TECHNOLOGY LOGISTICS POWER

Alain Nkontchou,managing partner ofEnko Capital, on launch of Enko Capital Debt Fund

P18

www.africanreview.com

LOGISTICSContainer traffic outlook in Africa lookschallenging despite improvements P31

POWERAdvanced solar farms inMorocco and South Africa P34

CONSTRUCTIONTanzania starts work onflagship 300km railway P37

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

TECHNOLOGYCloud storage potential for thecontinent P27

MAY 2017

P46

AFRICAN CONSTRUCTIONMARKET ANALYSISInvestment opportunities remain solidfor infrastructure projects despite weakglobal economy

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52YEARSSERVING BUSINESS IN

AFRICA SINCE 1964

African Review of B

usiness and TechnologyMay 2017

Volume 53 N

umber 4

www.africanreview

.com

LESOTHO'S GLITTERING AMBITIONSLiqhobong mine yields large diamond find

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Alain Nkontchou,managing partner ofEnko Capital, on launch of Enko Capital Debt Fund

P18

www.africanreview.com

LOGISTICSContainer traffic outlook in Africa lookschallenging despite improvements P33

POWERAdvanced solar farms inMorocco and South Africa P34

CONSTRUCTIONTanzania starts work onflagship 300km railway P37

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

TECHNOLOGYCloud storage potential for thecontinent P29

MAY 2017

P46

AFRICAN CONSTRUCTIONMARKET ANALYSISInvestment opportunities remain solidfor infrastructure projects despite weakglobal economy

P38

52YEARSSERVING BUSINESS IN

AFRICA SINCE 1964

LESOTHO'S GLITTERING AMBITIONSLiqhobong mine yields large diamond find

� � � � � ��

Cover Inset: Enko Capital

Serving�the�world�of�business

Audit Bureau of Circulations -Business Magazines

Editor’s NoteWelcome to our May issue. Lesotho has made our cover this month after the discovery of a 110-

carat gem-quality light yellow diamond at Liqhobong mine – renewing hopes it will be the first ofmany finds for operator, Firestone Diamonds.

We have a special feature on Africa's construction markets – despite the economic constraints andlow commodity prices affecting revenue into infrastructure spending – there are impressivedevelopments taking shape. This is especially prevalent in East Africa, where 43 projects are underway,totalling US$27.4bn. Kenya's Konza Smart City is the biggest in the region − worth US$14.9bn, it is setto be completed by 2030.

In logistics, we depict a realistic outlook for Africa's shipping sector. Although statistics show adecrease in container traffic volumes on Asia-Africa routes year-on-year, Southern Africa’s containerisedimports from Asia have given hope by bucking this trend earlier this year.

Lastly in technology, we examine the factors driving the growth of next-generation storage in Africaand enabling African markets to ignore older technologies and leapfrog directly to cellularinfrastructure and cloud-based solutions.

Samantha Payne, Editor

Contents18 Profile

Alain Nkontchou, managing partner of Enko Capital, talkson the launch of the Enko Capital Debt Fund

27 TechnologyData storage in Africa looks set to grow in the comingyears, offering many advantages over traditional digitaldata technologies

31 LogisticsContainer traffic volumes on Asia-Africa routes, particularWest Africa, have suffered in recent times with steadydeclines, but Southern Africa’s containerised imports havehelped buck the trend, reporting a minor recovery inJanuary

34 PowerA report on some of the world’s sophisticated solar farmsin Morocco and South Africa

37 ConstructionWork on Tanzania's 300km standard guage railway hasstarted, linking the Port of Dar es Salaam to Morogoro, inthe eastern part of the country

38 A special analysis feature on construction projects inAfrican markets and the challenges facing infrastructurespending

46 MiningOperator Firestone Diamonds announced its largestdiamond find, a 110-carat yellow diamond, at theLiqhobong mine in Lesotho, prompting hopes for furtherhigh quality jewels to be discovered

P18

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P31

P27

Editor: Samantha PayneEmail: [email protected]

Editorial and Design team: Bob Adams, Prashant AP, Hiriyti Bairu, Miriam Brtkova, Kestell Duxbury, Ranganath GS, Rhonita Patnaik,Rahul Puthenveedu, Nicky Valsamakis, Vani Venugopal and Louise Waters

Group Editor: Georgia Lewis

Contributing Editor: Martin Clark

Publisher: Nick Fordham

Magazine Manager: Serenella FerraroTel: +44 207 834 7676 Fax: +44 207 973 0076Email: [email protected]

India TANMAY MISHRATel: +91 80 65684483 Email: [email protected]

Nigeria BOLA OLOWOTel: +234 80 34349299Email: [email protected]

UAE RAKESH PUTHUVATHTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]

UK MICHAEL FERRIDGETel: +44 20 7834 7676 Fax: +44 20 7973 0076Email: [email protected]

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Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United KingdomTel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076

Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office L2-112, Loft Office 2, Entrance B,PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261

Production: Kavya J, Nelly Mendes and Sophia Pinto E-mail: [email protected]

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Chairman: Derek Fordham

Printed by: Buxton Press

Printed in: April 2017

ISSN: 0954 6782


AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MAY 2017 www.africanreview.com4

Swaziland ranked top of allAfrican countries as havingthe highest level of free trade,

according to the 2017 Index ofEconomic Freedom.The country, known as one of the

world’s last remaining absolutemonarchies, scored 88.9, followedclosely by Mauritius with 88.7.Swaziland’s economy is closely

linked to the South African economyfrom which it receives more than 90per cent of its imports and to whichit sends 60 per cent of its exports:sugar, wood pulp, cotton, beef andsoft drink concentrates. Sudan, which is due to have its

economic and financial sanctionslifted in July, had the lowest globaltrade freedom score of 50.5, whileHong Kong, Liechtenstein, Macao,Singapore and Switzerland scoredthe highest in the world with 90. The trade freedom scores were

released by The HeritageFoundation and are based on twovariables: trade-weighted averagetariff rates and non-tariff barriers(NTBs), from the World Bank’s mostrecent data. The weighted averagetariff uses weights for each tariffbased on the share of imports foreach good. Different imports oftenface different tariffs.The report stated, unlike inflation

data, some countries do not reporttheir weighted average tariff rate everyyear. Therefore, countries like NorthKorea and Somalia were not graded.The 2017 index, which was based

on data from the second half of2015 until the end of June 2016,demonstrated the important linkbetween trade freedom andprosperity and well-being. Itindicated those countries with themost trade freedom have higher per

capita incomes, lower rates ofhunger in their populations, andcleaner environments. According to the report, since the

Second World War governmentbarriers to global trade havereduced significantly. Today, theaverage world tariff rate being lessthan three per cent. Countries withlow tariffs and few non-tariffbarriers promote stronger growthand encourage freedom in general –including the protection of privateproperty rights and allowing peopleto buy what they want, it added.“The 2017 Index of Economic

Freedom shows people who live incountries with low trade barriers arebetter off than those who live incountries with high trade barriers.Reducing those barriers remains aproven recipe for prosperity.

Governments interested in highereconomic growth, less hunger, andbetter environmental quality shouldpromote freedom, not pander tospecial interests who want to restrictit,” it concluded.The findings come as current

trade policies are being questionedin the USA – where the average tariffrate is just 1.4 per cent but pickuptrucks face 25 per cent tariff – andaround the world as the volume ofworld trade is stagnating.In the report, WTO director-

general Roberto Azevedo is quotedas saying, “Out of the more than2,800 trade-restrictive measuresrecorded...since October 2008, only25 per cent have been removed. Inthe current environment, a rise intrade restrictions is the last thingsthe global economy needs.” �

Swaziland reaches the top in African economicfreedom index

NEWS

Swaziland receives more than 90 per cent of its imports from South Africa.(Source: Shutterstock)

The latest rankings in the 2017 Index of Economic Freedom by The Heritage Foundation shows people living incountries with low trade barriers are better off.

2017 Trade Freedom Scores

Country ScoreSwaziland 88.9Mauritius 88.7Morocco 84Botswana 83.8Namibia 83.5Seychelles 83.4Lesotho 80.2Libya 80Uganda 78.3Zambia 78.3Madagascar 78South Africa 77.3Mozambique 76.7Tanzania 76Burundi 74.2Senegal 73.1Liberia 72.8Côte d'Ivoire 72.3São Tomé and Príncipe 71.8Togo 71.3Malawi 70.5Rwanda 70.3Egypt 70.2Comoros 70.2Mali 70.1Sierra Leone 69.4Eritrea 69.2Burkina Faso 69.2Benin 68.7Cape Verde 68.2Kenya 67.2Niger 66.4Guinea-Bissau 65.2Ethiopia 65.1Ghana 65.1Gambia 65Democratic Republic of the Congo 64.6Tunisia 63.8Algeria 63.3Nigeria 62.3Mauritania 62.3Gabon 61.8Guinea 61.2Angola 56.7Central African Republic 55.2Djibouti 54.9Chad 54.7Equatorial Guinea 53.8Cameroon 53.4Zimbabwe 52.8Congo 52.2Sudan 50.5Somalia NGSouth Sudan NG

Source: Heritage Foundation calculations fromthe 2017 Index of Economic Freedom


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Waryaa Taxi app has launched in Somalia.It will allow passengers to book taxis from theirsmartphones for the first time in the country.

“Waryaa Taxi is a creation of individuals whowere tired of overpaying for taxis. They were alsoconcerned about the security of many taxis in theregion. Waryaa Taxi is safe, cheap and convenient.We are working to make deals with drivers in maincities,” said MR Kodah, co-founder and chiefexecutive officer (CEO) of Waryaa Taxi.

Taxi app launched in Somalia

BRIEFS

Ortac Resources has announced that AndiamoExploration Limited will begin a reverse circulationdrill programme at its Haykota Exploration LicenseArea in Eritrea. "We are very pleased that Andiamohas secured the funds to re-commence drillingthese highly prospective targets in their Haykotalicense area and we look forward to reportingfurther progress in due course," says VassiliosCarellas, Ortac's CEO.

Andiamo begins drillingprogramme in Eritrea

East Africa's economy has continued to growdespite the adverse effects of drought,according to the Institute of CharteredAccountants in England and Wales.In its latest report, Economic Insight:

Africa Q1 2017, the accountancy and financebody points out that authorities from variousEast African nations have attempted tomitigate the effects of the drought bystimulating economic activity through fiscalstimulus and loosened monetary policy.The report, commissioned by ICAEW and

produced by partner Oxford Economics,provides a snapshot of the region's economic performance, focusing specifically on Kenya, Tanzania,Ethiopia, Nigeria, Ghana, Cote d’Ivoire, South Africa and Angola.According to the report, Tanzania is set to hit a real GDP growth of 6.9 per cent, followed by Uganda

at 6.8 per cent, Ethiopia at 6.7 per cent, and Rwanda and Kenya at 6.6 per cent and 6.4 per centrespectively, despite the drought. Rwanda and Uganda have loosened monetary policy during the firstquarter of the year, while Ethiopia counterweighed the drought effects through substantial fiscalstimulus – the construction sector reportedly expanding by 25 per cent during the 2015/16 fiscal year.Michael Armstrong, regional director, ICAEW Middle East, Africa and South Asia said, "Overall,

economic growth in East Africa remains strong despite the drought. Infrastructure developmentcontinues to stimulate industry across the region, while expanding services to the largely un-servicedmarkets remains the key driver behind growth."The adverse effects of the drought have been most notable in Uganda, with agriculture decreasing

during the first three quarters of 2016. Poor crop production has also had a marked impact on foodprice inflation across the region. While not particularly intense in historic terms, inflationary pressuresin recent months can almost entirely be attributed to high food prices, with non-food price inflationremaining subdued. Most agriculture in East Africa is highly dependent on the weather, and adverserainfall is directly reflected in agricultural production and food prices.

Uganda and Seychelles have been singled outas the two countries with the most efficientpower utilities in sub-Saharan African,according to a World Bank report.The study, entitled Making Power Affordablefor Africa and Viable for Its Utilities, will bepresented at the utilities CEO forum at AfricanUtility Week in Cape Town from 16-18 May. Ithighlighted Seychelles and Uganda “fullycovered operational and capitalexpenditures”.Ugandan’s power distributor Umeme said it

reduced technical and distribution losses to19 per cent, from 35 per cent in 2008. It aimsto reach 14 per cent by the end of 2018.The report found Uganda, which has 15 per

cent of its population connected to the gridand five per cent to offgrid solutions, hasfiscal capacity “to charge better-off, large-consumption customers more andcross-subsidise needy households.”Umeme has also introduced pre-metering

to help reduce the number of people unableto pay their bills.The World Bank praised Uganda’s initiative

to attract smaller independent power projects(IPPs) investments, “including the innovativecompetitive bids for small hydropower,biomass, and solar projects solicited underthe global energy transfer feed-in tariff(GETFiT) program”.After South Africa, Uganda has the largest

number of IPPs in sub-Saharan Africa and theonly other competitively bid grid-connectedsolar photovoltaic (PV) program.”In a statement by Lucio Monarith, the

World Bank’s director of energy and extractiveglobal practice said, “Less than half of utilitiescover operating expenditures while severalcountries lose in excess of US$0.25 per kWhsold. In this context, it will be difficult forutilities to maintain existing assets, let alonefacilitate the expansion needed to reachuniversal access goals.”

East African economy bites back despiteeffects of drought

UGANDA AND SEYCHELLESARE POWER EFFICIENT

Kenya’s latest Nielsen Consumer Confidence Index score for the last quarter in 2016 has dropped 11 pointsfrom the previous quarter to 109.

Capped interest rates, rising food inflation due to drought and unemployment concerns, particularlyamong the young (nearly one in every five Kenyan youths is unemployed), fuelled the decline in consumerconfidence, according to managing director Abhik Gupta of Nielsen East & West Africa.

