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September 2017<br />

www.africanbusinessreview.co.za<br />

Africa’s TOP 10<br />

TECH START-UPS<br />

TRANSFORMERS:<br />

HOW PPPS ARE<br />

CHANGING<br />

UGANDA<br />

A SUGAR<br />

-FUELLED<br />

P<br />

WER<br />

SURGE<br />

INSIDE BIOCOM’S<br />

80,000-HECTARE<br />

SUSTAINABLE SUGAR<br />

CANE AND BIOMASS<br />

OPERATION<br />

TAL K ING<br />

BIZ<br />

WITH<br />

+


FOREWORD<br />

WELCOME TO SEPTEMBER’S African Business<br />

Review. We start with a special focus on Angola, looking in<br />

depth at Biocom, an enormous sugar cane producer which<br />

is reversing a trend that has seen unsustainable amounts<br />

of sugar imported in the years since the country’s civil war.<br />

Soon the project will pass the $1bn investment mark,<br />

allowing it to ramp up production and provide vital sugar<br />

supplies to the country, along with sizable amounts of<br />

electricity and ethanol byproducts. Find out more in<br />

our feature with Biocom Deputy General Manager Luís<br />

Bagorro Júnior and Mário Lourenço, CEO of Cochan,<br />

key financier and 40% stakeholder in the project.<br />

Also talking energy is Songas Managing Director<br />

Nigel Whittaker, who tells us how the company is<br />

supplying much-needed power to Tanzania.<br />

This issue also carries a mining focus, with<br />

exclusive insight from Kefi Minerals, Base<br />

Titanium and the Ministry of Mines in Kenya.<br />

Finally, make sure you read our other exclusive<br />

interviews, which include iSON Group, East<br />

Africa Data Centre and FNB Namibia.<br />

Enjoy the read, and as always, tweet your<br />

feedback @AfricaBizReview<br />

Enjoy the issue!<br />

www.africanbusinessreview.co.za<br />

www.bizclikmedia.com


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FEATURES<br />

08<br />

PROFILE<br />

POWERING ANGOLA’S<br />

SUSTAINABLE FUTURE<br />

TECHNOLOGY<br />

TRANSFORMERS<br />

- HOW PPPs<br />

ARE CHANGING<br />

UGANDA<br />

20<br />

TOP 10<br />

African<br />

startups<br />

26<br />

5


C O M P A N Y<br />

PROFILES<br />

38<br />

KEFI Minerals Ltd<br />

MINING<br />

50<br />

Ministry of<br />

Mines in Kenya<br />

MINING<br />

Base Titanium<br />

MINING<br />

58<br />

6 September 2017<br />

70<br />

iSON Group<br />

TECHNOLOGY


110<br />

Songas<br />

ENERGY<br />

88<br />

East Africa Data Centre<br />

TECHNOLOGY<br />

122ENERGY<br />

El Sewedy<br />

Electrometer<br />

100<br />

FNB Namibia<br />

TECHNOLOGY<br />

7


POWERING<br />

ANGOLA’S<br />

SUSTAINABLE<br />

FUTURE<br />

THE LARGEST PRIVATE<br />

INVESTMENT IN ANGOLA<br />

OUTSIDE THE OIL SECTOR,<br />

BIOCOM’S PROJECT<br />

IS CONVERTING HUGE<br />

SUGARCANE HARVESTS<br />

INTO VITAL ELECTRICITY,<br />

SUGAR AND ETHANOL<br />

W R I T T E N BY:<br />

TOM WADLOW


INSIGHT<br />

Biocom’s pre-sprouted<br />

seedling nursery in Cacuso,<br />

Malanje Province, Angola<br />

ANGOLA IS HOME to an estimated<br />

35mn hectares of arable land. An<br />

economy historically and still reliant<br />

on natural resources, agriculture<br />

represents an enormous opportunity<br />

for sustainable, diverse development.<br />

“Angola’s potential has always been<br />

remarkable, however, more than half<br />

the food products consumed by the<br />

Angolan population are imported,”<br />

remarks Mário Lourenço, CEO of<br />

Cochan, key financier and 40%<br />

stakeholder in Biocom, a massive<br />

harvester of sugarcane and producer<br />

of electricity and ethanol byproducts.<br />

The recent civil war and resultant<br />

mine-clearing operation caused a<br />

slowdown in agricultural investment<br />

in the country, meaning the sector<br />

only contributes just over 10% of<br />

Angola’s GDP. However, Biocom<br />

is a project already reversing this<br />

trend. Its 80,000-hectare site lies<br />

in the heart of the municipality of<br />

Cacuso, in the northern Malanje<br />

Province. Asides multi-industry<br />

investor Cochan, the group is formed<br />

of two other Angolan companies.<br />

Odebrecht Angola, which operates in<br />

the fields of engineering, agribusiness,<br />

mining and civil construction, also<br />

holds a 40% stake, while state oil<br />

9


INSIGHT<br />

Part of Biocom’s huge<br />

80,000-hectare site<br />

firm Sonangol owns the remaining<br />

20% share. So far investment has hit<br />

$750mn, with another $520mn to be<br />

spent on phase two of the project.<br />

“Biocom is more successful than<br />

we could have ever imagined and<br />

is the first Angolan company after<br />

independence to produce and<br />

commercialise sugar,” says its Deputy<br />

General Manager Luís Bagorro Júnior.<br />

“Angola’s potential<br />

has always been<br />

remarkable, however,<br />

more than half the food<br />

products consumed by<br />

the Angolan population<br />

are imported”<br />

Mário Lourenço, CEO, Cochan<br />

10 September 2017


POWERING ANGOLA’S SUSTAINABLE FUTURE<br />

“In 2016, we were able to save the<br />

country $25mn in sugar imports,<br />

which is equivalent to 52,000 tonnes.”<br />

STEMMING A SUGAR SHORTAGE<br />

Both Bagorro and Lourenço fully<br />

recognise that more production is<br />

needed, for Africa remains a sugar<br />

deficit region. In 2015, Angola spent<br />

$450mn on sugar, the third largest<br />

import of all foodstuffs and second<br />

only to wheat flour and rice.<br />

“However, the prospects are<br />

optimistic,” Lourenço adds. “Sugar<br />

output in the continent is projected to<br />

increase by 49% by the end of 2025<br />

as a result of production expansion<br />

in Sub-Saharan African countries.”<br />

Cochan and Biocom are no<br />

doubt playing a considerable part<br />

11


INSIGHT<br />

80k<br />

THE NUMBER OF<br />

HECTARES FARMED<br />

BY BIOCOM<br />

2k<br />

THE NUMBER OF<br />

EMPLOYEES AT<br />

BIOCOM<br />

12 September 2017


Biocom has invested heavily in<br />

sugarcane harvesting equipment<br />

and related staff skills<br />

13


INSIGHT<br />

in achieving this growth. Biocom<br />

forecasts production of 62,947 tonnes<br />

of sugar in the 2017/18 harvest, and a<br />

massive 256,000 tonnes in 2020/21<br />

season, a fivefold increase on last year.<br />

These are huge numbers and Biocom<br />

has room to maneuver regarding its<br />

acreage. At the moment, it only uses<br />

half of its 80,000 hectares of land, with<br />

around 11,000 to remain dedicated<br />

to environmental preservation.<br />

Bagorro adds: “When we<br />

commence with phase two of the<br />

project, we will use the remaining<br />

30,106 hectares of arable land. We<br />

continuously use technology to carry<br />

out tests in our seedling nursery to<br />

validate which variety of sugarcane<br />

adapts best to each of the areas of our<br />

farm, in order to maximise crop yields.<br />

“The planting and harvesting of<br />

Biocom lab<br />

sugarcane is already fully mechanised,<br />

and the facility is self-sufficient as<br />

it generates its own electricity. Our<br />

tractors are equipped with autopilot,<br />

which assist us in preparing the soil<br />

for planting, using modern technology<br />

to enable safer and more effective<br />

processes. Biocom is innovative<br />

as it is constantly analysing and<br />

using key learnings to continuously<br />

improve the quality of the soil and as<br />

a result the crops, and we have just<br />

announced a $ 12mn investment in<br />

new equipment to meet the demand of<br />

this year’s harvest. Bagorro goes on to<br />

detail Biocom’s impressive pedigree<br />

regarding agricultural research.<br />

“In May 2017 the Agricultural<br />

Laboratory of Biocom was awarded<br />

an international certificate of quality<br />

by Instituto Agronómico de Campinas<br />

(IAC), in Brazil, one of the world’s most<br />

renowned institutions in the field of<br />

agriculture. Biocom’s Agricultural<br />

Laboratory is equipped with the<br />

highest technology and precision<br />

equipment. It is able to analyse plant<br />

matter (foliar), organic fertiliser, mineral<br />

fertiliser and gypsum as well as<br />

provide agronomic advisory services,<br />

which supplies information on more<br />

accurate dosages of minerals and<br />

14 September 2017


Biocom’s processing plant<br />

fertilisers to be added to the soil for<br />

the various crops to be planted. This<br />

is important as better soil quality will<br />

ultimately result in better crop quality.”<br />

This clever use of technology<br />

and pooling of knowledge has<br />

allowed Biocom to harvest a<br />

much larger area this season, up<br />

from 9,272 hectares to 12,600.<br />

BOUNTIFUL BYPRODUCTS<br />

Crucial though the sugar production<br />

may be, it is the ethanol and electricity<br />

byproducts from the biomass that<br />

make the operation unique. In 2016<br />

Biocom produced 58,000Mwh of<br />

electricity and 14,000 cubic metres<br />

of ethanol. By the 2020/21 season,<br />

it expects to produce four times<br />

more electricity and more than<br />

double the amount of ethanol.<br />

“As Angola’s population<br />

increases, so does energy<br />

demand,” says Lourenço. “This<br />

is why increasing electric power<br />

availability is amongst the Angolan<br />

government’s highest priorities.<br />

It is committed to introducing<br />

15


INSIGHT<br />

16 September 2017


17


INSIGHT<br />

new renewable energy aiming to<br />

increase energy capacity and by<br />

2025 new renewables will constitute<br />

7.5% of all energy produced.<br />

“There is a huge demand for<br />

alternative energy solutions and<br />

we are happy to contribute to its<br />

supply and sustainability. both<br />

environmentally and financially. This<br />

is one of Cochan’s key priorities.”<br />

Bagorro adds that Biocom<br />

has an enormous opportunity to<br />

become the go-to company in<br />

Angola for processed alcohol.<br />

“Data indicates that the country<br />

imports about 80,000 cubic<br />

meters of alcohol per year, and we<br />

currently supply approximately 10<br />

to 15% of the market demand,” he<br />

says. “Biocom produces hydrated<br />

ethanol and it is our ambition to start<br />

the production of neutral ethanol<br />

within the next couple of years.”<br />

A SOCIAL VENTURE<br />

Asides the obvious economic focus,<br />

the venture is also one of sizable social<br />

value, with people at the heart of what<br />

Biocom plans to up<br />

sugar output by more<br />

than 500% by 2020/21<br />

18 September 2017


POWERING ANGOLA’S SUSTAINABLE FUTURE<br />

“Biocom aims to be<br />

amongst the five<br />

largest producers of<br />

sugar in Southern<br />

Africa by 2020/21”<br />

Luís Bagorro Júnior, Deputy<br />

General Manager, Biocom<br />

the project stands for. Indeed, one of<br />

the greatest challenges for Bagorro<br />

is the education of Biocom’s 2,500-<br />

plus workforce, which it expects to<br />

grow to almost 3,000 by 2020/21. The<br />

vast majority (over 90%) are Angolan<br />

nationals, who can all benefit from<br />

Biocom’s Individual Development<br />

Programme, which hones key skills<br />

to develop the leadership team<br />

both now and in the future, with<br />

plans to replace the expatriate<br />

workforce over the next few years.<br />

“Responsibility and sustainability<br />

are cornerstones of our project<br />

and drivers of our strategy,” says<br />

Bagorro. “Biocom invests thousands<br />

of dollars each month in corporate<br />

social responsibility projects and<br />

education of the local community<br />

is one of the key focus areas.<br />

“We promote a literacy programme<br />

for young people and adults which<br />

has already benefitted more than 700<br />

people to date. We also support a<br />

family agriculture programme called<br />

‘Kukula Ku Moxi’ (which means ‘grow<br />

together’), which is improving the lives<br />

of more than 700 families.” Biocom<br />

also supports sports groups aimed<br />

at young people in the community as<br />

well as the children of its employees.<br />

BURNING BRIGHT<br />

Fast forward five to 10 years and<br />

Biocom will hope to see the legacy<br />

of its educational work in action<br />

with the future generation. But what<br />

about the business ambitions for the<br />

project? Bagorro certainly sets a high<br />

bar. “Biocom aims to be amongst<br />

the five largest producers of sugar in<br />

Southern Africa by 2020/21,” he says.<br />

For Lourenço and Cochan, as with<br />

Bagorro, it is all about generating<br />

positivity for customers, suppliers,<br />

partners and communities. “Biocom<br />

shares this vision and its shareholders<br />

are totally focused on creating a<br />

benchmark project in Africa, where<br />

the potential for agriculture is<br />

enormous, but still undeveloped. At a<br />

national level, we want it to continue<br />

its remarkable growth trend.”<br />

19


WATER<br />

TRANSFORMERS<br />

- HOW PPPs ARE<br />

CHANGING UGANDA<br />

African Business Review looks at the<br />

amazing progress that can be achieved<br />

through public-private partnerships…<br />

Written by: GORDON FELLER


A COUNTLESS NUMBER of<br />

academic and government policy<br />

papers have been flowing out of<br />

printers recently, concerning the need<br />

for PPPs (public-private partnerships).<br />

However, there’s been slow and<br />

painful progress on that road, with<br />

only a handful of larger-scale success<br />

stories to show for all of the talk.<br />

But there is some good news.<br />

Micro-scale PPPs do make an<br />

impact. Succeeding in some tough<br />

environments, they help to show the<br />

way forward; lessons being learned<br />

in places where one might least<br />

expect to find them. The development<br />

of small-scale water PPPs in<br />

Uganda is a very good example.<br />

The back-story is about reforms,<br />

implemented by the national<br />

Ministry of Water. These changes<br />

were aimed squarely at facilitating<br />

both change and growth in the<br />

local water marketplaces.<br />

Spying some real opportunities to<br />

make a difference, the World Bank<br />

financed the development of smalltown<br />

water infrastructure, particularly<br />

in those types of towns where the<br />

national government began its<br />

programs. The effort was kickstarted<br />

by the introduction of one-year area<br />

21


WATER<br />

performance contracts (APCs) which<br />

remunerated local managers, but<br />

only based on actual results. One<br />

key to that strategy: bonuses and<br />

penalties (of up to 25% of basic salary)<br />

were intrinsically tied to targets.<br />

Under the APCs, the operational<br />

performance of the largest utility that<br />

implemented APCs in secondary<br />

towns rose strongly: non-revenue<br />

water decreased from 32% to 22%<br />

in fewer than three years, and bill<br />

collection dramatically improved.<br />

The introduction of APCs in small<br />

towns attracted private operators to<br />

the operation and as a consequence,<br />

there was improved management<br />

of water supply, service<br />

quality and<br />

‘Micro-scale<br />

PPPs do make<br />

an impact.<br />

Succeeding in<br />

some tough<br />

environments,<br />

they help to show<br />

the way forward’<br />

customer satisfaction.<br />

In 2008, the Ugandan government<br />

started signing output-based<br />

aid contracts with these private<br />

operators to design, build and<br />

operate water systems. Under this<br />

scheme, 961 connections have<br />

been completed (out of 2,000<br />

planned), along with 450 verified<br />

yard taps benefiting 8,100 people.<br />

As of 2010, 18 private operators<br />

were running 95 water systems in<br />

small towns. The number of towns<br />

being serviced increased from 15<br />

in 2001-2 to over 90 in 2010-11.<br />

Since the launch of private sector<br />

participation sector reform, private<br />

operators in small towns improved<br />

tariff collection and achieved<br />

almost universal metering, while<br />

maintaining affordable tariffs.


One example is the town of<br />

Busembatia where the local<br />

PPP attracted the private sector<br />

in construction, operation and<br />

management of drinking water<br />

distribution networks in small towns<br />

and rural growth centres. The<br />

International Finance Corporation<br />

provided support for three program<br />

components: transaction advice,<br />

public sector capacity and access<br />

to finance. Due diligence identified<br />

contracts of short duration and<br />

varying performance. To address<br />

these shortcomings and ensure ease<br />

of management and administration,<br />

a generic contract with a minimum<br />

term of five years was proposed to<br />

both private operators and lenders.<br />

Following a prequalification<br />

process, three local companies were<br />

invited to submit a bid for a five-year<br />

management contract in Busembatia.<br />

The contract was awarded to Trandint<br />

Ltd, one of the largest local private<br />

operators in Uganda, managing 12<br />

small town water systems. Trandint<br />

satisfied technical requirements, secured<br />

23


WATER<br />

DEFINING PPPS<br />

A public-private<br />

partnership (PPP)<br />

is a contractual<br />

arrangement between<br />

a public agency (federal,<br />

state or local) and<br />

a private sector entity.<br />

Through this agreement,<br />

the skills and assets<br />

of each sector<br />

(public and private) are<br />

shared in delivering<br />

a service or facility<br />

for the use of the<br />

general public.<br />

24 September 2017


TRANSFORMERS - HOW PPPS ARE CHANGING UGANDA<br />

a financing arrangement with lenders,<br />

and offered the lowest total bid price<br />

of $270,000. The new operator agreed<br />

to install 400 new connections during<br />

the first two years while avoiding<br />

increased tariffs for the duration of<br />

the five-year management contract.<br />

The majority of the capital was<br />

invested by the ‘global partnership’<br />

on output-based aid. However, the<br />

new operator needed to pre-finance<br />

the investment in order to access<br />

this output-based grant. The grant<br />

was released upon certification of<br />

commissioning and verification of<br />

output.<br />

‘The effort was<br />

kickstarted by the<br />

introduction of oneyear<br />

area performance<br />

contracts (APCs)<br />

which remunerated<br />

local managers,<br />

but only based on<br />

actual results’<br />

The tariff level and the tariff adjustment<br />

procedures were predefined and<br />

included in the contracts with the<br />

private operators. For pre-financing,<br />

DFCU Bank, a Ugandan commercial<br />

bank, loaned approximately<br />

$100,000 to the winning bidder<br />

for the Busembatia contract.<br />

During the first year of the project,<br />

the residents of Busembatia have seen<br />

a dramatic improvement in the quality<br />

and level of water services. A total of 430<br />

connections have been installed, water<br />

production has increased from eight to<br />

21 cubic metres an hour and collection<br />

rates have increased from 70% to 85%.<br />

A significant achievement of the<br />

project was the access-to-finance<br />

component. This was the first time<br />

that a local bank had provided<br />

finance against water supply<br />

operations. Previously, private<br />

operators in Uganda raised<br />

financing by using overdraft<br />

facilities provided by the<br />

banks or secured loans<br />

using other existing<br />

business. Following this<br />

example, other local<br />

banks have now begun<br />

to offer financing for<br />

water operations.<br />

25


TOP 10<br />

TOP<br />

AFRICAN<br />

STARTUPS<br />

Edited by: ANDREW WOODS<br />

AFRICAN STARTUPS, particularly<br />

those involved in tech industries, are on<br />

a roll. According to a recent study by<br />

Partech Ventures, 2016 was a recordsetting<br />

year for African technology<br />

startups, as they raised $366.8mn in<br />

venture capital funding. We expect<br />

that 2017 will bring more of the same,<br />

and so we’ve compiled a list of the<br />

top 10 African startups for 2017,<br />

for your investing consideration


TOP 10<br />

10 PRINTIVO<br />

Country: NIGERIA<br />

www.printivo.com<br />

The first company up on our list sets the bar quite high, as Nigerian<br />

digital printing startup Printivo holds the title of 2016’s most investable<br />

