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Investment andinfrastructureat theWorldEconomicForum on Africa
Africa’sinnovative
constructioncompanies
Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
May 2016
www.africanreview.com
Profile:Luis Silva, CEO of AJS, onAngola’s economy P18
Power:East Africa’s boominggenset market P38
Mining:Working with new materialshandling machines P56
51 yearsServing business in Africa since 1964
P46
P20
African Review
of Business and TechnologyM
ay 2016Volum
e 52 Num
ber 4w
ww
.africanreview.com
ATR May 2016 - Cover_Layout 1 28/04/2016 11:07 Page 1
S01 ATR May 2016 - Start_Layout 1 28/04/2016 16:08 Page 2
UP FRONT
3
REGULARS
FEATURES18 Profile
Luis Silva, CEO of Antonio J Silva Lda Transportes Logistica, discusses the need for integratedtransportation infrastructure, in and around Angola
20 Business, Finance and TechnologyThe World Economic Forum on sustained and inclusive growth; the rise of mobile banking inSub-Saharan Africa; and why blockchain technology makes it easier to manage risks
28 TransportSouth Africa makes shipping more safe and secure; how the market is changing for powertesting in the marine sector; and technological developments for smart port solutions
32 EnvironmentSafe and sustainable water cycle management; and solutions showcased at IFAT
34 PowerAfrica's increasingly sustainable and extensive energy networks; Himoinsa’s regional andcontinental operations and genset industry prospects; Emsa Generator’s plans for the continent;icipe and Solarcentury integrate PV technology; and looking ahead to Intersolar Middle East
44 Construction and MiningSaving money on cement production; stiffer competition in construction markets; bridge-building in South Africa; asphalt production for road construction in DRC; Bobcat's backhoeloaders; key companies at bauma; material handling equipment for miners; monitoring mineralflow-rates; innovative mine infrastructure; and energy options for mine operators
04 Agenda: Developments in Africanbusiness and technology
14 Bulletin: Developments in drillingtechnology and business
62 Solutions: Equipment for Africa’sconstruction sector
Contents
Investment andinfrastructureat theWorldEconomicForum on Africa
Africa’sinnovative
constructioncompanies
Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
May 2016
www.africanreview.com
Pro&le:Luis Silva, CEO of AJS, onAngola’s economy P18
Power:East Africa’s boominggenset market P38
Mining:Working with new materialshandling machines P56
51 yearsServing business in Africa since 1964
P46
P20
28/04/2016 11:07 Page 1
Editor’s Note
Main cover picture: mophoto/FotoliaInset, bottom left: Antonio J Silva LdaTransportes Logistica (AJS)
P30
The new Profile section in this issue of African Review of Business and Technology, on page 18features AJS CEO Luis Silva on logistics. Following Mr Silva’s C-level perspectives, from page 20
through to page 27 African Review looks forward to the World Economic Forum on Africa, and theemergence of mobile banking and blockchain technology. Between pages 28 and 30, this issueaddresses shipping solutions and port technology. Environmental concerns are addressed onpages 32 and 33, with reports on processes for sustainable water supply and the solutionsshowcased at IFAT, the trade fair For environmental technologies. Issues surrounding powergeneration and distribution are discussed between pages 34 and 43, with analysis of investmentprospects in power infrastructure, the growth in demand for generators across the continent, anddevelopments in renewables, including the solutions expect at Intersolar Middle East. Looking atconstruction, from page 44 to page 54, African Review analyses cost reduction in cementproduction, the state of demand and supply in Africa’s construction markets, road production inthe Democratic Republic of the Congo, and key manufacturers at bauma. Developments in themining sector are assessed between pages 56 and 60, with respect to material handling andaccess to energy.
Dr Andrew Croft, Editor
African Review of Business and Technology - May 2016
Audit Bureau ofCirculations -
BusinessMagazines
www.africanreview.com
Editor: Andrew [email protected]
Editorial and Design team: Bob AdamsPrashant AP, Hiriyti Bairu, Sejal Bhat, Miriam Brtkova, Ranganath GS , Georgia Lewis,Rhonita Patnaik , Zsa Tebbit , Nicky Valsamakis,Louise Waters and Ben Watts
Publisher: Nick Fordham
Publishing Director: Pallavi Pandey
Magazine Manager: Richard RozelaarTel: +44 207 834 7676 Fax: +44 20 7973 0076 Email: [email protected]
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UAE: Rakesh PuthuvathTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]: Steve ThomasTel: +44 20 7834 7676 Fax: +44 20 7973 0076Email: [email protected]: Michael TomashefskyTel: +1 203 226 2882 Fax: +1 203 226 7447Email: [email protected]
Head Office: Alain Charles Publishing Ltd, University House,11-13 Lower Grosvenor Place,London SW1W 0EX, United KingdomTel: +44 20 7834 7676, Fax: +44 (0)20 7973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215,Loft No 2/A, PO Box 502207, Dubai Media City,UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261Production:Kavya J, Nathanielle Kumar, Nelly Mendes,Donatella Moranelli and Sophia PintoE-mail: [email protected]: [email protected]
Chairman: Derek FordhamPrinted by: Buxton PressPrinted in: April 2016US Mailing Agent: African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year byAlain Charles Publishing, University House, 11-13 LowerGrosvenor Place, London SW1W 0EX, UK. Peridicals postage paidat Rahway, New Jersey. Postmaster: send address corrections toAlain Charles Publishing Ltd, c/o Mercury Airfreight InternationalLtd, 365 Blair Rd, Avenel, NJ 07001.
ISSN: 0954 6782
Serving the world of business
P44
S01 ATR May 2016 - Start_Layout 1 29/04/2016 14:43 Page 3
4
NEWS
Terex Port Solutions (TPS) isworking to fulfil an order forsix diesel-electric Terex rubber-tyred gantry cranes (RTG) fromAlexandria Container andCargo Handling Co(ACCHCO) in Egypt. Themachines will be operated inthe Alexandria ContainerTerminal and the El-DekheilaContainer Terminal of thecountry’s main port inAlexandria. When the cranesare commissioned inNovember 2016, they will joinmore than 20 Terex RTGsalready in operation in Egypt.
All six RTG cranes will be manufactured at the TPS facility in Xiamen, PR China. MaurizioAltieri, general manager of the Xiamen facility, said, “ACCHCO is Egypt’s leading containerhandling company, and the fact that we will contribute to their two terminals’ sustainablegrowth is an endorsement of our product and service portfolio.”
Terex RTGs have been operating in the Port of Alexandria since 2003. Ashraf Salman,Egyptian Minister of Investment, commented, “More than 60 per cent of Egypt’s foreign trade ishandled through the Port of Alexandria. It is therefore crucial for our country’s economy thatthe fleet is based on the most reliable technology, such as the RTG cranes from TPS.”
Leading technologists and policy experts frominformation and communications technology(ICT) industry sectors, ICT regulators,government representatives and the global ‘ICTfor development’ community are strategisingaround the annual Global Symposium forRegulators (GSR), hosted by the InternationalTelecommunications Union (ITU) in Sharm el-Sheikh, Egypt. The ITU holds GSR in order todiscuss how to best harness newdevelopments in the fast-changing informationand communication technology sector.
Widely-recognised as the world’s pre-eminent gathering of the global telecomsregulatory community, the 2016 edition of GSR
serves as the launchpad for compellingdebates on a wide range of topical issues,including: artificial intelligence, smart sensors &smart networks; the ‘Internet of Things’ andM2M communications; privacy, trust andcybersecurity; and digital entrepreneurship.
Ahead of this year’s event, a special GlobalDialogue on Digital Financial Inclusion wasorganised by ITU in collaboration with the Bill& Melinda Gates Foundation, the Alliance forFinancial Inclusion (AFI), the Government ofEgypt and other partners, to look at theenormous development potential of bringingaccess to banking services to the estimatedtwo billion ‘unbanked’ people worldwide.
Biodiversity in the NearEast and North Africa
Each of ACCHCO’s two terminals will receive three RTGs
African Review of Business and Technology - May 2016
Agenda / NorthTPS container terminals ordered forthe Port of Alexandria
Tech community meets in Egypt todebate policy opportunities
www.africanreview.com
“The Near East and North Africa (NENA)has been cradle of agriculture since
centuries due to vast genetic resources.However, the basic natural resources thatsupport agricultural productivity, includingsoil, water and genetic resources, areeroding With the erosion of biodiversity,humankind loses the potential to adaptecosystems to new challenges such aspopulation growth and climate change”,said Abdessalam Ould Ahmed, assistant DGand regional representative for the Foodand Agriculture Organization (FAO) NearEast and North Africa region, stressing that“achieving food security and nutrition forall is intrinsically linked to the maintenanceof biodiversity”.
The consultation on the State ofBiodiversity for Food and Agriculture inNear East and North Africa enablesassessment of knowledge, needs andpriorities for sustainable use andconservation.
The consultation, taking place in Rome,Italy, and gathering twelve governmentrepresentatives of the Near East and NorthAfrican region, is part of a globalassessment process under the aegis of theCommission on Genetic Resources for Foodand Agriculture at the FAO.
“This report is different from our previousassessments in that it will look at thediversity of micro-organisms, invertebrates,amphibians, reptiles, birds, plants andmammals that are found in and aroundfood production systems,” said IreneHoffmann, secretary of the Commission.
Representatives of twelve countries of the regionattended a consultation on biodiversity in the Near
East and North Africa
S02 ATR May 2016 - Agenda 01_Layout 1 28/04/2016 16:18 Page 4
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+ 229 21 35 14 02 SMT BeninBENIN
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S02 ATR May 2016 - Agenda 01_Layout 1 28/04/2016 16:18 Page 5
PanAfrican systems integrator ComputechLimited has joined the IFS Partner Network asa channel partner to drive growth in EastAfrican focus industries, supporting customerswith solutions for enterprise resource planning(ERP), enterprise asset management (EAM) andenterprise service management (ESM).
Computech provides professional services,infrastructure solutions, technical support andtechnology outsourcing to all market sectorsthrough offices in Kenya, Uganda, Tanzaniaand Rwanda. Its consultants will be certifiedthrough IFS Academy - the official IFS trainingand certification programme. It will be
equipped with the skills and knowledgeneeded to ensure customers realise the mostvalue from IFS Applications.
“IFS is enjoying excellent growth acrossAfrica and offers powerful solutions for manyof our focus industries, includingmanufacturing, utilities, telecoms and mining.This makes the company a perfect partner forus as we focus on our next wave of growth,”said Hassan Popat, group CEO at Computech.“We are passionate about enabling businessesto work better, faster and profitably – a goalthat the IFS EAM, ERP and ESM applicationssupport with world-class technology.”
6
NEWS
The Government of Ethiopia is offering tax and loan incentives to encourage localpharmaceutical production to reduce the cost of drugs, increase job opportunities, improveeconomic growth and enhance foreign exchange inflow. Ethiopia has previously relied heavilyon pharmaceutical imports to meet a growing consumer demand for medicine. As a result,several initiatives will be rolled out to improve the quality of healthcare in the country, owingto a large gap in the supply and demand of drugs.
“The government has encouraged local pharmaceutical production with tax-free loans forup to five years and a 100 per cent exemption on custom duty for imports on capital goods,”said Aditi Bhalla, Frost & Sullivan industry analyst for transformational health. “Furthermore,an income tax exemption for five years is provided to manufacturers exporting 50 per cent oftheir products, or supplying 75 per cent of their products or services as production or servicesinput.”
Held recently in Addis Ababa, Ethiopia, convened bythe Economic Commission for Africa (ECA) and theAfrican Union Commission (AUC), AfricanDevelopment Week ended with a fresh commitmentto provide a framework for transition towardseconomic, social and environmental development.AUC chairperson Dr Nkosazana Dlamini-Zumadescribed the new framework - dubbed Agenda2063 - as helpful in meeting “the SustainableDevelopment Goals of ending poverty, zero hunger, quality education, water and sanitation,protecting the planet, gender equality, reducing inequalities and ensuring prosperity for all”.
Cummins powersKenyan communications
African Review of Business and Technology - May 2016
Agenda / EastIncreased opportunities inEthiopian pharmaceuticals
IFS, Computech partner forenterprise solutions
Ministers adopt a new agenda
www.africanreview.com
In order to ensure uninterrupted mobiletelecommunication coverage during
power outages in Kenya, mobilecommunications service providerSafaricom has recently entered into a newmulti-million dollar contract with EastAfrican Cummins distributor Car andGeneral, building on a existing and long-established arrangement for the supply ofdiesel generator sets to provide backuppower to the Safaricom tower network,data centres and office buildings.
According to CommunicationsAuthority of Kenya June 2015 SectorStatistics reports, Safaricom owns 67 percent of the mobile data transfer segment inKenya with over 25mn subscribers.Cummins’ African telecom segment leaderNakul Virat points out that total cost ofownership is one of the advantages thatSafaricom have valued from Cumminsgenerator sets. He said, “The supply toSafaricom includes the gensets and themaintenance and servicing of parts. Ourlocal Kenyan distributor Car and Generalhas a long history and is recognised forvalue-added services in Kenya, which hasplayed a major role in our success.”
Cummins have considerable prospectsfor growth in the African telecoms industry.In addition to the Safaricom project inKenya, Cummins and Car and Generalcollaborate already with Ethio Telecomsand Huawei in Ethiopia where they havealready supply over 500 gensets.
Ministers used African Development Week toformulate socio-economic development plans
S02 ATR May 2016 - Agenda 01_Layout 1 28/04/2016 16:18 Page 6
S02 ATR May 2016 - Agenda 01_Layout 1 28/04/2016 16:18 Page 7
8
NEWS
Automotive company Ford is investingR2.5bn (US$170mn) to expand operationsin South Africa at its Silverton AssemblyPlant in Pretoria, to produce its Everestand Ranger models. This investment willcreate approximately 1 200 new jobs atFord South Africa and within the SouthAfrican supplier network.
Jim Farley, Ford executive vice presidentand president of Europe, Middle East andAfrica, said, “Our customers love thecapability and utility offered by the all-new Ford Everest. By producing the Everest in SouthAfrica, we will be able to make it more readily available, and in a greater variety of models, forcustomers throughout Sub-Saharan Africa.
“The R2.5bn investment reaffirms the importance of these markets as part of our growthstrategy across the Middle East and Africa. It further reinforces South Africa’s position as astrategic export base for Ford Motor Company.”
Initial production at Silverton of the Everest will commence in the third quarter of 2016, withthe first units expected to come to market in the fourth quarter. South African-producedmodels will be sold locally and exported to markets across Sub-Saharan Africa.
Part of this investment has been directed towards the production of the new Ranger, which isalready running at maximum capacity at the Silverton Assembly Plant - with domestic sales andexport demand at an all-time high. Silverton features advanced automation utilising Ford's globalmanufacturing processes, and will be equipped to produce 10,000 Everest models per annum.
Jeff Nemeth, president and CEO of Ford Motor Company Sub-Saharan Africa Region, said,“The all-new Everest has been extremely well-received since it was launched in September lastyear, with demand far outstripping supply.
“This crucial investment will enable us to increase volumes and expand the Everest range toeight derivatives across a broader price range. It will allow customers across Sub-Saharan Africato choose from two powerful engines mated to robust six-speed automatic or manualtransmissions for exceptional capability.”
Sumitomo Rubber South Africa (SRSA) is investing R2bn (US$135.7mn) to upgrade andexpand its Dunlop tyre manufacturing plant at Ladysmith, KwaZulu-Natal province. Theinvestment is a catalyst for both socio-economic and technological advancement in South
Africa. The direct job creation impact and employmentspinoffs as a result of the completion of Phase One, arealready being realised. “Employment levels are alreadyincreasing due to Phase One. The first of nearly 120 newemployees needed over the next few years, have alreadybeen recruited. Phase Two will attract a further 300 newemployees. This will increase the employment of the plantto more than 1 200 employees on completion of the secondinvestment phase,” said Riaz Haffejee, CEO of SRSA.
QG Africa Hotel LP buysLusaka InterContinental
Ford is investing in local production of its all-new Everest SUV
African Review of Business and Technology - May 2016
Agenda / SouthFord invests in SA production ofEverest SUVs and Ranger pickups
Billions invested in Dunlop tyres
www.africanreview.com
QG Africa Hotel LP, a Mauritius-based subsidiary of Quantum
Global, has acquired a 100 per centinterest in the InterContinental HotelLusaka from Kingdom HotelInvestments for a gross consideration ofUS$35.9mn. Considered a city landmark,the InterContinental Hotel Lusaka issituated at a prime location in Zambia’scapital. The 244-room hotel benefits froma strong image amongst internationaltravellers, and offers significantrepositioning and expansion potential.
QG Africa Hotel LP is a US$500mninvestment vehicle, which aims tocapitalise on the emerging opportunitiesin the hospitality sector. As a long-termdirect equity investor in hotel projectsacross sub-Saharan Africa, the investmentstructure targets real estate and realestate-related investments in midscale toupscale business hotels. Commenting onthe acquisition, Quantum Global founderJean-Claude Bastos de Morais said, “I’mvery pleased with this first acquisition ofQG Africa Hotel LP. It underlines ourcommitment and investment strategy forthe hotel sector in Sub-Saharan Africa.The InterContinental Lusaka is stronglyestablished locally and will benefit fromthe planned refurbishment that willexpand and reposition the asset, therebygenerating value-added returns for ourinvestors.”
Jean-Claude Bastos de Morais, founder of Quantum Global
The Dunlop manufacturing plant atLadysmith
S02 ATR May 2016 - Agenda 01_Layout 1 28/04/2016 16:18 Page 8
S03 ATR May 2016 Agenda 02_Layout 1 28/04/2016 16:22 Page 9
A specialist in delivering connectivityexclusively to machines, Ingenu, hasdelivered in partnership with Končar INEM, aproducer of industrial electronics and powerelectronics devices and systems, hasdelivered an Internet of Things (IoT)connectivity solution to provide digitaloilfield capabilities to the Shell Nigeriapipeline facility, at a significant cost savings ofover US$1mn in infrastructure investment.Integrated and supported by UplandConsulting, a technology services firm basedin Nigeria, the Digital Oilfield (DOF) solutionprovides pipeline surveillance and wellheadmonitoring capabilities to remote
infrastructure in the Niger Delta. The DOFsolution combines IT automation andinstrumentation technologies to provide asupport platform to utilise remote field datawhile optimising operational efficiencies. Thisintegrated technology platform offers fasteranalysis and efficient data management toprovide insight into field processes, resultingin safe and efficient oilfield operation.
Ingenu’s random phase multiple access(RPMA) network technology requires lessinfrastructure investment as compared toalternative technologies assessed by Shell,such as satellite or general packet radioservice (GPRS) solutions.
10
NEWS
Industrial manufacturer Metso Corporation has signed a contract with Gécamines, asubsidiary of the Vicat group, situated in West Africa, for a second complete crushing andscreening plant. The order includes the full engineered design and supply of the primary andsecondary crushing and screening stations with new crushers and screens. Metso will alsointegrate the reuse of existing equipment such as tertiary crushers, a secondary screen andconveyors.
Along with the process design and full engineering of the plant, Metso's delivery will includea C125 jaw crusher, an HP300 cone crusher and retrofitting two HP200 crushers for the tertiarystation to produce 250 t/h of aggregate for the local markets. This plant design follows therelevant French regulations and norms for the quarry industry stressing the importance of dustsuppression systems. This is the second contract that Gécamines awards to Metso. The previousorder in 2011 included the process design for a full crushing and screening plant producing600 t/h for the aggregate industry.
