african review march 2016

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

March 2016

Construction:Manufactured sands for future building projectsP49

Power:Genset maintenance forcritical needs P38

Proposals fornuclear power

programmes

Developing financewith disruptivetechnology

P34

P24

Finance:Integrating industrial assetsinto African economies P26

www.africanreview.com

African Review

of Business and TechnologyMarch 2016

Volume 52 N

umber 2

www.africanreview

.com

51 yearsServing business in

Africa since 1964

ATR March 2016 Cover_Layout 1 19/02/2016 14:01

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UP FRONT

3

REGULARS

FEATURES20 Business and Finance

Smallholder agribusiness; assisting entrepreneurs; established banks meet agile innovators;financially viable projects; linking economies and production networks; and Islamic finance

30 TechnologyHow satellites continue to deliver services across the continent; and how the development ofaccess to broadband Internet is enhanced by the new AMOS-6 satellite

34 PowerSA's nuclear procurement programme; simpler units for nuclear power generation; SSA’sdiversification away from fossil fuels; controlled power supply; and SDMO's ongoing businessdevelopment

42 ManufacturingThe benefits to West African economy and industry of a revival in furniture manufacturing

44 ConstructionWhat’s in store at bauma; increasing value in telehandlers; an earthworks portfolio; seamlessflooring; why manufactured sands may be the future of construction; and new business modelswith advanced design and construction techniques

52 MiningWest African power and mining business at WAMPEX; finance and investment in the mineralssector; the latest generation of bucket crushers and impact crushers; and the systems andinitiatives trending to secure safe mine operation

04 Agenda: Commercial initiativesand opportunities

14 Bulletin:The latest in security andin infrastructure

58 Solutions:Standby power set forelectricity generation

Contents

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

March 2016

Construction:Manufactured sands for future building projectsP49

Power:Genset maintenance forcritical needs P38

Proposals fornuclear power

programmes

Developing nancewith disruptivetechnology

P34

P24

Finance:Integrating industrial assetsinto African economies P26


51 yearsServing business in Africa since 1964

Editor’s Note

Cover picture: Gui Jun Peng/ShutterstockInset, Top: FotaliaInset, Bottom: CDE Global Limited

P20

P58

This month, from page 20 to page 29, in business and finance, African Review assessessmallholder agribusiness, support for entrepreneurs, software and services in banking, project

finance, economic development and production networks; and discussions on inclusive Islamicfinance at IFIF. From page 30 to page 32, there are articles satellite technology to deliver broadcastand communications services, including analysis of the new AMOS-6 satellite, launched to deliverbroadband Internet. The power section from page 34 to page 41 spotlights nuclear powergeneration, with respect particularly to financial considerations and diversification away fromfossil fuels, and also examines the business of a key genset manufacturer, SDMO. Page 42 offersinsights into the revival in furniture manufacturing in West Africa. Pages 44 to 51 preview bauma,report on added value for telehandler operators and an increasingly efficient earthworks portfolio,on flooring innovations, the argument that manufactured sands is the future for constructionindustry; and on support for builders seeking to create new business models with advanceddesign and construction techniques. Mining is covered from page 52 to page 56, with articles onWAMPEX, on finance and investment in the minerals sector, on crushers and security.

Dr Andrew Croft, Editor

African Review of Business and Technology - March 2016

Audit Bureau of Circulations -Business Magazines


Editor: Andrew [email protected]

Editorial and Design team: Bob AdamsPrashant AP, Hiriyti Bairu, Miriam Brtkova,Ranganath GS , Rhonita Patnaik PrasadShankarappa, Zsa Tebbit , Nicky Valsamakis, LouiseWaters and Ben Watts

Publisher: Nick Fordham

Publishing Director: Pallavi Pandey

Advertising Sales Manager: Roman ZincenkoTel: +44 114 262 1523 Fax: +44 7976 232791 Email: [email protected]

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UAE: Rakesh PuthuvathTel: +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 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, Nelly MendesDonatella Moranelli, and Sophia WhiteE-mail: [email protected]: [email protected]

Chairman: Derek FordhamPrinted by: Buxton PressPrinted in: February 2016US 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/o Mercury Airfreight InternationalLtd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

S01 ATR March 2016 - Start_Layout 1 19/02/2016 14:05

4

NEWS

Casablanca-based cloud services providerN+ONE Datacenters has launched the firstneutral Internet exchange point (IXP) inMorocco, CASIX, with support from France-IX. Commerciially operational from March2016, the IXP is an important step on the roadto improving in-country connectivity as itprovides Internet service providers (ISPs) andcontent delivery networks (CDNs) with aneutral location for peering, enabling them tobenefit from reduced reliance oninternational IP transit and associated costs.

N+ONE is a pioneer in datacentreinfrastructure across North Africa. Whendeveloping plans for Morocco’s first neutralIXP, it chose to partner with France-IX, whichhas valuable experience in the challenges ofinterconnecting local networks in Africa.France-IX is providing N+ONE with ongoingtechnical assistance and remote technicalsupport as well as donating equipment,which has provided over 100 Gbps of totalport capacity. The technical infrastructure ofthe IXP is undergoing final testing and is ontarget to be operational for the launch date.

The neutrality of an IXP is important as iteliminates the possibility of the IXP owner,often a carrier, having influence over thepeering community or their customers. If theIXP is neutral and offering free colocationservices, then the peers are able to benefitfrom a democratized environment that ispurely focused on providing maximumefficiency, performance and economic value.N+ONE decided to set up CASIX to help theprocess of democratizing the internet in

Morocco where, amidst the advent of 4G,more and more people are using social mediaand access to the internet is becoming evermore important.

« As the first and largest carrier-neutraldatacentre operator in Morocco, we are in astrong position to sponsor the country’s firstneutral IXP. We will offer free colocationservices for the exchange at all our facilitiesand our ISP, CDN, banking and corporateclients who are early peering members arealready benefitting from the ability toexchange locally and are gaining added valuefrom a neutrally managed IXP. Just like anynew market, the numbers and benefits willcontinue to grow, » said Réda Ben Talha,deputy director sales & marketing at N+ONEDatacentres. « We chose to partner withFrance-IX as we wanted to tap into asuccessful IXP community and to benefitfrom its assistance. France-IX is a young IXPand yet it has managed to build aninternational community of nearly threehundreds networks, which is impressive. Wemet its team at several industry events andwe naturally went on to discuss how we couldwork together. »

CASIX is the second African IXP partnershipfor France-IX, following SENIX in Senegal.These two collaborations demonstrateFrance-IX’s ability to support thedevelopment of internet connectivity inNorth and West Africa, helping these regionsopen up to the global economy andpositioning France-IX as the leading digitalgateway to Africa and the Middle East.

Siemens to service morepower stations in Egypt

N+ONE staff are trained at the newdatacentre in Morocco by France-IX


Agenda / NorthN+ONE opens Moroccan neutralexchange point with France-IX


Global technology group Siemens hasextended a long-term contract to

provide service and maintenance, as well ascomponent upgrades, at the Nubaria,Talkha and El Kureimat power stations inEgypt. The agreement was signed underthe supervision of Egyptian ElectricityHolding Company (EEHC), represented byMiddle Delta Electricity ProductionCompany and Upper Egypt ElectricityProduction Company. The 10-yearextension calls for Siemens to continueproviding service and maintenance foreight SGT5-4000F gas turbines and theassociated generators.

In addition to long-term service andmaintenance, the scope of the newagreement for the three power stationsincludes several modernization andupgrade measures for the eight gasturbines in order to improve operationalflexibility. For example, Siemens will apply a33MAC upgrade to extend the intervalsbetween the gas turbine inspections from25,000 equivalent operating hours (EOH) to33,000 EOH.

Siemens will also upgrade the gasturbine controls to its market leading SPPA-T3000 control system. The upgrade willenable the plant operator to make faster,informed decisions in daily operation of theplant. A training programme for the powerplant personnel is also part of this newagreement.

“Siemens is committed to workingclosely with the Ministry of Energy inEgypt as the country looks to meet theregion’s growing power demands,” said TimHolt, CEO of Siemens Power GenerationServices, Power and Gas business unit. “Bymodernizing and upgrading existing powercomponents, we are providing ouradvanced service technologies, includingour industrial-strength data analytics andremote monitoring capabilities, to helpensure the long-term reliability of thesepower plants for many years to come.”

T

This remarkable statistic

i

N

a

B

S02 ATR March 2016 - Agenda_Layout 1 18/02/2016 17:25

volvoce.com

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EGYPTGhabbour+ 201 001764279

ETHIOPIAEquatorial Business Group+ 251 11 442 4955

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SIERRA LEONEA. Yazbeck and Sons Ltd+ 232 7730 3042

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In a recent side-by-side comparison against competitor pavers, the Volvo P6820C

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1 1 08:06

6

NEWS

The international investors that have boostedmore than 650 technology startups havethrown their weight behind their first EastAfrican company, Kenya’s Bamba Group. USaccelerator TechStars believes Kenya'sBamba Group could be the next AirBnB orDropbox within the next five years. Theexperts will put Bamba through intensivetraining in Austin, in the USA, and give them acash investment to fast-track their growth.TechStars Austin managing director, AmosSchwartzfarb, said, “We are very happy toselect the first company from East Africa intothe TechStars programme. Bamba Group is atestament to our globalised world where astartup from any corner of the planet can riseup, pursue their passion and make a lastingimpact on the world.”

The cloud-based system is used by majornot-for-profit and for-profit companies inKenya including Aga Khan Foundation, NairobiAirport Services, and Diamond Trust Bank.

Bamba Group CEO Al Ismaili is thrilled hiscompany is among the two per cent of theapplicants who are accepted into theprogramme. He said, “It is our employees that

are most deserving of this selection. We nowlook forward to the next stage of our growthwith a new saying around the office -something we now hear regularly from ournew mentors at TechStars - ‘Do More Faster’.We hope to make Africa proud.”

Kenya’s Cabinet Secretary of Information,Communications and Technology (ICT), JoeMucheru added, “I congratulate Bamba Groupfor this great opportunity and hope they willinspire many more start-ups to getrecognised globally.”

Bamba has embedded itself as a staple in theKenyan software scene. This is evident throughits participation in the Presidential Digi-talentProgramme (PDTP), a public–privatepartnership run by the ICT Authority in Kenyaand commissioned by the President of Kenya.

ICT graduates from Kenyan universities areselected for the one-year programme thatincludes world-class software training, soft-skills training, mentoring and guaranteedinternships in both the public and privatesector firms involved. Other organizationsinvolved in this programme include Google,Microsoft, SAP, Oracle, Cisco and PwC.

Communication solutions provider Gilat Satcom has confirmed that its Digital Classroom In ABox is now available for shipping to Africa, as a part of the Smart Village turnkey solution. Thisnew concept for rural schools was unveiled at The Aid and International Development Forumsummit which took place in recently Ethiopia.

The summit looked at how technological innovations and best practice are being deployed toimprove aid delivery and development strategy in East Africa and was attended by 250+ seniorrepresentatives and advisors from regional governments, UN agencies, international and regionalNGOs, investors and donors, research institutes and the private sector.

Gilat Satcom’s Digital Classroom In A Box was developed as the e-learning component for its‘Smart Village’ portfolio that enables rural villages and remote communities in Africa where ARPUsare low to be a part of Africa’s digital future. The Digital Classroom comprises a fully insulated anddecorated shipping container powered by solar with VSAT connectivity, a wifi router with 500mradius, a management and billing system, a projector, interactive screens, sound system andmicrophone, computers and tablets, tables and chairs. It has been designed to provide everythingthat an African rural school needs to deliver both face-to-face lessons and remote e-learning.

Initiatives annoouncedat US-Djibouti forum


Agenda / EastTechstars invest in first East African enterprise

Gilat Satcom unveils digitalclassroom at Ethiopian summit


US Assistant Secretary of State AntonyBlinken has recently concluded a two-

day visit to Djibouti, which saw theannouncement of important newprogrammes, including: � Plans to construct a pipeline carrying oil

from Ethiopia’s Awash region to Djibouti.Black Rhino, an American company thatinvests in African infrastructuredevelopment, will fund the project,which will also include the creation ofnew oil storage facilities in Djibouti. Workwill begin in June 20016.

� The signing of a US$1m grant agreementprovided by the US Agency forInternational Development, which willsupport community programmes forwomen, young people and vulnerablegroups.

� The launch of Djibouti’s first internationalschool of English with an Americancurriculum, operated by Quality SchoolsInternational.

Mr Blinken led the US delegation thatattended the second annual US-DjiboutiBinational Forum. During his visit, MrBlinken held talks with HE Ismaïl OmarGuelleh, the President of the RepublicDjibouti.

Mr Blinken praised the “quality offriendship and cooperation between thetwo countries and its two peoples”. He saidthat the Binational Forum provided a“valuable opportunity to exchange ideasconcerning the implementation of multipleinitiatives and partnerships”.

The United States contributes more thanUS$100mn a year to Djibouti’s economyand is one of the country’s largestemployers. More than 1,700 Djiboutianswork at Camp Lemonnier, the onlypermanent US military base in Africa.

Mr Blinken announced that more localcompanies would be able to obtain workcontracts from Camp Lemonnier throughthe Djibouti First programme.


FG Wilson’s latest telecoms generator set range (6.8 – 22 kVA)

now o�ers up to 1,000 hours between services as a result of the

newly designed long running fuel tanks (600 – 2,000 litres in

capacity).

Improved security measures protect your fuel and internal

components from theft and vandalism, while state-of-the-

art control systems allow you to monitor and control your

generator sets remotely, making them ideal for isolated

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Contact your nearest FG Wilson Dealer and start making life

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8

NEWS

Marthinusen & Coutts recently performed a rush job for sugar producers Tongaat Hulett inrepairing the rotor of the 20 MW salient pole synchronous alternator at its Xinavane mill nearMaputo, Mozambique. The division carried out the complex task at its Cleveland, Johannesburg,facility in just over three months. It involved a complete rewind of the rotor, which has a cruciform-type winding configuration.

“It was complicated by the fact that we found it necessary to redesign the winding andinsulation,” Craig Megannon, general manager at Marthinusen & Coutts, explained. “Theoriginal coil had developed a fault due to the fact that it had been vacuum pressureimpregnated, which by forming it into a solid block caused differential expansion between thecopper windings and the steel of the rotor body. We solved this problem by introducing thickerinsulation and thinner copper windings, which were neither VPI’d nor glued to the pole body.This achieved the desired result, as proven by the tests we carried out on the rotor windings oncompletion of the job,” Megannon says.

With 57 years of extensive experience in the local and global market, Marthinusen & Couttsundertakes both electrical and mechanical repairs, overhauls and complete refurbishments.

At Propak Africa 2016 Bosch PackagingTechnology highlights its horizontalpackaging solutions for the efficientpackaging of biscuits, chocolate, bars, candiesand other confectionery treats. The companywill focus on entry-level and mid-rangeautomation solutions for its customers in theSouthern African countries. This enablesproducers with small to medium productionvolumes to tap into automation or increasetheir productivity with a range of innovative

horizontal flow wrappers. The solutions areavailable from the company’s office in SouthAfrica, so local producers also benefit fromservice, support and on-site training.

“Our portfolio of horizontal packagingsolutions range from entry-level through tohigh-end automation making Bosch the idealpartner whether your brand is testing a newmarket, or requires high-volume productionlines.,” said Steffen Manke, general manager,Bosch Packaging Technology South Africa.

Japan, Botswana discussremote sensing tech

From left Rudi Els, coil shop manager at Marthinusen & Coutts, specialist winder at Marthinusen & Coutts, WilliamMartin, and Craig Megannon, general manager at Marthinusen & Coutts during the rewind of the Xinavane mill’salternator rotor at the company's Cleveland facility


Agenda / SouthQuick turnaround in Moz for rotorrewind on sugar mill alternator

Bosch’s solutions at Propak Africa


Botswana’s Minister of Minerals, Energyand Water Resources, Kitso Mokaila

visited Cape Town, South Africa, recently,where he met a delegation from Japan’sMinistry of Mining at the ongoing MiningIndaba conference.

Mokaila met with Japan's delegationfrom Ministry of Mining to discuss issuessurrounding the remote sensingtechnology.

Remote sensing usually refers to thetechnology of acquiring information aboutthe earth's surface (land and ocean) andatmosphere using sensors onboardairborne (aircraft, balloons) or spaceborne(satellites, space shuttles) platforms.

Mokaila also met with South AfricanEnergy Minister Tina Joemat-Pettersson todiscuss export power stations based inBotswana and South Africa. The Ministeralso met with Kenyan authorities at theevent and discussed bilateral issues.

Mokaila also gave a presentation at theevent on mining situation in Botswana.

Organised by Euromoney Trading Ltd,the Mining Indaba conference in CapeTown attracts over 7,800 individualsrepresenting about 1,500 internationalcompanies from 100 countries and is one ofthe largest mining conferences in Africa. Itis attended by investors, mining analystsand financers.

Botswana’s Minister ofMinerals, Energy and WaterResources, Kitso Mokaila



http://www.sdmo.com/EN

10

NEWS

Technologists behindAsoriba, a Ghanaian mobileapp and managementsoftware for churchesstartup, have seen theirwork rewarded with theaward of Africa’s BestStartup at the inauguralSeedstars Africa eventrecently held in Casablanca,Morocco. Asoriba was chosen as thewinner before an audienceof more than 300 attendees,local winners from African countries including Mozambique, South Africa, Nigeria, Ivory Coast,Rwanda, Uganda, Kenya, Ethiopia, Angola, Tanzania, Senegal and Botswana, over 25 mentorsfrom around the world, and a jury including 500 Startups venture partner Hasan Haider andAfrican Business Angel Network (ABAN) founding member, Alexandra Fraser.

