countries,including African nations, have attended the centre for six monthtraining stints that touch on areas including drilling technology,exploration and thermal liquid chemistry.

Looking to EthiopiaFurthermore, Reykjavik Geothermal is involved in a US$4bn project toharness geothermal energy from three sites - Corbetti, Tulu Moyer andAbaya. In October this year, the firm signed a deal with Ethiopia’sgovernment to construct a power plant at Corbetti on top of an

RenewablesPOWER

36 African Review of Business and Technology - November 2014

Iceland invests in Africangeothermal energyIn East Africa, the Rift Valley’s geothermal potential is attracting more attention than ever before, thanks to a slew of major deals in key countries


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imploded volcano that should produce 500MW of power in its firstphase by 2020. The location should generate 1,000MW of electricity bythe conclusion of its second phase according to those involved.

“We have been in Ethiopia for the last three years, working with thecountry’s government on the development of geothermal power,” saidDagur. “We already have the funding for the first 70MW of the project.So we have already secured all the equity for some of the first phase ofthe project. There’s a lot of financial support for developinggeothermal in the region coming from development financeinstitutions and the US government.”

At present, Reykjavik Geothermal is preparing the project andfinalising the paperwork. Dagur spoke of the time it takes to large-scale construction projects like this started, to get the stakeholdersinvolved together, but he also reported that the Ethiopiangovernment had offered excellent support.

In October 2013, the Icelandic International Development Agency(ICEIDA) inked a deal with the Ethiopian government to ramp up thecountry’s geothermal surface exploration and work on buildingcapacity. The focus is on low emissions geothermal development.ICEIDA is to help Ethiopia to decide on the best sites to drill throughvarious geophysical and geochemical studies for geothermal energy,and make the final arrangements for surface exploration. The areas ofTendaho Alalobeda and Aluto Langano have been identified as targetareas for surface exploration. Boosting the country’s geothermalcapacity will also be a priority.

A capacity building project is also due to be launched in Gedemsa.The focus will be on optimising the processes for geothermal drillingand best practices for maintaining geothermal power plants. Ethiopia

has been supplied with technical assistance in terms of drills and otherrelated equipment through its cooperation with ICEIDA as well.

“The overall objective of the cooperation is to assist the governmentof Ethiopia to increase their renewable energy access through lowemissions geothermal energy development for the social andeconomic benefit of the country,” said ICEIDA in a statement.

Iceland eyes geothermal in other African nationsICEIDA is involved in helping to develop the geothermal industrieswithin other countries in the East Africa Rift Valley. Earlier last year,ICEIDA signed a deal with Rwanda to develop the latter’s geothermalsector. Reykjavik Geothermal had won a contract to carry out theproject. It would do a reconnaissance and surface exploration studiesand start up exploratory drilling where possible, the company said.

Engilbert Gudmundsson, director general of ICEIDA, said, “I ampleased to see this cooperation result in the take-off of this excitinggeothermal exploration project, and that ICEIDA can continue toprovide support to the implementation of this project.”

According to Jon Örn Jonsson, director of Reykjavik Geothermal, it isclear that the project has been well prepared, with clearly definedoutputs and milestones. The experience of ICEIDA and the regionalknowledge and experience of the EU delegation in Rwanda will be of

POWERRenewables

37African Review of Business and Technology - November 2014www.africanreview.com

Looking at the next 10 to 15 years, a lot will depend on how governments

and powe r companies go about thedevelopment of geothermal. ere is

definitely a lot of appetite forgeothermal in Africa.

— Magnus Dagur, regional director for Africa and Middle East at Iceland-basedReykjavik Geothermal

Reykjavik Geothermal team in Africa.


RenewablesPOWER

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considerable benefit for the project. This is the first time that RG and[international consulting firm] Mannvit collaborate on geothermalexploration and development in East Africa and the award of thiscontract to the companies demonstrates the strength andcompetitiveness of Icelandic geothermal knowledge.

Iceland is supporting the development of geothermal in otherAfrican countries as well. This includes Kenya, the biggest producer ofgeothermal energy on the continent. ICEIDA is making preparationsfor cooperation with Kenya’s state-owned Geothermal DevelopmentCompany. Focus will be on creating a new geothermal trainingprogramme that is intended to attract not only Kenyans but energyspecialists from across the region.

ICEIDA has also been in talks with the Ugandan government aboutpotentially lending support to the country to develop its geothermalactivities. It has worked with the World Bank in Zambia to produce apre-feasibility study on a potential geothermal site in the country.Iceland’s development agency has also been working on a regionalgeothermal project for Burundi, East Congo and Rwanda. ICEIDA hasbeen in talks with Djibouti’s government and the World Bank aboutsupporting geothermal projects in Djibouti and also been in similardiscussions with the Tanzanian government.

Finally, ICEIDA has been overseeing a project to create a newgeothermal database for Africa, which puts material related toprojects, resources and reports all in one place. ICEIDA said, “Over thelast months, it has become apparent that compiling and storinginformation in one place on geothermal resources, projects, reports aswell as stakeholders in geothermal development in the countriesconcerned is of paramount importance. The database will respond tothis need and enable access to data for all relevant stakeholders.”

Learning from IcelandAccording to experts, there are specific areas where Iceland’scompetence and experience when it comes to geothermal canparticularly contribute to problem solving and dealing withchallenges in Africa. One is how to produce electricity at lowtemperature geothermal sites - as many of Africa’s potentialgeothermal sites are low temperature. An Icelandic engineering

consultancy, Verkís has completed a report that has estimates forelectricity production costs per kilowatt-hour at varying temperatures.This could be an extremely useful resource for African countries tryingto work out exploitation costs in low temperature geothermal areas.

African countries can also potentially draw lessons from Icelandwhen it comes to dealing with the carbon dioxide, which is emitted asa waste during geothermal energy generation. For example, Iceland iscurrently working on the construction of a methanol fuel plant thatwill pump carbon dioxide from geothermal activities into thecountry’s basalt rock. It would then combine with the rock to formlimestone. These are the kinds of solutions that African countries canpotentially learn from.

Dagur maintained that Africa can gain inspiration from Iceland’sbroader story as well. He said, “Until the seventies, the UNDP classifiedIceland as a developing country. One of the big things that helpedtransform the country’s economy was the development of renewableenergy and the move away from fossil fuels. There is no reason whyAfrican countries cannot do the same.” Nonetheless, Dagur argues thatalthough several African countries are blessed with geothermalresources, they will have to work hard at developing them.

“Looking at the next 10 to 15 years, a lot will depend on howgovernments and powe r companies go about the development ofgeothermal. There is definitely a lot of appetite for geothermal inAfrica. The big question is how active and serious governments aregoing to be about getting the right legislation and institutionalframework in place to get deals off the ground.” �

Sherelle Jacobs

Despite the significant geothermal potential in the East

African Ri, only Kenya makes it intothe top ten geothermal energy

producers in the world.


ICEIDA has been overseeing a project to create a new geothermal database for Africa,which puts material related to projects, resources and reports all in one place.


POWERResearch

39African Review of Business and Technology - October 2014www.africanreview.com

Increasing access to modern forms of energy is crucial tounlocking faster economic and social development in subSaharan Africa, according to the International Energy Agency’s

(IEA) Africa Energy Outlook.More than 620mn people in the region or about two-thirds of the

population live without electricity, and nearly 730mn people rely oninefficient forms of cooking. The use of solid biomass, mainly fuelwood and charcoal, outweighs that of all other fuels combined, andaverage electricity consumption per capita is not enough to power asingle 50W light bulb continuously.

“A better functioning energy sector is vital to ensuring that thecitizens of sub-Saharan Africa can fulfill their aspirations,” said IEAexecutive director Maria van der Hoeven.

In the IEA’s first comprehensive analysis of sub-Saharan Africa, it saidthat the region’s energy resources are more than sufficient to meet theneeds of its population, but that they are largely under-developed. Theregion accounted for almost 30 per cent of global oil and gas discoveriesmade over the last five years, and it is already home to several majorenergy producers including Nigeria, South Africa and Angola. It is alsoendowed with huge renewable energy resources, including widespreadsolar and hydro potential, as well as wind and geothermal.

The report also finds that investment in sub-Saharan energy supplyhas been growing, but that two-thirds of the total since 2000 has beenaimed at developing resources for export. Grid-based power generationcapacity continues to fall very far short of what is needed, and half of itis located in South Africa.

The report goes on to add that the sub-Saharan economy willquadruple in size by 2040, the population nearly doubled and energydemand to grow by around 80 per cent. Power generation capacityalso quadruples: renewables grow strongly to account for nearly 45per cent of total sub-Saharan capacity, varying in scale from largehydropower dams to smaller mini- and off-grid solutions, while thereis a greater use of natural gas in gas-producing countries.

Natural gas production reaches 230bn cu/m in 2040, led by Nigeria,which continues to be the largest producer, and increasing outputfrom Mozambique, Tanzania and Angola. LNG exports to the globalmarket will triple to around 95bn cu/m. Oil production will exceed sixmillion bpd in 2020 before falling back to 5.3mn bpd in 2040. Nigeriaand Angola continue to be the largest oil producers by far, but with ahost of other producers supplying smaller volumes. Coal supply willgrow by 50 per cent, and continue to be focused on South Africa, butis expected to be increasingly joined by Mozambique and others.

