ATR Dec 18 - Jan 19 Cover_Layout 1 10/12/2018 13:52 Page 1

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

GOVERNANCE FINANCE POWER CONSTRUCTION Progress is lagging behind Overall regional outlook from 2019 Innovation at centre of meeting Using 4D modelling in expectations of population P15 and beyond P18 energy demand P28 design projects P39

DECEMBER 2018 / JANUARY 2019 African ReviewAfrican of Technology Business and

RISING FORTUNES P16 Will the continent be the world’s next big growth market?

P28

December 2018 / JanuaryDecember 2018 2019 LAGOS TO BOOST ENERGY SECURITY The state in talks to acquire a FSRU to deliver off-grid power

TOP TECH FIRMS TO PITCH AT MINING INDABA P44 Four start-ups invited to present innovative solutions Volume 54 Number 11

P14 www.africanreview.com YEARS “Major Ugandan enterprises are expected to come to market by early 2019” 54 SERVING BUSINESS IN Kwasi Kwarteng, Head Africa Regions, AFRICA SINCE 1964 Debt Capital Markets, Standard Bank S01 ATR Dec 18 - Jan 19 Start_ATR - New Master Template 2016 07/12/2018 14:15 Page 2 S01 ATR Dec 18 - Jan 19 Start_ATR - New Master Template 2016 10/12/2018 14:59 Page 3

Audit Bureau of Circulations - Business Magazines Editor’s Note

elcome to our final edition of 2018. It has been an eventful and action-packed year, with all Wsectors continuing to go from strength to strength. The region in 2019, in fact, will be revealed as the world’s next growth market according to a new book by McKinsey & Company, (page 16). This is in spite of the economic and political uncertainties surrounding two of the continent's major economies; Nigeria and South Africa. Interestingly, Lagos State is in talks with Golar LNG to acquire a FSRU to meet the city's power needs, which could kick-start the deregulation of the Nigerian Power sector, (page 28). The formwork and scaffolding industry continues to respond to a lively construction sector in many markets, especially with landmark projects, such as The Pinnacle in Nairobi, which will be the tallest building in Africa when it is completed by 2020, (page 36). Finally, a quiet revolution is taking place across the continent thanks to the marvel of mobile finance which is lifting thousands of people out of poverty. To find out more, turn to page 50. Cover picture: African finance © Adobe Stock Cover Inset: Kwasi Kwarteng, Head Africa Regions, Season’s greetings and a happy new year! Debt Capital Markets, Standard Bank © Standard Bank Samantha Payne, Editor

Editor: Samantha Payne Email: [email protected] Editorial and Design team: Prashanth AP, Fyna Ashwath, Hiriyti Bairu, Miriam Brtkova, Manojkumar, Nonalynka Nongrum, Praveen CP, Deblina Roy Rhonita Patnaik, Rahul Puthenveedu and Louise Waters Managing editor: Georgia Lewis Contributing editor: Martin Clark Contents Publisher: Nick Fordham Sales Director: Michael Ferridge Magazine Manager: Serenella Ferraro Profile Tel: +44 207 834 7676 Fax: +44 207 973 0076 14 Kwasi Kwarteng, Head Africa Regions, Debt Capital Markets Email: [email protected] for Standard Bank, explains why the continent’s debt India TANMAY MISHRA capital markets are expected to sustain the region’s ability Tel: +91 80 65684483 to import capital and manage debt. Email: [email protected] Nigeria BOLA OLOWO Tel: +234 80 34349299 Governance Email: [email protected] 15 The 2018 Ibrahim Index of African Governance has UAE MURSHID MUSTAFA P14 Tel: +971 4 448 9260 Fax: +971 4 448 9261 highlighted that public governance progress in Africa is Email: [email protected] lagging behind the expectations of a growing young UK MICHAEL FERRIDGE population. Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Email: [email protected] USA MICHAEL TOMASHEFSKY Finance Tel: +1 203 226 2882 Fax: +1 203 226 7447 18 Economist Moin Siddiqi looks at the opportunities and Email: [email protected] challenges facing African economies in 2019 and beyond. Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Onsite power Middle East Regional Office: Alain Charles Middle East FZ-LLC, 26 Portable power remains an important part of the Office L2-112, Loft Office 2, Entrance B, P26 PO Box 502207, Dubai Media City, UAE, continent’s energy mix. From small businesses to giant Tel: +971 4 448 9260, Fax: +971 4 448 9261 offshore rigs, it is vital to maintain safe and stable Production: Srinidhi Chikkars, Nelly Mendes and Infant Prakash operations. E-mail: [email protected] Chairman: Derek Fordham Gas-to-power Printed by: Buxton Press 28 Printed in: December 2018 Wale Oluwo, Lagos State commissioner for energy and mineral resources is in negotiations with Golar LNG to ISSN: 0954 6782 acquire a FSRU in order to help meet the region’s power needs. SUBSCRIPTIONS: P28 Rates for one year (11 issues): Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, Construction United Kingdom £77, US$140 36 How major formwork and scaffolding providers are To subscribe: visit www.africanreview.com/subscribe responding to the demand of projects in the lively For any other enquiry email [email protected] construction sector.

Mining 44 Four emerging tech companies will have the opportunity to pitch their solutions at Investing in Mining Indaba on 4-7 February. Serving the world of business P36 S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 4

NEWS | NORTH

Morocco joins South Africa as leading WORLD OIL, GAS AND investment destinations SOLAR REVIEW RELEASED

Morocco, South Africa, Kenya, Nigeria Eni has released the second volume of the and Ethiopia were the dominant anchor World Oil, Gas and Renewables Review, economies within their respective following the first edition published on the regions, collectively accounting for 40 oil market and the refining industry. It per cent of the continent’s total FDI provides data and statistics on natural gas, projects, according to EY’s latest Africa biofuels and renewable energy sources that Attractiveness report. are acquiring an important role in the The Turning Tides report stated that energy landscape by leading the transition to overall these four major sub-regions a less carbon intensive and more sustainable each attract similar FDI when measured energy system. by project numbers. For the first time In 2017, world gas reserves decreased ever, East Africa became the single slightly, by -0.2 per cent. Russia remains the largest beneficiary of FDI with 197 top holder of gas reserves, with 25 per cent projects (27 per cent of total projects). of the world’s total. Among the top ten, Southern Africa, by contrast, fared seven are OPEC countries with 44 per cent of

lowest of the four major regions, at 162 Adobe Stock Image Credit: the world’s total. Morocco was one of five economies that collectively accounted projects (23 per cent). for 40 per cent of the continent’s total FDI projects. World gas production increased by 3.6 per The 2017 data shows that Africa cent, the highest y-o-y increase since 2010. attracted 718 FDI projects which is up six per cent from the previous year. This was in line with a Pushed by new LNG plants, Australia’s recovery in the continent’s economic growth, following a difficult preceding year. The higher project production jumped by 21 per cent and ranks numbers were driven by interest in ‘next generation’ sectors, namely manufacturing, infrastructure and as the world eighth producer and sixth power generation. Despite the rise in FDI, project numbers remain below the 10-year average of 784 exporter. The output of Russia, the second projects (per annum). gas producer, strongly increased by 7.7 per The report also highlights the countries with the strongest FDI gains, with Ethiopia, Kenya and cent, but the USA is still the world’s largest Zimbabwe experiencing a major uptick in FDI during the 2017 year. By contrast, South Africa, Egypt, natural gas producer production, with an Mozambique and Côte d’Ivoire experienced declines in FDI projects in the same year. increase of 0.7 per cent. Ajen Sita, EY Africa CEO, says, “2017 was in many respects a major year for the continent. We saw In Africa, Egypt overtook Nigeria as the multiple changes in leadership across a number of countries, including South Africa, Zimbabwe and second continental producer after Algeria Angola. In addition, Kenya’s election was drawn out which created uncertainty at the time. Changes in with a steep increase of 23 per cent thanks to leadership have in turn led to a renewed urgency to implement fresh policies as new administrations the Zohr field start-up. In Europe, Norway’s move to address slow economic growth.” production hit record levels growing by 5.8 per cent, outpacing the big drop in UN WELCOMES MOVE TOWARDS EQUAL RIGHTS Netherlands, a decline of 12.8 per cent due to Groningen field reduction. UN High Commissioner for Human Rights Michelle Bachelet said the Tunisian Cabinet’s approval of a draft World gas demand has been strong in 2017 law that provides for equal inheritance rights for women is a significant step towards gender equality in the increasing by 3.3 per cent, growing in regions country, and sets an example for the region. except in America where the USA, the first The Council of Ministers in Tunisia has sent a draft law to parliament that would give male and female global consumer, saw levels decrease by 2.7 heirs equality, unless the deceased person had registered an explicit objection before a bailiff during his or per cent. Asia-Pacific led the growth with the her lifetime. “I warmly welcome this significant move to secure equal rights for women and men in Tunisia,” strongest increase of 41 bcm, (5.7 per cent), Bachelet said. “In many ways, Tunisia sets an example for other countries in the region. Over the past few driven by the Chinese boom thanks to the years, we have seen the Tunisian parliament reform a number of laws to bring them in line with the Battle for Blue Skies policies supporting coal- commitment to human rights, equality and non-discrimination enshrined in its constitution and its to-gas switch. China became the third world ratification of international human rights treaties.” gas importer and the second LNG importer.

BRIEFS

Morocco inaugurates high-speed line World Bank visits Egypt’s sewage programme His Majesty, King Mohammed VI and President A delegation from the World Bank has visited Egypt Emmanuel Macron has inaugurated the Tangier- to assess its sewage services programme. Casablanca high-speed train line. The first phase of the programme – costing Alstom supplied the Office National des Chemins US$550mn – will help 150 villages in the de Fer Marocain (ONCF) with 12 very high-speed governorates of Daqahliya, Sharqiya and Behaira, trains for the Tangier-Casablanca railway according to a report in Egypt Today. section. “We are extremely proud to bring high- An additional US$300mn World Bank loan will cover speed rail for the first time to the African the second phase of the programme. Also, a Image Credit: Alstom/A.février Image Credit: continent,” said Henri Poupart-Lafarge, Alstom Adobe Image Credit: Stock US$300mn loan from the Asian Infrastructure Alstom at the centre of the Tangier- chairman and CEO. The World Bank is giving loans up to Casablanca high-speed rail line. US$850mn to fund Egypt’s sewage works. Investment Bank will assist in costs of the project.

4 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 5 S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 6

NEWS | SOUTH

Mozambique invites South Africa to invest in ORANGE AND MTN LAUNCH gas-rich Cabo Delgado Province ‘MOWALI’ ACROSS AFRICA

The provincial permanent secretary of Two of Africa’s largest mobile operators and Mozambique’s Cabo Delgado Province, Antonio mobile money providers, Orange Group and Domingos Mapure, has extended an invite to the MTN Group have announced a joint venture, South African businesses during a trade and Mowali (mobile wallet interoperability), to investment seminar to come and do business in enable interoperable payments across the the province. continent. Mowali makes it possible to send Image Credit: The Image Credit: South Africa DTI, The seminar was the first leg of the week-long money between mobile money accounts Outward Trade and Investment Mission (OTIM). issued by any mobile money provider, in real He thanked the businesses for joining the time and at low cost. province in writing the new story of oil and gas and Mowali will immediately benefit from the expressed confidence in the growth of the economy reach of MTN Mobile Money and Orange Money, bringing together over 100 million post the trade and investment mission. The South African High Commissioner to Mozambique He said the mission came at an important time Mandisi Mpahlwa with the Provincial Permanent mobile money accounts and mobile money when the province was getting ready to start the Secretary of Mozambique’s Cabo Delgado Province, operations in 22 of sub-Saharan Africa’s 46 Antonio Domingos Mapure. 2018-2027 development programme, which includes markets. Mowali is ready to enable attraction of investments of more than US$50mn in the extraction of gas in the Rovuma basin and as well interoperability between digital financial as the initiation of graphite exploration. All these activities presented a huge opportunity for South service providers beyond MTN and Orange African businesses, the permanent secretary added. operations and markets, to support the Mapure commented, “South Africa has been a privileged partner of Mozambique for years. Its existing 338 million mobile money accounts participation in the agricultural sector is very active, which is a source of interest in this province. We in Africa. hope this meeting will provide opportunities and further create strong ties and the know-how for local Stéphane Richard, Chairman & CEO of businesses. Our priority areas are in line with the South African interest to invest in Mozambique and Orange, said, “By providing full they include tourism, fisheries, human capital, aquaculture, mining and energy.” interoperability between platforms, Mowali He assured businesses of Mozambique commitment to share the business opportunities, create a will provide an important step forward that conducive environment for businesses with regards to laws and regulations and to encourage domestic will allow mobile money to become a and international investments. universal means of payment in Africa. The South African High Commissioner to Mozambique, Mandisi Mpahlwa, said South African Increasing financial inclusion through the use businesses were aware the world was looking at Cabo Delgado Province’s oil and gas exploration, and that of digital technology is an essential element the volumes of gas were massive and attracting much attention from major energy foreign companies. in furthering the economic development of “The implementation of investments of more than US$50mn with the exploration of gas in the Africa, particularly for more isolated Rovuma basin presents important opportunities for South African companies and we would like to communities. This solution embodies partner with Mozambique and the province as it builds its new future,” Mpahlwa concluded Orange's ambition to be a leading player in the digital transformation of the continent. By SA JOINS IEA AS EIGHTH ASSOCIATION COUNTRY joining forces with another of Africa’s market leaders, MTN, we aim to accelerate the pace Jeff Radebe, minister of energy, Republic of South Africa and Dr Fatih Birol executive director of IEA has of this transformation in a way that will signed an agreement for South Africa to join the International Energy Agency (IEA). change the lives of our customers by In March this year, the minister approved South Africa to join the IEA as an eighth association country providing them with simpler, safer and more after Brazil, China, India, Indonesia, Morocco, Singapore and Thailand. advantageous services.” Signing the agreement at the 25th African Oil Week in Cape Town on 6 November 2018, the minister “One of MTN’s goals is to accelerate the said, “I believe this decision positions our country at the centre of the global energy forum and will yield penetration of mobile financial service in positive economic benefits to our country as we learn from IEA member countries and other association Africa, Mowali is one such vehicle that will members. This membership will provide South Africa with a form of regular dialogue with the IEA and help us achieve that objective,” said Rob association countries through the participation of standing groups, committees and ministerial meetings.” Shuter, group president and CEO of MTN.

BRIEFS

SAA needs US$540mn to survive from 2019 onwards SA to invest US$1bn in South Sudan’s oil sector

Struggling South African Airways (SAA) needs South Africa and South Sudan have signed a US$540mn from next month to fund its daily US$1bn deal to develop the oil industry in the east operations in 2019, according to a report by African country including the construction of a Reuters. The airline revealed its dire finances refinery, a new pipeline and the exploration of new during a presentation to a parliamentary oil blocks. “When this refinery is complete, it’ll committee on 4 December. have the capacity of producing 60,000 barrels of SAA is expected to make a US$383mn (R5.2bn) oil per day,” said Jeff Radebe, South Africa’s loss in the 2019 financial year and another minister of energy. “It is instrumental to have a Image Credit: Adobe Stock Image Credit: US$140mn (R1.9bn) in 2020 before making a Adobe Image Credit: Stock new a pipeline,” added Ezekiel Lol Gatkuoth, It is predicted South African Airways’s A new pipeline in South Sudan will serve finances will not improve until 2021. profit a year later, the presentation showed. field in the southern part of the country. petroleum minister for South Sudan.

6 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 7

REPORT | SOUTH

Johannesburg is most popular city, index says Johannesburg has emerged as the most popular destination city in Africa for the fifth consecutive year, according to the annual Mastercard Global Destination Cities Index.

ohannesburg, dubbed the City of Gold, South African cities show strong attracted 4.05 million international overnight performance visitors in 2017. Close on its heels, Marrakech Cape Town and Polokwane ranked third and sixth Jin Morocco is the second most popular African in terms of the African cities with the highest destination city, welcoming 3.93 million international overnight visitor expenditure in international overnight visitors last year. 2017, with visitors spending US$1.62bn and Polokwane (1.88 million), Cape Town (1.73 million) US$760mn respectively. While visitors to Cape and Djerba in Tunisia (1.65 million) rounded out Mastercard Image Credit: Town stayed 12.5 nights and spent US$75 per day the top five African cities ranked in the Index. on average, travellers to Polokwane stayed for a Johannesburg also recorded the highest shorter period (4.3 nights), but spent more per international overnight visitor expenditure among day (US$95). Shopping is also a drawcard for African cities with travellers spending US$2.14bn visitors to both Cape Town and Polokwane, in 2017, well ahead of Marrakech (US$1.64bn). On accounting for 22 per cent and 60 per cent of average, international visitors stayed 10.9 nights their total spend respectively. and spent US$48 per day in Johannesburg, with The Mother City attracted the largest shopping accounting for more than 50 per cent of proportion of long-haul visitors in South Africa, their total spend. with travellers coming from the United Kingdom “The City of Gold has once again topped the (14.4 per cent), Germany (12.4 per cent), United ranks of this year’s African index, with its mix of States (10.9 per cent), and France (6.6 per cent). shopping and tourism offerings still hitting the Cape Town’s highest number of African visitors mark with international travellers,” says Mark came from Namibia (6.2 per cent). Polokwane’s Elliott, Division President of Mastercard Southern top three countries of origin were Zimbabwe Africa. “The ranking is significant for Joburg’s (77.7 per cent), Botswana (6.9 per cent), and the economic prospects as visitor expenditure United States (2.5 per cent). contributes an important source of revenue to the retail, hospitality, restaurant and cultural sectors.” The world’s top destination cities The Mastercard Global Destination Cities Index With roughly 20 million international overnight ranks the world’s top 162 destination cities in visitors, Bangkok retained the top spot this year. terms of visitor volume and spend for the 2017 Visitors tend to stay in Bangkok 4.7 nights and calendar year. It also provides insight on the spend US$173 per day. London (19.83 million), fastest growing destination cities, and a deeper Paris (17.44 million), Dubai (15.79 million) and understanding of why people travel and how they Singapore (13.91 million) round out the list of top spend around the world. This year’s Index ranks five global cities by visitor numbers. 23 major African cities including Cairo, Nairobi, Not all cities are created equal when it comes to Lagos, Casablanca, Durban, Tunis, Dar es Salaam, the amount visitors spend in the local economy. Accra, Kampala, Maputo and Dakar among others. Dubai continues to be the top-ranking destination As an indication of the importance of intra- Johannesburg attracted 4.05 million visitors in 2017. city based on overnight visitor spend, with visitors regional travel, just more than 57 per cent of spending a whopping US$29.7bn in 2017 or U$537 international overnight visitors to Johannesburg per day on average. It is followed by Makkah, in 2017 originated from five Southern African neighbouring countries show, Johannesburg is one (US$18.45 bn), London (US$17.45bn), Singapore countries. Mozambique was the number one of the continent’s most significant metropolises for (US$17.02bn) and Bangkok (US$16.36bn). country that sends visitors to Johannesburg, business, trade, investment and leisure,” says City “International travel is crucial to many urban accounting for 809,000 visitors or 20 per cent of of Johannesburg executive mayor Herman economies, enriching the lives of both residents the total, followed by Lesotho (12.4 per cent), Mashaba. “The Index re-affirms Johannesburg’s and tourists. The bar is rising for cities to innovate Zimbabwe (12 per cent), Botswana (6.7 per cent) status as a destination that continues to attract to provide both a memorable and authentic and Swaziland (6.1 per cent). international overnight visitors each year due to its experience,” says Elliott. “We’re partnering closely According to the City of Johannesburg, the continually evolving tourism offerings – from with cities around the world to ensure they have Index rating affirms Johannesburg’s position as popular shopping destinations and our world-class insights and technologies to improve how they the major economic and cultural hub in Africa. malls to a wide range of lifestyle, sporting and attract and cater to tourists while preserving what “As the strong numbers of visitors from our business events.” makes them so special in the first place.” I