“Travelling to Casablanca and winning the Best African Startup Award has really boosted myteam’s confidence and we are inspired to take over the entire African continent with Asoriba,”said Nana Agyeman-Prempeh, CEO of Asoriba who earned a Master’s degree in AgriculturalEngineering while attending the Meltwater Entrepreneurial School of Technology (MEST)where the Asoriba team was formed. The team includes chief technical officer (CTO) PatrickOhemeng Tutu, chief product officer (mobile) Jesse Johnson, VP of marketing & sales ObedAsamoah Boateng and chief product officer (Web) Saviour Dzage who pitched at Casablancaand brought the trophy home.

The cloud-based software which includes a web and mobile app, allows churches toeffectively manage their finances and receive contributions via mobile money and cards,seamlessly communicate and engage with members via SMS and mobile app, preciselymanage member and church data, and monitor and observe church growth and attendance.The Asoriba team based in Accra has already garnered over 200 churches and 16,000+members peak on its platform.

According to the Ministry of Mines, Industry and Energy of Equatorial Guinea, RiabaFertilizers Limited has awarded the EPC contract for a new petrochemicals complex to aChinese consortium led by East China Engineering Science and Technology Co Ltd (ECEC).

Riaba Fertilizers Ltd was incorporated to develop the petrochemicals complex at Riaba, onBioko Island. The new facility will utilise offshore gas reserves located to the east of Bioko. A gassupply agreement is already in place with the Block O and I operator Noble Energy andpartners Gunvor, Atlas Petroleum International and Glencore. The complex will comprise anammonia and urea plant with production capacity of 1.5 MTPA. Facilities will include on andoff-site infrastructure and utilities and a urea shipping jetty. This initiative is part of agovernment-led industrialization and energy diversification plan known as the PetrochemicalsRevolution, or REPEGE.

NBC to host DigitalBroadcasting Forum

Asoriba technologists win Best African Startup at Seedstars Africa


Agenda / WestGhanaian startup Asoriba wins BestAfrican Startup at Seedstars Africa

Riaba’s petrochemicals contract


Nigeria’s National BroadcastingCommission (NBC) will host the

African Digital Broadcasting SwitchoverForum 2016, following the signing of ahosting agreement with theCommonwealth TelecommunicationsOrganisation (CTO) recently. The event willtake place on 11-13 May 2016 in Abuja.

Held almost exclusively in South Africasince it was launched in 2006, the annual event is moving to West Africa forthe first time.

“The economic potential forbroadcasting on the continent is yet to befully tapped into. Nigeria has a lot to offer,and so we are excited at hosting this eventnext year and we look forward to engagingmedia regulators and broadcasters fromthe continent and beyond, here in Abuja”,said Emeka Mba, NBC’s director-general.

Shola Taylor, secretary-general of theCTO, commended Mr Mba for seizing theopportunity to host Africa’s broadcastingindustry in Nigeria:

“When it comes to broadcasting, Nigeriais a destination of choice and a reference onthe continent and increasing also in theworld, and on behalf of members of theCTO Council, I must commend you forseizing this opportunity so promptly.” MrTaylor said.

In previous years, the event had focusedpredominantly on the technical, regulatoryand costs aspects of the digital migrationprocess, attracting key private sectorplayers such as production, transmissionand end-user equipment manufacturers, aswell as satellite carriers and contentdistributors.

“This will be the first Commonwealthbroadcasting event held for the regionsince the first internationally agreedswitchover deadline of 17 June this year,and as most countries accelerate theirmigration to digital systems, we expectnext year’s event to put more emphasis oncontent production and business models.”Mr Taylor confirmed.



http://www.bobcat.eu/

12

NEWS

April5-7plast algerAlgiers, Algeriawww.plastalger.com

5-7printpack algerAlgiers, Algeriawww.printpackalger.com

7-8Intermodal AfricaAccra, Ghanawww.transportevents.com

8-10International Franchise ExpoJohannesburg, South Africaife.co.za

11-17baumaMunich, Germanywww.bauma.de

13-14AITEC Southern Africa ICTMaputo, Mozambiqueaitecafrica.com

18-21DjazAgroAlgiers, Algeriawww.djazagro.com

20-21Africa Public Private Partnerships(PPP): Investment andDevelopmentAccra, Ghananeoedge.com

20-21Ghana Summit – Oil, Gas & PowerAccra, Ghanawww.cwcghana.com

21-23International Water TechnologyConference (IWTC)Sharm El Sheikh, Egyptiwtc.info

24-27USETECKarlsruhe, Germanywww.usetec.com

26-27Somalia Oil, Gas & MiningLondon, UKwww.theenergyexchange.co.uk

26-28agrofood NigeriaLagos, Nigeriawww.agrofoodnigeria.com

26-28plastprintpack NigeriaLagos, Nigeriawww.pppnigeria.com

26-30Zimbabwe Interational Trade FairBulawayo, Zimbabwewww.zitf.com

27-28Med PortsTanger, Moroccowww.transportevents.com

Events / 2016

Launched at the Africa Gas Forum duringthe 2016 Africa Energy Indaba, and one of15 Knowledge Networks studies for theWorld Energy Resources flagship studyinitiative, which will be presented at the23rd World Energy Congress in Istanbul,Turkey in October 2016, ‘Unconventionalgas, a global phenomenon’ indicates thatthe growth of unconventional gas isspreading across the world, with majorimplications over many years for marketsand prices. Published by the World EnergyCouncil (WEC), ‘Unconventional gas, aglobal phenomenon’ looks at where andhow fast the revolution is taking place.

The study, developed with project partnerAccenture Strategy, says that despite anuncertain price environment, the magnitudeand speed of change is not only influencingthe United States market, but also othermarkets including countries such as China,

Argentina and Algeria. Also, countries suchas Mexico, Saudi Arabia, South Africa, Polandand Turkey are mentioned in the study ashaving significant potential for shale gasdevelopment.

The study identifies three emerging globaltrends: � Shifting portfolio allocations: current

price uncertainties are resulting inoperators shifting their capital to moreflexible, shorter-cycle investments ratherthan in deep well projects.

� International growth of unconventionalgas operators: new operators across theworld are realising the globalopportunities and bringing new supplies,which will have an effect on marketsbefore 2020.

� Interconnected markets: excess suppliesin some countries have led to pricenormalisation and other structural shifts

that are making the market more globaland transparent.

In order to realise the full potential of globalgas, the study goes on to highlight the needfor certain decisive interventions to alleviateuncertainty in the market:� Industry: Bring a higher degree of focus

to portfolio allocation, risk management,and efficiency and continue to seek newand innovative investment partnerships todeliver projects.

� Policymakers: Establish policies thatpromote a liquid market and competitionneeded for security of supply and theformation of clear price signals.

� Consumers: Evaluate the economic andenvironmental benefits of diversifyingenergy assets with natural gas in power,industry, transportation, and chemicalsand consider innovative investmentpartnerships to secure supplies.

WEC report reveals structural changes to gas markets

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


S03 ATR March 2016 - Bulletin_Layout 1 19/02/2016 14:11

http://www.komatsu.com/

14

NEWS

Bulletin / SecurityG&D sees 75% of all cars withintegrated connectivity by 2020Automotive security specialist Giesecke

& Devrient expects that approximately 75

per cent of all cars shipped in 2020 will be

delivered with integrated connectivity,

representing an incease from only ten per

cent of the approximately 70mn passenger

cars registered worldwide in 2014 including

connectivity to approximately 69mn of 92mn

registered passenger vehicles equipped with

integrated connectivity by 2020.

Shell adds simplicity andsecurity to Gadus grease rangeEnergy group Shell has redesigned its

extensive grease range, Shell Gadus, making

it easier to choose the right products through

simplicity of matching the right product to

the application, the range of standard

packaging options designed to meet your

needs, from semiautomatic, single-point

grease lubricators and grease cartridges, to

pails, drums and even larger quantities, and

cconsistency and increased security of supply.

CVT power solutions can alsoenhance securityMarco da Silva, power solutions managing

director at Jasco Group, described recently

how factories and industrial environments

can make use of constant voltage

transformers (CVTs) to filter power before it

fight this increasing threat and work towards

shutting it down for good.”

AdaptiveMobile boosts MTNrevenue controlMobile network security specialist

AdaptiveMobile, which works with 22

mobile operators across 18 countries, is

promoting the success of its Grey Route

Controls solution, which identifies, mitigates

and protects against mobile security threats

and shields operators from financial

exploitation; African operators including MTN

are using the solution to identify and shut

down 'grey route' traffic and recapture

millions of dollars in revenue each month,

with other tangible benefits including

a significant decrease in the volume of

customer complaints and billable time

handling concerns.

Nixu Corp, Nokia Networkscollaborate on cybersecurityFollowing the signing of a collaboration

agreement, technology firm Nixu will incude

its comprehensive cybersecurity services as

part of communications company Nokia's

client offering, giving Nokia's network

operator clients access to Nixu's cybersecurity

expertise through one partner; "This

collaboration model enables Nokia to include

our productized cybersecurity services in the

delivery of complete network or service

solutions," stated Nixu Corporation CEO

Petri Kairinen

Kaspersky Lab sees detectedthreats across the continentCybersecurity company Kaspersky Lab has

seen strong growth in detected threats in

many African countries; Dirk Kollberg, senior

security researcher, global research & analysis

team at Kaspersky Lab, said, “The continued

increase in threats and cybersecurity matters

certainly shows that African countries are

a growing target for cybercrime.”

reaches equipment, and how IT environments

can make use of the solution to filter power

before it reaches sensitive facilities such as

a data centre; he added that sectors such as

transportation can utilise CVTs to protect

essential equipment like security camera

networks and recorders even during

power problems.

Study shows increasing securityrisks to mobile paymentsWith acceptance of mobile and other new

forms of payments expected to double in the

next two years, a global study shows a critical

need for organisations to improve their

payment data security practices; this is

according to a recent survey of more than

3,700 IT security practitioners from more than

a dozen major industry sectors independently

conducted by the Ponemon Institute on

behalf of digital security specialist Gemalto.

Growing cybersecurity concernsfuel growth for PAS Software solutions company PAS generated

record-breaking growth across its business

units in 2015, with its cybersecurity business

unit growing the fastest, returning a 48 per

cent increase in orders year over year; Eddie

Habibi, PAS founder and CEO, said, “With the

number of cyber incidents on the rise,

industrial companies depend on PAS

solutions to detect unauthorised activity

deep within the proprietary control systems,

which IT-based tools fail to identify.”

Friend MTS launches automatedIPTV anti-piracy serviceContent and platform security specialist

Friend MTS is once again ramping up the

fight against video piracy with the launch at

CABSAT 2016 of Viper, the first technology-led

anti-piracy solution specifically designed to

tackle the growing threat from illegal IPTV set

top boxes; Friend MTS CEO Jonathan Friend

said, “Viper will finally enable operators and

broadcasters across the globe to effectively

Marco Da Silva, managing director of power solutions, Jasco Group, says CVTs can be used to protect security equipment




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

16

NEWS

Bulletin / InfrastructureInnovative finance solutions foraffordable rural developmentDelegates attending a major infrastructure

conference in Nairobi, Kenya, were told that

African governments may soon be able to

award critical infrastructure contracts to the

best technical bidder, making them less

reliant on tied, aid-funded contracts and

better able to incorporate a higher

proportion of local content in the project; the

positive message was delivered by Darren

Keep, Mabey Bridge regional sales manager,

Africa, addressing an audience comprised of

government ministers, international

contractors and investors at Project East

Africa in Nairobi, Kenya.

600SA delivers Fassi cranes infast track contractIn a ‘fast track’ contract, two Fassi standing

platform clamshell operation cranes were

delivered recentlly to the Msunduzi

Municipality in KwaZulu-Natal, South Africa,

by 600SA, a division of Eqstra Industrial

Equipment (EIE), in less than two months

from placement of order; the machines, Fassi

F95A.0.21 cranes, were specially imported on

behalf of the client and were equipped with

advanced features such as three control

consoles for increased efficiency and ease of

operation and are being deployed across the

municipality for refuse collection and disposal

and to assist the municipality to improve

service delivery.

Accenture’s digital portal empowers engineers Professional services comany Accenture has launched a digital portal that helps product

developers such as engineers accelerate delivery of products to market at lower costs through

greater efficiency; the Accenture Enterprise Product Information and Content (EPIC) portal

consolidates large amounts of product development data from multiple enterprise systems in

a single, organised view, reducing the time needed for product developers to search for this

data by up to 95 per cent, enabling professionals to use analytics to anticipate and solve

problems, as well as developing insights and making better-informed decisions.

SA steel firm contributes to social transformation South African steel manufacturer Scaw Metal Group has made a valuable contribution to

community upliftment over the last three years, with corporate social investment (CSI) totalling

more than R5mn (US$318,000) in education, environment and sports; Scaw Metals Group CEO

Markus Hannemann said, “The results of our CSI efforts is a good example of our employee’s

commitment to going beyond their roles within the organisation.”

The Fassi F95A.0.21 crane is compact with 4,420kg liftingcapacity at 2m reach, and 1,545kg lifting capacity at 5.9m reach, but it is powerful and has additional functionsto allow for clam shell grab and rotator operation



17

Innovations in formwork technology at baumaAmongst several new developments from formwork and scaffolding

technology company Peri, to be shown at bauma 2016 in Germany,

is the combination of its proven Maximo wall formwork system with

optional, easy-to-mount heating modules, meaning that heating

ensures that concreting work can be carried out even at low

temperatures since the hydration process is not inhibited.

Transnet strengthen ties with GermanAmbassador The Ambassador of the Federal Republic of Germany to South

Africa, Walter J Lindner, has been hosted at the Transnet Port

Terminals (TPT) head office in Durban; the delegation visit

emanated from the current stakeholder relationship between the

Southern-African German Chamber of commerce (SAGCC) and TPT,

and involved a co-hosted strategic B2B session addressing leading

figures in local automotive manufacturing and logistics, as well as

the German Embassy’s economic division head, economic

counsellor Dr Falk R Bömeke.

Hydraform’s building blocks set for Ivorian health systemsBrick- and block-making machinery company Hydraform was first choice

in providing construction materials for the first phase of a hospital

complex in the Agneby-Tiassale region of Côte d’Ivoire; Hospital Jean-

Baptiste, inaugurated in April 2015 by the President of the Republic of

Côte d’Ivoire, represents the starting point for a wider initiative jointly

funded by the Ordre de Malte and SCB (Société d'étude et de

Développement de la culture Bananière), intended to geneate

employment in the local commmunity as well as facilitating the

provision of healthcare.

Hospital Jean Baptiste is developing intoa major centre equipped to service the

whole of theAgnebyTiassale region

Bulletin / InfrastructureNEWS

#BeACarmixMan

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


http://www.carmix.com/

18

QUOTES


“"Of Africa’s 1.1bn people, onein three is a middle-classconsumer. Africa also has theyoungest population of anycontinent. These little-knownfacts are what make it such anattractive yet under-exploitedtarget market for worldbusiness.”

John Thomson, managing director,Exhibition Management Services

“Mobile and cloud technologyis revolutionising the way smalland medium businesses work,giving real-time decisionmaking for the first time ever,reducing costs anddemocratising access tobusiness management tools.”

Alan Laing, EVP global strategicpartnerships & alliances, Sage

“Local entrepreneurs are thekey to unlocking economicdevelopment in Africa. Young,growing businesses require riskcapital from funding sourcesthat have a higher risk tolerancethan traditional banks. Theneeds for such funding isparticularly important in post-conflict and other frontiermarkets.”

Oumar Seydi, director for Eastern andSouthern Africa, IFC

“While many operations inAfrica found it necessary orpreferable to provide their ownroad, rail, energy or waterservices, most will becompelled to find partners tomake this affordable in comingyears.”

Andrew van Zyl, partner and principalconsultant, SRK Consulting

“We encourage food and agrisuppliers and other leaders tobe directly involved in theestablishment of water marketsto protect the long-runeconomic sustainability of theagriculture industry. Globally,local governance andinvestment will be required inorder to ensure stable watersupplies but also to replenishcurrent deficits caused by yearsof overuse in many countries.Water markets will increase theoverall net benefit to society,increase the incentive forexpanded investment, whiledecreasing risk for theagriculture sector as a whole.”

Vernon Crowder, analyst, Rabobank

“Today, the only certainty in theworld’s economies and businessmarkets is change. Of late, wehave been reminded of the‘trickle-down’ impact thatmacroeconomic influences haveon even the most sophisticatedor fastest-growing economies inAfrica. Where the financialprofession is no different. In fact,in addition to looking at adaptingto ongoing market challenges,this profession – includingfinancial officers, accountantsand auditors – are faced withnumerous other changes, instandards, regulations and newways of working, and there canbe no doubt that the professionneeds to adapt to thrive.”

Theuns Holtshousen, divisionalbusiness leader: Africa, CaseWare Africa

“Whether organisations chooseto outsource the fullmanagement of infrastructureto a single service provider, or

only certain aspects of it, it isessential to create well-definedSLAs [service level agreements]to govern the management ofinfrastructure. In addition,service providers need todeliver visibility into theinfrastructure being managedthrough comprehensivereporting. From the businessaspect, it is essential to createan integrated view of IToperations, and align IT withdefined business outcomes, toensure that IT can add value tothe organisation.”

