african review march 2012

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Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 March 2012 Construction: Asanda Makanda, MD of Manoa P56 Gensets: Choosing and using standby power P37 Namibia’s profitable, efficient power management On the road to reforming power distribution P44 P22 Automotive: Styling the executive saloon P16 www.africanreview.com Nigeria’s Honourable Minister of Power, Professor Bart Nnaji

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African Review is Africa's premier English language business magazine. It contains more business-related editorial, more advertising pages and has a higher circulation than any other publication of its kind. Each issue's highly respected editorial contains special sections on a wide variety of topics including information technology, oil and gas and construction. Editorial covers all aspects relevant to Africa's key decision makers.

TRANSCRIPT

Page 1: African Review March 2012

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

March 2012

Construction:Asanda Makanda,MD of Manoa P56

Gensets:Choosing and usingstandby power P37

Namibia’s profitable, efficient

power management

On the road toreforming powerdistribution

P44

P22

Automotive:Styling the executivesaloon P16

www.africanreview.com

African Review

of Business and TechnologyM

arch 2012 Volume 47 N

umber 11

ww

w.africanreview

.com

Nigeria’s Honourable Minister of Power,Professor Bart Nnaji

ATR March 2012 Cover_Layout 1 21/02/2012 14:59 Page 1

Page 2: African Review March 2012

S01 ATR March 2012 Agenda North_Layout 1 21/02/2012 15:05 Page 2

Page 3: African Review March 2012

Managing Editor: Andrew [email protected]

Editorial and Design team: Bob Adams, David Clancy, Prabhu Dev, Immanuel Devadoss,Ranganath GS, Prashant AP, Genaro Santos,Zsa Tebbit, Ewan Thomson, Nicky Valsamakis andJulian Walker

Publisher: Nick Fordham

Advertising Sales Director: Pallavi Pandey

Advertising Sales Manager: Camilla CapeceTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]

Special Projects Manager: Jane WellmanEmail: [email protected]

China: Wang YingTel: +86 10 8472 1899 Fax: +86 10 8472 1900Email: [email protected]

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791Email: [email protected]

Nigeria: Bola OlowoTel: +234 80 34349299Email: [email protected]

Qatar: Saida HamadTel: +974 55745780Email: [email protected]

Russia: Sergei SalovTel: +7495 540 7564 Fax: +7495 540 7565Email: [email protected]

South Africa: Annabel MarxTel: +27 218519017 Fax: +27 46 624 5931Email: [email protected]

UK: Steve ThomasTel: +44 20 7834 7676 Fax: +44 20 7975 0076Email: [email protected]: Michael TomashefskyTel: +1 203 226 2882 Fax: +1 203 226 7447Email: [email protected]

Head Office: Alain Charles Publishing Ltd, University House,11-13 Lower Grosvenor Place,London SW1W 0EX, United KingdomTel: +44 207 834 7676, Fax: +44 207 973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215,Loft No 2/A, PO Box 502207, Dubai Media City,UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261Production: Henrietta Cobbald, Donatella Moranelli, Nasima Osman,Jeremy Walters and Sophia WhiteE-mail: [email protected]: [email protected]: Derek Fordham

Printed by: Wyndeham GroupUS Mailing Agent:African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year byAlain Charles Publishing, University House, 11-13 LowerGrosvenor Place, London SW1W 0EX, UK. Peridicals postagepaid at Rahway, New Jersey. Postmaster: send addresscorrections to Alain Charles Publishing Ltd, c/o MercuryAirfreight International Ltd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

UP FRONT

3

REGULARS

FEATURES16 Executive Lifestyle

How the design of a classic executive saloon changes over time

20 Economy, FinanceInvestment in Ghana; Nigeria’s power sector reforms; and the eighth CII-EXIM Bank Conclave

28 TechnologyOpportunities to engage with security specialists at IFSEC West Africa; and a brief on whybroadcasting will need better audience metrics

28 TransportCore systems for maritime logistics; and telematics for fleet management

37 PowerChoosing affordable standby generators; and the focus on profitably and efficiency in Namibia

52 ManufacturingObservations at the 6th International Powder Metallurgy Conference & Exhibition

54 ConstructionReducing Africa’s infrastructure deficit; energy plans for offices; radical initiatives for newhousing in South Africa; and signs of continued growth in construction activity

64 MiningThe common sustainability challenges affecting resource extraction

04 Agenda: Commercial innovationsand initiatives

14 Bulletin:Key developments withautomotive enterprises

66 Solutions:Solutions for industry andenvironment

Contents

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

March 2012

Construction:Asanda Makanda,MD of Manoa P56

Gensets:Choosing and usingstandby power P37

Namibia’s profitable, efficient

power management

On the road toreforming powerdistribution

P44

P22

Automotive:Styling the executivesaloon P16

www.africanreview.com

African Review

of Business and TechnologyM

arch 2012 Volume 47 N

umber 11

ww

w.africanreview

.com

Nigeria’s Honourable Minister of Power,Professor Bart Nnaji

Editor’s Note

Cover picture: Surge arrester columns in the AChall at the Caprivi Link Interconnector GerusHVDC Light station, helping to deliver energyefficiencies in central Namibia (Photo: ABB)

P13

P58

The structural safety of industrial environments is vitally important. Operations outsideand within facilities for commercial use require sound technological support to run with

minimal downtime due to accidents or machine damage, for example. And, more than this,firms these days require increasingly advanced technology to guarantee not only secureworking environments, but also security of working enterprises. That is why events such asIFSEC are so welcome. The edition taking place in Nigeria is more than an exhibition, anddelivers more than a series of presentations in conference rooms. The business leaders whomeet IFSEC events will network and contract to help deliver secure environments and safeoperations to underscore revenue generation. Welcome, also, are caucuses such as the CII-EXIM Bank Conclave, which help to form the financial underpinnings of the corps ofmulti-national trade initiatives that Africans these days engage in and benefit from. In anincreasingly globalised world, this continent’s right to commit to commercial relations withpartners abroad is stronger than ever. But consider that no initiative happens without thepower to keep it going - and this issue of African Review of Business and Technologyreflects the choices to be made in local, national and regional generation.

Andrew Croft, Managing Editor

African Review of Business and Technology - March 2012

Audit Bureau ofCirculations -

Business Magazines

S01 ATR March 2012 Agenda North_Layout 1 21/02/2012 15:05 Page 3

Page 4: African Review March 2012

Since implementing the Oliver Wight ClassA programme, service levels at Aircelle

Maroc have improved a minimum of 98 percent, having previously fluctuated between70 per cent and 80 per cent. At the sametime, stockholding levels have been reducedby a third, saving hundreds of thousands ofEuros, and the company has received formalrecognition from Rolls-Royce for its ‘class-leading’ OTIF delivery achievements. Therehave also been significant reductions inmanufacturing cycles, with assembly of someproducts reduced by as much as 50 per cent.All this has been achieved in a remarkablyshort space of time – the business receivedClass A certification for planning and controlafter just 18 months.

“The savings we have made in stockholdingare worth €7.5mn, or about €30,000 everyworking day,” says supply chain manager,Ludovic Boisrame. “One of the key enablerswas the breakdown of barriers betweenfunctions, underpinned by the Class A work.As soon as everybody was working from asingle set of data, it was easy to see where theimprovements could be made and measured.” The programme is part of a wider Class Aimplementation across Aircelle and the€10bn, 55,000 employee Safran group, it’spart of. Safran is a French-owned multi-national operating in 50 countries and threecore markets: aerospace, defence andsecurity. Aircelle’s customers include majorengine and airframe manufacturers, such asAirbus, Gulfstream, Rolls-Royce and PowerJet. Aircelle Maroc, based in Casablanca, is thefirst non-French site within the Safran groupto achieve the Oliver Wight Class A standard.

World Bank Group member IFC is supportingMorocco’s third-largest microfinanceinstitution, Fondation pour le DéveloppementLocal et le Partenariat (FONDEP), to help extendits lending services to local micro and smallbusinesses to spur economic growth and jobcreation. IFC is providing an integrated package ofinvestment and advisory services that will helpFONDEP mobilise funding through a $9mnpartial credit guarantee, to help facilitate accessto finance for local micro, small and mediumenterprises and help FONDEP strengthen itslending capacity. This will strengthen FONDEP's

presence in Morocco, help the institutionexpand its network of branches, and generatemuch-needed job opportunities. “A lack of access to finance for micro and smallbusinesses is a main barrier to both regionaland local economic development,” saidMouatassim Belghazi, Chairman of FONDEP'sBoard of Directors. “We hope that ourpartnership with IFC will establish confidenceamong local financial institutions andencourage them to provide more funding tothis underserved sector, which will in turnstimulate job creation and fosterdevelopment.”

4

NEWS

Designopolis, a Portfolio Company of Bonyan for Development and Trade, has won the Gold Awardfrom the International Council of Shopping Centers (ICSC) in its first-ever Middle East & North AfricaShopping Center Global Awards programme. Designopolis won its gold award in the Design and Development category of Innovative Designand Construction of a New Retail Project. This category recognises how new design anddevelopment standards have been established in the retail industry. “We are enormously pleased to be the first winners of the Gold Award in the ICSC’s first MENAShopping Center Global Awards,” said Nader Lahzi, Managing Director of Bonyan. “As Egypt’s firstfurnishings, design and home accessories mall, Designopolis houses a total of 300 local andinternational furniture and design brands as well as complementary services and attractions in anattractive, modern setting that has already won the praise of design enthusiasts around the world.”The 2011 Middle East & North Africa Shopping Centre Awards are designed to recogniseoutstanding achievement in marketing, design and development of retail properties and retail storedesign and was open to shopping centre owners, developers, management companies, architectsand designers, and retailers.

Remittances back home to North Africa and the franc zone from African migrants workingabroad are worth tens of billions of euros every year. They are resilient to crisis and are avaluable spur to development in Africa. However, the costs of sending this money are too high.The French presidency of the G20 resolved at the Cannes summit in 2011 to cut these costs byhalf by 2014. To that end, France and the African Development Bank presented an action plan,based on a new study -Reducing the costs of migrants’ remittances and optimising their impacton development - at a seminar in Paris on 21 February, in the presence of: Henri de Raincourt,French Minister for Cooperation; Pierre Lellouche, France’s Secretary of State for External Trade;and Kamal Elkheshen, vice president, African Development Bank. The seminar broughttogether members of Parliament, government officials, the private sector, banking and theAfrican diaspora, from residence and recipient countries covered by the study.

Aircelle Maroc gainsOliver Wight credentials

African Review of Business and Technology - March 2012

Agenda / NorthAward for Designopolis innovation

Small business support in Morocco

Cutting the costs of remittance

The savings we havemade in stockholdingare worth €7.5mn, orabout €30,000 every

working day”by Aircelle Maroc supply chain manager,

Ludovic Boisrame

S01 ATR March 2012 Agenda North_Layout 1 21/02/2012 15:05 Page 4

Page 5: African Review March 2012

S02 ATR March 2012 Agenda East_South_Layout 1 21/02/2012 15:16 Page 5

Page 6: African Review March 2012

As part of the implementation of theAfrican Union Border Programme

(AUBP), the Governments of the Comoros,the Seychelles and Tanzania have signedagreements on the delimitation of theirmaritime borders. These include: anAgreement on the delimitation of themaritime border between the Republic ofSeychelles and the Union of the Comoros;and an Agreement between the Republicof Seychelles, the Union of the Comorosand the United Republic of Tanzania onthe Indian Ocean triple point.These delimitation Agreements weresigned by Mr. Jean Paul Adam, Ministerof Foreign Affairs of the Republic ofSeychelles, Mr. Mohamed Bakri BenAbdoulfatah Charif, Minister of ExternalRelations and Cooperation, in charge ofthe Diaspora, Francophonie and theArab World, of the Union of TheComoros, and Honorable BernardKamillius Membe, Minister of ForeignAffairs and International Cooperation ofthe United Republic of Tanzania, duringa ceremony held at the Queau deQuinssy House, at the Ministry ofForeign Affairs.Mr. Mourad Taiati, Head of the AU LiaisonOffice in the Comoros, represented theAU Commission at the ceremony. Also inattendance was the Director of the GiZAU Office in Addis Ababa, Mrs RuengerMechthild. It should be recalled thatGermany, through GiZ, provides financialand technical support to the AUBP,including delimitation/demarcation, aswell as cross-border cooperation, in anumber of AU Member States.The signing of these Agreements comestwo months after the one concluded inMaputo, Mozambique, in December2011, within the framework of the AUBP,regarding the delimitation of themaritime borders between the Comoros,Mozambique and Tanzania.

The Secretary General of the East AfricanCommunity Amb. Dr. Richard Sezibera hasdisclosed the establishment of TheSecretary General’s Regional BusinessForum aimed at, among others, ensuring acontinuous dialogue with businesscommunity in East Africa to make sure theintegration process works for business andtrade, EAC competitiveness, and ultimatelyeconomic growth.Amb. Sezibera, who was addressing theEast Africa Stakeholders Forum organisedearly in February 2012 by Trademark EastAfrica at the Hotel Southern Sun inNairobi, Kenya, said that working withTrade Mark East Africa and the East AfricanBusiness Council, the EAC will be hosting aquarterly meeting of Chief ExecutiveOfficers of East African firms to dialogueon how to improve the businessenvironment in the region.The Secretary General also noted that theissuance of a single tourist visa, theinternationalisation of the East AfricanPassport, the use of national identity cardsfor movement within East Africa among

Partner States that have agreed to do so,plus liberalisation and domestication ofEAC airspace will be among the prioritiesfor the Community this year.He said the construction of the One StopBorder Posts and other integrativeinfrastructure as well as implementation ofthe agreement on harmonised axle loadand other transport regulations includingcabotage regulations were expected tosignificantly bring down the cost of doingbusiness in the region to the benefit of thepeople of East Africa.Amb. Sezibera noted that EAC now had anenvironmentally friendly industrial policyand strategy and encouraged the privatesector to work with the EAC on itsimplementation.“Industrialisation, including agro-processing requires concerted action fromgovernments, the private sector, and civilsociety.“It also requires of us to accept change,”otherwise “East Africa must industrialise orbe left at the margins of the globaleconomy,” asserted Amb. Sezibera.

6

NEWS

Telecommunications satellite operator Spacecom recently hosted a visit to Israel bySouth Sudan's Minister of Telecommunications and Postal Services, Hon. Maj. Gen.Madut Biar Yel. Spacecom officials held a series of talks with the Minister on cooperationon future communications projects in South Sudan and arranged meetings with otherIsraeli telecom, aerospace and technology companies as well as Israeli governmentofficials. Spacecom's AMOS-5 satellite, serving Africa from the 17°E orbital position with C-bandand Ku-band beams, began commercial operations late in January 2012. It is slated to bea prime carrier of African satellite communications traffic in both broadcast and dataservices in the years to come. Moshe Kachlon, Israel's Minister of Communications commented, "The State of Israel islooking forward to working alongside the new State of South Sudan to assist in thegrowth of its infrastructure for the future. I believe that international cooperation on theministerial level represents an excellent start."

Agreement reached onmaritime borders

African Review of Business and Technology - March 2012

Agenda / EastSpacecom sponsors visit by SouthSudan telecoms minister

EAC Secretary General addressesEast Africa Stakeholders Forum

S02 ATR March 2012 Agenda East_South_Layout 1 21/02/2012 15:16 Page 6

Page 7: African Review March 2012

Power Generation 85–770 kVAOff-road 129–565 kW

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That’s why Volvo Penta engines are reliable and safe – and a perfect match, whatever

your specific application may be.

By meeting present and future environmental legislation they are also your investment

in a more sustainable tomorrow.

Agricultural ConstructionForestryMaterial handlingMining/Quarrying Power generationStationary

POWERING YOUR BUSINESS

WWW.VOLVOPENTA.COM

S02 ATR March 2012 Agenda East_South_Layout 1 21/02/2012 15:16 Page 7

Page 8: African Review March 2012

Having pioneered the launch oftrenchless technology in South Africa in

the early 1990s, subsurface pipelineconstruction and rehabilitation companyTrenchless Technologies cc has witnessedhow this branch of technology has becomeone of the fastest growing sectors withinSouth Africa’s construction and civilengineering industry.

Trenchless Technologies managing memberSam Efrat says that the deterioration of thecountry’s underground infrastructuresystems and the ever-increasing demand forutility services is driving an even greaterneed for subsurface utility construction andrehabilitation that causes minimal disruptionto surface traffic and business. Upon the emergence of trenchlesstechnology in the international market in the1980s, Efrat quickly realised the potentialthat it held for an emerging market such asSouth Africa, and spearheaded the launch ofTrenchless Technologies in 1991. Trenchless Technologies was established asone the first contractors in the South Africanmarket to offer pipeline rehabilitationthrough the use of subsurface technologies,including sliplining and pipebursting. As themarket grew, Trenchless Technologiesexpanded its offering to include theinstallation of new pipes through subsurfacetechnologies such as pipe ramming anddirectional drilling.

8

NEWS

Industrial operations in South Africa are able to swiftly and efficiently deal with any abnormalpressure conditions that endanger a silo structure, by making use of a wide range of pressurerelief valves introduced to the local market by WAMGROUP. WAM South Africa general manager Emilie Marchand notes that although a pressure reliefvalve should never have to go into action, it must be efficient and reliable if needed. “A silobecomes a pressure vessel when it is filled and subjected to over-pressure. In such cases, theVCP valve will open and release excess pressure exceeding 1 bar to prevent the silo fromexploding or being damaged,” she explains. When the silo is being discharged; however, Marchand points out that under-pressure can alsooccur. “In this case, the valve will open up and allow pressure from the environment to enterthe silo to regulate the pressure. It is vitally-important that sudden excess or suction pressureinside the silo is dealt with instantaneously.”Marchand notes that a VCP pressure relief valve consists of a cylindrical casing with a bottomflange that is connected to a spigot on the silo’s roof. A disc-shaped inner steel lid for negativepressure operation is held in position by a central spring rod, while an outside steel ring forexcess pressure is kept in position by three spring rods, gaskets and a weather-protectioncover. What’s more, helical springs keep the valve lids closed when the pressure value remainswithin the preset limits.“The three spring rods on the outside of the valve keep the external ring-shaped lid firmlyclosed as long as the force generated by the pressure inside the silo does not overcome thespring force. Once the pressure exceeds the preset value, the lid is pushed up and the pressurecan escape. The smaller lid covers the central circular opening of the external lid from below,”she adds. “In the event of suction pressure, the spring is compressed and enables the lid todrop. The air entering the silo from outside ensures rapid pressure balance and pushes thecentral lid back up into the closed position.”

Championing SA’strenchless industry

A pressure relief valve should never have to go into action, but it must be efficient and reliable if needed

Port Elizabeth 900 Sewer after lining with Ribloc Ribline

African Review of Business and Technology - March 2012

Agenda / SouthRelieving the pressure placed onindustrial operations

S02 ATR March 2012 Agenda East_South_Layout 1 21/02/2012 15:16 Page 8

Page 9: African Review March 2012

S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:30 Page 9

Page 10: African Review March 2012

Aker Solutions has signed a frameagreement with Tullow Ghana Limited

to provide well intervention services for theoil company's Jubilee and Tano deepwaterfields offshore Ghana, West Africa. AkerSolutions provides oil services globally,including engineering services,technologies, product solutions and field-life solutions. The initial contract period isfor three years, with two additional one-year options (3+1+1). Aker Solutionsestimates that the agreement will generateannual revenues of approximately US$4mn.

Under the agreement Aker Solutions willprovide slickline and coiled tubingequipment and services, which areconducted with the objective ofmaximising production of oil and gas. AkerSolutions has delivered well services toTullow's Jubilee field since 2008."Tullow is the largest independent oil andgas exploration and production companyoperating offshore West Africa. We arepleased to be able to support theirambitious growth plans throughproviding our technologies and servicesto increase oil recovery ratios," saysWolfgang Puennel, head of wellintervention services in Aker Solutions."Ghana is an up-and-coming oil nation. Thisnew and extended contract with Tullowprovides us with a solid long term outlookfor our operations there. We will utilise thisto set up a more permanent presence inGhana, which will also drive the need for alarger local workforce. This will put us in abetter position to secure further oil servicework in the country," adds Puennel. Aker Solutions' contract party is AkerQserv Ltd.