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 7 S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 10/12/2018 14:01 Page 8

NEWS | EAST

Seychelles launches world’s first sovereign “SUDAN IS POSITIONED FOR blue bond ANOTHER BOOM” Sudan is ready to take off and experience a Seychelles has launched the Seychelles’ sovereign blue bond will help world’s first sovereign blue bond harness capital markets for financing ‘second boom’ after years of war and US – a pioneering financial sustainable use of marine resources. economic and financial sanctions, says Azhari instrument designed to support Abdalla Abdelgader, minister of petroleum sustainable marine and and gas. fisheries projects. On the verge of having the USA embargo The bond, which raised removed, the minister announced on 6 US$15mn from international November during the 25th Africa Oil Week that investors, demonstrates the the first oil field has come back on stream potential for countries to following an agreement with his counterpart harness capital markets for minister in South Sudan. financing the sustainable use of Sudan’s oil production has decreased to marine resources. The World 75,000bpd from 500,000bpd after South Bank assisted in developing the Adobe Stock Image Credit: Sudan gained independence in 2011, taking blue bond and reaching out to the three investors: Calvert Impact Capital, Nuveen, and Prudential. with it 75 per cent of the country's oil “We are honoured to be the first nation to pioneer such a novel financing instrument. The blue resources. bond, which is part of an initiative that combines public and private investment to mobilise resources But with the imminent lifting of sanctions, for empowering local communities and businesses, will greatly assist Seychelles in achieving a both governments have now agreed to put on transition to sustainable fisheries and safeguarding our oceans while we sustainably develop our blue stream oil fields which have been left idle since economy,” said Vincent Meriton, Vice-President of the Republic of Seychelles, who announced the the civil war ravaged the country over the past bond at the Our Ocean Conference in Bali. five years. Proceeds from the bond will include support for the expansion of marine protected areas, improved Abdelgader said, “We put the first field back governance of priority fisheries and the development of the Seychelles’ blue economy. Grants and on stream in August, with 100 per cent loans will be provided through the Blue Grants Fund and Blue Investment Fund, managed respectively resources from the two countries. Our future is by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT) and the Development Bank of a lot brighter now and plans are in place.” Seychelles (DBS). “Oil fields from South Sudan have started to “The World Bank is excited to be involved in the launch of this sovereign blue bond and believes it flow to the systems and facilities of Sudan and can serve as a model for other small island developing states and coastal countries. It is a powerful oil prices have started to pick up. All reasons signal that investors are increasingly interested in supporting the sustainable management and are in place for Sudan to take off and development of our oceans for generations to come,” said Laura Tuck, vice president of Sustainable experience a second boom,” he added. Development at the World Bank. The Sudan government has supported South Sudan in the resumption of oil production at EIB SIGNS LOAN TO SUPPORT ENERGY INVESTMENT Toma South, which had been offline for five years. Oil output levels have risen to On the margins of its Africa Day in the Ethiopian capital, Addis Ababa, the European Investment Bank signed 135,000 bpd. a 15-year EUR 200mn (US$228mn) loan agreement with Afreximbank, aimed at supporting trade-related The promise of higher oil production and investments, including in renewable energy projects in Africa. The facility will support promoters in more more drilling activity has gained the interest of than 40 countries across Africa with long-term funding. investors including ONGC Videsh. Guillaume By improving access to finance for private enterprises, and specifically SMEs and mid-caps, this loan will Doane CEO Africa Oil and Power said, “Even enhance intra-African trade as well as trade with the European Union. It will enable smaller companies to without new exploration, the country has the sustain and create new jobs and will stimulate the expansion, diversification and development of African capacity to become the third largest oil trade. At least 25 per cent of this financing will be dedicated to projects which will diversify the power mix in producer in sub-Saharan Africa. With a peace the region, reducing reliance on fossil fuels and supporting climate goals. Werner Hoyer, President of the deal in place, South Sudan is one of Africa’s European Investment Bank said, “The EIB is committed to supporting investment in Africa.” most exciting resource plays.”

BRIEFS

Warning over volatile commodity markets Ethiopia names country’s first woman president

Volatility in commodity markets is set to increase Sahle-Work Zewde was named Ethiopia’s over the coming months, leading to greater civil first woman president and Africa’s only unrest and requiring military intervention, warned female head of state. She replaces Mulatu Unleashing the Wealth in Nations, a blockchain Teshome who resigned without any business. It cited what happened in Tanzania over explanation, a report from Aljazeera said. the pricing of its 2018 cashew nut harvest and Addressing parliament, she said,“The

Image Credit: ITU Image Credit: Pictures/Flickr Sahle-Work Zewde who is Ethiopia’s where the army was ordered to buy the harvest to new President, used to be head of UNON. absence of peace victimises firstly diffuse friction between farmers and buyers. UWIN women, so during my tenure I will

Image Credit: Image Credit: Adobe Stock says commodity-driven countries need to use emphasise women's roles in ensuring peace and the dividends of peace for women,” Tanzania suffered civil unrest folowing the pricing of its 2018 cashew nut harvest. blockchain technology to modernise operations. adding that Malatu showed “us the way for change and hope”.

8 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 9 S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 10/12/2018 14:03 Page 10

NEWS | WEST AND CENTRAL

Vantage Capital provides a US$21.5mn BOLLORÉ LOGISTICS mezzanine facility to Pétro Ivoire STARTS NEW HUB IN GABON

Vantage Capital Africa’s largest mezzanine Bolloré Logistics has opened a new logistics fund manager has announced it has hub in Lastourville, Gabon. provided US$21.5mn of mezzanine funding Connected to the railway operated by to Pétro Ivoire, a leading distributor of oil Société d’Exploitation du Transgabonais, and gas products in Côte d’Ivoire. The (SETRAG), the new logistics platform will company operates a network of 72 petrol store, manage and carry processed wood in stations across the country and is also the containers from the production sites in the largest gas distributor, with more than 1.7 forest to the Owendo container terminal million gas bottles in circulation. It also (OCT), 55km away. holds a 40 per stake stake in Côte d’Ivoire’s With an area of 14,000 sq m, the hub will largest gas storage and bottle filling facility, be able to handle 4,500 TEUs per year during SAEPP. The company sold 230 million litres the start-up phase. It will streamline the

of petroleum products in 2017. Capital Vantage Image Credit: timber shipment process for the four main Vantage Capital’s funding has enabled the Pétro Ivoire is a leading distributor of oil and gas products in forestry companies in the province of founding family to regain a controlling equity Côte d’Ivoire. Ogooué-Lolo. The first train of 15 wagons stake in the company by facilitating the buy- loaded with empty containers for the back of equity from two exiting private equity investors, Amethis and the West Africa Emerging Markets region’s four forestry companies: PW-CEB, Growth Fund. Founded in 1994 by Mathieu Kadio-Morokro, the company is now run by his son, SBL, SBK and BH. By joining forces with Sébastien Kadio-Morokro, who was recently selected as one of the top ten Young Global Leaders in sub- Bolloré Logistics and SETRAG, the four Saharan Africa by the World Economic Forum. The exit of the private equity investors has made room companies are seeking to address the for a French-based gas trading company, Geogas Entreprise SAS, to take a stake in the business difficulties in shipping their processed alongside the founding family. timber by road, and to limit transhipments Luc Albinski, managing partner at Vantage Capital, explained that, “Vantage is proud to have between the production sites and structured the first-ever leveraged management buyout in Francophone West Africa. Vantage’s container terminal. mezzanine product provided the ideal solution to Pétro Ivoire’s shareholders: enabling the private To further improve the efficiency of the equity investors to achieve a successful exit and the founding family to acquire a controlling stake in new site, Bolloré Logistics plans to set up a their business without having to write out a big equity cheque.” central office offering administrative and David Kornik, partner at Vantage Capital, added that, “Pétro Ivoire is run by an experienced and customs services in early 2020. The deeply talented management team. They have successfully established the business amongst the containers will be then cleared through leading players in Côte d’Ivoire’s downstream oil and gas sector and we look forward to partnering with customs directly in Lastourville instead of them through the company’s next phase of growth.” Libreville. As a result, the time required for operations and shipment, including packing CONGO LAUNCHES PHASE II LICENSING ROUND the wood into containers and shipping it to the port should fall by 15 days, bringing Congo officially launched its phase II licensing round for 13 new open blocks during Africa Oil Week in gains in productivity of between 15 and 20 Cape Town. They are situated in two main basins; the coastal and culvette basins. Five blocks are located per cent. in the shallow, deep and ultra-deep areas, three onshore in the coastal basin and five in the culvette basin, “The hub in Lastourville has advantages covering Koba, Mbesse, Mboloko, Mboto and Ntsinga. for all the players in the timber industry. The coastal basin produces 350,000 bpd and is the third largest in sub-Saharan Africa. The opening of a customs office in 2020 will Companies have until 30 June 2019 to submit their offers in Brazzaville. The results of the phase II complete our existing services, making it licensing round will be awarded in September 2019. possible to cut transit times for gains in Teresa Goma, director general, hydrocarbons also announced at the 25th African Oil Week the results of the productivity and reductions in cost,” said phase I licensing round. Marine 21 was awarded to Kosmos, Marine 27 was awarded to Perenco and Marine 20 Jean-François Olliver, managing director of to Total. In 31 December 2017, oil reserves stood at 496,847,000 bbl (1P) and 2,613,793,000 bbl (2P). Bolloré Transport and Logistics in Gabon.

BRIEFS

Landmark power station investment in Cameroon Togo joins AFC as 20th member

The Africa Finance Corporation was pleased to Togo has become the 20th Member State of Africa announce that it is to invest in the Nachtigal Hydro Finance Corporation. Togo's membership of Africa Power Company, located north of Yaounde in Finance Corporation (AFC) also makes it the 12th Cameroon. The US$1.3bn power project will West African member of AFC after Nigeria, Guinea consist of a 420MW hydro-electric power station Bissau, Ghana, Sierra Leone, Gambia, Liberia, as well as a 50km transmission line. Construction Guinea, Chad, Cape Verde, Benin and Côte is expected to commence by the end of 2018. “We d'Ivoire. Togo has in recent years delivered one of are pleased to be investing in the country's the highest growth rates across the continent, Image Credit: AFC Image Credit: Image Credit: Adobe Stock Image Credit: infrastructure that will help unlock economic averaging more than five per cent since the The US$1.3bn power project will consist AFC President Samaila Zubairu meeting of a 420MW hydro-electric power station. growth,” said Samaila Zubairu, CEO to AFC. the Togolese minister of finance, Sani Yaya. beginning of the commodity downturn (2011).

10 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S03 ATR Dec 18 - Jan 19 Events Calendar_Profile_ATR - New Master Template 2016 07/12/2018 13:50 Page 11 S03 ATR Dec 18 - Jan 19 Events Calendar_Profile_ATR - New Master Template 2016 07/12/2018 13:50 Page 12

EVENTS | 2019

Upcoming Events Calendar 2019 28 14 - 16 FEBRUARY TMT FINANCE AFRICA POWER-GEN AFRICA/DISTRIBUTECH 4 - 7 Cape Town, South Africa Cape Town, South Africa INVESTING IN AFRICA MINING INDABA www.tmtfinance.com/capetown www.powergenafrica.com Cape Town, South Africa www.miningindaba.com APRIL JUNE 19 - 20 8 - 14 11 - 14 AFRICA ENERGY INDABA BAUMA AFRICA ENERGY FORUM Johannesburg, South Africa Munich, Germany Lisbon, Portugal www.africaenergyindaba.com www.bauma.de www.africa-energy-forum.com 16 - 17 MARCH 11 - 12 SECUREX WEST AFRICA 2019 2ND ANNUAL FUTURE BANKING EAST 12 - 15 Lagos, Nigeria AFRICA SUMMIT PROPAK AFRICA www.securexwestafrica.com Nairobi, Kenya Johannesburg, South Africa www.fleming.events/future-banking-east-africa- www.propakafrica.co.za MAY summit 20 - 21 14 - 16 SEPTEMBER INTERMODAL AFRICA AFRICAN UTILITY WEEK 4 - 6 Mombasa, Kenya Cape Town, South Africa 10times.com/intermodal-africa-mombasa www.african-utility-week.com THE BIG 5 CONSTRUCT NIGERIA Lagos, Nigeria www.thebig5constructnigeria.com bauma 2019 will create new prospects for MEA

Taking place from 8-14 April, the 32nd edition of bauma in Munich will cater to the entire construction equipment sector including mining. In 2016, 20 per cent of the exhibitors came from the mining industry and interested visitors for

the sector covered 24 per cent of the footprint. Messe München Image Credit: As Saudi Arabia declares to invest US$22.6bn in a new mining sector and Egypt prepares to revamp its mining strategy for investors, Mareile Kaestner, exhibition director of bauma, feels that the show will give the Middle East and Africa companies an ideal platform to source solutions from global players. To keep up with the evolving construction sector, bauma 2019 will focus on three trends bauma 2019 will focus on three trends; digitisation, sustainability and efficiency. – digitisation, sustainability and efficiency. “Sustainable mining as well as workplace the opportunities and challenges presented by well as outside the halls. A dedicated hall for safety is a huge part of our agenda at bauma. new technology at bauma 2019.” digital solutions will feature an augmented Apart from product showcase, we also have She added that electromobility and reality and virtual reality technologies for special mining halls for seminars and lectures,” driverless vehicles are two areas that are the attendees. she adds. increasingly gaining traction with World’s seventh biggest construction Kaestner points towards another evolving manufacturers and service providers in the machinery market Canada is the designated trend – alternative drives. “The construction construction machinery industry. These will partner country of bauma 2019. According to machinery industry is increasingly opting for also be the hot topics at the fair. Leading Kaestner, this gives an opportunity to bauma, these. In the future there will no longer be one exhibitors here include Doosan Bobcat, until now a Europe-focused market, to look for single typical drive system but instead an Liebherr, Perkins Engines and Bosch Rexroth. partners as far as North America. increasingly wide range of competing drive As always, there will be new introductions at “We have been preparing for three years systems on the market. Electromobility and the show. bauma 2019 will see the launch of two now and believe that such forward-thinking driverless vehicles in particular are seen as key new halls. With these put together, the total area agendas will help attract visitors from Middle future drivers. The leading manufacturers will be of the event will cover 20,000 sq m. There will East and Africa gain partnerships and procure showcasing their developments and discussing also be a new lifting technology area inside as new products.”

12 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S03 ATR Dec 18 - Jan 19 Events Calendar_Profile_ATR - New Master Template 2016 07/12/2018 13:50 Page 13

REPORT | EVENTS

AfricaCom 2018: Pathway to a connected Africa

The 21st edition of AfricaCom – Africa’s largest technology conference in Cape Town – offered a glimpse of the connectivity divide in Africa and new trends to connect the unconnected. Nancy Onyango finds out more.

fricaCom was jam-packed continent. The gaps in connectivity with stimulating panel represent a missed commercial discussions, networking opportunity as well as an obstacle to forums,A product launches and achieving economic and social showcases. It was held at the Cape benefits that should arise as Town Convention Centre from 13 to broadband penetration increases.” 15 November. Pan-African telecoms group The conference featured more Liquid Telecom partnered with Image Credit: Nancy Onyango Nancy Image Credit: than 17,000 attendees from more Kymeta in a bid to extend its VSAT than 150 countries, ranging from service in the most under-serviced telecom operators, government and remote parts of Africa. representatives and researchers. Lanre Kolade, CEO of CSquared, Broadband outlook said, “Africa needs to showcase AfricaCom featured more than 17,000 attendees from 150 countries. Nigeria, South Africa, Egypt, Ethiopia success stories in the African and Algeria are the biggest mobile continent and AfricaCom provides handset with fast, 3G Internet. Of telecommunications company markets in the African continent in the opportunity for Africans to do the partnership, Rob Shuter, Group running a variety of international terms of subscriptions. Mobile data just that. African governments need President and CEO of MTN, said, “As submarine cable systems announced is the leading revenue growth area to understand that we have restless MTN we are proud to be part of this that it had signed a Memorandum for mobile operators in Africa. youth across the continent who partnership that supports our of Understanding with Broadband 5G is being punted globally, but in need to be empowered.” ambitions to deepen digital Infraco, a wholesale state-owned reality, Africa will see a much larger More than 60 per cent of the inclusion in our markets. This service provider in the South African uptake of 3G in the next few years. African population comprises youth initiative contributes to the telecommunication space to According to Ovum’s African Digital below the age of 25. They are mostly achievement of one of our major provides extensive regional long- Outlook 2019 report which was unemployed and live in rural and goals to provide affordable data distance network coverage and launched at the conference, “3G and peri-urban poverty-stricken areas enabled handsets to our customers, connectivity in the SADC region. increasingly LTE will power the where the provision of services such and by so doing, remove some of Broadband Infraco currently has growth of mobile broadband in as health care, education and the barriers to mobile internet nearly 15,000km of fiber networks Africa for the coming few years. The transport are constrained due to a adoption in Africa.” across South Africa. number of mobile 3G subscriptions lack of funding, infrastructural gaps The handset will retail between Geographic and infrastructural on the continent will rise from 456.6 and conflict. For the majority of US$20-US$25 which is relatively challenges are among the million at the end of 2018 to 697.6 young Africans, mobile phones are affordable compared to the average complexities faced by mobile million in 2023.” Ovum expects not just a communication device but price of US$40 of entry-level network operators when trying to mobile 5G services to be launched in also a vital tool for accessing either smartphones across the African expand mobile connectivity in rural Africa by 2021, but the number of life-enhancing or life-changing continent. MTN is aiming to sell areas of Africa. According to the mobile 5G subscriptions will be services and opportunities. around 10 million of the devices African Digital Outlook 2019, a small, rising to 5.9 million by 2023. Highlights and announcements over the next three years. report by Ovum, “Even as Africa sees Agriculture, education, health during AfricaCom 2018 aimed at progress with broadband and digital sector are best positioned to benefit shaping Africa’s digital future and Fiber connectivity services, basic connectivity remains from digital connectivity in the closing the connectivity gaps Angola Cables, a multinational out of reach for many people on the immediate future. included MTN, KaiOS Technologies, According to the 2017 African China Mobile, and UNISOC Futures report by the Institute for announcing a partnership to launch 3G and increasingly LTE will power the Security Studies (ISS), “Mobile Africa’s First Smart Feature Phone. technology uptake can help banking, The mobile phone will initially be growth of mobile broadband in Africa for health and education services to available from MTN in Nigeria and reach underserved populations, but South Africa. The handset will allow the coming few years ” increasing business productivity and customers to upgrade from a feature attracting foreign direct investment phone with only voice and text OVUM’S AFRICAN DIGITAL OUTLOOK 2019 (FDI) will require investments in capabilities to a fully connected pricey ICT infrastructure.” I

