African Review May2015

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

May 2015

www.africanreview.com

Construction:A round-up of Intermat2015 P48

Technology:Using data to improveproduction P28

Business:Economic opportunities in Mozambique P20

African Review

of Business and TechnologyMay 2015

Volume 50 N

umber 9

www.africanreview

.com

P67

Guinea showspromising mining potential

P40

Driving renewable

energy growth

ATR May 2015 - Cover_Layout 1 24/04/2015 12:19

S01 ATR May 2015 - Start_Layout 1 24/04/2015 13:06

UP FRONT

3

REGULARS

FEATURES20 Business and Economy

An energy-based investment framework and fresh governmental impetus inflateseconomic opportunities in Mozambique

22 Finance and Technology The key institutions and corporate entities, the current deployments, and the technologiesunderpinning mobile money in Africa

30 PowerAfrica’s energy leaders assemble at the Sandton Convention Centre in northernJohannesburg for the seventh edition of Africa Energy Indaba

44 Construction Africa's construction and equipment companies; appraising the key manufacturers anddistributors serving the continent's constructors and contractors with the latest, mostadvanced machines

62 Mining Distributing for dewatering, slurry and sludge; integrated pump technology supplies 20Bravo 900 submersible slurry pumps to Kamoto Copper Company in the DemocraticRepublic of the Congo

04 Agenda: Developments in Africanbusiness and technology

14 Bulletin: Trade, investment, andeconomy

68 Solutions: Equipment for Africa’sconstruction sector

Contents

Editor’s Note

Main cover picture: PhotoSkyInset, top left: Andrea Slatter

P34

P48

This issue of African Review of Business and Technology explores the principal themes of financeand technology between pages 22-29. In this edition, banking and mobile communications

services are explored in-depth; the finance section of this issue looks at how these services arereaching people across Africa and how new technology ‘enablers’ are changing lives. An appraisalof the contribution of technology to Africa’s economy is featured on pages 28-29, addressing howoperational information represents a potential goldmine for capital-intensive industries. Between pages 30 to 42, Africa’s power sector is examined closely, with a focus on renewables. From pages 44 to 67 there is coverage of both the construction and mining sector. Equipmentsolutions are explored between pages 68-70. The benefits of loader/haul truck combination and why it is an ideal material-handling solution formost surface mining operations is outlined in this issue. These machines are widely used in roadconstruction, for dealing with municipal waste, and in large-scale farming too.Africa's biggest construction and equipment companies are also highlighted in this edition ofAfrican Review of Business and Technology, with reports on key manufacturers and distributorsserving the continent's constructors and contractors with the latest, most innovative machines.

Andrew Croft, Editor

African Review of Business and Technology - May 2015

Audit Bureau ofCirculations -BusinessMagazines


Editor: Andrew [email protected]

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4

NEWS

The Sustainable Energy Fund for Africa(SEFA) has approved a US$780,000preparation grant for the development of afirst phase 40MW of the Starsol Solar PVPlant near N'Djamena in Chad as the firstIndependent Power Producer (IPP) schemeto be connected to the national grid.Specifically, the SEFA grant will finance thecosts related to technical assistance for thecompletion of the plant design and gridstudy, as well as advisors for legal andfinancial structuring of a bankable IPP.

The success of this project will havesignificant demonstration effects in thecountry's power sector and provide reliablepower to address power shortageshampering economic growth.Implementation of this project first phasewill help to increase the installed capacity by45 per cent, generate around 64GWh ofelectricity per year and provide electricity tothe equivalent of 16,871 households in thearea of N'Djamena as well as to the

corporate and public sectors. It will alsocontribute to diversifying the country'senergy mix with a clean energy source andto promoting technology transfer, thusstimulating the creation of skilled and semi-skilled jobs. Finally, the project will helpChad meet its growing electricity demandwith an endogenous, abundant and carbon-free source.

The project aligns with the ChadGovernment's focus on the development ofrenewable energies as a national energypolicy priority, in a country where less thantwo per cent of the population has access toelectricity and the electricity generationcosts are high (FCFA 345/KWh, US$0.65/KWh)as most of it is provided by private dieselgenerators. The project is also aligned withthe African Development Bank ClimateChange Action Plan 2011-2015 and EnergyPolicy, as well as the Bank's Strategy 2013-2022 which focuses on the twin objectives ofinclusive and green growth in the continent.

Morocco is developing renewableenergy sources, as it imports almost

94 per cent of its energy needs.“Persevering in this direction [energy

pricing] could help Morocco emerge as aregional leader in energy sector reform, aswell as in the renewable energy technologiesin which it has a natural advantage,” statedthe International Energy Agency (IEA).

Morocco also has good potential inhydroelectricity, in addition to its high solarand wind energy potential. The country’sgovernment knows that it cannot continuerelying on imports, as energy consumptionhas been rising steadily at more than fiveper cent a year over the last decade.Morocco has followed a procedure to usespecialised administrative bodies to makethe necessary laws and has sought theassistance of global organisations to makerenewable energy and efficiencyimprovement a key priority.


Agenda / NorthSEFA to support solar power in Chad Morocco looks to

wind energy


Algeria to invest US$215bn in infrastructureAlgeria is set to invest US$215bn in publiclyfunded infrastructure during 2015-2019, inhospital construction and renovation,transportation infrastructure, wastewatermanagement and desalination, andports/airports. The biggest portion of thispublic expenditure will fund the constructionof five hospitals, and the restoration of around15 hospitals, according to a statement.

Algeria is expected to increase its currentinfrastructure spending through its sovereignwealth fund, also referred to as the Fonds deRegulation des Recettes (FRR), the Algeriangovernment said.

The investments in public infrastructurewill create opportunities for US firmsthroughout the infrastructure supply chain.

A webchat on 16 April involving the USambassador to Algeria Joan Polaschikdiscussed US - Algerian relations, and thegrowing Algerian government interest in US

commercial engagement, said the statement.They provided briefings on the Algerianbusiness climate, and the operating

environment within the infrastructure sector,which were followed by a question andanswer session, it added.

Algeria is set to increase itsinfrastructure spending

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Dr Christie Peacock, former chief executive ofcharit, Farm Africa and founder and chairmanof SIDAI Africa, has been presented with a SocialEntrepreneur Award by the Schwab Foundation. Farm Africa supports farmers who are faced withchallenges in building food and income security;enabling them to grow a better and reliablefuture for their families.Dr Peacock eventually set up SIDAI Africa, whichoffers high quality veterinary services, targetingpastoralists and smallholder farmers in Kenya.SIDAI is the result of Dr Peacock’s years of serviceto African farmers. Studying agriculture at theUniversity of Reading, her first visit to remotenorthern Kenya to study nomadic pastoralistsinspired her PhD research on the Maasai, oneof the first systematic studies of traditional sheepand goat management practices in Africa. Dr Peacock focused her efforts in exploring therole of women. In 1988, with a year’s fundingfrom Band Aid, she set up Farm Africa’s first goatproject in Ethiopia. This enabled widows withcrossbred goats to give families a stable sourceof nutrition and an asset to sell when they arestruggling to make ends meet. Dr Peacockswayed the Ethiopian director of VeterinaryServices into allowing her to train women as

community animal health workers to providebasic care to the goats. The success of the modelled to similar projects being developed by FarmAfrica and other agencies.Dr Peacock carried on her work for Farm Africa,gaining the post of chief executive in 1999.Under her leadership the organisation grew intoa highly-regarded, professional organisationwith a yearly income of US$12mn, working inEthiopia, Kenya, Tanzania and Uganda. In 2010Dr Peacock left the position of chief executiveto pursue another goal. She set-up SIDAI, whichis a social enterprise. It aims to provide high-quality, low-cost livestock services in rural Kenya.Each centre is owned and managed by qualifiedprofessionals and offers animal husbandry andhealth services to farmers and pastoralists. Thesocial enterprise aims to roll out 150 franchisesacross Kenya.In 2014 Dr Peacock was presented with a CBEfor her services to improve the lives of Africa’spoorest and most isolated farmers. Nigel Harris, CEO of Farm Africa stated, “FarmAfrica is delighted to congratulate Dr ChristiePeacock on her award from the SchwabFoundation as one of their chosen SocialEntrepreneurs for 2015.“

6

NEWS

Over 630,000 Kenyans will benefit from access to electricity, existing consumers will enjoybetter quality of electricity services, and the Kenya Power and Lighting Company (KPLC) will befinancially stronger, on completion of a new Kenya Electricity Modernization Project, followingthe arrangement of a World Bank-approved US$457.5mn financing package comprising anInternational Development Association (IDA) credit of US$250mn, an IDA guarantee ofUS$200mn and a US$7.5mn grant from the Strategic Climate Fund Scaling-up RenewableEnergy Programme. The IDA guarantee will enhance KPLC’s credit quality and enable it to raiseabout US$500mn of new commercial debt with lower interest rates and longer tenors toreplace existing debt that is placing a heavy burden on the company.

“We are making this significant and innovative investment in Kenya’s power sector to expandelectricity access to low income households and small businesses as part of the nation’s pushfor shared prosperity,” said Diarietou Gaye, World Bank country director for Kenya. “Modern,reliable electricity will improve the quality of life of Kenyans and underpins enhancedcompetitiveness of the Kenyan economy.”


Agenda / EastKPLC set to scale-up Kenyanelectricity service

Dr Christie Peacock praised forwork in Kenya


NSSLGlobal and the BBCdeliver live ‘bonded HDR’satellite video broadcast

NSSLGlobal worked with the BritishBroadcasting Corporation (BBC)

recently to enable the corporation's first live‘Bonded HDR’ (High Data Rate) satellitetelevision broadcast. An episode of theBBC’s ‘The One Show’, which was broadcaston 5 March 2015, featured Lenny Henry livefrom the Iyolwa Health Clinic, Uganda, aspart of the ‘lead-in’ to BBC’s Comic Reliefprogramming a week later. In thebroadcast, Henry showed the audience theresults of a major refurbishment funded byComic Relief money.

HDR video services typically transmit ataround 650-700kbps. But by ‘bonding’ twoportable BGAN Explorer 710 satelliteterminals (on Inmarsat’s satellite network)NSSLGlobal was able to deliver double thenormal HDR bandwidth for thistransmission. This is the first time this hasbeen possible using BGAN terminals,(which are valued in the industry for smallsize and extreme portability, fitting easilyinto a rucksack or carry case).In terms of allowing a higher-qualitybroadcast, this extra bandwidth not onlyallows for the transmission of sharperimages, but can also accommodate thehigher data throughput of highly dynamicimages such as moving backgrounds orextremely ‘active’ scenes. As a result, for thefirst time, rather than being restricted tostatic camera setups, satellite-broadcastcamera crews can be in-motion, providedthey have a suitable wired or wireless linkto the BGAN terminal.

The BBC's first live ‘Bonded HDR’ (High Data Rate)satellite television broadcast took place in Uganda


T

8

NEWS

More than 40 professional bodies, institutesand associations have provided input andsupport to the two-day INDUTEC show to bepresented alongside this year’s SA Industryand Technology Fair (INDUTEC).

The INDUTEC expo takes place from 20-22May 2015 at the Gallagher ConventionCentre, Midrand. The conference aims toovercome challenges and provideopportunities in the manufacturing sector.The event is expected to provide practicalsolutions, create dialogue, offer expert adviceand devise strategies.

“This inaugural INDUTEC conferencefeatures many industry experts as its keyspeakers, and the two-day format provides a unique structure for interest groups tofocus on specific topics, and debate policiesthat affect the broader South Africanindustrial landscape,” stated Keith Burton,managing director of the event organiser,African Agenda.

Topics to be discussed will includeindustrial and manufacturingcompetitiveness, political risk andgovernance, international competition,

regionalism and localism, financing,infrastructural limitations, transformation,regulatory issues and sustainability.

Another theme that will be explored is‘Funding for green technology initiatives: theManufacturing CompetitivenessEnhancement Programme (MCEP)’.

MCEP is one of the Industrial Policy ActionPlan programmes rolled out by the DTI in2012, which provides increased support formanufacturers to enhance productionfacilities that will sustain employment andimprove profits short- and medium-term.

South Africa’s manufacturing prospects,challenges, trends and technologies will alsobe discussed by Coenraad Bezuidenhout,CEO of Manufacturing Circle.

Oil and gas technology provider ION Geophysical Corporation has confirmed completion of theseismic acquisition stage of the company's NamibiaSPAN programme, which extends the fulllength of Namibia's offshore continental margin. The acquisition was conducted incooperation with BGP (China National Petroleum Corporation).

With an estimated 100bn barrels of oil remaining to be discovered and produced in Africa'soffshore waters, NamibiaSPAN plays a critical role in establishing a contiguous dataset for thefull West Africa margin extending from Mossel Bay to the Bight of Benin. NamibiaSPANcomprises over 10,000 km of two-dimensional (2D) multi-client data and represents the newestaddition to ION's BasinSPAN library, which encompasses approximately 500,000 km of 2Dbasin-scale data in exploration and production (E&P) hotspots around the world includingNigeriaSPAN, EquatorSPAN and CongoSPAN in West Africa.

World Bank helpsMozambique improveaccess to all-season roads

INDUTEC will take place on 20-22 May 2015 at theGallagher Convention Centre, Midrand, Johannesburg,South Africa


Agenda / SouthInaugural INDUTEC Conference andWorkshops 2015: What’s New inManufacturing?

ION expands West African 2D data library with acquisition of NamibiaSPAN


A third additional financing packageamounting to US$73.6mn from theWorld Bank is set to support theimplementation of the second phase ofthe Mozambican government’s roadsand bridges management andmaintenance programme.

Due to its geography, Mozambiquefaces continuous and increasingvulnerability to severe weather eventsand floods that cause widespread lossesand damage to infrastructure. Thisadditional financing credit to theprogramme fills a financing gap forflood-related road rehabilitation worksin southern Gaza Province followingsevere flooding in the lower LimpopoRiver basin in 2013.

“Damages inflicted by recurrent floodsto the road network isolate many ruralcommunities, preventing access to basicservices, markets and transport,” saidMark Lundell, World Bank countrydirector for Mozambique, Madagascar,Mauritius, Seychelles, and Comoros. “Weare pleased to support the Governmentof Mozambique in its efforts to improveaccess of the population to all-seasonroads through greater maintenance,rehabilitation and upgrading of theclassified road network.”

The majority of Gaza Province’s roadnetwork is located in the Limpopo Riverbasin and is prone to inland flooding.Over 70 per cent of the provincial roadnetwork – about 2,200km of roads –sustained damage in the 2013 floods.

The government of Mozambiqueestimated the required road networkrehabilitation would cost approximatelyUS$183mn.

To mitigate the vulnerability of thoseaffected by the floods, in December of2013, the World Bank providedadditional financing of US$70.15mn tothe programme for road rehabilitationand enhanced flood resilience.


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10

NEWS

The issue of enhancing trade is key tohelping African countries becomeemerging economies, AfricanDevelopment Bank’s acting chiefeconomist and vice-president said duringthe recent International Conference on theEmergence of Africa, held in in Abidjan,Côte d'Ivoire.

“Creating favourable terms for trade andenhancing trade relations with othercountries should be a critical agenda for anemerging Africa,” Steve Kayizzi-Mugerwaobserved. Co-organised by the UnitedNations Development Programme and theGovernment of Côte d'Ivoire, in partnershipwith the AfDB and the World Bank, theconference highlighted the need tonegotiate favourable trade concessions toallow for new opportunities for Africancountries to experience economic growth.The meeting concluded with the adoptionof the Abidjan Declaration, whichemphasises the impact of Africa's trade onthe global market. The Declaration stated,“Countries aspiring to become emergingmarkets should accelerate regionalintegration through the creation ofregional blocks that could eventually leadto the improvement of intra-regional tradeand efficient access to global markets.”

Delegates agreed on the need for tradeand economic growth with participation ofvulnerable groups.

The Declaration also stated, “Theinclusion of the most vulnerablepopulations into the financial system, andin particular women and their access tocredit should be promoted so as to increasetheir share of participation in the economy.”

African Development Bank statisticsshow an increase in Africa's economicgrowth to 5.5 per cent in 2014. The targetfor 2015 is seven per cent. However, themajority of Africa's population does notfeel the impact of this growth. Thecontinent's energy problem also came intofocus during the meeting.

Makhtar Diop, World Bank vice-presidentfor Africa, challenged governments toprioritise measures to address the energycrisis, as it is a key element in attractinginvestment, which is necessary foreconomic growth. He said, “All emergingcountries have to solve the energy crisis.We have to be on par with other nations,ensuring we produce enough energy forAfrica at affordable rates.”

High energy prices have raised the costof doing business in Africa, with investorsopting to invest in other lands, he added.

World Bank Group member IFC will provide a FCFA2.5bn (US$4.1mn) risk-sharing facility toBanque Internationale du Cameroun pour l’Épargne et le Crédit (BICEC), to support its lendingactivities to agricultural cooperatives active in the productions of cassava, maize and sorghum.Currently, 80 per cent of cassava, maize and sorghum, bought by Cameroon agribusinesscompanies is imported, even though 75 per cent of Cameroon farms grow these crops. The project will share the risk of lending to local cooperative producers selected under theWorld Bank’s Agriculture Investment and Market Development (PIDMA) project, which works tosupport the transformation of low productivity, subsistence-oriented cassava, maize andsorghum producers into commercially-oriented and competitive value chains.Saran Kebet-Koulibaly, IFC regional director for West and Central Africa, said, “BICEC is animportant partner for IFC to reach and support producers of basic foods in Cameroon.”

Sarama Resourcescompletes drilling atSouth Houndé Project inBurkina Faso


Agenda / WestFavourable trade terms to helpAfrican countries

IFC, BICEC act on agribusiness inCameroon


Following the November 2014 earn-inagreement between Acacia Mining andSarama Resources with respect to Sarama'sSouth Houndé Project in south west BurkinaFaso, Sarama has commenced a multi-facetedexploration programme with a budgetfunded by Acacia of US$3.5mn for the firstyear, which includes drilling as well as variousgeochemical and geophysical surveys.

Results received to date are encouragingand continue to show potential to increaseoxide mineral resources and further theunderstanding of high-grade zonesencountered at the MM and MC Prospects.The results from the drill programmes are

currently being compiled and will be used toplan the next steps of the explorationprogramme. The programme will continuethroughout 2015 and, subject to results,nominally includes 15,000 metres of ACdrilling, 6,000 metres of RC drilling, 5,500metres of diamond drilling, 12,000 metres ofauger drilling, a 9,200 line-km airbornegeophysical survey and various geochemical,regolith and IP surveys.

The initial diamond drilling programme isfocused on the further delineation of high-grade shoot controls at the MM and MCProspects where previous drilling hasdemonstrated continuity to a depth of atleast 280 metres.

Sarama has rolled out a multi-faceted explorationprogramme


1 / 3

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S04 ATR May 2015 - Events Calendar_Layout 1 24/04/2015 13:08

12

NEWS

Not to be missed at the Coatings for Africaevent in Johannesburg’s Sandton

Convention Centre (11-13 May;www.coatingsforafrica.org.za) will be thespace occupied by Wacker Chemicals MiddleEast/Africa. This will be followed by aninstructional seminar on the differenttechnologies offered, as summarised here,attended by the directors of the relevantbusiness divisions.Wacker works locally with IMCD SA and operatestechnical application centres in the same city.The parent company is a globally activechemical group headquartered in Germany,founded more than one hundred years ago andnow operating 25 individual production sites,including in China and the USA. These specialisein the supply of more than 3,000 high-techregistered-name products used in internationalhigh-growth sectors such as construction. Key technologies on show this month in SA

include SILRES BS silicon resins used in high-quality emulsion paints, and VINNAPAS bindersfor both coatings and other constructionapplications such as Wacker’s ETICS systems(external thermal insulation composites). Building products based on hydrophobic(water-repellent) silicone resins/emulsions offera high level of protection for buildings for manyyears, the resins themselves forming anextremely stable and durable three-dimensionalnetwork on mineral surfaces and within mineral-based coatings. This repels moisture but at thesame time allows the building to “breathe”,being permeable to water vapour within thestructure itself and thereby preventing thedamage, decay and disfigurement widelyassociated with moisture penetration.The company’s VINNAPAS range of versatilecopolymer dispersion products are also usedas binders in the production of specialisedpaints that have a low content of unwanted

volatile organic compounds and also offer highscrub and blocking resistance. Thesecopolymers are applied in order to enhance theperformance of adhesives used betweeninsulation panels and their underlyingsubstrates, optimising the flexibility and impactresistance of the resulting façade and makingit moisture repellent at the same time.Wacker’s ETICS composites systems aredesigned to be used on building facades inorder to make them more energy efficient inboth hot and cold conditions. And finally thecompany’s special SILRES BS emulsion paintscan be applied in order to provide the buildingsystem with both the ability to repel water andthat health-enhancing breathability.The Dubai-based subsidiary of Wacker ChemieAG, which is focusing increasingly on high-growth African markets, also took part in theCementrade Summit held in Addis Ababa last month.