10

NEWS

T3 Motion, Inc, a producer of clean/green technology, has received an order from newly-appointed Nigerian distributor for 126 T3 Electric Stand-up Vehicles (ESV) and 126Motiontrak GPS tracking systems. The vehicles are anticipated to be used forgovernment customs and security initiatives.With 155mn people, Nigeria has the world's eighth most populous nation and has thethird largest economy in Africa, following South Africa and Egypt. Nigeria is the eighthlargest exporter of petroleum in the world, accounting for nearly 11 per cent of UnitedStates oil supply."This quarter, our company has reached a milestone with over 500 vehicles on backlog, arecord for T3 Motion. To fulfill this demand, we are expanding our manufacturingcapabilities and are launching strong sales campaigns to leverage our success," stated KiNam, T3 Motion CEO. "As the third largest player in Africa, Nigeria represents a milestonein our company's expanding footprint, reinforcing our global deployment strategy andsupporting our ongoing sales growth." The T3 ESV is an electric law enforcement patrol vehicle known for its commandpresence, quick response time and iconic look that is designed to decrease operatingcosts, reduce crime and increase patrol capabilities. More than 3,000 T3 Series vehicleshave been deployed in over 30 countries worldwide.

Following attacks carried out by the terrorist organisation Boko Harem in Nigeria, Arik Air hasrenewed its commitment to airline security and to enhanced measures aimed at counteractingthe threat - including fresh deployment in Abuja and Lagos of aviation security experts to assistlocal staff in ensuring that the airline’s staff operate at an optimal level of security.In the past, Arik Air has been recognised for its commitment to safety and security - recently, itwas awarded the “Best Security & Safety Conscious Airline in West Africa” by the Security WatchAfrica’s Board of Trustees.Dr Michael Arumemi-Ikhide, Group CEO/President of Arik Air, said, “Safety and security are thetwo foremost principles upon which we built Arik Air. We have been regularly recognised in thepast for this attention to such a key area of the airline industry and the size of our aviationsecurity department and its track record attest to how much a priority we place on this area.”

Aker Solutions winsGhanaian well contract

T3 Motion's T3 Series Electric Stand-up Vehicles (ESVs) in CostaMesa, California, in the USA

African Review of Business and Technology - March 2012

Agenda / WestNigeria orders 126 T3 electricvehicles from T3 Motion

Arik sets example in aviation safety

Aker Solutions hasdelivered well services

to Tullow's Jubilee fieldsince 2008

S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:30 Page 10

Page 11: African Review March 2012

But we do, when called upon.Tired of seeing the service technician show up in a bad mood? Acting like he has never seen a wrench before, hating his job and wishing he was pounding down exotic drinks on a beach in The Bahamas? Yeah. He’s out there.

Not on Shantui’s watch. Our professionals show up on the job enthusiastic about serving you, and they are well-trained.

Today, Shantui has sales in more than 120 countries around the globe. We have ten branch offices abroad and more than fifty exclusive, regional dealers. Dealer and agent surveys indicate that the network is one of the best in the business. Our after-sales service, parts distribution and delivery expertise are on par with global standards and are quickly helping to strengthen Shantui as a leading multinational brand.

Anytime, Anywhere Service. A promise we rarely have to keep.

It’s the Shantui Way of providing excellent service all the time. It’s the Shantui Way of doing business, period.

www.shantui.com

Check out our full-line of construction, road and concrete machinery at:

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S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:30 Page 11

Page 12: African Review March 2012

12

NEWS

April4-7Aeroexpo MarrakechMarrakech, Moroccowww.aeroexpo-morocco.com

17-18Nigeria Infrastructure &ConstructionLagos, Nigeriawww.cwcnic.com

24-26Global ForumCape Town, South Africawww.forum2012.org

May5-7BuildExpo/IndusMach KenyaNairobi, Kenyaexpogr.com

6-10Water Institute of Southern AfricaCape Town, South Africawww.wisa.org.za

7-10electro, automation & energyAlger, Algeriawww.electro-automation.info

8Cloud Computing World ForumAfricaJohannesburg, South Africawww.cloudcomputinglive.com

8-10West African InternationalTelecommunicationsLagos, Nigeriawww.exhibitionsafrica.com

8-10West African International TradeExhibition for Retail ProductsLagos, Nigeriawww.exhibitionsafrica.com

8-20Fluidtrans CompomacMilan, Italywww.fluidtranscompomac.it

10-12AutoExpo KenyaNairobi, Kenyaexpogr.com

10-12Oil & Gas AfricaNairobi, Kenyaexpogr.com

20-22BuildExpo/IndusMach TanzaniaDar Es Salaam, Tanzaniaexpogr.com

23-26Water Africa and West AfricaBuilding & ConstructionAbuja, Nigeriawww.ace-events.com

23-24Cloud AfricaJohannesburg, South Africacloudafricasummit.com

Events / 2012

The Geneva Motor Show has always

been a birthplace ofinnovative ideas andstrong emotionsregarding the future ofthe automobile. Theposter for the 82ndGeneva InternationalMotor Show (March 8-18, 2012) was createdby LineUp, acommunication agencyfrom Bern. The concept fromLineUp not only celebrates the automobile,but also honours the city at the end of theLake of Geneva in its poster’s graphic. Theysummarise their creative ideas as follows: “Every year, Geneva is transformed into ametropolis of innovative technologies,craftsmanship of the highest level,audacious and noble designs, as it takes onthe role of an international gallery for theautomobiles of the future. Like the previewof an art exhibition, established and newmanufacturers present the latest automobiletrends and their newest creations, withincreasing emphasis on ecological concerns.We were also inspired by the perpetualpleasures and sense of liberty that drivingprovides. We have tried to translate thefollowing impressions into our artisticcreation: a brilliant sun, fresh air, drivingthrough a natural countryside towards anopen horizon which gives observers a senseof space to develop their own reactions andemotions”

Driving into the future

The 15th Auto Expo KenyaInternational Trade Exhibitionto be held in May 2012 is allset to present variousautomotives and spare partsfrom over 11 countries. Theevent this year is showcasing a

wide range of products fromChina as over 30 companiesare participating from thecountry that is one of thelargest producers in the world.The number of exhibitors andvisitors in 2012 is expected to

rise by at least 20 per centsince an aggressive campaignhas been launched whilecelebrating the event's 15thbirthday. Trade visitors from allover East & Central Africancountries are being invited

directly and in collaborationwith several regional tradebodies in Kenya, Tanzania,Ethiopia, Uganda, Somalia,Mozambique and Congo.

http://expogr.com/kenyaauto

African Review of Business and Technology - March 2012

Geneva hosts anexhibition ofinnovative ideas andstrong emotionsregarding thedevelopment of theautomobile

Moving the city and the country

S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:31 Page 12

Page 13: African Review March 2012

EVENTSELECRAMA

13African Review of Business and Technology - March 2012

ELECRAMA 2012 - held in Mumbai, Indiarecently - turned out to be a grandindustry spectacle with a full

complement of global and Indian exhibitors. The tenth edition of the world’s largest

electrical T&D event attracted about 125,000footfalls into the expo including visitors fromover 100 countries. Almost all leading IndianElectrical Industry manufacturers across theentire T&D value chain conforming to globalstandards congregated at the event toshowcase their development andmanufacturing strengths.

Global conference on smart grids, technicaltutorials by specialists from CIGRE Paris,specialist workshops by IET on distributiontechnologies, and trade exchanges via reversebuyer seller meets were some of the newfeatures and major highlights of the event.

Indra P Menon, Chairperson, ELECRAMA-2012 Organising Committee, pointed out thatthe first of the ELECRAMA series was anexhibition by and for the group of ambitiouspioneers from the electrical industry in 1990.“It was almost prescient in its conception andarrival, held at it was just a year before India’s1991 leap into liberalisation and globalization.Today we are in the 10th edition andELECRAMA now is indisputably world’s largestexhibition focused on products and servicesfor the transmission and distribution sector,”Menon said.

Ramesh Chandak, President of IndianElectrical and Electronics ManufacturersAssociation (IEEMA) - organizers of ELECRAMA- talking about the apex body which wasfounded in 1948 and the event, said, “IEEMA isthe national representative organisation of theelectrical equipment industry which coversthe complete value chain in power i.e.generation, transmission and distribution. Itsmembership base, ranging from public sectorenterprises to multinational companies to

small and medium companies, gives IEEMA atruly national representative character.Through the platform of ELECRAMA, we’retrying to establish and promote the ‘Made inIndia’ brand.”

Grid Week Asia 2012 ELECRAMA hosted the maiden GridWeek Asiawhich is an extension of the annual GridWeekconference held in Washington, D.C., U.S.A.The Smart Grid potential in Asia– a rapidlygrowing market– is expected to reachUS$22bn by 2020.

India is experiencing rapid growth in grossdomestic product (GDP), with an expectedgrowth rate of over 8 per cent per annum thisdecade, which is fueling the need forexpedited infrastructure development. India’stotal installed generation capacity is close to175,000 megawatts (MW), and the countryrequires an additional 100,000 MW ofgeneration capacity in the next six years withthe corresponding investment expected atwell over US$500bn in the electricity sector.

At the inaugural session of GridWeek Asia2012, Sam Pitroda, Advisor to the PrimeMinister, Government of India, said, “It isamazing to see how India – which is a superpower in Information Technology – lagsterribly in the Power sector. It is reallyannoying to see our primitive ways ofproviding power – be it evacuation, grids,meters or even the way we manually calculatepower consumption till date. All this has tochange and it will change, for this decade hasbeen declared by the Government as the‘Decade of Innovation’.”

Reverse Buyer-Seller Meet The ChangeXChange: Reverse Buyer-SellerMeet (RBSM) at ELECRAMA-2012 had anunprecedented and overwhelming responsefrom both international buyers and Indian

manufacturers of electrical equipment. Theestimated business generated value was overUS$44mn. The event had over 2000 scheduledmeetings arranged between buyers andsellers and saw long queues of enthusiasticsellers keen to make business contacts withinternational buyer delegations. Over 300buyers from over 30 countries from Africa,Latin America, ASEAN and CIS attended thismega RBSM spread over 3 days, held inconjunction with ELECRAMA-2012.

African delegation was the largest andincluded buyers from Angola, Benin,Botswana, Cameroon, DR Congo, Ethiopia,Gabon, Ghana, Kenya, Malawi, Mali, Morocco,Mozambique, Nigeria, South Africa, Senegal,Sudan, Tanzania, Tunisia, Togo, Uganda andZimbabwe.

ASEAN buyers were representing Malaysiaand Thailand. CIS buyers from Belarus Georgia,Uzbekistan along with Latin American buyersfrom Argentina, Brazil, Chile and Uruguaythronged the event.

Over 200 Indian sellers represented theIndia supply side at ChangeXChange eventand included major Indian companies such asL&T, Finolex, EMCO, Perfect Controls, Leebo,ERL, Indo Asian Electric, VNS Switchgears, etc.The Indian companies felt that most buyerswere keen to source from India and wanted todiscuss both product and project supplies. ■

ELECRAMA 2012:A ‘power-packed’ showThe tenth edition of the largest electrical transmission and distributionexpo was bigger, better and offered brighter business prospects thanits predecessors

The event attracted about 125,000 footfalls into theexpo including visitors from over 100 countries

S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:31 Page 13

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14

NEWS

Executive Bulletin / DrivingRange Rover Sport is enhanced

The Range Rover Sport line-up receives a

number of upgrades for 2012, with interior

and exterior colour revisions, an enhanced in-

car entertainment system and a new powered

tailgate; the flagship for Range Rover Sport,

Autobiography Sport now is available with

two luxury interior themes (Cannes and

revised Valencia) and five interior themes that

offer varying degrees of sportiness (Estoril,

Hockenheim, Le Mans, Monaco and Monza) -

along with the Autobiography Sport unique

Titan front grille, Titan side vent,

Autobiography Sport 20-inch 9-spoke alloy

wheels, stainless steel door tread plates,

body-coloured door handles and Atlas

bonnet badges and tow eye.

Kia’s new seven-seater

Kia Motors South Africa now offers a new

Sedona VQ seven-seater, which replaces the

provide comfortable seating for six, including

the driver, but the accommodation is finished

off in quality materials to create a luxurious

cabin that belies the car’s hidden workhorse

nature.

Nissan introduces unique self-healing iPhone case

The Nissan Scratch Shield iPhone case

features the brand’s pioneering self-healing

paint finish, developed in 2005 and used on a

number of Nissan models; now that this

technology has been applied to a product

that’s prone to scratches through everyday

use – the smartphone – iPhone-users can

keep their phone looking at its best for

longer.

Environmental protection is thetop priority for Volkswagen“Think Blue” is a global Volkswagen initiative

addressing how individual mobility and

sustainability can be harmonised, serving as

an umbrella brand for Volkswagen’s activities

that are related to sustainability; “We want to

show people that ecologically sustainable

behaviour is not only possible, but fun too,”

said Mike Glendinning, Director: Sales and

Marketing at Volkswagen Group South Africa.

previous 2.9 Diesel model, featuring an all-

new 2.2 Diesel engine, which delivers

impressive power and torque of 143kW @

3800 rpm and 436Nm @ 1800 -2500 rpm;

convenience and ease of connectivity is

improved with Bluetooth, which is controlled

via a button on the steering wheel, allowing

for safer and more convenient driving, a new

6-CD front loader with built in MP3 and USB

ports, and an electric-powered tailgate.

A practical workhorse andspacious people carrier

Hyundai’s H1 Multicab features aligned front

light clusters with multi-reflector type

headlights, and clear glass and chrome-

coated bezels both for efficiency and visual

appeal; not only does the new H1 Multicab

African Review of Business and Technology - March 2012

The Nissan self-healingiPhone case

S03 ATR March 2012 Agenda West_Events Calendar_Layout 1 21/02/2012 15:31 Page 14

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Leadership in technology.

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required to meet the world’s rapidly growing energy needs.

For example, at the deepwater Kizomba projects in Angola,

ExxonMobil developed one of the most challenging extended-

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ExxonMobil is developing more than oil and gas—we are helping

to support Africa’s future.

Learn more about our work at exxonmobil.com

S04 ATR March 2012 Report Executive Lifestyle_Layout 1 21/02/2012 15:21 Page 15

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During the course of more than threeand a half decades, the face of theBMW 3 Series has constantly evolved.

Designers have always managed toincorporate dynamics, innovation andaesthetics into a harmonious, modern andfuture-oriented overall concept, whilst at thesame time preserving traditional values. As aresult, each BMW 3 Series has retained itsunmistakable brand identity and can beidentified as a BMW at very first glance.However, the roots of the BMW Series reachback as far as the 1960s…

As a manufacturer of sporty, elegantsedans, BMW had at that time alreadydeveloped a characteristic profile. With anotchback body design, front-mountedengines and rear-wheel drive, a basicprinciple was established back then (BMW1500/2000) that still prevails to this very day.With the arrival of the BMW 1600 in 1966, the2-door 02 Series, which produced suchfamous models as the 1600ti or the 2002tii,was launched on to the automotive marketand eventually replaced by the BMW 3 Series.

The presentation of the first BMW 3 Seriesin July 1975 marked the beginning of one ofthe most remarkable success stories in BMWmodel history. Although the 2-door sedanbore a strong resemblance to the BMW 5Series introduced in 1972, the marketwitnessed the launch of an entirely newvehicle with compact dimensions and asporting character. The predominant designfeature of the front end was also the brand’scharacteristic symbol, which was clearlyidentifiable even from a distance – the BMWkidney grille.

● 1975–1983. The design of the first BMW 3Series is characterised by large windows, adistinctive wedge shape and, of course,BMW’s brand-typical face, the front endbeing dominated by the kidney grillevividly protruding from the radiator coverto continue up slightly scoop-shaped alongthe bonnet to the windscreen. With short

overhangs and a track width of 1,364millimetres at the front, the new sportssedan boasts a rather low-slungappearance. Vertically mounted indicatorsflank the large round headlights on eachside. On the occasion of its presentation,BMW gives the new model best chances ofsuccess: “Timeless and without superficialgallery play, the design of BMW 3 Series willalso become a trendsetter for the nextdecade.”

● 1982–1993. In 1982, the second generationof the BMW 3 Series presents itself as aworthy successor. As a result of a sensitivelyenhanced design and optimisedaerodynamics, the new model has gainedsignificantly in presence. The approx. 35mm increase in track width also contributes

towards the sedan’s distinctively powerfullook. Finally, on the whole, the bodyappears smoother and rounder, the sleekfront end being the result of extensivewind tunnel tests, which is not leastunderscored by a drag coefficient of 0.37.The now low-slung front end boasting theflat BMW kidney grille elongates the entirefront end of the vehicle, particularly as thedouble headlights now featured on all 3Series models are located far on theoutside. The smooth transition into alladjoining body surfaces not onlydetermines the characteristic shape, butalso ensures a good air flow around thevehicle. The low-set bonnet with its widescoop rising gently from the frontenhances aerodynamics, its surface notbeing interrupted by air intake openings.

DrivingEXECUTIVELIFESTYLE

16

A familyresemblanceThe “face“ of the BMW 3 Series through changing times: representing acombination of tradition and modernity, of classic and innovation

The “face“ of the BMW 3 Series through changing times:dynamic, innovative and always unmistakably BMW

African Review of Business and Technology - March 2012

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With big power for the operator and small footprint for the

environment, the Rolls-Royce B-Gas engine produces the

lowest emissions in its class thanks to its lean-burn technology.

Available in 9-,12-,16 - and 20-cylinder versions, B-Gas delivers

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Step confidently into the future with big, gentle B-Gas

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Leading the way in power generation...with small footprints

S04 ATR March 2012 Report Executive Lifestyle_Layout 1 21/02/2012 15:21 Page 17

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DrivingEXECUTIVE LIFESTYLE

18

● 1990–1997. In 1990, the time hadapparently come to replace the soberlydesigned BMW 3 Series with anexceedingly elegant successor model. It isan entirely newly conceived sports sedan,the dimensions of which have increased allround, both surprising and pleasing thepublic to an equal extent. Besides the slimsilhouette, the smooth front end of thenew model is immediately evident, as thedouble headlights are now conjointlymounted behind a glass cover. In additionto dynamic lines and a distinctive wedgeshape, a significantly lower bonnet and araised rear end, technical refinements suchas windows installed flush with the carbody and targeted diffuser cooling aircirculation inside the engine compartmentalso contribute towards the outstandingdrag coefficient of 0.29 (316i). This BMWhas therefore virtually nothing in commonwith its predecessor, but the familyresemblance still remains recognisable.Thanks to typical styling elements such asthe kidney grille and double headlights, it isstill obviously a BMW, even though thedominating design element and symbol ofthe brand was now flatter and wider.

● 1998–2005. When the fourth generation ofthe BMW 3 Series is launched in May 1998,the compact sports sedan is some 40 mmwider and even the track width hasincreased by 60 mm compared with itspredecessor. At that time, BMW designersdescribe the styling of the front end asfollows: “On the whole and in essentialdetails, the front end, the typical BMW face,has been reinterpreted, but it is still thatunmistakable 3 Series face.” The doublekidney grille is integrated into the bonnetand, together with the dual roundheadlights located behind clear glasscovers, again shapes the powerfulcharacter of the new BMW 3 Series’ face.Compared with the front ends of the BMW5 and 7 Series, the lower headlightsurrounds form a distinctive separation:Here, the curvatures of the reflectorslocated in the exterior bodywork are finelyoutlined by a slight indication ofcurvatures, resulting in a clearly visibleinterruption of the horizontal line abovethe bumper.

● 2005–2011. With the launch of the fifthgeneration in the year 2005, BMW brings tothe market a BMW 3 Series that is strong incharacter and exudes significantly morepresence and power than its predecessor.Only a year after the market launch, thenew styling strategy and the progressivedesign vocabulary gain the highest level of

recognition, resulting in the BMW 3 Seriesbeing presented with the “World Car of theYear” award in New York. Members of thecreative BMW design team are alreadyconvinced of the value of their workbeforehand: “Within the series, the designhas consistently developed in both smalland larger steps. The new 3 Seriesrepresents a particularly high level ofadvancement in the vehicle’s designhistory.” Although the car makes only aproportionally moderate leap compared tothe predecessor model, it does stand outfrom it significantly and noticeably. Withthe double kidney grille and dualheadlights curved at the top, it exhibits thetypical front end of a modern BMW – afocused facial expression.