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 13 S03 ATR Dec 18 - Jan 19 Events Calendar_Profile_ATR - New Master Template 2016 07/12/2018 13:50 Page 14

PROFILE | REPORT

Debt capital markets resilient amid global change Kwasi Kwarteng, Head Africa Regions, Debt Capital Markets for Standard Bank shares the reasons why the continent’s debt capital markets are expected to sustain the region’s ability to import capital and manage debt.

ctivity in Africa’s debt capital markets issued US$ denominated sovereign transaction. Aremains remarkably resilient despite global Additionally, Standard Bank has acted as joint trade wars, Brexit concerns and high lead arranger on all of Ghana’s longer dated interest rates in a resurgent United States treasury bonds for the last two years or more. economy which is translating into emerging More broadly across the West African region, a Image Credit: Standard Barnk Standard Image Credit: market jitters. Even as concerns around African number of development finance institutions and sovereign debt mount, increasing global financial institutions based in Francophone Africa integration and the internal capability of the are expected to approach the market with US continent’s debt capital markets looks set to dollar and local currency structures. sustain Africa’s ability to import capital and The current uptick in West Africa’s local manage debt through the current global cycle. currency issuance is expected to continue into As an example, for the Southern and Central 2019 as various non-bank financial institutions Africa region, the recent slowdown in US dollar come to market. denominated transactions in Southern and Kwasi Kwarteng A common theme evident across all Africa’s Central Africa, excluding South Africa, has been regions is that, increased debt servicing pressure offset by an increase in local currency debt capital improved infrastructure while providing open is, in fact, creating the opportunity for markets interest and transactions for certain berth for regionally focused issuers. Looking experienced debt teams to restructure, and issuers. Markets such as Namibia and Botswana ahead, major Ugandan enterprises as well as extend US dollar sovereign debt. This same have experienced increased local currency some of their larger corporate entities are pressure is driving an increased interest in local issuance activity in 2018 with Mozambique expected to come to market by early 2019 currency issuance. This response very much undertaking its largest listed metical transaction pointing to a sustained period of debt capital reflects, Africa’s ability to adapt challenges into for a non-government issuer ever. Zambia has market activity in East Africa. opportunity though the judicious combination of also seen a local currency issuance in 2018, the The most significant indicator, however, that innovative policy and the application of new first in more than a year and half. In addition, East Africa’s debt capital market is bouncing back technologies to support rapid market issuers in traditionally smaller markets, such as has been Kenya’s issuance of 10 and 30-year development. Swaziland and Lesotho, are pursuing significant sovereign bonds. Kenya’s 30-year bond is, in fact, For example, the pressure to restructure debt local currency issuance initiatives, and one of the longest dated US$ bond issued by an is, fortunately, coming at a time when many developments in Malawi present promising local African sovereign. African economies are evolving deeper with more currency opportunities in 2019 and beyond. In West Africa, Standard Bank acted as local liquid domestic markets – especially through The slowdown of US dollar denominated debt advisor for the sovereign of Nigeria’s 2017 and pension fund reform and other progressive raising in Southern and Central Africa is 2018 Eurobond transactions. Major Nigerian legislation driving the growth of new asset classes. temporary and to some extent cyclical, with an corporates Dangote Cement and Union Bank This is happening at a time when Asia and other uptick in US dollar denominated activity expected successfully raised local currency debt. Other emerging markets in the Middle East and the Gulf across the region in the first quarter of 2019. Nigerian corporates pursuing local currency are making broader US dollar debt opportunities Despite regional and global macro headwinds, transactions are expected to come to market in available to Africa. Certainly, China and wider East Africa is emerging from two years of slower late 2018 and 2019. Ghana has also recently Asia offer Africa a broader selection of capital debt capital market activity. The collapse of three opportunities. Standard Bank’s institutional financial institutions in Kenya drove wariness relationship with the Industrial and Commercial among legislators concerned about the role of Africa has a way to go in Bank of China – and the access that this provides debt in driving instability. Combined with to the highest level of the Chinese banking and prolonged uncertainty over the Kenyan elections, accessing the size of capital system – presents yet another opportunity this wariness drove a similar reticence among East for Africa to widen its access to global capital on African issuers. In recent months, however, local currency liquidity more competitive and extended terms. confidence and appetite have returned to East Since Africa has still a way to go in accessing Africa underpinned, for example, by a number of available to support the size of local currency liquidity available to potential issuer/issuance related initiatives across support large debt transactions and being able to the region. In Tanzania there has been a recent large debt transaction ” partner with a global bank to identify the right financial institution transaction, while the KWASI KWARTENG opportunities, picking the right windows to Rwandan sovereign has increased their interest in approach traditional and new global US dollar developing the regional debt capital markets with debt markets remains essential. I

14 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S04 ATR Dec 18 - Jan 19 mckensie report_ATR - New Master Template 2016 07/12/2018 13:53 Page 15

GOVERNANCE | REPORT

African governance lags behind vital needs Despite strong GDP growth over the last 10 years, Africa has failed to generate economic opportunities for its booming youth population, according to the 2018 Ibrahim Index of African Governance.

he 2018 Ibrahim Index of education. While human African Governance (IIAG), development is one of the bigger launched by the Mo Ibrahim success stories of the 2018 IIAG, Foundation,T highlights that public driven by improvements in health, governance progress in Africa is the stalling progress in education lagging behind the needs and seen in last year’s IIAG has now

expectations of a growing Foundation Mo Ibrahim Image Credit: turned to decline. population, composed mainly of For 27 countries, education scores young people. registered deterioration in the last Over the last decade, overall five years, meaning that for more governance has on average than half (52.8 per cent) of Africa’s maintained a moderate upward youth population, education trajectory, with three out of four of outcomes are worsening. This drop Africa’s citizens (71.6 per cent) is driven by a fall in the indicators living in a country where measuring whether education is governance has improved. meeting the needs of the economy, African governments have struggled education quality, and citizens’ to translate economic growth into expectations of education provision. improved Sustainable Economic Opportunity for their citizens. Civil society space Since 2008, the African average is shrinking score for sustainable economic have managed to accelerate their Declining business Progress in participation & human opportunity has increased by 0.1 pace of improvement over the last environment rights has been made on average. point, or 0.2 per cent, despite a five years. Progress is most striking The trajectory of the African average Almost four out of five of Africa’s continental increase in GDP of in Côte d’Ivoire, Morocco and Kenya. score for business environment is citizens (79.6 per cent) live in nearly 40 per cent over the same Divergence is also reflected in critical. Deteriorating by almost -5.0 countries that have progressed in period. There has been virtually no sustainable economic opportunity points over the past 10 years, this is this dimension over the last decade. progress in creating sustainable trends. While 27 of Africa’s countries a worrying trend given that the However, ‘free and fair’ executive economic opportunity, meaning it have shown some improvement, in number of working age Africans (15- elections do not always translate into remains the IIAG’s worst performing 25 countries, accounting for 43.2 per 64 years old) is expected to grow by a better participatory environment. and slowest improving category. cent of Africa’s citizens, sustainable almost another 30 per cent over the Alarmingly, citizens’ political and Defined as the extent to which economic opportunity performance next 10 years. civic space in Africa is shrinking, with governments enable their citizens to has declined over the last 10 years. This will increase demand for jobs worsening trends in indicators pursue economic goals and prosper, There is no strong relationship in an environment where on measuring civil society participation, the almost-stagnant Sustainable between the size of a country’s average progress in sustainable civil rights and liberties, freedom of Economic Opportunity trend strikes economy and its performance in economic opportunity is almost expression and freedom of a concerning contrast with sustainable economic opportunity. non-existent. Such demographic association and assembly. demographic growth and youth In 2017, four of the 10 countries figures create a further striking Although personal safety and expectations. Africa’s population has with the highest GDP on the contrast with the drop of -3.1 points national security continue to show increased by 26 per cent over the continent score below the African in satisfaction with employment average decline over the last last ten years and 60 per cent of the average score for sustainable creation since 2008. decade, rule of law and continent’s 1.25 billion people are economic opportunity and sit in the Additionally, the indicator transparency and accountability now under the age of 25. lower half of the rankings, namely: measuring promotion of socio- have begun to register welcome Algeria, Angola, Nigeria and Sudan. economic integration of youth progress. Rule of law is the most A diverging picture Meanwhile, two of the smallest registers an average continental improved sub-category in the IIAG across Africa economies on the continent, decline of -2.3 over the last decade. over the last five years. African African countries show increasing Seychelles and Cape Verde, reach average performance in divergence in overall governance the fifth and sixth highest scores in Education outcomes transparency and accountability has performance. Continental progress is providing sustainable economic are worsening also improved, though more needs mainly driven by 15 countries that opportunity for their citizens. Further cause for concern is to be done in this category. I

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 15 S04 ATR Dec 18 - Jan 19 mckensie report_ATR - New Master Template 2016 07/12/2018 13:53 Page 16

BUSINESS | REPORT

Africa is the world’s next big growth market A new book by McKinsey & Company confirms that Africa is poised for economic acceleration like the Asian boom.

n Africa’s Business Revolution: The authors study global companies IHow to Succeed in the World’s which have succeeded in Africa, Next Big Growth Market, Acha such as Coca-Cola, GE, and Total. Leke, Mutsa Chironga, and Georges Desvaux detail the research that Four imperatives to achieve McKinsey & Company have done and long-term sustainable growth share insights into Africa’s future Leke, Chironga and Desvaux believe growth prospects. The conclusions that building a successful business in they draw are distilled from 3,000 Africa requires a long-term approach McKinsey client engagements, in- and four essential practices: depth proprietary research and • Mapping an Africa strategy – interviews with 40 of Africa’s most setting a clear aspiration, prominent business and prioritising markets, defining how development leaders. The authors to achieve scale and relevance and reveal how companies can better creating an ecosystem to thrive. understand the African market and • Innovating business models – seize the opportunities for building truly engaging with customers, profitable, sustainable businesses. creating products and services to fulfil unmet needs, getting lean to Major trends indicate Africa drive down costs and price points, is poised for explosive growth and harnessing technology. Africa has a fast-growing, rapidly • Build resilience for the long- urbanising population with big term – riding out short-term unmet needs. This means there is a volatility, diversifying portfolios, trillion-dollar opportunity to integrating up and down the industrialise Africa, to meet rising value chain, understanding local domestic demand and create a context and engaging with bridge-head in global export governments. markets. In addition, there has been • Unleashing talent – developing a big push by governments and the skills in frontline workers, Image Credit: McKinsey & Company McKinsey Image Credit: private sector to close infrastructure reating robust talent development gaps. There is a continued resource processes and harnessing the abundance in agriculture, mining, adapt their products, production and conglomerate, Dangote Industries, power of women’s advancement. and oil and gas, with innovation and distribution for African consumers, industrialised to serve regional Leke says, “At the heart of these four investment in these sectors unlocking and commit to investing and building markets through import substitution imperatives is a commitment new production on the continent. their businesses for the long-term.” and improved margins through to doing well by doing good. We’ve The rapid adoption of mobile and vertical integration. South African had the privilege of meeting and digital technologies could leapfrog African success stories retail giant, Shoprite, adapted its working with many business leaders Africa past many obstacles to growth. The book examines several supply chain and distribution from around the world. They look at Leke and Desvaux, both senior examples of African businesses that centres for local logistics. Africa’s high levels of poverty; its McKinsey Partners and Chironga, an have translated opportunities into Technology driven start-up, Kenya’s gaps in infrastructure, education executive at Nedbank, say, “With enduring business value. For M-Kopa, is providing mobile money and healthcare, and its governance more than 400 African companies instance, it shows how Nigerian financed off-grid solar energy kits. problems. But they don’t just see earning annual revenues of US$1bn barriers to business – they see or more, we can identify what works. human issues they feel responsible The highly successful businesses are The highly successful businesses are often for solving. They show us that often African companies, but many contributing to the social and are entrepreneurial firms with African companies ” economic development of the Western, Indian or Chinese founders. countries within which their The most consistently profitable ACHA LEKE AND GEORGE DESVAUX, MCKINSEY PARTNERS AND thriving businesses operate creates businesses, which demonstrate a MUTSA CHIRONGA, EXECUTIVE, NEDBANK value for both shareholders higher tolerance for risk, are eager to and stakeholders.” I

16 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S04 ATR Dec 18 - Jan 19 mckensie report_ATR - New Master Template 2016 07/12/2018 13:53 Page 17 S05 ATR Dec 18 - Jan 19 Report 02_ATR - New Master Template 2016 07/12/2018 13:54 Page 18

FINANCE | REPORT Image Credit: Adobe Stock Image Credit:

Africa holds steady amid external uncertainities Economist Moin Siddiqi provides a comprehensive overview of the opportunities and challenges facing African economies in 2019 and beyond.

he US$2 trillion-plus sub- South Africa, contractions in The regional business climate is TSaharan Africa (SSA) economy, agriculture, mining and construction improving, with 40 African countries home to a growing urban as well as uncertainties over the implementing a total of 107 reforms middle-class population and vast 2019 national elections and lower in the past year, up 24 on previous untapped markets continues to government spending are year, according to the World Bank strengthen from a low point in 2016, preventing sustained robust growth 2019 ‘Doing Business’ report. SSA is Moin Siddiqi Image Credit: thanks to domestic policy for combating high unemployment home to five of 2018’s top 10 adjustments and improved global and boosting critical investments, improvers – Côte d’Ivoire, Djibouti, economic activity. Growth was notably in the energy sector and Kenya, Rwanda and Togo. projected to increase from 2.7 per social housing. Strengthening governance, fighting cent in 2017 to 3.1 per cent in 2018 Continued economic stagnation in corruption and tackling obstacles (IMF data), exceeding growth SSA’s two biggest markets (Nigeria and such as inadequate electricity and outcomes in the Middle East but SA) impacts neighbouring countries financial services will support lower than in emerging Asia. There through remittances, import demand further business growth. Moin Siddiqi. remains a noticeable disparity in and financial flows. According to the growth performances across sub- IMF, spillovers to Benin and Niger’s Debt vulnerabilities The IMF 2018 figures show regions, with consistent solid growth growth from non-oil activity in One area of concern is rising public government debt in 12 countries attained in east Africa, which Nigeria are estimated at 0.5 and 0.3 debt and fiscal imbalances in the could average between 70-to-100 per attracts significant investor interest. percentage points, respectively. region. In 2017, 15 SSA economies cent of GDP, chiefly Angola, Congo Energy exporters have Similarly, workers’ remittances to were classified either in ‘debt (Rep), Ghana, Mozambique, Zambia experienced a growth revival, but Lesotho and Swaziland depend distress’ or at ‘high risk’ of debt and Zimbabwe, while fiscal deficit is still below levels of pre-2014/15 oil heavily on SA. Nonetheless, the rest distress (compared to six in 2013), predicted to hit 4-to-10 per cent of price slumps. In Nigeria, the non-oil of SSA has grown at 5.3 per cent on reflecting heavy borrowing and large GDP in 18 countries; Burundi, industrial sector is constrained by average in 2010-17 (IMF data), but deficits, with refinancing cost of Eritrea, Ghana, Kenya, Uganda, sluggish private demand, whilst with wider heterogeneity across dollar-denominated liabilities Mozambique, Nigeria, Zambia and recent reforms in Angola bode well countries. Hence, there are plenty of becoming in future more expensive Zimbabwe, among others. for non-oil activity. However, the opportunities for dedicated investors due to local currency depreciations At the same time, foreign positive effects of high oil prices in frontier markets. in several cases. exchange reserve buffers are below were offset by lower crude output in international threshold of three- both countries due to capacity months ‘import-cover’ in about half constraints. By contrast, growth Rising US interest rates will increase debt of SSA countries. The share of during 2018 was buoyant among foreign currency denominated non-resource rich countries led by service burdens and hike the cost of public debt in total government Ethiopia, Côte d’Ivoire and Kenya, debt increased across SSA from more due to better agricultural new borrowing ” than one-fifth in 2011-13 to one- conditions, increased consumer third of GDP in 2017. While the spending and public investment MOIN SIDDIQI, ECONOMIST share of concessional (i.e. soft) coupled with abating inflation. In funding by multilateral and bilateral

18 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S05 ATR Dec 18 - Jan 19 Report 02_ATR - New Master Template 2016 07/12/2018 13:54 Page 19

REPORT | FINANCE

creditors is unchanged, African debt Large disparity in growth performance across sub-Saharan African regions held by private banks and bondholders has risen in recent 7 years. In the first-half of 2018, six 6.3 5.9 countries (Angola, Côte d’Ivoire, 6 5.4 Ghana, Kenya, Nigeria and Senegal) 5.3 raised US$14.3bn in Eurobond 5 issuances (World Bank data), 4 compared to US$7.8bn for the full 3.6 3.2 3.2 CEMAC * year of 2017. 2.9 EAC-5 # 3 2.7 Moreover, a strong dollar and ECOWAS // 2.0 SADC ~ rising US interest rates will increase 2 1.8 1.7 debt service burdens and hike the 1.4 cost of new borrowing, including 1 0.5 for large amounts of maturing SSA 0.3 global bonds in 2019-20 and in 0 2016 2017 2018 2019 2024-25 – thus indications of future -0.3 -1 ‘refinancing risks’ facing Africa region. The IMF advised, * Economic & Monetary Community of Central African States: Cameroon, Central African Rep. Chad, Congo, Rep of “Improving debt management Equatorial Guinea and Gabon. frameworks could help better # East Africa Community-five: Burundi, Kenya, Rwanda, Tanzania and Uganda. manage risks. Further revenue- // Economic Community of West African States: Benin, Burkina Faso, Cabo Verde, Côte d'Ivoire, Gambia, The, Ghana, based adjustment is needed to Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo reduce debt vulnerabilities and ~ Southern African Development Community: Angola, Botswana, Congo (DRC), Eswatini, Lesotho, Madagascar, generate resources for Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. development.” Many countries Source: IMF Regional Economic Outlook, Oct 2018. require new sources of finance to provide more services to their SSA macro-economic indicators (per cent) populations. Africa needs Projections US$100bn a year for infrastructure 2016 2017 2018 2019 investment (World Bank data), but Real GDP growth (per cent) 1.4 2.7 3.1 3.8 present capital spending across the Nigeria -1.6 0.8 1.9 2.3 region is about US$50bn – leading South Africa 0.6 1.3 0.8 1.4 to a swelling infrastructure deficit. Angola -2.6 -2.5 -0.1 3.1 Navigating against headwinds Inflation, annual (per cent change) 11.2 11.0 8.6 8.5 Overall, regional prospects are Fiscal balance* incl. Grants -4.5 -4.8 -4.2 -3.9 benign, although greater economic Government debt * 43.8 45.4 48.5 48.2 diversifcation would shield Africa External official debt* 20.6 22.2 23.0 23.1 from commodity price shocks. Real Foreign reserves ** 5.2 4.9 4.9 4.8 GDP growth (excluding Nigeria and SA) could reach 5.4 per cent in External current account * -3.9 -2.3 -2.8 -3.4 2019, boosted by public Crude oil (US$/barrel) 43 53 72 74 investments, high exports, increased Gold (US$/oz) 1,249 1,258 1,259 1,245

agriculture output and strong * Per cent of GDP; ** Month of imports of goods and services. domestic demand. More Sources: IMF database, World Bank Commodity Report, Oct 2018. encouraging, the IMF expects 18 out of 45 SSA countries (two-fifths) to agricultural and energy depleting volume of spare capacity uncertainty in the UK over Brexit. grow briskly at 6 per cent or more commodities (oil, natural gas and in major OPEC producers. Though Moderate growth in China and the compared to 10 in 2016 – well coal) plus minerals and precious prices could fall in coming months Euro area (SSA’s major trading above global trends. While further metals trading slightly above 2017- weighed by rising inventories and partners) would reduce commodity fiscal consolidation in SSA is likely, 18 levels. A modest external surplus slower global growth. prices, export demand and foreign double-digit inflation is expected in is forecast among oil-exporters, but Against this background, SSA direct investment flows to Africa. An Liberia, Nigeria, Angola, Congo oil-importers (comprising three- faces challenges to strong expansion abrupt tightening of US monetary (DRC) and Sierra Leone. quarters of SSA countries) face large with the downside risks to global policy (i.e. higher financing costs) or Current account positions (i.e. deficits as oil prices are projected growth over the past six months, a sudden reversal in capital flows to net trade in goods/services) are by World Bank to average reflecting geopolitical strains, rising emerging markets also impacts SSA. expected to stabilise in 2019, with US$74/barrel in 2019 – reflecting protectionism, greater volatility in This could prompt steep currreny prices of the region’s exports: inadequate global supply and assets markets and elevated policy depreciations in countries with

