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FINANCE LOGISTICS POWER CONSTRUCTION Five per cent growth expected Ghana Ports and Harbours Authority Mine operators are focusing on Zambia mine prompts in 20 countries P18 reports profit hike P27 renewables P34 housing development P44

FEBRUARY 2018 African ReviewAfrican of Technology Business and

POWER IN MINING P32 Wärtsilä supplies six new 32TS engines for Mauritanian mine

February 2018 MINING INDABA 2018 P50 Thousands of companies expected at the biggest mining indaba show to date

KANU EQUIPMENT P42 Exclusive interview with chief executive Stephen Smithyman on mining prospects Volume 54 Number 1

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www.africanreview.com YEARS “ Opportunities are emerging for West Africa’s abundant shallow and under-developed gold deposits ” 53 SERVING BUSINESS IN Mark Buncombe, Standard Bank group head, AFRICA SINCE 1964 Mining and Metals S01ATRFeb2018-Start_ATR-NewMasterTemplate201622/01/201810:38Page2 S01ATRFeb2018-Start_ATR-NewMasterTemplate201619/01/201814:35Page3

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FINANCE LOGISTICS POWER CONSTRUCTION Five per cent growth expected Ghana Ports and Harbours Authority Mine operators are focusing on Zambia mine prompts Editor’s Note in 20 countries P18 reports profit hike P27 renewables P34 housing development P44

FEBRUARY 2018

fi l h d T i f B i R i Af elcome to our special February mining issue. Opportunities across Africa are opening up in POWER IN MINING P32 Wthe mining sector following a protracted period of stagnancy since 2012. Mark Buncombe, Wärtsilä supplies six new 32TS engines for Mauritanian mine group head, Mining and Metals for Standard Bank, shares with African Review the emerging 2018 b F MINING INDABA 2018 P50 Thousands of companies expected at the biggest mining indaba show to date trends to look out for in the industry, especially the excitement surrounding battery metals, such

KANU EQUIPMENT P42 Exclusive interview with chief executive as cobalt and lithium (see page 16 for full interview). Stephen Smithyman on mining prospects We look at the impact of traditional genset technology (page 32) and renewables in mining 5 1 b 54 N l V (page 34). A solar microgrid is set to power the Otijikoto gold mine in Namibia in 2018. And thanks to mining projects popping up in Africa, associated town and housing developments such as the Kalumbia Town in Zambia are growing apace (page 44). P16 Mining Indaba 2018 in Cape Town from 5 to 7 February is expected to have the show's biggest turnout in its history attracting leading government and business players to share their views on YEARS “ Opportunities are emerging for i i f West Africa’s abundant shallow and under-developed gold deposits ” 53 SERVING BUSINESS IN Mark Buncombe Standard Bank group head, AFRICA SINCE 1964 Mining and Metals the mining industry and the latest projects in and around Africa (see page 50). Finally, as always check out www.africanreview.com for the latest news and updates. Cover picture: Liebherr Cover Inset: Mark Buncombe, group head, mining and metals © Standard Bank Samantha Payne, Editor

Editor: Samantha Payne Email: [email protected] Editorial and Design team: Prashant AP, Hiriyti Bairu, Miriam Brtkova, Ranganath GS, Deblina Roy, Rhonita Patnaik, Rahul Puthenveedu, Nicky Valsamakis, Vani Venugopal and Louise Waters Managing editor: Georgia Lewis Contributing editor: Martin Clark Publisher: Nick Fordham Contents Sales Director: Michael Ferridge Magazine Manager: Serenella Ferraro Tel: +44 207 834 7676 Fax: +44 207 973 0076 Manufacturing Email: [email protected] 15 Representatives from Africa’s cotton industry met for its India TANMAY MISHRA annual summit on the paradise island of Mauritius. Tel: +91 80 65684483 Email: [email protected] Profile Nigeria BOLA OLOWO Tel: +234 80 34349299 16 Mark Buncombe, group head, Mining and Metals for Email: [email protected] Standard Bank shares his views on emerging trends driving UAE SHISHIR DESAI the bank’s interests. Tel: +971 4 448 9260 Fax: +971 4 448 9261 P16 Email: [email protected] Economy UK MICHAEL FERRIDGE 18 Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Following the economic slump in 2016, five per cent Email: [email protected] growth is forecast in 20 countries in 2018. USA MICHAEL TOMASHEFSKY Tel: +1 203 226 2882 Fax: +1 203 226 7447 Finance Email: [email protected] 20 Remittances from East Africans living abroad are rising and Head Office: Alain Charles Publishing Ltd, University House, becoming an important contributor to local economies. 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Logistics Middle East Regional Office: Alain Charles Middle East FZ-LLC, 28 DHL announced as title sponsor at the 2018 DHL Office L2-112, Loft Office 2, Entrance B, P20 PO Box 502207, Dubai Media City, UAE, eCommerce MoneyAfrica Conference and Exhibition. Tel: +971 4 448 9260, Fax: +971 4 448 9261 Production: Srinidhi Chikkars, Nelly Mendes and Rakshith Shivakumar Power in mining E-mail: [email protected] 32 Despite advances in renewables, mini grids and hybrid Chairman: Derek Fordham solutions, large, traditional genset technology are still Printed by: Buxton Press trusted to power Africa's big mines. Printed in: January 2018 ISSN: 0954 6782 Construction 44 Mining firm First Quantum Minerals has contributed to the development of Kalumbila Town, in the province dubbed SUBSCRIPTIONS: P32 the "New Copperbelt". Rates for one year (11 issues): Mining Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, United Kingdom £77, US$140 52 We examine the latest truck brands used in mining To subscribe: visit www.africanreview.com/subscribe operations across Africa. For any other enquiry email [email protected]

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NEWS | NORTH

First Internet of Things network for Tunisia EGYPT: FINANCIAL CLOSE launched by Ooredoo and Sagemcom ON ACWA SOLAR PROJECTS

The Tunisian Ministry of Information and Communication Technologies has issued a licence to enable ACWA Power has reached financial close of two companies to enable them to launch the country’s first Internet of Things (IoT) network. Ooredoo the three solar PV projects worth US$190mn Tunisia and Sagemcom will now be able roll out a range of IoT solutions tp consumers, businesses and under the second round of the Egypt Feed-in- government. Initially, this network will enable devices to exchange small amounts of data with a Tariff programme II, with an aggregate standard batter providing battery life of up to 10 years. capacity of 165.5 MW. The projects, located Looking ahead, the network will facilitate the development of a wide range of services in Tunisia. in the Aswan Province at Benban, will have a These include: Smart City, which is used for parking and presence detection; Smart Industry, which is respective capacity to generate 67.5 MW, 70 used for asset management, predictive maintenance, tracking and logistics; Smart Environment, such MW and 28 MW as individual projects. as fire detection; and applications in other industries, such as healthcare, transport and agriculture. Construction will commence in Q1 2018. These technologies are all provided by Sagemcom. After starting operations in Q4 2018, the new The network is based on LoRA technology, which is a long-range, low-power wireless platform. It is installed capacity is expected to power the prevailing technology for building IoT networks worldwide. 80,000 houses and provide a saving of “We are proud to be the first operator in Tunisia to deploy this technology, which is globally recognised 156,000 tonnes of CO2 per year. as the most successful Internet of Things solution,” said Youssef El Masri, CEO of Ooredoo Tunisia. About 75 per cent of the project cost is According to Eric Rieul, CEO of Sagemcom Energy & Telecom, the “close collaboration with Ooredoo financed through a non-recourse project will reinforce both our vision and strategy for the Industrial Internet of Things, through our Siconia debt from European Bank for Reconstruction products and solutions, and our long-term presence and support in Tunisia and in the wider region”. and Development (EBRD) and Industrial and Commercial Bank of China (ICBC). The IoT technology could revolutionise parking for drivers in Tunisia. remaining 25 per cent is financed with equity capital provided by the sponsors. The project comes in line with the Egyptian government’s target to obtain 20 per cent of its energy requirements from renewable sources by 2022. The feed-in tariff programme aims to secure an initial generation of 2,000 MW of solar capacity and 2,000 MW of wind capacity. Commenting on the financial close of the projects, Rajit Nanda, chief investment officer of ACWA Power, said, “ACWA Power Image Credit: Franciso Gonzalez/Flickr Franciso Image Credit: identified Egypt as an investment destination worthy of pursuit in 2009 and subsequently SONATRACH TO HELP IRAQI OIL AND GAS INDUSTRY established a local company ACWA Power Egypt in 2015. The successful financial close Sonatrach, Algeria’s state energy company, is investigating investment opportunities in Iraq’s oil exploration of these projects is a harbinger of change in and natural gas projects. Jabar al-Luaibi, minister of oil in Iraq, met with Mustapha Guitouni, minister of the deployment of power generation energy in Algeria, in Baghdad. According to Reuters, one of the main aims of the meeting was to seal capacity, and reinforces our belief in the cooperation agreements between Iraqi government and Sontrach, particularly in regard to gas projects. potential that exists in the country.” Mr al-Luaibi said that the Iraq aims to take forward the collaboration with Algeria in developing energy The company is also pursuing other resources across the region. Mr Guitouni expressed hope of strengthening cooperation in oil exploration and opportunities to consolidate its presence in natural gas projects in Iraq. Algeria is one of the main suppliers of natural gas to Europe. The country the Egyptian Market including Dairut 2250 exports gas through pipelines and on tankers after liquefying the gas in plants. Iraq is OPEC’s second largest MW CCGT project and a pipeline of more producer of crude after Saudi Arabia, with output of 4.4 mmbbl per day. Algeria, also an OPEC member, has than 500 MW wind projects, 1GW of PV estimated output of one mmbbl per day. projects and 100 MW of CSP projects.

BRIEFS

Marrakech airport offers new lounge Egypt university expansion

National Aviation Services (NAS) has launched the Honoris United Universities, a pan-African online Pearl Lounge at Marrakech-Menara Airport. The higher education network, will be establishing a lounge offers business travellers a comfortable branch in Cairo after a MoU was signed between environment for working with free wifi and more the Egyptian Ministry of Higher Education and than 150 seats. NAS has 31 lounges across Africa Regent Business School, which is Honoris’ and the Middle East and will soon be opening network institution in South Africa. This MoU facilities at other Moroccan airports including means that Regent Business School will offer local Casablanca, Rabat Sale, Agadir, Tangier, Oujda, and international business and management Image Credit: Honoris United Universities Honoris United Image Credit: Image Credit: NAS Image Credit: Fez, Dakhla and Laayoune. This is part of a 10-year education programmes for Egyptian The new lounge at Marrakech will The MoU signing between Regent benefit business travellers. concession with Moroccan Airports Authority. Business School and the ministry. undergraduate and postgraduate students.

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NEWS | EAST

New hydropower dams could increase the AFDB PARTNERSHIP TO risk of disruption to electricity supply DRIVE OFF-GRID ENERGY INVESTMENTS New research has revealed that hydropower dams planned for eastern and southern Africa The African Development Bank (AfDB) has could put electricity supply at risk for vast regions partnered with Calvert Impact Capital (CIC), because they rely on the same rainfall patterns Global Environment Facility (GEF) and the for electricity generation. Nordic Development Fund (NDF) to drive This is the warning from new research led by investments in off-grid energy across Africa. Professor Declan Conway from the Grantham Through the partnership, the AfDB Research Institute on Climate Change and the approved a US$30mn investment in the Environment and the ESRC Centre for Climate Facility for Energy Inclusion Off-Grid Energy Change Economics and Policy at the London Access Fund (FEI OGEF). This follows the School of Economics and Political Science, in approval of additional investments of Image Credit: skylightpictures/ Adobe Stock skylightpictures/ Image Credit: collaboration with researchers at University Climate change is likely to exacerbate existing US$10mn from CIC, US$8.5mn from GEF and College London, the University of Pretoria and the management challenges for hydropower. US$7mn from NDF. University of East Anglia. FEI OGEF is a US$100mn blended finance The study reveals that if all the large dams that are currently planned are constructed, by 2030, 70 debt fund designed to provide loans in local per cent of total hydropower generating capacity in eastern Africa will be dependent on areas with and hard currencies to off-grid energy similar rainfall patterns. In southern Africa 59 per cent of hydropower generation will depend on areas companies with the dual objectives of scaling with similar variability in rainfall. up access to clean electricity for off-grid This significant dependence of hydropower generation on areas with the same rainfall pattern means households and crowding in local financial that within eastern and southern Africa the majority of hydropower generation will be vulnerable to the institutions as co-lenders. The Fund directly same dry periods and droughts, which could lead to electricity shortages and power outages. supports the Bank’s New Deal on Energy for This could pose a significant challenge for electricity security as hydropower is heavily relied upon in Africa and is part of its “High 5” priority to Africa. For example, hydropower accounts for over 90 per cent of national electricity generation in light up and power the continent, with an Ethiopia, Malawi, Mozambique, Namibia and Zambia. aspirational target of connecting 75 million The researchers added that the problems of a changing climate are likely to exacerbate existing households through off-grid energy access management challenges for hydropower and increase the threat of climate-related disruption in solutions by 2025. Through the use of clean electricity supply. energy instead of fossil fuels to power communities, the Fund is expected to result ETHIOPIAN AIRLINES TO DEBUT FLIGHT TO GENEVA in the reduction of up to eight million tonnes of CO2 emissions over its lifetime. “FEI OGEF is the first Bank instrument that Ethiopian Airlines, the largest Aviation Group in Africa has announced that it will launch direct thrice enables debt financing, including in local weekly service to Geneva, Switzerland on 3 June 2018. currency, to off-grid energy access companies Regarding the launch of the service, Group CEO of Ethiopian Airlines, Tewolde GebreMariam, who need growth capital to expand their said, “Geneva hosts the highest number of international organisations in the world, making it a operations across Africa,” said Astrid Manroth, global hub for diplomacy. It is a perfect complement to Addis our main hub and Africa’s diplomatic Director, Transformative Energy Partnerships capital with the headquarters of the African Union and the UN-ECA (Economic Commission for at the African Development Bank. Africa). Government officials and staff from regional and international organisations in Geneva and The combination of these four first across our extensive African network will be able to enjoy seamless and convenient connectivity investments brings this innovative fund closer enabling them to carry out their missions with ease and maximum convenience.” to its first close target to be achieved in the The route will be operated with a Boeing 787-800, one of the most technologically advanced first quarter of 2018 and provides a strong aircraft in the carrier’s fleet family. signal to the community of interested investors.

BRIEFS

MTN, Vanu deal to increase East African authorities seek to clamp down connectivity in rural Rwanda on taxation non-compliance

The integration of MTN and Vanu networks, a move that will Nikki Summers, regional director, Sage, East extend MTN network, is expected to enable more Rwandans in Africa, says that authorities in Kenya and Tanzania rural areas, who are not connected to enjoy mobile telephone are scrutinising employers in regard to tax services. The agreement will allow for the provision of GSM obligations: “Without improving tax collection, services, including voice and data, which were previously East African countries will not be able to inaccessible to several thousand people in rural Rwanda, effectively finance the building of infrastructure

Image Credit: pookpiik/AdobeStock Image Credit: according to officials. It is expected to not only benefit existing and the provision of public services. We are seeing MTN subscribers, but also create an opportunity for MTN to Tanzanian and Kenyan tax authorities take a more The alliance aims to close Sgae Image Credit: the digital divide by grow its customer base. In addition to voice and data services, robust approach to registering tax payers and providing services that were Nikki Summers puts the spotlight on previously unavailable to the the alliance will allow for the provision of mobile money taxation compliance in Kenya and enforcing compliance,” said Summers. rural population. services through MTN Mobile Money. Tanzania.

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NEWS | SOUTH

Luambe National Park named world’s most BOTSWANA AIMS TO IMPROVE carbon neutral TRANSPORT SECTOR

Luambe’s carbon neutral status is a result of the According to the minister of transport and USAID-funded Community Forests Program (CFP) communications, Kitso Mokaila, the ministry implemented by BioCarbon Partners (BCP) together needs to look into moving freight off the road with the Zambian Government. This world-first level and on to air and rail transport to improve

of carbon neutrality means the emissions of all Wikimedia Image Credit: traffic flow on the roads, Botswana Daily News tourism and conservation management activities reported. Mokaila made the remarks during a within with the park are offset, including all roadmap presentation on Botswana’s international tourist airline travel. This follows the transport sector on the first session of the five Lower Zambezi National Park becoming the world’s day transport sector retreat in Palapye first to achieve carbon neutrality from operations. recently. “Luambe National Park’s carbon neutral status sets a Zambia is addressing its carbon emissions. "The statistics of the SADC freight for great example for other protected areas in Zambia,” example, reflect that 80 per cent is being said USAID/Zambia economic development office director Jeremy Boley. “This status shows the world transported by road. We need to ease such that Zambia takes emissions reduction seriously.” road usage in order to make our roads last Luambe Camp voluntarily funded the carbon neutrality, investing in renewable energy sources and longer and have less accidents in keeping up purchasing Verified Carbon Standard (VCS) audited forest carbon offsets generated within Zambia. with the target 2020 of reducing fatalities," Luambe Camp began operations in June 2017, and are committed to establishing a new bar of he said. environmental stewardship and sustainability. Mokaila noted that the ministry was Mario Voss, director of Luambe Camp, stated that “as a business that operates as a showcase and tasked with ICT and transportation celebration of Luambe National Park’s unique beauty and biodiversity, it is crucial that we take responsibilities and needs to look at how responsibility for its conservation. We’re passionate environmentalists and it is important to the whole they could use ICT to get people off the Luambe Camp team that we can offer our guests a truly eco-friendly experience.” roads. "We are gearing towards working with Africa is expected to be the continent that is most vulnerable to climate change, the leadership of the Department of Roads and Transport Zambian tourism businesses and the Zambian government agrees to operate with carbon neutrality Services (DRTS) to develop a taxi system that and set a positive example throughout the continent. Director of the department of National Parks works for the economy. There is need to and Wildlife (DNPW), Paul Zyambo, stated that, “We are happy to partner with another innovative facilitate for taxis to get passengers to their carbon-conscious achievement in the conservation and tourism sector in Zambia with partners like destinations without hassles through the use Luambe Camp and BCP. Luambe forms a part of Zambia’s famous Luangwa Valley and we hope that of ICT," he said.“We have to get out of our this showcases how special this area is, and why it is worth a visit.” comfort zone and introduce something different in the public transport system," stated Mokaila. ZIMBABWE REQUIRES US$26BN INFRASTRUCTURE Based on the developments being SUPPORT introduced by the Ministry of Land Management Water and Sanitation Services, The Zimbabwe Independent reported according to figures from the IBDZ, Zimbabwe has spent between Minister Mokaila said there was need for his US$1bn and US$3bn per year since 2010 with the highest figure being US$500mn used in 2016. ministry to see what improvements could be Presenting a paper on opportunities available in Zimbabwe in the infrastructural sector recently, IDBZ made in high concentration areas such as head of resource mobilisation Willing Zvirevo said there were many opportunities, however, budgetary bus ranks and airports. allocations have revealed a huge gap in the sector. “With regard to the usage of funds, we “Reality is that we need plus 30 per cent of those estimates to adequately address the gap. There is also have the road fund, which collects the regulatory issues but what we really need is to address the infrastructure gap as we are competing with US$161.9mn annually. This fund can assist in other countries in terms of capital,” he said. the development of roads, but it has been Zvirevo said Zimbabwe needed to improve budget spending towards infrastructure as lower allocations used as a sludge fund in over-paying are short-changing the sector. contractors,” he said.