Saurabh Kumar, managing director,In2IT Technologies (South Africa)

“Africa is brimming withentrepreneurs with growinghigh impact businesses thatcould not only positively impactAfrica, but the world. Access tofinance has always been a toughchallenge to overcome andpeople have typically notwanted to invest in Africanbusinesses as they havehistorically been considered toorisky. However, the Africannarrative is changing for thebetter and the continent'sexponential growth in the lastdecade shows that aninvestment in impact focusedAfrican businesses can yieldhigh returns.”

Neku Atawodi, founder and CEO, Malaik

“Quotes”

Saurabh Kumar,managing director,In2IT Technologies(South Africa)


Tanzania, with help of the governments of Norway and theNetherlands, is planning to install 10,000 biogas plants by 2017.As part of the Tanzania Domestic Biogas Project (TDBP), aimed atbenefiting rural communities in the country, the biogas plants will bedesigned, built and installed throughout the country.Netherlands Development Organisation (SNV)’s Martijn Veen saidTanzania and Norway have provided a total of US$140mn, while SNVsupported the project with US$247mn. www.africanreview.com/energy-a-power

Tanzania sets out ambitious plan toinstall 10,000 biogas plants by 2017

19African Review of Business and Technology - March 2016www.africanreview.com

WEB SELECTION

Case Construction Equipment is setto introduce a new backhoe designfor the 580T.The new design offers customersthe flexibility to opt for tailor-made backhoes that suit specificneeds. It will be launched at theupcoming bauma 2016 construction expo.Its new in-line geometry, which maintains the conventional Casebackhoe S shape boom, ensures that the effort is evenly distributedover the entire length of the boom, resulting in high-stress resistance.A narrower frame of the boom will also provide better visibility.www.africanreview.com/construction-a-mining

Coca-Cola Company has signed anagreement to acquire an initial minorityequity shareholding in Nigeria’s Chi Ltd.Coca-Cola Company has made an initial40 per cent equity investment in Chi Ltdand intends to increase ownership to 100per cent within three years, subject toregulatory approvals, while working onother long-term commercial structures. www.africanreview.com/finance

Case Construction Equipment to launchnew backhoe design at bauma 2016

The 580ST backhoe design allows acustomer competent levels offlexibility in usage. (Photo: Case)

African Review/On the WebA selection of product innovations and recentservice developments for African business.Full information can be found onwww.africanreview.com

Coca-Cola to acquire Nigerian food andbeverage company

The latest investment by Coca-Cola expands its presence inNigeria's value-added dairyand beverage sector. (Photo: Helgi Halldórsson)


http://www.exhibitionsafrica.com/

Recently I joined more than a dozen ofthe world’s sharpest minds on African agriculture in an effort to

consider the future of the African farmer in our digital age.

I wanted to establish one simple fact:agriculture is poised to drive a new era ofinclusive economic growth for Africa - butonly if we focus on the small, family-run farmsthat are Africa’s main source of employmentand produce the majority of what Africans eat.

The opportunity is clear. Africa’s growingpopulation and expanding middle class arecreating a domestic market for food productsthat will be worth $1 trillion by 2030. But totap this opportunity for Africa’s smallholderfarmer, we need to stop thinking about themas subsistence growers and embrace theirpotential to generate income.

The very word subsistence implies astruggle to survive, not an effort to build abusiness that thrives. That’s why no child ofan African subsistence farmer wants to be afarmer. For the most part they rememberfarming as a trade that kept them poor,because for the majority of Africa’s farmers,agriculture is a classic poverty trap.Subsisting becomes a full time job. ButAfrican farms are fully capable of becomingprofitable businesses.

The need for greater yield Today, most farmers produce a fraction ofwhat their lands can yield, mainly becausethey are not using improved seeds orfertilizers. In Uganda, for example, 87 percentof smallholder farmer use saved grain as seed,even though there are new varieties thatcould quadruple their yields.

One reason for their reticence to purchasenew seed is that most African farmersoperate in an environment that always hasthem on the verge of destitution. It’s truethat many lack access to yield-improvingfarm inputs, including seeds, fertilisers, andinformation. But more importantly, they rely

on saved seeds because they know howthey will perform. They cannot afford togamble the unknown.

Many African farmers also wonder why theyshould invest in boosting production whenthey lack access to markets where they couldsell their surplus. In the Democratic Republicof the Congo, the eleventh largest country inthe world by geographical area, there arefewer than 1,500 miles of paved road, aboutwhat you would find in a middle-sizedAmerican city. And when African farmers domanaged to get their produce to market, theyoften fail to get a fair return because they lackinsights into commodity pricing.

Market opportunitiesSo how do African farmers, a hugeconstituency that comprise 70 per cent of ourpopulation, get beyond subsistence? Forstarters, national governments and thedevelopment community can empowerAfrican farmers with more options in seeds,fertilizers and market opportunities.

The good news is that over the last decadewe have learned a lot about the local seedand soil needs on African farms. And we haveseen many organisations intensify their

efforts, including plant breeders at the CGIARcenters and soil experts at the InternationalFertilizer Development Center. Also, newefforts, like the African Fertilizer andAgribusiness Partnership (AFAP), areproviding fertilizer blends suited to specificsoil conditions. And there are innovative waysto scale up these solutions.

Innovations in agricultureDigital innovations are accelerating the shiftto market-oriented agriculture. More than750mn rural Africans already use mobilephones, which is why Nigeria now deliversseed and fertilizer vouchers directly tofarmers through their phones. In its first yearalone, the programme reached 1.7mnfarmers and helped them produce anadditional 8.1mn metric tons of food.

We need to see commitment spreadacross Africa. Give our farmers theopportunity to prosper and they cancultivate a promising economic future thatdelivers benefits for all Africans. �

Agnes Kalibata, president, Alliance for a GreenRevolution in Africa (AGRA), and former Ministerof Agriculture for Rwanda

nigeriaBusiness

20

Cultivating fortunes onthe family farmAn integrated approach to smallholder agribusiness can enable prosperityand deliver a promising economic future

Agnes Kalibata, president, Alliance for a Green Revolution in Africa (AGRA)


1 1 14:50

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14:50


http://kanon.nl/

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

Business entrepreneurship

The Raizcorp waysince 2000, Raizcorp has worked with over 10,000 entrepreneurs to assistthem on their growth trajectory; its founder and chief executive, Allon Raiz,discussed the firm’s activities with African Review

African Review: What does Raiecorp do?Allon Raiz: We are a business developmentservice. We call ourselves a ‘prosperator’because we dislike the term ‘incubation’ –incubation connotes weakness and illnessand it labels entrepreneurs as vulnerable andsickly. But when you analyse the people inour programmes most of them, the majorityof them, are profitable.

Raizcorp’s purpose is about taking themfrom one stage to the other; sometimes itspre-profit to profitable; some times it’sprofitable to more profitable. But the focus ison growth. We have different programmesthat are focused on different parts of theirjourney – from pre-revenue tocommercialising client’s operations. We alsoaccelerate large businesses that need somesupport in their final push to be big.

African Review: How does the selectionprocess for your clients work?Allon Raiz: Our selection process is an expertprocess that we have put together over thelast 15 years, a learning process that isinformed and takes into account themistakes we have made over the years. I haveto say upfront that it is not absolutelyperfected, but it’s pretty rigorous. We haveimpressive success rates. And, as much as itsounds odd and innocuous, many peopledecide after their initial expression of interestthat they don’t fit in, so that’s a de-selectionelement in itself.

African Review: Let’s assume they havedecided to proceed. What happens next?Allon Raiz: They come in for an interview,basically depending on where theirbusinesses are positioned and the criteria forthat programme. Then they write some of ourtests. We have a team of 14 psychologists thatmark those tests. That leads to a secondinterview that looks for a correlation betweenthe information we have gathered. We thenconduct what we call a baseline audit. This isnot part of the selection process but basicallywe are trying to see where they are at. Thathelps us, but that’s only for efficacy purposesso that in the future we know where they

were when they arrived. The next stage is toconduct a due diligence. We check, forinstance, that they are the owners of thebusiness; their turn over trends; and we lookat the bank statements. Finally, the applicantssit in front of a panel of three.

African Review: Do you sit on the dragon’sden panel? What is the success rate of theapplicants?Allon Raiz: No, I am not on the dragon’s denpanel. But it is a high-pressure situation, andonly one in three actually gets through thatstage, with only one in 20 getting throughthe whole of process. Let me also point outthat we do not make any decision based onthe applicant’s business plan. We base it onentrepreneur. The business plan is not, in ouropinion, an indicator of success so we lookvery much around the entrepreneur andwhether we believe they are a good fit for ourprogramme.

African Review: Do you work principallywithin the South African economy?Allon Raiz: Yes, it is mainly the South Africaneconomy from which we get on average 10 to40 applications a day, sometimes as high as100. But we’re also operating in Angola andlooking to expand further north. So we are indiscussions in a number of other countries inEast Africa and West Africa. We expect to be in15 countries in the next 10 years.

African Review: Are your applicants mainlyindividual entrepreneurs?Allon Raiz: Certainly, I would say that ourbusiness is all about people and processes,but our applicants can be individuals orteams such as two owners or three partners.We will put them all through the applicationprocess, and if one pulls out that deselects all.We are quite strict about that.

African Review: How many partnershipsdo you have under management?Allon Raiz:We’ve got two models — onetakes equity in the businesses. In the othermodel, we take a flat fee. Some corporateclients come to us to use our programmes as

part of their supply developmentprogramme, black economic empowermentprogramme; or as corporate socialinvestment initiative.

There again, they might come to us and say“we are looking to support X amount ofentrepreneurs in this specific field and wewant them on this programme, or we wantyou to design a specific programme for us inthis space.”

I can give you the example of Discovery,South African medical insurance and medicalaid company. Discovery asked us to design aprogramme specifically around socialentrepreneurs in the medical and health-related space. So, we designed something forthem. It was out of our comfort zone and wehad to rethink our selection process. We wenton a huge learning curve in our first year, butthey knew we could use our expertise in thisnew space and new direction. �

Interview conducted for African Review ofBusiness and Technology by Stephen Williams

Allon Raiz, cheif executive and founder of Razicorp



http://www.ekohotels.com/

24 african Review of Business and Technology - March 2016 www.africanreview.com

in a competitive and ever-evolving industry, African banks continueto draw on new technological innovations in order to put theirservices ahead of the pack. One of the most recent of these innovations is the development of

financial technology (FinTech), a line of business which is based onusing software to provide financial services. FinTech companies,(normally start-ups) are shaking up the traditional financial system,using technology and software to make payment processes easier,increase security and make banking more affordable.

Innovators in the new worldIn a world that revolves around technology, large banks are sitting upand taking notice of these FinTech innovators. In Africa, banks areincreasingly calling on FinTech companies to provide services basedaround technology.

In 2013, South Africans Warren Bond and David Milligan realised thatthere was an opportunity to connect financial institutions to market-ready FinTech solutions from all over the world. So, the created Matchi.Before this, Milligan had been running innovative business units in alarge bank for more than 10 years, while Bond had successfullylaunched and licensed technologies to banks.

“Both of them experienced first-hand how banks can benefit fromworking with smaller, more innovative FinTech firms. We realised that aglobal innovation platform was needed to assist innovators reach theright financial institutions. On the other hand, banks need consistentand clear approaches for sourcing and evaluating possible innovations,”explained Matchi marketing head Catherine Miller.

Matchi is an online matchmaking platform which provides leadingbanks and insurance companies (known in Matchi terms as “Buyers”)with access to a curated online showcase of the world’s best FinTechinnovations. Buyers are able to search, view and connect withinnovators directly to establish collaborative relationships and explorenew business opportunities. The company has regular contact withsenior decision makers in more than 70 major banks and insurancecompanies across all six habitable continents.

Buyer members also have the opportunity to run an InnovationChallenge, which is one of the quickest ways to identify and sourcetargeted market-ready solutions. The challenges give innovators fromall over the world the option to respond directly to the buyer’sparticular area of interest.

The importance of start-upsFinancial institutions can also opt to be ‘Sponsors’, which secure the firstviewing rights to new innovations within their geographical region.Buyers and Sponsors are both guided by Matchi analysts to connectthem with the right innovations. Standard Bank and Liberty are the two

Matchi Sponsors for the Sub-Saharan Africa region, while many otherlarge banks in Africa are Buyer members. Massive attention has alsobeen gleaned from innovators. Miller said, “We have had huge interestand support from the African FinTech community, with hundreds ofhigh quality FinTech innovations available to view on our platform.Several South African FinTech firms have already won or been finalistsin our global challenges.”

By being part of the platform, innovators cut down drastically onmarketing costs, while Matchi has partnered with KPMG to offer themthe chance to get solutions implemented in specific regions.

Paul Steenkamp, head of innovation capability at Standard Bank,says that the banking giant has engaged the local and internationalFinTech community extensively through their Matchi sponsorship.

“The scale and reach of big banks are incredibly valuable. On theother hand, FinTech start-ups have agility and capabilities that banksdon’t have. When you bring these these things together, one plus oneequals three. Banks and FinTech companies can achieve a lot more byworking together,” Steenkamp said.

As proof of the importance of FinTech start-ups, Standard Bankdeveloped its SnapScan app – which allows users to make in-storepayments with their mobile phones – with South African-basedFinTech group FireID.

Thousands of FinTech innovators are springing up across Africa,creating an entire new industry which is bringing in billions of dollars.

According to the African Tech Startups Funding Report 2015 -compiled by tech startup analysts Disrupt Africa - FinTech firmsreceived the second highest startup funding of any industry in Africa in2015, after solar power. Disrupt Africa found that US$185.7mn wasinvested in tech companies, securing 29.6 per cent of the total fundsinvested in African start-ups. �

BankingFinancE

Matchi disrupts withFinTech developmentEstablished banks are turning to agile innovators to integrate the softwareand services they need to compete today

Banks are increasingly calling on FinTechcompanies to provide services (Photo: Fotalia)

S05 ATR March 2016 - Finance_Layout 1 19/02/2016 09:35

25african Review of Business and Technology - March 2016www.africanreview.com

FinancEcorporate Banking

challenge: the project financeis there a shortage of project finance or just not enough bankable projects?What makes a project financially viable? Why do projects often fail to meetinvestors’ and banks ‘criteria?

Sub-Saharan African country’s lack ofbasic infrastructure is a major constrainton doing business, transporting goods

and people and output of energy intensiveindustries. The largest infrastructure deficitoccurs in power generation, powerconsumption and security of supply. Over600mn people live without access to reliableand affordable electricity. According to theWorld Bank, closing the infrastructure deficitrequires around US$75bn a year.Infrastructure investment is currently runningat US$40bn, leaving a funding gap ofUS$35bn a year.

Shortage of capital has long been blamedfor the state of Africa’s infrastructure butfinancial experts and investors claim that it is alack of “bankable” projects rather than actualshortage of finance that is to blame. Money isavailable for bankable projects, but in manycases, private investors are finding thatapparently commercially viable projects arenot structured in a way to suit them.

Why independent power projects often failthe bankability testAccording to James Leigland, public-privateinfrastructure advisory facility team leader at

The World Bank, the cost of projectpreparation can reach five per cent of theproject’s investment cost, to be paid up-frontyet it is essential for success. Comprehensiveproject preparation encompassing detailedfeasibility studies of factors such as marketsize, technical and environmental feasibility,degree of government support and the all-important presence of a bankable powerpurchase agreement, which assures investorsthat they will be paid and in profit. Thebankable power purchase agreement (PPA)for a power generation project for exampleincorporates cost-reflective tariffs to coverinvestor’s costs, as well as hypothecation ofrevenues to investors, from power sales aswell as a sovereign guarantee. Aninadequately framed PPA is probablyresponsible for the current situation of theindependent power producer Songas PowerPlant, which is owed US$100mn by thedistribution company Tanzania ElectricCompany Limited. Songas is currentlythreatening to cut 40MW of power off unlessit receives payment of the debt.

The twin elements of affordability and sizeof market demand are also key issues forproject financiers. Are there sufficient

customers willing and able to pay a costreflective tariff to a new independent powergenerator? For example, Namibia’s proposedUS$2.3bn 1,050MW Kudu gas power plant isfar too large for the domestic market and theplan to export 300MW of surplus power toSouth Africa’s Cape Province is unrealistic.Very often, customers are unwilling or unableto pay the higher tariffs required for newpower thereby making the projectuneconomic.

To further reduce their risk, potentialinvestors are now investigating the pastrecord of accomplishment of ‘consortiumpartners’ — from the lead partner to thesmallest sub-contractor as a means to containtime and cost overruns. The “Africa premium”of cost and schedule inflation raises a project’sinvestment costs.

How are projects being made morebankable?Agencies such as the African DevelopmentBank, European Bank for Reconstruction andDevelopment and Obama’s Power Africaamongst others, have establishedinfrastructure project preparation facilities(IPPF) often partially funded to provideconsortia with technical and economicexpertise for better project preparation as wellas a conduit to dialogue with government.The African Development Bank, under itsrecently appointed President Adesina, isforming an African- financed infrastructurefund worth US$12bn to electrify the continentin the next five years. To de-risk privateinvestment in independent power producersand to attract four times the amount fromprivate investors, the bank will offer creditenhancement and partial risk guarantees. It isnot lack of finance, but the fear of not gettingpaid, that underpins the failure of manyprojects to get off the ground. In essence,project promoters must do their homeworkbefore presenting a case for finance. �

South Africa’s mega 4,800MW Medupi Power Plant is still incomplete where costs have ballooned from anestimated US$4.34bn by Eskom CEO Jacob Maroga in 2007, to US$9.69bn today. (Photo: Wikimedia Commons)


in today’s increasingly integrated globaleconomy driven by technicalsophistication, declining transportation

and communication costs and liberalisationof trade and foreign direct investment (FDI)regimes, many products and services fromconception and design through production,marketing and distribution have becomemore dispersed across the globe andbetween firms. They are driven bymultinational corporations (MNCs), aiming tooptimise their sourcing strategies throughgeographic re-organisation and theseparation of production stages. Anestimated four-fifths of international trade islinked to activities of MNCs.