In 2040, energy consumption per capita will remain very low, andthe widespread use of fuel wood and charcoal will persist. Theoutlook for providing access to electricity is bittersweet: nearly onebillion people gain access to electricity by 2040 but, because of rapidpopulation growth, more than half a billion people remain without it.Sub-Saharan Africa also stands on the front line when it comes to theimpacts of climate change, even though it continues to make only asmall contribution to global energy-related carbon dioxide emissions.

“Economic and social development in sub-Saharan Africa hingescritically on fixing the energy sector,” said IEA’s chief economist FatihBirol. “The payoff can be huge with each additional dollar invested inthe power sector boosting the overall economy by US$15.”

In an African Century Case, the IEA report shows that three actionscould boost the sub-Saharan economy by a further 30 per cent in2040. These actions are:� An additional US$450bn in power sector investment, reducing

power outages by half and achieving universal electricity access inurban areas.

� Deeper regional co-operation and integration, facilitating newlarge-scale generation and transmission projects and enabling afurther expansion in cross-border trade.

� Better management of energy resources and revenues, adoptingrobust and transparent processes that allow for more effective useof oil and gas revenues.

As well as boosting economic growth, these actions bringelectricity to an additional 230mn people by 2040. They result inmore oil and gas projects going ahead and a higher share of theresulting government revenues being reinvested in keyinfrastructure. More regional electricity supply and transmissionprojects also advance, helping to keep down the average cost ofsupply. But the report warns that these actions must be accompaniedby broad governance reforms if they are to put sub-Saharan Africa ona more rapid path to a modern, integrated energy system for all. �

Energy sector to powersub-Saharan Africa

The outlook for providing access to electricity is bittersweet: nearly one billion peoplegain access to electricity by 2040 but, because of rapid population growth, more thanhalf a billion people remain without it.

S11�ATR�Nov�2014�-�Power�&�Construction_Layout�1��24/10/2014��10:30��Page�39

1 9 4:01 PM

High system availability is the mosteffective lever for increasingproductivity. Less the downtime, the

better. This is why it is important to identifypotential sources of error early and toperform scheduled maintenance at the righttime within the production cycle.

The Siplus CMS condition monitoringsystems developed by Siemens have provedideal for monitoring mechanicalcomponents. All of an operator’s machinesand its entire system are constantly in view.This facilitates predictive maintenance,allowing an operator to plan and implementmaintenance operations in due time.

After prolonged operating periods withoutinterruptions, significant irregularitiesresulting from wear or other damage-relatedcauses can be detected early on with thehelp of documented trend histories.

Foreseeable problems can be corrected atan early stage, before resulting in majordamage or even total failure, with the oftencostly consequences.

Permanent monitoring and predictivemaintenanceSiplus CMS proves its worth day after day inapplications all around the world and inmany industries contributes to a significantincrease in machine and plant availabilitydue to the permanent monitoring of levelsof vibration in machines, bearings and gearunits, which in turn makes a hugecontribution to increasing productivity. Thesystems can be applied to automotiveindustry, chemical production, renewableenergies operations, mechanicalengineering, metals and miningenvironments, food and beverages sectors,oil and gas operations, pharmaceuticalsfirms, water and wastewater enterprises,pulp and paper companies, and a host ofcross-industry applications. In terms ofsystem components, Siemens has optimisedintegration in automation systems (TIA, PCS

7), simple connection to SCADA systems(WinCC or other), and remote services.

Mechanical wear, imbalances, defectivebearings and other damage scenarios cancause machinery to increase its energyconsumption. Siplus CMS facilitates the earlydetection of such deficiencies which arethen signalled via the SIMATIC MaintenanceStation, for example. This allows appropriatemaintenance measures to be taken toensure restoration of the system's scheduledenergy efficiency levels.

The Siplus CMS system portfoliocomprises CMS1000, CMS2000, CMS4000and CMS X-Tools.

CMS1000 is compact and simple solution.It offers characteristic value-basedmonitoring through RMS (machinevibration), DKW (bearing monitoring), and atraffic light display of machine status.CMS2000 is a modular and configurable

solution, a web-based system deliveringdetailed damage detection using frequency-selective diagnostics, utilising raw datarecording and output for trend recordingand analysis, and monitoring of processvariables. It is modularly expandable withVIB-MUX and temperature modules.

CMS4000 is a powerful proposition, ascalable and freely configurable analysissystem for detailed and comprehensivediagnostics and condition monitoring. Itoffers configurable analysis models withknow-how protection, easy integration intoexisting automation systems, and recordingof process signals.

With the powerful CMS X-Toolsdiagnostics software, it is possible to createand protect own analysis models, tointegrate process data of the control, to usefunction block libraries, and to archive datafor quality assurance. �

Condition MonitoringPOWER

40

Intelligent maintenancefor viable investmentPermanent monitoring of machine and plant states can equate to optimalpower productivity

The VIB-MUX module from Siemens expands the Siplus CMS2000 condition monitoring system with additional inputsfor vibration sensors.



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GIVE ME PARTS THAT WON’T QUIT.

4:01 PM


Screwdriving technology is the mostpopular form of joining technology. Inthe automobile industry for example,

aluminium, light metals and plastics are usedmore frequently due to the need forlightweight construction. Housings forpumps, electronic control units (ECUs),airbags, interior components – all theseproducts are normally assembled using self-forming or self-cutting screws. In theprocessing of these screws a tapping drillhole is used, the screw itself however acts asthe thread forming or cutting tool. Howeverfor assemblies usually in series assembly, forself-forming or self-cutting screws tighteningbased on a defined end torque is theestablished screwdriving procedure. Thetorque-guided screwdriving process is alwaysthe most adequate solution if the formingtorque required lies at a constant value.

Screw-in torque on pre-load forceScrew shaft diameter tolerances in thetapping drill hole, varying materials anddivergent surface properties of thecomponents to be assembled or theconnection element can directly influencethe forming or cutting torque. They alsodirectly influence the share of the torquewhich is responsible for applying the preloadforce. Jürgen Hierold, sales manager atDeprag Schulz, explained, “Imagine thefollowing case: A connection element with ashaft diameter at the upper end of thetolerance parameter comes into contact witha tapping drill hole whose diameter is at thelower end of the tolerance range due to toolwear. We establish during the screw jointanalysis that the thread forming or cuttingprocess requires approx. 60 per cent of theapplied torque and just 40 per cent is left togenerate the preload force. If however thetolerances alter and a smaller shaft diametercomes into contact with a larger tapping drillhole then the screw assembly to torqueseems at first glance to be ok. However thescrew joint analysis will show that the

forming and cutting process requires just 30per cent and the share of the torqueresponsible for the preload force is 70 percent. This can either lead in one case to thedestruction of the component or in the otherto an insufficient, faulty and unreliable screwassembly”.

If you judge the quality of the screwassembly of self-forming or self-cuttingscrews on the basis of the torque values thenthe results received seem at first glance to beOK. The sensors in the screwdriver spindleregister the specified end tightening value asok. “However we know that the appliedtorque is proportionally shared in the formingor cutting process to preload force”, MrHierold stressed. “The aim for every screwassembly is therefore not a constant endtorque value but a constant preload force”. In

order to ensure a constant preload force evenwith fluctuating drilling torque the specialistfor screwdriving technology Deprag hasdeveloped the friction value procedure.

“The friction value procedure guarantees aconstant preload force as the drilling torquehas already been registered and calculatedduring the assembly process in order todetermine the end torque required for thepreload force.”

Generate force using the friction valueScrew assembly using friction valueprocedure from Deprag is based on resultsfrom the screw joint analysis. In the torquedevelopment graph a threshold value for theangle measurement is assigned and based onthe analysis a range for the friction valuemeasurement is defined. From a sequence oftorque measurement results an average orpeak value – the friction value – is calculated.A difference torque is added to this. The shutoff torque is the sum of the friction value anddifference torque. “Using this method thedifferences in this procedure to those of otherproviders is clearly shown. We generate thefriction value over the angle range ratherthan as others who use the connectingsurface”, outlines Jürgen Hierold. “The frictionvalue determination via connecting surface isreliant on the increase in measurement value;we are reliant on a measurement range withmany individual values and take the averagefrom this. It is the more reliable method”.

The preload force is applied reliably viathe friction dependent torque screwassembly despite the appearance offluctuations in the forming or cuttingprocess. “Unfortunately as well as all theseadvantages there is also a disadvantage inthis procedure”, said Hierold. “The endtightening values are not constant due tothe fluctuation forming torque. A qualityevaluation of individual screw assemblieswhich is usually determined via the endtightening value e.g. using the Cmk-Index,is in this way, no longer an option.” �

Equipment CONSTRUCTION

42

Using the frictionvalue procedureProcessing reliability for the assembly of self-forming and self-cutting screws



Electronics and control technologies arebecoming increasingly important inconstruction machinery, which has long

been dominated by hydraulic systems.Sensors such as encoders or potentiometersare being used to provide control units withpositioning and angular and speed data. Thisapplication places high demands on sensors.Outdoor operation is subject to varyingclimatic conditions such as extremetemperature fluctuations and the ingress ofdirt, dust and liquids. The resultingrequirements for high ruggedness and a highdegree of protection form the basis ofHengstler’s newly designed encoder families,available locally from Countapulse Controls.