● From 2011. The sixth generation of theBMW 3 Series expresses essential qualitiesof the sedan such as agility, sportiness anddynamics in an entirely new way. Newlyinterpreted classic design features find anew lease on life and are reminiscent of themodels of the 1960s. The large, almostseamlessly integrated radiator cowling withembedded headlights and kidney grillealso characterised the distinctive face ofthe first BMW 3 Series in 1975. On thesports sedan of the year 2011, the moderndual headlights with LED eyebrows extendas far as the kidney grille frame, alsoforming a continuous optical unit spanning

an arch to the historical predecessors ina modern way. The athletically archedbonnet additionally accentuates thefront end, emphasising the car’spresence and sporting appeal. Instead ofa central air intake, the new BMW 3Series has two larger air intakes locatedto the outside below the headlights.Additional vertical air vents are locatedon the outer edge of the air intakes,creating the so-called “air curtain”. Bymeans of enhanced aerodynamic airflowin the vicinity of the front wheels itfacilitates a reduction in fuelconsumption at high speeds andcontributes towards an outstandingdrag coefficient of 0.26.

Although more than 35 years liebetween the first generation of 1975 andthe current BMW 3 Series, both front endsattest to an unmistakable brand identityand, in spite of the great difference in age,are both immediately recognisable asmembers of the same family. Then as now,the design bestows the BMW sedan withits styling and personality, expressingcontemporary and trendsetting dynamics,innovation and aesthetics. Hence, eachgeneration of the compact sports sedanstands for BMW tradition and modernityalike. And each model combines classicand innovative elements that interpret thistheme in their very own way. ■

African Review of Business and Technology - March 2012

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Distributors in Africa:KENYA - HCE Kenya Ltd.: Tel: +254-20-2013137. Email: [email protected]

SOUTH AFRICA - Engine Applications Pty. Ltd.: Tel: +27-11-8251560,61. Email: [email protected]

TANZANIA - Incar Tanzania Ltd.: Tel: +255-22-2861668,70. Email: [email protected]

MALAWI - Agriculture Equipments Ltd.: Tel: +265-1-724624. Email: [email protected]

MAURITIUS - Triomix Ltd.: Tel: +230-2616629, 2615245. Email: [email protected]

NIGERIA - Progressive Star (Nigeria) Ltd.: Tel: +234-1-7914999 & 8023233223. Email: [email protected]

S05 ATR March 2012 Report Country Report_Layout 1 21/02/2012 15:46 Page 19

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T he Africa Forecasting Division led by Natznet Tesfay at specialist intelligence company Exclusive Analysis has calculated Ghana’s overall country risk score to be 2.4 (High Risk) for the one-year

outlook. While Ghana’s risk score is lower than that of other oilproducing sub-Saharan nations (see table), there are still risks thatinvestors and businesses need to understand when operating in thecountry. In December 2011, the government submitted the draft Local

Content and Participation Bill for the energy sector to Parliament. Thebill sets a highly ambitious 90 per cent local content and participationin all aspects of the value chain by 2020, and stipulates that all majorstakeholders consider Ghanaian companies and operators first in theawarding of contracts. However, due to a lack of domestic expertise inthe energy sector, firms are unlikely to be able to comply withproposed targets, heightening contract and bribery risks as thegovernment is likely to use the policy as leverage. Given that E&P firmshave already shown commitment to compliance by offering trainingopportunities to local employees, the government is likely to targetfirst energy service firms for full compliance. While extensiveparliamentary debate on the bill is likely, the adoption of clauses withinthe bill is likely before the vote given broad consensus exists amongkey influence groups. This includes the initial 30 per cent provision oflocal staff, the five per cent local equity stake in service contracts, andthe awarding of contracts in non-technical aspects to local firms. The

GhanaECONOMY

20

Assessing risk forinvestment in Ghana

African Review of Business and Technology - March 2012

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Country Country Political Civil War Score Risk Score Unrest Score Score

Angola 2.5 3.1 3 1.8Chad 3.2 3.7 2.7 3.1Equatorial Guinea 2.3 2.9 1.7 2.1Gabon 2.2 2.8 2.7 1.7Ghana 2.4 2.9 2.8 1.4Nigeria 4.3 3.6 4.5 3.8South Sudan 4.1 4.7 2.9 4.5Sudan 5 4.6 4.9 5.3

S05 ATR March 2012 Report Country Report_Layout 1 21/02/2012 15:46 Page 20

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ECONOMYGhana

21African Review of Business and Technology - March 2012

law is driven by the increasingsocial demands for greater benefitsfrom Ghana's resource wealth,hence the ruling NDC party's desireto adopt the law ahead of theDecember 2012 elections.

Financial and technical challengesAs a new oil producer, Ghana lacks the requisite human resourceknowhow to manage the value chain in the three-to-five-year outlook.Also, energy firms will face financial and technical challenges stemmingfrom the inability of local sub-contractors and suppliers to meet capitaland operational requirements set by the industry. If the localprocurement provision is enforced without a transitional phase, it is likelyto jeopardise health and safety standards and quality control ofoperations. Furthermore, despite the recapitalisation of the insurancesector to the minimum of $1mn in core capital and the syndicated localinsurance of the FPSO's, an EA source reported that the capacity of thelocal insurance industry did not seem adequately prepared tounderwrite some of the high-capital risks, especially with new projectscoming on stream. Risks of industrial action will also increase amidmounting reports of depressed wages for local workers. In November2011, local employees of US firm Weatherford protested in support of a25 per cent salary increment. The local labour quota requirements willgive Ghanaian workers more bargaining power, which is likely toembolden local staff to make greater wage demands.

However, the risk of strikes and disruptions at mines and ports is likelyto recede in the three-year view as the economy improves, inflationreduces and the government loosens fiscal austerity measures. InJanuary 2010, the government increased the minimum wage by 17 percent, in line with inflation. However, natural resource companies arelikely to face protests by the National Coalition of Civil Society Groupsagainst Mining in Forest Reserves (NCCMF) and the Wassa Association ofCommunities Affected by Mining (WACAM). Companies operating inhitherto protected forest reserves in the Eastern, Western, Ashanti andBrong Ahafo regions, are likely to be targeted by protesters who are likelyto disrupt operations by blocking access roads and, in some cases,entering facilities. The activists also have some support in parliament; inMay 2009, one minister called for a review of the Minerals and MiningAct to ensure adequate protection of the environment. Protests are likelyto be more sophisticated in 2012 as local groups increase cooperationwith foreign counterparts. Gold-mining operations will also facedisruption and property damage as the government tries to deal with upto 50,000 aggressive and armed illegal 'galamsey' miners. ■

Exclusive Analysis forecasts commercially relevant political and violentrisks worldwide. The company leverages its global network of 200

expert analysts and 1,200 carefully selected human sources reports risk-relevant information to a core UK-based team, which applies a rigorousmethodology, tight editorial control and an ethos of objectivity andprecision to all analysis and forecasting. The company’s methodology issupported by advanced modelling and mapping capabilities as well ascutting edge content management software.www.exclusive-analysis.com

Energy firms face financial andtechnical challenges if local sub-

contractors and suppliers fail to meetcapital and operational requirements”

S05 ATR March 2012 Report Country Report_Layout 1 21/02/2012 15:46 Page 21

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As Nigeria presses ahead with itselectric power sector reform whichwill culminate in the first part of 2012

in the privatisation of 17 out of the 18 firmscreated out of the state power utility namedPower Holding Company of Nigeria (PHCN),the country's administration will be guidedby a sense of history. Conscious efforts willbe made to ensure that Nigerian businesses,professionals and other stakeholders benefitmaximally from the immense opportunitiesarising from the impending revolution in thepower sector. After all, charity starts at home.Manufacturers in particular will enjoy prideof place. The performance of Nigerianmanufacturers , especially in recent times, isnothing short of heroism, given theexcruciating conditions under which theywork. The whole nation is grateful for itsgreat work.

No nation, however mighty, can afford totoy with its industrial base without paying aprice for it. The United States, for instance,allowed a number of its manufacturing firmsto shift to China and other emergingeconomies as part of the globalisationprocess, and soon realised it has exported somany jobs overseas. In a country wherealmost everyone regards the employmentrate as the most critical indicator ofeconomic progress, the American labourmarket has been pretty bad. Still, theAmerican situation is far better than ours.The Manufacturers Association of Nigeria(MAN) has just published a study showingthat manufacturing, which accounted forbetween five and eight per cent of the GrossNational Product from 1970 to 1980accounted for only 2.5 per cent of the GDPbetween 2001 and 2010. From 1981 to 1990,manufacturing was responsible for four percent of the GDP, and in the following decadeits contribution to the GDP declined to threeper cent. In other words, the situation can

even get worse if far-reaching steps are nottaken early enough.

It is, admittedly, not strange that thecontribution of the manufacturing sector tothe GDP has been declining over thedecades. We have seen big multinationalslike Michelin and Dunlop collapse in Nigeria.We all are living witnesses to how industriesin Lagos, Port Harcourt, Kaduna, Kano,Nnewi, Onitsha, Benin, Aba and Ibadan havesince become carcasses, with some of themtaken over by evangelical churches and otherreligious groups. We have seen companiesmigrate to neighbouring countries but withNigeria still in mind as the primary market. Anumber of reasons have been adduced forwhat is now called Nigeria’s de-industrialisation, but one factor has alwaysbeen cited: electric power crisis.

The Manufacturers Association of Nigeriahas given figures showing how the averageelectricity requirement by our industries wasmet by 95 per cent from 1970 to 1980 butdeclined to 50 per cent the next decade, to25 per cent between 1991 and 2000, and to15 per cent from 2001 to 2010. There is acorrelation between the quantum of poweravailable to industries and the utilisationcapacity of the manufacturing firms. As MANhas eloquently demonstrated, capacityutilisation of the firms reduced from 95 percent from the 1970-1980 decade to 50 percent to the 1981-1990 decade, and to 40 percent in the 1991 to 2000 period, and to 30per cent from 2002 to 2010.

Rising to the electricity challenge,manufacturers have resorted to the use ofexpensive and big generators which run onAutomotive Gas Oil (AGO), but also tobuilding power plants utilising Low Pour FuelOil (LPFO), High Pour Fuel Oil (HPFO) andNatural Gas. The oils are not always availablein our country because of the unsatisfactoryperformance of each of our four refineries,

forcing manufacturers to rely on the moreexpensive imports. Even when the localrefineries produce enough, their prices aresometimes jerked up by huge percentageswithout notice. Cement producers, forinstance, announced in August, 2011, thattheir production costs have escalatedconsiderably following a sudden 40 per centincrease in the price of their power feedstockfrom the state-owned Nigerian NationalPetroleum Corporation (NNPC).

All this helps to make Nigerian productsexpensive. In a liberalised and globalisedenvironment, it has been very tough forNigerian manufacturers to compete with

NigeriaECONOMY

22

Moving along theroadmap to reformThe impending revolution in Nigeria's power sector, and how this willimpact on the development of manufacturing

Nigeria’s Honourable Minister of Power,Professor Bart Nnaji

African Review of Business and Technology - March 2012

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NigeriaECONOMY

24 African Review of Business and Technology - March 2012

their foreign counterparts who not only havebasic amenities but sometimes produce infree trade and export processing zones. Itdoes not gladden the heart that sums ofmoney which should be invested in businessexpansion or even in research anddevelopment is spent on self powergeneration. According to MAN, the installedpower capacity of its members is 4,350megawatts, which on average costs itsmembers US$457,500,000 monthly. This is, ofcourse, more than the quantum of powercurrently produced in Nigeria by the PowerHolding Company of Nigeria for 167mnNigerians and their businesses.

Power sector reform and implementation It has been axiomatic or self evident for yearsthat the Nigerian government alone does nothave the capacity to provide electricity forthe country. By 2005, the National Assemblypassed into law an executive bill whichended the monopoly of the Nigerian state inthe generation, transmission and distributionof electricity in the country. The 2005 ElectricPower Sector Reform Act, among otherthings, abolished the state-owned NationalElectric Power Authority (NEPA) and replacedwith the Power Holding Company of Nigeria;unbundled the PHCN into six powergeneration companies, eleven distributionfirms and one transmission company;provides the time frame for the privatisationof the generation and distribution firms; andcreated the Nigerian Electricity RegulatoryCommission. However, the will to implementthe Act faithfully was not in superabundanceuntil Dr Goodluck Jonathan became thePresident of the Federal Republic of Nigeriain May 2010. In the third month of hisadministration, President Jonathan launched

here in Nigeria a well-received documententitled “Road Map for the Power SectorReform” which details how the 2005 PowerSector Reform Act would be implementedunder his leadership.

In a speech to the stakeholders workshopon “Towards Stability in the Power Sector”held at the Banquet Hall of State House,Abuja, in September 2011, I restated theadministration’s resolve to not onlyimplement the Act fully but also confrontsquarely any stumbling block to therealisation of the Federal Government’starget to generate 40,000MW by year 2020so that our beloved nation can become oneof the largest economies in the world by thisyear. In other words, the six generationcompanies and the eleven distribution firmswill become private sector ownedcompanies in the first quarter of 2012. TheTransmission Company of Nigeria (TCN) willremain government owned, but managedby a firm with a well established record andreputation. The determination to do theright thing in the power sector, no matterwhose ox is gored, explains ourdisengagement and redeployment of somechief executive officers and other executivesin the PHCN system since a newadministration came into being in theFederal Ministry of Power last July.

There is improved power supply in manyparts of the federation. In September 2011,

Nigeria attained new heights in powergeneration. We produced 3,982.7MW inaddition to 260MW maintained as spinningreserve for system stability. The good news isthat the power generated enters the nationalgrid without difficulty, unlike in the recentpast when a reasonable improvement ingeneration would result in system failurebecause the transmission infrastructure wastoo weak and fragile to wheel the newquantum of power. The infrastructure is stillfar from what the present administrationenvisions. We have effected repairs here andthere, and in some cases are upgrading andmodernising the facilities. The president hasalready approved the building of the SuperGrid which will see our nation become oneof the few countries anywhere in the worldwith the 765KV transmission infrastructure.The distribution network challenge is alsobeing addressed, as is the rest of the entirevalue chain in the power sector like theconstant availability of sufficient gas andother fuel forms. We take the Service LevelAgreements (SLAs) with the PHCN CEOsseriously. Each CEO has voluntarily signed anSLA with the Federal Ministry of Power, thatis, a measurable level of performance he willdeliver to the Nigerian people at any giventime. It is the performance of each SLA thatwill determine the future of every CEO. EveryCEO who meets the expectations of thepeople will be rewarded and any CEO who

The distribution network challenge is being addressed, as is the rest of the entire value chain

in the power sector - like the constant availabilityof sufficient gas and other fuel forms”

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ba

l

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fails to justify the confidence reposed in himwill have to go elsewhere. Competence is theguiding principle. I have somewhere citedthe example of what happened atOlorunsogo I power generation facility inOgun State recently.

When I visited the plant in August 2011,with the Minister of Information, only twoout of the eight units were operational, andthe acting CEO informed us that one of themajor reasons for the unsatisfactory outputwas that the Chinese who built Olorunsogo1had refused to give to the Nigerianmanagement and engineers the operationalmanual in English. Yet, the English manualhas always occupied a substantial part of thelibrary. Seventy two hours after he wasredeployed, the number of working unitsjumped from two to six, and the quantum ofpower generated rose from 40MW to 150MWand later to 180MW.

We are making capacity recoveries frompower stations across the country. We shallget an additional 130MW in the first quarterof 2012 from the Ughelli station, havingrecovered 100MW in December, 2011, fromthe Sapele facility. The760MW Kainji hydrostation, built in 1968 but never overhauled, isundergoing rehabilitation. The 1,320MW

Egbin power station which has beengenerating 1,100MW will provide anadditional 22OMW in 2012. The NationalIntegrated Power Project (NIPP) units arecoming up well. Therefore, we are optimisticof generating 6,000MW in 2012. We are alsoconfident of wheeling all the quantum ofpower as we improve on the transmissionnetwork.

Never again will our nation produce somuch electricity stranded in one part of thecountry because there are no facilities totransport it - such as we are experiencing inthe Eastern region whilst there is so muchscarcity of power across the nation.

Where do we go from here? The Federal Government is under no illusionthat the 40,000MW we hope to achieve by2020 will be enough for a vibrant populationof 167mn. South Africa, which has less than aquarter of our population and is the world's20th largest economy, generates 40,000MW.Still, this quantum of electricity has in thelast few years proved inadequate, as SouthAfrica has been experiencing load sheddingor power rationing since 2008. We areexpecting an astronomical increase in thedemand for power here in Nigeria. As the

power supply situation improves, bigmanufacturing firms which went off gridyears ago because of the tremendousdamage to their machines and equipmentcaused by constant power outages willrejoin the national grid. The obviousimprovement in the national economyarising out of the improved electricity supplywill encourage new companies to spring upin the country, thus increasing the demandfor electricity. Manufacturing companies,which have been the greatest casualties ofthe power crisis, will be perhaps the greatestbeneficiaries, together with engineeringprofessionals. ■

Professor Bart Nnaji, Minister of Power, Nigeria

NigeriaECONOMY

26 African Review of Business and Technology - March 2012

Nigeria's president has approved the

building of a SuperGrid, which will see the

country benefit from765KV transmission

infrastructure”

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T HE STAGE IS all set for the eighth CII-EXIM Bank Conclave on India Africa Project Partnership, to be held from 18-20 March 2012 in New Delhi, India. The Conclave is organised jointly by the Export-

Import Bank of India, the Confederation of Indian Industry (CII) and thecommerce and external affairs ministries of India. Over the past seveneditions, the CII Conclave has been established as the definitive platformfor India-Africa business engagement. The conclave has been successfulin building a bridge between Indian and African business leaders andofficials. It has also enhanced the presence of ‘Brand India’ in the Africancountries. Africa with its look east policy has also found the conclaves acredible access point for appropriate technologies and partners.

Projects and platforms for tradeIn the previous conclave, investments to the tune of US$18bn covering asmany as 204 projects ranging from energy to education were discussed.Over a dozen ministers from Africa, including the Prime Ministers ofMozambique and Togo, attended the seventh edition of the conclave,which witnessed the largest ever participation of 650 delegates.

Since 2005, CII has organised 13 regional conclaves in Zambia, Ethiopia,Ghana, Mozambique, South Africa, Cote d'Ivoire, Uganda, Senegal,Tanzania, Namibia, and Nigeria. The essence of the CII Conclave has beento encourage Indian exporters to access the African countries andincrease their presence in the region. A measure of success in this may be

the number of people that attend the CII-EXIM Bank Conclave. The othermeasure is the number of MOUs that are signed and the value of projectsthat are discussed. CII has achieved remarkable results from the last sevenconclaves– 1288 projects worth US$74.38bn have been discussed in thepast editions, which have also contributed towards over a 400-per centgrowth in bilateral trade in the last five years. ■

FINANCEBanking

27

All set for CII-EXIM event

Mr. TCA Rangarathan, CMD, Exim Bank; Mr Sanjay Kirloskar, Chairman, CII AfricaCommittee & Chairman & Managing Director, Kirloskar Brothers Ltd; HE Mr AiresBonifacio Ali, Prime Minister, Mozambique; Mr. Anand Sharma, Minister of Commerce &Industry; H.E. Gilbert Fossoun Houngbo, Prime Minister, Togo; Mr. Hari Bhartia,President, CII & Mr. C Banerjee, Director General, CII at the inaugural of 7th CII-EXIMBank Conclave on India Africa Project Partnership, last year in New Delhi

African Review of Business and Technology - March 2012

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IFSEC West Africa has gained a goodreputation as an essential event for securityenterprises operating in West African

markets. Organised for 6 to 7 March 2012 atthe EKO Expo Centre in Lagos, Nigeria, IFSECWest Africa brings together specialists insecurity and protection industry. The basicobjective of this event is to spread awarenessof security and protection in order to preventcrime. Participants will get the latestinformation about the techniques that arebeing used, with West African securityprofessionals looking to source the latestsecurity suppliers, products and technologiesto prevent crime and protect theirorganisations.

Thousands of visitors will gather at IFSECWest Africa from across the world o learnmore and more about products, techniques,equipments and services linked to thesecurity and protection industry. Buyers andimporters will participate alongside the keydecision makers of some renownedcompanies. Exhibitors participating in IFSECWest Africa will represent different parts of theregion. Exhibitors include: builders,manufacturers and suppliers, dealers ofequipment which assures security andprotection of various organisations.