The international supply chainThe interconnected production processwhere value is added at each stage beforepassing on to the next stage is referred to as‘global value chains’ (GVCs). Various tasks thatconstitute the supply chains are undertakenin diverse locations, depending uponrespective countries’ comparativeadvantages. This enables a particular countryto join a production network without havingto provide all the other upstream ordownstream capabilities.

The literature on world trade integrationmeasure GVC participation via two distinctconcepts, both of which are expressed as apercentage of a country’s gross exports:

*The share of foreign value added (FVA) in

total exports that was imported from externalsuppliers upstream in the GVC - termed“backward integration” - reflecting the extentto which a country is integrated relativelydownstream of the value or internationalsupply chain;

* The share of a country’s exports that istransformed into further exports by theimporter (i.e. value added embedded inexports of other countries) – termed “forwardintegration” – reflecting the extent to which acountry is integrated relatively upstream ofthe value or international supply chain.

Combining backward and forwardintegration provides a measure of total GVCparticipation and the degree ofindustrialisation.

Added benefitsEach stage carries, to varying degrees,opportunities for new local activities, jobcreation and corporate profits, as well asknowledge spillovers and technology. SeveralSoutheast Asian countries’ industrialisation

strategy was based on offshoring andincreased connectivity. China integrated intoGVCs by specialising in the activities of finalproduct assembly and upgrading itsparticipation by building a competitivesupply chain of intermediate inputs (iedeveloping linkages) and by improving thequality of its exports.

In recent decades, developing economiesare being linked to GVCs at a specific stage,usually assembly in manufacturing andcommodity production in agriculture. Thisoffers opportunities to upgrade throughknowledge transfers mainly in the form ofFDI, product differentiation and over timeinstalling adjacent stages of the value chain.The International Monetary Fund (IMF)echoed, “Knowledge transfers from otherproducers in the value chain and, eventually,upgrading to higher value added segmentsof the production chain can supportproductivity and income growth”.

Similar to merchandise trade, services arealso disaggregated and traded as separate

investmentFinancE

26

integrating assets andindustry

Although its share has fallen, mining and quarrying remain the sector with the highest foreign value added in Africanexports in absolute terms, followed by petroleum, chemical and non-metallic mineral products

african Review of Business and Technology - March 2016 www.africanreview.com

How african economies are linked into today's internationalproduction networks

Fostering commercial linkages

between the MNCs anddomestic private sector

can help to promotebusiness contributions to

development goals


tasks, thus allowing for the development ofservice value chains in their own right, whichcan be used anywhere in the world. A largechuck of services trade relates to the actualoperation of GVCs, notablytransportation/logistics and warehousing, butalso includes a variety of sub-sectors likebanking/finance, insurance, businessprocessing services and informationtechnology, which are supplied at every stageof the production phase. These services play acrucial role in merchandise trade by helpingto move various components efficientlyacross national borders.

Organisation for Economic Cooperationand Development (OECD) and World TradeOrganisation (WTO) Trade in Value Added(TiVa) database revealed that the valuegenerated directly and indirectly by servicesindustry as intermediate inputs representedover one-third of total value added inmanufactured goods. Service value chains arenow seemingly being interlocked into GVCs.

Regional participationAfrica’s share of global trade in value added issmall but growing, particularly in primarygoods and in backward integration. So far,the region serves more as a source of primaryinputs than as a production hub.Manufacturing shows the highest level ofglobal and regional value chain participation,ahead of agriculture and business services.Asia and Europe are the main source offoreign value added in African exports andEurope major export destination.

The most integrated African countries inGVCs are Cote d’Ivoire, Ethiopia, Kenya,Ghana, South Africa, Mauritius, Egypt,Morocco and Tunisia. Recent years have seenthe growth of Africa’s automotive operationsas assembly hubs in the production networksof multi-national car companies, mainly inSouth Africa, Morocco and Egypt. Othermedium to high-tech manufacturingcapabilities in Africa have also developed,

given the high content of foreign valueadded embedded in the exports of electricalmachinery and metal products. Although itsshare has fallen, mining and quarrying remainthe sector with the highest foreign valueadded in African exports in absolute terms,followed by petroleum, chemical and non-metallic mineral products.

Among services, finance and businessprocessing centres report the highest GVCparticipation rates, plus the highest share ofregion’s value chains. Africa’s high valueadded service sectors are reasonably wellintegrated into global networks. Especially infinance, regional value chains are ofsignificant importance - with the sector

FinancEinvestment


59%

80%

57%

41%

39%

14%

2%

0 10 20 30 40 50 60 70 80 90

Job creation from new activities

Increased integration ininternational trade

Attracting foreign direct investment

Emergence of domestic highervalue-added activities

Skill & technology spilloverthrough interaction with

External suppliers and purchasers

Possibility to leap-frog intospeci!c activities without

Having to develop vertically integrated industries domestically

Increased regional trade

Series1

T

Source: African Development Bank, AEO country Experts Survey 2014.

45%

36%

34%

30%

23%

14%

0 10 20 30 40 50 60 70

61%Being locked into

low value-added stages of GVCs

Foreign investors operatingin isolation - limited

Spillovers to domestic economy

Depletion & out!ow ofthe country's natural resources

Potential marginalisation dueto exclusion from GVCs

Volatility of trade !ows basedon changes in strategies

Of multinational enterprises

Erosion of social & environmental standards to

Investment

Loss of regulatory control tomultinational enterprises

Source: African Development Bank, AEO country Experts Survey 2014.

Chart 1: The greatest opportunities arising from GVCs and resulting new trade patterns

Chart 2: The greatest threats associated with GVCs and resulting new trade patterns

Recent years have seen the growth of Africa’sautomotive operations as assembly hubs in the

production networks of multi-national car companies


showing a much greater share of value addedfrom other African economies in a country’sexports than any other sector, reflecting theexpansion of Pan-African banking groupslikes of Standard Bank (South Africa),Attijariwafa Bank (Morocco) and Togo-basedEcobank.

Structural transformationCountries can be positioned upstream ordownstream in GVCs depending on theirspecialisation, and their positions couldchange over time. Upstream economiesproduce the raw materials or knowledgeassets (for eg. research, design) at initialproduction stages, whilst downstreameconomies assemble processed products,such as machinery, electronics componentsor specialise in customer and distributionservices (for example, its end-use by finalconsumers).

Empirical evidence suggest that Africancountries with a higher share of foreign valueadded in exports on average experiencedhigher productivity growth and positivestructural changes - gradually moving fromsimple labour-intensive activities into moresophisticated portions of the productionprocess over time. As a country climbs up inthe value ladder through upgrading wherecomponents are assembled into finalproducts and establishing headquarterfunctions, it exports more intermediate

goods with higher value added. This has beenparticularly at play in Southeast Asia andcentral eastern Europe, where downstreamcapabilities rank well above emerging anddeveloping regions’ average.

Fostering commercial linkages betweenthe MNCs and domestic private sector canhelp to promote business contributions todevelopment goals. For example, largeagribusiness companies working inpartnership with donors to link African small-scale farmers into their supply chains. These

social inclusive business ventures provideinputs and transfer knowledge and skills,thereby raising overall productivity andincomes of farmers. Without upgrading andnurturing new capabilities, however, in thelong-term local operations risk remainingconfined to the bottom value addedsegments of a GVC.

Africa boasts sizeable potentials tointegrate much deeper into GVCs byleveraging its comparative advantages, whichinclude a young expanding workforce, largetracks of unused fertile land and favourableclimate. Such assets provide added valueopportunities in light manufacturing, textiles/apparel, agro-business and tourism, amongother sectors, thereby helping to fosterexport diversification and structuraltransformation of African economies. �

Moin Siddiqi, economist

The April 2016 issue of African Review willdiscuss how best to increase Africa’sintegration into GVCs

investmentFinancE

28

Recent years have seen the growth ofAfrica’s automotive

operations as assembly hubs in the

production networks ofmulti-national car

companies, mainly inSouth Africa, Morocco

and Egypt

african Review of Business and Technology - March 2016 www.africanreview.com

These social inclusive business ventures provideinputs and transfer knowledge and skills, therebyraising overall productivity and incomes of farmers

Source: UNCTAD-EORA GVC database, which provides global multi-region input-output (IO) tables, to derive value-added trade for 189 countries (42 in sub-Saharan Africa) from period 1990 to 2012.

Transport equipment

Electronics & machinery

Metal

Recycling

Finance & business services

Other manufacturing

Utilities

Construction

Oil & chemicals

Wood & paper

Mining

Transport

Textile & apparel

Telecom

Food & beverages

Fishing

Education and healthcare

0.76

0.75

0.73

0.66

0.64

0.63

0.62

0.59

0.58

0.56

0.53

0.52

0.48

0.47

0.4

0.39

0.39

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Share of total value-added exports

Chart 3: Africa's integration into GVCs by sector, 2011


FinancEEvents


Held recently in Khartoum, Sudan, the International Forumon Islamic Finance (IFIF) featured intense discussions oninclusive Islamic finance, the impact of social media on

banking, strengthening Islamic capital markets in Africa andmuch more. Today, the agenda delves into specific case studies ofemerging markets in Africa, microfinance and mobile payments.

There were engaging presentations on emerging markets forIslamic finance in Africa by Dr Andrew Nevin, partner at PwCNigeria, and Ridha Meftah, executive director at EY Tunisia. A Harvard & Oxford trained economist (and Rhodes Scholar), DrNevin has been playing a formative role in creating a strong andvibrant economy and society in the world’s most dynamiccontinent, Africa. Mr Meftah is renowned for his financialexperience in North Africa and the West African Economic andMonetary Union (WAEMU).

The conveners of IFIF, Middle East Global Advisors delivered a powerful line-up of sessions focusing on technology, financialinclusion and innovation.

The event featured a unique session on bringing FinTech andmobile payments to under-banked markets in Africa.

Leading the discussions at IFIF were Fadilah Tchoumba (leadbusiness and strategy analyst of Ovamba), Kashif Naeem (EVP & group head – retail microfinance of Bank of Khartoum), BrianRichardson (CEO of Wizzit), Mohammed Kateeb (group chairman& CEO of Path solutions) and Justin Floyd (CEO & deputychairman of RedCloud Technologies).

IFIF 2016 concluded with a dialogue centred around anexemplary leader from Islamic finance, Professor Datuk RifaatAhmed Abdel Karim, CEO of the International Islamic LiquidityManagement Corporation.

Overall, IFIF 2016 focussed on two key areas for spurringeconomic growth in Africa – innovation and inclusion. Fadi AlFaqih, CEO of the Bank of Khartoum (BoK), spoke about his bank’sleadership in microfinance, saying, “We managed the largest and1st of its kind fund for Islamic microfinance, the Al Aman Fund. Itwas created by a consortium of banks and Zakat organisationswith a total fund value of SDG200mn (US$33mn) whereparticipating banks contributed SDG150mn and zakatorganisations contributed the remaining SDG50mn.” �

iFiF focusesmore onfinancial inclusion



In mid-2015, mobile satellite voice anddata service provider, Globalstar,announced that African Businesses would

now be able to ‘benefit from leading-edge,low-cost satellite communications’, as aresult of its gateway in Gaborone, Botswana– where it partners with BroadbandBotswana Internet (BBi) -- going live. Thisdevelopment now enables Globalstar tooffer pan-African satellite coverage of whatit calls ‘affordable’ simplex services, one ofwhich is its SPOT range of personal trackingservices. While Globalstar deliverscommercial simplex and duplex services toa wide range of sectors, such as oil and gas,government, mining, forestry, commercialfishing, utilities, military, transportation andheavy construction, its SPOT LLC subsidiaryoffers its additional satellite communicationand tracking services and devices forrecreational use. The SPOT Global Phone, forinstance, uses the Globalstar network totransmit two-way voice and datacommunications, while SPOT messagingdevices use both the GPS satellite networkand the Globalstar network to transmit textmessages and GPS coordinates keepingusers in remote, isolated regions in contactwith the outside world. Since servicesbegan in 2007, more than 3,500 rescueshave taken place around the globe as aresult of initial alerts via SPOT services. In2010 alone, some 550 rescues were initiatedby SPOT services in 51 countries on landand at sea.

Companies co-opting new servicesCommercial sectors to benefit from thelatest generation simples SPOT Gen3services include oil & gas providers andexploration companies, often operating inremote locations, as well as mining,construction and engineering companies.Remote workers on land or offshore cankeep head office, customers, family andfriends regularly up to date with their

movements and work knowing they have aone-touch lifeline in an emergency.

Talking to African Review, SPOTspokesperson, Vanessa Haywood-Sandes ofPeak Sport Management, said that whileSPOT does manufacture a satellite phone(voice) it is ‘not yet available in Africa’,adding, “They are hoping to launch it laterthis year.” She said that there are currentlytwo devices that SPOT offers in Africa: theSPOT Trace and the SPOT Gen3. “Bothproducts track on and off the grid with noGSM cellphone signal needed and are theonly products of this kind actively marketedin Africa.

She went on to say that the Trace is usedpredominantly for asset tracking for anti-theft applications such as the security ofboats, RVs/quad bikes, motorcycles andmotor vehicles. It sends a one-way trackingsignal and only has an on/off button andwhile it is used for tracking alone Haywood-Sandes said that it can also be configured tosend alerts via sms or email ‘when an assetmoves’.

“The Gen3 is used as a safety trackingdevice in sailing/boating, aviation,mountaineering, cycling, hiking, hunting,fishing and loan worker applications. It hasa few messaging options which need to bepre-configured on-line before a trip.” Shesaid that an ‘OK’ button enables users to‘check in’, daily to let loved ones/colleaguesknow that they’re safe. “There is anothercustom button in which you can pre-setanother type of message and a third‘helping-hand’ message, which also needsto be pre-set and should be used to alertloved ones if you are in need of help in anon-life threatening situation. Finally, thereis the very important ‘SOS’ button, which,when activated, sends a signal directly toGEOS – an international emergency callcentre. They then initiate a search andrescue operation. The button is only to beused in a life-threatening situation. No

messaging can be received on the device –it is one-way only – and does not have akeyboard so all messages need to be pre-configured”.

According to Haywood-Sandes, theequipment - Trace and Gen3 – has longbattery life, with Lithium batteries,depending on the tracking rate, able to lastfor weeks. The reason for this long life, shesaid is the use of Globalstar’s low earth orbitsatellites, requiring less power tocommunicate with when compared todevices and competitive solutions that‘make use of satellites orbiting the earth atmuch larger distances’.

“The business has grown well over thelast six months since launching in Africa,”Haywood-Sandes told African Review.“We're particularly happy with the growthbecause the technology is so new to Africa.South Africans, in particular, aren’tparticularly aware of products like DeLormeor Yellow Brick because they aren't activelymarketed here or anywhere in Africa, as faras I know. Educating the public/potentialconsumers as to the difference betweenGSM and live satellite off-the-grid trackinghas been a challenge but we’re gettingthere. We’ve had a couple of SOS activationsso far, which have all been dealt with andinjured parties rescued. We’ve sponsored anumber of South African’s with SPOT Gen3sto use on expedition-type trips, allowing usto make use of their ‘adventures’ on socialmedia to help educate people as to how thedevice works.”

Highlighting the versatility of the system,Haywood-Sandes concluded by saying that,“Large and small businesses such asVodafone, could also use the Gen3 for theirlone workers in Africa. The Gen3 isparticularly useful for lone workers workingoff the grid and in potentially dangerousenvironments”. She added that there is,potentially, also a huge B2B market forTrace, to track commercial vehicle assets

Satellite CommunicationsTECHNOLOGY

30

Services streamedfrom the skyHow satellites continue to deliver broadcast, communications, tracking/po-sitioning and data services to many users across parts of the continent


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TECHNOLOGYSatellite Communications

31

when those vehicles are off the grid.Although the device is ‘not a fleetmanagement system’ per se, she said it, “fillsthe gap in fleet management systems, sincethere are still massive areas in Africa, whichoffer no cellphone network coverage.”

Reaching the disadvantaged unconnectedInmarsat is currently working on twoprojects in Nigeria and Kenya, which formpart of a feasibility study into the use ofcommercial satcoms in rural areas andbringing internet connectivity to localcommunities in Nigeria and Kenya. Theproject is part of the UK Space Agency’stwo-year, £32-million programme togenerate new opportunities for the UK’sspace and satellite industry to operate inemerging and established space-faringnations.

In Kenya the company is working to helpdeliver financial services to 200 remotecommunities and sites across the country, to

increase ‘financial inclusion’ for the manypeople who are ‘unbanked’ in ‘unconnected’settings. The satellite service provider isworking in partnership with the Equity BankGroup, which is the largest bank in terms ofcustomer base in Africa with over eightmillion customers in Kenya already. Inmarsatis working with local agents to provide eachof the 200 communities with a BGAN LinkInternet connectivity terminal that willenable the provision of easy and ‘flexible’financial access to people in these new usergroups. The company says that in additionto the financial services on offer, agents willalso be able to create other businessopportunities for themselves and eachcommunity, such as selling data-basedservices.