BRIEFS

Investing in South Africa’s future Enhancing ICT skills in Namibia

Telecom, Media and Tech leaders meet in Cape Green Enterprise Solutions, a fast growing IT Town for regional investment event to discuss company in Namibia, recently signed a partnership future strategies for investment and regional agreement with WorksPad, the mobile business growth. Ben Nice, managing editor, TMT application software for the African continent to Finance said, "Due to hugely popular demand provide ICT solutions for the market and beyond, from our global network, we are delighted to be according to a report by The Namibian. Rehoboth- bringing the TMT Finance franchise to Cape born Le Hané at the Green offices in Windhoek

Town in order to meet the increasing demand for Adobe Stock Image Credit: said, “We take in students from the university, Image Credit: Adobe Stock Image Credit: infrastructure and services in Africa's flourishing University students have been trained to groom them and prepare them to be part of the TMT Finance franchise will be expanding be part of Green Enterprise Solutions into Cape Town. TMT sector." team. solution-seeking team," he said.

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NEWS | WEST

BWSC to supply gas-fired power plant in Benin THE AFDB INKS AGREEMENT The Danish power plant specialist Burmeister & Wain FOR ROAD PROJECTS IN Scandinavian Contractor WEST AFRICA (BWSC), in consortium with MAN Diesel and Turbo (MDT), has been awarded The AfDB and the European Commission US$150.26mn contract to have signed five co-financing agreements build a 120MW gas-fired totaling US$776.41mn to support road power plant in Benin infrastructure projects in West Africa. The project entails Of the total cost, the AfDB contributes construction of a whole new US$416.79mn in loans and grants and the power house for seven MDT European Commission gives US$125.04mn in

dual fuel engines and all BWSC Image Credit: grants. The remaining amounts will be

corresponding infrastructure. Once completed, the plat is expected to be the most efficient plant of its type financed by other partners, including the According to BWSC, the in the region. West African Economic and Monetary Union project is scheduled to be (WAEMU), the concerned West African delivered in 18 months from effective contract. countries and other donors. The dual fuel HFO and gas-fired power plant will be located at the Maria Gléta site, about 15km The agreements were signed during the 6th from the city of Cotonou. The plant is expected to provide electricity to supply the equivalent of EU-Africa Business Forum, held in Abidjan. approximately 300,000 European households and responds to the government’s initiative to develop The presidents of the Economic Community the energy sector in Benin in a sustainable manner. of West African States and of WAEMU, West Benin has a rapidly growing demand for power, estimated at six per cent per year, and this new African transport ministers and donors were project is set to enhance the electricity supply for business growth and living standards in the peri- present at the signing ceremony. urban areas surrounding Cotonou. The cooperation agreements form part of a The project is financed by Islamic Development Bank of Saudi Arabia, the West African Development historic framework agreement known as the Bank and Banque d’investissement et de Développement in Togo. Pillar Assessed Grant or Delegation BWSC won the project in an international tender round, and the contract was signed with the state- Agreement (PAGODA) between the AfDB and owned utility Société Béninoise d’Energie Electrique (SBEE). the European Commission on September 25, BWSC is a Danish engineering and contracting company which develops, builds, operates and owns 2017. high-performance engine-based and boiler-based power plants. So far, the company has delivered As the continent’s premier financial more than 180 power plants to 53 countries worldwide with a total capacity of more than 3,500MW. institution, the AfDB plays a major role in meeting the financing needs of African countries. The signing of the PAGODA EXECUTIVE VICE-PRESIDENT OF OPIC TRAVELS partnership agreement and of these five TO TOGO specific infrastructure projects showcases AfDB’s role in leveraging partner institutions David Bohigian, executive vice-president of Overseas Private Investment Corporation (OPIC), has met to achieve greater development impact. Togolese Prime Minister Komi Klassou and toured an OPIC-supported power plant that aims to triple the The PAGODA is expected to help fund the country's energy supply. rehabilitation of the Lome-Cotonou road, ContourGlobal, the US-based company, built the Lomé Thermal Power Plant in Togo with financing and studies and measures for trade and transport political risk insurance from OPIC, the US Government's development finance institution. One of the largest facilitation on the Abidjan-Lagos corridor, investments ever made in Togo, it succeeded in bolstering the country's energy generation capacity and road development and transport facilitation reducing rolling blackouts. on the Bamako-San Pedro corridor between During his visit, Bohigian also visited a local school in Lomé that has received support from Mali and Côte d’Ivoire, as well as the ContourGlobal's social projects division. He also highlighted the activities of Mo-Lab, a mobile STEM construction of the Rosso bridge between learning center, which is a US Embassy Lomé initiative created in partnership with ContourGlobal. Mauritania and Senegal.

BRIEFS

FAO and WFP to assist farmers in Congo and Nigeria Nigeria signs joint declaration on The Food & Agriculture Organization (FAO) and the economic cooperation with EFTA World Food Programme (WFP) have stepped up Nigeria has signed a joint declaration on economic efforts to assist farmers and alleviate hunger in cooperation with the European Free Trade Congo and Nigeria. Association (EFTA), which is expected to allow In the Democratic Republic of Congo, FAO and both parties to work on a framework to increase WFP will be working in the Greater Kasai area, trade and investment flows. The EFTA-Nigeria which has been affected by conflict. FAO will declaration was signed in Argentina, on the Image Credit: EFTA Image Credit: supply food-growing kits, including cultivation tools sidelines of the 11th Ministerial Conference of the Image Credit: Chain Gang Chain 9/Flickr Image Credit: and fruit and vegetable seeds to allow families to The EFTA-Nigeria agreement is expectd World Trade Organisation (WTO). It will be Women displaced by the Boko Haram crisis to boost the trade and investment working on a farm in northern Nigeria. eat for two months and sell food that is uneaten. opportunities in West African country. implemented by a joint commission of both parties.

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EVENTS | 2018

Upcoming Events Calendar 2018 19 - 21 25 - 26 FEBRUARY SOMALIA OIL, GAS & MINING MOZAMBIQUE MINING, 5 - 8 Nairobi, Kenya OIL & GAS (MMEC 2018) AFRICAN MINING INDABA www.africa-energy.com Maputo, Mozambique www.ametrade.org/mozmec Cape Town, South Africa 20 - 21 www.miningindaba.com SECUREX WEST AFRICA MAY 12 - 14 Lagos, Nigeria www.securexwestafrica.com 3 - 5 EGPYT PETROLEUM SHOW 27 - 28 BUILDEXPO AFRICA Cairo, Egypt Nairobi, Kenya www.egyps.com POWER & ELECTRICITY WORLD AFRICA www.expogr.com 19 - 23 Johannesburg, South Africa 15 - 17 NIGERIA INTERNATIONAL www.terrapinn.com CONMIN WEST AFRICA PETROLEUM SUMMIT 2018 28 - 29 Abuja, Nigeria Abuja, Nigeria EAST AFRICA OIL & GAS SUMMIT www.conminwestafrica.com www.nigeriapetroleumsummit.com Nairobi, Kenya www.eastafricaogs.com 16 - 17 MARCH AFRICAN CONSTRUCTION EXPO 13 - 16 APRIL Johannesburg, South Africa www.totallyconcrete.co.za BAUMA CONEXPO AFRICA 23 - 28 Johannesburg, South Africa INTERMAT www.bcafrica.com Paris, France paris-en.intermatconstruction.com

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NEWS | BULLETIN

MOODY’S NOT ANTICIPATING ANGOLAN DEBT DEFAULT growth as, when taking into account the have the opportunity to conduct due diligence, AFTER RESTRUCTURE significant container trade market contraction such as visiting the plant, meeting management recorded in 2016, this growth is actually only and proposing amendments to the share about 2.5 per cent (2017 versus 2015),” he said. purchase agreement. Looking at imports and exports, Conroy said ENGIE RAISES ITS PROFILE IN that the two markets are shaping up slightly differently, with exports growing faster than WEST AND CENTRAL AFRICA imports. “Year to date (YTD), 45.3 per cent of the container trade was a result of exports (54.7 per cent imports), which is slightly up from a year ago (44.7 per cent) but well above the 2012 figure of 42.3 per cent. So, there has been a continuing ‘balancing of trade’, which is largely ENGIE Image Credit: due to the increase of export mining

Image Credit: Voice of America em Portugues/Wikimedia Commons America em Portugues/Wikimedia of Voice Image Credit: commodities (chrome and manganese).” President Laurenco has taken steps to help ensure Angola does not default on foreign debt.

Leaders from the three energy companies involved in Moody’s, the credit rating agency, does not the acquisition deal at the signing. expect Angola to default on foreign debt, it has announced in a statement released to the ENGIE has signed an agreement to acquire Afric media in January 2018. Power and Tieri, two specialist energy The statement comes in the wake of Angola companies in West Africa. These companies revealing plans to restructure its foreign debt have a presence in Côte d’Ivoire, Burkina Faso, along with devaluing the kwanza currency after Mali and Niger, and export their competencies the collapse of global oil prices. The Angolan throughout the region. economy took multiple hits after the oil price Afric Power and Tieri are complementary Image Credit: Maersk Image Credit: crash of mid-2014. A Maersk analysis offers a nuanced picture of companies offering services including system According to Reuters, Angola’s exchange rate container trade growth for South Africa. design, the assembly of electrical cabinets and adjustment attracted significant attention with automated control mechanisms, and the investors calling for further drops in the value EDO STATE SIGNS REFINERY installation, maintenance and warranty of the kwanza. The Moody’s report said that the coverage of equipment. DEAL WITH CHINA SINOPEC new kwanza regime and the government’s drive TELEMEDICINE BOOST FOR to renegotiate debt put the spotlight on existing The governor of Edo State, Nigeria, Godwin pressures on Angola’s credit rating. Obaseki has signed a Memorandum of GHANA HEALTH SERVICE Moody’s expects the Angolan debt-to-GDP Understanding (MoU) with a consortium led by ratio to rise and for increased inflation to China SINOPEC to develop a modular 5,500bpd impact on growth. However, the report added oil refinery. This follows on from a similar MoU that Angola’s current account was likely to signed by the state with China Harbour improve over time. Engineering Company for the development of In regard to Angola’s critical diamond mining the Glengele Seaport. The Chinese consortium Novartis Image Credit: sector, Russian diamond mining company, that will handle the modular refinery project is Alrosa, has received approval from President made up of Peiyang Chemical Equipment Laurenco to expand its stake in Angolan Company of China, a modular refinery company; diamond producer, Catoca. Alrosa will acquire Sinopec International Petroleum Service an 8.2 per cent stake in Catoca via its daughter Corporation, a subsidiary of Sinopec, and company Wargan Holdings for US$70mn. African Infrastructure Partners, a Nigerian MAERSK ANALYSES SOUTH infrastructure company. Telemedicine technology will improve healthcare delivery especially for remote regions in Ghana. AFRICAN CONTAINER TRADE MAJORITY STAKE IN CARTHAGE GROWTH FOR 2017 CEMENT FOR SALE The Ghana telemedicine programme, with the support of the Novartis Foundation), is being During the third quarter of 2017, the total The Tunisian State and Bina Corp, controlling rolled out across the nation by Ghana Health import and export container trade market shareholders of Carthage Cement, are Service. The telemedicine service started as a experienced consistent 10 per cent year-on-year proceeding with a public tender for the sale of a pilot model in the Amansie West District of the growth, a similar result as in previous quarters. 50.52 per cent stake in the company. A Ashanti Region in 2011, covering 30 According to Matthew Conroy, trade manager, consortium of ECC Mazars, IEG Tunisia and communities of around 35,000 people. Since Maersk Line, South Africa, this is a mixed result Mrabet Avocats has been formed to achieve the then, the Ghana Health Service selected it for for the industry, which is experiencing volatilty transaction as advisors to Al Karama Holding. national implementation as part of its national rather than “robust growth” Potential investors will be informed of their e-health strategy to use information and “While 10 per cent year-on-year growth is qualification in early February 2018 and will communications technology (ICT) to improve encouraging, this is not a true reflection of real then be invited to obtain tender documents and healthcare delivery.

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TEXTILES | MANUFACTURING

Digitalisation set to change textile industry Representatives from Africa’s cotton industry met for its annual summit on the paradise isle of Mauritius.

he African Cotton and Textile share of 40 per cent in 2016/17 from TIndustries Federation (ACTIF) just 25 per cent the previous year, annual ‘Made in Africa’ on the back of stronger sales to conference met in Mauritius to China, Indonesia, and India. discuss the many issues and That represents exports of 3.1mn opportunities facing the sector. tons compared to the 1.1 mn tons The location was highly that the West Africa region exported. appropriate. It was in Mauritius in Yet, even in the face of growing 2000 that the African Growth and exports and demand, cotton is being Opportunities Act (AGOA) was agreed outpaced by the burgeoning use of by the US and African countries. This synthetic textiles, especially was of immense benefit to the polyester. Polyester is often blended continent’s textile and apparel with cotton for affordability and the industries as it granted tariff-free convenience of non-iron textiles. access to the American market for The textile manufacturing process these products. is also changing with technology. The AGOA trade pact saw a flood The digitisation and of investments into Africa’s textile interconnection of every factory, manufacturing industry, from every machine, every technology countries such as China, India and component (the so-called ‘internet Turkey, (as well as the US itself) of things’) – and virtually every piece attracted by the potential of the of material that runs through the US market. Image Credit: Adobe Stock Image Credit: production process – promises the According to the International The US’s exports of cotton surged to a global share of 40 per cent in 2016/17. next paradigm shift in industrial Trade Centre, which is a multilateral manufacturing. agency that has a joint mandate This trend promises massive gains with the World Trade Organization On the clothing side, there was lower wage costs. in speed, productivity, flexibility and and the UNCTAD to collate statistics, also some fascinating World Trade Technology is transforming the quality. Known as the Fourth Mauritius is sub-Saharan Africa’s Organization data presented to the types of textiles being produced, Industrial Revolution, it may seem leading apparel exporter, in 2016 Origin Africa conference that and the how those textiles are to be almost fanciful, but the vision of a exporting more than US$740mn showed that China’s apparel exports, manufactured in the 21st century. number of truly smart African textile worth of clothing. in 2015, amounted to almost Marsha Powell, a consultant for or clothing factories is increasing Mauritius is followed by US$200bn, dwarfing African exports. Cotton USA, explained to the Origin being viewed as a reality. I Madagascar and South Africa that But the figures also show that even Africa conference, how the US’s each exported apparel valued at just if China is by far the biggest exports of cotton surged to a global by Stephen Williams over US$400mn; then Lesotho exporter, there is a significant shift (US$300mn) and Kenya (US$280mn). of production to the Pacific rim There was encouraging news from countries such as Vietnam and Francophone West Africa, Cambodia (as well as Bangladesh). traditionally one of Africa’s major Asia’s emerging economies are on cotton-growing regions. Burkina the rise as both markets in their Faso cotton acreage was up eight own right and exporters. per cent in 2017/18, while Malian Nevertheless, China still holds the acreage and production is expected lead in the manufacture of textile to reach a 10-year high 2017/18 machinery, accounting for about 90 after a strong increase in 2016/17. per cent of new machines supplied Côte d’Ivoire’s production was up by globally. six per cent. Benin’s production was Meanwhile, the major apparel stable with only Chad expected to manufacturers in the developed have a smaller crop. Cotton remains world are looking to technology to the continent’s most valuable compete with their counterparts in non-food agricultural export. the developing world that enjoy

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PROFILE | STANDARD BANK

Outlook looks promising in commodity sector Mark Buncombe, Group Head, Mining and Metals for Standard Bank shares his views with African Review on the emerging trends driving the bank’s mining activities.