startup in Nigeria. Printivo is looking to grow Nigeria’s $200mn print<br />

market by working with Nigerian startups, small and medium enterprises<br />

(SMEs) and international companies to ease the printing process. The<br />

company’s website is second-to-none and its early successes are<br />

attracting the likes of Google, Samsung, Stanbic, Honda and Uber.<br />

Print It Yourself with<br />

Printivo.com video<br />

28 September 2017


AFRICAN STARTUPS<br />

09 TRESS<br />

Country: GHANA<br />

www.tressapp.co<br />

Tress, from Ghana, is a social haircare app for black women. The<br />

company allows black women from around the world to collaborate<br />

and share hairstyles specifically for black women and includes<br />

detailed information on stylists, products and techniques employed.<br />

Given that the global black haircare market is estimated at more<br />

than $500bn, we think Tress is looking at the right space.<br />

29


TOP 10<br />

08 SPACEPOINTE<br />

Country: NIGERIA<br />

www.spacepointe.com<br />

Spacepointe is a Nigerian software developer focused on SMEs,<br />

especially in the retail space. The company raised $1.2mn from<br />

investors in 2016 and is poised to take the African SME retail market<br />

by storm with its in-store management and point-of-sale (PoS)<br />

software applications. Its CommercePointe platform is specifically<br />

designed for management in the informal sector and is bound to<br />

find tremendous utility throughout the continent.<br />

The SpacePointe<br />

corporate video<br />

30 September 2017


AFRICAN STARTUPS<br />

Dr CADx<br />

Demo video<br />

07<br />

DR. CADX<br />

Country: ZIMBABWE<br />

www.drcadx.com<br />

Dr. CADx is one of the newest companies on our list, having been<br />

formed only in August 2016, but the company’s technology is very<br />

exciting. The team at Dr CADx is developing computer-aided medical<br />

diagnostic tools that will improve medical diagnoses even in remote<br />

areas. The platform is particularly good at radiology diagnoses without<br />

the aid of radiologists – a prototype achieved 82% accuracy in a<br />

test of chest X-rays of people with tuberculosis and lung cancer.<br />

31


TOP 10<br />

06 TUTORAMA<br />

Country: EGYPT<br />

www.tutorama.me<br />

Egyptian startup Tutorama is another relatively new company,<br />

having been founded in January 2016. Tutorama is an educational<br />

technology firm that provides a platform for parents to connect with<br />

tutors in their nearby geographic area. The company won MIT’s<br />

Enterprise Forum Arab Startup Competition in 2016 and its platform<br />

has gone live with a clean, functional-looking customer interface.<br />

32 September 2017


AFRICAN STARTUPS<br />

05<br />

CUSTOS MEDIA TECHNOLOGIES<br />

Country: SOUTH AFRICA<br />

www.custostech.com<br />

South African tech startup Custos Media Technologies uses the Bitcoin<br />

blockchain to fight piracy of digital media. The company’s patented<br />

technology creates a sort of digital “watermark” to detect illegal<br />

sharing of videos, ebooks and other media. So while Bitcoin and other<br />

cryptocurrencies may be experiencing a global crash, Custos Media<br />

Technologies might have created a new market that could revive an old<br />

one, as industries such as music and other creative industries have been<br />

screaming about the effect of digital piracy on their markets for years.<br />

33


TOP 10<br />

04<br />

SOUTH AFRICAN CAPE<br />

Country: SOUTH AFRICA<br />

www.capenetworks.com<br />

South African Cape, rebranded from Asimmetric, was founded in<br />

February 2015. After becoming the first South African company<br />

to join San-Francisco-based accelerator Highway1, the company<br />

managed to raise a “seven-figure dollar funding round” from US<br />

investors. Cape’s innovative WiFi network monitoring product can<br />

help solve a stubborn, all-too-common problem across the African<br />

continent – poor WiFi connectivity. Cape describes their product<br />

as the simplest WiFi monitoring tool available and the company<br />

definitely seems to be on the upswing.<br />

34 September 2017


AFRICAN STARTUPS<br />

03 FUZU<br />

Country: KENYA<br />

www.fuzu.com<br />

Fuzu is an online career<br />

development platform launched<br />

from tech-savvy Kenya in 2015.<br />

The company helps users to<br />

learn new skills, access career<br />

counselling and search for<br />

jobs at all educational levels.<br />

Employers gain access to<br />

candidates who have been<br />

evaluated and ranked by Fuzu’s<br />

algorithm. We think they’re<br />

pretty great, but apparently<br />

we’re not the only ones – they<br />

raised a total of $1.88mn by<br />

December 2016.<br />

How Fuzu<br />

works video<br />

35


TOP 10<br />

02 FLARE<br />

Country: KENYA<br />

www.flare.capsule.co.ke<br />

Another Kenyan entrant comes in at number two. Flare is looking<br />

to revolutionise emergency healthcare starting in Nairobi by<br />

connecting ambulances with patients or hospitals who need them.<br />

Currently, Nairobi has up to a hundred idle ambulances at any<br />

given time, while needy patients can’t seem to find ambulances<br />

when they need them. If Flare is able to solve this problem,<br />

they’ll soon find a market in cities all across the continent.<br />

36 September 2017


AFRICAN STARTUPS<br />

01 JAMII<br />

Country: TANZANIA<br />

www.jamiiafrica.com<br />

Tanzania’s Jamii is our current champ. Jamii provides a mobile<br />

micro-health insurance product for low income and informal<br />

workers. The company has backing from none other than the<br />

Bill and Melinda Gates Foundation, and won the Tanzanian<br />

leg of Seedstars World. While the US struggles with healthcare,<br />

Jamii is working to solve this problem through technology<br />

and the free market as the company looks to launch in Kenya,<br />

Uganda, Ghana, Nigeria, and South Africa this year.<br />

37


KEFI MINERALS:<br />

STRIKING GOLD<br />

WITH ETHIOPIAN<br />

EXPERTISE<br />

Written by: Laura Mullan<br />

Produced by: Richard Deane


39


As Ethiopia becomes<br />

the fastest growing<br />

economy in the world,<br />

KEFI Minerals looks set<br />

to lay the foundations<br />

for the country to<br />

become a major player<br />

in the mining market,<br />

all through its flagship<br />

Tulu Kapi Gold project<br />

Hidden in the remote hills of<br />

Western Ethiopia lies the<br />

Tulu Kapi Gold Project - a<br />

lucrative mining operation owned<br />

by KEFI Minerals. Thanks to the<br />

company’s hands-on business<br />

approach, Tulu Kapi Gold Project<br />

will not only generate an impressive<br />

gold yield once operational in<br />

2019, it will also make a lasting<br />

contribution to the local community.<br />

Executive Chairman of KEFI<br />

Minerals, Harry Anagnostaras-Adams,<br />

has an impressive portfolio of work<br />

- stretching from Europe to Africa,<br />

Australia, and the Middle East. But it is<br />

the company’s projects in the Arabian-<br />

Nubian shield, such as the Tulu Kapi<br />

project, which he believes are gamechanging.<br />

“Some of the team at KEFI<br />

Minerals are from Western Australia,<br />

an area which is geologically similar<br />

to the Arabian-Nubian shield, and<br />

so we feel we know what’s going to<br />

happen,” says Anagnostaras-Adams.<br />

“The Arabian-Nubian shield -<br />

including Ethiopia and Saudi Arabia<br />

- will go through a transformation over<br />

the next few decades to become one<br />

of the world’s major mining and metal<br />

production regions. Therefore, we feel<br />

that we are being focused enough, and<br />

40 September 2017


MINING<br />

980,000oz<br />

Open-pit gold output forecast<br />

at Tulu Kapi over 10 years<br />

careful enough, and successful enough to establish a<br />

platform there and be a part of that from ground zero.”<br />

Trenching work<br />

at the Tulu Kapi<br />

gold project<br />

Gold sample from<br />

the surveying work<br />

Ethiopia’s gold rush<br />

According to the World Bank, Ethiopia is now the<br />

fastest growing economy in the world, meaning<br />

that investment, particularly in gold, is high on the<br />

country’s agenda. “It’s a completely transforming<br />

country,” notes Anagnostaras-Adams. “It’s changing<br />

its education system, its infrastructure, it’s investing<br />

in energy, and industrialisation is booming.”<br />

Spotting the opportunity to invest in 2015, the<br />

Ethiopian government backed the Tulu Kapi Gold<br />

Project by granting it a mining licence and in doing<br />

so, became entitled to a 5% free-carry interest<br />

in the mine. It’s an alliance that Anagnostaras-<br />

Adams describes as “critical” to the success of the<br />

company and one which it strives to maintain.<br />

However, it’s not just the government’s financial<br />

push which is crucial to the London-listed firm.<br />

“Part of the relationship is about funding,” reflects<br />

Anagnostaras-Adams, “but another part of it is<br />

about dealing with social issues in the area.<br />

“We want to ensure the community is a strong<br />

www.kefi-minerals.com 41


KEFI MINING<br />

IAN PLIMER<br />

Non-Executive Director<br />

FABIO GRANITZIO<br />

Group Exploration Manager<br />

“The Arabian-<br />

Nubian shield -<br />

including Ethiopia<br />

and Saudi Arabia<br />

- will go through a<br />

transformation over<br />

the next few decades<br />

to become one of<br />

the world’s major<br />

mining and metal<br />

production regions”<br />

HARRY ANAGNOSTARAS ADAMS<br />

Executive Chairman<br />

42 September 2017


MINING<br />

KEBEDE BELETE Country Manager Ethiopia<br />

NORMAN LING<br />

Non-Executive Director<br />

JEFF RAYNER Adviser Exploration and Corporate Development<br />

www.kefi-minerals.com 43


MINING<br />

backer of the mine, not just tolerating<br />

it, but actually wholeheartedly<br />

supporting it and I think the<br />

government’s involvement as a<br />

partner is critical in that capacity.<br />

“It’s important that the local<br />

community and population recognises<br />

that it’s important for the country<br />

and it’s a true partnership. It’s not<br />

just foreigners coming in to exploit<br />

minerals but it’s foreigners coming in to<br />

introduce training and other benefits to<br />

the community and country at large.”<br />

Bringing about positive change<br />

KEFI Minerals and the Ethiopian<br />

government both strive to sustain<br />

this win-win relationship - however,<br />

ultimately, the key beneficiary<br />

from the partnership is the local<br />

community. Through workforce<br />

training, infrastructure development,<br />

and creating a local supply chain,<br />

KEFI Minerals has already begun to<br />

leave a lasting legacy in Ethiopia.<br />

“The community undeniably has<br />

more infrastructure, more livelihood<br />

Geologists<br />

taking structural<br />

measurements in<br />

the core yard<br />

www.kefi-minerals.com 45


KEFI MINERALS LTD<br />

opportunities, and more economic<br />

opportunities than ever,” says<br />

Anagnostaras-Adams, “but the really<br />

important thing that we provide is the<br />

supply chain and the employment<br />

because that provides a significant<br />

flow of money to the community.<br />

“Clearly from a social value point<br />

of view, our business wants to bring<br />

benefits, training and skills to the<br />

country, rather than just importing<br />

labour and exporting materials. But<br />

even from a purely financial point of<br />

view, you can see that the stability,<br />

cost base, and commitment of the<br />

workforce is far greater if you can<br />

source work and embed it into the local<br />

community as much as possible, rather<br />

than employing foreign workers.”<br />

A high grade and low cost project<br />

The emerging gold miner first acquired<br />

Tulu Kapi back in 2014; a significantly<br />

advanced project that had seen $50mn<br />

of investment from an English-based<br />

consortium. “We took the project back<br />

to square one,” notes Anagnostaras-<br />

Adams, “and that transformed<br />

the economics of it on paper.”<br />

From carefully tweaking the mining<br />

method to reviewing the data base,<br />

KEFI Minerals has significantly<br />

developed the mine plans further,<br />

aiming for a late 2019 production date.<br />

“For us, the key is to<br />

be hands on, embed<br />

ourselves in the<br />

country, and build<br />

relationships from<br />

the ground up”<br />

HARRY ANAGNOSTARAS-ADAMS,<br />

EXECUTIVE CHAIRMAN, KEFI MINERALS<br />

46 September 2017


KEFI MINERALS LTD<br />

This notably enhanced the efficiency<br />

of the mine, which Anagnostaras-<br />

Adams says will establish Tulu Kapi as<br />

a high grade and low-cost project.<br />

Open-pit gold production is forecast<br />

to hit 980,000oz over 10 years, however,<br />

this development would not have been<br />

possible without the help of contractors<br />

Ausdrill and Lycopodium, who are<br />

viewed more as partners for the firm.<br />

The two heavyweights bring over<br />

20 years of experience working in the<br />

mining industry in Africa. “They are a<br />

vital key to the ongoing development<br />

of the project and the wider company,”<br />

says Anagnostaras-Adams. “They<br />

have such a long record of success<br />

in different African mining countries<br />

and therefore they are well equipped<br />

to bring their training systems and<br />

experiences to a new Tulu Kapi.<br />

“Their roles are very far-reaching<br />

1.0mn<br />

ounces<br />

Probable Tulu<br />

Kapi ore reserve<br />

1.7mn<br />

ounces<br />

The total mineral<br />

resources at Tulu Kapi<br />

48 September 2017


MINING<br />

In the remote<br />

hills of Western<br />

Ethiopia lies<br />

the Tulu Kapi<br />

Gold Project - a<br />

lucrative mining<br />

operation owned<br />

by KEFI Minerals<br />

for us - they are the foundations of our HR<br />

management, of our operational management,<br />

and our financial management - so our<br />

relationship couldn’t be any more important.”<br />

Forging relationships on the ground<br />

With two operational mines and a cost-effective<br />

portfolio to explore, KEFI Minerals has big ambitions<br />

for the region. But in an industry that is constantly<br />

evolving, how can KEFI Minerals stay one step ahead?<br />

“Our business style is that we run a very small<br />

head office in Cyprus, but everyone else is based<br />

at the sites where the action is. I spend more<br />

time myself in Saudi Arabia and Ethiopia than<br />

anywhere else,” says Anagnostaras-Adams.<br />

“For us, the key is to be hands on, embed ourselves<br />

in the country, and build relationships from the ground<br />

up which is where the relationship with the government<br />

comes in - they see the commitment of the people on<br />

the ground. So that’s our philosophy, that’s our style,<br />

and as we grow it will be our challenge to grow and<br />

still maintain that. I like to think that it sets us apart.”<br />

In the four years spent developing Tulu Kapi, working<br />

with local and national stakeholders, KEFI Minerals<br />

has developed the mine plans in a cost-effective<br />

manner and has done so whilst making an active,<br />

positive and long-lasting contribution to the locality.<br />

Through Tulu Kapi, KEFI Minerals laid the<br />