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 19 S05 ATR Dec 18 - Jan 19 Report 02_ATR - New Master Template 2016 07/12/2018 13:54 Page 20

FINANCE | REPORT

weak fundamentals. economies could lead to large Equally, a protracted trade war economic losses and cascading Improving debt management frameworks between the US and China can hit trade costs through global value metal-exporters hardest than oil- chains.” Such adverse conditions could help better manage risks ” exporters since base metal prices hinder Africa from achieving the could drop faster than oil prices. Also, Sustainable Development Goals and IMF countries like SA, Kenya, Mauritius coping with demographic and Ethiopia – more integrated in pressures. global supply chains would suffer inclusive growth will require several services, improving the efficiency of from rising trade tariffs/barriers. New policy approach steps.” These include both ‘product’ parastatals in utility sectors and Escalating trade conflicts in the With SSA’s growth remaining below and ‘labour’ market reforms to enhancing access to credit, as well as developed world could lead to a pre-crisis averages, national underpin structural transformation deepening trade and financial cumulative loss of 1.5 per cent in governments need to adopt of the region. Policies under former integration. SSA’s economic output over 2018-21 policies/reforms to raise medium- entail fostering private investment Major labour reforms include period (IMF data). The World Bank term output potential and strengthen and risk-taking by improved developing human capital, echoed, “Further escalation of resilience to risks. The IMF said, regulation and open competition, promoting digital connectivity and trade restrictions between major “Creating strong, sustained and ensuring reliable infrastructure better education and vocational training (emphasis on Sub-Saharan Africa GDP percentage growth (excl. Nigeria & South Africa) science/technology), and creating more productive jobs – thus 6 delivering on demographic 5.4 % dividend. The number of Africans 5 4.6 % reaching working age (15-64) might 4.4 % exceed 100 million during 2030-35 (IMF forecast). Furthermore, SSA 4 3.5 % should boost domestic tax receipts – currently among lowest in 3 developing world – and improve the efficiency of public spending to fund 2 growth-enhancing investments. In sum, Africa is a growing region of colossal natural wealth, however, 1 some years may see feeble growth as in 2016-17 caused by external factors. 0 As growth momentum gathers pace 2016 2017 2018 2019 driven by increased urbanisation and

Source: IMF Regional Economic Outlook, Oct 2018. demand for supporting infrastructure, future growth sectors are wholesale/retail trade, financial Top 10 SSA performing economies of 2018-19 services (including fintech), housing, utilities and transportation. Real GDP growth (per cent) 2018 “While there are a number of Real GDP growth (per cent) 2019 opportunities across Africa, the biggest opportunity is undoubtedly 9 8.5 the sizable and growing middle- 7.8 8 7.5 7.6 7.4 class. They are an empowered 7.2 7.0 7.0 generation, looking to consume 7 6.7 6.6 6.3 more and more products and 6.0 6.15.9 6.1 6.0 5.9 6 5.8 5.9 5.8 services,” noted Africa-focused 5 private equity firm DPI. Large SSA cities remain ‘consumer hubs’ where 4 per capita consumption is more 3 than double the national average, according to Mckinsey Global 2 Institute. It predicted the 1 business-to-business market in Africa could reach US$3.5 trillion by 0 Ethiopia Rwanda Ghana Cote d'Ivoire Senegal Tanzania Kenya Uganda Burkina Faso Guinea 2025, up from US$2.6 trillion in I Source: IMF Services Moody's Investor Source: & Poor's, Standard database, 2015 mainly in SA and Nigeria.

20 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S06 ATR Dec 18 - Jan 19 News 02_ATR - New Master Template 2016 07/12/2018 13:56 Page 21 S06 ATR Dec 18 - Jan 19 News 02_ATR - New Master Template 2016 10/12/2018 15:41 Page 22

NEWS | TRANSPORT

Six-axle MultiMAX semi-trailer: IVECO's updated list of sales and after sales all-rounder transport solution dealers as of December 2018. Algeria Kenya Ival S.P.A. Global Motors Centre Limited Zone Industrielle D'Extension Oued P.O. Box 43021-80100, Mombasa Smar Lot 88, BP 140, Alger, Algeria Kenya Tel:+213 217 548 94 Tel: +254 774 911 912 Web: www.ival.dz Web: www.globalmotorscentre.com

Image Credit: Faymonville Image Credit: Angola Libya IVECAR S.A EDRI - Import Iveoc Trucks And Estrada de Catete, Km 23 Spare Parts Av. Deolinda Rodrigues Fourt Round Road, P.O. Box 650 Sentido Viana, Luanda, Angola Misurata, Libya Tel: +244 916 652 751 Tel: +218 217 125 937 Faymonville’s new six-axle Web: www.vecauto.com Web: www.ivecoedri.com MultiMAX semi-trailer. Burkina Faso Mali ATS Truck Solutions Burkina Faso ATS Truck Solutions Mali (Africa Customers from P & L Machine Moving and Rigging in South Africa made Parcelle 08, Lot 04, Section 118 Mining Supply Equipment) a special trip to Belgium and Luxemburg to visit Faymonville facilities Secteur 30, ZAD Arrondissement de Zone Industrielle de Sotuba and get first-hand training on its new six-axle MultiMAX semi-trailer. Bodogodogo,13218, Ouagadougou BPE 4570, Bamako, Mali Burkina Faso Tel: +223 76 40 90 20 The fully steerable trailer on hydraulic suspension is equipped with Tel: +226 66 59 80 80 Web: www.africatruckservice.com timber floor, outriggers and hydraulic double ramps, which significantly Web: www.africatruckservice.com Morocco reduce the drive-on angle for any type of machinery. Thanks to its Cameroon Atlas Vehicules Industriels S.A. extendable loading deck, the company says the MultiMAX is a real ATS Truck Solutions Cameroun Route Principal N°1 Km 6 Ain Sebaa versatile all-rounder, making it the ideal tool for P&L’s abnormal Route de la base Navale, BP 344 Casablanca, Morocco Douala, Cameroon Tel: +212 5223 55070 transport and rigging activity. Tel: +237 650 10 51 52 Web: www.iveco.ma “I am very impressed with the facilities and quality of the product. We Web: www.africatruckservice.com Nigeria are looking forward to putting this trailer to work and excited to keep Côté d'Ivoire Motor Parts Industry Ltd. building a strong partnership with Faymonville“, says Gareth Lucas, ATS Truck Solutions Côté d'Ivoire 231, Moshood Abiola Way, Ijora directorfrom P & L Machine Moving and Rigging, who added he was Boulevard de Vridi, 18 BP, 3298 P.O. Box 198 Apapa, Nigeria Abidjan, Ivory Coast Tel: +234 177 537 03 looking forward to the unit being shipped, so it can soon fulfil its first Tel: +225 78 51 80 36 Web: www.mpi.com.ng transport tasks on South African roads and job sites. Web: www.africatruckservice.com Sénégal Democratic Republic Of Congo ATS Truck Solutions Sénégal Societe de Production d’Import et BP 313 Rocade Fann Bel Air COMETTO MSPE EXCELS IN HARSH d’Export S.A. (Prodimpex) Côté Felix Eboué, Dakar, Senegal Croisement des avenues marche et Tel: +221 777 400 706 CONDITIONS IN SUB-SAHARAN AFRICA Bas-Congo N° 3419 Web: www.africatruckservice.com Kinshasa, Gombe, D.R.C. Tel: +243 81 934 6432 Sudan Four modular combinations of Cometto self-propelled trailers MSPE Web: www.prodimpex.com Abbarci Engineering Company Ltd. 40t in side-by-side configuration have been involved in heavy duty Djibouti Ghaba Street movements for customer Marine Maroc. Khartoum Industrial Area Al Ghandi Automotive Group P.O. Box 1190 The project consisted of the transport of six diesel engines each Djibouti Free Zone Branch Tel: +249 183 472594 / weighing 215t and six generators each weighing 72t for the power P.O. Box 6406, Pbt 41B +249 183 580650 Republic of Djibouti Web: www.abbarcigroup.com plant of Kayes in Mali. The transport company, Marine Maroc, Tel: +25321356026 CTC Engineering Ltd handled this challenging project for its final customer Bolloré Web: www.alghandi.com Zubier Pasha Street Logistics on behalf of BWSC Denmark. Egypt P.O. Box 980, Khartoum, Sudan Tel: +249 187 144 000 “The MSPE convoy formed by eight axle lines has been coupled Armada Egypt Co. Togo side-by-side with other eight axle vehicles”, explains Daniel Delorme, 58 Syria Street, Mohandseen Giza Governorate ATS Truck Solutions Togo the CEO of Marine Maroc. “We reached a platform width of five Arab Republic of Egypt Zone portuaire, Route A3 metres and a payload of about 600t always assuring the safest Tel: +202 3539 2411 / 12 d'Akodessewa, BP 13755 Lomé, Togo Web: [email protected] transport conditions of the load. They were used for the final Tel: +33 (0)1 53 83 32 22 Ethiopia Web: www.africatruckservice.com movement of the project to position the engines inside the power Automotive Manufacturing Tunisia house on the job site, alongside the foundations.” Company Of Ethiopia (A.M.C.E.) Italcar S.A. Marine Maroc, based in Casablanca, is a major player in international Bole Subcity Woreda 06 Zone Industrielle Megrine logistics. The Cometto MSPE is part of their vehicle park since 2013. House No.306, P.O Box 5736 5.5 Km Route de Sousse GP1 Addis Ababa, Ethiopia Tunis, Tunisia, P.O. Box 2014 The MSPE convoy was formed Tel: +251-116 463352/53/54/11 Tel: +216 31 363 240 by eight axle lines. Gabon Web: www.italcar-sa.tn Libreville Service Auto Société Le Moteur Diesel BB3737 Zone, Industrielle Nomba 1 Avenue de Paris, 2033 Domaine, Libreville, Gabon Megrine, Tunisia Tel: +241 074 096 69 Tel: +216 71 427 507 Web: www.moteurdiesel.com.tn Ghana Société Tunisienne Sotradies Tanink (Ghana) Limited 14, Rue du Commerce Off Accra Tema Motorway Zone Industrielle La Charguia Light Industrial Area Comm. 12 B.P. 54, Tunis, Tunisia Box CE 11386, Tema, Ghana P.O. Box 1080

Image Credit: Cometto Image Credit: Tel: +233 (0303) 310631/2 Tel: +216 71 771 188 Web: www.taninkgroup.com Web: www.sotradies.com.tn

22 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S06 ATR Dec 18 - Jan 19 News 02_ATR - New Master Template 2016 07/12/2018 13:56 Page 23 S06 ATR Dec 18 - Jan 19 News 02_ATR - New Master Template 2016 07/12/2018 13:56 Page 24

NEWS | POWER

Togo and Eranove Group sign an agreement SOUTH SUDAN’S OIL DRIVE for a 65MW gas plant LEADS TOWARDS PEACE

The Togo president Faure Essozimna The African Energy Chamber reported it was Gnassingbé, Minister of Mines and encouraged by the progress made in South Energy, Marc Dederiwe Ably-Bidamon Sudan’s oil sector after the peace agreement. and Director General of Eranove Marc The success of the South Sudan Oil & Power Albérola signed a power generation 2018 conference on November 20-22, which

concession agreement for a 65MW Adobe Stock Image Credit: was attended by more than 750 participants electricity plant. representing upstream, midstream and The Kékéli Efficient Power plant, downstream sectors of the oil sector from which will be located in Lomé port, Africa, Europe, North America and the will provide power for 263,000 Middle East, is a step in the right direction, Togolese households. The Eranove the chamber says. group will develop and operate the It was encouraged by the ministerial plant while Group TSK will be delegations from many countries such as carrying out the plant’s construction. The new Kékéli Efficient Power Plant will be situated in Lomé Port. Equatorial Guinea, Sudan, Somalia, Saudi Siemens, which plans to be involved Arabia, Nigeria, Russia and Uganda. The in the electrification of Togo, will be providing the turbines, technology and maintenance services. success is an indication of South Sudan’s The gas plant will use combined cycle technology which makes it possible to produce more increased attractiveness for African and

electricity without extra gas consumption while limiting CO2 emissions. This is in line with the international investors, as the East African government’s agenda to boost the economy and meet increasing demand for electricial power. The nation works to ensure a stable peace and project will be financed by CFA Francs - the first for an independent electricity producer in Africa. has doubled efforts to ramp up production Marc Albérola, CEO of Eranove Group, said, “We are extremely proud to contribute in designing the and drill more wells. national strategy and implementing the National Development Plan by developing the new electricity “The presence of several international oil production unit alongside the Togolese Republic, and we thank the country’s authorities for their trust. companies in Juba was very encouraging and In order to ensure a successful quality public/private partnership, we have assembled an innovative shows that South Sudan is doing its best to pan-African financing mechanism denominated exclusively in CFA francs mobilised by regional restore the trust of the international institutions, as well as by renowned pan-European technical partners with Eranove, Siemens and TSK. investment community and should be The project is a perfect illustration of the model we want to promote in order to meet the challenge of encouraged by all parties,” said Executive access to electricity and water in Africa.” Chairman NJ Ayuk. Eranove already operates 1,247MW of generating capacity and is developing projects in Côte d’Ivoire, The chamber supported South Sudan’s Gabon, Madagascar and Mali, with the aim to bring 1,000MW to the continent. efforts to build a lasting peace, which resulted in a new peace agreement signed in October between rival factions. SOLAR PROJECT IN SENEGAL WINS AWARD “The local and international oil community has an obligation to support Phanes Group has announced Mbaye Hadj and his Gossas Solar Farm Project (30 MW) as the winner of the peace talks and the South Sudanese second edition of its Solar Incubator. The announcement was made at the “Unlocking Solar Capital: Africa” leadership to promote peace and conference in Kigali, Rwanda, where three finalists presented their proposal to a panel of international reconciliation. We call on the government to industry experts from responsAbility, ECREEE, Hogan Lovells, Phanes Group, RINA, and African continue its efforts in encouraging an Development Bank. enabling environment, promoting local “We are proud to announce Mr Hadj as the winner of this year’s Solar Incubator. It was a difficult decision content and prioritising the role of women in as we received a strong response of project proposals with the potential to positively impact their the oil sector,” said NJ Ayuk. communities. Our experience now in the second year of the incubator encourages us to continue with this South Sudan remains under-explored, initiative because there is a great deal of local talent on the continent who have the potential to benefit from despite being East Africa’s oldest and biggest such a platform,” said Andrea Haupts, COO of Phanes Group. oil producing nation.

BRIEFS

CGN EE chooses Greenbyte for wind assets Unity Bank moves to solar power

CGN Europe Energy has chosen renewable energy Unity Bank has agreed to work with Daystar Power management system Greenbyte Energy Cloud for to move the power supply of Unity Bank’s their wind and solar PV farms. branches across Nigeria from diesel to solar. Greenbyte will be integrating CGN EE’s wind and Unity Bank is one of Nigeria's retail banks with solar assets in Europe and Africa, amounting to a 240 branches across the country and the eighth total of 900MW. Olivier Texier, head of largest bank in Nigeria by business locations. engineering and O&M at CGN Europe Energy, said, Tomi Somefun, managing director of Unity Bank, "Greenbyte stood out for their service availability, said, “We believe that our transition to clean solar Image Credit: Image Credit: Adobe Stock their specialised features and for their worldwide Unity Bank Image Credit: energy solutions will help to provide a better Greenbyte will be integrating CGN EE’s Tomi Somefun, managing director of wind and solar assets in Africa. vision, in accordance to our global mission.” Unity Bank. experience to customers visiting our branches.”

24 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 07/12/2018 13:59 Page 25 S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 07/12/2018 13:59 Page 26

POWER | REPORT

Portable power remains integral to energy mix The outlook for onsite power in Africa remains positive despite the huge injection of funding into mainstream energy supplies in recent years.

nsite power remains an important part of East Africa versions (XW). The equivalent 60 Hz versions are OAfrica’s overall energy supply mix, Cummins’ East Africa joint venture, Car & General, also available in a range of voltages between something that looks set to continue for demonstrated the group’s new gensets powered 220V and 480V. the foreseeable future. by the QSX15G8 engine to customers All are powered by Cummins diesel engines For those industries seeking dependable power in Nairobi. and fully supported by the Doosan Portable in the face of an often erratic electricity supply – Car & General is the distributor for Cummins in Power dealer network for the region, from start- from small businesses right through to giant Kenya, Tanzania, Uganda, Ethiopia, Djibouti, up to servicing, maintenance and offshore oil rigs – it remains a critical tool in Seychelles, South Sudan, Rwanda, Somalia, Eritrea troubleshooting. maintaining safe and stable operations. and Burundi. “Sharing the same design and characteristics, the Moreover, with the development of mini grids The 500 kVA generator sets, manufactured in new generators offer robustness and reliability, high connecting isolated and rural communities across China, feature reduced noise levels, efficient fuel performance and a wide choice of features to meet the continent, it is also a niche that looks set consumption, automatic synchronising, and the needs of a very wide range of power applications for expansion. remote monitoring which allows customers to from prime power in remote areas to stationary The evolution of renewable technologies has keep an eye on the performance of their units in grid back up,” a Doosan statement read. likewise provided a whole new array of products generator from a separate location. Given the historical plight of Africa’s notoriously and solutions for end users seeking a reliable Another major player is Doosan Portable unreliable power sector, it is hard to overstate the onsite power supply. Power, which also released a new range of four importance of these and other similar units on That includes solar-based micro generators generators from 20-60 kVA for the Africa and day-to-day business activities. From small firms serving remote telecommunications outposts, Middle East regions, available in both 50 Hz and and households, through to the multinationals, which are now a relatively common sight in Africa 60 Hz versions. these gensets are keeping Africa ticking. and elsewhere. As well as construction, rental and agriculture, Even with the massive influx of funding for the the new generators extend the Doosan portfolio Finance sector power sector in recent years from international to a wider audience to cover applications such as Indeed, one recent Cummins project is supporting donors and lenders, the patchy coverage and home standby, telecommunications and back-up a part of Africa’s critical financial sector itself. geography of Africa bodes well for onsite power. power for small businesses – underlining the It provided standby power for the headquarters Agencies such as the African Development strength and depth of this market. of Standard Chartered Bank in Ghana, supplying Bank and US AID have prioritised investments in The four new generators – the G20, G30, G45 four of its 630 kVA generator sets. the energy sector, especially in new generation, and G60 – provide prime power outputs of 20, 30, The system will provide the bank’s head office transmission and the renewables sector. 45 and 63 kVA, respectively, and all four units are in Accra with standby power whenever Yet the scale of the onsite power business in Africa available as open units (XF) or sound attenuated interruptions to the grid supply require it. is equally vast and, it seems, still growing. Despite massive investment in the nation’s One major industry player, power infrastructure in recent years, it highlights Cummins Inc., has thousands of units the ongoing demand for onsite power solutions in operation across the continent. even in one of Africa’s more dynamic economies. It recently landed a new contract The four gensets – synchronised to come worth almost US$500mn to produce online within three seconds of utility failure – are diesel powered generators for the US Doosan Image Credit: installed in a purpose-built room on the ground Department of Defense to be floor of the Accra building. deployed at military sites worldwide. The main contractor for the project was Today, it says there are more WBHO/MBS of South Africa, while CKR Consulting than 24,000 of its Advanced Engineers acted as the electrical consultant to the Medium Mobile Power project. It represents just one part of Africa’s Sources (AMMPS) generator onsite power make-up – an sets in use in Africa, area that remains integral Afghanistan, South Korea to the smooth functioning and the USA. of the continent’s And innovation likewise economy. I continues at pace in this

sector, driven by all the Doosan’s G45XF unit. By Martin Clark leading players.