Encoders are used for positioning, angular,speed and length measurements inconstruction machinery applications wherethey facilitate both the driver’s work andenhance productivity, such as straight-to-the-point positioning of loads for hoistingequipment or restricting work zones in orderto protect against collisions.

Encoders used in construction equipmentalways prove their capabilities underextremely harsh conditions by providingreliable feedback on the positioning,excursion angles or speeds. The robustencoder families from Hengstler have proventechnology that is completely free fromsliding contacts and therefore ensures highreliability and longevity. The programmableabsolute encoder types in particular do notnecessitate any re-adjustment as comparedto other technology products.

The proper function and accuracy ofpotentiometers for example is adverselyaffected by temperature fluctuations andwear and tear. In addition, encoders offer full360° scanning, which allows obtainingaccurate feedback over a full turn or evenseveral turns. Multi turn versions make itpossible to read the exact number of turns atany time, even after voltage drops orcomplete power failures.

Machinery manufacturers have validreasons to use reliable sensors, such as legalrequirements for the prevention of accidentsor registration of vehicles in addition toachieving increased productivity. For example,an overload warning device is required forboth crane systems and hydraulic excavatorsin order to warn the driver as soon as thepermissible load is exceeded. For hydraulicexcavators, this can be implemented bymeans of a measuring element thatdetermines the operating pressure in thecantilever (jib) cylinder and which transmits awarning signal to the driver as soon as adefined pressure is exceeded. This functioncan be assumed by encoders andsupplemented by feedback to the system. Bydetermining the angle of excursion of eachrotating axis of the excavator arm and theslewing ring between the upper and lowertrolley, the maximum permissible load in theexcavator bucket or crane suspension can becalculated at any time.

Construction work often has to be carriedout in confined areas such as close toelectrical overhead power lines or on siteswhere several hoisting cranes may impedeeach other or in pedestrian zones. Hoistingequipment such as hydraulic excavators maybe used in buildings with restricted ceilingheight or mobile cranes in railway loadingstations with overhead power lines. In such

cases, crane systems use a so-calledelectronic safety working range. An electroniccontrol system protects against obstacles bydecelerating the crane when it comes tooclose to an obstacle and thus preventing acollision. Anti-collision systems are also usedfor large construction sites with severalcranes. They monitor each crane position andreliably prevent them from getting too closeto the neighbouring crane. In this regard,encoders determine the exact position andexcursion angle of the machine and transmitit to the control electronics. The work of craneoperators is made easier if loads arepositioned directly. To achieve this, anencoder continuously provides feedback tothe control unit on the position and speed ofthe crane. Set points can be selected by microfine turning adjustments and compensatingfor the effects of wind or load conditions.

Hydraulic wheel excavators are generallyonly approved for road traffic conditions ifequipped with a sensor ensuring that theupper trolley is aligned in the drivingdirection. Inductive sensors are often used forthis purpose. However, installing an encoderin the rim between the upper and lowertrolley has opened up new possibilities. Theessential technical requirements for usingencoders in construction equipment includea high degree of protection, widetemperature range, high shock and vibrationresistance, high resistance to water andhumidity, as well as high load resistance ofthe shaft. Encoders should have a protectionrating of IP67 or even IP69.

Rugged technologies make it easier forelectronic components to enter and becomeestablished in the field of constructionequipment. They also respond to therequirements for high safety, productivity andoperator convenience. Even if it might takeanother few years for electronics to replacehydraulics, it is already obvious that the roleof sensor technology will becomeincreasingly important. �

Machinery CONSTRUCTION

44

The way forward to control in constructionDevelopments in electronics and control technologies for machinery arehaving a significant impact on building operations

Technology and flexibility are the key characteristics ofthe Hengstler Acuro series range



S12�ATR�Nov�2014�-�Construction_Layout�1��24/10/2014��10:31��Page�45

First of all, let us distinguish between a“rugged” computer and a “ruggedized”computer (or tablet or smartphone). A

rugged computer is designed to operatereliably in very harsh environments andconditions. The term “ruggedized” gives thesense that fragile internal components havebeen somehow protected. Truly ruggeddevices are not simply wrapped in a toughshell.

Tough and durable mobile computers andsmartphones are gaining in popularity –because the customers demand moredurable products! – and there are actuallysome mainstream devices that could bedescribed as ruggedized (and are oftenadvertised as rugged). But they are not trulyrugged. They might be waterproof but lackother aspects of ruggedness, like the abilityto withstand vibrations/shocks and functionwell in extreme temperatures.

A device, to be deemed rugged, shouldhave passed some of the MIL-STD tests (theAmerican military standard for equipment).They must be highly rated on the ingressprotection (IP) scale for protection againstdust and liquids.

Tests carried out on rugged computersDrop and shock testing. This is one of themost important tests for rugged computers,simply because rugged computers aredropped all the time by workers in thelogistics,forestry, public transportation,construction, mining, security and otherindustries where rugged computers are inhigh demand. Drop a normal computer andyou will easily break the display or the harddrive. Drop a rugged computer and nothingwill happen – at least it is highly unlikely thatthe device will break if it has passed all therelevant tests. All rugged mobile computersare tested to ensure they can survive falls aswell as highforce impact to the devices’

casings. Drop tests are certified byindependent test laboratories and performedin accordance with MIL-STD-810G.

There are eight different procedures tochoose from that each use different ways tocause shock or impact. The “transit drop test”is the most cited. It requires items to survive atotal of 26 drops from the height of 122 cm,on each face, edge and corner, onto a hardsurface like concrete. Mobile field computersare inevitably exposed to rain, spills andsplashes. The second number of the IP codedescribes the liquid ingress protection, i.e.how well the unit is protected against water.The scale ranges from dripping water tocontinuous immersion in water. Waterresistance tests are often carried out by themanufacturers of rugged computers byexposing the computer to powerful waterjets from many directions without harmfuleffects. The test duration, water volume andwater pressure varies depending on therating. The water temperature is lower thanthe device.

Ordinary mobile computers are sensitiveto vibrations and are not built to handlevibrations. Hard drives disks are especiallyvulnerable when subjected to vibration.

TechnologyCONSTRUCTION

Rubust IT forhard workersA truly rugged computer is so much morethan just a normal device wrapped in atough outer case



47African Review of Business and Technology - October 2014www.africanreview.com

CONSTRUCTIONTechnology

Rugged computers, however, must be ableto handle vibrations since they are oftenused in vehicles that travel on bumpy andrough surfaces. Vibration tests are performedin accordance with MIL-STD-810G. They aredesigned to determine if a device canwithstand the vibrations it would be exposedto during its lifecycle. The tests uselaboratory shakers set to different levels tosimulate being on a vehicle or carried by aperson, with variations in the vibrations’wave form, frequency and intensitydepending on the type of device and theenvironment being simulated.

A rugged computer must be able to keepout particles. Almost all field workers areexposed to dust and dirt at some point thatwould slow key functions and damagecomponents if not protected. The dustresistance procedure tests ingress of smalldust particles. Flour and sand is projectedonto the device at high wind speeds and hightemperatures for several hours, rotating thedevice and varying the temperature and windspeed. The blowing sand resistanceprocedure is basically the same as the dusttest but the test is done in higher wind speed.The high end test simulates being near anaircraft. Extreme temperature testing. Ruggedmobile computers must be able to handle

extreme temperatures and wild temperatureswings. For example, Handheld’s recentlylaunched Nautiz X1 smartphone is designedto function well in temperatures ranging from-20°C to 60°C (-4°F to 140°F). Hightemperature and low temperature tests are

conducted in accordance with MIL-STD-810G.When testing for operability during hightemperatures, the devices exposed to hightemperatures while it is turned off (storage),while being turned on used (operation), andhow it works under operational temperaturesafter having been exposed to higher storagetemperatures (tactical-standby tooperational). When testing for operabilityduring low temperatures, again threeprocedures are carried out to determine howthe device will behave in low temperatures.They are much the same as in the hightemperatures tests, except being done infreezing conditions.

In addition to liquid resistance testing for IPrating, many manufacturers of rugged mobilecomputers test their devices in highly humidconditions as a separate test that is definedby the MIL-STD-810G standard. Thecomputers are exposed to humidity well over90 per cent for several days in tropical heat.Many of the same features that make mobilecomputers liquid resistant also help preventdamage from high humidity.