The newly-formed West African Chamber of Mines (WACOM) and the Ghana Chamber ofMines are supporting WAMPEX, West Africa’s biggest mining and power industries expo. Theexhibition provides a valuable networking platform for suppliers to showcase products andservices directly to power and mining sector companies operating in West Africa andelsewhere. WAMPEX 2016 takes place from 1 to 3 June 2016 at the Accra InternationalConference Centre in Accra, Ghana.
“WACOM is a recently-formed body that will be officially launched at the WAMPEX show,”says Ahmed Nantogmah, director, external relations and communication at the GhanaChamber of Mines. “This Chamber recognises the key role played by the WAMPEX event in themining industry in West Africa, and it provides the ideal platform for the inauguration of thenew Chamber.”
Vantage Capital financesexpansion at Landmark
African Review of Business and Technology - May 2016
Agenda / WestMetso to supply Gécamines withcrushing and screening plant
Ingenu, Končar, Shell digitise oil
WACOM backs WAMPEX
www.africanreview.com
Mezzanine fund manager VantageCapital has provided US$20mn of
funding to Nigerian property developerLandmark Africa, which has developed ormanaged over 130,000m2 of prime realestate across the continent. InvestmentOne Financial Services acted as leadcorporate advisor on the transaction.
Over its nineteen-year history,Landmark has built a high-qualityproperty portfolio, including offices forover 100 corporate clients such as theNigerian headquarters forPriceWaterhouseCoopers and Procter &Gamble, and it has provideddevelopment management services forone of the largest malls in Nigeria.
Landmark is currently buildingLandmark Village, a mixed-usedevelopment with sea views on VictoriaIsland. It has already completed a 2,500person events centre, a Japanese Shirorestaurant and a Hard Rock Café.Landmark will soon enhance thedevelopment with a training centre andtwo multi-tiered office buildings with over20,000m2 of office space. The premiseswill also encompass a four-star hotel, fully-serviced extended stay apartments andupscale residences for sale. LandmarkVillage will benefit from a parking towerproviding parking space for all residentsand guests.
S03 ATR May 2016 Agenda 02_Layout 1 28/04/2016 16:22 Page 10
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NEWS
June1-3WAMPEXAccra, Ghanawww.exhibitionsafrica.com
6-7Africa Oil & PowerCape Town, South Africaafricaoilandpower.com
8-10DRC Mining WeekLubumbashi, DR Congowww.drcminingweek.com
9-11WoodEx for AfricaJohannesburg, South Africawww.woodexforafrica.com
10-12Power & Energy AfricaNairobi, Kenyawww.expogr.com
13-16Nigeria Oil & Gas (NOG)Abuja, Nigeriawww.cwcnog.com
13-16Nigeria Power ForumAbuja, Nigeriawww.nigeria-power.com
15-17Agritec AfricaNairobi, Kenyawww.agritecafrica.com
19-21Africa's Big SevenJohannesburg, South Africawww.exhibitionsafrica.com
19-21SAITEXJohannesburg, South Africawww.exhibitionsafrica.com
22-24Africa Energy Forum (AEF)London, UKafrica-energy-forum.com
22-24Water Africa/West Africa BuildingAccra, Ghanawww.ace-events.com
23-23ZambiabuildLusaka, Zambiazambiabuild.com
28-29Africa RailJohannesburg, South Africawww.terrapinn.com
Events / 2016
African Review of Business and Technology - May 2016 www.africanreview.com
Ceramic industry: the opportunities offered in AfricaThe twenty-fifth edition of Tecnargilla, theworld’s foremost exhibition of technologies forceramic tile, sanitaryware, tableware and brickproduction, will be held in Italy from 26 to 30September 2016.
As well as showcasing the latesttechnological innovations, Tecnargilla will bean opportunity to explore the businessopportunities offered by the sector in a numberof countries.
A lot of attention will be devoted to theAfrican continent, which according to figuresreleased by the Acimac (Italian Ceramic
Machinery and Equipment Manufacturers’Association) Research Department offersexcellent growth potential over the next fewyears.
Per capita consumption is still very low inAfrican countries compared to other regionsof the world. Total tile consumption across thecontinent in 2014 was 746 mn sqm, equivalentto 6.4 per cent of world consumption andequivalent to a per capita consumption of 0.65sqm (over a total population of 1.1bn people).This is less than half of the average world figure(1.7 sqm per capita) and well below that ofother major world regions (South America: 2.58sqm; Asia: 1.87 sqm; and the European Union:1.67 sqm).
Despite these low values compared to themarket potential, local production remainsinsufficient to meet demand. In 2014, just 401million sq.m of ceramic tiles were produced inAfrica, equivalent to 3.2 per cent of worldproduction.
Considering that 220 mn sqm of tiles areproduced in Egypt alone, it is easy tounderstand the market potential for tile
production. In Sub-Saharan Africa the urbanpopulation makes up just 37.2 per cent of thetotal but has grown at an annual average rateof 4.2 per cent over the last ten years, almostdouble the world average of 2.2 per cent.
There are similar opportunities for theproduction of bricks and roof tiles, which areequally important for construction growth inall countries.
Tecnargilla 2016 will therefore be an excellentopportunity for African ceramic companies andlocal investors considering investments in thesector to find out more about the latestdevelopments in the industry.
www.tecnargilla.it
S03 ATR May 2016 Agenda 02_Layout 1 28/04/2016 16:22 Page 12
WITH 2 YEAR STANDARD WARRANTY
ON POWERTRAIN
BACKHOE LOADER BY BOBCAT®
S04 ATR May 2016 Quotes on Web_Layout 1 28/04/2016 16:30 Page 13
14
NEWS
Bulletin / DrillingDando launches improvedversion of Terrier
Drilling rigs and equipment manufacturer
Dando Drilling International Limited has
launched the Terrier MK2, which has been
redesigned to incorporate a wide range of
improvements based on customer feedback
and Dando’s engineering experience;
standard features in the Terrier MK2 include: a
mast dump; an automatic stop on the trip
hammer; an extendable rod guide to support
multiple rods; a revised control console;
lightweight folding multi-position stabiliser
legs; an automatic transit lock; and a
simplified single piece drive adapter.
How modern hydrauliccylinders handle pressure In recent comments on the development of
hydraulic cylinder technology, Trevor
Hornsby, chairman of the British Fluid Power
Association (BFPA) Technical Committee 3
(TC3) Cylinders, highlighted the benefits of
carbon fibre composite materials in cylinder
manufacture; in addition to new possibilities
holes and can be used in a wide variety of
applications and challenging drilling
conditions.
ScanTech enables safer drillingrig operations
Oil & gas equipment supplier ScanTech
Offshore now provides the well test industry
with Safety Bails, an innovative ‘controlled
failure’ system that improves the safety of
semi-submersibles and drill ships to comply
with ISO 13628-7 standards, overcoming the
long-standing challenge of operating floating
drilling rigs safely during completion, well
testing, well intervention and work-over
operations; Safety Bails reduce the potentially
catastrophic risk for assets, hydrocarbon
release and personnel resulting from
compensator lock up, which can cause
excessive tension to the landing string or
completion/work over riser (C/WOR), leading
to the damage of derricks and rigs.
for the design of lightweight, high-strength
components, Mr Hornsby emphasises that
composite cylinders provide greater
corrosion resistance and increased payload
for sub-sea drilling rigs.
Surface drilling with the newAtlas Copco SmartROC D60A new drill rig that is robust enough and
smart enough to tackle aggregate and
limestone quarrying, as well as surface
mining and construction drilling, has been
developed by Atlas Copco; the SmartROC
D60 is a highly versatile down-the-hole (DTH)
rig, which is designed for drilling 110-178 mm
Composite cylinders are used increasingly in hydraulicsystems
The Dando Terrier MK2 has been redesigned toincorporate a wide range of improvements
African Review of Business and Technology - May 2016 www.africanreview.com
ScanTech Offshore’s Safety Bails improve safety in semi-submersibles and drill ships
The SmartROC D60 can also be used for toe-hole,dewatering hole and horizontal drilling
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QUOTES
African Review of Business and Technology - May 2016 www.africanreview.com
“Given the shortage of freshand drinkable water, waterrecycling and re-use plays apivotal role in driving forwardsustainable solutions that willenable the longevity of SouthAfrica’s water supply.”
Alan Willcocks, CEO, Interwaste
“We are aware of the vital role agrowing small, medium andmicro-sized enterprise (SMME)sector plays in broadeningeconomic participation anddelivering on our country'seconomic developmentobjectives, which include jobcreation. This is why enterpriseand supplier development issuch a strong focus of ourCorporate Social Investmentstrategy.”
Justice Magagula, vice president:enterprise and supplier development,Sasol Limited
“The UK is a global leader inmany of the sectors for whichKenya has greatest demand:infrastructure, advancedengineering, energy, ICT anddefence and security. In theseand other specialist areas, UKexpertise can help accelerateKenya’s development andeconomic growth.”
HE Nic Hailey, British High Commissionerto Kenya, UK Government
“The only sector that assuredlyalleviates poverty is agriculture.Our focus is to grow thisindustry.”
Honourable Given Lubinda, Minister ofAgriculture and Livestock, Governmentof Zambia
“A holistic digital transformationstrategy, which considers thedigital workforce along with thebusiness model, process andcustomer channel dimensions,will be imperative fororganisations wishing to remainrelevant in the next 10 years.”
Wayne Houghton, director of growthimplementation solutions, Frost &Sullivan Africa
“I believe that our greatestachievements have been howwe managed to grow, moveforward, and be sustainable, inspite of the major challengesand losses that we experiencedthroughout the years.”
Lance Fanaroff, joint CEO, Integr8
“The role of governments inAfrica is to offer inclusive andsustainable development.”
Augustin Matata Ponyo, Prime Minister,Democratic Republic of Congo
“The principal tenets of ourdesign philosophy thatmachines should be tough,straightforward anddependable are particularlyapplicable to Africanconditions.”
Campbell Scott, director marketingservices, Massey Ferguson
“Local contact centresincreasingly need to roll outfaster, scale up or down forcampaigns without unnecessaryexpense, and focus theirresources and budget more onstaff and customer experiencerather than infrastructure.”
Andre le Roux, managing director,Africa Region, Interactive Intelligence
“We have learnt fromexperience that solid corporategovernance helps businessesstrengthen their performanceand contribute to sustainableeconomic development.”
Chinyere Almona, head of AfricaCorporate Governance AdvisoryProgram, International FinanceCorporation (IFC)
“Currently, only around 20 percent of people in Africa have abank account, meaning peoplecarry around large amounts ofcash or store it in their homes.In contrast, around 80 per centof people have a mobile phone,so there’s a clear argument fordeveloping technologies thatwill give people digital access totheir money.”
Wiktor Podgorski, head of relationshipmanagement, Procorre
“Quotes”
Wayne Houghton at Frost & Sullivan Africapredicts emerging industries and key skills
in 2025 (Graphic: Frost & Sullivan)
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17African Review of Business and Technology - May 2016www.africanreview.com
WEB SELECTION
The Future Energy Forum(FEF) welcomed theMozambique Club in Dubaiin April 2016 to discuss thekey opportunities andchallenges Mozambiqueholds for global companies.
The event marked theexpansion of the FutureEnergy Forum toMozambique, which is in line with complementary events on otheremerging markets including Iraq and Iran.
The government of Mozambique has been pursuing public-privatepartnership, reducing bureaucracy and opening up its markets whilethe country is expected to provide business opportunities in southernAfrica.www.africanreview.com/finance
Forum highlights Mozambique potential
The Kenyan RuralElectrification Authority(REA) has approved aloan of US$118mn tofund a 55MW solarpower project inGarissa County.
Upon completion,the plant is expected tobecome the largestsolar power station inAfrica, powering about625,000 homes. Construction is expected to commence on thepower facility by July this year.
REA chairman Simon Gicharu said the funding would be used toset up around 210 solar panels spread on 85 ha of flat desert. www.africanreview.com/energy-a-power
Green light for Kenyan solar power project
Maputo has been gaining the attention of energyinvestors. (Photo: Hansueli Krapf)
The largest solar power station in Africa will beconstructed in Kenya (Photo: soonthorn)
African Review/On the WebA selection of product innovations and recent service developments for African business. Full information can be found on www.africanreview.com
NEW
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When you are the CEO of a leading logistics enterprise, in aneconomy still working its way towards regional significance,you have a responsibility to invest well, which extends
beyond your company’s commercial concerns to your country’seconomic aims. In Angola, the CEO of Antonio J Silva Lda TransportesLogistica (AJS) for African Review of Business and Technology, LuisSilva demonstrates such leadership in a country that continues todemonstrate serious regional economic potentials. In fact, he wasawarded Deloitte’s 2015 Sirius Entrepreneur Prize for Angola, whichcelebrated the 40th anniversary of the nation’s independence byhonouring entrepreneurs, managers or leaders of organisationswhose economic performance and innovation has contributed to thedevelopment and diversification of the country.
Antonio J Silva Lda Transportes Logistica was founded by Luis Silva’sfather, Antonio J Silva, and his wife, with just a single truck for theirvegetable and beer production business during the early 1970s inLuanda. His father served as the original model for entrepreneurs, withAJS prepared to venture into even the most economically-challengedareas to provide transportation services. Over the decades, AJS hasbuilt an extensive portfolio of clients and partnerships and continuesto commit to new industrial sectors, going beyond transportation into
areas as diverse as renewable energy and truck manufacturing. MrSilva spoke recently to African Review about the structure of AJS andits commercial successes, and what ongoing plans for the company’sgrowth mean in terms of socio-economic transformation in Angola.
The keywords conveyed by Mr Silva are expansion anddiversification. AJS has grown and modernised its fleet with Volvotrucks, and Mr Silva is poised to adapt the company’s operations tosuit changing market requirements, but in 2016 and onward thecompany’s plans entail investment and expansion that also bolstersmanufacturing and may be expected to lead to significant export-driven growth.
Achieving Angolan investment goalsAs Mr Silva confirmed to African Review, revenues at AJS increased bynearly 50 per cent over two years from 2014. He spoke, also, of howAntonio J Silva Transportes e Logistica is expanding from its role as anestablished full-service solutions and logistics company for thetransportation industry to a vehicle manufacturer. He has overseeninvestment in the Angolan economy in 2015, in particular, thatresulted in a revenue increase of 10 per cent, over 2014’s revenue riseof 35 per cent, and operational expansion into the Angolan provincesof Zaire, Cuando Cubango, Cabinda, and Moxico. Mr Silva hasmanaged an increasing involvement in his nation’s energy markets,investing in oil and gas and renewable energy operations– including,notably, the onshore CON6 Block in the Congo basin, where AJS ownsa 10 per cent stake, and where it is conducting seismic studies withintent to commit to exploration at an estimated cost of US$8,8mn. Inthe renewable sector, AJS is heavily involved in the construction of amini hydro plant, for which it has a concession of 30 years’ tenure.
Away from the energy sector, Luis Silva has committed AJS to newbusiness opportunities in the paper goods industry, with a stake in themanufacture of products including tissue paper, paper towels, toiletpaper and printing paper estimated at around US$12mn. And AJS isnow involved in truck manufacturing, building tanks for thetransportation of petroleum products and trailers for thetransportation of containers and goods, reflecting an investmentestimated to be in the region of US$9mn.
As Angola’s infrastructure becomes increasingly capable andconnected, AJS leads in its support for industrial expansion. Luis Silvais increasingly committed to “helping shape the country’s economicgrowth” by reaching out “beyond the transportation sector, enteringinto the fuel/renewable energy and paper goods industries along withthe truck manufacturing”, and by managing investment in the oil andgas sector as well as renewable energy production business - creatingan investment fund for Renewable Energy. As he said to AfricanReview, “This is an exciting time for our company and country.” �
Luis Silva, CEO, AJSPROfILE
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Investing in Angolanlogistics leadershipLuis Silva, CEO of Antonio J Silva Lda Transportes Logistica (AJS), speaks toAfrican Review on West African transportation
Luis Silva, CEO, Antonio J Silva LdaTransportes Logistica (AJS)
African Review of Business and Technology - May 2016 www.africanreview.com
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Africa retains a positive economicoutlook despite adverse factors at playin the global economy. The continent
is expected to remain expand byapproximately five per cent in 2016.Moreover, many of the continent’s countrieshave improved their investment climate andare undertaken macroeconomic policyreforms, and greater overall foreign directinvestment is expected.
There is a clear need for innovation anddiversification, however, as weakenedeconomic sectors, low commodity prices,currency devaluations and debt sustainabilityconsiderations all cause concern, andgeosecurity threats undermine economicperformance. It is clear that Africa’s public andprivate sector leaders need to adopt freshand even radical approaches to structuraltransformation, incorporating the rapidtechnological changes that are already createnew industrial opportunities.
High growth with high-techRwanda is emerging as a regional high-techhub. Its gross domestic product (GDP) rateranks amongst Africa’s highest. It is one of thecontinent's most competitive economies, inparticular because of its rapid evolution as aknowledge economy. Now, Rwanda faces apressing need to introduce further reformsand facilitate more investment in order toaccelerate development, to deliver holisticdigital transformation and so create socio-economic opportunities for the nextgeneration of entrepreneurs.
As a high-tech, high growth hub, Rwanda isperfectly poised to host the World EconomicForum (WEF) 2016 meeting on Africa, whichunderscores the continent's growing globalsignificance, as nations seek to improveinvestment climates and economic policies,and press ahead with sustained inclusivegrowth.
Held under the theme ‘Connecting Africa’sResources through Digital Transformation’,
taking place 11-13 May in Kigali, this 26thWorld Economic Forum on Africa convenesregional and global leaders from business,government and civil society to discussdigital economy catalysts that can driveradical structural transformation, strengthenpublic-private collaboration on key globaland regional challenges, and agree onstrategic actions that can deliver sharedprosperity across the continent.
Connecting on critical changeA central point of discussion in Kigali will bethe continent’s ability to exploit theopportunities availed by the Fourth IndustrialRevolution, a period of global change andtransformation characterised by acceleratinginnovation, greater complexity and increaseduncertainty. More than a thousand leadersfrom politics, business and civil society, fromacross Africa and beyond, will discusssolutions and commit to actions to addressthe prospective challenges and opportunitiesin this new era, including:� New challenges to the labour force
presented by machine learning.
� Smart cities and connected, inclusivesocieties capable of supporting bothurbanisation and rural economies.
� Growth strategies around environmentalsustainability and creative industries.
� New financial, commercial andtechnological developments thatfundamentally affect how people live, workand relate to each other - includingblockchain, neuroscience, quantumscience, and big data.
“The Fourth Industrial Revolution representsa unique opportunity for Africans to create afuture where economies are empowered, andsocieties strengthened, by technology,” saidElsie Kanza, WEF head of Africa.
Key corporate partners and African projectsOften, opportunity becomes progress is oftenwhere public and private sector entities worktogether. The World Economic Forum on Africais the meeting place for numerous corporaterepresentatives to engage with governmentfigures and leaders at non-governmentalorganisations. Key corporate partners at theWorld Economic Forum on Africa range fromfinanciers at Atlas Merchant Capital, CreditSuisse and the Development Bank of SouthernAfrica to technologists at Huawei, RoyalPhillips and the Rwanda Broadcasting Agencyto infrastructure specialists at Oando, TheAbraaj Group and Transnet.
Stakeholders in African economicdevelopment, attending WEF in Kigali, includeAcciona, which specialises in infrastructureprojects, renewable power and watermanagement. Acciona recently inaugurated aconcentrated solar energy plant with theengineering companies SENER and TSK andinvestors at Crowie Concessions in Bokpoort,South Africa - a turnkey project developed forthe ACWA Power with an investment of morethan €300mn (US$338mn).