National security takes top priorityWith the West African region at the turningpoint of massive and sustainable economicgrowth, Nigeria forms the very centre of thisregion’s ever increasing participation in theglobal market. Well aware of the impact ofsafety and security on internationalinvestment, the Nigerian government recentlyallocated US$ 5.5 billion to safety and security.This substantial investment, which makes upone-fifth of the overall 2012 national budget,is aimed at assisting the country to fulfil itspotential as one of the most rapidly growingeconomic powerhouses in Africa.

IFSEC West Africa 2012, an event organised

by UBM Montgomery, returns to the EKO ExpoCentre in Lagos from 6-7 March this year - andwith Nigeria on the cusp of revolutionising itsapproach to the security market, the timingcouldn’t be better.

“Now in its second year, IFSEC West Africa isa world-class event with an authentically

African flavour, capturing the pulse of avibrant and emerging African businessmarket,” says Ross Cullingworth, Director ofSales for Montgomery Africa (a subsidiary ofUBM Montgomery).

It’s an unparalleled opportunity for securitytrade professionals, organisation riskmanagers, company managing directors andgovernment delegates to meet leadingcommercial and government securitysuppliers. Visitors gain the opportunity ofnetworking with industry peers, topinternational security experts and the chanceto view the widest and most comprehensiverange of security and fire products from Africaand around the globe.

Innovations at the showExhibitors at this event include a wide rangeof various security providers that specialise inelectronic security, CCTV, access control,physical security, vehicle and personneltracking devices, armoured vehicles,biometrics, guarding services, fire protectionand fire detection.

Most of the international players whoexhibited at IFSEC West Africa last year, havereturned for the 2012 event and includenames such as Bosch Security Systems,Honeywell, Cross Match Technologies andAxxonSoft. Once again the show has attracteda great deal of South African names as well,including Axis Communications, CenturionSystems, Gunnebo and Inhep ElectronicHoldings. The recognition of Nigeria’s risingpotential has also attracted new namesincluding Apollo Fire Detectors, Elvey SecurityTechnologies, Turnstar Systems and othercompanies that are firm fixtures at IFSEC’sSouth African event. These prestigious namesare joined by leading Nigerian companiessuch as Acti-Tech, Kurrent Resources and CityCentral Communications.

www.ifsecwestafrica.com.

IFSECTECHNOLOGY

28

Innovations insecurity and protectionFor any active security professional, IFSEC West Africa 2012 represents realopportunities to engage with leading commercial, homeland and fire pro-tection product and service providers

IFSEC has always been well-known for

providing a wealth ofeducational events,

conferences and seminarsto accompany these

security and fire events,and will be providing a

Nigerian SecuritySeminar at IFSEC West

Africa, which is tailoredspecifically towards the

West African market.With top internationalspeakers lined up, this

seminar will takeattendees through some

of the most criticalfactors affecting the

security market in WestAfrica today, including

Protecting CriticalInfrastructure, City

Surveillance andHomeland Security

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T he deadline has been set - 2015 is the year in which Africa migrates to digital TV. While the continent prepares for the

dawn of a new age that will offer morechannels, better sound, picture and additionalservices, SES, one of the world’s largestproviders of satellite operations solutions,believes that the future viability of free-to-airbroadcasters will be dependent on attractingand justifying channel ad-spend through anaccurate measurement of the soon to be fragmented African audience.

“Free-to-air broadcasters, who are usuallyState or private broadcasters, rely heavily onadvertising to generate revenues, withadvertisers placing ads on condition that theycan prove a return on investment. Withoutproper channel information in the marketadvertisers are less likely to risk unjustifiablespending - it just does not make businesssense,” warns Christoph Limmer, SeniorDirector, Marketing and Market Development

in Africa, at SES. “Africancountries said to be

on the cusp ofthe migration

have toutedthe range ofnewopportunities

that

digitalisation offers but in order to, in realterms, drive the long term success of ‘goingdigital’ it is imperative that the African mediaand communications sector invests in propermedia measurement,” adds Limmer.

For a continent that, in the next ten years,requires almost US$63bn in infrastructuredevelopment, the challenge of exploiting thebenefits of digital TV remains great. UnlikeEurope where 70 per cent of all TV homesreceive digital TV, TV penetration in itselfremains relatively low in Africa. Most countriesin the region have two broadcasters, i.e. a Statebroadcaster and a private broadcaster, whichhas resulted in a broadcasting playing fieldthat, for the most part, is a small one.

Another major factor in African countrieshaving poor media data resources is the lack ofreliable census information. Many Africancountries fail to conduct regular nationalcensus which is used as the basis for variousmedia-related figures, such as the number ofhomes within a country that have TVs.

Although Limmer acknowledges thesechallenges, he is quick to point out that reliablemedia measurement is not an issue that can beup for debate as 2015 looms ahead. “Digitalmigration will happen and countries have toprepare for the future reality of digital TV,”comments Limmer. “Knowing that digitalmigration poses specific challenges for Africancountries, our satellites are being used tosupport the migration process across theregion. We have also facilitated the initiation of

country-specific Joint Industry Committees(JICs) across the region to encourage

the development of a coherent,coordinated approach to media

measurement,” says Limmer. Limmer believes that industry

discussions are essential inaccelerating the implementationof viable solutions in preparation

for digital TV. “In Ghana, for instance, theformation of their National DigitalBroadcasting Migration Technical Committee(NDBMTC) has resulted in open discussionsaround obtaining consistent fundingnecessary for research,” comments Limmer.Added to this, the formation of NDBMTC hasseen a pilot project currently underway in thecountry as well as a commitment on a nationallevel to complete digitalising all regionalcapitals and their environs by 2012.

Developing channels Well-managed, effective JICs across Africacould also spur the development of regionalindustry working groups allowingmultinational organisations to successfully andeasily advertise in multiple African countries,although presently this remains an undefinedfuture goal. Regional advertising campaigns inAfrica are today still comparatively difficult toundertake since markets are not only diversebut lack a consolidated approach to mediameasurement that produces research - bothreliable and accurate.

Markets and methodologies African markets have different levels ofindustry sophistication and contend with a

SatelliteTECHNOLOGY

30

The future ofdigital televisionThe viability of Africa's free-to-air broadcasters is dependent on attractingand justifying channel advertising spend through accurate measurementof a fragmented audience

Christoph Limmer, regional marketingdirector, Africa for SES

African Review of Business and Technology - March 2012

Increasingly, African media

entrepreneurs areinvesting into local

media and are seen as catalysts for

growth of local media content ”

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number of country specific circumstances,such as a variety of media owners as well asentrenched methodologies. As it stands,therefore, it is better to haveresearch/media measurement conductedcountry-by-country rather than regionalworking groups comprising of industryplayers from different countries.

In June 2011, SES introduced SatelliteMonitors for Cameroon, Ghana and Nigeria.The SES Monitors, which form part of itsmarket research analyses, measured thedevelopment of those key markets andcollected data from current satellite users inthose countries. It was found that, incomparing results with other researchstudies, significant differences were visible.For example, the number of TVs in homes inNigeria varied between 7 to 12 milliondepending on the research study. Thediscrepancy, which was similar to those foundin Cameroon and Ghana, does beg thequestion of how to not only tap into latentopportunities, but also, and moreimportantly, how best to sustain free-to-airbroadcasting in the forthcoming digital TVage where poor media data granularity andaccuracy already exist.

The risk lies in underestimating the need forproper measurement in the free-to-air

broadcasting arena that is almost alwaysdependent on advertising revenue to survive.“Currently, African countries do not have basicstatistics necessary to support advertisinggrowth on existing broadcasting platforms,”says Limmer.

The secondary value of effective mediameasurement will be the expedition ofopportunities that greater capacity affords thecontinent. According to Limmer, despite theenormous task ahead the digital migration inAfrica affirms American entrepreneur, JohnRohn when he said, “For every disciplinedeffort there is a multiple reward.”

Having both a young population withincreasing discretionary income levels, Africahas been identified by many global investorsas one of the biggest growth opportunities inthe world. Further to this, more and moreAfrican media entrepreneurs are investing intolocal media and are seen as catalysts forgrowth of local media content. In South Africa,for instance, ICASA, the regulator for the SouthAfrican communications sector, proposed 21new channels following the country’s move todigital TV. Industry forecasts also predict thatthere will be more than 10mn additionalhomes watching digital content in 2013,driven by both digital satellite and terrestrialreception.

“In a continent of varied cultures, languagesand development, the move to digital for mostAfrican countries is largely in the planning,preparation or testing phase. But, with morebroadcasting spectrum to be made availablemore services, such as interactivity, portabilityand mobility, will be in the pipeline. Theopportunity for marketers is that they cantarget niche markets resulting in thedevelopment of the media andcommunications sector throughout thecontinent,” concludes Limmer.

If digital television is to be sustainable inAfrica discussions around media measurementon a country-by-country level is needed. Onemay expect that, ultimately, the proper andconsistent measurement of major platformswill be the glue that binds present reality withfuture viability and success post-digitalmigration. ■

TECHNOLOGYSatellite

31

Without properchannel information,

advertisers are lesslikely to risk

spending ”

African Review of Business and Technology - March 2012

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LOGISTICSMaritime

33African Review of Business and Technology - March 2012

Gaining credentials in the Maritime Security and Safety (MSS)market requires leverage on the core business areas of securityand mission critical systems, allied to a distinctive vision based on

understanding customers’ operational needs, met by a team of maritimeexperts who have been previously in charge of safety and securityoperations. Each maritime solution offered must be tailored to the specificoperational requirements of particular missions and users

Maritime expertise and systemsModular maritime solutions, as provided by companies like Thales, meetmany modern requirements at sea. Open architecture allows integrationof new equipment, information systems, existing customer legacy assets,interoperation with external systems, and changing operationalframeworks - through easy upgrade capabilities. A current, welcometrend, furthermore, is to adopt a collaborative approach supported bymulti-domestic presence to ensure adequate levels of service and toanticipate future needs (domestic presence, Transfer of Technology andlong term local partnership experience). Companies may be regarded assignificant with respect to maritime operational development, becausethey master all segments of the MSS domain - including Maritime TrafficSafety, Sensitive Asset Protection, Maritime Surveillance and Coordinationof information, systems and operations.

With today’s increasing maritime traffic, ensuring the safety of people,goods and vessels from port of departure to final destination requiressolutions to help respond to collision prevention and response, pollutionprevention and response, and search and rescue. Modern maritime trafficsafety systems may offer: integrated vessel traffic services; navigationalrisk detection; Mission planning tools with multiple stakeholders;improved resource allocation for greater efficiency and cost savings; andcritical asset protection systems.

The protection of people, goods and assets - such as harbours, Oil & Gasinfrastructure (off-shore platforms, FPSO…), vessels, and naval bases - iscrucial. Land and waterside open areas, scattered facilities andresponsibilities, and the complex flow of people, goods and vessels, arechallenges that also need to be responded to. Ideally, companies willprovide clients with integrated systems, including: comprehensiveprotection (underwater, surface, land, air); correlation with intelligencedata; information management to support the man in the loop; ISPScompliance; no disruption of economic activity; increased operationalefficiency; and maritime surveillance systems.

Authorities need to protect interests in Exclusive Economic Zones (EEZ),territorial waters, rivers and lakes against resource plundering, smuggling,illegal immigration, piracy, and terrorism. They also need to tackle thechallenges of large and unrestricted navigational areas, small and non-cooperative objects taking advantage of dense maritime activity to

conceal their actions, the need for increased detection notice, interactionswith multiple resources and agencies, and complex legal aspects. And, intoday’s increasingly interconnected world, joint surveillance andoperations involving multiple sources of information, geographical areasand responsibilities are ever more common. Combined efforts areundertaken for operations such as crisis management (e.g. oil spill) or thefight against organised crime (smuggling, illegal immigration, piracy,terrorism…). The success of joint actions relies on the ability to anticipateand respond to events affecting or taking advantage of multiple locationsand responsibility areas, preserve the individual vision and responsibilitiesof the different stakeholders, keep control of information ownership, andto sort and present the relevant information to the right operator. ■

Mission criticalmaritime systemsThe commercial potential of core systems for Maritime Security and Safety(MSS) markets

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Daimler FleetBoard recently becamethe first supplier of telematicssolutions to offer a fleet management

and driving analysis application for the AppleiPhone and iPad. Operators can use it tocontrol their fleet of buses or coaches at anytime and from any location. The trip recorderalso makes it possible to display the mostrecent journey made. The app enablesoperators to monitor how their vehicles arebeing used, their drivers' working hours, thefuel consumption of their buses and coachesand the drivers' driving style. It is evenpossible to show the status of doors andloading ramps. To use the FleetBoard app it isnecessary to have a vehicle equipped withFleetBoard, with a FleetBoard servicecontract. The app has already been availablefor some time now for trucks and vans.

Trust is important but, as fleet operatorsknow, transparency is even better - and anindispensable factor if a company is tooperate economically and efficiently. Thebus-specific FleetBoard fleet managementsystem provides effective support here. Fleetoperators are able to take advantage of theFleetBoard app for buses, even if they are outand about themselves.

"We have more than ten years' experience ofworking with commercial vehicle fleets.Especially when diesel fuel prices are high, ourcustomers also appreciate the way in whichFleetBoard can help make significantreductions in fuel consumption," commentedMarkus Lipinsky, Managing Director of DaimlerFleetBoard GmbH.

Mapping: keeping tabs on buses at all times The fleet manager can locate the currentwhereabouts of a vehicle on a digital map thatcan be called up on any computer withinternet access, or track its route at 30-secondintervals. It is possible to switch between mapand satellite views or to select a combinationof both. Mapping can also be used to show

important occurrences during the course ofthe trip, or to display warning and statusmessages.

Driver analysis: evaluation of driving styleand realisation of potential savings FleetBoard can help a company to optimiseits economic efficiency, as the right drivingstyle can reduce both fuel consumption andwear and tear by up to 10 per cent.FleetBoard interprets driver and vehicle-related data, taking the assessment of drivingstyle and the complexity of the route intoconsideration in the process. The underlyingdata relating to vehicle speeds, enginespeeds, hard braking and other suchinformation provide an objective basis forconclusions about the way the bus or coach isbeing handled. Such monitoring alsoprovides feedback for the driver as to whatmeasures he can take to improve his drivingstyle and, ultimately and most importantly, tobecome a safer driver. Internal investigationsby Daimler have shown that improvingdriving style to a score of 9.0 or more canreduce accident rates by up to 90 per cent.

Trip recording: transparency in everydayoperations The data thus accumulated makes it possibleto ascertain precisely the times and places atwhich the bus has been stationary or on themove. The company can get reliableinformation about whether the doors wereopen or closed at any particular point. Thisinformation can then be used, for example, todeal with customer issues by establishingwhether a specific bus was on time andavailable for boarding at a given stop. Similarly,bus operators are able to produce datashowing the use of the access ramp bypassengers with restricted mobility.

The driver is able to use preset messagebuttons to send standardised messages backto the bus depot. In return, the company can

also send messages to the display in the bus'sinstrument cluster.

Time Management: automatic capture andarchiving of tachograph data The time management function facilitatesoptimum planning of working hours on thebasis of drivers' rest periods and remainingdriving time. All relevant data can then betransferred automatically into a payroll system.

Service: evaluation of operating data andoptimised maintenance scheduling All key bus operating data, such as mileageor tank fill level, are displayed via FleetBoard.The system will also send selected warningmessages from the vehicle, so allowing anynecessary repairs to be made in a promptand targeted fashion. Further messagestransmitted by the vehicle allow evaluationof factors such as retarder use, or how longauxiliary heating systems or air conditioningare being kept on for. This in turn allowsconclusions to be drawn about the conditionof the vehicle and thus of its economicefficiency and the level of comfort provided.FleetBoard allows fleet operators to planefficiently for any services that are due, orany time-consuming vehicle checks thatneed to be made. ■

TelematicsTRANSPORT

34

Application, economyand efficiencySoftware for telematics system enables improvedfleet management for bus companies

Daimler FleetBoard offers a fleet management and driving analysis application for

the Apple iPhone and iPad

African Review of Business and Technology - March 2012

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Fleet ManagementTRANSPORT

36

A questfor excellenceHow Eqstra sets a lead in entrepreneurship, innovation and industry-specific best practices in fleet management

African Review of Business and Technology - March 2012

Eqstra Holdings, previously known as theImperial Leasing and Capital Equipmentdivision, unbundled from Imperial

Holdings in May 2008 with more than 27 yearsof experience in the fleet management field. Established in Africa, with African know-howand experience as an essential ingredient forsuccess, Eqstra Fleet Management hassuccessfully expanded its traditional SouthAfrican operations into the rest of Africa. Theestablishment of the Rest of Africa Divisionapproximately 11 years ago led to significantgrowth of the fleet outside of South Africa.Fully-fledged operational branches have beenestablished in Namibia, Botswana, theKingdom of Swaziland, the Kingdom ofLesotho, Nigeria, and Tanzania. The company’sbranches provide focussed fleet managementsolutions for all makes of vehicles includingpassenger, light, medium and heavycommercial vehicles, trailers, as well asmaterials handling and capital equipment.Eqstra’s integrated approach provides a rangeof services that cover the entire life of an asset,from the acquisition to its disposal withleasing, rental and value-added optionsavailable to improve the productive andefficient use of the asset.

Comprehensive support for local markets Eqstra’s range of services caters for corporatecompanies, multi nationals, parastatals andgovernments. The Eqstra Fleet Managementservice offering is adapted to local marketrequirements and legislation, so as to offerpeace-of-mind turnkey operations. Theestablishment of an Eqstra operationautomatically spawns a complete mobilitychain – i.e. an array of businesses that eithersupport Eqstra's activities or benefit from thecompany's investment in the country. It is ourpolicy to support the local economies withinwhich we operate and therefore we utilise localvehicle dealerships, suppliers and SMME's tocarry out repairs and services to our vehiclesand any other related activities. The company is well-positioned with the rightproducts for fleet management; resources,

intellectual capital and African presence toservice our customers, by offering customisedfleet solutions. Eqstra’s leaders encourage entrepreneurship,innovation and industry-specific best practices.By making use of Eqstra’s leading fleetmanagement and leasing products andservices, the client will have the benefit ofworld-class services, flexibility of fleet mix andsize, limitation of fraud/abuse through industryproven controls and the most competitivepricing. We consult our clients to make surethat we have understood their needs, and offerthem the buying power, support andinfrastructure of Africa’s vehicle leasingpowerhouse, Eqstra Fleet Management.

The Quest for Excellence Eqstra seeks to be acknowledged by itscustomers and the market as the world’sleading fleet management company. Tocontinually expand its global footprint throughentrepreneurial innovation, organic growthand selective acquisitions. Its ‘Quest for Excellence’ is to provide effectiveand efficient fleet finance and managementsolutions to selected customers. It does so byexcelling in customer service and productinnovation. Ecstra’s Quest for Excellence isachieved through a continuous process of staffdevelopment, transformation and upliftment.The result is the meeting and exceeding ofstakeholder expectations. No matter what therequirement, Eqstra has a fleet managementsolution for all transport requirements. Eqstraspecialises in tailor made solutions for theindividual needs of our customers. We offer lease based products, maintenanceproducts and services, fleet managementproducts, insurance, and value-added servicesincluding licensing and registration.Outsourcing of non-core activities to specialistsis the business initiative of today.

Leasing for fleet managersLeasing is a versatile financial instrument whichallows for almost any asset that can bepurchased to also be leased, from computers

and office automation to security systems,containers, aircrafts, motor vehicles, heavy dutyequipment, refineries, and even satellites. Moreand more, corporate financial executives arerecognising that earnings are derived from theuse of an asset, and not from the actualownership of the asset. Capital is a valuablecommodity, especially during these uncertaineconomic times, and in most circumstances,the benefit from investing into one’s ownworking capital derives an exceeding returnthan the actual cost of leasing. This is evident incalculating the “return performance”ratioanalysis of a business. Henceforth, leasingis simply an alternative method of financing. Eqstra Fleet Management mainly provides FullMaintenance Leases (FML). This provides forfixed motor vehicle costs in core areas, namelyfinance, depreciation and maintenance, withEqstra Fleet Management tailor madecontracts to suit a client’s specific usagerequirements. The finance portion is calculatedat a linked interest rate, the total cost and riskassociated with resale and maintenance istransferred to Eqstra Fleet Management. Inessence this is a finance product thatincorporates a maintenance and fleetmanagement programme. FML incorporates a preventative maintenanceprogramme that can be individually structuredto suit the customer’s needs. This encapsulatesaspects such as procurement, maintenance,serviceability and the administration of thevehicles. The benefits of outsourcing includecapital preservation through decreased capitalexpenditure, reduced administration, transferof risk associated with ownership, ability forsale and lease-back transactions, cost savingsthrough supplier management, increasedproductivity on vehicles through effectivemaintenance control and downtimemanagement, increased efficiencies throughmanagement control and improving strategicdecision making through regular fleetperformance analysis. Leasing terms can betailor-made to meet corporate needs. ■

www.eqstrafleet.com

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POWERGenerators

37African Review of Business and Technology - March 2012

Generators are devices that convert one form of energy toanother as- mechanical energy into electrical energy.Generators prevailed much longer than the invention of UPS.