26 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 07/12/2018 13:59 Page 27 S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 07/12/2018 13:59 Page 28

POWER | REPORT

Lagos in talks with Golar LNG to acquire FSRU Wale Oluwo, Lagos State commissioner for energy and mineral resources, talks about negotiations to acquire an FSRU to meet the city’s power supply needs at the DLO Africa Power Roundtable event in London.

he Lagos State Government The FSRU Toscana, which is permanently says it is in discussions with moored off the Italian coast in Tuscany, is T similar to the vessel that might be used Golar about providing a offshore in Lagos. floating storage and regasification unit (FSRU) to deliver off-grid energy security for the region. A FSRU in the city’s free trade zone could meet the vision of the region’s US$3bn gas-to-power programme. “A floating storage special unit has the capacity to regasify 750 million standard cubic feet of gas per day - that's enough to power 3,000MW,” Wale Oluwo, Lagos State commissioner for energy and mineral resources, said at the DLO Africa Power Roundtable event. The government was negotiating Image Credit: Commons/Wallacepc67 Wikimedia with Golar to acquire one of its that LNG could be used in Lagos. issues such as militant attacks, gas from the national grid. vessels; the Tundra or the Golar Spirit. “The attraction for me is that I can could be transported via a new The programme involves also “We have got very far with our freeze the price for two to three pipeline into the city. expanding its energy mix with waste- negotiations with Golar LNG Ltd – a years and NLNG are very receptive to “The intention is that if the FSRU is to-energy power and deploying major supplier of energy – which it. We are working out the economics pumping gas and the gas is coming power plants in strategic locations in particularly deploys FSRUs in Africa. so that they do not lose money and from the Delta area as it enter Lagos, the state within three to five years. We wanted the best supplier and in we do not also pay too much.” I have about of 20km of pipeline to Up to 1,000MW will be delivered the case of Golar, they gave us the It is hoped the region’s US$3bn construct. This means that anytime during the first phase within 12 option to either choose from the gas-to-power project, known as the that the gas from the southern part months and the remaining 2,000MW Golar Tundra which was in Ghana Embedded Power Supply shuts down, we can close the will be delivered in the second and earlier this year or the Golar Spirit Programme, which aims to provide pipeline and the FSRU can replace third phase. which has finished its assignments 3,000MW of electricity, will kick start production,” adding that anyone who in Brazil.” the deregulation of the Nigerian uses gas in Lagos for whatever Mitigating financial risks The Golar Tundra is able to Power Sector from Lagos. The state purpose, power or manufacturing, Oluwo said the Central Bank of produce 750 million cubic ft/day of receives about 25 per cent of the can have 24/hr gas supply. Nigeria had put together gas and the Golar Spirit is able to power generated from the national The gas-to-power project, also mechanisms to mitigate any turn out 250 million cu ft/d. grid. known as the Embedded Power financial risks, adding “we have the Oluwo also said the state was The commissioner further Supply Programme, aims to kick economy to support the programme finalising talks with Nigeria LNG explained the FSRU’s location to the start the deregulation of the and the capacity”. (NLNG) to buy liquefied natural gas main gas line was important Nigerian Power Sector from Lagos. The commissioner praised the from its facility in Finima, Bonny because in the event of any The state currently receives about 25 DLO Roundtable event in London on Island. disruption in the Niger Delta due to per cent of the power generated 30-31 October describing it as “an “We have gone into extensive eye-opener” because it was looking negotiations with Nigeria LNG,” at how to bring power to Africa. he said. We have the economy to support the “I know clearly that for The commissoner added he is economies to develop you need hoping to capitalise on NLNG’s Train programme and the capacity ” three major commodities in regard 7 expansion project, involving two to energy, you need power, trains with a total capacity of 8 WALE OLUWO, LAGOS STATE COMMISSIONER FOR ENERGY AND petroleum products and need gas. million tonnes per annum expected MINERAL RESOURCES You need these three items to power to start in 2024, whereby a part of the economy. Unfortunately, the

28 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 10/12/2018 14:06 Page 29

REPORT | POWER

reality of is that these three areas in investment opportunities are most countries in Africa haven’t highlighted in an environment been managed in a way to enhance created for you to bring money in. productivity and increase supply.” Reforms don't make sense until the He admitted it was ironic in private sector in your country can Nigeria, as the eighth largest start to put its money into sectors exporter of crude oil and major gas that will create productivity,” adding producer, that until now it couldn't that local investors are important to install gas-to-fire power plants attract foreign investors to come. despite the country having He stressed the second major 11,000MW of installed power – only issue the conference should address 3,500-3,800MW reaches consumers. was how to handle foreign exchange Providing some context to the challenges as many African ACP Image Credit: Themibisile Majola, South Africa’s deputy minister for energy, and Wale Oluwo, power supply problem, he said that currencies were not stable, relative Lagos State Commissioner for energy and mineral resources. it was related to the mindset and to international currencies. “In the models implemented after many African countries today, they Lagos is the most populous state and hydro projects. “The region Nigeria and other African countries are subsidising it, which at the end with 22 million people and is the plans to commission 4,667MW – this gained independence. “In my own of the day is not going to be commercial hub of the whole of demonstrates our investment country we were made to sustainable and we are going to go West Africa. It accounts for almost a environment which has changed for understand that the government full circle and come back from quarter of Nigeria's US$493bn GDP, the better,” adding that gas is provided for all the utilities; where we started from,” he said. which is more than Ghana planned to be part of the region's telecoms, energy, railway, aviation energy mix. etc, and there was legislation to She said South Africa was open prevent competition, so consumers In 2018, a total of 3GW was added to our for business and creating policy got used to getting services without certainty was critical to attracting paying competitive prices for them. generation capacity, which was funded investors. As a result, sectors were destroyed “For example, we hope those who and efficiency disappeared and through private and public investors.” want to produce components for businesses were not coming – this is wind towers that they wouldn’t be where we are today.” THEMIBISILE MAJOLA, SOUTH AFRICA’S DEPUTY MINISTER concerned about what happens to That’s why he stressed it was FOR ENERGY them if the bid window for wind was important to continue along the only going to happen in two years path of reform such as around time. They should be able to say that changing mindsets and vehicles that “I’d encourage the conference to (US$116bn) and Kenya (US$86bn). It they are going to bid in Botswana or make the sector unattractive. In continue to look at those difficulties is the only oil and gas producing Angola, so that the factory will power, he continued, pricing was that makes it hard for Africa to state outside the Southern Delta. continue to be operational and they still an issue. attract investment in a quantity that won't have to stop and start. This “For my country, leakages in ordinarily we should be attracting. Varying access to energy harmonious way of working is making respect to the completion of the We can do that in relation to the levels sure that we have the economies of business circle. You put money in it macro variables, particularly Meanwhile, South Africa's deputy scale but also have some certainty and dont get money to come out. exchange rates, inflation rate, minister for energy, Thembisile around it, allowing people to bid in Gas loss in technical and interest rate, debt profile and the Majola, said Africa's economic Botswana or Zambia. As long as you commercial losses, gas loss in power balance of government issues. It is development, industrialisation and have registered with the South Africa jets, gas loss in all sorts of thefts that when we put this together and the ability to create jobs was Company Registration (SACR) you can makes the sector unattractive so we compare it to the infrastructure intrinsically linked to access to energy. work anywhere.” must continue to improve those investments that you begin to see a She warned the region’s access “Forums like the DLO Africa leakages and improve competition moderation of macro variables that levels by different countries were Power Roundtable are very in the power space and make sure can drive business into Africa, the very low in comparison to other important to us. You get to learn that at every level of the chain, power sector and increase supply.” international countries and run the about innovative solutions that have risk of not meeting the UN's come up in other areas and the Comparison of estimated power supply sustainability targets, but possible steps we can take to have a Location Population (million) Power Generation (MW) commended the southern region for win-win situation. Egypt 88 30,000 having an installed generation “The time for investment into the South Africa 53 50,000 capacity of around 68GW. energy sector in Africa is now. Energy Ghana 30 3,900 “In 2018, a total of 3GW was is the golden thread that runs Kenya 48 2,300 added to our generation capacity, through the economy that stimulates Nigeria 170 4,000 which was funded through private and sustains economic growth.” I Lagos 22 900 and public investors,” the minister (Source: Lagos State Government) said concerning recent solar, wind By Samantha Payne

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 29 S07 ATR Dec 18 - Jan 19 Report 03_ATR - New Master Template 2016 07/12/2018 13:59 Page 30

POWER | REPORT

Africa is changing into an innovative region Yoven Moorooven, CEO of ENGIE Africa, discusses the central role that innovation is playing on the continent today.

he last decade has seen a Africa. The purpose of this platform Tquick succession of reports and would be to capture both internal speeches on Africa’s “rickety and external ideas for new solutions infrastructure, skills shortages and a Engie Image Credit: which focus on improving the lives reliance on commodities”. This and businesses of African customers. narrative however has changed in The platform will help to rapidly the last couple of years and the develop ideas in pilot applications, challenges that previously and bring them to the market hampered growth and development quickly. It will be a place where are now a catalyst for innovation. challenges become opportunities. This is the result of thousands of Anchor cage II-11 (wind farm) in Ras Ghareb, One example where a uniquely entrepreneurs and innovators in Egypt was developed by Engie and other ‘African’ character can be developed Africa rising to meet the challenges. players such as Orascom Construction. is when it comes to mobility in Among the 10 countries with the Africa. This mobility is currently highest number of start-ups in the finance their daily energy needs on technology, as well as the spread of characterised by extensive use of entire world, five are in Africa an affordable plan. If Africa’s mobile payment systems, have cycles, motorcycles and small (according to the Global sunshine is the spark that gives this made innovative renewable energy collective transport solutions Entrepreneurship Monitor), and service life, mobile money is the solutions increasingly viable. This is typically used for small distances in investment into African tech start- lifeblood keeping it alive. Emerging largely met with an eagerness and and around cities. The development ups hit the highest levels in 2017. innovations in Africa, such as Fenix willingness among customers to of electric vehicles for instance Those positioned in the centre of International’s, have the potential to adopt innovative energy solutions offers the chance for mass this innovation and positive change transform the continent. which match their needs. electrification of these urban have shifted in approach. While at In much the same way that The challenges and opportunities transport choices. Another way first many innovators in Africa were mobile banking has catalysed in Africa are very different from innovation can be used is to reacting to the lack of jobs and were growth, energy is critical to this elsewhere, and African countries will address the growing water scarcity looking for avenues to sustain transformation and will unlock need innovation tailored to their problem in Africa – decentralised themselves, now innovators are many more innovations. When we specific needs more than anything energy production could be challenge-driven. “We are moving speak to our stakeholders who range else. Therefore the challenge for combined with very small-scale away from creating jobs to from African regulators and those seeking to promote water desalination and purification identifying challenges and solving governments to lenders, banks and transformation in Africa is to find technology to offer not only them,” says Barbara Birungi, the investors as well as domestic and support innovations which are electricity but also drinking water. director of Ugandan tech hub and businesses and local communities – not ‘imported’. These must be ideas, At ENGIE Africa, our core purpose incubator Hive Colab. This approach their message remains constant: products and solutions which are is to create shared value for all our has a wider impact on the there is an urgent need for reliable, developed on the ground to meet stakeholders by developing business betterment of the population, as safe and affordable energy solutions specific needs and constraints. models that ensure sustainable energy opposed to improving the livelihood and infrastructure. African economies will also need access and meet the needs of African of the few employed. Innovation will be at the centre of innovations that are about developing communities, industries and Many of these innovations rely on meeting this demand for energy. completely new business models. households. Africa’s energy sector, developments in digital and new Africa is a place where unique Innovation on the ground – by with its enormous need for power technologies. One of the most well- challenges such as sparsely Africans, for Africans – is vital to and its readiness to adopt innovative known innovation success stories in populated regions, extreme climate success. This will involve large solutions, presents a historic Africa is, of course, the rapid spread conditions and political unrest have energy providers prioritising opportunity. The African continent is of mobile money. African countries made traditional energy provision partnerships with local businesses to a perfect amalgamation of challenges account for more than half of all less possible. Hence, a dramatic cost develop a platform to boost and opportunities. As people with mobile money services worldwide. reduction in solar and battery innovative business development in skills and enthusiasm are joining This has in turn unlocked many new together, the government and business models and innovations, regulatory bodies are increasingly such as that of Fenix International, We are moving away from creating jobs to advocating innovation. Together, an ENGIE company which provides these factors combine to give hope solar home systems on a lease-to- identifying challenges and solving them” that countries across the African own basis. Customers make daily continent can be in a position to micro-payments via their mobile to BARBARA BIRUNGI, DIRECTOR OF HIVE COLAB develop world-leading innovations. I

30 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S08 ATR Dec 18 - Jan 19 News 03_ATR - New Master Template 2016 07/12/2018 14:00 Page 31

POWER | SOLUTIONS

CONTRACTORS SAVE SPACE USING WEG CWB RANGE OF CONTACTORS

Engineered to provide the most compact Another innovative engineering feature is contactor solution, the WEG CWB range of the use of WEG’s Zero-Width mechanical devices offers a width space saving of up to 18 interlocking system. Traditionally contactors per cent. Add to this that the range was use a mechanical interlock device which is developed according to IEC 60947 and UL 508 WEG Zest Image Credit: external to the contactor. The Zero-Width international standards and you will system facilitates quick and easy mechanical understand why this new generation interlocking between contactors, without the contactor is finding such favour with need for tools. In addition, this feature allows electrical contractors. the user to build a reversing starter up to 38A Developed in two frame sizes, the new WEG with a total width of only 90 mm. The WEG Zero-Width mechanical interlock specifically CWB line of contactors meets a range of designed for applications requiring mechanical Built-in front 1NO+1NC auxiliary contacts industrial and domestic applications interlocking between contactors. not only further enhance the space saving requirements. The first contactor in the range, benefit of the WEG CWb contactors, but also covering up to 38A, has a width of only 45 mm Significantly, the space saving offered by the eliminates the need for contractors to while the second contactor, ranging from 40 to WEG CWB contactors, especially when purchase additional auxiliary contacts. This 80A, has a width of 54 mm. Two mounting compared to similar product ranges, will allow feature also offers greater flexibility as it options, standard DIN rail or oblong mounting contractors to use six contactors where facilitates optimisation of the internal space holes makes interchangeability easy. previously only five could be used. in electrical panels.

Hatz presents New Silent Pack at Eima

At the Eima in Bologna, Motorenfabrik Hatz presented the New diesel particulate filter (DPF) is available for the EU Stage V- Silent Pack for the H-series of three and four- compliant Hatz TICD models. The maintenance hoods cylinder engines for the first time. are adapted to the dimensions of the three- and The plug-and-play solution combines sound four-cylinder engines. insulation of more than 60 per cent with The New Hatz Silent Pack has protection against contact, rain, dirt or been redesigned from the ground vandalism. It is based on open power unit (OPU) up and offers significant benefits to Image Credit: Hatz Image Credit: engines and can therefore be ordered as both machine manufacturers and complete and ready-to-install variants ex works. operating companies: The low The New Silent Pack can also be used to retrofit weight of less than 100kg supports existing machines. in particular manufacturers who The New Silent Pack has a modular structure need to keep their machines as light and is suitable for the Hatz H-series engines as possible. In the three-cylinder TI 3H50TI, 3H50TIC, 3H50TICD, 4H50TI, 4H50TIC, and TIC model versions, the 4H50TICD. Thanks to the universal design, it is encapsulation weighs only 91kg, in the very easy for machine manufacturers to include the largest version – the Hatz 4H50TICD – New Silent Pack in the machine structure or to equip the the encapsulation weighs 98kg. During machines with different engines with the same development, the encapsulation encapsulation. Virtually all parts are identical for all The universally applicable Hatz H-series Silent Pack dimensions were reduced by more than 10 requires less space in the machine. H-series engine variations. A suitable cover for the per cent compared to the predecessor.