Also participating at the Kigali event ispower and automation company ABB, which
World Economic forumBuSInESS
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Improving Africa'sinvestment climateThe World Economic forum underscores the continent's growing globalsignificance, as nations seek sustained and inclusive growth
Elsie Kanza, head of Africa, World Economic Forum
African Review of Business and Technology - May 2016 www.africanreview.com
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BuSInESSWorld Economic forum
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has been most recently putting its systemintegration capabilities to work to improvethe quality and reliability of power supply at asteel complex in Algeria’s north-eastern Jijelprovince. The project scope includes thedesign, supply, installation andcommissioning of the air-insulatedswitchgear (AIS) substation. Key productsupplies include high- and medium-voltageswitchgear, power transformers and a SCADA(supervisory control and data acquisition)system. Claudio Facchin, president of ABB’sPower Systems division, has described theproject as “another example of our success inpenetrating growing markets and our focuson Africa”, consistent with the company’s NextLevel strategy, which amongst other thingsprioritises sustainable value creation inAfrica’s high-growth markets.
The Bellara Steel Complex, owned andoperated by Algerian-Qatari-Steel (AQS), willhelp to reduce the country’s dependence onsteel imports, currently estimated at aboutthree million tons annually. Once the firstphase is complete, the plant will be able toproduce approximately two million tons ofsteel reinforcement bars and wiring rods ayear to meet local demand.
Professional services provider Deloitte is asignificant contributor of insightfulknowledge amongst WEF partners -particularly, with respect to technology withadvisory, regulatory and compliancecapabilities. Deloitte publishes high-levelresearch that informs Africa’s economicstakeholders on the financial risks andcommercial factors impacting businesses ofall sizes. It analyses for the continent, forregions and at country-level - most recently,reporting on chief financial officers (CFOs) inSouth Africa and in Botswana. Deloitte hasalso reported recently on the importance ofadequate infrastructure within Africa for thecontinent's long-term growth - lookingparticularly at the backlogs, funding and
mechanisms including public-privatepartnerships (PPP). In global terms, oneinteresting statistic produced by Deloitte isthat , with 70 per cent of chief procurementofficers are investing in digital technology forself-service solutions such as portals forcustomer engagement.
Technology solutions provider Huawei alsobrings its expertise and knowledge to theWorld Economic Forum on Africa. Thecompany promotes collaborative ‘open’working practices as the way forward forcompanies seeking to drive innovation, buildbetter services and satisfy emerging userexpectations. Amongst its initiatives is itsportfolio of safe city solutions. With anincreasing population and the growingfrequency of crime, the protection of citizensis paramount for city administrators.
Its essential that governments, emergencyservices, consulting firms, system integrators,and software vendors all collaborate togetherto improve safety. Huawei is working inpartnership with these organisations,implementing new technologies to build theworld’s first visual convergent commandcentre. By utilising the Internet of Things (IoT),
mobile broadband, video and big data,traditional urban safety management hasevolved to improve crisis prevention andemergency handling capabilities, whilereducing crime rates.
In fact, a centre was recently deployed inKenya to improve public safety, with Huawei’scollaboration. As a result, the crime ratedropped dramatically by 46 per cent,demonstrating the power of collaboration.The command centres now serve more than400mn people across 30 countries, enablingcities to build intelligent security systems.
Technology is extended deeper into Africanfinance by MasterCard, which claims tooperate the world's fastest paymentsprocessing network, connecting consumers,financial institutions, merchants, governmentsand businesses in more than 210 countriesand territories. Amongst its initiatives,launched shortly before its participation at theWorld Economic Forum on Africa, is a pilotprogramme to increase financial inclusion inNigeria, which aims to provide half a millionNigerian women with ID cards enabled withelectronic payments functionality.
“This campaign will help at least half amillion women in Nigeria gain access tofinancial services, many for the first time, andthe support they need to enter the country’sformal economy,” said OmokehindeOjomuyide, vice president and business leadfor West Africa at MasterCard.
Connecting the continentWith such partners, and with key figures suchas African Development Bank (AfDB) presidentAkinwumi Ayodeji Adesina, entrepreneur TonyO Elumelu and Foundation for CommunityDevelopment (FDC) founder Graça Machelleading on knowledge-sharing and debate,WEF will demonstrate commitment to digitaltransformation at its 26th African event isexpected to catalyse the strategic programmesand policies the continent needs. �
African Review of Business and Technology - May 2016www.africanreview.com
ABB is enhancing power supply at theBellara Steel Complex, owned and
operated by Algerian-Qatari-Steel (AQS)
Diversified African economies incorporateinfrastructure such as the Bokpoort solar energy plant
in South Africa, developed by Acciona and partners
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I p
t
www.liquidtelecom.com
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We can help grow world-class business out of Africa.
We believe in the ambition and potential of African business. It’s why we’ve built Africa’s largest �bre infrastructure and provide an award-winning satellite network, capable of keeping any enterprise connected, protected and competitive at all times. Because we are not just a telecoms company.
We are your technology partner.
AFRICAN.
Building Africa’s digital futurew
10:22
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According to a recent InternationalMonetary Fund (IMF) report, financialliberalisation, upgrades in institutional
and regulatory capacity and the expansion ofcross-border banking activities have allplayed their part in changing the Africanbanking and financial landscape.
However, it is the rise of mobile banking onthe back of the expansion of mobiletelephony that is responsible for the biggestupheaval in Sub-Saharan Africa’s (SSA’s)financial sector. Indeed, the IMF observesthat, “In SSA, almost one-third of accountholders - or 12 per cent of all adults - nowreport having a mobile money account.”
Mobile money accounts are especiallywidespread in East Africa, where 20 percentof adults reported having a mobile moneyaccount and 10 per cent a mobile moneyaccount only. According to the global mobileoperators' association GSMA, no less than 19SSA markets now have more mobile moneyaccounts than bank accounts.
Exchanging bits in bankingBitcoin is also swiftly gaining ground in Africa.In March this year, BitFury the Bitcoinblockchain mining infrastructure provider,announced a strategic investment in the
universal African Bitcoin exchange BitPesa.Founded only in 2013, the Financial ConductAuthority licensed BitPesa has in theintervening three years managed to positionitself as a means for local African currencies tobe bought and sold through Bitcoin to Kenya,Nigeria, Uganda and Tanzania. The monetarysettlements take place directly with Africanbanks and mobile money accounts.
Quoted in Nasdaq, BitFury CEO ValeryVavilov said, "Partnering with BitPesa was aperfect fit. Not only is BitPesa Africa's fastestand most affordable Bitcoin trading platform,but the company is also working to expandacross the pan-African continent to provideaccess to fast and secure payments tomillions of people."
When BitPesa started out it was as aconduit by which overseas workers in the UKwere to be able to send money to friends andfamily in Kenya. It soon gained a lot ofattention and this enabled it to generate thenecessary revenue to expand its services intoNigeria, Uganda and Tanzania.
With an estimated 370mn mobile phonesubscribers - predicted to reach half a billionby 2020 - combined with a lack of existingfinancial services, SSA is seen as fertile groundfor the increased adoption of Bitcoin in the
near future. But having led the way over thepast few years, East Africa is no longerexpected to be the fastest growth area.Instead, it is west and central Africa which willhave the best prospects growth in Bitcoin andmobile phone banking.
Investing in equityKurt Davis Jr, an investment banker withprivate equity experience in emergingeconomies, argues that these two areasprovide the greatest banking opportunitieson the continent. He says that Nigerian banks,which began the consolidation and regionalexpansion process in 2004 on the back ofnew regulations that significantly raised theminimum capital requirements, areparticularly well positioned to take advantageof the growth in the opportunities providedby mobile banking.
Currently, the penetration rate for mobilemoney in Nigeria and Ghana - the two bigregional economic players - is comparativelylow. Ernest & Young estimates it to be lessthan 20 per cent and 10 per cent respectively,compared with the 50 plus penetration ratein Kenya.
But Davis Jr says that this merelyunderscores the early stage nature of this
Mobile MoneyFinAnce
24
Applications bringAfrican banking aheadThe rise of mobile banking in Sub-Saharan Africa is transforming the role offinancial services in the region beyond recognition
African currencies can now be bought and soldthrough virtual exchanges
African Review of Business and Technology - May 2016 www.africanreview.com
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FinAnceMobile Money
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Why African banks will need torespond to multiple pressures
African Review of Business and Technology - May 2016www.africanreview.com
The latest edition of KPMG’s Evolving BankingRegulation report looks at the Sub-SaharanAfrican (SSA) markets and banks operatingwithin the region and focused on theregulations that are driving changes for theAfrican Bank of the Futureoperating businessmodels. The report alsoidentifies key challengesbanks will face in relationto meeting the needs andexpectations of customers,investors and regulators.
Globally, regulatoryreforms intended to improvethe resilience of banks andmarkets, make banksresolvable without recourseto public funds, and increasethe intensity of supervision onSystemically Important Banks(SIBs) have begun to takeshape. There has been arelentless march by regulatorsacross the globe to preventfuture systemic failures by strengtheningfinancial institutions themselves, and themarkets they operate in as a whole.
According to Thierry Mbimi, partner andhead of financial risk management for KPMG
in Nigeria and a leader in KPMG’s Centre ofExcellence on Regulation in Africa, “As a resultof this we have seen a host of newregulations and modifications to existing
ones. However, in SSA thechallenges andopportunities are a littlemore diverse.“
To gain insights into thepossible regulatorylandscape that Africanbanks will face in thefuture, KPMG consideredregulations already inplace across differentjurisdictions around theworld, and also thoseregulations that arelikely to be issued overthe short-to-mediumterm that would beconsistent with theSSA banking
environment.KPMG maintains the view that for banks’
continued survival and performance, theseregulations will typically be focused on thefollowing critical areas, including: liquidityand capital, customer and markets, andgovernance and supervision.
financial services sub-sector in West andCentral Africa. And in the long term mobilemoney remains the lucrative opportunity forbanks in West Africa, particularly as a way toaccess consumer spending. The GSMAdescribes growth in mobile money services in2015 across West Africa as “dramatic”, withBurkina Faso, Mali, Ghana, and Cote d’Ivoireall contributing to the substantive regionalturnaround”.
Looking for low-income customersYear-on-year growth in active (mobile money)agents in West Africa in 2015 was 60.1 percent. This was twice the growth rate of anyother region. In March, mobile phonebanking in West Africa was given a mightyfillip with the announcement of a new threeyear advisory agreement between the WorldBank’s International Finance Corporation (IFC)and Fidelity Bank Ghana.
The Fidelity Bank agreement follows anearlier IFC accord to develop and expandmobile financial services in Ghana that wasreached with Tigo Ghana in May 2014. Under
the terms of the Fidelity Bank accord, the IFCwill provide the bank with strategic andtechnical advice for the expansion of theagent/mobile banking service.
“This will include advice on riskmanagement related to deploying digitalfinancial services and on customeracquisition with a focus on the unbanked,”the IFC said. The aim is to make financialservices “more easily available to low-incomecustomers, small-scale entrepreneurs andrural communities”.
Fidelity Bank was the first bank in Ghana toexpand formal financial services to previouslyunbanked customers. In 2014, it launched itsinclusive banking service ‘smart account’ withthe goal of reaching five million customers.The Partnership for Financial Inclusion (PFI), aUS$37.4mn joint initiative of IFC and TheMasterCard Foundation, is working to expandmicrofinance and advance digital financialservices throughout SSA. The programmeworks with microfinance institutions, banksand mobile network operators across thecontinent to further financial inclusion. In
fiscal year 2015, the IFC committed US$3.6bnin new long-term financing and support forprojects in SSA.
A positive futureThe outlook for mobile banking in SSAappears to be positive. Once dominated bystate-owned institutions and distorted intheir operations by restrictive regulations, theIMF notes, “banking systems in SSA are nowdeeper and more stable, and the incidence ofsystemic banking crises have declineddramatically in the past two decades”.
The challenge, though, must be to ensurethat the ongoing innovation in mobilebanking is up to the task of addressing someof the remaining difficulties that Africancountries still face in moving to a non-cashmeans of payment. If that challenge is met,then SSA’s once almost non-existent financialservices sector will have taken anextraordinary leap forward into the 21stcentury in the space of just a few years. �
Nnamdi Anyadike
The ‘pay what you want’ currencytransfer service Xendpay enables
transparent money transfer. A Xendpayuser can specify how much he or shewants to pay, which currency to send itin, and who the money is to be paid to.If the recipient has received moneybefore, the payer can just pull up theirdetails.
Paying and trackingXendpay was founded by ethicalinnovators seeking to reduce the cost ofinternational money transfer whilstmaintaining high quality customerservice. In is built around the concept ofa ‘no fees international money transferservice to bank accounts’, offering areliable service at optimal exchangerates and minimal transfer times.
Xendpay works with fees that reflectwhat the transaction is worth. In theinstances that involve third partycharges, Xendpay will indicate exactlywhat fees must be passed on, and it willrecommend a cheaper alternativewhere possible. The quote will itemiseall charges. And the transaction canthen be tracked on a dashboard.
Paying what you wantfor money transfer
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As a form of currency, Bitcoincontinues to divide opinionacross financial services,
technology, politics and civil libertiesgroups. Some see it as a means to freecurrency control from centralisedforces and central banks, while othersfear it has already become a platformfor criminality and black marketeers.Despite these questions about the
viability and suitability of Bitcoin as acurrency, the underlying technologythat enables Bitcoin to function –namely Blockchain – presents us with afundamental opportunity for the wider
marketplace. This technology has thepotential to improve security, processesand systems in the financial servicessector, government and anywherewhere accurate, tamper-proof record-keeping is essential.
Greatest disruptor in a generationBlockchain is arguably the greatestdisruptor to the global financial systemin a generation. While manytechnologies have changed banking, fewhave fundamentally challenged theoperating principles underlying manybanking transactions and book keeping.The clever mathematics and elegantstructure of the blockchain means thatall transactions involving intermediarychains can be collapsed down to aninherently trustworthy peer-to-peerconnection between the counterpartyinstitutions. What does this mean in
InfosysPROFILE
26
Blockchain: Looking beyond BitcoinWith blockchain, a user can maintain a transparent record of all transactions, making it much easier to actively manage risks
Bitcoin is a form of digital crypto currency, created and held electronically. While Bitcoins themselves have been subject of controversy in various countries, it is theunderlying blockchain or distributed ledger technology that has profound implications for industry (Photo: semisatch/Fotolia)
African Review of Business and Technology - May 2016 www.africanreview.com
Blockchain takes its lead from a number of computing
paradigms, in particulardistribution and cryptography”
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PROFILEInfosys
27
practice? This great contraction reducesthe overheads of everything from simpleinternational money transfers toresolving complex derivatives contracts,and in many cases takes processes thatonce took weeks to reconcile andreduces them down to just minutes.Blockchain takes its lead from a
number of computing paradigms, inparticular distribution andcryptography. Existing ledgeraccounting in the financial servicessector is usually in the form of acentralised and private database, nottoo different from the paper-basedversions used a century ago. Withblockchain, the ledger moves to anopen and distributed record sharedacross the participant nodes in theblockchain. Each node maintains itsown version of the ledger, and thenetwork must collectively agree on theauthenticity and correctness oftransactions before carrying out anupdate.This is made possible by using a
mathematical consensus technique thatremoves the need to have a centralauthority. Instead, the participants inthe network collectively enforce trustand maintain the true state of theledger: the greater the number ofparticipants, the more robust thenetwork and by being inherentlysuspicious, the network actuallygenerates trust with each newtransaction.
Value generation – Blockchain in bankingBlockchain has the potential to unlocktremendous value for financial servicescompanies as well as individualaccount holders. By not requiring priortrusted relationships, or a chain ofintermediaries to establish bona fides,transactions can be completed quicklywhile maintaining a very high degree oftrust. Banks can reduce transactionsfees and the opportunity cost of longsettlement cycles.Of course, any change to banking
processes that reduces these types ofoperating costs can also impact theway the banks make money from
processes and charges. By bringing thisparticular process cost down to afraction of current levels, banks mayneed to restructure part of theirrevenue base to account for the changein admin-based revenue. Thankfully,blockchain also has a role to play inbuilding new revenue-generatingbusiness models, as well as changingold ones.Consider your average retail banking
customer. Regulators in severalmarkets, most notably the UK, arepushing to make accounts fullyportable in order to simplify theprocess of moving banks and toencourage competition betweenestablished retail banks and newchallenger banking businesses. In thisliberated environment, transaction feescan no longer be the battleground forretention. Instead banks will need tofocus on building sticky, personalisedrelationships with their customers.Blockchain will enable this by both
reducing the overheads, and alsoproviding a rich source of analyticsinputs that can be combined with othersocial and personal information to givea uniquely personal digital interactionwith the bank.In time, banks may even build
services on blockchain to managedigital wallets or even legal documentssuch as property deeds or wills.Governments in Latin America andGreece are already exploring how tomove their land registries to blockchain,providing a roadmap for othergovernments to follow.From a systemic point of view,
blockchain will also enhance riskmanagement at a macro level.Blockchain maintains a transparentrecord of all transactions, making itmuch easier to unwind complextransactions back to constituentcomponents, and as a result activelymanage risk. In many ways, had suchtechniques been available at the time of
the global financial collapse in 2008,the systemic failures could have beendetected and avoided before themeltdown took place.The measures introduced in the wake
of the collapse place additionalregulatory and compliance overheadson institutions, and so systems whichare inherently trustworthy andtransparent would be a huge enabler of value.Blockchain has the potential to create
a highly competitive marketplace fortrusted accounting and transactionbookkeeping. At a pure financialservices level, it lowers cost andimproves security and accuracy oftrades. Up to a government andadministrative level, blockchain has thecapability to allow departments tosignificantly overhaul and simplifycomplex transaction-driven systemsincluding land sales, property deals,government debt deals and more.Developing blockchain strategies is
without doubt one of the mostsignificant considerations for the rest ofthe current decade. �
Blockchain has the potential to improve security,processes and systems in the
financial services sector,government and
anywhere where accurate,tamper-proof record-keeping
is essential.”
African Review of Business and Technology - May 2016www.africanreview.com
Tony O’Donnell, head of research at EdgeVerve, an Infosys Company
In time, banks may even build services on Blockchain tomanage digital wallets or even
legal documents such asproperty deeds or wills”
S06 ATR May 2016 Report Finance_Layout 1 28/04/2016 16:37 Page 27
All eight of South Africa’s commercial seaports are receiving asignificant security boost, with the rollout of a new US$57mnsystem by the Transnet National Ports Authority (TNPA).
Cumulatively, 864 old cameras will eventually be replaced with 2100high definition CCTV cameras covering previously blind areas.Cutting-edge long range cameras, as well as infrastructure upgradesto control rooms and the training of staff at each site, are also beingincluded in the overhaul. In conformance with TNPA’s SecurityStrategy Plan, the new system is intended to safeguard customercargo, port users and Transnet’s own assets, staff and contractors.
“CCTV is but one aspect of our broader integrated technologicalsecurity system which encompasses technology, skills and systems. Asa port authority, we are required to take preventative measuresagainst security incidents that may affect ships or port facilities used ininternational trade,” said Phumuzi Sigasa, head of TNPA’s Securityportfolio.
Durban, Africa’s largest container port, has already been upgradedwith 300 cameras and related technology. Port users are nowprotected by thermal imaging, license plate recognition and controlrooms with video walls and integrated management software. Thelong range cameras have been set up to monitor all port channelentrances and outer anchorages.