“Compared with other more volatile economies in Sub-Saharan Africa, the Kenyan economy is growingat a relatively strong and stable rate, with GDP growth of 6.2 per cent, and Kenyans are generally feelingpositive about the future,” said Gupta, adding that “It's important to realise that the set of factors influencingconfidence are multifaceted and go beyond economics and business. There continues to be wide variation inconfidence across countries, as confidence is affected more by local conditions than global ones.”

KENYA’S CONSUMER CONFIDENCE DIPS

Drought does not hinder economic growth in East Africa.(Source: Shuttlestock)

NEWS | EAST


Source: ShuttlestockThe Haykota licence in Eritrea. (Photo: Ortac Resources)


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Madagascar and Botswana are among nine Africancountries to have confirmed they will be representedat the Africa Energy Forum (AEF), which is set towelcome 2,000 decision-makers in Africa’s energysector to Copenhagen this June. AEF is the annual meeting point for Africa’s

energy sector for decision-makers to exploreinvestment opportunities, form partnerships and signdeals. It will see the return of the off the grid villagearea as a networking hub for the off grid community.

Madagascar ministry to attend AEF

BRIEFS

Bank Windhoek has announced the introduction ofGoPay, the bank’s unique mobile payment solutionfor fuel in Namibia.Baronice Hans, managing director, has more than

80 fuel merchants lined up to accept mobilepayments, according to local media. “The GoPay product is an example of our passion

and dedication to connect our customers to apositive experience,” said Hans.Payments can be used with any mobile model.

Bank Windhoek announces GoPay mobile solution

Botswana is the most attractive economy for investments flowing into the African continent, accordingto the latest Africa Investment Index 2016 by Quantum Global Research Lab.

The country scores highly based on a range of factors that include credit rating, current accountratio, import cover and ease of doing business.

Prof Mthuli Ncube, head of Quantum Global Research Lab stated, “Despite considerable externalchallenges and the fall in oil prices, many of the African nations are demonstrating an increasedwillingness to achieve sustainable growth by diversifying their economies and introducing favourablepolicies to attract inward investments. Botswana is a case in example – its strategic location, skilledworkforce and a politically stable environment have attracted the attention of international investors,leading to a significant influx of FDI.”

The report stated the top five African investment destinations attracted an overall FDI of US$13.6bn.Morocco was ranked second on the index based on its increasing solid economic growth, strategicgeographic positioning, increased foreign direct investment, import cover ration and overall businessenvironment. Egypt was ranked third due to increased foreign direct investment and real interest rates,and a growing urban population. The fourth country on the list, South Africa, scored well on the growthfactor of GDP, ease of doing business in the country and significant population. While Zambia was thefifth country on the list due to its significant domestic investment and access to money supply.

Ncube added, “With apopulation of over one billionpeople and rapidly growingmiddle class, Africa clearly offerssignificant opportunities to investin the continent’s non-commodities sectors such asfinancial services, constructionand manufacturing. However,structural reforms and greaterprivate sector involvement arecrucial to unlocking Africa’s truepotential.”

Airswift, the global workforce solutionsprovider for the energy, process andinfrastructure sectors, together withEmbrace, a local HR consultancy inMozambique, has launched a joint venture,Airswift Embrace.

The 50/50 JV forms part of Airswift’songoing global growth strategy to increase itsinternational reach, enhance its scope ofservices and provide additional flexibilityand scalability to its clients.

Airswift Embrace employs a small teamfrom its main office in Maputo, the capital,with plans to expand into Pemba and Palma,and employ up to 20 local staff membersover the next year.

Richard Clay, head of businessdevelopment for Africa at Airswift, willoversee operations and lead the local team.Clay said, “Mozambique’s wealth of energyresources, particularly liquefied natural gas,make it a strategic location for the company.This isn’t about one immediate project but along-term investment in an increasinglyimportant area.”

Embrace entered the partnership to accessAirswift’s international expertise andexperience within the global recruitmentmarket, while Embrace’s significantknowledge of the Mozambique market willenable both companies to better serviceclients and contractors at a local level and ona larger, global scale.

Andre Duane, manager at Embrace,added, “We are delighted to be associatedwith a company that has the global reach ofAirswift. Their world-class reputation andimpressive client base combined with ourlocal knowledge and expertise, means wewill be able to serve the Mozambique marketto the highest standards.”

A number of investment projects inMozambique will reach a final decision inthe next 12-18 months.

Botswana comes first in latest Africaninvestment index

AIRSWIFT & EMBRACEEXPAND INTO MOZAMBIQUE

Botswana is Africa’s top investmentdestination factors including its strategiclocation. (Source: Shutterstock)

NEWS | SOUTH


Madagascar and Botswana ministriesare set to attend Africa’s leadingenergy summit in June.

GoPay, mobile solution, is launched byBank Windhoek.

Top 10 and bottom 10 countries to invest

Rank Top 10 (best to worst) Bottom 10 (worst to best)

1 Botswana Somalia

2 Morocco Eritrea

3 Egypt, Arab Rep. Central African Republic

4 South Africa South Sudan

5 Zambia Sierra Leone

6 Cote d’Ivoire Liberia

7 Algeria Malawi

8 Tanzania Equatorial Guinea

9 Namibia Gambia

10 Burkina Faso Madagascar

Source: Quantum Global Research Lab



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North African expansion is planned for the Hiltonhotel chain with a dedicated development officeopening in Casablanca. There are now 15 Hiltonhotels across Algeria, Egypt, Morocco and Tunisia.The latest property to open in the region is theHilton Garden Inn Casablanca Sidi Maarouf. Atpresent, Hilton is developing 5,000 rooms in NorthAfrica, with the majority in Egypt, but theCasablanca office indicates wider regionalexpansion is planned.

Hilton expands in North Africa

BRIEFS

Scatec Solar and partners have signed powerpurchase agreements to produce 400 MW of solarenergy in Egypt. The electricity will be producedfrom six plants, all of which are located in the BenBan region near Aswan in Upper Egypt. Thiselectricity is expected to replace around 350,000tonnes of CO2 per year, supporting Egypt’semission targets as per the Paris ClimateAgreement, which was signed in 2015 at the UN’sannual climate change conference.

400 MW solar boost for Egypt

Investment by the public and private sector in theagriculture value chain is required to solve NorthAfrica’s water crisis, support economic growth andcreate jobs, with a focus on wheat, sugar, meatand horticulture. This is according to Jose Grazianoda Silva, director-general of the Food andAgriculture Organisation of the UN (FAO).

He said that an “urgent and massive response”is needed to improve access to water, which isneeded for food security, agricultural developmentand health. FAO figures indicate that accessiblefresh water in the Middle East and North Africa (MENA) region has fallen by two-thirds in the past 40years, amounting to 10 times less per capita availability than the world wide average.

A study by the FAO found that higher temperatures may shorten growing seasons in the region by 18days and reduce agricultural yields a further 27 per cent to 55 per cent less by the end of this century.

For Egypt, this is particularly critical with rising sea levels in the Nile Delta exposing the country tothe risk of losing substantial agricultural land due to salinisation.

However, the director-general supported the approach taken by Egypt in regard to this issue, addingthat the FAO would favour an Egyptian agricultural investment forum being held towards the end of2017 aimed at boosting public and private investment.

Egypt's future water use agenda is especially challenging as the country "needs to look seriously intothe choice of crops and the patterns of consumption," Graziano da Silva warned, pointing to potentialwater waste in cultivating wheat, a staple of the country’s agriculture industry.

In terms of meeting water sustainability goals, the FAO has been involved in multiple projects acrossthe MENA region, including decentralised groundwater governance schemes in Morocco and Yemen,solar pumping in Egypt, and drought preparedness schemes for Lebanon and Tunisia.

Additionally, policy advice and best practice ideas on the governance of irrigation schemes is anessential part of the FAO's Near East and North Africa Water Scarcity Initiative. This initiative is backedby a network of more than 30 national and international organisations, and has been endorsed by theLeague of Arab States as well as receiving donor support.

The Moroccan city of Rabat has played hostto a workshop on access to climate finance,organised by the United Cities and LocalGovernments of Africa (UCLGA).

The workshop brought together Moroccaninstitutions, such as the Interior Ministry, theGeneral Directorate for Local Governments,the Cadi Ayyad University in Marrakech, andthe Communical Equipment fund, as well aspan-African and international groups.

With the goal of initiating a process ofimplementation for better access to climatefinance at local and regional levels, taskforce was established, as well as a supportingprotocol, which was signed between UCLGAand ENERGIES 2050, an NGO focused on lowcarbon development.

The task force aims to implement a roadmap for a proposed ecosystem with localstakeholders urged to play a strong role inprojects, such as green climate funds andother climate finance instruments. Theworkshop proposed that UCLGA should berecognised as an implementing agency for anew green climate fund.

During COP22, the last UN climate changeconference, African cities requested theestablishment of a dedicated window forsub-national governments within a newgreen climate fund. They expressed hopethat a capacity-building programme wouldbe established to help local governmentsaccess these funds and move towardsmeeting carbon reduction targets.

Cities were the main focus of thisworkshop because of increased urbanisationin Africa and beyond, with cities nowhousing more than half of the world’spopulation, consuming 60 to 80 per cent ofthe world’s produced energy. Three-quartersof our greenhouse gas emissions are directlyassociated with urban spaces, and it isestimated that by 2050, 75 per cent of theworld’s population will live in cities.

Public and private investment needed tosolve North African water crisis: FAO

RABAT HOSTS CLIMATEFINANCE WORKSHOP

Fifteen joint science and technology research projects will be funded by the US-Egypt Science andTechnology Joint Fund. The projects were approved in a meeting of the fund’s board of directors, which washeld in Cairo in April. Grants will be given to projects in the fields of agriculture, energy, health and water,continuing a long tradition of science and technology cooperation between the two countries. Since thefund was established in 1995, the fund has provided grants for more than 500 collaborative projects. Theseinclude research which has contributed to creating vaccines for the H5N1 avian influenza virus, thedevelopment of highly efficient solar cells, and improved wheat and citrus production which reduces the useof chemical fertilisers. Robert S. Beecroft, US ambassador to Egypt, said the fund has “promoted sciencecollaboration to address development challenges and promote economic growth” and that this has had “adirect and positive impact on people’s lives.”

EGYPT AND USA TO FUND TECHNOLOGY PROJECTS

Salinisation is impacting on Nile Delta farmers. (Source: camilo g. r./Flickr)

NEWS | NORTH


Hilton’s Feras Hasbini. (Source: Hilton)Signing ceremony for the solar poweragreement. (Source: Scatec Solar)


That Work. s Lifting Solutions

www.africanreview.com 11MAY 2017 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

The Trump administration will decide whether or not it willeliminate economic and financial sanctions on Sudan for thefirst time in its 20-year bloody history on 12 July.

It will be a historic moment as it will mean investors will bekeen to take advantage of Sudan's rich oil and gold resourcebase like never before. There are already oil companies from theMiddle East, the USA and Europe uniquely positioningthemselves for the years ahead.

Osama Faisal, minister of investment, said if sanctions arelifted, investment opportunities will increase across allindustries; in the mining, power and oil sectors [there are still1.5bn barrels of oil reserves available], as well as in the food andpharmaceutical sectors. There is also massive potential todevelop renewable energy like solar and wind to support theeconomic growth of the country.

He said, "It is not just a 'win win' situation for Sudan but for the whole world. The US sanctions wereaffecting all the other countries. In my opinion, one of the reasons for the sanctions to be lifted fromSudan, is that some of the companies started rebelling against the sanctions."

He cited Siemens as an example of a company which closed their offices in Sudan because it did notwant to compromise their business with the USA. But the German company was keen to do businessagain in Sudan and agreed last year with the government-owned Sudanese Thermal Power GeneratingCompany to supply five power plant units.

Sudan lost most of its oil reserves after the secession of the south in 2011, but it forced the republicto diversify into other sectors like mining, which he described as a 'big renaissance for Sudan'.

"Luckily, most of our resources remain untapped despite the war and the situation has calmed downin Darfur, attracting investors in Sudan in the future. I'm working with the private sector in the UK andUSA to make sure the sanctions are lifted, and I am optimistic that things are going in the rightdirection," he added.

The lifting of US sanctions depends on the Sudanese government proving it has acted towards endingarmed conflict, has improved humanitarian access and cooperated in the fight against terrorism.

Government officials, private sectorrepresentatives and development partnersparticipated in the presentation of UNCTAD'sInvestment Policy Review (IPR) of theGambia in Banjul.

The report recommends improving theGambia's legal framework for investment, aswell as its approach to promoting foreigninvestment in the country.

“The IPR is timely and the newgovernment requires visibility to attract newinvestments,” said Naffie Barry, permanentsecretary of the Gambia's ministry of trade,industry and employment, adding theministry is determined to implement theIPR's recommendations to address thesupply-side constraints that hinder economicactivity in the country.

While recognising the environment in theGambia is open to investment, the reporthighlights the fact that the country'spotential remains largely untapped.

Improving the environment requires moreeffective implementation for the lawsgoverning business in the country, andstrengthened capacities for governmentinstitutions, especially for putting in place aprioritised and focused investmentpromotion strategy, it stated.

During the presentation on 11 April,Chantal Dupasquier, chief of UNCTAD'sinvestment policy review section,emphasised the role foreign directinvestment (FDI) plays in helping Gambiaachieve its development objectives if thecorrect policies are put in place to foster avibrant private sector.

“Clarity, stability and predictability arevital words for investors,” said Dupasquier.

Another policy challenge includesaddressing trade constraints.