s Africa’s largest bank by assets, likely to see significant new activity in more money is spent on exploration Standard Bank understands the these commodities,” said Buncombe. in legislatively attractive environments importance of the commodities “Given the remoteness of deposits, new investment is likely to pick up.” Asector to the future growth and associated industrial and logistics It means Standard Bank is seeing prosperity of the continent. connectivity infrastructure an increased demand for mining Its mining finance division brings development are also likely to offer sector funding. together highly skilled and opportunities in central Africa as well That also includes activity in South experienced multi-disciplinary teams, as between these assets and Africa, the continent’s largest drawing on a global capital reach with associated sea ports.” economy. a strong local presence. Buncombe said multinationals The team is led by Mark Project pipeline there are looking to diversify Buncombe, group head, Mining and The outlook is encouraging. Most ownership by developing Bank Standard Image Credit: Mark Buncombe, Group Head, Mining Metals for Standard Bank. commodities, bar platinum, have seen commercially viable local and Metals for Standard Bank He said, “We see a number of trends significant price recovery, said relationships. “Generally improved driving our work at the moment. With Buncombe. At the same time miners metals prices combined with continued macro instability, the gold have done a lot of work cutting costs. rationalised cost-bases are likely to see Standard Bank’s presence across 20 price has stabilised at a relatively high While the protracted absence of a re-gearing and re-financing of African economies means that it is well level. Coupled with improved investment in prospecting will weigh existing assets in South Africa as new placed to advise clients on both legislation in countries such as Ghana on the industry for many years to local players enter the market. opportunity and risk while working and Côte d’Ivoire opportunities are come, he said, globally margins have Emerging empowerment players– like closely with local legislators to find the emerging for West Africa’s abundant improved. the new companies that will emerge optimum balance between profit and shallow and – as yet – under- Miners have significantly reduced out of Eskom’s requirement to sustainable national development. developed gold deposits.” debt levels and balance sheets are purchase from locally owned The bank’s partnership with the Standard Bank’s recently generally stronger. While the volatility collieries, for example – will require Industrial and Commercial Bank of established presence in Côte d’Ivoire is of recent years means that many financing as assets change hands from China (ICBC) is another essential timed to concentrate both global companies are reluctant to spend, large multinationals to local emerging differentiator, which unlocks capital and the group’s extensive where real risk-managed entities. Standard Bank’s developed opportunity at both ends of the mining capabilities on these new opportunities present themselves capabilities in structuring debt- bank’s Africa-China trade and regional opportunities. A case in point investment is taking place. managed empowerment transactions investment corridor. is the bank’s funding of Gold Field’s He said, “From an African is expected to be particularly relevant With China accounting for ongoing expansion of its Damang perspective those markets – like in this regard.” approximately 50 per cent of world mine in Ghana. Botswana, Namibia and increasingly Again, a recent example of this commodity consumption, it is now a And it is not just West Africa that Ghana, Côte d’Ivoire and Zambia – trend is the bank’s support of Seriti in major player across Africa’s mining presents good opportunity. As the that have developed balanced its proposed acquisition of Anglo sector. world evolves towards electric cars, the legislative regimes cognisant of the American’s South African thermal coal “Given this reality, any importance of, primarily, copper, but industry’s long investment cycles assets. consideration of commodity financing also cobalt and lithium, to the global while also talking to national in Africa needs to be predicated on battery industry will be a strong driver development are likely to attract Nurturing growth access to – and capability in – China,” of mining investment in central Africa. global interest. While, in Africa, Given Africa’s rich resource said Buncombe. To this end ICBC’s “Both Zambia and the Democratic activity is largely likely to focus on endowment mining is and will shareholding in Standard Bank will Republic of Congo, for example, are rejuvenating mothballed projects, as continue to be central to the growth remain critical to supporting and and global integration of African growing Africa’s commodity sector. economies and a major determinant He said, “This will include Opportunities are emerging for West of the prosperity of Africa’s peoples. investment in the associated Many countries in Africa have industrial and logistics infrastructures Africa’s abundant shallow gold deposits ” learned that the right legislation can required to make Africa’s resources achieve national development goals relevant to the world. This is especially MARK BUNCOMBE, GROUP HEAD, MINING AND METALS FOR by creating a fair, responsible and so as Africa emerges as commodities STANDARD BANK conducive environment for foreign and energy supplier and beneficiator investment. to rapidly growing Asia.” I

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FINANCE | REPORT

Regional economic activity regaining momentum After an economic slump in 2016, growth revival is underway across much of sub-Saharan Africa, economist Moin Siddiqi reports.

Sub-Saharan Africa's 2018 growth falls into three groupings Strengthening global COUNTRY GDP (2016) Real GDP CPI Inflation Trade Balance FDI Stock activity,commodity prices US$bn Growth (%) (% chg) (% of GDP) US$mn (notablycrude oil) above High Performers 2017 2018 2017 2018 2017 2018 2016 2016’stroughs and improved Ethiopia 72.37 8.5 8.5 8.1 8.0 -15.6 -14.8 13,700 financing conditions for frontier Kenya 70.53 5.0 5.5 8.0 5.2 -11.7 -12.5 11,233 markets provide a welcoming Tanzania 47.43 6.5 6.8 5.4 5.0 -7.1 -8.0 19,818 external environment for the African Ghana 42.69 5.9 8.9 11.8 9.0 -3.2 -1.0 29,882 continent. Cote d'Ivoire 36.16 7.6 7.3 1.0 2.0 6.9 6.8 7,605 Growth pickup in the Euro Mid-Tier Performers areaand the United States alongside Cameroon 24.20 4.0 4.6 0.7 1.1 -1.3 -1.5 6,927 continuous robust expansions in Zambia 19.55 4.0 4.5 6.8 7.4 0.1 0.9 14,936 China and India, the four major Botswana 15.27 4.5 4.8 3.7 3.7 -6.4 -6.2 5,835 export destinations and Mauritius 12.16 3.9 4.0 4.2 5.0 -19.7 -20.2 4,606 development partners, bode well for Mozambique 11.01 4.7 5.3 17.5 10.5 -11.6 -29.1 31,830 Africa’s trade and investment prospects as well as for remittances. Low-Gear Growth After broad-based slowdown in Nigeria 405.08 0.8 1.9 16.3 14.8 1.5 1.0 94,184 2016, growth revival is underway South Africa 294.84 0.7 1.1 5.4 5.3 0.9 0.5 136,837 across much of sub-Saharan Angola 89.63 1.5 1.6 30.9 20.6 13.8 12.3 49,545 Africa(SSA), with 20 of the region’s 45 Zimbabwe 16.28 2.8 0.8 2.5 9.5 -8.9 -5.8 4,286 Gabon 14.21 1.0 2.7 2.5 2.5 15.4 16.2 7,467 economies expected to grow briskly at 5 per cent or higher (mostly in Source: World Bank, IMF Regional Economic Outlook October 2017 & World Investment Report 2017. eastern and western Africa) in 2018. The International Monetary Fund (IMF) regional growth outlook at 2.6 Tanzania on upturns in public (Mozambique and Zambia). The non-oil sector, which until 2014 was and 3.4 per cent, respectively for investment. Activity is also latter has benefited from recent expanding at a strong pace. An 2017 and 2018 is similar to the World rebounding in countries hit by the rainfalls since hydropower sources upturn in the petroleum sector too Bank’s projections. Growth inSSA 2015 Ebola outbreak (Guinea, Liberia account for 97 per cent of total helped SSA’s second-largest oil excluding Nigeria and South Africa is and Sierra Leone). Ethiopia should electricity production in Zambia, producer (Angola), although fiscal higher, on average 5.1 percent in remain Africa’s fastest-growing according to the World Bank. consolidation measures have slowed 2018-19, close to the levels seen economy over the coming years. *Slow-growth lane – SSA’s largest non-oil growth. The normalisation during early 2000s. *Mid-tier performers – where economies: Nigeria, South Africa, of mining and agricultural increased output and investment and Angola have exited recession, production lifted GDP growth in Greater diversity inthe mining sector is supporting however, their pace of recovery South Africa, but policy uncertainty Developing Africa is a highly diverse growth in metal exporters (Zambia), remains feeble. Reviving oil output and low business confidence regional economy; aggregate growth along with brisk activity in services (1.8mn bpd in late 2017, up from continue to hinder private numbers in 2018 should fall into (Mauritius) and the non-oil sector 1.4mn bpd in mid-2016), plus good investment. Faltering domestic three divergent groups. (Cameroon). Improved weather harvest led to growth pickup in demand also weighs on the *High-achievers – where growth is conditions in southern Africa will Nigeria. Reforms in the foreign manufacturing sector and high driven by ongoing infrastructure boost agricultural output exchange markets should aid the unemployment affects consumer investment (Ethiopia), business- businesses. Activity has weakened in friendly reforms (Senegal and most Central African Economic and Rwanda), higher oil-gas production 20 of the region’s 45 economies expected Monetary Community (CEMAC) (Ghana), along with recovery in the countries (Chad, Congo, Republic agricultural sector and domestic to grow at 5 per cent in 2018 ” and Gabon) due to steep cuts in demand. Elsewhere, growth public spending. A deep recession isexpected to recover in Kenya, as MOIN SIDDIQI, ECONOMIST has gripped Equatorial Guinea since political uncertainty eases after the 2014 because of plunging oil Presidential elections and improvein revenues and rising debt levels.

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REPORT | FINANCE

Low financial buffers SSA Growth excluding Nigeria & South Africa should enable commodity exporters to Region-wide, currencies have accumulate international reserves, but 7 stabilised after hefty depreciations in 6.6% the low import coverage will weigh on 6 2016, while ‘single-digit’ inflation is 5.4% 5.8% the ability of central banks to continue 5.1% predicted in most countries (except 5 managing their currencies.” On the 4.7% Angola, Congo, DRC, and South 4.4% positive side, a pickup in commodity Sudan) amid currency stability and 4 3.6% prices has induced foreign investments

higher food production. Fiscal 3 in extractive industries. deficits slightly narrowed, but In summary, significant challenges 2 continued to be high in Angola, lie ahead to promote shared Equatorial Guinea, Kenya, 1 prosperity since output growth Mozambique and Zambia, as fiscal remains below the pre-crisis average. 0 adjustment measures remained 2012 2013 2014 2015 2016 2017 2018 “Sub-Saharan Africa can seize partial at best, noted the WorldBank. opportunities to enhance growth Source: IMF Regional Economic Outlook October 2017. But macroeconomic imbalances have above current projections through emerged in many countries – reflected exporters. In Angola, Gabon, and Some countries have seen a sharp fall structural transformation and export in rising public debt, which is now Nigeria they absorb nearly two-thirds in credit to the private sector. While diversification. Macroeconomic above 50 percent of GDP in half of of government revenues. Hence, current account deficits have stability carries a large premium,but regional economies. Government debt diverting scarce resources away from narrowed, forex reserves remain low in beyond that, many countries could has swelled in Congo, Republic, Eritrea priority areas like healthcare and many countries – below the global also strengthen their growth prospects and Gambia – exceeding 100 percent education. Banks’ liquidity and benchmark of a three-month import by improving access to credit, of GDP (IMF data). solvency indicators have deteriorated, cover. The World Bank said,“The infrastructure and the regulatory Concurrently, debt service costs and non-performing loans have prospects of stabilising commodity environment and building a skilled have risen, especially among oil- increased (Angola, Ghana, Nigeria). prices, together with financial inflows, workfoce,” the IMF urged. I

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FINANCE | REMITTANCES

Remittances to East Africa boost local economies Mwangi Mumero examines the fragile dependence on the East African diaspora sending money to their countries to enlarge their economies.

emittances from East Africans Data from the CBK indicates that estimated at around 1 million, is aged transfers home. Rliving abroad have been rising Kenyans in the diaspora sent home between 21 and 50 years, with Western Union recently announced and are becoming an US$1.71bn in 2016 up from incomes ranging between a collaborative agreement with Airtel important contributor to the local US$1.54 bn the previous year, an 11 US$ 1,000 and US$20,000, with the Rwanda to facilitate international economies as returns from per cent year-on-year increase. majority being employed and others money transfer for Rwandans across agricultural exports decline. The World Bank expects the figure self-employed. the globe. Western Union is already Overall, the East African economies to hit US$2.2bn in 2017, a 4.1 per With increased demand for the established in other East African received more than US$3.5bn in cent growth, according to the latest money transfer services, global firms nations mainly through partnerships diaspora remittances in 2015 with the released data. have invested heavily in East Africa with banks, postal services and other three large nations showing immense “Remittances continue to be at and the African continent at large. organisations. growth. record levels. We have seen The main firms in the remittance Two years ago, MoneyGram signed Uganda posted a 21 per cent acceleration over the Christmas business include WorldRemit, a deal with Kenya’s telecoms firm growth rate after receiving period and it is something we expect Western Union, Dahabshiil and Safaricom that enabled customers in US$1.1bn in remittances. Kenya, the to continue”, observed Patrick Money Gram. over 90 countries to send funds to region’s most advanced economy, Njoroge, Kenya’s Central Bank WorldRemit is the market leader in almost 20 million M-Pesa customers. signalled an 8.6 per cent increase. Governor. the global digital money transfer The cost of sending money to However, it received the highest North America continues to be the service. Globally, its customers send Africa, however, remains the biggest amount at US$1.54bn. Tanzania major source of remittances with almost 700,000 transfers every month bottleneck to the business, according received US$390mn, according to Kenyans living in the US and Canada to over 140 destinations. to the World Bank. figures from the World Bank. accounting for 56 per cent of all In 2016, the company accounted On average, those sending money Remittances to Rwanda dropped to money remitted. 74 per cent of all transfers to mobile to the region pay nearly 10 per cent US$155.8mn in 2015 from Europe accounts for 30 per cent money accounts coming from money of the value of the transfer, higher US$174.9mn the previous year. while the rest of the world accounted transfer operators, according to GSMA than anywhere else in the world. The National Bank of Rwanda for 14 per cent of all remittances to data. The company announced that The World Bank’s Migration and attributed the drop in remittances to the country. it was setting up an office in Kenya to Remittances Factbook for 2016 the slowdown in the global economy In September 2017, the amount diversify its intra-African remittances. showed that the global average cost and high depreciation of regional sent from North America reached According to WorldRemit, Kenya is of sending was US$ 200, around 7.4 currencies against the dollar. US$100mn with Kenyans in Europe its second largest receiving market per cent. In Kenya, remittances have sending US$55.3mn. after Philippines. About 93 per cent of In sub-Saharan Africa, it averaged become the highest foreign exchange Most of the money is used for transfers to Kenya are received via 9.5 per cent – more than 25 per cent earner overtaking tea, coffee and household consumption, payment of mobile phone accounts, notably M- costlier that other developing nations. tourism. school or college fees, medical bills Pesa, which currently has almost 20 Tanzania has one of the highest With the Central Bank of Kenya and investments. million account holders. costs of sending money to the region. (CBK) capping the interest rates on “Generally, the money sent is used “We have a treasury platform with According to report by the loans from commercial banks, to cater for my aging parents’ health many African currencies and because Financial Sector Deepening Africa lenders have starved firms and bills. I also invest in land, we are connected to most of the (FSDA), the average cost of sending households of the much needed agribusinesses and housing using my major mobile money platforms, it £120 from the UK to Tanzania was credit in recent months. relatives back home,” observed James easier for us to help cross-border 14 per cent of the value. Remittances, especially to Mbogo, a Kenyan living and working transfers in Africa,” noted Ismail On average, this is higher than households, have become a vital in Texas, United States. He has been Ahmed, WorldRemit Chief executive. other East African nations such as engine for the local economy living in the US for the last 14 years. The company has also signed a Kenya and Uganda at 7 and 12 per boosting consumption and A survey conducted by the deal with the National Bank of Kenya cent respectively investments in land, building and at Cooperative Bank of Kenya shows (NBK), which will enable Kenyans Globally, 800 million people are the Nairobi Securities Exchange (NSE). that the majority of diaspora, living abroad to make instant now directly reliant on remittances. I

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NEWS | TECHNOLOGY

Opera launches Opera News app in Africa ECOBANK ANNOUNCES Opera Software has launched Opera News, a CLOSING OF DEBT FACILITY new AI-powered app which enables people to WITH FMO access news articles and popular videos. The news app features a powerful recommendation engine designed to Ecobank Transnational Incorporated has ensure users can keep abreast on the announced it has closed the US$200mn five Image Credit: Adobe Stock Image Credit: things that they love to read and watch. to seven year syndicated debt facility with Opera News delivers a variety of trending the Dutch development bank, FMO. news and entertaining videos and gets This is the second syndicated loan facility for smarter with each use. In addition to the Ecobank Group arranged by FMO in delivering up-to-date content, Opera News recent years. The bank will use the facility to claims to save up to 80 per cent of the user’s provide funding to a number of subsidiaries mobile data allowance, thanks to Opera’s across 36 African countries. Under Ecobank unique data-saving capabilities. Group’s strategic development objectives, at Last year, the company outlined least 75 per cent of the loan facility is plans to invest US$100mn in the expected to be directed to SME’s across African market. As part of further various sectors of the economy. expansion plans the company will FMO arranged the syndication and kept a now implement its “Africa First” stake of US$58.5mn for its own account with More than 100 thousand strategy, enabling it to develop and people have downloaded other DFIs and impact investors providing launch its mobile products first for the Opera News app contributions as follows: DEG – Deutsche African markets. Opera News becomes the first Investitionsund Entwicklungsgesellschaft product to be launched under this new strategy. mbH (US$25.4mn), Proparco (US$25.4mn), “Africa is an incredibly interesting region that will experience an enormous growth over the coming Belgian Investment Company for Developing years,” stated Jorgen Arnesen, global head of marketing and distribution at Opera. “Our new strategy Countries - BIO (US$15 mn), Development means we want to make the very best products for Africans, hence our priority on the region.” Bank of Austria - OeEB (US$15mn), Blue According to Internet World Statistics 2017, there were 388mn Africans online as of June 2017. The Orchard (US$30mn), Symbiotics (US$21.5mn) Internet penetration in African countries is growing fast with more than 14 per cent growth year-on- and Oikocredit (US$10mn). year. More than 100 thousand people have downloaded Opera News and it is currently the most “ETI is pleased to conclude this financing downloaded news app in Africa. “African users are among the world’s most avid mobile news readers,” arrangement with FMO, who have been able said Arnesen. “Users in Nigeria, Kenya, South Africa, Ghana and Tanzania enjoy browsing the web to to bring a significant number of players to read about their favorite hot topics such as sports, celebrities, arts and culture, politics and life-hacks. the financing table. The transaction will With Opera News, we bring a new type of tailored news experience to African users”. greatly enhance our capacity to serve our SME clients, who continue to be a very important market segment for us,” stated NILE X SMARTPHONE UNVEILED IN EGYPT Ade Ayeyemi, Ecobank Group CEO. Jürgen Rigterink, chief executive officer at The Egyptian Silicon Industries Co. (E-SICO), has launched the first mobile phone made in Egypt. The company FMO, also added, “FMO is proud to have announced that its customers can start reserving their 4G smart phone ‘Nile X’ in the latter part of January arranged this successful syndicated loan 2018. At Cairo ICT 2017, The Egyptian company for silicon industries joined forces with SICO Technology agreement for our long-standing partner and Silicon El-Waha, which is owned by the Ministry of Communications and Information Technology. “The Ecobank Group. Through this investment we locally made ‘Nile X’ phone will hit the markets in the second half of the current month,” a recent statement support small and medium-sized enterprises issued by E-SICO revealed. It noted that customers inside and outside Egypt can call telephone number in some of the most underbanked countries 19242 to register their information for purchasing the new phone, which will have a retail market price of in Africa. Although SMEs in these countries US$237. According to the company’s CEO, Mohamed Salem, the company has received thousands of provide the majority of jobs, their access to enquiries about reserving the new phone. finance remains limited.”