Wacker’s high-tech construction products on show in SA

African Review of Business and Technology - May 2015 www.africanreview.com

May10-11

Aviation AfricaDubai, UAE

www.aviationafrica.aero

11-15

African Construction WeekJohannesburg, South Africa

www.hypenica.com

12-13

Africa Financial ServicesInvestment ConferenceBrighton, UK

www.afsic.net

12-14

African Utility WeekCape Town, South Africa

www.african-utility-week.com

12-14

A-OSHJohannesburg, South Africa

www.securex.co.za

12-14

SecurexJohannesburg, South Africa

www.securex.co.za

13-14

Banking & Mobile Money UgandaKampala, Uganda

aitecafrica.com

19-20

MozambuildMaputo, Mozambique

www.mozambuild.com

19-21

Mobile Money & Digital PaymentsJohannesburg, South Africa

www.mobile-money-africa.com

20-22

IndutecJohannesburg, South Africa

www.exhibitionsafrica.com

20-22

Pumps, Valves and Pipes AfricaJohannesburg, South Africa

www.exhibitionsafrica.com

21-23

IngetrexDar Es Salaam, Tanzania

www.ingetrextanzania.com

25-26

Satcom AfricaJohannesburg, South Africa

www.terrapinn.com

25-26

World Rural Telecoms CongressJohannesburg, South Africa

www.terrapinn.com

Events / 2015

S04 ATR May 2015 - Events Calendar_Layout 1 24/04/2015 13:08

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14

NEWS

Bulletin / CommunicationsSouth African minister lays outfive-year communications planSouth African communications minister

Faith Muthambi has said that the next five

years will be about creating the right

conditions for an efficient communications

environment in the country, with her

department planning “specific

interventions” in improving government

communications, carrying out a

broadcasting policy review, and supporting

community media and media

transformation; after tabling a five-year

strategic plan, the government minister

remarked, “Our work for the next five years

is guided by the need to lay a strong

foundation to create an effective and

efficient communications environment in

the country.”

Ethiopian Airlines launchesmobile payment service Ethiopian Airlines has announced the

launch of mobile ticketing service for its

flights, which will allow customers in

Ethiopia to book tickets, pay and receive

payment confirmation with passenger

record locater, via a single connection;

Ethiopian Airlines CEO Tewolde

Gebremariam said, “In November 2014, we

started Mobile SMS information system

with access to real-time and personalised

information regarding flight information

predicted to have Internet access by 2025,

McKinsey & Co said that mobile technology

had been revolutionising the way African

farmers do business, such as the example of

Kenyan start-up M-Farm, which enables

farmers to access information about market

prices, lower purchase costs by aggregating

orders of farm supplies and sell produce

collectively, all via text message.

Bharti Airtel Africa appoint newMD for Chad

Bharti Airtel Africa has named Anwar

Soussa as the new managing director for

Airtel Chad; the Indian multinational

telecommunications company said Soussa,

who joins the firm from MTN Cyprus where

he served as CEO, will spearhead the drive

to provide 3G services in the Central African

nation, as well as playing a key role in

building the country’s strategic leadership.

and cargo, and we are now taking it a step

further by availing the mobile payment

option for online purchases in Ethiopia.”

Africa to see largest e-payment rise, says Visa boss Africa will see the greatest rise in electronic

payments between now and 2016,

according to Mohamed Touhami El

Ouazzani, Visa’s general manager for

Morocco and francophone Africa, who

made the remark at the Prepaid Summit

Middle East in Dubai; Africa has already

seen a marked rise in electronic payments

in recent years, with several notable success

stories such as Kenya’s M-Pesa mobile

payment service, while a recent report by

MasterCard revealed that more than 80 per

cent of Kenyans were using electronic

payment products like M-Pesa.

Gabon to host global ICTregulatory symposiumThe ITU’s 15th Global Symposium for

Regulators takes place in Libreville, Gabon,

from 9-11 June 2015, with the event set to

bring together a host of guests and

speakers from around the world for what its

organisers called “the world’s pre-eminent

gathering of the global ICT regulatory

community”; discussions will centre on a

series of key topics, including mobile

money, the ‘Internet of Everything’, taxation,

investment strategies, network-sharing

business models and the impact of

regulation upon broadband uptake.

Smartphone technology‘revolutionising African farming’ As Internet access has broadened in Africa,

technology firms have been able to reach

an ever wider audience – a trend which is

set to continue, according to consultancy

firm McKinsey & Co, who also predicted

that 360mn smartphones would be in use

throughout the continent in the next 10

years; with half of Africa’s one billion people

Soussa will spearhead the drive to provide 3G services inthe Central African nation (Photo: Steve Jurvetson/Flickr)


McKinsey & Co has predicted that 360mn smartphoneswould be in use in Africa in the next 10 years(Photo: Samsung)

Ethiopian Airlines’ customers will now be able to booktickets and receive payment confirmation via theirmobile phones (Photo: Arpingstone)


16

NEWS

Bulletin / FinanceSukuk programme establishedin Côte d’IvoireMadame Nialé KABA, Côte d’Ivoire’s

minister to the prime minister in charge of

economy and finance, has signed an

agreement with the CEO of the Islamic

Corporation for the Development of the

Private Sector (ICD), Khaled Al Aboodi, to

setup a Sukuk programme in an aggregate

principal amount of CFA300bn

(US$322.5mn); the programme will be

implemented during 2015-2020 for

financing developmental projects and will

be executed in two equal phases of

CFA150bn (US$161.2mn), with H.E. Madame

Nialé KABA commenting, “The Sukuk

programme is in line with the objective of

the Côte d’Ivoire to identifying alternative

financing means for developmental project

that could help the country achieve an

emerging economy status by 2020.”

Angolan wealth fund to providesupport to economic sectors Angola’s sovereign wealth fund Fundo

Soberano de Angola (FSDEA) has

allocated US$1.4bn to five new investment

funds focused on the growth of various

sectors of the Central African nation’s

economy; the new investments will be

allocated to mining, timber and

agriculture, with US$250mn for each

sector, while an amount of US$400mn will

out of 36 countries – an alarming statistic

that is not only costing the country

valuable lives, but also an estimated

economic cost of R307bn (US$329.4mn) per

year; the report also indicated that

pedestrians are most at risk as they

represented more than 35 per cent of all

reported fatalities – and that, while the

motorised vehicle fleet in South Africa has

doubled in the last 20 years, only 30-40

per cent of vehicles on the country’s roads

are insured.

IFC invests in GoodlifePharmacies to improve EastAfrican healthcareWorld Bank Group member IFC has

committed to a loan of US$4.5mn for

Goodlife Pharmacy Ltd., to help the

company open a chain of 80 pharmacies

across Kenya and East Africa; “Goodlife will

expand rapidly in East Africa, opening

pharmacies at convenient locations in

retail centres, petrol stations and near

health clinics,” remarked Tony McNally,

CEO of Goodlife.

be spent on healthcare and a fifth

mezzanine US$250mn investment fund to

be set up to provide financing to

entrepreneurs, who do not have access to

traditional debt funding.

Moody’s confirms A3/P2 ratingfor AFCThe Africa Finance Corporation (AFC) has

had its international credit rating

reaffirmed at A3/P2 (Stable outlook) by

Moody’s Investors Service, who had

assigned the corporation its first

international credit rating of A3 (long-

term)/P2 (short-term) foreign currency debt

rating in March 2014; Moody’s rationale for

confirming this investment grade rating

was based on AFC’s sound capital

adequacy position, owing to good equity

buffers and low debt levels, as well as a

strong prudential framework that supports

a high degree of liquidity.

Over a billion pledged toGuinea-BissauPledges amounting to more than €1bn

(US$1.08bn) were announced at a recent

international conference in support of

Guinea-Bissau held in Brussels, Belgium,

which the European Union hosted

together with the Government of Guinea-

Bissau and the UN Development

Programme; “I hope that the massive

support will encourage the government to

pursue its ambitions for reform...for the

sake of the people of the country and

the stability of the whole region,” said

Neven Mimica, the European

Commissioner for International

Cooperation and Development.

The cost of road safety to SouthAfrica’s economyAccording to the International Transport

Forum’s (ITF) latest Road Safety Annual

Report, South Africa has been ranked the

worst country for number of road fatalities

ICD CEO Khaled Al Aboodi with Côte d’Ivoire’s minister tothe prime minister in charge of economy and financeH.E. Madame Nialé KABA


South Africa’s poor road safety record is reportedlycosting the country’s economy R307bn (US$329.4bn) peryear (Photo: NJR ZA)


17

Stellar applies for mininglicence at Sierra Leone projectDiamond development company Stellar

Diamonds, which is focused on West Africa,

has commenced the application process for a

mining licence at its wholly-owned 1.45mn

carat Tongo Dyke-1 kimberlite project in

eastern Sierra Leone; the company has

decided to fast-track Tongo to production

following recent positive resource definition

work, mining studies and financial modelling

undertaken by Paradigm Project

Management (PPM).

Godrej plots six-fold increase inAfrican business High-level authorities from 15 countries have

pledged to collaborate on a plan to wipe out

the animal disease known as ‘Peste des petits

ruminants’, which affects both goats and

Organisation for Animal Health, which was

presented at a meeting in Abidjan recently by

the two institutions with the Government of

Côte d’Ivoire.

Godrej plots six-fold increase inAfrican business by 2020Godrej Consumer Products Ltd., the

flagship firm of the Godrej Group, has

announced its intentions to increase its

African turnover by six times within five years,

with the US$2.25bn Godrej Group preparing

a blueprint to place itself among the top

consumer goods companies on the

continent; the plans will see Godrej Consumer

aggressively target the acquisition of local

brands as it looks to increase its presence in

the personal and home care markets, in

which it already has a strong footing within

its home market of India.

sheep, by 2030; ministerial delegations, along

with more than 300 participants from across

the continent, and representatives of regional

bodies and international organisations,

agreed to a plan to control and eradicate the

disease drawn up by the FAO and the World

The disease, known as ‘Peste des petits ruminants’,affects goats and sheep (Photo: Retlaw Snellac)

Bulletin / IndustryNEWS

African Review of Business and Technology - May 2015www.africanreview.com


SunPower has announcedthat it has begun buildingan 86MW solar powerplant in South Africa'sNorthern Cape.

The US-based solarenergy company saidwork on Prieska SolarPower Plant, which islocated in South Africa'sNorthern Cape province,will be completed by2016, creating around700 jobs.

Sunpower CEO TomWerner said, “We are pleased to grow our presence in South Africawith the development of solar power plants that enable SouthAfrica’s government to achieve its renewable goals, and lookforward to continuing to serve the region with the opening of ournew solar panel manufacturing plant this year.”www.africanreview.com/energy-a-power

SunPower starts construction of SouthAfrican solar plant

The World Bank, the UK Department for International Development(DFID) and TradeMark East Africa have launched a project worthUS$596mn aimed at improving the operational efficiency of Dar esSalaam port in Tanzania.

The Dar es Salaam Maritime Gateway Project will improve thephysical capacity of infrastructure and operational efficiency at theport by demolishing sheds 2 and 3 of the port.

In addition, roads leading to the port will be upgraded and gatesto introduce a single way traffic flow system will be installed.Dredging and modernisation of berths to allow handling of biggervessels will also be executed.www.africanreview.com/transport-a-logistics

The Industrial Internet of Things(IIoT) can be characterised as vastnumbers of connected industrialsystems that communicate andcoordinate their data analyticsand actions to improve industrialperformance and make the worlda smarter place, according tostudy by National Instruments.

The study added that the ideaof a smarter world where systemswith sensors and local processingare connected to shareinformation is taking hold in everysingle industry. These systems will

be connected on a global scalewith users and each other to helpusers make more informeddecisions. Many labels have beengiven to this overarching idea, butthe most ubiquitous is theInternet of Things (IoT). The IoTincludes everything from smarthomes, mobile fitness devices,and connected toys to the IIoTwith smart agriculture, smartcities, smart factories, and thesmart grid.www.africanreview.com/manufacturing

18

WEB SELECTION

Leading automobile brand Kia Motors Nigeria has unveiled a newassembly plant in Lagos, which is expected to produce 25,000vehicles every year. The United Vehicle Assembly Limited (UVAL) plant will help Nigeria'sautomotive policy towards its target of turning the nation into aleading manufacturing hub, according to UVAL officials.Nigerian minister for industry, trade and investment, OlusegunAganga, paid a visit to the plant, stating that it was technologicallyadvanced and had quality assurance control measures in place.www.africanreview.com/manufacturing

Dar es Salaam port receives US$596mnfor upgrade

Prieska will be the third solar power plantthat SunPower has built in South Africa(Photo: David Goehring/Flickr)

The Tanzanian port could be a huge incomegenerator for the East African nation

(Photo: Buonasera)


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

‘IIoT the new wave towards smarterindustrial performance’

Kia Motors Nigeria opens new assemblyplant in Lagos


China-based constructioncompany Shantui has signed adeal with Zambia National Serviceto supply around US$4mn worthof equipment such as bulldozersand excavators.

The order consists of 320 hpSD32 bulldozers and 20-ton SE210excavators, said Shantui officials.The company also succeeded inprocuring the order after severalmonths of negotiation andbidding with AVIC International.

The machinery, which wasshipped from Tianjin Port in China,will be used as part of aprogramme that will seek toemploy young people to developlocal infrastructure.

Shantui made a similar order in2014 to the Kenya National YouthService, said officials, enhancingits presence in African nations as akey equipment supplier.www.africanreview.com/construction-a-mining

Shantui to supply equipment to ZambiaNational Service


S06 ATR May 2015 - Business Report_Layout 1 24/04/2015 13:10

The recent merger of Mozambique’senergy and resource ministries raisesthe real prospect of new

opportunities for inward investment. Thecompletion of the merger of the twogovernmental departments is timely –completing shortly before the 2015Powering Africa Mozambique eventorganised by EnergyNet, to take place inMaputo in May.With the merger, Mozambique has taken

another major step towards its 2025 visionfor gas and power development. Theformer deputy finance minister, PedroCouto is a key figure in executing a plan topromote sustainable partnerships for trade,focusing on the country’s balance sheet.However, there is debate on whether thereshould be more emphasis on regional gassharing and power sector investment.With exports of LNG scheduled to start

in 2019, Mozambique has highexpectations from its gas sector.Furthermore, the prospects for renewableenergy look promising, with more than23TW of possible green projects comingonline. However, despite more thanUS$3.238bn of investment in powerprojects in 2014, the transmissionbottleneck continues to impact the socialand economic development of the region,threatening the bankability of powerprojects in development. Eskom, AfricanDevelopment Bank, IFC and the SouthernAfrican Power Pool are amongst thepartners addressing transmission andregional distribution to accelerate thecountry’s industrial development.The opportunities to be presented to

participants at the Powering AfricaMozambique event are clearly significant,and have attracted interest from 150 seniorstakeholders including power developers,financiers, representatives of developmentfinance instititions (DFIs) and transmissionpartners, who continue to be engaged in

ongoing discussions with respect to marketdevelopments, investment opportunitiesand the viability of project finance in linewith the country’s Vision 2025 objectives.

Strategies for encouraging investmentMozambique is expected to experiencemajor economic growth over the nextdecade, driven primarily by investment inthe energy sector – notably coal, gas andoil. The conditions to reap the benefits ofMozambique’s rich mineral wealth remainunfulfilled, however. The necessaryinstitutional and legal framework requiredfor mineral resource-based work is still indevelopment. Analyst consensus has it thatafter 2018, revenues from extractiveindustries will begin to impact significantlyon the nation’s budget. Timely constructionof required infrastructure is critical, but thebiggest challenge facing Mozambique is tocreate the conditions for economicdevelopment. Mozambique’s plans toescalate electricity and develop a gaseconomy are critical instruments withrespect to ongoing development. Offshore

gas discoveries along the northernMozambican coast have revealed reservesthat are three times the gas findings inGroningen in the Netherlands in the late1950s. In the coal-rich province of Tete, theestimated coal reserves are 23.3bn tonnes,roughly three times total global productionof coal in 2012. Average economic growththrough to 2017 is expected to be at leasteight per cent. So, economic growth inMozambique is driven primarily byongoing and intended investments in coaland gas, with associated significant fundsfor projects in land-based logistics andmaritime transportation. The natural resources boom in

Mozambique offers many opportunities foreconomic engagement. Billions of dollarsof investment will lead to the completionof liquefied natural gas (LNG) infrastructurein the north of the country, and harbourinfrastructure elsewhere. The socio-economic impact in this regard isincreasing employment, with severalthousand jobs created and an associatedexpansion in services industries. �

MozambiqueBUSINESS

20

Exploiting resources fornew economic powerAn energy-based investment framework and fresh governmental impetusis increasing economic opportunities in Mozambique

EnergyNet is organising the 4th Annual Powering Africa Mozambique in Maputo


S06 ATR May 2015 - Business Report_Layout 1 24/04/2015 13:10

S07 ATR May 2015 - Finance Report_Layout 1 24/04/2015 13:10

22 african Review of Business and Technology - May 2015 www.africanreview.com

africa’s economy needs a robust,inclusive and responsible short-terminsurance industry where

policyholders get real value, said SouthAfrica-based insurance firm Santam.

Majority-owned by Santam Group,Santam’s base of customers represents a 22per cent market share in the local short-term insurance market. Having first openedits doors 96 years ago, Santam’s commercialand personal business continues toleverage an intermediary-based model toenhance its reach and scalability. It operatesfour primary business units — SantamCommercial and Personal, SantamSpecialist, MiWay, and Santam Re(encompassing Santam Emerging Markets).

The challengeWith such a strong emphasis on thenetwork of intermediaries, Santam requireda digital solution to facilitate theinteractions between intermediaries andthe company. The key requirement was forintermediaries to easily, immediately andcost-effectively manage their customers’portfolios - preferably in a self-servicemanner. The main activities include:� Managing existing customers’ portfolios,

such as updating policies and customerdetails;

� Processing claims on behalf of customers.

Previously, intermediaries were requiredto either call into Santam’s contact centre,or submit claims via fax. Many of theseinteractions were simple and low-valueactivities that created an operationalslowdown for Santam. In other cases,certain intermediaries were accessing theSantam mainframe directly, which was nota user-friendly solution, createdunnecessary complexity, and posedvulnerability problems.

The solutionSantam took a broad, enterprise-wide viewof its IT environment. It decided to hinge itsmodernisation programme on three flagshipprojects — upgrading the mainframecomputing system (using guidewire as thepolicy management platform), integratingMicrosoft Dynamics CRM, and building anew web-based Extranet for all intermediaryinteractions. It selected Intervate to developthe Extranet portal using SharePoint 2010 toexpose a number of enterprise services in anintuitive interface available to intermediariesfrom anywhere in the world. The portal waslaunched in April 2014 in an event withintermediaries and business partners.

Intervate was selected due to its pedigreein developing great SharePoint userexperiences, combined with its skills inresponsive design and in developingtransactional systems on top of theSharePoint platform.

“At the heart of the solution lies anenterprise service bus (ESB), which pullstogether 16 disparate systems, unifying andthen surfacing them in a user-friendly andhighly secure way via the Extranet. This formof SOA-based implementation meansintermediaries are able to access a wide

range of services - from booking newbusiness, to modifying policies, to submittingand tracking claims,” noted Santam.

With the Extranet’s sophisticated securityand auditing capabilities, Santam alsoensures full compliance with the stringentregulations governing financial services.

The resultsCreating this Extranet portal has allowedSantam to cater to every type ofintermediary - from the most traditionaltype that prefers telephonic or paper-basedengagements, to the most digitally-savvythat enjoys the convenience of the self-service portal.

Santam’s programme manager MichaelProbyn said that within just the first sixmonths, 84 per cent of its intermediaries hadregistered on the portal. “The adoption hasbeen fantastic. We spent a lot of timeconducting workshops with some of ourintermediaries from the very earliest stagesof wireframes, all the way through to thefinal development. It is a very client-centricsolution. We placed a major focus onusability and design and in ensuring that wewere addressing the intermediaries’ needs,”he added.

Probyn noted that key features will beextended down to the world of smartphonesin the near future, which will further increasethe levels of convenience and mobility.

Chantel Louw, medical aid administrator atInnofin, said that the service has transformedthe way they do business. “The design is verymodern – it’s characterised by a muchcleaner look and much simpler experience. Itis extremely easy to navigate through clientportfolios and instantly see everything in aclient’s portfolio and their historical records.”

Innofin is an intermediary that has beeninvolved in the Extranet project since theearly pilot phase. �

InsuranceFInance

Insurance sector needsintuitive technologyInsurance company focuses on design-led thinking and agile processesto create an intuitive digital interface for its network of intermediaries

Santam selected Intervate to develop the Extranet portalusing SharePoint 2010 to expose a number of enterpriseservices in an intuitive interface


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The z13 is the latest in a 50-year line ofz Systems, popularly known as the IBMMainframe, and is already

revolutionising the way banking companiesare doing business.