foundations for Ethiopia to one day become<br />

a major player in the mining industry.<br />

www.kefi-minerals.com 49


AN INTRODUCTION<br />

FROM THE KENYA<br />

MINISTRY OF MINES<br />

Written by: Dale Benton Produced by: Richard Deane


51


MINISTRY OF MINERAL RESOURCES<br />

Dan Kazungu, Cabinet Secretary,<br />

Ministry of Mining, Republic of<br />

Kenya, introduces our special focus<br />

on the growing mining sector in Kenya<br />

CAN YOU GIVE US A BRIEF<br />

HISTORY OF THE MINISTRY<br />

OF MINES IN KENYA?<br />

The ministry of mining was established<br />

in 2013 through a decision by<br />

president Uhuru Kenyatta to create<br />

a new ministry mandated solely to<br />

grow the mining sector after having<br />

been given prominence by vision<br />

2030 pillar seven, which identified<br />

mining or the extractives sector as<br />

a key contributor to a diversified<br />

economy with the potential for jobs<br />

and wealth creation for Kenya.<br />

WHAT IS THE HISTORY OF THE<br />

MINING SECTOR IN KENYA?<br />

Traditionally, mining was not the<br />

primary focus for Environment and<br />

natural resources management<br />

- mining was largely ignored. Its<br />

therefore no wonder that Kenya never<br />

realized the full potential of mining<br />

until 2013 after President Uhuru<br />

Kenyatta’s administration whose<br />

transformation agenda included<br />

bringing mining to the forefront.<br />

With that, Kenya’s mining journey<br />

began in earnest and the country<br />

52 September 2017


MINING<br />

kicked off on a reform agenda<br />

to transform mining to be more<br />

inclusive, modern, ensure the sector<br />

attracts responsible investors and to<br />

legitimize artisanal and small-scale<br />

miners while having community<br />

(Kenyans) benefits taken care of.<br />

WHAT IS THE ROLE AND THE<br />

VISION OF THE MINISTRY<br />

IN TODAY’S INDUSTRY?<br />

The goal of the ministry is to transform<br />

mining to become a key contributor<br />

to the economic growth and<br />

transformation of the country. The aim<br />

is to see growth and GDP in the mining<br />

sector hit double digits. We see Kenya<br />

as a hub for mineral trading and value<br />

addition for east and central Africa,<br />

leading in technical expertise, logistics,<br />

funding for mineral projects and<br />

services. We have plans to consolidate<br />

leadership through the set-up of a<br />

regional mineral and metals exchange.<br />

To achieve this, the ministry is tasked<br />

to promote Kenya as a minerals hub for<br />

players across the board by carrying<br />

out the right reforms and creating an<br />

environment that ensures that mining<br />

investments thrive based on a win-win<br />

formula, i.e. for the investor, national<br />

government, county government<br />

and the communities. The ministry<br />

is making deliberate efforts in the<br />

spirit of inclusivity to Kenyans who<br />

have been excluded from the mining<br />

eco-system to now be a part of it. In<br />

addition, efforts are being made to<br />

attract large-scale mining in the country<br />

to bring in investment, technology<br />

transfer, technical expertise and highly<br />

specialised jobs and opportunities.<br />

CAN YOU TELL US ABOUT<br />

THE CHANGING FACE OF<br />

KENYA’S MINING INDUSTRY?<br />

As a country Kenya is proud to state<br />

that in the first year of its reform, efforts<br />

to create a robust mining climate have<br />

started to bear fruit. According to the<br />

global mining investment attractiveness<br />

index by the Fraser institute, Kenya has<br />

jumped 16 places up to position 86<br />

in 2016 from position 102 in 2015 in a<br />

global mining attractiveness survey.<br />

Today, Kenyans are more aware of<br />

the opportunities in the mining sector<br />

(especially artisanal miners) that are<br />

www.mining.go.ke 53


MINISTRY OF MINERAL RESOURCES<br />

now claiming their space encouraged<br />

by the progressive mining law in place.<br />

Small and Medium Scale miners<br />

are showing increased interest too.<br />

Exploration and mining companies<br />

are in Kenya carrying out exploration<br />

leading to the announcement of what is<br />

considered the biggest gold discovery<br />

on the continent - 1.3mn ounces of<br />

inferred gold along the Liranda corridor<br />

in Ikolomani in Western Kenya.<br />

Large-scale mining investments<br />

are coming to Kenya for example<br />

Base Resources (Base Titanium)<br />

that is the single largest mining<br />

company in the country, Acacia<br />

Mining, Gold Plat, Tata (Magadi<br />

soda), Lafarge limestone project.<br />

WHY HAS IT TAKEN SO LONG,<br />

IN YOUR OPINION, FOR KENYA<br />

TO REALISE THE ENORMOUS<br />

ECONOMIC POTENTIAL OF<br />

ITS NATURAL RESOURCES?<br />

It all comes down to leadership and<br />

vision. Over the years industry players<br />

have been talking about mining<br />

opportunities. It takes leadership<br />

to transform this, to real worth. This<br />

is what formed the vision to grow<br />

Kenya’s into a medium sized economy.<br />

The other reason is socio-economic<br />

socialisation as over the years, Kenya<br />

was presumed to be an agricultural<br />

economy and so little attention<br />

was paid to mineral exploitation.<br />

YOUR MINISTRY’S WORK,<br />

LEGISLATION AND<br />

COLLABORATIVE APPROACH HAS<br />

BEEN PRAISED BY SOME OF THE<br />

MAJOR MINING OPERATIONS<br />

IN THE COUNTRY. HOW<br />

IMPORTANT IS TO MAINTAIN<br />

GOOD RELATIONSHIPS?<br />

As a country, we believe strongly<br />

that to create a robust investment<br />

environment, relationships are<br />

extremely key and not about shortterm<br />

gains. Mining projects are by<br />

nature long-term and therefore the<br />

relationships built should be longterm.<br />

This is the natural habit to adopt,<br />

not just to please investors but also<br />

to create a “win-win-win-win” in the<br />

sector. This is the only sustainable<br />

way; – win for the investor who<br />

takes the risk (sometimes massive<br />

54 September 2017


MINING<br />

“As a country,<br />

we believe<br />

strongly that to<br />

create a robust<br />

investment<br />

environment,<br />

relationships are<br />

extremely key<br />

and not about<br />

short-term gains”<br />

DAN KAZUNGU<br />

Cabinet Secretary Ministry<br />

of Mining, Republic of Kenya<br />

www.mining.go.ke 55


isks) and creates jobs, win for the<br />

national government that creates the<br />

enabling environment for investments<br />

to flourish and prosper, win county<br />

governments as that is where all<br />

mining projects are established and<br />

last win for the local community as<br />

Kenyans are the core beneficiaries of<br />

the mining activities in the country.<br />

WHAT OTHER WORK IS THE<br />

MINISTRY DOING TO SEEK<br />

OUT NEW POTENTIAL AREAS<br />

FOR EXPLORATION?<br />

Private companies such as Base<br />

Titanium carry out geological surveys<br />

that share data with the ministry, which<br />

is encouraged practice. The country<br />

has put in effort to do a comprehensive<br />

nationwide airborne geophysical<br />

mapping survey in order to identify new<br />

potential areas for mineral discovery.<br />

Both investors and government have<br />

been keen to have the latest data on<br />

minerals in the country. The finalisation<br />

of this survey will be a key milestone for<br />

Kenya’s mineral development, as it will<br />

drive key interest and attractiveness to<br />

Kenya as a modern mining jurisdiction.<br />

YOU HAVE CREATED AN<br />

AMBITIOUS 20-YEAR STRATEGY<br />

FOR THE SECTOR WITHIN THE<br />

2030 VISION. TELL US ABOUT<br />

56 September 2017


MINING<br />

IT AND WHETHER YOU FEEL<br />

YOU ARE ON COURSE? WITH<br />

ELECTIONS APPROACHING, HAVE<br />

YOU LAID A FIRM FOUNDATION?<br />

Kenya’s 20-year strategy is part of what<br />

we call the 6-pack initiative that was a<br />

realization that in order to promote an<br />

attractive and robust proper mining<br />

environment, six key components have<br />

to be achieved; the strategy itself that<br />

outlines how Kenya will leapfrog this<br />

mining journey to become a key player<br />

in the region and in the world, mining<br />

policy that aims at creating the right<br />

environment for reform, repealing old<br />

laws and building institutions while<br />

looking at issues of inclusivity and<br />

environmental concerns, Mining Act<br />

2016, the most progressive mining<br />

law in Africa, the mining regulations<br />

to enable the implementation of the<br />

mining law, a fiscal Policy framework<br />

to ensure Kenya has both an attractive<br />

and competitive tax and royalty regime<br />

and finally availability of the latest data.<br />

The idea here has been that for the<br />

country to get its basic right by laying<br />

the foundation for a successful sector.<br />

Kenya has also learned lessons from<br />

her peers in mining that if the basics<br />

are not in place, things can go wrong.<br />

CAN YOU DETAIL THE<br />

IMPORTANCE OF EVENTS<br />

SUCH AS THE KENYA MINING<br />

FORUM TO HELP PROMOTE<br />

THE SECTOR NATIONALLY<br />

AND INTERNATIONALLY?<br />

The Kenya Mining Forum and other<br />

such like events are designed to bring<br />

investors into the country and the entire<br />

region for them to experience first-hand<br />

Kenya’s mining sector. The first edition<br />

of the KMF in 2016, attracted close<br />

to 400 investors from 15 nationalities.<br />

The second edition is expected<br />

to be even bigger than the first.<br />

TELL US HOW IMPORTANT YOU<br />

THINK THE UPCOMING MINING<br />

FORUM IS IN NOVEMBER.<br />

I welcome you all to Nairobi for the<br />

second edition of the Kenya Mining<br />

Forum in November. We are ready<br />

to network, share thoughts and<br />

experiences and above all we want<br />

to do business because Kenya is<br />

open for Mining Business.<br />

www.mining.go.ke 57


KENYAN<br />

MINING<br />

ON THE RISE<br />

Written by: Dale Benton<br />

Produced by: Richard Deane


59


BASE TITANIUM, A CRUCIAL PLAYER<br />

IN KENYA’S EMERGING MINING<br />

MARKET, HAS BEEN FORMALLY<br />

ACCREDITED BY KENYA VISION 2030<br />

AS ITS FLAGSHIP MINING PROJECT<br />

The Kenyan mining industry is on the<br />

rise. Historically, the country focused<br />

on agriculture, tourism, services and<br />

manufacturing as its main economic pillars, but<br />

in recent years, that focus has begun to shift<br />

towards extractives – both oil and mining.<br />

“In the past mining was not seen as a significant<br />

sector of the economy – that is until Base Titanium’s<br />

Kwale Mine entered into production in early 2014,”<br />

says Joe Schwarz, General Manager – External<br />

Affairs and Development, Base Titanium. “The<br />

industry is now contributing around 1% to the GDP,<br />

but with increased interest in extractives and a<br />

friendly investment climate that will increase.”<br />

FLYING THE FLAG FOR KENYA<br />

In 2013 the Government of Kenya created, for<br />

the first time, the stand-alone Ministry of Mining<br />

in recognition of the emergence of mining, led<br />

by Base Titanium, as an increasingly important<br />

sector of the economy with real growth potential.<br />

“Establishing the Ministry of Mining has really<br />

given the mining industry in Kenya a new focus and<br />

impetus,” Schwarz says. “With the Ministry and Base<br />

Titanium working collaboratively to promote further<br />

60 September 2017


MINING<br />

An aerial view of<br />

dozer mining in<br />

the Central Dune<br />

at Base Titanium’s<br />

Kwale Mine.<br />

www.basetitanium.com 61


BASE TITANIUM<br />

“It’s absolutely vital that we play our part, we<br />

are guests in the community and must obtain<br />

a social license to ensure a harmonious and<br />

mutually beneficial operating environment”<br />

– Joe Schwarz, General Manager – External Affairs and Development<br />

Magaoni Secondary school built by Base Titanium.<br />

The company is investing heavily in local education.<br />

62 September 2017


MINING<br />

Sorghum – one of the<br />

crops supported under<br />

the livelihood programme.<br />

investor interest in the sector, we stand<br />

as a benchmark for others to emulate.”<br />

This relationship with the Ministry of<br />

Mining is important, not only for Base<br />

Titanium, but for any future mining<br />

projects in Kenya that will contribute<br />

to the achievement of country’s Vision<br />

2030 objectives of establishing Kenya<br />

as a middle-income country by 2030.<br />

For Schwarz, that relationship<br />

with the Ministry is crucial in jointly<br />

driving the mining agenda by<br />

attracting serious investment into<br />

exploration and development in<br />

a mutually beneficial manner.<br />

Collaboration is key and this has<br />

also allowed Base Titanium, through<br />

the Kenya Chamber of Mines, to<br />

work closely with the Ministry of<br />

Mining on formulating the Mining<br />

Regulations after the Mining Act<br />

2016 took effect in May last year.<br />

“We provided significant input<br />

to the public review process.<br />

With this positive relationship we<br />

are able to exchange views in a<br />

constructive manner to achieve a<br />

balanced outcome,” Schwarz says.<br />

www.basetitanium.com 63


BASE TITANIUM<br />

“As Kenya’s leading mining<br />

company, working with the Ministry,<br />

we have also had opportunities<br />

to jointly promote Kenya as an<br />

investment destination.” “Being<br />

the preeminent mining company<br />

in the country, we shall again be<br />

playing a leading role in supporting<br />

the November 2017 edition of<br />

the Kenya Mining Forum as its<br />

main sponsor,” Schwarz adds.<br />

“We fully support Mining Cabinet<br />

Secretary Dan Kazungu’s philosophy<br />

Building skills in<br />

mineral processing.<br />

of making Kenya a predictable, stable<br />

and attractive investment destination<br />

and work with the government to<br />

showcase the country at events<br />

such as this.” This forum is the<br />

premium annual mining investment<br />

event, showcasing Kenya’s potential<br />

and ‘open for business’ stance.<br />

LEADING FROM THE FRONT<br />

Construction of the Kwale Mine<br />

was completed in 2013 and the first<br />

shipment of ilmenite left its port<br />

facility in February 2014. Since then<br />

a number of process optimisations<br />

have been successfully completed to<br />

improve efficiencies and debottleneck<br />

the plant. Hydraulic mining has been<br />

successfully introduced and will<br />

ultimately replace dozer mining and<br />

the wet concentrator will soon be<br />

uprated to fully utilise the minerals<br />

separation plant capacity as mining<br />

moves to lower grade areas.<br />

In the fourth year of its 11-year<br />

mine life, 2017 proved to be a highly<br />

successful year for the project. Over<br />

10mn tonnes of ore were mined<br />

leading to a combined 671,000<br />

tonnes of ilmenite, rutile and zircon<br />

64 September 2017


MINING<br />

being exported as the market for<br />

all three products showed signs<br />

of significant improvement.<br />

The importance of Kwale to the<br />

Kenyan mining industry is amply<br />

illustrated by the fact that it now<br />

contributes close to 60% of the total<br />

value of Kenya’s minerals output.<br />