BRIEFS

Introducing Telecel Mali Samsung outlines IoT vision at CES 2018

Alpha Telecom Mali has finally confirmed the At CES 2018, held in Mandalay Bay, Las Vegas on 9- launch of Telecel Mali, becoming Mali’s third 12 January, Samsung highlighted its vision and mobile network operator (MNO), Telegeography strategy for IoT experiences. The company revealed recently reported. According to news website that plans were underway to advance IoT adoption via Agence Ecofin, the cellco opened its network to an open, consistent and intelligent platform. “We’re the public in December 2017, at the same it had Adobe Stock Image Credit: committed to accelerating IoT adoption for everyone announced when making a test call over its and making all Samsung connected devices intelligent infrastructure in October that year. by 2020,” said Hyunsuk (HS) Kim, President, head of Image Credit: Adobe Stock Image Credit: Alpa Telecom Mali formally signed on the dotted Samsung’s Consumer Electronics Division and Telecel Mali will be the third mobile CES 2018 took place in Mandalay network operator in Mali. line for its licence back in February 2013. Bay, Las Vegas. Samsung Research.

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DATA CENTRES | TECHNOLOGY

Taking centre stage in digital transformation A new wave of African data centres is bringing with it new opportunities for putting essential business services in the cloud. Liquid Telecom explains how data centres will play a central role in supporting Africa’s digital future.

frica’s digital transformation is Agathering pace. Broadband adoption continues to boom, with nearly a third of Africans now online, according to Internet World

Stats. In many African economies the Telecom Liquid Image Credit: price of broadband services is falling, and networks are continuing to densify and interconnect across borders. Enterprises and consumers alike are benefiting from increasingly robust connectivity, and long standing challenges around data privacy and protection are starting to receive much needed attention. As a generation of African digital The East Africa Data Centre (EADC) in Nairobi is Tier III certified. natives emerges, demand is being created for high quality carrier-neutral data centre capacity. for data servers over four floors, is being firmed up along these lines, the data residing in South Africa. In the continent’s more making it the largest data centre in with Tanzania probably taking the Last year, Liquid Telecom joined progressive economies at least, this the region. “We’ve definitely seen a lead in East Africa.” Microsoft’s Cloud Solution Provider demand is translating into a wave of rise in demand for data centre space (CSP) programme, enabling it to infrastructure development. in various parts of Africa,” said Dan A future in the cloud deliver scalable and secure cloud Demand for services such as Kwach, General Manager of the East The development of world-class data services across Africa. As an official cloud, disaster recovery and storage, Africa Data Centre. “There are a facilities like EADC is welcome news CSP partner, Liquid Telecom will for coupled with a relative shortage of number of reasons for this. For one for those who believe Africa’s digital the first time serve businesses of all supporting infrastructure, will act to there’s been a very strong element of future lies in the cloud. We have sizes in Africa with cloud services increase demand for data centre transition, with a lot of businesses already seen a surge of adoption of and products, such as Microsoft services, stimulating infrastructure going through a period of digital cloud-based ICT services among Azure, Microsoft Dynamics 365, development. change. There’s a move to improve Africa’s enterprise community, and Microsoft Office 365, Enterprise the efficiency of the ICT end user, further builds can only accelerate Mobility Suite and Windows 10. Reaching international and that means an increase in the this trend. Liquid Telecom also operates data standards consumption of IT services of the A hopeful sign is the interest centres in Johannesburg and Cape The best of this new wave of data kind that we offer.” being taken in Africa as a cloud Town. These are home to the fibre centres bear comparison with Numerous pieces of legislation services market by some of the routes of many major carriers, facilities to be found in more are emerging that are further world’s hyper-scale web giants. MNOs, cloud service providers and developed parts of the world, driving data centre demand. “In Microsoft, for example, has financial institutions. matching them for build quality, Kenya, for example, there is a lot of committed to investing in The two facilities, which offer a resilience and security. For example, regulation affecting the financial Africa-based cloud services with combined 4,800 sq m of rack space, the Nairobi-based East Africa Data services sector,” he said. “Banks news last year that it plans to deliver were acquired by Liquid Telecom Centre (EADC), a subsidiary of Liquid need to make sure they have the Microsoft Cloud for the first time earlier in 2017, as part of the Telecom Kenya, is a recent winner of right ICT infrastructure in place to from data centres located in R6.55bn acquisition of South African Tier III Certification and is home to support the critical services they Johannesburg and Cape Town. Initial communications network operator web-scale players such as Google offer. Their choice is either to build availability is anticipated in 2018. Neotel. They are undergoing major and Facebook, both of which hold their own robust infrastructure, or Currently many companies in expansions to meet the needs of their regional caches there. lease services from us. There are Africa rely on cloud services delivered global cloud players. EADC also hosts the Kenya Internet new data protection laws too, often from outside of the continent, so the Such developments point to a Exchange Point (KIXP) and a wealth dictating that certain kinds of data main significance of Microsoft’s future in which African enterprises will of banking and commercial data. It are kept within borders. In many investment is that it will provide no longer have to access cloud services houses 2,000 sq m of secured space countries data protection legislation cloud services across Africa, but with from outside the continent. I

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NEWS | LOGISTICS

New airport opens in Senegal SAA CARGO NAMED Senegal has opened the new US$681mn PARTNER AT DAKAR RALLY International Blaise Diagne Airport (AIBD). The airport, which is co-financed by the African South African Airways Cargo (SAA Cargo) was Development Bank (AfDB) comes in line with the air freight partner of the Toyota Gazoo Racing bank’s commitment to Africa’s air transportation South Africa Team for the 2018 Dakar Rally. development, a strategic component of the The Dakar Rrally, which was billed as one ‘High 5’ agenda to integrate Africa. of the toughest motorsport events in the With a 42,000 sq m passenger terminal and world, took place in Peru, Bolivia, and 12,800 sq m cargo terminal building, the airport Argentina from 6 to 20 January. is expected to handle 50,000 tons of cargo and SAA Cargo transported the racing cars 80,000 aircraft movements annually. from São Paulo, Brazil, to Lima, Peru, for the Additionally, the facility aims to offer a long- start of the race, with the shipment term solution to intra-African economic activity consisting of three vehicles and spares,

and resolve the low levels of aviation Image Credit: Adobe Stock weighing about 7,941 kg. connectivity in West and Central Africa. Approximately three million passengers are expected to It took about 16 hours for the shipment to go through AIBD annually. The airport has already had a significant socio- reach its destination with 11 hours spent on economic impact in Senegal, creating 3,000 local the aircraft. jobs during the construction phase and 427 full-time jobs for the operational phase. In addition, the Tleli Makhetha, SAA Cargo’s general project is set to explore more jobs in engineering, maintenance, information technologies and security manager, said, “Our partnership remains in the next few years. essential to us as the airfreight division of Akinwumi Adesina, president of the AfDB, said, “This airport will improve regional connectivity, the national carrier. We had the opportunity drive down costs of transportation, grow and transform the economy.” to showcase SAA Cargo’s operational According to the International Air Transport Association (IATA), Africa is expected to have an average capability on a world stage. There was about annual passenger increase of five per cent in the next 20 years. two months’ preparation before the vehicles According to Pierre Guislain, vice-president of the AfDB for private sector, infrastructure and were transported to ensure that the vehicles industrialisation, “Africa must be ready to capitalise on this opportunity. The new airport brings us got there without any hassles. Our priority closer to winning the West African aviation connectivity and logistics hub battle.” was the needs of the client as without them The AfDB said that it will continue to support the development of the aviation industry in Africa, we do not have a business. This was achieved which is a major trigger for social and economic progress on the continent. through team effort and hard work.” The bank contributed US$82.48mn in loans and acted as a mandated lead arranger to facilitate an Toyota Gazoo Racing SA Team Principal, additional US$164.97mn in loans. Other major financiers are the Islamic Development Bank, Agence Glyn Hall said, “In motor racing, Française de Développement, the Saudi Fund and the West African Development Bank (BOAD). development of the race vehicle is critical. Development takes time, and our partnership with SAA Cargo means that we IATA PREDICTS LOSSES FOR AFRICAN CARRIERS don’t have to rely on sea freight to send our cars to South America. This gives us a The International Air Transport Association (IATA) forecasts global industry net profit to rise to US$38.4bn significant advantage in our development in 2018 from the US$34.5bn expected net profit in 2017. strategy.” Among the expected highlights in 2018 include a rise in overall revenues to US$824bn and an increase in The 40th edition of the Dakar Rally started passenger numbers to US$4.3bn. In Africa, however, African carriers are expected to continue to make in Lima, Peru, before proceeding tooLa Paz, small losses of US$100mn in 2018 following a collective net loss of US$100mn in 2017. Bolivia, and ended in Cordoba, Argentina, on Stronger forecast economic growth in the region is expected to support demand growth of 8.0 per cent in January 20. The event took place over 15 2018, slightly outpacing the announced capacity expansion of 7.5 per cent. days and 14 racing stages; and the 450 cars, While traffic is growing, the IATA said that passenger load factors for African airlines are just over 70 per trucks, motorcycles, and quads covered a cent which is more than 10 percentage points lower than the industry average. With high fixed costs this low total distance of some 9,500 km of which utilisation makes it very difficult to make a profit. 5,000 were against the clock.

BRIEFS

Global Cargo Line ships load to Guinea Railway to unlock Malawi

Global Cargo Line has handled a bulk cargo project The AfDB has signed a US$300mn agreement for for one of their biggest customers located in the Nacala Corridor project, consisting of a 912km Conakry, Guinea. railway and a port to unlock the western region of The cargo of silos plus parts with a total weight of Mozambique and landlocked Malawi. 470,379kgs and volume of 2,441cbm was loaded in The project is expected to have a catalytic effect in France, according to a report by Project Cargo the region and create economic benefits for the Network. Global Cargo Line also arranged a 40’ open various stakeholders, including governments and top container to hold other parts weighing 23,390kgs the local population. “It will enable a significant Image Credit: Adobe Stock Image Credit:

Image Credit: Adobe Stock Image Credit: which was shipped together on the same vessel. The reduction in transportation costs and increase coal New port and railway to help improve Global Cargo Line shipped parts to Guinea. shipment was reportedly said to be successful. connectivity in Mozambique and Malawi. export volumes," said an AfDB spokesman.

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LOGISTICS | NEWS

Ghana Ports and Harbours Authority enjoys profit jump

The Ghana Ports and Harbours Authority (GPHA) more than doubled its profits in 2017 compared to the previous year, according to the Director-General of the Authority, Paul Asare Ansah. The GPHA made GH₵140mn in net income in 2017, up from GH₵56mn in 2016. The total revenue of GPHA also increased to GH₵1.1bn in 2017. Ansah, who made the announcement at Tema in the Greater Accra Region on 5 January, said the financial results indicated significant improvement in the performance of the authority. He noted that a total of 1,850 vessels docked at the ports in 2017 against 1, 830, which entered in 2016. He added that although the authority failed to achieve its target of 1,900 vessels last year, the size of the vessels that docked at the port had been greater than in 2016, and as a result the authority exceeded its volume target of 20 million mt of cargo. According to Ansah, the authority recorded a total of 21 million mt of cargo at the end of 2017 compared to 19 million mt cargo in 2016. Ansah added there was more business interest because of its ‘significant improved performance’. He also mentioned he was committed to developing an LNG terminal and a cruise and passenger terminal this year. Feasibility studies for the projects have been initiated. GPHA would be developing the cruise and passenger terminal in collaboration with the Ghana Tourism Authority to boost tourism in the country. He said GPHA is positioning itself to accommodate any vessel up to the next 50 years. Image Credit: Adobe Stock Image Credit: The GPHA recorded a total of 21 million mt of cargo at the end of 2017.

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LOGISTICS | REPORT

DHL announced as title sponsor at ecommerce event Steve Burd, vice president of sales for DHL Express Sub-Saharan Africa said the partnership with eCommerce MoneyAfrica will help businesses overcome any logistical challenges.

DHL is working in collaboration with the organisers of DHL and eCommerce MoneyAfrica Confex to ensure the 2018 event is its best year yet. Image Credit: Image Credit: Adobe Stock

HL Express Sub-Saharan Africa expertise and more than 40 years’ hand experience of the positive be hassle free. The world is so well (SSA) has announced that it experience in Africa. impact that e-commerce has on the connected that customers now will be the title sponsor for the PwC recently released a report continent. ‘Brand Africa’ has become have access to any product, D2018 DHL eCommerce MoneyAfrica which shows that mobile increasingly popular across the irrespective of their location. This Conference & Exhibition (Confex). subscriptions in sub-Saharan globe and we’re thrilled to work means that even small businesses can It will be hosted at the new East Africa increased from 174 million with thousands of customers across now compete on a level playing field.” Wing of the Cape Town in 2007 to around 772 million by the continent, helping them expand Burd also pointed to latest data International Convention Center 2016. This amounts to 344 per their brand across borders. The research by Statista, reporting that on 14 and 15 March. cent growth in under ten years, evolution of the DHL eCommerce e-commerce revenue in Africa and Speaking on the partnership more than three times the rate at Money Africa is a wonderful the Middle East amounted to between DHL and eCommerce which mobile phone usage grew platform for DHL to further connect US$16,651mn in 2017, and is MoneyAfrica, Steve Burd, vice in the rest of the world, adding and support the industry.” expected to grow by 11.7 per cent president of sales for DHL Express that “it presented a huge e-commerce in Africa continues per year in both these regions. He Sub-Saharan Africa, said, “Through opportunity for intra-Africa trade”. to unlock major opportunities said, “It’s a truly exciting time for this new partnership, we would like Burd stressed the partnership for growth. e-commerce in Africa.” to help businesses understand between DHL and eCommerce “Historically, international Shannon Mackrill, managing essential logistics considerations, MoneyAfrica showed a similar trade was often overlooked or director at Kinetic Events, organisers but more importantly, advise them outlook in their objectives. ignored by start-ups and SMEs, of eCommerce MoneyAfrica Confex, how to plan for and overcome any “As the market leaders in due to perceived complexities,” he said, “Accelerating e-commerce in logistical challenges. DHL is working international express logistics in said. “But if you have the right Africa is Kinetic’s vision for the in collaboration with Kinetic Events, Africa, we have extensive first- partner, international trade can show in 2018.” I the organisers of DHL eCommerce MoneyAfrica Confex to ensure that this year’s event is the best one yet. As market leaders in international express logistics in Africa we have The event is considered the ‘meeting place for the African e-commerce experience of the positive impact e-commerce has had ” industry’ and we look forward to supporting this very important STEVE BURD, VICE PRESIDENT OF SALES FOR DHL EXPRESS SUB-SAHARAN AFRICA growth market with our global

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COMMERCIAL FEATURE

The government of Algeria installs Himoinsa generator sets in its new water treatment plant

The generator has an uninterrupted running The generator has a running time of 48 hours thanks to a 20,000 litre tank. time of 48 hours, thanks to an external 20,000- litre tank and a redundant transfer system that guarantees the plant's power supply in the event of a mains failure. The wastewater treatment plant in the new city of Ali Mendjeli, in Constantine (Algeria), purifies 4,200 cu m of water per hour. It serves a population of 260,000 and a large proportion of the purified water is reused for agricultural irrigation. To ensure that the plant can run in the event of a mains failure, the Algerian Ministry of the Environment, through SICE, member of the ACS Group, has installed an Himoinsa generator set to provide emergency power. Himoinsa Image Credit: According to Azeddine Yekhlef, regional supplying up to 1660kVA of stand-by power. In does not start up, the second is already full and director of the Algerian Ministry, “It's very addition, it has a large external tank with a ready to transfer fuel to the generator. important to have a specialised and professional 20,000-litre capacity, which gives the generator Javier Vecino, hydraulic infrastructure local service to carry out maintenance and enough running time to work for 48 hours. manager at SICE (ACS Group) repairs on the generator sets. The machines To ensure it works smoothly during this time, “We chose HIMOINSA because of how they work constantly, so we need them to be in a redundant transfer system has been installed compared in technical and economic terms. We perfect condition when they are required.” to transfer fuel from the external tank to the needed a first-class generator, with a The model installed is the HTW-1530 T5, fitted generator. The pumps have been programmed combustion engine, and local service that was with a Mitsubishi engine, and capable of with a start-up delay, so that if the first pump also very much appreciated by the customer.”

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NEWS | POWER

POWERING GROWTH IN TOWNS AND CITIES IN Siemens and Rotan Power sign THE DRC WITH SOLAR ENERGY agreement for Ghana plant

BBOXX has launched large In order to help Ghana meet its pay-as-you-go solar systems industrialisation targets, in towns and cities in the Siemens and Rotan Power have Democratic Republic of signed a memorandum of

Congo (DRC). This has been understanding to develop and Siemens Image Credit: AG enabled through a technical build a 600 MW plant power collaboration with Victron plant at the Aboadze Power Energy, and will deliver Enclave located in the western reliable, clean and affordable region. It will be the country’s Image Credit: Power Africa Power Image Credit: power to businesses. largest power plant. Sabine Dall’Omo signed the agreement with This technical partnership The MoU was signed on 14 Kofi Morna from Rotan Power. forms part of BBOXX’s New pay-as-you-go solar systems will December in the presence of strategy to improve access to deliver reliable power to businesses. Brigitte Zypries, the German Federal Minister of Economics and Energy, the electricity for customers with Ghanaian deputy president, Dr Mahamudu Bawumia. a range of power needs, from small solar home systems of 50W in rural The US$500mn plant will be one of the most efficient and communities, to SMEs in urban areas with higher energy demands of environmentally friendly thermal plants in sub-Saharan Africa. It will be 0.5kW – 5.0kW. built in two phases in 2023 and 2025. The German Export Credit Agency Less than 14 per cent of citizens in the DRC have access to any form of and Euler Hermes are set to provide financing for the project, reliable electricity, which is a barrier to economic development. CEO of Siemens sub-Saharan Africa, Sabine Dall’Omo said “This project Mansoor Hamayun, chief executive officer of BBOXX, said, “We believe underlines the strategic partnership between Germany and Ghana. that this collaboration will help deliver a sustainable solution for Together we will provide electricity to more than five million Ghanaians consumers and businesses alike in towns and cities in the DRC.” unlocking the economic potential by using power as a catalyst for socio- BBOXX, a next generation utility, is already operating in rural areas of economic development.” the DRC to drive electrification. BBOXX aims to provide SMEs, such as Chairman of Rotan Power, Kofi Morna said, “We will power the country stores, restaurants and micro-processors with productive power solutions. and further improve access to electricity for our population.”

