african review september 2013

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Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 September 2013 Finance: How Infosys helps banks to grow P36 Transport: Kenya flyers on an East African network P44 Building the market at bauma Africa Iveco’s African business model P24 P46 Construction: Improving a port in Mozambique P53 www.africanreview.com Mr. Venkatramana Gosavi, Regional Head, Growth Markets, Finacle

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African Review September 2013

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

September 2013

Finance:How Infosys helpsbanks to grow P36

Transport:Kenya flyers on an EastAfrican network P44

Building the market

at baumaAfrica

Iveco’s Africanbusiness model

P24

P46

Construction:Improving a port inMozambique P53

African Review

of Business and TechnologySeptem

ber 2013Volum

e 47 Num

ber 27w

ww

.africanreview.com

www.africanreview.com

Mr. Venkatramana Gosavi,Regional Head, GrowthMarkets, Finacle

ATR Sep 2013 Cover_Layout 1 23/08/2013 09:54 Page 1

S01 ATR Sep 2013 Start_Layout 1 22/08/2013 19:42 Page 2

REGULARS

FEATURES26 Economy and Finance

Nigeria’s national identity card programme, and its enterprises in sub-Saharan Africa;Botswana’s programme of economic diversification; capital markets and African economies; andthe investment BRICS enables in Africa

38 Technology and TransportVirtual resources for East African education; advanced telcommunications for trade; theautomation of retail lending; and logistics systems to track shipments; using the Internet toimprove cargo transport; a vision for air freight in Kenya; and Iveco’s increasingly sustainable -and increasingly African - profile

49 PowerGenerator sales performance in Africa; and the development of gas power plants and windpower in southern Africa

53 Construction and MiningUpgrading port facilities in Mozambique; the attributes of excavators; building a more ‘local’South African power facility; concrete for industrial flooring; roadbuilding for Kenya’s farmers;materials for housing; notes on an advanced paint system; innovators in telescopic handlers;explaining pipe threading; and a comprehensive appraisal of the forthcoming bauma Africaevent for construction and mining firms; dewatering open pits; an overview of specialisedexcavation equipment; improving operational analysis; and the technology and practices toimprove safety at mining sites

04 Agenda: Developments affectingbusiness and technology

22 Bulletin:Fresh initiatives in Africaninvestment

118 Solutions:The latest additions toproduct portfolios

Contents

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

September 2013

Finance:How Infosys helpsbanks to grow P36

Transport:Kenya flyers on an EastAfrican network P44

Building the market

at baumaAfrica

Iveco’s Africanbusiness model

P24

P46

Construction:Improving a port inMozambique P53

www.africanreview.com

Mr. Venkatramana Gosavi,Regional Head, GrowthMarkets, Finacle

Editor’s Note

Main cover picture: Steve Skinner/Volvo CEInset, bottom left: InfosysInset, top right: Iveco

P30

P58

T his issue of African Review reports on economy and finance, technology and transport, power generation, and construction and mining. Geographically, the principal points of focus

are Nigeria, Botswana, South Africa, Kenya and Mozambique. The examination of Nigerianeconomic affairs, from page 26, offers insights into the nation’s identity programme, and also itscommercial endeavours across the continent. Botswana’s development is represented on page 30.The advanced technological deployment to support education and training in Kenya is coveredon page 38, and the Kenyan government’s vision of the nation as an East African transport hub isaddressed on page 44. The construction of new logistics facilities in the Port of Beira, inMozambique, is highlighted on page 53, amongst other construction stories. However, theprimary focus of this issue is the inaugural bauma Africa, a massive promotion of construction andmining equipment and services being held in South Africa in September 2013. From page 67 topage 104, this issue offers a comprehensive account of the solutions available to see and to buy,as well as corporate news from key exhibitors. Furthermore, miners can read of technicaldevelopments, improving condition monitoring and on-site safety.

Andrew Croft, Managing Editor

Managing Editor: Andrew [email protected]

Editorial and Design team: Bob Adams, Hiriyti Bairu, Lizzie Carroll, David Clancy, Kasturi Gupta, Ranganath GS, Prashant AP, Rhonita Patnaik, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, and Ben Watts

Publisher: Nick Fordham

Advertising Sales Director: Pallavi Pandey

Advertising Sales Manager: Jane WellmanTel: +44 114 262 1523 Fax: +44 7976 232791 Email: [email protected]

China: Ying MathiesonTel: +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]

UAE: Camilla CapeceTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]: Steve ThomasTel: +44 20 7834 7676 Fax: +44 20 7973 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 (0)20 7834 7676, Fax: +44 (0)20 7973 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:Nathanielle Kumar, Donatella Moranelli, Nick Salt, and Sophia WhiteE-mail: [email protected]: [email protected]: Derek Fordham

Printed by: Wyndeham Grange LtdUS 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

UP FRONT

3African Review of Business and Technology - September 2013

Audit Bureau ofCirculations -

BusinessMagazines

www.africanreview.com

Serving the world of business

S01 ATR Sep 2013 Start NEW_Layout 1 23/08/2013 11:24 Page 3

According to EY’s Global Islamic Banking Center, Islamictrade finance could provide new opportunities and become

the preferred choice for emerging rapid growth markets (RGMs)such as Turkey, Indonesia Malaysia, Qatar, Saudi Arabia and theUAE.RGMs are emerging as hot spots for global business and theypromise to permanently alter the global trade scene over thenext 10 years. Many of these markets already have strong tradelinks with other “core” Islamic finance markets, which offer newopportunities for growth for Islamic trade finance.Ashar Nazim, partner at EY’s global Islamic banking centre ofexcellence, says, “The increase of trade flows to the East andwithin emerging economies combined with growing interest inIslamic finance, means that Islamic trade finance is now a

serious alternative. A constant challenge for business leaders isto anticipate and interpret how global trade is changing, whileunderstanding the opportunities and risks it creates. Boards andmanagement of Islamic banks must take note. Trade,technology, culture, labor and capital will integrate at differentrates across these markets and need to be anticipated whentransforming the financial institution’s trade financeoperations.”RGMs are now an increasingly significant part of the globaleconomy. They will become an even more dominant force inglobal trade and as a result, businesses are going to have toadjust their strategies to reflect the increasingly regionalpattern of world trade and in this context should now start toconsider Islamic trade finance.

4

NEWS

Arabic-speaking Internet users around theworld will be the first to experience the nextevolution of the Internet after InternetCorporation for Assigned Names and Numbers(ICANN), the global regulator of Webaddresses, officially entered into a contractwith dotShabaka Registry for “ةكبش.” tobecome the world’s first Arabic new Top-LevelDomain (TLD).becomes the world’s first borderless (shabaka, translates to .web in English.) .ةكبش

new top-level domain and provides Arabic speaking Internet users with an alternative tonon-Arabic Internet namespaces such as .com, .net and .org. It will be available toeveryone wanting an Arabic online presence.

Yasmin Omer, general manager at dotShabaka Registry, said, “As the first new top-leveldomain, ةكبش. is set to become the centre of all things Arabic on the Internet. It is anincredible achievement not only for us but for the entire Arabic speaking world. It willpioneer a new way for people to use the Internet that begins with the Arabic language.”

Omer added, “ةكبش. will have a global audience, with more than 20 countries in theMiddle East and North Africa which use Arabic as an official language – a region thatcomprises over 380mn people. Arabic is also the fastest growing language online – withgrowth of more than 2,500 per cent in the 10 years to 2011. In spite of the boom inArabic content online, users are still burdened with the need to use English on theInternet. Many websites and Internet applications force visitors to only use English.Through ةكبش., we are campaigning for a truly Arabic Internet experience from start tofinish.

domain name owners will be getting more than just a web address; they’re .ةكبش“signing up for a cause, and becoming part of the movement to empower the Arabiclanguage on the Internet. dotShabaka Registry’s vision is to build an Internet thatfacilitates end-to-end communication and collaboration for every user utilising only theirnative tongue.”

The presence of the Ministries ofTransportation from Morocco and Tunisia atthe Maghreb Infrastructure & ConstructionSummit - taking place 25-26 September inCasablanca, Morocco - will create anopportunity for all companies wishing todo business in the transport sector of NorthAfrica. Morocco has seen an increase in itsphysical infrastructure development in thelast three years, as there have been anumber of development projects torehabilitate and expand the country’sinfrastructure. Large scale projects such asthe Tangier-Med port, developingCasablanca airport, Casablanca-Tangierhigh-speed rail and many others,demonstrate the scale of infrastructuredevelopments that the country is currentlyworking on. Tunisia has made a significantstart in rehabilitating its transportinfrastructure and improving its businessenvironment. Tunisia is located at themeeting point of Europe and Africa, withnumerous transport infrastructure projectstaking place in order to upgrade its portsand increase trade.

Islamic trade finance gains market credibility

African Review of Business and Technology - September 2013

Agenda / Northfor a borderless domain ”.ةكبش“ Building

business in the Maghreb

www.africanreview.com

The total Middle East and North

African (MENA) region comprises over

380mn people”

S01 ATR Sep 2013 Start_Layout 1 22/08/2013 19:42 Page 4

S01 ATR Sep 2013 Start_Layout 1 22/08/2013 19:42 Page 5

Are large-scale solar and wind powerplants compatible with the

interests and needs of people in NorthAfrica? Will the local population be ableto participate in and to benefit fromindustrial-scale projects?The Desertec Foundation is convincedthey will.Desertec Foundation criteria for large-scale power plant projects are intendedto take the claims and expectations intoconsideration of people from all partsof civil society as well as justifiedinterests from the industry involved inthe realisation of such projects."We are well aware of the fact that wecannot design those criteria in atheoretical approach by desktop workbut rather by joining into an honestdialogue with people from therespective regions. Our aim inconducting this dialogue is to combinelegitimate interests of investors andcompanies with important demands fora reasonable regional development,"said Wolfgang Dörner, head of projectsat the Desertec Foundation.The first step is to identifyrepresentatives of civil society who areexpected to provide a reasonablecontribution to this dialogue. It isindividuals who engage in non-governmental and non-profitorganisations for social issues,sustainable development and theenvironment who are needed - also,local and municipal interest groups andpeople within the immediate vicinity oflarge-scale power plants are within thefocus of this project.Desertec Dialogue is financed by theGerman Foreign Office with provisionfrom the German governmentoriginating from the country's Energyand Climate Fund. The first events willbe held in Morocco and Tunisia inautumn 2013.

6

NEWS

The Abraaj Group, an investor operating in growth markets, has backed PlasticElectromechanic Company (PEC), which specialises in plastic injection, the assembly ofelectrical equipment and harnesses, and medical products.

Established in 2004 as a plastic injection company, PEC has grown to become an industrialgroup which has expanded its client base, products, industry and country exposure. It nowserves top tier clients in sectors including the automotive, electrical and healthcare industriesin Europe and the US. It is implanted in the Hammam-Zriba I.Z. on a field of 8,500 sq m.

PEC was recently presented with an award by the Tunisian prime minister Ali Laarayedh forBest Offshore Company in Tunisia at the Tunisia Investment Forum 2013.

With Abraaj’s operational and financial support through its controlled investment vehicles,PEC will now look to launch new products, expand further into Europe and the Middle East,and look at complementary acquisitions. PEC recently announced the launch of its Moroccanplant which will commence operations by the end of 2013 and will mark the third internationalsite for PEC after China and France. With this Moroccan presence, PEC will be able to present astronger value proposition to its multinational clients by providing a combination of cost-efficient injection solutions and closer geographic proximity to the assembly lines of its clients.

Ahmed Badreldin, partner at The Abraaj Group, said, “Our investment in PEC fits our strategyand builds on our four other Tunisian investments in the pharmaceuticals and consumer goodssectors. Given its high standard of delivery and relatively short transportation time to Europeand the US, along with other cost advantages, PEC is well positioned for further organic growthand potential acquisitions.”

Speaking in relation to recent business conducted with Gulf Air for Bombardier’s CSeriesaircraft, Mike Arcamone, president of Bombardier Commercial Aircraft, said, “Over the past fouryears, Bombardier Commercial Aircraft has tripled its aircraft representation in the Middle Eastand Africa, and altogether, more than 200 Q-Series turboprops, CRJ Series regional jets andCSeries aircraft are in service with, or have been ordered by, operators in the Middle East andAfrica. More than 2,600 Q-Series and CRJ Series commercial aircraft have been delivered tooperators around the world, covering all continents and operating in diverse and oftenchallenging terrains.”

Germany supportsDesertec Foundation

African Review of Business and Technology - September 2013

Agenda / NorthInvesting in plastic injection

Additional Middle East aircraft

www.africanreview.com

Designed for the growing 100- to 149-seat market, the CSeries aircraft family combines advanced materials, leading-edge technology and proven methods to meet commercial airline requirements

S01 ATR Sep 2013 Start_Layout 1 22/08/2013 19:42 Page 6

M-SER IES 500 PLATFORM

New improvements in the 500 series loaders protect against damage■ Protected quick couplers have no exposed hoses to damage■ Removable hose guide makes it easy to route hydraulic hoses to minimize attachment wear and tear■ Lower rear frame protects tailgate from obstacles, prevents scrapes and bumps on the jobsite

bobcat.eu/en/500

SEE US AT

SEPTEMBER18-21

S02 ATR Sep 2013 Agenda East_Layout 1 22/08/2013 11:51 Page 7

Ongoing development of servicesprovided by current mobile

telecommunciations networks were atthe centre of most discussions duringEast Africa Com, recently held in Nairobi,Kenya. Jose Henriques, VP data andonline at Airtel Africa, highlighted theimportance of affordability of dataservices, both in terms of data pricingand of devices. John Naranka offered thepoint of view of an enterprise involved inadvanced services such as the Kenya-based social network Whive. Sessionsalso covered the services that are mostlikely to impact data growth in theregion: content, mobile money, e-health,TV, mobile marketing and apps. Somekeywords were repeatedly mentionedwhen discussing how to make servicessuccessful: affordability, user-friendlinessand simplicity. Betty Mwangi-Thuo fromSafaricom (who gave an update on theever successful mpesa) also highlightedthe importance of partnerships toensure the success of communicationsservices. The topic of e-health wascovered by a presentation from arepresentative of Ogra Foundation,which works with and for vulnerablecommunities in Kenya to improve andpromote health. And a new sessioncalled AppGig was dedicated todeveloping, promoting and monetisingapplications (apps) for East Africa -which featured apps ranging from trafficnews to education and health.

8

NEWS

CMC Motors Group Ltd, Case Construction Equipment dealer for the Republic of Kenya, theRepublic of Uganda and the Republic of Tanzania, recently held a VIP customer event to showcaseproducts and after-sales support. The event, which took place in the grounds of the famousCarnivore open-air restaurant in the Langata suburb of Nairobi, was attended by 220 guests,including representatives of the Ministry of the Roads for the Nairobi District and from Uganda. Atthe heart of the event was a demonstration of the Case 580T tractor loader backhoe, SR150 skidsteer loader, CX210B crawler excavator and 821F wheel loader, as well as a static presentation of the845B grader. Case’s official demonstrator Steven Beardmore highlighted the new features andstrong points of the models as the guests enjoyed an aperitif. The demonstration was followed bydinner and a show with live jazz music and traditional dancing.

Solomon Muturi, managing director of CMC Motors Group, addressed the guests, expressing thepride he and his team felt for being a valuable partner for the construction industry of Kenya. Hesaid, “Our aim is to support the development of Kenya’s economy with a total solution service thatincludes the wide range of highly productive and economical Case Construction equipment toexcellent after sales service to ensure the long-term sustainability of our customers’ investment.”

A new project supported by the African Development Group (AfDB) is expected to exploit thegeothermal potential in the Lake Assal region to enable Djiboutian population's access to areliable, renewable and affordable source of energy. Currently Djibouti relies mostly on fossilfuels and some hydropower imports from Ethiopia. The majority of the country's currentgeneration capacity is situated in Djibouti City. The existing power stations are old, pollutingand expensive to operate. In addition, fuel imports are expensive and require importantforeign-currency expenditure.

The geothermal exploration project in the Lake Assal region is structured as Public PrivatePartnership, where the government of Djibouti is taking the lead on the first exploration andappraisal drilling phase. The private sector will be responsible for the production drilling, steamgathering system and electricity production and evacuation to the national grid.

Affordable, relevantcommunications needed

Solomon Muturi, managing director of CMC Motors Group Ltd

Network service delivery was the focus of mostdiscussions and presentations at East Africa Com

African Review of Business and Technology - September 2013

Agenda / EastCase meets customers in Kenya

Geothermals energised by AfDB

www.africanreview.com

S02 ATR Sep 2013 Agenda East_Layout 1 22/08/2013 11:51 Page 8

Rand Water (RW) provides bulk waterto more than 11mn people in four ofSouth Africa's provinces. Since 2010,

and until 2015, the group is heavilycommitted to a R10 billion (US1bn)investment initiative, to deliver majorrenovations to the nation’s ageinginfrastructure, mostly in relation to theaugmentation and rehabilition ofinfrastructure. Headquartered in SouthAfrica, Rand Water reports to theDepartment of Water & EnvironmentalAffairs (formerly the nation’s Departmentof Water and Forestry). Throughout its longhistory, Rand Water has been financiallyself-sustaining - and its financials areaffirmed by Standard & Poor’s A+ corporatecredit rating for its long-term local currencyand BBB+ for its long-term foreign currency.

The distribution network of Rand Waterincludes more than 3,056 km of largediameter pipeline, which feeds into 58strategically-located service reservoirs. The

large base of customers of Rand Waterconsists of metropolitan municipalities,local municipalities, mines and industriesand IT suppliers - on average, 3,653mnlitres of water are delivered to thesecustomers daily. In terms of water quality,Rand Water meets the standards of theWorld Health Organisation (WHO), theSouth African National Standards (SANS241:2005) issued by the South AfricanBureau of Standards, and the requirementsof South African legislation.

Rand water predominantly uses SplitCase Pumps for their bulk water pumpingrequirements. Many of the installedpumping stations carry large size splitcasing pumps operating either in solo or inseries for meeting higher headrequirements. In earlier times,conventional use required pumps with asteam turbine-driven arrangement, whichsubsequently has been changed for directmotor driven arrangement.

Meeting the market for major successesIn 1994, South Africa opted for open

capital market engagement, which saw thebeginning of interaction between RandWater and Kirloskar Brothers Limited (KBL),a global fluid management solutionsprovider and the largest manufacturer andexporter of centrifugal pumps and valvesfrom India. Established in 1888 andincorporated in 1920, KBL is the flagshipcompany of the US$2.1bn Kirloskar group.Its core businesses include large waterinfrastructure projects - and infrastructurework in many other sectors. Water resourcemanagement is a key business vertical inthe KBL portfolio - whether providingpumpsets or executing full-scaleengineering, procurement and construction(EPC) projects for water supply or watertreatment. KBL continues to be the leadingpump manufacturing company toparticipate in Rand Water’s tenders through

local EPC contractors. Ongoingcommunications with RW, and participationin tenders floated, ultimately resulted inKBL’s first major success with RW for theZwartkopjes Pumping Station, in Pretoria, in2006 for the supply of pumpingequipment’s through a local EPC contractor.

The order for the supply from Kirloskar oflarge horizontal split case pumpingequipment for the Zwartkopjes PumpingStation comprised of 10 X UPH 500-60pumps coupled to 1475 KW, 4pole Motorsand 5 X UPH 500 – 80 pumps coupled to2700 KW, 4 Pole motors.

The complete pumping scheme had 15pump sets installed in five bays with threepumps operating in series for a totalpumping capacity of 100 MLD at 350metres. Supplies of these complete pumpsets were completed in 2006 and 2007.Pumps have been commissioned in phasesand have since then have been runningseamlessly in feeding potable water tomajority of the Gauteng Province.

Prior to this major contract, KBL had alsosupplied 10-inch Split Casing Pumps forRand Water’s Houtkop Pumping Stationthrough Amalgamated Pumps &Engineering in 1995.

The Zwartkopjes Pumping Stationinstallation has been one of the majorpumping project referrals for KBL from theSouthern African region.

PROFILEKirloskar Brothers Limited

Kirloskar’s support forAfrican water supply

How KBL helps Rand Water achieve significant work on SouthAfrica’s water infrastructure

9African Review of Business and Technology - September 2013www.africanreview.com

KBL continues to be the leading pump

manufacturingcompany to

participate in RandWater’s tenders

through local EPCcontractors”

S02 ATR Sep 2013 Agenda East_Layout 1 22/08/2013 11:51 Page 9

STAKEHOLDERS met recently in Arusha,Tanzania, to discuss a planned new

deep sea port, railway transport andlogistics corridor across the DemocraticRepublic of Congo (DRC), Uganda andTanzania dubbed the ‘Mwambani EconomicCorridor’.

EAC deputy secretary general in chargeof Planning and Infrastructure Dr EnosBukuku acknowledged at the meeting thatthe Ports of Dar es Salaam and Mombasawere already experiencing significantcapacity stress and would not be able toprovide the requisite capacity support tothe region in the near future.

“The Port of Mwambani is thus awelcome additional capacity that will comein handy in bridging the capacity shortfallat the two major established ports in theEAC region,” he said.