Port Elizabeth is in the process of installing the system currently,with Cape Town, Richard’s Bay, East London, Nqgura, Mossel Bay andSaldanha, along with TNPA’s head office in Johannesburg, to follow.
Sigasa said that the upgrade seeks to address common incidentssuch as stowaways, theft of cargo and damage or theft of assets.
“For security to remain relevant and provide the necessary service, itmust forever study the trends and continuously assess its readiness tothwart any threat that confronts it.”
In Durban, the system has already assisted in dealing with variousincidents, including three stowaways attempting to disembark from avessel, various trespassing incidents, as well as the removal of thebody of a deceased person found in a neighbouring canal.
Sigasa added that shipping lines have welcomed the upgrade. “ForTNPA and partners within the maritime sector the major benefit is thatit entrenches the perception of South African ports as safe and securegateways for trade.”
According to TNPA CEO Richard Vallihu, the security upgrades formpart of a web-based integrated management system which aims toenhance port performance and establish South Africa’s commercialports as ‘smartPORTs’. The smartPORT concept seeks to use integratedinformation systems to provide real-time access to the full range ofoperational information at ports.
“Global ports are adopting smartPORT concepts and the world isincreasingly embracing digital technologies and data analytics to
make sense of the information we have around us,” Vallihu explained.The management system is a first in Africa, integrating all ports on asingle platform integrated with all logistical systems. The system cutsout the laborious task of using manual processes for monitoringmarine operations, vessel traffic services and performance ofterminals.
It has reportedly compared favourably to world-class integratedsystems in Malaysia and Singapore.
“We believe that the glue of our entire port system is informationsystems, managing just about every input and output to makemonitoring, tracking, evaluating and optimising a lot simpler,” notedVallihu.
The International Transport Forum Transport Outlook 2015estimates that trade between African countries will increase by 715per cent between now and 2050.
International freight transport volumes are also expected to growby 200 per cent over the same period. As with almost every aspect ofour world, technology can and should be used to make the handlingof this explosive growth that much easier.
As one of Africa’s biggest maritime traders, South Africa has startedto practically implement technology in ports. Other countries such asKenya, Tanzania and Egypt are also looking to upgrade their ports byautomating processes and installing technology.
It looks as though we are heading towards a new era, where theoperations of the continent’s ports can be fully optimised. This willprove vital in developing an efficient port management capability,whilst helping importers and exporters to deliver their services asquickly and competitively as possible. �
FreightTRANSPORT
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South Africa starts making ports smarterSouth Africa is boosting the perception of its ports as safe and secure gate-ways for international shipping trade
smartPORT is a first in Africa, integrating all ports on a single platform integrated with all logistical systems
African Review of Business and Technology - May 2016 www.africanreview.com
S08 ATR May 2016 Report Transport_Layout 1 28/04/2016 17:15 Page 28
TRANSPORTShipping
29
Meeting the powerneeds of ‘super vessels’How the market is changing for loadbanks used for power testing inthe marine sector
African Review of Business and Technology - May 2016www.africanreview.com
In recent times we have witnessed amassive growth in the size of seagoingvessels for transportation of products,
leisure and oil & gas exploration &production. As these vessels continue togrow in size, their power needs grow too, asdoes the complexity of on-board systems.Modern sea vessels often contain complexpropulsion, production and environmentalsupport systems which must operate reliablyfor long periods of time, often hundreds, ifnot thousands of miles offshore. Ensuring theavailability of power for these systems is acritical function to guarantee vital servicescan run uninterrupted, making pre-launchreliable testing of power supplies of particularimportance. This is an area of increased focusfor ship owners and offshore classificationagencies as they seek to optimise safety andensure power availability, driving continuedgrowth in the use of specialist equipment forthe robust testing of onboard power systems.
Power drivers in tradeIn the 1940s the world moved on fromcolonialism to globalisation. This movementwas accompanied by rapidly-growing tradeand the need for effective means of transport
which was the first driving-force in thedevelopment of sea vessels. Fast forward 70years and we now have different driving-forces in the growth and development ofthese vessels. For example, the reason behindthe recent increase of the size of containerships is economy of scale. Fitting moreproducts on container ships and making lessjourneys will inevitably save money. One ofthe world’s largest container ships, the MSCZoe, is 1,297ft (396m) long and can carry over19,000 20ft equivalent units “TEU” or shipping
containers as most people know them.Simply put, it is a lot cheaper to transportcargo if you move large quantities at a time.
As ships continue to grow in size andcomplexity, the power systems will continueto develop and the need for testing willremain an absolute necessity.
Any offshore power generation unit is acomplex system, or series of systems, workingtogether to perform several functions atonce, and at the system’s heart is thegenerator or gen-set. This could consist ofseveral gas turbines and/or diesel generators.However, various discrete systems andcomponents complete the total package,such as alternators, regulators, transformersand switchgear. These additionalcomponents typically come from variousmanufacturers, and are usually designed tointerface with a number of makes, models,and sizes of generators. As with any othermechanical or electrical components, all arepotentially subject to failure, and havevarying maintenance needs, at the very leastrequiring regular testing and servicing. �
Paul Brickman, sales and marketing director,Crestchic
Divisions ofLifting Solutions That Work.
S08 ATR May 2016 Report Transport_Layout 1 28/04/2016 17:15 Page 29
New innovations in areas like ports, terminals, related logisticsand transport industries, will be crucial for African countries toachieve their economic growth ambitions over the coming
years. To beneficiate and export its commodity assets, countriesthroughout the continent need efficient transport and logisticsenvironments.
In the area of smart ports, in particular, there are opportunities tocombine business process reengineering with the introduction ofsmarter technology across the total facility: such asgeolocation/geofencing, connected objects and devices, Cloud-basedservices, mobility services, and Big Data analytics.
With technology at the heart of the thinking, it becomes possiblefor ports to achieve higher productivity levels; reduced operationalcosts; improved levels of security; higher safety standards; increasedservice levels; and improved asset utilisation.
Ever-present challenges With limited ability and the financial implications to expandgeographically and political pressure to lessen their environmentalimpact, ports are continually striving to generate better efficiencies
and higher productivity. They require technology that caters for the‘just in time’ nature of land-to-sea logistics, helps reduce dwell timeand congestion, minimises damage and theft and ensures strongsecurity and protection of national borders.
Faced with stiff competition from other ports and alternative inlandoptions and being a notoriously capital-intensive business, portoperators place a heavy emphasis on cost control. This is a high-stakesgame; as the efficiency of a nation’s ports has billowing effects for thecountry’s entire economy.
Connected devices, analytics, and mobility: a powerful blendTrusted outsourcing partners can demystify much of the complexity around new technology — working with ports to definethe best solutions to address specific challenges, showing howtechnology has transformed other ports’ operations, and ultimatelydelivering and managing the services. For example, a port operator could pull together real-time information from variousplayers in the ecosystem: truck drivers, hauliers, parking spaceoperators, port road management and vessel tracking systems. Byintegrating this data into smart analytics platforms, it can inform thescheduling of trucks entering, off-loading, on-loading containers, and exiting the port.
In fact, there are endless opportunities available by combining threerelated technology trends: connected devices, analytics and mobility.Every vehicle, device or asset in the port is connected with wirelesstechnology, beaming information into an analytics platform, whichthen distributes useful information to any mobile device. Thisconfluence of technology not only enables smoother operations, buthelps port operators to fluidly integrate into external partnerenvironments: such as shippers, carriers, agents/forwarders, truckingand rail companies, customs and government bodies. However, thetruly transformative advantages of these new technologies go beyondfaster reaction times and optimising logistics schedules. They lay thefoundation for the future of predictive analytics, machine-learning andautomation.
With embedded sensors on vehicles and assets recording everymovement in the port, patterns start to develop and the port’soperations can be automatically adjusted based on past experiences,and expected activity within the port.
Eventually, through machine-learning, a port’s operations can befully optimised — ensuring an efficient port management capability,and helping importers and exporters to deliver their services asquickly and competitively as possible. �
Gavin Holme, country head, Africa, Wipro Technologies; and Richard AButcher, global head & director of ports and terminals, Wipro Technologies
FreightTRANSPORT
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Excelling in logistics environmentsHow sophisticated communications technology and smart port solutionscan help fast track Africa’s growth
Ports require technology that caters for the ‘just in time’ nature of land-to-sealogistics, helps reduce dwell time and congestion, minimises damage and ensuresstrong security (Photo: kamonrat/Fotolia)
African Review of Business and Technology - May 2016 www.africanreview.com
S08 ATR May 2016 Report Transport_Layout 1 28/04/2016 17:16 Page 30
MAN kann.
MAN for the construction industry.MAN TGS WW for North-, East-, West-, Central- & Sub-Equatorial AfricaFor more Information (North-, West-, Central- & East Africa) visit www.man-northernafrica.comFor more Information (Sub-Equatorial Africa) visit www.entry.man.eu/za
S09 ATR May 2016 Environment_Layout 1 28/04/2016 17:25 Page 31
South Africa continues to face the mostsevere drought in over two decades,where five out of the nine provinces –
namely the Free State, KwaZulu-Natal,Mpumalanga, Limpopo and the North West -have been declared disaster areas. However,the stark reality is that climate change andinadequate infrastructure will continue toaffect water security, long after the droughtends. Corporate SA reflects on our watercrisis, in light of Water Week.
According to Peter Townshend, seniorengineer, structures, Africa, at WSP | ParsonsBrinckerhoff, “Climate change, andparticularly El Niño, has caused a noticeableincrease in surface temperatures that led toincreased evaporation, in addition toincreased water consumption by peopleattempting to remain cool and hydrated, andmaintain crops and gardens. This hasreduced the country’s stored water reserves,which had already been undermined by thelack of rain. Moreover, while some relief isexpected from March onwards when El Niñomoves on, experts believe that broaderpatterns, such as weather and yearly rainfall,will be altered.”
An uncertain outlook General projections demonstrate that,beyond the current drought and El Niño cycle– as a result of a recurring phenomenon,characterised by below-normal rainfall inparts of the southern hemisphere – yearlyrainfall for Southern Africa is expected todecrease. However, the outlook is not quiteuniform for South Africa as, while the generalforecast predicts reduced water supply formuch of the country, there is someuncertainty as to whether there will be adecrease or increase in the eastern and north-eastern parts of the country.
“ Currently Government is squeezed formoney and skills to build new dams.However, if a multi-layered approach can betaken to upgrade and raise our existing dams,
we would be able to increase the country’swater storage capacity and water supply byapproximately 20 to 30 per cent,” saidTownshend.
Changing capacityKPMG infrastructure and major projectsassociate director Antonino Manus, agreeswith Townshend. Manus said, “Approximately37 per cent of South Africa’s water losses areas a result of failing water supplyinfrastructure. Despite reconciliationstrategies compiled by the Department ofWater and Sanitation or water demandmanagement plans commissioned by localmunicipalities, municipal reticulationinfrastructure is outdated and failing – whereinfrastructure upgrades are slow toimplement.”
According to Manus, this is partially owingto inadequate funding and technical capacity,but also applauds Government’s efforts toaddress water infrastructure problems bycreating programmes such as the War onLeaks, reallocating funds to addressinsufficiencies and implementing peer review
sessions among municipalities and waterauthorities. He said, “Government andbusiness have been forced to address waterinfrastructure funding and while this shouldcontinue, there is also room for more public-private collaboration on; infrastructureplanning in relation to urbanisation andpopulation growth, project execution, moreproactive asset management planning and, inaddressing critical societal attitudes andbehavioural changes.”
Sustainable solutionsIt’s not all doom and gloom, however. ErnestMahlaule, president, Johannesburg Chamberof Commerce and Industry (JCCI), believesthat while there are tough days ahead and wecan expect harsher restrictions, priceincreases and possibly even sanctions or finesfor perpetrators on restrictions, the plight ofthe water crisis has also given rise toinnovation adoption and new business andindustry opportunities. Mahlaule said, “ Thecurrent water crisis certainly creates ademand-supply market for entrepreneursand businesses .” �
WaterenviRonMenT
32
Corporates share viewson SA's water crisisKPMG offers support across the water cycle, from resource management tosafe and sustainable collection and wastewater discharge
South Africa is facing severe drought(Photo: spiritofamerica/fotolia)
African Review of Business and Technology - May 2016 www.africanreview.com
S09 ATR May 2016 Environment_Layout 1 28/04/2016 17:25 Page 32
enviRonMenTiFAT
33African Review of Business and Technology - May 2016
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Held this year between 30 May and 3June 2016 at Messe Munchenexhibition grounds in Munich,
Germany, environmental technologyexposition IFAT serves as a platform forexhibitors to showcase mobile solutions instreet cleaning, transporting waste andsorting and processing secondary rawmaterials.
Aebi Schmidt, which provides wintermaintenance, street sweepers, municipaltechnology, airport, agricultural and railtechnology, is offering the Swingo 200+,which the company claims to be anenvironmentally friendly compact sweeper.The Koanda blowing and suction system has
been designed to reduce emissions ofharmful fine-particle dust by up to 95 percent, stated the company and offersmaximum uptake of debris and low wear onthe engine. A high-performance waterrecover system saves valuable resources andpresents the collected debris in a compact,space saving form.
Waste and recycling is a big topic also atthe British manufacturer JCB. One of theproducts this company will be showcasing inMunich is the 457 Wastemaster wheel loader,which was launched last year. This machine isfitted with a new ‘CommandPlus’ cabstructure, which offers superior visibility,greater driver comfort, ergonomic
advantages and lower noise levels.Another product being showcased at the
show is the new roll-off tipper from Meiller, aspecialist in construction logistics and waste-management systems for municipalauthorities. The RS21 replaces the RK20 in thehighest volume segment of three-axle truckchassis with a permissible gross vehicleweight of 26 tonnes. This year the vehiclemanufacturer Faun is presenting not one butseveral product improvements to its refuse-collection vehicles.
IFAT takes place every two years, with the2014 edition welcoming a total of 3,081exhibitors from 59 countries, and 135,288visitors from 168 countries. �
Mobile solutions to beshowcased at iFAT 2016
S09 ATR May 2016 Environment_Layout 1 28/04/2016 17:25 Page 33
Today, about 600mn household and10mn small and medium-sizeenterprises in sub-Saharan Africa (SSA)
are not connected to the power grid. The UK,with a population of 65mn, has more powerplants than the entire SSA region, whosepopulation totals one billion. The combinedpower generating capacity of 48 SSAcountries is estimated at below 100 gigawatts(GW) - equivalent to national capacity ofanother European country, Spain.
The installed capacity per capita in SSA(excluding South Africa) is roughly a third ofSouth Asia’s (the two regions were equal in1980s) and about a tenth of that of SouthAmerica. Per capita consumption of electricityaverages 40-45 kilowatt hours (KWh) permonth in the region, compared to100+KWh/month in the developing world andnearly 1,000KWh/month in advancedeconomies. As of 2012, about 35 per cent ofAfricans had access to electricity, up from 32per cent in 2010, according to the 'ProgressTowards Sustainable Energy: Global TrackingFramework 2015' report - but, whilst 25mnpeople a year have gained access,electrification is barely keeping pace withpopulation growth. In fact, less than one inevery five people living in 19 African countrieshad access to electricity during 2012.
Transmission and distribution channels arenotoriously unreliable. About 15-20 per centof installed capacity remains un-operationaldue to ageing plants and poor maintenanceby state-owned utilities - operating mostly athefty losses. Concurrently, frequent poweroutages force firms and some households torely on expensive back-up generators thatcost US$0.40/KWh. In Congo (DRC) andEquatorial Guinea, generators account for asmuch as half of total installed capacity. ForWest Africa as a whole, dominated by power-hungry Nigeria, about 17-20 per cent ofinstalled capacity comprises generators.
Africa is among the world’s most energyintensive regions by using twice as much
energy as Europe to produce a single dollar ofgross domestic product (GDP). Manycountries depend on thermal generationusing fossil (heavy) fuels at a cost of US$20-30/KWh. These sources are more expensiveand produce significantly fewer productivitygains for consumers than modern energysources. Professor Anton Eberhard atUniversity of Cape Town wrote, “SSA hasgenerally lagged behind other regions of theworld in terms of infrastructure, power sectorinvestment and performance.”
Signs of significant changeThe African countries are committed to theUnited Nation’s objectives of the SustainableEnergy for All (SE4All) initiative by 2030. Chiefpriorities include providing universal accessto modern energy services, doubling theglobal rate of improvement in energyefficiency, and doubling the share ofrenewable energy in the global energy mix.By investing both on-and-off the grid,attracting private sector investments fromindependent power producers (IPPs), andleveraging new technologies in therenewable field, SSA with the support ofdevelopment partners can, too, achieveenergy security.
“What this shows is that universal access by2030 may not be achievable usingconventional approaches, yet still remainswithin reach as long as we focus on providingbasic - but meaningful - forms of access,” saidAaron Leopold, global energy advocate withPractical Action.
Some countries are making tangibleprogress towards improved access toaffordable, reliable, modern and sustainableenergy for all by 2030. Ethiopia, Nigeria,Rwanda and South Africa were among thefastest moving countries regionally in termsof expanding electrification from 2010-12.Even in under-developed Congo (DRC) andMali, the electrification rate had risen abovepopulation growth and ambitious targets andelectrification programmes have beenadopted in countries like Kenya and Tanzania.The latter aims to expand national generatingcapacity to 10,000 megawatts (MW) by 2025.
The African continent is blessed with someof globe’s most prolific hydropower,geothermal, solar photovoltaic (PV), wind andbiomass potential, as well as large reserves ofcrude oil, natural gas and coal that cangenerate considerable energy supplies, ifproper infrastructures are put into place.
“The evidence shows that many of thehuman development impacts ofelectrification are achievable with relativelymodest amounts of electricity consumption.What we need is for stakeholders -governments, civil society, energy suppliersand consumers - to work towards achievingsustainable energy for all. Ending energypoverty by 2030 is something that we canachieve," explained Anita Marangoly George,senior director, energy and extractives globalpractice, World Bank.
Prolific resourcesSolar power: SSA benefits from warmertropical climates with plentiful sunshine year-around. For example, Zambia has an average2,000 to 3,000 hours of sunshine annually.The region is starting to recognise ways ofleveraging this natural resource by employingtechniques to determine where and when todeploy utility-scale solar PV plants, off-gridsolar PV solutions and hybridised mini-grids,which can blend fossil fuel with solar PVgeneration. Solar PV can also be deployed
InvestmentPOWER
34
Providing new Africanpower generationProgress made and prospects for sustainable energy networks, extendingaccess to underserved regions
African Review of Business and Technology - May 2016 www.africanreview.com
Table1: Financing Required to Implement Africa's Power Plan (in US$mn) Fast-track Longer-term
2016-20 by 2024SOLAR 3,240 4,760 HYDROPOWER 1,208 792 GEOTHERMAL 950 1,850 TOTAL 5,398 7,402 Source: Accelerating Climate-Resilient & low-Carbon Development
(The World Bank report 2015).