In Nigeria, the company is deliveringmaternal and child health services to 50unconnected rural communities inpartnership with players including theMobile Alliance for Maternal Action (MAMA).

The project has seen Inmarsat connectingclinics in remote regions with BGAN Link Wi-Fi hubs to provide access to online healthinformation from MAMA for these isolatedpopulations and thereby help improvematernal and child health outcomes.

Through its partnership, Inmarsat isdelivering satellite connectivity devices tothese communities pre-loaded with MAMA’shealth application and is also helping tofacilitate the collection of health data toenable advancements in eHealth findingsrelating to maternal, newborn and childhealth in Nigeria. The company says that,‘The project will ensure that these clinicscan be part of regional and national eHealthsystems, have access to telemedicinecontent, and provide an environment thatencourages women and their families totake advantage of the maternal careavailable’. �

Tim Guest


As West and Central Africa experience unprecedented levels ofeconomic and developmental growth, the region is increasinglyviewed as dynamic and exciting for media services entities andbroadcasters. Demand for high-quality services is likely to grow.However, the market is dominated by terrestrial access. While themove to digital has been on the agenda for some time, the transitionis yet to gain momentum.

SES has sought to play a key role in establishing satellite televisionin the region. SES Platform Services marked the beginning of 2015 bysetting up an independent English-language TV platform withturnaround services. The platform, which is delivered via the SESAstra satellite on the orbital position of 28.2°E, is geared towardsEnglish-language channels for West African countries, as well asinternational channels hoping to branch out across the continent.SES Platform Services was responsible for the entire development ofthe platform from planning to realisation.

Access to West AfricaA year on from its launch, the platform continues to offer manybenefits for TV broadcasters. It provides access to the West Africanmarket for new channels, while well-known and establishedchannels, which have so far mostly been broadcast via terrestrialinfrastructure, can use the platform to reach new audiences in anaffordable way and open up new business opportunities. Otherbroadcast services can be flexibly added, meaning the platform isalways attuned to the needs of SES Platform Services’ customers.Channels using the platform include the popular Sunshine TV,MoneyMartTV and Joy News ventures.

The platform is based on SES Platform Services remote mediaplatform, a DVB platform which re-multiplexes the incoming IP or L-band signal and can encode them if required. It models the signal asan L-band signal and subsequently sends it to the uplink. In terms ofequipment, the remote media platform consists of standard racks,fitted with high-end IRDs and multiplexers, which can also re-encode,if required. There is also a modulator which sends the final signal to

the transmitting antennas. The multi-viewer monitoring systemfeatures automatic error detection and alarm functions which areanalysed in a master control room in Munich, Germany. Each of thetwo technical set-ups have a total capacity of between 26 and 30standard definition channels in MPEG 4.

Positioned on two teleportsSES manages its services to West Africa at teleports in Ghana andNigeria. The K-Net facility in Accra is used by Multi TV, a popular free-to-air platform operating ten channels on the SES Astra 2F satellite.The Computer Warehouse Group facility in Lagos is well-establishedfor operations across West, East and Central Africa. The Ghanaianteleport has a connection speed of 2 Mbit/s, while the one in Lagosruns at 10 Mbit/s via VPN. These connection speeds can supportconfiguration, monitoring and maintenance of the West Africanplatform directly from the SES Platform Services playout networkoperations centre in Munich.

The SES Astra 2F satellite

Building a business platform with satellite TV services


Africa, particularly Sub-Saharan Africa,offers spectacular potential forSpacecom and our AMOS satellites.

With years of experience in Africa, oursatellites have provided a mix of customersfrom ISPs, broadband internet serviceproviders, broadcasters, telecom providers,multi-national enterprises, governments andmore with an array of services.

A new focusToday, Africa is advancing technologically andas cellular networks and Internet broadbandbuild out into Africa's far flung regions, thecontinent will remain a great frontier withimmense growth potential. Spacecom iscurrently planning to position multiplesatellites to service Sub-Saharan Africa. Thefirst of these is AMOS-6, scheduled to belaunched to the 4W prime orbital position laterin 2016. AMOS-6 was built with Africa in mind.Our focus on Africa also led to us to increaseour staffing – both sales and technology – towork closely with our African partners.

This new satellite to be positioned will beco-positioned with AMOS-3 and AMOS-2, andultimately replace the latter. AMOS-6 will belarger than both of its cohorts combined andwill include new technologies such as HighThroughput Satellite (HTS) Ka-band spotbeams to enable service providers to offerimproved broadband internet access to theircustomers.

The great news for AMOS-6 is that we havealready partnered with Facebook to provideInternet Broadband services to the continent.Facebook's Internet.org will providebroadband access to reaches the masses withexcellent user experience. Together we willbring connectivity to Sub Saharan Africa withthe AMOS-6's Ka-band capacity. This newinitiative to leverage satellite technologieswill increase the number of African citizensonline to relieve pent-up demand forconnectivity from the many users in Africabeyond range of fixed and mobile terrestrial

networks. AMOS-6 will be the satellitebackbone for this major operation. Thestrength of AMOS-6's HTS beams aimed atSub-Saharan Africa will ensure that thisstrategic goal is met and exceeded. Ourpartnership with Facebook is an excellentvehicle for Spacecom to serve Africancommunities by enabling them to receivefast, reliable broadband internet. We believethis venture is the quickest method to unlockand expand the continent's latent growth.

New technologies, new markets In addition, AMOS-6's 39 Ku-band segmentswill provide a wide array of services. Withcross-beam and cross-services capabilities,the satellite will serve an important role as acommunications carrier between Europe, theMiddle East and Africa. Fitted with numerousnew technologies, the new satellite will openmore new markets including those in WesternEurope and Ka-band spot-beams forbroadband access.

Spacecom's AMOS-6 HTS technologies willenable our partners, DTH and broadbandservice providers, to integrate broadband

services for non-linear content with broadcastservices for linear content. One advantageHTS brings is that it makes the provision ofbroadband faster and less expensive thanterrestrial rollout. The farther businesses andhouseholds are located from the city centers,the more prohibitive costs of terrestrialtechnologies become. With HTS platforms,high speed broadband becomes a realitywhether for residential customer, as in NorthAmerica or Europe, or to providing broadbandconnections for a town or village in Africa.

Spacecom is in a superb position to enableAfrica to realise its own potential. Satellite is aquick and effective way to bring a largerpercentage of African businesses and citizensonline with broadband access. This isespecially important in rural and hard toreach far-flung areas. According to the WorldBank, every 10 per cent of broadbandpenetration increases developing countries'per capita GDP growth by 1.38 per cent. Thismeans that more satellite services, especiallybroadband, boost overall economicexpansion. We at Spacecom see our missionto push Africa to further realise its fullpotential.

Together with local, national and regionalservice providers, we will enable betterconnectivity to customers in various Sub-Saharan Africa communities. Our

customers include ISPs, broadcasters,telecom providers, multi-national enterprises,governments and others. Obviously, it shouldbe noted that each country or region offers avery different business climates vary. Thus weneed to operate differently in each countryand there is no one template for everycountry. Our local and regional partners bestunderstand the conditions in which theyoperate and therefore we adjust ouroperating standards to fit each and everysingle country. �

Amir Carmeli, senior VP sales West Africa & France,Spacecom: operator of AMOS satellite fleet

Satellite CommunicationsTECHNOLOGY

32

New satellite servicesto rural regionsHow the development of access to broadband Internet is enhanced by theintroduction and operation of the new AMOS-6 satellite

Amir Carmeli, senior VP sales West Africa & France,Spacecom: operator of AMOS satellite fleet



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http://www.ajpower.net/

+

� � � � ��

Just before Christmas, South Africa’s nuclear procurementprogramme was approved by Cabinet, allowing the Department ofEnergy to start calling for proposals to provide 9600 MW of nuclear

energy by 2030, equating to 12.7% of the country’s energy generation.The aims for nuclear power provision in South Africa are lofty, with

as many as eight reactors planned to begin operating from 2023, at areported cost of as much as $100 billion. The numbers have attractedwidespread criticism, with many energy analysts and politicalopposition parties questioning whether South Africa can afford toembark on such a large and costly project.

Energy expert Chris Yelland stresses that, although a call forproposals has started, this doesn’t necessarily mean that South Africawill definitely invest such a huge amount of money in nuclear power.

“The fact that Cabinet has opened a procurement programme doesn’tmean we are on the verge of a nuclear build. In fact, there is no certaintythat it will even proceed. There still has to be a shortlist drawn up on theproposals, the projects still have to go out to tender and final prices stillneed to be established, there’s a long road ahead,” says Yelland.

South Africa’s government embarked on a similar procurementprogramme in 2008. Two vendors were shortlisted and submittedbids, but the project was then scrapped when government realised itwas unaffordable.

“There is no guarantee that the same thing won’t happen this timetoo. There are still possible financial issues that could put this to anend,” Yelland warns.

Soon after last year’s announcement, finance minister PravinGordhan said that South Africa will not pursue a nuclear powerprogramme if it cannot afford it.

“We will act in a fiscally responsible way and only spend money wehave, and if we get more money,” Gordhan said in a media briefing.

Yelland welcomed the prudency of the minister, saying that if SouthAfrica was to proceed with its nuclear programme, it needed to do sowith caution.

“We shouldn’t be committing ourselves to six or eight reactors, weneed to act prudently and proceed with smaller commitments,perhaps building one reactor at a time,” Yelland said.

In the meantime, government has committed R200 million towardsconducting analysis on the feasibility of the programme.

South Africa’s only nuclear power station, Koeberg in the WesternCape, has operated efficiently, safely and cost-effectively since it wasbuilt in 1984. The 1800MW plant contributes around 6% of thecountry’s energy per year, whilst its radiation and carbon dioxideemissions have been minimal.

Yelland said that it would be a shame to waste the experiencegained from running a nuclear power plant effectively.

“Koeberg is proof that South Africa can operate a nuclear power

plant. There is definitely a future for nuclear power here so it wouldbe sad for us to waste this good experience. Hopefully we can buildon it,” he says.

There are however more possible disadvantages to consider.Question marks have been raised about the affordability of runningnuclear power stations, with various studies published last year bySouth African universities and research agencies finding that nuclearenergy is more expensive than other baseload options. But Yellandargues that nuclear energy could prove far cheaper than coal, ifstrategically approached.

“If nuclear plants are built in coastal areas, which they most likelywill be, then they will be very affordable. South Africa’s coast has nocoal-producing areas, so nuclear will be a very attractive proposition,especially when you consider that seawater can be used for coolingpurposes. On the other hand, it would probably be very expensive tobuild a plant inland at a place with scarce water resources,” Yellandpoints out.

Another issue is flexibility, with nuclear plants requiring long-terminvestment. They take a long time to build, have a high capital costand require a commitment of many decades.

“It’s risky to invest a high upfront capital cost immediately, as youare committing yourself for the next 75 – 100 years. No one knowshow our energy requirements may evolve during that time. Again, thisis where the value of building smaller units with quicker lead timescomes in,” Yelland says.

South African media have reported that nuclear procurementproposals are coming in from Russia, China and Korea, but theDepartment of Energy are tight-lipped. African Review gave thedepartment three weeks to respond to questions, but received noresponses by the time of going to print. �

Dale Hes

NuclearPoweR

34

Caution is needed forthe nuclear futureSA's nuclear procurement programme might provide more than a tenth ofits energy generation by 2030, but fiscal responsibility is critical

Koeberg is working proof that South Africa canrun a nuclear power programme, but the country

needs to proceed with caution (Photo: Eskom)



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Sub-Saharan Africa (SSA) is desperately short of electricity whichhits businesses hard, resulting in an average yearly loss of six percent of turnover, rising to at least 15 per cent of sales in Ghana

and Tanzania reports the African Development Bank (AfDB).Inadequate power supplies constrain SSA economic growth bybetween two and four per cent a year, notes the Africa Progress Panel’s(APP) Report, Power, People and Planet 2015. The current shortfall inpower generation, between demand and supply, is variouslyestimated at around 74,000MW requiring at least a doubling ofpresent day capacity to satisfy current demand, and more to meetfuture demand arising from rapidly increasing population,urbanisation and a concerted drive for universal access to electricity.

Recognition of the seriousness of SSA’s power shortfall has ledGhana, Senegal, Namibia, Sudan, Uganda and Namibia to express aninterest in nuclear whilst South Africa, Nigeria and Kenya aredeveloping proposals for nuclear reactors, reports AFKInsider October2014. Currently, South Africa is the only SSA country with nuclearpower. Its two reactors, located at Koeberg generate 1,940MW oraround five per cent of the country’s electricity.

Nuclear reactors range from the large, producing around 1,200MW,to small at under 300MW capacity (about the total generating capacityof Namibia) to medium known as small modular reactors (SMRs), withcapacity of around 700MW ( equivalent to the power output of Ghana).

The attraction of modular SMRs is considerable, costing very muchless than the US$5bn of standard 1,200MW reactors, reports the USDepartment of Commerce publication, The Commercial Outlook forU.S. Small Modular Nuclear, January 2016. Small SMR units can also beaggregated, thereby spreading the cost burden, over several years.Being modular, SMRs are factory produced and delivered to aprepared site ready for installation; versatile, offering baseload forthe grid network and power to remote power grids or back-up for theincreasing supplies of intermittent renewables. Many SSA countrypower markets, especially in West Africa, are too small individually tosupport large scale utilities and grid networks but, by aggregatingdemand and sharing the investment burden, a medium sized SMRcould prove economic viable.

Obstacles to large-scale power solutionAffordability of nuclear and, for that matter, any large gas or coalpower project is a prime concern affecting governments and theirtreasuries and consumers who face big tariff increases. A case in pointis South Africa, where power prices would increase by 57 per centfrom 3.5-5.5c/kWh, reports EE Publishers March 2015, raisingwidespread concern at the news that the government has signedMemorandums of Understanding with China and Russia to provide9.6GW of nuclear power at a cost of US$100bn by 2030. This political

decision, has caused Amory Lovins at the American-based RockyMountain Institute, to express serious concerns over the economicviability of South Africa’s new nuclear drive, reports Engineering News,January 2016. Moreover, given the examples of Britain, France andFinland’s ongoing problems with nuclear power plant development,including finding sufficient capital the likelihood is, that South Africa’snuclear ambitions, will suffer from big cost and schedule overruns.

A further difficulty is the current unavailability of commercial SMRs,produced by established manufacturers such as Toshiba, China NuclearEngineering Corporation and Russia’s Rosatom. However, newmanufacturers are in the process of preparing designs for mini- nuclearreactors of 50MWs reports financial news channel, Bloomberg. At theend of 2016, America’s NuScale corporation plans to submit its 50MWreactor design for approval by US Nuclear Authorities. Assuming fouryears for approval and a construction time of 36 months, mini- nuclearreactors could be on the market by 2025, at considerably lower costand shorter time scale than current conventional nuclear power as wellas the mega coal fired generators typically found in Africa andespecially South Africa. Likewise, UK firms aim to build the world’s firstsmall modular nuclear reactor in the 2020s.

In reality, the consequences of the oil and commodities pricecollapse and competing power solutions, means that the opportunitiesfor SMRs and mini-nuclear reactors lie in the early to mid-2020s whencommercial designs are launched and when government treasuries arereplenished by the imposition of cost-reflective tariffs for allforthcoming power projects, including nuclear power. �

NuclearPoweR

36

Reviving interest withsmall reactorsenergy stakeholders are considering relatively simple units for generatingelectricity from nuclear power, and to process heat

African energy stakeholders are considering relatively simple units for generatingelectricity from nuclear power (Photo: Gui Jun Peng/Shutterstock)



PoweRNuclear


Global nuclear power generationenterprise Rosatom has been callingfor Sub-Saharan Africa’s diversification

away from fossil fuels. There has been a globalshift away from fossil fuels in recent years, andthis shift is often referred to as the ‘energyrevolution’. Ghana has set inspiring energytargets for 2020 in this regard and has showna tangible commitment to achieving theseobjectives.

According to Rosatom regional vice-president of Sub-Saharan Africa, ViktorPolikarpov, the integration of nuclear powerinto Sub-Saharan African economies such asGhana would serve as a key driver of socialeconomic development, while at the sametime lowering the regions CO² emissionsdrastically. Sub-Saharan Africa is expected togrow in excess of five per cent in 2016, drivingurbanisation and increasing long-term energydemands. In order to maintain let aloneincrease this economic growth potential, it is

clear that the region needs to increase itspower generation capacity tenfold.

“It is projected that sub-Saharan Africa willconsume nearly 1,600 terawatt hours by 2040,four times what was used in 2010, this if it is toachieve electrification levels of around 70–80per cent. By 2040, sub-Saharan Africa willconsume as much electricity as India andLatin America did combined in 2010,” saidPolikarpov.

The importance of balanceA balanced energy mix is of great importancein any region, as not one technology alonecan provide the complete solution.Renewables most definitely have their place inthe region's energy mix but are unfortunatelynot able to provide base load power.

“Base load power is often referred to as theessential minimum amount of power neededby the grid to effectively run society. Base loadis required 24 hours a day, 365 days a year to

run heavy industry. Disruptions in theseoperations cause major delays, damageequipment, put lives at risk and ultimatelycost economies billions,” said Polikarpov.

“In my mind the most obvious optionwould be nuclear power. It is one the cleanestsources today, emitting no greenhousegasses. It is statistically the safest form ofenergy available on the planet and finally it isvery cost effective, especially whenconsidered as a long-term investment. It isimportant to take into account that nuclearhas an operational lifespan over 60 years,twice that of coal and three times that ofrenewables,” said Polikarpov.