"Sanction relief is a 'win win situation' notjust for Sudan but for the whole world"

GAMBIA’S INVESTMENTPLAN COMES AT RIGHT TIME

The airport in Abuja, Nigeria, has reopened after being closed for six weeks for urgent repairs to its runway.An Ethiopian Airlines flight was the first to land on 18 April. This first plane on the new runway was the latestAirbus A350-900 from Ethiopian Airlines that Africa had welcomed. President Muhammadu Buhari praised ministries, security agencies and others over the re-opening of the

airport. He was impressed with such displays of inter-agency cooperation and efficiency in the operation ofthe entire federal government machinery. He also thanked Ethiopian Airlines for cooperating with theNigerian government during the period of the closure of Abuja airport.

ABUJA AIRPORT REOPENS AFTER SIX WEEK CLOSURE

Most of Sudan’s resources still existdespite the war. (Source: Shutterstock)

NEWS | WEST


http://www.safrench.co.za/

Upcoming Events Calender 2017

EVENTS | 2017


Propak East Africa cemented itself as theleading industry exhibition for the widerEast African region in the packaging,printing and plastics sector.Some 3,095 trade delegates from 43

countries in Africa and the rest of theworld attended the three-dayconference at the Kenyatta InternationalConvention Centre in Nairobi. During the event themed, 'Proving

the efficiency of packaging, printing andprocessing in East Africa', 123 exhibitors met with regional industrybuyers to network and discuss futureand existing business, as well as heartalks from major brands, such as Coca-Cola, Robert Bosch and Kenya Bureau ofStandards and Tetra Pak.Boxmore Packaging from South Africa, said, “Propak East Africa worked very well for us. We were

able to generate new business and potential leads from a wide variety of different countries, not justwithin the East Africa region, but the whole world.” Another exhibitor, Swedev AB from Sweden said,"Propak East Africa was so much better for us than we anticipated. It was our first time at theexhibition so we took a small stand in the second, smaller hall. However this didn’t affect us at all, andafter generating new leads in the region, we have decided to re-book for the 2018 show.”Alexander Angus, the East African regional director for Montgomery, the organisers of Propak East

Africa, said having finished the event, “We are thrilled that we have run another hugely successfulevent here in Kenya." The next edition of Propak East Africa will run from 27 February to 1 March 2018.

Third edition of Propak East Africa hailed asthe biggest and best yet

MAY8 - 11

MASTERING RENEWABLE &ALTERNATIVE ENERGIESJohannesburg, South Africainfocusinternational.com/renewable

9 - 12

MACHINE TOOLS AFRICA 2017Johannesburg, South Africawww.machinetoolsafrica.co.za

12 – 14

BUILDEXPO ETHIOPIA 2017Addis Ababa, Ethiopiawww.expogr.com

15 - 17

MINING INVESTMENT AFRICAAbuja, Nigeriawww.mininginvestmentafrica.com

16 - 18

AFRICAN UTILITY WEEKCape Town, South Africawww.african-utility-week.com

24

SMART BUILDINGS &INFRASTRUCTUREJohannesburg, South Africawww.smart-summit.com

29 - 31

INFRA EAST AFRICA Nairobi, Kenyawww.infraeastafrica.com

30 - 1 June

SECUREX SOUTH AFRICA Midland, South Africa www.securex.co.za

30 - 1 June

NICONEXLagos, Nigeriawww.niconex.net

31 - 1 June

AFRICA CONSTRUCTION SUMMITMunich, Germanywww.africaconstructionsummit.com

JUNE5 - 7

AFRICA OIL & POWERCape Town, South Africawww.africaoilandpower.com

7 - 9

AFRICA ENERGY FORUMCopenhagen, Denmarkwww.africa-energy-forum.com

13 - 14

AIRPORTS SHOW AFRICAJohannesburg, South Africa www.terrapinn.com

13 - 15

CONMIN WEST AFRICAAbuja, Nigeriaconminwestafrica.com

19 - 20

EAST AFRICA FUTURE BANKINGNairobi, Kenyawww.fleming.events

Trade delegates from 43 countries in Africa and the world attendedthe conference in Nairobi. (Photo source: Propak East Africa)

As ConMin West Africa's opening ceremonydraws closer, national and international playersand businesses will be gathering in Abuja,Nigeria, to take part in the two-day event.

The national mining summit on 13 - 14 Junewill be organised around nine pillars of the‘Africa Mining Vision’ action plan. These pillarsinclude: improving mining revenues and mineralrents management, improving geological andmining information systems, building human andinstitutional capacities, integrating artisanal andsmall scale miners, improving mineral sectorgovernance, research and development,environmental and social issues, linkages anddiversification and mobilising mining andinfrastructure investment.

The fall of commodity prices impactingeconomic growth has heightened the need tofast track the Africa mining vision throughrevenue base diversification and increase localadded-value to minerals produced.

The Federal Ministry of Mines and SteelDevelopment in Nigeria, for example, aims togrow its mining sector to the economy from 0.2per cent in 2015 to three per cent in 2025following the collapse in the oil price, whichdrove the country into recession in 2016.

CONMIN WEST AFRICADRAWS NEARER

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US$27.4BN PROJECTS ATTRACTGLOBAL CONSTRUCTIONPLAYERS IN EAST AFRICAThe second edition of The Big 5 Construct EastAfrica on 1-3 November 2017 is expected toexceed the launch event.Last year more than 8,500 people attended theThe Big 5 Construct East Africa.It is the official exhibition of Kenya’s NationalConstruction Week and this year will be biggerwith more than 200 local and internationalexhibitors. “With East Africa being the fastestgrowing region in the continent, the event issetting itself as the central meeting place forglobal manufacturers of construction products tonetwork and do business,” said Andy Pert,exhibition porfolio director. “Demand of

innovative solutions for the built environment incountries like Kenya, Tanzania, Uganda andEthiopia is booming.”

CABLE SYSTEM CONNECTINGAFRICA AND THE AMERICAREACHES MAJOR MILESTONE

Angola Cables has announced the completionof the marine survey for the South AtlanticCable System (SACS). When it is completed by middle of 2018, SACSwill interconnect with the Monet Cable System,connecting the US and Brazil, and WACS, theWest Africa Cable System. SACS is a top Tbpscable, 6,165km in length, with four fibre pairs.Each fibre pair is capable of transmitting 100wavelengths with a bandwidth of 100Gbit/s.“SACS, along with Monet and WACS, provideunparalleled value for which we are seeing very high demand in the marketplace,” saidArtur Mendes, chief commercial officer forAngola Cables.

DRC TO HOLD IMPORT TALKSWITH ESKOM

The Democratic Republic of Congo (DRC) hopes toimport electricity from South Africa soon to

counter a gaping power deficit that has dentedmining output. The DRC is Africa’s top copperproducer. Officials from Congo’s power utility andthe chamber of commerce plan to hold importtalks with South Africa’s Eskom.The DRC is already plagued by energy shortfalls.There are fears that scarce rainfall could cause anear 50 per cent drop in output from the country'smain hydropower plants during the dry seasonwhich runs from May to September

BOLLORÉ BOOST FOR GUINEARURAL ELECTRIFICATION

France’s Bolloré Group has unveiled a freshcommitment to developing a decentralised ruralelectrification programme in Guinea.The announcement was made following ameeting in April between Guinean President Alpha Condé and the French President François Hollande in Paris. During the official visit, several agreements were signed to accelerate the development ofrenewable energies and improve access toenergy in Guinea. In the first half of 2017, Blue Solutions, asubsidiary of the Bolloré Group, will deploy apilot project to bring electricity to a villagelocated in Upper Guinea.

Workshop at The Big 5 Construct East Africa 2016.(Source: The Big 5 Construct East Africa)

NEWS | BULLETIN



http://www.panafricangroup.com/


http://www.aksa.com.tr/tr-tr/


AFRICAN REVIEW / ON THE WEBA selection of product innovations and recent service developments for African business Full information can be found on www.africanreview.com

WEB SELECTION

SOLAR ENERGY GETS A 400MW BOOST IN EGYPT

A new purchase power agreement willdeliver 400 MW of electricity to Egypt,replacing around 350,000 tonnes ofcarbon emissions.The 25-year agreement was signed byScatec Solar and its partners in thepresence of Egypt's minister forelectricity and renewable energy, DrMohamed Shaker El-Markabi, and theambassador of Norway, Mr Sten ArneRosnes.Located in the Ben Ban area nearAswan in Upper Egypt, the six solarplants will each produce 870 GWh ofsolar electricity per year. These plantsare part of the 2 GW solar FiTprogramme, which was launched by

the Egyptian government in 2015. Theelectricity produced from the plants isexpected to replace around 350,000tonnes of carbon emissions, which willassist with meeting Egypt's emissionstargets under the historic ParisClimate Agreement.

KONECRANES AND DEMAGJOIN FORCES

Following Konecranes’ worldwideacquisition of Terex MHPS, which ineffect is Demag Cranes, Hoists,Material Handling and Ports Solutions,the two global crane brands will besharing their considerable combinedknowledge and technology, becominga substantial force in the liftingbusiness in sub-Saharan Africa. The

acquisition will improve Konecranes’position as a focused global leader inthe industrial lifting and port solutionsmarket. Konecranes will achievegrowth opportunities in the servicebusiness in which it already has astronghold in Southern Africa.Konecranes has a long history ofconducting routine serviceinspections, repairs, andrefurbishment of Demag cranes. InSouth Africa, the merger also extendsto the Wolff Cranes brand which wasacquired by Demag in the late 1980’s.In terms of the port material segment,it includes handling technology with abroad range of manual, semi-automated solutions under theGottwald and Noell brands.

CÔTE D’IVOIRE JOINS ATI

The African Trade Insurance Agencyhas announced that Côte d’Ivoire hasjoined the list of countries who aremembers of the institution. ATI is ainvestment insurer whoseinvestment and commercial riskinsurance products are expected tohelp attract US$2bn worth of inwardinvestments and trade into thecountry, and to help lower itsborrowing costs by up to one percent annually.“Our countrymembership in ATI will contribute tocreating the economic conditionsthat will enable us to reach emergingcountry status by 2020,” AdamaKone, Côte d’Ivoire Minister ofEconomic and Finance said.


http://www.ortea.it/

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Alain Nkontchou, managing partner of Enko Capital talks to African Review about the launch of the Enko Capital DebtFund with US$200mn dollar assets under management.


Enko Capital is an assetmanagement companyfocused on investing in

opportunities across Africa throughthree distinct platforms: privateequity; listed equity and fixedincome.

Tell us about the new EnkoCapital Debt Fund (EADF). What’sthe rationale behind it and whatare your hopes for it?The rationale of the fund is toprovide investors with high returnsavailable in Africa debt markets. Thefund is predicated on the pillars ofdebt sustainability, value investingand active risk management. It is oneof the few funds that exist globallywhich provides direct access to theAfrican debt market, including bothhard and local currency opportunities.We expect the African debt market tocontinue to expand over time andbelieve that our expertise andknowledge of the market will lead tocreating alpha for our investors. Webelieve there is capacity to scale upthe fund to US$1bn.

Where will the new fund beinvesting: any core areas,countries or sectors that will betargeted? Have investmentsalready been made?Core areas include governmentbonds as well as corporate debt,both in hard or local currency. Interms of sectors, we are agnostic ingeneral but we anticipate beingactive in the major sectors includingfinancial services, telecoms, andconsumer goods. We have invested80 per cent of the fund sinceinception. We are currently investedin 10 countries across Africa. In thecorporate sector, we have invested14 per cent of the fund in financial services, and 30 per cent in African corporates.

How does the new fund fit withthe rest of Enko’s portfolio andwhat does it offer that’s new toinvestors?It is a natural addition to the Enkoinvestment platform andcomplements our product offering.We already offer an equity fund,EOGF, and a private equity fund,EAPEF, hence this fits in with thefirm’s long-term strategy ofbecoming a pan-African assetmanager. For investors, it offers anopportunity to gain direct exposureto African debt markets, with anabsolute return approach.

Any other forward plans for Enkoor upcoming developments thatyou can share with us right now(including any prospect of furtherfunds, or new office locations)?We are now making plans to move

to new offices as the launch of thenew fund is driving increasedstaffing requirements. There may beadditional funds launched in thefuture, in real estate in particular.However, the focus in the short termis to concentrate fully on the threeexisting funds.

Enko’s ambition is to become theleading pan-African assetmanager: how are you makinginroads and progress towardsthis?The launch of the new fund is acritical part of achieving this targetas it broadens the firm’s productoffering to include a new asset class:debt. This helps the fund todistinguish itself from other firmsand also provides investors with adiversification choice whenapproaching the African market.

What’s the current state of playwith regard to Africa’s investmentclimate: is it maturing, and doyou feel we are in a time ofgrowth and potential? Any keymarkets to watch?We believe that the environment isstill in its infancy as there isstructurally little credit available forthe private sector (private credit/GDP is below eight per cent) whencompared to other markets.Similarly, there are fewer assetmanagers that are solely dedicatedto the continent. Hence, we believethat as local economies grow, sowill the growth in pension fundsand insurance businesses. This willnaturally lead to the increase indemand for investment productsand the expansion of assetmanagement business across Africa.Hence, the sector has grownstrongly over the last decade,particularly in the private equityspace and there is still room forfuture growth. Key markets tomonitor include Egypt, Ghana,Kenya, Nigeria, South Africa, andZambia.

Going forward, what’s the longerterm potential for assetmanagement in Africa and whatare the key things to look for inhow that unfolds or grows?The prospects for asset managementin Africa are excellent due to thecombination of growing desire frominternational investors to gainexposure to the African continentand as stated above, the expectedstrong increase in demand forinvestment products from Africanpension funds and investmentcompanies. The key things tomonitor include economic growth,pension reforms, growth of theinsurance sector, growth of marketcap over GDP and private savings. �

Enko Capital launches Africa focused debt fund

PROFILE | ENKO CAPITAL

The prospects for asset management inAfrica are excellent ”ALAIN NKONTCHOU, MANAGING PARTNER, ENKO CAPITAL

Alain Nkontchou, managingpartner of Enko Capital.(Source: Enko Capital)



https://www.manitowoccranes.com/en/cranes/potain

QUOTES


“The Africa Energy Forumfocuses primarily on large

scale power projects, supportingthe public and private sectors toget projects off the ground andconnected to the grid. However,given that 600 million people livewithout access to basic energy inAfrica, increasingly investors arelooking off grid to the areas notserviced by national grids taken forgranted in developing countries,”said Simon Gosling, managingdirector of EnergyNet.”