Rugged computers are built - inside andout - to be rugged. No fragile parts wrappedin a hard shell here. �

Jerker Hellström, CEO, Handheld Group


Apanel discussion hosted by Aurecon at the Southern AfricanRoad Federation (SARF) and International Road Federation (IRF)conference, held at the CSIR Convention Centre, Pretoria

recently, focused on transport infrastructure. The discussion wasattended by representatives of road agencies, funders, private sectortransporters and consultants, and moderated by Abbas Jamie, Africanand Middle East transport leader at Aurecon.

Transport corridors have been on the African agenda since the 1970s.Africa’s trade with itself is low and declining in comparison with otherregions: 11-15 per cent of African trade is with itself and Africa’scontribution to global trade is only 2-3 per cent. Solving this challenge isinextricably linked to country economic objectives of increasing primaryexports while diversifying the economy. The solution will also mark theachievement of a vision: a continent capable of growing and sustainingitself. A transport corridor needs to efficiently connect hubs ofeconomic activity and areas of potential growth along its alignment.The African continent has the highest transport costs in the world,accounting for above 20 per cent of the total imported price of goodswithin landlocked countries. This inefficient and expensivetransportation restricts business, competitiveness and intra-regionaltrade, consequently stunting job creation and poverty reduction.

“Trade is by its nature cross-border and potentially multimodal,”remarked Paul Lombard, general manager for the rest of Africa andMiddle East at Aurecon, during the introduction to the discussion.With 92-97 per cent of Africa’s international trade passing throughports, while 80 per cent of intra-African trade takes place via road,being able to plan and incorporate multimodal chains, including rail,into transport corridors is an important factor in efficiency. To an evengreater extent, is the recognition that a corridor consists of operationalsystems as well as hard infrastructure. Much of the requirement forefficient corridors extends beyond better provision of roadinfrastructure, although this is important.

The Federation of East and Southern African Road TransportAssociations (FESARTA) Executive Director, Barney Curtis, raised theexample of one stop border posts which were implemented along theNorthern Corridor in East Africa. During implementation, surveysshowed dramatic reductions in border transit times with delays ofdays receding to under 6 hours. These gains in productivity and costreduction for transporters were based on improved coordinationresulting from operational changes rather than infrastructureremodelling, which is often seen as a panacea for border performance.While not all one stop border posts were producing the intendedresults, Curtis pleaded for them not to be abandoned. The closure ofTradeMark Southern Africa (TMSA) and the East Africa Trade Hub wasregretted since they had contributed to infrastructure and policydevelopment and trade facilitation.

Wim van Schalkwyk, formerly from TMSA and now a developmentplanner at Aurecon, provided the background on how informationsystems were crucial to the virtuous cycle of better coordination,planning and implementation. He emphasised that there was a still aneed to avoid duplication, and to integrate all the datasets andinformation management systems into a single open data platformacross the tripartite regional economic communities.

The COMESA-EAC-SADC Tripartite is a platform for harmonisingpolicies and programmes within those regional economiccommunities. Information openness was also raised as a factor inensuring that corridor performance remained accountable andtransparent. However, interested stakeholders in the audienceadvocated for real-time monitoring as the next step to achieve truetransparency - a move that would require further donor or regionalbody funding.

Good corridor development and optimisation requires coordinationof multiple stakeholders to be successful. Lovemore Bingandadi,programme manager of the Tripartite Transport and Trade FacilitationProgramme (TTTFP), spoke of the complicated nature of thismultilateral process whereby the movement from technical andeconomic studies to consensus on harmonisation of transport laws,regulations and technical standards was in itself a very slow process.This was only exceeded by the tedious procedure of domesticconsultation and then ratification and implementation within multiplenational governments. It was up to regional coordinating bodies suchas the TTTFP to provide technical assistance to governments indomesticating the protocols. At a project implementation level, theinfrastructure project would involve robust coordination betweenmultiple governments, navigation of harmonised and non-harmonised regulations and policy, as well as coordination with theSPV and its appointed facility managers. �

Infrastructure CONSTRUCTION

48

The potential of Africantransport corridorsThe key to unlocking Africa’s potential is new investment in sustainablenetworks to connect economic hubs

The panellists at the panel discussion held recently in Pretoria



CONSTRUCTIONInfrastructure

49African Review of Business and Technology - October 2014

www.bomag.com

Waste Compaction at its best.


Ibrahim Bakr is an Egyptian governmentemployee, a proud family man, and ownerof his own modest home in Dakahlya - in the

heart of the Nile Delta region. However, untilrecently, life was not so straightforward for the40 year-old father of four. He was forced to livein tough conditions with his extended familyin a rundown apartment building.

"Living conditions were really hard, and Iwas short on money. I wanted to move awayquickly from the family house, but I couldn’tafford to," said Ibrahim. With the support ofDakahlya Businessmen's Association forCommunity Development (DBACD), amicrofinance institution (MFI) in Egypt and akey partner for IFC, which is part of the WorldBank Group, it was easy for Ibrahim to get aloan of 20,000 Egyptian pounds (US$2,800).That was all he needed to finish building hisown house on a patch of inherited land.

"The process was so simple,” said Ibrahim.“And it only took me a week to apply for theloan and then receive it."

The market for housing microfinanceDBACD was founded in 1995 and has risen tobecome one of the largest and mostsuccessful MFIs in Egypt. As of December2013, the association had reached 115,000active borrowers - over half of whom arewomen - with a portfolio of 220mn Egyptianpounds (US$31.5mn).

Since 2012, IFC has been helping DBACDmove into housing microfinance (HMF) - animportant untapped market in a country withimmense demand for affordable housing, butsorely lacking any sort of serious mortgagefinancing. Indeed, the government estimatesthat about 560,000 families need new homesevery year, but only 90,000 units are supplied.

Most existing banks and MFIs in Egypt simplyhave not provided the kind of loan productsand services required to help build orrenovate homes.

Whereas, in Egypt, the the public sectorhas historically been the only provider oflow income housing, they have not beenable to meet demand and, as a result, manylow income families turn to poor qualityinformal housing. The construction orrefurbishment of this informal housing isusually paid for by money borrowed fromfamily or friends, since very few people haveaccess to the financial services that can liftthem out of poverty. IFC’s support has beeninstrumental in helping DBACD develop atype of loan that could appeal to people likeIbrahim, who want to buy an affordableproperty or to upgrade/improve conditionsin an existing home. �

Funding for buildingHousing microfinance has given several people a new lease of life in Egypt


With lush green mountains draped bya spectacular blue sky and simplegreen spaces, Arusha is known for

its natural beauty. With a deliberate campaignto improve the city’s infrastructure further, itsallure has been enhanced by improved citystreets, access to basic services and a betterquality of life for its citizens.

The ongoing infrastructure development inArusha is being financed through theTanzania Strategic Cities Project (TSCP), withfunds of about US$213mn by the World BankGroup and US$6mn from the Danishgovernment. The programme, which startedtwo years ago, targets Tanzania’s growingmedium-sized cities, including Arusha and sixother local government authorities (LGAs) –Tanga, Mwanza, Kigoma, Mbeya, Mtwara andDodoma.

According to Saumu Kassim, a taxi driver,traffic is much better today thanks to theimproved roads. “Previously, Father Babu andNHC roads were not usable despite theirstrategic connection to different places in thecity. Today however, with the roads in goodshape, traffic has been freed up everywhereas more cars can now pass through these keyroutes. The city altogether looks much betterand we also see that property value hasappreciated in several areas, which were oncevery dusty. It is appropriate now to use ourlabel ‘the Geneva of East Africa.’”

Residents are also relieved with the 800-metre storm water drainage system whichhas contained flooding in the city. “Beforeconstruction, it was dangerous to walk in therain in this part of the city, but that is now athing of the past,” said James Mshumbushi, abusinessman on Bondeni Street, which wasonce severely affected by flooding.“Compared to earlier, more people come toshop in this area as the traffic is lesscongested.”

Innovating urban integrationAs Tanzania continues urbanising rapidly,with 27 per cent of the population residing incities in 2012, up from 5.7 per cent in 1967, itis estimated that there will be more people

living in cities than in rural areas by 2030,increasing pressure on already stretchedpublic services. Against this background, theTSCP aims to improve the quality of andaccess to basic urban services through thebuilding of core infrastructure and theintroduction of innovations for improvedurban management.

A key innovation has been the integrationof geographic information systems (GIS) withthe Local Government Revenue CollectionInformation System (LGRCIS). The systemswork together to ensure that all properties –commercial, residential and others – aremapped and assessed for their tax revenuepotential. Equipped with this information, cityauthorities will have a clearer picture of thetax earnings needed to finance the services toimprove the quality of life and businessenvironment. “With the GIS mapping, wehave been able to define the commercialbuildings in the whole of Arusha,” said DanielMruma, the quality assurance team leader forthe GIS unit of the City Council. “These are theones that can generate more revenues for thecouncil, rather than residential buildings.”

Full completion of the GIS mapping andevaluation is underway, but several areashave been entered into the LGRCIS system

and invoiced since December 2013. Once thetaxes are paid and a receipt is issued to aproprietor, the electronic revenue collectionsystem automatically changes the code in thecomputer to show compliance. LGRCISreplaces the old paper and cash-basedsystems with a more transparent andconvenient means of payment. Soon,residents and businesses will be able to payonline or through mobile banking.