S10 ATR May 2016 Report Power_Layout 1 29/04/2016 10:20 Page 34
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S10 ATR May 2016 Report Power_Layout 1 29/04/2016 10:20 Page 35
InvestmentPOWER
36
more rapidly than other technologies androlled out in a modular/distributed fashion.Declining cost of solar PV technology hasencouraged countries to diversify theirenergy mixes without increasing carbonemissions. In Uganda, ‘Feed-in-Tariff’ (FiT) forIPPs was cut to US$0.17/KWh in 2014 and(FiT) for Ghanaian solar projects are set atUS$0.20/KWh. Despite growing popularity,solar systems [so far] account for paltry oneper cent of the electricity generated acrossSSA - with a notional pipeline of just five GWof solar PV projects - the vast majority ofwhich is in South Africa. Hydropower: is a clean, low-cost, mega-scalerenewable energy resource available to theregion that does not directly emitgreenhouse gases or other air pollutants andthat can be scheduled to produce power asneeded, depending on water availability.Cameroon, Congo (DRC), Guinea, Ethiopiaand Zambia - referred to as ‘the water towersof Africa’ - possess significant hydro capacityto produce large-scale electricity at aboutone-third or less of the cost of thermalgeneration. According to industry experts,some 50GW of hydropower could bedeveloped within SSA, at minimum costs ofUS$0.01-0.08/KWh - with potential fortransformative, growth-enhancingdevelopmental impacts. Hydropowercurrently provides quarter of SSA’s powerneeds, and there is potential to increase thisshare to 40per cent over the coming years.The Salini Construttori Group - one of Italy’slargest contractors specialising in buildinghydropower plants - was awarded the mainengineering, procurement and construction(EPC) contract worth US$4.8bn for Ethiopia’sGrand Renaissance Dam. The mega-dam,scheduled for completion by July 2017, willbe 1,800m long and 170m high, with anoverall volume of 10mn cubic metres.Geothermal: East Africa alone can potentiallydevelop 14,000 MW of geothermal energy,but [so far] only 209 MW has been developed.In 2015, Ethiopia signed a preliminaryagreement with US-Icelandic firm, ReykjavikGeothermal (RG) to build a 1,000 MWgeothermal plant, Africa's largest, in thevolcanically active Rift Valley (costingUS$4bn). When completed, it will beEthiopia’s first independent power projectand biggest single foreign investment. RGreckons accessible geothermal resourcescould be nearer 15,000MW. The high cost ofexploratory drilling is a barrier to scaling-upof geothermal energy; substantial upstreampublic investment is needed beforedownstream development by the privatesector. The World Bank has providedconcessional loans and guarantees in supportof geothermal exploration drilling in Djibouti,
Ethiopia, and Kenya.Gas-fired electricity: Vast quantities of cleannatural gas for power can be tapped along thecoast of West and East Africa, especially inNigeria, Ghana, Mozambique and Tanzania.New investments in gas processing facilitiescan deliver cheaper electricity compared tooil-fired power stations. The US consultancyMcKinsey estimates SSA could produce awhopping 400 GW of gas-generated power by2040, with Mozambique, Nigeria and Tanzaniaaccounting for two-thirds of the total. Provengas reserves of Nigeria, Mozambique andTanzania are estimated at 180; 100; and 55trillion cubic feet, respectively.
Heavy fundingDespite evidence of progress towards UNSustainable Development Goal (SDG7), overallexpansion of electrification in SSA has barelykept pace with population growth, in markedcontrast with South Asia where electrificationhas risen four times as fast as population. Inorder to achieve SDG7 - thus ending energypoverty by 2030 - Africa region needs toelectrify over 60mn people annually, more
than double its current trend of 24mn. Theannual cost of reaching universal access topower is estimated at US$50-80bn. By far thebiggest price tag is for renewable energyinvestment at US$36bn/year, followed byenergy efficiency (US$12bn/year) and theremainder for energy accessibility. Privateparticipation in the form of IPPs and foreigndirect investment will be crucial tobuilding/upgrading the region’s generation,transmission and distribution networks.
In sum, no country on earth has developedits economy without abundant energysupplies. The electrification of the US wasthanks to President Roosevelt’s decision inearly 1930s that America needed 100 per centelectrification for becoming an industrialpower. With little power, SSA will continuelagging behind peer regions in terms ofhigher growth, job creation, povertyreduction, improved food security and moretrade and commerce within the region.‘Lighting up’ the continent remains a keyongoing development goal. �
Moin Siddiqi, economist
African Review of Business and Technology - May 2016 www.africanreview.com
Table2: Expected OutcomesLong-term
[2023] [2026]
Solar power 1 GW of grid-connected 2 GW of grid-connected
Solar PV available. Solar PV available.5mn off-grid consumers have access 55mn off-grid consumers have access toto modern energy services. modern energy services.
Hydropower 420 MW of reliable, clean low-cost 545 MW of reliable, clean low-costhydropower developed in West Africa. hydropower developed in West Africa.
Downstream river flows regulated to increase all-year production and facilitate future projects.
Geothermal 150 MW of geothermal generation 350 MW of geothermal generationcapacity developed. capacity developed.
Geothermal sector formed across theEast African Community (EAC).Downstream private sector investment leveraged through concessionalfinancing for exploration.
Source: Accelerating Climate-Resilient & low-Carbon Development
(The World Bank report 2015)
Africa Finance Corporation (AFC) and its developmentpartners have launched the Africa Project DevelopersInitiative (APDI), a think tank and network to promote andenable project development in Africa. It creates a platformthat fosters continuous dialogue amongst members,standardises project development documentation,develops market benchmarks, enables knowledge transfer,leads and facilitates independent research and serves as apolicy advocacy forum for the industry.AFC president and CEO Andrew Alli announced theestablishment of APDI at the 2015 Africa InvestorConference. Dialogue continued with AFC’s at the Annual General Meetings of the AfricanDevelopment Bank. A formal launch is planned for September 2016.
AFC launches APDI
Andrew Alli, president and CEO,Africa Finance Corporation
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POWERInvestment
37African Review of Business and Technology - May 2016www.africanreview.com
There are two main synergies which can be incorporated intomodern building design to reduce the dependency of electrical
generation on fossil fuels. These synergies are to reduce the overallenergy need of the building through the use of energy efficientmethods, and to meet some of the energy needs by implementing arenewable energy system.
This is according to Rupesh Vaga, project engineer at EES Africa(Pty) Ltd, who pointed out recently that even though alternativemeans of generating electricity are being researched andimplemented, current electricity generation is still predominantlybased on the burning of fossil fuels, which have a huge negativeenvironmental impact. He said, “There are many renewable energysources that can be used in a building, such as solar, wind,geothermal and biomass. These options should be evaluatedcarefully and research should be conducted before considering anappropriate design.”
Solar energy for corporate buildings
According to experts participating in Power-Gen & DistribuTECHAfrica in Johannesburg, South Africa, 19-21 July 2016, it has becomeclear across Africa that renewable energy sources hold the key tomeeting future power needs across the continent. Ahead of thePennWell Corporation events, Sindiswa Mzamo, chief operatingofficer of the Edison Power Group, said, “In the vast majority ofAfrican countries, solar is the solution for powering ruralcommunities, because it is cost-effective and does not need to beconnected to a grid to power an isolated geographic area.”
PennWell promotes African solar power
Nigeria’s privatised power networks
PV renewable energy should be considered for the rooves of corporate buildings toreduce dependency on fossil fuels; solar windows can be implemented after thebuilding is built and can also reduce dependency on the grid
Privatisation has been the way forward for Nigeria, as it grapples withits immense energy shortages. The new-look electricity sector wasborn after the government auctioned generation and distributionassets to the private sector in a bid to kickstart investment. AUS$2.5bn sell-off in 2013 created six successor generating companiesand 11 distribution companies. The potential for growth is certainlythere, but the new entities face an uphill battle in accessing fundingand even getting existing customers just to pay their bills. In a countryof around 180mn people, Nigeria has just 5,000 MW of grid availableelectricity.
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Designer and manufacturer of dieseland gas generating sets HIMOINSAshowcased its portfolio at the Middle
East Electricity (MEE) held in Dubai in March2016. The new range of gas-powered gensets,with built-in LPG tanks for the rental market,comprise the HRGP 25 T5, HRGP 40 T5 andHRGP 60 T5 models, offering power ratings of25, 40 and 60 KVA continuous power.
According to HIMOINSA, the new versionsincorporate the LPG storage necessary for therental sector to ensure no requirement ofrefuelling for 24 hours. It has an addedpossibility of connecting an external reservoirto increase its autonomy as much as desired.
The manufacturer has also introducedgenerator sets with 1,000-hour serviceintervals and a 1,000 L fuel tank. The gensetsalso come with Yanmar engines.
At a time of budget cuts and reducedspends, customers are looking at solutionswhich are value for money, says Ramy Mohyel Dine, business development manager atHIMOINSA Middle East, who was speakingexclusively with African Review at MEE.Responsible for the East African market, Mr elDine reiterated that Kenya, Tanzania andEthiopia are the markets HIMOINSA is focussingin 2016. He said, “The future is right though it’sa bit low now more so because of thecurrency rate but we have a good marketthere. The population growth and theincreasing demand for electricity are pushingour business in the region with Kenya beingthe fastest growing. We are doing our best todip into the market. What we now need isbetter business, better dealer networkcapable of servicing and maintaining ourequipment that helps us increase ourfootprint in the market. We are growing year-on-year so we are very optimistic.”
Moving into Eastern gas marketsAs East Africa has huge gas reserves, it islogical to push for gas generating sets.However, Mr el Dine also noted that the
market is conventionally a user of diesel sets.Tanzania is a huge market for gas gensets butthe infrastructure is not in place right now. Headded, “Of course, we have lot of foreigninvestments coming in Tanzania since thediscovery of large deposits of gas but it willtake time to develop the region. Until then,we have to continue to push diesel gensetsand create a gas genset market.”
Mr el Dine is also very optimistic aboutMozambique, saying it will take a year or twofor the gas market to rise - and that, when itdoes, it will boom. Mozambique too is seeing alot of investment from outside the country.Focussing on the biggest sectors in EastAfrica, Mr el Dine reveals that constructionhas and will remain the biggest industry forHIMOINSA gensets in East Africa. However,another interesting growing market is thetelecom industry. He said, “Telecom in EastAfrica is a very fast growing market. As thepopulation is growing and the world isbecoming smaller, there is a huge demand tostay connected via phones and emails. I see avery big investment happening in telecomindustry especially in Kenya, Ethiopia. It’s thefull range of data centres, transmittingcentres. Lot of governments are actually
investing in telecom industry.”In East Africa, HIMOINSA caters to genset
ranges namely industrial up to 700kVA andheavy range that is 700kVA to 2MW. EastAfrica is seeing a lot of big projects like hotels.However, the ranges facilitates that wholespectrum of industries. Mr el Dine revealed,“We are not limited. You will be surprised toknow that houses that need domestic supplyof power and the range of 4-10 kVA is verymuch in demand.”
At work in West AfricaHIMOINSA recently also partnered withAngola’s Ministry of Energy and Water for theconstruction of Angola power plant inLuanda. It has a power output of 25MW PRPand delivers to the network 20MW ofcontinuous power, with a voltage of 15,000volts at 50Hz.
Guillermo Elum, sales and marketingdirector, said, “It’s a futuristic project. Inpartnership with the Ministry, we have secured70 per cent of the power network in Luanda.The uniqueness of the power plant is that wehave set up different systems to work on oil,diesel and gas system and to recycle materialsthat we are using in the plant. We have also
HIMOINSAPOWER
38
Genset prospects inEast and West AfricaHIMOINSA’s Ramy Mohy el Dine and Guillermo Elum discuss the company’sAfrican operations and highlight fresh opportunities in the genset industry
The generator sets from theindustrial range with Yanmarengines (8-45kVA) can incorporatea fuel tank of 1,000L, 10 timesbigger than the standard offering
African Review of Business and Technology - May 2016 www.africanreview.com
S10 ATR May 2016 Report Power_Layout 1 29/04/2016 10:20 Page 38
implemented plug-and-play. When we havepower running 24 hours, seven days a week,we can connect more gensets. In times ofemergency, a unit can be removed to tackleoversupply. It is very flexible and very fast.”
The project took HIMOINSA six months tocomplete, including commissioning,installation, training of staff for the plant.
Power provision across AfricaWorking in Africa for two decades, HIMOINSAalso gives a lot of importance to its distributorrelation to secure the service and availabilityof parts in the market. Mr Elum stated, “Wehave a good service and engineering team inthe continent. Since construction is a bigmarket, we are also very much a part of thatindustry. This helps us to improvise onHIMOINSA solutions. We are also very activein telecom and industrial sectors. We are alsohelping creating a skillset industry in Africa.”
Voicing el Dine’s optimism on the telecomsector, Elum commented, “What is interestingto see is the evolution of the telecom industryin the last few years. Earlier, the telecomcompanies used to own equipment andassets. Right now, we have tower companiesworking in rental sector with telecomcompanies. We are growing there are lot. We
sell gensets to tower companies, who leasegensets to the telecom companies. This isHIMOINSA’s new strategy.”
Even when the company is feeling the heatbecause of oil prices as governments aredelaying some of the projects and lesserbudgets, the genset industry is less affectedby the slowdown in economy. As Mr Elumsaid, “Power means security, power meansworking. Companies are not only looking attheir CAPEX but also their OPEX. If you controlcost now, you will pay the price later.”
HIMOINSA strength lies in customisation,according to Elum. He said, “For all markets,we provide the same product but adjust it tothe final destination - something that onlyvertically integrated manufacturers can do.“We provide information to customers andthen help them make the best choice.”
HIMOINSA also manufactures its ownalternators, engines, canopies, silencers andcontrol panels and it also has total control ofthe design of the gensets, assembling andmetal treatment process of all the parts. �
POWERHIMOINSA
39African Review of Business and Technology - May 2016www.africanreview.com
HIMOINSA’s generator sets with Yanmar engines can now include a special kit that allows forlonger maintenance intervals up to 1,000 hours.
This feature is available in both the industrial range - HYW from 8 to 45kVA and the rentalrange - HRYW from 16 to 40kVA.
Among other improvements, the kit includes a larger tank, which supplies extra oil to theengine. While fuel and oil consumption remain the same, the cost of filters is significantlyreduced, and so is the downtime, when the equipment is out of operation for maintenance.For this reason, the kit guarantees less waste oil and, therefore, a reduced environmentalimpact.
The generator sets from the industrial range with Yanmar engines (8-45kVA) canincorporate a fuel tank of 1,000L, 10 times bigger than what it is offered as standard, whichtranslates into less trips to the site for refueling operations.
Considering that the genset works eight hours a day, this new feature guarantees up to70 days of running time. Also, the option of adding a 1.000L fuel tank allows a considerablereduction of site visits for refueling. HIMOINSA recommends this range for the telecomsector, where the gensets are often located in remote areas with difficult access.
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‘Africa is our new target’Turkish genset manufacturer Emsa Generator reveals regional plans for
the continent via its general manager Rasim Yildiz
African Review of Business & Technology(ATR): Please give us some details aboutEmsa Generator.Rasim Yildiz (RY): Emsa Generator is one ofthe biggest generator manufacturing companiesin the North Africa region. We launched ourbusiness in Istanbul/Turkey during 1977 as asmall entrepreneurship to produce commercialalternators to meet the growing demand for areliable uninterrupted power source and in timewe became Turkey's biggest alternatorproducing company. Following a concertedeffort of research, development andengineering, Emsa began producing dieselgenerators during 1990s and now recognised asone of the industry leaders in its specialisedfield of generators. Today, we are the fastestgrowing generator company in our region.We produce 3-2,500 kVA diesel generator
sets, portable generators, lighting towers,synchronising systems and engineeringsolutions. We are trying to touch as much ascustomers we can to offer them solutions fortheir projects.We also provide synchronous systems,
control panels, soundproof cases and otheraccessories to ensure a continuous and reliablepower supply with high technology. Our R&Ddepartment takes a great pride in designing andbuilding power supply systems that arecustomised to meet the most complex and
sophisticated demands in the world, whileremaining economically efficient andenvironmentally compatible.
ATR: As a Turkish company, what do you thinkabout the economy?RY: Today, as the 18th largest economy in theworld and seventh largest economy in Europewith a GDP of about US$800bn in 2015, Turkeyis active member of the G-20, which representsthe world’s most powerful economies. Turkey has been pursuing an export-led
growth policy since 1980. By virtue of economicreforms, restrictions on imports were lifted,safeguard practices were reduced, and foreignexchange transactions were liberalised. As aresult of the economic reforms carried outduring the last decade, both the volume andcomposition of the Turkish trade have radicallychanged.In 2015, the volume of trade reached
US$351bn. Turkish exports increased toUS$144bn in 2015 from US$36bn in 2002. Forthe 100th anniversary of the country, mainexport target of Turkey is set to reachUS$500bn and at Emsa Generator we are tryingyou reach more markets and customers tomatch our own targets and our country targets.
ATR: Please explain your production facilities.RY: At the end of 2015, we moved to our new,environment-friendly, state-of-the-art factorylocated in Eski�ehir Organized Industrial Zone inorder to accurately and timely meet thedemands of the generator market that grows inboth domestic and foreign market. Currently, 75knowledgeable, experienced and dynamic bluecollar personnel and a team of effectiveengineers experienced in the field of R&D andproduction are employed at Emsa Generatorfactory that is built in 30,000 sqm area inaddition to the head office that employs 90people in Istanbul Sancaktepe. All production activities in our new
production facilities are carried out inaccordance with TSE and ISO criteria as well asenvironmental and occupational health laws andprinciples. We, particularly, place importance toR&D and continues to invest in this field. In ournew production facilities, productivity isincreased with the new test rooms andconveyor system, and the entire system is
EMSA GENERATORPROFILE
40
Emsa Generator factory is built in 30,000 sqmarea in addition to the head office that employs
90 people in Istanbul Sancaktepe
African Review of Business and Technology - May 2016 www.africanreview.com
www.emsa-jenerator.com.tr
S11 ATR May 2016 Advertorial_Layout 1 28/04/2016 17:17 Page 40
monitored by barcode system. As a companythat is very careful about product quality andtime, we are automatically testing ourgenerators with PLC-controlled automaticSCADA units without human touch at ourEski�ehir factory. These units are the mostadvanced test units in Turkey, and there are3,200 kW generator test counters and sixgenerators can be tested at the same time. Also,our new factory is capable of loading at fourseparate locations with four loading ramps andfour forklifts with various powers. In addition totest units, this feature provides us with logisticsbenefits and allows us to make shipments fastand flexibly.We have invested US$10mn in the new
production facility with the latest technology on30,000 sq m with 20,000 sq m closed area.With this environment friendly new plant, Emsaaims to increase total production capacity fivetimes. This factory is the biggest capacity inTurkey as of today. Quality of the our generatorstoo has been also increased in parallel. Today,we have CE, ISO 9001:2000, ISO 18001:2004,ISO14001:2004, GOST, EAC standards.Our engine partners include PERKINS,
DEUTZ, VOLVO, etc., who export our generatorswith these engines to many markets dependingon the customer request. We are flexible and tryto meet customer demand in engine andalternator choice.
ATR: What about your export markets?RY: As one of Turkey’s most importantgenerator exporters, we increased the numberof export markets by 26 per cent in 2015reaching 78 countries. Undoubtedly, Africa’sprogress during the past few years has beenremarkable. African market is our new target asshining star.Sub-Saharan Africa, a region that excludes
Northern Africa, consists of 48 countries andboasts a population of over 800mn people.Today, we are exporting our products to manyAfrican countries including Ghana, Nigeria,Angola, Ethiopia, Kenya, Sudan, Mauritania,
Senegal, Tanzania, Guinea, Uganda, and Zambiaand we are proud of it.Our generator industry blends logistic
advantages of our country with production andcost balances successfully. From Turkey, wemay reach 56 countries with four hour-flight sothis is very significant logistics and commercialadvantage for us. We will also provide spare parts for each of
its products up to 10 years and furnish free fieldsurveys and on site assembly integration.