SIMON GOSLINGManaging director of EnergyNet

“We will use technology and anew way of thinking to

provide banking services to manypeople and businesses in Nigeriafor whom access to a bank accounthas previously been impossible.We will offer telephone, mobile andInternet banking underpinned bythe traditional banking ethics ofprobity and integrity.”

MUHAMMED JUBRINManaging director and chief executiveofficer of the SunTrust Bank

“I believe that Africa willemerge to be the third centre

of global power, settled in betweenthe worlds of the East and West.The world needs Africa. It needs itsresources, its people, its skills andits insights and Africa is rising tomeet those expectations. Yes, it

has not been a smooth ride, butthe winds of change are blowing inthe right direction. This will beAfrica's century.”

BRETT PARKER Managing director of SAP Africa

“We launched the New Dealon Energy for Africa, with a

commitment of US$12bn from theBank over the next five years, withthe goal of leveraging US$45-50 bn.Our goal is connect 130 millionpeople to the grid, 75 million viaoff grids and provide some 150million with clean cookingenergy. We’ve set up a whole newVice Presidency just for Powerand Energy.”

AKINWUMI ADESINAPresident of African Development Bank

The NationalMining Summit

UNEARTHING NIGERIA’S MINING SECTOR

AEF Forum 2016

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COMMERCIAL FEATURE

Technology is moving so fast that society could soon feel the repercussions of the fourth industrial revolution.Liquid Telecom examines 3D printing technologies among others that are set to transform manufacturing once again.

In the late 18th century, newmanufacturing processes – largelydriven by water and steam power

– saw major growth in industriessuch as coal, iron and textiles,leading to profound economic andsocial change. This is today widelyrecognised as the first industrialrevolution.

By the final third of the 19thcentury, the second industrialrevolution had arrived, and with itcame new innovations in electricity,petroleum and steel that led tomany important new products andinventions – the most famous ofwhich was the automobile.

The first two revolutions helpedcreate a more affluent andurbanised society. The introductionof computers and automation hasaccelerated society further and weare currently living through thethird industrial revolution, withindustry and society becomingincreasingly digital.

Manufacturing gets smart Smart manufacturing is on thehorizon, arming manufacturers withdata that they can use to increaseefficiencies and drive new levels ofproductivity. Integral to this aredisruptive technologies such asArtificial Intelligence (AI), theInternet of Things (IoT), cloud,autonomous vehicles, big data andanalytics, 3D printing,nanotechnology and biotechnology.

There is a growing argument thatthese technologies are evolving so fastthat the world is already approachingthe fourth industrial revolution.

According to Klaus Schwab,founder and executive chairman atthe World Economic Forum, thesetypes of innovation do not merely

represent an extension of the thirdindustrial revolution but rather thearrival of a fourth one.

He argues that the speed of currentbreakthroughs has no historicalprecedent – even in comparison toany of the previous industrialrevolutions. Furthermore, he says, itis disrupting almost every industry inevery country, transforming entiresystems of production, managementand governance.

The latest Cisco Visual NetworkingIndex offers a statistical sneak-peekinto the not-so-distant future. Itestimates that by 2020 there will be4.1 billion global internet users andmore than 12 billion globalmachine-to-machine (M2M)connections (up from 4.9 billion in2015). While in the Middle East andAfrica, M2M connections are set togrow from 200 million in 2015 to536 million in 2020.

The significant rise in connecteddevices is paving the way for more

widespread and smarter automationin the manufacturing space, which isfurther accelerated by a newgeneration of cheaper and saferrobots. Over the last century, wehave made the transition frompeople manually building cars torobots assembling cars – andartificial intelligence will continueto be a game changer in an industrytypically driven by cost reduction.

Designing the future in 3D If we examine some of the otherbreakthrough technologies thatcould form part of the fourthindustrial revolution then 3D printerswould also be top of the pile.

The technology has the capabilityto replace mass manufacturing withproducts customised for individualrequirements.

The use cases for 3D printing aregrowing by the day.

“Aside from some of the moreobvious applications within the

automotive and aerospace industries,we expect to see some innovativeand potentially transformative 3Dprinting deployments among medicalsuppliers, electronics manufacturers,and tools and componentsmanufacturers," says Martin Kuban,a senior research analyst with IDCManufacturing Insights.

In fact, 3D printing technologyseems to be constantly branchingout into new and uncharteredterritory. Consider, for example, thepotential of 3D food printing.

Some experts believe foodprinters could help reduce wastethrough innovative use ofhydrocolloids; substances that formgels with water. These couldpotentially be used to transformalternative ingredients such asproteins from algae or insects intonew food products.

The Middle East and Africa isexpected to be some of the highestgrowth markets for 3D printing inthe coming years. Spending on 3Dprinting in the Middle East andAfrica market is set to reachUS$1.3bn by 2019, according toresearch from International DataCorporation (IDC).

Like the revolutions before it, thefourth industrial revolution offersthe potential to improve livingstandards and raise income levelsglobally. Its success hinges on theapplication of disruptivetechnologies across many industrysectors – but it seems manufacturingcould lead the way.

High-speed, reliable connectivityunderpins digital innovation. Tofind out more about how LiquidTelecom’s network and services aresupporting African businesses, visitwww.liquidtelecom.com �

Is manufacturing ready for the fourth industrial revolution?

The fourth industrial revolutionoffers the potential to improve

living standards globally.(Source: Liquid Telecom)



https://www.absa.co.za/personal/


BRIEFS

Google rolled out a new Doodle Tuesday in honour of Ghanaian entrepreneurEsther Afua Ocloo. She helped establish Women's World Banking, a global non-profit organisation that provided low-income women with micro-loans to helpstart their own businesses

The doodle shows Ocloo "empowering the women of Ghana with the tools toimprove their lives and communities," said Google. April 18 would have been her98th birthday.

Google doodle in name of Ghananian entrepreneur

Nigeria’s newest retail bank, SunTrustBank, posted strong results for 2016, withprofits before tax reaching N343.34mn,more than double the N131.9mn a year earlier.

The impressive results follow thelaunch of commercial banking activities,said managing director and chiefexecutive, Muhammed Jubrin. SunTrustBank was the first fresh banking licence tobe issued by the Central Bank of Nigeriasince 2001; the bank started seven yearsago as a mortgage bank.

Jubrin said the bank wants to offer itscustomers high quality retail andcommercial services in a modern andinnovative manner. “We will use technologyand a new way of thinking to provide banking services to many people and businesses in Nigeria forwhom access to a bank account has previously been impossible,” he said. “We will offer telephone,mobile and Internet banking underpinned by the traditional banking ethics of probity and integrity.”

After an encouraging 2016, the bank hopes to continue in the same vein with plans to leveragetechnology to entice new customers. “Banking is no longer where you go, it is what people do,” he said.

According to Jubrin, the bank hopes to eliminate the need for costly brick-and-mortar branches anduse agent networks to reach its customers more efficiently. Even its data centre is outsourced.

“That is at the heart of our own vision and strategy as tomorrow’s bank today,” he said. “Our serviceswill be available 24 hours daily, seven days a week and from anywhere in the world where there is agood Internet service.”

Kenya’s economy is edging upwards, theInternational Monetary Fund (IMF) reportedafter concluding a visit to the countryin April.

It said that GDP growth reached 5.9 percent in the first three quarters of 2016, upfrom 5.6 per cent in 2015. Growth wassupported by public investment spendingand tourism in the first half of 2016.

Head of the IMF team, Benedict Clements,said Kenya’s economy continued to performwell. “The banking system has remainedstable, and reforms by the Central Bank ofKenya (CBK) to strengthen the financialsystem continue.”

Clements also noted some of thechallenges arising from the drought that hasblighted much of the region, with inflationup to 10.3 per cent in March, reflecting thereduced supply of vital staple food items.This, he said, is “expected to decline asagricultural production returns to normallevels with the onset of the long rains.”

Last year, the IMF approved creditfacilities, worth around US$1.5bn.

SunTrust Bank sees profits soar KENYAN ECONOMY GROWS

SunTrust Bank posted strong 2016 results. (Source: Shutterstock)

NEWS | FINANCE


International investors and commercial lenders need to “adjust their thinking”on a range of issues in order to encourage an appropriate view on acceptablerisk allocation and investor returns in African markets, said Andrew Skipper,partner and head of Hogan Lovells’ Africa Practice.

The law firm is a sponsor at AFC Live, an infrastructure investment summithosted by the Africa Finance Corporation, that takes place in Abuja on May 15-16.

Infrastructure development is vital for Africa, added Skipper, but moreproject financing is required, which means drawing in a new pool of investors.“African-focused DFIs, export credit agencies or foreign grant funds cannotentirely fund the continent’s infrastructure needs. International investors andcommercial lenders need to adjust their thinking on a range of issues in orderto encourage an appropriate view on acceptable risk allocation and investorreturns in these sometimes complex markets.”

By bringing financiers and investors together alongside project developersand fund managers, AFC Live aims to ensure that more capital, both Africanand international, can be deployed towards addressing the continent’spressing infrastructure needs.

NEW THINKING NEEDED ONINFRASTRUCTURE FINANCING

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http://www.power-nigeria.com/en/Home/

Morocco has announced a US$10bn project to builda new industrial and technology hub near thenorthern city of Tangiers in the next 10 years withfinancing coming from Chinese group Haite,BMCE's Bank of Africa, and the Moroccangovernment. It follows an initial MoU last year forthe 2,000-hectare city, which will provide 100,000jobs and house 300,000 inhabitants. There will beindustrial zones in sectors including aeronautics,automobiles and telecommunications.

Morocco set to benefit from US$10bn tech hub

BRIEFS

South Africa’s Datatec has issued a cautionarystatement on a possible sale of a major share ofWestcon-Comstor’s operations for more thanUS$800mn. Datatec operates across three coredivisions, controlling technology distributionthrough Westcon Group. It boasts integration andmanaged services through Logicalis andconsulting and research through anothersubsidiary, Analysys Mason. The company did notname the potential buyer.

Datatec mulls Westcon-Comstor sale

Facebook is stepping up its profile inAfrica, after moving into larger SouthAfrican premises, a reflection of its stronggrowth on the continent in recent years.More than 170 million people in Africanow access the platform each month, 94per cent on mobile devices.

“Since we first established a directpresence in sub-Saharan Africa in 2015,Facebook has grown from strength tostrength,” says Nunu Ntshingila,Facebook’s regional director for Africa.“We have enjoyed working closely withentrepreneurs, partners, developers andsmall businesses as they have usedFacebook as a platform for growth. It’sinspiring for us to learn from thecontinent and to play a role in helping people and organisations connect with the world.”

Facebook’s Africa team has grown accordingly, now moving into new Johannesburg offices toprovide support for further growth, said Carolyn Everson, vice president global marketing solutions

“Facebook is deeply committed to Africa, a mobile-first continent where seven in 10 of all connectedpeople use the platform,” she said. “Many people in Africa are coming online for the first time,unleashing new possibilities for people and businesses alike. We're also seeing growth of small andmedium-sized businesses that are driving economic development, companies that Facebook wants tohelp grow locally and regionally across the continent. Our new offices are part of our ongoingcommitment to invest in the African market and work with innovators across our key target countries.”

Rwanda’s capital Kigali will host theTransform Africa Summit 2017 on May 10-12. This year’s event, the third suchsummit, will focus on developing ‘smartcities’.

Hamadoun Touré, the executive directorof Smart Africa, which is organising thesummit, said in a press statement releasedin Kigali that Rwanda’s president PaulKagame will attend the event, to be heldunder the banner, ‘Smart Cities. FastForward’.

It follows the Smart Africa manifesto,endorsed by African leaders during theTransform Africa Summit in 2013.

Smart Africa was created by around adozen African leaders – including Kagame– in a move to transform the continentand its economic prospects by 2030through the roll-out and adoption of newtechnology. Its manifesto calls onimproving access to ICT, especiallybroadband services, expanding the role ofthe private sector in its development, andimproving accountability, efficiency andopenness across the board with the rollout and use of technology.

"These leaders share a common dreamto give opportunities to the youngergeneration to evolve in an environmentconducive to technological innovation,self-development and competitiveness,leading to greater job creation," said Touré.

The initiative is also supported by theprivate sector with members includingmajor ICT firms such as Huawei, Intel,Inmarsat, Ericsson and Econet.

Rwanda has already embraced newand innovative technologies to drivechange. In the healthcare sector, thisincludes operating one of the world’sfirst drone ports to deliver urgentmedical supplies to clinics in remoteparts of the country.

Facebook to raise Africa profile SMART CITIES SUMMITHITS RWANDA

Tigo has launched a new state-of-the-art call centre in Tanzania. The facility boasts the latest technologyand includes embedded data security measures to protect customer information and identity.

“Our investment in this new call centre underscores our commitment to grow and diversify the channelsthrough which we reach our customers,”said Tigo’s managing director, DiegoGutierrez.

Operating 24 hours a day, the newcentre will serve around 55,000 customersdaily. It is supported by the PCCI Group,which specialises in customer operationsand outsourcing across multiple markets.With 20 locations and 7,000 employees, itwill offer Tigo customers traditional voicecall centre services as well as new digitalcustomer solutions like social media, e-

chat and email.