Regional exploration to extend the<br />

life of the mine is one of the company’s<br />

key future growth strategies. The<br />

initial phase has been successfully<br />

completed and plans are in hand for<br />

further exploration in the coming year.<br />

But for Schwarz, the success of<br />

the Kwale Mine and Base Titanium<br />

extends well beyond its core mining<br />

operations. He also measures the<br />

success of the company through<br />

its role in building the mining<br />

economy and giving back to its host<br />

communities by improving their<br />

livelihoods in a sustainable manner.<br />

“The cornerstone of our philosophy<br />

is the flow of mutual benefits,” he says.<br />

“It has to be win-win for everyone, all<br />

the stakeholders must share in the<br />

benefits – Government, investors<br />

and the local communities.”<br />

During the construction phase of<br />

Spirals in the wet<br />

concentrator.<br />

www.basetitanium.com 65


BASE TITANIUM<br />

the project Base Titanium spent one<br />

third of the $320mn capital cost with<br />

Kenyan suppliers and contractors.<br />

THE COMMITMENT TO<br />

MAXIMISING LOCAL CONTENT<br />

DIDN’T END THERE<br />

In operation, the company continually<br />

aims to maximise local procurement,<br />

spending $37mn annually (or 84%<br />

of the total) on spares, consumables<br />

and services purchased from local<br />

suppliers. In all, Base Titanium expects<br />

to contribute close to $1bn to Kenya’s<br />

GDP through the period of 2015-2025.<br />

“Viewing direct revenues from<br />

a mining operation of this scale in<br />

isolation is to see only a quarter of<br />

the picture” he says. “The indirect<br />

and induced economic stimulus<br />

generated beyond this through wider<br />

employment creation, the supply<br />

chain, consumer spending and<br />

taxation is enormous in comparison.”<br />

ENHANCING A COMMUNITY<br />

For any mining operation, the role of<br />

the local community can never be<br />

66 September 2017


MINING<br />

Ship loading at the dedicated port facility. In 2016 the Kwale<br />

Mine accounted for close to 60% of Kenya’s mineral output.<br />

underestimated. Base Titanium has<br />

proven that it is a key contributor<br />

to the Kenyan economy, but how is<br />

the local community benefitting?<br />

To date, the company has invested<br />

$10mn in four pillars of community<br />

development; social infrastructure,<br />

livelihood enhancement, health<br />

programmes and education.<br />

“It’s absolutely vital that we play our<br />

part, we are guests in the community<br />

and must obtain a social license to<br />

ensure a harmonious and mutually<br />

beneficial operating environment,”<br />

Schwarz says. “Such benefits need<br />

to be tangible and sustainable.”<br />

Base Titanium has built a number<br />

of schools and health facilities, sunk<br />

community boreholes and supports<br />

various medical campaigns such<br />

as immunisations and training<br />

community health workers. Provision<br />

of secondary and tertiary scholarships<br />

has so far benefitted close to 1,000<br />

students from needy families.<br />

“The centre piece of our<br />

community programmes right<br />

now is creating and supporting<br />

www.basetitanium.com 67


BASE TITANIUM<br />

opportunities for sustainable livelihood<br />

enhancement,” Schwarz says.<br />

This has seen the company work<br />

on multiple agricultural programmes,<br />

taking farmers, groups and<br />

communities from just subsistence<br />

towards sustainable commercial<br />

agriculture in cotton, potato and<br />

sorghum production. Base Titanium<br />

is working with governmental and<br />

non-governmental organisations,<br />

including international partners,<br />

to enhance these programmes<br />

and to connect the farmers with<br />

markets for their products.<br />

programmes to address competency<br />

gaps and enhance skill levels of our<br />

existing employees; also, a range<br />

of external programmes are run,<br />

including apprenticeships, student<br />

attachments, a graduate training<br />

scheme and imparting artisan skills to<br />

neighbouring community members.”<br />

Currently 970 people, including<br />

outsourced service contractors,<br />

are employed at the Kwale Mine.<br />

Reflecting the company’s commitment<br />

to prioritise job opportunities for<br />

THESE, SCHWARZ SAYS, ARE<br />

EXAMPLES OF THOSE REAL<br />

AND TANGIBLE BENEFITS<br />

Earlier this year, a report from the<br />

Zambia Chamber of Mines revealed<br />

that the global mining industry is<br />

facing its most significant skills<br />

shortage in decades, and Base<br />

Titanium is all too aware of the<br />

importance of providing employment<br />

and training opportunities.<br />

“One of our key programmes is<br />

training and skills development,” he<br />

says. “This includes internal training<br />

Cotton harvesting in full swing<br />

68 September 2017


MINING<br />

locals, 65% of these employees are<br />

drawn from Kwale County. A clear<br />

barometer as to the effectiveness of its<br />

training programmes is the reduction<br />

by 50% of its expatriate complement<br />

over the last three and a half years.<br />

“All this feeds into our succession<br />

planning. By empowering people<br />

with the right skills and experience,<br />

Kenyans are progressively taking<br />

over most technical and management<br />

roles from expats,” Schwarz says.<br />

“It’s a clear illustration of the success<br />

of our investment in training to<br />

empower the local community<br />

and Kenyans in general.”<br />

Mining needs to be at the forefront of<br />

economic growth if Kenya is to achieve<br />

its Vision 2030 goal of becoming a<br />

middle-income country in the next 13<br />

years. Schwarz says. “We fully support<br />

the endeavours of the government to<br />

transform the mining sector into an<br />

increasingly significant contributor to<br />

employment, exports and the socioeconomic<br />

growth of the country.”<br />

www.basetitanium.com 69


iSON GROUP:<br />

Enhancing lives<br />

of a continent and<br />

building communities<br />

through technology<br />

Written by: Dale Benton<br />

Produced by: Vince Kielty


71


iSON Group continues to innovate in<br />

the disruptive and volatile market of<br />

Nigeria to remain as a growing IT and IT<br />

enabled service provider. The company<br />

is continuously expanding its footprint<br />

and portfolio across all of Africa<br />

Many companies achieve<br />

substantial growth and<br />

success but the real test is in<br />

their resilience during turbulence and<br />

how efficiently they face and adapt<br />

to it. For Ramesh Awtaney, Founder<br />

and Chairman of iSON Group, one of<br />

the largest IT and ITeS company’s in<br />

Africa, discovering the joy of resilient<br />

and proactive employees weathering<br />

through disruptive markets proved to<br />

be a cornerstone moment last year.<br />

“It may not sound profound, but<br />

as the founder of the company,<br />

when you find your company can<br />

withstand these storms and has the<br />

resilience built into the system, it<br />

is extremely satisfying,” he says.<br />

So, Ramesh mush be contented<br />

surely? “As satisfying as it was,” he<br />

adds, “there is so much more to do,”<br />

Market volatility<br />

iSON Group’s African headquarters<br />

is located in Lagos, Nigeria. For<br />

Awtaney; the market volatility of<br />

Nigeria presented the company with<br />

the biggest test of its fortitude. A<br />

large part of iSON Group’s business<br />

and profit is generated from Nigeria<br />

and over the last 12 months the<br />

company suffered headwinds with<br />

major currency devaluation across<br />

the country and wider Africa. “This<br />

also meant that our customers<br />

cut down on their budgets” points<br />

Awtaney. He adds devaluation and<br />

reduced customer budgets meant<br />

substantial operating profit challenge,<br />

nevertheless the company weathered<br />

the storm and continued to grow.<br />

iSON Group’s ability to adapt,<br />

change and continuously innovate in<br />

72 September 2017


TECHNOLOGY<br />

Ramesh Awtaney<br />

Founder and Chairman, iSON Group<br />

Ramesh Awtaney, a dynamic entrepreneur, an Indo-African business magnate, investor<br />

and philanthropist has deep business interests across Africa and Middle East. He carries<br />

more than 28 years of rich experience in global technology, market development and<br />

business process outsourcing across Telecom Providers and other Verticals.<br />

Since 2014, Awtaney has embarked on a journey to create ISON 2.0, an innovation driven<br />

enterprise that would employ 40,000 people by the year 2017 and acquire an expanded<br />

footprint across 35 Sub Saharan African countries.<br />

Ramesh is married and lives in Dubai. His son has studied digital management and is<br />

currently working with 10 African Start Ups as an entrepreneur in residence for UX/design<br />

at Startupbootcamp, Cape Town, and his wife runs an up market boutique in New Delhi.<br />

www.isongrp.com 73


i SON GROUP<br />

these trying times with ears close to what customers<br />

want has enabled stronger relationships with key<br />

customers. iSON has also acquired a new base of<br />

operations in Durban, South Africa. This really broad<br />

bases the risk while representing a major step in<br />

expanding the company’s footprint throughout Africa.<br />

Expansion<br />

As Awtaney oversees a major expansion<br />

of the company’s national footprint, iSON<br />

Group continues to be a fast-growing<br />

company. iSON has four verticals, iSON<br />

BPO, iSON Technologies, iSON Innovation &<br />

Investments (i3) and now iSON Foundation.<br />

“Through our growth and resilience in that<br />

difficult period, we’ve really been able to<br />

diversify and expand our portfolio offerings<br />

for new IT solutions and customer services<br />

in different verticals,” says Awtaney.<br />

iSON Group has also embarked aggressively<br />

on iSON Innovations and Investments.<br />

i3 is a vertical through which the company seeks out<br />

and invests in small start-up companies, enabling<br />

them to grow and scale throughout Africa by<br />

providing infrastructure support, capital, mentorship<br />

and management support. Last year i3 invested in<br />

iSON GROUP<br />

IS BASED IN<br />

LAGOS, NIGERIA<br />

74 September 2017


TECHNOLOGY<br />

It may not sound<br />

profound, but as the<br />

founder of the company,<br />

when you find your company can<br />

withstand these storms and has the<br />

resilience built into the system,<br />

it is extremely satisfying<br />

Ramesh Awtaney<br />

Founder and Chairman<br />

www.isongrp.com 75


i SON GROUP<br />

Pravin Kumar<br />

Global CEO, iSON BPO<br />

Pravin Kumar is an industry veteran with more than 35 years of experience during which he<br />

has been credited with the creation of three large business empires. He is a widely respected<br />

name in the Business Process Outsourcing space and is regarded as a pioneer in call center<br />

services. Kumar is a Board member of iSON BPO - the leading ITeS services company in<br />

Africa. Under his strong leadership, iSON BPO now has operations in 16 countries in Africa and<br />

ASEAN regions with about 10,000 employees within three years of iSON BPO’s establishment.<br />

76 September 2017


TECHNOLOGY<br />

a taxi hailing app business: Mondo<br />

Ride, 2016 also saw investment in<br />

a hyperlocal search and discovery<br />

platform -Oliza, and a platform<br />

aggregator for golfers – Golflan<br />

. Recently, i3 has been evaluating<br />

investments in speech recognition<br />

technology enabling companies to<br />

support in growing BPO business<br />

followed by collaboration in the<br />

field of chat bots; thus, leveraging<br />

the power of natural language<br />

processing and Artificial Intelligence.<br />

The process of selecting these<br />

companies is no different to any large<br />

company investing in a start-up.<br />

For Awtaney, the differentiator<br />

is in one simple question.<br />

“How can we add value to this<br />

company, which in turn will add<br />

value to Africa?” he says. “We have<br />

a very significant presence in 25<br />

African countries, so we look at<br />

how these companies can benefit<br />

from that significant platform.”<br />

Smart investing<br />

One particular start-up<br />

that the company has<br />

invested in is a ride hailing<br />

service called Mondo Ride<br />

, in Kenya. With Uber already<br />

operating in Nairobi, Mondo will<br />

utilise the infrastructure and support<br />

of iSON Group as a platform on<br />

which it can build through its<br />

unique business model that aims<br />

at the corporate world of Kenya.<br />

Mondo has signed around 40<br />

transport rights contracts with<br />

several organisations, including<br />

The Kenya commercial bank. These<br />

corporate employees will also use<br />

Mondo for personal requirements.<br />

This is the added value that iSON<br />

Group seeks out in start-ups. Through<br />

investment and infrastructure<br />

support, iSON can enable Mondo to<br />

scale and expand beyond Kenya.<br />

“We feel that once Mondo is<br />

successful and gets its big business<br />

www.isongrp.com 77


TECHNOLOGY<br />

iSON BPO , the BPO business unit of iSON Group was awarded with 2016<br />

West African Frost & Sullivan Award for Competitive Strategy, Innovation<br />

and Leadership during an awards ceremony at Growth Innovation and<br />

Leadership Event at The Table Bay Hotel, Capetown on 17th August 2017.<br />

Ramesh Awtaney, Founder and Chairman, iSON Group receiving the award<br />

from Hendrik Malan, Operations Director for Africa, Frost and Sullivan.<br />

10,000<br />

THE NUMBER OF<br />

STAFF WORKING<br />

AT iSON GROUP<br />

break in Kenya, then you can lift that up and move<br />

into different countries where we [iSON Group] are<br />

already operating – because our core system and<br />

infrastructures are already place,” Awtaney says.<br />

Having that national footprint spread across 25<br />

countries allows iSON Group to play the role of<br />

a “trusted advisor” with the knowhow to tap into<br />

the African market and help emerging companies<br />

with innovative technologies succeed.<br />

“We have supported global majors such as<br />

Huawei, Oracle, IBM, AVAYA as knowledge partners<br />

for doing business in Africa which is set to grow<br />

further with new partnerships to be announced<br />

with global technology majors and leading<br />

www.isongrp.com 79


i SON GROUP<br />

Akshay Grover<br />

Chief Growth Officer, iSON Technologies<br />

Akshay Grover is the Chief Growth Officer, iSON Technologies. He is responsible for<br />

formulating and executing the go-to-market strategy of the company. This includes<br />

new customer acquisitions, customer retention strategies, building technology-led<br />

partnerships, new product roll outs and inorganic growth initiatives. Akshay has been<br />

focused on the TMT sector across Europe, India, Middle East and Africa. During his stint<br />

as an investment banker and a private equity professional he has closed transactions over<br />

~USD 5 billion and led multiple strategic initiatives for several players in the sector.<br />