NEXT-GENERATION SOLAR LAMPS IMPROVES LIVES IN RURAL AREAS

A new line of solar lanterns have been launched to improve the lives of residents and businesses across Africa. The lanterns from Greenlight Planet – the Sun King Pro 400, Sunking Pro 300, and the Sun King Pico Plus – are more powerful replacements than the company's existing solar lamps, boasting dramatic increases in brightness and phone-charging capacity at a lower cost. Greenlight Planet CEO Patrick Walsh says, “It's been nearly 10 years since we launched the first Sun King product, and people’s needs have dramatically evolved. Rural consumers today expect brighter light, on par with standard home lighting on the electrical grid. They need more power to charge their increasingly battery-hungry smartphones.” But they are even less expensive, said Walsh, thanks to improved efficiency and a streamlined design. Technical improvements include higher-capacity batteries and larger 5.5-watt solar panels. New, higher-efficiency LEDs can be found in all three of the new models. Image Credit: African Media Agency Image Credit:

The lanterns increase phone-charging capacity and are brighter.

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SOLAR | POWER IN MINING

Microgrid to provide solar power solution

arloworld BEquipment has installed a Cat solar microgrid ready to power the Otjikoto gold mine in Namibia in 2018. The 7MWp solar field will help power the gold mine, 300km north of Windhoek, Namibia's capital, on behalf of precious metals

exploration company Caterpillar Image Credit: Cat solar microgrid helping to power the B2Gold. The microgrid will Otjikoto gold mine in Namibia. help offset the cost of running the mine’s existing diesel-powered Cat generators. “A microgrid is any small grid that interconnects sources of electricity and loads. In this case, the source is solar and our load is the Otjikoto mine. When complete, we'll have 256 groups each with 240 photovoltaic (PV) panels covering about 14 ha,” said Francois-Xavier Saury, regional business development manager for Caterpillar. It is estimated the grid will save 3.8 million litres of heavy fuel oil, reducing genset operation by 3,170 hours – a saving of nearly US$2mn per year. “The idea behind installing solar is not to increase power, but to offset the cost associated with fuel consumption and generator maintenance,” said Cobus van Schalkwyk, head of power solutions for Barloworld Equipment. “The system also uses more than 250 x 25kW string inverters. The inverters change power from direct current (DC) to alternating current (AC). Utilising small inverters mean that should one go down for any reason, we are only losing 25kW of power at any one time," said Francois-Xavier. Running the whole system is the Cat Master Microgrid Controller (MMC), an advanced technology suite for multiple energy sources. The system makes cost management, electricity storage and monitoring the entire system seamless for the customer.

Power beyond the mine The Cat PV panels are guaranteed for 25 years. However, it is unsure whether the mine will be active that long. "If B2G's operation stops after 10 years, the PV panels will have at least another 15 years of life,” said Francois-Xavier. “One of the post closure options that B2Gold is investigating is to use the solar field together with the generators to generate power and feed that into the national grid. This will ensure that the legacy of B2Gold remains long after the closure of the mine,” said Cobus van Schalkwyk. “And, I think it's also important to note that when B2Gold first began constructing the mine, they already had a couple of spare electrical incomers in their main switchgear labelled 'PV field'. So, they were somewhat visionary,” added Francois-Xavier. “They knew that at some point in the future, solar would be a game-changer. And, that time is now.” I

For more information visit www.cat.com/microgrid

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POWER IN MINING | ENGINES

The power of the mine Despite advances in renewables, mini grids and hybrid solutions, it is still large traditional genset technology that is being trusted to power Africa’s big mines. Image Credit: Kinross Gold Kinross Image Credit:

The new power plant will produce an average of 812,000 Au oz per year at the Tasiast mine in Mauritania

auritania’s Tasiast mine, an year, will lift capacity to 12,000 t/d. Initial construction on phase in West Africa this year and is Mopen-pit operation about This will significantly reduce two is expected to begin in early expected to supply the electricity 300km north of the capital operating costs and increase 2018 with commercial production needed to run the mine at the Nouakchott, is set for a huge production for operator, Tasiast set for 2020. expanded 30,000 t/d capacity. upgrade – not just in terms of gold Mauritanie Ltd, a subsidiary of Wärtsilä announced at the end of She said, “Wärtsilä has worked production, but also electricity Canada’s Kinross Gold Corporation. December that it would be with Kinross earlier, and there is no supply too. The new power plant will help delivering the 60 MW turnkey power better endorsement of customer Wärtsilä is to lead a massive drive a second phased expansion to plant to provide electricity for the satisfaction than to win a repeat injection of new power to the site, increase mill capacity to 30,000 t/d, new, phase two expansion. order. This engineering, supplying six new 32TS engines that and produce an average of Marie-Andrée Truchi, senior procurement and construction will bolster energy supply by a approximately 812,000 Au oz. per business development manager, project indicates the broad scope of whopping 60 megawatts (MW). year – it will transform Tasiast into a Africa West, Wärtsilä Energy Wärtsilä’s capabilities.” The Finnish technology and large, world-class mine with even Solutions, said that the 60 MW plant engineering giant was responsible lower overall costs. will be the biggest project of its type High potential for the mine’s existing power plant, Indeed, it seems West Africa, in generating around 19 MW. particular, is the place to be for Located in northwestern This engineering and construction project genset manufacturers tracking Mauritania, the mine already major business opportunities, both processes ore via an 8,000 tonne per indicates Wärtsilä’s capabilities ” in the mining sector and beyond. day mill and dump leach. While the Tasiast project may be A phase one expansion project, ALOK JOSHI, CUMMINS POWER GENERATION, DIRECTOR, the largest of its kind right now, which is set to reach full commercial AFRICA AND MIDDLE EAST there are plenty of reasons for other production around the middle of this providers to get excited too.

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ENGINES | POWER IN MINING

Alok Joshi, Cummins Power Marie-Andrée Truchi, from Wärtsilä Generation, director, Africa Energy Solutions said the 60 MW plant and Middle East, believes the will be the biggest in West Africa. genset market in Africa is growing due to the unreliability of the region’s power grids – although prevailing economic and political conditions continue to hamper growth in major markets. He said, “The biggest growth area at the moment is in West Africa, where the focus is on markets such as Côte d’Ivoire and Senegal.” While the mining sector is certainly not immune to the ups and downs of the global economy, and especially world commodity prices, it remains a steadfast part of Africa’s resurgence. That goes from traditional mining economies such as South Africa, Botswana and Zambia, through to emerging producers like Mauritania and the high potential of Nigeria’s embryonic mining sector. Gold Kinross Image Credit: And, given the operational risks the SMB-Winning consortium for Guinea as the world’s top three 20-cylinder Wärtsilä 32TS that still plague the major mining the construction of an alumina bauxite exporter. engines running on heavy fuel oil, to companies – shortages of or refinery and a railway line to be Guinea has already generated be connected to an existing power difficulties in sourcing fuel, built by 2022, which could involve a good work for Wärtsilä, which last plant at site – also supplied by Wärtsilä electricity and other infrastructure strong energy component. year announced a separate – with full operation expected during deficits – paying a premium for on The proposals would open up a contract to supply a power plant the second half of this year. site reliable genset power seems a railway line to the Boffa corridor to extension to AngloGold Ashanti’s It will elevate total power output small price to pay. carry bauxite to the refinery and the gold mine in Siguiri. at the mine site to around 30.4 MW, This, of course, is especially true Dapilon river port and confirm This turnkey project consists of taking Wärtsilä’s total installed in frontier mining areas in West capacity on the African continent to Africa, rather than more developed close to 7,000 MW. areas to the south, where a strong The biggest growth area is in West Africa ” Amid all the excitement over grid-based electricity supply may be renewables and other energy an option. ALOK JOSHI, CUMMINS POWER GENERATION, DIRECTOR, alternatives across Africa, within Among the largest projects on the AFRICA AND MIDDLE EAST the mining industry, at least, drawing board is a potential gensets continue to be the US$3bn investment in Guinea by solution of choice. I

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POWER IN MINING | RENEWABLES

Renewables offer mining sector a ray of sunshine For the mining industry, diesel gensets have been the mainstay alternative for years. However, mine owners/operators are looking more and more at renewables to meet their needs, Tim Guest reports.

The world’s biggest solar-battery-diesel hybrid system for DeGrussa Sandfire copper-gold mine in Western Australia. Image Credit: Juwi. Image Credit:

or an industry with a wide implemented a flagship solar-energy American is also exploring the use including Namibia and Botswana. range of power requirements, project in 2016 at the base of the of solar and wind power Cronimet are leaders in this field including several that can be High Atlas Mountains. This is one of combinations, as these become and have been active in Africa for classedF as critical, the mining sector the biggest solar plants in the world, cheaper. And while many in the many years providing support of must be able to rely on its electricity though even larger projects are now mining sector still have problems public-private partnerships to supply, whether grid or generator- operational in South Africa. Africa’s calculating the true costs of advance the use of large-scale based, without the fear that the mining sector has also been able to introducing a renewable project on photovoltaic (PV) and PV/diesel supply might be interrupted at any watch as major renewable their sites, from capital costs to hybrid power plants in over 20 time soon. In the case of grid- installations/projects at mines in ongoing operational costs, African countries. supplied mines, the uncertainty in other sunny parts of the world are including storage using As if to underline the sentiments countries such as Nigeria, Tanzania meeting the needs for totally off- batteries, these barriers are above, in Namibia, a Caterpillar and South Africa of a steady and grid mines. One such solar gradually being overcome. solar microgrid has actually just reliable supply is well documented. deployment is in Australia, where On the subject of storage in been installed to provide power to Eskom in SA, for example, is Juwi commissioned the world's renewable and hybrid solutions, this the Otjikoto gold mine, starting in infamous for its rolling power cuts biggest solar-battery-diesel hybrid has made great strides with costs for 2018. The 7MWp solar field will help or load shedding, which affects all system for the DeGrussa Sandfire lithium batteries now coming down. power the gold mine, 300km north corners of the nation including its copper-gold mine in Western That said, storage systems must be of Windhoek, Namibia's capital, on mining sector. Certainly, diesel Australia; a remote mine off the handled carefully and strict behalf of precious metals generators have played a major role country’s electricity grid. Solar guidelines must be followed exploration company B2Gold. The in supplying uninterrupted needs of panels that cover an area roughly otherwise warranties can become microgrid will help offset the cost of most mines in SA and elsewhere in the size of 40 football pitches are void if a maintenance regime has running the mine’s existing Africa, with typically only partial now saving some 20 per cent on its not been followed to the letter. diesel-powered Cat generators (see reliance on grid supplies, if at all. former diesel consumption bill. Batteries can also hike up the costs full case study on pg 31). However, as Africa enjoys more It makes sense, therefore, for of a renewable project so the maths The growing use of renewables in than its fair share of sunshine Africa’s mining sector to consider has to be done carefully to ensure Africa’s mining sector is one making the use of solar energy is a renewables; indeed, Anglo such projects make financial sense following a global trend in regions real alternative to grid supplies in American Platinum has been for mine operators. where the climate is right; and as many regions and can certainly help looking into this in SA for a few One leading power solution the technology improves so too will the mining sector meet its needs. years now, as the Eskom issues provider, Cronimet Mining Power the viability of the renewable Africa’s solar energy sector has have persisted. It sees renewables Solutions, echoes the sentiments business model improve, making actually set a fine example of how as an answer to both mines that that renewables are a way of the use of solar, wind and hybrid effective this alternative energy receive erratic grid supplies, as alleviating problems of supply not energy solutions much more source can be in Africa; the well as isolated sites that rely only in SA, but also in several other attractive to owners/operators in Moroccan Agency for Solar Energy solely on diesel gensets. Anglo countries in southern Africa Africa’s mining sector. I

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COMMERCIAL FEATURE

Next-generation Komatsu 150-tonne truck enters market

Next generation Komatsu 150-tonne truck (HD1500-8) boosts operator comfort and safety. Image Credit: The Panafrican Group Image Credit:

he Panafrican Group was designed electronically controlled Testablished in 1997 and now transmission, Komatsu Traction operates in eight countries Control System (KTCS) across Africa. They are recognized leaders in providing Komatsu, Operator comfort and safety: Wirtgen Group and AGCO equipment Ergonomically designed cab, and aftersales support solutions to electronic hoist control, air the mining and mineral processing, suspension seat with heater and civil and infrastructure, power and ventilation, tilt-away steering energy and agriculture and forestry column, Built-in ROPS (ISO 3471) / sectors. FOPS (ISO 3449) Cab, secondary The Panafrican Group steering and brake commenced its involvement in the Information and communication large mining sector in 1998 when, technology: Machine monitor with working in conjunction with high-resolution 7-inch colour LCD Komatsu direct sales, they began to Interior view of the next generation Komatsu 150-tonne truck. unit, KomVision, all round monitor support Komatsu mining and system with camera and radar and ancillary equipment in East Africa. road condition analysis system From parts supply and technical support and a very strong team of excited to announce that the next Reliability: High-rigidity frame, service to full maintenance and experienced mining professional, generation of Komatsu 150-tonne robust dump body design, loading repair contracts, the Panafrican the Panafrican Group was truck (HD1500-8) is now available. policy, and payload meter Group has developed a strong encouraged to expand into West Maintenance: Service centre, reputation for quality solutions and Africa in 2010. In the last five years, Major features engine, transmission, brake oil and after sale support. Among the the Panafrican Group has delivered Ecology and economy: High coolant and auto greasing system equipment supported, were the more than 70 Komatsu 100-tonne performance Komatsu SDA16v159-3 with refill port. Komatsu 100-tonne class (HD785) rigid off-highway trucks in Ghana engine, US EPA Tier 2 emission The conclusion is lower total cost and the 150-tonne class (HD1500) and Nigeria. The Komatsu HD785-7 regulation equivalent of operation (TCO)/ higher rigid off-highway trucks. With a has proven to be second to none. Performance: Automatic Retard productivity equals lower quality Komatsu product, dedicated Panafrican is very pleased and Speed control (ARSC) Komatsu production cost ($/tonne). I

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COMMERCIAL FEATURE

Expanding cable operations in Africa

Middle East Specialized Cables (MESC) company is planning to expand its business across the continent.

MESC has been supplying different cables for the West Nile Development project. Image Credit: Image Credit: MESC

iddle East Specialized Cables petrochemicals and industrial use.” assisting with the drilling of Other projects include West M(MESC) is considered number The West Nile Delta (WND) production wells, installing Mediterranean Deepwater one in Saudi Arabia and the development, which is due for platforms, a water injection Concession, which was started in MENA region – ranking number five completion in December 2020, is system and interfield pipelines. July 2015 and will be completed in worldwide in the cable industry. one of the company’s important He added, “MESC is supplying March 2022 and the third project Now MESC is trying to expand in projects to date. It is providing different types of cables for the is Taurus and Libra Field Phase 2, other geographical areas like industrial, instrumentation, system West Nile Development project, which will be completed in Central and Western Africa as well and power cables for phase one of especially those which are fire June 2018. as South Africa and Egypt. the North Alexandria Concession, resistant cables for use in the oil “We want to expand our A company spokesman said, “Our which is expected to produce gas and petrochemical industry. operations gradually across the main strength is in instrumentation at a rate of up to 28.3 million “The projects are handled world and want to focus on Africa cables especially for oil and gas, cu/m per day. MESC will also be centrally here by the projects first of all before expanding into team and we are appointing other regions worldwide. It is an some partners and local exciting time for the company,” the Our main strength is in instrumentation distributors for us in Egypt and spokesman added. Algeria. We are also going to try MESC Company was established cables for oil and gas and petrochemicals ” to expand in North Africa as well in the 1993 as a private company as Central Africa, which we will before it became a public MESC SPOKESMAN do indirectly through business company and joined the Saudi partners and channels.” stock market in 2007. I

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POWER | SOLUTIONS

New diesel injector technology advances MASSIVE MOTORS INSTALLED As regulations on carbon emissions around the globe lead OEMs to improve the environmental performance of their products, diesel injector technologies are advancing apace, and Marthinusen & Coutts, a division of ACTOM, has Germiston-based Reef Fuel Injection Services (RFI) is making an impact in the market. executed the sub-assembly of six gearless mill With the installation of its second Hartridge test bench, RFI has boosted its capability and can now drives for Minera Panamá’s remotely situated calibrate the new generation smart Delphi diesel injectors. Cobre Panamá mine project in record time – it “We align ourselves closely with the OEMs in each of our diesel injector lines, so that we can offer took 28 days to build each motor. a remanufacturing process that is officially certified and gives the customer the peace of mind that Minera Panamá, the Panamanian subsidiary of their remanufactured unit will last as long as a new one,” said RFI director Andrew Yorke. First Quantum Minerals, is developing the Cobre What comes out of the OEM-approved repair process is an injector with the same quality and Panamá project, located in Colón province. The specifications as a new injector from that OEM, added Yorke. Other diesel fuel injection systems for mine life has been estimated at more than 30 which RFI is an authorised service agent include Bosch, Denso and Stanadyne. All RFI’s repairs are years and will produce around 300,000 t/y backed by an OEM warranty, and the company also handles warranty claims on behalf of the OEM copper, 100,000 oz/y gold and 2,500 t/y dealers. RFI is acknowledged as the market leader for the repair of CAT fuel injection systems. molybdenum. “The new Hartridge bench is part of our ongoing new investment to keep up with world class Projects previously completed by the division technology, will double our capacity to repair, remanufacture, test and calibrate Delphi diesel include the installation of six Siemens gearless injectors,” said Yorke. “It will also allow us to serve the growing market in Delphi systems, as this mill drives at various mines in north west Zambia. brand expands beyond its traditional application in light motor vehicles to larger truck engine Of the six ABB gearless mill drives being applications For RFI, it is part of our mission to stay ahead of the game across fuel injection systems installed at Cobre Panamá, four will power ball in the market as the vehicle population in South Africa is fairly small by European standards.” mills and the other two will drive SAG mills. Importantly, these massive machines are among the largest ever installed in the world, and were transported in quartered sections to site for assembly in-situ. The size of the machines, with an inside diameter of 14 metres, presented challenges of its own with each segment weighing approximately 80 tons. Work was done on four different positions on the machines simultaneously at different times. Marthinusen & Coutts has a proven track record partnering with customers on similar complex projects, while still being able to offer a cost competitive solution. This leading repairer of rotating machinery has an established reputation as an expert in gearless mill drive RFI can now calibrate the new generation smart Delphi diesel injectors. refurbishment, winding termination and testing of

Image Credit: Reef Fuel Injection Services. Fuel Reef Image Credit: motor segments.