According to Lisa Rautenbach, externalrelations manager at IBM, the z13mainframe can handle up to 2.8bntransactions per day, allowing bankingsector operators around the world to meetthe massive and varied needs of clients. Thesupercomputer will be particularly useful inAfrican countries such as Kenya, which is aleader in the field of mobile banking.

“The z13 enables enterprises to managetheir rate of growth in the use of mobileapplications and to provide services to theircustomers all the time wherever they are. Itis designed to meet the speed, security andscalability challenges for IT infrastructurepresented by the mobile economy,”remarked Rautenbach.

The z13 features the world’s fastestmicroprocessor — two times faster than themost common server processors — as well300 per cent more memory, 100 per centmore bandwidth and vector processinganalytics to speed up mobile transactions.

The z13 has 500 new patents, includingsophisticated encryption technology. It isthe first to allow financial servicescustomers to run real-time fraud detectionon all transactions, mitigating the hugeproblem of banking fraud. The Central Bankof Kenya’s Banking Fraud Investigationdepartment found that, in 2014, Kenyanbanks lost US$17.7mn through fraudulenttransactions, indicating the need for betterbanking security.

“Transactions are persistent, protectedand auditable from end-to-end, addingassurance as mobile transactions grow. Thiswill be able to help prevent fraud as it isoccurring, allowing financial institutions to

halt the transaction before the consumer isimpacted,” Rautenbach noted.

On a global level, banking giants such asVisa have complete confidence in the newsystem. Visa runs the world’s largest globalpayment network, and is using the z13 toprovide payment services to its two billioncustomers and 36mn merchants. Anindication of the power of the mainframelies in the fact that Visa runs 150mntransactions per day, less than 10 per centof what the z13 can process.

South Africa’s First National Bank, namedthe World’s Most Innovative Bank by BAI-Finacle Global Banking, is also turning tothe z Systems to accommodate its rapidly-growing mobile banking sector, whichcurrently accommodates more than 175mn mobile transactions per monthacross Africa.

“The mainframe allows the scalability tohandle a huge influx of new mobile bankingtransactions, and the security to build trustand financial health for millions of newcustomers who have never had bankingservices before. The result is that customersusing the mobile channel enjoyconvenience and speed, freeing up in-branch tellers to focus on value-addedservices and building the FNB brand,” Rautenbach added.

Tinashe Ruzane, head of businessdevelopment for Awethu Project, said thatthe continuing development of mobiletechnology is one of the best ways for Africato compete with the developed world. “Ithas the ability to cut across everything inour lives, which is what makes it so powerfulin an African context. It’s the one way forAfrica to springboard into a space where itcan think about competing with thedeveloped world.”

As far as the supercomputer movementgoes, the z Series has found applications not

Mobile MoneyFInance

24

new revolution in africa:SupercomputersIn light of an imploding growth in mobile banking, IBM has introduceda supercomputer in africa to tackle the increasing level of banking fraudin the continent

african Review of Business and Technology - May 2015 www.africanreview.com

IBM is partnering with universities todevelop the supercomputer movement in

the continent (Photo: IBM)


FInanceMobile Money

25african Review of Business and Technology - May 2015

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only in financial services, but also in various industries across thecontinent, ranging from energy and utilities to government.

According to Rautenbach, the supercomputer development isessential to growth in Africa. In February 2014, IBM launched ProjectLucy, a US$100mn drive to introduce some of the world’s mostadvanced cognitive computing systems to the continent. The projectincludes the introduction of Watson — said to be the mostintelligent supercomputer on earth — and focuses on how big dataanalytics and cognitive computing can transform economies andsocieties in Africa. Working with various research partners includinguniversities, development agencies, start-ups and big business, it isanticipated that the ten year project could go a long way to solvingAfrica’s most pressing challenges.

“Watson’s cognitive capabilities hold enormous potential in Africa –helping it to achieve in the next two decades what today’s developedmarkets have achieved over two centuries,” said Rautenbach.

IBM’s researchers are also contributing to the Square KilometerArray radio telescope project in South Africa, one of the mostambitious scientific efforts ever launched, to collect and analyseunprecedented amounts of data from deep space, stemming all theway back to the origins of the universe.

“The ultimate goal is to make Africa the cognitive continent of theworld and to revolutionise the interaction between humans andcomputers,” added Rautenbach. “In order to do that and to bestunderstand the human condition we need to go back to thebeginning of the human race — we need to go back in order tomove forward.” �


IBM’s z13 mainframe will be particularlyuseful for Africa’s burgeoning mobilebanking sector (Photo: IBM)


aperson in the middle of nowhere, without a bank account,without a means of communications, has very limited means ofusing any money earned and doing financial transactions.

But now, there is a new way for a person to become financiallyactive, and it’s all down to the spread of mobile communications,reaching out from urban and semi-urban regions into more rural andremote areas. Communities in isolated regions previously remainedunconnected as mobile operators have avoided delivering mobileservices because the costs associated with rolling out traditionalmobile infrastructure were prohibitive. Hence, millions have been leftout of the mobile communications boom.

That has all been changing in recent years as new mobiletechnologies and breakthroughs have shown mobile service providersthe way to roll out new kinds of infrastructure, often involving asatellite communications segment, and incorporating ‘intelligent’technology that minimises such things as power consumption and, inthe end, making the case for delivering remote rural communitycommunications viable for the operator.

Advances are not simply in the delivery of voice services but also,now, broadband Internet, which is reaching out to both isolateddomestic users and the many remote enterprises like mining, logging,oil and gas communities, which, most certainly, are in need of someform of banking support for the operating companies and theworkers. When fibre-optic submarine cables first delivered broadbandInternet services to Africa’s urban hubs, industry, medicine, educationand government benefitted, with economic development boosted asa result. Reaching remote regions with cable-based broadband,however, is not practical, which is where the support of innovativemobile comes in. While having broadband now gives local individualsand communities the chance to market and sell products and servicesvirtually and to use financial services — all of which opens up theirhorizons beyond the limitations of being isolated — being ‘off-grid’without access to reliable electricity means that fixed broadband willsimply not happen for them – and they need some form of broadbandto support mobile banking services.

Mobile to the RescueMobile broadband services have now been flourishing in Africa forseveral years, supporting a growth in the number of mobile bankingand payment applications and services that are now available topeople in remote regions and elsewhere.

In developed mobile markets, mobile broadband technologies suchas 2G, 3G and 4G laptop cards or USB dongles deliver Internet accesswirelessly where the mobile network has a powerful enough signal. Inremote regions where there are no mobile network signals, specialist

‘remote community communications’ companies have, in recent years,been supporting regional operators in the delivery of local mobilecoverage, enabling people like farmers and other tradesmen to havetheir first financial footprint and conduct banking transactions ofvarious kinds via their mobile phones; and we’re not talkingsmartphones, although these are on the increase, but chiefly featurephones. The mobile phone is the enabler for even the most isolatedcommunities to become financially included.

Pioneer of mobile payments since around 2007, when it launchedits M-Pesa mobile banking service, Kenyan mobile operator Safaricomhas continued as one of the leading lights in tailoring mobile paymentservices even for the poorest; it was the first company to lower micro-payment levels to the smallest amount someone could send, takingthem from US$0.6 to a 12 US-cent equivalent in order to support thevery lowest paid segments of society. Other carriers have been underpressure to lower their amounts, too, driving a market trend to includeas much of the population as possible. At the same time, transactioncharges on these small amounts have also been under review, withtypical rates currently standing at between five per cent and 30 percent depending on amount or mobile money operator involved.

Mobile Payments - An Evolving PictureAccording to a report in the Harvard Business Review late last year, lessthan 30 per cent of Africa’s population have bank accounts, with manyfewer having credit cards of any kind. In Nigeria alone, the number ofpeople estimated as ‘non-banking’ is more than 70mn, though mobile

Mobile moneyFInance

26

Banking on mobileMillions of people across africa still remain without communications ora means to conduct financial transactions, often due to their remote-ness. But both banking and mobile communications services are reach-ing out to these people, and new technology ‘enablers’ are changinglives. Tim Guest reports.

Communities in isolated regions previously remained unconnected as mobileoperators have avoided delivering mobile services because the costs associated withrolling out traditional mobile infrastructure were prohibitive. Hence, millions havebeen left out of the mobile communications boom

african Review of Business and Technology - May 2015 www.africanreview.com


FInanceMobile money

27

micropayments have been changing the landscape for the past fouryears since the Nigerian Central Bank granted mobile moneyoperating licences to 11 companies.

While the developed world creeps its way stealthily towards acashless future, many in Africa who have never banked before areactually beginning their financial lives in an almost cashless way fromthe start in a ‘cash-lite’ sub-economy underpinned by mobile. And it isnot simply M-Pesa in Kenya that is driving this new way forward, butalso the likes of mobile operator MTN’s ‘MTN Money’ in South Africaand other MTN mobile markets like Ghana and Uganda, where amobile phone will even enable a person to withdraw cash from ATMswithout a bank card. Africa has now reached a point where it leads theway in the use of financial services via mobile.

Whether it is a desire for financial inclusion or a way of avoiding thepitfalls associated with traditional banking services, such as unseencharges — a mobile wallet/account like M-Pesa or MTN Money will notbe subject to charges and hidden deductions. As banks and mobileoperators collaborate on such solutions, it means these previously‘excluded’ segments of society will also now have a way of accessingand benefitting from loans, credit and other financial products theywould previously not have used.

A Mobile-Point-of-Sale AdjunctWhen it comes to mobile banking driving economic growth, mPOSsolutions are also becoming crucial to Africa’s economy. mPOS playersinclude JUSP, whose CEO Stefano Calderano believes the bigdifference in emerging countries is that there is no acquiringinfrastructure in place to handle the needs of a wide and diverserange of possible customers. He said that in Nigeria, where there aresome 20,000 plus mPOS machines in the whole country there should,really, considering the size of country, be half a million suchinstallations. And while he agreed that there is a strong trendtowards the cashless society in all emerging countries, he alsopointed out that there is a strong fraud factor in these countries, too.This makes POS infrastructure built on mobile POS much more likelyand preferred, with the possibility that many markets in Africa will gostraight to chip and PIN. Calderano added that in Kenya, the CentralBank, the government and all the local banks are working together toincrease the level of financial inclusion and reduce the cost ofhandling cash, which they believe can be achieved by increasing thenumber of cards in circulation and the number of POS terminals ableto accept them. These developments go hand-in-hand with thegovernment issuing national identity cards with chip capabilities,together with, in some cases, a prepaid card functionality for benefitdisbursements, such as food stamps and healthcare-relatedcontributions. He said that mobile POS terminals can be deployedquickly and connected to mobile telecommunication networks,which are much more reliable than landlines.

And while Africa’s mPOS footprint is at the very early stages, someinternational players are already present in the region, although nonehas made a major inroad into the markets. In Nigeria and Kenya, forinstance, there is a very limited number of traditional POS terminals,

usually limited to large retailers in the major cities’ shopping centres,and usually working intermittently due to slow landline connectivityand frequent blackouts. However, the same countries have veryreliable mobile networks that are already pushing adoption of mobilemoney services like M-Pesa.

Calderano sees each of Africa’s 54 African countries developingat different paces and sustained by different drivers; as a result, keytarget markets for mobile POS infrastructure are the ones that aremoving faster, such as Nigeria, Kenya and South Africa. And whilethere may be additional niche markets, these are largelyrepresented by tourist destinations such as Tanzania and Namibia.But when it happens on a widespread basis it will not be longbefore mobile enabled consumers or chip and PIN carrying userssee intuitive benefits of using plastics or mobiles at mPOSterminals, such as the higher levels of security and conveniencethese solutions will bring. �

According to a report in theHarvard Business Review late last

year, less than 30 per cent of Africa’spopulation have bank accounts with

many fewer having credit cardsof any kind

african Review of Business and Technology - May 2015www.africanreview.com

With mobile banking driving economic growth in Africa,mPOS is playing a crucial role in the economy


Smarter use of data collected from production and bettercollaboration between different parts of the enterprise offerasset-intensive South African companies a significant

opportunity to reduce production disruptions, increase utilisation ofproduction resources and plan more efficiently.

Thabo Ndlela, director of the IFS Africa Board, maintains thatmost of the continent’s local companies in asset intensiveindustries such as mining, oil and gas, energy, and utilities couldpotentially do more to ensure that their systems for production,automation and maintenance work more closely together and in amore integrated manner. This would enable them to achieve betterdata for decision-making, in turn helping them to increase assetreliability and optimise production.

“It’s an opportunity for companies to continuously improve theircompetitiveness,” said Ndlela. “By looking for optimisationopportunities closer to the production process, capital-intensivecompanies can continually improve their ability to produce theright quantity at lower cost and with sufficiently high quality anddelivery precision.”

The market has maturedThe key is to get production and maintenance to work together bybridging the gap between production systems and businesssolutions. According to Ndlela, this will allow executives to use thedata that’s generated in the plant to make better decisions and —in the long term — create a more efficient organisation that betteruses its resources.

He said, “Many of the standards for data exchange today have beenaround for a decade or more. That means that the technical cost ofsharing data between systems is reasonably low today. What’s more,the industry is more aware of how profitable it can be to optimisesystems and processes in this way.”

This creates excellent conditions for improving business processesand getting various parts of an organisation to collaborate better. Onepractical example, is where IFS is working with ABB Holdings tointegrate its business software with the latter’s power andautomation technologies.

Huge amounts of real-time data analysed“In collaboration with ABB, we are striving to give operators on theproduction line better access to the business applications,” saidNdlela, adding that this meant that they can easily transform alertsand events in production to fault reports that move up through thebusiness applications in a seamless flow. “This has been possiblefor some time, but making it work with the latest user interfaces

increases the usability and power of this feature.”With ABB, IFS is closely creating a flow into the business applications

for events captured by the operators. In capital-intensive industries inparticular, every per cent or fraction of a per cent in the form of a keyperformance metric like overall equipment effectiveness (OEE) canpotentially result in large increases in revenue.

Refining the effectiveness of an existing complex flow can be analternative to or complement investing in new equipment. It ismostly a matter of applying technology, organisation andcollaboration — in Ndlela’s words, “efficient analysis of productiondata is ultimately a question of honing your competitive edge andincreasing profitability”. �

DataTECHNOLOGY

28

Using data to improveproductionOperational information represents a potential goldmine for capital-intensive industries, according to IFS

Thabo Ndlela, director of IFS Africa Board


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29African Review of Business and Technology - May 2015www.africanreview.com

To date, many South African businesseshave employed a minimalisticapproach to enterprise mobility,

focusing more on the provision ofcorporate-owned smart devices and VPNconnectivity to corporate resources.

However, according to George Kalebaila,senior research manager fortelecommunications and media at IDC SouthAfrica, organisations seeking to succeed intoday’s ultra-competitive environment mustinvest in an integrated mobility architecturethat directly addresses its business needs.

“Over the medium- to long-term, I expectmany businesses in the country toovercome this reticence as they formalisetheir mobility strategies and employ a moreholistic approach. However, this movecould still be inhibited by key areas ofconcern around the need to protectcorporate data, manage multiple devicetypes and operating systems, integrate withexisting applications, uphold corporatenetwork security, and work within thescope of limited IT budgets,” Kalebaila said.

Enterprising data departmentsSuch considerations feature prominently atIDC’s South Africa CIO Summit 2015, held12-14 May in Johannesburg, South Africa,with the issue of security coming intoparticularly sharp focus given theperceived threat posed by the explosion ofconsumer apps that IT departments haveno control over.

“Data security concerns and the difficultyof separating personal and enterprise dataon smart devices are among the toppriorities for South African enterprisestoday,” he explained.

“Furthermore, the introduction of bring-your-own-device (BYOD) policies inevitablymeans that IT departments will be taskedwith managing a range of differentplatforms that all require differentconfigurations, thereby adding even more

complexity to IT environments that arealready far from straightforward.”

Kalebaila noted that given the inherentchallenges, it was clear that organisationsneed to take a holistic approach toenabling enterprise mobility, and formulatestrategies that not only meet businessneeds but also closely align with theoverarching goals of the organisation.“They also need to formulate securitypolicies that address the challenges posedby enterprise mobility and adopt a phasedapproach towards its implementation,focusing first on mobilising the processesthat are most critical to the organisationand likely to deliver the greatest value.Equally as critical is the need to secure helpfrom a trusted partner capable ofsuccessfully navigating the complexmobility ecosystem.”

Vendor strategiesHe advises that there are numerous issuesthat organisations must bear in mind whendeveloping a coherent enterprise mobilitystrategy and they must begin by assessingtheir true mobility needs and weighing these

up against the preferences of theiremployees. Security and device managementrequirements must also be taken intoaccount, as should the need for any newmobile solutions to integrate seamlessly withexisting applications and systems. Vendorselection is the key in this regard, and specialattention should be given to those providersthat can offer end-to-end support across theentire mobility ecosystem.

“The benefits of rolling out a robust,secure enterprise mobility strategy are clearto see,” said Kalebaila.

“Mobility can be a critical source ofdifferentiation, and it most certainlyfacilitates the agility required to respondquickly to a rapidly changing businessenvironment. It also increases productivity,drives the efficient use of corporateresources, and enhances employeeflexibility and quality of life. And on top ofall this, it allows for more informedmanagement decisions, drives a reductionin procedural delays, and improves theeffectiveness of the sales force by providingreal-time access to customer information,”he concluded. �

A holistic approach toenterprise mobilitySouth African businesses must tailor their mobilitystrategies to meet wider business needs

The event aims to solve key business challenges, in particular,the ability to network and learn from industry peers through

essential business conversation

Enterprise TECHNOLOGY

S08 ATR May 2015 - Technology Report_Layout 1 24/04/2015 13:11

According to Timetric’s Construction Intelligence Center (CIC),major economies in the Africa and Middle East are set toinvest over US$717bn in power generation projects in the

coming years to increase generating capacity by 379GW. Report entitled Project Insight: Power Generation Construction

Projects in Middle East and Africa revealed that South Africa atUS$118bn and Nigeria with US$95bn come right after Saudi Arabiain terms of project investments, out of the 21 countries analysed.

The developing countries of Africa such as Mozambique, DRCongo and Tanzania have growth in excess of seven per cent GDPand their governments are investing heavily to reduce the frequentpower failures which afflict their economies.

Timetric estimated that of the US$717bn of power generationprojects planned or underway in the countries studied, nuclearenergy dominates with US$183bn value of projects headed by SaudiArabia, followed by gas projects with US$142bn — led by Nigeria.

Solar power is in third place valued at US$122bn, again headedby Nigeria, with projects in 17 of the countries studied, showing thecommitment of the countries’ governments to encouragerenewable sources. The countries in the report include Algeria, DRCongo, Egypt, Ethiopia, Ghana, Iran, Iraq, Jordan, Kenya, Kuwait,Morocco, Mozambique, Nigeria, Oman, Qatar, Saudi Arabia, SouthAfrica, Tanzania, Tunisia, UAE and Zimbabwe, which have more than 75 per cent of the projects worth US$542bn at the pre-construction stage.

Timetric CIC manager Neil Martin said, “The developing countriesin Africa are showing high growth in their economies but need tocreate and maintain reliable power generation infrastructure fortheir populations and industrialising economies. Solar, hydroelectricand wind schemes figure largely in many African countries’ powergeneration strategies. The Middle East economies are seekingrenewable sources of power, whether biomass or solar; however,Saudi Arabia is still the leading user of oil for power generation andlike its UAE neighbour is investing in mega nuclear projects.”

The largest value project tracked by Timetric CIC is the US$100bnKing Abdullah City for Atomic and Renewable Energy in SaudiArabia, which is planned for 2016. Other major projects in theregion are the US$30bn Barakah Nuclear Power Plant in the UAE,which is already underway, and the US$30bn solar power plant inNigeria, which is at the planning stage.

Meanwhile, renewable development and management companyEnel Green Power (EGP) has announced that it is a successful bidderunder the fourth round of South Africa’s Renewable EnergyIndependent Power Procurement Programme (REIPPP) securing a425MW contract with Eskom for the development of three windpower projects.

The three projects will be constructed in the Eastern Cape andNorthern Cape provinces where wind resources are plentiful —142MW Oyster Bay to be completed and online in 2017; 141MWNxuba to be completed and online in 2017; and 142MW Karusa tocome online in 2018.

EGP said the three plants will require a total investment ofUS$534.6mn and once in operation will have a generation capacityof 1,560GWh per annum.

Nigeria too is in talks with Russia’s Rosatom Corp. to build asmany as four nuclear power plants costing around US$80bn, asAfrica’s biggest economy seeks to add 1,200MW of capacity by theend of the decade.

“A joint coordination committee is in place and negotiations areongoing for financing and contracting,” Nigeria Atomic EnergyCommission chairman and chief executive officer Franklin ErepamoOsaisai said, adding, “We are meticulously implementing our plans.”