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 31 S08 ATR Dec 18 - Jan 19 News 03_ATR - New Master Template 2016 07/12/2018 14:01 Page 32

NEWS | CONSTRUCTION

Kenya receives new US$267mn from AfDB CONCOR WESTERN CAPE The African Development Bank (AfDB) EYES TALLEST BUILDING has approved two loans worth PROJECT US$267mn to complete the construction of the Thwake Dam on Despite the troubled times in the construction the Thwake River in southern Kenya. industry, Concor Western Cape continues with This is a strategic water supply a range of quality projects in and around Cape project for the large semi-arid area of Town, where the company’s legacy has been Makueni county and surrounding stamped for more than a century. regions, including the new “Our close relationship to developers, technology city of Konza. The loans – consultants and other clients over many years US$218mn from the AfDB and ensures that we are always aware of what is US$49mn from Africa Growing happening in the market, and what the Together Fund (AGFT) – were industry requires of us,” Mark Fugard, requested by the Kenyan authorities managing director of Concor Western Cape, and were approved on 14 November. says. “Even with conditions being depressed, Image Credit: www.konzacity.go.ke/resource-center/gallery This additional support follows a An artist’s impression of Konzo tech city in Kenya which will benefit we have secured work where we can deliver US$86mn loan granted by the bank in from water supply from the Thwake Dam. value with some of the finest skills and teams 2013 to start building the dam as part in the business.” of the Thwake Multi-Purpose Development Programme (TMWDP), which aims to provide drinking Recently completed projects include the water, hydroelectric energy and irrigation. Signature Lux 1 hotel, an 80-key Completion of the 80.5 m high multi-purpose dam will enable the storage of 681mn m3 of water, of establishment outside the waterfront area in which 625mn m3 will be used for electricity production and downstream irrigation of agricultural land; an historic building whose situation precedes 22mn m3 for upstream irrigation and 34mn m3 for human use. Construction in the initial phase of the even the reclamation of the foreshore. Work TMWDP project should be completed in December 2022. has now begun on the Signature Lux 2, a This will be followed by three further phases: The construction of hydraulic plants to treat up to larger hotel with 167 beds in the central 34,600 m3 of water for household use for 674,700 rural inhabitants and up to 117,200 m3 for 640,000 business district. residents in the technology city of Konza, hydroelectric energy production and 40,000 ha of irrigation. “Perhaps one of the most exciting current The AfDB’s US$3.6bn Kenya portfolio comprises 33 operations, of which 22 per cent account for projects is 16 On Bree,” says Fugard. This will water and sanitation operations. be the tallest residential building in the city centre and is only slightly under the height of Portside Tower, also part of Concor Western INCREASING PROJECTS TO MEET BUILDING GAPS Cape’s legacy in Cape Town. It will include two levels of retail and several levels of parking, Accelerating solutions to Africa’s infrastructure gaps must be taken seriously if Africa is to realise the and will reach 120 metres high, looking onto aspirations of its people outlined in the continent’s blueprint for development, Agenda 2063, and the Bree Street. There will be 38 levels in total, global agenda for sustainable development, said the United Nations Economic Commission for Africa accommodating 380 apartments of various (ECA) in a statement during the fourth Programme for Infrastructure Development in Africa (PIDA), in sizes.“On the Atlantic seaboard, we are busy Victoria Falls, Zimbabwe. with two exciting high-end residential Zimbabwe’s state minister for Matabeleland North Province, Richard Moyo said the acceleration would developments which are really setting the add impetus to the continent’s integration process. “We need to have the right infrastructure mix and standard for luxury living in Cape Town,” he align our national infrastructural projects to the PIDA programme for collective gain,” he added. says. One is a large seven-storey home on NEPAD CEO, Ibrahim Assane Mayaki stressed the need to, “continue holding a constructive dialogue Nettleton Road in Clifton, and the other is the with all the partners, including the private sector so that we can deliver concretely”. Aurum development in Bantry Bay. The latter The African Union’s infrastructure director, Cheik Bedda, emphasised the importance of good comprises eight Aurum Presidential governance to promote infrastructural development that will impact the continent’s economies. Residences along Victoria Road towards the EU and GIZ representatives spoke in support of Africa’s quest for an integrated infrastructure network. ocean’s edge.

BRIEFS

Lagos-Ibadan road due for completion by 2021 Kenya electrifies SGR

Contractor firm Julius Berger has given State-firm Kenya Electricity Transmission assurances to the Nigerian Senate that the Lagos- Company (KETRACO), has began plans to electrify Ibadan road will be completed by 2021. the US$3bn Standard Gauge Railway (SGR). It was meant to be finished in 2017 but was Adobe Stock Image Credit: It plans to start work on 12 transmission lines and delayed due to lack of funds. 14 substations along the SGR line. According to local media reports, Senator Kabiru “The main purpose of this venture is to ensure that Gaya disclosed the cost of infrastructure had been when the SGR switches to clean energy power increased by the federal government from source, the supply will be reliable and sufficient for Image Credit: Adobe Image Credit: Stock US$1.3mm to US$1.6mn. He added the Apapa not only the train but other facilities along the The Lagos-Ibadan road is due for KETRACO is planning to electrify the completion by 2021. Wharf Road was due for completion in December. US$3bn Standard Gauge Railway. Mombasa-Nairobi economic belt,” said KETRACO.

32 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S08 ATR Dec 18 - Jan 19 News 03_ATR - New Master Template 2016 07/12/2018 14:01 Page 33

REPORT | CONSTRUCTION

Population drives demand for oil and gas projects Could a renewed climate of optimism push investment towards EPC projects, especially in North and West Africa? Image Credit: David Stockwell/Flickr David Image Credit:

A 60,000 bpd capacity refinery will be built in Uganda.

he decline in the oil price had an opportunity to develop local EPC sector from Uganda comes in and the East Africa region.” Tmixed effects along the talent and meet local content the form of a joint venture led by Meanwhile, in North Africa, engineering, procurement and requirements. the Ugandan government and the construction for the Algerian gas construction (EPC) value chain – it One such example is AECOM Albertine Graben Refinery sector received a boost when KBR increased the profit margins Uganda, which delivers Consortium (AGRC), and comprises was awarded an EPC and project downstream in Europe, while in the infrastructure projects to a range of YAATRA Ventures, Baker Hughes, a management services contract last US, it led to an over-supply of end- industries, including oil and gas. The GE company (BHGE), LionWorks year by JVGAS, an ambitious joint product downstream. Overall, the company’s managing director for Group and Saipem. A project venture of Sonatrach, Statoil and BP. slump was not great news for Uganda, Bridget Ssamula is upbeat framework agreement was signed in Under the terms of the contract, midstream operators, but upstream, about the opportunities available. April this year to construct a 60,000 KBR is providing detail design there were opportunities to acquire “The largest opportunities are in bpd capacity refinery with an engineering, procurement services blocks cheaply and wile away the the oil and gas sector, where estimated project value of US$3bn. as well as construction management low price era exploring in readiness AECOM’s global skills, expertise, and The AGRC will have each member at the major gas developments at In for when the prices increased again. project experience, coupled with our undertake a specific role during pre- Salah Gas and In Amenas. With prices hovering at around local know-how, and a demonstrated FID activities and EPC of the Moving away from oil and gas, US$60, is the time right for commitment to local content, are refinery. Angola, a heavily oil-reliant increased EPC investment? key strengths,” Ssamula said. Ronald Mincy, CEO and managing economy is looking to increase the For Africa, industrial growth, Increased private sector partner of LionWorks, said, “This is a use of renewables in the energy mix increased urbanisation, population involvement is helping the EPC unique opportunity to work with with US$18bn of investment in this growth and a growing middle class sector, according to Ssamula, “This Uganda on a transformational sector planned by the government in multiple markets are driving has opened up opportunities for project that will provide jobs and between now and 2025. The demand for oil and gas and this various sectors that support the skills to the country through hydroelectric generation projects should, in turn, drive investment in construction and services industries.” improved access to substantially programme will enhance capacity EPC projects. The refinery sectors of Another sign of optimism in the cleaner refined products for Uganda and provide opportunities in for North and West Africa are lacking construction contracts. Other investment but a renewed climate of countries where construction optimism could push more money This is a unique opportunity to work with opportunities could grow in the towards these projects and facilitate renewable energy sector include their construction. Uganda on a transformational project that Botswana, Ethiopia, Ghana, There are plenty of companies Kenya, Mauritius, Morocco, across the continent keen to will provide jobs and skills to the country ” Mozambique, Nigeria, Senegal, promote their services to the EPC South Africa and Zambia. I market and, for African-owned-and- RONALD MINCY, CEO AND MANAGING DIRECTOR OF LIONWORKS operated companies, it represents By Georgia Lewis

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 33 S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 34

CONSTRUCTION | REPORT

The new Ciber plant brings the number of total plants that are owned by Actop Asphalt to four. Image Credit: Actop Asphalt Image Credit: Investing in quality machinery to make roads safer To meet the asphalt needs of a newly-awarded road rehabilitation project in the Mpumalanga area, asphalt specialist, Actop Asphalt invests in a new Ciber continuous mobile plant.

hen contracted to supply hinged on its relentless focus on reliability and quality of its asphalt cent below the average of other W38,000 tonnes of hot mix quality asphalt production, according supply. The very same core principle asphalt plants of its class size when it asphalt for the Bambi- to managing director, Francois Kemp. informed the decision to invest in a comes to cost of transportation. Lydenburg road in Mpumalanga in “As a result, we have done new, technologically-advanced Ciber “This is complemented by less time eastern South Africa, Actop Asphalt, extremely well in the three years of Inova 2000. for mobilisation and assembly on part of the Actophambili Group, our existence. Our early success has, site,” says Kukard. “The plant’s went straight into the market for a to a large extent, hinged on our Critical drivers mobility is its key strength. It can new asphalt plant and purchased a affiliation to the larger Actophambili A major driving factor in the buying simply be hauled to site on two new Inova 2000 continuous mobile Group, a major player in the road decision was the plant’s “super trailers, get plugged in, start asphalt plant, manufactured by construction sector in South Africa,” mobility”. “We were looking for an production and easily Ciber, part of global road says Kemp. While almost 90 per cent asphalt plant that we could install in a decommissioned and commissioned technologies leader, Wirtgen Group. of Actop Asphalt’s work stream has very short space of time,” says Kemp. again onto the next site.” The unit is the first of the new Ciber come from Actophambili Roads in The Ciber 2000 fits the bill due to its Rudi du Toit, operations manager range to arrive in South Africa. the past three years, the pattern has high production capacity – 200 tonnes at Actop Asphalt, has already The new plant, which can produce started to change in recent months per hour – and its compact build; it experienced the benefits of the new up to 200 tonnes of asphalt per hour, with a sturdy flow of external comes in just two units. This is in stark plant. While full production is yet to is a contract-specific investment to contracts. Kemp reiterates that the contrast to some of the existing plants start, the commissioning of the plant service the Bambi-Lydenburg road quality of the product is the in the stable, which come in six units, only took seven days. “With some of rehabilitation project over an 18- company’s major competitive edge. but only producing 120 tonnes per the competitor plants, you are month period. Actop Asphalt will Quality is the mantra at Actop hour. “The compact nature of the looking at up to a month to put it up. supply asphalt to its sister company, Asphalt, the figure of merit – and is plant translates into lower cost of The Innova 2000 takes only seven Actophambili Roads, a specialist road a core parameter that is sought in transport when moving from one site days to mobilise and commission, surfacing contractor that has been every aspect of the company’s to the other, as well as the lower area which translates into three weeks of subcontracted by the main business. And that also extends to its and cost of installation,” says Kemp. extra production when compared to contractor on the project, Klus Civils. equipment needs; Actop Asphalt According to Waylon Kukard, sales other plants,” says Du Toit. never compromises quality of its manager at Wirtgen Group South Du Toit, who was recently part of Growing capacity machinery, which is central to both Africa, the Ciber 2000 is about 60 per a South African contingent that The new Ciber plant brings to four made the trip to Brazil to witness the total number of asphalt plants in Ciber’s innovations first hand, also Actop Asphalt’s stable in the three Our early success hinged on our affiliation makes special mention of the years of its inception, which is EasyControl system, an intuitive testimony to the company’s strong to the Actophambili Group a major software which affords total control growth trajectory in a very short – of all the production processes. “It period of time, in the face of a construction player in South Africa ” allows for automated control – constrained construction market in without operator interference – of South Africa. The company’s sturdy FRANCOIS KEMP, MANAGING DIRECTOR, ACTOP ASPHALT the burner flame and other growth over the past three years has components,” concludes Du Toit. I

34 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 35

CONSTRUCTION | NEWS

African Development Bank grants US$20mn loan for ring-road project in Cameroon

The African Development Bank (AfDB) has The road project is in line with the approved a US$20mn loan to the Republic of government’s Growth and Employment Strategy Cameroon to finance the construction of a Paper (GESP) 2010-2020, to build an integrated ring-road project in the north west province of and efficient transport network at low cost that

the country. Adobe Stock Image Credit: covers the entire country opening the country to The ring-road project, which falls under phase neighbouring countries to effectively enhance three of the country’s Transport Sector Support economic growth and reduce poverty. Programme, aims to improve the movement of The Transport Sector Support programme goods and people. It will also strengthen the under which the project falls is also consistent foundations for strong and sustainable growth with Pillar I of the Country Strategy Paper (CSP) by promoting domestic and regional trade, the 2016-2020 for Cameroon. bank said in a statement. Cameroon’s northwestern region has The loan for the 365 km ring-road is the enormous economic potential, particularly in bank’s third intervention in the implementation agriculture, which stands to benefit from the of this important road network rehabilitation road. Other lucrative sectors include livestock and upgrading project. The loop road crosses and fisheries; tourism, particularly the natural five of Cameroon’s seven divisions of the north landscapes such as the Menchum Falls, Lakes west region and includes several links to the Awing, and the Mbengwi Caves. Nigerian border, it added. The project is expected to have a impact on The project will include institutional support transportation – reducing travel time; an for the transport sector and related works such increase in traffic of passenger and goods; foster as the development of rural roads, the job creation for women and work for 30,000 rehabilitation of socio-economic infrastructure African Development Bank has approved a US$20mn youths. The road will result in savings on vehicle for improving women and youth living ring-road project to improve socio-economic growth in operating costs; an increase in household the north west province of Cameroon. conditions. income and reduction in post-harvest losses.

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 35 S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 36

CONSTRUCTION | SCAFFOLDING

Many contractors in Africa have used bamboo or wood as an alternative to standardised formwork. Image Credit: Adobe Image Credit: Stock Reaching the heights With Africa’s construction sector showing ever greater ambitions, the challenge is on for formwork and scaffolding providers to respond.

dynamic economy across de la Hoz and Hakim Benjelloun. opening of a new operational That includes critical Amany parts of Africa, and a The 55-floor building is set to be branch in Sfax, Tunisia. infrastructural works, such as the lively construction sector, are completed by mid-2022 and will It comes hot on the heels of Algerian section of the trans- together driving the demand for include a luxury hotel, apartments, another branch in Algiers, where the Saharan highway connecting Algiers formwork and scaffolding solutions. office space and a viewing terrace at company says it has had a ‘positive with Lagos, Nigeria, as well as the These are essential services for all the top. experience’ so far. expansion of Algiers port. major projects, or where any work And, it seems, while activity is Morocco, Tunisia, Egypt and Across the border, its activities at height is required. strong on all sides of the continent, Algeria are all seeing a revival in have also included work at Tunisia’s That includes flagship new builds North Africa has shown itself to be investment, most visibly with the Enfidha Airport. such as Kenya’s The Pinnacle in especially attractive right now. opening of new luxury hotels by the Condor has also supported various Nairobi – set to become the tallest After the tumult of the so-called likes of Hilton, Marriott, and others. other civil works projects elsewhere building on the continent when Arab Spring in 2011, businesses are Announcing its plans for Tunisia, from the Gibe III dam in Ethiopia, completed. making up for lost time with major Condor said that the general growth right down to the construction of the Work is also now getting investment decisions being taken by and development of Africa in recent Nelson Mandela Children Hospital in underway on what will be Morocco’s banks, hotel chains and other major times means it has been able to Johannesburg, South Africa. tallest skyscraper, in the capital businesses to expand operations, “commit to the latest construction Condor said in September that the Rabat. The Bank of Africa tower, resulting in an uptick of new builds. technologies, especially in the main driver for its African push was which will stand at 820ft tall, will It’s good news for the region’s infrastructure and civil construction to provide more timely and direct become the second-highest major scaffolding suppliers. fields”. engineering support, across an area skyscraper on the continent behind The company has been stepping reaching from the Mediterranean the 984-feet Nairobi project. Condor spreads its wings up its profile across the African (Algeria, Tunisia and Morocco), to the These are major showcase Among them, scaffolding and region generally over the years, the Maghreb and out into West projects for all involved, including formwork firm, Condor, recently working in cooperation with local Africa (citing Senegal, Côte d’Ivoire, the scaffolding teams making the announced that it would strengthen companies in major markets and on Benin, Cameroon, Guinea, Mali and work possible. its presence in the area, with the selected projects. Mauritania, as markets). The two buildings will both outstrip the previous tallest building Safety, standards and record held by the 732-feet Carlton We are committed to the latest ambition Centre in Johannesburg, South Africa. Other major players with a strong The new Rabat skyscraper is being construction technologies, in the footprint in the Africa market built by construction firms BESIX include Peri, Layher, ULMA Group and Travaux Generaux de infrastructure and civil construction fields ” Construction and RS Group. Construction de Casablanca (TGCC), At a time when Africa’s and was designed by architects Rafael CONDOR construction industry is becoming

36 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 37

SCAFFOLDING | CONSTRUCTION

An artist’s impression of The Pinnacle in Nairobi.

ever more ambitious, it seems good showcase for the continent’s growing Image Credit: White Lotus Group Lotus White Image Credit: timing for all the major players. construction industry prowess. And this is an industry where Standards look set to rise as reputations count for a lot, with so authorities respond to the much at stake. challenge, alongside deepening Earlier this year, three South involvement from the likes of African construction workers were Condor and others. hospitalised after being injured According to forecasts, the global when formwork collapsed on them construction scaffolding rental in KwaZulu-Natal, underlining the market is expected to grow at priority on safety at all costs. around 5.32 per cent a year through The roll out of more mega projects to 2022. is likewise prompting officials to While the more developed markets regulate and set standards for of Europe, Asia and North America formwork and scaffolding, as well as will provide the bulk of any work and across all other areas of construction, activity, it is possible that Africa will equipment and building materials. offer the greatest growth potential Many contractors in Africa have given the continent’s chronic long- traditionally used bamboo or wood term under-development. as an alternative to standardised That opens the door for more formwork. investment, competition and a Across the border, Mozambique sector more committed to safety recently opened its Maputo-Katembe and quality than ever before. I bridge, Africa’s longest suspension bridge at 3km long, another By Martin Clark

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 37 S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 38

SOLUTIONS | CONSTRUCTION

BOBCAT LOADER DEVELOPMENTS INCREASE CUSTOMER BENEFITS

Bobcat has announced a number of new only have to think about where they are going developments in the company’s compact loader without feeling the need to avoid bumps or any range for Europe, Middle East and Africa (EMEA), other surface level obstacles.

such as Auto Ride Control, Heated Cloth Air Ride Bobcat Image Credit: Benefits include reduced spillage caused by Seats and several more, offering numerous vibrations due to an uneven operating speed additional benefits for customers. The new and/or irregular surfaces; more stability when developments provide an increased choice of moving up and down with a load/weight and the features for the Bobcat skid-steer, compact track ability to drive faster on rough terrain. and all-wheel steer loader ranges. The new Heated Cloth Air Ride Seat is Complementing this, Bobcat has also available on the Bobcat 600, 700 and 800 Series launched the S100E model for EMEA, an updated compact loader models. This is an alternative to version of the company’s popular S100 skid-steer the previous Air Ride Seat with a vinyl surface loader that meets Stage V emissions regulations. and further enhances operator comfort with the Bobcat has launched the S100E model for EMEA, an Like the S100, the new S100E skid-steer loader updated version of the popular S100 skid-steer loader. move to the cloth surface. It is designed to meets customer requirements for enhance comfort and productivity, particularly manoeuvrability, size, weight, uptime equipment market. Over the last 60 years, the for customers operating loaders in cold weather. protection, lift capacity and push force for this same outstanding quality, workmanship and On the 400 and 500 Series models, Bobcat has loader class. In addition, customers benefit from innovation have helped to maintain Bobcat’s also introduced the Cloth Suspension Seat, again improvements Bobcat has made in operator market leadership, so that one in every two skid- replacing the Air Ride Seat with a vinyl surface. comfort, ease of operation, noise levels, running steer loaders sold today is a Bobcat machine. The cloth surface improves the operator’s costs and asset management. Available as a factory option or as an comfort all year round − in both cold and hot These new advances come in the year that aftermarket kit, the new Auto Ride Control weather − and provides more comfortable Bobcat celebrates the 60th anniversary of the system improves operator comfort when driving seating on slopes and inclines. loader, forming part of a 60 year legacy in with a load in the bucket, especially on rough The Air Ride Seat with vinyl surface remains compact loaders that the company says is second terrain. This feature lets the operator lock in available for Bobcat loader customers through to none in the worldwide construction travel at a speed of their choice, so that they the company’s Aftermarket service.