And till date they play an integral part in the manufacturing of power,while the electricity is cut. The emergency standby generators arethose gen-sets that run along with UPS to fulfill the energy gap whenthere are cuts or surges. Today, you can also buy these generatorsthrough online mode as well. The prices are quite competitive if youorder online.

Emergency standby generatorsAs per requirements new technologies are invented each day.Nowadays, the emergency standby generators are teamed up withthe UPS, so that your data doesn't loss during the phase of power cut.The UPS are used to create power supply instantly as the power getscut off. But, the UPS can't run for long, so you need to put along thegenerators; so that the power loss doesn't occur even for a moment.During the nascent stages the generators needed to be startedmanually. But, now there is considerable change in not only thedesign, but also working mode of these machines. Now, you canexpect it to start automatically almost instantly the power goes off.Talking of the designs and working modes, there are many types ofdiesel generators all depending upon the load one has to bear. Thereare stand-alone solution generators as well as total power solutiongenerators. Some of these machines have single phase up to 33KVAwhile others have three phases up to 800KVA.

These machines can also be put to parallel systems redundancy orcapacity. Previously only open set generators used to come. You canstill see them at homes and shops- where the needs of people aresmall. Others use generators fit in acoustic and weatherproofenclosures. These are heavy duty machines and so have double-bunded fuel tank built into the base. Also, there are change-overcapabilities as standards. You can buy these machines from onlinechannels as well, at extremely competitive rates. You can expect theseonline agencies to install, dismantle, battery dispose and do all theother necessary things of generators for you. They will periodicallyalso come for maintenance, if you want them to, and do it at the timebest suitable for you- say after the office hours. For further kinds ofinformation you can always go for the net where you will bebombarded with relevant information.

It is important to seek out the most reliable range of dieselgenerators, power protection systems and UPS accessories available.Next month’s issue of African Review of Business and Technology willoffer further guidance on emergency standby generators and standbygenerators which give power supply continuously.

Understanding the differences in generatorsAs you sift through potential diesel generators for your home orbusiness, you may find that gaining a clearer understanding of thedifferent types is difficult. Diesel generators are categorised accordingto a number of different included features as well as their intendedfunctions, so it is important to properly distinguish between thevarying options. Learn a bit more about the common classifications ofgenerator and you will feel more confident in your choice.

UseThere are two very broad classifications that determine what type ofgenerator yours will be, and they involve the type of power that you

Standby powerto save your workEmergency standby generators, which run alongside uninterruptiblepower supply units to fulfill the energy gap when there are cuts or surges

Stand No. 100Hall No. 70

23 - 26 April 2012www.infrast

ructurelibya.comTripoli International Fairground

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WHENEVER AND WHEREVER YOU NEED IT!

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POWERGenerators

BRIGGS & STRATTONSales & Service Organisations

ALGERIASARL Farid Outilux Vente en Gros

Cite des orangers, lot 52, groupe A, El Hamiz, AlgiersTel: +213 (21) 869717 Fax: +213 (21) 860349

ANGOLAEcoserv-Equip Commercio & Services

Av. 4 of Fevereiro No. 97, LuandaTel: +244 (2) 395 074 Fax: +244 (2) 392 486

E-mail: [email protected]

Equipment CentreP O BOX 81135 GABERONE BOTSWANATel: 002673165064 fax: 002673506939

E-mail: [email protected],D.R. Congo

Pireco SPRLKinshasa D.R Congo Tel: +243 99 9920555, Fax: +32 27 065590

E-mail: [email protected]

General International Supplies GISCO47 Ramses St., Cairo Tel: +20 (2) 2575 1200 Fax:+20 (2) 2575 13 71

ETHIOPIAHagbes Prvt. Ltd. Co.

Bole Rd. Africa Avenue, Servita Bldg., Adis AbabaTel: +251 11 1552233 Fax:+251 11 1551113

E-mail:[email protected]

Agria Machinery Services & Co Ltd.C523/4 Downhill St. Kokomlemle

Tel: +233 21 238169 Fax: +233 21 222621 E-mail:[email protected]

Car & General (Kenya) Ltd.Cnr. Lusaka, Dunga Rd. Industrial Area, Nairobi

Tel: +254 20 554500 Fax:+254 20 554668E-mail:[email protected]

LIBYAAgri Tech Co

Gargarsh Road, KM 7, TripoliTel: +218 91 2157234 Fax: +218 21 3330669

E-mail:[email protected]

Toppers19 Haile Selassie Rd, PO Box 42 ,BlantyreTel: +265 01 62981 Fax +265 01 620692

E mail:[email protected]

Le Monde du Jardin57 Rue Abou Al Alaa Zahar, Casablanca

Tel: +212 22 861693 Tel: +212 22 860120E-mail:[email protected]

NAMIBIACymot S.W.A.

15 Newcastle St. North Industrial Area, WindhoekTel: +264 61 2956000 E-mail: [email protected]

NIGERIAChizen Machine Tools

Alaba international Market Lagos Nigeria Tel: +234 802 0906263 E-mail: [email protected]

Chehab Brothers LTD7B KUDIRATU ABIOLA ROAD, OREGUN, IKEJA LAGOS, Nigeria,

Tel: +234 1 7758558 E-mail: [email protected]

Matforce10 avenue Faidherbe - BP 397 Dakar SENEGALTel: +221 338399534 Fax: +221 338399550

Email: [email protected] AFRICA

Briggs & Stratton RSA Pty. Ltd.1055 Ridge Road, Honeydew Ext 15 2040 Gauteng, Johannesburg

Tel: +27 11 7948190 Fax:+27 11 7941724E-mail: [email protected]

TANZANIACar & General Tradin g Ltd.

Maktaba Street, Dar Es SalaamTel: +255 22 2113016 Fax:+255 22 2113015 E-mail: [email protected]

TUNISIASIA Ben Djemaa & CIE

220, Ave des Martyrs, Sfax 3000Tel: +216 74 408409 Tel: +216 74 408065 E-mail:[email protected]

UGANDACar & General (Uganda) Ltd.

Plot No.81, Jinja Road, KampalaTel: +256 41 234560 E-mail: [email protected]

ZAMBIADaviro Product Distributor

ChaChaCha Road,, Lusaka, Zambia, Tel: +260 211 235973 Email: [email protected]

ZIMBABWESaw power

P O BOX J125 AMBY, HARARE, ZIMBABAWE Tel: +263 4486509 Fax:+263 4487328 E-mail: [email protected]

need to supply. Diesel generators that areintended to cover you when there is no othersource available are often referred to asprime generators, while those used onlywhen your main utility fails are standbygenerators.

PortableMany Baldor generator models are made foreasy towing, designed with an included hitchand wheel assembly for simple use aroundnon fixed sites. In construction, emergency,mining, industrial and event lighting needs,similarly equipped mobile light towers areused. Others types of diesel generators arealso portable but may not necessarily nothave their own wheelbase.

FixedKohler residential generators and other largestandby generators are designed to sit in oneplace. These bigger, heavy duty modelsprovide a source of continuous, reliablestandby power during regular serviceoutages, and they are housed in solid metalcasing with easily accessible control panels.Their weatherproof characteristics allowthem to continue operating during stormsand other troublesome conditions.

Industrial or residentialResidential and business generators are usedto supply power to homes and businesses.Industrial diesel generators boast the samelong term reliability features as Kohlerresidential generators, but they are made towithstand harsher settings. Industrialgenerators are typically used on board ships,inside mines, within factories and at otherremote locations.

Your knowledge of these basic types ofdiesel generators will go a long way as youmake a selection. Consult with a vendor forfurther recommendations as you compare

Maintain the UPS properlyThe importance of the UPS is understoodmost by a person who continuously operatescomputers or is engaged in jobs related tothe same. It is the only ultimate key fightingthe power supply shortage and helping tomaintain the computers in proper shape. Butfor all this it is also very necessary to takeproper care of the UPS device. If one wantsUPS to work in the best condition always aproper check on its functioning is verynecessary. It should always be ensured thatthe UPS is in the best of its workingcondition. A regular service of the UPS canhelp you out with it.

The first step towards this starts with theproper installation of UPS. Once it's installedproperly its ready to work the best way. But

every device wares and tears with thepassage of time and so a regular service canmaintain the UPS really well. Most of the UPSmanufacturers after supplying the UPS tendto give 1 year free contract for its servicingand after that the client can opt for variousservice schemes at minimal costs. If the UPSis properly installed and also maintainedproperly than it would serve its purposeperfectly and all these should be done onproper time.

The electrical and the battery installationare the most crucial parts of a UPSinstallation. The services should be thereforecarried out by the trained and wellknowledge technology professionals orengineers. Various websites offer costeffective prices for the UPS installation. Apartfrom the maintenance and installation UPSservices also includes the batteryreplacement and a proper battery disposalservice. Such batteries when not disposedproperly can create serious hazards to theenvironment so a Eco friendly disposal is verynecessary to avoid all these.

Trouble free functionality of UPS can makethe work easier and faster. Apart from all thissome self maintenance tips are alsonecessary for the maintenance of UPS.Battery of any device tends to wear off withcontinuous use and the same thing happenswith the UPS lead-acidic batteries. Unwantedcontinuous use if UPS can decrease itsaffectivity. It is true that the device was madefor the same purpose but unwanted usageshould be avoided and it should be used onlywhen actually is needed and is necessary.Electricity can cause serious or may beunrepairable damages to that device.

A lifeline for your computerImagine a power cut when you are workingon the most important project and to add onit the file was not properly saved? At suchtimes a UPS technology can save your workand your computer as well. UPS contains abattery that can help the computer to remainon for some time and thus allowing the filesand rest of the work to shut down properly. Itsaves the computer from power surges andspikes due to sudden stoppage of theelectricity flow and also sudden return of thesame. With UPS the computer can remain onfor that period of time that the thingsunsaved are properly saved and the flow ofelectricity is not disturbed thus helping yousave the vital data on your computer. The UPSholds its position between the PC's powersupply and the main power supply.

It generally contains a lead acidic batteryand a DC to AC inverter. As soon as theelectricity goes away UPS monitors it. A smalldrop in the electric current and UPS starts

39African Review of Business and Technology - March 2012

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Power

functioning. It starts converting DC to ACcurrent and this gives some extra time to thecomputer. As soon as the main power supplyis cut off a small beep is generally heard andthe UPS is activated. The person can nowknow that he/she has only the UPS time leftto switch off their computer properly. Thereare three basic types of UPS available in themarket. They are offline standby, online andLine interactive. A UPS is less costly and it actslike a surge suppressor until the main powercomes back. There is no time gap betweenthe power cut and the activation of UPS.

As soon as the power goes away UPS startsworking without any breakage in the flow ofelectricity. A current fluctuation activates theUPS immediately. UPS are the must productfor the companies working now days.Majority of the organisations needingprotection for the data stored are acceptinglatest and trustworthy UPS technologygradually. One should keep in mind thecapacity and the volt-amp needed beforebuying a UPS. A UPS can save the computerfrom power transients, spikes, brownouts,power failure and line noise. A computer is anexpensive investment and it needs to betaken care of. Get a UPS before you land introuble with your computer and your work.Before buying a UPS technology check for therequirements and then proceed further.

A UPS is like a parachute, you desperatelyhope that you never have to use one butwhen you do you want it to work! For moredetails about ups power and power supplyplease visit our website.

Keeping your unit in top conditionEvery standby power generator will needadequate upkeep to stay in top operatingcondition. Evaluation enables service

specialists to discover any kind of weaknessesor developing troubles in a businessalternative source. Exchange changes,switchgear, load efficiency, links, oiling, andalso operational performance are the severalelements a technician may review in astandard protective servicing visit. Aninfrared diagnostic scan of your completestructure could be carried out to identifyfailing parts, overloads, load instability, andalso active network issues. The timenecessary to accomplish this diagnostic isdependent upon facility specifications. Asmaller office could be finished within a dayalthough significant ones may take two tothree. Additional non-invasive evaluationscould be administered on individual piecessuch as breakers to determine issues andassess their effectiveness. Trustworthyexperts adhere to the recommendations ofthe manufacturer with their individual powergenerator evaluating protocols.

Breaker testing for critical upkeepBreakers are a power switch designed toguard specific circuits from becoming ruined.Harm may be caused by a pre-existingoverload or perhaps the shorting of thecircuit. Each time a fault is recognisedinvolving connections, power circulation maybe halted until the issue is resolved. Anoverload occurs when the supplied electricalmovement is more than what ought to becoming in. The breaker stops circulationsimply by turning to an off position to avoidconnection harm. Loose links could be anadditional cause of overloading and they arerequired to have investigated on thegenerator in standard servicing. Breakerevaluating spots possible factors for overloading that enables the specialist to perform

the necessary fixes. Short circuits take placewhen two active cables of the same form, orperhaps in combination with a basic wire,make contact. Wire ruptures may also be alikely source of connection difficulties.Surface faults when the hot line hits eitherthe breaker box material or even the surfaceline are another type of short circuit issue.

Breakers are movement limiters thatsupervise the movement of any uniquecircuit. They will include a spring loadedswitch plus a bimetallic strip. Getting too hotbecause of different reasons would make thestrip curve and therefore the switch can betripped. This portion is made to managesmall surges and an additional portion offersfaster switching during a significant surge. Itincludes an electromagnet having wire ringsaround an iron piece. Each time a huge surgeoccurs, this strip is pulled down promptly tooffer instant coverage. Breaker examiningassures inside components are typically ingood working order and moving as planned.It might substantially reduce the chances of atripped breaker once the 2nd source ofenergy is called for. Warmth, contact, alongwith connection reluctance are some of themany factors examined during aconsultation. Contacts should be altered orexchanged on specific breakers. All parts arewashed, lubricated, and replaced or repairedas needed. Any company counting on asecondary source for supplied power musthave regular power generator testing andmaintenance performed. Generator efficiencyis greatly hindered when suggested care isn'tcompleted. The device may not kick on in acrisis or disruption situation. A preventativemaintenance schedule is the greatestapproach to boost the dependabilityassociated with a backup system. ■

Generators

BrightSource selected by Sasol for solar power plant designBrightSource Energy, Inc., a solar thermal technology company, hasconfirmed that Sasol has selected BrightSource’s power tower solarthermal technology following a worldwide review of solar technologies.Under the agreement, BrightSource and its partner Alstom, global leaderin power generation equipment, will conduct a comprehensive front-end engineering and design (FEED) study for the South Africa market -is a critical step in the design and deployment of a solar thermal powerplant. Sasol will use the study to determine how best to deployBrightSource’s technology in the markets it serves. To meet its growing clean power demand, South Africa’s RenewableEnergy Independent Power Producer Procurement Program, run by thecountry’s Department of Energy, is targeting the addition of an initial3,725 megawatts of renewable energy by 2016. With one of the fastestgrowing economies in the world, total energy supplies in South Africa

are projected to more than double over the next 20 years to more than85 gigawatts, including the planned development of 18 gigawatts ofnew renewable energy, according to the integrated resource plan recentlyadopted by the government. “Sasol’s selection of BrightSource’s technology represents a significantmilestone as we expand our high-efficiency solar thermal power systemsglobally,” said John Woolard, President and CEO of BrightSource Energy.“Today, South Africa meets more than 85 percent of its power needswith coal. With great solar resources and a need for firm and reliablepower to meet its growing industrial power needs, South Africarepresents an ideal market for BrightSource’s solar thermal technology.Sasol is a leader in energy innovation and a natural partner as we helpSouth Africa meet its growing demand for clean, cost-effective andreliable power.”

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POWERGenerators

41African Review of Business and Technology - March 2012

South Africa welcomes German offer of apprentice trainingA meeting of Germancompanies took place at theoffice of the Tognumsubsidiary MTU South Africain December 2011, hostedby the Consul General ofthe Federal Republic ofGermany in Cape Town,Hans-Werner Bussmann.The meeting was attendedby special guest, AlanWinde, Provincial Ministerof Finance, EconomicDevelopment and Tourism(Western Cape Government)as well as German CEOs, MDs and businessmen from luxury hotels, NGOsand industry organisations. The focus of the meeting was to identifydifferent ways in which German businesses can assist in professionaltraining in South Africa. Currently in South Africa, there is a surplus of skilled jobs available,however, a lack of skilled artisans to fill these positions. This has contributedto the country’s high unemployment rate. Realising the dire need fortraining within the South African labour force has resulted in a significantinvestment by the German business community into apprenticeshipprogrammes which focus on skills transfer and training. A clear exampleon the need to implement apprenticeship training was given by a windgenerator company who import the required skilled labour as they are

not available in South Africa.Through the roll-out of trainingprogrammes, it would bepossible to grow the requiredskills, locally. The apprentice programme isa German concept based onthe dual training system –combining theory andpractice. The training isfacilitated by a dedicatedapprentice trainer who has toensure that each trainingmodule is covered by allapprentices. Training is guided

by experienced senior artisans and qualified engineers, as well as outsidevocational college courses offered by recognised educational institutions. Minister Winde was exceedingly impressed by the existing trainingprogrammes and structure. He eagerly discussed the way forward as itties in with the Government’s Medium-Term Budget Policy Statement:2012-2015 for the country and the Province to achieve faster economicgrowth and higher levels of labour absorption. “I would like to commendall the companies who have adopted and implemented the apprenticeprogramme. The investment has made a remarkable difference to oureconomy, and especially to provide South Africans with the opportunityto empower themselves. We look forward to building on these strategicpartnerships for a better future,” says Minister Winde.

German companies met recently at the office of the Tognum subsidiary MTU South Africa, to discussapprenticeship opportunities

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GeneratorsPOWER

42 African Review of Business and Technology - March 2012

Diesel generators have eased the life ofmillions with emergency power back-up, bringing affordable standby

power within the reach of enterprises, homesand small businesses

A diesel generator is a revolutionaryproduct that brings clean and affordablestandby power within the reach of millions ofenterprises, homes and small businessessince the invention of the diesel engine in1892 by Rudolf Diesel. Diesel generators, theirusage and importance: · Whether it's a localpower outage or a natural disaster, like atornado or generators are an importantusage tool in major medical facilities, bothpublic and military. In such critical situationswe cannot afford power failures. Dieselgenerators are very supportive and take overthe critical work and make these importantfacilities remain operational when they areneed most.

Diesel generators are affordable, cleanpower back-up and bring power to millions ofhomes and enterprises, large and small. Theyare easy to install and reduce the cost ofbackup power for the operator. Dieselgenerators provide power back-up in

emergences to even nuclear power plantsbecause of their reliably, and safely, maintainplant safety.

Even coal-fired power plants also dependupon power generators for their materialshandling.

Diesel generators are very useful in everywalk of life. Generators assure you to obtainmaximum productivity time by keeping allyour essential lighting and your computersystems operating in times of power failures.

Diesel generators are your true companionin odd times. You or your employees staywarm through a freeze or stay cool through aheat wave. You can have sound sleep throughthe whole night knowingly that your securitysystem will still be up and running and all yourdata will still be backed up in the morning.

These power generators give youuninterrupted power to keep all your devicesrunning like normal.

No matter you work in a school, a hospital,a factory, a retail space, a salon, or an officebuilding, these diesel generators keep youoperating with continuous power back-up.

No business can afford to run in losses dueto frequent power failures. These diesel

generators have eased the life of millions withtheir emergency power back-up.

When servers and systems go down,communications are lost, business stops, data islost, workers sit idle, and just about everythingcomes to a halt, diesel generators will come inyour rescue in primary power back-up.