The West African nation signed an agreement with Rosatom tocooperate on the design, construction, operation anddecommissioning of a facility in 2012. A further three nuclear plantsare planned, taking total capacity to 4,800MW by 2035, with eachfacility costing US$20bn, Osaisai said. The first Nigerian plant will beoperational in 2025. �

RenewablesPOWER

30

Power projects set tosoar in AfricaReport highlights increasing investment in renewable energy in Africa and the Middle East

A photo voltaic solar power installation in a rural area of South Africa, utilising theabundance of solar energy in summer


S09 ATR May 2015 - Power 01_Layout 1 24/04/2015 13:12

Blessed with the highest concentrationof sunlight in the world, more than 85per cent of the African continent

receives more than 2,000 kW hours per sqmetre per year of solar energy.

This is equivalent to around 49 per cent ofthe world’s solar energy, which is more thandouble the rate in Australia where 6.08mn sqkm of its territory receives over 2,000 kWh/sqm of solar energy per year. In the Middle East,2.59mn sq km of land receives more than2,000 kWh/sq m of solar energy per year.

By contrast, in the whole of EU, just 23,957sq km of its territory receives more than therequisite 2,000 kWh/sq m of solar energyper year.

The sheer paucity of solar powerinstallations in Africa means that over thedecades the continent has failed to takeadvantage of the potential benefits of anendlessly renewable energy resource.

With a population of 910mn, the whole ofsub-Saharan Africa currently consumes only145 terawatt hours of electricity a year.

A notable exception has been SouthAfrica — the only country in the continentwith a photovoltaic power station of morethan 50 MW.

But there are tantalising signs that thiscould be the year when things begin tochange and Africa’s woeful decades-longhistory of ‘under-electrification’ could soon bea thing of the past.

Underpinning this electrical revolution isthe declining cost of solar power and the fallin the price of light-emitting diodes (LEDs)that are the source of the new generation oflight bulbs. The third crucial revolution is inpower storage.

An Economist report suggests that thecapacity needed to produce a watt of solarpower (enough to run a small light) has nowcome down to US$1 from US$4 in 2008. Andthe simplest solar-powered lamps now costaround US$8.

The sales of devices that are approved bythe IFC/World Bank’s ‘Lighting Africa’programme are believed to be nearlydoubling annually. In 2009, just one percent of sub-Saharan Africans without accessto electricity used solar lighting. Now, saysthe International Energy Agency (IEA), it isnearly five per cent. It estimates that by2030, 500mn people who are currentlywithout electricity will have at least 200watts per head because of solar power.

The benefits of solar power will augmentvirtually every aspect of African society, saysCharlie Miller of the charity SolarAid.SolarNow, a Ugandan company hasdeveloped a US$200 low-voltage television

set that runs on the direct current (DC) usedby solar systems. And a British-designedfridge called Sure Chill that needs only a fewhours of power a day to sustain atemperature of 4ºC has been unveiled.

In South Africa, a company has evensucceeded in launching solar-powered ATMsfor rural areas with intermittent mains power.

In a recent article for the National LawReview, Mipe Okunseinde of the law firmCovington & Burling LLP and Adele Faurewrote that an impressive number of solarprojects are now coming online across thecontinent and, crucially, more are in thepipeline.

In Rwanda, Gigawatt Global has completed

RenewablesPOWER

32

Solar power ‘revolution’taking shape in AfricaThe continent is now seeing vast investments from foreign companies who are looking at the opportunity this upcoming industry presents

In a recent article for the National Law Review, Mipe Okunseinde of the law firm Covington & Burling LLP and AdeleFaure wrote that an impressive number of solar projects are now coming online across the continent and, crucially,more are in the pipeline



POWERRenewables

33

the construction of the first utility-scale PVplant in the East Africa region. In WestAfrica, construction is underway at theNzema solar plant in Ghana, which, with aprojected capacity of 155 MW, will be oneof the top ten largest PV plants in the worldwhen completed.

In addition, Nigeria has signed an MoUwith a South Korean firm to develop a 1 GWsolar PV farm. Last November, Ventures Africareported that the USA investmentconsortium Motir Seaspire, had signed anMoU with the Nigerian government todeliver 1,200 MW of solar-powered electricityin the country by 2017.

Other countries, including Côte d’Ivoireand Uganda, have also initiated tenders forsolar projects. In Garissa, Kenya, a 50 MW PVpower plant is expected to produceapproximately 76,473 MWh/year while inGhana, a 155 MW PV power plant is due forcompletion this year.

In mid-March, the Public Investment Corp.(PIC), Africa’s biggest investment manager,announced that it was investing in two SouthAfrican solar power plants worth US$1.8bn.The PIC has taken a 20 per cent stake in eachof the two facilities in the Northern CapeProvince, which will have a combined 200MW of energy, the Pretoria-based companysaid in a statement.

But the greatest promise for solar powerlies in the sun drenched lands of the Saheland in North Africa. Morocco’s solar plan isthe most ambitious on the continent andincludes one of the world’s largest solarenergy projects that is estimated to costabout US$9bn.

The project was introduced in November2009 with the aim of establishing 2,000 MWof solar power by 2020. Five solar powerstations are to be constructed. These willcombine a number of innovativetechnologies including concentrated solarproduction (CSP); Parabolic Trough and PV.

The Moroccan Agency for Solar Energy(MASEN), a public-private venture, has beenestablished to lead the project. The first plantwill be commissioned in 2015 and the entireproject in 2020. Once completed, the solarproject will provide 38 per cent of Morocco’sannual electricity generation.

The solar power complex at Ouarzazate isthe first to be developed. Constructionofficially began in 2013 and the 500 MWproject is divided among three projects: a160MW CSP project; a 200 MW parabolicmirror plant, and a 150 MW solar troughplant. The first part of the project is set toproduce 160 MW of power by 2015.

In neighbouring Algeria, the first industrialscale solar thermal power project wasinitiated in 2011 with the inauguration of

the Hassi R’Mel integrated solar combinedcycle power station. This Hybrid powerplant combines a 25 MW concentratingsolar power array in conjunction with a 130MW combined cycle gas turbine plant.Algeria has also launched a nationalprogramme to develop renewable energybased on PV and CSP as well as wind power.The programme consists of installing up to12 GW of power generating capacity fromrenewable sources to meet the domesticelectricity demand by 2030.

So what are the outstanding obstacles thatprevent Africa from realising its solarpotential? These boil down to a lack of gridconnectivity and infrastructure and the slowpace of makers of mass-market appliances torecalibrate their products away from mainselectricity and towards the low-voltage directcurrent (DC) produced by renewable energysources and batteries.

With regards to grid connectivity,Okunseinde estimates that two-thirds ofthe region’s population are not connectedto the grid. This means that off-grid

solutions are as important as the utility-scale, grid-connected projects.

In February, the IFC invested US$4.5mn inOff Grid Electric. This is a micro-solar leasingfirm that circumvents the problem of high up-front installation costs of solar PV by allowingrural customers to pay incrementally for theinstallation over time.

Other companies like M-KOPA Solar,Greenlight Planet, Azuri Technologies, FenixInternational and BBOXX, are pioneeringfinancing mechanisms for off-grid solar, suchas ‘pay-as-you-go’ approaches and mobilepayment platforms.

Venture capital and private equity firms arealso paying increasing attention andproviding funding to the off-grid space aswell. In the first two months of 2015 alonethey have invested approximately US$35mnin off-grid solar tech companies, compared tothe US$64mn invested in the whole of 2014,said Okunseinde.

But in the technology realm, industry hasbeen slow to take advantage of the newopportunities presented by solar power. Theindustry ‘holy grail’ for Africa is said to be acheap, efficient and reliable DC fan. Lowincome consumers will also need to bepersuaded that their purchases will be robust.

When all is said and done though, thebenefits of providing mass electrificationthrough solar power far outweigh the costs.As Onyedimmachukwu of Ventures Africapointed out, if the US$23.7mn cost to Rwandafor the launch this February of its 8.5 MWsolar field was scaled up, then the US$16bnspent by the Nigerian government under itsformer president Olusegun Obasanjo, wouldhave brought Nigeria up to 6,000 MW ofelectricity — more than double the country’scurrent output. �

— Nnamdi Anyadike

Underpinning thiselectrical revolution

in the continent isthe collapsing cost of

solar power and thefall in the price

of light-emittingdiodes (LEDs) that

are the source of thenew generation of

light bulbsAfrican Review of Business and Technology - May 2015www.africanreview.com

Venture capital and private equity firms are providing funding to the off-grid space as well – in the first two months of2015 alone, they invested nearly US$35mn in off-grid solar tech companies, compared to US$64mn throughout 2014


W ith the looming threat of loadshedding becoming a regularoccurrence in South Africa as a

result of a shortfall in coal-generated powersupply, local investors are turning to moresustainable alternatives such as concentratedsolar plant (CSP) technology.

Industrial gases market leader Afrox hasbeen awarded a long-term contract to supplyhigh-purity nitrogen and liquid petroleumgas (LPG) to the US$565mn Bokpoort CSPProject, located approximately 125 kmsoutheast of Upington. The project will boasta 50 MWe generating capacity with ninehours of thermal storage once it is fullycommissioned by the end of 2015.

Afrox business manager for bulk ASU gasesCarte Lubbe recently said that the companystarted supplying Bokpoort CSP with a fullycustomised turnkey solution unique to the

local market. He said, “LPG will be used by theCSP during the start-up phase for melting ofsalts for the Thermal Energy Storage system,whereby the transfer medium is heated to thepoint that it transforms from a solid state intoa molten state.”

Maintaining a modular supplyThe substantial amount of LPG is, however,only required during the heating phase of theproject. As a result, Afrox has designed aninnovative modular supply system that willbe installed and can be dismantled andremoved from site within days, therebyensuring minimal project disruption.

Lubbe noted, “Following the heatingperiod, the entire LPG supply plant will beremoved from site. Similar projects in the pasthave made use of fixed installations thatbecome redundant after the start-up phase

and take up unnecessary space, while costinga fortune to maintain. Upon servicecompletion, our unique modular plant can beremoved by a fleet of dedicated andspecialised vehicles in under a week – anunrivalled turnaround time.”

“Our teams were on site in mid-March atBokpoort to install the temporary LPGstorage facility and to oversee the first LPGbeing delivered.”

Lubbe believes that this project hasstrengthened Afrox’s position as the leadingLPG supplier in South Africa. He noted, “This isevidence that Afrox has the capability toprovide comprehensive end-to-end energysolutions on a small residential scale, right upto multi-million dollar projects such as this.”

Following the heating of the molten salts, ablanketing system is required in order tominimise the risks due to flammable

RenewablesPOWER

34

Light at the end ofthe tunnelSouth Africa’s energy crisis could be managed betterwith investment in CSP technology

The project will boast a 50 MWe generating capacity with nine hours ofthermal storage once it is fully commissioned by the end of 2015



products, as well as minimising theemissions to the atmosphere and to avoidthe deterioration of process fluids. For thisreason, the plant will include a nitrogennetwork that will provide an inertatmosphere to the salt storage tanks, theexpansion tanks and the high temperaturefluid boiler.

New supply to meet specific needsThe company has been working togetherwith Bokpoort CSP to develop a nitrogensupply system to meet its specific needs.Lubbe reported, “As a result of the criticalneed for nitrogen, special care was taken toensure that all aspects of demand andsupply had been considered. The nitrogensupply system comprises an on-sitenitrogen production system, backed up by ahigh pressure liquid nitrogen storage andsupply system.”

The on-site nitrogen generating facility issupplied by Afrox’s parent, the Linde GroupEngineering division, while the cryogenicstorage facility and custom designednitrogen reticulation system is supplied byAfrox. A long-term nitrogen supplyagreement between Afrox and BokpoortCSP has been concluded, ensuring an

uninterrupted and reliable nitrogen supplyto the project.

Due to the location of Bokpoort CSP, Afroxsaid that it is able to supply the back-upliquid nitrogen via road from several of itsregional operations across South Africa, thusproviding even more security in supply.

In addition to using LPG and nitrogen

supplied by Afrox, the Bokpoort CSP alsomade use of the company’s extendedproduct range of welding gases, hard goodsand consumables during the constructionstages. Lubbe said, “Afrox has provided acomprehensive and holistic solution toBokpoort CSP, which will lead to a long-termand mutually-beneficial partnership.” �

POWERRenewables


A long-term nitrogen supply agreementbetween Afrox and Bokpoort CSP has beensigned, ensuring an uninterrupted andreliable supply of nitrogen to the project


The sun will be largest source of powerby 2050 — ahead of fossil fuels, wind,hydro and nuclear, according to

‘technology road map’ reports published bythe International Energy Agency (IEA). Thereports predict, also, that solar photovoltaic(PV) systems could generate up to 16 per centof the world’s electricity.

The population growth in the years tocome will most likely result in a strongerdemand for energy and as such, thecountry’s electricity grid will be under hugepressure. It is inevitable that nuclear andfossil fuels risk becoming strandedinvestments, and it is therefore in SouthAfrica’s best interest to decrease reliance onthese fuels. The mindsets of South Africansneed to change to such an extent thatcutting back on such fuels and replacingthem with renewable options are not aburden, but rather a prerequisite.

Push for PVSouth Africa has abundant solar resourcesavailable and is in an exceptional position toinvest in renewable energy solutions such asPV solar energy, as the sun produces around2,500 hours of sunshine each year in SouthAfrica. For this reason, there needs to be abigger push for PV solar energy to replacefossil fuels for electricity generation. Large-scale photovoltaic solar power can be quicklyand economically developed to increase thesupply of electricity to national grids andimprove the reliability of power services forhouseholds and businesses.

Solar energy is quickly becoming acompetitive energy source. A key reason forthis is that the cost of PV solar generation isalmost entirely up-front in that there is acost of purchasing and installing thecomponents, but it requires littlemaintenance, no fuel and operates withpredictable output for approximately 25years. These factors are not easy to predictwith other forms of energy generation.

South Africa is showing signs that arenewable energy shift is on an upwardtrajectory. International investors areshowing continued interest in renewableenergy investments in the country due to

the progress which South Africa is making,such as the signing off of 47 projects in thefirst and second rounds of the RenewableEnergy Independent Power ProducerProcurement Programme (REIPPPP),bringing the total amount of projectsapproved by the government to 64 sinceDecember 2011. Two of these projects, DeAar Solar Power and Droogfontein Solarhave attracted investments of over R120bn(US$9.9bn), much of which can be attributedto direct foreign investment. A furtherexample is that of George airport, whichrecently announced that it will be the firstnational airport to partially run on solargenerated power.

The reality of renewable energy In a recent statement by Greenpeace inresponse to the IEA’s ‘technology road map’reports, global energy policy makers werecalled upon to accept the reality of

renewable energy and adapt the energymarket accordingly. This will only be possibleif policy frameworks enable investors toobtain finance to invest in renewable energyprojects such as PV solar. There, therefore,needs to be continued investment andsupport from the public and private sector.The World Bank Group’s ‘Scaling Solar’programme to boost access to modernalternative energy across Africa through anew solar energy scheme is one suchexample which provides a straightforwardpackage to help countries determine the sizeand location of projects, and then auctionthem competitively to developers.

Projects such as these, which replacefossil fuels and nuclear fuels withrenewables, will enable South Africa tobecome more energy sufficient. �

— Arthur Chien, V-P of Talesun Energy inSouth Africa

SolarPOWER

36

South Africa goes solarThe debate over how nuclear, fossil fuels and renewable technologies canaddress South Africa’s energy issues

South Africa’s George Airport recently announced that it will be the first national airport to partially run on solargenerated power



The V.H. Group of companies, with its head office and workslocated in the historical province of Ferrara, in Northern Italy,near Venice, consists of five international companies having

operations located in Italy, United Kingdom, China, Brazil andAustralia.

The Italian company Vortex Hydra has extensive experience in thedesign and manufacture of gate, large valves, and relatedhydraulic/electrical equipment that in addition to new projects canalso include the refurbishment and renewal of hydro-electric powerplants.

In 2013 Vortex Hydra signed a contract to undertake the designand manufacture of the electro-mechanical equipment required fora cross river regulator in the Middle East. The regulator isconstructed to provide three main objectives which are navigation,irrigation and the production of electrical power.

The water management for the regulator is achieved by theconstruction of the following structures:

Barrage to control upstream water level – equipped with7no.radial gates (12 x 6.5m) with the facility for both upstream anddownstream stop logs to be installed. Stop logs are supplied withtheir own handling equipment.

Lock to allow navigation along the river – the lock is 200 x 20m insize and is equipped with 2no.miter gates and 4no.culvert gates (2 x2m) all having the facility for both upstream and downstream stoplogs to be installed. Stop logs are supplied with their own handlingequipment.

Feed water diversions (2no.) – to allow irrigation on both sides ofthe river. They are equipped with 2no.fixed wheel gates with thefacility for both upstream and downstream stop logs to be installedto control the water feeds used for irrigation.

Fish ladder with auxiliary water supply - to connect upstream anddownstream sides in the barrage to allow fish passage.

Vortex made all the necessary calculations and drawings to allowconstruction to commence as required by the general contractspecifications edited by the Ministry of Water Resources. With theproject approvals finalised in July 2014, Vortex Hydra produced thedetailed drawings to enable the manufacture of the equipment intheir Italian workshop to commence in association with theprogramming of the civil works on site.The equipment manufacturing programme was scheduled asfollows:I - total embedded parts to be delivered by October 2014II - all radial gates to be delivered by December 2014III - all required stop logs to be delivered by June 2015IV - all miter gates and the remaining equipment for irrigation to be

delivered by June 2015V - all pertinent actuation devices (for II, III, IV parts) by October 2015VI - general controls for the cross regulator by October 2015

The first (I) and second (II) phases above were completed inaccordance with the program and the manufacture of the otherphases are proceeding to schedule. The equipment was successfullytested in the Italian works, dismantled for deliver and finallyassembled on site. All components were designed to enable them tobe containerised for shipment. In total it is envisaged that50no.containers will be required for delivery of stages I, II, III and IVwith 10no. or more containers required to ship the remainingdevices and controls. The total weight of steel structure is estimatedto be in the order of 1,100 tonnes.

In addition to the above Vortex Hydra have also provided thespecifications for complete automation, lifting equipment and willalso assist the customer in the erection and commissioning stage. �

EquipmentPOWER

38

Electromechanical solutions The Vortex Hydra turnkey solution for mainelectro-mechanical equipment

Vortex Hydra has rolled out a turnkey solution for electro-mechanical equipment



A frica’s struggle for development andindustrialisation is tied to a vitalprecondition – the availability of

affordable and reliable energy.There were a couple of notable aspects to

this year’s Africa Energy Indaba. For the firsttime, one day was given over exclusively to a‘Women in Energy Conference’. And the WorldEnergy Council also hosted a TrilemmaMinisterial and Energy Leaders dialoguemeeting – held in camera but focusing on theWorld Energy Council’s ‘Year for Africa’initiative that will culminate at its ExecutiveAssembly in Addis Ababa in October.

As the World Energy Council Secretary-General, Dr Christoph Frei, stated at theEnergy Indaba: “Africa is a continent withsignificant potential for the energy sector. Asour World Energy Scenarios have alreadyhighlighted, we can expect in the region ofUS$1 trillion to be invested in electricitygeneration alone in sub-Saharan African by2050.

“And with almost 30 per cent of global oiland gas discoveries having been made overthe last five years in sub-Saharan Africa, thecontinent is at the centre of the new energyopportunity.

“The key challenge is to ensure that thisnew energy opportunity is unleashing thelocal value chain, and not simply translatinginto a gold rush.”

Fine words, and fine objectives, but thescale of the challenge, perhaps best summedup by the UN’s Sustainable Energy for Allprogramme, remains daunting. For in sub-Sahara Africa, fewer than one in three peoplehave access to grid electricity.

According to the International EnergyAgency, in its 2014 Africa Energy Outlookreport, “In sub-Saharan Africa as a whole, only290mn out of 915mn people have access toelectricity, and the total number withoutaccess is rising.

“Efforts to promote electrification aregaining momentum, but are outpaced bypopulation growth. Although investment innew energy supply is on the rise, two out of

every three dollars put into the sub-Saharanenergy sector since 2000 have beencommitted to the development of resourcesfor export.”

Three days of intense discussions at theAfrica Energy Indaba took the debateforward, the opening day devoted to theissue of gender in the energy sector.

The following day, following a high-levelplenary session, the conference proper gotunder way with pairs of breakaway panelstackling various issues – from nuclear energyfor Africa to energy efficiency technologies;oil and gas to renewable energy; financeoptions to skills development; and regionalintegration and the energy-water nexus.

The Indaba ended with a final plenarysession moderated by the WEC’s SecretaryGeneral, Christoph Frei.

Variability across the continent is clearly afactor in assessing Africa’s energy landscape.But there are some commonalities such asthe mismatch between demand and supply.

For although there is almost anembarrassment of riches when it comes tosub-Saharan Africa’s power generationpotential, with no less than 10TW (terawatts)of capacity, across a number of technologiesincluding gas, coal, hydro, geothermal,biomass, wind and solar ready for

development, demand continues to hugelyoutstrip supply.

Coal and gas represent relatively low-hanging fruit, and the former is certainly thecurrent path chosen by the Indaba’s hostcountry, South Africa.