A number of African nations includingNigeria, Kenya and South Africa haveexpressed great interest in developing nuclearpower. Ghana recently revealed plans toexplore a nuclear power programme, as itstrives to become a major net exporter ofenergy in the West African sub-region. �

Atoms for electrification


http://www.inmesol.com/

In many African countries, consistent anduninterrupted grid electricity is a luxury.More often, brown outs and black outs are

typical and businesses and domestic usersfind themselves having to plan their daysaround off-peak supplies and peak-time cuts.There are many reasons behind such fragilepower infrastructure and services, which varyfrom country to country. In the case of SA,(whose state power utility, Eskom, has notbeen out of the news for a very long time forall the wrong reasons), generators are amainstay for many. Rolling blackouts / loadshedding has been the order of the day inrecent times. An underfunded and wearyEskom, though with a new man at the helmin the form of Brian Molefe, is now trying toget itself back on track after years of allegedmismanagement, incompetence and neglect,at company as well as state level. A lack ofpolitical direction on energy policies hasplayed its part in leading, what was once seenas the world’s best-run power utility, downthe tragic road it’s now on.

However, not to become sidetracked fromthe subject at hand, the point in mentioningEskom is twofold: firstly, such unreliable gridsupplies mean generators of all shapes andsizes continue to play a massive role inkeeping Africa’s largest economy poweredand, secondly, just like Eskom, if neglected, astandalone generator just won’t workproperly. That’s why making sure a propermaintenance regime is in place for anybusiness or domestic-use generator is crucial.

Maintenance no matter what the generatorWhether it’s a 3kW Stramm petrol generator,or a Ryobi 5.5kW, or the full range of Kiporhome-use generators of which there are justtoo many to mention and all widely used inSA, all are suited to run a full gamut ofhousehold appliances and electrics. They do,however, need regular servicing to ensurethey’re ready when the lights go out anddomestic householders, no matter how

adept at DIY they are, need to followservicing instructions and even considerservice plan options, just like business usersnormally do.

When it comes to businesses, back-up orstandby office generators are often the norm,with the former used by those who typicallyrequire a generator to run for about six hoursto fill the gap when grid load shedding occursat set times. Standby systems on the otherhand are typically employed to providepower on a 24/7 basis and can rununinterrupted for days or weeks.

All of the above need servicing, regularly.To keep them running reliably, no matterwhat make or model, size or output,investment in regular, quality maintenance isessential and, according to some industrypundits, most important when it comes tousing diesel generators. Irregular servicingcan lead to lubricant and fuel problems andsimply by running a generator for half anhour a week such issues can be avoided andwill ensure the unit copes when it comes tothe surges, spikes and high voltages theyface. Regular periods of ‘maintenanceoperation’ will keep lubricants and fuelflowing and prevent any build-up ofcontaminants or oxidation from taking hold.

In the case of the business user, keepingan eye on something as peripheral as a

standby or back-up generator when it’s notyour core business, can lead to neglect.That’s why taking out a service contract witha specialist company is key, particularly withdiesel systems.

Players like Bundu Power, FG Wilson SA,Tide Power, Absolute Power and many othersoffer service and maintenance contracts thattake the responsibility for keeping a systemrunning off the shoulders of the busy enduser. They typically use genuine parts andcomponents to maximise the productive lifeof a generator set and they’ll know how bestto get the most efficient operation and fuelconsumption out of the unit. A specialistservice contract can provide 24/7 support ifneeded in an emergency, or just regular fuelmanagement and service visits. It makesbusiness continuity sense.

For the domestic user of smallerequipment, the ‘from-time-to-time’ check-upwith a qualified technician makes sense, asdoes adhering closely to the maintenancerequirements set out in any documentation.

Hopefully, with everyone on the samemaintenance and servicing page, Eskom’snext load shedding event (none scheduled attime of writing) will hardly be significant inthe great scheme of things. �

Tim Guest

GeneratorsPoweR

38

Maintaining power forcontrolled supply ensuring essential electricity supply to serve everything from basic to evencritical electricity needs, by keeping petrol and diesel generators running

Companies like FG Wilson SA offer solutions totake the responsibility for keeping a system

running off the shoulders of the busy end user



S08 ATR March 2016 - Manufacturing_Layout 1 18/02/2016 16:52


While difficulties in the globalmarket have caused manyproblems for the manufacturing

industry, in France, SDMO has been buckingthe trend. Work at its busy manufacturingplants, complete with a bustling workforceand huge warehousing facilities, continuesapace as the company continues to diversifyits range and take advantage of its heavyinvestment in R&D.

The company is helping industryprofessionals in Africa who are looking forefficient and effective power solutions. Witha presence that spans the continent, exportdirector Patrick Le Guen says that despite theAfrican genset market remaining relativelystatic over the past four years, the falling ofoil price, which has severely affectedcountries such as Nigeria, Angola and

Algeria, the company is continuing to investin these countries.

“We believe there will be a recovery inthese promising countries in the mediumterm,” says Le Guen.

“One of the advantages of working inAfrica is that there are a lot of countries, sowhen you have some markets that are fallingsomewhat, there are always some that areimproving and balancing it out,” he adds.

“We are currently doing very well in Africa,especially in the south. We’ve made a lot ofimprovements in the southern and easternparts of Africa where we were previously alittle bit weaker when compared to the WestAfrica where we have been present for along time.”

In 2014, the company set up a branch inKenya, and from this facility in Nairobi it is

able to work closely with customersthroughout East Africa. Le Guen says that thecompany is now in “quite a good position” inKenya, while from its base in Nairobi itcontinues to strengthen its presence inneighbouring Uganda and Tanzania.

With a sales office in Egypt, the company’spresence in the north of the continent andinto the Middle East has also beenstrengthened through the introduction of anew sales office and the expansion of itsstorage facility in Dubai.

Distribution support Along with its diverse range of gensetproducts, the company’s strength lies in itsdistribution networks, which have helped itbecome the third largest manufacturer ofgenerator sets worldwide.

GensetsFEATURE

40

Providing power to projectsIn 2015, French genset manufacturer SDMO hosted a series of sales meetings with representatives from the regions in which the companysells its products. Export director Patrick Le Guen discusses the aims ofthose meetings and the company’s future plans.



Despite its successes in marketsthroughout Africa and the Middle East, andin its ability to manufacture its products atworld-class facilities in Brest, France, exportdirector Le Guen points out that “business isdone out in the field, not in Brest”.

“For the time being, we have quite goodnumbers, in spite of the issues with theglobal oil price,” he remarks. “The market isreally very different in Africa and in theMiddle East. In the Middle East the market isdriven by projects, because there are largeprojects in countries such as Saudi Arabia,Kuwait, Qatar and the UAE. Your figures canbe really impacted depending on howsuccessful you are at supplying largeprojects. In Africa it is very different as thereare fewer large projects, with the mainmarket there concentrated in the 10-1,000kVA range.”

By inviting a group of distributors fromacross Africa to the see first hand thecompany’s operations in Brest, SDMO wasable to educate its customers and enhanceits service to countries throughout theregion. The meeting, which took place lastyear, was part of a series of regionally-focused meetings that brought togetherlocal distributors of the company’s products.

“I think we have a good distribution baseand we are present in countries throughoutEurope, the Middle East, Africa and LatinAmerica,” says Le Guen. “Our challenge now isto make our distributors better and thismeans convincing them to put service first,because it is really important. It’s impossibleto be successful on a long-term basis if youdo not deliver a good service to the customer– especially as SDMO is a premium brand.”

Le Guensuggests that the companystrongly encourages all of its distributors tobe perfectly trained in its products – aservice it offers at its facilities in Brest orlocally on the ground.

“For training we have people in Brestdedicated to service, but for each area wehave a service manager. It is theirresponsibility to visit all our of distributors,train them, check they have the spare parts,set the new warranty claims and provideinformation about the products,” he says.

Market focusWith the oil price affecting various industriesin Africa, Le Guen says that there are certainmarkets the company plans to target moreaggressively in order to maintain its strongstanding within the genset industry.

“Currently, the market for oil and gas is notso great, but of course it still exists and is atarget for us,” he notes.

“For the time being, however, SDMO is notso strong in that market as it is in perhapsthe construction or energy markets, but wehave received some good orders over thepast two years, and we want to take thebenefit from that and establish a largerpresence in the oil and gas sector.”

Designed with potentially hazardousindustries in mind, the company hasdeveloped specific generator sets, which LeGuen describes as being “very special modelsfor the oil and gas sector”.

“Each genset must be able to operate inwhat is classified as zone 2 under the ATEXdirective, which covers potentially explosivelocations, so the gensets in the range havebeen equipped with all type of features thatprotect them,” he notes.

As it has in recent years, SDMO will onceagain have a strong presence at Middle EastElectricity in Dubai this March. Last year thecompany’s stand featured a range of powerproducts, including rental and portablegensets. The main attraction was the a 1400generator set from its Power Products >700kVA range, and a model more than capable of

working in extreme conditions – perfect forusage in the arid Middle East and similarclimatic conditions throughout the Africancontinent. The machine is, according toSDMO, more cost-effective due to its lowerconsumption and the longer intervalsrequired between maintenance. Along withits impressive load impact recovery, thegenerator set does not require any deratingup to use at 40°C.

Portable and compact products havehelped SDMO grow its rental businessthroughout Africa and the Middle East. Onthe sidelines of the International RentalExhibition in Amsterdam in 2014, theEuropean Rental Association, whichrepresents 4,300 European rental companiesacross the continent, presented SDMO withan award for its Rental Compact range, withthe shock resistance qualities of the gensetsleading to recommendations for constructionsites in extremely difficult conditions. Thequality of its products, says Le Guen, hasreally helped the company in the rentalmarket, where it is trusted to supply well-maintained products.

“We have an office in Johannesburg fromwhere we look after the South African marketand the surrounding countries, includingLesotho, Mozambique, Zimbabwe, andZambia,” he says. “Our sales improved a lot in2015 throughout that whole region and wehave established new distributors, offeringmore support and aiding the excellent job ofour South African distributor.”

With a strong distribution base in place, thecompany has no plans to invest further in thisnetwork, but does plan to improve itsdistribution through training and ensuringthe correct business segments are covered.

“Sometimes we have distributors that arevery good in construction and mining, but itis possible they are not experts in otherindustrial sectors,” says Le Guen. “We want tohave better segmentation across our businessand to be more present in all of them.” �

FEATUREGenset

41

The X1400C, which SDMO promoted on its standat last year’s Middle East Electricity in Dubai.


SDMO manufactures its products atworld-class facilities in Brest, France.


The Ghana government must, of necessity, begin offering massivesupport in a variety of ways to the local furniture manufacturingindustry if it wants the country to be credited with production of

quality furniture by global market players.The Ghana furniture manufacturing industry has been undergoing

serious financial and capacity challenges as well as increasing importsfrom China, Europe and America over the years, which are rapidlyforcing it towards the brink of collapse.

How can local furniture companies be subjected to exorbitantlending rates ranging between 27 and 40 per cent while their foreigncounterparts enjoy low interest financial facilities? Such a situationautomatically makes the products of the local manufacturersuncompetitive and gradually pushes them out of business.

According to statistics from the Ghana Revenue Authority (GRA),importation of furniture increased US$18.47mn, US$30.1mn,US$42.29mn and US$45.3mn in 2011, 2012, 2013 and 2014respectively. But such is a trend — more has to do with lack of capacityto deliver. According to majority leader in Ghana’s Parliament, AlbanBagbin, furniture and other fittings for the Job 600 office complex forMembers of Parliament were procured from China because no localcompany could have met the demand. In April 2015, Parliament andJudicial Service found it necessary to import furniture amounting toover US$20mn to the neglect of local manufacturers.

Industry players are attributing the influx of foreign furniture on thelocal Ghanaian market and unfair trade to agreement reached betweenthe European Union (EU) and Ghana government. And this is where thegovernment is duty bound to explore new areas by way of initiatingdevelopment — oriented policies to bring relief to operators andstakeholders in the industry to enable them to compete favourablywith foreign firms in Ghana.

Among the policies, there must be continuous intensive trainingprogrammes to expose operators in the furniture manufacturingindustry to current technologies needed in order to produceornamental and durable furniture to meet international standards. Thisis very critical. The Ghanaian government can assist industry players toovercome their financial challenges but if they lack the vital pre-requisites of education and skills in such a technologically-basedindustry, the whole idea of revamping the industry will be an exercisein futility.

As indicated by Kwasi Awuah Agyeman, president of Furniture andWood Products Association of Ghana (FAWAG), “We can’t continue toremain inferior to other economies. If there is a time for us to show howGhanaian we are, then it is now or never. We are not suggestingpatriotism by patronising inferior or low quality products.

“With the right direction and investment from our leaders, we canequally produce high quality products and elevate our products tomatch or outdo the competition.”

It is, however, gratifying to note that the government is workingtowards reviewing the existing Procurement Act of Ghana to make itmandatory for all state agencies, ministries, departments, and majorcompanies operating in Ghana to use a greater quantity of locally-

based manufactured goods and services in their daily businessactivities.

Indeed, when such a law comes into effect in a not too distant future,it will help in reducing Ghana’s foreign exchange deficit as far asimported goods are concerned.

So far, investigations reveal that, from 2011 up to now, China topsthe ladder with regard to furniture importation, about half of theoverall imports, with USA, Europe, Asia, South America and the MiddleEast following in that order.

Justifiably, the FAWAG president says, “As a country, we are creatingan army of jobless youth; helping to collapse our industries andmanufacturing companies; depreciating our local currency and aboveall shrinking our economy, with the result of absolute poverty,hopelessness and miserable lives for our people.”

Cognizant of its continuous strides in ‘Made In Ghana Campaign’, thegovernment has announced that pretty soon, there will be a nationalstakeholder conference on the wood furniture industry for the solepurpose of making the sector vibrant, capable of creating jobopportunities to ensure economic growth. The government will beexecuting such a responsibility through the Ministry of Trade andIndustry. There will be a three-year action plan and it is expected that,the furniture manufacturing industry shall employ at least 15 per centto 20 per cent.

There are few furniture manufacturing companies who are doingwell on the Ghanaian market and Agorwu Furniture is an example. Thecompany uses local materials to produce high quality furniturecomparable to, or even better than some of imported ones.

According to Diabo Samuel, CEO of Agorwu Furniture, “AgorwuFurniture produces high quality range of furniture using our own wellseasoned tropical wood that competes with imported furniture fromcountries such as Italy, UK, Spain, USA, etc. Our locally manufacturedmirror-like and matchless furniture is up to four times the strength ofimported ones.”

With regard to decorative iron furniture being sold on the localGhanaian market, they are all imported items. �

— By Emmanuel Yartey

FurnitureMAnUFAcTURInG

42

Push for ‘Made in Ghana’The furniture industry needs an overhaul for revival of locally-producedgoods and the economy to benefit

There are few furniture manufacturing companieswho are doing well on the Ghanaian market



Serving the world of business

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S09 Fixed_Layout 1 19/02/2016 12:52

Perkins Original equipment manufacturer’s (OEM’s)are seeking to expand out of Europe asthere is not growth in the continent forthem to get the growth that they want andthere is growth in other places – SouthAmerica, the Middle East and Africa andChina and India equally, according to OliverLythgoe, product concept marketing.

“We need to give our OEM’s engines thatcan be easily adapted across all territoriesincluding Africa. The OEM’s don’t want tohave two different machine designs its justtoo expensive for them, the R&D cost willbe too high,” said Lythgoe.

“We have a parts service commitment, sowe keep parts available for our engines –even many years after they have finishedproduction. It keeps its value – the enginewill have a long lifespan.”

Perkins told African Review that it will belaunching its own oil at the forthcomingMiddle East Electricity taking place inMarch, as well as at this year’s bauma show.

Lythgoe said the firm will be launching,“A specially formulated off highway oil -automotive oils are not good enough foroff highway machines,” adding “engines get used much harder and have a muchlonger life”.

SDLGLaunching three new products for bauma,SDLG is expanding its range of machinery –especially backhoe loaders, while its gradershave also been very popular in Africancountries. SDLG told African Review it has soldits excavators in a couple of Africancountries too. The L948 four tonne wheelloader, a new five tonne wheel loader calledlg959f and a small crawler excavator calledE635f is also part of the new range.

Thorsten Poszwa, global director externalcommunications, said, “We are displaying our

other products such as graders, backhoelaoders, rollers and excavators at the show.SDLG is known for its wheel loaders and whatwe are doing now with our African dealers isexpanding the range of products so its notonly wheel loaders.”

“We serve them in Morocco and SouthAfrica. Last year we went in with a new dealerin Algeria, so we hope that there is no importrestrictions in Algeria. We hope that willloosen up this year and then we havecountries such as South Africa, Ghana, Kenyathat have been promising. “

Caterpillar A key message the firm wants to send acrossat bauma is the role technology play’s in itsmachines to improve efficiency forcustomers and to make it easier for theoperator, which it highlights is importantwhen you have operators who might not bevery skilled, according to Francine Shore,trade press relations EAME. Shore told AfricanReview, “If you’ve got functions that are semi-operated it makes it easier and safer in manycases. Customers can also save money, savefuel, save time so its really important.

“Fuel will also be a big topic at bauma – forexample although the fuel may be cheap forone excavator over a year it will bethousands and thousands of dollars. So if youcan save fuel it will have a real impact on thefleet of machines,” added Shore.