You can enjoy a safe, hassle free,interruption free, clean power technologydiesel generators from the house of diesel-generators.org. These diesel generators areeco-friendly and do not emit smoke in anopen environment. Pollutants like chemicals,residue, tar or various other dangerous by-products that can cause harmful effects onsand, plant, water or plants are fewer in dieselgenerators. Diesel generator sets are durable,reliable and meet most of the powerrequirement in standby or prime powerrequirement. Every scenario is different andrequires a different power solution. The sizeand kind of diesel generator depend on thetype of equipment, appliance, and/orelectrical devices it will be required to run.We will help you guide in the rightdirection when it comes to your purchaseof diesel generator. ■

Affordable emergencyenergy to ease the load

Generators from 11 kVA – 2500 kVA

Powered by a Perkins diesel engine

Available open, canopied or containerised

Manufactured to high British standards

Built to your requirements

Short lead times

Call DiPerk Power Solutions on +44(0)1733 334500 or visit www.diperk.co.uk

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POWERGenerators

43African Review of Business and Technology - March 2012

T here is huge demand for, and extensive use of, standby power generators. Standby power generators are beneficial

to have in commercial places and homes incase an emergency power breakout occurs.There are generators that work on gas, diesel,and new technologies utilising renewablesources such as solar power. Some are hybridpowered, running on car batteries. There arecommercial places such as offices, hospitals,hotels and other places which arecommercially being used require running ongenerators because they either choose to onlysupply electricity to their premises throughgenerators as this source of electricity isreliable and can be cheaper too.

Markets for and availability of standby powerIn countries where there is hardly any problemof electricity load shedding, still there areplaces where standby power generators are

being used. The reason is because the normalrate of electricity cost is more than that used instandby power generators or people keepthese generators in case an emergency arisesand there is power outbreak.

Not all standby power generators run on thesame source such as diesel or petrol while thereare generators which run on natural gas even.The best generators which are more efficientand are long lasting which runs on diesel.Diesel generators are advisable to use wherethere is heavy load to cater and dieselgenerators are less likely to get damaged thangenerators that run on natural gas.

Standby power generators are available indifferent sizes starting from small generatorswhich run on petrol or natural gas. Smallgenerators are useful for domestic purposes.Small generators varying from 2Kv to 5Kv cancarry the load of lights and fans in your homeand you can even switch on your television set.

There are generators which are more than50Kv and go along to 1000Kv. These powergenerators are huge in sizes and can carry theload of different things such as it can runeverything in a house such as television,refrigerators, air conditioners and anythingwhich you can think of to switch on.

Most of these heavy generators run ondiesel and petrol, because these two resourcesare the best to use, and can produce enoughenergy for the generators to deliver sufficientelectricity.

There is an option of ensuring generatorsare able to start automatically when there is abreak in the continuity of electricity. Thisoption helps because whenever electricity issuspended you do not need to leave yourplace to switch on the generator. Nowadays,there are generators which are manufacturedwhich have the option to be set on auto switchon mode. ■

Standby power in use

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Nothing seems to go quite to plan in Africa. Despiteambitious, co-ordinated, international plans to increase theregion’s power generation capacity, progress is slow.

Nowhere is this more clearly illustrated in sub-Saharan Africa,where 590mn people do not have access to grid-connectedelectricity and electrification rates in the south are dismal. Incontrast to Egypt’s installed capacity of 21 GW and electrificationrate of 99.6 per cent, Uganda has a 300MW base and a patheticelectrification rate of just nine per cent.

Matters are coming to a head, as these nations are experiencingeconomic growth rates way ahead of the rest of the world.According to The Economist, seven out of the top ten fastestgrowing economies – Ethiopia, Mozambique, Tanzania, Congo,Ghana, Zambia and Nigeria – are located in sub-Saharan Africa.

Mining nations in need of powerMuch of the economic growth is being driven by mining, andmining needs power. Even in relatively prosperous nations, thehigh rate of growth means state utilities are constantly playingcatch-up. The vast, sparsely-populated, desert- and bush-infestednation of Namibia is a prime example. NamPower, the state powerutility, is a tightly-run ship. It notched a profit of US$45mn in 2010and according to managing director Paulinus Shilamba, Namibia isthe only country in sub-Saharan Africa not to suffer from loadshedding. Yet the 100 per cent state owned power generation anddistribution monopoly suffers a significant generation shortfall.NamPower is only 46 per cent self-sufficient in power generation,with imports accounting for the remaining 54 per cent, of which22 per cent is supplied by South African state utility Eskom.

Maximum demand is 511MW, but capacity totals just 415.5MW,including the 249MW Ruacana hydro plant, the 120MW Von Eckcoal plant and two diesel-powered plants of a combined 66.5MW.Furthermore, low water flow in the Kunene River at the Angolanborder has impaired generation at Ruacana, while outages atEskom’s Koeberg nuclear plant near Cape Town have left Namibiaon the brink of blackouts.

Shilamba says Namibia’s power reserve margins will besqueezed perilously tight over the coming year, predicting ashortfall of 300MW by 2015 as the country’s zinc, copper anduranium mining sectors continue to enjoy enviable growth.

NamPower is due to commission an additional 92MW unit at theRuacana hydro plant in March and is conducting a feasibility studyinto an 80-120MW hydro plant at Orange River, but it is desperateto build a baseload, fossil fuel power plant. Plans for a 300MW coal

plant in Walvis Bay have been rejected, however, while anambitious plan to build the integrated Kudu gas-to-power project,involving a floating gas platform 170km offshore and an 800MWCCGT in Oranjemund, requires $2bn, equivalent to 15 per cent ofGDP.

So, in need of a quick fix, NamPower turned to ABB. Whiletechnically not an interconnector due to the converter stationsbeing located solely in one nation, the 950km HVDC Caprivi Linkruns along the curious, narrow Caprivi strip in extreme northeastNamibia. From Zambezi substation, within spitting distance of theZambian border, the 300MW line connects with the Gerussubstation, 300km north of the capital Windhoek.

Capable of reliable powerWhile technically not an interconnector due to the converterstations being located solely in Namibia, the +300MW, 350kVCaprivi Link connects the Zambezi substation near Katima Mulilo,within spitting distance of the Zambian border, with the Gerussubstation near Otjiwarongo, around 300km north of theNamibian capital Windhoek. The link, for which constructionbegan in March 2007, also connects to the 220kV HVAC

NamibiaPOWER

44 African Review of Business and Technology - March 2012

Progress withNamibian powerNamPower is a tightly-run ship: profitable and efficient - no wonderNamibia is the only country in sub-Saharan Africa not to suffer from loadshedding

Bird's-eye view of the Zambezi substationof the Caprivi Link (Photo: ABB)

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transmission line from the Victoria Falls inZambia inaugurated in 2008. The aim ofthe Caprivi Link is to ensure reliable powertransfer capability between the east andwest of the Southern African Power Pool(SAPP). It is also the first electricalconnection between the Caprivi region ofNamibia and the rest of the country, and isable to supply power to the region ifnormal supplies from Zambia aredisrupted. Larger islanded parts of theNamibian and Zambian grids can also besupplied by the link, which maintainsfrequency control and thereby avoidspower outages.

The Caprivi Link may be regarded assomewhat of an oddity, however. Ratherthan opting for cheaper HVAC or traditionalHVDC, NamPower has opted to utilise ABB’sHDVC Light, the Swiss firm’s brand namefor HVDC with voltage source correction(VSC). HVDC Light is usually the reserve ofunderground or subsea links of far shorterdistances, and as such it is ABB’s firstinstallation built with overhead lines. At350kV, it has also the highest operating

POWERNamibia

45African Review of Business and Technology - March 2012

Caprivi Link Interconnector Gerus HVDC Light station, situatedin central Namibia AC filter switchyard (Photo: ABB)

+27 11 792 2803 | www.zest.co.za

The Caprivi Linkensures reliable power

transfer capabilitybetween the east andwest of the Southern

African Power Pool - itis also the first

electrical connectionbetween Caprivi andthe rest of Namibia”

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voltage HVDC Light system and at 950km,the longest system currently in operation.

Commissioned in June 2010, the CapriviLink was jointly funded by NamPower, theEuropean Investment Bank, the FrenchDevelopment Bank and the GermanDevelopment Agency (KwF). Of the totalN$3.2bn ($391mn) cost, $180mn wasbooked by ABB.

The decision to use HVDC Light wasmade because the AC networks connectingwith the HVDC Light converter stations areextremely weak at both ends, with short-circuit power levels of around 300 MVA andlong AC lines connecting to remotegeneration stations. As a result, the ACnetworks are exposed to a risk of 50Hzresonance. Instead of using traditionalfeedback active power control, frequencycontrol, and power runback systems asinstalled in other HVDC Light projects suchas the Finland-Estonia Estlink project, adirect voltage and frequency control is

deployed via ABB’s turn-on/turn-offinsulated gate bipolar transistors (IGBT)power semiconductors.

Functionality for stabilityAccording to Manfred Manchen,NamPower’s director of power systemstudies, the basic insulation levels, whichare at 350kV DC, compare quite closelywith those at 400kV AC, with the result thatthe assembly configuration and insulatorsused for the project are identical to thosespecified for standard 400kV AC linedesigns.

In this design, without any feedbackcontrol loop, the HVDC Light systemautomatically changes the active powerneeded to keep power balance within theislanded grid so the frequency is stabilised,automatically changing the reactive powerneeded to keep the AC voltage at thedesired level. The VSC functionality hasproved to be an effective tool to maintain

grid stability, says Manchen. Duringcommissioning of the link, an AC breakerfailure occurred in the Zambian grid at atime when

50MW was being exported from Zambiato Namibia, resulting in a frequency drop inthe Zambia grid of 4Hz.

Caprivi Link Interconnector Gerus HVDC Lightstation, situated in central Namibia. Spare convertertransformer (Photo: ABB)

NamibiaPOWER

46 African Review of Business and Technology - March 2012

Namibia’s powerreserve margins will be squeezed

perilously tight, witha shortfall of

300MW predicted as zinc, copper

and uranium mining sectors

continue to grow”

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The HVDC Light system identified thecritical situation and quickly changedpower flow from exporting 50MW from theZambezi substation to importing 60MWfrom Gerus. Thanks to this action theZambian grid frequency recoveredimmediately to 50Hz and a blackout wasavoided.

On an occasion when 80MW was beingexported from Namibia to Zambia, anoverload protection tripped a 220kV line inNamPower’s 220kV buszone, which led to asudden island condition in the Namibiangrid. The sudden outage of the line led to a

POWERNamibia

47African Review of Business and Technology - March 2012

WHEN YOUR MISSION IS MAKING MEDICINES THAT SAVE LIVES, FAILURE’S NOT AN OPTION. ESPECIALLY POWER FAILURE.

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MEDIUM VOLTAGE | STANDARD AND REMOTE RADIATORS | PACKAGING | CONTROLS

Call us at +33 149178300, e-mail [email protected], or check out KohlerPower.com

KOHLER®, ON™ and the color green are trademarks of Kohler Co.

Tests are performed, results compiled and production lines roll.

Every day, a leading U.S. pharmaceuticals innovator makes the

products that treat serious and life-threatening medical conditions.

Loss of power for even a short time could cost a production

run … and hope for those who need help now. For the health

of this company and its customers, KOHLER backup power

solutions are the best medicine. With KOHLER, the power stays

on because the people behind the products are on. Always.

You can’t make breakthroughs in medicine if you’ve got

breakdowns in power. Which is why so many people trust

KOHLER to come through. Without fail.

Tony Arroyo of Kohler prescribed two 2,000 kW

KOHLER® generators and KOHLER switchgear

to protect the productivity of a major

pharmaceuticals maker.

Map of the Caprivi Link Interconnector betweenZambia and Namibia (Source: ABB)

NamPower is due to commission a

92MW unit at theRuacana hydro plant

and is conducting astudy into an 80-

120MW hydro plantat Orange River”

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NamibiaPOWER

48

large frequency dip in the Namibian grid. The Gerus substation immediately

reduced the power exporting from 80MWto almost zero and automatically switchedfrom DC voltage control mode to voltageand frequency stabilisation control. TheZambezi substation then switched fromtracking the power order to DC voltagecontrol. About one second after thecontingency, says Manchen, the Namibiangrid had restored stable AC voltage in bothfrequency and magnitude.

Substation situationsThe link has not been without problems. Ithas been plagued by rats, for which dozensof traps have been laid at both the Gerusand Zambezi substations. “They’ve taken aliking to the fibre-optic cable insulation,”explains Manchen. “They ate so much of itthat we’ve had to use a different, less tastytype of cable. There are some things thatyou just can’t plan ahead for!”

Rodent issues aside, the link is not usedto its full potential. Power flow is only one-way and the link significantlyunder-utilised. Due to the weakness of theAC grid in Zambia, only 50MW is beingtransmitted, mostly hydropower from theVictoria Falls, representing just one-sixthof the link’s 300MW capacity.

The link is marketed as a key southernAfrican interconnector, but that will onlybe true once Phase II is commissioned.Phase I, commissioned in 2010, is a+300MW monopole link operated withparallel DC lines and earth return toreduce line losses.

Phase II would consist of upgrading theconverter stations at Zambezi and Gerussubstations to a ±600MW bipole link withzero ground current. NamPower wouldalso have to strengthen its AC grid via a280km, 400kV line from Gerus to the Auassubstation, which serves Windhoek.

NamPower is in negotiations with Eskomand Zambia to build Phase II, but theproject has an indefinite timeline, andestimates put the commission date at 2016at the earliest.

Another key element of Phase II is theneed for a 320kV link between Zambia’sVictoria Falls and the Hwange coal plant inZimbabwe, for which NamPower hasinvested in a $40mn repowering in returnfor 150MW of power capacity for five years.

The Caprivi Link will thus remain a usefultool to maintain grid stability and importZambian power. However, at least untilPhase II is commissioned, its designatedfunction as a two-way interconnector tofacilitate power trading will be severelylimited. ■

Caprivi Link Interconnector Gerus HVDC Lightstation, situated in central Namibia. Surge arrestercolumns in AC hall. Photo ABB.

African Review of Business and Technology - March 2012

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S08 ATR March 2012 Report Power 02_Layout 1 21/02/2012 16:22 Page 49

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NamibiaPOWER

50 African Review of Business and Technology - March 2012

Namibia's bright prospectsThe Namibian economy took aknock in 2009, but rebounded in2010 and was already back onto along-term growth track of aroundfour per cent in 2011. Recovery inthe gem-grade diamond market waswelcome to capital-intensive alluvialoperators. Now, the global future ofnuclear power is under a bit of acloud, but international investors inuranium - this is currently the world'sfourth-largest exporter - expect Namibia's long-term prospects to bounceback sooner than most. Partly this is because those excellent road and powerfacilities make production costs for a given grade of product significantlylower than elsewhere. However, in natural gas and other forms of energy, the situation is not sorosy. Proven reserves in excess of 60bn cu m are known to be there in theoffshore Kudu field – that's roughly the same as Bahrain's in the energy-richGulf – but piping this ashore and making good use of it within the borderswill be a very costly undertaking. Meanwhile neighbouring Angola, withmuch more gas available but also a very healthy OPEC-regulated oil incometo pay for it all is investing in the very costly facilities needed to export naturalgas in liquefied (LNG) form.Acutely aware of the country’s economy's heavy reliance on mining ofuranium, diamonds, and other valuable solids, Namibia's Investment Centre(1)is keen to promote foriegn direct investment (FDI) in multiple sectors. Currentlythe principle beneficiaries are not only energy, but also agri-business, fishfarming, energy development, infrastructure, manufacturing, services andtourism.

The African Airlines Association (AFRAA) has launched a joint fuelpurchase programme for nine of its member airlines, following theconclusion of evaluation of tender bids received from a number of fuelcompanies. The airlines participating in the current Joint Fuel PurchaseProject are: Air Malawi, Air Namibia, Air Seychelles, Ethiopian Airlines,Kenya Airways, LAM Mozambique Airlines, Precision Air, Rwandair andTAAG Angola Airlines.The process which began in 2011 with the setting up of an AFRAA JointFuel Steering Committee chaired by Eng. Chris Oanda of Kenya Airwaysand with Mr. Yemane Fitwi of Ethiopian Airlines as his deputy, sent outtenders to Jet A1 fuel suppliers serving various airports worldwide.

Received bids were analysed by a technical team comprised ofparticipating airlines and the AFRAA Secretariat and two rounds ofnegotiations held with all suppliers in a process described by theChairman as “transparent and above board.”Launching the Joint Fuel Purchase programme, the Group FinanceDirector of Kenya Airways, Alex Mbugua noted that the total volume offuel to be procured by the nine airlines across their networks throughthis joint initiative will be approximately 700mn litres valued at aroundUS$1.5bn. He said this initial phase of the project involves only nine ofAFRAA’s 32 member airlines and is confident that subsequent tenderswill involve more airlines and more volumes.Though the negotiations were done jointly, contracting will be doneby individual airlines with the successful fuel companies at the variouslocations. The contracts implementation dates will vary, with someairlines starting to purchase fuel under the negotiated terms in February2012, according to the Chairman. All contracts will however end inDecember 2012 and replaced by new contracts for a full calendar yearin 2013 (and subsequent years) following another bidding, evaluation,negotiation and awarding process to be carried out during the courseof this year.The Secretary General of AFRAA, Dr. Elijah Chingosho applauded therole played by the CEOs of the participating airlines in the success ofthis project. He said, “The joint fuel purchase project was endorsed atthe highest level in each airline by the CEOs who individually signed ajoint MoU and Letters of Commitment to work together.”The Committee’s operations are guided by a legal framework andanchored on the principles of transparency, fairness and quality servicedelivery, according to the Secretary General.

Namibia seeks investment for developmentof infrastructure (Photo: Rui Ornelas)

AFRAA launches joint fuel purchase project

Seated (L-R) at the Joint Fuel Purchase Project launch: Mr. Naicker, TAAG AngolaAirlines, Mr. Fitwi, Ethiopian Airlines, Mr. Mbugua, Kenya Airways, Eng. Oanda, KenyaAirways, Dr. Chingosho, AFRAA and Mrs. Indetie, AFRAA. Behind are the otherparticipating airlines and AFRAA Commercial Director

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The 6th International PowderMetallurgy Conference & Exhibition,organised by the Turkish Powder

Metallurgy Association, Gazi University andthe Middle East Technical University, tookplace in Ankara, at the Middle EastTechnical University in October 2011.

Ankara is the capital of Turkey and thecountry’s second largest city after Istanbul,and was host to the 6th InternationalPowder Metallurgy Conference andExhibition in Turkey.

Some 200 abstracts were submitted, outof which 90 oral and 60 posterpresentations were accepted. Furthermore,35 Turkish and international companies anduniversities presented their products andtheir research results in the conferenceexhibition. Delegates from countries allover the world attended the conference.

PM markets, PM trendsThe opening ceremony began with aTurkish classical concert. After this Prof. Dr.Mehmet Türker, President of the TurkishPowder Metallurgy Association, gave abroad overview of the Turkish economy, thePM market and its trends.

Turkey is becoming an industrialisedcountry with US$54bn in exports fromJanuary to May 2011. For decades thelargest export sector was the textileindustry, however the vehicle industry hasnow succeeded this with sales in 2011 of$7.15bn followed by textiles at $5.1bn,chemicals at $2.71bn, and electric &electronic goods at $2.3bn.

Turkey controls 40 per cent of the world’smarble reserves (7.5bn m3) and has a widerange of colours (650 types of stone and270 different colours). In the last twentyyears the stone cutting capacity in Turkeyhas increased by 20 per cent annually.Some 500,000 tons of stone were processedin 1990, while more than 11.5mn tons of

stone were processed in 2010.Turkey exported $2.5bn of marble in

2010, accounting for 10 per cent of theworld’s $25bn stone market. Turkey is oneof the top four countries in the word’s stonemarket, the others being Italy, China andSpain. The target for the year 2015 is morethan $4bn.

PM industry in Turkey, and internationallyIron powder consumed in Turkey in 2010was about 11,000 tons and the marketvalue of total PM production was estimatedas €270mn. Automotive parts and diamondcutting tools share the market. PMcomponents are used in a variety ofmarkets, with the automotive industrybeing the predominant one, consumingapproximately 70 per cent of the ferrousproducts of the annual production.