Indeed, the Indaba took place in Februaryjust days after the country’s President JacobZuma gave his State of the Nation where heaccepted the parlous energy situation. Hesaid: “[South Africa] is currently experiencingserious energy constraints, which are animpediment to economic growth and a majorinconvenience to everyone in the country.”

Yet, in Africa, only Mozambique has greaterpotential to generate electricity than SouthAfrica. Stripping out the contribution thatsolar might make, Mozambique has the gas,coal, hydro and wind resources to generatearound 190GW of power. South Africa has anestimated 180GW, but the make up isdifferent – Mozambique’s primary potentialresource is gas while South Africa’s is coal.

Coal is the dirtiest of the hydrocarbonenergy sources, yet South Africa still relies onthe mineral for 70 per cent of its totalelectricity generation with two giant newcoal-fired power stations, at Medupi andKusile, nearing construction completion.

Medupi is closest to becoming operational,

Energy IndabaPOWER

40

Towards a brighter AfricaEach year, Africa’s energy leaders assemble at the Sandton ConventionCentre in northern Johannesburg for the Africa Energy Indaba, this year inits seventh edition. Stephen Williams reports


Africa Energy Indaba was held innorthern Johannesburg, South Africa


with the power utility Eskom predicting full power from the plant’sUnit 6 being reached by the end of May 2015.

The first 800MW unit was synchronised to the national power grid inearly March, being tested and optimised to enable its full integrationinto the national grid. Once the other five units are completed the4,800MW power plant will provide 12 per cent of Eskom’s installedcapacity. But, as an alternative to conventional hydrocarbons such ascoal, gas or oil, renewable energy is being touted as offering a possiblesolution to help South African utility Eskom overcome its growingenergy crisis.

South Africa’s Council of Scientific and Industrial Research (CSIR) inits Financial Benefits of Renewables in South Africa 2014 report,published in January 2015, confirms, according to South AfricaRenewable Energy (Sarec) board member Mike Levington, “theeconomic value of renewable energy to the South African electricityconsumer”.

That value has also been recognised by a number of financialinstitutions, including the country’s oldest investment firm andbiggest pension fund, the Public Investment Corporation (PIC), thathas has paid just over R1bn ($81mn) to buy stakes in two solar powerstations in the Northern Cape province.

The state-owned PIC said it has taken 20 per cent stakes in Ilangaand Xina power stations, which are expected to add 200MW of powerto the national grid. The projects are worth a total of R22bn(US$185mn), PIC said.

The CSIR report shows that the net cost of South Africa’s renewableenergy in 2014 was less than zero, with South Africa’s first wind andsolar projects last year delivering R800mn (US$69mn) more in financialbenefits for the country than they cost.

The report also demonstrated that the 1,600W of renewable energyinstalled by the end of 2014 had saved the country R5.3bn(US$455mn) in fossil fuels such as diesel and coal, and helped to avoid‘load shedding’ (South Africa’s euphemism for electricity cuts) whilecosting the country only R4.5bn (US$385mn) in tariffs.

Stellenbosch University’s Professor Wikus van Niekerk says that

“renewable energy, particularly wind and PV, are fuel-savers and cantherefore, make a significant contribution in the current constrainedperiod, saving Eskom and the country money”.

He adds that rooftop PV projects, put in place by Eskom, need to beaddressed to allow even Eskom-subsidised projects to connect to thegrid. A reasonable feed-in tariff for rooftop PV – lower than at theEskom generation cost at coal-fired power stations Medupi and Kusile– could facilitate a number of rooftop PV projects to come onlineduring 2015.

One of the latest developments has been the completion of MANTruck & Bus SA’s (MTBSA) grid-connected R15mn (US$135mn) solar PVassembly facility rooftop array in Durban, capable of generating over800,000 kWh of power a year, with any surplus of energy to be fed tothe eThekwini metropolitan grid.

Meanwhile, the Sustainable Energy Society of Southern Africarepresentative Carryn Bateman noted that rooftop solar PV was“perhaps the fastest supply-side solution available”.

Nevertheless, solar PV panel arrays are also being developed inutility scale energy developments such as the 75MW Kalkbult plantthat covers the equivalent area of 140 soccer pitches. Further afield, inGhana, the US$400m, 155MW Nzema project is scheduled forcompletion this year, and in Rwanda, East Africa’s first utility-scale pvsolar, a US$23.7mn project, was completed and linked to Rwanda’snational grid.

Equally exciting is the rapid development of concentrated solarpower projects in South Africa. The first, which is nearing completion,is the 50MW project at Uppington in the Northern Cape. Dubbed theKhi Solar One, and built on a 14ha site, it consists of an array of mirrorsthat focuses solar energy on a central tower, boiling water to driveturbines. �

POWEREnergy Indaba


Africa Energy Indabadiscussed renewableenergy sources in Africa


Middle East Electricity (MEE), held from 2-4 March 2015 inDubai, provided the backdrop for the first-ever jointpresentation by Rolls-Royce for the product portfolio available

from MTU Onsite Energy and Bergen Engines. The company showcasedhigh and medium speed diesel and gas gensets in the 24 kWe to 9,400kWe range. MTU Onsite Energy and Bergen Engines are part of Rolls-Royce Power Systems within the land and sea division of Rolls-Royce.

“We see great market potential in the Near and Middle East for ourextensive range of power generation products. That is why we havenow strengthened our onsite presence with a new regional subsidiarybased in Dubai,” explained Matthias Vogel, head of power generationbusiness at Rolls-Royce Power Systems. MTU Middle East providessupport for distributors and business partners associated withproducts from MTU and MTU Onsite Energy and with land-basedBergen Engines products in 21 countries in the Near and Middle Eastas well as in North Africa.

At Middle East Electricity, MTU Onsite Energy presented its rangeof high-speed diesel gensets up to 3,250 kWe and gas enginesystems up to 2,530 kWe. A diesel genset based on the newgeneration of MTU Series 2000 engines was at the stand. Offeringcommon rail technology and delivering up to 1,120 kWe, the newgenset is quieter, more efficient and more compact than unitspreviously available. Its power range is also around 12 per centgreater than that of its predecessor.

For the first time, Open Air Stand OS3, a 20-foot container gensetfrom MTU Onsite Energy, was displayed that is based on the advancedversion of the Series 2000. Other exhibits included a modelcontainerised Power Module with a 16V 4000 diesel genset and themodel of a gas system based on MTU Series 4000 engines. Thesystems for decentralised power generation of MTU Onsite Energy areable to cover both continuous and emergency or peak powerrequirements and, therefore, have a critical role to play in specialapplications such as airports, hospitals and data centres. They canlikewise operate as power generation plants delivering for base andpeak load supply applications.

The Rolls-Royce medium-speed power generation solutions aresupplied by Bergen Engines. The stand at MEE 2015 included a modelof a generator set based on a 20-cylinder B35:40 gas engine. Powergeneration systems based on these gensets are currently in operation

in power plants in Indonesia, Tanzania andCzech Republic. Diesel and gasgensets from Bergen Enginescover a power range from 3,700kWe to 9,400 kWe with completeelectricity generation systemsoffering total supply capabilitiesin excess of 200 MWe. Thegenerator sets are characterisedby robust design coupled withleading nominal electricalefficiency ratings of up to 48.5per cent. Applications includebase-load generation for energyproviders, grid supply balancingand peak-load supply,cogeneration (CHP) andtrigeneration (CHCP) plants,

emergency power andmechanical drives for the oil andgas sector. �

GeneratorsPOWER

42

Roll-Roycegensets are a powerhouseUnder the MTU and Bergen brands, Rolls-Royce Power Systems showcaseddiesel and gas gensets at MEE 2015

For the first time, Open Air Stand OS3, a 20-foot container genset from MTU OnsiteEnergy, was displayed that is based on the advanced version of the Series 2000


We see great market potential inMiddle East for our extensive range of

power generation products. at iswhy we have now strengthened ouronsite presence with a new regional

subsidiary in Dubai”


S12 ATR May 2015 - Construction 01_Layout 1 24/04/2015 13:14

Irfan Hobaya, an architect based in Kenya’s Mombasa County knowsonly too well the burden of submitting an application for aconstruction permit. To apply, he has to physically go to the county’s

Planning and Development Department, carrying in hand all thebuilding plans and documents, before following up on the progress ofhis application using an agent or a middleman.

Hobaya said, “The process is lengthened when documentssubmitted go missing, and tracing them becomes an ordeal.”

However, the World Bank Group is helping to improve this. With thesupport of a Kenya Investment Climate programme, which supportsboth national and county governments in the design and deploymentof business-enabling solutions aimed at improving theircompetitiveness, a three-year initiative financed by UK Aid and theDutch government, Mombasa County launched an electronicconstruction permits system in early March 2015. The programme teamcollaborated with the county to design, develop, test, and deploy theonline system.

Faster review with fewer resourcesThe automated construction permit system will reduce the time neededto review applications and ease the burden on county officers. Thepreviously lengthy and complex process often created a backlog. Now,reviewers can simultaneously assess and comment on applications,reducing the time to issue a permit to between three days and, at most,20 days to a maximum of three days. The automated system will alsoenable higher volumes of issued construction permits than the presentmonthly average of 80, without increasing human resources.

The new electronic system eliminates physical documents andarchives all building proposals submitted, working in an entirelypaperless manner. It will streamline and make the process of reviewingsubmissions more transparent as applicants will be able to monitor thestatus of their application in real time, through a web and SMS-basedtracking and notification system. This system also has the potential toring-fence building permit fees that are a critical revenue stream for thecounty.

Lastly, the electronic system is expected to increase compliance inthe industry through simpler processes, more efficient monitoring andenforcement, and a proper record of inspections, ultimately enhancingpublic safety.

“The County of Mombasa is experiencing rapid urbanization andconstruction projects are increasing in number all around the county,”said HE Hassan Joho, Governor of Mombasa County. “The launch of thee-construction permit therefore comes at a critical time for the county.Citizens are demanding fast, efficient and transparent public services.The e-construction permit will enable us to not only deliver on ourmandates but also significantly improve the county’s businessenvironment.”

Permitting growthFor Manuel Moses, who leads IFC’s activities in East Africa, “Automatingconstruction permits will lead to an improved investment climate inthe counties by easing the burdens on business such as logistics, andunexpected costs through middlemen or liaison officers. This will helpbusinesses to conduct their operations more simply, leading to costsavings and enabling them to grow.”

Moses also believes that the electronic system will create anenabling business environment that will attract more investors toMombasa County and elsewhere in the country. The system isexpected to boost construction, a key contributor to economic growthand job creation, and can be replicated not only in other Kenyancounties but also other countries in the region as well.

Currently, 11 e-construction permit projects in Kenya, Rwanda andLesotho have been completed or are awaiting implementation.Catherine Masinde, head of the World Bank Group’s Trade &Competitiveness Global Practice for East & Southern Africa, stressedthe need to be sensitive to the interests of businesses in their revenue mobilisation efforts and added that systems such as the e-construction permit can play an important role in consolidatingcounty revenue while paving the way for further automation of similarrevenue streams. �

Infrastructure CONSTRUCTION

44

Easy and automaticpermit processing

The World Bank Group enables Kenyan county administrationsto automate their construction permits

The automated construction permit will reduce the time needed toreview applications and ease the burden on county officers



Murray & Roberts Resources &Industrial and Murray & RobertsElectrical & Control Systems, located

within Murray & Roberts’ Energy & Industrialoperating platform, are playing a major rolein boosting skill levels in the South Africanconstruction industry. Both companies offer atotal solutions approach in terms of electrical,instrumentation and mechanical engineeringand construction. Khanya Magudulela,human resources manager for Murray &Roberts Resources & Industrial, said, “Thecapacity and capability of our employees isfundamental to the strengths of our companyand the larger role it plays in the SouthAfrican construction industry.”

Both companies are actively involved withthe Engineering Council of South Africa(ECSA) in meeting the growth anddevelopment targets of the Accelerated andShared Growth Initiative of South Africa(ASGISA).

“It is our aim to be an employer of choice inthe engineering and construction sectors, asthis will enable us to deliver a world classservice. This is also a direct reflection of ourdiverse and experienced workforce,” saidAmelia Phillip, human resources manager forMurray & Roberts Electrical & ControlSystems.

Both companies’ employee managementapproach is supported by policies, processesand frameworks that inculcate a culturewhich drives high performance whileremaining compliant with all the necessarylegislation and regulations. A key focus here isthe companies’ proactive environmentalmanagement policy to minimise anypotentially negative impacts.

Motivating staff, taking responsibilityIn terms of health and safety,STOP.THINK.ACT.24/7 is the Murray & RobertsGroup’s global brand aimed at educating andmotivating employees to take responsibility

for their own and their colleagues’ safety athome and in the work environment. “Safety isa fundamental part of everything we do as acompany. From the workplace to the job site,it is the responsibility of every singleemployee,” Phillip said.

In addition, training and developmentremain a key focus for both companies toensure that their employees are able toperform their duties effectively and safely, aswell as helping them realise their individualpotential. In this regard, specific programmesare offered by external service providers suchas the Gordon Institute of Business Science(GIBS), with the aim of fostering leadershippotential among employees.

“Our Graduate Development Programmeequips graduates with the people andmanagement skills necessary to succeed intheir careers. We also offer bursaries forstudents studying towards qualifications inthe fields of engineering, quantity surveyingand building/construction management,”Magudulela said. Phillip added that theprogramme affords young people the

opportunity to gain experience in theirchosen field.

“Skills are vital for sustainabledevelopment. However, skills development isnot often sufficient in itself,” Phillip noted. Inaddition to the various skills developmentinitiatives underway in both companies, itsstrategy also embraces enterprisedevelopment. “It is through enterprisedevelopment that we will ensuresustainability among developing contractors,which will lead to the creation of futureemployment.”

Murray & Roberts Resources & Industrialfocuses on engineering and constructionaspects of structural, mechanical, platework and piping solutions for the mining,minerals beneficiation and industrialmarket sectors. Murray & Roberts Electrical& Control Systems, on the other hand,focuses on the electrical andinstrumentation engineering andconstruction projects in the same marketsectors including the addition of the powerand oil and gas markets. �

Training CONSTRUCTION

46

Supporting SA builders’development and trainingMurray & Roberts Resources & Industrial and Murray &Roberts Electrical & Control Systems help boost skill levelsin the South African construction industry

STOP.THINK.ACT.24/7 is the Murray & Roberts Group’s global brandeducating and motivating employees to take responsibility for their

own and their colleagues’ safety at home and in the work environment



W ith approximately 200,000 visitors,Intermat 2015 offered plenty ofopportunities to exhibitors to

promote products. With around 1,400exhibitors, including 35 of the top 50 firms inthe global construction machinery market,Intermat was the place to be in April toshowcase and learn about the latest productsfor every application. With a new show layoutand sector organisation designed to helpparticipants to gain more tangible results inbusiness meetings and better access topotential new export markets, Intermatprovided all construction industryprofessionals with the means to get the mostout of business opportunities.

Key concepts in constructionIntermat revolves around three majorconcepts: expertise, innovation andnetworking. It represents a range ofgeographic markets and product categories,making it a perfect event to capitalise on thegrowing potential of the EMEA (Europe,Middle East, Africa) territories for which theshow has become an essential point ofreference in recent years. Among the newfeatures this year, Intermat brought togetherkey players from the concrete industry in anew event covering every stage of the

concrete cycle. The Intermat awardscelebrated innovation in the development ofnew solutions. There were events spotlightingthe equipment and materials industry and thefirms that use them. Moreover, throughoutthe six days, Intermat offered a uniqueschedule of special theme days, presentations,workshops and visits.

Intermat 2015 was organised by SE Interma,representing CISMA (Association ofEquipment Manufacturers for Construction,Infrastructure, Steel and Handling EquipmentIndustries) and SEIMAT (Association ofInternational Civil Engineering, Mining,Construction and Hoisting Equipmentindustries) in partnership with event organiserComexposium. The key of the organiser wasto pay forward industry prospects with apromising outlook in the construction marketfor 2015-2020.

The economic environmentResearch by PriceWaterhouseCoopersindicates that worldwide spending oninfrastructure will double between now and2020. This expenditure should grow atbetween six and seven per cent per year overthe next 10 years – with faster growth in sub-Saharan Africa, estimated at over 10 per centper year.

Each year, Intermat welcomes more andmore visitors from geographic regionsbelonging to the Gulf Cooperation Council(GCC), where economies are booming andconstruction is very active. This has beenespecially true since 2011, which saw thelaunch of Intermat Middle East. In the MiddleEast and also in North and West Africa, forexample, a large number of infrastructure orconstruction projects are underway oremerging - and the opportunities have beenhighlighted at Intermat 2015.

In the Middle East, Saudi Arabia has startedup several large scale projects in order toadapt the country’s infrastructure to meetdemographic needs, including a massive six-line underground metro in Riyadh, a 19-lineand 990 km extension to the country's railwaynetwork, and the Kingdom Tower, which willbe the highest skyscraper in the world at1,000 metres. The emirate of Dubai has wonthe right to host the World Exposition in 2020,and so has resumed work on several projectsthat were designed before the economic crisisof 2008/9. However, Dubai has also launchednew mega-projects, including the DubaiWater Canal, which will connect Business Baywith the Persian Gulf - and the Falcon City ofWonders, a huge amusement park withreplicas of the Seven Wonders of the World.Turkey has started work on a large investmentprogramme, with a third bridge over theBosporus, and a third international airport.

In North Africa, Algeria has planned toinvest US$53bn in the development of roadinfrastructure and engineering structures aspart of its five-year plan from 2015 to 2019.This includes the construction of the HighPlateaus motorway, the launch of the GrandMuseum of Africa and the continuedconstruction of the new city of El Menea.Morocco has kept up the rhythm of itsinvestments to develop its infrastructure, withworks on the Tangier-Casablanca high-speedline, the reconversion of part of the Casa Portzone, and the enhancement of the roadnetwork. Tunisia is investing millions of dollarseach year on projects, including theconstruction of the financial district of Tunis,which will become the leading financial

IntermatCONSTRUCTION

48

Manufacturers meet themarket at Intermat

The Intermat awards celebrated innovation in the development of new solutions



CONSTRUCTIONIntermat

49

centre in North Africa for offshore bankinginstitutions, and the construction of the deepsea port of Enfidha to connect Tunisia with themain commercial shipping routes.

In West Africa, Côte d’Ivoire is acceleratingthe delivery of its development programme,giving priority to transport, power andhousing. Approximately 50 km of roads arebeing built each year. Also, an urban railservice is being built to connect the airport ofAbidjan with the north of the country’seconomic capital. Other plans include theconstruction of the Soubré hydroelectric damand new-build social housing. Havingbecome the leading African economy in April2014, with a GDP of US$491bn, Nigeria plansto rollout a large number of projects in power,real estate and transport infrastructure.Examples of this are the construction of ahousing development on a man-made beachon the Lagos Lagoon, a deep sea mega-portin Badagry, and hydroelectric dams inMambila and Zungerou. Senegal has alsolaunched major projects designed to equipthe country with modern and effectiveinfrastructure, including a tram system inDakar, a water desalination plant to meetdrinking water needs, and a specialintegrated economic zone near Dakar.

Equipment, machinery and processesSince Intermat was founded, contractors,plant rental firms and operators have beenable to observe the know-how, ergonomics,safety and productivity of machines at work.In a 30,000 sqm area, manufacturers ofequipment and machinery show off theirproducts: excavators, loaders, mobilecrushers, telescopic lifts, screen buckets, andother products.

Intermat pays tribute to invention andproduct development by distinguishing themost remarkable initiatives with itsInnovation Awards and organises two major and unique events to supportexhibitors in publicising new products andservices. An international judging panel,chaired by FNTP president Bruno Cavagnéand comprising 11 industry specialists,representative of building industryequipment and process users, examined theapplications submitted by Intermat 2015exhibitors and elected the winners of the2015 Intermat Innovation Awards.

The awards are an illustration of the varietyof sectors for which equipment is the mostessential means of production. In the area ofbuildings: structural works, finishing worksand demolition. In public works:earthmoving, roads and civil engineering.And, serving both of these areas, quarries andprefabrication. The 2015 Intermat InnovationAwards are a reflection of the international

spectrum of the product offering in worksiteequipment. The awards are also in line withthe leading priorities of businesses today:environmental protection, looking after thehealth of employees, and staff safety on worksites. The awards now also offer a specialfocus on the concrete sector.

The diversity of the 2015 IntermatInnovation Award winners is proof of thevariety and quality of the number ofapplications submitted: 78 in all, of which 29were nominated for awards and 12 ultimatelyelected as winners. The 2015 IntermatInnovation Awards give recognition toequipment and machinery that is capable ofimproving firms’ productivity.

Staff safety is also a constant concern forfirms. Protecting the environment is subject of growing importance forresponsible organisations. It is increasinglyintegrated into the experience ofconstruction industry players. Awardswinners this year included Atlog, Liebherr,Merlo, MS, and Wacker Neuson.