80 September 2017


TECHNOLOGY<br />

enterprise software vendors.”<br />

“Not many companies can add<br />

the momentum that we do from our<br />

footprint from Nigeria to Ethiopia,”<br />

Awtaney continues. “If a start-up<br />

wants to think about solving a Pan-<br />

African problem, it’s going to need a<br />

trusted confidant who can take it to<br />

25 countries. Similarly if you’re a large<br />

company in America or elsewhere<br />

but do not have the know-how to<br />

tap into Africa, then you need a<br />

trusted advisor who is present in 25<br />

countries and can execute for you.”<br />

Platform of growth<br />

This presence is what provides iSON<br />

Group with a crucial advantage. A<br />

pan continent footprint becomes the<br />

unique selling point above all else as<br />

the company has the understanding<br />

of local regulation, local challenges<br />

and the ability to successfully<br />

operate in 25 different countries<br />

with 13 new clients last fiscal year.<br />

“The real unique thing that iSON<br />

offers is the platform across those<br />

countries<br />

and the ability<br />

to combine that<br />

presence with these<br />

start-ups and build and scale<br />

from that,” Awtaney says.<br />

Throughout its four verticals<br />

iSON Group has made significant<br />

investments in order to grow as a<br />

smart technology company, but<br />

for Awtaney, one particular area of<br />

growth is something that is very close<br />

to his heart – iSON Foundation.<br />

Through iSON Foundation, which<br />

hasn’t been officially formalised just<br />

yet, iSON Group has partnered with<br />

a number of non-for-profit charities<br />

to work with and support local<br />

communities. Spearheading this<br />

mission jointly with the foundation is<br />

an organisation called Girl Effect .<br />

The Girls Connect pilot program,<br />

launched in July 2016 through an<br />

initial pilot phase, is a pioneering<br />

platform that allows girls to access<br />

information, conversations and oneto-one<br />

mentoring that is designed<br />

www.isongrp.com 81


iSON GROUP<br />

iSON Group wins ASSOCHAM India- Africa Champion in Biz Awards for<br />

"Disinguished Achievement in IT & ITeS category" during the Indo-Africa Summit in<br />

2015 and consecutively in 2016 during India Africa Trade and Investment Forum .<br />

82 September 2017


TECHNOLOGY<br />

If a start-up<br />

wants to think<br />

about solving a Pan-<br />

African problem, it’s going to<br />

need a trusted confidant who can<br />

take it to 25 countries. Similarly if you’re a<br />

large company in America or elsewhere but do<br />

not have the know-how to tap into Africa,<br />

then you need a trusted advisor who<br />

is present in 25 countries and<br />

can execute for you.<br />

Ramesh Awtaney<br />

Founder and Chairman<br />

www.isongrp.com 83


to enrich their lives. The pilot phase<br />

saw over 50,000 girls sign up over<br />

a two-month period and as the<br />

second phase of testing takes place<br />

this year, the target is over a million.<br />

Awtaney names this endeavour as<br />

“One Million Unheard Voices”<br />

iSON Foundation represents the<br />

company’s vision of adding value<br />

to Africa, not only through business<br />

foundations, but through programs<br />

and initiatives with Girl Effect.<br />

“Trying to transform the lives of<br />

marginalised people, through Girl<br />

Effect is very close to my heart and<br />

special. This is what life is really about<br />

and keeps you going. Take time,<br />

every day from your work and think<br />

about giving back” Awtaney says.<br />

Using digital innovation to go<br />

further faster and deliver change at<br />

scale, iSON Group and Girl Effect<br />

have come together to deliver<br />

Girls Connect: a breakthrough<br />

resource for vulnerable girls.<br />

“We’re proud of our groundbreaking<br />

partnership with iSON<br />

Group,” says Farah Ramzan<br />

84 September 2017


TECHNOLOGY<br />

Rahul Srivastava<br />

Chief Operating Officer, iSON Technologies<br />

Rahul Srivastava is the Chief Operating Officer of iSON Technologies and is<br />

responsible for key account management, project delivery, SLA based operations<br />

and support functions globally. His core expertise is managing large complex<br />