The average US made vehicle in 2010contained an estimated amount of 19 kg ofPM parts, whereas it was 8.5 kg forEuropean vehicles. In 2010, 1,095,000vehicles were produced in Turkey. Turkey isthe 16th country in the world and fifth inEurope in vehicle production. Most of theTurkish PM companies are exporting over60 per cent of their production. The goal ofTurkey should be over 50,000 tons of ironpowder consumption and $1.5bn marketvalue before the year 2023.

At the conferenceThe technical programme included thefollowing invited lectures:● Recent Trends in Powder Metallurgy in

EuropeIngo Cremer, President of the EPMA.

● Metal Powder Injection Molding –Processing and DesignProf. Dr. Randall German, San Diego State University.

● Simulation and Modeling of the PowderInjection Moulding

Prof. Dr. Seong Jin Park, Pohang University, South Korea.

● High Velocity Oxy-Fuel Coating and LaserTreatment of Metallic Surface withPresence of Powder FilmsProf. Dr. Bekir Sami Yılbaş, King FahdUniversity of Petroleum and Minerals.

● Bahar Bayar, from Mate Consulting, alsopresented the latest developments andtrends in the Chinese PM market.

The large number of attendees at theconference shows a rapid expansion of thePM industry, and it is led by Turkey.Compared to the last conference in 2008,there were double the amount of exhibitorsand delegates attending this year’s event. ■

Bahar Bayar, Turkey Representative at Mate Consulting Michael Godin, President of Mate Consulting

MetallurgyMANUFACTURING

52

Recent trendsin powder metallurgyObservations made at the 6th International Powder Metallurgy Conference & Exhibition

African Review of Business and Technology - March 2012

100 years ofstainless steelThe global stainless steel community ismarking a century since stainless steelswere first created, patented and produced.Over that time, stainless steel has grown tobe integral to the modern world.

The International Stainless Steel Forum(ISSF) has launched a website atwww.stainlesssteelcentenary.info on thehistory of stainless steel and its innovativeapplications. As well as the list ofcelebratory events, this website featuresfacts about stainless steel, images ofstainless steel applications from the pastcentury, and a detailed history. A travellingexhibition about stainless steel will belaunched in Beijing, China on 15 May 2012.After Beijing, the exhibition will movearound the world.

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S09 ATR March 2012 Report Manufacturing_Layout 1 21/02/2012 16:30 Page 53

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At a summit held recently in theEthiopian capital, Addis Ababa, AfricanHeads of State approved the

implementation of the Programme forInfrastructure Development in Africa (PIDA), amulti-billion dollar initiative that will runthrough 2040. The approval follows a studyundertaken by the African Union (AU), theAfrican Development Bank (AfDB) and theNew Partnership for African Development(NEPAD) Planning and Coordination Agency.Endorsement by the AU summit will now befollowed by more detailed planning on theactual implementation of PIDA.

Project proposalsPIDA’s main goal is to accelerate the deliveryof Africa’s current and future regional andcontinental infrastructure projects intransport, energy, information andtelecommunications technologies, as wellas trans-boundary waterways. Its projectsare designed to support Africa’s regionaland continental integration. PIDA’s longerterm goal is to enhance the physicalintegration of Africa, boost intra-Africantrade, and raise African competitiveness inthe global economy.

PIDA sets out short-term goals to beachieved by 2020, medium-term goals to beachieved by 2030, and the long term ones by2040. It is based on expert projections thatAfrican countries will grow by an average ofsix per cent a year until 2040, driven by asurging population, increasing levels ofeducation and technology absorption. Thisimplies that, over 30 years, the GDP of Africancountries will multiply six-fold. Thiscontinuing growth and prosperity will swellthe demand for infrastructure.

In the shorter term, PIDA will focus on itsPriority Action Plan. This dwells on fifty oneregional and continental infrastructureprojects to be implemented by 2020. Theseprojects are designed to meet Africa’s more

immediate regional and continentalinfrastructure needs.

Developing the undevelopedPIDA is also expected to play a critical role inreducing Africa’s infrastructure deficit. Thecontinent’s infrastructure remains the leastdeveloped in the world. It is estimated thatpoor infrastructure alone saps the Africa oftwo per cent in economic growth every year.

Because of poor transport networks,especially for landlocked countries, transportcosts in Africa are among the highest in theworld. This hampers not only intra-regionaltrade but also the continent’s ability tocompete in the international markets. Bothare critical to Africa’s growth. This poorinfrastructure also has a negative impact onpossible inflows of Foreign Direct Investment.Further, only 30 per cent of the Africanpopulation has access to electricity,compared to 70 to 90 per cent in other partsof the developing world. Only 18 per cent ofthe continent’s irrigation potential isexploited, yet many countries on thecontinent are net food importers.

Africa has a telecommunicationspenetration rate of a meagre six per cent. Thiscompares to an average of 40 per cent forother geographical zones. Rail coverage issparse and sometimes non-existent. Africanports are also often uncompetitive whileinland waterways are hardly exploited fortrade and travel.

Speaking at the African Union summit,Aboubakari Baba Moussa, the African UnionCommission’s director of infrastructure andenergy, said PIDA had been developedthrough consultation and consensusdesigned to galvanise all stakeholders,including African states and their regionaleconomic communities.

“This consensus, clarity of purpose andclear roadmap on the way ahead, are a criticalfoundation for joint action and success,”

Moussa said. “We have full confidence theprogramme will attain its goals. The timing ofthis launch is also most appropriate. There isnow a global awareness of the need to closeAfrica’s infrastructure gap, if the continent isto make significant headway.”

Alex Rugamba, the African DevelopmentBank’s director for NEPAD, regionalintegration and trade, said PIDA’s goals wereambitious but attainable. He said theprogramme would also yieldunprecedented benefits.

“Some of benefits we foresee include adoubling of intra-African trade from thecurrent levels of 11 to 12 per cent. PIDA willalso increase Africa’s share of world trade byat least twice today’s share of two per cent.

Rugamba added, “We also foresee thecreation of up to 15mn new jobs from theconstruction, operation and maintenance ofPIDA projects. Many more millions of jobs willalso be created indirectly through theincreased economic activity that will resultfrom PIDA projects.” He stressed that PIDAand the African Development Bank were inno doubt about the critical role PIDA will playin Africa’s economic development. ■

ProjectsCONSTRUCTION

54

Continental prospectsfor constructionHow a new multistate initiative is set to play a critical role in reducingAfrica’s infrastructure deficit

The African Union conference centre and officecomplex (AUCC) in Addis Ababa, the AU's new HQ,

inaugurated at the 18th AU summit in January 2012(Photo: Maria Dyveke Styve)

African Review of Business and Technology - March 2012

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Another cold front hit SA with a vengeance recently, andoffice workers around the country can be found to betinkering with their individual heating/air-conditioning

units, urging more heat of them. News bulletins inform SouthAfricans, in no uncertain terms, that energy is in short supply, whilerumours of load shedding just will not subside. If you, as a small tomedium-sized business, have not considered a holistic energystrategy, there is no better time to do so than now.

“A widespread myth surrounding energy efficiency strategies isthat an organisation’s role starts and ends with exchanging oldlight bulbs with energy efficient versions,” says Asanda Makanda,MD of energy services company, MaNoa. “This couldn’t be furtherfrom the truth.”

“Budgeting for a holistic energy strategy is the natural startingpoint,” says Makanda. “Ideally, it should be built into anorganisation’s building plans from the get go, in order to entrenchthe need for energy efficient behaviour.”

With the introduction of the SANS 204 standards, a building’senergy efficiency has never before been as important as it is now,“and the time to consider your energy strategy is when you arebuilding the actual structure, or moving premises,” she advises.SANS 204 outlines a code for energy efficiency, in order to limitenergy consumption and to ensure that we do not run out of baseelectricity-generating capacity.

A well-designed, well-budgeted energy efficiency strategyprovides clear and practical guidelines for the implementation ofefficient practices allowing for the immediate implementation oflow-cost and no-cost interventions, as well as some higher-costmeasures with short payback periods, notes Makanda. She addsthat every business, especially large organisations, wouldundoubtedly benefit by having an energy policy and strategy forits portfolio of buildings/companies.

Where to start Implementing an energy strategy begins with undertaking afeasibility study, which involves a thorough audit of the business’senergy usage and requirements. After that, an accurate budget canbe suggested intended to assist the business to begin to savefuture losses as a result of energy expenditure and taxes.

It is vital that both technical personnel and the business’sleadership agree on the process at that point, ensuring that aholistic solution is ultimately implemented – one that is best forthe concern at hand, according to Makanda.

“An energy strategy helps ensure that an organisation is notwasting money, is reducing its carbon footprint and is benefitingfrom sustained financial savings,” Makanda explains. It involvescreating a complete solution when taking into account every

instance of energy usage. A holistic energy policy would includeaudits and suggestions regarding the following areas of business,to name a few: ● Legal aspects regarding energy.● Cost of supply study - wires/network costing and pricing.● Risk analysis.● Electricity market development and positioning in evolving

market.● Tariff analysis, design and development.

“The ultimate aim in SA is to create energy strategies forsustainable development that are actually able to be implementedimmediately, and which will have a noticeable impact on theenvironment,” concludes Makanda.

A highly innovative, new-generation energy services company;MaNoa is saving organisations money and ensuring itssustainability by helping to improve energy efficiency and planenergy usage. For more information, please visit www.manoa.co.za.

Calculating your consumptionTo see how much you could save on your business or domestic bill,try out the MaNoa energy calculator atwww.manoa.co.za/manomator. Simply select icons representingyour electric appliances, lights etc. and we’ll instantly tell you howmuch we think you could save. ■

OfficesCONSTRUCTION

56

Building an energy budgetWhy planning for office environments should include heating and airconditioning as part of a holistic energy strategy

Asanda Makanda, MD of energy services company Manoa

African Review of Business and Technology - March 2012

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Page 58: African Review March 2012

The Dawn Group, a South African manufacturer and distributor ofhardware, sanitaryware, plumbing, kitchen, engineering and civilproducts, teamed up with Lightweight Energy Panels Africa

(LEPA) last year to showcase the advantages of cost effective andsustainable building alternatives to the housing market.

Environmental innovationsLEPA specialises in the manufacture and installation of lightweightenergy panels for residential and commercial construction projects,which are an environmentally friendly and cost effective substitute forindustry standard bricks and cement. LEPA successfully constructedtwo 80m2 semi-detached double storey houses in Blue Downs, CapeTown, as part of the Legacy project, which was established in July 2011to showcase innovative housing solutions for the construction sector.

Dawn brands executive Bob Haynes has observed that followingLEPA’s successful completion of the homes, The Dawn Group providedall piping solutions and sanitaryware for the prototype units from itsrelevant divisions. These included taps from Cobra and Isca, bathroomproducts from Vaal, Libra and Plexicor and the cost effective Plomyclickpush-fit pipe connection systems from DPI Plastics - a leadingmanufacturer of water reticulation, drainage and pipe-fitting systems.

“The Legacy Project showcases the use of alternative technologies tocreate eco-friendly and vibrant communities. The Dawn Group iscommitted to being recognised as a leading supplier of affordable,high quality fittings for the home and, as a result, places an emphasison the importance of community schemes such as the Legacy Project,”he said.

LEPA CEO Robert O’ Connor noted that the Legacy project,established through a partnership between the City of Cape Town, theNational Department of Human Settlements, the ProvincialDepartment of Human Settlements and the National Association ofHome Builders, serves as the ideal platform to showcase innovativebuilding alternatives to industry standard brick and cement products.

“LEPA was able to fully construct the show homes in only 23 days, asopposed to the traditional brick laying process, which takes, onaverage, nine weeks to complete a project of a similar size. In additionto significant time savings, low energy panels also provide a 40 percent saving on labour costs since they are quick and easy to install,” heexplains. “What’s more, low energy panels cost roughly R4,000[US$516] per m2, compared to R7,500 per m2 for bricks and do, as aresult, provide homeowners with the opportunity to save a substantialamount of money, without compromising quality or safety whenbuilding the home of their dreams.”

O’ Connor highlights the fact that LEPA panels are produced using apatented manufacturing process.

“The composition of LEPA panels consist of a 60 per cent specialcement composition, a 30 per cent EPS (expanded polystyrene)mixture and a 10 per cent KFC mixture, which is made up of a numberof unique stabilisers and fast setting glues, to name a few of thecomponents. “This results in an energy efficient product which hasexcellent insulation properties, retaining 96 per cent of all energyreleased, in addition to providing improved shock absorptioncapabilities, as well as being fire retardant and water resilient.”

O’ Connor stresses that LEPA does not target low cost or RDP housingprojects, but rather serves as an affordable construction solution,incorporating lower-middle to upper income housing and light,commercial projects.

“Bricks have become recognised and accepted as the industrystandard construction product in the South African housing market fordecades and it remains a challenge to change the mindset of anindustry that is set in its ways. The Legacy Project serves as an idealplatform to educate the market on viable and sustainable alternatives,”he continues.

Looking to the future, O’ Connor notes that the Department ofMinerals and Energy will be enforcing the SANS 204 standard as amandatory prerequisite for all new buildings in South Africa, as part ofits ‘Clean Energy Efficiency Strategy’. “In lieu of the looming globalenergy crisis, the SANS 204 standard is aimed at promoting the use ofalternative energy and the reduction of conventional energyconsumption in all buildings, including residential developments. LEPAis fully compliant with SANS 204, placing it well ahead of thecompetition.” ■

HousingCONSTRUCTION

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Showcasing sustainablebuilding alternativesThe benefits of radical approaches to construction projects have beenshowcased in a joint initiative between The Dawn Group and LEPA

The projects showcase technologies to create eco-friendly and vibrant communities

African Review of Business and Technology - March 2012

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S11 ATR March 2012 Report Construction 02_Layout 1 21/02/2012 16:48 Page 59

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Forget Europe, Japan, even slowingChina, the experts are saying. The placeto watch in construction in 2012 is

undoubtedly Africa. Already the plant andequipment import trade is worth anestimated US$1bn-plus each year, that’s allsectors including the thriving used/auctionmarket which is increasingly fed by specialistsuppliers in the Arabian Gulf.

A real sign of the times is that MesseMünchen, organisers of the huge BAUMAinternational trade fair (next edition April2013), has just announced that it will beopening its first African show inJohannesburg, scheduled for Septembernext year. Supported by AEM, the US’sAssociation of Equipment Manufacturers,this is a machinery-promoting business thatonly goes where the prospects are real.

Readers will have to wait for this excitingdevelopment however; 2012’s really bigconstruction trade event will be Intermat inParis from 16-21 April.

The trade is excited about Africa, especiallysub-Saharan, for some very good reasons.The first of course is all that underdevelopedoil and gas. International prices are well offtheir peak but they are holding up finenevertheless, a sustained and major advanceon just six months ago in a world which looksincreasingly bleak, prospects-wise.

So economic growth is being predicted forAngola this year of more than 10 per cent.Nigeria should easily pass six, and that a littlebehind Ghana with its newly developedoffshore reserves. Kenya, Uganda andEthiopia are not far behind. And thesustainable soft commodities trades thatunderlie most of this are doing well,especially cocoa. Which is why Côte d’Ivoireis expected to grow by more than eight fullpoints this year. These sparkling forecastsfrom the market players are right in line with

what the key international institutions likethe IMF and World Bank have beenconsistently saying recently, even thoughthey downgraded their predictions a fewweeks ago. The WB forecast growth fordeveloping countries as a whole of 5.4 percent this year; Euro-area ones are expectedto slow down. Major commodities exportersin Africa should do even better whileimporters of basic softs like maize could seetheir bills fall.

In energy, the oil market looks sound rightthe way through 2015, although with gasthere are some problems looming:oversupply in the Western world, but not theFar East where Africa’s liquefied cargoes areincreasingly heading.

Rapid economic growth“Over the past decade,” said the influentialLondon weekly Economist on 3 December,“six of the world’s ten fastest-growingcountries were African.” That says it all andexplains why construction equipmentsuppliers are flocking to the continent rightnow. Nearly all the resources are here all rightbut just about everything that is needed todevelop them has got to be either extended,improved or built from scratch.

That means roads and rail lines, ports andharbours, factories to supply both buildingmaterials and the rapidly emerging middleclass, and housing, power, water andsanitation facilities of all sorts. And bothnew-build schools and healthcare facilities,too. Only the telecoms providers seem tohave kept ahead.

And that all means constructionequipment in large quantities. Said the MDof one of the Gulf’s fastest-growingmachinery suppliers, Arabian JerusalemEquipment Trading Co, recently: “All ourmachineries are selling really well …We have

registered a 30 per cent increase in our netsales to the African continent.

“The rapid growth in the overall economyof many African countries has accentuatedthe need for improving infrastructure.Governments, development authorities andeven companies have begun investing ininfrastructure development projects…Moreover, many African governments haveinvested heavily in irrigation and miningprojects across the continent.

“All these factors have contributedimmensely to the increased use ofconstruction machinery.”

Added the sales manager of another,World Wide Auctioneers in Dubai: “Manyconstruction majors working on Africanprojects have really opened the markets inAfrica for us…We are getting steady ordersfrom these companies to supply machineryand equipment for their projects in Africa.”

Both are quoted on the current home pageof business news specialist Abdul ZahirBashir General Trading, who add, “The boomhas started a rippling effect touching variousother spheres of activity that are not directlyrelated to the construction industry.” AZBspecifically highlights the strong markets forexcavators, backhoes, compactors, concretemixers and rebar bending/cutting machines.

The same positive message is coming fromthe foreign direct investment (FDI) ‘industry’,the famed ‘men in suits’. Last month’s annualUNCTAD investment-flows survey calculatedthat this rose by a massive 17 per centglobally last year, despite the clear signs thatwere emerging about serious budgetarytrouble in Europe, the slowing down ofgrowth in China and poor stock marketreturns just about everywhere.

Incoming FDI into Africa suffered from allthis, but the UN agency pointed out that themain reason for incoming flows into Africa

BusinessCONSTRUCTION

60

Construction comesout on top in 2012Sub-Saharan Africa is the place to be in construction these days. Highcocoa prices, a strong oil sector and commendable performance in FDIcontributing to better business prospects

African Review of Business and Technology - March 2012

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62 African Review of Business and Technology - March 2012

being weak were that Egypt, Libya andTunisia - the three countries most heavilyaffected by the so-called ‘Arab Spring’ - allsaw inevitable sharp declines in receipt ofFDI. This is unlikely to improve until futuredirections become clear.

Strip these inevitable temporary non-runners out (Egypt’s combinedCairo/Alexandria markets suffered a near-50per cent fall last year, a tumble only exceededby Greece and Venezuela) and the rest ofAfrica, SSA especially, continued to doastonishingly well.

Trading trendsFor a construction trade insider’s view wechecked on the current AEM website, whichalways provides a comprehensive guide towhat’s going on in the global constructionmachinery trades. They cover agriculturalequipment, too. At the end of last year theAmerican industry, which is represented herein Africa by such home-grown giants asCaterpillar and J I Case, as well as foreign‘transplants’ like Komatsu, commented on anastonishing 10 per cent increase inworldwide sales last year.

The World Bank at more or less the sametime reported general export-trade growth

of just 6.6 per cent overall (little more thanhalf the 2010 rate), so it’s clear thatmechanisation and the industries likeconstruction equipment that serve it aredoing particularly well.

What’s even more surprising is that if NorthAmerican sales are taken away from thisaggregate figure ‘rest-of-world’ sales increasewas a massive 14.7 per cent in invoiced terms- which equates to “continued strength inexport demand” as they laconically sum it up.

Usually the AEM’s announcements breakthis down to include an African component,but we couldn’t find this in last December’spublicly-available highlights of the annualBusiness Outlook Survey. But it’s undoubtedlyan important good-news contributor.

And the even better prospect is that thisdouble-figure growth in export markets forconstruction equipment of all types - AEMsurveys more than 40 kinds, includingcomponents and accessories - is expected tocontinue right through 2014. Well, ‘down’ to9.5 per cent in that year, to be precise.

Shippers of contractors’ plant to othermarkets - ailing Europe, slowing India andthe uncertain Arabian Gulf for example,would sacrifice a lot to have a rosy future likethat to look forward to.