Volvo CEVolvo believes it is key for the company tokeep investing, keep innovating andresponding to customer demands. SE10partner Brian O'Sullivan told African Reviewthat customers are looking for lowest costper tonne and low cost ownership, whichgives Volvo a part to play in providing highquality machines that will not break down.

“Lifetime relationships with the customer -customer support agreements are becomingmore valued by the customers and they arecertainly more valued by Volvo. It means thatyou have this ongoing relationship. Themachines are prepared and maintained tomanufacturer specifications so the customeris happy. Their machine uptime is maximised,also its good for Volvo at the end of theprocess when the machine needs to be soldas their residual values are higher. “ �

baumaConsTRuC-

44

bauma - the world’sbiggest trade showThe world’s biggest trade show, bauma 2016 is round the corner, with ex-hibitors at the ready to showcase their new products and services for theconstruction market

bauma 2013 saw535,065 visitors frommore than 200 countries


S09 Fixed_Layout 1 19/02/2016 12:52

S09 Fixed_Layout 1 19/02/2016 12:52

http://www.caterpillar.com/

Bobcat has launched a new standardthree-year warranty for the completerange of Bobcat rigid telehandlers

manufactured at the company’s plant atPontchâteau in Loire Atlantique in France.

Available as standard in Europe, MiddleEast and Africa on all the models in theBobcat telehandler range from the T2250 5 mtelehandler to the top-of-the-range T4018018 m model, the new warranty reflects thehigh quality and reliability of the productsmanufactured in Pontchâteau, according tothe manufacturer.

The new three-year warrantydemonstrates Bobcat’s commitment to themarket as a whole and is complemented by arange of warranty extension programmesfrom Bobcat. The new warranty will alsoenhance customer confidence and increaseresale values for Bobcat telehandlers.

The Pontchâteau plant produces all ofBobcat’s rigid telehandlers with the design,development, production and salesorganisations all based at the plant.Currently, the Pontchâteau site produces 14different Bobcat telehandler models, withlifting heights from five metres to 18 metres.

Aimed at applications in the construction,rental and recycling industries, over the lastfour years, a new generation of Bobcatmachines has been introduced, including —

� TL series (Telescopic Loader) TL358,TL358+, TL360, TL470 and TL470HF, 5.8 to 7metres two stage boom models aimed atintensive applications.

� T Series (Telescopic) T35105, T35105L andT36120SL 10-12 metres middle lift models;T35130S, T35130SL, T35140S and T4014013-14 metres high lift models and top-of-

the-range T40180 18 metres telehandler. At Pontchâteau, Bobcat ensures the

company delivers products of the highestquality through the selection of leading andproven suppliers, integrated design,reliability/endurance testing and themanufacturing process in which 100 per centof all production units are individuallycontrolled and quality approved.

Bobcat, founded in 1947, designs,manufactures, and supplies compactequipment for the global construction,landscaping, agriculture, industrial, mining,rental, ground maintenance, and utilitymarkets.

Bobcat offers products such as loaders,including skid-steer and compact trackloaders; and compact excavators, utilityvehicles, utility work machines, andtelehandlers. �

Doosan infracorepRofile

46

new three-year warrantyfor Bobcat telehandlersA new warranty aims to boost customer confidence and increase the resale value for telehandlers

Bobcat TL470


S09 Fixed_Layout 1 19/02/2016 12:52

The latest engine technology andintelligent power control make thesemodels true trendsetters in efficiency

and eco-friendliness. The Ecomode functionhas been shown to reduce fuel consumptionby up to 30%, whilst delivering the samecompaction performance. The optionalEcostop function not only saves on fuel, butalso reduces engine wear. These intelligentfuel-saving features pay for themselves withlower operating costs. In addition theyincrease potential resale values, becausethese rollers are in use for fewer actualoperating hours. Thanks to the latestgeneration engines, pollutant emissions have

been dramatically cut. This is due to thehighly efficient engine design giving withlower fuel consumption, plus the optimisedexhaust after-treatment.

Compaction at the turn of a switchModels BW 213, 219 and 226 featureVariocontrol (BVC), the well-knowncompaction system from BOMAG withautomatic compaction control. A clever, newoperating concept makes it even easier forthe operator to make full use of Variocontrol:just one rotary switch integrated into the armof the seat is needed for all settings. Inmanual mode, the operator chooses the

required amplitude; in automatic mode, hecan specify EVIB values and Variocontrol takesover control of the amplitude. Thanks to theclear icons on the control panel, the operatorsees immediately whether he is in manual orautomatic compaction mode, and provides aclear indication when maximum compactionhas been reached.

Variocontrol automatically ensures thatenergy is constantly transmitted at theoptimum level and that the operator has hiswork fully under control. This prevents over-compaction and minimises the number ofpasses required, which in turn increasesproductivity and the quality of compactionperformance.

Everything in sight and under controlEase of operation and working ergonomicswere given special attention by the engineersat BOMAG during development of these newgeneration models. The dashboard features anclearer and more user friendly design. Thecompact steering wheel and the steeringcolumn with individual adjustment provide aperfect view of the drum. The operator's cab isgenerously proportioned with large windows.This means the operator always sees what isgoing on around the machine, which in turnensures significantly higher levels of safety.

A new loading function on the speedswitch is particularly practical, makingloading of the roller even safer and easier.

A special highlight of the high gradeabilityDN versions is their pump system, whichincorporates two pumps supplying twoengines. This makes the machines far morestable in operation on steep slopes. Theexcellent gradeability of over 60% isconstantly attainable when moving forwardsand backwards.

Long servicing intervals, excellent access tomaintenance points, and many maintenance-free components ensure high availability ofthe machine whilst at the same time keepingthe costs down. �

ConsTRuCTionCompaction

47www.africanreview.com

Bomag's superiorsingle drum rollersConstruction equipment earthworks portfolio is enhanced with increasedefficiency, eco-friendliness and ease of operation

The Variocontrolcompaction system can befully adjusted using just onerotary switch integrated inthe arm of the seat

Future-proof engine technology: Ecomode andEcostop make these new generation BOMAG11 to 26 t single drum rollers trendsetters inenergy efficiency and cost-effectiveness

Featuring dual pump drives, the newsingle drum rollers effortlessly handle

gradients of up to 60% in bothforward and backward directions


S09 Fixed_Layout 1 19/02/2016 12:52

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

Flooring refers to installing or applying materials on a rough,uneven surface that ensure a floor is completely covered,allowing one to walk without any inconvenience.

There are different kinds of flooring options, and seamless flooringis used widely as it provides good grip, especially indoors.

Seamless flooring installations offer several other advantages and asa result are considered the best solution when it comes to reducingvolumes of concrete and facilitating speed of construction.

According to Nic de Carvalho from CLF, seamless flooring systemsenable contractors to pour significantly larger areas per say than whenusing traditional methods. Other significant advantages includeenhanced construction safety, shorter project completion turnaroundand no saw cuts or joint curling.

The need to complete projects more quickly and to curtail costs hasseen an increase in the demand for seamless flooring installations. Itscommon for contractors to be able to pour between 2,000 sqm and3,000 sqm, while installing a seamless flooring system, and this is a majordifference to the maximum of around 500 that can be poured usingtraditional flooring construction methods. “It enables contractors tosignificantly accelerate their construction programmes,” de Carvalho says.

CLF, an AfriSam Group company, recently successfully completedthe installation of a seamless floor for a large warehouse being built inKrugersdorp, Gauteng. The 130 mm thick seamless concrete floor wasinstalled at the Watch Tower Warehouse. The large facility has anexpansive floor space of 16 000 sqm, which made this technology anideal solution due to the project size and scope.

CLF uses a very tough composite material made from specialconcrete, a high saturation of high tensile steel fibres and anti-shrinkage compounds underpinned by total quality managementsystems to produce the thinnest, toughest and largest seamless floorsin the country. The lack of joints meansfloors are flatter and thisfacilitates faster movement of forklift traffic.

“These features of the seamless flooring system make it a naturalchoice for industrial and commercial applications such as warehousesand distribution centres,” de Carvalho said.

The patented Primekss system was developed in Europe underfunding by the European Union Technology Grant and to date has beensuccessfully used by some of the largest logistics companies in the world.“On a local front we have undertaken work for some of South Africa’slargest industrial facilities such as the 90 000 sqm Unilever Distributioncentre in Boksburg and an 11,000 sqm post tensioned seamless floor forBMW’s manufacturing plant in Rosslyn,” added Carvalho.

CLF has been a leading industrial flooring contractor in southernAfrica since 1998. The company specialises in the design andinstallation of seamless concrete flooring for industrial andcommercial applications and offers turnkey solutions.

Fact Box about AfriSamAfriSam is unlocking value for its customers by partnering withinnovative companies that specialise in the application of its productsand services. Through its partnership with Concrete Laser Flooring(CLF), AfriSam is pioneering some of the latest trends anddevelopments in concrete technology in the South Africanconstruction industry.

“Our partnership with CLF is in line with our vertical integration andbrand extension strategy. It positions AfriSam as an integratedconcrete solutions company. We do not only supply cement andconcrete, but offer a total solutions approach to our customers’ variedneeds. We are always on the lookout for new solutions, innovationsand opportunities to bring to the attention of customers, as well asadvancing the knowledge and skills base of the industry itself throughour active participation in The Concrete Institute (TCI),” says RichardTomes, sales and marketing executive at AfriSam. �

“AfriSam is a total solutions provider for its customers. The partnership withCLF is a perfect example of this, driving both the demand for and applicationof concrete and promoting the latest advances and technologies.”

Flooring conStruction

Better flooring, quicker turnaround Seamless flooring is increasingly being viewed as a cost-friendly option for several contractors

The most significant advantages of seamless flooring systems arethat contractors can pour significantly larger areas a day

S10 ATR March 2016_Layout 1 19/02/2016 10:07

conStructionconcrete

49

consistency in changingenvironmentsWhy many regard manufactured sands as the fu-ture of Africa’s construction industry

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

Depleting water and sand resources onthe African continent, combined withstricter aggregate specifications and

multiplying bans of river sand mining in somecountries, such as Kenya (in 2014 MachakosCounty assembly banned sand harvesting onriver beds) present a fresh opportunity toexplore water-saving sand and aggregateswashing as a profitable alternative to riversand mining.

Whilst countries such as South Africa,Namibia and Zambia have already embraced– to a degree - the switch to moreenvironmentally-friendly, higher-profit sandand aggregates washing systems, others arestill resisting what has now become a globaltrend. Quality manufactured sands made ofwashed aggregates are fast becoming thealternative of choice to natural sand.

CDE Global specialises in manufacturedsands and its presence in Africa has grownsteadily in the past years. With experts froman engineering background based in SouthAfrica and travelling across Sub-Saharancountries, CDE Global is able to understand,and crucially respond, to changing industrial,economic and geographic environments aswell as clients’ needs. The recently installed

CDE washing Combo X70 in a Tanzanianquarry, the most advanced plant of its kind inEast Africa has proven a hit with its ownerwho has been able to optimise productionand financial outputs through consistencyinsand quality, and therefore developing anedge over its competitors.”

Engineering qualityWayne Warren, business developmentmanager for CDE Global in Sub-SaharanAfrica, said, “Africa is mineral-rich and a widerange of rock types can be used for crushing,including dolerite, granite and dolomiteamongst others. However, crushing alonemore than often cannot produce amanufactured or ‘engineered’ sand ofsufficient quality.

“Sand and aggregates washing using areliable, water-recycling combinedinstallation, such as the CDE X70, optimisesreturn on investment and quality outputs bymaintaining consistency and increasesproductivity, delivering ready to use concreteand/or plastering sand at the correctmoisture level, within the client’s time andquality requirements.

“With a water recycling rate of 90 per cent,

the CDE AquaCycle technology adds greatreturn-on-investment value to any installationthat requires high levels of water recovery.

“CDE wet and dry washing solutions alsohave the advantage of being highly flexible tomeet any requirements customers may have,wherever their operations are based. Forinstance, in areas affected by extremedrought conditions, where there may not beenough water to run an EvoWash, CDE alsooffers a range of dry-washing options in theform of revolutionary Sirocco Air Classifiersthat use air in place of water to producedhigh quality sands in the most challengingenvironments.” �

Quality manufactured sands made of washed aggregatesare fast becoming the alternative of choice to natural sand

frenchsa


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

From the advances in stonemasonry thatled to the building of the Parthenon inAthens, right through to the latest green

building trends, the building industry hasbeen at the forefront of innovationthroughout human history. Today, virtualdesign and construction (VDC) technology isthe latest innovation to transform majorbuilding projects; from conceptualisation,through every phase of design andconstruction, to facilities management.

By breaking down previouscommunication barriers between design,engineering and construction, VDCtechnology enables a team to move from alegacy 2D workflow into a virtual reality. Aplatform where an information rich virtual 3Dmodel of the project can be experienced byeveryone involved - and before ground iseven broken.

A paradigm shiftLike the historical transition from handdrawings to computer-aided drawing (CAD)in the 80s and 90s, the architecture,engineering and construction (AEC) sector iscurrently undergoing a major transition in theway in which projects are engineered andconstructed. The advent of VDC and buildinginformation modelling (BIM) has created aparadigm shift. We now find ourselves in anexciting era where the full design intent canbe conceptualised, designed, analysed,visualised and coordinated across projectteams in a virtual 3D environment. The latestBIM/VDC advancements have moved projectdata to the cloud, enabling dispersed teamsto access centralised live model data from any

location and device, whilst being able to carryout design coordination across disciplines.

Pushing the boundaries of designDesign technology advancements havedramatically shifted the limits on the size ofbuilding projects that design teams cangenerate models for at any one time. Forinstance, it is now possible to generate virtualmodels of entire cities, up to 100km2 andover 100,000 buildings. These city size modelscan include high fidelity 3D terrain modelswith aerial photography, roads, railways,bridges, services, structures, buildings andlandmarks – whether existing or new - for theproposed development zone. Imagine beingable to see a full 3D rendering of an entire citybefore that city exists.

What’s more, these models can now bedeveloped so much faster. What used to be ahighly technical and laborious task hasacquired a large component of automation,making it possible to take on larger projectswith more demanding project time frames?City size models can now be developed in afraction of the time and, this new designtechnology has opened the doorway tocontext based design. Engineers can rapidlydesign and analyse their proposed solutionsin a virtual realm, which provides a detailedand extensive representation of the realworld application.

Printing a model to lifeWhile the technological advancements in 3Ddesign and visualisation are in themselves afantastic aid for the AEC sector, often adeveloper or client still prefers to see (and

ProjectsconStruction

50 African review of Business and technology - March 2016

VDc improvesbuildingmanagementWSP | Parsons Brinckerhoff Africa helps buildersto create new business models with advanceddesign and construction techniques



http://www.pmsa.com/

feel) a physical model. Historically thesephysical models were painstakingly built byhand, and due to the amount of effortinvolved, did not lend themselves toaccommodating design revisions.

The advent of 3D printing has enableddesign teams to rapidly create physical scaledrepresentations of their virtual design model,with ease and precision. 3D printing alsoallows the physical generation of morecomplex, highly detailed scale models ofdesign components that are time consumingand often impossible to manufacture by hand.

The speed of 3D printing, especially whenusing a modular or segmented approach,means that physical models can be created at

an early stage of the project lifecycle. Thephysical model can keep evolving as theproject moves from conceptual through todetail design, leading to significant time andcost savings for the project team, particularlywhere there are last minute changes to thescope of the project.

Taking 3D modelling to an immersiveexperience3D and related technology is advancing at arate of knots, and it is already possible to allowa client to experience their project in a virtualreality space. For instance, project designteams on the cutting edge of this innovationare able to link Oculus Rift VR headsets to

VDC/BIM software, enabling the client to walkthrough and look around their new buildinglong before construction begins, in animmersive 3D stereoscopic environment.

If we consider the emerging capabilities of3D display technologies, VR headsets andeven 4D immersive holographic spaces (thatjoin multi-view and multimedia-rich spaces),coupled with augmented reality andgamification, showing off the design conceptsof a building project could become acomplete immersive experience for everyoneinvolved. �

Douglas Ackerman, regional director and headof VDC/BIM, WSP | Parsons Brinckerhoff Africa

conStructionProjects

51African review of Business and technology - March 2016

The PANAFRICAN GROUP has entered an agreement with Vacuworx for the distribution of its line of lifting products for Sub-Saharan Africa.

For more than 15 years Vacuworx has been engineering and manufacturing the highest quality heavy-duty lifting equipment for the oil, gas, water, sewer, utility, and road construction industries.

Vacuworx vision is to create the safest, most ef�cient work environment for those who handle heavy-duty pipe, plate, slab, HDD drill stem, and concrete road barriers.

By leveraging the latest vacuum innovations with proven engineering practices, Vacuworx Lifting Systems provide the power, precision, and ef�ciency to move heavy materials ten times faster than conventional methods.

For more information contact : Tel : +971 4 212 4750 | [email protected] | www.panafricangroup.com

GHANA KENYA LIBERIA NIGERIA SIERRA LEONE TANZANIA UGANDA

*Wirtgen Group products available in Kenya, Tanzania and Uganda. For all other territories, please contact your localPanafrican of!ce for further information.


The top 100 global architects have rankedWSP | Parsons Brinckerhoff as best servicesengineer for the second year running in theannual supplement, World Architecture 100(WA 100).

The WA 100 list is the annual survey of theworld’s largest architecture practices, whichalso includes architects’ verdicts on theirfavourite professional partners including

services and structural engineers,contractors, cost consultants and projectmanagers.

WSP | Parsons Brinckerhoff also continuesto be highly rated in the structural engineerscategory, repeating the 2015 achievementof second place.