“Supporting cities’ efforts to collect theirown source revenues using technology is partof our overall efforts to improve financialsustainability of urbanisation in the long run,”said Mehmet Onur Ozlu, senior urbanspecialist and task team leader for the TSCP.“Arusha’s successful launch of LGRCIS is anexample of how this can be done withtangible results.”

An operational LGRCIS system has alsomeant the city is in a better position to keepup with the expectations of the residents whoare enjoying the benefits from the upgradedinfrastructure. Not only have the new roadsdrastically reduced traffic congestion andprovided motorists with better alternativeroutes, they are also making it easier to collecttaxes as happier residents have become morewelcoming of the taxman.


50

Refurbishing ArushaA city-wide building project to improve basic urban services through coreinfrastructure and innovations for improved urban management

Tanzania is achieving rapid growth in urbanisation, with 27 per cent of the population residing in cities from 2012


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“Our experience has been that people alwaystry to avoid paying taxes, but what we haveseen here is what has also been documented instudies; tangible developments compel citizensto pay their taxes,” said Bruno Mlacha, revenueaccountant for the city council. “The new roads,which are of exceptional quality, have been agreat incentive for them to pay up. Wheneverwe announce that we are visiting an area tocheck on tax compliance, we find that people

from different locations come to our offices ontheir own volition before we even visit theirarea. Some call you and say, ‘can you come andpick up your cheque?”

Transparent systemsThe numbers support Mlacha’s account. Inthe three months between December 2013and February 2014, the city collectedUS$103,650 – nearly double the amount

US$52,866 collected in the five monthsbefore the LGRCIS became operational.

“The computerisation has made the taxsystem more transparent and credible forpayers and it gives them confidence that theyare paying for something genuine asopposed to concocted,” Mlacha added.

The city’s overall revenue outlook lookspromising. The city has already generatedUS$1.6bn in property taxes, services levies,hotel levies, business licenses and billboards(which is nearly double) in just the first threemonths of the new LGCRIS system. Thesefigures are expected to grow once theproperty evaluation process is completed andmore tax-paying units are harnessed underthe new system.

“The new revenue enhancement and urbanmanagement systems developed in Arushaand the other TSCP cities are best practice -we already see a lot of interest from citiesaround the world in the work being carriedout in Tanzania,” said Andre Bald, senior urbanspecialist at World Bank. “And not only is thenew technology improving revenuecollection - LGRCIS is a powerful tool tosupport municipalities with their planning,land management, and operations andmaintenance roles.” �

CONSTRUCTIONInfrastructure


There is a strong need toimprove services in Aruba



JCB has been busy, developing aninnovative, low-cost solution fortransporting and placing telegraph poles

in East African markets. Its new Polemasterspecification can be supplied with any 3CX,3DX or 4CX backhoe loader that is equippedwith a six-in-one loader bucket and can besupplied as a new machine or retro-fit toexisting backhoe loaders.

Equipped to installTwo V-shaped carrier brackets are securelybolted to the bucket, one to the top of theback plate and the other to the top of the six-in-one clamshell. This allows the operator toeasily raise the telegraph pole into a carryingposition, where it is then securely chained tothe bucket using sturdy mountings on theside of the bucket.

The machine operator can then lift the poleinto position to install in the ground, or rotateit onto a third V-shaped bracket mountedahead of the cab, if the pole is to be carriedacross site. As part of a complete one-machine pole installation solution, thebackhoe is equipped with an auger on therear arm, allowing the operator to provide aplacing hole for the pole. A dedicated hand-held hydraulic circuit on the side of themachine delivers hydraulic flow to powerhand-held breakers where installationinvolves breaking through roads andpavements. This circuit can also be used forhydraulic cutting equipment and other handheld tools, adding to the versatility of thePolemaster specification.

East African evaluationEarly tests show that the system can be usedto install a telegraph pole in just 15 minutes,or up to four poles per hour, greatlyimproving productivity on site. JCB currentlyhas field test machines at work in Tanzania,Kenya and Uganda, while Sudan is also being

considered, though as Sudan mainly uses aconcrete pole rather than timber, theengineers are looking at secure straps ratherthan chains and a roller system on the bracketahead of the cab.

With up to 1.6mn poles to be installed inSudan, a further 1.2mn in Kenya and an

estimated 1.4mn poles for Tanzania, there is ahuge market potential for the Polemasterattachment. The attachment further enhancesthe versatility and flexibility of the JCBbackhoe loader, while bringing much neededpower and communication to communitiesthroughout the developing world. �


52

The perfect tool fortelegraph polesJCB’s Polemaster concept represents the potential for massiveproductivity improvements for projects connecting communitieswith power and communications

The JCB 4CX PoleMaster is innovative, low cost solution fortransporting and placing telegraph poles in East African markets



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54 African Review of Business and Technology - October 2014 www.africanreview.com

The day that Vusi Shabangu was handedthe keys to his new home was the bestday of his life. Early in March 2014 he

moved into a two-bedroom house in theCornubia housing development outsideDurban, a place where a single room waslarger than the shack he had called home. In1995, excited by a new democracy and thepromise of opportunity, Shabangu hadmoved from rural KwaZulu-Natal to Durban insearch of a better life. For almost twodecades, he worked as an itinerant labourer,moving from one backyard room to a shack inone of the informal settlements that ringeThekwini.

It does not matter to Shabangu that he is aresident in a landmark development; all thatmatters are the keys in his hands. Along withthe keys, he gets to enjoy the parks andrecreation, and the communal hall as well. Hewill grow to appreciate the fact that Cornubia,which was renamed in April 2014 byPresident Jacob Zuma when he handed overkeys to another set of residents, is designedas a community with schools, clinics,recreational and shopping facilities. Workopportunities are also easily reached by thenew mass transit routes that are part andparcel of the infrastructure improvementsincluded in the design.

Cornubia has been created and is beingdeveloped by the eThekwini Municipality andagriculture giant Tongaat Hulett. Oncecompleted – expected to be in 20 years – themixed-use development of housing,commercial and industrial sites will changethe skyline between King Shaka InternationalAirport and Umhlanga.

Karen Petersen, the human settlementexecutive at Tongaat Hulett, explained thatCornubia will provide over 24,000 residentialunits, catering to all races and across incomebands. More than just a housingdevelopment, the vision is to provideresidents with access to employment andretail opportunities as well. She said, “By

offering a safe and secure environment, trafficaccessibility, and access to other urbanamenities and services, Cornubia’s mixed-usedevelopment will provide a place for allresidents to live, work and play.”

Communal spacesBut its importance extends beyondamenities. She said that Cornubia puts an endto the stereotype that social housing is simplyabout putting a roof over someone’s head.The communal spaces are designed toencourage social interaction and create asense of ownership and commitment tocommunity.

“There is a real social implication of poorlydesigned housing. If you don’t create placeswhere people are proud to live, then you‘re

just reinforcing the idea that neither thebuilding nor the tenant is worth the effort.”

A key principle behind Cornubia is theintegration of different income levels anda mix of freehold and rental housing. Inline with international design concepts,provision has also been made for socialinfrastructure. “The planning was drivenaround the need for accessibility, so allfacilities – schools, health and other socialinfrastructure – will be within a five-minute walk.”

Social and environmental sustainability areimportant considerations for Tongaat Hulett,and the buildings going up in the commercialand industrial sections are designed to beenvironmentally sensitive, and totally greenwhere possible. “There are financial

InfrastructureCONSTRUCTION

Delivering domicilesnext to DurbanThere has been considerable investment in a new city on South Africa'seast coast, a mixed-use development of housing, commerce and industry

The first 482 houses in the initial phase at Cornubia have been finished and handed over to residents (Image: GCIS)


56 African Review of Business and Technology - October 2014 www.africanreview.com


limitations, which restrict major greeninterventions in the subsidised housingcomponents of the project. However, TongaatHulett where appropriate is encouraging theadoption of these principles. Unfortunately,for now, this will, in all likelihood, only takeplace in the higher intensitycommercial/mixed-use areas like CornubiaTown Centre,” Petersen said.

By the time the US$2.1bn site is completedin 2030, the 1,200ha property will consist of24,000 housing units, of which 15,000 will below-cost homes; there will be two millionsquare metres of commercial space and an80-hectare industrial development. Theconstruction phase will create up to 15,000new jobs, while the completed developmentwill create space for about 48,000 permanentretail and industrial jobs. Residents willcontribute about US$27mn in rates to theeThekwini coffers and a further US$190mn inVAT receipts for the national fiscus.

Cornubia is important for the potentialbenefits it will create in housing, employmentand economic opportunity. It represents ashift in thinking in the housing programmesof local and national housing departmentsand is proving to a benchmark for futuredevelopment in South Africa.

Human settlementsConnie September, minister for humansettlements explained, “We have shiftedfrom housing to human settlements. We

now have an integrated approach thatincludes better spatial planning. Today, wewant to build communities planned aroundwater and sanitation, with schools andrecreation facilities in close proximity, andeconomic opportunities close by. We wantto plant trees.”