engagements and articulating a unique and compelling value proposition.<br />

www.isongrp.com 85


i SON GROUP<br />

With<br />

the iSON<br />

Foundation,<br />

the Group has<br />

partnered with<br />

a number of nonfor-profit<br />

charities to<br />

work with and support<br />

local communities.<br />

Golant CBE, CEO of Girl Effect.<br />

“Working with them has given us the<br />

technical expertise and infrastructure<br />

to make our pilot a real success.<br />

Girls have already told us that they<br />

have applied their learning from Girls<br />

Connect to open a bank account, to<br />

stay in school or even to become a<br />

trade apprentice. We’re challenging<br />

conventional beliefs in how effective,<br />

with the right training and support,<br />

distance role modelling can be.”<br />

As the company continues to<br />

grow and expand its footprint across<br />

Africa, Awtaney has ambitions for<br />

the company becoming synonymous<br />

with building local competence, local<br />

knowhow and bringing the efficiencies<br />

it has gained through other markets<br />

and locations and bringing them into<br />

emerging markets such as Africa.<br />

“Our mission is to use our services<br />

competence onshore to smartly<br />

transform and benefit customers.<br />

We’re not a company with billions<br />

of dollars at our disposal, we are<br />

a young company focused on our<br />

model, our training of people and<br />

adding true value to Africa and<br />

the countries we operate in.”<br />

86 September 2017


TECHNOLOGY<br />

We at iSON Group, are deeply<br />

committed in purposely enabling<br />

industries and societies with the<br />

help of technology. The upliftment<br />

agenda using smart technologies<br />

and customer centric theme is<br />

core to our principles and our<br />

hearts as we continuously<br />

evovle. Experience us and<br />

feel the difference.<br />

Ramesh Awtaney<br />

Founder and Chairman<br />

www.isongrp.com 87


East Africa Data<br />

Centre: critical<br />

connectivity<br />

Written by: Dale Benton<br />

Produced by: Richard Deane


89


EAST AFRICA DATA CENTRE<br />

90 September 2017


CONSTRUCTION<br />

EAST AFRICA DATA CENTRE is the most<br />

connected data centre space in East Africa.<br />

Its challenge is to continue to innovate<br />

and meet changing market demand<br />

DAN KWACH<br />

GM of EADC<br />

As the first commercial and carrier<br />

neutral facility built in Eastern Africa, at<br />

2,000sqm, East Africa Data Centre (EADC)<br />

remains the largest data centre in the region.<br />

The data centre market in Africa is growing<br />

as IT becomes an enabler for businesses<br />

to improve efficiency and introduce<br />

automation across their operations.<br />

This has seen major cloud and content<br />

players turn their attentions towards data centre<br />

providers in Africa. These include the likes of<br />

Microsoft, which has recently added data centre<br />

space in South Africa to host Microsoft Cloud<br />

as a direct response to market demand.<br />

Watching over this trend is the General<br />

Manager of EADC, Dan Kwach, who believes<br />

EADC is strongly positioned to meet the growing<br />

demand for data centre space in Africa.<br />

“Currently, larger data service and cloud providers<br />

www.eastafricadatacentre.com 91


CONSTRUCTION<br />

reach out to DC operators, like us, so<br />

that they can meet more of their client<br />

needs in Africa,” he says. “That’s why<br />

we must align what we do with the<br />

expectations of these large players.”<br />

EADC is located at Sameer<br />

Industrial Park, Nairobi. This is<br />

described as the “perfect hosting<br />

location” due to its access to<br />

carrier networks across<br />

Kenya, including<br />

Mombasa, Uganda,<br />

Tanzania and Rwanda.<br />

This location<br />

presented EADC<br />

with the opportunity<br />

to become the most<br />

connected data centre<br />

site in Eastern Africa, and<br />

was recognised for being so<br />

with a GTB Innovation Award in 2014.<br />

“Connectivity and security are<br />

critical components to hosting<br />

services. The EADC is carrier-neutral<br />

and having that open access model<br />

is also critical,” Kwach says.<br />

EADC hosts all of the local<br />

providers and ISPs in Nairobi as<br />

well as 20 international networks.<br />

This allows EADC to have the<br />

widest possible reach.<br />

2,000sqm<br />

Size of East Africa<br />

Data Centre<br />

“You cannot build a data centre<br />

without networks,” Kwach says. “The<br />

more network service providers you<br />

have, the better it is for customers.”<br />

The mystery of a data centre<br />

Kwach comes from a<br />

background in network<br />

engineering and<br />

core network<br />

configuration.<br />

This brought him<br />

into contact with<br />

various vendors and<br />

OEMs and he gained<br />

hands-on experience<br />

of critical network failures<br />

and problem solving.<br />

Confronted with the challenge<br />

to design and build a data centre,<br />

the first task for Kwach was to<br />

“identify and demystify” the very<br />

concept of a carrier grade or<br />

industry standard data centre.<br />

“What are the features of a carrier<br />

grade data centre facility? Which<br />

are the ideal industry standards and<br />

www.eastafricadatacentre.com 93


EAST AFRICA DATA CENTRE<br />

Inside the East<br />

Africa Data Centre<br />

what is meant by Tier I, II or even III?<br />

We had to really educate ourselves on<br />

what we were getting into,” he says.<br />

Part of this process saw Kwach travel<br />

the world and explore data centres<br />

in the UK, South Africa and Dubai.<br />

“My other challenge was to<br />

understand what the value in a<br />

commercial data centre was, not just<br />

from a technical aspect but to ensure<br />

alignment to a customer need.”<br />

As product manager, Kwach was<br />

tasked with developing a business<br />

plan and commercial strategy for<br />

EADC. The first task? Settling on<br />

a colocation site, which could host<br />

multiple network service providers<br />

and offer primary or secondary<br />

hosting to enterprise customers.<br />

EADC was the first carrier neutral<br />

94 September 2017


CONSTRUCTION<br />

“Currently, larger data service and cloud<br />

providers reach out to DC operators,<br />

like us, so that they can meet more<br />

of their client needs in Africa”<br />

DAN KWACH GM of EADC<br />

facility built in the region, and it just hit<br />

another milestone having joined an<br />

elite list of independently certified data<br />

centre facilities by Uptime Institute – the<br />

leading data centre certification and<br />

accreditation body. “This is a stamp<br />

of approval for EADC having met Tier<br />

III requirements as a concurrently<br />

maintainable facility,” says Kwach<br />

The facility is currently in the process<br />

of completing the requirements for<br />

ISO 27001 Certification – a globally<br />

acclaimed information security<br />

management standard that forms a<br />

basis of securing critical operations,<br />

functions and businesses against risk.<br />

Evolution<br />

But the work is not over for EADC.<br />

As competition heats up in the data<br />

www.eastafricadatacentre.com 95


CONSTRUCTION<br />

centre space, EADC must ensure<br />

it has a strategy to maintain its<br />

position as a regional market leader.<br />

“We are thinking more<br />

and more about our product<br />

development,” says Kwach.<br />

To ensure it has a long term strategy,<br />

EADC is finding ways to add value<br />

added services, build and offer<br />

enterprise grade IT services<br />

and meet the demands<br />

of leading content<br />

and cloud services.<br />

The company<br />

is also thinking of<br />

expanding into new<br />

geographies and<br />

markets to remain at<br />

the cutting edge of hosting<br />

services regionally and globally.<br />

Increasingly companies are starting<br />

to recognise the hosting opportunities<br />

in Kenya and the rest of East Africa.<br />

“We have the first mover<br />

advantage, which has presented us<br />

with a number of opportunities and<br />

helped us capture of a large chunk<br />

of the market share,” he says.<br />

Not only is EADC the most<br />

Nairobi<br />

The location of<br />

the East Africa<br />

Data Centre<br />

connected facility in the region but<br />

it also has a wealth of experience<br />

in the data centre space, which<br />

gives it an advantage in supporting<br />

customers and continuously<br />

upgrading its products and services.<br />

“It provides us with comfort<br />

now and in the near future with<br />

regards to our position in the<br />

market,” says Kwach.<br />

A hot topic<br />

As the data centre<br />

industry continues<br />

to grow so does<br />

the need for greater<br />

energy efficiency.<br />

More than 90% of<br />

the energy output in a<br />

data centre is through heat<br />

and power generation. EADC sources<br />

its power from Kenya Power; a supplier<br />

and operator of electricity distribution<br />

systems throughout Kenya.<br />

A large proportion of electricity<br />

in Kenya is generated through<br />

hydroelectric power generation.<br />

“The most critical element of<br />

our commercial success evolves<br />

www.eastafricadatacentre.com 97


EAST AFRICA DATA CENTRE<br />

around cost management,” Kwach states. “The<br />

cost of that power is very high, so we are often<br />

thinking about alternative sources of energy.<br />

It’s a really interesting space right now.”<br />

EADC is already looking at introducing solar<br />

panels and how it can improve its energy efficiency<br />

and carbon emissions. But it won’t stop there.<br />

EADC is also advising customers to use IT<br />

equipment that has been manufactured with<br />

biodegradable materials as part of a green initiative.<br />

So where next for the EADC? Kwach aims to keep<br />

it simple.<br />

“We go where there is opportunity and where<br />

there is demand,” he says. “Our connectivity and<br />

value-added services provide a one-stop shop to<br />

meet the already significant and growing demand<br />

that we see. Our challenge is to innovate and<br />

broaden our geographical reach so that we support<br />

all our customers, employees and governmental<br />

and non-governmental organisations in their<br />

digital journey. In doing this we are delivering our<br />

vision of “Building Africa’s digital future.”<br />

EADC is the<br />

largest in<br />

the region<br />

98 September 2017


CONSTRUCTION<br />

“Our challenge is to innovate and<br />

broaden our geographical reach so<br />

that we support all our customers,<br />

employees and governmental and<br />

non-governmental organisations<br />

in their digital journey”<br />

DAN KWACH GM of EADC<br />

www.eastafricadatacentre.com 99


FNB NAMIBIA<br />

Leading the<br />

way in Namibia’s<br />

modern banking


Written by: Leila Hawkins<br />

Produced by: Vincent Kielty


Namibia’s biggest bank is transforming<br />

how the population does financial<br />

transactions thanks to a digital revolution<br />

Namibia’s biggest bank<br />

is transforming how the<br />

population conducts<br />

financial transactions thanks<br />

to a digital revolution.<br />

The First National Bank of Namibia<br />

(FNB) was founded in 1907 as<br />

Deutsche Afrika Bank, and over a<br />

hundred years and many takeovers<br />

and mergers later, today it is the<br />

country’s largest bank, transforming<br />

how the population transacts<br />

through digital technology.<br />

The digitisation of banking<br />

One of FNB’s biggest innovations<br />

has been the introduction of the<br />

eWallet and, in fact, it was the first<br />

bank in Namibia to implement this. It<br />

makes transactions much easier for<br />

customers by enabling them to send<br />