The existing ports in the region sufferhaulage incapacitation due in particular topoor state of the connecting railways. Tothis end, Dr Bukuku noted that the railways’poor performance has seen the cost oftransport along the two main East Africancorridors (Central and Northern) skyrocketto some of the highest per tonne transportcosts in the world, not to mention the costlydestruction of the adjoining roadsinfrastructure by overloaded trucks.

“The EAC heads of State have decidedthat all new railways development will beon standard gauge. It is, therefore, withhigh expectation that we look forward tothe development of a brand newMwambani Port connected to a highefficiency standard gauge railway network,”he commented.

When implemented, the Mwambani Portand Railway Corridor will not only provide aland bridge from the Indian Ocean Port ofMwambani but will also open up vast landareas, improve connectivity and usher innew areas for development in agricultureand mining across its path.

10

NEWS

Investment by companies across East Africa will benefit from three lending programmestotaling EUR101.5mn (US$134.8mn) backed by the European Investment Bank (EIB). Threelocal banks - Chase Bank, the East African Development Bank and National MicrofinanceBank PLC (NMB) - are using European Investment Bank funding to finance investment bysmall- and medium-sized enterprises (SMEs) to expand, modernise and start new operations.

Kenyan SMEs will be able to access low-cost loans in Kenyan shillings, US dollars and Eurosunder an initiative backed by US$8.7mn from the European Investment Bank. This landmarkagreement marks the first time that Chase Bank has partnered Europe's long-term lendinginstitution.

Companies across the East African Community in Kenya, Tanzania, Uganda and Rwandawill benefit from US$33.5mn provided to the East African Development Bank. The new EIB-backed lending programme is the first joint engagement to improve access to investmentloans by small and medium sized companies since successful restructuring of the EADB andrepresents the start of a new era of cooperation between the European Investment Bankand the East African Community's financial institution.

Through the third agreement with NMB a total of US$93.9mn will be made available forsmall and medium sized companies (US$67mn) and microfinance investment (US$26.8mn)under different criteria. This will be made available to companies across Tanzania throughthe NMB branch network.

"Access by small- and medium-sized business to long-term finance is essential for creatingnew jobs and economic growth and today marks a new era of European Investment Bankengagement to support private sector investment by small and medium sized companiesacross East Africa. This will enable entrepreneurs and established firms to engageinvestment in new markets and can be expected to contribute to new jobs. Working with arange of well-respected financial partners in the region will increase the geographic scopeand sector coverage of this initiative. We look forward to working with colleagues at ChaseBank, the East African Development Bank and NMB to improve access for low-costinvestment finance for companies in East Africa and build on a strong track record ofsupporting entrepreneurs across the region," said Pim van Ballekom, European InvestmentBank vice president.

Executive secretary of the Intergovernmental Authority on Development (IGAD) ambassadorMahboub Maalim and head of the EU Delegation to Djibouti Ambassador Joseph Silva signed afinancing agreement recently for the improvement of the surveillance of animal diseases insupport of trade in IGAD member states.

Within the framework of the Regional Indicative Programme of the 10th European Funds fordevelopment and of the initiative Supporting the Horn of Africa's Resilience (SHARE), thisagreement was endowed with six million euros and will be implemented by the InterafricanBureau for Animal Resources of the African Union (AU-IBAR) in partnership with IGAD Centrefor Pastoral and Livestock Development (ICPALD), under the overall supervision of IGAD.

The project will contribute to strategic programmes, in terms of harmonisation of sanitarymeasures and the development of traceability and certification schemes.

Focus on MwambaniEconomic Corridor

African Review of Business and Technology - September 2013

Agenda / EastEuropean support for local banks and businesses

Animal disease surveillance to support further trade

www.africanreview.com

S02 ATR Sep 2013 Agenda East_Layout 1 22/08/2013 11:51 Page 10

S03 ATR Sep 2013 Agenda South_Layout 1 22/08/2013 13:12 Page 11

South Africa’s asset management industryshould brace itself for significant

developments that will potentially shape thecompetitive landscape of the sector in thenext five years, says Muitheri Wahome, head oftechnical solutions at specialist investmentmanagement company Investment Solutions.

Wahome lists regulatory reforms,competition, and pressure to attract andretain talent, compliance costs as some of thechallenges asset managers will face. Wahomealso says market volatility and uncertainty, lowreal return environment, and slow economicgrowths are other humps to watch out for.

She says it is therefore evident that eventhough South Africa now has one of the

world’s most developed asset managementindustry and with prospects for significantgrowth, the next four to five years will presentchallenges for the industry.

“These are some of the dynamics that Ithink are going to shape the industry,”Wahome says. “The challenge is how to keepup with these developments while ensuringreturns for investors and growing theindustry,” she says.

Wahome says the asset managementindustry has grown over the past 40 years, intoone of the most developed in the globalfinancial sector, with assets managed by SAinvestment managers growing from just overUS$78.2bn in 2000 to more than US$290bn in

2011, according to anAlexander Forbessurvey.

“The industry has along history of smallinvestment boutiquesbreaking through andtaking a significantshare from industryheavyweights. Oftenfrom humblebeginnings, it tookthe businesses a long time to becomeestablished, but once they gained traction inthe institutional market they showed rapidgrowth,” says Wahome.

12

NEWS

High speed Internet connectivity has become an important part of globalbusiness, and IT infrastructure is more and more becoming a strong focusfor leading businesses. The V&A Waterfront in Cape Town, South Africa,have announced the roll-out of a fibre optic infrastructure across theproperty. Retailers, businesses and visitors all stand to benefit from thenetwork by the end of 2014 with the first phase of the developmentalready complete.

The past 18 months has seen the V&A Waterfront up a gear indevelopment with the company setting the benchmark in constructionwith innovative and sustainable building practises. But erecting intelligentbuildings and revitalising the retail experience have not been the onlyprogressive moves on the V&A Waterfront management’s agenda.

The fibre optic project will see a single trench policy introduced acrossthe property. The entire property will be trenched for a fibre opticbackbone, which will be accessible to all their tenants and will enhance allIT and communication services. The Building Management System (BMS),CCTV and parking at the V&A Waterfront all currently run on the fibreoptic infrastructure and a number of tenants are already making use ofthe network.

The V&A Waterfront has partnered with Dimension Data who will

manage the network. Both new and existing tenants will have access tohigh-speed connectivity, to fixed wire, wireless and GSM networkoperators of their choice. Tenants have the choice to use different serviceproviders for different services, thereby ensuring greater costeffectiveness. Users will benefit from minimal disruption and increasedoperational efficiency. As there will be two MeetMe rooms, the modelcaters for redundancy ensuring uptime on the network and thereforeincreased productivity.

“With the new fibre optic infrastructure we aim to provide the mostadvanced high-speed broadband access in South Africa and marketparity, adding further appeal to businesses considering the V&AWaterfront as a base for their operations,” said David Green, CEO V&AWaterfront.

The fibre optic infrastructure development will circle the entireproperty and is being rolled out in three phases, with an anticipated site-wide roll out by the end of 2014. Phase one is complete and fullyoperational, with the new Allan Gray head office running on this network.

“Not only will tenants benefit from the enhanced IT services, but visitorsto the property will also benefit from a Wi-Fi cloud covering the entireWaterfront precinct.”

Growth to come for asset management industry

Cape Town’s V&A Waterfront is set to gain comprehensivefibre optic infrastructure (Photo: Damien du Toit)

Muitheri Wahome, head oftechnical solutions atInvestment Solutions

African Review of Business and Technology - September 2013

Agenda / SouthFibre optic at the V&A Waterfront

www.africanreview.com

S03 ATR Sep 2013 Agenda South_Layout 1 22/08/2013 13:12 Page 12

Energizing a more powerful

and capable Panama Canal.

The Panama Canal Expansion program is a tremendous undertaking. It entails powering up an extra lane with newly engineered locks to double traffi c capacity. As well as managing and controlling power for wider, deeper canals to accommodate vast container ships out of Asia.

It’s a singular feat of human engineering that inspired in us, at Eaton, equally innovative power management solutions.

A comprehensive, integrated power solution that goes beyond reliability.

We’re there to support the Canal Authority for the entire project. From design to on-site start-up to commissioning support. The Panama Canal has spared over 900,000 ships a trip around the continent. With Eaton expertise, it will be well equipped to take on a million more.

Follow the Charge »

eaton.eu/followthecharge/m5

©2013 Eaton. All rights reserved.

S03 ATR Sep 2013 Agenda South_Layout 1 22/08/2013 13:12 Page 13

South Africa needs to win backinvestors in the mining sector,

which has resulted in top executivescommitting to engage at the JoburgIndaba, taking place in South Africaduring October 2013.

The inaugural 2013 Joburg Indaba on‘Investing in Resourcing and Mining inAfrica’ has attracted top minds todebate serious issues to ensure thatSouth Africa’s and Africa’s Mining Inc.can be put back on track and becomemore productive and competitive.

Robert Friedland, chairpersonIvanhoe Capital Corporation andexecutive chairman of Ivanplats, joinsgame changers including BernardSwanepoel, Valli Moosa, Fiona Perrott-Humphrey, Martyn Davies, MichaelSpicer and other high profile CEOs todrive the investor interest back into thiscountry.

“I am encouraged by these industryleaders, investors and custodians of ourindustry joining together to map theway forward to unlock the immensevalue in our mining and resourcesectors,” states Paula Munsie, CEOResources for Africa and co-founder ofthe event. “The Joburg Indaba is quitedifferent from the run of the millconference format, and will allow directaccess to investors and insights fromleading figures engaging in someextremely stimulating discussions.”

For those wanting to meet the gamechangers and thought leaders of theinvestment world and mining industry,the 2013 Joburg Indaba promises todraw together those with a vestedinterest in Africa’s mining and resourcesectors.

Joburg Indaba takes place from 29-31October 2013. Further information isavailable at www.joburgindaba.com

14

NEWS

The SNC-Lavalin pyrometallurgy teamin Johannesburg, South Africa, iscurrently involved in several nicheprojects for both local and internationalclients for whom it is custom designingequipment and systems for specificcustomer applications.

“SNC-Lavalin is a world classcompany that is recognised forproviding sound engineering andproject delivery solutions to clients inmany industries,” Ted Fulton, apyrometallurgy specialist with SNC-Lavalin’s Johannesburg office, says.“Based on our customers’ preferences,our team can specify, select andpurchase the optimum equipment, orprepare and offer a completetechnology supply package orpackaged plant. In addition, the level oftechnical support our pyrometallurgicalexperts are able to provide on ourprojects significantly enhances thequality of the process and technologydesigns delivered to customers.”

Currently, the company is poised tocomplete a project for a ferrochromeproducer in Turkey to increase thecapacity of its existing low-carbon ferrochrome plant from 12,000 tpa to 32,000 tpa. Optimisingthe customer’s existing smelter has entailed the conversion of an existing closed 15 MVAcalcium carbide furnace to a semi-closed furnace to smelt ferrosilicon chrome and the supplyof a new 8 MW DC furnace to smelt low carbon ferrochrome via silico-thermic reduction.

Other current projects include design and supply of new copper roofing for a pig iron andtitanium dioxide slag plant in Norway, and a pre-feasibility study for a 5000 tpa magnesiumplant to be constructed in the Western Cape, South Africa.

“The pooled knowledge and experience of our pyrometallurgy team has put us on the map.We have the process expertise and equipment capabilities to deliver cutting edge solutions,”Fulton adds. “We’re now accelerating our search for new projects, while at the same timeproviding support to the greater SNC-Lavalin organisation on other pyrometallurgicalprojects.”

SNC-Lavalin’s South African pyrometallurgy team comprises about 18 specialists, engineersand designers with full 3D-design capability specialising in custom designed pyrometallurgicalplants and equipment. In-house competencies include CFD (computational fluid dynamic) tosolve flow and heat transfer problems and FEA (finite element analysis) to determine thestructural integrity of equipment and evaluate thermal performance. Both these modellingsystems are used for equipment design and also offered as a service to clients on otherengineering applications.

Investing in Africanresources and mining

African Review of Business and Technology - September 2013

Agenda / SouthMetallurgy specialists set to serve South African industry

www.africanreview.com

A low carbon DC furnace recently installed in Turkey by SNC-Lavalin

A semi-closed ferrosilicon chrome AC furnace recently installed inTurkey by SNC-Lavalin

S03 ATR Sep 2013 Agenda South_Layout 1 22/08/2013 13:44 Page 14

E V E R Y D A Y M I S S I O N D E L I V E R E D . E V E R Y D A Y V A L U E .

Des ign , comfor t , qua l i ty s tandards and innovat ive technology : here i t comes the NEW 682,

the new gener at ion of heavy t r ucks .

With i t s cab insp i red by the award winn ing New Str a l i s cabs , and powered by Iveco

F ia t Power tr a in Cur sor 9 eng ine , New 682 i s ava i lable on the on-road and of f - road ver s ion .

I t represents the best mix among re l iab i l i ty, f lex ib i l i ty and per formance , the r ight so lut ion

to face a wide r ange of t r anspor ts .

New 682. A new breed.

W W W . I V E C O . C O M

S04 ATR Sep 2013 Agenda West_Calendar_Layout 1 22/08/2013 13:50 Page 15

AGDP growth of more than sevenper cent, political stability,

transparency and eco-friendliness makeGhana a favourite of the internationaldonors' community and an importanthub for West Africa. Agriculture andfood processing industry attract moreand more private and publicinvestment. Against this backdrop thetrade fair specialist fairtrade Messelaunch agrofood West Africa.

The 1st International Trade Show onAgriculture & Livestock, Food, Beverage& Packaging Technology and Food,Beverages & Hospitality is scheduled tobe held from 3 to 5 December 2013 atthe Accra International ConferenceCentre in Accra, Ghana.

Among the ECOWAS-The EconomicCommunity of West African States as aregional group of 15 West Africancountries, Ghana has developed into a‘donor darling’ of the international givercommunity. This success is founded onpolitical and economic stability. FurtherGhana belongs to the out-performers insub-Saharan Africa, with GDP growthrates of considerably more than sevenper cent (ECOWAS average: five percent). This growth is driven by divertindustry sectors. Private investmentsinto the branches oil and gas, mining,agriculture, food processing industry,retailing and energy as well as publicinvestment into infrastructural projectsmade Ghana an important hub forforeign companies for West Africa.

“I am convinced: in 10 years from nowwe will witness the great Africa boom.By then, for us working in the field ofpackaging technology, business-wisethe continent will play a similarlyimportant role as Asia does today,”claims Friedbert Klefenz, president ofBosch Packaging Technology andchairman of the board of the packagingmachinery sector within VDMA.

IFC is investing US$6mn in Activa - an insurance group operating in Cameroon, Ghana, and othercountries in West and Central Africa - to help increase access to insurance for farmers, smallerbusinesses, and lower-income individuals. IFC’s equity investment will help Activa expand into newmarkets, where few are able to access or afford insurance products because of weak distributionchannels, high transactions costs, lack of product innovation, and low consumer financial literacy.

Yolande Duhem, IFC director for West and Central Africa, said, “A key focus of IFC’s financialservices strategy for sub-Saharan Africa is to support regional insurers who aim to achieve massmarket coverage and expand their operations in other countries. Insurance is an essential socialsafety net in case of an accident or any other adverse event affecting households or businesses.”

Richard Lowé, CEO of Activa Group said, “Through our partnership with IFC, we are extremely wellpositioned to take advantage of the many growth opportunities in the African markets with verylow insurance penetration through the development of products designed to cover low-incomepopulation and small businesses and the use of innovative distribution channels.”

16

NEWS

Sable Mining has released positive results frommetallurgical test work at the company’s 123.5sq km Nimba iron ore project in south-eastGuinea - highlighting the commercial value ofthe site - which is the second largest on- or near-rail undeveloped direct shipping iron ore (DSO)deposit in West Africa.

Sable Mining CEO Andrew Groves said,“These highly positive metallurgical testworkresults further support our belief that Nimbahas the potential to be a world class asset. Withanticipated low capital expenditure because ofexisting nearby rail, and low operatingexpenditure because of the DSO grades, Nimbacontinues to set itself apart from its West Africaniron ore peers.

“Having already demonstrated significantDSO tonnage and a maiden JORC resource of121.5Mt at an in-situ grade of 57.8 per centiron, these latest results further underline theProject’s commercial viability. Themetallurgical test work has highlighted thatthe iron mineralisation is amenable torelatively low cost production as the depositcontains easily fragmented rock, allowing forhigh crushing rates at low powerconsumption, and can be separated fromgangue elements using a simple gravity circuitto further upgrade the ore. I am thereforeconfident that Nimba has strong potential tobecome a high tonnage, high grade and lowcost production asset in the near term.”

Regional experts have ended a two-day meeting in Accra for the review of the revisedroadmap for the ECOWAS single currency, which involves the creation of a second currency bysix Member States of the second monetary zone by 2015. The Gambia, Ghana, Guinea, Liberia,Nigeria and Sierra Leone constitute the six countries of the zone that agreed to create asecond currency, Eco, to be used during a transition period along with the CFA franc prior tothe creation of a single currency by 2020. The meeting of the inter-institutional technical sub-committee on the roadmap for the ECOWAS single currency programme is intended toreview the 34 activities included in the programme for the single currency.

"The meeting is to review the roadmap and examine the status of implementation of theseactivities vis-à-vis the timelines indicated for their implementation," acting director of theECOWAS multilateral surveillance directorate Dr Nelson Magbagbeola said.

An agricultural hub

African Review of Business and Technology - September 2013

Agenda / West

Iron test work indicates potential

Increasing access to insurance

Single currency zone reviewed

www.africanreview.com

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The African Development Bank (AfDB) isfacilitating a senior loan of up to US$66.9

to finance Côte d’Ivoire’s CIPREL PowerExpansion Project, to increase existing plantcapacity by 222MW and thereby help Côted’Ivoire to meet its growing energy needsthrough the provision of reliable andaffordable electricity supply while alsoreducing the environmental footprintassociated with electricity generation.Electricity demand in Côte d’Ivoire hasdramatically increased with an average rateof six per cent per annum from 2003 to 2012while net electricity production has grownat only two per cent per annum during thesame timeframe. Energy demand is

expected to remain high in Côte d’Ivoireover the medium- to long-term, and theenergy shortage is expected to widen ifgeneration capacity is not adequatelyexpanded. While the country’s economy isstill in the recovery stage, following therecent crisis, the provision of financing toboost affordable power is crucial.The AfDB played a key role in reachingfinancial closure on the CIPREL PowerExpansion Project through the provision oflong tenor financing, which is hardlyavailable on the market. Thanks to theAfDB’s support, the existing power plant willbe expanded to include an additional111MW gas turbine, as well as a combined

cycle turbine for an additional 111MW ofgeneration through the installation of asteam turbine and two heat recovery boilersconnected to a previously built gas turbine(commissioned in 2009). The AfDB and otherlenders were also instrumental in convincingthe sponsors to use more rigorous and up-to-date environmental and socialmanagement standards including the drylow-NOx green technology to reduce theNOx emissions. This fourth expansion willincrease the gross plant capacity by 69 percent to a total of 543 MW. When the projectbecomes operational, CIPREL will have thelargest thermal plant in operation in sub-Saharan Africa.

International investors have responded with enthusiasm to the Nigerian Government’s attempts toattract private investment into its power industry with 110 bidders submitting Expressions ofInterest to acquire majority shareholdings in the National Integrated Power Project (NIPP) ten newthermal power plants. The combined sales could generate several billions of US dollars and wouldrepresent one of its most successful private investment projects.

The sale process is being handled by the Niger Delta Power Holdings Company (NDPHC), aspecial purpose company set up by the Government in 2005 to implement its National IntegratedPower Project (NIPP) and the Bureau of Public Enterprises. The NIPP represents the NigerianGovernment’s flagship project that is mandated to add new generation, transmission anddistribution capacity to Nigeria’s electricity supply industry and resolve its chronic shortfall in supply.

Anthony Muoneke, executive director, (finance and administration) at the NDPHC and chairmanof the Joint Working Group, superintending the share sale transaction, said, “This is a tremendousvote of confidence by the international investment community for the Federal Government ofNigeria’s declared policy to increase private sector involvement in the electricity industry.

The NDPHC is overseeing the sale of these ten power generation assets in collaboration with theBureau of Public Enterprises (BPE).

Each of the ten power plants is currently owned by a wholly owned subsidiary of NDPHC and 80per cent of the outstanding shares of these subsidiaries is offered for sale. Five of the plants areeither fully or partially operating today with the remainder due to be operational latest mid-2014.Once operational, the ten power plants will generate more than 5,000MW.

Each generation company will benefit from a contract structure covering the sale of electricity,the supply and transportation of natural gas, and access to the electricity transmission network.

The sale process has included staging events in New York, Lagos, Hong Kong and London duringJune. Each roadshow attracted more than 400 attendees including representatives from theinternational investment community and their advisors.

18

NEWS

Genesis Analytics is expanding its capacity inNigeria, with the appointment of Ada Phil-Ugochukwu, who has a far-reaching businessdevelopment mandate, as the company’scountry director.