TIGO UNVEILS NEW CALL CENTRE

Left to right: Carolyn Everson – VP Global Marketing SolutionsFacebook, Nunu Ntshingila – Regional Director Africa Facebook,Nicola Mendelsohn – VP EMEA Facebook. (Source: Facebook)

NEWS | TECHNOLOGY


New tech hub to be built near Tangiers.(Source: Shutterstock)

Datatec considers sell-off of Westcon-Comstor’s operations.(Source: Shutterstock)

Tigo Launches first state-of-the art call centre in Tanzania.(Source: Tigo)

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DATA SOLUTIONS | TECHNOLOGY

Barry Mansfield looks at the factors driving the growth ofnext-generation data storage in Africa.

Storage for the future

Businesses operating at thecutting edge of the datastorage market are constantly

investing in research anddevelopment. For example, HP hasproduced an affordable flash drivethat works at very high speed.Smartphones, wearable electronics,and smart city technology – all ofthese generate data, and they're notlimited to Europe, North Americaand Asia, as Africans update theirinfrastructure for the 21st century.Once a concern for high tech hubs.such as Cape Town, storage is now apriority for African development.

This trend has brought upheavalto the IT industry, as technicians settheir sights on ‘next generation’ datastorage technology that provides asafe place and enables fast recoveryof information in a more efficientmanner. The conventional datastorage technology simply cannothandle the large chunks of data thatwill be produced in future.Additionally, the proliferation ofinput-output devices will continue topower the next-generation datastorage market in the coming decadeor two. Now, data is produced in vastquantities in practically every sector.

Next-generation storage takes theform of cloud-based disasterrecovery, all-flash storage arrays,hybrid array, holographic datastorage and Heat Assisted MagneticRecording (HAMR). These emergingtechnologies will help to store,secure and recover huge volumes ofdata that older legacy systems wouldhave struggled with. Hybrid arrayand all-flash array are highly popularstorage techniques. At the enterpriselevel, EMC is working hard on R&D,while Intel and Micron havedeveloped 3D NAND technology toramp up the data processing speed

in solid state drives.The overall outlook for storage

appears slightly different in Africacompared to other parts of the world.For example, cloud storage clearlyoffers many advantages overtraditional digital data storage in theAfrican setting. Most notably, it isexceptionally flexible, because itallows data access from anywhereand can be expanded as much asrequired as storage needs grow. It isextremely simple and cost-efficient,since there is no hardware tomaintain and no staff to employ. Thatmay explain why start-ups, such asDigital Cabinet, have secured fundingfor their foray into cloud storage.

Cloud storageAfrica’s technical legacy also lendsitself to cloud storage as the de factochoice. The continent still containssome of the poorest countries in theworld, with power and telephonyinfrastructure often years or evendecades behind first-world countries.However, as Digital Cabinet’s DanielKritzas points out, there is an ironictwist, because African markets areoften in a position to ignore much ofthe developed world's historicaldependence on older technologies(such as fixed-lines and on-siteservers) and leapfrog directly tocellular infrastructure and cloud-based solutions.

“Africa is seeing a dramatic rise ininnovative entrepreneurial activity,and governments are looking tonurture and promote such activity asvital to enabling their own economicgrowth,” said Kritzas. He believescloud services offer businesses indeveloping countries a number ofadvantages, beyond cheap access toenterprise-grade infrastructure andresources. They offer consistency

from a technological point of view(network and power infrastructure)and protection from politicalinstability (upheavals, changinglegislation or civil conflict).

Another benefit of the cloudapproach, says Kritzas, is thepossibility of comprehensive datasecurity, backups, and protectionfrom theft or natural disaster.Scalability is a plus point, too, asvirtualisation allows for predictablegrowth models. Then there is thefact of support and maintenance,and that cloud technology allowsdeveloping countries to leveragefirst-world solutions in targetingnew markets: “In the documentmanagement and storage space…unparalleled efficiencies can berealised through cloud storage andonline collaboration.”

Kritzas believes that small andmedium sized businesses (SMEs)across the region are desperate foraffordable technology to help themsurvive and thrive in an increasinglycompetitive environment. “Themarket for simple digital services,particularly document managementand business process workflow, ishuge and growing at a phenomenalrate throughout Africa,” he said.“Software companies with the rightproducts and technology at the rightprice are extremely well positionedto take advantage of this growingneed in emerging markets.”

Legal headacheFrom a legal point of view, nationalor local online backup often makesmore sense than using internationalproviders – even if this turns out tobe the slightly more costly option.This is another factor powering theadoption of cloud services on a morelocal basis. For example, if a

business carries out online backup inSouth Africa with a South Africancompany, then the laws of thatcountry govern the contract. If doingbackup to a cloud backup companylocated outside of South Africa, thenthat service is governed by the lawsof the country in which they arebased.

If a business uses internationalcloud backup services, then its datacould be located on servers in acountry whose laws and methods aretotally out of sync with expectedstandards and norms. Local backupfrequently offers superior bandwidthin terms of cost, in terms of speed ofdata transfer for each backup, interms of speed and efficiency of datarestores, and simply the security ofknowing where any critical businessdata resides. By contrast, the abilityto speak to top management and geta speedy response can be extremelydifficult with an international service.

African businesses may appreciatethe presence of a fully staffed callcentre operating in their own timezone, and therefore able to providerapid-fire local support. There is alsothe possibility of closer in-personassistance from the service provider'sdealer network, including actualvisits to the physical businesspremises where necessary. InAustralia, the law states that abusiness must back up data toservers in Australia. Executives fromIronTree reckon South Africa will seevery similar legislation enacted inthe near future.

Even if local cloud storage ends upbeing a more expensive solution, it isimportant that companies make aninformed comparison between ananonymous service and one wherethe business owners are assisted atevery stage. �



https://www.liquidtelecom.com/


https://www.liquidtelecom.com/

National Aviation Services (NAS),an emerging markets aviationservices provider, has been

awarded the IATA Safety Audit forGround Operations (ISAGO)certification for its Abidjan operations. In Abidjan, it provides ground

handling at the Félix-Houphouët-Boigny International Airport serving25 airlines and an average of 5,000passengers per day.Hassan El Houry, chief executive of

NAS, said the Abidjan ISAGOcertification highlights the company’songoing commitment to safety andsecurity across its network. “As wecontinue our aggressive networkgrowth and expand our portfolio ofproducts and services, we remainfocused on high levels of servicequality, safety and security.” Its

Abidjan operations are supported bymore than 800 employees and 300pieces of ground support equipment.Ivory Côte d’Ivoire transport

minister Amadou Kone said that it isthe first time Felix Houphouet Boignyairport has been recognised by ISAGO.“This also grows the very short list ofWest African airports handled by anISAGO certified handling company. Iurge you to remain focused on highquality services. This is how we cantogether embrace the challenge ofmaking our airport the hub of West Africa.”Globally, NAS has a presence in

more than 30 airports, handles fiveout of the top 10 airlines andmanages 31 airport lounges in 12countries across the Middle East,India, and Africa. �

Amadou Kone, Minister of Transport, Côte d’Ivoire with CisseAbdoulaye, General Manager, NAS Côte d’Ivoire and Jean-LouisEkra, Chairman, NAS Côte d’Ivoire. (Source: NAS).


IATA certification for Abidjan airport ground handling

LOGISTICS

Essentra Mesan Access Solutions hasbeen servicing multiple industriessince 1979 globally. The companyprovides industrial locking systems,closing systems, hinge systems,sealing and accessories, such ashandles and cover stays. Areas ofexpertise include zinc die casting,injection moulding, machining,stamping, powder coating and

assemble. Along with many standardparts we also have designengineering and custom solutionteams. This is facilitated by35.500sqm modern manufacturingfacility with high technology.In particular, the company

supplies the transportation industryacross multiple sectors. Theseinclude: railway, truck trailer, bus,marine and highways.Essentra Mesan Access Solutions

supplies products dedicated forpower generators, IT racks, datacentres, outdoor cabinets, HVAC,industrial machining,transportation and many otherindustries. Company values include:• Products with superior quality

• A lean manufacturing approachto identify and eliminate waste

• Continuous development ofprocesses

• Providing a modern, safe andpeaceful working environment foremployees

• Leading the industry withinnovative concepts

• Designing and manufacturinghigh value-added products,delivering on time

• Ethical values and being sensitiveto environment.

The certifications achieved by thecompany include: ISO 9001-2015,OHSAS 18001, ISO 27001-2013, ISO14001-2015, ISO 50001-2001.

Left: Electronic lock system and other EssentraMesan Access products. Far right: Essentra Mesan Access handles.

ESSENTRA MESAN SUPPLIES ACCESS SOLUTIONS FOR TRANSPORTATION

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SEA FREIGHT | LOGISTICS

Leading shipping companies and consultants agree it’sbeen a tough time for the sector, globally, since theeconomic downturn. For container traffic and tonnageinto Africa, the outlook continues to look challengingfor 2017, despite expectations of some improvements.Tim Guest reports.

Container traffic volumes on Asia-to-Africa routes, particularly to WestAfrica, have had a hard time in recent years, resulting in steady,double-digit percentage declines each of the past three years.

According to analysts at leading shipping consultancy, Drewry, carriersactive on these routes are likely to experience continuing declines in 2017,too. That means players such as K-Line, MOL, China Cosco Shipping Corpand others active on these routes are all likely to continue to be affected bythis downturn. The actions of some of these major players recently, toconsolidate and take part in major collaborations and mergers, look to bepart of strategic efforts to consolidate, reduce unnecessary competitionand effectively protect against this ongoing global shipping malaise. Figures reported from Drewry show a 20 per cent drop in trade traffic

since 2014 on the Asia-to-West Africa route, with steady ongoing decreases insouthbound container shipments during 2015/16 amounting to a new low of1.2 million TEU shipped by the end of the year. The consultancy projects in2017 will see this trend continue, a view supported by January southboundcontainer traffic figures, which showed an 18 per cent decrease compared tothe same period last year. In fact, according to the Drewry consultants, half-full vessels on the southbound legs of their Asia-Africa voyages indicate nolet-up is likely in declining tonnage for several months. On the same route,after some unexpected ups at the end of 2016, spot rates per 40-ft containerfell to some US$1,600 at the start of March, but it is likely with improvingSouthern African economic conditions that carriers will be able to raise thiscost of transporting containers in the months ahead.

On the upsideHowever, all is not doom and gloom as the same consultancy reports thatSouthern Africa containerised imports from Asia are potentially on theroad to a minor recovery in 2017. The ‘unexpected up’, mentioned, was a

Choppy seas for shipping

OOCL’s use of the Port of Mombasa is crucial to Asian trade witheastern and Central Africa.


https://www.mrspedag.com/list.cfm/m,33/lang,en/mr.htm

peak rate of US$2,250 in January,according to Drewry’s ContainerFreight Rate Insight, Shanghai toDurban representative route.Although the rate has now comedown, these fluctuations and highsindicate a healthy and improvingdemand for containerised importsfrom Asia; at the same time, theyhave also been influenced byimproving capacity managementamong the container fleets. Andwhile 2016 saw the lowest volume ofsuch imports since 2012, the levelsof decline on this route per quarterslowed in the final months of lastyear and Drewry predict likelygrowth will, once again, be the orderof the day somewhere down the roadin 2017. Once again, positiveencouragement from a stronger randand improving South Africaneconomy may also influence andencourage higher levels of imports. One development over the past

year or more has been an increasedinclusion of wayport calls inSouthern Africa made by vesselsheading for West African finaldestinations. Maersk and CMA CGM’scombined Asia-West Africa routenow has vessels as large as 9,200TEU stopping in Cape Town, andDrewry analysts expect such a trendto continue as carriers turn theirservices into ‘multi-tradeoperations’. CMA CGM has a fleetconsisting of more than 445 vesselsand serves 400 of the world’s 521

commercial ports. Through its 170shipping lines, the companyoperates on every one of the world’sseas and is said to be the thirdlargest container shipping companyin the world.

Carriers to Africa mergeOne of the leading carriers active onthe Asia-Africa routes over the yearshas been Mitsui O.S.K. Lines, (MOL),which is reported to have theworld’s largest ocean shipping fleetoperating specialised bulk carriers,tankers and LNG, car carriers,containerships and more. Itannounced late last year that itwould be merging its containeroperations with the other twolargest Japanese shippingcompanies, K-Line – Kawasaki KisenKaisha Ltd and Nippon Yusen KK tofight the global slump in containeroperations. All three company shareprices surged following the news.For its part, K-Line, ranked as the

sixth largest container shippingcompany in the world, operatessome 54 routes between the Far Eastand Central Asia, South East Asia,and Africa, as well as other routes,running a fleet comprising 449vessels, including many of the verylatest containership build. Itscontainers number 344,000. The new Japanese joint venture is

slated to be formed by 1 July 2017and expects to start operations byApril 2018. According to a company

statement it will have 256 vesselsand become Asia’s biggest boxcarrier after China Cosco ShippingCorp, which also runs the Asia-Africaroutes. This merger is expected to bea positive move for Asia-Africa trade;it was only last January that MOLLiner announced that it wasenhancing its existing Asia-WestAfrica service (its WA1 Service) byadding new ports of call, effectivefrom last February. The new rotationadded new Malaysian and SriLankan calls to MOL’s existing WA1service and is now providing bettercoverage and direct connectionsbetween markets in Malaysia and SriLanka to West Africa. MOLvessel/WA1 port rotation in WestAfrica has now been upgraded asfollows: Lagos Apapa, Mon/Wed;Lagos Tin Can Island, Wed/Sun;Tema, Mon/Fri; Contonou, Sat/Sun;and Abidjan Tues/Tues.Other Asia-Africa players making

major changes to cope with thedeclines are world leader, Maersk,which is underway with a majorrestructuring programme; buyingout smaller rivals to consolidate theindustry, much like the Japanese, areFrance’s CMA CGM and Hapag-Lloyd.