and receive money instantly via their<br />

mobile phones. This payment method<br />

works on any mobile phone, at any<br />

time of the day or night, and means<br />

102 September 2017


Part of the FNB team<br />

www.fnbnamibia.com.na 103


FNB NAMIBIA<br />

><br />

“With some systems you can only<br />

do so much, and then you have to<br />

hand it over to a vendor for support.<br />

In our case, the support sits with us,<br />

so we can chop and change it as the<br />

business and the market landscape<br />

prescribes. That gives us the edge”<br />

Reckliff Kandjiriomuini, Chief Technology Officer, FNB<br />

104 September 2017


TECHNOLOGY<br />

money is immediately available to the<br />

recipient. Customers can also check<br />

their bank balance, pay bills and buy<br />

electricity with it, and coupled with<br />

FNB’s extensive ATM network across<br />

the country that act as pay-out<br />

points eWallet has really moved the<br />

needle in driving inclusion of the<br />

unbanked and allowing access to<br />

money in a fast and efficient manner.<br />

Reckliff Kandjiriomuini, FNB’s<br />

Chief Technology Officer, explains:<br />

“eWallet has been a revolutionary<br />

change in allowing our customers<br />

to transact from anywhere and do<br />

instant payments. The product uptake<br />

and usage has been phenomenal<br />

and in accordance the resultant<br />

transactional growth pushed us to<br />

accelerate infrastructure refreshes to<br />

ensure the business is well positioned<br />

for growth and future demand.”<br />

The bank, as part of its digitalisation<br />

strategy, is introducing more selfservice<br />

outlets and enriching its<br />

offerings at self-service devices to<br />

allow customers the convenience of<br />

banking from anywhere and being<br />

empowered to do banking on their<br />

own, according to Kandjiriomuini<br />

It has a continuous focus on<br />

improving its customer service, and<br />

to this extent looks at where it can<br />

improve on processes and raise<br />

efficiencies. In the branch space<br />

it recently adopted a new system<br />

that enhances and shortens the<br />

time it takes for customer account<br />

opening, loans and other products<br />

significantly. This is underpinned by<br />

digitalisation and system automation.<br />

All of these products have been<br />

adopted and are in line with the<br />

bank’s approach of making banking<br />

easier, giving customers the ability to<br />

transact from anywhere and finally<br />

raising operational efficiencies.<br />

FNB Namibia remains committed<br />

to expanding its digital offering to<br />

clients, and the successful acquisition<br />

of EBank is an opportunity to<br />

expand services and solutions to<br />

all corners of Namibia through an<br />

affordable and convenient digitised<br />

partnership model, thereby including<br />

all business and consumer customers<br />

in the formal world of banking.<br />

Keeping banking local<br />

In the 1980’s the FNB Group acquired<br />

www.fnbnamibia.com.na 105


FNB NAMIBIA<br />

the rights to do its own development<br />

on its core banking system from<br />

Hogan, a company that creates high<br />

performance banking software.<br />

This allows FNB to drive innovative<br />

solutions and deliver these<br />

solutions to the market quicker.<br />

“In the past, our core banking<br />

system was hosted and run from<br />

our parent group in FNB South<br />

Africa,” says Garth Kleintjes CIO<br />

of FNB Namibia. “But in 2009 we<br />

localised this, which means we<br />

now host all infrastructure and<br />

run the day to day operations of<br />

this in country this has allowed<br />

for growth and new opportunities<br />

in the Technology space.<br />

“Being part of a bigger Group that<br />

embraces innovation has allowed<br />

us to leverage this, and through<br />

strong partnerships we can ensure<br />

new products and technologies are<br />

quickly adopted or tailored for our<br />

in-country needs. This will, in turn,<br />

help us to be a market leader in<br />

delivering cutting edge solutions.”<br />

Shifting away from challenges<br />

While FNB is Namibia’s biggest bank<br />

The Maltas Club at Namibia’s<br />

7th Can Run, in support<br />

of cancer awareness.<br />

with the greatest market<br />

share, the industry is extremely<br />

competitive. With a population of<br />

just over 2.5mn, Kandjiriomuini<br />

cites three major rivals as Bank<br />

Windhoek, Standard Bank and<br />

NedBank Namibia, and there are also<br />

a number of smaller banks that are<br />

currently establishing their footprint.<br />

“It’s an attractive market,” he says.<br />

“We do have economic challenges<br />

like the rest of the world, but are<br />

106 September 2017


favoured with political<br />

stability. Considering the regulator’s<br />

perspective, they want to introduce<br />

competition and attract new players.<br />

As a large bank in this competitive<br />

industry, there are naturally plenty of<br />

factors impacting its operations of<br />

which regulation and the economy are<br />

of the major ones. The political turmoil<br />

in South Africa has had a knock-on<br />

effect on the<br />

Namibian economy – an<br />

economy which is very dependent<br />

on South Africa due to it being<br />

Namibia’s biggest import partner<br />

Cybersecurity and financial fraud<br />

is a global concern that has not<br />

left Namibia unscathed. “In this<br />

connected age and by virtue of having<br />

www.fnbnamibia.com.na 107


FNB NAMIBIA<br />

108 September 2017


TECHNOLOGY<br />

various digital banking offerings the cyber<br />

risk is real for any bank and as such it is an<br />

important focus for us,” Kandjiriomuini says.<br />

To address the cyber risk, FNB Namibia<br />

has had to make certain changes to its<br />

security operations. “The bank has an<br />

extensive security programme that focuses<br />

on managing all the aspects of cyber<br />

security and hardening security on its<br />

internal systems, and included in this<br />

is driving awareness at all levels. The<br />

IT spend on security has significantly<br />

increased in the last years and these<br />

investments will continue,” says Kleintjes.<br />

Its unique use of technology means FNB<br />

is leading the way in shifting Namibia’s<br />

banking from traditional to digital. As<br />

Kandjiriomuini explains, this is the bank’s<br />

biggest driver. “We are known as the<br />

technology bank that delivers lifestyle<br />

changing solutions,” he concludes.<br />

FNB promotes products<br />

and services at the annual<br />

Rock n Run (used to raise<br />

awareness for Cancer)<br />

www.fnbnamibia.com.na 109


ELECTRIFYING<br />

TANZANIA<br />

Written by: Nell Walker<br />

Produced by: Greg Churchill


Nigel Whittaker, Managing<br />

Director of Songas, explains<br />

how the company is supplying<br />

much-needed energy to Tanzania<br />

“It’s very important for everybody<br />

to have access to reliable<br />

electricity, and I think that Africa<br />

generally suffers in comparison<br />

with the rest of the world.”<br />

Nigel Whittaker, Managing Director<br />

of Songas, holds these beliefs that<br />

mirror those of his company and its<br />

parent company, Globeleq. Songas<br />

is a major player in the electricity<br />

sector for Tanzania, and has been<br />

since it became operational in<br />

2004. The company uses natural<br />

gas from Songo Songo Island and<br />

processes it on location, before<br />

transporting it along a 225km<br />

pipeline to the Ubungo Power<br />

Plant in Dar es Salaam, owned<br />

and operated by Songas. The gas<br />

is then converted into electricity<br />

which is sold cheaply to TANESCO<br />

to sell on to its customers.<br />

In a nation which relies heavily on<br />

hydroelectric power<br />

via precious water<br />

supplies which are<br />

subject to droughts, and<br />

expensive fuel oil must<br />

be imported, Songas’s<br />

presence is a necessity.<br />

“Only around 30% of<br />

people in Tanzania have<br />

access to electricity, but the<br />

government has a plan to<br />

increase the industrialisation of<br />

the country,” says Whittaker. “In<br />

order for that to happen, reliable<br />

electricity needs to be available<br />

so that industry can thrive.<br />

“Currently there’s about<br />

1,100MW of electricity available<br />

in Tanzania, and the government<br />

wants to increase that to 5,000MW,<br />

to develop industrialisation and<br />

improve access to electricity. We<br />

support that. We want to be a part<br />

112 September 2017


AFRICA<br />

www.africanbusinessreview.za 113


Industrial gas turbine SGT-800<br />

Power generation: 47.5-54 MW(e)<br />

47.5 MW Version<br />

Gross efficiency: 37.7%<br />

Heat rate: 9,547 kJ/kWh (9,084 btu/kWh)<br />

Turbine speed: 6,608 rpm<br />

Pressure ratio: 20.1:1<br />

Exhaust mass flow: 132.8 kg/s (292.8 lb/s)<br />

Exhaust temperature: 541°C (1,007°F)<br />

50.5 MW Version<br />

Gross efficiency: 38.3%<br />

Heat rate: 9,389 kJ/kWh (8,899 btu/kWh)<br />

Turbine speed: 6,608 rpm<br />

Pressure ratio: 21.0:1<br />

Exhaust mass flow: 134.2 kg/s (295.8 lb/s)<br />

Exhaust temperature: 553°C (1,027°F)<br />

54.0 MW Version<br />

Gross efficiency: 39.1%<br />

Heat rate: 9,206 kJ/kWh (8,725 btu/kWh)<br />

Turbine speed: 6,608 rpm<br />

Pressure ratio: 21.4:1<br />

Exhaust mass flow: 135.5 kg/s (298.7 lb/s)<br />

Exhaust temperature: 563°C (1,045°F)<br />

siemens.com/gasturbines


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Whatever the power generation requirements<br />

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Siemens gas turbines are precisely designed<br />

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and an excellent return on investment right<br />

from the start are just two of the benefits<br />

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Mark Van Antwerp, Vice President of Power<br />

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at Siemens says: “Our gas turbines fulfil<br />

the high requirements of a wide spectrum<br />

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primarily because it offers broad flexibility<br />

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The excellent efficiency and steam-raising<br />

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Matthieu Cecillon, Vice President of<br />

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applications. Reliability, environmental<br />

compatibility, and low lifecycle costs are<br />

the key features of the Siemens SGT-800:<br />

With up to 60,000 operating hours (EOH)<br />

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costs, and an excellent electrical efficiency,<br />

the Siemens machine achieves the lowest<br />

lifecycle costs and the best combinedcycle<br />

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The Siemens SGT-800 is a single-shaft<br />

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first three stages have variable guide vanes.<br />

To minimize leakage over the blade tips,<br />

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to fifteen. The three-stage turbine is built as<br />

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turbine stator flanges are air-cooled to reduce<br />

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The overall design of the Siemens SGT-800<br />

gas turbine ensures easy service access to<br />

the combustor and the burners. The cold<br />

end of the gas turbine is connected to the<br />

generator via a reduction gear unit; this<br />

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down to 1,500/1,800 rpm. The Siemens<br />

SGT-800 gas turbines are equipped with Dry<br />

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to reduce nitrogen oxide emissions. The<br />

combustion system is designed to operate<br />

on both gas and liquid fuels and it’s capable<br />

of on-line switchover between fuels.