NLMK SOUTH AFRICA MAKES IT RIGHT THE FIRST TIME, EVERY TIME

NLMK South Africa, based in Johannesburg, specialises in Quenched and Tempered steels produced in Belgium by NLMK Clabecq. The local company offers merchant plates and cut- to-size steel plates to the market. Its operations started in 2012 as part of the Duferco Group. It was acting then as agent for the NLMK Clabecq products in the South African market, distributing abrasion resistant (Quard®) and high yield strength steels (Quend®) directly from the mill. In 2018, NLMK acquired 100 per cent of the shares of Duferco Distribution Services who pursued its activities under the name NLMK Quard 400 abrasion resistant steel. Image Credit: NLMK South Africa Image Credit: South Africa. As a sign of their success, the two flagship for customers looking for stable supply of approach has ensured its continuous growth, products distributed in South Africa, Quard® quality steel to ensure a smooth running of even in period of recession. and Quend®, have already been tested by a their fabrication processes. NLMK South Africa vision is to keep aligned large majority of OEMs. The approval by the Through its service centre operations, NLMK to its customers growing needs, as well in terms latter seems to praise the good quality of the South Africa offers high depth plasma cutting as of product quality, service and advice, making steel. And the colour of the plates – green for well as profile cutting. It completes its services sure that it makes it right the first time, every Quard® and blue for Quend® – make them to customers with bending, drilling, chamfering time. NLMK Clabecq continually works on easily recognisable in the market. The two and rolling through trusted suppliers. The improving the existing grades and on products own also their reputation to their company takes pride in giving to its clients developing wider ranges of products and as well increased workability, due among others to quality service from the first call to NLMK South different quality steels. With this in focus, the their tight thickness tolerances and Africa through to the final product delivery. As a company is keen to introduce new products and superior flatness. milestone of its service-orientated focus, the grades into its offering in 2019, such as the high NLMK South Africa keeps Quard 400, Quard company is ISO9002 approved and work to SABS protection armoured steel plate Quardian or 450 and Quend 700 in its local stock. An asset standards throughout the company. This like thinner abrasion resistant steel.

38 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S09 ATR Dec 18 - Jan 19 Report 04_ATR - New Master Template 2016 07/12/2018 14:03 Page 39

REPORT | CONSTRUCTION

3D to 4D BIM: It's time to SYNCHRO (nise) Rhonita Patnaik attended Bentley's Year in Infrastructure (YII) Conference to find out more about the benefits of 4D modelling for designing and building construction projects.

s optimism renews with higher took a step back to leverage the Aoil prices, the construction potential of aging and existing industry is picking up pace infrastructure with digital twins. The across the globe as well as Africa and digital twin concept refers to a the Middle East, which is eagerly digital replica of physical assets. Image Credit: Bentley Systems Bentley Image Credit: completing projects for the much- Bentley Systems announced the awaited Expo 2020 Dubai. However, launch of iTwin Services for everywhere else the cost factor infrastructure projects and assets: remains the primary challenges to Bentley’s Connected Data complete projects on time due to Environment (CDE) for ProjectWise inefficient workflow status. and AssetWise users. Developers are becoming more and Infrastructure asset owners and more conscious so as to not outdo Tom Dengenis at the their teams have recognised the YII Conference. their financial budgets. potential for leveraging digital twin Traditionally, construction projects services from the application of are based on 3D models that depict to-day basis. This can help owners the model. Once you have the spatial analytics, artificial intelligence (AI) their current status. However, there and developers gain control on the info of the model, it is much easier and machine learning simulations are a lot of concept projects that are delivery deadlines. Also, the tracking to adopt the technology. So do not to provide decision support solely intended for design. That of progress of progress is visible. It is underestimate the value of data. throughout the design and would not show the real-time status a very transparent process.” The Synchro Software’s 4D construction lifecycle of a project. of the project. Today, the demand is Accuracy is the major aspect of construction-modelling solution can To realise this potential, inching towards timely project Synchro. With a 15-min difference be augmented better with Microsoft representations of assets need to be delivery as accurately as planned. between the reality and the digital HoloLens. Users can now digitally digital, but to be relied upon as a As challenging as it may seem, the modelling, the turnaround time on visualise 4D projects with a high twin there must be practical good news is that it is not impossible the project is identical. Now you can amount of accuracy and detail. The solutions for their synchronisation and with Bentley’s 4D modelling and keep track of the progress by the HoloLens overlays the dimensional to changing actual conditions in the Synchro, it is possible to achieve the minute. As Synchro can be adapted Synchro graphics on the job site and real world. Moreover, merely desired results at an optimal cost. to 3D modelling at any construction users can watch the structures and capturing and representing physical In June 2018, Bentley Systems phase, the benefits of this tool are systems being built and installed conditions, including IoT inputs, can announced the acquisition of infinite. across the timeline. never be sufficient to understand, Synchro, a 4D modelling software, to “Synchro will analyse the Demonstrating HoloLens during analyse, or model intended help overcome project design available plan and create a work the technical presentations, Greg improvements, without also challenges as well as to smooth platform for construction planning.” Demchak, technical architect, Bentley comprehending the “digital DNA” digital workflow. This acquisition Dengenis assures that it is an Systems says that the representation captured in the project or asset’s broadens Bentley’s ProjectWise extremely viable investment. It is a is almost identical as on the drawings. engineering specifications. construction offerings, which also promise of a payback but it needs Microsoft is now working on Version Once synchronised through digital includes ConstructSim, used mainly encouragement from the owners and 2.0, which will be lighter and with context and digital components, for 4D modelling of industrial plants. developers. Steve Jolley, V-P, improved holographic displays. iTwinServices deliver their benefits At Bentley YII 2018 in London on 15- Construction, adds that the next step As Bentley moves to the future of via Bentley’s open-source iModel.js 18 October, Tom Dengenis, senior is to feed the right information into construction and engineering, it also library for web-based visualisation. director, Constructioneering, Project Keith Bentley, Bentley Systems Delivery, SYNCHRO Platform, spoke founder and CTO, said, “I look to Rhonita Patnaik about the Construction is a natural environment of forward to working with users and significance of 4D modelling. external developers to create an “Construction is a natural 3D spatial modelling and then you ecosystem of innovation for iTwin environment of 3D spatial modelling Services, leveraging the iModel.js and then you incorporate time. It is incorporate time ” library. I expect Bentley Systems to our ability to visually see the project TOM DENGENIS, SENIOR DIRECTOR, PROJECT DELIVERY, lead the infrastructure engineering as an animation. This means that community, as the ‘infrastructure projects can be scheduled on a day- SYNCHRO PLATFORM digital twin’ company.” I

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 39 S10 ATR Dec 18 - Jan 19 Solutions construction_ATR - New Master Template 2016 07/12/2018 14:17 Page 40

NEWS | CONSTRUCTION

Raysut cement eyes acquiring ARM cement in Kenya Oman’s largest cement manufacturer, Raysut Cement Company is eyeing acquiring ARM Cement of Kenya as part of the company’s aggressive strategy to expand in East and Central Africa. ARM Cement, which is a producer and major supplier of cement in Kenya and Africa in general, went into administration with a debt of over US$140mn and Raysut has expressed its interest to the administrators to acquire the company, a statement released by the company

said. The acquisition is estimated to be valued at Adobe Stock Image Credit: more than US$100mn. The acquisition will complement Raysut’s revised strategy to manufacture clinker in proximity to the markets it supplies to in East Africa.

Raysut Cement Company is already in the The acquisition of ARM Cement of Kenya by Raysut Cement Company is estimated to be valued at US$100mn. process of setting up a grinding unit in Somaliland and Mogadishu, Somalia with a Raysut Cement Company is one of the major a five-year strategy to grow Raysut Cement Dubai-based partner. The company is also in clinker suppliers to the East African region and Company into a 20 million tonne company by advanced discussions to acquire various cement the ARM assets will fit very well with its plans 2022. The proposal of the Kenyan-born Mr producers in Uganda and Djibouti. for East Africa where in the last quarter alone it Ghose, based in Oman, has been approved at a Plans are afoot to build a one million tonne supplied more than 300,000 tonnes of clinker recent board meeting with significant support per annum cement plant in Berbera, Somalia from its home plant at Salalah, Oman to Kenya from all stakeholders of the company, including and the construction work could start as early as and Tanzania. the government representatives. January 2019. Raysut Cement Company is in According to industry reports, Mr. Joey Ghose, The group is also building a one-million- advanced negotiations with Kampala Cement. the Group CEO of Raysut Cement had presented tonne plant in Georgia, near Tbilisi.

REAL-TIME TRACKING COVERING EAST AFRICA AND BEYOND

Spedag Interfreight, the leading logistics goods both by mobile app and web application incremental innovation solutions for the logistics company in East Africa, unveiled their real-time showing the position in real time on Google Maps. industry. “It is our first jointly developed solution with tracking solution PeriSpoor to more than 500 The new product was presented by Daniel this young start-up. The speed of its realisation in interested stakeholders. This innovative product Richner, chairman, and Dilip Bhandari, CEO of only a few months is impressive and the potential for allows the tracking of cargo along its journey by Spedag Interfreight, during the year-end events in enhancements are enormous,” said Richner. sea, rail and road. From or to any seaport of the Kigali and Kampala. Periplus creates the link to products based on globe to or from any location in Eastern Africa, The service feature was developed by Periplus, distributed ledger technologies. The company is Spedag Interfreight customers can track their Switzerland, a start-up company focusing on working on a private blockchain solution to verify and provide signed delivery orders in real-time to Spedag Interfreight customers. The group also unveiled their expansion plan and decision to open offices in Zambia, DR Congo and Burundi where they will continue to work closely with their existing agents and partners. Bhandari said, “We need these primarily commercial presences to serve our esteemed customers in their respective industries and country of operations, whether it is in energy and infrastructure on one side or aid and relief on the other. “Spedag Interfreight is leading the way, offering bespoke logistics solutions to the oil and gas industry where they are working with many prominent companies. Oil and gas activities are gaining momentum in East Africa and as a market leader, we are well positioned to embrace the needs.” To impress customers is a central objective of

Image Credit: Image Credit: Interfreight Spedag Spedag Interfreight. These announcements show Daniel Richner, chairman and Dilip Bhandari, CEO of Spedag Interfreight East Africa. the group lives up to its own expectations.

40 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S10 ATR Dec 18 - Jan 19 Solutions construction_ATR - New Master Template 2016 07/12/2018 14:17 Page 41

CONSTRUCTION | SOLUTIONS

SDLG MOTOR GRADERS SMOOTHING THE WAY FOR THE BRI

Extensive transport infrastructure is being built The G9190 motor grader air-conditioned. Offering a comfortable under the Belt and Road Initiative (BRI), known is available in EMEA. environment for operators to work in helps as the Chinese Marshall Plan. boost productivity, especially since they often From Southeast Asia to Eastern Europe and Africa, chalk up long hours and are under high stress Belt and Road includes 71 countries that account for to meet the deadlines of Belt and Road half the world’s population and a quarter of global Initiative projects. GDP. One Chinese firm alone is responsible for 10,320 km of new roads. With many more road 4. Precise grading

projects in the pipeline, SDLG presents five benefits SDLG Image Credit: The G9138 and G9190 graders have fully-digital that SDLG motor graders can bring to these jobs. instrument panels with three-stage alarm 2. Range of options for different project needs electronic monitoring to ensure precise 1. Lubrication and maintenance-free SDLG offers a variety of motor graders for operator control. Both the SDLG G9138 and G9190 motor graders, different project needs. In increasing order of the two models available in APAC and the latter size, the models available are the G9190 (APAC 5. Reliability in a cost-effective package in EMEA, have swing frames whose composite and EMEA) and G9220 (EMEA). SDLG motor graders, like the company’s other bearings are lubrication and maintenance-free. product lines, are reliable and cost-effective. This offers greater durability and ease of 3. Comfortable and safe cabs SDLG machines are simple to use, therefore operations over the machine’s lifetime. The G9190 and G9220 both feature cabs that are minimising the amount of training required.

COMANSA: 21LC660 and 21LC750 upgrades NEW BROKK 170 OFFERS 15 PER CENT MORE POWER The design of new solutions for the 21LC1050 Flat-Top tower crane, allowed COMANSA’s R&D team to apply some of these developments to two of the manufacturer’s most successful cranes – Brokk, the world’s leading manufacturer of 21LC660 and 21LC70 – used in Angola and Côte d’Ivoire. These models, mainly designed for large remote-controlled demolition machines, industrial projects, energy, mining and PPVC construction, improve their performance significantly, introduces the Brokk 170. With SmartPowerTM – the company said. the company’s signature intelligent power The versions of 24, 36 and 48 tonnes (52,910, 79,360 and 105,820 lb) of both models have management system – the new machine offers 15 increased their maximum load capacity to 25, 37.5 and 50 tonnes (55,120, 82,670 and 110,230 lb). per cent more power than its predecessor, the This improvement is achieved thanks to the use of a compacted wire rope, of smaller diameter, and Brokk 160, but retains the same compact an optimised design of the now lighter trolley-hook set. Such change does not only increase the dimensions. The Brokk 170 is one of four new maximum load capacity of the crane, but also improves the loads in all radius, including the jib- next generation Brokk remote-controlled end load. During the design of the 21LC1050, space restrictions at construction sites that exist in demolition machines Brokk is launching at World some countries due to regulation were taken into account. That is why a highly modular counterjib of Concrete 2019 in Las Vegas. was created for such model, which allows up to six different configurations according to the jib “Contractors work in some of the most length. The advantages of this new counterjib encouraged COMANSA to apply this design to cranes confined spaces, and to get their jobs done 21LC660 and 21LC750, which will improve the counterjib radius of both models when they are successfully they can’t sacrifice power or safety,” erected with reduced jib-lengths. Thus, when the 21LC750 crane is erected with a 50-metre jib (164 said Martin Krupicka, president and CEO of ft), the counterjib radius is 25 metres instead of 31, of the previous design (82 ft instead of 102). Brokk Group. “That’s why maintaining the same As a novelty in terms of jib length, COMANSA now offers an optional 90 metre radius (295.3 ft), for footprint as the former model and boosting the special applications. This option is available for the 21LC660 and 21LC750 models, as well as for the machine’s power was a must. This new machine 21LC1050 crane. COMANSA also added the Effi-Plus system to the 110kW hoist mechanisms (148hp). truly tests the limits of compact power.” The Brokk 170 incorporates the revolutionary

COMANSA’s models 21LC660 and 21LC750 new SmartConcept system, which ensures improve their performance significantly. improved performance and uptime. SmartConcept consists of SmartPower, SmartDesign and SmartRemote. SmartPower senses when the power supply is poor or faulty then compensates before damage to components occurs. This allows contractors to use the machine with generators or unreliable power sources. SmartDesign extends machine life and provides ease of maintenance due to 70 per cent fewer cables, hardened components, LED headlights and accessible grease points and hydraulic hoses. An ergonomic remote-control, the SmartRemote, incorporates adjustable straps, controls and professional-grade radio technology with a 300m working range. Image Credit: COMANSA Image Credit:

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 41 S10 ATR Dec 18 - Jan 19 Solutions construction_ATR - New Master Template 2016 07/12/2018 14:17 Page 42

NEWS | MINING

Hytec commissions hydraulic systems at CALL FOR SUSTAINABLE Black Rock Mine Operations DEVELOPMENT REPORTS

Hytec has been commissioned to supply Mining companies, including Anglo American R10mn hydraulic systems for the new Platinum (Amplats), need to disclose the bulk handling equipment at Assmang’s impact of their activities more consistently Black Rock Mine Operations in the than they currently do in their sustainable Northern Cape. Black Rock Mine development reports (SDR), according to Operations is being operated by Assmang Bench Marks Foundation. Proprietary Limited which is jointly Speaking at the launch of its latest study owned by African Rainbow Minerals in its Policy Gap series, Critical analysis of Limited and Assore Limited. Amplats Sustainable Development Reporting This bulk handling system includes (SDR) from 2003 to 2015, executive director two stackers, a bucket wheel reclaimer of Bench Marks, John Capel, said that the

and a rapid load-out station – each Hytec Image Credit: report had highlighted many shortcomings

automated using Hytec’s proportionally The hydraulics ensure that loads are evenly distributed, in Amplats’ sustainable development controlled hydraulic systems assembled maintaining the integrity of the axle load to strict tolerances. reporting. However, he hoped that the report from Bosch Rexroth technologies. would be seen as a “positive contribution” to “The proportional control achieved by the system delivers precise remote flexibility in adjusting, assist Amplats and other mining companies varying and optimising the load handling characteristics of the machinery to accommodate any to develop an ever-deepening understanding changes in the nature of the material,” said Hytec System sales manager, Klaus Marggraff. of sustainability “so that, in the end, all The two stackers, manufactured by ELB Engineering Services, were equipped with 7.5 kW hydraulic stakeholders, including communities and systems that will control the stacking of manganese ore in the stockyard in various grades of material. their dependents, will benefit from the The Sandvik (now FLSmidth) bucket wheel reclaimer was supplied with a 45 kW hydraulic system and extraction of our natural resources.” includes dual luffing cylinders. “Amplats, together with other mining At the load-out station, Hytec’s hydraulic systems extend from the control of the exit gates of the loading companies, does not consider the wider bin, across the weigh flask that divides the load into batches that are then transferred into the wagons below. context of its mining activity. Instead, its Up to 600 l/min of hydraulic flow is required at specific stages of the load-out station, which also impacts are judged from inside its own needs to deliver precise distribution control within each wagon with strict tolerances. gates,” Capel added. “The load-out station is also equipped with an emergency closure system, which, when activated in “Most mining companies regard the event of a power failure or an emergency stop, will automatically close each gate and park the shareholders and owners as the most machine,” continues Marggraff. “Each component used on the system, from valves, cylinders and the important stakeholders, and therefore the filtration systems filtering the oil down to six microns to the control, is from the Bosch Rexroth range of ones to which special attention must be drive and control products.” paid. However, mining would not be possible without the land from which the minerals FIRST MAKHADO HCC OFF-TAKE DEAL SECURED are extracted, the communities which live on top of this land, and the workers whose MC Mining was pleased to announce the conclusion of a hard coking coal (HCC) agreement to be produced labour results in the extraction of the by the Makhado Project in South Africa’s Limpopo province. The parties in the agreement are MC Mining’s minerals. In the vast majority of cases, these subsidiary, Baobab Mining & Exploration, the owner of the Makhado Project and the Huadong Coal Trading stakeholders are at the bottom of the pile of Center Co, a Chinese state-owned firm and a subsidiary of the China Forestry Group Corporation. priorities, if they are on the list at all. The Makhado Project is expected to produce up to 800,000t of HCC annually as well as between “If Amplats and other companies were to 900,000t and 1,000,000t of export quality thermal coal. The development of MC Mining’s flagship prioritise environment, communities and Makhado Project is expected to facilitate economic growth in the Limpopo province, and the agreement has workers, it would stand to create a strong the potential to generate significant foreign currency inflows for South Africa. legacy that would go a long way to taking David Brown, CEO said, “The signing of the first HCC off-take agreement is a significant step for responsibility for the privilege of being given Makhado, reaffirming its world class coal qualities and international appetite for this type of coking coal.” a licence to mine,” the study says.