Phil-Ugochukwu will focus on expandingand consolidating the firm’s presence inAfrica’s second-largest economy bydeepening relationships with existing GenesisAnalytics clients and expanding its presenceinto non-banking financial services. She willalso focus on enabling clients to benefit fromleveraging off the firm’s sector andcontinental knowledge in order to improvebusiness performance.

Enhancing electricity supply in Côte d’Ivoire

Ada Phil-Ugochukwu, Genesis Analytics’ countrymanager for Nigeria

African Review of Business and Technology - September 2013

Agenda / West

Banking firmbuilds in Nigeria

Nigerian Government attractsprivate investment in power sector

www.africanreview.com

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20

NEWS

October2-4Contact West AfricaAccra, Ghanawww.exhibitionsafrica.com

2-4Power NigeriaLagos, Nigeriawww.power-nigeria.com

7-10East Africa Oil & Gas SummitLondon, UKeastafrica-oil-gas.com

9-11Africa ElectricityJohannesburg, South Africawww.africaelectricity.com

15-16Viridis AfricaJohannesburg, South Africawww.viridisafrica.com

16-18Medic West AfricaLagos, Nigeriawww.medicwestafrica.com

16-23KDüsseldorf, Germanywww.k-online.de

22-23Africa Oil & Gas, Finance &Investment ForumDubai, UAEwww.aogfi.com

22-24North Africa Oil & Gas SummitTunis, Tunisiawww.northafricasummit.com

23-24Southern Africa ICT SummitMaputo, Mozambiqueaitecafrica.com

24-25Demo AfricaNairobi, Kenyavc4africa.biz

26-29AddisbuildAddis Ababa, Ethiopiawww.addisbuild.com

27-28AfriHealthNairobi, Kenyaaitecafrica.com

27-28East Africa ICT SummitNairobi, Kenyaaitecafrica.com

28-30African Economic ConferenceJohannesburg, South Africawww.afdb.org

29-30Ghana SummitAccra, Ghanacemea.economistconferences.com

29-31Joburg IndabaJohannesburg, South Africa www.joburgindaba.com

Events / 2013

Now in its 30th year, the multisectoralInternational Fair of Luanda (FILDA)

welcomed 50,000 people from 35 countriesin Africa, America, Europe and Asia, andhosted 700 exhibitors - including Himoinsa,a multinational, manufacturer of generatorsand lighting towers. The company wasrepresented by Himoinsa Angola MD DavidGarcía, MD of Himoinsa Angola, commercialdirector Osvaldo de Brito, and director ofsales & marketing Guillermo Elum.

“The main objective of our participationin FILDA was, in particular, to reinforce ourpresence in the Angolan market, promotebrand recognition on the African continentand establish new business contacts,” deBrito explained.

During the fair, Himoinsa welcomed to itsstand the vice-governor of the province ofLuanda for political and economic matters,Adriano Mendes de Carvalho, who chattedwith the management team of HimoinsaAngola.

Himoinsa has supported many Angolanprojects since the 1990s. Mendes deCarvalho has been working with thecompany for several months, together withother members of the Ministry of Energyand Water Resources of Angola (MINEA) onthe design, creation and launch of a 25MWenergy plant in Luanda, which will supplyenergy to the national grid and supplyingZango IV and the Cassaque pumpingstation on the River Kwanza.

The vice-governor ofLuanda meets Himoinsa

Water Africa And West Africa Building &Construction Exhibition is scheduled to takeplace in Abuja, Nigeria, from 25-27 November2013. This is a key event for industrystakeholders seeking to showcase equipmentin the water and construction sectors tocontractors, consultants, engineers, architectsand government officials. As this issue goes to

press, the organisers have alerady confirmedattendance of more than 100 exhibitors fromaround the globe.

West Africa Building & Construction aims tohelp those providing civil engineering andhousing projects in West Africa to see newmaterials and machinery for use inconstruction and talk to experts on how best

to use them. Water Africa offers anopportunity for companies to put theirproducts and services before purchasers fromcentral and local government, industry,agriculture, NGOs and other key players fromthe entire West African region.

www.ace-events.com

African Review of Business and Technology - September 2013

Key event on West African infrastructure

www.africanreview.com

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22

NEWS

Bulletin / InvestmentReport projects healthyeconomic outlook for AfricaAfrica's economic outlook for 2013 and 2014

has been described as promising according to

a new report, which projected that the

continent’s economy would grow by 4.8 per

cent in 2013 and 5.3 per cent in 2014; the

African Economic Outlook 2013, which is

produced annually by the African

Development Bank, the OECD Development

Centre, the Economic Commission for Africa

and the UN Development Programme,

asserted that countries across the continent

should tap into the wealth of their natural

resource in order to accelerate growth.

Dangote promises furtherinvestment in Nigeria Africa’s richest man Aliko Dangote has said he

is committed to continued investment and

job creation in Nigeria; speaking to a business

group last month, the president and CEO of

Dangote Group described his recent ventures

into the petrochemical and agricultural sub-

sectors as his personal contribution towards

reducing unemployment in West Africa's

largest economy.

Murray Roberts sellsmanufacturing unitSouth African engineering and construction

service provider Murray Roberts has

announced the sale of its African construction

products platform comprising the group’s

manufacturing businesses for US$130.1mn;

the Ocon Brick, Technicrete and Rocla

African private equity funds top11 per cent annual return for10-year period African private equity performed in line with

or ahead of Asian and Latin American private

equity during the 10-year periods ending in

2010 and 2008, according to a new index of

institutional-quality private equity funds in

Africa, which posted an 11.2 per cent

annualised return for the 10 years ending

September 30, 2012; the total fund

capitalisation came to US$7.3bn from 40

institutional-quality private equity and

venture capital funds based in Africa for the

vintage years covered from 1995 to 2012.

Copperbelt Energy to raisefunds for African expansionCopperbelt Energy, which supplies power to

Glencore Xstrata and Vedanta Resources in

Zambia, has revealed plans to raise

US$150mn through loans to expand business

in Africa and finance existing debt;

Copperbelt Energy corporate development

managing director Michael Tarney said that

loans of as much as US$100mn from German

and Dutch development-finance institutions

would be completed within a three-month

time frame and will have 10-year maturities.

businesses were sold to a consortium

consisting of Capitalworks and RMB Ventures,

with Murray Roberts taking the decision to

sell the units in an effort to reduce its debts.

IDA funds for Burkina Fasopower sector win approval A US$50mn International Development

Association (IDA) credit to support Burkina

Faso's efforts to improve its electricity

supply and spread the use of renewable

energy sources in rural areas has been

approved by the World Bank; Burkina Faso

World Bank country director Mercy Miyang

Tembon said that Burkina Faso had made

"steady strides" in developing its electricity

capacity and connecting people in its cities

and rural areas to power.

World Bank to increase Nigerianinvestments in 2014The International Finance Corporation (IFC),

the World Bank's private-lending arm, has

said it will invest up to two billion in Nigeria in

2014 representing a 25 per cent increase in its

investment in the country; IFC country

manager Solomon Adegbie-Quaynor said the

funds, which will target industries in which

Nigeria is internationally competitive, would

be raised directly by the IFC or from other

international funding agencies.

The IDA's US$50mn credit will be used to increaseelectricity connectivity across Burkina Faso (Photo: Christian K/sxc.hu)

African Review of Business and Technology - September 2013 www.africanreview.com

Aliko Dangote has started to invest in Nigeria'spetrochemical and agricultural sub-sectors(Photo: World Economic Forum)

African private equity performed in line with or ahead ofAsian and Latin American private equity during the 10-year periods ending in 2010 and 2008 (Photo: Andres de Wet)

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The future of rail transport in southern Africa hinges on advances incountries such as Swaziland that ensure the region’s rail systems allwork in harmony. Never has the development of a transportationindustry been so firmly dependant on correcting past practices.

During the 19th and 20th centuries, when African nations’ rail systemswere linked to the rail technology of the respective colonial power thatadministered their territories, rail systems developed independently.http://www.africanreview.com/transport-a-logistics/rail/

24

WEB SELECTION

Swaziland’s rail advances mirrorsouthern Africa’s rail growth

Swaziland’s rail system isundergoing its most crucial line expansion in three decades(Photo: Steve Ventress/Flickr)

African Review of Business and Technology - September 2013

African Review/On the WebA selection of product innovations and recent service developments for African businessFull information can be found on www.africanreview.com

www.africanreview.com

Kenya has revealed plans to partner with Tanzania for the production of geothermal power inan attempt to increase energy production in the East African region.

A delegation of senior government officials and members of Tanzania’s parliamentary committeeon energy and mining recently discussed geothermal energy developments in Kenya with the aimof understanding capacity building, licensing and how to attract investors for the partnership.http://www.africanreview.com/energy-a-power/renewables/

Kenya and Tanzania to cooperate in geothermal power production

Angola’s environmentminister, Fátima Jardim, andgeology and miningminister, Francisco Queirós,have met to discuss theenvironmental impact ofdiamond exploration in theIntegral Deposit of Luando innorthern Malanje province. Analysing a PresidentialMemorandum on thesubject, Jardim said that theauthorisation of diamondexploration in the region will now only be grantedwith the permanent monitoring of a teamcoordinated by the environment department.http://www.africanreview.com/construction-a-mining/excavation/

Angola to act on impactof diamond exploration

Diamond miners inAngola's LuandoDeposit have beenreminded to adhereto the country'sMining Code andEnvironmental Law(Photo:CazGDesign/sxc.hu)

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26 African Review of Business and Technology - September 2013 www.africanreview.com

New identities for ‘cashless’ Nigerians With 100mn cards to be handed out, Nigeria's identity card programme isthe largest of its kind in Africa

The Nigerian National IdentityManagement Commission (NIMC) andMasterCard are conducting a roll-out of

13mn MasterCard-branded National IdentitySmart Cards with electronic payment capabilityas a pilot programme. The National IdentitySmart Card is the card scheme under therecently introduced National IdentityManagement System (NIMS). This programme isthe largest roll-out of a formal electronicpayment solution in the country and thebroadest financial inclusion initiative of its kindon the African continent.

Impact technology In the programme's first phase, Nigerians 16years and older, and all residents in the countryfor more than two years, will get the newmultipurpose identity card which has 13applications. These include MasterCard’sprepaid payment technology that will providecardholders with the safety, convenience andreliability of electronic payments. It is hopedthat this will have a significant and positiveimpact on the lives of these Nigerians who havenot previously had access to financial services.

The project will have Access Bank Plc as thepilot issuer bank for the cards and UnifiedPayment Services Limited (Unified Payments)as the payment processor. Other issuingbanks will include United Bank for Africa,Union Bank, Zenith, Skye Bank, Unity Bank,Stanbic, and First Bank.

Dr Ngozi Okonjo-Iweala, minister of

finance and coordinatingminister for the economy inNigeria, stressed the importanceof the National Identity SmartCard Scheme in moving Nigeriato an electronic platform.

"This programme is goodpractice for us to bring all thecitizens on a common platform forinteracting with the variousgovernment agencies and fortransacting electronically," she said."We will implement this initiativein a collaborative manner betweenthe public and private sectors, toachieve its full potential ofinclusive citizenship and moreeffective governance."

The new National Identity SmartCard will incorporate the uniqueNational Identification Numbers(NIN) of duly registered persons inthe country. The enrolmentprocess involves the recording ofan individual’s demographic dataand biometric data (the capture of10 fingerprints, facial picture anddigital signature) that are used toauthenticate the cardholder andeliminate fraud andembezzlement. The resultantNational Identity Database willprovide the platform for severalother value propositions of theNIMC including identityauthentication and verification.

Individual identification schemesOther identification card schemes like thedriver’s licence, voter registration, healthinsurance, tax, SIM and the National PensionCommission (PENCOM) can all be integratedinto the multi-function card scheme of theNIMS using the NIN. When fully utilising thecard as a prepaid payment tool, the cardholder

can deposit funds on the card, receive socialbenefits, pay for goods and services andwithdraw cash from all ATMs that acceptMasterCard. Card security will be ensured by theEMV Chip and Pin standard.

Upon completion of the National IDregistration process, NIMC aims tointroduce more than 100mn cards toNigeria’s 167mn citizens. ■

The enrolment process for the NISC involves therecording of an individual’s demographic and biometricdata

ID CardsECONOMY

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Aliko Dangote, president and CEO ofDangote Group, recently highlightedthe prospects and opportunities

associated with business matters in sub-Saharan Africa - and, particular, the rewardsfrom engagement by Nigerian enterprisesacross the continent.

Dangote’s own business strategy has paidoff. The year 2012 was particularly good forthe group, in terms of its excellentperformance commercially and fiscally.During 2012 Dangote launched a number ofprojects, including a fertiliser plant and an oilrefinery. These are big ticket projects. Dangoteis also looking at establishing more cementplants and expanding its sugar business inline with the new federal governmentbackward integration policy. Its businessstrategy has been to look at the country’simports and invest in critical areas of need.

By so doing, Dangote has helped to makeNigeria self-sufficient in some commoditiessuch as cement, and also a net exporter ofthese products, specifically within theEconomic Community Of West AfricanStates (ECOWAS).

Investing in growthThere are many investment opportunities inNigeria, and many more across Africa forNigerians. Discerning investors know this andare actively looking for their own slice of themarket. The only thing keeping others back isthe issue of the negative perception thatsome people have about the continent - butthings are changing fast. With increasinglypositive perception, Africa has become one ofthe fastest growing regions in the world.Consider, too, that the return on investmentin Africa is one of the highest in the world. So,the potential for growth is there. There is aclear need to transform this potential intoreality. In addition, one has to be innovativein this market. If you bring a textbooksolution and try to apply it here, it won’t work.

Many will affirm that the best market todayis sub-Saharan Africa and Aliko Dangoteshared with African Review his view thatthere is no country where you can makemoney like Nigeria.

“The opportunities here are sotremendous,” he said.

Balancing growth trajectories withprofitabilityA key concern for Dangote is the need tomaintain a balanced corporate structure,which is consistently geared towards viable,sustainable growth. Diversification is key. Hesaid, “We are currently diversifying ourbusiness. Some businesses will have greateror lesser profitability depending on theindustry. In petrochemicals or refinery, forinstance, the refining margin is low, perhaps

no more than 10 to 12 per cent, but what weare doing is not just refining, we are alsoextracting a lot of high-value items out of theimport pool. That requires a huge investment.

“For example, today, I don’t control all ofthe costs in my sugar business because Idon’t grow my own sugar. I only add value. Ifthe cost of raw sugar goes up too high, I can’tmake much money but if it falls, I can makemore money,“ Dangote said. “By producingsugar, you end up with excess capacity.When you crush the by-product, you end upwith a shell which can power high-pressureboilers to produce power, which you canpass through the national grid. You produceethanol which you can mix with diesel forfuel and other by-products can be used foranimal feed. So there is no waste and it isabout value distribution and putting thingsback into the economy, includingemployment. “

The biggest issue, according to Dangote,is the lack of infrastructure - but he ispositive about the future. He believes thatthe continent’s politicians are gearedincreasingly towards policies that enablethe delivery of infrastructure specificallybuilt to facilitate investment andaccommodate business.

Technology is also a critical component ofgrowth. Dangote said, “Technology is key tobusiness. Without the right technology, thereis no way that you can grow your businessbeyond a certain level. We have state-of-the-art technology in our plants. This has made usmore efficient.” ■

NigeriaECONOMY

28

A pan-African agendafor Nigerian enterpriseDangote’s leadership is confident about growth prospects going forward,in Nigeria and across sub-Saharan Africa

Aliko Dangote is President and CEO of Dangote Group, oneof the most diversified business conglomerates in Africa.

African Review of Business and Technology - September 2013 www.africanreview.com

The group’s activities encompass cementmanufacturing, sugar and salt refining, flourand semolina milling, pasta, noodlesmanufacturing, poly products manufacturing,port management and haulage logistics, realestate and the Dangote Foundation.

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30 African Review of Business and Technology - September 2013 www.africanreview.com

ECONOMY Botswana

Diversification to ensureBotswana’s stabilityBotswana’s economy has weathered many of the most severe effects of theglobal economic storm, but the country’s future prosperity could hinge onhow well it can maintain its programme of economic diversification

Botswana’s traditionally buoyant economy,fuelled by the country’s impressivenatural resources, was assessed and

profiled by a recent International MonetaryFund (IMF) mission. The IMF team, led by theorganisation’s mission chief for Botswana andNamibia, Lamin Leigh, visited Gaborone fromJune and July 2013.

The team conducted discussions to reviewrecent economic developments as well asprospects and policies to ensure Botswana’scontinued macroeconomic stability andgrowth. The mission met with the minister offinance and development planning, O.K.Matambo, Bank of Botswana governor, Linah K.Mohohlo, permanent secretary for Ministry ofFinance and Development Planning, SolomonSekwakwa, and senior government officials,development partners, and representativesfrom the private and public sectors.

Leigh outlined the IMF mission's preliminaryconclusions in a statement, saying thatfollowing two years of strong growth followingthe global economic crisis, the growth of realGDP had fallen to just four per cent in 2012. Thisslowdown in growth was driven by the reducedglobal demand for diamonds, which continuedinto the first quarter of 2013, said Leigh.Botswana’s level of inflation had, by the end ofMay 2013, reduced to 6.1 per cent from a levelof more than nine per cent in December 2011,bordering the Bank of Bostwana’s target rangeof three to six per cent. The overall outlook forthe country’s economy remains positive.

Prudent management“Botswana’s fiscal and external positionsremain strong thanks in large part to thegovernment’s prudent macroeconomicmanagement,” said Leigh, adding that thebudget for the 2012/13 fiscal year wasbalanced for the first time since the financialcrisis of 2008/09. Real GDP growth for theremainder of 2013 is expected to remainstable at four per cent while headline

inflation is expected to drop further in thefirst quarter of 2014.

Leigh’s statement also praised thegovernment’s efforts to simplify the tax systemand credited Botswana’s banking system forbeing “profitable and well-capitalised withrelatively low non-performing loans andadequate buffers to smooth shocks”. Thegovernment was also commended for its focuson greater private sector development andeconomic diversification, as put forward in therecent review of its 10th National DevelopmentPlan (NDP10). Indeed, Botswana’s efforts todiversify its economy look set to pay off,according to the IMF, with non-mining growthexpected to offset the continuing slump inmining production.

The UN continues to assist Botswana in theareas of capacity building and the provision ofadvisory services. Botswana's government co-funds UN activities and accounts for 60 per

cent of the total country programme budget.The programme supports activities builtaround five strategic areas:● Economic diversification and poverty

reduction● Governance and the promotion of human

rights● Health and HIV/ AIDS● Environment and climate change● Children, youth and women empowerment

The UN and the government of Botswanarecently announced a revised version of theirProgramme Operational Plan (GoB-UN POP) tobring the plan’s core aims in line with NDP10and the country’s national framework for thefuture, Vision 2016, to help make its MillenniumDevelopment Goals (MDGs) a reality. Therevised plan was signed during a ceremony byboth the government of Botswana and fifteenagencies of the UN.

Joint targetsThe government and the UN use joint annualplans to set themselves targets to achieveintended goals. The five implementingministries are the Office of the President, theMinistry of Finance and DevelopmentPlanning, the Ministry of Health, the MinistryOf Wildlife and Tourism and the Ministry OfLocal Government.

The current, overall analysis of the progresstowards achieving the MDGs is positive and thegovernment and people of Botswana havepulled together to harness the country’sresources. The UN has however highlightedthat major steps need to be taken immediatelyto ensure that HIV/AIDS does not wipe outmany of the development efforts andachievements since the country’sindependence in 1966. “Going by currenttrends achieving all the MDGs, or ensuring thatprogress in vital areas is not eroded will prove avery serious challenge to Botswana,” the UNsaid in a statement. ■

Jwaneng Diamond Mine: Renowned forits diamond production, Botswana’s

government has taken various steps todiversify the country’s economy

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FINANCEInvestment

31

The bestbond buysWith increased access to the world’scapital markets, African countries areeager to raise private capital in orderto complement foreign currencyneeds and reduce their over-relianceon official development assistance

African Review of Business and Technology - September 2013www.africanreview.com

“Easy global financial conditions – low interest rates inadvanced economies and low global risk aversion leadingto portfolio reallocation in search of risk-adjusted yields

and diversification opportunities – are facilitating access of sub-Saharan African countries to international capital markets,”explained the International Monetary Fund (IMF).

Outside South Africa, between 2006 and the first-half of 2013,twelve countries have issued foreign-currency bonds. They includeresource-intensive and more diversified economies, as well ascountries from different income groups and debt levels. In total, aquarter of the 49 sub-Saharan African (SSA) countries have soldEurobonds. They are Seychelles, Ghana, Gabon, Republic of Congo,Senegal, Côte d’Ivoire, Nigeria, Namibia, Zambia, Tanzania, andRwanda (see table). Angola sold US$1bn of debt with a quasi-Eurobond structure in August 2012.