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NEWS | CONSTRUCTION

AfDB approves US$107mn Burkina Faso NEW PHARMACEUTICAL and Niger road development PLANT IN NAIROBI

Square Pharmaceuticals Kenya EPZ Ltd, a subsidiary of Square Pharmaceuticals Ltd (SPL), has started the construction of its manufacturing plant in Nairobi. The plant, which will be in operation in 2020, will have the capacity to manufacture two billion tablets and 60 million bottles of liquid formulations, according to a report by Bangladeshi newspaper, Daily Star. It was be the first time SPL has set up a plant The AfDB will invest US$107mn into the construction abroad of its headquarters in Bangladesh. of a road between Burkina Faso and Niger.

Image Credit: Adobe Stock Image Credit: Adan Mohamed, Kenya's cabinet secretary for the ministry of industry, trade and The African Development Bank (AfDB) has granted around US$107mn to finance the construction cooperatives; Maj Gen Abul Kalam of a 218km road between Burkina Faso and Niger. Mohammad Humayun Kabir, high The US$225mn project includes 50km of new road and the rehabilitation of 168km of commissioner of Bangladesh to Kenya, and Koupala-Gonin-Fada N'Gourma-Piégea-axis. Tapan Chowdhury, managing director of The European Union and Japan have a share of up to 38 per cent in the project, with Burkina Square Pharmaceuticals, attended a special Faso contributing 14 per cent. ceremony to mark the plant’s construction. Janvier Litsé, director general in the AfDB for the West Africa region, said, “This project will SPL started exporting to Kenya in 2005 strengthen the competitiveness of the economies of Burkina Faso and Niger, two coastal and has since registered 117 products with countries whose imports pass through the ports of Tema and Takoradi, Ghana, Abidjan, Côte the Pharmacy and Poison Board, Kenya's d'Ivoire, Lome in Togo and Cotonou in Benin.” drug regulatory agency, the company said in Janvier Litsé pointed out that Burkina Faso and Niger are two member countries of the G-5 a statement, according to the newspaper. Sahel, which groups together five states of the sub-region, including Mali, Mauritania and Chad. Kenyan manufacturers can only supply “In addition to the challenge of regional integration, this project will strengthen the resilience 30 per cent of the country's demand for of the economies of Burkina Faso and Niger, two countries that deserve to be fully supported in a medication. The rest has to be met by context marked by the terrorist threat,” he added. imported goods. The project is in line with Burkina Faso's 2011-2025 transport sector development strategy and With world-class manufacturing is part of the community action programme for infrastructure and road transport of the West technology and state-of-the-art machinery, African Economic and Monetary Union Commission. Square Pharmaceuticals Kenya EPZ aims to start meeting the medicine demands in NEW AIRPORT TO BE BUILT IN MALAWI Kenya, Tanzania, Rwanda, Burundi, Uganda and South Sudan. Malawi President Arthur Peter Mutharika has announced that Mzuzu International Airport will All products will be pre-tested by the start construction by the end of January, according to the Malawi News Agency. World Health Organization before being The airport will boost the growth and development of trade and business opportunities. supplied to Africa. In July 2017, Mutharika visited Lusangazi where the airport will be constructed. SPL has been in operation for 60 years, The Exim Bank of China reportedly has granted a loan of US$20mn for the construction. exporting products to 42 countries He added that the government was planning development programmes in the northern region including Asia, Africa, Europe and of the country, one of them including Nkhata Bay-Mzuzu road, which will soon be completed. America, the statement added. He expressed his wish to visit the road construction site, saying, “From there, I will announce Square Pharmaceuticals Limited, has another good news for the people of the North.” been leading the pharmaceutical industry The Malawi government is also planning to renovate Mzuzu University Library. of Bangladesh since 1985.

BRIEFS Energy plant to be set Dangote to build cement up in Zambia factory in Liberia US firm, RD Global and Japanese company, Mera Dangote Cement is opening a factory in Liberia, Group Corporation, plan to set up a manufacturing according to reports. plant of energy renewable products in Zambia to US$41mn is expected to be invested by Dangote mitigate the energy deficit in the region. Cement over the next ten years, reported Asoko Business Development Advisor Rune Gunnar Dige Insight. The company will also maintain the roads says a team from Merea Group Corporatio, from leading to its terminals, January 28, 2018, will be visiting Zambia to meet Dangote Cement Liberia Limited’s agreement with with relevant stakeholders to discuss entering the Liberia’s senate will be reviewed after five years. Image Credit: Dangote Industries Dangote Image Credit: Image Credit: Image Credit: Adobe Stock market mid-2018. Zambia was chosen because of Dangote cement produces about 40 million tonnes An energy renewable plant is planned to its geographical position in southern Africa. A new US$41mn cement factory will be of cement per annum. be set up in Zambia. opening in Liberia.

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CONSTRUCTION | MINING

Kanu Equipment works closely with Liebherr, a major partner in earthmoving. Image Credit: Liebherr Image Credit:

Supporting Africa’s mining industry

Stephen Smithyman, chief executive of Kanu Equipment, tells African Review why he is upbeat about Africa’s mining prospects going forward.

anu Equipment is a specialist For the year ending June 2018, our organisation.” Major markets Kin the supply and support of turnover is anticipated to be around It is also ingrained among the The company is now well world-class earthmoving, US$80mn. But, in essence, company’s increasing staff count established across large swathes of mining, construction and Smithyman says the blueprint for (now 570 people), from the the continent. In the agricultural agricultural equipment. It is one of success has been pretty simple: management teams right down to industry, it is a dominant player. the largest dealers for names, such supporting customers every step of each and every individual. Through representing Bell and Case, as Liebherr and Bell Equipment, the way. Of course, while people are it has a dominant market share in operating across markets in east, “We believe that by providing at the core of any organisation’s the sugar cane sector. west and southern Africa. strong support we can reduce our success, Kanu has the added “Our partnership with Bell and Founded five years ago by chief customers’ cost of doing business, advantage of working with leading Case Agriculture is obviously very executive Stephen Smithyman, the ensuring that their machines are edge industry names. Smithyman important to usa we’ve got a lot of group has doubled in turnover every more productive, that they have says the company was founded clients in the agriculture industry in year since. Given the commodity longer uptime – this enhances our on integrity and only distributes west and east Africa,” said price slumps and global financial customers’ productivity and allows quality brands with necessary OEM Smithyman. “We’ve got a lot of uncertainty during that time it is them to get a better advantage for support to respond swiftly to customers that are large players something of an achievement. cost per tonne mined or cost per customer needs. Other brands under in developing agriculture in Africa tonne moved. That’s really the the Kanu umbrella include Case, and we are experts in supporting philosophy that’s embedded within Wirtgen and Terex. those customers. Bell and Case was founded producing cutting edge equipment ro support the We believe that by providing strong agriculture industry and they’ve got some compelling products support we can reduce our customers’ that we represent.” On the mining side, Kanu works cost of doing business ” closely with Liebherr and Bell Equipment, and in other markets STEPHEN SMITHYMAN, CHIEF EXECUTIVE OF KANU EQUIPMENT with Wirtgen on the road building side, and Case in agriculture.

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MINING | CONSTRUCTION Image Credit: Liebherr Image Credit:

Kanu Equipment is the largest independent Liebherr mining dealer in Africa. Image Credit: Liebherr Image Credit:

Mining has likewise played a strong role in market for mining business, while Kenya holds Kanu’s growth story: “We’re the largest untapped potential as it seeks to develop its independent Liebherr mining dealer in Africa. own industry further. It’s a cutting edge product, so we’ve got some large customers in places, such as Botswana Confidence high and Namibia, where we are very proud to While the steady rise in turnover through the represent them.” years highlights Kanu’s successful strategy, Away from southern Africa, the company there is every reason to believe that more maintains a heavy footprint in west Africa, in good things lay ahead for this enterprising Ghana, Liberia and Sierra Leone, as well as dealership. Kanu has upgraded and grown – in supporting essential players in east Africa, size, stature and reputation – since its notably Tanzania on the mining side. formation, even during tougher economic times, highlighting a steely resilience and no Mining potential doubt some clever leadership. Significantly, Smithyman sees room for further “We are very positive about the prospects growth in the coming years, both within these for the business over the next three or four core markets and potentially others too. years,” added Smithyman. “We’ve grown our “We’ve got a business in Zimbabwe and we business at the worst time, I believe, so now believe that with the new change in we’ve got a good management team in place government this will be very good for foreign to do really well and enjoy some positive investment – so I think there will be some developments on the mining side. Agriculture interesting opportunities there.” is more stable but we believe the growth and Kanu is also presently exploring the potential demographics of the countries where we of the Democratic Republic of Congo. It has its operate will enable us to grow even further sights on other new markets as well, including over the next few years.” Uganda, plus the islands of the Indian Ocean: And a shift in Africa’s political landscape Madagascar, Mauritius and Reunion. could further bode well for the continent. “Our biggest mining platform is in Botswana, Smithyman cites the recent transition of power with Debswana Diamond Company. They’ve got in Zimbabwe and indeed the number of some very large projects coming up – maybe democratic elections in Africa over the last two or three diamond areas, and we’re very couple of years – the likes of Ghana, Liberia, excited about that.” and for the most part Kenya – that have Smithyman also cites new gold prospects in passed by peacefully. Namibia, plus copper and uranium projects, It is something that will not have been lost that the company is now looking at. “We on foreign investors, keen to unlock Africa’s believe that it will be a very strong country for undisputed potential, but perhaps thwarted at us going forward.” times by the complex politics. In western Africa, gold will continue to push “That, for me, is a fundamental change,” developments in Sierra Leone, Côte d’Ivoire said Smithyman, “and that can only be good and Liberia, where there is also some iron ore for business.” I mining that is starting to move forward. Likewise, Tanzania represents a significant www.kanuequipment.com

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CONSTRUCTION | HOUSING

Kalumbila town in Zambia comes to life Nawa Mutumweno examines how mining company First Quantum Minerals FQM) has contributed to the development of Kalumbila town, in the province dubbed the “New Copperbelt”.

he construction industry in Zambia has been a star performer, with an average Tannual growth rate of 17.5 per cent over the last decade. Activity in the sector has been boosted by infrastructural projects being initiated by government which encompass significant investments in education, transport, energy, health, housing, communication and energy. In recent years, the private sector has jumped on the bandwagon, with impressive investments channelled to mining and real estate, mainly houses, shopping malls, and office parks. Image Credit: Kalumbila Town Development Corporation According to the Zambia The Kalumbila Town Development Corporation is dubbed the “New Copperbelt”. Development Agency (ZDA), a total of US$3.4bn in FDI was registered in the the government-owned National 140km from Solwezi the provincial having moved in and a large country in 2016, a year on year Housing Authority (NHA) and the capital. It borders Sentinel, one of the international corporate locating their increase of 0.7 per cent. Real estate private firm, Meanwood Property new and biggest mines Zambia, Zambian headquarters there, recorded nine per cent of the total Development Corporation Limited, operated by Kalumbila Minerals generating over 250 jobs. And finally, pledged investment, a few ‘steps’ among others. However, one project Limited, a subsidiary of the global the main CBD consisting of shops, behind the energy, manufacturing and worth of note and which tops all is the mining giant First Quantum Minerals. markets and offices, will drive the agricultural sectors. Kalumbila Town Development KTDC appointed Ghel Architects, expected strong growth of the town. The real estate sector, especially Corporation (KTDC) in North-Western Zulu Barrows (engineering) and Knight “Already, a 54-room apartment housing and commercial property, Province. Today, it is dubbed the ‘New Frank Zambia (town development hotel called the Impala Suites, a show great promise and have Copperbelt’ due to mining feasibility study) to design and plan 1,000 sq m supermarket, operated attracted substantial investments infrastructural projects under the the town. by Choppies chain and also housing both from local and international auspices of First Quantum Minerals The town has been designed as a First National Bank (FNB) branch, financiers and developers. (FQM), the owners of Kansanshi and large mixed-use scheme covering ATMs from three banks, a Total Opportunities abound in the Barrick who run Lumwana mine. housing, retail, office, hospitality, filling station, a 1,000 sq m mixed- housing sub-sector, where the As part of the development of the quality reticulated water and use building whose commercial shortage of housing units in the Sentinel mine at Kalumbila, First sewerage delivered through a PPP tenants include Standard Chartered country stands at two million. Quantum Minerals Limited (FQM) with North-Western Water and with Bank, E-Zone, a Post Office, etc, and Therefore, there is an urgent need to needed to provide or enable the electricity handled by North-Western a market square have opened, raise the existing stock of affordable provision of housing for 4,600 workers Energy Corporation on a metered among others,’’ town coordinator and quality housing through private and various contractors and suppliers. basis. Social infrastructure covers Michael Kabungo, said. and public investment. Presently, there is limited housing, high quality schools, health care The KIP has sprung to life with a The government is vigorously social and civil services for the facilities, street lighting, inter-city US$40mn investment by Me Long Teng promoting the construction of housing development of the mineral resource. bus stops and fire stations. Zambia Limited, a joint venture development projects to close the gap. With the expected mining life of The drivers of the town are between Elecmetal of Chile and Long Today, civil servants (teachers, nurses, Sentinel exceeding 15 years, FQM threefold: first, it is the new $2 billion Teng of China. This is the second mill doctors, policemen, soldiers, etc) are through its wholly-owned subsidiary, Sentinel Mine developed by FQM, ball factory set up in Zambia after being offered good quality (KTDC) initiated the development of a whose employment complement is Scaw Zambia Limited and is expected accommodation. town that has tentatively been named expected to increase as the mine to be commissioned in the second ‘Kalumbila Town’. reaches full production capacity. quarter of 2018, employing more than Kalumbila town development The town is located in the North Secondly, the 100 ha Kalumbila 150 full time employees. A number of There are many housing projects on Western Province of Zambia in the Industrial Park (KIP) has received warehouses and factories will set up in the cards by various entities such as newly created Kalumbila District about strong interest with the first tenant the KIP this year.

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HOUSING | CONSTRUCTION

Kalumbila Town is expected to of life based on consumption of goods, said at the time. park,’’ he elaborated. grow rapidly over the medium-term access to healthcare and educational To date, the town has been FQM has a very strong interest (five to ten years) with Knight Frank services,’’ Kabungo highlighted. seeded by FQM with infrastructure in developing the best quality of estimating that its population will Other key elements that will to cover up to 2,400 plots, 1, 200 town possible. This will enable reach over 50,000 over the period. It ensure the growth and continued housing units, schools, a clinic, workers to live closer to their is envisaged that during this period, development of Kalumbla include: retail, office and leisure families in a quality urban set-up, KTDC will have developed or support from local stakeholders, amenities. However, external generating greater productivity, facilitated the development of including regional chiefs, capital and developers will be retention and overall quality of 310,000 sq m of property, covering municipality and other required to help with the life. It will also attract investors 4,150 homes and up to 64,000 sq m governmental stakeholders; and the continued growth of the town. and residents from other parts of of commercial space. provision of a Multi-Facility Additional commercial, social, Zambia to build a strong, The development has created a lot Economic Zone (MFEZ) by central civil and communal infrastructure diverse community in North- of great opportunities for investors, government which will allow new and facilities including shops, Western Province. real estate developers, entrepreneurs, businesses the opportunity to hotels, offices, churches, schools Developments like Kalumbila wholesalers and retail businesses as launch at Kalumbila with significant will also be needed to develop Town should be encouraged well as service providers both small tax incentives. and ensure its long-term viability. throughout the vast frontiers of and large with many more expected In the 2017 National Budget, KTDC has spent about US$80 the country. Investors should be to make ‘inroads’ into this growing finance minister, Felix Mutati, mn in the last five years on prodded to plough back into the town in the coming years. announced that the government constructing 1,200 housing units community, make the areas they “The long-term potential for will facilitate the development of with a view to reduce the deficit operate in better, sustainable, and Kalumbila to grow into a regional hub the Kalumbila Multi-Facility in the area. contribute to the country’s social is huge due to its proximity to both the Economic Zone. “We have constructed over and economic development. It is Democratic Republic of Congo (DRC) “The private sector will invest 1,200 houses but we have also not only a matter of Corporate and Angola, the availability of US$100 mn in the Kalumbila done some commercial Social Responsibility but good employment opportunities and quality Multi-Facility Economic Zone,’’ he infrastructure and an industrial business practice. I

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SOLUTIONS | CONSTRUCTION

MANITOWOC CRANES ON SHOW AT RÉUNION ISLAND DEALER OPEN DAY

Manitowoc’s dealer for Grove and international contractors included Potain cranes in Réunion Island, Grues Bouygues and Vinci, which are using a Levages Investissements (GLI), jointly-owned fleet of 16 Manitowoc, showcased some of the best new lifting Grove and Potain cranes to build a technology and equipment at an open 1.7bn coastal road around the island. Image Credit: Manitowoc Image Credit: event at its premises in Le Port. In addition to Réunion Island, GLI is On display were the Grove the Potain dealer for Mayotte, GMK4100L-1 all-terrain crane and the Mauritius and Madagascar. It is also Potain Hup 40-30 self-erecting crane. the Grove dealer for Mayotte and The GMK4100L-1 has a 100t maximum Mauritius. capacity and 60m boom, with the best Stéphane Giraudo, sales director for load charts in its class, yet a narrow tower cranes for Manitowoc in France, width of just 2.55m. The Hup 40-30 said: “GLI has a great ability to serve a has a 4t maximum capacity and 40m wide range of customers, from the A Grove GMK4100L-1 all-terrain crane and Potain Hup 40-30 self-erecting crane jib, and offers class-leading versatility was displayed at Le Port. small family-owned operation up to with 16 possible configurations. the largest, leading international Around 300 guests, including local construction companies, were companies. It is certainly a dominant force in the region and Manitowoc is welcomed over the course of the three-day event. Representatives from proud to have the company as a partner.”