New business developmentsThere’s lots more behind all this good newsabout construction, of course. The beddingdown of Kenya’s new constitution -developments in this one country arealways regarded as a bellwether for Africaas a whole in the boardrooms that decidethe direction of FDI flows - the generalmarch of democratic and good governancetrends across the sub-Saharan states, thesuccess of the Competiveness and otherobjective regional Indices, even the positiveimage presented by the celebrations overthe ANC’s centenary in South Africa. Theyhave all helped. But most of all is the factthat Africa as a whole, and the sub-Saharanstates in particular, now look as they areregions that are really going somewhere.

So is the rest of the world, but in manycases it is not anywhere that mosteconomic authorities really want to be(debt-bound southern Europe), or needinga new business model (arguably, over-stretched China).

And it will be the suppliers ofconstruction machinery, all sizes, all sorts,that keep it all going. African Review will bethere to celebrate it, and to keep youinformed about the latest industry news. ■

BusinessCONSTRUCTION

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C0NSTRUCTIONFiera Milano

63African Review of Business and Technology - March 2012

Building services andconstruction on showFrom 15-18 August 2012, at the Expo Centre, Nasrec, in Johannesburg,South Africa, the Star Interbuild Africa 2012 exhibition and co-locatingshows are set to deliver value and quality for all stakeholders involved,providing exhibitors with opportunities to meet new and existingcustomers, launch new products, generate sales, enhance companyimage and build brand awareness, interact with distributors, andgain competitive insight. The Star Interbuild Africa 2012 is recognised as a long-standing andhighly successful building services and construction exhibition andis the biggest trade event of its kind in Africa, fully highlighting theimportance of this sector of industry and its positive impact on theSA economy - communicating a strong message to both industryplayers and the public through its organisation and presentation. The Star Interbuild Africa will focus on the latest innovations, productsand developments across the broad sectors of the building servicesand construction arena.The exhibition will incorporate all aspects of interior and exteriorbuilding design and products across residential, commercial andindustrial developments in addition to a wide spectrum of thehardware and allied products industries, and a showcase for thewoodworking industry including timber processing, woodworkingmachinery, complementary equipment, finishes and fittings, andfurniture manufacturing supplies.

www.interbuildafrica.co.za

A key event for engineers, designers and manufacturers of machines,plants and industrial systems, the Fiera Milano takes place in Milan,Italy, from 8th to 11th May 2012. The trends in a market that is looking to the future with renewedoptimism and an increasing need for concrete solutions are wellreflected by the novelties of the 2012 edition of Fluidtrans Compomacand Mechanical Power Transmission & Motion Control, the exhibitionsdedicated to systems and solutions for fluid power, mechatronics andmechanical power transmission to be held at the Fiera Milano from8th to 11th May. In Italy these sectors are unquestionably on the upswing: in 2011, thefluid power sector enjoyed double figure growth (Source: Assofluid –national hydraulics production: increase in sales 24.9 per cent, ordersup by 23.6 per cent; national pneumatics production: increase in sales10.6 per cent, orders up by 6.3 per cent), while the power transmissionand motion control sector, despite being far from its 2007 figures,recorded a strong recovery in 2010 (37.2 per cent increase inproduction) driven by deliveries on the home market (+57.3 per cent)(Source: Assiot). According to operators in the sector, industrialautomation also performed well in 2011, with a growth rate estimatedwith due caution at about 15 per cent. Given the positive trend ofexports by OEMs and plant manufacturers, the domestic market shouldhave recouped its pre-crisis positions, returning close to 2008 figures. At Fiera Milano, engineers, designers and machine manufacturersoperating in various sectors of the manufacturing and processindustry will have the opportunity to take part in a renewed eventwith an innovative and integrated approach: direct experience to findadequate solutions for their design needs, discover the latest

technological novelties and meet the leading players in the sector. Infact, the leading companies that signed up over the past few months –Camozzi, Duplomatic, Hawe, Igus, Larga, Rastelli Raccordi, Metalwork,Nadella, OP, Pneumax, Sel-Polimer Kaucuk, Trelleborg and Vesta, toname but a few – have been joined by others such as Hydac, whoreturns after skipping a few editions, Ufi Filters and Serto. Theparticipation of these important companies confirms the trust that theindustry places in the Fluidtrans Compomac and Mechanical PowerTransmission & Motion Control exhibitions.

www.fluidtranscompomac.it

Interest is concentrating on the Applied InnovationAreas that Fluidtrans Compomac and MechanicalPower Transmission & Motion Control will offer

Experience innovation, first-hand

S11 ATR March 2012 Report Construction 02_Layout 1 21/02/2012 17:26 Page 63

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Early in February 2012, the InternationalCouncil on Mining and Metals (ICMM)co-hosted its second annual CEO

session at Investing in African Mining Indabato discuss the common sustainabilitychallenges the industry faces.

Three leading CEOs representing ICMMmember companies - Mark Cutifani(AngloGold Ashanti), André Wilkens (AfricanRainbow Minerals) and Nick Holland (GoldFields) - addressed an audience of over 500delegates in a session moderated by ByronKennedy, Director at Brunswick.

A changing climateThe CEOs discussed the complex range ofsustainability issues facing their companiesfrom an environmental, social andeconomic perspective. They placedparticular emphasis on the top threesustainability issues their organisations facein Africa over the next 20 years.

“Climate change is definitely a priority forour company in terms of sustainability”, saidAndré Wilkens.

“Social upliftment is also a top priority ofours - specifically empowering communities,alleviating poverty and community health.Finally, we see logistics as being anotherextremely important issue, particularly whenwe look at the environmental and economicbenefits of moving from road to railtransportation.”

“In terms of our perspective and prioritiesunder the sustainability umbrella, numberone would be resource nationalisation andnumber two would be communitydevelopment,” said Mark Cutifani.

“The third spot would go to artisanal andsmall scale mining.”

Optimal resource managementNick Holland also highlighted the issue ofresource nationalism.

“It has manifested itself in recent yearswithin Africa and requires a commitment in anumber of areas including investment in localcommunities and the localisation ofemployment.”

In addition, he signalled the safety ofemployees as a top priority in addition toenergy costs and ensuring security of energysupply to the industry.

Stakeholder practicesByron Kennedy encouraged the CEOs tospeak about the challenge of climate change,recognising South Africa as one of the 20biggest emitters of CO2. The panel spokepassionately about their positivecontributions to resolving the climate changeproblem, recognising that the industry cando more.

The panel was the first of two sessionsconvened by ICMM at the 2012 MiningIndaba and highlights the growingintegration of sustainability with mainstreamindustry practices. It was followed by multi-stakeholder discussions, with 200 participantsfrom civil society, government and industry.Dr. Mamphela Ramphele, Chair of Gold Fieldsand Executive Chair of the Letsema Circle,gave a keynote address, which was followedby an interactive panel on how multi-stakeholder initiatives in the mining industrycould contribute to Africa's development -with participation from: Clare Short, Chair,Extractive Industries Transparency Initiative(EITI); Krista Hendry, Executive Director, TheFund for Peace; Monika Weber-Fahr, GlobalBusiness Line Leader, Sustainable BusinessAdvisory Services, International FinanceCorporation (IFC); and Hugh Elliott, Head ofGovernment Relations, Anglo American.

A second panel addressed issuesassociated with mining and conservation,and was steered by: Peter Cunningham,Global Head of Health, Safety, Environment

and Communities, Rio Tinto; Jon Hutton,Director, UNEP World ConservationMonitoring Centre; Morné du Plessis, ChiefExecutive, World Wide Fund for Nature(WWF), South Africa; and Dennis Hosack,Programme Officer - Global Business andBiodiversity Programme, International Unionfor Conservation of Nature (IUCN). ■

Investing in African Mining IndabaMINING

64

Putting sustainability onthe corporate agendaMining CEOs discuss a complex range of issues affecting environmental,social and economic operations at ICMM

African Review of Business and Technology - March 2012

Excavators,loaders, ADTsAt Intermat 2012 in April, Doosan InfracoreConstruction Equipment is launching newcrawler excavators, wheel loaders andarticulated dump trucks (ADTs) speciallydesigned for Middle East and African markets. Replacing the previous SOLAR models, thenew Doosan crawler excavators offer a state-of-the-art design, combining high robustnesswith a number of important newfunctionalities and technical improvements,including the latest Tier 2 engines, new cabsand top quality materials and components,all particularly suited to the specific needsof the Middle East and African markets. Thenew DX225LCA model will form part of theIntermat stand display.

www.doosanequipment.eu

The DX225LCA will be shown at Intermat

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SOLUTIONS

Environment

Petra Solar and Enviromena PowerSystems have committed to an alliance

that enables them to develop solar andsmart grid projects in the Middle East andNorth Africa (MENA). Combining Petra Solar’sinnovative smart energy technology withEnviromena’s expertise in development ofrenewable energy projects in MENA willadvance the growth of solar and smart gridin the region. The partnership furtherdemonstrates Petra Solar’s ongoingcommitment to expanding its businessinternationally, and developing the solar andsmart grid market in the Middle East. “The increasing demand for solar energy andgrid reliability provides a tremendousopportunity for Petra Solar throughout theMiddle East and the world. Collaboratingwith Enviromena, the leading developer ofsolar projects in the Middle East and NorthAfrica, will facilitate the internationalexpansion of our products and businessdevelopment in the region,” said Dr. ShihabKuran, President and CEO of Petra Solar.“Enviromena has an impressive list ofcompleted projects including the Masdar10MW Power Plant and has the largestinstalled capacity of any solar developer inthe Middle East and North Africa.” Petra Solar is the pioneer and market leaderof distributed Smart Solar, an innovativeapproach that couples solar with smart gridtechnology to generate clean, saferenewable energy while making the electricinfrastructure more stable, efficient andenergy independent. The robust platform isscalable to future smart grid applications,including energy efficiency, energy conservationand smart microgrids. This approach buildslarge scale solar in a reliable fashion thatavoids future costs of rebuilding the grid. "Petra Solar's unique technology greatlyexpands our portfolio of photovoltaicsolutions available to the MENA region," saidSami Khoreibi, CEO of Enviromena. "We see alarge market here for distributed solarapplications, particularly where smart gridinitiatives are taking place."

Solar energy partnershipfor smart grid projects

First National Bank (FNB) - one of South Africa's "big four"banks - has been following a strategy to lower its energyconsumption and costs, and improve its eco footprint, fora number of years. However, with its existing chillersreaching end of life, maintenance was becoming expensive(over R1m on the last year) and part replacement wasbecoming increasingly difficult and time consuming. Insimple terms, current efficiencies were being overshadowedby what could be achieved with newer technology. Their topthree requirements for the replacement solution were:that the chillers provide proven energy efficiencies,meet the Montreal Protocol requirements withregards to use of ozone friendly gas (i.e., 134A ratherthan R22 gases), and that there be reputable andreliable local support capabilities. Johnson Controlsand its YMC2 chillers met all these requirements and replaced the bank's existing chillers at itsheadquarters with nine new York Magnetic Centrifugal Chillers (YMC2), with a projected time toROI in just under three and a half years.Johnson Controls Systems & Service have a long standing trusted relationship with FNB who havemade use of York solutions in the past and as such, are confident that the YMC2 chillers will meetall their requirements. Johnson Controls have the feet and expertise on the ground to supportand service the equipment. In fact, Johnson Controls York technicians have been sent on advancedtraining courses on these new chillers to ensure they will meet service level agreements thatJohnson Controls have in place with the client."

Optimised for efficiencyJohnson Controls' YMC2 chillers are 10 per cent more efficient than conventional, variable-speedchillers and include an optimised centrifugal compressor that utilises low temperature, cooling-tower water to save energy. Along with optimal energy efficiency, the YMC2 is also quieter thanany comparable chiller in the market place as magnetic-bearing technology eliminates drivelinevibration and reduces noise at off-design conditions, allowing the YMC2 to be perceived at about50 per cent of the volume as other magnetic-bearing chillers. This chiller furthermore features asustainable design using refrigerant HFC-134a.The chillers will be installed in phases between May and September with expected energy usage

savings of up to 25 per cent. "With power costs leaping up by another25 per cent in the near future, it's going to be crucial to

manage consumption. At Bank City, the chillers accountfor half of all the power consumption, so this is an

important investment in long term costefficiencies - which contributes to the

organisation's overall competitivenessand makes for an even brighter green

eco footprint for our client.

Neil Cameron, GM of JohnsonControls Systems and Solutions,South Africa

African Review of Business and Technology - March 2012

How low temperature, cooling-tower water can save energy

Neil Cameron, GM of Johnson Controls Systems and Solutions, South Africa

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SOLUTIONS

EnvironmentSewer repairs using areliable, no-dig solutionThe Jetvac sewer cleaningcompany in South Africa wastasked with repairing multipledefects in a four-kilometre-longsewer pipe in Cape Town. Usingconventional technology wouldmean installing a cured-in-placepipe lining between each set ofmanholes along the pipe – at a costthat would bust the annual budgetfor such work several times over.Instead, Trelleborg’s eprosDrainPacker method offered amuch more flexible and cost-effective solution. “We were able to apply patches ofup to five meters to more than 70defects,” says Peter Salomons,Director of Jetvac, “and all withinone year’s budget.”The epros DrainPacker systemconsists of two products, a silicateresin and a fibreglass sheet, whichcombine to make sectional repairsof damaged pipes and sewers. Theresin is applied to both sides of thesheet, and once the sheet isimpregnated and folded into threelayers, it is rolled around aninflatable packer. The packer islowered into the sewer pipe andpulled into position, where itexpands, pressing the patch againstthe pipe wall. The resin cures,creating a strong and impermeablebond.Time is of the essence. The patchmust be in place before the resinstarts to cure, and the hotter theambient temperature, the fasterthe products react. “The heat in Cape Town was aproblem, so we specified a silicateresin with a longer reaction time,”says Andreas Bichler, TechnicalLeader with Trelleborg in Duisburg,

Germany. Bichler, who alsosupervised Jetvac’s firstinstallations, points out thatTrelleborg provides a uniqueservice: “We sell the complete system,including the packer and allaccessories, and provide in-housetraining as standard.” Salomons, who along with severalcolleagues participated inTrelleborg’s training in Germany,appreciates the service.“The Trelleborg people have alwaysbeen helpful, and they’re only aphone call away,” he says.

Going placesFounded by Peter Salomons andhis partner in 1995, Jetvac hasdeveloped into a one-stop shop forthe inspection, cleaning andrehabilitation of sewage pipes.Currently employing about 170people, Jetvac is poised to expandelsewhere in Africa. “We’re very bullish about newmarkets,” Salomons says. “There’slots and lots of work.”

www.jetvac.co.za

African Review of Business and Technology - March 2012

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S13 ATR March 2012 Solutions_Layout 1 21/02/2012 17:22 Page 67

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SOLUTIONS

EnvironmentIn 2010, global CO2 emissions from burningfossil fuels rose by more than five per centaccording to the International Energy Agency.At the same time the vehicle industrydedicates huge amounts of resources toreducing CO2 by just a few percentage points.However, minor adjustments to vehicles canhave a surprisingly large effect on fuelconsumption and CO2 emissions, according toa study by Volvo Trucks and Michelin.The revelation in November 2011 that a newinternational treaty on climate change will bedelayed until 2020, at the earliest, means thatthe actions of individual people andcompanies to reduce their carbon emissionswill become even more important. Recent research by truck maker Volvo andtyre manufacturer Michelin shows that aquick and simple measure can have asignificant impact on emissions without theneed for major outlay or new ways ofworking: checking and correcting the tyresand wheels on your vehicle. The study shows that having the right tyres,tyre pressure and wheel alignment can reducefuel consumption – and therefore CO2emissions – by up to 15 per cent. If theenvironmental incentive is not enough, infinancial terms that could be a saving up to€8,000 per vehicle per year.“We know that wheel alignment, tyre type andtyre pressure all have a major impact on fuelconsumption,” says Arne-Helge Andreassen,business area manager for tyres and wheelalignment at Volvo Trucks’ Aftermarketdepartment. “There is a lack of awareness in

the transport industry about the importanceof checking tyres and wheel alignment, onboth the truck and the trailer. At our dealers,we can help haulage companies check theentire rig and correct any problems. Ifeveryone did this, it would have a significantimpact on carbon dioxide emissions.”

Special instruments for statistical assessmentVolvo Trucks and Michelin decided to producestatistical data on just how much wheelalignment, tyre pressure and rolling resistanceaffect fuel consumption and therefore CO2emissions. In a two-week long, 1,000km test, arig with optimal tyres, tyre pressures andwheel alignment was compared with a vehiclefeaturing different wheel alignments and tyreparameters. The tests were carried out on a track and in aworkshop under the watchful eye of SP (theTechnical Research Institute of Sweden). Thetrucks were equipped not only with fuelgauges but also with special instruments thatmonitored exact speed, tyre wear, tyrepressure and rolling resistance. The testengineers made adjustments in the test resultsfor factors such as wind, rain and temperature.“All the conditions tested were realistic, and noexaggerations were allowed,” says Andreassen.“Real life is bad enough. Diesel consumptionincreases dramatically if the wheels are notentirely parallel. And this applies to all vehicles,for construction and long-haul operations too.”Analysis of the test results reveals that there

can be a difference of as much as 14.5 percent in fuel consumption depending onhow the wheels are aligned and equipped.Choice of tyre can cut consumption by asmuch as 11 per cent; correct tyre inflationbrings a reduction of one per cent, whileproper wheel alignment can cut fuelconsumption by 2.5 per cent.Jacques de Giancomoni, Technical AccountManager at Michelin, explains that one-thirdof fuel consumption stems from the tyres’rolling resistance. “Having the right tyres is ofparamount importance,” he says. “Andchecking tyre pressure – which has asignificant effect on fuel consumption – isalso important.” Andreassen says that as a manufacturer ofheavy vehicles, Volvo has considerableresponsibility for the effects of its products,and it takes that responsibility seriously. “Wemust try to do everything we can to reduceemissions of carbon dioxide,” he says. “It’s notenough to just build fuel-efficient engines;Volvo Trucks works consistently and in avariety of ways to cut the fuel consumption ofour vehicles throughout their lifecycle.”Of course correcting the tyre pressure andwheel alignment will not stop climate change,but as commercial traffic accounts for 30 to 40per cent of total carbon dioxide emissionsfrom road transport, it is another small butsignificant step towards a lower carbon future.

everydropcounts.volvotrucks.com

African Review of Business and Technology - March 2012

How wheel and tyre choice cuts C02 emissions

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Take your business higher with the JLG® 1500SJ – the fi rst straight boom lift that takes you to 45.72 m and only requires a length permit for transport.

Equipped with a telescoping jib that extends up to 7.62 m, the 1500SJ delivers outstanding work envelope fl exibility with exceptional horizontal and vertical reach. And since it’s a JLG Ultra Boom, you get everything you need to maximise productivity: dual 450 kg/230 kg capacity, three steering modes and excellent manoeuvrability.

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S13 ATR March 2012 Solutions_Layout 1 21/02/2012 17:22 Page 69

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Researchers at Nottingham Trent University in the United Kingdom havedeveloped a new system that will regulate the temperature inside ofbuildings in extreme climates. The system, which can be installed in newor existing buildings to regulate the temperature, will mean a reduceddemand for traditional systems such as air-conditioning or heating.

Working in both extreme hot and cold conditions, it willalso reduce the amount of energy consumed by

using these traditional methods.

Complex climate issuesDr Amin Al-Habaibeh, inventor of thesystem, commented, “There has alwaysbeen an issue in regulating thetemperature inside buildings in extremeclimates, and current solutions have anumber of problems associated with

them, including being complex andrequire significantmaintenance.“This new methodwill reduce energyconsumption and

improve building temperature in these climates by utilising theconsistency of the ground temperature, while maintaining the traditionallook of the building.” The system utilises a conductive heat transfer between the ground andthe envelope of the building by transferring the heat from the buildingto the ground in the summer and transferring the heat from the groundto the building in the winter. Dr Al-Habaibeh, who is a reader in Advanced Design and ManufacturingTechnologies within the Product Design subject area in the School ofArchitecture, Design and the Built Environment at the university, added,“This is a much more sustainable way of regulating building temperatureand we’re currently in talks with a number of UK companies to developthe technology and commercialise it internationally.”

70

EQUIPMENT/CLASSIFIED

African Review of Business and Technology - March 2012

Dr Amin Al-Habaibeh is a reader in Advanced Designvvaand Manufacturing Technologies at NottinghamTrent University in the UK

Regulating building temperatures in extreme climates

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Working in extremeconditions, the system will

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traditional methods

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Page 72: African Review March 2012

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