The latest issue was from Nigeria, Africa’s largest frontier market,which on July 2nd raised US$1bn in two Eurobond papers - aUS$500mn five-year bond at a yield of 5.37 per cent and aUS$500mn 10-year bond with a yield of 6.62 per cent, shortly beforeRwanda’s maiden (US$400mn) Eurobond. The Nigerian offering wasfour-times oversubscribed due to its strong fiscal position,structurally sound macro- economic fundamentals and low debt-to-

GDP ratios (below 20 per cent). While the Rwandan offering – led byCitibank and BNP Paribas, attracted 250 investors and closed withan order book worth more than US$3.5bn (half of Rwanda’s totalGDP). Fitch Ratings believes the Rwandan bond will "enhance thecountry's external debt profile, support GDP growth and helpattract investment".

Positive sentimentIn several cases, the African sovereigns are able to borrow either atpar with or lower interest rates than some Eurozone countries, e.g.Slovenia or Greece and under favourable conditions, such as longerrepayment periods. Although borrowing costs are historically low,SSA’s Eurobond yields are still attractive to induce foreign interest.

“US dollar interest rates are at all-time lows and there’s plenty ofliquidity around," said Florian Hartig of Standard Bank. "I doubt any

sub-Saharan Africa: Sovereign Bond Issuances Date Yield at issue Maturity years Spread(in bps) Size $ mn. Creadit Rating at issue Currency Covering Laws

Seychelles Sep-06 9.46 5.0 470 200 B (S&P) US dollar EnglandGhana Sep-07 8.50 10.0 387 750 B+ (S&P) US dollar EnglandGabon Dec-07 8.25 10.0 426 1,000 BB- (S&P) US dollar USARep. of Congo Dec-07 8.77 22.0 458 480 Not rated US dollar LuxembourgSenegal Dec-09 9.47 5.0 691 200 B+ (S&P) US dollar EnglandSeychelles Jan-10 N/A 16.0 N/A 168 B (Fitch) US dollar EnglandCote d'Ivoire Mar-10 17.35 22.0 393 2,330 Not rated US dollar FranceNigeria Jan-11 7.12 10.0 372 500 B+ (S&P) US dollar EnglandSenegal May-11 9.12 10.0 583 500 B+ (S&P) US dollar LuxembourgNamibia Oct-11 5.83 10.0 336 500 Baa3 (M) US dollar EnglandZambia Sep-12 5.62 10.0 384 750 B+ (S&P) US dollar EnglandTanzania Feb-13 N/A 7.0 600 600 Not rated US dollar EnglandRwanda May-13 6.87 10.0 N/A 400 B- (S&P) US dollar England

*Spread calculated as fixed spread above London Inter-bank offered rate (LIBOR).S&P= Standard & Poor's; M= Moody's Investors Service. N/A= Not available.Source: Dealogic and Bloomberg, LP.

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BondsFINANCE

32

sovereign issuing today would look back in three years and have anyreason to be upset."

Given the limited supply of African sovereign debt denominatedin hard-currencies, regional strong growth coupled with highdemand should keep yields relatively low in the six to seven percent range over the medium-term.

Credit ratingAdditional economies could access global bond markets in thenext one to two years. Among them are Kenya, Uganda,Mozambique and Cameroon as first-time issuers; and Ghana,Namibia, Nigeria, Senegal, South Africa, Angola and Zambia asrepeat issuers. These countries have a credit rating, a conditionfavouring issuance, plus they have developed institutional capacityin the area of public debt management, including the setting up ofa dedicated debt management office – with assistance from themultilateral institutions.

In practice, SSA sovereign bond issuers have many elements incommon. Excepting South Africa, all countries have denominatedtheir sovereign bonds in US dollars. Most of the bonds are traded onthe London Stock Exchange – the bulk of which can be sold to USinvestors without registering at the Securities and ExchangeCommission because they are issued under 144A Rules and USRegulation S. Sizes and maturities have varied. The largest issues(excluding South Africa) have been associated with debtrestructuring operations, e.g. Cote d’Ivoire. Most sovereign bondshave exceeded the minimum threshold of US$500mn, which istypically required for inclusions in JP Morgan's emerging marketbond indices. Maturities have typically been about 10 years.

Why issue bonds?Access to international markets brings opportunities to investorsand sovereign borrowers. In effect, every African economy has ahuge infrastructure deficit (notably in energy and transport sectors).Eurobond proceeds can be crucial to financing capital projects withhigh ‘economic multipliers’ that often require resources exceedingaid flows and domestic savings. According to Rwanda's Minister ofFinance and Economic Planning, Claver Gatete, the Eurobondproceeds will be for priority projects such as US$150mn for theconstruction of Kigali Convention Centre and US$50mn to build a28MW hydro-electric dam, while some US$80mn will refinance debtfor national carrier, RwandaAir.

Sovereign bond issuance can help reduce debt-servicing costs bysubstituting outstanding public external debt contracted at higherinterest rates with sovereign bonds having lower coupon rates, longermaturities, and no amortisation for a significant time. For instance,

Senegal issued a 10-year US$500mn Eurobond in the first half of 2011,replacing a five-year US$200mn bond issued in 2009; this allowed it toobtain a significant maturity extension. Ghana is also looking torefinance its 2007 US$750m note with another Eurobond.

Global issuance provides a benchmark for pricing privatecorporate papers. Over time it expands the yield curve, and helpsbusinesses and parastatals to access global capital markets. Forexample, following Zambia’s 2012 maiden Eurobond, the state-owned Zambian railway operator, Zambian Road DevelopmentAgency, and the municipal government of Lusaka are reportedlyplanning to raise additional funds via bond issuances. In Nigeria,Eurobond trading in the secondary market has been used as areference for sub-national and corporate bond issues – i.e.providing information for assessing the yield spread at which acountry’s foreign currency debt is currently being traded.

Four countries (Seychelles, Gabon, the Republic of Congo andCote d’Ivoire) specifically issued international bonds in the contextof debt restructuring, including clearing arrears to multilateral andcommercial creditors. In 2007, Gabon’s Eurobond proceeds wereused to buy back at a discount of 15 per cent the country’soutstanding loans to Paris Club creditors.

Promoting transparencyTapping fixed-income markets can strengthen the macro-financialdiscipline of respective issuers. It can also promote transparencyand structural reforms because of increased scrutiny by strategicinvestors as well as debt ratings agencies – principally Standard andPoor’s, Moody’s and Fitch. Nigeria’s macroeconomic policies havecontinued to improve following its first presence in global marketsduring early 2011. Generally, issuers use credit ratings tocommunicate the relative credit quality of debt issues, thusexpanding the universe of investors. They also help nationalauthorities to anticipate the interest rate to be offered on theirfuture debt offerings. Hence, the more creditworthy an issuer, thelower the interest rate paid on debt securities and vice versa.

The success of prospective further issuances depends on continuedinvestors’ appetite for frontier bonds, overall liquidity conditions andsearch for high yields. Whether the appetite for African bonds issustainable over the long term is, however, debatable. ■

Moin Siddiqi, economist

Sovereign bond issuance can helpreduce debt-servicing costs

African Review of Business and Technology - September 2013 www.africanreview.com

The major credit rating agencies express ‘considered opinions’ about the capabilityand willingness of an issuer to service its financial obligations in ‘full’ and ‘on time’.

Typically, ratings are expressed as letter grades, which range from: ‘AAA’ – extremely strong ability to meet debt-servicing commitments; ‘BBB’ – adequate capacity to service debt, but more subject to adverse economicconditions (i.e. external shocks); ‘B’ – more exposed to adverse business conditions but currently possess the capacityof meeting financial obligations; ‘CCC’ – payments of debt commitments depend strictly on favourable externaleconomic climate; ‘CC’ – currently highly vulnerable to debt default; and ‘D’ – the risk of outright payment default on financial obligations.

Ratings Definitions

Foreign currency-denominated debt asper cent of GDP; Short-term externaldebt per cent of gross foreign (official)reserves; Interest payments per cent oftotal exports; Import-coverage by forexreserves (months); Current accountsurplus or deficit per cent of GDP;Average real GDP growth and Averageinflation (over a five-year period); andCentral government balance (i.e. budgetsurplus or deficit) as per cent of GDP.

Factors AffectingSovereign Risk

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South Africa’s joining of the BRICS grouping has been toutedby experts as a development that will benefit Africancountries in the Southern African Development Community

(SADC). It has also been observed that African countries should,however, undertake domestic reforms to benefit from the treaty.

BRICS members have emerged as centres of economic growth asdemonstrated by global rankings. These member states contributehalf of the world’s economic growth and trade with the rest of theworld was US$5.6 trillion in 2012, 16 per cent of total global trade.

It is a fact that the BRICS countries constitute the principaltrading partners of Africa and the largest new investors with Chinaleading the pack. BRICS-Africa trade is expected to grow to aboutUS$530bn in 2015 from US$150bn in 2010 while BRICS foreigndirect investment (FDI) into Africa is set to jump to aboutUS$150bn in 2015 from US$60bn in 2009, according to StandardBank, which trades in Zambia as Stanbic Bank. In 2012, BRICS-Africatrade was pegged at US$340bn.

Interestingly, BRICS member countries trade more with Africathan they do amongst themselves. Trade among BRICS memberswas at US$310bn in 2012, up from US$28bn in 2002. With theabove scenario, riding on the anticipated trade and investmentpartnerships between Africa and BRICS, it is imperative that themember states have the developing continent within their sights.

As South African President Jacob Zuma has observed, the BRICS-Africa partnership should provide a solution to addressinginfrastructure challenges that continue to dog the continent.

"Sub-Saharan Africa achieved strong growth of more than fiveper cent in 2012 which will continue in 2013, notwithstanding thefairly weak, but improving growth prospects in the rest of theworld," said Zuma in his address to the recent BRICS summit inDurban, South Africa. "African countries are fully committed tomaintaining the momentum on reforms, to induce higher growthsupportive of poverty reduction. We must, therefore, work togetherto support the unyielding efforts of our people to strive towards abetter life, including and especially in sub-Saharan Africa [which is]so rich in, albeit complex, opportunities."

The summit saw leaders express their support for infrastructuredevelopment in Africa and its industrialisation and also sawdiscussions surrounding the development of the BRICSDevelopment Bank. A multilateral agreement on infrastructure co-financing for Africa will have a direct impact not only on themember states but Africa and other developing countries is, as willagreements on the green economy, skills development,

manufacturing and industrialisation. The bank aims to address theinfrastructure needs of member states and other countries. It istailored to complement the existing efforts of multilateral andregional financial institutions for global growth and development.

The BRICS group of countries has also agreed to establish aUS$100bn Contingent Reserve Arrangement, which will cushionany economic problems within the members' markets. Somestakeholders see the ascension of South Africa to the chair of thegroup as an integral component of enhanced cooperation betweenthe BRICS members and Africa.

Spearheading the BRICS-Africa agenda is critical, taking intoconsideration the continued growth in trade between BRICSmember states and Africa, according to regional think-tank theSouthern African Institute of International Affairs (SAIIA).

"The BRICS is also an important source of foreign directinvestment for Africa, investing in infrastructure development, theagricultural sector and in the case of China, in industrial zonesdesigned to help integrate Africa in global value chains," SAIIAsenior researcher for economics and diplomacy, Memory Dubesaid.

African countries should seize this rare trade opportunity andtap into the benefits of South Africa being a member of thispromising ‘club’ that can fundamentally change the configurationof the continent’s business prospects. ■

Nawa Mutumweno

BRICSFINANCE

34

Unlocking investmentpotentialWhat South Africa's membership ofthe BRICS grouping means for thecontinent's commercial interests

South African President, Jacob Zuma, has stressedthe importance of utilising South Africa's BRICS

membership to benefit all African countries

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FinacleBuilding Tomorrow’s Enterprise

T he banking sector and its dynamics can often be a reflection of the larger growth story of a country. Going by this dictum,

Africa’s robust banking industry sure tells astory of tremendous growth for a continentthat has seen a chequered history. Over the lastfew years, Africa’s banking sector has madegreat strides by riding on the many economicand technological developments, which havealso made a vast impact the world over.Advanced financial services systems such asInfosys Finacle have played a definitive role inmodernising and strengthening the Africanbanking system.

The industry is now past the pervasiveliquidity and solvency crises of the 1970s and80s in countries such as Benin, Cameroon andMadagascar, which had left a deep dent oncommercial banks and their supervisory bodies.Today’s statistics are indeed encouraging. In2012, the total assets of 200 largest banks inAfrica stood at approximately US$1,110 billion,with a Net Banking Income (NBI) of US$45billion.

From the rudimentary banking practices ofthe 1970s, to the 1990s traditional physicalbanking, to reaching today’s advancedtechnology-based practices, African bankingsector’s is a saga of revolutionarytransformation. Enhanced banking practicesand structural changes have powered themodernisation of Africa’s banking industry.Existing banking institutions are posting goodresults, and are improving their operating andperformance indicators, as they are moreresilient, and also adhere to higher professionalstandards. But above all, technology such asInfosys Finacle has played a dominating role intransforming the banking landscape in Africa.As a growth market and one of Finacle’s firstentry market, Africa is a strategic priority for theproduct and business unit.

“Finacle has been empowering African banksto maximise their opportunities for growth,

while reducing the risks associated with large-scale business growth and transformation,” saysVenkatramana Gosavi, Regional Head, GrowthMarkets, Infosys. Finacle serves about 168clients in 81 countries and has a growinginfluence in the global banking world.

Key Growth Accelerators Several critical factors are influencing thegrowth trajectory of Africa’s bankinginstitutions. A few of the key indicators include:

● Financial sector reforms: These havestrengthened Africa’s financial governanceand regulation, enhanced the paymentinfrastructure as well as increased financialaccess.

● Payments reform: They have contributed toenhanced revenue and growth opportunitiesin transaction services.

● Increasing trade and open economies:African countries with strong resource andcommodities institutions have been able todrive economic development. Increasing FDIand investment in infrastructure are alsogenerating massive financing opportunities.

● Technology: This serves as one of the mostpowerful criteria driving much of thechanges and enhancements in the bankingspace. From cards and point of sale, tomobile phones, the latest technology hasfacilitated increased access, extended reachand reduced costs.

Infosys Finacle is the solution of choice forAfrican banks because it understands thepressing needs of banks in these markets,including core banking revamp, dailyreconciliations, improving efficiency byavoiding manual efforts, and reaching a largelyrural population.

“Finacle also offers the right solution suite tomap to business challenges such as corebanking, and treasury and mobile banking,”emphasises Gosavi.

The Infosys Finacle team gathers a strongbusiness understanding of the bank’s needs,and proposes solutions benchmarked againstindustry frameworks and standards. The teamexecutes projects with commitment to targetdates and with complete control over businessrisks.

The company has also been positioned as aleader in the Gartner Magic Quadrant 2012 forInternational Core Banking 2012.

Strengthen and sustain success by leveraging the latest technologyEven as they retain their distinct and uniquecharacter, African banks are taking the rightsteps to grow and increase their bottom lines,primarily through the right technology toolsand techniques.

International banks operating in Africa have acentralised business structure, with greaterfocus on trade finance, corporate andconsumer banking. They function based on ahub-and-spoke structure, where the hub isbased in the head office. However, Africanbanks mostly target small and mediumenterprises (SMEs) and retail, and strive to buildloyalty among their customers.

PROFILE

36

African banking at thecusp of transformation

Infosys’ Finacle helps drive innovations andquicker growth among top African banks

Mr. Venkatramana GosaviRegional Head, Growth Markets, Finacle

African Review of Business and Technology - September 2013 www.africanreview.com

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PROFILE

37

They also enjoy a decentralised decision-making process. Their lending decisions are alsoinfluenced by the relationship the client enjoyswith the bank.

In the new scenario, foreign bank subsidiarieshave lost their dominance. The new leaders inAfrica’s banking space come from severalcountries, such as Morocco, Nigeria, SouthAfrica and, more recently, Kenya and Gabon.Banks in these countries are driven by theoverwhelming ambition to expand. Hence, theyare seeking new markets throughout the sub-Saharan Africa, and are expanding either byacquiring an existing bank or by creating anentirely new entity.

In this context, advanced technology-enabled financial services solutions facilitateintegration across multiple channels, and helpdeliver a standardised and coherent experienceto all customers across channels and branches.Infosys Finacle has been the right supportingpartner for top banks in Africa bringing not justproduct fit but delivery and implementationexcellence to the table. One of the largest banksin sub-Saharan Africa opted Finacle universalbanking solution, to drive its core banking,corporate e-banking, alerts, and CRM.

“The bank partnered with Infosys Finaclebecause of its proven track record in Nigeria,”explains Gosavi. Infosys has dedicatedengagement teams for individual accounts andfocused business development teams thatunderstand bank requirements and howtechnology maps to business needs. This hasbeen a critical reason for the successfuladoption and implementation of Finacle acrossAfrican banks.

Banks are not just relying on branchnetworks, but also digital channels such asinternet and mobile to improve penetrationand reach. Banking products and services arealso multiplying and becoming moreinnovative, based on e-payment, Internet andmobile banking technologies. Latesttechnology such as Finacle ensuresinfrastructure scalability and supports the largerange of functionality the banks require. Infosyshas been able to deliver quality bankingservices through Finacle because of its strongprofessional services team that comprises anintegrated delivery and support services unit, aswell as regional support centres based in Africaand Middle East to support customers roundthe clock. It also offers an extended supportnetwork of strategic partners who offerconsistent support to the banks under allcircumstances.

More and more African institutions need toembrace new technologies and "optimise"processes to increase staff productivity.

Another imperative is to check fraud tominimise losses. This can be achieved by

efficiently managing risks. The solution lies inestablishing credit worthiness; deployingmobile phones to verify identification, andcarrying out due diligence and advancedanalytics of the self-employed sector to buildtheir financial profile. Technology can easilyfacilitate these and also help mitigate risks.

The number of online banking threats is alsoon the rise, with more than 125,000 newmalicious programs generated everyday,according to the Russian multi-nationalcomputer security company Kaspersky. Hence asound system must be in place to counter fraudand data vulnerability threats. The continueddisruption in the payments business must beeffectively managed. Banks are increasinglyresoting to e-banking solutions, which provereliable and secure, and deliver leading edgeprotection through multi-factor authenticationand access control. Also, banks must offermicro-savings, microcredit and micro-insuranceofferings to the low income groups. A lowercost point to serve large numbers of low valueaccounts is also critical.

“Strong technology infrastructure, such asthose provided by Infosys Finacle, can providethe necessary stimulus for financial inclusionand continued growth,” believes Gosavi.

Developing and promoting innovative newfinancial services products such as Finacle willenable African banks to improve on theircurrent success.

These technology enhancements can alsofacilitate the complete modernisation of Africa’sretail and commercial banking services. Forinstance, in a bid to enhance its digitalcommerce solution, a large tier- 1 bank in SouthAfrica decided to choose Finacle. This hashelped the bank to identify new revenuestreams such as instant cashless payments andvibrant commerce between merchants andconsumers. Finacle has also been providinginnovative, secure and reliable bankingsolutions for many African countries includingNigeria, Uganda, Tanzania, Mozambique, andJamaica.

More challenges and the way outAlthough, African markets are expanding andbecoming more integrated; and trade flows arebooming, the need of the hour is a stable andwell-performing banking sector that cancapitalise on economies of scale. To ensureviability and profitability, they must aim to growregionally, moving beyond their local borders.The regional expansion of the I&M Group inMauritius, Tanzania and Rwanda is a fineexample of a step in the right direction.

Banks also must look at lowering the cost oftheir operating model to deliver proficientservices to large, low-income populations at anaffordable price. Self-service through ATMs and

multi-functional ATMs, direct channels forbanking, and promotion of card/mobilepayment must be promoted on a large scale.

The challenge is to make banking easy anduseful for customers even as it is profitable forproviders. Banks need to work out reliablepartnerships with mobile companies for asuccessful service model. These models mustbe tailored to suit the local culture andrequirements. Technology, such as Finacle,cannot be ignored in this whole equation, asthey enable African banks to implementinnovative services and products thataccelerate the overall economic growth.

Technology serves as a strong transformationpartner to support the banking institutions’branch network expansion and businessgrowth. For instance, to support over 1.3 millionuser accounts and to fuel its growth strategy,one of Nigeria’s oldest banks chose InfosysFinacle. The Infosys banking product belongs toa family of new technology which can enablethe consolidation and integration of multipleexisting systems at banks and eliminate thecost of operations across all branches.

“Banking solutions built on robust,configurable and extensible architectures, suchas Finacle, allow seamless deployment withmultiple host systems. These are what theAfrican banking sector needs to embrace forongoing growth, which can also have acascading impact on the overall economy ofthe continent,” stresses Venkatramana Gosavi.

The last wordPrimitive and traditional ways of banking havelong become obsolete in this part of the world.Today, technology, and modern practices andstandards have infused the banking industrywith advanced capabilities and efficiencies,which are slowly reaching the largely untappedpopulation.

The bottom line is that the industry is gettingcloser and closer to the customer throughbetter services and products powered bytechnological enhancements. If security isaddressed through strong fool proofmechanisms, the banking sector is sure to stayahead of risks and competition.

The keys to continued success areinnovation, technology, and secure data. Data isalso the new oil which must be tapped by theAfrican banks to drive innovation , and leadchange.