ATR: What are the main challenges in thegenset industry, according to you?RY: To summarise the main problems of thesector are indifferent product structure, poorquality products and price pressure of productsimported from China. However, the efficient andvalue-added products and services and flexibleproduction system will push the sectorupwards. Emsa, in this context, provides remoteaccess system with a sim card settled ingenerator which provides the possibility of earlydiagnosis and intervention for one year ‘free ofcharge’.Generator is a big investment and, therefore,
the buyer must select the ‘worth of money’generator at right capacity, right quality, andright brand with proper and expert sales andservice network. The buyers need to consult theexperts and be careful about the qualitycertificates. ‘Complete customer satisfaction’has become Emsa’s motto, strengthened by awidespread network of dealerships.
ATR: How do you follow after-sales services?RY: This is the most significant chain of oursystem.We provide warranty for spare parts forone year or 1,000 operation hours againstmaterial defects. You will be asked to providethe serial number indicated on the product. Youcan get support under warranty by calling ourservice department at the telephone number +90216 420 00 03 pbx.Our products have all Smart 500 Control
Panel, thanks to a project that is jointlydeveloped with Turkcell, the national GSMoperator, that closely follows up technology andthe products are remotely monitored online asfree for a period of one year by our specialisedtechnicians due to a SIM card embedded intothe product during production.In this system, clients are informed about the
forthcoming maintenance of the generators,possible failures are detected in advance, clientsare notified immediately and intervention ismade for the failures and thus, customersatisfaction is maximized.With this, errors can be reset remotely,
managers that are responsible for the field cantest the products remotely, possible downtimeis shortened with faster intervention, number ofservices is minimised and thus, service costsare reduced, information security is providedand all devices are controlled by remote control.Moreover, clients can use this service during thelifetime of the generator, if they wish.
ATR: Do you have any new investment?RY: Sure, we also started a new facility in Spainto produce generators and this new project willbenefit us to reach more customers in differentterritories and serve them faster with highquality. Our investments in other countries willfollow soon. �
PROFILEEMSA GENERATOR
41
As one of Turkey’s most important generatorexporters, we increased
the number of exportmarkets by 26 per cent in
2015 reaching 78countries.”
African Review of Business and Technology - May 2016www.africanreview.com
Rasim Yildiz is the general manager at EmsaGenerator
All production activities in Emsa’s new facilities are carried out in accordance with TSE and ISO criteriaas well as environmental and occupational health laws and principles
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Researchers recently asserted that power from the sun couldsupply 20 per cent of energy worldwide by 2027 as solar panelprices are expected to continue to fall 10 per cent each year .
Past experience suggests that energy scenarios often fail to predictthe full extent of solar’s rapid growth, so it’s possible that 20 per centcould be rather conservative.
This is particularly true in countries which want to rapidly expandtheir electricity system, where solar can affordably provide energywhere it was previously not supplied at all. The impending rise ofstorage technologies also makes the case for solar, since devices suchas batteries can maximise the solar investment and make clean solarelectricity available after dark.
Costs and benefitsBatteries are, of course, nothing new; many of us carry lithiumbatteries in our phones. However, what is new is an array ofcommercially ready storage technologies. Short term storage fromflywheels and supercapacitors can provide uninterrupted power andmanage fluctuations in the grid. A multitude of lithium basedbatteries are viable in homes and commercial buildings to protectsensitive loads, provide reliable backup and reduce energy bills. Long-term storage from flow batteries will soon be commercially viable forlong term backup and energy management.
The cost and efficiency of new technologies are already propellingthe storage industry, and this is simultaneously opening up excitingopportunities for renewable energy. One benefit of storage is that itmeans more solar panels can be installed, therefore maximising theamount of energy a customer can get from their solar investment. Atpeak generation points the battery will store any excess powergenerated by the panels, for use when needed at a particular timeduring the day, or at night thereby powering the darkness withelectricity generated during daylight hours.
This is especially true in developing markets where storage offers alifeline to those who have to contend with an intermittent grid andassociated blackouts. In these areas, storage is being lauded as apanacea to the problems of grid intermittency, or indeed, absence.Should the grid fail, a battery can provide backup power so there is nointerruption to business operations. This could be critical in a hospital,scientific research facility or for a commercial customer where reliableand high quality power is needed to protect and operate sensitiveelectrical equipment.
Further, in areas without access to the grid, or if the grid isunreliable, being able to store and use the excess also reduces relianceon expensive diesel generators which can be 2-3 times moreexpensive than grid electricity. A solar and diesel generator energysystem might meet 10-20 per cent of a site’s energy needs from
renewables and reduce energy bills. Tying a battery with such asystem further lowers the cost of energy because it means that 40-60per cent of the site’s energy needs can be economically met by solarand allows the generator to operate with better fuel efficiency. Ofcourse, as prices fall, solar and energy storage could theoreticallyprovide all of a site’s energy needs.
Sustainable supply at icipe World-leading Kenyan insect research centre icipe has recently chosen to adopt solar photovoltaic (PV) solutions, which will beunderpinned by solar hybrid technology and combined with batterystorage to provide more reliable power. Two solar roof systemscombined with a carport system will be built at the icipe DuduvilleCampus in Nairobi. The third solar roof system will be built at the icipeThomas Odhiambo Campus, in western Kenya, which will becombined with battery storage.
Dr Segenet Kelemu, icipe director general, said, “Through thisproject, icipe’s goal is to create a sustainable energy supply and toreduce diesel fuel dependency by constructing solar photovoltaic (PV)power plants at its Duduville Campus headquarters in Kasarani,Nairobi, and at the icipe Thomas Odhiambo Campus on the shores ofLake Victoria.”
Lux Research predicts the global grid-scale storage market to beworth US$114 billion by 2017 and Boston Consulting Group forecasts aUS$400 billion market by 2020. A significant part of this rapidlyexpanding market will comprise projects in Africa, where there is anobvious opportunity for storage due to the high cost of grid energy, theunreliable grid networks and a high reliance on diesel generators. �
Dr Andrew Crossland, senior design engineer (hybrid energy and activenetwork management)
RenewablesPOWER
42
Solar energy storageturns night into dayInvestment by icipe in photovoltaic technology, and Solarcentury’s work tointegrate PV on campus
Kenyan insect research centre icipe is working with Solarcentury to integrate solar PVat its Duduville Campus in Nairobi
African Review of Business and Technology - May 2016 www.africanreview.com
S11 ATR May 2016 Advertorial_Layout 1 28/04/2016 17:17 Page 42
POWERRenewables
43African Review of Business and Technology - May 2016
/ Perfect Welding / Solar Energy / Perfect Charging
/ With Fronius PV-Genset solution, you can combine your existing diesel generators with photovoltaic technology easily, saving fuel, minimizing energy costs and ensuring a reliable power supply in the process. Interested in a ROI calculation to upgrade your diesel genset? Contact us [email protected].
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Prospects for the solar industry arebright. Significant growth in the globalmarket for PV power plant operation
and maintenance has been forecast for theyears ahead. According to the studyMegawatt-Scale PV O&M and AssetManagement 2015–2020 by GTM Researchand Solichamba Consulting, the market willincrease to over 488 GW by 2020, afterreaching 133 GW in the past year. With eventsspanning four continents, Intersolarrepresents solar industry specialists aroundthe world with the aim of increasing the shareof solar power in the energy supply chain.Intersolar's international exhibitions andconferences address North America, Europe,India, South America and the Middle East.
Organised by Solar Promotion InternationalGmbH, Pforzheim, Freiburg Management andMarketing International GmbH (FMMI) anddmg events Middle East and Asia, IntersolarMiddle East represents a new platform, to be
held in Dubai, in the UAE, from 19-21September 2016, for industry networkingand knowledge-sharing.
The MENA market for solar energy projectsExperts attest to the high growth potential ofthe solar industry in the Gulf region. In ananalysis of the states of the Gulf CooperationCouncil (GCC), the Arthur D Little consultancyrecommends investing into solar energy. Onlythen will these countries be able to minimise
lost profits resulting from the use of fossilenergy sources and promote economicdevelopment.
According to the Middle East Solar IndustryAssociation (MESIA), the number of solarenergy projects in the MENA region iscurrently growing - and prices for solarsystems, which declined by 75 percentbetween 2008 and 2014, are among thefactors encouraging this growth. MESIA hasalso observed that the average size of solarenergy projects in the region is increasing.While the majority of projects were previouslylocated in the United Arab Emirates, projectsare now being launched in more and moremarkets. This year, photovoltaics projects withmore than 700 MW are planned in theemerging Egyptian market. In Morocco, theplanned Foum Al Ouad and Boujdour powerplants alone are expected to reach acombined capacity of 1 GW – and those arejust two of many current projects. �
Intersolar’s PV markets
Intersolar offers a new platform for the Gulf region’s solarindustry specialists to connect (Photo: Solar Promotion GmbH)
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44 African review of Business and technology - May 2016 www.africanreview.com
the unique Kraft Nautilus air circulationsystem from German OEM Kraft CuringSolutions utilises the heat from cement
hydration, as well as the humidity from theconcrete, to combine the advantages of aircirculation with heat recovery technology. Itnot only saves energy and cement, therebyreducing operating costs, but also eliminatescondensation.
Ancillary benefits include increasedproduct quality and strength while savingcement. Shukuma Bricks manufactures a range of interlocking and bevelled pavers,in addition to concrete bricks and blocks.
“We are able to offer our clients a broaderspectrum of products to meet their needs,”commented Jacques Bellingham, owner anddirector of Shukuma Bricks.
By installing the company’s full curingsystem on their precast brick and paver
plants, customers can realise cement inputcost savings of up to 30 per cent whenimplementing a total PMSA system.
Michael Kraft, managing director of KraftCuring Solutions, said, “This is of particularimportance in the context of Africa’sinfrastructure build-up, where we see a majoropportunity for this technology. It is also themain reason we have partnered with a company like PMSA, which has such astrong foothold throughout the continent.”
Monitored and managed“Our significant investment in the latest state-of-the-art technology from PMSA has allowedShukuma Bricks to retain a leading edge in a highly competitive market,” Bellinghampointed out. PMSA, the leading manufacturerof brick, block and paving machines on thecontinent, together with Kraft Curing
Solutions, was responsible for the circulationand curing system design for the ducting and controls.
Quality at Shukuma Bricks begins with thefully automated production process in thefactory. The whole plant is monitored andmanaged from the control room by means ofa supervisory control and data acquisition(SCADA) system.
This provides visual animated graphics ofthe machine and plant operation. Machineparameter control and data capture allow forremote control of the plant, in addition to retaining historic and daily data for plant management.
Various tests are conducted to ensure thatstrict quality control is applied, in order tomaintain the highest production standards.
“All products are manufactured to exceedSABS requirements, thereby givingcustomers’ peace of mind when using them,”Bellingham said.
Productive solutionsQuintin Booysen, PMSA marketing and salesmanager, reported that Shukuma Bricksrecently also installed a fully automated RE-1400 machine from PMSA, which offers arange of batching configurations, wet and dryside production handling and productionboard handling. The new plant will beproducing 95,000 pavers per nine-hour shift.
As part of its automated brick, block andpaving manufacturing equipment, PMSA alsooffers locally-developed automation andhandling systems for large-scale brick andblock plants to increase productivity andimprove the end quality of the final products.
“We have been building on our technology,leadership, expertise and experience in theconcrete products sector for the past 40 yearsand have an array of options to suit all clientneeds without compromising on end productquality,” Walter Ebeling, MD of PMSA, said. �
CementCoNStruCtioN
An air-circulation systemfor Shukuma BricksShukuma Bricks has consolidated its position as a leading brick, block andpaver manufacturer by investing in a Kraft Nautilus air circulation systemsupplied by PMSA
Significant investment in the latest technology from PMSA has givenShukuma Bricks a leading edge in a highly competitive market
S12 ATR May 2016 Report Construction_Layout 1 28/04/2016 17:10 Page 44
our Caterpi Mantrac Y llar Authorized Dealer
For over 80 years Mantrac Group, Caterpillar has been helping customers succeed in their technical expertise and in-depth understand largest commodity producers to numerous lo
Through a multicultural team of Caterpillar ce service workshops, guaranteed parts availab able to support Cat equipment customers eve
p T E Y ON CA AT EQUIPMENT WITHRELLY ON CA
OUR WORLD C anzania, Uganda, Nigeria, Ghana authorized dealer in Kenya T
r business, Offering them customized Cat equipment solutions backed by ing of local markets serving a diverse range of customers from the world’
ocal businesses in construction, oil & gas, power generation and forestry
ertified service engineers and a network of 40 branches, with fully equipment bility and supported by nearly 500 well-equipped field service trucks we are
en in the most remote areas across our dealerships.
EQUIPMENT WITH CLASS SUPPORT
& Sierra Leone, backed by
s m the world’. nd forestry
fully equipment trucks we are
Mantrac Kenya Ltd.Mansour Complex
anzania Ltd.Mantrac TPlot no 4A,
Mantr Plot 17
rac Uganda Ltd. 7/41, 7th St.
Mantrac Nigeria Ltd.,2, Billingsway
Mantrac Ghana Ltd.estRing Road W
Mantrac Sierra Leone Ltd.6-8 Blackhall Road
,” as well as corporate and product identity used herein,ellowTERPILLAR, their respective logos and “Caterpillar Y, CA ATERPILLAR, their respective logos and “Caterpillar YTCAATare trademarks of Caterpillar and may not be used without permission.
Witu Road, off Lusaka Road.O Box 30067 , NairobiPel: +254 20 4995300T
Nyerere Road,.O. Box 9262,PP.O. Box 9262,
Dar es Salaamel: +255 22 551 5200T
Fax: +255 22 286 4284
Industrial Area.O. Box 7126, KampalaPP.O. Box 7126, Kampalael: +256 312 330 600T
Fax: +256 414 235 425
(Off Secretariat Road)Oregun Industrial Estate, OregunPMB 21480, Ikeja, Lagosel: +234 01 2716300T
Fax: +234 01 2716300 Ext. 226
North Industrial Area.O. Box 5207, Accra-NorthPP.O. Box 5207, Accra-Northel: +233 30 2213777T
Fax: +233 30 2221950
.O. Box 127, FreetownPP.O. Box 127, Freetownel: +232 30 223317T
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S12 ATR May 2016 Report Construction_Layout 1 28/04/2016 17:10 Page 45
If Africa is to achieve it’s long-term growthpotential then it will be the constructionsector that will drive forward this
economic advance. The provision of basic infrastructure - good
communications systems, a rail and roadnetwork for the movement of goods andpeople, housing, water and urbandevelopment - is essential for nationaldevelopment, whether in Africa, or anywhereelse in the world.
With the IMF forecasting that many of theplanet’s fastest growing economies over thenext decade or so will be in Africa, it seemslogical that the regional construction industryis poised for big things ahead. Demand in theconstruction sector is one of the crucialindicators of economic growth.
And that’s being born out by recentinvestment numbers.
According to Deloitte’s Africa ConstructionTrends Report 2015, there is a healthy level ofactivity to point to. The number of projectsqualifying for inclusion in its report rose 17per cent, from 257 in 2014 to 301 in 2015. Thetotal value of projects under constructionalso increased 15 per cent year-on-year,climbing from US$325bn to US$375bn.
Much of this growth is also focused on areasthat facilitate intra-African trade and supportmanufacturing. More than a third ofconstruction projects in 2015 focused on thetransport sector, for instance, followed closelyby energy and power. Areas such as oil and gas,water, mining and real estate accounted for theother main areas of activity. Less wellrepresented were developments in theeducation, manufacturing andtelecommunications, which collectively accountfor less than two per cent of total projects.
Examination of project stakeholder statusrevelas some interesting facts about Africanconstruction today. Most projects aregovernment-owned. In fact, Deloitte’s report
reveals that 214 projects (71 per cent of allprojects) are state-owned, with privatedomestic owners accounting for 38 projects (13per cent). International Development FinanceInstitutions (DFIs) are directly responsible fornine projects (three per cent) - but it should benoted that DFIs are in fact the largest providersof financing, representing 48 per cent of totalprojects and 34 per cent of continent-widefinancing. Direct and indirect DFI participation is a factor in 145 of the 301 projects reportedin Africa.
Regional focus While activity in the energy sector hasunderpinned many big construction projectsthrough the years, the collapse of oil priceshas perhaps dented prospects in this area.
However, the slack has been picked up by a rise in transportation projects, notably in railand ports, which provide the backbone forintra-African and global trade.
The theme of African integration is alsoevident. Large rail and port projects tend notto be country specific, but more regional innature. The LAPSSET (Lamu Port & LamuSouthern Sudan Ethiopia Transport Corridor)project in northern Kenya is an example of
this. It connects Africa’s East coast from LamuPort, to the continent’s West coast at Doualaand linking to the Douala-Lagos Cotonou-Abidjan Corridor.
Port structures support a large regionalhinterland, while rail provides the feedernetwork in and out of the port for bothneighbouring countries and the host country.
There is a similar theme on the power side,too, with projects such as the six country Inga3 hydropower project being fast-tracked, andwith regional interconnector grids appearingon Deloitte’s database for the first time.Although volumes are small, southern Africa has been an early pioneer of electricitypower pooling.
Market Analysis ConsTRuCTIon
46
Increased activity inAfrican constructionAfrica’s construction market looks set for growth but, with competition setbecome more intensive, where will companies find the best opportunities?
African Review of Business and Technology - May 2016 www.africanreview.com
Bobcat has launched new backhoe loadersfor the Middle East and Africa
High levels of construction spending means more competitionand innovation among manufacturers such as Caterpillar
S12 ATR May 2016 Report Construction_Layout 1 29/04/2016 14:36 Page 46
This regional approach suits financiers aswell, especially development agencieslooking to pack more punch from theirlending. International development financeinstitutions remain the largest singleproviders of funding to Africa’s constructionsector, with involvement in almost half of thecurrent crop of major construction projects.
Competitive marketsThe high level of construction spending hasmeant a greater level of competition andinnovation among equipment producers andservice providers competing for business.
What’s more, confidence is a fragile thing.South Africa’s FNB/BER Civil Confidence Indexsuggested earlier this year that activity inSouth Africa, at least, was weakening, citinglower spending. It also made the point thatwith less construction activity‚ tenderingcompetition has intensified for those projectsthat are available.
This has not deterred big names frominvesting more time and money in Africa,however. These companies point to thecontinent’s underlying long-term growthpotential. At the recent bauma industry tradeshow in Germany, for example, numerousinternational players unveiled new products
and equipment that will find its way into theAfrican market. One of them, Bobcat, recentlylaunched a new range of backhoe loaders forsale in markets across the Middle East andAfrica region. The four machines each offer achoice of different specifications for diverseapplications in construction, utility, rental,roadworks, demolition, excavation,landscaping and agriculture.
It is by no means alone in scoping thepotential. Others active with new launches andinnovations at bauma included Volvo CE,Linamar Corporation’s Skyjack and Atlas Copco.
And despite any dips in confidencebarometers their logic seems sound, certainlyif the buoyant hotels market is anything to goby as more projects filter through.
The number of planned new hotel rooms inAfrica in 2016 surged almost 30 per cent fromthe previous year, according to the annual WHospitality Group Hotel Chain DevelopmentPipeline Survey. The 64,000 room increaseacross 365 hotels is predominantly due to“strong growth in sub-Saharan Africa”, it said.Nigeria topped the list, followed by Angolaand then Egypt. �
ConsTRuCTIonMarket Analysis
47African Review of Business and Technology - May 2016
e SoOne O n e S o
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Project values in Africa in 2015 (Source: Deloitte)
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More than a third ofAfrican construction
projects undertaken inthe past year have been
focused on thedeveloping the transport
sector - followed byenergy and power, oil
and gas, water, miningand real estate”
S12 ATR May 2016 Report Construction_Layout 1 29/04/2016 14:36 Page 47
48 African Review of Business and Technology - May 2016 www.africanreview.com
Like so many other countries around theworld, South Africa is stepping upinvestment in the roads network in responseto rising traffic levels.