Representing the rental sectorTraditionally, the equipment rental industryhas always been at home at Intermat. Ateach show the event brings together themarket ecosystem and its stakeholders:equipment manufacturers, rentalcompanies, fleet managers, engineers, andtrade bodies. At the 2012 show, 40 per centof exhibitors received a visit on their standby rental companies. This year, a dedicated'Intermat Rental Day' included a visit to abranch of one of the leading rentalcompanies in France, LOXAM, located close to Intermat and Paris-CDG airport,providing an excellent opportunity tounderstand how these firms organise theirbranches, and to discover the operationalaspects of rental. There has been, also, apresentation detailing operational factorssuch as reducing damage and accidentscaused by equipment.

Dealing with demolitionIntermat also featured an overview of the

regulatory framework with regard to wastetraceability and a presentation of Ivestigosoftware, which simplifies worksite wastetraceability. With respect to demolition,CISMA offered insights into the latestdevelopments of standards in rapidattachment systems. And a workshop byRivard highlighted ‘hydro demolition’, amethod of selectively removing damagedconcrete using water at high pressure.

Exhibitors at IntermatThe key corporate entities exhibiting powersystems at Intermat 2015, included AKSAJeneratörSanayi, Balkrishna Tyres (BKT Tyres),Cummins, Deutz, ESCO SAS, GoodyearDunlop Tyres, Haladjian, Hatz-Diesel, JCBPower Systems, John Deere Power Systems,Kaeser Compressors, Kohler, Kubota, MagnaTyres Group, MTS, MTU, Pramac, SDMOIndustries, TEKSAN JeneratorElektrik, TMS,Trelleborg Wheel Systems, Volvo Penta,Yanmar. Demolition and recycling firmsincluded: Bobcat, Doosan Portable Power,Indeco, and Palfinger. In lifting and handling,the key corporates on stand were: AGS,Haulotte, Hitachi Construction Machinery,Magni Telescopic Handlers, Merlo,SennebogenMaschinenfabrik, Solmec, andTerex Corporation. Construction andmaintenance of road infrastructure wasrepresented by: Ammann Group,Benninghoven, Bomag, Fayat, Fendt, Marini,and Wirtgen. Drilling, boring and specialfoundations for mines and quarries wasrepresented by: Bauer Maschinen, Hany,Integral Intermat Algerie, FinAlgeria/HBXGGroupementProducteurs Chine, McCloskeyInternational, Powerscreen, Soilmec,TalleresNuñez and Terex Finlay.

Earthmoving and civil engineeringequipment and services on display includedproducts from: Bell Dredging Pumps, CaseConstruction Equipment, Doosan, HyundaiHeavy Industries Group, KobelcoConstruction Machinery, Komatsu, Kubota,Liebherr, LiuGong, MTB, MTG, MTS, ShantuiConstruction Machinery, Terex Trucks, VolvoConstruction Equipment, Volvo Trucks,Wacker Nueson Group, and YanmarConstruction Equipment.

Topography engineering, new technologyand automatic systems were showcased by:CDI Technologies, Trimble, Hitech Software,IMET, Irium Software Group, MistralInformatique, Moba Mobile Automation,Panasonic, SITECH, Tata Technologies,Topcon, and Trimble. At Intermat 2015,manufacturers of vehicles and transportation for materials included: BellEquipment, Iveco, MAN Truck & Bus,Mercedes-Benz, Nooteboom Trailers, Scania,and Scheuerle. �


Since Intermat wasfounded, contractors,plant rental firms and

operators have been ableto observe the know-

how, ergonomics, safetyand productivity of

machines at work


AnalysisCONSTRUCTION

50 African Review of Business and Technology - May 2015 www.africanreview.com

More African nations have beencapacity building, with internal andexternal investors mobilising capital

for infrastructure projects in local markets.International investors, in particular, havebecome far more prominent in local capacitybuilding, often channelling funds ormanaging operations through Africansubsidiaries. The large majority of jobs created,for example, by InfraCo Africa are for Africannationals (at over 95 per cent across thatparticular company’s portfolio).

Establishing or developing thefundamental physical facilities serving acountry, city or area in Africa can presenthuge challenges, in terms of sourcingconstruction expertise and equipment.Sufficient funds may be in place for a powerplant, water treatment facility, transportation,housing, or other project. However, in-country infrastructure development can behampered due to topology, local skill sets, ora myriad other factors.

Construction equipment manufacturers,therefore, must present as wide a portfolio aspossible to achieve sales success across thecontinent — and their equipment andservices must be as innovative as thetechniques required to get jobs done in CapeTown, Accra, Cairo or Djibouti.

Operational across Africa, with offices inCôte d’Ivoire, Ghana, Cameroon, EquatorialGuinea, DR Congo, and South Africa, KanuEquipment is a specialist in the supply ofearthmoving and road constructionequipment. It is one of the largest dealers forLiebherr and Bell Equipment in West andCentral Africa and has distribution centresthroughout the continent. Kanu Equipment isa subsidiary of The Torre Group, and is adistributor not only of products manufacturedby Bell Equipment and Liebherr, but also thosemade by Terex Finlay, Wirtgen Group, Tractor &Grader Supplies (TGS), TechKing, and Deutz.

Kanu Equipment’s aim is to reduce itscustomers’ cost of doing business in Africa byproviding quality construction machines,

supported by a quality maintenance teamwith spare part availability wherever theyoperate. The company will only distributequality branded products where it has thenecessary original equipment manufacturer(OEM) support and back up to respond to itscustomers’ needs.

Practical equipment, sophisticated designsBell Equipment's extensive range of heavyequipment is ideally suited to a wide variety ofapplications and industries. The companyoffers loading and hauling machinerysolutions to the mining, quarrying,construction, road building, forestry andagricultural industries worldwide. Its robust,reliable haulage machinery is complementedby a range of excavation machinery and otherloading tools. Most recently, it showcased itsE-series large trucks at Intermat 2015 in Paris,France. Bell Equipment manufactures thelargest range of articulated dump trucks(ADTs) in the world, and used Intermat topresent a prototype of its B50E ADT, which will

succeed the world's first production 50-tonner, the Bell B50D, and is a vital part of thesecond phase of the company's E-seriesdevelopment programme, whichencompasses Bell Equipment's trucks in the35, 40, 45 and 50 ton payload classes.

Bell Equipment product marketingmanager Tristan du Pisanie said, "Our smaller20 to 30 ton E-series ADTs formed the firstphase of development. They have been wellaccepted by the market so there has been noneed for a change of approach with our largertrucks and we are excited to showcase ourB50E prototype at Intermat. Importantly thisfamily of trucks shares a platform that isconceptually the same and is an evolution ofour D-series trucks, which have proventhemselves as class leaders during their 12years of operation all over the world."

For more than 60 years, Liebherr's designand technology has been orientated aroundpractical deployment scenarios throughoutthe world. An uncompromising commitmentto quality safeguards the highest level of

The 22 tonne JS220 trackedexcavator from JCB

Building the constructionequipment marketAppraising the key manufacturers and distributors serving Africa’s constructors and contractors with the latest, most innovative machines


CONSTRUCTIONAnalysis


benefit to its customers in all product areas.As well as tower cranes and mobileconstruction cranes, Liebherr offers a broadrange of earth moving equipment withhydraulic excavators, wheel loaders, dozersand crawler loaders, telescopic handlers anddumper trucks. For deep foundationengineering projects, the company suppliesuniversal duty-cycle crawler cranes andspecial piling and drilling rigs. Also, itsconcreting technology opens up a wholerange of solutions for the cost-effectiveproduction and optimum transportation ofquality concrete. Most recently, Liebherrmodified its LR 1750 crawler crane to theupgraded 750-tonne LR 1750/2 model,strengthening the main boom andadjusting the derrick system to increase thecrane's load capacity by up to 30 per cent.

Terex Finlay has been manufacturing acomprehensive range of tracked mobilecrushing, screening and recyclingequipment for over 50 years. Its machinesare manufactured to provide efficientproduction, low operational costs and easeof maintenance. Its tracked mobile jawcrushers are renowned for their capabilitiesin the reduction and sizing of aggregates forconstruction materials and also recyclingconstruction waste. Its tracked mobileimpact crushers are versatile and capable inprocessing soft to medium natural graniteand limestone and non-abrasive materials,as well as recycling construction demolitionwaste. Its cone crushers are deal effectivelywith mid-hard and above mid-hard ores androcks. The Terex Finlay range of trackedheavy duty screens are versatile andefficient machines that can be operated in awide range of primary and secondaryscreening applications. The Finlay 595 heavyduty mobile scalper is a versatile andcompact machine that can be used forprimary screening and recyclingapplications on restricted work sites wherespace is at a premium. The 6 Series range ofFinlay tracked inclined screens are versatile,high capacity, robust and durable machinesthat can be operated in a wide range ofscreening scenarios. The company's 984horizontal screen is a high capacity, robustmachine - ideal for handling large volumesof materials in quarrying as well as recycling.And its Dual Powered crushers areelectrically driven machines, which allowthe end-user to run from mains supply withthe aim of giving significant savings onenergy costs.

The Wirtgen Group companies offermobile machine solutions for roadconstruction and rehabilitation, as well asfor mining and processing minerals. ItsBatchmix 1250, which was developed by

Benninghoven, was premièred at Intermat2015. This new development in the field ofmobile batch plants boasts maximumflexibility and mobility combined withreliable technology. The complete planttechnology for producing high-qualityasphalt is mounted on five chassis. With amixing capacity of 100t/h, the Batchmix1250 guarantees quick and easy installationas well as rapid changes of location. Theplant is supplied with the requiredaggregate fractions via four cold feedhoppers with a convenient loading width of3,600mm. The drying drum is mounted onthe same chassis to ensure quick andefficient drying of the aggregate. The plantincludes a powerful four-deck screencapable of separating 90t of aggregate perhour into the four comportments of the hotaggregate bin unit. Up to 20t can be storedhere in total.

Making machines and supplying parts forconstruction projectsTractor & Grader Supplies (TGS) is asignificant aftermarket supplier of parts forearthmoving machinery in Africa. From itsbases in Swaziland, Zambia, Zimbabwe,Namibia, Republic of Congo, Sierra Leone,Ghana, Liberia, Cameroon, Equitorial Guineaand Cote d’Ivoire, TGS is a distributor ofMaxiforce engine parts, ITM undercarriagecomponents, GET brand equipment, andparts for Caterpillar-type machinery.Moreover, its Rebuild Centre is ISO9001:2008 certified and is a fully-equippedrefurbishing and complete machine rebuildworkshop.

High Power Equipment Africa (HPE) is thesole distributor of Hyundai earthmovingequipment in Southern Africa, and alsosupplies other brands for constructors.Hyundai's equipment ranges fromexcavators to wheel loaders and skid steerloaders. McCloskey International crushingand screening equipment is also supplied.There is, too, Soosan Hydraulic Hammersand Drills, which work as complimentaryattachments to the Hyundai range ofearthmoving equipment. HPE supplies, also,Meccanica Breganzese (MB) jaw-actionbucket crushers, which are amongst themost respected and innovative range ofproducts in the earthmoving industry.

The Volvo Group manufactures trucks,buses and construction equipment, as wellas drive systems for marine and industrialapplications. The company also offers itscustomers financial services. The company’sdealers in Africa include: Auto Sueco, whichprovides sales, parts and service for VolvoConstruction Equipment (Volvo CE) acrossAngola, Kenya, Tanzania and Uganda;


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Babcock International Group, an engineeringsupport services organisation, withoperational experience in Africa, which is a keysupplier to customers in the mining, quarrying,forestry, material handling, road constructionand transport industries; Swedish Machinery &Trucks (SMT) Group, which is the officialdistributor for Volvo Construction Equipment,Volvo Trucks, Volvo Penta and Volvo Bus in 21countries within central and western Africa;Albarajoub Enginering Company (BEC), whichoffers sales, parts and services for VolvoConstruction Equipment, Volvo Trucks andVolvo Penta, and is a key player in theSudanese market, in mining, agriculture, oiland gas, road construction, heavyinfrastructure, quarrying and aggregates;Equatorial Business Group (EBG), which hasbeen the distributor of Volvo ConstructionEquipment in Ethiopia for over 15 years;Ghabbour Egypt, which has represented VolvoCE since 1999; Leal Equipment Compagnie(LEC), which represents Volvo ConstructionEquipment in Mauritius, Madagascar and theSeychelles; Nordic Machinery, a privately-owned Tunisian company; Volvo Maroc,which provides coverage from branches inCasablanca, Agadir and Tangier, maintaining afleet of service vans operating around theclock in order to provide a prompt repair andmaintenance service for all customers; UnitedGroup Company, which also represents VolvoConstruction Equipment, Volvo Trucks, VolvoBuses and Volvo Penta, and has a strongpresence in local markets, especially in theconstruction and quarry segments; and AYazbeck & Sons, which is the authoriseddistributor for Volvo Construction Equipmentin Sierra Leone, and also maintains a team ofdedicated staff to serve the mining sector.

Dedicated to southern and western Africa,Hitachi Construction Machinery sells anddistributes mining, earthmoving,construction, quarrying and forestryequipment in Southern Africa and also inGhana. It also supplies spare parts andprovides product support includingservicing, maintenance and repairs.Additionally, Hitachi specialises in themanufacture and refurbishment of excavatorbuckets, front-end loader buckets, rear dumptruck bodies, water tankers, and bottom-dump coal haulers.

Divisions and distributors servingconstruction companiesIn South Africa, ELB Equipment (ELB) is one ofa few locally-based companies who can actas a single supplier of a broad range ofearthmoving, construction, mining andquarrying equipment. The company is adivision of ELB Equipment Holdings Group.ELB represents a number of manufacturers

whose products are designed to meet thestrict emission and safety control regulationsthat apply to the industrialised countries.Since South Africa closely follows globalstandards, its customers are assured that theproducts supplied by ELB meet local safetystandards, and offer benefits in terms ofenhanced ergonomics, improvedproductivity, conformance to qualitystandards, and reduced operating cost. Adivision of Invicta Holdings, also operatingfrom a South African base, Capital EquipmentGroup (CEG) consists of a number of divisionsand companies focusing on the importationand distribution of equipment, with adistribution network of over 152 outlets. CEGsupplies equipment from Case, TCM, Doosan,ESPA, Kian Ann Engineering, and High PowerEquipment Africa.

CSE distributes Case constructionequipment, sourced from all over the world.Criterion is a distributor of TCM forkliftssourced from Japan. The TCM brand is well-known in southern Africa. ESPA is a SouthAfrican multi-brand distributor, whichspecialises in the procurement anddistribution of high quality aftermarketreplacement parts, including ground-engaging tools and undercarriage forearthmoving equipment, and parts forCaterpillar, Komatsu and other earthmovingequipment, parts for diesel engines, and therepair of undercarriage for earthmovingmachinery. ESPA serves the aftermarket partsindustry through an extensive network ofbranches and distributors in South Africa,Botswana, Namibia and Swaziland. Kian Ann

Engineering is one of the world's largestindependent distributors of heavy machineryparts and diesel engine components. Itsproducts are used for excavators, bulldozers,wheel loaders, motor graders, trucks, trailers,power generation sets and marine engines.The machine brands that the group'sproducts support include: Caterpillar,Komatsu, Cummins, Hitachi, Kobelco,Sumitomo, Mercedes Benz, Volvo, Scania,MAN, BPW, Hyundai, Samsung andDaewoo/Doosan. Kian Ann distributesthroughout Africa.

Machines from key manufacturersDoosan equipment - its excavators, wheelloaders and articulated dump trucks - arefuel-efficient, comfortable and easy tomaintain. Its crawler excavators combinerobustness with a high degree offunctionality for African operators. Its wheelloaders offer exceptional performance,comfort, handling, serviceability, anddurability. The DA40 and DA30 ADTs are builtwith quality components from suppliers suchas Scania, ZF, NAF, Parker and Rexroth toensures optimal off-road performance.

The DX300LC-5 excavator from Doosan is aparticular example of a piece of equipmentthat is built for reliability. Boom and armbushings and ultra-hard wear disks aredesigned for extended service intervals andsteady performance. The permanently sealedand lubricated track links maximize uptimeand reduce operating costs. Work naturallyinside the cab with controls that are placedwhere they are needed. �

A new generation of Volvo-Advanced Combustion Technology(V-ACT) engines features ultra-high pressure variable fuelinjection systems that control combustion temperatures



S14 ATR May 2015 - PMSA & Doosan_Layout 1 24/04/2015 13:18

Nigeria, Africa’s largest economy, hasalways battled the image of being animport-driven nation and has relied

heavily on sustenance from other countries.However, if recent trends are anything to goby, the country’s Dangote Cement Plc isextending investments in other countries aswell as exports. The company is renownedfor cement production, but is extending itsreach into other sectors as well.

The country’s import-driven relationshipwith the world has been going on fordecades. While Thailand and India have beensupplying rice to Nigeria, Turkey and Chinahave been sending large amounts of cementto the West African nation. Products such aswood, wheat, fish, vegetable oil andautomobiles have also been sent to Nigeriaover the years.

With the advent of entrepreneur andvisionary Aliko Dangote, the economiclandscape in Nigeria appears to be changing.

One of the mainstays of the company iscement production, and Nigeria is nowexporting cement to other African nations.Recently, Mali, Gambia and other countries inthe region were provided a channel ofcement exports. Dangote Industries Senegalcountry head Luk Haelterman, at theopening of the new US$250mn cementfactory, stated that initial volume of cementexport was pegged at two million metrictonnes (MT). Senegal is a growing market forthe company, with a 14mn strongpopulation, a GDP of four per cent (as of2013), a cement market of three millionmetric tonnes per year and a consumptionrate of 230 kg.

In Cameroon as well, Dangote Cementhopes to deepen market penetrationthrough its innovative product offering. Thecountry’s cement plant, with a 1.5 metrictonnes per annum capacity, is equipped withthe most recent facilities that ensure no dustemission. The company's ex-factory price isthe cheapest in Cameroon, compared toother products in the market. DangoteCement's 42.5 grade is cheaper than the 32.5grade that is sold in the open market.

In South Africa, Dangote formally

increased its stake in Sephaku CementLimited from 19.76 per cent to 64 per cent.The transaction, which comprises aUS$65mn investment into Sephaku Cementby Dangote, is the largest ever foreign directinvestment (FDI) by an African company intoSouth Africa. Dangote Cement presidentAlhaji Aliko Dangote, who is also the newchairman of Sephaku Cement, commendedthe transaction as taking place “at a crucialmoment in the history of cement demandand supply, and at a crucial moment interms of Dangote’s pan-African ambitions.”

According to Dangote, the pace ofdevelopment at Sephaku will increase inview of the project completion timeline setin 2012. The Dangote Group will bring its fullexperience and resources to the project,having completed other largescale cementprojects in Nigeria and with similar projectscurrently underway in Tanzania, Ethiopia,Congo-Brazzaville, Senegal and Zambia.

DR Congo and Dangote Group havestated that the company’s cement project inthe country was making good progress andwould commence production soon.

Dangote Group recently extended its Pan-African cement investment toCongo-Brazzaville in Central Africa, with aUS$350mn investment agreement signedbetween the group and the Congolesegovernment. The project is expected to helpthe country significantly reduce the importsof cement and even enable it to become anet exporter of cement while boostingeconomic growth, development, jobcreation and income generation.

“It is obvious that African governmentsalone cannot hope to meet this demand dueto the various competing needs in otheraspects of the economy. This is why privatecompanies are needed to complement thegovernment’s efforts. We are motivated tocreate an African success story because webelieve that entrepreneurship, especially ourown home-grown African entrepreneurship,holds the key to the future economic growthof the continent. The fact that Africa offersone of the highest returns on investment(ROI) in the world is an additional incentivefor any discerning investor, who can takecalculated risks,” concluded Dangote. �

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Cementing a change Nigerian entrepreneur Alhaji Aliko Dangote is changing the import scenario in the West African nation, by becoming a powerful force in the field of cement production and export

Dangote Cement is exporting cement to several countries such as South Africa, Gambia, Mali and Cameroon



Loaders CONSTRUCTION

56 African Review of Business and Technology - May 2015

Seeking a complementary loader/haultruck combination? To benefit fromAfrica’s mining boom, the key

requirement is to get the combined cycletimes right. With fuel economy and emissionsbenefits too, your investment will reap therichest returns, with minimum down or‘waiting’ time clocked up by either machine.

Most large equipment manufacturers likeCaterpillar, John Deere and Terex, and localdistributors such as Mantrac, can help youlocate what amounts to a matching pair,offering expert advice based on hard-earnedexperience here in Africa. Mantrac’sassociated Unatrac website provides detailsof equipment supplied to four different gold

mining operations in Egypt and Ghana. However, for such assistance to be most

helpful, dealers will need detailedinformation about the material(s) to behandled, site conditions, and various otherproduction requirements.