The revolution seems to have only begunand is poised to reach a great of maturity in thelong run. By strengthening its best practices, byhaving a foresight, by adapting quickly to thechanging market dynamics, and by adoptingthe latest financial services solutions and tools,Africa’s banking sector can set a fine examplefor the rest of the world. ■

African Review of Business and Technology - September 2013www.africanreview.com

FinacleBuilding Tomorrow’s Enterprise

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AKenyan-based private education chain -Bridge International Academies - hasbeen demonstrating the potential that

educationa and training enterprises hold interms of service delivery and profitability.Starting at the height of the post-electionviolence in early 2008 by two Americans and aSwiss-Canadian national, this educationbusiness has grown to post revenues of morethan US$500,000 while only targeting the lowincome informal settlement population.

“Even with the political instability of 2008 inKenya, the country had a huge needy andpotential market, a pool of highly educatedprofessionals and clients looking for qualityaffordable education for their childrenespecially in low income slum areas”, observedJay Kimmelman, the CEO and co-founder, andone of three investors who decided to risktheir seed capital and set up the privateeducation academies. The business -comprising primary school academies - mainlyin low-income areas - have grown from thefirst one set up at the seedy Mukuru kwaNjenga slum, in the outskirts of Nairobi to 84academies countrywide. Nairobi and itsenvirons has 23 academies in informalsettlements of Dandora, Kawangware, Githuraiand Mukuru kwa Reuben.

Dr Shannon May, a co-founder and the chiefstrategic officer during an interview withAfrican Review at the company’s headquartersalong Mombasa Road in Kenya’s IndustrialArea, described how the company had grown -by charging low fees, using technology to cutcosts and identifying needy areas - to 135 sites.

The company undertakes market research,identifies viable areas to set up an academy -buying or leasing land and then constructingour classes using local constructors. “Classesare also constructed to mimic the localbuildings to minimize theft”, notedKimmelman, an American national.

In most areas, classes are constructed withiron sheets, timber or clay blocks to mimic the

surroundings and reduce the likelihood ofvandalisation. Equally, desks and otherfacilities such as toilets are built to fit into theexisting local standards. According toKimmelman, the parents are the clients andthe company has to provide quality educationfor the business to continue growing. He saysthat company’s turnover relies on the feespayments with no other source of funding.

“We engage positively with our clients toidentify areas of weakness and make changesto suit their needs. While our students followthe 8-4-4 system used in the country, we havedeveloped teaching materials that makelearning student friendly –making ourstudents outperform others in five years ofstudy,” said Kimmelman.

Well-structured for smart businessAn extensive tour given to African Reviewrevealed that Bridge International Academieshas well-structured departments, each dealingwith different aspects of the business- fromresearch, legal, real estate, construction,academy operations, human resource,marketing, Information technology andfinance. But it is the use of technology that hashelped cut cost in operations and staff.

“By using virtual technologies where ouracademies are located, we can encourage ourclients to pay school fees via MPESA or througha bank account at Equity Bank. So far, morethan 84 per cent of clients pay through themobile phone platform with the rest throughthe bank,” noted Phil Frei, president andfounder of Bridge International Academies. Headded that each academy has a manager andteachers - with no other staff - who areconnected to the company’s headquarters bysmartphones, with the relevant softwaredeveloped by the company itself.

“The smartphone applications connect staffin far-flung academies in real-time. Issues suchas payroll, academic performance, parents,fees payments and other issues can be solved

quickly without involvement of extra staff suchas bursars”, said Frei, a Swiss-Canadian nationalwho is also in-charge of informationtechnology at the company.

Bridge International Academies also has acall centre at its Nairobi office to handlequeries and issue emanating from theacademies. For their part, teachers have tabletswhere the curriculum, lesson plans, students’assignments, attendance and parent’sinformation is accessed quickly and efficiently.Each academy has 22 teachers when fullyoperational and 15,000 tablets are beingreleased to these staff who have to undergo asix-week specialised training.

“We hire staff from the neighbourhoods ofthese academies to create jobs and a sense ofownership. We also use local constructors andsource materials locally to reduce logisticalcosts,” said Dr Shannon, also an American.

Currently, Bridge is the only privatecompany in education that has invested insophisticated research tool and technology toidentify and acquire suitable land plots for theconstruction in informal settlements. Use ofGIS survey equipment, satellite imagery andmarket intelligence has helped acquirehouseholds information and land availability.

With the success of the Kenyan business,Bridge International plans to venture intoemerging markets mainly in Uganda, Nigeriaand India.

“We plan to have an enrollment of 10mnstudents globally and become the leadingprivate education company across the globe”,sums Kimmelman. ■

Mwangi Mumero

EducationTECHNOLOGY

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The virtual business ofhuman developmentBusinesses are capacity building to gain shares in thehuge profitability from low-income communities

Bridge Academy students with teachers using tablets inclassroom instruction (Photo: Mwangi Mumero)

African Review of Business and Technology - September 2013 www.africanreview.com

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TECHNOLOGYTelecommunications

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Opportunities torenew African businessThe critical role of high-speed international connectivity in the emergenceof African trade and commerce

African Review of Business and Technology - September 2013www.africanreview.com

Increasingly recognised as a vitally important player on the worldeconomic stage, Africa was home to six of the world's tenfastest-growing economies between 2001 and 2010. Analysts

anticipate an overall rise in GDP of between 5 and 7 per cent acrossthe continent as a whole in 2013, and for the period 2011 to 2015,no less than seven of the ten fastest-growing economies in theworld are expected to be in Africa – further boosting thecontinent’s position within the global marketplace.

Critical role of high-speed international connectivityIntegral to this growth has been the improvement in high-speedinternational connectivity, which has been brought about by asignificant uplift in international submarine capacity - deliveredthrough new, high-capacity cables and upgrades to existing systems –and a substantial increase in Africa’s terrestrial fibre networks.Together, these two factors are providing businesses and individualswith unprecedented, affordable and reliable access to Internet-enabled services, applications and capabilities.

Customers throughout Africa are displaying a seemingly insatiableappetite for the increasingly reliable, high-performance servicesenabled by the high-capacity bandwidth being brought to themthrough integration of the new and upgraded submarine cables withthe enhanced terrestrial networks.

Improved internet access and the increasing affordability of high-specification mobile handsets have contributed to the phenomenalgrowth of mobile, internet and data services in Africa over the past

few years, and these are playing a pivotal role in the economicexpansion of the world’s second largest continent.

Soaring mobile phone and internet usageIn December 2012, the World Bank reported the rapid expansion ofAfrica’s mobile phone market, from around 50mn subscribers in 2003to approximately 650mn at the end of 2012 – making it larger thanboth the European Union and the United States. Internet bandwidthhas grown enormously too, as hundreds of thousands of kilometres ofnew fibre-optic cables have been laid across the continent andmillions of dollars have been invested in new mobile technologies toserve an increasing number of the continent’s one billion citizens. Upfrom around 20 per cent in 2005, mobile penetration across the

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continent now exceeds 60 per cent and is expected to reach 75 percent by 2016 in sub-Saharan Africa. Mobile penetration globally isapproximately 85 per cent.

The growth in internet usage in Africa has also been staggering, upfrom 4.5mn users at the start of the century to more than 167mn atthe end of 2012. Unlike most other parts of the world, the relativelyhigh cost (compared to average income) of PC ownership and thelimited availability of fixed-line infrastructure in Africa have resulted inthe majority of this growth coming from mobile internet. In SouthAfrica, for example, more than 90 per cent of broadband internet isdelivered over mobile devices and in Kenya more than 98 per cent ofinternet access is over the mobile infrastructure. These changes, whichimprove how businesses in Africa operate and impact the way manyAfricans go about their daily lives, have only been possible with thedramatic advances made in the availability, reach, reliability, capacityand diversity of international submarine and terrestrial fibreconnectivity into, within and out of Africa.

Submarine and terrestrial expansionAt the beginning of 2009, only two international cables served sub-Saharan Africa: SAT3/SAFE, connecting a number of countries acrosswestern and southern Africa; and Atlantis-2, linking Senegal and CapeVerde to South America and Europe. Most international links useexpensive, low capacity satellite circuits, with the high costs severelyrestricting internet uptake and inhibiting rollout of broadband services.

Since 2009, nine new cables have gone live: Main One, Glo-1, WACS(West Africa Cable System) and ACE (African Coast to Europe) servingthe west African region; and on the east coast Seacom, TEAMS (The EastAfrican Marine System), LION2 (Lower Indian Ocean Network), SEAS(Seychelles East Africa System) and EASSy (East African SubmarineSystem). The total design capacity of international submarine cablesinto and out of sub-Saharan Africa is now more than 22Tbps.

As new submarine cables were landed, this strengthened thebusiness case for improving the reach, reliability and capacity ofterrestrial fibre networks within Africa.

Between 1995 and 2005, US$25bn was invested in the ICT sector insub-Saharan Africa, mainly by private operators and investors. Thisinvestment resulted in a rapid expansion of communication networks,and by 2006 more than half of the population of sub-Saharan Africawas living under a mobile footprint. In some African countries, such asKenya and Malawi, almost the entire population is now within rangeof a mobile network.

Ongoing investmentAccording to Hamilton Research, by Q1 2013 Africa’s total inventory ofterrestrial transmission networks had surpassed 785,500 km – enough towrap around the earth more than 19 times. This compares to a mere465,659 km in June 2009. Of the total inventory, 438,838 km is fibre-opticnetwork – representing the vast majority of new deployments. Over thelast 12 months, an average of more than 115 kms of new fibre networkentered service per day and there will soon be continuous interconnectedterrestrial fibre network running from Cape Town to Cairo.

Equally importantly, the new cables have also encouraged acompetitive market for capacity sales. As a result, Price increasinglybecame the key consideration in the purchasing decision forinternational submarine cable capacity into Africa. As wholesale pricesfell, operators were able to purchase more capacity to meet the ever-growing demands of their customers.

With increasing availability and falling costs of high-speedinternational connectivity into Africa, domestic and business end-users have become increasingly dependent upon thehigh-performance services on offer and the opportunities they create.From improved business efficiency and productivity, through to

accessing music and video streaming, online gaming and popularsocial networking applications such as Facebook, YouTube and Twitter,customers now want, expect and demand access to these Internet-enabled functions 24x7x365. This evolution in end-user expectationsheralded a further change in international capacity buying behaviour.The leading ISPs, telcos and carriers started to place greater emphasison securing network diversity to reduce the impact of individual cablecuts and other service-affecting disruptions, so that they could deliverthe high-quality services increasingly demanded by their customers.

In the most competitive markets, the discussion is no longer simplyabout whether or not to invest in diversity, it is now about havingsufficient diversity – truly redundant capacity on multiple cables. In suchcompetitive environments, a key consideration for carriers, nationaloperators and ISPs is to provide their customers with the highest qualityof service as excessive downtime risks an exodus of customers to ‘morereliable’ competitors. This means ensuring they have sufficient capacityand enough diversity across the right networks – i.e. those that will bestserve them and their customers in terms of service continuity, networkresilience and network management.

As a result, purchasing in the international African capacity markethas recently begun to evolve a step further, with the focus increasinglyshifting from simple diversity to securing a high-quality network. Here,quality encompasses many different aspects of the overallinternational capacity offering: how well protected and reliable theprimary network route is, the ability to deliver alternative routes toavoid network bottlenecks; how quickly and efficiently traffic can bere-routed when a service interruption does occur, and the costsassociated with this; levels of support; responsiveness to changingrequirements; and the desire to create long-term partnerships.

A land of opportunityThe continued expansion of ICT in Africa is a critical enabler for growth- attracting foreign investment and financing, creating opportunityand employment across a multitude of sectors and markets,generating income and improving lives. It will also continue to be oneof the key factors in the ongoing emergence of a larger and moreinfluential African middle-class.

For African and international telcos and ISPs, a powerfulcombination of factors – including the explosion in mobile broadbanduptake and huge growth in the use of data-rich personal and businessapplications – is making the African continent a place of genuine andsignificant opportunity. Whilst the recent wave of new internationalsubmarine cable deployments landing in Africa has largely subsided,local cable builds, large-scale capacity purchases and upgrades willensure that the competitive market for international bandwidthcontinues. The result for businesses and individuals is that Africa is amore attractive location from which, and with which, to do business. ■

Mike Last, director of marketing and international businessdevelopment at WIOCC

African Review of Business and Technology - September 2013 www.africanreview.com

WIOCC is now working with DANTE (Delivery of AdvancedNetwork Technology to Europe), to a 15 year contract for

connectivity services in southern and eastern Africa, which hasbegun with a two-year planning and procurement phase for theAfricaConnect project - which will, from 2015, novate from DANTEto the UbuntuNet Alliance, complementing the UbuntuNet high-capacity network for African research and education, whichcreates a regional gateway for global research collaboration -improving lives through accelerated research and education, andbenefitting collaborative scientific research.

Contracting to connect sub-Saharan Africa

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TECHNOLOGYRetail

41African Review of Business and Technology - September 2013www.africanreview.com

Africa is definitely on an upward economicspiral, and from this growth comes anemerging middle class with more

disposable income - leading to more consumerspending and unstructured loans, particularlyby retailers helping customers acquire goodsand services by extending credit.

The challenge is that burgeoning demand isdriving such high volumes that micro-lendersare struggling to keep up with theadministration and management of these loans.Ké Concepts’ credit management solution,CreditEase, has been deployed across Africawith great success - which the company’s MD,Gary Green, attributes to its solutions beingspeciifically developed for Africa’s prevailingtechnological and economic conditions. Green

said, “Technology is instrumental to driving thesuccess of micro lending in Africa, not onlythrough credit management solutions, butthrough credit automation – a solution set thatis emerging as an important business enabler inthe region.”

Automation means lenders can process moreloans, faster and with fewer errors, whileenforcing consistency with pre-determinedcriteria. “Rules for lending are created in the bestinterest of the business. The more automatedthe process, the more likely that these rules willbe enforced, containing risk from the get go.”

Effective financial responsesMr Green also noted that automation improvesresponses to prevailing conditions. “Business

agility is critical for these businesses to be ableto contain risk or take advantage ofopportunities as they arise, contributing tocompetitiveness and profitability.”

The final key benefit is integrity of data. “It’sbeen proven that there is a direct correlationbetween the integrity of data provided incredit applications and the probability ofdefault or non-payment. With the ability toverify through automated processes that dataprovided is in fact correct, and ensureadditional details such as next of kin oralternative contact details are also captured,lenders have a better chance of tracking downand rehabilitating defaulting customers,lowering the overall risk that extending creditbrings to the business.” ■

How automation is setto innovate lending

Based in Cape Town, South Africa, Africa-focused business builderand venture capital investor Silvertree Capital has invested in two ofNigeria’s largest e-commerce sites, Sunglasses.com.ng andGlamour.com.ng. Both of these leading e-commerce sites offer abroad range of top consumer brands to the burgeoning onlineshopping market and have a free delivery charge throughout the country.Sunglasses.com.ng specialises in genuine, high-fashion eyewear andcontact lenses while Glamour.com.ng secures one of the top positionsin online retail for cosmetics, fragrances and personal care products.Both e-commerce sites have been built and funded by StartupPartners Africa (SPA) based in Berlin, Germany and Lagos, Nigeria.Silvertree Capital conceives, launches, supports and invests in start-ups targeting the South African and Sub-Saharan African markets. Itsfocus industries are online/mobile with clear revenue model; B2C e-commerce; and B2B2C sales. It builds its own ideas, supportsentrepreneurs and partners with corporates. It focuses on execution,using its track record in e-commerce and deep knowledge of Africa.Manuel Koser, founding partner at Silvertree Capital and previouslyco-founder at Zando, said, “We are very enthusiastic about the onlinemarket in Nigeria, which is beginning to show tremendous growth asmore consumers start using the internet to shop.”Nigeria has a population of over 160mn people, roughly three timesthe size of South Africa and is rapidly increasing. In 2012, the Nigerianretail market had a volume of approx. EUR 30 bn with 15 per centyearly growth rate. Internet penetration is at ca. 30 per cent fuellingthe tremendous e-commerce growth.

Silvertree Capital invests inNigerian e-commerce

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Abu Dhabi Ports Company (ADPC), thedeveloper and manager of commercialand community ports, and the Khalifa

Industrial Zone Abu Dhabi (Kizad), haveannounced the next steps in its plans tosupport the growing cruise business at ZayedPort, Abu Dhabi.

Figures for 2012/2013 show a total of 96vessel calls and 155,000 passengers visitedZayed Port, Abu Dhabi last season. Zayed Port’sconvenient central location makes it attractiveto tour operators, as it offers easy access to AbuDhabi’s expanding leisure experience andgrowing range of luxury hotels and resorts.Increasing the cruise business to the city is oneof Abu Dhabi’s main tourism-related targetsand Zayed Port has more capacity now that allcontainer traffic is handled through KhalifaPort. However, the existing cruise liner facilitiesat Zayed Port offer little room to handle theprojected growth. To address this, ADPC hasallocated the south-eastern end of the portberth, the end closest to Sheikh Khalifa Bridge,as an area to be developed specifically forcruise liners and passengers. The new spacewill offer an immediate increase in capacity forthe forthcoming season and space for furtherexpansion in the future.

A focus for commercial developmentThe main focus for the new development willbe a permanent state-of-the-art terminalbuilding and a traditionally themed souk andheritage area, with activities to entertain bothpassengers and the general public. The exactdesign and plan for the terminal building isunder discussion as it has the potential to beanother iconic symbol for Abu Dhabi. In theinterim a new temporary terminal facility isplanned for the next season, which althoughtemporary - will still enhance the cruisepassenger experience.

Moving the cruise ship berthing area to thenew location will also allow for the opening of anew gate for passengers – a dedicated Cruise

Port Gate which will be accessed fromunderneath Sheikh Khalifa Bridge – allowingeasy access to the growing tourismdestinations on both Saadiyat and Yas Islands.

Overseeing and managing the newdevelopment, ADPC has determined that thecruise liner terminal project will be divided intoseveral phases.

Phase 1 will be completed for the start of thisseason (October 2013), offeringaccommodation for two large cruise ships andone small vessel. The following phases will bedeveloped as appropriate according to marketpotential and demand.

With respect to the proposals Mohamed AlShamisi, acting CEO, ADPC said, “For more than40 years, Zayed Port was the major lifeline forAbu Dhabi’s import/export trade, making it avital port in the region.

“Now that all container traffic has shifted toKhalifa Port, the first semi-automated facility inthe Middle East, we are looking forward tomaximizing Zayed Port’s capacity, allowing us

to focus on a growing cruise line business andreinforcing Abu Dhabi’s position as a worldclass tourist destination.”  

Sultan Al Dhaheri, director of tourism eco-systems at TCA Abu Dhabi, added, “Thesecruise terminal improvements will deliver alasting first impression for disembarkingpassengers and will be a strong visualstatement of our commitment to a sectorwhich offers great growth potential.

“Long-term, we believe the diversified shoreexcursions of the emerging Saadiyat IslandCultural District and our UNESCO WorldHeritage sites in Al Ain will set us apart in acompetitive regional market. With our hostingof the Seatrade Middle East Forum inDecember, we can – with our stakeholders –demonstrate we have the facilities and range ofpassenger options required to encourage theworld’s leading cruise lines to consider AbuDhabi as a seasonal home-port destination,and add Zayed Port to their itineraries as aregular port of call.” ■

LogisticsTECHNOLOGY

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The entry ofe-Pass port proceduresHow customer experience management systems enable port customers toapply in advance and track progress of shipments

Cruise vessels will gain better commercialprospects at Zayed Port

African Review of Business and Technology - September 2013 www.africanreview.com

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Etihad Airways, the national airline of the Unites Arab Emirates andone of the world’s fastest-growing full-service carriers, is nowcommitted to a partnership with global information,

communciations and technology specialist SITA over the next decade. Amulti-million dollar, ten-year strategic agreement ensures the airline isprovided with the latest global infrastructure solutions, while reducingthe cost and complexity of information technology used by the carrier.The partnership underpins Etihad’s vision to be a truly 21st century,global airline, challenging and changing established conventions.

What does that mean in terms of Middle Eastern and Africancargo transportation? Over the decade, SITA will deliverinfrastructure and end-user computing solutions powered by theAir Transport Industry (ATI) Cloud, which will ensure up-to-dateservices are continually available as Etihad expands its globalpresence. Etihad is also adopting innovative new services includingSITA CrewTablet, which its cabin crew will use to access passengerand operational data via tablets. This end-to-end mobility solutiondesigned specifically for the airline industry will enhance in-flightservices and customer interaction for Etihad’s more than 10mnpassengers. In addition, SITA is working with the airline to establishnew connectivity solutions at airport gates to enable the mostefficient management of Etihad’s next-generation aircraft.

Evolving the cost structure of the cargo businessAttending the recently-held Air Transport IT Summit, Etihad CEOJames Hogan said, “Etihad Airways has enjoyed a productivepartnership with SITA since our establishment in 2003. We continue towork together on evolving and new technology which not only willreduce our costs and increase our productivity, but also will contributeto improvements in the service we continue to offer to our guests.