Other players crucial toAfrican tradeThe world’s fourth largest containercompany is also active on the Asia-Africa routes. Evergreen MarineCorporation, a Chinese shipping line

headquartered in Taiwan with FarEast services that reach to Mauritius,South Africa and beyond. Its 201container ships call at 240 ports inover 80 countries worldwide. Chinese shipping and logistics

company, Orient overseas ContainerLine (OOCL) is another key player inAfrica. It has major operations in theEast Africa region in Kenya andTanzania coordinated out of itsOOCL (UAE) LLC team located inDubai, where it serves as theregional office for East Africa andcoordinates various functions for theregion. OOCL is also representedlocally in Kenya by Merlion Shipping(K) Ltd in Mombasa. The port is amajor trade centre and regionalcultural and economic hub; asKenya’s busiest and largest seaportit serves the hinterland by exportingimportant agricultural products andis a major foundation stone for thewhole Kenyan economy. In additionto serving Kenya, the port servescountries in inland Africa likeUganda, Tanzania, the DemocraticRepublic of the Congo, SouthernSudan, Rwanda, Sudan, Ethiopia,and Somalia. OOCL’s strategic use of Mombasa is

critical to Asia-Africa trade; the portis halfway between the Port ofDurban in South Africa and the majorMiddle East ports, acting as a gatewayto East and Central Africa. ForChinese trade into Africa, OOCL andMombasa are precious entities. �

Active on Asia-Africa routes, MOL is emerging withtwo other Japanese shipping companies.


LOGISTICS | SEA FREIGHT



POWER

The future of renewable energy in Africa was discussed at the first Africa Renewable Energy Leaders Summit(ARELS) in Nairobi in April.

The two-day-long summit broughttogether industry leaders andgovernment representatives from

Kenya, Ethiopia, Burundi, South Sudan,Tanzania, Rwanda and Uganda. Principal Secretary of the Kenyan ministry

of energy and petroleum, Joseph K Njoroge,told the conference that renewable energyformed a pillar of the country’s strategicvision for the future. “Our compass for thesocio-economic development of this countryis Vision 2030. One of the main catalysts tomake Kenya an industrialising nation isrenewable, sustainable, competitively pricedand affordable energy. Indeed, it isimpossible to achieve the goals of our Vision

2030 without energy defined the way I have.”It comes at a time when rapid population

growth and urbanisation is boosting energydemand across eastern Africa. According to Isaac Kiva, the director of

renewable energy at Kenya’s ministry ofenergy and petroleum, the country needs aninvestment of US$52bn to meet its 2015-2035generation and transmission master plan,with power demand expected to rise to4,732MW by 2030. “Having adequate power from renewable

sources will not only ensure security of supplyand cost effective tariffs; it will enhance thecompetitiveness of Kenya, and facilitate itssocio-economic transformation,” he stated. �

Renewable energy vital to Kenya’s Vision 2030 goals

Deo Onyango (GE Renewable Energy's onshore wind regional executivefor Sub-Saharan Africa), Phyllis Wakiaga (chief executive of theKenya Association of Manufacturers (KAM), Vahid Fotuhi (managingdirector, Project Origination, Access Power), Andrew Amadi(secretary, Association of Energy Professionals Eastern Africa).


https://www.essentraaccesssolutions.com/en/index.html

Solar energy production is growing across Africa with some of the most sophisticated and advanced solar farmprojects in the world, including Morocco, South Africa and Rwanda. Tim Guest reports.


Moroccan ambitionWith plans to use solar power andother renewables to generate 14 percent of its energy requirements by2020, Morocco has set itself afurther ambitious 2030 timeframeby which it aims to be producing 52per cent of its own energy fromalternative power systems. It hasambitions, after meeting itsdomestic needs, to export some ofits solar-energy-generated power toEurope sometime in the future.

Last year, on the path to meet itsgoals, the Moroccan Agency for SolarEnergy (Masen), implemented aflagship solar-energy project at thebase of the High Atlas Mountainssome 10km from the town ofOuarzazate, 60 per cent funded bythe European Union. With hundreds

of concave mirrors covering some1,400,000m2 of desert, the hugefacility makes use of the region’s330+ days of sunshine each year andis said to be one of the biggest solarplants in the world. Indeed, Africa ishome to several similar solarprojects, with even larger projectsnow operational in South Africa.

By the end of 2016, theOuarzazate project – also known asthe Noor Solar Power Station – hadexceeded its initial energy-production targets. The facility’spowered mirrors move with the sun,as it rises and sets and reflect itsrays, focusing them onto a networkof pipes that carry a synthetic oil. Asthis reaches temperatures up to350˚C the heated oil is used toproduce high-pressure steam that

drives turbines to generateelectricity. Superhot molten sodiumand potassium nitrate salt reservoirsstore excess energy enabling thefacility to go on generating powerfor several hours after sunset.

One of the next phases of theOuarzazate solar farm project willeventually use a tower, filled withmolten salts, that absorbs andstores the rays reflected at areceiver on the top of the tower by7,000 flat mirrors. Less real estate isneeded for such an installation andit is said to be more efficient ingenerating and storing power, alsonegating the use of oil in theprocess. South Africa’s futureRedstone facility, which will beoperated by SolarReserve, will alsouse such a system.

South African prowessKeeping Morocco company in thesolar power stakes, Rwanda openeda facility in 2014 and Ghana andUganda are planning their own solarfarms. It is South Africa, however,where the continent’s largest andmost advanced solar projects havemade the nation one of the top 10solar power producers in the world.In October 2014, leading solarpower player, SolarReserve, flickedthe switch on its 96-MWphotovoltaic (PV) Jasper solar powerproject at Postmasburg in theNorthern Cape, Africa’s largest solarinstallation. The plant’s more than325,000 PV modules deliver180,000MW-hours of renewableelectricity annually for South Africanresidents, enough to power 80,000

Harnessing the sun’s power

POWER | SOLAR FARMS

SolarReserve’s Redstone CSP project will deliver 100MW of powerand 1.2GW-hours of energy storage. (Source: SolarReserve)

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households, which is deliveredthrough a 20-year power purchaseagreement with Eskom.

Talking with African Review, CEOof SolarReserve, Kevin Smith saidthat ‘Africa’s excellent solar resourcecan be a strong part of the continent’senergy diversification plan’ to helpmeet growing energy needs, addingit will ‘reduce reliance on finitesources of power generation thatproduce carbon emissions and itwill provide a very cost-effectivesolution to energy supply’.

Smith said, “South Africa’s IPPProcurement Programme is a world-class programme that continues toprove to be a global standard forrenewable energy procurement.Through this well-structured andthorough programme, thecontinually declining cost ofrenewable energy is at parity withthe cost of new built traditionalgeneration. Renewable energy todaycan actively contribute to a country’sgeneration mix, replacing agingfleets as well as supporting a growingdemand for generation capacitystimulated through economicgrowth.” He added that in additionto helping South Africa (and Africa)meet its critical electricity needs withclean and affordable solar power, theprojects bring long-lasting economicbenefits. “All our projects ensurerobust local participation andtechnology transfer and arestructured to exceed the minimumrequirements for Black EconomicEmpowerment (BEE) equality on jobcreation, local content, ownership,management, procurement andenterprise development. A great dealof resource is applied to traininglocal workers who can then takethose skills and apply them to otherindustries or projects in the region.And all the projects set aside apercentage of total project revenuesfor enterprise development andsocio-economic development for thebenefit of local communities.”

Project growthSmith said SolarReserve initiated itsenergy development activities in SAin 2010 and now has 246MW ofsolar capacity already in operation,

with an additional 100MW awardedby the Department of Energy (afuture Redstone project), 650MW bidinto round 4.5 of South Africa’sRenewable Energy IPP ProcurementProgramme (REIPPPP) and apipeline of over 2,000MW. Many ofthese projects, such as Redstone,include the company’s innovativemolten salt energy storage, toprovide SA homes and businesseswith power when they need it most,even after sunset.

“Our three solar PV projects inoperation, the Lesedi, Letsatsi andJasper projects, had a combinedcapital cost of more than R8.15 bn,”Smith said. “The three projects areall delivering above expected levels,reliably providing about 200,000South African homes with clean,emissions-free electricity for thenext 20 years. Combined, the threeprojects are reducing carbon (CO2)emissions by over 460,000 tonnesper year.

“Our Redstone project is thelowest priced concentrating solarpower (CSP) project awarded in thecountry to date and will include 12hours of full-output energy storage.The Redstone project will deliver100MW of power as well as 1.2GW-hours of energy storage in order toreliably meet South Africa’s peakdemands for electricity, which occurwell into late evening.” Smith saidRedstone has secured more thanR2.4bn of equity financing andR5.6bn of debt. It is ready to go intoconstruction pending finalgovernment approvals.

As for the challenges for a privateentity like SolarReserve establishingits position in the energy ecosystemof a country such as South Africa,Smith said, “We, as investors, areguided by policy and regulatorycertainty when consideringinvestment opportunities,particularly where our investmentshave a life-cycle of 20 years or more.Arguably, the most importantarrangement under the REIPPPP isthe assurance of a 20-year PowerPurchase Agreement (PPA) with theIPPs selected as preferred bidders.The PPA provides firm revenueprojections, which, in turn,

comprise the single most importantcriterion to render a powergeneration project bankable andappealing to investors. In addition,long-term regulatory and politicalstability are an important part ofour investment philosophy, whetherour investment is in Africa, the USA,or elsewhere around the world.”

What next?According to Smith, SolarReserve isnot only developing utility-scalesolar PV power projects in Africa butis recognising the need for long-term, large-scale renewable energysolutions with energy storage thatwill help mitigate intermittencyproblems, deliver power into peakdemand periods and supporttransmission systems reliably. Thecompany’s diverse portfolio of solarprojects includes advanced solarthermal technology, such as CSPwith integrated energy storage, PVtechnology, as well as hybridsystems – combined CSP and PVtechnology. “Solar PV plants are costeffective and can be built quickly,providing Africa with additional,critically-needed power that isemissions-free and renewable. Incombination with CSP plants withenergy storage, solar has thepotential to provide reliable, cost-competitive, 24/7 base-load powerto meet Africa’s growing energyneeds and become a strongcomponent of the energy mix. Asrenewable energy penetrationgrows, the need for utility-scalerenewable generation with

storage technology will becomeincreasingly important.”

As for the influence of the ever-changing political landscape, Smithsaid that, “The president in his stateof the nation address specificallystated that the IPP PPA's would besigned and that the programmewould continue to be supported.”He added that the new financeminister has publicly stated thatthere will be no change to policydecisions. “The internationalinvestment community is, naturally,following the progress of the IPPprogramme, closely.” �

SolarReserve’s Jasper solar power project at Postmasburg in the Northern Cape,Africa’s largest solar installation. (Source: SolarReserve)


SOLAR FARMS | POWER

• In total, SolarReserve’soperating and awardedprojects in South Africa willinvest over R1.3bn in ED &SED [Enterprise Development& Socio-EconomicDevelopment], with futureround 4.5 projects investingover R1.9bn - benefittingschools and hospitals; helpingdevelop small businesses;supporting early childhooddevelopment; and bringingsolar power to homes that forthe first time will haveelectricity.

• Our projects in operationgenerated over three millionman-hours duringconstruction and the sixprojects we bid into round 4.5would create 18,000 direct,indirect and induced jobs.

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POWER | MINI-GRIDS

There is a trend towardsdecentralised power networksin Africa. With around 50 per

cent of people on the continent nothaving access to the electricity grid,there is a great challenge to electrifythe continent.

Off grid solutions are not new onthe continent. Many factories andhomes rely primarily on dieselbased power generation.Disconnecting from the grid anddeploying a captive power plant canhelp prevent production problemsassociated with an unreliablenational power distributionnetwork. Gas is also a fuel of choicefor captive power, with ClarkeEnergy having an installed base of inexcess of 350MW of facilities inNigeria alone.

Mini-grids, working on a fractionof the scale of a normal utility, arepart of this solution to bringingaccess to power to millions ofAfricans. These grids will struggle torun on wind and solar energy, asthey are intermittent and do notnecessarily generate power when itis needed. A method of balancingout demand and supply across thenetwork is required to ensure thestability of the system.

Diesel generators such as thoseprovided by SDMO Kohler are themost established way of providingstability. Diesel is a flexible source offuel, which is well established,however, gas is a viable alternativein a growing amount of Africa. Gashas the benefits of being cheaperand emits less carbon emissions

than its liquid alternative. Where there is no access to

pipeline natural gas usingcompressed natural gas (CNG) acrossa ‘virtual gas pipeline’ is now anestablished technology at a numberof sites on the continent.Companies, such as Nestle, andeducational institutions, such as theUniversity of Port Harcourt haveproved the concept in a sub-SaharanAfrican context. Gas is flexible andcan be used either for base-loadgeneration, or alternatively can beused to generate power whenneeded, such as widelydemonstrated in the greenhouseindustry for peaking plants and inthe UK’s recent capacity marketauctions.

Taking this to the next step and

creating a fully renewable solution,one can couple solar and windtechnology with anaerobic digestion.

Biogas has the potential to betransported in a compressed form aswell.