ROXTEC CABLES TESTED ON Block making technology showcased EGYPT’S WEST NILE DELTA GAS FIELD South Africa’s Hydraform showcased its alternative block making technology to delegates from across Africa at its training academy in Boksburg. Cable seal manufacturer Roxtec has outlined The Hydraform interlocking block is a walling material made of just three inputs: namely soil its role on the BP West Nile Delta project, that can be sourced on site, a small amount of cement (about 10 per cent) and water. This opens one of Egypt’s flagship gas field developments. doors for construction firms right across the continent, even in the poorest or most remote areas. Roxtec UK managing director Clive Sharp The manufacturer also produces a variety of paving bricks, hollow blocks, stock bricks and other said the firm had supplied a range of conventional products. specialist transits to secure cable entries, But it is the cost-effective building solutions through Hydraform block technology that hold such building wall penetrations and onshore appeal across Africa. facilities across the site. “The Hydraform interlocking block technology course places particular emphasis on soil-cement He said, “Roxtec is supplying a range of technology and all the major components for successful block making,” said Ryno Saayman, products for this major development which marketing coordinator at Hydraform. “The comprehensive course handles all the aspects of the has been designed to help Egypt meet Hydraform system – all the way from machine setup through to construction.” growth in local energy demand. This includes Some 26 participants (a mix of engineers, architects and construction entrepreneurs) from 10 galvanised bolted ex frames along with African countries were impressed by the block making technology and its potential to ease housing multi-cable and pipe transits. These were bottlenecks in their respective countries. designed for the gas industry in line with One participant, Jean-Paul Aganze, a building engineer from the Democratic Republic of Congo certification requirements to reduce the risk (DRC) is looking to set up a block making business in the capital, Kinshasa. Aganze said the block of fire, blast, and other operational hazards.” making technology therefore offers a cost-effective alternative building solution. “This is a big However, a core focus for this project opportunity for me to start my own business — but this also offers many African governments an centres on electro-magnetic pulse (EMP) opportunity to close the housing and social infrastructure gap.” protection. “Our solution involves the installation of electro-magnetic compatibility EMC transits. These products provide safety and protection against electromagnetic interference and lightning strikes. The system is approved by all major classification societies and used in many industries.” The West Nile Delta field will boost Egypt’s gas production. First gas from the field was delivered to Egypt’s national grid in March 2017 and will ramp up to around 1.5 billion cubic feet a day (bcf/d) in 2019, equivalent to about 30 per cent of Egypt’s current gas production. “Roxtec has experience working in the oil 26 people took part in Hydraform’s and gas sectors internationally,” said Sharp. alternative block making technology course. Image Credit: Hydraform Image Credit:

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CONSTRUCTION | SOLUTIONS

TEN NEW BOBCAT E19 EXCAVATORS FOR DEK RENTAL FLEET

Stavebniny DEK, the leading Czech building materials company, has purchased ten new Bobcat E19 compact excavators for its expanding construction machinery rental service. Prague-based Stavebniny DEK’s annual turnover of more than CZK 11bn (approximately EUR 420mn) makes it a major player in the Czech market for building materials. Since 2013, the company has been developing a nationwide network for construction machinery and equipment rental. The DEK rental service, now operating through more than 60 branches across the Czech Republic, aims to provide the public, small businesses and construction companies with best quality, modern, state-of-the-art and high specification products. Image Credit: Bobcat Image Credit: E19 compact excavators offers many features including the ability to hydraulically retract its undercarriage to a width of less than one metre.

In 2017, a tender was issued to provide an expansion and upgrading of the compact excavator fleet available from the DEK rental service. In response to the tender, the local authorised Bobcat dealer, Bobcat CZ, also based in Prague, won the order for the 10 Bobcat E19 compact excavators. The E19 offers many features including the ability to hydraulically retract its undercarriage to a width of less than one metre in order to travel through restricted and narrow areas.

Superb Machine Features The E19 excavators in the DEK fleet also boast premium features such as a heated cab, a radio, an extended arm, wide blades, a suspension seat, keyless ignition, a Lehnhoff MS01 quick-coupler system, a comfort package including a high comfort seat and joystick-controlled arm movement, as well as a Performance Package for improved mobility on sandy surfaces.

Customized Livery The E19s rolled off the production line at the Bobcat plant in Dob íš in the Czech Republic already finished in the custom red livery and logos of the DEK rental fleet. This is one of the advantages offered by local dealers such as Bobcat CZ and the Dob íš factory working together. At other manufacturers, it is usually the dealers who have to customize the machinery in this way, which may affect the quality of workmanship and the delivery times. Michal Svejcar, director of the DEK rental service, said: “The Bobcat E19 compact excavator was successful in our tender because of its high quality, which we have tried and tested for ourselves on the job site, and because of the advanced design and quite exceptional range of features.” The DEK order is a perfect demonstration of the reputation for high quality and high performance of the Bobcat compact excavator range, as well as the company’s willingness to work closely with customers to meet their requirements for the best equipment and customized designs. For more information about Bobcat and Bobcat products, visit www.bobcat.com

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SOLUTIONS | CONSTRUCTION

SDLG LAUNCHES NEW COMPACT WHEEL LOADERS

SDLG has launched two new compact The L936 is the successor to the wheel loaders in India at Excon 2017, LG936L, which SDLG stopped selling in the country’s largest construction India earlier this year. The L936 has a equipment trade show. The 3-ton- maximum bucket capacity of Image Credit: SDLG Image Credit: rated L936 and 4-ton-rated L946 wheel 1.8 m3, and a maximum dumping loaders were unveiled during a distance of 1.2 m. The compact wheel customer event at SDLG's outdoor loader is 2.5 m wide, 3.2 m tall, 7.3 m booth 24 at the Bangalore long, and has an operating weight of International Exhibition Center on 13 11,340 kg. The L946 has a maximum December. bucket capacity of 2.5 m3 and a The two new wheel loaders, already maximum dumping distance of 1 m. available in other Asia-Pacific markets, With a maximum operating weight of were displayed at the booth alongside 13,000 kg, the L946 is 2.7 m wide, 3.2 two of the brand’s bestsellers – the SDLG launched the L946, the first 4-ton rated wheel loader. m tall and 7.2 m long. LG958L wheel loader and the G9138 “It’s a good time to launch these motor grader. wheel loaders in India, especially with “Compared to multi-purpose machines like more models to choose from in the 3-ton and the government’s push for infrastructure backhoe loaders, compact wheel loaders are 4-ton rated range. development and road development,” George becoming increasingly popular in India as “With the L936, customers have a second said. “SDLG manufactures reliable and customers realise the gains in productivity and option to the existing LG933L. “Plus, the L946, as simple-to-use machines, and we are confident efficiency they get from a machine that is built our first 4-ton-rated wheel loader in India, helps these qualities will appeal to customers, specifically for handling and loading of bridge the gap between our 3-ton and 5-ton allowing them to focus on getting the job done materials,” said Sanu George, head of SDLG in wheel loaders,” George said. “Both wheel loaders with minimal fuss and hassle.” India. feature Weichai Deutz Tier III engines, which Excon is organised by India’s premier business With the introduction of SDLG’s two smaller- deliver lower lifecycle costs through greater association, the Confederation of Indian capacity wheel loaders, customers now have efficiency.” Industry.

INTEGRATED PUMP RENTAL EXPANDS INTO INDUSTRIAL SECTOR

Signalling its expansion into the economy’s industrial segment, pump and dredging specialist, Integrated Pump Rental recently made short work of cleaning the sediment from the reservoirs of a customer in tile manufacturing. According to Integrated Pump Rental managing director Lee Vine, the tile making process involves wastewater being fed into storage tanks and then through a filter press. “During this process, an aeration system keeps the slurry in suspension and ensures the correct consistency for pumping,” said Vine. “With the aeration system under-performing, the slurry tended to settle in the reservoirs, reducing the water storage capacity and Image Credit: Integrated Pump Pump Integrated Image Credit: Rental undermining the efficient running of the plant.” The team from Integrated Pump Rental used a hydro solution to clear the tanks of sediment. The sediment also creates a potential environmental hazard should the tanks overflow, but its density makes it difficult to pump out. This challenge in the water storage tanks, which measure about eight metres square and hold some 200 m3 of waste water each, then has a knock-on effect down the line, causing inefficiencies in the downstream process. In this particular operation, it also became necessary to incur the additional cost of introducing municipal water to the system. “Our team was quickly able to assess the situation, and proposed the use of our innovative hydro solution, which has proven so successful and cost effective in desilting water reservoirs at mines or wastewater treatment plants,” he said. “The solution proved to be very successful and cleared the tanks of the sediment that had built up, allowing the customer to get their process back on track.” With its high quality Grindex slurry pumps and purpose engineered hydro mining monitor guns, Integrated Pump Rental’s hydro cleaning units are capable of extracting high tonnages of sediment from reservoirs. Vine emphasises that applying a regular cleaning programme need not be onerous for end-users, and will ensure that their tanks are sediment-free in a range of applications.

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CONSTRUCTION | SOLUTIONS

COMAR ASPHALT PLANTS BECOME EVEN MORE MOBILE

Leading the local industry in asphalt plants, standard Comar skip rail and 100 tonne hot Gauteng-based Comar has designed a more storage facility for larger scale projects.” compact and mobile plant for easier and Comar also upgrades and optimises existing more economical transportation, as well as asphalt plants by working with customers on quicker set-up time. their current operations to improve their Already a well-known name among South performance. This is done by retrofitting or African asphalt producers, Comar has replacing components. leveraged its extensive in-house design, The company has also developed a number engineering and manufacturing capacity to of ancillary products for its plants, such as continually improve plant design, bitumen storage facilities, bag houses, performance and energy efficiency. bitumen decanting systems, hot storage

According to Comar director Ken Basson, the Comar Image Credit: facilities, silos, screw conveyors, rotary valves Comar has designed a more compact plant for more new design is in line with international trends economical transportation and quicker set-up time. and purpose-built elevators. It has even towards increasingly mobile and smaller developed a bitumen spray cart. configurations. He emphasises, however, that There is considerable market interest, and we The plants are automated and can be this does not mean sacrificing plant capacity. are preparing our mobile plant design for operated with a user-friendly plant interface Comar operations manager De Wet Dreyer manufacturing.” The result is quicker controlled from an HMI touch-screen, putting all says many mobile plants still require some installation, allowing the plant to be set up key plant parameters at the operator’s fingertips. components to be transported on low bed within hours, rather than taking a week or Basson emphasises the after-sales support trucks and to be erected using on-site cranes; two as with traditional methods. Operation of Comar offers, with dedicated service teams this is contrary to the customer need for the plant can then begin almost immediately. staffed by qualified mechanical engineers being greater mobility and ease of movement. “The design is very versatile,” he says. “The on call to attend to customers’ equipment on “We now have a fully mobile design, which operation can be set up to discard directly site. Comar’s designs also prioritise the use of consists of two units,” said Dreyer. “The first into a truck, for those projects that only locally available components so that chassis carries the feed bins and the other the require 100 or 200 tonnes of production, or it maintenance or repairs are not delayed by drum, bag house and other components. can be parked and configured to feed into the waiting for parts to arrive from abroad.

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MINING | MINING INDABA

Tasiast Mine in Mauritania. Image Credit: Kinross Image Credit: Mining Indaba 2018 set to be biggest in history Thousands of delegates, representing 2,100 international companies, will get the chance to interact with 400 sponsors and 45 African and Non-African government delegations at this year’s Mining Indaba in Cape Town.

ining Indaba 2018 – the secure and flexible data New developments this year • Take away the connections, Mlargest mining event in management solution Geobank, • Mining 2050 innovation track, expertise and industry Africa – is expected to their 3D modelling and mine design meet with mining company COOs oversight to guarantee sector be one of the biggest Mining solution, Micromine and mine and project directors while success in 2018. Indabas to date. control system, Pitram. discussing the latest disruptive Mining Indaba will also host its Taking place at the Cape Town Micromine South Africa Regional tech and innovation investment 3rd Young Leaders in Mining International Convention Centre Manager, Renier Strydom, told strategies. Programme in partnership with (CTICC) from 5 to 8 February, the miningne.ws, “With numerous bug • Sustainable Development Day, Brunswick Group to expose young world's major mineral producers, fixes, and product enhancements, engage with all the major people to opportunities in the developers and explorers alongside Micromine 2018 and Geobank 2018 stakeholders in one place to industry. This year’s theme is: government representatives will be provide improved functionality and define a common vision for Mining 4.0: ‘Innovation, young sharing what exciting new mining will help our clients reduce costs sustainable development in professionals and priorities for a projects are happening in and and improve efficiencies. Both Africa’s mining industry. sustainable future’. around Africa and insightful trends products have been developed off • Intergovernmental Forum, in Speaking about the merits of in the industry. the back of extensive consultation 2018 we are promoting greater Mining Indaba, David Awram, Among the speakers include H.E. with our global client base.” collaboration and sharing of senior executive vice president and Olusegun Obasanjo, Nigeria’s former At Mining Indaba 2018, there will expertise between governments director, Sandstorm Gold, told President, Anil Agarwal, executive also be the chance to meet more in this interactive, focused stream Mining Indaba conference chairman from Vedanta Limited and than 60 junior miner exhibitors in of the event. organisers, “I have a chance to Lord Mark Malloch-Brown, former one showcase. • Ministerial Symposium, for the meet with companies, with Deputy Secretary-General United “There is an exciting networking first time you have the governments, with investors – Nations and senior advisor, Eurasia programme at this year’s event which opportunity to apply to join this anybody who might be interested Group, and Gareth Penny, chairman, provides us with a great opportunity high level summit featuring the in helping develop projects. Norilsk Nickel. to build new relationships across the top 100 mining company and Mining Indaba is a wonderful The world’s leading banks, region”, Strydom added. government leaders. place to have everyone come insurance companies, law firms, together.” engineering, procurement and Louis K. Watum director of logistics operations will be available Mining Indaba is a wonderful place to have Ivanhoe Mines, added, “What we for networking and deal-making. intend to achieve beyond listening Exhibitors, such as Mining everyone come together ” to other miners’ experience is to software provider, Micromine will look at best practices and to see, be presenting live demonstrations to DAVID AWRAM SENIOR EXECUTIVE VICE PRESIDENT AND not just what the trends are but showcase their productcs. DIRECTOR, SANDSTORM GOLD how we can come collectively to Micromine will be presenting its solutions.” I

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MINING | NEWS

World’s fifth largest diamond KENYA VYES FOR AMDC discovered in Lesotho HOST POSITION

A 910 carat diamond, believed to be the Kenya is among five African countries world’s fifth largest diamond, has been bidding for the hosting of the African discovered in Lesotho. Minerals Development Centre (AMDC), The diamond was unearthed by UK mining according to reports. firm, Gem Diamonds from the Letšeng mine and The AMDC is currently hosted at the could be worth as much as US$40mn. African Union Headquarters in Ethiopia’s Clifford Elphick, Gem Diamonds’ chief capital Addis Ababa. executive officer, called it a “landmark Dan Kazungu, mining cabinet secretary, recovery” for the company. said Kenya was well placed to win the bid He said, “Since Gem Diamonds acquired to host the centre as this will further boost Letšeng in 2006, the mine has produced some of creation of jobs in the country. the world’s most remarkable diamonds, including He added President Uhuru Kenyatta’s had the 603 carat Lesotho Promise, however, this already ushered in reforms to the mining exceptional top quality diamond is the largest to and extractives sector in order to make the be mined to date and highlights the unsurpassed country a leading minerals exporter. He said, quality of the Letšeng mine.” “In 2016, the cabinet gave the green light for In November 2015, Canadian mining Kenya to formerly bid to host the African company Lucara discovered a 1,110-carat Union’s AMDC the top mining policy body in diamond, named Lesedi La Rona in Karowe Africa and Kenya has set aside US$1mn in mine in Botswana. It was the largest diamond the 2016/2017 financial year budget.” discovered in more than a century. Kenya’s contenders in the bid to host the Before now, nine of the 10 largest diamonds AMDC include Zambia, Guinea, Mali and have been found in Africa. Four in South Africa, Sudan. Hosting criteria include stable Image Credit: Gem Diamonds Image Credit: two each in Sierra Leone and the Democratic Gem Diamonds discovered a 910 carat political environment and logistical facilities. Republic of Congo and one in Botswana. diamond at Letšeng mine.

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MINING | TRUCKS

Trucks to boost mining operations Heavy duty trucks are integral part of mining projects across Africa. Here is a selection of some of the top models on the market.