“Our pioneering business model, based on growth throughpartnership, has seen us invest in five other airlines and initiatediscussions to invest in a sixth, making the SITA partnership even moreimportant as we seek technology solutions which will meet our ownrequirements and increasingly those of our equity airline partners. SITA’sextensive portfolio of infrastructure services can be tailored to ourspecific needs and most importantly can be deployed quickly.”

SITA CEO Francesco Violante complemented Hogan’s veiws, thus,“Our partnership with Etihad gives us an opportunity to collaboratewith one of the world’s leading premium airlines, which is based in theMiddle East, a global centre of aviation growth. Our aim is to reducethe complexity of IT by providing flexible, global solutions so Etihadcan focus on customer excellence and growing its business.” ■

TRANSPORTCargo

43African Review of Business and Technology - September 2013

DESIGNED FORPERFORMANCE

Francesco Violante of SITA, withJames Hogan of Etihad Airways, at

the 2013 Air Transport IT Summit(Photo: SITA)

Carrying more bythe cloud, for less costRecent technological developments mean that cargo transport by airacross Middle Eastern and African skies is more efficient and cost-effective

www.africanreview.com

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Under Kenya’s Vision 2030, the nation’sgovernment has prioritised the exportsector as a key driver of economic

growth. The board of Kenya’s ExportPromotion Council (EPC) has, moreover,applauded the national administration’sposition on export trade, and particularly theprioritisation of trade. The EPC looks to KenyaAirways, the national carrier, to supportexport-oriented initiatives, since the airline isdeeply embedded in service to memberstates of the East African Community (EAC)and Common Market for Eastern andSouthern Africa (COMESA).

So, the recent arrival of a new freighter andthe launch of the KQ Cargo service presents aunique opportunity for expansion of trade,especially once fully operational, expected toenhance Nairobi’s emerging role as the EAC’sregional business hub. The KQ Cargo servicewill go a long way towards amelioratingconstrained freight capacity on several routeshitherto operated by narrow body passengeraircraft. This matter has seriously affectedKenyan exporters and investors, and the EPChas extended its fullest support for KenyaAirways in undertaking this service, which is inservice to Jube, Kigali, Entebbe, Dar es Salaam,Kinshasa, Bujumbura and Luanda.

Serving the regional business community,to serve the business of a nationIt is important for the Kenyan businesscommunity that the nation’s government hasfocused and prioritised its promotioninterests within the EAC and COMESA.However, particular opportunities await thoseinvesting in trade between Kenya and SouthSudan, and between the Kenya and theDemocratic Republic of Congo (DRC).Between these economies, business hasalready been made easier by the in-buildingof cost-effective communication andtransport links. Kenya Airways has reliable

flights to these destinations and is vigilantwith respect to the need to remaincompetitive to attract and sustain business.

The EPC’s core mandate is to promote Kenyaproducts by facilitating the consolidation,expansion and diversification of Kenya’s exportproducts and markets for goods and services.This mandate can be fully realised onlythrough collaboration with key private sectorplayers such as Kenya Airways.

KQ is already renowned for themaximisation of business opportunites. It isworth noting that, despite the manychallenges faced internally and in globalmarkets, Kenyan exports have been on anupward trend. reaching KSh511mn(US$5.8mn) in aggregate merchandise tradeby 2011, up from KSh345mn in 2008(according to the Kenya Bureau of NationalStatistics). The country trades heavily withinAfrica, with exports to other African nationsaccounting for 49 per cent of all Kenyanexport business. Five of its top ten exportmarkets are Uganda (14.9 per cent), Tanzania(8.2 per cent), Egypt (4.6 per cent), Sudan (4.3per cent), and DRC (3.4 per cent).

Kenyan exporters and entrepreneurs standto reap more from export-based opportunities,especially now that Kenya Airways is operatingthis new freighter service. ■

CargoTRANSPORT

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Transforming Kenyanair freight operationsHow and why the utilisation of a new freighter and equipment at KenyaAirways is supporting a new vision for transport

Kenya Airways supports Kenyanexporters and entrepreneurs

African Review of Business and Technology - September 2013 www.africanreview.com

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>

>

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Overall, Southern African market performance has been good inrecent years - and outstanding for Iveco, in particular. The NationalAssociation of Automobile Manufacturers of South Africa

(NAAMSA) indicates that sales of new light commercial vehicles, bakkiesand minibuses - at 13,729 units - have increased by 2.3 per cent during theyear to June 2013. Sales of vehicles in the medium and heavy trucksegments of the Industry - at 1,040 units and 1,736 units, respectively -increased by 20.5 per cent in the case of medium commercial vehicles,and 3.8 per cent with respect to heavy trucks and buses, between June2012 and June 2013.

Iveco's southern Africa MD Bob Lowden takes a good 360 degree viewof the markets he operates in, and the commerce he is responsible for. Anengineer by trade, but one with an Business and Economics degree - andexperience of Iveco's operations that stretches back to hisfirst post at the company in 1990 - Lowden commandsresponsibility for Iveco's business in 19 African countries.He spoke to African Review about Iveco's market profileand performance in sub-Saharan Africa, and thestrategic initiatives underway to continue recentmarket growth. Furthermore, Lowden conveyed asophisticated appraisal of Iveco's sales prospects inrelation to the volumes of freight traffic across southernAfrica.

For nearly 20 years, from its establishment in 1993,Iveco South Africa maintained a fair market sharewithin the territories of the southern African CustomsUnion (SACU) - with good outreach from itsJohannesburg base to export operations in countries

including Angola, Malawi, Mauritius, Mozambique, Tanzania, Zambia, andZimbabwe. That is to say, for nearly two decades sales were steady,respectable. What Iveco recognised, and the reason Bob Lowden wasinstalled in Johannesburg early in 2012, was that sales could yet be trulydynamic, with truly dynamic leadership. Iveco's products areacknowledged throughout the globe for their quality and adaptability-and Iveco's leadership understood that a little extra drive and directionwould deliver the rewards, in terms of greater numbers of units sold insouthern Africa, that the company's investment in its products merited.

Iveco designs, manufactures, and sells a comprehensive range ofmedium, heavy and extra-heavy commercial vehicles to suit a wide rangeof public and private sector applications. Principally, the company offersthe Daily van and chassis cab, on-road and off-road variants of the

EuroCargo medium-heavy truck, the on-road extra-heavyStralis and off-road extra-heavy Trakker. Additionally, theDaily and Power Daily minibuses cater to the passengertransport market.

Determined leadership for dynamic transformation Bob Lowden knows he has the products to deliverreal results for southern African businesses, and he

has been reaching out to markets across the continentwith innovative approaches. This is more than a matterof having superior products, the right combination ofquality and pricing, and the determination to succeed.You have to speak to customers in the language theyunderstand - the lexicon of business; you need to addressconcerns not only with respect to product performance,

IvecoPROFILE

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Taking ownershipof automotive affairs

African Review of Business and Technology - September 2013 www.africanreview.com

How Iveco SA's market profile and prospects have improved as it has adoptedan increasingly sustainable - and increasingly African - business model

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but with regard to purchase and delivery options, vehicle or fleet financing,and after-sales service. South Africa customers, in particular, are demanding- and a failure to deliver to a high standard can lead to a high rate of failure.Complacency kills business.

Amongst Bob Lowden's prime concerns is that his customers are servedwell, and that the market knows how they are served. His strongest suit isthe 30-strong dealer network in South Africa itself, with a further 13dealers outside this country - and the product segment with greatestreturns is the extra heavy truck market, for which Iveco offers both theStralis and Trakker variants. However, expansion is on the cards. Between2013 and 2016, Lowden aims to continue to achieve exponential growth -increasing Iveco market at a faster rate than the market itself is growing -but sustainably, entrenching the benefits of successful sales to lastbeyond his own tenure at the company. He quotes expected growth insouthern Africa markets of between seven and nine per cent to 2016, andexpects growth at Iveco SA over the same period of around 30-40 percent. That is, actually, quite realistic. Iveco was achieving modest growthbefore Lowden's arrival. Last year's sales (2011-12) increased by 30 percent. This year (2012-213), growth in sales is estimated at another 30-40per cent. Mr Lowden reports that forward orders are already ten-fold upon two/three years ago - and that the supply chain and other elements ofthe sales ecosystem have been revamped and refined to manage theincreased numbers of units passing through the channel.

The transformation of Iveco SA is very much allied to transformativeinvestment in production and distribution, at a local level. Through 2013and 2014, around R600mn (US$60.8mn) will be placed by the firm in thedevelopment of a new manufacturing facility and associated sales andservices operations, through a joint venture with Larimar Group, adiversified industrial enterprise with strong South African roots. The JVsplits at a 60 per cent stake held by Iveco, with the remaining 40 per cent

held by Larimar. The new facility, which is being built at Rosslyn inTshwane, will undertake completely knockdown assembly of trucks,coaches, and buses. Around a thousand jobs will be created locally - butthe benefits extend beyond employment in the local economy. It meanssomething to Africans to buy equipment from companies in whichAfricans have a genuine stake. Iveco gets local empowerment, andunderstands the political imperative for more local content in theprovision of manufacturing and services. There is a purely corporatemotive, of course - in that assembly African soil averts the costs associatedwith importation - but the local story is more compelling both to thecompany and the economy in which it operates.

The rewards for entrepreneurshipIveco's appeal to southern African markets is enhanced by the prospect ofincreased engagement with potential and actual customers bases. BobLowden now drives Iveco sales up with a new, motivated management team- but he has also overseen the company's move into used-vehicle sales, andoffering new packages including trade-ins and buy-backs. In partnershipwith Standard Bank, and with an experienced financial specialist on board,Iveco SA also offers vehicle and fleet financing options - and Bob Lowdenhas plans in place to deliver a fully-fledged financial services arm over time.And Lowden is building his dealer network, reinvigorating it withentrepreneurial individuals prepared to dedicate their efforts exclusively tothe Iveco brand and product portfolio. He encourages a determined, nakedlycommercially approach to market, albeit underpinned by a sustainablebusiness model, with a clear focus on developing operations to match themarket, and then take ownership of it. And he encourages those withentrepreneurship in their blood to sign up. He says, "Iveco is committedglobally to distributing products through an independent dealer network.We are looking for new dealers in Africa, new entrepreneurs to come onboard."

An example of the successes achieved during Bob Lowden's tenure atIveco SA include the decision by Bogdan's Bulk Transport to change itsfleet from UD to Iveco. Last year, the company chose Iveco trucks totransport cementitious dry bulk products - 100 Stralis 430 models, soldthrough Truck Centre, an independent Iveco dealership, with fullyintegrated operational and after-sales service support included in thepackage.

Lowden's door is open to new business with dynamic new businessfolk.You can call him and his team at +27112053990. ■

48 African Review of Business and Technology - September 2013 www.africanreview.com

IvecoPROFILE

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POWERGenerators

49African Review of Business and Technology - September 2013

The 18th annual Offshore West Africa conference and exhibition returns to Accra, Ghana on 21-23 January 2014, delivering the premier technical forum focused

exclusively on West African offshore exploration and production. The conference will provide attendees with the latest technological innovations, solutions and

lessons learned from leading industry professionals.

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According to Powergen StatisticsConsulting Ltd. (PGS), a decline of dieselgenerator set imports has been

experienced in all power ranges in Q1 2013compared to the same period in 2012, with a30 per cent drop for the highest power rangeof products over 375 kVA.

Key African markets have been hit by thisdecline, causing a strong negative impact onthe overall picture, PGS said.

Angola and Nigeria, which are listed as thetop two African countries for imports, havereported a decline in diesel genset imports,whereas Algeria, in contrast, has been showing

strong growth of approximately 50 per centover the past year, the company stated.

This growth has been distributed evenlyacross all power bands, making Algeria amarket that needs to be tracked closely bydiesel genset exporters to Africa, PGS advised.

France, Italy and Spain are the countrieswhich have benefitted most from this growth,followed closely by China, the companyadded.

While the UK is still the biggest exporter intoAfrica (followed very closely by China), Britishexports have decreased dramatically whencompared to the first quarter of last year, while

Chinese and French exports have shown arelatively small progression. ■

Room for growth ofimported diesel gensetsResearch into recent performance of generator sales into Africa

Algeria has been showing strong growth of imports, withan increase of approximately 50 per cent over the past year.

S11 ATR Sep 2013 Report FB FC FD_Layout 1 22/08/2013 15:18 Page 49

The largest power plant runningexclusively on gas engines on theAfrican continent, and the first of its

kind in South Africa, was inaugurated at theSasolburg, Free State site of petrochemicalscompany Sasol recently. The electricityproduced by the 140MW plant will be usedby Sasol's chemicals factory next to the plant,with about half of the production being fedinto South Africa's national grid.

"This plant is a significant milestone forSasol, as we begin to ease our load on thenational grid and contribute to our ownenergy efficiency targets," Sasol senior groupexecutive Lean Strauss said.

According to Sasol, the plant, which hasconsistently been producing above itsoperating capacity at 152MW sincecommissioning in December 2012, will allowthe company to generate 60 per cent of itsown power capacity, easing its reliance on thecountry's grid.

It will also enable Sasol to eventuallyreduce its CO2 emissions by a further onemillion tonnes per annum.

"This is a very successful project for SasolNew Energy, below budget and ahead ofschedule," said Sasol New Energy MD HenriLoubser. The plant was completed threemonths ahead of schedule and almost 20 percent below budget, with 500 jobs createdduring construction and 44 permanent jobscreated in Sasolburg.

Building and maintaining power in SAAccording to Sasol, gas-powered plantsrequire less time to build and install, takingbetween 20 to 30 months, opposed to the 40to 50 months required for a coal-power plantand 60 to 80 months for a nuclear plant.

Sasol's new power plant is being operatedand maintained by Finnish energy companyWärtsilä, which built and installed the plant'sgas engines, under a three-year agreementwhich includes the training of Sasol NewEnergy staff members. Wärtsilä offers power

solutions for every phase of oil and gasexploration, production, transportation andrefining, both onshore and offshore -including prime movers and power plantsolutions, EPC deliveries, and lifetime supportsolutions to maximise revenues and minimisedowntime. The Finnish enterprise providespre-engineered power generation equipmenttuned to meet the special needs of gascompression and pumping applications. Itssolutions for the oil and gas industry aretuned to meet the special needs of powergeneration. These prime movers, rangingfrom 1–22MW, can run on various liquid andgaseous fuels available from the process.

Making more energy in MozambiqueAlong with Sasol and Mozambican statepower company Electricidade deMoçambique, Wärtsilä is also involved in theconstruction of a similar gas-fuelled powerpower plant at Ressano Garcia inMozambique. Sasol said this project was on

schedule to start generating electricity asearly as the second quarter of 2014.

The selection of Wärtsilä gas enginetechnology for this project was based on anumber of considerations. Notably,Mozambique is a country withconsiderable gas reserves but with ascarcity of water resources. Wärtsilä’s gasengine technology, which features closed-circuit cooling with minimal waterconsumption, was a natural choice.

“There is rapidly growing demand inMozambique for electricity, and Wärtsilä hasdemonstrated its capability to providecompetitive and comprehensive turnkeypower plants with outstanding operationalefficiency and minimum environmentalimpact. Furthermore, Wärtsilä has anexcellent track record in project managementand fast track delivery of power plants, whichalso were key considerations for themselecting us,” says Vesa Riihimäki, president,power plants, Wärtsilä Corporation. ■

GasPOWER

50

Southern Africa’s newgas-powered plantsFinnish expertise underpins Sasol’s work on new power plants in SouthAfrica's Free State province and in Mozambique

The new plant in Mozambique will be powered by a total of 18 Wärtsilä 34SG engines running on natural gas, with thegas being fed from the Pande and Temane gas fields

African Review of Business and Technology - September 2013 www.africanreview.com

S11 ATR Sep 2013 Report FB FC FD_Layout 1 22/08/2013 15:18 Page 50

S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 51

Siemens Energy is working on new infrastructure for anonshore wind power order for the Sere wind power plant onthe west coast of South Africa, following the second of two

wind power orders for Siemens from South Africa. The Sere projectis a flagship project for the customer Eskom, which is one of theworld's largest utilities. The scope of supply includes the deliveryand installation of 46 wind turbines of the type SWT-2.3-108, withan output of 2.3 Megawatts (MW), a rotor diameter of 108m on115m towers each. The deal also includes a five-year-serviceagreement. Installation of the wind turbines is scheduled to beginin the second half of 2013, with the start of operations expectedduring first half of 2014.

Making the most of wind"South Africa has outstanding conditions for the utilisation of windenergy and has set up a remarkable renewable energy programme withthe Independent Power Producer Procurement Program. We are proudto contribute to the development of wind power in South Africa withour technology, and especially proud that Eskom has chosen to rely onus for their first large project," said Felix Ferlemann, CEO of the windpower division in Siemens Energy. The first wind power order fromSouth Africa was awarded to Siemens by Mainstream Renewable PowerLimited, Globeleq, Thebe Investments, Enzani and Usizo for the Jeffrey'sBay onshore wind power plant with a total capacity of 138MW.

There are many benefits. Wind is a sustainable resource and, as aprimary energy source, is free. Wind is also a clean form of energywithout emissions or waste products. And there are growing numbersof energy users prepared to pay for the more expensive electricitygenerated from renewable sources. The technology developed for thisproject may in future allow for the energy to be stored for use whenrequired - for example, at peak periods.

However, capital costs are high and the production cost per kWh ishigher than the cheap electricity currently produced by Eskom’s coal-fired power stations. Units are of small capacity (25 to 2 000kW) and itwould take hundreds of wind turbines to replace a single thermal unit

(currently ranging between 200-600MW). And wind resources areerratic and can be used only at certain speeds. While it is a cleansource of energy, the environmental impacts of wind energy caninclude noise, visual pollution and negative impacts on birdlife

The Sere Wind Farm may not be the cheapest optionfor powergeneration in South Africa - but it contributes significantly to thenation’s long-term renewable energy and CO2 mitigation strategy, asset out in SA’s Power Sector Integrated Resource Plan 2010-2030. ■

RenewablesPOWER

52

South Africa's westcoast wind powerOngoing development of the Sere wind power plant in Vredendal, in SA'sWestern Cape province

African Review of Business and Technology - September 2013 www.africanreview.com

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S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 52

CONSTRUCTIONLogistics

53

Revamping astorage facilityEngen enables improved transportation to southern Africa with “massive”Beira Port terminal upgrade

African Review of Business and Technology - September 2013www.africanreview.com

African petroleum multinational Engen Petroleum is significantlyincreasing its supply capacity to southern African countries,after it acquired seven in-country operations from competitor

Chevron in the region and the Indian Ocean Islands.The company is currently undergoing first-phase revamp work on Beira

Terminal, an import and storage facility in the Port of Beira, Mozambique.When complete, the terminal will be able to supply Mozambique,Zimbabwe, Zambia, Botswana and southern DRC.

Strategic and secureDrikus Kotze, Engen’s General Manager of Engen’s InternationalBusiness Division (IBD), says the depot forms part of the Mozambicancomponent of the acquisition.

“It predated all others and was aimed at strategically boostingsecurity of supply in the region, given Engen’s increasing marketshare in southern and sub-Saharan Africa,” he explains.

Capital investmentJan Sithole, Special Projects Manager for IBD, says the depot required asignificant capital investment to overhaul and extend, as it had notbeen operational for a period of time.

“The project involves cleaning and safe dismantling of redundantpiping and two unusable tanks; revamping of three tanks and adminoffices; and installation of new tanks, road tanker loading facilities,import and export piping, a firefighting system, and security system.”

Phased supplyThe first phase of proceedings, currently under construction, is aimedat readying the facility for import and supply of petrol and diesel inMozambique (20 per cent) of the volume requirement), andZimbabwe (80 per cent). This will be done via the existing pipeline toMasasa Depot in Harare .

The Terminal’s designed capacity of 18mn litres (diesel) and sevenmillion litres (petrol) is expected to be sufficient for this purpose.

Once phase one projected products demands have been achieved,second-phase construction will involve increasing tank- and road-loading capacity, and the construction of a new rail-loading facility tocater for Engen’s other southern African sister companies (EngenPetroleum Zambia, to begin with).

Progress reportSithole says the Beira Terminal Revamp Project scope comprises civilworks, mechanical works, tankage and electrical works.

“Work for the first three scopings is progressing as per schedule, andthe electrical works will commence in due course,” he says.

Overall, the project is on track, with the target of reaching 90%mechanical completion (installed piping, equipment and supportstructures) by the end of December 2013.

“We want to have the depot fully operational in the first quarter of 2014,”says Kotze. “Engen aims to be a leading Sub Saharan African oil companyby 2016, and this undertaking will be instrumental in us achieving that.” ■

The Engen revamp of Beira Terminal, an import andstorage facility in the Port of Beira, Mozambique

S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 53

ExcavatorsCONSTRUCTION

54 African Review of Business and Technology - September 2013

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4X4 mixers & dumpers

Large or small, all hydraulic excavatorsconsist of a hinged boom and stickassembly, a digging bucket or other

attachment, a 3600 rotating platform thatholds the cab, an engine, counterweight andhydraulic system, all carried on some kind ofundercarriage, which may have a useful bladeattachment fixed.