To promote the creation of vibrantcommunities that have access to adequatesocial and economic facilities, thegovernment agreed that the formerdepartment of housing should have itsmandate widened to facilitate sustainablehuman settlements. In addition to housing,the new mandate includes integratedprovision of services, social facilities andeconomic opportunities.

September said that her department iscommitted to addressing the legacy of spatialpoverty by developing human settlements inwell-located areas with sufficient social andeconomic opportunities. “This will be a keypriority of the department in the future. Insimple, we are striving to create newsettlements that are conducive for humanhabitation and growth.”

Taking a leaf from the National Treasury’ssuccessful public-private partnership unit, thedepartment has also been more receptive toworking with the private sector whenbuilding new housing.

Petersen said Tongaat Hulett refers toCornubia as “a joint initiative orcollaboration between public and private

sector partners”. It is built on land acquiredfrom Hulett at below market rates with theunderstanding that it will be used for low-income housing.

Housing backlogWhen negotiations began for a new politicaldispensation in South Africa, there was abacklog of 1.3mn homes. Each year, thedemand has grown by a further 200,000 withjust 50,000 new homes being built to meetthe demand.

From 1994 onwards, through theReconstruction and DevelopmentProgramme, the new administration beganbuilding homes at a rapid pace. To date,almost three million homes have been built,providing accommodation to nearly 13mnSouth Africans for the first time.

Critics of the RDP build have slated thepoor build quality of these houses. Theirbiggest complaint though, has been aesthetic– RDP homes resemble the buildingprogrammes of the apartheid government –bleak, massive settlements far away fromwork opportunities, decent public transportand retailers.

Containing the growing backlog whilemeeting existing demand meant “gooddesign” and “communities” were conceptsthat were not considered. However, in the lastfew years, there has been a growingrecognition that it’s not just houses that needto be built, but communities and placeswhere people want to live.

Cornubia is one of four projects nationallythat signal this shift in the way thedepartment of human settlements viewsdevelopment. It was one of the first whenconstruction began in March 2012, in linewith the department’s Breaking New Groundpolicy. Nationally, there are two otherprojects that have been receiving newresidents. In the Waterberg District, theLephalale Project’s 29,709 houses are beingbuilt adjacent to a retail and commercialprecinct. It has been fast-tracked to deal witha housing backlog aggravated by the influx ofworkers to the Medupi power station, whichis 21 km away. The Khutsong Project inMerafong was fast-tracked to move 25,000households living on geographically unstabledolomitic land. Khutsong is a communitybeing designed and built from the ground upand will include subsidised housing, retail andindustrial sites as well as social andeducational amenities, September explained.

“These new projects are beginning toreshape the spatial legacy of apartheid intothe non-racial integrated settlements thatwe dreamed of.” �

Sulaiman PhilipThere is a strong focus on ensuring the delivery of affordable housing in sustainable and habitable settlements(Image: GCIS)


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With over 40,000 people expected toattend in 2016, the next ElectraMining event is expected to dwarf

all previous events for mining, industrial,machine tools and electrical trade show insouthern Africa. With that many potentialcustomers in one place, mining equipmentand services companies are asking whetherthey can really afford not to exhibit at thenext Electra Mining Africa, taking place 12-16September 2016 at Nasrec Expo Centre inJohannesburg.

Companies exhibiting and attending willbe able to generate on-site sales and pre-qualified sales leads, launch new products,services and technology, showcase productranges, position their company as a marketleader - and host, entertain and engage withexisting and new clients.

Exports and product applicationsExhibitors at the most recent event, the 2014Electra Mining in September, were able tobenefit from exactly this kind of coverageand networking. At African Review of Businessand Technology, we learned about manysuppliers and operations, old and new. Whatfollows is a roundup of key enterprises at theevent.

ATI Systems, which is made up of fourdivisions. Elsteel LV assemblies is a specialistelectrical assembly division, involved with thedesign of power distribution and motorcontrol assemblies. ATI Systems’ DC drivesdivision supplies SSD Parker speed drives -including AC drives, DC drives, servo drivesand soft starters. The company’s PositionFeedback division supplies rotary motion andlinear displacement sensors. Its StandardEnclosures division imports and distributesthe Eldon range of enclosures; ATI is thelargest stockist of electrical enclosures inSouthern Africa.

Based in Cape Town, South Africa, AbsoluteAblutions manufactures mobile toilets. Over

10 years it has created a comprehensiverange of toilets, showers and associatedsystems. It also offers kitchen and cateringunits, vendor and display units, industrialcaravans, and mobile offices.

Shortly before the 2014 edition of ElectraMining was held, gas-cleaning and dustcontrol specialists Actom Air Pollution Controlwere appointed the sole distributor forSouthern Africa of an innovative compact andenergy-efficient filtration system for use inlight industrial applications where low levelsof dust and fumes are generated.

The Novus Air Tower is designed for usetypically in many pharmaceutical and foodprocessing and milling applications, as well asfor welding, grinding and plasma or lasercutting operations. It is a free-standing unitthat can be easily transported and installedwherever it may be required. It can beplugged into electricity and compressed airsupply sources and go into operationimmediately. It is also much less expensive topurchase and run than conventional dustcontrol and gas-cleaning systems.

A software development company based inSouth Africa, Adroit Technologies has beendeveloping award winning real-time softwarefor the industrial automation markets for over25 years. The principal activities of thecompany are product development,consulting and solutions development,primarily in the industrial sector.

Manufacturing single wall and double wallfluorinated high density polyethylene HDPEpipe, Advantage Earth Products (AEP)provides sales, technical support,manufacture and warehousing. It sells andservices additional petroleum-relatedequipment through exclusive agreementsand from its own manufacturing capabilities.Products include fluorinated sumps, fittings,pumps and fuel purifiers.

Afromix has been producing mixing andpumping equipment in South Africa since1975. Its products have been utilised inmining, chemical, pulp and paper,pharmaceutical, petrochemical, and wasteand water treatment sectors. Its main productlines include agitators and the AFX series of

Electra MiningFEATURE

58

Exhibiting atElectra MiningWhat was seen and what to expect in the mining industry, as promoted atthe continent’s key industrial mining event

There were many new and innovative products at Electra Mining


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peristaltic pumps and hoses. The company’smanufacturing facility in Uitenhage, in theEastern Cape, was chosen due to theavailability of high quality machining facilitiesand a competent labour force in the area, andshipping access to export markets.

Air Liquide specialises in gases,technologies and services for industry andhealth. Oxygen, nitrogen, hydrogen andmany other gases are at the core of AirLiquide’s activities. Using these molecules, AirLiquide continuously reinvents its business toanticipate the needs of current and futuremarkets and meet its customers’ needs.

Airgas Compressors is the sub-Saharansubsidiary of Aerzener Maschinenfabrik(Aerzen) in Germany. Aerzen specialises inrotary lobe blowers, turbo blowers, screwcompressors, rotary lobe compressors androtary piston gas meters for air and processgases. Aerzen machines are internationallyrenowned for their quality and highperformance features. In conjunction withnew machine sales, the company offersnumerous after sales services including fieldservice, repairs and overhauls to the entirerange of Aerzen blowers and compressors.

A J Charnaud & Co (Pty) Ltd suppliespersonal protective clothing and safety

equipment. Its protective clothing productsrange from protection against heat, flames,fire, electric arc flash to molten metal splash.Alpinist Safety Consultants (Pty) Ltd (ASC) wasthe first company in Africa to obtain trainingand operational membership with IRATAInternational, the only global tradeassociation in the work at height industrywith member companies on every continent.Its sales division provides a large range ofinternationally certified personal protectiveequipment for your staff to work safely at

height. Its training division offers a range ofstandardised internationally-recognisedcourses as well as bespoke courses that canbe conducted at any of our three indoorfacilities or conducted at your site with someminimal arrangements. Its operationaldivision has a range of services from on sitesurveys, protective equipment installations tofull service teams covering offshoremaintenance work, geotechnical rock slopestabilization services, telecommunicationsand signage installations.

FEATUREElectra Mining


Companies such as Dynamic Weigh Systems showed at Electra Mining how firms optimise operational costs

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60

The personal protective equipmentsupplied by Aludar Safety keeps users safeand productive. Its technologies are tested toindustry standards, and then validated byperforming extensive field testing withindustrial end users.

Present in South Africa and Southern Africain the sales and service of sheetmetal andbandsawing equipment. Japanese companyAmada services its customers’ needs througha professional and dedicated sales, serviceand administration team. AmadaJohannesburg has been operating in SouthAfrica as a branch of Amada Japan since 1984.It also has offices in Durban and Cape Town,supporting the Amada range of equipmentthroughout South and Southern Africa as wellas the Southern Indian Ocean islands.

AMC-CEMA has been established in theelectrical rotating machinery market since1994 with a focus on power generation andelectric motor suppliers, and has acted as amajor source to suppliers in sub-SaharanAfrica with a diversity of products andtechnical support including alternators,electric motors, generator components,change over switches, sound attenuation andaccessories, generator controllers, generatorautomatic voltage regulators (AVRs), antivibration mounts, generator control panels,and custom-designed control anddistribution panels.