First, the key component is the wheelloader itself (also known as a front end loader,bucket loader and chargeur sur roues).Various other loaders find uses in surfacemining – such as the backhoe and skidsteer –and specific attachments can performspecialist tasks like handling logs. All theseapplications require top-quality heavy-dutydiesel power available at fingertip control,with functions handled electronically, even if

Large load, long haulThe loader/haul truck combination is the ideal materials-handling solution formost surface mining operations; these machines are widely used in road construction, for dealing with municipal waste, and in large-scale farming too


A loader combined with a haul truck greatlyreduces fuel consumption and emissions

S15 ATR May 2015 - Construction Report 02_Layout 1 24/04/2015 13:19

the joystick is connected to the latest all-/selectable-axle transmission systemequipped with dirt-excluding brakes.

Well below 10 or more than 20 tonnes insize, most contemporary loaders comeequipped with automatic transmission, whichreduces operator fatigue massively. Alongwith highly sensitive ‘inching’ controls, a coolcomfortable cab and sophisticatedsuspension, this contributes to both shorterand safer production cycles, even in theroughest of terrain. So does today’shydraulically-actuated articulated-framesteering which allows for digging surfaceground, attacking a pile and shifting in thetightest of conditions. A limited slipdifferential may be opted for when selectinga loader as this increases traction in deep wetmud; so does an available choice betweentwo and four-wheel drive, which can increaseeffective breakout force in the rightcircumstances if all the power is directed atthe right axle.

Most large mining or so-called ‘rock’ truckscontinue to be rigid in construction; thatallows the largest of payloads to be shifted.But with articulated dumpers (ADTs), thenatural partners for today’s wheel loaders andmassively popular with constructioncontractors like road builders these days, six-

wheel drive is usually available for when theground conditions need it. And all to keepthat critical extract-load-shift-dump cycletime down.

For really precise control of the cycle ofoperations and overall productivity, some ofthe latest loaders even incorporate anindividual payload measurement andrecording system. No excuses for lazyoperators when this is onboard.

Diesel-based muscle power started it all, ofcourse, but built-in electronics have mademost of this better. A factor for surface minersto consider could be the adaptation andadoption of electric drive (long associatedwith underground operations, and causing asensation when the first AC electric dozer, theD7E, was launched by Caterpillar less than 10years ago).

Now the attention is shifting to varioushybrid diesel-electric technologies, with theDeere development team launching not onebut two hybrid wheel loaders, the 644K and944K models, in 2013. Other equipmentmanufacturers are already on board, andmore suppliers are expected to join in ashigh-capacity battery technology improvesthrough the efforts of high-tech operatorssuch as Tesla Motors.

We attend all the big equipment shows,

and African Review will keep you up-to-datewith the exciting news about the low-emissions fuel-saving power systems that arecertain to come. Even tyre wear is reducedthis way, the proponents say.

Naturally all this requires parallel advancesin technology from the synchronousalternator manufacturers such as Mecc Alte.Some of the latest loading and handlingmachines are effectively high-capacitygenerating sets that happen to be self-mobilethese days – with a bucket attached at thefront-end in the case of the workhorse wheelloader. GPS positioning and robot control arealready possible.

Apart from overall (including loaded)weight, the power rating of the prime mover,maximum bucket capacity and availablebreakout (tearout) force, the keyspecifications to compare when choosing amodern loader combination include height(defined in various ways such as maximumoverall, and bucket hinge pin at full lift);maximum digging depth; overall length; andbucket reach at full lift. That breakout score isreally important. Other specifications includethe operating and static tipping loads,geometry of the bucket ‘carry’ position itself,overall clearance circle and the requireddump height at the end. �

CONSTRUCTIONLoaders



In 2009, following the joint venture withVolvo Construction Equipment, we took onthe challenge to launch SDLG in Africa. At

the time, it was an unknown brand in thatregion, with sales in only one or two markets,so we started from scratch.

The SDLG products came out on top whenwe tested them against other Chinese brands.We know SDLG machines are reliable andhave a relatively long life span. A number ofquality and reliability tests were done aheadof the start-up in Africa, and regular reviewsare conducted for optimising quality on anongoing basis.

The joint venture meant that SDLG couldbenefit from the already established Volvo CEdealer network in Africa. All Volvo CE dealersin the African markets were given theopportunity to sell SDLG products with thecondition to have a clear, dedicated SDLGsales branch and team in place. SDLG’sproduct management team offers regulartraining to SDLG dealer personnel, ensuringthey are fully trained on SDLG products.Where our dealers in Africa have introduced adedicated and fully trained SDLG sales team,we’ve seen a noticeable increase in sales.

Since 2009, we’ve improved sales and

brand development year on year. Today, SDLGis represented in 26 African countries and isamong the top three Chinese brands in Africain wheel loader sales.

Chinese brands in AfricaChinese brands currently dominate thewheel loader market in Africa, driven bymany infrastructure and constructionprojects financed from China, such asproperty building, road and railwayconstruction and port development. Of allwheel loaders sold in this market, more than70 per cent are made in China. More thanhalf of this, of which SDLG has a very goodshare, is sold through dealers.

Although a large number of machines are

still imported by Chinese contractors directlyfrom China for projects in Africa, more ofthem are appreciating the benefits of localdealer support. We anticipate an increase inChinese contractors sourcing equipmentlocally, therefore the sales potential for SDLGdealers is expected to increase.

Chinese equipment is in demand fromsmall companies, often sub-contractors,working on road construction, industrialhandling, construction site maintenance andagricultural projects in Africa. Companiessuch as these require affordable, valueproducts, which don’t cost the earth but arereliable and that get the job done.

SDLG – the chosen Chinese brandSDLG is doing well in most markets in Africa,enjoying a top three position out of theChinese brands. Our strategy over the nextfew years is to continue what we’ve beendoing from the beginning — utilising thestrength of our internal structure, andcontinuing to offer customers outstandingaftermarket support, with the help of ourwell-respected dealers who are established intheir respective markets.

This is where SDLG stands out against the

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Heavy duty forayinto Africa

SDLG’s strategy to become the value market leader in the continent

An SDLG machine in action

www.africanreview.comAfrican Review of Business and Technology - May 2015


CONSTRUCTIONMachinery

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Chinese competition. In the past, lack ofaftersales and customer support was paintinga bad reputation for Chinese brands. Ourobjective is to turn this around, and to proveto customers in Africa that not only do wehave good quality value products, but thatwe promise to support our customersthroughout the product lifetime.

It will take some time and some persuasionto sway opinions, as many customers stillsimply go for the cheapest product, but ourbelief is that the key to long-term success isoffering the right quality products, and theright after sales support.

SDLG now has five dealers in Africa,operating in 26 countries. The dealers are big,financially strong and well-known forexcellent aftersales support. Having a strongdealer name behind you is extremelybeneficial for a new brand. Coupled with thebest aftermarket support among Chinesebrands, SDLG has the means to treatcustomers exactly how they expect anddeserve to be treated. SDLG and its dealersare focused on building long-term businessrelationships with their customers in Africa.

80-90 per cent of products sold by Chinesebrands are wheel loaders, and what a lot ofpeople don’t know is that SDLG is thenumber-one wheel loader manufacturer inChina. Our target is to establish SDLG as the

market leader for Chinese brands in Africaalso, within the next three years.

What’s next for SDLG in Africa?We have already achieved great success withthe launch of rollers and motor gradersduring 2013 and 2014. These product lineshave become an important leg of our strategyand we will further develop our share bylaunching additional models.

Our next step is to introduce SDLG’s newbackhoe loader and excavator. We haveintroduced both products in a few marketsalready and we are currently preparinglaunches in additional markets. The launchesof each product will be completed during2015 and early 2016.

Market-wise, Algeria is a key focus for SDLGin 2015. Chinese products have a goodacceptance in Algeria due to a ban onimported used equipment. In mid-2014, weappointed SMT as the SDLG dealer for Algeria.SMT is our SDLG dealer partner in a couple ofother markets already, so we know we canbuild on our already good partnership. We areworking closely with SMT Algeria, offeringsupport on-the-go to kickstart SDLG’sintroduction to Algeria – we are confidentthat we will see significant growth in thismarket very soon.

Our mid-term target is to become agenuine competitor in the ‘upper-value’ classbrands, such as the Korean and Japanesemanufacturers. This will inevitably take sometime, as these brands have establishedthemselves in the African market over 15 to20 years, but there is huge potential for SDLGin this region, and we and our dealer partnersare ready to take on this challenge. �

– Stefan Bach, Africa business manager for


Stefan Bach, Africa business manager for SDLG

Bobcat’s new skid-steer loader for comfort and efficiencyMachinery manufacturer Bobcat has launchedthe new generation S450 skid-steer loader,building on the success of the S130 model it isreplacing.

The S450 skid-steer loader can be suppliedwith a comprehensive choice of 48 differentproduct families of approved attachments (withmore to come), offering solutions for a very widerange of applications and providing a perfectillustration of the Bobcat Tool Carrier concept,common to all Bobcat compact loaders.

Much like the larger models, the new skid-steer loader offers significantly improvedcomfort and visibility to allow for greater controland accuracy in tight working spaces. Now, forthe first time in a skid-steer loader model inthis size class, the S450 loader is supplied witha fully pressurised cab with air-conditioning asan option. Other key features include increasedhydraulic performance and efficiency, a newtailgate design, integrated rear bumper andenhanced serviceability.

Larger Cab and Improved Operator ComfortThe cab of the machine is based on the conceptof larger Bobcat loaders and has been designedto maintain the loader’s compact size withoutcompromising operator comfort and controlduring operation. The internal area of the cab

has been increased by 10 per cent comparedto the S130 model, resulting in more spacearound the operator. Moving the cab sidewindows to the outside of the cab hascontributed to the increase in interior spaceand has also made them easier to clean.Bobcat’s best-in-class cab pressurisation systemis based on a one-piece seal that goes aroundthe door, increasing pressurisation to minimisethe dirt and dust that might enter the cab.Heating performance has also been increasedand the controls are fully illuminated. All-roundvisibility is increased by 30 per cent, comparedto the cab on the S130 model.

Increased Hydraulic Performance andEfficiencyHydraulic performance has been increased withan increase in system pressure and changes tothe hydraulic components and hose and tubeline routings. These have been designed to allowthe use of straight fittings instead of adjustablefittings (45° or 90°). The number of hydraulicconnections has also been reduced. Thesechanges improve overall efficiency and alsoeliminate routing variation as well as reducingpotential rubbing and leak points. The newtailgate has been designed with a shorter verticalheight and stiffening pockets to provide optimal

strength whilst maintaining a slimmer fit. Thisallows the use of a tailgate protector integratedinto the machine’s mainframe.

Increased electrical protection is provided bydedicated fuses for individual circuits, which aremounted in an easily accessible box near thebattery. Battery access is increased and batteryprotection from debris and heat is improvedwith the use of a dedicated cover.

To complete the compact package,serviceability and uptime protection have beenimproved with features from the larger models.Both the oil cooler and radiator are now acombination unit that provides a cleaner coolingenvironment less likely to trap debris and aidsroutine cleaning.

Bobcat’s new skid-steer loader offers good visibility andcomfort, to enable smooth functioning in restricted orsmall spaces


The Canadian company FAB3R* hassupplied us with concise information onthe uses of crushers in mining

operations generally. The Trois-Rivières,Quebec–based business describes itspurpose as to offer technical skills andcertified manufacturing expertise tomanufacture and /or refurbish largespecialised equipment. Th ey also offercomprehensive certification and non-destructive testing (NDT) services.

Mining crusher machinery - which can bemobile for multiple-site operation or fixedwithin the processing facility - is configuredto break down very hard material such ascountry rock into smaller pieces, rightdown to small gravel aggregates and evenusable rock powder. This includes thereduction of valuable mineral ores foronwards processing, of course. Crushersapply mechanical force and pressure tobreak the hard materials down at anefficient rate for further processing.

The operations of such machinery are oftencategorised by the size to which the materialis reduced. Mining crushers operate in“phases” to ensure the force is distributedefficiently so as not to damage the plant itself.Primary crushers produce coarse fragments.Secondary plant reduces these further.

The company says: “Canadian miningprofessionals can provide service options toa variety of mining industry equipment,and often have extensive knowledge andexperience with a variety of crushingmachines.”

In normal use excavator-transportersbring the raw material to the crusher’sfeeder for primary processing. The feederdevice is usually a conveyor belt or othertype of moving surface which transportsthe material towards the crusher itself, thenon to the screens for further processing.While the material is reduced significantlyat this stage there are usually several moreto be gone through with most minedmaterials. So mining crushers themselves

provide the preliminary stage ofprocessing, which means they usually needthe most repair and maintenance.

Today’s mining crushers are aided bymilling processes to create the finestconsistencies of process-ready raw materials.The crushing process itself initiates a greatdeal of wear-and-tear, so the machinesthemselves are likely to need repairthroughout their working lives. Thesemachines require skilled hands andequipment to repair the various componentsof the crushing device itself. Manufacturer

support in the fabrication and modification ofparts for adaptive procedures in themachinery process at all stages is often foundto be necessary for many fabricators.

All mining machinery needs expert skills tocarry out maintenance and modification;crushers are no exception. These particularmachines require more frequentmaintenance because they often processsuch very hard and harsh materials. Residuesand resistance are two of the major causes forthe need to repair and/or refurbish today’smining crusher machines. �

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Heavy duty machines Whether jaw, gyratory or cone type, crusher machines are essentialto the mining and quarrying process in Africa. They make it possibleto reduce the payload to a specified consistency for the onwardsprocessing of any hard material

Mining crushers operate in phases, to ensure the force is distributed efficiently and prevent damage to the plant




operational efficiency and minimal maintenance are keyattributes of Dressta's machines. Each vehicle produced by theLiugong subsidiary is powered by highly-efficient, high-

performance Cummins engines. Moreover, every major component oneach of its machines can be replaced on site within hours.

Specialists in design and manufactureDressta was acquired by LiuGong in 2012, and today is a wholly-ownedentity within the LiuGong group of companies. It stands by its aim ofhigh productivity, ease of maintenance on site, durability, reliability anda comprehensive aftermarket sales support. It produces five productlines and 42 models. Its processes are all accredited to ISO 9001.

The company specialises in coal-handling, and its dozers aredesigned specifically for this application, with specialised coal blades akey feature of the product portfolio. Its specialist blades range from 21to 47.5m3. Its cabs are quiet, comfortable and protected from dust.

Forestry is another key application for Dressta's dozers. Featuresincluding reversible fans and protection guards ensure minimaldowntime, and quick recovery.

Comprehensive support for core applicationsDressta's loaders work efficiently and effectively within oil and gas andutility environments, and safety is a core component here, withoperators informed at all times of the environment in which themachine is operating.

Another interesting attribute of Dressta's offering is the in-housefocus on complete production - so there is no need to go to a third-party manufacturer for any attachment. Dressta listens to its customersand has sought to manufacture and deliver any possible optionrequired by any operator.

Connected machines that meet more customer needsThe company tailors products to meet customers' expectationsglobally. Whether enabling roadbuilding in Mexico, or coal-mining inPoland, Dressta's teams work hard with dealers and with customers tomeet all of their requirements. Dressta is also committed tocomprehensive customer support even where customer requirementsare unique and particularly challenging, as in the gold-miningoperations of Uzbekistan.

The company is already well-represented in Africa and the MiddleEast. African markets, in particular, are key targets for plannedexpansion. Dressta's business model accounts for provision tooperators engaged in infrastructure projects in the years ahead,particularly with a new range of models to be launched by thecompany in 2016 and beyond; the company delivers for nicheapplications and extreme applications, and will focus heavily onwheeled and tracked machines for mining, road construction andlandscape. The new machines will be game-changing products,connected machines produced following development withcompanies such as Trimble. �

Dynamic productivityfrom Dressta productsLiuGong’s European subsidiary is set to reach further into Africa, with amore dynamic business model and more sophisticated machines

Dressta is well represented in Africa and the Middle East,and African markets in particular are set for expansion

Equipment consTRucTion


Integrated Pump Technology of SouthAfrica has supplied 20 Bravo 900submersible slurry pumps and 20 M20

control panels to Kamoto Copper Company(a subsidiary of Katanga Mining) of DRCongo. These heavy duty electricalsubmersible slurry pumps are the largest oftheir kind in the Grindex product family,according to Klint Bawden, generalmanager sales and marketing, IntegratedPump Technology.

Chris Heunes, export sales manager,Integrated Pump Technology, explainedrecently that the company’s products arebeing deployed at three different areas ofKatanga Mining’s operations in DR Congo.These are the Luilu Metallurgical Plant, theKamoto Concentrator (KTC) and KOV OpenPit Mine (KOV). He said, “Our Bravo rangehas proved particularly successful forKatanga Mining, which has been using

Grindex products for three years now andhas about 300 pumps in operation.”

The market for aftermarket miningservicesEC Mining has been formally appointed asthe distributor for Integrated PumpTechnology for DR Congo and is in theprocess of establishing a fully-fledgedservice and repair workshop at KamotoCopper Company to cater for itsaftermarket needs.

“Pumping slurry is one of the mostdemanding applications for any pump, dueto such issues as sediment build-up leadingto costly downtime and repair costs,”Bawden explained. “The Bravo range fromGrindex is robust and hard working enoughto result in reduced operating andmaintenance costs.”

These pumps, with a maximumsubmersible depth of 20m, do not requireany support superstructure, which makesfor quick and easy installation and less

space needed for their operation.The cartridge seal is preassembled for

quicker and easier mounting, while theHard-iron™ impeller and pump housingfeature high wear resistance, which iscritical in slurry applications. The largethroughlet means that the pump canhandle solids of varying sizes. A leakagesensor allows for early detection of anyproblems, while the single adjustmentscrew makes it easy to tweak the impellerfor optimal performance. The agitator hasbeen designed specifically for coarserslurries, and is able to stir up and pumpsand, sludge and solids in suspension.

Integrated Pump Technology has alsosupplied around 50 stainless steel Inoxpumps over the last six months.

“These are specialised electricalsubmersible drainage and sludge pumpsthat can handle acidic operating conditions,”Bawden explained. Features include zincanodes for added protection, with all castparts made from acid-proof stainless steel. �

Slurry MINING

62

Integrated pumpingsolutions for minesIntegrated Pump Technology supplies 20 Bravo 900 submersible slurrypumps to Kamoto Copper Company in DR Congo

The Bravo range is good for Katanga Mining, which hasbeen using Grindex products for the past three years

Pumping slurry is one of the most demanding applications for any pump, mainly due to sediment build-up


S17 ATR May 2015 - Mining Report_Layout 1 24/04/2015 13:18

MINING Valves

63

Materials for multiplemining scenariosWeir Minerals Africa offers comprehensive valve solutions for diverse applications from abrasive mining to specialised industry


Valves form an integral part of Weir Minerals Africa’s totalsolutions package for the mining and minerals processing andgeneral industrial sectors, according to Kobus Steyn, the

company's product manager for valves. Weir Minerals Africa offers twomajor valve brands - namely, Isogate valves and BDK valves.

Isogate valves are ideal for abrasive applications in mining andminerals processing.

“Isogate slurry valves operate in some of the harshest and mostdemanding environments globally,” said Steyn. Applications rangefrom base metals (copper, nickel, iron) to precious metals and gems(gold, silver, platinum and diamonds) and industrial minerals(phosphates, talc, kaolin, silica and clays).

Isogate slurry valves provide a cost-effective solution for on/off,throttling and reverse flow controlling of flowing media in industrialprocesses that involve abrasive or corrosive materials. These rangefrom sand and gravel to dredging, water and waste water, foodcollection, preparation and processing, coal-fired power plants, pulpand paper mills and shot and sand blasting equipment manufacturers.

Successful applicationsSteyn commented that Isogate slurry valves are so successful in suchdiverse applications because they feature ease of maintenance andlow total cost of ownership as the main design criteria.

“Conventional valves are only designed for liquid service andtherefore seldom produce satisfactory results when applied inabrasive and/or corrosive slurries,” he noted. Typical problemsinclude rapid wear of valve seats and liners, sticking and leakage tothe atmosphere during operation.

Isogate slurry valves can operate under wide pressure andtemperature ranges, while sleeves are available in a variety of materials,from natural rubber to EPDM, nitrile or neoprene. A unique feature ofthese valves is that Weir Minerals Africa can offer Weir Minerals’proprietary abrasion resistant Linatex premium natural rubber liners.

Isogate mechanical pinch (MP) valves utilise a flexible rubber-lined pinch sleeve that is collapsed between two mechanical barsfor accurate modulating control, positive closure and drip-tightshut-off. The inside diameter of the pinch sleeve is full-line size formaximum throughput and minimum pressure drop.

Isogate PP (pneumatic pinch) valves are pneumatic or hydraulicactuated enclosed body pinch valves ideal for remote operationusing typical plant air and not requiring auxiliary cylinderoperators. These valves use flexible rubber lined pinch sleeves andpinch liners enclosed in robust cast metal bodies that collapsewhen plant air or hydraulic pressure is applied.

Isogate heavy duty slurry knife gate valves combine a lowmaintenance design with a range of materials for diverse

applications. The particular focus here is abrasion resistance, Steynexplained. For example, the WB Series features a robust design andrugged, heavy duty construction for increased reliability and wearlife, together with ease of maintenance and cost effectiveness in alightweight, compact package.