The excavator or digger has always beenthe most versatile machinery on anyconstruction site.

Whether rubber-tracked one-tonne mini(compact) or the huge 700 tonne-plus machinesfrom the likes of Komatsu and Liebherr, the basicdesign is essentially the same. It is always aslewing powerhouse on top of a framework thatcan move under its own power.

Attached to the end of the ubiquitousboom, which usually only moves up or downunder the control of the operator is a dipperarm, sometimes referred to as a stick. With itsattachment like a bucket or lifting hook,usually only temporarily fixed to the end, thearm provides the digging force needed toimpact the attachment usefully on the ground,or perform one of a host of other functions.This available force is part of themanufacturer’s specifications which frequentlycover more than 20 separate points andtherefore have to be interpreted by an expert.

Available reach and break-out power aresubsumable sub-categories of this usefulspecification at the business end. Large widebuckets with straight cutting edges are

Ubiquitous excavatorsAll hydraulic excavator models come with some basic features that makethe ‘beast’ suitable for a range of work across terrains; here is an appraisal ofsome digger basics

www.africanreview.com

Whether rubber-tracked one-tonne mini

or the huge 700 tonne-plus machines, the basic

excavator design isessentially the same. It is

always a slewingpowerhouse on top of a

framework that can move under its

own power

S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 54

normally used for excavating in soft materialssuch as unconsolidated soil, aggregate andwet clay, also for levelling and cleaning up theworksite before further operations take place.

Smaller general-purpose buckets arespecifically designed with cutting teeth tobreak through hard ground including countryrock and old concrete. Many variants of thesebasic buckets can be found locally, and manyof these nowadays come equipped withquick-change couplings which can be safelyoperated from within the cab.

Suppliers encourage users to employ only

buckets supplied from their own (usually verycomprehensive) product ranges, but thereality is that many African customers havebeen mixing-and-matching their attachmentsquite happily for years. Indeed the hire andrepair of basic excavator buckets has becomean informally profitable and very usefulroadside industry in many parts of thecontinent. The range of other attachmentsavailable is endless, and the more specialisedthese become (demolition breakers and log-and pipeline-handling devices, for example)the more important it is to use original-

supplier equipment that is designed to matchthe front end of the basic digger.

Most of the hydraulic controls that havebeen at the core of these machines areoperated electronically these days, requiringonly finger-tip movement of a series of so-called joysticks that can be worked withsimultaneously by skilled operators.

The machines are equipped with a series ofhydraulic pumps, usually two that supply fluidunder very high pressure to operate all theheavy cylinder-actuated movable componentsthat do the actual work, and a third pump ofmuch lower specification that supplies pilot-control power to reduce the amount of effortneeded to operate the controls themselves.

Over the years endless improvements havebeen incorporated into this basic architectureto improve the appeal of these machines, andshift more heavy metal as well as dirt.

Recently, these have been mostly in theform of the electronics incorporated, themain goal being greater productivity in termsof fuel burned. But, there have been lots ofothers, perhaps the ‘zero tail-swing’ conceptbeing one of the most significant. Thisincorporates the counterweight vital foreffective digging within the confines of theslewing frame, thereby allowing use in tight-site usually urban conditions. ■

CONSTRUCTIONExcavators

55African Review of Business and Technology - September 2013

Excavators have always been a versatilemachinery on any construction site

September 18 - 21Johannesburg

Visit us at Hall 3 / H3 220

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S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 55

PowerCONSTRUCTION

56 African Review of Business and Technology - September 2013

FIORI PMSA at BAUMA Africa at stands D26 and H5.111 from September 18 to 21

Aconsortium led by ACWA PowerInternational (ACWA Power)(www.acwapower.com), a Saudi

electricity and desalinated water producer,and including the Public InvestmentCorporation (PIC) of South Africa(representing the Government EmployeesPension Fund), Lereko Solafrica Investment,Lereko Metier Solafrica Fund 1, Lereko MetierSustainable Capital Fund, Kurisani SolafricaInvestments (representing the National NGOLovelife) and Solafrica CommunityInvestment Company confirmed thecompletion of financing and commencementof construction of the Bokpoort ConcentratedSolar Power (CSP) Independent Power Project(IPP) located in Northern Cape Province, 600km south of Johannesburg, in the Republic ofSouth Africa.

Forming part of South Africa’s RenewableEnergy IPP procurement programme

(REIPP), the 50MWe installed capacityBokpoort CSP Project is being equippedwith the largest thermal storage everadopted for a solar power plant of this classand capacity to date. The plant thermalstorage capacity will be 9.3 hours enablingit to yield a record-high generation in excessof 200 GWh/year well into the night everyday throughout the year. This makes CSPthe only renewable technology atcommercial scale to cover the country'sdaily peak demand from 5 to 9 PM therebyhelping to prevent power black outs.

Bokpoort CSP IPP was the only CSPtechnology project and one of only 19renewable energy projects selected by theDepartment of Energy of South Africa fromamong 79 bids submitted for the secondwindow of the country's REIPP.

The construction is being undertaken by aconsortium of EPC contractors composed of

TSK Electrónica y Electricidad SA, AccionaInfrastructuras SA, Acciona Ingeniería SA,Sener Ingeniería y Sistemas S.A., all fromSpain, and Crowie Concessions (Pty) Limitedof South Africa. The construction of thepower facility will utilise more than 40 percent of scope procured locally in SouthAfrica. The operation and maintenance willbe undertaken by a consortium led byNOMAC, a subsidiary of ACWA Power andInvest In Africa Energy Services, a SouthAfrican services provider. The off-taker of theproduced electricity will be Eskom HoldingsSOC Limited, a government-owned nationalutility. The Bokpoort CSP IPP has partneredwith Investec Bank Limited and Absa BankLimited as mandated lead arrangers to theproject and who together with Old MutualSpecialised Finance (Pty) Ltd are providingthe senior debt funding requirements of theproject. ■

Building more power

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S12 ATR Sep 2013 Report FA GC GA GE_Layout 1 22/08/2013 16:42 Page 56

CONSTRUCTIONConcrete

57African Review of Business and Technology - September 2013www.africanreview.com

Specialised industrial flooring expertsConcrete Laser Flooring (CLF) has beenappointed by construction company

Archstone to lay South Africa’s first definedmovement (DM) 1 floor at nationalpharmaceutical group Dischem’s 20,000-sq mdistribution centre in Midrand.

CLF director Peter Norton explains that a6,000-sq m section of the total floor area will beplaced to DM1 category specifications due tothe height of the racking on site, which is thehighest in the country at over 20 metres. Theremaining floor area is being laid to FM2 specialcategory specifications. This is even flatter thanFM2 tolerances routinely achieved by CLF.

“A DM1 floor is a specialised high tolerancefloor for flatness in high racking areas. The

racking at the Dischem distribution centrewill extend to over 20 metres in certain areastherefore requiring the floor to be super flatin order to avoid fork lifts and reach trucksfrom excessive rocking when moving inbetween the aisles,” he said.

There are essentially two methods fordefining floor flatness requirements, whichare determined by dividing floors into twoareas, namely free movement areas (FM) anddefined movement areas (DM).

“The FM criteria is where trucks operate atlow level when moving, such as marshallingareas, block stacking areas and aisles greaterthan 2.8 metres wide. DM areas refer tosystems where the trucks are constrained todefined, fixed paths such as very narrow aisle(VNA),” explained Norton.

The floor at Dischem contains CLF steel fibrereinforcement, which is added to the readymix concrete before placement. The DM 1portion of the floor is levelled by CLF’s laserscreed machines and completed by hand. ■

Laying the floor forSA’s highest racking

CLF pouring a secondsection of floor

S13 ATR Sep 2013 Report GF GG GD GH_Layout 1 22/08/2013 15:41 Page 57

RoadsCONSTRUCTION

58 African Review of Business and Technology - September 2013

Since its official opening two years agoby the former President Mwai Kibaki, the100 km Dundori-Ol Kalou-Njabini road

in Kenya’s Nyandarua County has opened upthe previous hinterland, creatingopportunities in agriculture, transport andother sectors.

Constructed by the Chinese companyChina Wu Yi with funding from theGovernment of Kenya, BADEA/OPEC/SaudiFund, the US$400mn road took three years tocomplete, inspiring hope to thousands offarmers whose produce would go to wastedue to inaccessible rural roads.

“The road has been a blessing to us. We cannow increase acreage under potatoes andvegetables as we are assured to quick accessto the market. The road has also boosted ourbargaining power as we can now negotiatewith a large number of prospective buyerswho come directly to our farms,” observedPeter Kuria, an elderly farmer from Machineryin Kipipiri division.

Observing progress through improved linksKuria, who has lived in the area for almost 50years, remembers the tribulations localfarmers suffered at the hands of brokersbefore the new road.

“We would literally sell our potatoes at lowprices to the few buyers courageous enoughto tackle the muddy slippery roads to get toour farms. On other occasions, we had topour off our milk especially in the long rainsperiod due to lack of market,” he said. Duringthat time, an extended bag of potatoes

would be bought at as little as Ksh 300(US$3), with a litre of milk farm-gate price atjust Ksh 6 (US$0.06). Nowadays, the prices ofthese commodities have shot by over fivetimes as farmers have a leeway in thepricing of their produce.

The road cuts across Dundori, Tumaini, OlKalou, Wanjohi and Miharati in NyandaruaCentral and Kipipiri districts, passingthrough Mawingu, Ndunyu Njeru andEngineer in North Kinangop. Thesetownships are tacked away in previously

Access for agriculture

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With the arrival of agribusiness, investorshas seen the escalation in land prices

S13 ATR Sep 2013 Report GF GG GD GH_Layout 1 22/08/2013 15:41 Page 58

inaccessible areas.It ends at Njabi-ini Trading Centre in South

Kinangop to link up with the old tarmac thatruns from Fly Over area on the Nairobi-Nakuru Highway.

Nyandarua County is well endowed withgood weather and supplies different majorurban centres with milk, potatoes, cabbages,kales and maize.

In one survey done a few years back, it wasfound that at least 40 lorries leave the countyevery day transporting potatoes to fast foodoutlets in Nairobi. A smaller number also leavefor Nyeri, Nakuru and Karatina on a daily basis.

“Transporting potatoes to Nairobi hasbecome easier with the new road which hassliced the distance by almost 100 km- cuttingon fuel consumption and boosting ourprofits. With the high quality of tarmacking ,vehicle breakdown problems have been fewalong the road,” stated David Kamau, a lorryowner and potato transport who makes atleast three trips to Nairobi’s Wakulima Marketon weekly basis.

Horticulture has also become a majorbeneficiary with the development of the road.

“Today, the Ol Kalou – Njabini section of theroad is punctuated by numerousgreenhouses –indicative of the fledgingflower and vegetable industry. Ready access

to Nairobi by road and even internationalmarkets had attracted agribusiness investorsto seek fortunes in this area”, noted PeterKiragu, a local administrator in the area.

With the arrival of agribusiness, investorshas seen the escalation in land prices. Beforethe road construction, an acre of land wouldfetch Ksh 80,000 (US$1,000). Today, a similarpiece sells at Ksh 350,000 (US$4,000) andabove.

"Everything here has changed. Land buyershave been arriving in droves from Nairobi,Nyeri and Nakuru all for a small chunk of theprime land," said farmer Njeri Muchunu ofGwa Kiongo Trading Centre, overlooking thescenic Nyandundo Hill.

New industries along the route such asMidlands Potato Factory in Kinangop haveinvested heavily in value-addition ofagricultural produce for the local andinternational markets.

The facility which has a cooler that can keeppotatoes fresh for up to three years and a

processing factory will enable the farmers tocollect and store produce, then release it to themarket as demand dictates- throughout the year.The facility provides long-term storage for upto 6,000 tonnes of potatoes and is the onlyone of its kind in East Africa.

Midland Limited currently has aboutUS$8.2mn in assets after raising funds throughthe sale of shares to local farmers and otherinvestors in the last 8 years. It is expected toearn local farmers over US$2.3mn per season.

About 1,000 farmers have been contractedand are being supported with seeds, agronomyand deliver the produce directly to the factory.

Carrots, tomatoes, French beans and snowpeas are other pricey but perishablevegetables produced within the NyandaruaCounty and can be value added beforereaching the market. .

This facility is expected to directly benefit300 households another estimated 250,000people through direct incomes and improvedlifestyles due to ready market for their produce.

Farmers are enthusiastic that thetarmacking of the Ol joro orok- Dundori roadsexpected to start soon will further open upthe agricultural-rich country and helping inthe fight against rural poverty. ■

Mwangi Mumero

CONSTRUCTIONRoads

59African Review of Business and Technology - September 2013

Visit us at

Stand A49 External Area

September 18–21, Johannesburg

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S13 ATR Sep 2013 Report GF GG GD GH_Layout 1 22/08/2013 15:41 Page 59

T he test phase of the Kayamandi project - the first-ever shack-to-house conversion project in Kayamandi, in South Africa’s Western Cape - involved the conversion of a 23-sq m wooden

shack into a solid 46-sq m double-storey home, made entirely from'sand bag' eco bricks built by 16 'off-the-street Kayamandi residents'who were trained and supervised by an engineer from the AfricaResponds Clearly Eco Homes team. The project's test subject NorieLungisa, who lived in the cramped and uncomfortable conditions ofher shack with her two children for more than ten years, is delightedwith her new and improved eco brick home.

Cape Town-based construction materials supplier PennyPinchersapproached 16 of its most trusted suppliers, including DPI Plastics, toassist the Kayamandi project with various donations. As a sociallyresponsible corporate citizen, DPI Plastics places a strong emphasis on

supporting community development projects, notes the company'smarketing manager Martine Goodchild. She said, "DPI Plastics iscommitted to supporting projects that aim to uplift the living standardsof fellow South Africans, especially with regards to adequate housing.The Kayamandi project supports DPI Plastics' vision of building a bettertomorrow, not only by providing residents with better housing facilities,but also by creating employment and skills development opportunitiesfor locals. We also encourage the use of ‘green’ building materials whichaim for energy efficiency within the home.”

Africa Responds Clearly Eco Homes spokesman Grahame Tomeshighlighted the fact that the new eco home is comprised of twoupstairs bedrooms , in addition to an open plan lounge, dining andkitchen area and a bathroom.

Tomes explained that the Kayamandi eco house is built utilising theNational Home Builders Registration Council (NHBRC)certified ecobrick/eco beam building system, which employs eco bricks and ecobeams that are plastered and painted. "All eco brick houses are builtwith eco bricks that are 300mm x 300mm in size. The net result of suchwide bricks is a home which is cool in summer and warm in winter."

According to Tomes, eco brick homes address a number of seriouschallenges that are currently facing the South African affordablehousing industry.

"The 300mm thick walls provide a natural barrier to the harsh SouthAfrican sun – even in temperatures exceeding 40°C. The issues of risingdamp, rain and even flooding are entirely eliminated with eco brickhouses, as water cannot rise through sand. Instead, it is forced backdownwards into the earth." ■

HousingCONSTRUCTION

60 African Review of Business and Technology - September 2013

Materials to use forshack conversionImproving the living conditions of residents of informal settlements, afterdonating PVC building pipes and fittings

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Construction at Garden City, Nairobi’s flagship retail, residentialand commercial property development, was offically begun

rceently, at a celebration ceremony in the presence of over 100distinguished guests, including the Governor of Nairobi, Dr EvansKidero. Developed by Actis, the pan emerging markets investorresponsible for the Junction Mall and Nairobi Business Park, GardenCity is set to become a spectacular destination for Kenyans to livework and play in a safe, stylish and green environment.The A-grade standard Garden City will house a 50,000 square metreretail centre, over 420 apartments and town houses, commercialoffices and a stunning three acre central park open to all. The firstphase of development, opening for business in late 2014, will bring33,000 square metres of prime retail space to the city. Garden Citywill be home to over 100 major local and international retailbrands, many of them opening their flagship stores in Kenya for thefirst time. Nakumatt and Game have already signed up as theanchor tenants. In this initial phase the developers will also make80 desirable residential apartments and houses available forpurchase. Michael Turner, MD of Actis East Africa, said, “Thedevelopment will provide residents, professionals, visitors andshoppers with an unrivalled blend of leisure, shopping andresidential facilities, all set within a beautiful landscapedenvironment. I am also proud that Garden City will be the first LEED(Leadership in Energy and Environmental Design) certified retailmall in East Africa, translating into lower water and electricity bills.”

Actis’ US$250m Garden Citydevelopment underway

S13 ATR Sep 2013 Report GF GG GD GH_Layout 1 22/08/2013 15:41 Page 60

CONSTRUCTIONHousing

61African Review of Business and Technology - September 2013www.africanreview.com

Bosch Power Tools has eliminated the need for time-consumingpaint brushes and rollers in housing applications, through itsadvanced PFS 105E WALLPaint system for local markets. Bosch

Power Tools SA senior brand manager Juergen Lauer noted that the PFS105E WALLPaint system enables the user to swiftly and efficiently applyan even coat of latex or emulsion paint to all textured walls and hard-to-reach areas such as corners and edges.

"The Bosch PFS 105E system puts an end to the awkward process ofusing paint brushes in inaccessible corners, thanks to its 3.4-metre hose,which enables greater freedom of movement between the pump stationand the spray head."

The Bosch PFS 105E is powered by a 375 W motor and is capable ofdelivering 350 g/min of paint, which is stored within the system's one-litre container, added Lauer. "The one-litre paint container enables theuser to apply up to eight square metres per tank, which substantiallyimproves turnaround times. The paint tank also comes standard withtwo paper funnels that minimise the risk of spillage when pouring."

Lauer revealed that Bosch's patented 'SprayControl' technologyensures that the emulsion paint or latex paint is distributed evenly andconsistently through the spray head.

"This technology also eliminates unwanted spray mist throughconstant paint atomisation, which is a major personal health andenvironmental advantage too," he said.

According to Lauer, the EasyJet airflow nozzle on the Bosch PFS 105Esystem enables the user to adjust the spray to suit various applications.

"The EasyJet nozzle can be adjusted to each task by turning itmanually. The appropriate air flow can be individually controlled and iskept constant electronically, allowing for compact and wide jet optionsfor vertical and horizontal spraying. The Bosch PFS 105E system is ideallysuited to both indoor and outdoor painting applications." ■

A system foradvanceduse of paint

The-Bosch-PFS 105Ewallpaint system is powered

by a 375 W motor

S14 ATR Sep 2013 Report GJ GI GK_Layout 1 22/08/2013 16:00 Page 61

Magni Telescopic Handlers hassigned a major supply agreementwith JC Bamford (JCB) excavators

to equip its RTH range with new JCBEcomax Tier 4i engines. Magni’s rotatingmachine range complements JCB’s range offixed boom machines.

The deal is beneficial for both companies asMagni will now be able to access the JCBdealer network more easily and rely on anefficient and widespread worldwidedistribution network. The JCB dealer network,meanwhile, has now been able to completeits range of telescopic fixed boom machinesfor construction with a range of high qualityrotating machines.

Magni, which is based in Castelfranco Emilia,near Modena, Italy, has two main productlines, the RTH range (comprising sevenrotating telehandler models) and the HTHrange (with three heavy duty machines for themining, oil and gas and heavy industry).

The latest generation of Magni’s RTH rangeare equipped with JCM or Daimler MercedesBenz engines. They have electronicallycontrolled Bosch Rexroth transmission,enabling a road speed of 40 km/h and reducingfuel consumption by 10 to 15 per cent. All themodels in Magni's rotating range areassembled on two basic chassis models. Theyfeature a rigid structure that prevents the framemembers from twisting even when subjected

to considerable stress and increases thestability of the machine. Magni's new patentedstabilising system features outriggers that nolonger overlap and connect to the frame endsbut are on the same axis. This allows them toretract into the frame structure, therebylengthening the wheelbase of the machine.The boom is made of high tension steel and isequipped with an exclusive, patented hydrauliccircuit at the end of the boom.

Magni’s HTH range is equipped with Euro3B Daimler Mercedes Benz engines from129 KW (176 hp) to 240 KW (320 hp). Likethe RTH range, the HTH range is equippedwith Bosch Rexroth transmission. Thanks tostrong torque, the HTH range is able toovercome slopes with a gradient which can

vary, depending on the model, from 30 percent to the 58 per cent.

Magni Telescopic Handlers has alsodeveloped two special machine ranges.Firstly, the Boat Eagle 509 and 512 are twonautical handling systems that are able tohandle and store boats up to 10 metres inlength in dry dock. Secondy, the Rickilif 13-,15- and 18-metre models are designed foragriculture, from pollination to harvesting.

To assist the JCB dealer network in Belgium,Luxemburg, The Netherlands and GermanyMagni has also founded a new company,Magni Sales & Parts Maastricht, based in theNetherlands. This will be able to provide fasttechnical assistance and spare parts to JCBdealers across the region. ■

ProfileCONSTRUCTION

62

Magni joins forces with JCBNews that Italy’s Magni Telescopic Handlers has now linked up with JCBsignals the further expansion of its range and its distribution network

African Review of Business and Technology - September 2013 www.africanreview.com

Magni’s factory in Castelfranco Emilia, Italy

S14 ATR Sep 2013 Report GJ GI GK_Layout 1 22/08/2013 16:00 Page 62

S14 ATR Sep 2013 Report GJ GI GK_Layout 1 22/08/2013 16:00 Page 63

Apipe can be rethreaded in fivesimple steps using a powerthreading tool like the Ridgid 690.