Meeting the market with advancedsolutionsDAMM concentrates on developing terrestrialtrunked radio (TETRA) radio communication,as an important link in virtually any businessprocess. Aside from its application in miningoperations, TETRA has been designed for useby government agencies, emergencyservices, (police forces, fire departments,

ambulance) for public safety networks, railtransport staff for train radios, transportservices and the military.

Dongfang Measurement & ControlTechnology Co., Ltd. is aspecialised mineautomation company, combining instrumentand apparatus research and development,software development and systemintegration together, offering productioninformatisation solutions and carrying outwhole-process automation for industrialproduction processes of metallurgical, mine,building materials, chemical, coal and otherindustries.

A manufacturer of gearing solutions andservices, David Brown has been providingengineering expertise to a range of industriesfor more than 150 years. Its gear systems andservice solutions have underpinned criticalapplications in industries where failure is notan option - including defence, mining, powergeneration, oil and gas, rail and metals.

Dongying Taida Rubber Co, Ltd producesadvanced conveyor belt technology and tires.The company strictly adheres to ISO9001 forquality management, to ensure that reliableservice to market. The main brands - LuDebao, Roadbull, and Hongfei, are exportedto Europe, the Middle East, Africa, SouthAmerica and Southeast Asia.

Tsurumi Pumps (Pty) Ltd has beenmarketing and selling submersible pumps inSouth Africa for more than 25 years. Itsproducts enable dewatering, sewage andwastewater operations, plumbing, anddredging.

DuPont, which specialises in bodyprotection, launched Tyvek 800J at ElectraMining, which uses proprietary technology tocombine oil repellency and durableprotection against pressurised jets of liquidsand water-based chemicals with fabric

breathability. It presented, also, Tychem4000S which presents wearers with optimumbarrier against a range of chemicals while alsobeing supple and lightweight.

Duratray provides dump body trays andcomponents, professional support and otherservices to meet and exceed its customers’expectations in all aspects of their businessactivities. It seeks to help protect theenvironment by taking all practical steps toprevent contamination. It supports effortstowards maintain a safe, healthy and secureenvironment for its stakeholders, too.

Durmazlar is a Turkish companyspecialising in metal working machines,exporting to 82 countries around the world.Its metal working machines are capable ofbending, cutting and punching. Its metalbending range includes press brakemachines, profile rolling machines and platerolling machines. Its metal cutting productsinclude laser cutting machines, plasmacutting machines, metal cutting saws andmetal cutting shears. Its metal punchingrange includes metal pressing machines andCNC punching equipment.

Dymot specialises in the design andmanufacture of winches and winchingequipment for a variety of applications. Thecompany’s main area of expertise is winchesfor conveyor tensioning applications. Itsautomatic take-up systems are widely used inthe mining industry and involve using electricwinches, strain gauges and programmableelectronic controllers to control the start upand running tensions on any conveyor. Thesesystems are extensively used undergroundwhere the conventional gravity tensioningsystems are difficult to accommodate. Thereare currently over 250 systems operatingboth underground and overland.

At Electra Mining, Dynapower was asponsor.“Dynapower sets the standard for innovationand performance of bidirectional inverters foruse in energy storage applications withinnovative features like multi-port inverters,combining PV and battery energy storage,and Dynamic Transfer, which enables backuppower applications through seamlesstransition to grid tied mode”, said AdamKnudsen, the company’s resident. “With arecent product line expansion Dynapowerwill continue to lead the distributed energystorage market and the commercial andindustrial energy storage marketplace,capitalizing on previous successfulinstallations in these market segments.”

Recently, Dynapower opened sales officesin Johannesburg, South Africa and Kitwe,Zambia. Dynapower offers an extensiveportfolio of services and can provide


Duratray helps companies to protect the environment by taking all practical steps to prevent contamination



62

exceptional coverage of your systemrequirements with single source capability,worldwide resources, local coverage, andrapid response.

A focus on quality supportAfrican Projects Consulting (APC) StorageSolutions SA has been supplying leadingstorage technology to a number ofindustries since 1991. From its beginningsas a racking and shelving manufacturer andsupplier to the retail industry, over theyears, the company has migrated to turnkeywarehouse storage solutions andautomated warehouse systems. Sincebecoming the official South Africandistributor of Mecalux, APC StorageSolutions SA has installed more than 25,000tons of storage equipment in more than 750warehouses across the African continent. ItsAfrican footprint now extends also toAngola, Botswana, Egypt, Ghana, IvoryCoast, Namibia, Nigeria, Seychelles,Swaziland and Zimbabwe.

ATS 2000 offers heavy duty pneumaticequipment. Its products are technologicallyadvanced, efficient and cost-effective, and aredesigned for application in the mining, petro-chemical, heavy engineering and generalindustries. In 2013 ATS 2000 became one ofonly four manufacturers internationally andthe only company in Africa to produce airhoists at 15 tons.

Avir (Pty) Ltd serves mining markets asexclusive agents for Kaishan compressors andJAC forklifts. Avir has also focused ontransforming Southern Africa over to energy-saving screw compressors and workingwithin markets including South Africa,Botswana, Zimbabwe and Namibia forwardwith efficient, cost-effective and easy tomaintain products.

Beckhoff implements open automationsystems based on PC control technology. Theproduct range covers industrial PCs, I/O andfieldbus components, drive technology andautomation software. Products that can beused as separate components or integratedinto a complete and seamless control systemare available for all industries. Its SouthAfrican subsidiary, Beckhoff Automation (Pty)Ltd supports its customers directly throughexperienced staff, as well as through anetwork of certified system integrators.

With a comprehensive range of replacementparts for leading crusher and materialprocessing equipment, Caldas Engineering isseeks to ensure customer operations runefficiently while reducing downtime due tocomponent replacement or failure. Thecompany is committed to delivering qualityparts and customer service.

Changsha Tianhe Drilling Tools andMachinery Co., Ltd offers down-the hole

(DTH) hammers and bits with capacity ofdrilling holes from 3" to 32"(76mm-800mm)in diameters,DTH drilling tools with largediameters for deep holes drilling,eccentric(ODEX) casing system andconcentric casing system, reversecirculation hammers and bits, accessories ofrock drills and some other equipment. Itsproducts are popular in open-pit orunderground mining, hydraulicengineering, oil and gas engineering,bridge engineering, constructionengineering, and geotechnical engineering.

CIMEC Engineering Machinery Import &Export Co. Ltd., is a subsidiary of CMEC(China National Machinery & EquipmentImport & Export Corporation), mainlyengaged in the manufacture, sale anddistribution of machinery equipment,electric equipment, instruments and meters,electronic lighting and light industryproducts, and associated services. �


Electrical engineering and manufacturingcompany Ampcontrol Africa now operates ata new 10,000sqm engineering andmanufacturing facility in Boksburg,Johannesburg.

Ampcontrol brings over 40 years ofaccumulated knowledge, experience and skillto South Africa, opening up their vast rangeof electrical and electronic solutions to thelocal industry, from large power productssuch as transformers and substations toadvanced mining electronics. The factoryrepresents a new phase for Ampcontrol’sdevelopment, not just locally butinternationally, as it will be the backbone of

future growth for Ampcontrol and plays acentral role in the expansion of Ampcontrolas a global company. It also supportsAmpcontrol’s aim of becoming South Africa’spremier supplier of mining electricalinfrastructure and a strong partner to theirlocal customers.

For customers, the facility means faster leadtimes, higher quality products and also thecapability to manufacture a wider range ofproducts, such as their gas filled transformers.It also enables Ampcontrol to produce greatervolume and get involved in large projects,such as full electrical systems and vastelectrical support services and overhauls.

Electra Mining supports companies seeking solutions to maintain a safe, healthy and secure environment

A new facility for Ampcontrol Africa


63

SOLUTIONS

Excavators

The German-designed Cat M300D Series wheel Excavator modelshave earned a worldwide reputation for reliable performance, long-

term durability, versatility, fuel efficiency, and low operating costs. Thenew M315D2 and M317D2, with operatingweights of 15 and 17 metric tons (with heavycounterweight), build on these strengths withdesign refinements that include added operatorcomfort, improved visibility, production-enhancing features (such as the SmartBoom), andtime-saving serviceability features.

New for the M315D2 and M317D2 is anoperator's station that adds increased comfortand visibility, while maintaining the same soundlevels, ample size, and ergonomic layout ofcontrols. Two available seats, all fully adjustableand with lumbar support and weightcompensation.

“Our ability to continually evolve our products to meet the ever-changingneeds of customers, in a market that is more competitive than ever, hasbeen key to FG Wilson retaining its global leadership position in power

generation,” added McKinty. The 32 – 125 kVA range has been designed for

non-regulated markets and non-mobileapplications within Europe, and is available innon-emissions compliant variants.

FG Wilson has 48 years of industry-leadingexperience in the supply of diesel and gasgenerator sets from 6.8 – 2,500 kVA, with over 370authorised Dealers in more than 150 countries.This enables the company to offer local support.