SMEC South Africa is undertaking thedetailed design for the upgrade of an 11 kmstretch of the N3 highway between Durbanand Pietermaritzburg in KwaZulu-Natal. It’sresponsibilities include project management,together with geometric, structural and
pavement design, geotechnical and foundinginvestigations, geotechnical and valueengineering, works contract preparation andconstruction supervision.
The upgrade is a Strategic InfrastructureProject (SIP), known as the ‘SIP 2: Durban-Free State-Gauteng Logistics and IndustrialCorridor’. Expansion has become essentialdue to the rise in traffic between the Port ofDurban and Gauteng. The construction
tender for the massive project is envisagedfor award in June 2017.
“The envisaged upgrade involves adding a fourth lane in each direction of Section 1 ofthe N3 from the Mariannhill Toll Plaza in a westerly direction to Key Ridge, where theM13 joins the N3,” said Dawie Erasmus,functional general manager for roads andhighways at SMEC South Africa.
The mountainous terrain and majorstructural work involved in this project isestimated to be in the region of R1.6 billion.
“Substantial structural work is required towiden the road and add a fourth lane on asteep gradient along a steep side slope inmountainous terrain. This requires extensiveearthworks and geotechnical solutions toensure the stability of the fills and cuts,”added Erasmus.
SMEC South Africa boosted it’s footprint inthe roads sector with the 2012 acquisition ofconsultancy Vela VKE, which designed theHuguenot Tunnel in the Western Cape andwas involved with the Gauteng FreewayImprovement Scheme, which saw theupgrading of the R21 between Johannesburgand Pretoria, among other projects.
Nigeria, Africa’s most populous state, faceshuge infrastructure challenges and yet thelocal construction industry remainsdominated by a few large expatriate firms. Itis estimated that these companies carry outabout 90 per cent of the work. One recentexample is the high speed passenger trainservice from Abuja and Kaduna, which wasbuilt by China Civil Engineering ConstructionCompany (CCECC).
This could all be tested soon, however, bythe many smaller Nigerian contracting firmsactive in the area of general building,construction and civil engineering works.Even in the area of commercial and industrialbuildings only a few are able to competesuccessfully with expatriate firms.
Flagship local names include Julius BergerNigeria, Dantata and Sawoe ConstructionCompany, and Setraco Nigeria. Of course,there are some famous names too, with thelikes of industrial giant Dangote growing richon the back of Nigeria’s demand for cementand other products through the years.
Historically, though, many smaller firmshave been choked by a lack of access tocapital, poor management and organisation.Things are changing, however, with the
government looking to ally local firms in jointventures with bigger expat firms, in the hopeof encouraging a transfer of technology. Thegoal is to open up more complex andchallenging works to new local players,thereby stimulating greater competition.Moreover, commercial banks have come
under pressure to open up financing forindigenous players.
These are important steps to unleash thedormant power of Nigeria’s own constructionsector in a country where the growth potentialis enormous. It may take years for real changeto come through but the intent is there.
Nigeria is up against huge infrastructure challenges
New business for Nigeria’s domestic builders
Strategic upgrades for South Africa’s roads
South Africa has increased spending onroads due to the rise in traffic levels
MarketsConsTRuCTIon
S12 ATR May 2016 Report Construction_Layout 1 29/04/2016 14:37 Page 48
R
Africa’s
BIG5
S13 ATR May 2016 Report 01_Layout 1 28/04/2016 17:00 Page 49
BridgesCONSTRUCTION
50 African Review of Business and Technology - May 2016
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Anew method of bridge constructionhas been used for the first time inSouth Africa, on a major road upgrade
project for South African National RoadsAgency Limited (SANRAL). Main contractorLonerock Construction, and subcontractorTzandeboo Construction, used RMDKwikform’s Megatruss system to construct a60 metre long bridge whilst suspended mid-air over the live N4 highway.
Lonerock Construction’s R132mn(US$9.3mn) contract entailed the R24carriageway being widened from two lanes tofour, and a 60-metre long bridge constructedover the N4 Highway, a crucial route for trucksserving the growing mining industry inRustenburg. Lonerock Construction andTzandeboo Construction worked with RMDKwikform to devise a solution that wouldreduce the impact of construction activitieson the live N4 Highway.
RMD Kwikform’s local branch manager andsenior engineer Rossouw Fourie, andtechnical manager and senior engineerMarius Els, designed the final solution incollaboration with RMD Kwikform’s UK-basedheadquarters, drawing on the company’sInternational experience in bridgeconstruction. Mr Fourie said, “Due to thelocation of the bridge, we had to create a
solution that minimised the impact ofconstruction on the surrounding areas, anddidn’t affect the flow of traffic on the N4Highway. Using RMD Kwikform’s Megashorhigh-duty modular propping system, weconstructed a total of two towers and fiveMegatrusses, each weighing 34 tons.
“We were able to suspend the bridge deck710mm above the initial design level by tiebars attached to the Megatrusses; once theconcrete had been poured and struck, theMegatrusses were then removed and thebridge deck constructed in mid-air beforebeing lowered into place.”
One of the key challenges of this projectwas the casting sequence of the bridge deck.Tzandeboo Construction had to pour the firstand second abutments from the ground up inorder to support the towers. The towers andtrusses were then situated on top inpreparation for the bridge deck. �
Suspended solutions
www.africanreview.com
The 60-metre long bridge over the N4 Highway
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AComar continuous mix asphalt planthas been recently deployed on a roadconstruction project in North Kivu
Province in the Democratic Republic of theCongo, where it is producing asphalt. Theplant, which has a capacity of between 40tand 60t, was delivered to the provincialgovernment by South African asphalt plantspecialist Comar Plant Design &Manufacturing, and became operational withminimal delay.
The modular nature of the plant and itsself-erecting design philosophy facilitated therapid set-up time as there was no need forheavy equipment such as cranes, or anymajor preparatory civil works. This is a majoradvantage when operating in outlying areaswith limited road and other transportinfrastructure.
On this road construction site, thecustomer has decided to forego thecompany’s automated central control systemand rather opted for its manual operationfunction. Ken Basson, director of plant andengineering at B&E International, said, “Thedesign philosophy incorporated into theseplants has been focussed on ensuringoptimal equipment reliability and ease ofmaintenance as this is the primaryrequirement when operating in extremelyremote locations throughout Africa.”
Representatives of Comar Plant Design &Manufacturing spent some time on site
training local operators of the plant. MrBasson added, “One of our strong sellingpoints is that Comar plants are very easy tooperate and are extremely safe.”
These plants are robust and can be easilymaintained on site. However, technical back-up service is provided from Comar’s premisesin Johannesburg as and when required.Moreover, growing interest in Comar’stechnology in the DRC has justified theopening of a dedicated office in the country’scapital, Kinshasa. The DRC office is headed upby Comar director Mekebawa MichelLumbala, who said, “This customer is veryimpressed with the performance of our plant,which has exceeded its nameplate capacity,and has therefore expressed a keen interest inbuying more for future road surfacingprojects currently in its pipeline.”
Comar’s plants are manufactured in SouthAfrica, so the company has a significantcompetitive edge when tendering forbusiness on the road construction projects.
Its proximity to markets in Africa hashelped the company to secure orders inMalawi, Botswana, Lesotho, Kenya and theDRC.
Together, B&E International and ComarPlant Design & Manufacturing have a solutionto help African governments accelerate theirlarge infrastructure delivery programmes,which include kilometres of greenfields andbrownfields road projects. �
Delegates from the DRC visited South Africa toview the Comar plant during construction
CONSTRUCTIONAsphalt
www.africanreview.com
Plant deployedfor DRC roads
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The new loaders can be applied in construction, utility, rental,roadworks, demolition, excavation, landscaping and agricultureactivities. All four models feature the Perkins 1104C-44T 4.4 l
engine with direct fuel injection and a best-in-class output of 74.5 kW(100 HP) of power at 2200 RPM and maximum torque of 408 Nm at1350 RPM, according to Bobcat.
The new backhoe loaders can be used for very demandingapplications, while offering the customer low operating costs due tolow fuel/oil consumption. The Perkins engine features a high-qualityfiltration system for longer life, and its single-side service componentsmean that maintenance and daily checks are easy to carry out as theyare on the rest of the machine.
Bobcat’s two-year powertrain warranty proves the reliability anddurability of the components and the importance of the quality ofmaterials and workmanship behind the powertrain in the backhoeloaders giving the customer extra protection and peace of mind.
There is a choice of 4-speed synchroshuttle, powershift or autopowershift transmissions in the different models to meet variousapplications, such as those that involve a significant amount ofdirectional changes on site. Easy to manoeuvre, gear shifts are smoothand precise and help to enhance fuel efficiency. This is combined witha top speed of 40 km/h and extra added features/options such asreturn to dig, ride control and more for increased productivity.
All the models have an open centre hydraulic system and featuretandem gear pumps with high flow capacities of 136 l/min in the B700and 154 l/min in the B730, B750 and B780 models, respectively. Anunloader valve is featured as standard on all the models as is theelectrohydraulic differential lock, with a limited slip differential beingused on the B730 and B750 models. All the new Bobcat backhoeloaders are supplied with class-leading Michelin tyres.
The backhoe loaders offer a spacious and comfortable operatorenvironment – the B700 and B730 are available with either an opencanopy or an enclosed cab, whilst the B750 and B780 are all equipped
as standard with an enclosed cab. The cab is easy to enter/exit; has afully adjustable operator’s seat with all the controls within close reach,leading to less fatigue through greater comfort and more productivity;a tiltable steering column; a high performing optional HVAC systemand excellent all-round visibility for the operator.
The driver also benefits because they can learn to operate theloaders very quickly, with simple, ergonomic controls, clear dashboardlayouts and audible and visual warnings for guidance. All fourbackhoe loaders are very manoeuvrable and they can easily negotiateobstacles on job site.
The new Bobcat backhoe loaders are versatile and, whatever theapplication - digging, trenching, breaking and material handling (justto name a few), they have the power, combined with a wide range ofBobcat optional equipment to be readily configured to carry out theseapplications with ease.
Similarly for loader applications, the B700 to B780 offer premiumperformance with powerful breakout forces, strong full lift capacitiesand enhanced load over height and reach to meet the mostdemanding material handling jobs. There is a choice of generalpurpose or 6 in 1 buckets or other optional equipment to enhanceboth versatility and productivity.
Gul Nalcaci, product manager, BHL at Doosan Bobcat EMEA, said,“The market and our dealers had been asking us to add backhoeloaders to our portfolio for a long time. We listened to feedback fromour dealers and customers, who told us ‘we want backhoes’.
“The launch of the new backhoe loader range was a cooperativeprocess with our MEA Dealers, and is thanks to their great contributionin translating regional requirements and customer needs into theproduct development stage.“ �
Equipment consTRucTion
52
Bobcat launches backhoeloader range for AfricaBobcat has unveiled a new range of backhoe loaders for sale in the MiddleEast and Africa - the B700, B730, B750 and B780 - with it offering a choice ofdifferent specifications for diverse applications
Bobcat’s new range of backhoe loaders
African Review of Business and Technology - May 2016 www.africanreview.com
Bobcat’s backhoe loadersare versatile and suited to many
applications - including digging,trenching, breaking and
material handling”
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53African Review of Business and Technology - May 2016
www.africanreview.com
CONSTRUCTIONTimber
Structural timber awardsThe Institute for Timber Construction (ITC-SA), South Africa’s
professional body and regulator of the engineered timberstructure industry and provider of design, manufacturing,
erection, inspection and certification for compliance, hosts the 2016edition of its Annual Timber Engineered Product Awards on 19 August.The event acknowledges exceptional work in the structural timberindustry - including roofing, decking and timber frame construction,by ITC members.
Lyndsay Cotton, ITC-SA chairman, commented, “The Institute ofTimber Frame Builders (ITFB), which was incorporated into the ITC-SAthree years ago, had a fantastic tradition of hosting its awards tocelebrate superior workmanship in the timber construction field. Weare delighted to continue this tradition in the ITC-SA and look forwardto adding a roofing category to this prestigious event.”
ITC at Interbuild AfricaThe ITC-SA Annual Timber Engineered Product Awards will be hostedat Expo Centre Nasrec in Johannesburg, during Interbuild Africa 2016,at which the Institute will be exhibiting.
Interbuild Africa has been running since 1968, and is the largestbuilding services and construction exhibition in Africa, hosting the full
spectrum of building and related industries in residential, commercialand industrial development. It offers new product launches, livedemonstrations, technology innovations, conferences, seminars andprofessional expertise. Interbuild Africa 2016 and its co-located shows- Glass Expo Africa, Plumbdrain Africa, EcoAfribuild, Wood World SouthAfrica and Hardex Africa - provide exhibitors with an unrivalledplatform to meet new and existing customers, launch new products,and generate new sales leads. �
House Gregory, built by Henton Homes, which won a Gold Award at the ITC-SA AnnualTimber Engineered Product Awards in 2015
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There were numerous innovations anddevelopments at the2016 edition ofbauma, the world’s largest trade fair for
construction and mining equipment, held ona total exhibition space of 605,000 squaremetres. Four enterprises were particularlynotable for their products’ suitability toAfrican applications. Bobcat, SDMO, Liebherrand Volvo Construction Equipment each hadsomething substantial to offer.
Bobcat focuses on costs and maintenanceBobcat introduced its new backhoe loaderrange at the show. All four models in therange feature the Perkins 1104C-44T 4.4 lengine with direct fuel injection and a best-in-class output of 74.5 kW (100 HP) of powerat 2200 RPM and maximum torque of 408 Nmat 1350 RPM, according to Bobcat. The newbackhoe loaders can be used in a variety ofapplications, while keeping operating costsreduced due to low fuel/oil consumption.
“The backhoe loader is one of our newproducts. We always continue to invent andhave new models coming into the market toshow that Bobcat is active in the market andthe backhoe loader one. For us its veryimportant to add the backhoe loaderproducts on the portfolio products,” saidGaby Rhayem, Doosan’s regional director.
SDMO offers comprehensive coverageSDMO showcased a range of productsadapted to the requirements of the rentalmarket. The products are designed to adaptto the rental sector’s constraints andrequirements in terms of ergonomics, lownoise level and maintenance. The RentalCompact range is equipped with a KohlerDiesel Engine Stage 3A engine, which wasdisplayed at bauma by the R22CrKDI andR44C3 KDI gensets. Three models areavailable from 22 to 44 kVA (22, 33 and 44kVA). These sets are equipped with excellent
compactness, low fuel consumption andextended servicing schedule.
“The product is designed for people whodo not know how to use a genset, its easy toconnect, easy to use and easy to maintain.Especially for the rental and constructionbusiness we try to cover all the differentregions,” said Philippe Forest, SDMOcommunications manager. “Rental companieswant reliable engines which is why theseengines are important and they want to payless to use it so they want some products thatbring consumption down, the duration formaintenance is longer - these are theadvantages of this engine. As a rentalcompany we use it as its reliable, its compactand has extended services. The rental marketis becoming increasingly important.”
Liebherr counts on new customersLiebherr showcased over 100 constructionand mining machines at the trade fair, withconsiderable success. Stefan Heissler,Member of the Board of Directors of theLiebherr Group, reported, “With this year’sappearance we were once again able toshow our innovative strength, performance
and technological diversity to a very largeand international visitors from the industry.We conducted interesting discussions withnumerous customers and partners fromvarious countries and discussed newprojects.”
Volvo delivers its best to its customer base Meeting the rising demand amongcustomers for articulated haulers, Volvo hadthe A60H, the biggest articulated hauler onthe market, on display at bauma. With its55-tonne capacity, it offers an alternative torigid dump trucks and construction trucks.
According to Jonas Gardetun, vicepresident EMEA Hub South, the A60articulated hauler is a key product for manymarkets, one especially being Africa as a lot ofthe mining companies in the continent useVolvo haulers. Mr Gardetun said, “In Africa wemeet the demands of the most advancedcustomer - multi-international companies inthe mining sector all the way down to thecustomer who has small operations and onlyseeks a reliable machine at a good price -looking for the value segment, which is whywe have the two brands SDLG and Volvo.” �
baumaconsTRucTion
Key solutions on showat bauma 2016bauma’s latest platform empowered Bobcat, sDMo, Liebherr and Volvo toshowcase new developments in construction and mining machinery
Gaby Rhayem, regional director at Doosan
54 African Review of Business and Technology - May 2016 www.africanreview.com
S14 ATR May 2016 Advertorial_Layout 1 28/04/2016 16:53 Page 54
Experience the Progress.
www.liebherr.com [email protected] www.facebook.com/LiebherrConstruction
Liebherr Wheel Loaders L 524 - L 580 Minimal operating costs due to economical fuel consumption and low tyre and brake wear Higher productivity and stability achieved through the unique position of the engine Significantly fewer wear components due to innovative drive concept Optimum service accessibility for all important components
S15 ATR May 2016 Report Mining_Layout 1 28/04/2016 16:50 Page 55
in mining, there are two ways to movematerial from the pit to the processingplant: trucks or long haul conveyors. As
mines are constructed in more remotelocations, there is a trend to move away fromtrucks and rely solely on conveying systemsto move ore. These sites, sometimes referredto as 'truckless mines', must be vigilant aboutkeeping their conveyors online as theypresent a single point of failure in anoperation. It is not realistic to install spareconveyor capacity as some of these systemsapproach 40km in length.
Mining conveyors operate at low speeds,which is ideal for advanced conditionmonitoring systems. Components that aretypically checked include motors, gearboxes,important roller bearings, and main idlers and pulleys. Only the most critical of thesecomponents are monitored, as it’s not costeffective to evaluate all of the idlers on a long conveyor.
Miners know that things are going tobreak; however, deploying an effectivecondition-monitoring program can move asite toward zero unplanned downtime. Thebest practice for conveyors is to deploy acombination of monitoring that uses both anonline system (CSI 6500) and wirelesstransmitters (CSI 9420), both of which utilize
PeakVue impact monitoring. The6500 measures vibration on thecritical drive system and pulleyswhile wireless is used toevaluate the tensioning pulley(since this moves, wirelessdevices work best).
Managing mechanical issuesOne copper mine owned by a majorproducer has a five-mile long belt conveyorthat moves ore from the in-pit crusher to theconcentration plant. Mechanical breakdownsof their conveyor caused significantdisruptions to the mine’s production.Replacing one of the many conveyor drivetrain components, like a gearbox, couldresult in an eight-hour outage, costing overtwo and a half million dollars in lostproduction.
Manual monthly vibration readings on theconveyor’s major components weren’t able topredict failures that impactedproduction like tooth damage andbearing failure, so the site switched
to an online condition monitoring system,which now generates early warnings ofimpending mechanical failures. Using thispredictive data, the mine has put a programin place where most impending failures areserviced during scheduled conveyor
maintenance outages and their productiondelays are greatly reduced. The mineexperienced an improvement in safety asfewer workers needed to be sent out forrepairs during normal operations.