Weir’s BDK valve range is ideal for general and specialised industrialapplications. These range from power generation to oil and gas,petrochemical, steel, fertiliser, pharmaceuticals and water treatment.The BDK valve range encompasses ball, butterfly, gate, globe andcheck valves, as well as diaphragm, knife gate and plug valves.

“What is important to note is that we are the original equipmentmanufacturer, as opposed to being a distributor of other products.We manufacture and distribute our own products, which gives us asignificant competitive advantage in the marketplace,” Steyncommented. “Globally, Weir has installed Isogate and BDK valvesacross numerous industrial sectors. We have won a number ofprojects where we have supplied the valves, actuators and fullhydraulic systems, designed by Weir Minerals’ engineers. We havealso supplied complete packages to engineering procurementcontractors (EPCs) and end users that include butterfly, ball andcheck valves, as well as control and safety relief valves.” �

Weir Minerals offers two major valve brands – Isogate valves and BDK valves. Isogatevalves are ideal for abrasive applications in mining and mineral processing


On 1 January 2015, Zambia’sgovernment took a controversialdecision to increase royalties from

the mining sector three times over. Miningroyalties for open-pit copper mines jumpedfrom six per cent to 20 per cent. Forunderground mines, royalties were alsoslightly raised from six per cent to eight percent. Back in October 2014, the country’sfinance minister said that the move had tobe taken in order to ensure a more“equitable distribution of the mineralwealth between government and themining companies”. However, leadingmining companies operating in the countryhave expressed their dismay at the move.

The developments have majorrepercussions. Zambia is the eighth largestproducer of copper in the world. One of themost vocal opponents to the tripling ofroyalties is the mining company BarrickGold. The multinational has alreadyannounced that it is commencingprocedures to suspend its work at theLumwana copper mine in Zambia. In arecent statement, Barrick Gold argued that

the new tax regime “eliminates corporateincome tax, but imposes a 20 per cent grossroyalty on revenue without anyconsideration of profitability.”

“The introduction of this royalty has left uswith no choice but to initiate the process ofsuspending operations at Lumwana. Despitethe progress we have made to reduce costsand improve efficiency at the mine, theeconomics of an operation such as Lumwanacannot support a 20 per cent gross royalty,particularly in the current copper priceenvironment,” said Barrick Gold co-presidentKelvin Dushnisky in a statement.

“We sincerely regret the impact this willhave on our people, as well as thecommunities and the businesses thatdepend on Lumwana, and we remainhopeful that the government will consideran alternative solution that will allow themine to continue operating,” Barrick Goldco-president Jim Gowans also said.

Barrick Gold is now working towards thetransition of Lumwana “to care andmaintenance”. According to the company, itintends to start significant reductions in the

workforce in March in order to honour thelegal notice period. Barrick Gold aims forthe transition period to be over by thesecond quarter of this year.

“There has been resistance from themining sector to the introduction of a onetier system which abolishes corporate taxon mining companies but instead,maintains mineral royalty,” said KPMGZambia tax partner Michael Phiri.

“While some mines can sustain theincreased royalty payment, others cannot.Barrick has indicated that it would not beeconomical to continue to operate itsLumwana Mine. The ore grade at Lumwanais said to be very low while the cost is at thehigher end. Further, the one-tier system willnot encourage exploration activities andgreen field operations as there is noopportunity to recover capital costs by wayof capital allowances,” Phiri said.

Lumwana is a major operation for BarrickGold. The mine is in the country’sNorthwestern Province. The companyacquired it when it took over EquinoxMinerals in 2011 with a US$7.3bn purchase.

MetalsMINING

64

Copper in Africa

Uncertainties about African copper mining prospects, alongside encouraging signs of growth



The mine’s net carrying value is currentlyestimated to be around US$1bn. During theinitial nine months of 2014, Lumwanaproduced around 138mn pounds of copperat C3 fully allocated costs coming toUS$2.98 per pound. The mine alsopossessed 6.6bn pounds of copper in itsreserves as of December 2013.Furthermore, the mine supports around4,000 direct jobs.

Barrick Gold has highlighted in the pastthat the mine is of significant importance tothe local economy; it has bought almostUS$400mn worth of goods and servicesfrom local suppliers. Lumwana has alsohelped to finance a diversity of local socialprojects in sectors ranging from educationto healthcare.

Meanwhile, Canadian miningmultinational First Quantum Minerals hasalso expressed worry about the recentdecision taken on royalties. In an interviewwith Reuters in December 2014, FirstQuantum president Clive Newall said thatthe move would be a “massive disincentive”in terms of investing in the country’smining sector unless the government offerssome kind of capital relief.

First Quantum has not announced anyclosing down in operations or layoffs as adirect result of the tax regime changes, asBarrick Gold has done. Nonetheless, FirstQuantum did announce last summer that itwould put off more than US$1bn worth ofinvestment projects in the country as adirect result of its uncertainty about the tax regime.

Under pressure to reverse the tax hikeAs the significance and potential impact ofthe government’s move starts to sink in,trade unions, business groups and eveninternational groups like the World Bankand International Monetary Fund havestarted calling for the new tax regime to bescrapped so the royalty rates can bereversed. Some fear that Barrick’s decisioncould have a ripple effect, prompting othercompanies to take similar measures, whichwould be disastrous for the industry.Political opponents have also seized uponthe controversy. Nevers Mumba of theopposition party Movement for Multi-PartyDemocracy, had pledged to reduce theroyalty rate again if he won the country’spresidential election, the by-election forwhich took place in January 2015. AlthoughMumba was not victorious, analysts predictthat the royalty increase is likely to bereversed very soon after the election,possibly within weeks.

However, it is likely that the governmentwill seek a compromise rather than a

complete return to the previous taxarrangement before the January 2015change. Some analysts think that thegovernment could suggest a slightincrease in the royalty charges for open pitmining by just a few percentage points.Alternatively, the government might beinclined to reinstate the 2014 tax regimebut try to address issues with taxloopholes.

“There is anxiety among the miningcompanies in Zambia,” said Phiri. “A lothinges on the mining policy to be adoptedby the new President. Thatnotwithstanding, electricity supply capacityhas been increased by the main power

supply company. Meanwhile, prospects forZambia’s copper smelting sector arelooking uncertain.

“One major smelter [Kansanshi Smelter]was commissioned at the end of December2014 and will add to the existing threesmelters in Zambia. With Kalumbila comingon stream, there will still be a deficit insmelting capacity,” said Phiri. “Further,Kansanshi mine is known to have stockpilesof ore awaiting processing and is holding inexcess of 100,000 metric tonnes of copperwhich adds to the smelting deficit. As towhether companies will want to build newsmelters in Zambia, that depends largely onthe fiscal regime post 20 January 2015.”

MININGMetals



MetalsMINING

66

A mixed story in DR CongoElsewhere, copper mining projects haveexperienced a rocky start to the year.Tanzania and Zambia recently completed arailway line to help with the exporting ofcopper from Zambia and DR Congo tomarkets via Tanzania’s port in Dar esSalaam. However, workers from bothcountries have launched a strike, arguingthat they are owed five months of unpaidsalaries. The TAZARA line has beenstruggling for some time. It has beenrunning at a loss and unable to raiseenough money to keep up maintenance aswell as pay its workers.

The copper mining industry is alsoexperiencing a difficult time in theDemocratic Republic of Congo (DR Congo),Africa’s biggest producer. This is partlydown to political uncertainty. In particular,President Joseph Kabila’s relations with thegovernor of DR Congo’s most importantmining province Katanga are reported to beincreasingly strained. It is believed thatgovernor Moise Katumbi is no longerregional head of the ruling party. Reutershas also reported that Kabila has taken themeasure of calling police from the Katangaprovince to the capital in order to depriveKatumbi of ammunition.

The measures against Katumbi’s influencecome after the governor made a controversialspeech which many have interpreted asheavily critical of Joseph Kabila.

Analysts still hope that 2015 will prove tobe a positive year for DR Congo’s coppermining industry. The Swiss miningconglomerate Glencore has been investinghundreds of millions in their mining

operations in DR Congo, raising hopes thatthe country can achieve significant rises inproduction. Glencore is currently chasing aproduction target of 200,000 tonnes peryear at its most important mine, Mutanda.Analysts have predicted that copper priceswill rise in the coming months, whichGlencore should be able to profit from.

Phiri from KPMG is generally upbeat aboutprospects for DR Congo’s copper miningindustry in 2015. He said, “It is expected thatsome expansion projects by existing miningcompanies will come on stream in 2015 suchas Kalumbila Mine by FQM. DR Congo hasexperienced growth in its copperproduction, overtaking Zambia as thenumber one copper producing Africancountry. The outlook from the two majorcopper producers in Africa is largely positive.”

There have been glimmers of good newsin terms of technology investments in DRCongo’s copper mining infrastructure too.For example, operators of one particularmine in DR Congo are to start using awaterjet from Jet Edge to double itsproductivity. The EDGE X-5 5-axis waterjet isthe second waterjet system to be installedin the mine.

“The EDGE X-5 is a good system,” saidJetstream subcontractor Jake Hall. “Itsintuitive and easy to operate. I’ve seen lotsof systems in my 11 years working withwaterjets and it seems to do the job verywell and is easy to teach. The Jet EdgeAquavision Di controller is extremelyreliable. The software is great. It solves a lotof the problems of other CAD/CAMsoftware. It’s been specifically designed withwaterjetting in mind. Lead-ins and outs are

easy and it’s easy to nest multiple parts.Most importantly, you’re not stuck to acertain order. With some software, if youmiss one step, you have to start all overagain. Jet Edge’s software is flexible and it’snot labour intensive. The library of materialsis good and the speed control is good.”

“The X-Stream pump is bulletproof,” Halladded. “We feel comfortable that we have agood support network and that we can callJet Edge any time, day or night.”

New developments in UgandaIn 2015, discussion and interest aroundUganda’s mining sector is also likely tointensify. This is because Kilembe mine inUganda is due to reopen this year afterbeing rehabilitated by a Chinese investor.Kilembe has not been properly operationalfor more than thirty years. However, TibetHima Industry Company Ltd has revampedmuch of the site’s machinery. It isanticipated that the Chinese companyshould start producing copper concentrateas early as May. In August, copper smeltingshould also launch after a metallurgicaltests to determine copper quality, and asmelter has been installed. The companyaims to produce 5,000 tons of copper daily,with initial production commencing at1,500 tonnes per day and then doubling ayear later. Tibet Hima already has plans toexpand its copper operations in Uganda. Itis reported that the company is havingdiscussions with the government abouttaking over Kasese Cobalt Company Ltd,which was originally set up to see if it waspossible to convert cobalt-rich sulphideconcentrate into smelt copper. �


DR Congo has experienced growth in production, overtakingZambia as the leading producer of copper in Africa


MINING


Guinea gainsmining interestsThe investment framework around iron ore extraction and processing in the West African country is under development

Guinea’s government is planning totender permits for half of its famousSimandou iron ore area. However,

lawsuits, low iron ore prices and seriousquestions about the scale of work that thearea needs to become operational is casting ashadow over the whole enterprise.

Interest in Guinea’s mining potential centresaround the area of Simandou in southernGuinea, a rugged region peppered withmountains. Simandou is staggeringly rich iniron ore, having the largest known untappedreserve on Earth, with extremely high-qualityiron ore at that. It is estimated that thecountry could enjoy iron ore production levelsof as much as 200mn tonnes a year for 25years, which would be seven per cent ofglobal iron ore output. “The potential of themining sector in Guinea is extremely large,especially in terms of Bauxite or iron ore saysBillo Diallo, KPMG’s mining lead for Guinea.

The government says it is currently lookingto tender permits for the northern half ofSimandou, although a firm timeframe for thepurchases is yet to be announced. Thegovernment expects them to go for no lessthan US$100mn.

“Simandou is not a small mine,” Guinea’sPresident Alpha Conde recently toldreporters. “Therefore, we have to make acorrect call for tenders.”

Among those that have shown an interestare Glencore Plc and ArcelorMittal, accordingto insiders. BSG Resources (BSGR), the formertender holder, which was stripped of its rightsin 2010, is trying to block the tender and it hadfiled an arbitration request with the InternationalCentre for Settlement of Investment Disputesagainst the country to this end.

Guinea has been dreaming of tapping thepotential of Simandou for some time; thestate first handed out exploration rightscovering the whole of Simandou to Rio Tintoin 1997. Rio Tinto then lost its explorationrights back in 2008 in a dramatic twist, after itwas accused of doing little to nothing with its

mining stakes in the country. BSG Resourcesthen snapped up the exploration rights in acontroversial deal, which did not require BSGResources to make any upfront payments. Thefirm soon sold over half of its interest toleading global mining company Vale forUS$2.5bn. However, things started to go sourfor BSG Resources when a new democraticallyelected government that came to power in2010 alleged that BSG Resources had madebribes to secure its bargain exploration dealand took away BSG Resources’ rights.

A complex series of lawsuits has ensued.BSGR is pursuing action against the Guineagovernment for taking away its Simandouinterests. Vale is also pursuing an arbitrationsuit against BSGR claiming that it spendmoney on a concession that BSGR hadunlawfully obtained, offering bribes for.

Both BSGR and Vale are the object of afurther lawsuit filed by Rio, who has accusedthe pair of trying to conspire to gain keyinformation on Rio’s Simandou development.According to Rio, which now controls just thesouthern half of Simandou, Vale pretended tobe interested in buying Simandou’s rights sothat it could gain access to confidential

intelligence which it could then use todevelop its own site. Rio Tinto alleges that ithas lost billions as a result of the situation thathas developed and is consequently seeking“compensatory, consequential, exemplary andpunitive damages...in an amount to bedetermined at trial”.

Rio Tinto further claims that the formerGuinean mining minister, Mahmoud Thiam,accepted a US$200mn bribe for helping BSGRto gain mining licenses for the half ofSimandou that Rio lost back in 2008.

“At the time the defendants devised theirfraudulent scheme, Rio Tinto had spent 11years and hundreds of million of dollarsdeveloping mining operations at Simandouand expected it to yield substantial profits intothe future,” according to Rio Tinto’s Complaint,which it filed against Vale and BSGR in theUnited States District Court for the SouthernDistrict of New York in April.

The Complaint details how Rio Tinto andVale first started having discussions about thepossibility of Vale buying a stake in Simandouin August 2008. �

– Sherelle Jacobs

Guinea could see iron ore productionlevels of as much as 200mn tonnes a

year for 25 years (Photo: Lop Buri)

Iron ore


68

SOLUTIONS

Equipment

The TII Group, worldwide leading in themanufacture of heavy transport vehicles,

introduces a new and absolutely uniquevehicle to the North American market: Thenew Scheuerle HighwayTrailer MES (ModularExtra Strong) ties in with the success offormer, non-modular models for this marketand completes the successful ScheuerleHighwayTrailer series. The ScheuerleHighwayTrailer MES merges therequirements for transporting oversize aswell as concentrated loads in one vehicle,thus enabling its owner to perform anunprecedented range of transport jobs withjust one modular vehicle.

Our customers asked for a multifunctional,extra-sturdy but low weight modularsolution and we developed it,” commentedRoland Fischer, area manager sales at TIISales. “The Scheuerle HighwayTrailer MESallows a configuration as a semi-trailer for allkinds of everyday’s loads as well as anassembly with two platform trailers for anextremely long load like a splitter column,vessels or a large girder weighing up to 115tonnes” adds Fischer. This stunning solution,offered solely by the TII Group, enablestransportation businesses to extend theirrange of transportation if needed while, atthe same time, using the ScheuerleHighwayTrailer MES in a semi-trailer versionfor “everyday jobs”.

Scheuerle'sHighwayTrailer MESmakes transportationmore efficient

Chryso makes admixtures forRocla's SCCConstruction chemicals specialist ChrysoSouthern Africa is supplying precast productmanufacturer Rocla with its Chryso Optima203 and Chryso Quad 20 admixtures for usein for self-compacting concrete (SCC). KabeloSepotokele, technical sales representative atChryso Southern Africa, said, “Chryso SouthernAfrica is a market leader in concrete andcement admixtures and ancillary products.Due to the latest developments in admixtures,modern concrete is now attaining unparalleledlevels in important areas, such as mechanicalperformance, workability and durability.” Chryso Optima 203 is a new generation, highrange water reducing/superplasticisingadmixture, based on modified polycarboxylatetechnology.“This admixture is formulated primarily toachieve high workability with a wide range ofcements, which lends itself to the sophisticatedrequirements of SCC mix design,” Sepotokeleexplained. Chryso Quad 20 is a stabiliser thatfeatures a unique formulation to increase theviscosity of cement paste, with a limited impacton concrete slump and flow.Jason Roberts, a civil technologist at RoclaRoodepoort, explained recently that the globaltrend amongst precast product manufacturersis to use SCC as an alternative to conventionalvibrated concrete (CVC). With its extremelyhigh workability (flow is measured rather thanslump), SCC does not require post-castvibration, which means a greatly reduced noiselevel in the precast yard. He said, “SCC does allthe work for you; you just cast it. The end resultis a precast element that usually exhibits agenerally superior surface finish, provided thatthe design mix is correct.”Working with Chryso Southern Africa, technicalspecialist for cement & concrete technologyat PPC George Evans was primarily responsiblefor formulating the specific design mix thatRocla is using for its SCC. Roberts said thatRocla began experimenting with SCC in 2012,mainly due to the complex forms it had toreplicate for several of its products such as theAlfabloc retaining wall system, REBLOC road

barriers and wing walls for stormwater outlets.“SCC is ideal for all of our wet-cast applications.Typically our wing walls are extremely thinwalled - in some cases they are only 80 mmthick. Our Alfablocs, which are literally cast inthe shape of an ‘A’, also require complex, thin-walled moulds. It is difficult to achieve thiswith CVC. Hence the main reason forincorporating SCC into our production as itgave us the ability to take on more complexprojects and allow us to broaden our productrange,” Roberts said.Rocla called on the expertise of Evans andChryso Southern Africa when it wanted tochange its concrete mix design.“We had to look at redesigning our SCC mixwhen we changed material supplier. Youcannot simply change the cement and sandand expect to get the same product. SCC is alot more sensitive. It is almost a new animalin terms of concrete,” Roberts said.Rocla assembled an expert team of concretetechnologists to trial its SCC, including Evans,Warren McKenzie, Murray & Roberts Centre ofConcrete Excellence, and Eddie Correia,Brenton Brouard and Sepotokele, all fromChryso Southern Africa. “Chryso SouthernAfrica was recommended to us, and it providedsome admixtures for us to test. We conductedpreliminary trials and it worked out well. Theend result was a SCC that allows us to strip insix to eight hours, whereas we could notdouble strip originally,” Roberts said.

One vehicle, countless possibilities: The ScheuerleHighwayTrailer MES offers a multitude of possiblecombinations, allowing the customer to cover abroad range of transports

Chyrso will supply 20 admixtures for use in self-compacting concrete


S18 ATR May 2015 - Solutions_Layout 1 24/04/2015 13:14

70 African Review of Business and Technology - May 2015

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Industrial operations across Africa canreduce their fuel costs and minimise theirimpact on the environment with the newrange of high-horsepower QSK95 Seriesgenerator sets launched locally by theAfrican division of Cummins.

The QSK95 generator sets are CumminsPower Generation’s most powerful dieselgenerator sets to date, offering up to3.5MW 60 Hz and 3.75 MVA 50 Hz. They aredesigned with the highest kilowatt persquare foot ratio in their class, creating asmaller footprint that achieves a 20 percent improvement in power density.

The durable and robust QSK95 Seriesgenerator sets are needed in harshenvironments, such as mining, oil and gas.

Cummins Southern Africa PowerGeneration director Kobus Coetzer notedthat the new generator sets offer morepower and best-in-class fuel economy.“Over the course of 8,000 hours of

operation, the QSK95 can achieve fuelsavings of more than US$400,000 (R4-million+),” said Coetzer. Fewermaintenance requirements, longer serviceintervals and 2,000 hours to majoroverhaul are some of the reasons whythese generator sets are ideal for primepower applications. The generator setsallow 100 per cent of rated load in a singlestage, and are ready to allow facility loadin less than 10 seconds. The QSK95 Serieshas a smaller footprint, so does notnecessarily need as much space to installand, in multiple-generator setapplications, less generators are requiredto achieve the necessary power output.Other features include reduced costs, asthree-year/1,000 hour oil and filter changeintervals, low temperature after-cooling,which enhances radiator package sizingand contributes to the generator’s smallerfootprint, condition-based maintenance

sensors that analyses air and fuel filterrestrictions and enable filter changes onlywhen required, a single shaft and a dualelement cooling pump that reduces thechance of possible leaks and failure. Apositive flow circulating pump in thecoolant heater that allows even heatingthroughout the engine block for quickerand more reliable starts, an oil cooler thatgives access to the thermostat withoutlifting the engine. A mounting rail designallows the alternator to slide back on thechassis without being lifted.

Advanced generator set technology launched in Africa

SOLUTIONS

The qsk5 95 hedgehog engine from Cummins


African Review May2015

Documents

Transcript of African Review May2015