The manufacturer’s ONE Global QualityStandard guarantees that every generator set isdesigned and manufactured to the highest UKstandards. With production processes repeated atall FG Wilson manufacturing facilities (Brazil,

China, India, USA and UK), each achieving ISO 9001 and ISO 14001certification, a quality product is delivered every time.

Versatile, fuel-efficient, and feature-rich: Cat's M315D2/M317D2 wheel excavator

The new M315D2 and M317D2 have operatingweights of 15 and 17 metric tons


FG Wilson’s 730 to 2,500 kVA diesel generator sets

FG Wilson has 48years of industry-

leading experience inthe supply of diesel

and gas generator setsfrom 6.8 – 2,500 kVA

with over 370authorised Dealers in

more than 150countries

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64

SOLUTIONS

Raising quality, across the factory floor

The products of JCB's investment inraising the quality of compactexcavators.

Globally, the compact excavator market isexpected to increase to over 200,000 units by2017. Equipment manufacturing group JCBhas invested heavily in order to seize theopportunities to come, particularly in theemerging markets of Africa and the MiddleEast. At its manufacturing facility in Cheadle,in the United Kingdom, JCB offered insightsrecently into the results of its £20mn(US$32.7mn) investment into its compactproducts line, and specifically intomanufacturing technology and newproducts. Examine the new line closely,examine the innovations built-in, thetechnical detail of the new design direction atJCB, which the company stresses have beendeveloped in consultation with customers. AsJCB’s chief innovation and growth officer TimBurnhope said, “We have undertaken thebiggest benchmarking and customerevaluation exercise in JCB’s history to comeup with a range that is truly world-beating onall fronts: performance, reliability, cost ofownership, safety, durability, comfort andserviceability.”

A new design directionThe 85Z-1 zero-tail swing model and 86C-1and 67C-1 conventional tail swing excavators,for example, herald a completely new look forJCB midi excavators.

These new machines feature 100 per centsteel bodywork for improved durability. thereis also a new 30-degree tilting cab offering sixper cent more space and eleven per centmore visibility, and

enabling improved service access. Serviceand operation itself is easier and cheaper,

with 500-hour greasing intervals, and a 10per cent reduction in fuel consumption overprevious models. Furthermore, JCB hasimproved the grouping of components toreduce maintenance times - and introducedremovable side-skirts and in-fill panels forbetter access to machines component parts.

These three new machines in JCB'scompact excavator line all bear a revised H-design undercarriage, which be can besupplied with steel, rubber or BridgestoneGeoGrip tracks. They feature, too, aredesigned dozer blade, which has beenoptimised for smoother material flow and lessrisk of damage. Safety is improved, also, withthe introduction of JCB's 2Go servo controlisolation system, which

comprises the standard hydraulic cut-offactivated by lifting the left-hand lever pod,whilst also requiring the operator to activate

the hydraulic system through a button on therighthand console - so improving safety onsite by reducing the risk of operators workinghydraulic levers from outside the cab.

A premium on performanceMuch work has gone int o delivering morepower across the compact excavator range.The 8.5 tonne midi excavators are powered byall-new JCB by Kohler diesel engines,generating 64hp (48kW). They drive BoschRexroth hydraulic valves and Nachi slewmotors and track drives and incorporate anadditional patented reduced loss hydraulicsystem. Operating with reduced back pressure,eliminating parasitic losses, the hydraulicsystem puts less demand on the engine -hence, reducing fuel consumption. All hosesfeature O-ring face seal technology and arecolour-coded for rapid identification. �

JCB's investment in raising the quality of compact excavators

JCB's 86C-1 conventional tail swing



65

SOLUTIONS

Excavators


JCB's 65R-1 incorporates severalinnovations in performance, durability,

comfort, safety and maintenance. JCB has introduced to market a 6.5 tonne

reduced tail swing midi excavator, bothanticipating the growing global demand forcompact excavators and meeting operatordemands for greater durability, efficiencyand productivity. The 65R-1replaces the 8065RTS in the JCB line-up. It offers a number ofinnovations not seen on its predecessor,including a 30-degree tilting cab to enablebetter service access, longer greasingintervals, bodywork made completely from steel for better durability.

According to Tim Burnhope, JCB’s chief innovation and growth officer,the company hasundertaken the biggest benchmarking and customerevaluation exercise" in the company's history.

The result is a product portfolio that offers greater performance,reliability, safety,durability, comfort and serviceability than anythingseen from the company before. The 65R-1 exemplifies JCB's newstandards in design. Like all is new range of midi excavators, the itboasts a revised H-design undercarriage, as well as the robust steelbody panels, a spacious operator environment and fuel-efficientengines that deliver increased productivity and a lower operating cost.The 6.5 tonne machine is powered by a proven 48hp (36.9kW) Tier 3diesel engine.

Supremely safe and sturdyJCB's new range of midi excavators incorporate the company's 2Gohydraulic safety system, which has proved successful already on its largerJS excavators. There is the standard hydraulic cut-off, which is activatedby lifting the left hand lever pod, but now the operator is required also toactivate the hydraulic system through a button on the right-hand

console. This improves safety on site byreducing the likelihood of operators workingthe hydraulic levers from outside the cab.

This is also a robust digging machine. The65R-1 features a sturdy kingpost design withwidely spaced bearings to prevent wear. Italso uses a new graphite-based pin and bushdesign, which support 500-hour greasingintervals for reduced daily maintenance andlower operating costs. With a 1,900mmdipper arm, the 65R-1 also delivers amaximum digging depth of 3,957mm and aground level reach of 6,572mm. Bucket

tearout is rated at a powerful 47.5kN.JCB delivers the machine with steel, rubber or GeoGrip tracks on a

new H-pattern track frame. It has, also, a completely redesigned dozerblade and arms. Blade edges are angled to prevent damage.

Comfortable, quick and easy-to-cleanThe blade profile has been optimised for smooth material flow andthere is no requirement for strengthening gusset on the rear, allowingeasy cleaning of the machine. The 65R-1 cab structure is new, with flatglazing all round for ease of repair.

A revised heating and ventilation system, with optional airconditioning, offers greatly improved airflow throughout the cab,improving operator comfort and rapidly clearing windscreens in coldermonths. The machine is quick as well as comfortable, however, withtracking speeds increased to 4.6km/h, allowing faster repositioning onsite and cutting downtime.

The prospects are good for this new machine, which has beenintroduced ahead of an expected upturn in demand for machines ofthis type. As Tim Burnhope said, “The compact excavator market isexpected to increase to over 200,000 units by 2017.”

Productive and powerful: JCB's all-new 65R-1

The 65R-1 features an H-frame undercarriage and a choice oftracks for strength, durability, and flexibility


66

EQUIPMENT/CLASSIFIED


Taking place 12-13 November in Brussels,Belgium, the 2014 AidEx trade show is aninternational humanitarian and developmentaid event comprising a conference andexhibition, and a programme for practicalworkshops to help professionals improve theefficiency and sustainability of aid.

Specialist manufacturer Reltex Africa isexhibiting at AidEx, showcasing its hightechnology relief materials to thehumanitarian sector, within an extensiverange of non-food items(NFIs) used inhumanitarian contexts to support thoseaffected by natural disasters or conflict -particularly, where life-saving is a priority.

Reltex uses plastics technology to createpremium, high-quality products private andpublic sector applications in Africa andinternationally. The company has created andsustained 158 jobs at its factory in Athi River,Kenya, many of which are occupied byunskilled workers from the local area.

Aidex visitors can explore the Reltexportfolio in the Developing World SupplierZone. The company’s products includetarpaulins approved by both the UnitedNations and the Red Cross, which featurereinforcement strips that are 60 per centstronger than eyelets, allowing the user tocreate fixing points appropriate for eachapplication. Designed to provide temporaryshelter, the company’s tarpaulins and plasticsheeting warrant special attention, as theyare manufactured to standards that meet orexceed the specifications established by theInternational Technical Committee (ITC), aconsortium made up of members from theUNHCR, UNICEF, ICRC, IFRC, OXFAM, MSF andother (NGOs. Complementing the tarpaulinsis a range of tents, available in three types,with cots and sleeping bags also available.

There is demand for making shelter roofs inrelief camps, and Reltex meets this demandby supplying high-strength galvanised sheets

and coils, which can be supplied as plainsheets or as corrugated boxes in severalmetal grades.

Reltex manufactures mats, too, which areavailable in a variety of colours, patterns andsizes. Importantly, they are light, durable, andwashable. It also supplies linen and towellingproducts.

To obtain and manage water, Reltexsupplies hand pumps, pipes and fittings, borehole equipment, and submersible pumps.The company also makes buckets andfoldable jerry cans. The cans, which are usedmainly for individual or family watercollection and storage, are available incollapsible and semi-collapsible form, andwith 10- and 20-litre capacities. The bucketsare tough and durable, made from UV-treatedplastic, and can hold up to 14 litres of liquid.

Visit www.aid-expo.com and reltexafrica.com tolearn more

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Reltex offers to improve the quality of relief at AidEx

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