The bottom line is that a comprehensivecondition monitoring system will move amine toward uninterrupted operation of acritical conveyor; allowing miners to go theroute of a 'truckless mine' without sacrificingmine productivity. �
Douglas Morris, director of marketing, mining &power industries, Emerson Process Management
Material HandlingMining
56
Monitoring mining conveyor conditionsWhy maintaining material handling equipment is critical to productivity inthe minerals industry
The motor, take up pulley, drive and tail pulley are
monitored closely for issues
African Review of Business and Technology - May 2016 www.africanreview.com
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Brown outs, rolling blackouts, or load shedding, as some energyproviders call them, the erratic nature of electricity supply isnothing new to anyone on this vast continent. For Africa’s mining
industry, reliable power supplies are as essential for businessproductivity and success, as they are for maintaining the absolutesafety of the men working the mines who rely on a great many criticalsystems, which need power to keep them running.
Unreliable grid supply has meant a huge reliance on diesel gensets,large and small, throughout the industry and that’s not cost-effective,particularly for mines in remote locations, which often rely totally ontheir own autonomous power-generation capabilities because of beingoff-grid completely. Keeping the systems operational and wellmaintained; the logistics involved in the regular and uninterruptedsupply of diesel to power them, particularly transporting it over ruggedand often hostile terrain; making sure there are uninterruptable powersupply back-ups should the main generators stop working and that’swithout mentioning the emissions. This whole traditional power-generation picture for the mining sector has become unviable and hasforced it to consider other options. In some mines in Tanzania, forexample, powered by generators using diesel that’s journeyed rightacross the country, a kilowatt-hour can cost the operator as much asUS$1 to produce (compared to grid power in a US mine, which costsless than ten cents for the same output).
Meeting Needs with SolarOne area the sector is fast reviewing is that of renewable poweroptions available to it. A growing number of African mining operationshave sent out RfPs over the past couple of years in the search forsuitable renewable sources of power and the business cases foralternative solutions are under the mining spotlight. It’s no wonder thatevents such as last year’s Renewables and Mining Summit & Exhibitionin Johannesburg was a sell-out. The mines need to reduce their energyoperating expenses and there are a great many innovative solutions onthe market to help them achieve those aims.
Power-supply needs for mines, especially those in remote areas, areunique. Not only do they need predictable supplies, they also needpredictable energy costs that compete with diesel generators but thatare cleaner and less logistically taxing. With mines operating 24/7 andalmost every day of the year, outages are unacceptable. That makes theuse of certain renewable impractical on their own – wind andphotovoltaic solar panels deliver such variable ups and downs in theirsupply that they cannot be relied on alone.
However, there are companies which have pioneered the use of fullyintegrated molten salt storage in their concentrating solar power (CSP)solutions, which are said to be as reliable and available as conventionaltechnologies, though fuelled by solar power, with minimal reliance on
diesel or gas in their operations.These solar power plants can, given the optimal combination of solar
energy storage and steam generation, operate in isolation to provide adedicated supply feeding all a mine’s necessary services. And they cando all this in a way that significantly reduces cost and risk, in turnimproving competitiveness and sustainability. CSP combined withmolten salt storage technology (the latter is used as a thermal energystorage method to retain energy collected by the CSP tower, whichthen drives an engine connected to a power generator) is claimed bysome to offer the most reliable baseload solar generation solutionavailable and could offer the mining sector across Africa, certainly asolution for the more remote facilities currently operating.
Everyday Sunshine – Why Not Use It?If you consider that solar energy is already used in many everydayscenarios in Africa, from powering calculators and computers inschools, to water pumping and communication, it is, perhaps,surprising the mining sector has taken so long to get to grips with whatthe potential of solar can do for its operations. And it’s not as if sunlightis a scarce resource across the whole of Africa, either. In SA alone, mostareas average over 2,500 hours each year, with average solar-radiationlevels between 4.5 and 6.5kWh/m2 every single day. SA has one of thehighest levels of solar resource in the world, with an annual 24-hourglobal solar radiation average of about 220 W/m2, compared withabout 100 W/m2 for Europe.
That Africa’s mining operations are now seriously looking at thelatest in solar power innovations to help drive their industry forward isa very positive step, and one from which not only the mines stand tobenefit but also the wider environment. �
Tim Guest
PowerMining
58
Sunshine in the mineAs significant power disruptions and increasing energy prices continue toaffect the power-dependent mining sector across Africa - as well as almostevery other area of everyday life - mine owners and operators, more thanever before, seem to be reviewing the options available to them forpowering their mines
Power-supply needs for mines are unique.(Photo: TTstudio/Fotolia)
African Review of Business and Technology - May 2016 www.africanreview.com
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MiningTechnology
59
Why innovation is keyto growth in mining The mining and minerals processing unit at Hatch goba focuses on deep-level mining, shaft infrastructure and hoisting capability
African Review of Business and Technology - May 2016www.africanreview.com
An ongoing trend in mining is the driveto reduce operating costs and therebyretain the best mining assets possible.
“Obviously there are different players in themining industry. The senior level has a verydifferent appetite for projects,” said KevinSeyfried, director mining AEM, associate atHatch Goba, in a recent discussion oninnovation. “It is also trying to see where youshould, and should not, spend your money. Ifyou are a big organisation, the structures andfixed costs are much different. Even for thelean-and-mean operations, we are able toprovide a lot of support. While these often donot have the same in-house acumen as thelarger mining houses, they have the drive andappetite to take smaller mines into the future.Therefore the smaller players also have a critical role to play.”
In a South African context, Seyfried saidthat many of Hatch Goba’s mining clients aretesting new technologies in tandem withOEMs. “The current position is that mining isgetting deeper, together with the lowercommodity prices and reduced profit marginsas a result. We are continuously developingmore cost-effective means of getting the ore out.”
While mechanisation plays a major role inthis regard, Seyfried said that currenttechnologies are mostly suited to wider reefs.He added that trends such as lasers andsolution mining are all predicated on notexposing the workforce to any hazards ordangerous working conditions. �
Extended Guaraoductson WEG Pr
ntees
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The statistics surrounding open-castmining production and cost areastounding. Due to the nature of the
vehicles that are used, a small saving in wearand tear or fuel can equate to a large amountof money. From the experiences of Racelogiccustomers involved in the mining industry,the most important savings to be made arefuel economy and the extension of tyre life.
Accurate measurements of consumptionand flow rates are vital in determining howefficiently the vehicle is operating, and how itis being driven. Factors leading to increasedtyre wear can be road inclination, roadcamber, load and load distribution, driverdiscipline (speed of the truck), tyre pressuresand ambient temperature.
GPS enginesThe VBOX IISX Dual Antenna has all thefeatures of a VBOX IISX single antennaversion, but contains a second GPS engine.
By using two GPS engines configured in a'fixed baseline RTK setup', extra parameterssuch as slip and pitch angle (or in analternative configuration roll angle) can bemeasured.
Due to its small size and simple installation,VBOX IISX is ideally suited for use in cars,bikes, off road vehicles and boats.
If you don't want to use a Base Station,then the VBOX IISX range of GPS data loggersgives the highest 'stand alone' positionalaccuracy of our range, utilising the freeWAAS/EGNOS correction service to give <1mpositional accuracy.
Positional accuracies of 40cm (standard) or20cm (optional) are also available when usedin conjunction with a Racelogic DGPS BaseStation.
The differences in dataVBOX data has been collected from variousopen cast mines in South America, Australia,
New Zealand, and Africa, which has shownthat many roads upon which the trucks haveto haul their enormous loads have beenconstructed in a way that is detrimental totyre life.
Road camber, inclination and radius of turncan make a huge difference in the way that a tyre goes through heat cycles. If the truck isbeing forced to turn too tightly or drive uptoo steep an incline, the TKPH (ton-kilometreper hour) values will be exceeded, resulting in overheating. This reduces the lifeof the tyre.
Factors that adversely affect tyre life can bethe same when it comes to fuel usage.
Standard VBOX equipment can be used toaccurately measure a site's road gradientsand turns. Armed with this data, an operatorcan make changes that give their machinesan easier life. Additional parameters such asthrottle position and g-forces can bemeasured to determine whether driverdiscipline is an issue.
Racelogic also supplies systems that candirectly measure TKPH and fuel flow. Theaddition of an inertial measurement unit canassist with detecting uneven loads, which cancause premature suspension failure.
Equipment to install and useEquipment such as that provided byRacelogic helps to reduce tyre wear causedby road inclination, road camber, loaddistribution, driver discipline, tyre pressureand ambient temperature. It is possible, also,to measure a site's road gradients and turns,and to improve tyre life and fuelconsumption. In particular, Racelogicequipment features a CAN bus input to log engine parameters, and is easy to installand use.
Depending on the equipment in use, thefollowing parameters can be measured:speed, G-forces, position, acceleration, trueheading, radius of turn, throttle position,TKPH, fuel flow, and uneven loads. �
Open-castMining
60
Keeping costs down atopen-cast operationsAdvanced equipment from Racelogic monitors and measuresconsumption and flow-rates
VBOX data has been collected fromvarious open cast mines in SouthAmerica, Australia, New Zealand,
and Africa
African Review of Business and Technology - May 2016 www.africanreview.com
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Power
Afull range of generators to suit anyapplication make JCB Power Products an
ideal partner for companies opting for gensetrental as a solution to its energy needs.
The company’s QS Generator range coverspower outputs of 20-220 kVA, whilst JCB’sinnovative Inteli-Hybrid Generators and B40Battery Box provide an alternative powersolution for customers looking to save fueland costs. And now JCB Power Products alsooffers a range of RS-branded generator sets,specifically designed for rental customers.The RS range sits alongside the existing QSline of generators, which can also be tailoredfor rental use with a host of industry-specificoptions.
RS generator sets include:� Robust, heavy duty rental skid base with 12
hour bunded fuel tanks.
� Hard wearing powder-coated zinctec steelcanopies to rental specification
� Single point lifting and fork lift pockets foreasy handling.
� Rental spec Alternators and control optionsincluding Synchronisation.
� Two year, 4,000 hour warranty.� JCB LiveLink telematics.
The business will unveil the new RS-branded generator sets over the next 12months, beginning with the compact rangeof models.
The RS range, specifically designed forrental customers, will sit alongside theexisting QS line of generators, which can alsobe tailored for rental use with a host ofindustry-specific options.
The full range of rental-specific RSgenerator sets feature power outputs from 20kVA through to 2,000 kVA. Produced in theUK, all models feature a sturdy powder-coated zinctec steel canopy for maximumprotection on site. Proven Mecc altealternators are used for efficiency and withDeep Sea Electronics controllers andSchneider switchgear, for durability and easeof operation.
African Review of Business and Technology - May 2016 www.africanreview.com
Providing innovative cabling solutions to the Mining, Oil & Gas, Marine, Energy and Industrial sector.
SANS, VDE, BS, ICEA / CSA, AS/NZS
TELE-FONIKA Kable S.A.Leading European producer of wire and cables
Integrity Passion Responsibility Reliability+ + =
JCB’s QS Generator range covers power outputs of 20-220 kVA
JCB Power Products targets rental markets
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PumpsPumpmakers solarplatform for cleandrinking water
Austrian enterprise Pumpmakers has launched a virtual marketplace tohelp people help themselves by providing individuals, companies,NGOs and volunteers with free access to its Do-It-Yourself Solar Pumpand a global network to implement projects wherever there is a needfor clean drinking water. The Pumpmakers Platform (athttps://pumpmakers.com/shop) helps reduce the global watershortage, strengthens the local economy, creates jobs and preventsmigration from rural areas. Pumpmakers has been installing DIY SolarPumps in Africa and Europe since 2012.
A single pump system provides up to 1,000 people a day with cleandrinking water. Building on the success of these first projects, newPumpmakers projects are following suit in Somalia, Morocco, Zambia,Cameroon and Tanzania.
Pumpmakers are committed to global expansion based around thePumpmakers Platform, with new projects and project partners,including African enterprises. To this effect, entrepreneurs, localcompanies, NGOs and simply individuals requiring water every day mayregister themselves free of charge on the Pumpmakers Platform, andpresent their company, organisation or project to a global community.
African Review of Business and Technology - May 2016www.africanreview.com
Delegation der Deutschen Wirtschaftin GhanaDelegation of German Industry andCommerce in Ghana
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Agribusiness
Agricultural equipment manufacturerMassey Ferguson is introducing a new rangeof 50hp-85hp tractors for selected Africanand Middle East markets. This latest move willfurther strengthen its product offering in thelower horsepower tractor sector in theseterritories and offer a broader choice tofarmers looking for a rugged and reliablemulti-purpose machine. In addition, tocomplement these new MF 300 Seriestractors, a new line of Massey Ferguson-branded implements is also being unveiledfor the region.
“Simple, yet powerful, the MF 300 Seriestractors are tried and tested, with a strongreputation for straightforward operation androbust dependability - they are ideally-equipped to meet the tough challenges ofAfrican and Middle East agriculture,” saidThierry Lhotte, Massey Ferguson vice-president marketing, Europe/Africa/MiddleEast. “More than 1.5mn units based on thisrenowned design are already at work in theworld.”
Affordable and economical to run, theseentry-level ‘do anything’ tractors will havestrong appeal as the main power source forsmallholder farmers or local communitygroups looking to mechanise or upgradetheir agricultural operations. The models canalso be a valuable addition to a machineryfleet on larger farms or estates requiring acost-effective workhorse. Initially, a choice of
six Massey Ferguson matched implements,covering cultivation, planting and transport,will be available for the MF 300 Series. Theseinclude a 1.6m-width disc harrow, 0.5m-widthfixed-disc plough, 2-tine subsoiler, 2-rowplanter, 3-tonne trailer and transport box.Plans are in place to develop the implementrange according to market demand.
“As true multi-taskers, the MF 300 Series areequally adept at cultivation, planting,transport or yard duties, working across awide range of farm sectors including arable,livestock and horticulture,” explained MrLhotte. “Low cost of ownership, easy servicingand maintenance plus expert support fromthe Massey Ferguson local Distributor ensurea fully-sustainable and inclusive farmmechanisation package.”
Consisting of six models in total, three MF300 Series models are set for release in early2016 – the 50hp MF 345 two-wheel-drive(2WD), 75hp MF 375 (2WD) and 85hp MF 385(2WD and 4WD). The longer wheelbase 50hpMF 350 (2WD), 60hp MF 355 (2WD) and 60hpMF 360 (2WD) will follow later in the year.
Fuel-efficient power comes from Perkins 3-cylinder AD 3.152 and 4-cylinder AD 4.41diesel engines. The well-proven mechanicaltransmission offers four gears in two rangesto provide eight forward and two reversespeeds. Powerful hydraulics are based on therenowned Ferguson hydraulic ‘Scotch Yoke’pump delivering full draft, position andresponse control. Fingertip hydraulicoperation of implements above or belowground is by means of the familiar quadrantcontrol. Lift capacities at the rear linkagerange from 1415-2145 kg. A dual-stage clutchensures efficient drive- and PTO-engagement, while the oil-immersed multi-disc brakes allow safe and secure stopping.For reduced driver fatigue, the MF 350, MF360, MF 375 and MF 385 models are fittedwith power steering.
The MF 300 Series tractors boast a spaciousoperator’s environment equipped with aspring-suspension deluxe seat. All controlsare well laid out and fall neatly to hand.Depending on the model, the tractors areavailable in footstep or semi-platformconfiguration.
Massey Ferguson introduces entry-level tractorsMF 385 4WD (85hp) pulling a3-furrow conventional plough
African Review of Business and Technology - May 2016 www.africanreview.com
MF 375 2WD (75hp) working with a 2-row planter
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AgribusinessJCB product marks production milestoneA JCB product that revolutionised the handling of loads onfarms as well as construction sites has passed a major milestone– the production of the 200,000th machine.The JCB Loadall telescopic handler was first manufactured in1977, transforming lifting and loading tasks on building siteswhich until then had been carried out by a small team of men.On farms too the purpose-built machine boosted productivity,stacking bales, loading muck and shovelling grain, replacingrudimentary tractor mounted hydraulic loaders.The first JCB Loadall – the JCB 520 model – was produced atJCB’s World HQ in Rocester, Staffordshire, in October 1977 andin the first full year of production less than 300 machines weremade by just a handful of employees. Today thousands ofLoadalls roll off the production line every year and the businessproducing them employs around 800 people. JCB ChairmanLord Bamford said, “From very small beginnings, the JCB Loadall hasbecome a very important machine for JCB and for the construction andagricultural industries. Revolutionary is often a word that is over-used,
but in the case of the Loadall it is a perfect description. The way loadsare handled on building sites and farms has never been the same sincewe introduced the Loadall in 1977.”
African Review of Business and Technology - May 2016www.africanreview.com
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66 African Review of Business and Technology - May 2016
Connectivity is when everyone communicates with everyone andeverything else, to the benefit of all parties involved. This is also whenall those participating in this tight-knit communication networkreceive the correct information at the right time and in the right place.
Road users form a vast network, much in the same way as the starsin the sky virtually interconnect to create constellations. DaimlerTrucks leads the field in connectivity for commercial vehicles.
The truck manufacturer has been pursuing connectivity as anintegral element of its technology strategy since 2013, alreadyconnecting up more than 365,000 vehicles worldwide over thisperiod.
In future, it will no longer be sufficient to optimise individual flowsbelonging to the value chain. These flows require a network in orderto exploit the available synergies to the fullest. In this process, thetruck becomes an element of the Internet of Things. An object theadded value of which grows massively again as a result ofinterconnection with other objects and devices – for the benefit of allthose involved.
Through V2V and V2I communication – Vehicle to Vehicle andVehicle to Infrastructure – connectivity can prevent gridlocks,markedly reduce fuel consumption and emissions and further lowerthe number of traffic accidents. Society benefits from enhanced safetyand a reduced strain on resources and the environment. Companiesdraw benefits from optimised logistic processes, saving time andcutting costs. The strain on truck drivers as they go about theirdemanding work is relieved considerably. In a nutshell: the intelligent,fully connected truck is the success formula for companies, drivers andsociety alike. Daimler Trucks is systematically developing andexpanding its corresponding services and technologies.
Aksa Jenerator Sanayi AS ..............................................................................15Axis Communications Pty Ltd......................................................................61Caterpillar SARL ................................................................................................19Costex Tractor Parts (CTP) ............................................................................65Delegation of German Industry & Commerce in Ghana ..................63DMG World Media Dubai Ltd (Intersolar 2016) ....................................67Doosan Infracore ..............................................................................................13Eko Hotel and Suites..........................................................................................9Emirates................................................................................................................68Ethiopian Airlines Enterprise ..........................................................................2FLSmidth (Pty) Ltd............................................................................................47Fronius International GmbH ........................................................................43Himoinsa, S.L. ....................................................................................................11IIR Exhibitions (Saudi Power 2016) ............................................................35Jessop & Associates (Pty) Ltd ......................................................................37Kirloskar Brothers Limited ..............................................................................7Liebherr Export AG ..........................................................................................55Linnhoff Technologies Pte Ltd ....................................................................53Liquid Telecommunications ........................................................................22MAN Truck & Bus AG........................................................................................31Mantrac Egypt ..................................................................................................45Metalgalante S.p.A. ..........................................................................................17Pan Mixers South Africa (Pty) Limited ......................................................51Panafrican Group..............................................................................................50Powerscreen / Terex GB Ltd ..........................................................................57Su-Kam Power Systems Ltd. ........................................................................39Tele-Fonika Kable SA ......................................................................................62Terex Finlay ........................................................................................................49Torre Lifting Solutions ....................................................................................29Varisco S.p.A. ......................................................................................................33Volvo Construction Equipment AB ..............................................................5Zest WEG Group Africa ..................................................................................59
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S17 ATR May 2016 Solutions 02_Layout 1 29/04/2016 10:25 Page 66
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