Battery technology is quicklyreducing in cost and efficiency too,therefore coupling all thesetechnologies together could formthe backbone of stable mini-gridsacross the continent. Lessinvestment would be needed inelectricity transmission networks,although as African countriesdevelop, these can be linked withthe main grid to provide addedstability. �

Alex Marshall, group marketing andcompliance director, Clarke Energy

Mini-grids have huge potential

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http://www.vortexhydra.com/


Tanzania has commencedconstruction on a flagship300km standard gauge

railway project that will initiallylink the Port of Dar es Salaam toMorogoro, in the eastern part ofthe country. The line is expectedto be extended to Port Mwanza onLake Victoria to link Uganda andexpand intra regional trade. The standard gauge railway, as

well as new roads and expandingthe ports, are among vitalconstruction projects supported bygovernment funding set to boostinfrastructure and drive economicgrowth. In total, Tanzania wants tobuild a 2,561km standard gaugerailway network connecting Dar esSalaam with eastern and southernAfrica's hinterland.The initial 300km stretch is

expected to take around 30months to complete. A contract forthe line, worth US$1.2bn, wasawarded to Yapi Merkezi of Turkeyand Mota-Engil of Portugal inFebruary this year. The railway willbe able to transport 10,000 tonnesof cargo at once, while itspassenger trains will travel ataround 160 km/h.

Launching the construction phaseon 12 April, Tanzania’s PresidentJohn Magufuli said: “This is anopportunity to grow and excel in ourindustrial revolution drive which isthe current national focus as we setour eyes to become a middleincome country.”And eastern Africa's second-

biggest economy is spending big in abid to meet its goals on the basis that poor infrastructureundermines economic growth. Magafuli said that future railway

passengers will be able to travelbetween Dar es Salaam andMorogoro in around 1 hour and 25minutes, while the project itselfcould generate as many as 600,000jobs, providing a huge boost to thenational and regional economy.The president also noted that the

new rail line would improveconditions on Tanzania’s crowdedroads. "Most of our roads are ruinedby heavy truck loads, thus railwaytransport is highly recommended topreserve them."Longer term, there are hopes that

the new railway will be rolled out tolink Dar es Salaam withneighbouring landlocked countries,

as part of a major regionalinfrastructure upgrade.The African Development Bank

has been courting potentialinvestment in a bid to attract asmuch as US$7.6bn overall to bankrollup to 2,200 km of potential new line.Potentially, the Tanzania line will

run from Dar es Salaam port toRwanda’s capital, Kigali. Two otherlines will branch off to Musongati inBurundi and to Mwanza port on theshores of Lake Victoria to serviceUgandan shippers. The line to Kigaliis also expected to ultimately connect

to the eastern Democratic Republicof Congo.Last year, Moody’s Investors

Service said that the proposedrailway would reinforce Tanzania’sposition as a logistics hub for easternAfrica.It faces competition though with

Kenya also keen to build a similarrailway network that seeks to connectlandlocked countries to Mombasa, itsmain port.Certainly for construction

companies in the area it means noshortage of new work. �

The 300km railway willlink the Port of Dar esSalaam to Morogoro.(Source: Shutterstock)

Construction starts on Tanzania railway

CONSTRUCTION

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Low commodity prices and a weak global economy are putting the brakes on a number ofconstruction projects across Africa. However, there is still a wave of optimism being felt frompublic and private investors despite the risks involved.

In April, the Africa Finance Corporation (AFC), boosted confidence after issuing a US$500mnseven-year Eurobond towards investment in African infrastructure. The Euroband is represented by231 investors across the Middle East, Asia, Europe, United States and the UK."AFC has been committed for the last ten years to investing in projects that drive sustainable growth

and development in Africa,” said chief executive officer Andrew Alli. “In that time, we have invested

Construction in Africa continues togather pace despite economic gloom

CONSTRUCTION | MARKET ANALYSIS

North Africa

West Africa

Central Africa

Southern Africa

East Africa

A |

2013 2014 2015 2016 2016% of continental

projects

Number of projects

22 8 29 42 14.7%

Value (US$bn) 6.7 9.1 25.8 76.1 23.5%

2013 2014 2015 2016 2016% of continental

projects

Number of projects

93 51 61 43 15%

Value (US$bn) 67.7 60.7 57.5 27.4 8.5%

North Africa

East Africa

2013 2014 2015 2016 2016% of continental

projects

Number of projects

17 13 23 24 8.4%

Value (US$bn) 15.3 33.2 35.8 7.0 2.2%

2013 2014 2015 2016 2016% of continental

projects

Number of projects

66 66 79 92 32.2%

Value (US$bn) 49.9 74.8 116.2 119.8 37.0%

West Africa

Central Africa

2013 2014 2015 2016 2016% of continental

projects

Number of projects

124 119 109 85 29.7%

Value (US$bn)

83.2 144.9 140.0 93.4 28.9%

Southern Africa

S

Source: Deloitte analysis, 2016

Investment opportunities exist in African infrastructure but rate ofconstruction projects continues to decline five per cent year-on-year.Samantha Payne reports.


http://www.pmsa.com/

over US$4bn in 28 African countries. Key to delivering this are ourfundraising activities around the world, promoting the very real investmentopportunities that exist in African infrastructure.” But the reality is Africa holds approximately US$35bn in Eurobond

debt, which represents a ticking time-bomb for those Sub-Saharan Africancountries unable to meet payments amid economic constraints and willlikely have an impact on future infrastructure spend. In Deloitte's Africa Construction Trends Report, it indicated there were

286 construction projects to have broken ground by 1 June 2016compared to 301 in the previous year. It stated the number of projectshad fallen by five per cent year-on-year across the continent. The onlycountry to buck the trend was North Africa with the number of its projectshaving increased by 44.8 per cent, due in part to a more settled politicalsituation in countries such as Egypt and Algeria.Researchers found West Africa had the most number of projects with

92, and also the most in terms of value at US$120bn. The number ofprojects in East and Southern Africa decreased to 43 and 85 respectively asdid the value of their projects fall to US$27.4bn and US$93.4bnrespectively. In Angola, however, it accounts for the two largest projects inSouthern Africa, namely the US$16bn Kaombo, Block 32 project in the oiland gas sector and the US$8bn Lobito Refinery in Benguela.The report also highlighted the value of projects in Central Africa

decreased by 80 per cent due to the suspension of the two largest projectsin the region, the MbalamNadeba Iron Ore project in Cameroon and theZanaga Iron Ore Project in the Republic of Congo. However, the biggestproject underway in Central Africa is the Katanga Copper Mine in theDemocratic Republic of Congo.

Similarly to the trends last year, most projects fell into the transportsector, (33.6 per cent), followed by Real Estate (22.4 per cent), Energy andPower (21 per cent) and Shipping and Ports (8.4 per cent). Due to the fallin commodity prices, it was not a surprise that mining projects more thanhalved to 2.8 per cent, affecting government revenues for infrastructureprojects. Africa's largest mine and associated rail and port constructionprojects, the US$20bn Simandou Iron Ore project in Guinea, was halted inJuly 2016 due to the lack of demand in the global iron ore market.Worryingly, the report also noted despite Africa's rapid urbanisationgrowth, very little investment was being paid into the water sector (1.3 percent) and even less into healthcare (0.3 per cent), education (0.1 per cent)and social development (0.1 per cent).

Who owns?

G Government 73.1%

PD Private Domestic 11.5%

UK UK 2.1%

ZA South Africa 1.7%

US US 1.7%

CN China 1.4%

FR France 1.4%

NG Nigeria 1.0%

UAE UAE 1,0%

O Other 2 4.9%

Source: Deloitte Analysis, 2016


MARKET ANALYSIS | CONSTRUCTION


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The top five sources of fundingfor projects stemmed mostly fromgovernments (28.3 per cent), privatedomestic firms, (14 per cent),international development financialinstitutions, ( DFIs) (13.6 per cent),China, (12.6 per cent) and AfricanDFIs, (9.8 per cent). Interestingly, East Africa's average

Gross Fixed Capital Formation(GFCF), the percentage of GDP forconstruction of infrastructure, hasbeen over 20 per cent according toDeloitte's report. While the largesttwo economies, South Africa andNigeria have underspent oninfrastructure, spending on average19.9 per cent and 11.9 per centrespectively, the report added.

East Africa developmentsThere are 43 mega projectsunderway in East Africa, with a valuetotal of US$27.4bn. Kenya’s KonzaSmart City, worth US$14.9bn is thebiggest project in the region, whichis expected to be completed by2030. The city will include a CBD, auniversity campus, residentialcommunity and parks covering morethan 5,000 acres of land.The Lamu Port-South Sudan-Ethiopia Transport and DevelopmentCorridor program is the region’slargest and most ambitiousinfrastructure project bringingtogether Kenya, Ethiopia and SouthSudan. Three out of 32 berths areexpected to open at Lamu Port by2020, estimated value of US$689mn.The government plans to build the

additional 29 berths, valued at US$5bn.The 1900km road between Lamu

Port in Kenya and Douala Port inCameroon will be completed laterthis year and will connect apopulation of 160 million peopleacross the three countries. TheUS$1.39bn project is financed byChina Roads and Bridges Company,China Communications ConstructionCompany, SEW and HAWK.

Other big developments includethe US$3.8bn Mombasa-NairobiRailway project, due for completionin December, and the US$900mmLake Turkana wind farm, extendingover 40,000 acres, with a 310MWpower generation capacity.In March, the African

Development Bank Group (AfDB)approved US$253mn of loans toKenya (US$147.3mn) and Uganda(US$105.7mn) for the upgrading ofthe 118km road connecting the twocountries as well as the constructionof the 32 km Eldoret town bypass, inKenya. Once completed in 2021, theproject will improve the livingstandards of the 1.4 million people. According to the International

QuaIity and Productivity Center’sreport: the Growth of East AfricanRoad Networks, the Ugandangovernment is seeking funds fromSouth Sudan for the US$310mn roadlink between Rwekunye, Apac, Liraand Acholibur. The reporthighlighted the $US151mn Busegato Mpigi expressway – the largesthighway ever constructed in Uganda

– will be built in 2018 by the AfDBand the China CommunicationsCompany. It added the EthiopianRoads Authority is a stakeholderbehind the country’s most expensiveroad project in its history, linking a7.4km stretch of road betweenMelka Jebdu to Dire Dawa. TheUS$20.5mn project is due forcompletion in July next year.Tourism is another important

sector for Africa’s economy. Morethan 330 hotels are in the pipelinefor Africa, with Egypt expectingmore than 50 new hotels in thefuture, according to research fromTopHotelProjects.

Hyatt Regency hotel at HouariBoumediene Airport in Algiers isexpected to open late 2018. “TheHyatt Regency Algiers Airport will bethe first Hyatt-branded hotel inAlgeria and demonstrates thecompany’s commitment to growingits brand in Algeria and throughoutAfrica,” said Peter Norman, Hyatt’ssenior vice president, acquisitionsand development – Europe, Africa,and Middle East. �

Main boulevards in Konza Smart City.(Source: Konza Techno City Kenya)

CONSTRUCTION | MARKET ANALYSIS


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Shanghai LIYU is one of the earliest companiesto become involved in the field of steel structuralengineering support and technological consultingin China. It provides assistance for the customers

outside China to target the steel structuralfabricators that are mastering internationalstandards in China. Steel verification inspectionand technological consulting services aim toconnect Chinese steel structural fabricators withthe world, helping them to seek the commercialcooperation opportunities in different countriesand continents. The company also helpscustomers to monitor and control the overall

quality and risk status of engineering projects,and thus promote the engineering managementstandard through engineering quality-improvement and risk-reduction.

With the establishment of the websiteLIYUCSF.com, Shanghai LIYU operates in otherthree offline development areas in steelconstruction: LIYU Steel Engineering Trade, LIYUSteel Verification Inspection and LIYU SteelTechnology Consulting. Relying on the exquisiteprofessional skills, scientific enterprisesmanagement, rich industrial experience anddedicated team members, Shanghai LIYU has beenin the pursuit of providing an excellent, quick,quality-guaranteed and high-efficient services forcustomers.

In the coming years, Shanghai LIYU plans to worktowards sustainable progress for global steelstructural industry, and positively respond to thefast-changing challenges occurred in the globalsteel structural engineering service. �

Shanghai LIYU is affiliated with many of the largeststeel fabricators in China. (Source: Shanghai LIYU)


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CONSTRUCTION | AIRPORT

Zimbabwe’s Victoria FallsInternational Airport hascontinued attracting Africa’s

major airlines following itsUS$150mn upgrade.The airport is located 21km south

of Victoria Falls Town, a strategicregional tourism hub, whichPresident Robert Mugabe’sgovernment has turned into aspecial tourism economic zone. Itcan be reached within two hours byplane from Angola, Botswana,Democratic Republic of Congo,South Africa, Namibia,Mozambique, Malawi and Zambia.Ethiopian Airlines, Africa’s largest

airline, started direct flights toVictoria Falls International Airportfrom Addis Abba’s BoleInternational Airport using thelatest B737-800 New Generationaircraft on 26 March.Zimbabwe’s tourism and

hospitality minister Walter Mzembisaid that the inaugural flight toVictoria Falls Town by Ethiopian

Airlines showed the confidence ithad in Zimbabwe’s aviationindustry. He said Africa’s biggestairline had continued servicing theHarare route at a time when otherbigger airlines withdrew their flightsto Zimbabwe, and he called onAfrican airlines to code-share theirticketing systems so Africa canimprove its stake in the globalaviation industry.

Ethiopian AirlinesMeanwhile, Esayas WoldemariamHailu, Ethiopian Airlines’ managingdirector for international services,was one of the passengers onEthiopian Airlines’ new aircraft to

Victoria Falls International Airport.He said most of the tourists wereattracted to the Victoria Falls,shared by Zimbabwe and Zambiaon the Zambezi River, anddescribed the natural phenomenonas “the magnet of African tourism”.With close to 100 destinations

worldwide, Ethiopian Airlines is at acompetitive advantage compared toother airlines in regard to accessingVictoria Falls Town.A new international terminal

building with a capacity to handle1.5 million passengers per year areamong the improvements to theairport. It includes work on its oldterminal with a capacity of 500,000

passengers per year, which has beenturned into a domestic terminal.