1. Cat AD22 3. Mercedes-Benz Actros trucks 5. Volvo trucks for underground trucks for mining mining operations Caterpillar has been busy rolling out new The Mercedes-Benz Actros truck is popular across Another major player supplying the continent’s underground mining machines for various projects the world, and used for a wide variety of infrastructure needs, Volvo’s trucks are a common in Africa. “Over the past few months we have applications. The heavy duty truck is normally sight on Africa’s roads. And the company delivered the first AD22 articulated underground used for long-distance haulage, heavy duty continues to improve its toughest vehicles for trucks – three of them to Glencore’s Mopani distribution haulage and construction haulage, as challenging environments such as the mining Copper Mines in Kitwe, Zambia,” said David Rea, well as being used for mining applications. The industry. This includes investment in automation global director of sales and product support for image here shows a Mercedes-Benz Actros truck, technology, now being trialled in many large Caterpillar’s Underground Mining Division. “At 22 launched in 2009, and designed for mining and international mining markets around the world. tons capacity, the AD22 is the smallest civil engineering work in Brazil, another major In the domestic Sweden market, self-driving Volvo underground truck in the Cat line, yet it offers market for the big manufacturers. Mercedes-Benz FMX trucks are being tested in regular operations greater payload than competitors’ trucks in the size continues to refine and upgrade this industry at the Boliden mine in Kristineberg, to examine class. It’s a robust and maneuverable design that workhorse truck. how this technology can contribute to safe and will serve well in smaller underground areas.” productive transports in tough geographically limited application areas. Image Credit: Volvo Image Credit: Volvo truck for mining operations Image Credit: Caterpillar Image Credit: Mercedes-Benz Cat AD22 underground truck Mercedes-Benz Actros truck 6. Iveco Astra HHD9 heavy duty truck 2. Cat 793F autonomous mining trucks 4. Scania Mining The Astra from the Iveco brand is a perfect fit Australia is another major market where mining P 460 8x4 tipper for mining and construction operations. trucks are put to the test, including models with The Scania Mining P 460 8x4 tipper delivers a The HHD9, the latest in its heavy duty solutions, intelligent, autonomous technologies. Caterpillar robust solution for mining operations. The Scania was presented at the Bauma trade show. It is and Rio Tinto recently signed an agreement for P-series cab provides a combination of space and ideal for extreme on/off-road applications and retrofitting 19 Cat 793F mining trucks for security, with easy cab access and comfortable off-road quarry and construction work. The super autonomous operation at the Marandoo iron ore accommodation, a real driver’s choice. Combine heavy duty Astra HHD9 8x6 tipper chassis is mine in Western Australia. Caterpillar will also the clean, frugal and powerful Scania Euro 5 SCR certainly ideal for mining applications, though install Cat Command for hauling software for six-cylinder engines with an Allison automatic the range also includes the 6x6 model in chassis operation of the autonomous fleet. The result of transmission and 8x4 twin steer configuration, and tractor versions. Iveco says there are almost the agreement will be the first fleet of Cat and you have the makings of a perfect power- limitless possibilities to customise the truck autonomous trucks deployed by Rio Tinto. The packed partner for busy front-lift operations. The for sectors ranging from logging to heavy first few trucks will be retrofitted in mid-2018, and image shows the Scania P 460 8x4 tipper at work construction, from mining to off-road heavy the project will be completed by the end of 2019. on the La Zanja mine in Cajamarca, Peru. haulage transportation. Image Credit: Iveco Image Credit: Image Credit: Caterpillar Image Credit: Silvio Serber, 2013 Silvio Serber, Image Credit: Cat 793F autonomous mining truck Scania Mining P 460 8x4 tipper Iveco Astra HHD9 heavy duty truck

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MINING | REPORT

Addressing the electricity shortage in Tanzania Kibo's Mbeya Coal to Power Project (MCPP) is regarded as a national priority for tackling the energy deficit in Tanzania, African Review catches up with its CEO, Louis Coetzee to find out more.

fter 20 years developing Mining feasibility study established IRR of 69.2 per cent, peak funding requirement of US$17m, all in a cost margin of 39 per cent Aprojects in Tanzania, Kibo, an and with a 2.4 year payback period. AIM listed resource development and energy company, is now seen as a strategic player in meeting the future energy needs of the country. Its CEO Louis Coetzee believes smaller power plants, like the Mbeya Coal to Power Project (MCPP), Kibo’s flagship asset, could provide the answer to long-term power generation in Africa, rather than focusing on massive infrastructure projects, which take decades to be built. Speaking exclusively to African Review, Coetzee said, “You can’t keep chasing 5,000MW plants, which

are going to take years to get into Kibo Image Credit: production. What do you do in the meantime? Tanzania is a classic Project, there is 1/2 billion tons of Coetzee said, “Our biggest with producing assets in multiple example. It has only around coal available of which 120 holdback is finalising the power geographies.” 1,500-1,700MW of generating million tons of coal has so far purchase agreement (PPA) with the Kibo also owns 57 per cent stake capacity, but only 1,000MW, in fact, been delineated along 12km of a government. As soon as this is in Katoro gold, which has two gold is in operation for a country which 48km coal strike, which is enough agreed, we can start production in exploration projects in Tanzania has got 52 million people. The to power the 300MW thermal 36 months. We’ve already done our and an early stage nickel project. government needs to bring on power plant. feasibility studies on both the mine When asked why Coetzee stream about 600MW per year to try Coetzee said, “We are constrained and the power station and have believes in Tanzania as an to stabilise the immediate demand. by the inability of the grid to signed an EPC agreement with investment destination, he said, “For emerging economies in evacuate more than 300MW at a SEPCO III and OEM agreement with “Tanzania has always been friendly developing countries, they would be time, so we are going to develop it GE. Our environmental and social to foreign investment and is a very better served spending their capital in three phases. First of all, we plan impact assessments have also safe country. I believe it will investments in developing capacity to produce 300MW, which will be been completed.” become the economic power and capability in their economies earmarked for domestic use, then Further cementing the company house of East Africa. It has rather than tying up billions of 400MW to various power pools, and as an energy player, in early approximately 50 per cent of the dollars in infrastructure projects, then 300MW again for domestic use. December 2017, Kibo announced it fresh water resources in Central such as power plants – leave that to This project has huge potential in was acquiring an 85 per cent and East Africa, controlling half of the private sector like us. We can the future, which could extend to ownership of an almost identical the Great Lakes. It has huge afford to have that capital tied up. 1,000MW and last for up to 60 project in Botswana from Sechaba mineral resources which have “Lets use our Mbeya power plant years. We know the government Natural Resources Limited, a been completely untapped until project as an example, which also sees the project as strategic in subsidiary of Shumba Energy. now. We have not even started to roughly will cost US$700mn. The meeting the country’s social The project will consist of a develop what is available in the government did not need to find economic development targets.” 300mt subset of the current 777mt country. They have oil and gas too. that money, it can now be freed up However, Kibo is currently coal resource. Kibo hopes to sign And there is the agricultural to spend it on education and waiting to get the green light from the MOU and PPA in the first potential which is far wider than healthcare as well as other things, the government to proceed with its quarter of 2018. any of its neighbours, not to which will provide a better Mbeya Coal to Power Project, which Coetzee said, “This is a fantastic mention its growing popularity as equipped and educated workforce.” also involves the development of opportunity for Kibo as we focus a tourist destination – it’s an In the Mbeya Coal to Power the Mbeya coal mine. on building an energy business amazing country.” I

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MINING | MINERAL PROCESSING

Improving mineral processing operations in mines

Weir Minerals Africa is strengthening its regional bases in Central Africa, West Africa and the Middle East, to help mines’ productivity with its range of process-related equipment.

s Africa looks forward to application, which will also mean capacity, or to remove bottlenecks to Aleveraging its mining growth less downtime for customers. In extend their capabilities. on the strength of recovering addition to Zambia and DRC, the “These brownfields opportunities commodity prices, Weir Minerals Kitwe office serves customers in are an important focus for us, and Africa is investing in its physical and countries like Uganda, Burundi, are well served by our customer- skills infrastructure to help mines Ethiopia and Eritrea, and it also focused strategy that brings get more value from their mineral supports Weir Minerals’ satellite expertise and solutions closer to our Africa Minerals Weir Image Credit: Pieter Jordaan, Weir Minerals Africa’s processing operations. office in Mwanza, Tanzania. customers’ operations,” he said. sales director Rest of Africa. According to Pieter Jordaan, Weir There is stock available for local He highlights that the mobile Minerals Africa’s sales director Rest customers in Mwanza so customers technical teams from the experience to fully assess a of Africa, the company is only need to hold minimal inventory company’s regional hubs can customer’s plant and make strengthening its regional bases in on their sites. This can be bring a range of solutions and recommendations. Where they need Central Africa, West Africa and the supplemented from the regional products to a customer, and can more time or resources, we can Middle East, to get closer to stockholding in Kitwe, which in audit a plant to identify areas of dispatch experts from our customers with its broad range of turn sources its stock directly from weakness where costs can be saved centralised process team. These are process-related equipment. South Africa. and performance improved. Further product specialists who can work “While we have traditionally been “In the West African region, which boosting their capacity is the new closely with the in-country staff to seen as a pump company, our range tends to be dominated by gold process division based in address issues related to belts, is now so extensive that we can offer mining, our regional office is in Johannesburg, headed by Process cyclones, wear linings, hoses or customers solutions from the ore tip Ghana, with satellite offices in Director JD Singleton. dewatering, for instance.” all the way through the process to Burkina Faso and in Senegal for the “This new capacity allows the Building local skills and expertise where the waste leaves the plant for English-speaking countries,” he said. regional teams to call on the in minerals processing is a vital part the tailings dam,” said Jordaan. “Our Jordaan noted that while there are experience of product experts in the of ensuring the sustainability and equipment offering includes crushers, a limited number of greenfield process division, and to collaborate growth of mining in Africa, he said, screens, pumps, valves, cyclones, projects with new plants on the in finding the optimal solution for which is why Weir Minerals Africa rubber linings, hoses and pipes, continent, many mines are looking to the customer,” said Jordaan. “Our has more than five per cent of its chutes and dewatering solutions.” optimise their plants, to expand their field engineers have all-round headcount engaged in formal With the price of copper trending learner programmes including but upwards and supporting the Weir Minerals Africa also not limited to a graduate scheme, supplies Cavex CVX profitability of operations in hydrocyclones and Enduron learnerships and apprenticeships. countries like Zambia and the dewatering screens. “In Ghana, for instance, we have Democratic Republic of Congo, Weir identified the need for more process Minerals Africa’s investment in new, engineers, so we plan to source local larger premises in Kitwe will be a graduates who we can train – both welcome contribution to its in the field and in our training customer service in the area. facilities in South Africa,” he said. “We are really excited about our “Our work in this space supports the expanded facility, which includes a local employment and skills new building to house about 45 staff development drive that most members focused on customer African governments have service,” he said. “It also provides an prioritised. It is also vital for us expansive warehouse facility, to store to leverage local knowledge and our significant investment in stock; networks that build our business.” our approach is to assist customers The company has about 20 with an improved turnaround time graduates in various disciplines for spares, so there will be more including mechanical and chemical inventory available in-country.” engineering, who are gaining The facility will have a workshop working knowledge in the field that to conduct operations such as pump will be very valuable to customers in I

rebuilds and rubber lining Africa Minerals Weir Image Credit: the years to come.

56 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | FEBRUARY 2018 www.africanreview.com S12ATRFeb2018-Mining02_ATR-NewMasterTemplate201619/01/201816:30Page57

MINING | SOLUTIONS

KWATANI SAYS BEING ON SPEC AND ON TIME ARE KEYS TO SERVING MINES

Faced with the ongoing challenge of being price It may even extend to offering advice on sensitive in new capital projects, OEMs must resonance issues where there are vibrating ensure that their product and service offering screens operating in close proximity. The helps create a sustainable foundation for the company’s experts have also been requested on customer’s profitability and efficiency. occasion to assist with an appropriate chute “Being cost competitive upfront includes design, which can influence the performance delivering on time and on specification,” said and life-span of the screen. Kim Schoepflin, CEO of vibrating screen “At Kwatani, we are keenly aware that specialist Kwatani. “Once equipment is engineering costs on a mining project must be operational, however, OEMs still need to make contained at every opportunity, so we minimise sure that their equipment provides the lowest the impact that our equipment has on the Image Credit: Kwantani. Image Credit: total cost of ownership.” Kwatani has extensive technical capacity to custom number of hours that an EPC must invest in Meeting all the necessary performance design and manufacture vibrating screens. project engineering and implementation,” said criteria means both the process ‘duty’ Schoepflin. “We work to accommodate the requirements – managing the required requirements and accommodate the existing client’s plant design by matching the footprint of throughput and product – as well as the plant infrastructure. our machines to those constraints.” structural and mechanical demands of “We work closely with the EPC or the mine on She emphasises that this kind of adaptation durability, ease of maintenance and reliability. the interface between the infrastructure and our is only possible with custom designed Kwatani has extensive in-house technical equipment,” she said. “This may involve equipment, which is a major factor in capacity to custom design and manufacture optimising the dynamic loading of a screen, Kwatani’s focus on engineered solutions rather vibrating screens for a range of different taking into account the features and capacity of than off-the-shelf products. Schoepflin also applications allows it to align its equipment the plant structure, to avoid costly and time highlights reliability as non-negotiable when it to closely meet the customer’s process consuming plant modifications.” comes to meeting project deadlines.

Advertiser’s Index BOLTED THICKENERS ARE THE FUTURE Afrocet Montgomery Exhibitions & Events Ltd ...... 12 AnBao QinHuangDao International Corp...... 30 The concept of bolted thickeners is growing in popularity, according to FLSmidth Anivi Ingenieria S.A...... 31 senior account manager Ricus van Reenen. This is a fit-for-purpose, high quality Arrow Machinery ...... 49 dewatering solution with reduced project construction risk and duration. Booyco Electronics ...... 39 These benefits resulted in FLSmidth securing an order in July 2017 for a 24 metre Central Power Research Institute...... 19 diameter high-rate thickener from a South African iron ore mining company. Cummins Africa (Pty) Ltd ...... 11 “Although this concept has been around for at least a decade, it is becoming more DMG EMS Africa (Wampex 2018) ...... 55 commonly used,” said van Reenen. “With a bolted tank, the whole thickener is Eko Hotel and Suites...... 13 constructed inside a purpose-designed fabrication facility with all welding, Emirates...... 60 sandblasting and painting taking place under controlled conditions. This guarantees Emsa Enerji Pazarlama ve Dis Tic. Ltd. Sti...... 35 that everything fits as it should so there are no unexpected delays.” Expo Group (BuildExpo 2018)...... 17 Thickeners have traditionally been constructed on site; all rolled and bent F G Wilson ...... 7 plates are transported to the required location where they are welded onto the GCNET (Ghana Community Network Services Ltd) ...... 21 prefabricated support structure and radial beams. “This process can take weeks to complete, as there are kilometres of welding Gustav Bertram GmbH ...... 15 runs required,” he said. “Moreover, the considerable weight of the material in Iveco SPA...... 53 the finished tank several thousand tonnes means that the weld quality JA Delmas ...... 2 – – needs to be high and coded welders must conduct the work.” Jessop & Associates (Pty) Ltd...... 47 These welders often have to be accommodated on site for extended periods of Kanu Equipment ...... 41 time, which adds to the cost; cross-border work often involves the added burden of Liquid Telecom ...... 23 obtaining work permits and special visas for these workers. MB S.p.A...... 9 Sandblasting of the welding runs is then necessary, as well as a final coat of Metalgalante S.p.A...... 45 paint. In addition to the extra costs, the work is highly weather dependent and Nuba Screening Media S.L...... 51 delays can be caused by rain or excessive dust. Pan Mixers South Africa (Pty) Ltd ...... 43 “Weather related delays can cause time over-runs for the contractor, which Panafrican Group...... 37 can then lead to penalty costs,” he said. “This sort of project risk is one of the Quanzhou City Sanlian Machinery Manufacture Co. Ltd ..59 main reasons why contractors are choosing bolted thickeners. As a contractor, Spedag Interfreight Ltd...... 27 your time on site is where your most significant risk will lie. Ensuring that Stodec Trading Ltd ...... 29 deadlines are met means on-time commissioning, which aligns well with Volvo Construction Equipment AB ...... 5 FLSmidth’s role as productivity partner to mining projects.” Zest WEG Group Africa ...... 33

www.africanreview.com FEBRUARY 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 57 S13ATRFeb2018-Interview_ATR-NewMasterTemplate201618/01/201814:43Page58

COMMENT

SA needs to factor the importance of grid stability to reduce extensive power losses.

Shaping South Africa’s new energy approach Adobe Stock Image Credit: Riccardo Temmers, Coega Development Corporation acting executive manager Centre of Excellence, shares his opinion following Energy Indaba, held at the Gallagher Convention Centre in Johannesburg.

uch has been talked about sectors namely, renewables, gas, centres and health facilities. These generation stations across the Mthe recently held Energy coal, nuclear and liquid fuels. play a critical role in ensuring that country. Highlighted in the Indaba hosted by the Furthermore, as the sectors develops, an environment which is fit for commissions was the fact that, there Department of Energy. Dominating investments in skills development, purpose is established. had been too much focus placed on the public discourse includes issues R&D, technology transfer and An example of this is the Coega price related to new power stations such as the department’s failure to innovation remain imperative. An Special Economic Zone, having rather than on the benefits and extensively consult with relevant important take away point in the positioned and created a solid value of local manufacturing, job stakeholders in the energy sector, as discussions was the highlight that an foundation for Coega SEZ’s readiness creation and participation of black well as the urgency around the energy value chain be created with a for energy projects, including entrepreneurs and communities. convening of the Indaba, to mention long-term view in mind. This will attracting multi-billion rand In the same breath, another but a few. allow for new entries in the sector to investors in the energy sector that important point was that the Nevertheless, in any public be developed and matured over a have jointly created more than development of a crude oil refinery discourse with a highly charged period of time and capability to be 1,800 jobs. Some of those investors will lead to significant economic environment, the energy sector established amongst previously include a R3,5bn Dedisa Peaking benefits especially when one remains a topical matter in the disadvantaged communities. Power Plant, with a capacity of considers the country’s dependency hearts and minds of many South There are significant benefits to 342MW and a green project, a multi- on liquid fuels for the transportation Africans. However, what is more be gained, at this time in the million rand 48KW solar plant, of goods and people. important is a constructive debate country’s history, by investing in which is located and feeds power to The need for new refining capacity that seeks to provide an overall energy programmes across South the CDC Business Centre. and security of supply is a critical perspective on some of the items Africa. Developing major capabilities factor that ought to keep the country debated at the Indaba. over the medium term will allow Towards an integrated sober during turbulent times. The Fortunately, I had the South Africans to export its energy mix indaba highlighted that Africa has opportunity of taking part in the intellectual capital to its neighbours Emphasis was once again focused on among the lowest number of refineries Indaba and intimately contributed and assist in the development of the the planned closure of several of any continent, with fifteen of the in the commissions, which revered region as a whole. Eskom power stations between now refineries located in two countries, on solid and tangible discussions and the year 2030, which means mainly six in SA and nine in Egypt. seeking solutions. Enabling infrastructure that new power stations need to be These refineries are ageing, needing From an infrastructure perspective, brought online to cater for this a high level of maintenance and or Economic growth central to development is the eventuality. It is evident that in construction of new refineries. Its appreciated that little can be enabling infrastructure for power planning the procurement of In conclusion, investment in achieved without stimulating an stations, refineries, wind and solar electricity generation, SA needs to the energy sector in South Africa economy. The economy, as the farms. Some of the highlighted factor the importance of grid would lead to economic growth, backbone of our country, correctly issues include a symbiotic stability to reduce extensive losses development and job creation. It is so, featured extensively. Among relationship between infrastructure on the electricity transmission important to note that the economy some of the discussions which such as roads, water and sewer network, and signifies the need for a and energy security is mutually featured, included specialist energy services, port facilities, skills training balanced distribution of power dependent. I

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