BRafr-September2017
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
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
Developing Future<br />
African Cities<br />
25 – 26 October 2017<br />
Sandton Convention Centre,<br />
Johannesburg<br />
BENEFITS OF ATTENDING<br />
• Forge new business partnerships on the African continent.<br />
• Understand city masterplans and transit orientated development projects and<br />
align your company’s strategy.<br />
• Gain a competitive advantage in the market by understanding the challenges<br />
and opportunities of rapid urbanisation.<br />
• Connect with investment promotional agencies to discuss real estate<br />
opportunities in their country.<br />
www.african-real-estate-summit.com<br />
Register before 31 August and save R2,750 on your delegate pass<br />
Please contact Stephan Herman<br />
on T: +27 21 700 3598 or E: stephan.herman@spintelligent.com
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
Siemens’ SGT-800, a proven<br />
distributed generation<br />
turbine for Africa!<br />
Whatever the power generation requirements<br />
may be, Siemens, a global engineering<br />
powerhouse has the right combination of<br />
technology, solutions and skills to meet<br />
the requirements, and yes, often exceed.<br />
Siemens gas turbines are precisely designed<br />
to master the dynamic African energy<br />
market environment. Low lifecycle costs<br />
and an excellent return on investment right<br />
from the start are just two of the benefits<br />
that Siemens gas turbine portfolio offers.<br />
Mark Van Antwerp, Vice President of Power<br />
& Gas Sales for Southern and Eastern Africa<br />
at Siemens says: “Our gas turbines fulfil<br />
the high requirements of a wide spectrum<br />
of applications in terms of efficiency,<br />
reliability, flexibility and environmental<br />
compatibility. There has been a major<br />
shift in the market from centralised power<br />
generation to distributed generation. At<br />
Siemens we believe that this is a trend much<br />
to the benefit of Africa as the electrification<br />
levels are still low. One of our innovative<br />
products is the SGT-800. This machine is<br />
getting a lot of attention in the continent<br />
primarily because it offers broad flexibility<br />
in fuels, operating conditions, maintenance<br />
concepts, package solutions, and ratings.”<br />
The excellent efficiency and steam-raising<br />
capability make it outstanding in cogeneration<br />
and combined cycle installations. The<br />
SGT-800-based power plant, designed for<br />
flexible operation, is perfectly suited as grid<br />
support. The SGT-800 combines a simple,<br />
robust design, for high reliability and easy<br />
maintenance, with high efficiency and low<br />
emissions. With more than 300 units sold and<br />
over 4 million equivalent operating hours, it is<br />
an excellent choice for the African markets.<br />
Matthieu Cecillon, Vice President of<br />
Application Engineering for Sub-Saharan<br />
Africa at Siemens says: “The Siemens<br />
SGT-800 gas turbine is available in three<br />
versions with power output of 47.5, 50.5<br />
and 54.0 MW respectively. The gas turbine<br />
combines a robust, reliable design with<br />
high efficiency and low emissions. This<br />
makes it an ideal choice for municipal and<br />
industrial power generation, refineries, and<br />
the oil and gas industry. Its high exhaust<br />
energy content makes the Siemens SGT-<br />
800 particularly well suited for combined<br />
heat and power and combined-cycle<br />
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 />
between major overhauls, low maintenance<br />
costs, and an excellent electrical efficiency,<br />
the Siemens machine achieves the lowest<br />
lifecycle costs and the best combinedcycle<br />
efficiency within its class.”<br />
The Siemens SGT-800 is a single-shaft<br />
machine with 15 compressor stages. The<br />
first three stages have variable guide vanes.<br />
To minimize leakage over the blade tips,<br />
abradable seals are applied to stages four<br />
to fifteen. The three-stage turbine is built as<br />
one module and is bolted to the compressor<br />
shaft to provide for easy maintenance. The<br />
turbine stator flanges are air-cooled to reduce<br />
running clearances and improve efficiency.<br />
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 />
reduces the turbine speed from 6,600 rpm<br />
down to 1,500/1,800 rpm. The Siemens<br />
SGT-800 gas turbines are equipped with Dry<br />
Low Emissions (DLE) combustion system<br />
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
IEC62055-31<br />
UC3 Compliant<br />
• Latching Relay<br />
• Manganin Shunt<br />
• Current Transformer<br />
Tel: +86 577 28877711 | Fax: +86 577 28877722<br />
www.nicerelay.com | overseas@nicerelay.com<br />
nicerelay ncrindustrial
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 />
www.africanbusinessreview.za 129
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