Extra improvementsLarge planes in the Code E categorysuch as B747 and A340 can nowland on the upgraded runway,which is 4,000m long and 60m wide.Air traffic control and

meteorological services are based atthe airport’s new control tower. Theairport also boasts a new firestation equipped with E-One fire(foam) tenders. Some of the fire(foam) tenders cooled down theEthiopian Airlines’ B737-800 planewith water jets immediately after itlanded on its inaugural flight.The airport has CCTV coverage,

instrument landing and airfieldground lighting systems, automatedbaggage handling as well refuellingfacilities for Avgas and Jet1 fuel.Non-aeronautical facilities

incorporated into the landingfacility are banks, restaurants, duty

New terminal building at Zimbabwe’s Victoria FallsInternational Airport. (Photo source: Humphrey Nkonde)

US$150mn upgrade puts Victoria Falls International Airport on mapZimbabwe’s tourism and hospitality minister Walter Mzembi said that Ethiopian Airlines launching direct flights toVictoria Falls Town showed the confidence it had in the country’s aviation industry. Humphrey Nkonde reports.

CAAZ is working on connecting VictoriaFalls to regional tourist destinations suchas Walvis Bay in Namibia ”


AIRPORT | CONSTRUCTION


free shops as well as offices forimmigration and customs.Ethiopian Airlines will be

followed by Kenya Airways thismonth and South Africa’s Airlink inJuly regarding flights to VictoriaFalls International Airport,according to the Civil AviationAuthority of Zimbabwe (CAAZ).“CAAZ is working on connecting

Victoria Falls to regional touristdestinations such as Walvis Bay inNamibia and Mombasa in Kenya,”said CAAZ in a statement.Ethiopian Airlines will fly non-

stop from Addis Abba at 08.35 hoursand arrive in Victoria Falls Town at12.15 hours on Tuesdays,Thursdays, Saturdays and Sundays.Return journeys to Addis Abba onthe same days would includestopovers in Gaborone, Botswana’scapital.Other international airlines

servicing Victoria Falls International

Airport are Fastjet Zimbabwe, AirZimbabwe, South Africa Airways,South Africa’s Airlink, Air Namibiaand British Airways operated bySouth Africa’s Comair. Amongdomestic airlines, the airport is

serviced by Rainbow Airlines as wellas various charter operations.The US$150mn loan to revamp

Victoria Falls International Airportcame from China’s Export-ImportBank in 2013. Victoria Falls Town

and neighbouring Livingstone,across the Zambezi River andnamed after the Scottish explorer,were co-venues of the 20th UnitedNations World Tourism OrganisationGeneral Assembly in 2013. �

Ethiopian Airlines managing director for international servicesEsayas Woldemariam Hailu and Zimbabwe’s tourism and hospitality

minister Walter Mzembi. (Photo source: Humphrey Nkonde)

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Lesotho’s first diamonds were discovered back in 1957, but the small mountainkingdom is still full of surprises. Martin Clark reports.


Lesotho’s diamond miningambitions are on the up onceagain. At the Liqhobong mine,

operator Firestone Diamondsannounced its largest gemstone findyet, sparking optimism that therecould be much more to follow.The 110-carat gem-quality light

yellow diamond was recovered duringthe ramp-up phase at the mine."I am delighted to announce that

we have recovered Firestone's largestdiamond to date,” said Firestone’schief executive Stuart Brown,announcing the discovery on 5 April.“The 110-carat gem-quality light

yellow diamond recovered during

Liqhobong's ramp-up phase is a veryexciting and encouragingaccomplishment. It confirms ourlong-held belief that Liqhobong haslarge stone potential and I hope thisis the first of many to come."The London AIM-listed company

has diamond mining operations inLesotho and Botswana.It is by no means the biggest find

made in the mountain kingdom ofLesotho – far from it – but it fuelshopes in the Liqhobongdevelopment, now taking shape. Lesotho’s gemstone wealth is

already well-known among themining industry.

A decade ago, the Lesotho Promise,a 603-carat diamond stone ofexceptional colour was unearthed in2006 at the Letseng diamond mine.It is believed to be the largest

reported find this century, and oneof the 15 largest diamonds ever tobe found. The Letseng mine is owned by

another UK-based company, GemDiamonds Limited, in partnershipwith the Lesotho government.Not to be outdone by Firestone, it

announced a separate find on April7 – just two days later – with therecovery of a 114-carat, D colourType II diamond of exceptionalquality from the mine.Indeed, Letseng has become well-

known for the production of large, topcolour, white diamonds, making it thehighest dollar-per-carat kimberlitediamond mine in the world. Since Gem Diamonds’ acquisition

of the mine in 2006, it has producedfour of the 20 largest gem-qualitywhite diamonds ever recorded.This includes the sale of a 357-

carat stone for US$19.3mn just two years ago. Nonetheless, the new find is a

much-needed shot in the arm afterthe company noted a decline in 2016

in the recovery of diamonds largerthan 100 carats, which “had adisappointing impact upon revenueand cash flow”, in its full year results. Whether Firestone’s belief that its

diamond recovery confirms thesignificant larger stones potentialthat exists at the Liqhobong siteremains to be seen. What is certain is that these

experienced operators are determinedto find out more about Lesotho andits underground treasures.The Liqhobong mine, owned 75 per

cent by Firestone and 25 per cent bythe government, is now starting toyield strong returns already for thetwo shareholders.Earlier this year, in February,

Firestone announced the first sale of diamonds recovered fromthe site.All of the 75,936 carats offered for

sale were sold, realising an averageprice of US$107 per carat, resultingin total proceeds of US$8.14mn.The strong sales competition

amply highlights appetite forLesotho’s diamond output.The best stone from the February

auction – a 37 carat Type 2ainternally flawless white stone –was sold for well over US$1mn.

Big diamond discoveries ignite Lesotho hopes

The 110 carat gem-light yellow diamond was discovered during the ramp-up phase atthe mine. (Source: Firestone Diamonds)

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The Zest WEG Group, a subsidiary of leading Brazilian motor and controls manufacturer WEG, started out as a South African company and maintains its strong commitment to contributing to the development of the African region.

The Zest WEG Group has been servicing the mining sector for more than 35 years and by leveraging best practice engineering and manufacturing capabilities, the group is able to offer a range of standard off-the-shelf products as well as end-to-end energy solutions.

An in-depth understanding of the harsh conditions found within the mining sector and years of experience on the African continent, have ensured that the Zest WEG Group service offering is fit-for-purpose.

From single product installations to individually customised solutions, which are application specific, the latest technology is used to ensure optimum performance and reliability without compromising on energy efficiency.

WEG products are engineered to facilitate a safe and reliable mine and plant with operational stability and the highest possible production levels as an objective. Reduced maintenance and ease of serviceability assist in lowering the total cost of ownership for the mine.

Supporting customers is key and the Zest WEG Group operates a strategically situated network of branches and distributors across the continent. This ensures the highest levels of technical support as well as easy access to product and parts.

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“We look forward to betterresults as we gradually increase ourmining to all areas of the pit andincrease our run of mineproduction over time,” addedBrown.It means development works

continue with renewed confidence,both at Liqhobong, and elsewhere.At the Letseng mine, Gem

Diamonds continues to focus on

improving its performance, with anemphasis on reducing diamonddamage through the use of newstate-of-the-art technology.Its chief executive Clifford

Elphick said he remains “confidentthat Letseng will continue toproduce exceptional diamonds”going forward. Firestone Diamonds only reached

full commercial production at

Liqhbong in October 2016, after aUS$185mn development project,although the site was discoveredback in the 1950s.The new mine therefore carries

high hopes for the kingdom’s futurediamond hopes.Elsewhere, Australia’s Lucapa

Diamond Company is also lookingto redevelop the Mothae mine in aphased project.

It says the economics ofdeveloping Mothae improvedfollowing the devaluation ofLesotho’s currency, the Maloti -which is pegged to the SouthAfrican Rand - against the US dollarsince 2013.Certainly, with two big diamond

finds in a single week during April,Lesotho’s diamond mining industryis buzzing once again. �

The Liqhobong mine is owned 75 per cent by Firestone and 25 per centby the Lesotho government. (Source: Firestone Diamonds)


REPORT | MINING


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FG Wilson and Master Power Technologies bring value to customers with one high-quality integrated system.


Just sit for a moment and thinkback 20 years, to the way youworked then, how you

communicated, how easy, ordifficult it was to find information.And if you’re lucky enough to be tooyoung to remember that far back,imagine no instant communication,using pen and paper, faxes, letters,floppy disks, unconnectedcomputers.

In 1999, Menno Parsons wasworking in the UPS division of anelectronics company, watching thebirth of the internet. He couldclearly see the growing need forstable, high quality electric powerfor businesses which were becomingdependent on IT and fastcommunications.

Putting his thoughts into action,that year Parsons decided to strikeout and form his own business,Master Guard. At first, focus was onstatic UPS (Uninterruptable PowerSupply) products, usually forcustomers in telecommunications,banking and industry.

Soon, however, the product rangebegan to grow. Parsons recalls, “Backthen, the elements of a power systemoften came from many differentsuppliers and this made it difficult

for customers to make the rightdecisions. Also, because the differentcomponents of power systems wereall integrated, if something wentwrong, customers often needed tocall out suppliers of all thecomponents to figure out oneproblem. Generator sets and UPSsystems all work hand in hand, sowe started offering them together asone integrated and fully supportedsystem.”

From there, it was a short steptowards offering changeover controlpanels together with distributionboards which switch from the utilitysupply to the generators whenpower goes down and in reverse,when utility power is restored.

Five years later in 2004, Mennosaw the boom in data centres, butwhat was fast becoming clear wasthe traditional planning model for adata centre, now sometimes calledthe snowflake model, had no chanceof keeping pace with rapid growthin internet traffic. His solution –now commonplace, but thenrevolutionary – was a modular datacentre, where servers and coolingsystems are held in containers.When more capacity is needed, it isas simple as bringing in more

modular containers.Now Master Guard had a

complete turnkey data centrepackage: energy and hardware withrapid deployment.

But there was something else.Parsons says, “When you’remanaging a data centre, or anycritical environment, you want nearzero risk of downtime, which meansrapid service for hardware andpower systems. That means closemonitoring and predictivemaintenance by people who arecomplete specialists in all aspects ofthe operation. Issues need to beresolved well before they becomeproblems.”

So, in 2007 Parsons opened theLife.NET remote monitoring centre,which gave Master Guard the abilityto monitor critical equipment andthe entire data centre environment.This meant high efficiency wasmaintained for customers at lowercosts than hiring their own internalspecialists. And it meant thattechnicians were often on-sitebefore anyone at the data centrewas even aware there was apotential problem. The data centreoperators could now focus on theirbusiness without needing totroubleshoot on operational issues.

Reflecting the major changes in thebusiness, in 2010 Master Guard wasreborn as Master Power Technologies.

By 2014, it was time to find astrong brand of generator sets witha reputation for reliability and atthe very same time FG Wilson, whohave been making generators formore than 50 years, was looking for

a strong partner to add value totheir brand. To sell and support theFG Wilson range of generator sets,Master Power Technologiesestablished a new Blue & WhiteDivision covering South Africa,Namibia, Botswana, Zambia andMozambique. Parsons says, “FGWilson generator sets are a perfectmatch for customers who havecritical power needs. The productsare reliable, tested and supportedby a world-class parts and serviceinfrastructure. And it’s a brandwhich has a long track record.”

That track record is more than600,000 generator sets sold since1990 alone. It is a relationshipwhich works well for both: FGWilson are masters at simplifyingcomplexity and for any project,Master Power Technologies cancount on a team of 300 engineeringspecialists at FG Wilson’s main UKfacility to support with generator setdesign and project management.Together with Master PowerTechnologies’s world-class remotemonitoring and support capability,it is a strong package.

But Parsons has not stopped forbreath. He says, “We’ve now over200 employees and coverage rightacross sub-Saharan Africa. We’relooking at all the bigger telecoms,banks, mines, commercialinfrastructure and manufacturingcompanies to market FG Wilsongenerator sets, solutions andservices. The value we can bring isone high-quality integrated systemsupported by one experiencedspecialist vendor.” �

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MINING | SOLUTIONS


DRA Global has commissionedEnergas Technologies to design ahigh fuel oil (HFO) storage facility forthe Elandsfontein phosphate miningproject in the Western Cape.

Energas Technologies engineersoversaw the design, manufacturingand testing of the facility, whichincluded two 80 cubic metre tanks(manufactured by Petrotank SA)and an off-loading pump skid aswell as a pump and heating skid,manufactured by ERD Fabricatorsin Sasolburg.

Marianne Lourens, EnergasTechnologies project engineer said,“Energas commissioned work inthe Elandsfontein phosphateproject was delivered by thecontractual delivery date andwithin budget. The value ofEnergas’ contribution to the project

is approximately R10 mn. Thesuccess of the project will highlightour reputation of providingexcellent service.”

Elandsfontein is home to thebiggest-known sedimentary

phosphate deposit in South Africaand ranks second in the country,with the igneous Phalaborwadeposit occupying top place.South Africa imports 60 per centof its fertiliser requirements,

which makes access to phosphatevitally important to the future offood security in the country.

Kropz, miner of fertiliser feedminerals (mainly phosphates), isthe majority shareholder in theElandsfontein phosphate projecton the West Coast and is investingR1.35bn developing the project.Upon completion the affectedarea will be returned to afunctional ecological state as part of the Elandsfontein Nature Reserve.

Mining started at the site inMarch and 50 per cent of theworkforce is employed locally.Energas Technologies’s was at thehelm of delivering a similarproject involving a heat skid andheat exchanger for a HFO depot inPretoria West (Sasol Oil).

High fuel oil storage facility for Elandsfontein phosphate project. (Photo source: Energas Technologies)

ENERGAS TECHNOLOGIES SUPPLIES HIGH FUEL STORAGE FACILITY FORDDWESTERN CAPE PHOSPHATE MINING PROJECT

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