SONGAS LIMITED<br />

116 September 2017


AFRICA<br />

of that programme, because we’re<br />

part of the solution in Tanzania.”<br />

Whittaker has 35 years of<br />

experience in energy, including<br />

25 in power generation. Having<br />

worked for big industry names like<br />

Powergen, E.ON, and Sumitomo,<br />

Whittaker took on his current role<br />

with Songas in 2015, and<br />

has been applying<br />

his expertise to the<br />

well-established<br />

company ever<br />

since this time.<br />

When Songas’<br />

business began,<br />

it was the only<br />

gas fired generator<br />

in the country and it<br />

supplied between 30-50%<br />

of the electricity in Tanzania. While<br />

it is more like 25%, the company<br />

remains an extremely important<br />

part of the local electricity<br />

generation sector. This is due in<br />

part to its very high availability<br />

(98%) and a load factor of 92%.<br />

“Songas is very important to<br />

Tanzania because it’s reliable and<br />

72<br />

Number of<br />

employees<br />

at Songas<br />

we’re constantly generating,”<br />

explains Whittaker. “We are<br />

running 24/7, and our electricity<br />

is the cheapest thermal generator<br />

in East Africa; we sell to TANESCO<br />

at about six cents a kilowatt.”<br />

This not only benefits citizens<br />

wanting electricity from a clean,<br />

reliable, cost-effective<br />

source, but ensures<br />

that Songas remains<br />

a top choice as a<br />

supplier. Globeleq,<br />

one of Songas’<br />

shareholders, is<br />

dedicated to power<br />

development<br />

in Africa<br />

and works<br />

hard to supply<br />

electricity on the continent,<br />

a known driver for social and<br />

economic development.<br />

Using Tanzanian gas, Songas<br />

can continue to provide electricity<br />

more economically than the fuel<br />

oil generators which have to import<br />

the gas into the country; this has<br />

saved Tanzania billions of US dollars<br />

www.africanbusinessreview.za 117


SONGAS LIMITED<br />

since its operations began in 2004. Songas uses<br />

reliable infrastructure which means that there is<br />

no need to constantly update its technology.<br />

“The company has not changed a lot since we<br />

went operational in 2004,” says Whittaker. “Prior<br />

to that there was a lot of time and effort involved<br />

in developing the gas process and the building of<br />

the pipeline, upgrading the old plant by converting<br />

it to gas, and adding new units. Since then the<br />

plant has been running in a stable operation.”<br />

While stability is something to aspire to, it<br />

can never be quite enough when a business<br />

can do so much more and with its excellent<br />

service in a nation with low rates of electricity<br />

consumption. So how can Songas keep<br />

doing what it’s doing, but do more of it?<br />

The challenges for Songas are external, and<br />

things which will take time to change. Both<br />

TANESCO and the Tanzanian government<br />

are dealing with struggles which affect<br />

Songas, but Whittaker is hopeful.<br />

“The government is hoping to organise a<br />

financial package with the World Bank which will<br />

alleviate TANESCO’s financial issues, making<br />

it financially viable going forward,” he says.<br />

“We’re anxious to see the outcome because it’s<br />

important not just for companies like Songas, but<br />

the whole financial electricity sector generally.”<br />

Songas is developing a plan to upgrade two of<br />

118 September 2017


AFRICA<br />

“Songas is a thriving<br />

business, it runs very well,<br />

the plant performance is very<br />

good, and the electricity price<br />

is low. We think we’ve been a<br />

fantastic asset for Tanzania”<br />

Nigel Whittaker, Managing Director<br />

www.africanbusinessreview.za 119


SONGAS LIMITED<br />

120 September 2017


AFRICA<br />

its six units which will enable it to<br />

produce more electricity. It’s simpler<br />

for the company to upgrade existing<br />

units, as the site contain all of the<br />

necessary infrastructure already,<br />

than to build entirely new facilities,<br />

and generation capacity could<br />

increase from 180MW to 240MW if<br />

the government grants approval.<br />

“Songas is a thriving business, it<br />

runs very well, the plant performance<br />

is very good, and the electricity<br />

price is low. We think we’ve been<br />

a fantastic asset for Tanzania. Pan<br />

African Energy Tanzania (PAET)<br />

recently put some calculations in the<br />

newspaper saying that Songo Songo<br />

Island gas has saved the Tanzanian<br />

government $6.2bn since operations<br />

began – money that would otherwise<br />

have been spent on producing<br />

the same amount of energy with<br />

imported fuels. So Songas has<br />

been very successful, not just for<br />

the shareholders but for Tanzania<br />

as a whole.” 54% of Songas’<br />

shares are held by Globeleq and<br />

46% are held by the Government<br />

of Tanzania through holdings by<br />

TANESCO, TDC and TDFL.<br />

Songas sees a future in<br />

which its generating capacity is<br />

expanded by about 30%, and<br />

its parent company, Globeleq, is<br />

extremely interested in pursuing<br />

other power development<br />

projects as soon as it gets the<br />

go-ahead. The gas at Songo<br />

Songo Island is sufficient to meet<br />

the needs of Songas’s future<br />

growth, and the infrastructure is<br />

not fully utilised. So while Songas<br />

does have to wait for precisely<br />

the right environment and the<br />

necessary approval, the future<br />

certainly looks bright.<br />

“There are enough<br />

resources on Songo Songo<br />

Island for us to introduce,<br />

improve, and increase<br />

electricity generation,”<br />

Whittaker concludes. “Tanzania<br />

will be a very interesting market<br />

for us once we can see there’s<br />

some stability returned to the<br />

electricity sector here.”<br />

www.africanbusinessreview.za 121


THE POWER<br />

OF EL SEWEDY<br />

ELECTROMETER<br />

GROUP<br />

Written by: Nell Walker<br />

Produced by: Vincent Kielty<br />

123


El Sewedy Electrometer is well<br />

established as one of the world’s<br />

leading metering companies<br />

With 19mn meters running<br />

in 46 countries, and as<br />

one of the top 10 metering<br />

companies in the world, El Sewedy<br />

Electrometer Group (EMG) has<br />

come a long way from its wellestablished<br />

roots. Sixty years after<br />

parent company Zaki El Sewedy<br />

was formed, EMG emerged on the<br />

scene itself in 1998, and for nearly<br />

20 years it has slowly but surely<br />

built its brand and thrived where<br />

similar businesses fell behind.<br />

Zaki El Sewedy’s rise to prominence<br />

has been a lengthy process,<br />

with a rich timeline as follows:<br />

• 1938 – Zaki El Sewedy Holding<br />

(ZSG) was founded as a supplier<br />

of electrical materials in Egypt<br />

• 1962 – ZSG was appointed by the<br />

Egyptian government as the main<br />

supplier of all electrical materials<br />

for the largest hydro power plant<br />

in Egypt, the Aswan High Dam<br />

• 1980 – ZSG started investing<br />

in industry, starting with the<br />

manufacture of power cables,<br />

electricity distribution boards,<br />

electricity and gas meters,<br />

lighting fixtures, and energysaving<br />

lamps in addition to its<br />

turn-key electrification projects<br />

• 1998 – ZSG established El Sewedy<br />

Electrometer (EMG), the first private<br />

sector company specialising in<br />

the design and manufacture of<br />

electricity meters in the Middle East<br />

• 2004 – EMG founded Ghana<br />

Electrometer Ltd, the first metering<br />

factory in West Africa, followed by<br />

the successful implementation of<br />

the e-Cash pre-payment system<br />

• 2007 – EMG ventured with<br />

EEPCO in Ethiopia Electrometer<br />

to produce pre-paid meters in<br />

Ethiopia, as well as with ZESCO<br />

in Zambia Electrometer<br />

• 2008 – EMG partnered with<br />

124 September 2017


AFRICA<br />

El Sewedy<br />

Electrometer<br />

has 19mn<br />

meters running<br />

in 46 countries<br />

BMG bank in Electrometer do Brazil,<br />

in addition to Electrometer de Las<br />

Americas in Mexico with CICASA<br />

• 2009 – EMG established El Sewedy<br />

Electrometer India to supply Asia<br />

as well as the rest of the group with<br />

quality meters and modules<br />

• 2010 – EMG acquired an established<br />

meter manufacturer in the Czech<br />

Republic to supply Europe and the rest<br />

of the world with smart grid solutions<br />

EMG is fully-focused on production of<br />

www.africanbusinessreview.za 125


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AFRICA<br />

meters, network management<br />

services, large electrification projects,<br />

and product aftercare. The business<br />

expanded facilities in Africa to<br />

cover Ghana, Ethiopia, and Zambia<br />

respectively. As its success spread,<br />

EMG began to globalise, extending<br />

facilities to India, Brazil, and Mexico,<br />

before penetrating the European<br />

market by acquiring ZPA Smart<br />

Energies in the Czech Republic.<br />

EMG has attained ISO 9001,<br />

ISO 14001, and OHSAS 18001<br />

certification during its lifetime, and<br />

has become a sought-after partner<br />

for many other large businesses.<br />

Some of its major recent projects<br />

include the North Lebanon Project<br />

and the Ghana Ashanti BOT<br />

Project, both involving the design,<br />

manufacture, supply and installation<br />

of various metering systems.<br />

With a portfolio that covers<br />

residential, commercial, and industrial<br />

EMG is fully-focused on production of<br />

meters, network management services,<br />

large electrification projects, and<br />

product aftercare.<br />

www.africanbusinessreview.za 127


EL SEWEDY ELECTROMETER<br />

EMG remains one<br />

of the key meter<br />

suppliers in the region<br />

AZAM FOOD LIMITED<br />

Manufacturing and selling<br />

chips in Bangladesh.<br />

Intelligent Card Limtied<br />

Manufacturing and selling Scratch<br />

card and SIM card to global market.<br />

Cardzglobal(Beijing) Limtied<br />

Manufacturing and selling RFID<br />

and smart card to global market.<br />

www.cardzglobal.com.cn<br />

No. 57, Gausual Azam Avenue, Sector<br />

# 14, Uttara, Dhaka, Bangladesh.<br />

Tel: +88-02 8933331 | Mobile: +88 01867888888<br />

Facebook: www.facebook.com/david.yu.7906<br />

Email: david@cardzglobal.com.cn<br />

TONGLI POWER<br />

TECHNOLOGY(BD)LIMITED<br />

Manufacturing and selling motocycle<br />

battery and Car battery.<br />

UPS/IPS battery to global market.<br />

128 September 2017


AFRICA<br />

market needs, EMG provides all kinds of meters<br />

from pre-payment products to smart meters that<br />

communicate with utility companies via GPRS.<br />

Productivity is optimised by utilising the<br />

latest techniques in lean manufacturing and<br />

Six Sigma. Calibration and testing systems are<br />

automated, allowing simultaneous manufacture<br />

of multiple products without sacrificing accuracy,<br />

and the ability to respond to customer delivery<br />

demands without risk of human error.<br />

The supply chain is strictly operated and El<br />

Sewedy Electrometer demands perfection at<br />

every step of the way. The company boasts a solid<br />

supplier management mechanism during which<br />

allows it to evaluate those suppliers and minimise<br />

wasted time along the way. Financial status, product<br />

quality, and costs are all analysed, and successful<br />

suppliers are invited into open dialogue with EMG<br />

to create engaged, powerful relationships.<br />

All of EMG’s products are heavily tested by worldrenowned<br />

labs, including OFGEM in the UK, MET<br />

Lab in the US, INMETRO in Brazil, LAPEM in Mexico,<br />

ERDA in India, and many more to ensure all products<br />

are of the highest quality. There are prestigious R&D<br />

houses in Egypt, India, and the Czech Republic,<br />

among other nations. Five percent of the company’s<br />

annual revenue is poured into R&D, as it refuses<br />

to buy ready-made designs and place its logo on<br />

them – EMG prefers to develop the concept itself.<br />

El Sewedy<br />

Electrometer<br />

smart meters<br />

come with a<br />

flexible design to<br />

communicate via<br />

GPRS, RF or PLC<br />

The EMG<br />

production line<br />

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EL SEWEDY ELECTROMETER<br />

EMG meters undergo<br />

thorough testing<br />

‘EMG wants to<br />

enable its customers<br />

to manage their<br />

own utilities without<br />

difficulty, and offers<br />

comprehensive<br />

services to tackle<br />

that. The business<br />

consider itself<br />

a total solution<br />

provider with a<br />

focus on quality and<br />

customer service’<br />

130 September 2017


AFRICA<br />

Mahmoud Shawky<br />

OPERATIONS DIRECTOR<br />

Mohamed Shawky is the Director of Operations<br />

and is a member of the management committee.<br />

He is responsible for overseeing Elsewedy<br />

Electrometer’s daily operational activities<br />

including manufacturing, quality, supply<br />

chain, and performance reporting. He plays<br />

effective role in the top management committee<br />

regarding the firm’s performance, day-to-day<br />

operations and overall strategic planning.<br />

El Sewedy Electrometer always<br />

keeps its eye out for growth<br />

opportunities, as despite being<br />

part of a specific market, it doesn’t<br />

have one single focus. Demand for<br />

meters is always there, meaning<br />

the business remains unaffected<br />

by the economic climate. Utilities<br />

and private companies alike require<br />

EMG’s services, and if anything,<br />

the requirements are growing due<br />

to the increasing connectedness<br />

of developing nations.<br />

El Sewedy Electrometer’s slogan is<br />

‘Manage Utilities Better’, which reflects<br />

its belief that its responsibilities lie<br />

beyond meters themselves and the<br />

aftercare thereof. EMG wants to<br />

enable its customers to manage their<br />

own utilities without difficulty, and<br />

offers comprehensive services to<br />

tackle that. The business consider<br />

itself a total solution provider with a<br />

focus on quality and customer service.<br />

What truly sets El Sewedy apart<br />

from other companies in the<br />

industry is experience. Its leaders<br />

have a great deal of experience in<br />

the industry, and EMG now has 10<br />

factories across five continents,<br />

cementing that global leadership<br />

with a production capacity of more<br />

than five million meters a year.<br />

www.africanbusinessreview.za 131

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