BRIEFS

Tech centre supports global mining solutions All sorted at Jwaneng diamond plant

Latest research and development is paving the way Two high-throughput X-Ray Transmission (XRT) for a unique new mineral called Jadarite with the ore sorters from De Beers Technologies SA have potential to supply a significant portion of global been installed at Debswana’s Jwaneng diamond demand for lithium and borates. mine, as key elements of its new Large Diamond Rio Tinto’s Technical Development Centre in Recovery Pilot Plant. According to Gordon Taylor, Bundoora, Melbourne in collaboration with the head of DebTech, the XRT Coarse Concentrator company’s team of global experts, is developing a Plus (CC+) units were developed for the Botswana

Image Credit: Image Credit: Adobe Stock chemical procedure to process Jadarite, which was DebTech Image Credit: mine to treat run-of-mine at combined Rio Tinto’s development centre is discovered in 2004 with concentrations of lithium Two XRT ore sorters from De Beers have throughputs of up to 500 tonnes per hour while analysing a new mineral to meet global been installed at Debswana’s Jwaneng demand for lithium. and boron, known only to occur in Serbia. diamond mine. allowing for the recovery of large diamonds.

42 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 07/12/2018 14:30 Page 43 S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 07/12/2018 14:30 Page 44

MINING | REPORT

Emerging tech firms set to benefit at Mining Indaba Four African emerging technology businesses will have the chance to pitch their solutions at Investing in Mining Indaba at the Cape Town Convention Centre on 4-7 February.

nearthed and Investing in Ghana President H.E. Nana Akufo-Addo Last year it saw a 15 per cent African Mining Indaba have will be speaking at Investing in Mining increase in its overall attendance, U Indaba in February. partnered to offer four African including 47 per cent more mining emerging technology businesses the executives. opportunity to pitch their innovative “We’ve seen attendance figures industry solutions at next month’s grow, lots of international investor Mining Indaba in Cape Town. companies are now attending. I Startup Unearthed Africa is an think the perception of Indaba is online competition aimed at raising changing; historically it’s been seen the profile of African hardware or as a tradeshow but investors are software companies across the coming back,” said Hanre Rossouw, global mining sector, with former head of resources, frontier applications open to any business and emerging markets, Investec across the continent that has a Asset Management. prototype, product or service that “Excellent networking conference can impact industry. with many government officials and “Companies do not need to have industry players of all sizes and worked on a mining project before, interests,” said Max de Vietri, they just need to have exciting principal advisor, African Geopolitics. Image Credit: Présidence du Bénin Présidence Image Credit: technology solutions that can make More than 200 CEOs and CFOs, a difference,” Unearthed and 190 junior mining companies and Investing in Mining Indaba said in a companies are embracing mining companies producing gold, 750 investors and dealmakers will joint statement. innovation. We are very proud and diamonds, bauxite and manganese, be attending this year’s show. In addition to awarding four excited to be running this fantastic and there are also more than 300 Issues such as digitalisation, pitching spots, each startup will initiative together with Unearthed, registered small scale mining groups sustainability development goals, receive one full complimentary pass set to bring new ideas to one of the and 90 mine support service land reform and massive job cuts to Mining Indaba that runs from world’s oldest industries as well as companies. affecting the sector, especially in Monday to Thursday. provide four African tech startups Hon. Jean-Clude Kouassi, minister South Africa, as well as investment Holly Bridgwater, industry lead, with exposure to the world’s largest of mines and geology from Côte opportunities will be discussed by Crowdsourcing at Unearthed, will mining companies.” d’Ivoire, Hon. Winston Chitando, ministers and investors. moderate the startup session Other must-see opportunities at minister of mines and mining There will be a new investment showcasing these up-and-coming the conference, will be Ghana development, Zimbabwe, Hon. pavilion combining the Junior transformative mining technologies. President H.E. Nana Akufo-Addo’s Abubakar Bawa Bwari, minister for Mining Showcase, a Sustainable Bridgwater said, “I am excited keynote address where he will be mines and steel development, and Development Day and extra half a that we have the opportunity to discussing plans to open up small- H.E. Oumarou Idani, minister of day to debate the tech and share some of the amazing tech scale mining in Ghana, which is the mines and quarries, Burkina Faso innovations for futuristic operations, being built across Africa with an second largest producer of gold. This are also confirmed to speak at the such as maximising exploration audience of potential customers and will bring lucrative opportunities for event, which has grown into the efficiency with big data and AI and investors at one of the world’s mining companies and investors world’s largest mining investment the impact of automation on your largest mining conferences.” alike. Ghana has 23 large-scale event since its inception in 2014. future workforce. Investing in African Mining Indaba Harry Chapman, director of Managing Director, Alex Grose, said content said, “We are quickly the the mining industry has been Companies do not need to have worked on becoming more than just a perceived as an old-fashioned sector, conference – we are here to support but this is not the case as technology a mining project before, they just need to your businesses. As a team we also has rapidly been changing the way have a long-term, laser sharp focus in the sector operates. have solutions that can make a difference ” driving investment into African “From AI and big data to new mining and actively contributing to satellite technologies and more UNEARTHED/INVESTING IN MINING IN INDABA Africa’s sustainable economic growth, efficient production, mining to help your business thrive.” I

44 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 07/12/2018 14:30 Page 45 S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 07/12/2018 14:30 Page 46

MINING | REPORT

Cutting water usage while optimising coal washing Multotec introduces short courses so customers can understand how centrifugal washers work to improve higher coal tonnage per footprint, while still maintaining optimal separation efficiency.

he growing scarcity of water is placing Tpressure on the coal mining industry in many countries. On the one hand, mines

must treat more lower quality coal as better Multotec Image Credit: coal reserves are depleted which coincides with increasing tonnages, and on the other, they must reduce water consumption. The coal preparation process is normally water-based and uses substantial amounts of water, so optimising its performance will impact positively not only the environment but also the bottom line. One important response to this pressure has been the move from the traditional technology of bath washers to centrifugal washers such as cyclones, as this allows for a higher tonnage per footprint while maintaining optimal separation efficiency. Depending on the coal characteristics, it may be possible to reduce the medium to ore ratio while still maintaining optimal separation efficiency and by doing so reduce the water use in the medium circuit. Multotec has optimised dense medium These types of changes can, however, only be separation in the pre-concentration of made if the material characteristics, the minerals, specifically in coal and separation process and factors affecting the diamonds, for more than 40 years. separation process are properly understood. To optimise the effectiveness of cyclones, the parameters surrounding the dense media The performance of screens is becoming an The fine coal circuit is also an area deserving separation (DMS) cyclone must be well important point of focus in coal washing, in the of focus, especially with increasing feed tonnages understood. The cyclone’s efficiency is light of rising tonnages per footprint and medium being fed to coal preparation plants. Not only determined by the nature of the feed, by the volumes. Factors such as bed depth, spray water can this circuit become a bottleneck if it is cyclone’s dimensions and maintenance and by addition and the open area on screen panels all unable to process the full fine fraction stream the circuit’s influences on the equipment. affect the performance of desliming screens. but, as the separation process is mostly water- The cyclone appears to be a simple piece of Here, it is vital to understand screening based, this is where much of the water is used. equipment, but the operator needs to principles, so that optimal screen performance is The objective here would be to minimise understand the physics of how it operates, as ensured; this not only improves screening excessive water use without sacrificing separation well as the mechanism of separation. For this efficiency but also conserves water. efficiencies. To achieve this objective a proper reason, Multotec introduced short courses for With drain and rinse screens, it is crucial to understanding is required of the limitations of customers, addressing topics such as principles drain higher volumes of medium associated with each piece of equipment in the circuit as well as of separation, operation and fault-finding. ever increasing tonnages being processed, to which process factors will contribute the most An additional process that is incorporated minimise medium losses. While it may not be towards separation efficiency while reducing into modern designs to reduce water loss is the practical to replace the screen with a larger water consumption. use of coal centrifuges which can reduce the version, alternative screen panel designs may be Again, Multotec’s training courses focus on surface moisture content of the dense medium an option to improve drainage capability. improving the operation’s understanding of the circuit product from eight to 15 per cent to five When drain sections perform optimally, they equipment and how to improve its performance. to 12 per cent depending of the size of particles reduce the need to add more spray water on the This kind of industry training can have a being processed. A proper understanding of the rinse section of the screen, saving water. The considerable impact on the sector’s water design of this equipment and factors affecting Multotec short course on screening principles footprint, if operators take the knowledge into the performance of centrifuges goes a long way transfers knowledge to customers and industry on their working environments and look proactively in helping to optimise this process. how to achieve this. for opportunities to reduce water usage. I

46 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 07/12/2018 14:30 Page 47 S11 ATR Dec 18 - Jan 19 Report 05_ATR - New Master Template 2016 10/12/2018 14:22 Page 48

SOLUTIONS | MINING

FLSMIDTH TO SUPPLY ACID-BAKE KILN TO HASTINGS TECHNOLOGY METALS

FLSmidth has been chosen as the supplier of an acid-bake rotary kiln to the Photograph of a typical kiln Rare Earths Hastings Technology Metals (Hastings) Yangibana Rare Earths section being installed. Project in Australia. The agreement means FLSmidth will design and supply the kiln and provide technical assistance for this essential component in rare earths processing. The Acid-Bake Rotary Kiln incorporates concentrate mixing and feeding equipment, directs waste gas to a separate scrubbing facility, and provides a natural gas fired heating system essential for the processing of rare earths. Following receipt of tender submissions, Hastings awarded the Acid-Bake Rotary Kiln contract to FLSmidth.

The deal is significantly strategic for FLSmidth as it recognises the depth FLSmidth Image Credit: of pyrometallurgical processing technology the company can provide for Earths Project in Australia is significant for FLSmidth on a global rare earths production of neodymium and praseodymium (NdPr). perspective. It recognises the ability of FLSmidth to provide technology for NdPr is an important ingredient in the production of Permanent Magnets the processing of rare earths. The growth in demand for battery minerals which are widely used in electric vehicle (EV) motors, direct drive wind has allowed us to use pyrometallurgical processing experience to facilitate turbines, medical equipment-MRI, and high-end electronics. the needs of our fast-growing customers,” says Laurie Barlow, Head of “The order of an acid-bake rotary kiln to the Hastings Yangibana Rare Mining, Australia at FLSmidth.

Concrete admixtures for mining applications Mines have particular logistical, safety and conditions. Driven by the advances in admixture environmental requirements that need to be In addition to experience in designing shaft technology, the use of sprayed concrete as a considered when designing concrete and this lining concrete, CHRYSO formulates high-flow, temporary and permanent support element is in addition to meeting demanding highly accelerated concrete that can be on mines has increased significantly in performance specifications. Among the transported through slick lines. This expertise recent decades. CHRYSO admixtures control global leaders in concrete admixtures, encompasses providing solutions for the workability of concrete and create longer CHRYSO has developed an extensive product shotcreting, thin skin liners, tailings grout open times. They also lower cement-to-water offering to meet varying operating support and backfill. ratios, improve early or late strength development and reduce rebound. Advances in concrete admixture technology Used extensively on copper, gold, has increased and CHRYSO has a range of platinum and diamond mines, the CHRYSO solutions for shotcrete applications. Jet range of accelerators ensures early hydration of concrete. It allows the concrete to be formulated to suit the size of the shotcrete machine, as well as shotcrete thickness. To reduce rebound and improve early strength in dry shotcrete, CHRYSO HPB Powder assists with bonding in wet conditions. CHRYSO’s expertise has made it the first supplier to develop the use of tailings shotcrete and concrete to help alleviate mines’ logistical issues. Now, the bulk of the material can be pumped over long distances and stored before

Image Credit: CHRYSO Image Credit: being sprayed.

Advertiser’s Index

CAGS Management Services DMCC ...... 2 Metalgalante S.p.A...... 37 Eko Hotel and Suites ...... 17 NLMK Clabecq S.A...... 45 Elsewedy Electric ...... 25 Rock Plant (Kenya) Ltd ...... 35 Emirates ...... 52 Sollatek (UK) Ltd ...... 27 F G Wilson ...... 51 Volvo Construction Equipment AB...... 5,9 First National Bank a Div. of FirstRand Bank Ltd...... 21 Wilhelm Layher GmbH & Co. KG...... 11 IIR Exhibitions (MEE Dubai 5-7 March 2019 )...... 47 Zest WEG Group Africa...... 31 Iveco SPA ...... 23

48 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S12 ATR Dec 18 - Jan 19 Report 06_ATR - New Master Template 2016 10/12/2018 14:08 Page 49

INNOVATION | SOLUTIONS

THE PASSAGE TO DEVELOPMENT Image Credit: Herrenknecht Image Credit:

The Suez Canal tunnels project aims to ease congestion in the area.

In December 2017, Egyptian President Abdel industrial centres in the central Suez Canal German tunneling expert Herrenknecht is Fattah el-Sisi inaugurated several development governorate of Ismailia. providing the tunnelling technology for the projects in the East Suez Canal development The Suez Canal tunnels project aims to ease construction of the necessary underground zone in northern Ismailia, including tunnels and congestion in the area due to industrial transport infrastructure: four large-diameter two floating bridges to facilitate commercial and development and population growth. Instead of Mixshields (13,020mm). From September 2015 to civilian access to Sinai and the East Suez Canal spending up to five days in a ferry, crossing the January 2016, four Mixshields were handed over Development Zone. Suez Canal via the efficient tunnels will only take to the customer at the Schwanau plant before The East Suez Canal development project, 10 minutes in future. beginning their sea journey to Egypt by freighter. which is part of the larger Suez Canal On both sides of the canal, the North African The four new highway tunnel drives under the development plans, was launched in 2015. The country has invested in commercial and canal were excavated in 19 months by two project aims to develop major residential and industrial business parks and residential areas. construction joint ventures, the Arab Contractors/Orascom JV and the Petrojet/Concord/CMC JV. To help the project run smoothly, Herrenknecht trained 40 Egyptian engineers at its headquarters in Schwanau, Germany, and on the jobsites in Egypt to provide

Image Credit: Herrenknecht Image Credit: on site support. Herrenknecht’s role in the project includes support for optimal jobsite with a comprehensive technology and service package; VMT looks after navigation and process data management systems and Herrenknecht Formwork is equipping the lining segment production plants with moulds. Multiservice vehicles at the jobsite are being taken care of by Techni-Métal Systèmes. As early as January 2018, excavation was complete on the first of two new twin-tube road tunnels being built under the Suez Canal at Port Said. In addition to the transport infrastructure, Herrenknecht technology is also being used for the construction of supply and disposal lines. Two HDD rigs from Herrenknecht are installing pipelines for the expansion of the power grid. Four tunnel boring machines were supplied by Herrenknecht for the construction of two Two AVND machines in turn are handling the new road tunnels under the Suez Canal. construction of water pipelines for agriculture.

www.africanreview.com DECEMBER 2018 - JANUARY 2019 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY 49 S12 ATR Dec 18 - Jan 19 Report 06_ATR - New Master Template 2016 07/12/2018 14:27 Page 50

COMMENT | REPORT Image Credit: Adobe Stock Image Credit:

When a revolution becomes a success

More people are being lifted out of poverty thanks to mobile finance. Sergio Pimenta IFC Vice President, Middle East and Africa and Ann Miles, Thought Leadership and Innovation, Director, Mastercard Foundation explain why.

here is a quiet revolution underway in Africa to be addressed for further growth in Africa’s Tand, like all of them, its success depends on financial services sector. Expanding financial the beliefs and behaviours of ordinary services to the last mile will require investments people. People like Constance Sampa, in Lusaka, in merchant and agent networks. There needs to Zambia. Seven years ago, she got a job as a teller be greater innovation along agricultural value at a banking agent outlet for Zoona, a mobile chains. As well, new products and services are payments provider. Today, she owns 37 outlets of needed to meet an increasingly nuanced demand her own and employs 47 people, almost all of from an even broader variety of users, such as them women. entrepreneurs, merchants, smallholder farmers, According to Constance, “Mobile finance has youth and women. grown rapidly, because it is easy to use, and Regulators across the continent can now learn people are very familiar with mobile phones. Image Credit: Money Orange from a decade of experience as the most mature Mobile money banking through agents offer affordable Since almost everyone has a phone, the future is and reliable transactions to poor people in urban and markets have been leading the way to promote bright for mobile financial services in Africa.” rural areas. innovation and access while also protecting Constance’s story is an example of the consumers. Tanzania’s ground-breaking efforts to movement that is enabling more people across Despite remarkable advances, many low- enable interoperable mobile money payments is Africa to access and use basic financial services. income people, small-scale entrepreneurs, and one inspiring example. In fact, financial inclusion is one of the rural communities still lack the ability to store In Kenya, the leading market for digital continent’s remarkable success stories of this money safely, make swift and low-cost financial services on the continent, account decade. Thanks to new technology and transactions, or access formal credit to invest in a ownership is now above 80 per cent and on par innovative business models, the financial business or provide for a family emergency. That with China. Other markets can follow. In Benin, inclusion rate on the continent has jumped from is why it is now time for the regional financial Burkina Faso, Cameroon, Central African 23 per cent in 2011 to 43 per cent in 2017, industry, investors, development finance Republic, Chad, the Democratic Republic of according to new data from the World Bank institutions, and regulators to make a final push Congo, the Republic of Congo, Gabon, Guinea, Group Findex survey. and build on the gains made so far so that the Lesotho, Liberia, Madagascar, Malawi, Mali, Niger, Mobile money facilities and banking through benefits of formal financial services extend to all Senegal, Tanzania, Togo, Uganda and Zambia, the agents now offer affordable, instant, and reliable African adults. financial inclusion rate has at least doubled since transactions to poor people in urban areas or IFC and the Mastercard Foundation’s latest 2011. those people living in remote parts of a country. report, Digital Access: The Future of Financial With success it is easy to become complacent, Savings, credit, and insurance services are now Inclusion in Africa, outlines challenges that need but it is now important and urgent to make a available in places where no bank has ever concerted effort to cross the finishing line of established a branch. universal financial access. Ultimately, the This is, quite literally, banking at your The future is bright for opportunity for people like Constance to provide fingertips – for everyone. It is breaking the financial services far and wide across the conventional ways of thinking about banking and mobile financial services continent to reach the millions that still lack it is certainly cause to celebrate. The goal of this access to formal financial services depends on a revolution is to achieve universal financial access in Africa ” collective and sustained effort of all private and by 2020, meaning all adults will then have access public actors in the market. Together, we can to at least a basic transaction account or mobile CONSTANCE SAMPA truly achieve change and proclaim success in this money account. quiet, but decidedly essential, revolution. I

50 AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | DECEMBER 2018 - JANUARY 2019 www.africanreview.com S12 ATR Dec 18 - Jan 19 Report 06_ATR - New Master Template 2016 10/12/2018 14:34 Page 51 S12 ATR Dec 18 - Jan 19 Report 06_ATR - New Master Template 2016 07/12/2018 14:27 Page 52