An award was also handed to IsabelleAdjahi, who was named best investor

relations officer (mid-cap). "It is an honour tobe recognized by analysts and investors forour excellence in investor relations. In linewith our company values, our IR activitiesare based on transparency andresponsiveness with the aim of supportingthe appropriate valuation of the company,thus supporting long-term growth," said MsAdjahi.

Architects rank WSP | Parsons Brinckerhoff as best partner


http://www.panafricangroup.com/

What is it about WAMPEX that keepsattracting over 100 global industrialcompanies, investors and thousands

of visitors every two years? Why do governments,NGOs, trade associations and powerful privatesector organisations flock to the West AfricanMining and Power Exhibition in Accra, Ghana,every second year without fail?

There are many reasons – the mostimportant is that WAMPEX is the biggestnetworking platform for showcasing productsand services directly to the power and miningsector companies that operate throughoutWest Africa. Last year, WAMPEX hosted animpressive 140 exhibitors from 16 countries,and next year’s event is bound to grow evenbigger. WAMPEX 2016 takes place from 1 to 3June 2016 at the Accra InternationalConference Centre in Accra, Ghana.

Expanding opportunities across West Africa“West Africa is still one of the biggest andfastest-growing industrial, mining and powergeneration markets in the world,” said JohnThomson of Exhibition Management Services,organisers of WAMPEX. “The region hasmassive gold, copper and iron ore depositsand hundreds of mining projects underway atany given time, all with heavy electricitydemands. The Toronto Stock Exchange currentlylists about 150 mining projects in the area.”

Regional governments, private sectorcompanies, investors and entrepreneurs useWAMPEX as a platform to broaden businesslinks, expand supplier and customer networksand access the ever-growing opportunities inWest African countries.

“WAMPEX enables all stakeholders todevelop and strengthen relationships, stay up-to-date with the latest products, services andtechnologies – and sign deals! Thisextraordinary expo has a successful 22-yearhistory of delivering results,” added Thomson.

Maintaining strong partnerships“WAMPEX is certainly the largest and mosteffective business platform available for themining and power sectors in the sub region,”said Sivnesh Kuma, general manager ofInterplast Ghana, which has exhibited at every

WAMPEX for over a decade. “In addition, thecollaboration between WAMPEX and theGhana Chamber of Mines gives exhibitors suchas Interplast the advantage of direct contactwith specific mining projects and theprofessionals involved.”

The Ghana Chamber of Mines is one ofseveral organisations that actively endorse andsupport WAMPEX. Ghana’s Ministry of Energy,Ministry of Lands and Natural Resources, theMinerals Commission of Ghana, the Volta RiverAuthority and the Electricity Company ofGhana are also active endorsers of WAMPEX.

Innovative products and services“Our company’s core business is mining andwe always find the best business contacts atWAMPEX,” said seven-time exhibitor OutareKokobissi, West Africa Area manager for KSBPumps. The company’s Ghana office focuseson developing and supporting its West Africancustomers by providing tender pre-qualification, negotiations and administration,as well as sales, technical and commercial

support for its pumps and valves. Interplast’sKumar added, “We will be launching our latestproduct at WAMPEX next year,. Ingreen is aplatform for the design and installation ofautomatic underground irrigation systems. Itfeatures a wide range of top quality productsincluding sprinkler heads, sprinkler timers,valves, accessories and tools manufactured byInterplast and Hunters industries.”

Oil giant Total Ghana has a number ofprojects it will showcase at WAMPEX 2016,including a new fuel additive, its AWANGOsolar lamps, and a new high-tech fuellingdepot in Takoradi.

Geotech specialises in airborne geophysicalsurvey mapping, data processing and datainterpretation, and will also be at WAMPEX2016 to network with existing and potentialcustomers.

“We always update the industry on our latest innovations andimprovements on our technology at WAMPEX,”says Doug Pitcher, the company’s managingpartner and director. �

WAMPEXMining

52

West Africa gets back tobusiness at WAMPEX

WAMPEX attracts global industrialcompanies to West Africa

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

Exhibition Management Services (Pty) Ltd (EMS) of South Africa is arguably the best-knownand most active professional exhibition company in Africa. Indisputably it is the continent’sleading independent organiser with associates based throughout the continent.

Established in 1981, it has a long history of working with government ministries, parastatals,professional bodies and the private sector for the benefit of the peoples of Africa.

EMS is involved in the total spectrum of the industry from the establishment and managementof exhibition venues, to organising exhibitions for its own and other principals’ accounts, tosite arrangements for national pavilions abroad.

In short the company offers the most comprehensive and professional exhibition industryservice anywhere in Africa today.

Excellence in exhibition management and services


MInIngIndaba

53

PE’s push on minerals


Traditionally private equity would nothave found its way into mining assets,however the discussions that took place

at this year's Mining Indaba, in Cape Town,highlighted that finance and investment inthe minerals sector is seeing anunprecedented surge. Historically, privateequity has shied away from the sector formany reasons: lofty valuations for companies;volatile commodity prices; a lack of technicalunderstanding of mining; and the fact thatthe public equity markets have been a morethan sufficient source of capital.

Filling the M&A vacuumWith falling commodity prices, changingmarket conditions, the slowing of mergersand acquisitions and miners finding it hard toraise capital by traditional means, there is anopportunity for Private Equity (PE) firms to fillthe void within the industry. Some of the bigplayers in mining have raised money toinvest, however there are still many that areprepared to, or have the shareholdermandate to go out and make acquisitions.And likewise, even if the juniors and the mid-tiers have the shareholder mandate, they donot have the capital.

Mining companies are also facing moreregulatory requirements, which is puttingpressure on cash outgoings. For instance, theincreased interest in private equity comesahead of this year's review of South Africa'sMining Charter which will be amended andfinal amendments are expected to be madeto the Mining and Petroleum ResourcesDevelopment Amendment Bill.

Investors should not be deterredDespite facing an evolving landscape,regulatory change and even shifting politicalobjectives, mining has become toocompelling an investment case for privateequity to ignore.

Unlike the leveraged-buyout model that isoften associated with private equity, PE firmsinvesting in mining have a very flexibleinvestment model with a full range of debtand equity options at their disposal. They are in-tune with commodity prices, and while producing, cash-flowingproperties are generally preferred, nicheplayers exist that focus on earlier-stageprojects or distressed assets.

The clouds are definitely parting for the

junior mining sector. There are lots ofdifferent shapes of private equity not only forthe big players and investments in matureassets, but also for the junior miners, whohave already been producing assets but needfurther investment.

Regardless of the focus or investmentstructure of a fund, what all private equity

firms have in common is a focus on thebottom line and a hands-on approach that ismeant to maximise their returns.. �

Morné van der Merwe, an M&A partner of Baker& McKenzie's Johannesburg office and RichardBlunt, a London-based corporate partner with afocus on private equity and natural resources

Extended Guaraoductson WEG Pr

ntees

.zestweg.comwwwel: +27 11 723 6000TTel: +27 11 723 6000

S11 ATR March 2016 - Mining_Layout 1 19/02/2016 12:46

http://www.zestweg.com/

CrushingMInIng

54 African Review of Business and Technology - March 2016

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At Bauma 2016 Atlas Copco will presentits new generation of BC bucketcrushers offering up to 80 per cent

higher output than previous models. Highresistance to wear and fatigue, and greaterreliability despite significantly reducedmaintenance requirements make the new BCbucket crusher one of the best pieces ofequipment in its class. Designed for carriers from 22-38 tonnes, themachine is available in two versions, BC 2500 and BC 3700.

The robust BC 2500 and BC 3700 bucketcrushers are a smart choice for “small”demolition, recycling and road constructionapplications where they are often an efficientalternative to a mobile jaw crusher. Capableof crushing up to 110 tons/hour, they alsooffer a high level of flexibility in terms ofoperating reach, depending on the mobilityof the carrier.

The advanced twin-drive system comprisestwo powerful hydraulic motors. The sturdy

timing belt is designed for long service lifeand the system provides huge torque rightfrom the start.

Full loading capacity can be used withoutrisk of blockages and the absence of slippageduring start-up ensures constant powertransmission and no extra load on thebearings. The internally mounted drive systemallows a narrower shape withoutcompromising loading capacity. This givesenhanced usability and improved reliability.

All types of inert material, including asphalt,stone and concrete debris, mine and quarrymaterial, can be crushed and re-used on-siteusing a rig-mounted BC bucket crusher.Crushed material can be re-used directly orsold to third parties. This requires lessmechanical equipment, lower transportationand dumpsite costs and only one operatorwho handles both the demolition attachmentand the bucket crusher.

BC buckets bring more


All types of inert material, including asphalt, stone andconcrete debris, mine and quarry material, can becrushed and re-used on-site using a rig-mounted BCbucket crusher. Crushed material can be re-used directlyor sold to third parties. This requires less mechanicalequipment, lower transportation and dumpsite costsand only one operator who handles both the demolitionattachment and the bucket crusher


http://www.nubasm.com/


MInIngCrushing

The new Terex Finlay I-140 direct driveø1270mm x 1240mm (Ø50” x 48”)horizontal impact crusher with variable

speed gives operators unprecedented levelsof production in both recycling, mining andquarrying applications. The robust andproven Terex CR032 chamber gives excellentreduction ratios and high consistency ofproduct shape.

A significant engineering approach beingintroduced in this model is the material flowthrough the plant. The flow of material hasbeen significantly improved by increasing thewidth of components as the material movesthrough the machine.

The machine features an advancedelectronic control system that monitors andcontrols the speed of the rotor and regulatesthe heavy duty vibrating feeder (VGF) withintegrated pre-screen to maintain aconsistent feed of material into the impactchamber for optimal crushing conditions.Material from the integrated pre-screen canbe diverted to a stock pile via the optional by-pass conveyor, or it may join the crushedproduct on the main belt. The standardhopper capacity of 6m³ (7.5yd³) places themachine at the forefront in this competitivemarket sector.

“The introduction of the Terex Finlay I-140represents a significant step change in ourfamily of impact crushers. Our field testresults of extensive testing have recordedsignificant productivity increases dependingon the application, over the model that itreplaces. The enhanced material flow processof the plant represents a significant stepchange to our engineering ethos and in duecourse will be extended to encompass ourrange of impact crushers” said Alan Witherow,product manager. �

Making a new impact

The Terex Finlay I-140 shows its performance in arecycling application


http://www.columbiasteel.com/

Mining facilities face security risks dueto numerous factors. Despite theirremote or isolated locations, they

rely on remote operation centres whichemploy or control trucks, drills, trains, shiploaders, mills or concentrators. They areexposed to environmental activists who maycommit cyber-attacks for political reasons oreconomic attacks such as disruption of themetal market, especially copper, so as to affectthe price at another mine. Also affecting thisindustry is the fact that many businessfunctions are being centralised across thesupply chain. This has translated into the needfor more sophisticated operationaltechnology (OT) systems and networkinfrastructure to connect the geographicallydiverse workforce, increasing an organisation’sexposure to, and dependency on, the Internet.

Mining organisations increasingly want toutilise OT assets for business purposes. Theywant to be agile and have the ability to makemodifications to their OT configurations. Theywant to take advantage of new, cheaper, IPsensors and actuators. They want to exploittheir corporate identity provider service toauthenticate operational personnel. It’s anexciting time for operational technologysystems. However, it is also a time for caution.Such progress inevitably brings a new rangeof security issues.

Ensuring effective securityThe objective is to reduce the access path ofpotential cyber hackers to OT systems fromthe Internet. OT systems are inherently lesssecure as many old systems were notdesigned with security in mind. A propersecurity solution must be not only cost-effective but also take into account thecomplex integration of remote systems,peripherals and cloud-based servicesintegrated into internal networks and devices.

OT security solutions can can providemining and metal companies with a robust,centrally-managed and enforced OT security

policy, automation of hardening processeswith reporting of compliance tomanagement and regulatory authorities. Thesolution can include a security centre systemlocated at a company’s headquarters andvirtual security engineers (VSEs), installed ineach site. NextNine offers such a solution.

Bringing IT and OT togetherThere are also considerations with respect tothe trend towards convergence of informationtechnology (IT) systems and OT assets. Overthe past five years, particularly, the worlds ofIT and OT have been converging, andtechnologists have managed the integratingIT and OT environments - delivering severalbenefits including optimised businessprocesses, enhanced information for betterdecisions, reduced costs, lower risks, andshortened project timelines. Convergencebrings a shared set of standards and platformsacross IT and OT, and so enables miningcompanies to reduce costs in many areas ofsoftware management. Most importantly, too,are the reduced risks that come from reducingmalware intrusion and internal errors.Cybersecurity is enhanced when IT securitystaff and practices are shared or combinedwith OT departments, to bring about anholistic IT-OT security environment.

Corporate supportCompanies that can be called upon tosupport the integration of security

technologies and methodologies with IT-OTframeworks include: N-Dimension, amanaged security service provider (MSSP)with innovative solutions tailored to protectsmart energy networks from cyber threats,improving system reliability and safeguardingcritical infrastructures, data and assets;Waterfall Security Solutions Ltd is the leadingprovider of strong network security productswhich protect the safety and the reliability ofcontrol system networks.

Waterfall Security Solutions, which seeksto eliminate the use of firewalls in criticalinfrastructure control systems by developingproducts providing stronger-than-firewallprotections for industrial control networks;Wurldtech, which helps industrial operatorsand device manufacturers mitigate threatsand vulnerabilities by providing productsand services that help customers design, test,certify, and secure their internet-connecteddevices, ICS and other critical controls, aswell as site operations; NextNine, a specialistin security management software forindustrial and critical infrastructure, marketsthat are vulnerable to cyber security attacksand are underserved by conventionalenterprise IT solutions; Hewlett PackardEnterprise, which creates security roadmapsfor businesses through collaboration tofacilitate innovation and a robust bottomline.; and Trilogy, which offers managedsecurity services incorporating a unifiedthreat management solution. �

SecurityMInIng

56

Factors affectingmine functionsTypical threats to site control, and the systems and initiativestrending to secure safe operation


Mining industry contractor Murray & Roberts Cementationdemonstrated its design and drawing capabilities withcompletion of the design of Ivanplats’ mechanised, hightonnage Platreef No. 2 shaft headframe, for the first phaseof Ivanplats’ Mokopane project. When complete, theMokopane project will be able to produce 433,000 PGMounces per annum, and will be a 12Mtpa operation.Ivanplats is a wholly-owned subsidiary of Ivanhoe Mines.

Design innovation with theIvanplats headframe

Murray & Roberts Cementationcompleted the design of Ivanplats’Platreef No. 2 shaft headframe


Anything. Anywhere. Anytime. her

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With threats possible from any an pretty much a guarantee for critical infrastructure. That’s why Axis focuses on securing you to core. Our network video surveillance products help you secure your site in even the h et beyond that, we constantly work together with our Y

partner network to bring you solutions that ensure safe, uninterrupted production that’s also more e�cient.

.axis.com/critical_infrastructure www

cove


http://www.axis.com/gb/en/

58

SoluTIonS


A DRON FRANCE subsidiary company, DronMaroc specialises in gensets sale, lease, andmaintenance, with extensive experience in thearea.

It has a large fleet of 17 to 2,000 kVA gensets,both for emergency (when connected to themains) and industrial use (for remote locationswithout electricity), servicing a wide range ofareas including construction, mining, wind farms,events organisation, etc.

The equipment of its fleet is constantly beingrenewed in order to meet the most demandingand complex needs and applications.

As leaders in the Moroccan market, theirstrategy is to always offer innovative and qualityequipment with proven supply reliability.

Another driver in achieving their leadership inthe market has been their response capability.They have a large stock of accessories: fuel tanks,cables, grommets, switchboards, etc. And

everything necessary for the maintenance asfilters, pumps, timing belts, etc.

Dron Maroc recently offered their lease servicesat the potash mine located in Khemisset, Morocco.

For this application, the Inmesol IVR-550 gensetwas selected, for industrial use and thatparticularly supply energy to potassium orecrushers at the mine.

AJ Power Limited ............................................................................................33

Aksa Jenerator Sanayi AS ............................................................................15

Axis Communications Pty Ltd ....................................................................57

Caterpillar SARL ..............................................................................................45

Clarke Energy Ltd ............................................................................................35

Columbia Steel Casting Company Inc.....................................................55

Doosan Infracore ............................................................................................11

Eko Hotel and Suites ......................................................................................23

Emirates ............................................................................................................60

Emirates Dnata ................................................................................................59

Ethiopian Airlines Enterprise ........................................................................2

Exhibition Management Services

(AB7 2016, WAMPEX 2016, SAITEX 2016) ..................................19,29,39

F G Wilson Engineering Ltd............................................................................7

Inmesol SL..........................................................................................................37

Kanon Loading Equipment BV ..................................................................21

Komatsu..............................................................................................................13

Metalgalante S.p.A. ........................................................................................17

Nuba Screening Media..................................................................................54

Pan Mixers South Africa (Pty) Limited ....................................................50

Panafrican Group ............................................................................................51

SDMO Industries ................................................................................................9

Torre Lifting Solutions ..................................................................................49

Volvo Construction Equipment AB ............................................................5

Zest WEG Group Africa..................................................................................53

Advertiser’s Index

Dron Maroc leases its Inmesol gensets to the potashmine in Khemisset, Morocco

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IVR-550 model at the potash mine, in Khemisset, Morocco



http://www.dnata.com/english/


http://www.skycargo.com/english/products-and-services/cool-chain/index.aspx

african review march 2016

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