Johan Janse van Rensburg is salesmanager for advanced industrial productand after sales service solutions provider,Dowson and Dobson, whose rangeincludes the Ridgid 690. According to VanRensburg, a pipe can be fully threadedwithin five minutes when following thesefive steps.

Step 1: First of all, the pipe requires a 90degree cut-off, using a number 2-A pipecutter, which will give the pipe a smoothand clean cut. After the pipe has been cut– no reaming of the pipe is necessarywhich is an advantage.

Step 2: Once the pipe has been cut to 90degrees, the support arm is fitted onto thepipe. The support arm is fitted with thestrong threaded bar to ensure that the

support arm is locked into position. It mustbe connected in a horizontal position.

Step 3: The die head size is then chosenfrom the following range of sizes ½”, ¾”, 1”,1 ¼”, 1 ½”, 2”.

Step 4: The die head is then inserted andlocked into the machine, before themachine is inserted onto the support arm.Van Rensburg said that utilising thesupport arm is vital when using the Ridgid690 power threading tool.

“This is essential, due to the fact that themachine is strong enough to lift theoperator up and cause serious injury if itcatches onto the pipe,” he said.

“There are also additional safety factorswhich should be taken into account. Forexample, the user should always weargloves, and should always ensure thatthere is oil on the threads to ensure asmoother cut.”

According to Van Rensburg, theoperator can oil the threads while themachine is running. There is no need tohold the machine. With the support arm inplace, the 690 will feed itself until itreaches the strong arm. The Ridgid 690power threading tool also comes standardwith a safety switch on the side of themachine, he added.

Step 5: When everything is in place, thetool can be started and the threading canbegin with a push onto the pipe. The userdoes not have to file the edges becausethe die head has a taper thread, therebyallowing for quick threading of a pipe thatis up to 2” in diameter.

"The Ridgid 690 power threading tool islightweight and compact,” said VanRensburg. “This ultimately ensures greaterease of transportation and improvesutilisation of space, which is becomingincreasingly important in a number ofprofessional and on site applications." ■

PipesCONSTRUCTION

64

Pipe threading made easyDowson and Dobson’s Johan van Rensburg explains how to rethread apipe in five straightforward steps

African Review of Business and Technology - September 2013 www.africanreview.com

S14 ATR Sep 2013 Report GJ GI GK_Layout 1 22/08/2013 16:00 Page 64

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S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 65

S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 66

www.africanreview.com

The first bauma Africa, which takesplace 18-21 September 2013 inJohannesburg, South Africa, is directed

primarily at construction markets in Sub-Saharan Africa. It is an excellent opportunityfor the many machinery enterprisesexhibiting a broad spectrum of specialistequipment, and showcasing new andinnovative ideas suitable for SouthernAfrican markets. More than 500 exhibitorsand 15,000 visitors from the Africanconstruction and mining sectors will bepresent. The trade fair covers more than60,000 square metres (sq m) of exhibitionspace. Exhibitors from 34 countries will beparticipating in the trade fair, withcompanies at international pavilionsrepresenting Austria, China, Finland,Germany, Great Britain, Italy, Korea,Northern Ireland and Spain.

Elaine Crewe, chief executive officer ofMesse München International (MMI) SouthAfrica, says that "as investors and businesseslook towards developing countries for newgrowth, the mining and constructionindustries are set to profit from this move.The need for infrastructure present agrowing opportunity for those present inthese sectors to provide services andproducts throughout developing countriesand benefit from this burgeoning growth.

The growing pool of international entrantsinto the African market are a telling sign ofjust how important Africa is becoming andthe need for specialised players in theindustry, we trust that bauma Africa willhighlight new products in these sectors.”

International interest in inaugural eventThe premiere of bauma Africa is attractinggreat interest in the sector, both at homeand abroad: the South African Constructionand Mining Equipment Suppliers'Association (CONMESA) expressly welcomesthe premiere of bauma Africa, theInternational Trade Fair for ConstructionMachinery, Building Material Machines,Mining Machines and Construction Vehicles.A range of other national and internationalassociations and organisations are alsosupporting the new event.

CONMESA was founded in 1992 and itcurrently has 20 members who representthe most important local and international

bauma AfricaCONSTRUCTION

Internationalsupport for inauguralbauma AfricaLooking ahead to a key event in the calendarfor all stakeholders - investors, manufacturers,operators and services firms - in Africanconstruction and mining

S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 67

bauma AfricaCONSTRUCTION

68 African Review of Business and Technology - September 2013

companies in the construction and miningindustry in South Africa. Marc Carter,president of CONMESA, said, "TheConstruction and Mining EquipmentSuppliers' Association fully supports theinitiative of Messe München International inestablishing bauma Africa as an internationaltrade show which purely focuses on theconstruction equipment, constructionmaterials machinery and mining machinerysector. This kind of show, with its primaryfocus on our business environment, iscurrently missing on the African continentand especially in Southern Africa. We areconvinced that bauma Africa will bringconsiderable value to our members, to theAfrican construction industry and to theworldwide construction machinery industry."

Also among the international supporters ofbauma Africa are the Association ofEquipment Manufacturers (AEM), theAsociación Española de FabricantesExportadores de Maquinaria paraConstrucción (ANMOPYC), the ChinaConstruction Machinery Industry Association(CCMA), the China Council for the Promotionof International Trade - Machinery Sub-

Council (CCPIT-MSC), the ConstructionEquipment Association (CEA), the JapanConstruction Equipment ManufacturersAssociation (CEMA), the China ConstructionMachinery Co., Ltd. (CNCMC), the CostruttoriMacchine Movimento Terra (COMAMOTER),the Japan Construction MechanizationAssociation (JCMA), the Korea ConstructionEquipment Manufacturers Association(KOCEMA), the Unione CostruttoriMacchineEdili, Stradali, Minerarie ed Affini(UCoMESA) and the Unione NazionaleAziende Construction Equipment &Attachments (UNACEA).

In addition, the German EngineeringFederation, the VDMA (Verband DeutscherMaschinen- und Anlagenbau), is making anapplication to the Ministry of EconomicAffairs for it to back an official Germanpavilion at bauma Africa. Commenting on theinvolvement of the association, Johann Sailer,president of the VDMA ConstructionMachinery and Building Materials MachineryAssociation and President of the Committeefor the European Construction Equipment(CECE), said: "The German industry very muchwelcomes the initiative of Messe München in

establishing a new sector platform in sub-Saharan Africa. As a trade association withinthe VDMA we have been a partner of MesseMünchen for almost 40 years, supportingbauma. We want the brand and the conceptof bauma to become as well-established inJohannesburg as it already is in otherlocations around the world."

At the show, and on their standsMajor players like Atlas Copco, ELBEquipment, Goscor Group, Herrenknecht,Hyundai, LiuGong, Pilot Crushtec,Putzmeister, Sany, Shantui, Sumitomo, TerexFinlay, Vermeer, and XCMG are showcasingsolutions. Retailers and, thus, sales partners ofinternational brands such as Bobcat,Casagrande, Doosan, Fiori, Genie, Kawasakiand Mitsubishi will also be represented.

Gary Bell, chief executive at Bell Equipment,sees bauma Africa as a real opportunity for hiscompany. He said, "An international exhibitionof this stature in sub-Saharan Africa has beenlong awaited and we at Bell Equipment lookforward to supporting an event which willhave positive spin-offs for the region, theconstruction industry and our customers."

Stefanie Herr, head of corporate marketingat Wacker Neuson, added, "Wacker Neusonhas long had its own sales affiliate in SouthAfrica. But we never had the chance ofpresenting the broad range of products andservices to a large number of visitors there.We are looking forward to doing that nowand meeting customers from the othercountries of the African continent."

Exhibitors also include Bauer Maschinen,which is looking forward to welcoming largenumbers of visitors to its Stand E 20 in theoutdoor area. The selection of equipmentshown by Bauer will demonstrate thecompetence of the Bauer companies insupplying appropriate equipment for boredpiles, water well drilling and mining activitiesas significant activities of the constructionindustry are expected in these fields. And theWirtgen Group will be there, showcasing arepresentative cross-section of its road andmineral technologies product portfolio on anarea of around 800 sq m. The exhibits willfeature innovative technologies from thebrands Wirtgen, Vögele, Hamm, Kleemannand Ciber - specially tailored to the needs ofthe African market.

HPE Africa, the sole distributor of Hyundaiearthmoving equipment in Southern Africa,will be there - and general manager Neil Saulsaffirms that the company will be exhibitingand demonstrating the capabilities of a totalof 14 Hyundai machines, including; miniexcavators, tracked excavators, wheeledexcavators, backhoe loaders, wheel loadersand skid steer loaders.

www.africanreview.com

Hyundai equipment, on show atbauma Africa, is designed towork in any terrain

S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 68

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S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 69

"Exhibiting at a high profile event such asbauma will expose HPE Africa and its productline to some of the biggest names anddecision makers in the highly lucrative Africanconstruction and mining industries - whichboth have considerable potential forsustained growth," he explained.

Another exhibitor, the Wirtgen Group hasbeen operating on the African market in thefields of road construction and mining formany years now. With its well-developedservice network, the local Wirtgen Groupsales and service company, Wirtgen SouthAfrica, not only provides innovativemachines but also guarantees short routesto local contacts and fast, reliable responsetimes – for instance, when providingtechnical support right on the job site orworkshop services. The ingenious logisticsconcept ensures the constant availability oforiginal spare parts. What's more, WirtgenGroup experts can support customers at anytime with on-site applications advicetailored to their needs.

Local sessions for international industryThis inaugural event, taking place atJohannesburg’s Gallagher ConventionCentre, has attracted both local andinternational attention, including that ofcompanies carrying out the supportingprogramme for the event. One session of thesupporting programme will be presented byDr Chris Hinde; a half-day seminar entitled‘Mining Insight: The Industry Explained’providing a comprehensive andstraightforward explanation on how theglobal mining industry works. The seminar isaimed at individuals working withinassociated sectors including equipmentmanufacturers, service companies, legal firms

and the finance industry.Also running alongside bauma Africa is the

Construction Equipment Conference -ConECo - organised by the Contractors PlantHire Association (CPHA). The conference willdiscuss industry-related topics such as riskmanagement, security and compliance,legislation, the economy, the internationalviewpoint, new developments andalternative financing.

The ‘Working at Heights & LiftingOperations Conference’ hosted by theInstitute for International Research (IRR),endorsed by the Association of Mine ResidentEngineers and the South African CollieryEngineers Association, will bring togetherleading safety experts from the industry toaddress current issues and developments inmanaging risk when working at heights orduring lift operations, with a firm emphasis

on best practice and safety excellence.Presentations will be made by PhakamisaSafety Consultants, Morris Cranes SA,Immortal Health & Safety, Johnson Cranes,Anglo American and Buildsafe.

Following the showMMI has in fact formed a joint venture withthe AEM called bC Expo South Africa (Pty) Ltd,to arrange events in the region followingbauma Africa.

Eugen Egetenmeir, managing director ofMesse München, is convinced that thiscollaboration will give bauma Africa addedpotential. He said, “Our colleagues at AEMhave been supporting us in organising thepremiere of bauma Africa. We are very pleasedthat this spirit of cooperation is reflected bythe fact that our two companies have foundedthis joint venture. I am sure that this will allowus to recruit even more exhibitors from NorthAmerica for the fair in Johannesburg.”

Dennis Slater, president of AEM, said, “AEM ispleased to take this next step in its relationshipwith Messe München. Our first joint venture,bC India, has developed as a model of industryefficiency and effective competition in theglobal marketplace, and we now look forwardto a natural extension of our cooperation.Africa has great opportunities for economicgrowth. Recognising this, AEM seeks tosupport and promote its member companiesin North America through the bauma Africa2013 launch.”

Messe München and AEM have alreadycollaborated in the successful baumaConExpo Show – bC India. Its premiere in2011 occupied 88,000 sq m of exhibitionspace. When the fair was last held in February2013, the amount of exhibition spaceincreased to an impressive 150,000 sq m. ■

bauma AfricaCONSTRUCTION

70 African Review of Business and Technology - September 2013

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S15 ATR Sep 2013 Report GB Mining Feature_Layout 1 22/08/2013 16:15 Page 70

S16 ATR Sep 2013 Report GB News 1_Layout 1 22/08/2013 16:30 Page 71

Powerscreen, which provides mobilecrushing and screening equipment, will

display the XH320X impact crusher andWarrior 800 screen at the inaugural baumaAfrica event in conjunction with SouthAfrican Distributor ELB Equipment onbooth D 36 and D 40.

On the stand will be two well-establishedPowerscreen machines: the XH320X and theWarrior 800. Commenting on theforthcoming line up at bauma Africa,Damian Power, global product line director,said, “Powerscreen is eagerly awaiting for thefirst bauma Africa as Africa is an importantmarket for us. The machines on displaydemonstrate the versatility of thePowerscreen offering and demonstrate howwe meet the needs of our customersthrough innovation and investment infocused research and development.”

The XH320X is a mid-sized horizontalimpact crusher designed to offer operatorsand contractors excellent reduction andhigh consistency of product shape forperformance in quarry and recyclingapplications. With tracked mobility, theplant is capable of working in the mostdemanding environments and featuresrapid set-up time, fuel efficient direct drivesystem and excellent output potential of upto 320 tph (352 US tph).

The Warrior 800 is a multi-purpose, heavyduty incline 2-deck screen, capable ofstockpiling, 3-way splitting or scalping beforeand after the crushing units. The screenboxwill accept a wide variety of screen mediamaking it suitable for a range of applicationsincluding topsoil, recycling, construction anddemolition waste, sand, gravel andaggregates. The machine is available in eithertracked or wheeled mobile versions, with bothconfigurations offering a compact transportfootprint with a width of 2.5 metres (8’ -2”),reducing transport permit requirements.

In conjunction with ELB, the constructionsegment of Terex will also be showing, forthe first time in Africa, its new TLB890backhoe loader. Key to the TLB890’spowerful performance is its new high-pressure hydraulic system, high-forcecylinders and new boom design. Themachine will be available to the Africanmarket following the show.

72

Manoeuvring safety will take centre stage atbauma Africa as Brigade Electronicsshowcases a diverse range of its most durableradar and camera systems - as well as itssignature broadband sound alarm, to theAfrican mining, construction and haulagemarkets – while launching its Smarteye 360°camera system to an international audience.

Making its debut in the inaugural show’s‘UK Pavilion’, Smarteye is the first in a newgeneration of intelligent vehicle safetysolutions: a camera system that eradicatesblind spots and dramatically reducescollisions and driver information overloadthanks to a single bird’s-eye view of the entirevehicle and its immediate surroundings.

Comprising four cameras placed aroundthe vehicle, Smarteye technology works by‘stitching’ each image together to provide acomplete and accurate all-round view, as iffrom above. Powered by software from ASLTechnology, a specialist software developer ofvideo image processing and other products,each camera’s ultra-wide angle lens renders a

realistic, light-balanced video imagedisplayed in real time on a high-definition cabmonitor– with programmable options tohighlight areas of greatest risk.

Visitors to the Brigade stand can see theSmarteye system in action as part of abroader product showcase, which comprisesits Backeye range of heavy duty cameras andmonitors, its new-to-market digital wirelesssystem, and a selection of its popularBacksense radar products: Xtreme, WorkZone,and WorkSight. Brigade’s bbs-tek white soundreversing alarm will also be on display –which continues to earn internationalindustry plaudits for its patented directionalsound  that only grabs attention in theimmediate vicinity of danger.

Karel De Bont, Brigade Electronics’ SouthAfrican director, said, “Equipment owners andoperators across Africa see safety as an absolutenecessity, in all industries. That’s why Brigadecontinues to focus on providing solutions thatsurpass industry standards and deliver in eventhe most challenging natural environments.”

Terex Washing Systems (TWS) will be presentat bauma Africa in Johannesburg - reflectingthe rising importance of Africa in constructionand mining to its business model. TWS isattending the event following increasedactivity and enquiries in the African market.

TWS company expects bauma Africa toprovide an excellent platform andopportunity for interaction with customers,to enable it to meet their specific washing

needs. The company will present itsportfolio with a key dealer in this market,ELB Equipment, in addition to its presencewith Invest NI.

You will find TWS with ELB at stand numberD 36 and D 40. The company can also befound at the Invest NI stand at H3 241.

Terex Washing Systems’ director, and thecompany’s marketing manager, will be athand to answer all washing queries.

PowerScreen mobileequipment on show

African Review of Business and Technology - September 2013

Brigade showcases smarter safety

TWS meets new markets in Jo’burg

www.africanreview.com

The new generation of compact cone crusher from Sandvik provides customers with optimumperformance and good cubical shape, whilst ensuring the lowest operating cost per ton for a widerange of materials and applications. The all new patented Sandvik CH550 is based on the provenHydrocone design, with the CH550 combining the ability to produce excellent shaped products,in fewer crushing stages, thereby making it adaptable to ever-changing customer requirements.The new CH550 crusher from Sandvik Construction has been developed in response to customerdemands, building on the rock solid foundation of the Hydrocone concept. This new range ofcrushers establishes Sandvik as market leaders in the design and development of cone crushersthat have been developed to deliver exceptional rates of productivity and efficiency. The CH550crusher has the ability to be configured for either secondary or tertiary crusher applications. Italso has a wide performance range and with its unique, patented design the CH550 providescustomers with unparalleled adaptability and flexibility.

Sandvik’s new cone crusher

bauma AfricaCONSTRUCTION

S16 ATR Sep 2013 Report GB News 1_Layout 1 22/08/2013 16:30 Page 72

Terex Construction in Africa

www.terexconstruction.com

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Doosan International South Africa is presenting a selection ofproducts from Doosan Portable Power and Montabert.

Doosan Portable Power manufactures portable compressors andmobile lighting systems for the African market. The portablecompressor range is available with free air deliveries from two to45 cubic metres (cu m) per minute and operating pressures fromseven to 35 bar.At bauma Africa, visitors will be able to see the 7/41 compressor,which supplies 4.0 cu m per minute of compressed air at sevenbar and is one of a number of models that can be equipped withan integral 6.5 kVA. Alongside the 7/41 compressor will be the new 50 Hz LSC(LightSource Compact) portable light tower, designedspecifically for use in African markets.Key features of the display of equipment from hydraulicequipment manufacturer Montabert will be a range of hydraulicbreakers and hydraulic drifters for drilling applications. The focus will be on the Silver Clip range of light hydraulicbreakers for carriers ranging from 700kg to seven tonnes.Demonstrating the easy to use, high performance and reducedmaintenance design of the Silver Clip range, the SC36 hydraulicbreaker on the stand is intended for use on carriers with weights

from four to 10 tonnes.Doosan International South Africa will be exhibiting at stand

H5 301.

Pan Mixers South Africa(PMSA) will be exhibiting itsIMER concrete batching andmixing equipment technology atbauma Africa.

The company was officiallynamed as the South Africandistributor for Europe-based IMERin July 2013.

PMSA marketing and salesmanager Quintin Booysen said,“The outdoor stand has beendesigned to be a demonstrationarea to showcase the capabilitiesof a comprehensive range ofPMSA machinery, including theFiori self-loading concretebatching vehicle, the automatedRE600 concrete brick and block-making machines, in addition to awide range of HTC floor grindingand polishing machinery andaccessories with live polishingand grinding demonstration.

PMSA will also host all of itsinternational suppliers at itsindoor stand, in order to provideexpert advice and insight tovisiting guests,” he added.

Looking to the future, Booysenbelieves that there will be asignificant increase in demand forPMSA’s concrete equipment andtechnology across Sub-SaharanAfrica, as trade and investmentincreases across Africa.

“With strong economic growthforecast for Sub-Saharan Africa inparticular, PMSA plans to be at thegrassroots of that developmentby supplying all associatedconcrete equipment, technologyand solutions to the variousprojects through the PMSA Groupof Companies,” he added.

PMSA will be displaying itscomprehensive product range atD 26 and H5 111.

74

Doosan Portable Power and Montabert present products for Africa

The Doosan Portable Power 7/41 compressor

African Review of Business and Technology - September 2013

Innovative concreteequipment on display

www.africanreview.com

bauma AfricaCONSTRUCTION

S16 ATR Sep 2013 Report GB News 1_Layout 1 22/08/2013 16:30 Page 74

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IN EUROPE & MIDDLE-EAST

18 – CATERPILLAR 594H

MOERDIJK, NL

2012 MAN TGM 18.290 4x4 w/ PALLFINGER WT450

MOERDIJK, NL

2007 TEREX PEGSON 1000SR

OCAÑA, ES

2005 METSO LOKOTRACK LT300GPB

TAMPERE, FI

2009 CATERPILLAR 365C ES

CAORSO, IT

UNUSED –2008 & 2007 GROVE RT890E & RT880E

2004 CATERPILLAR D8R CATERPILLAR 140H VHP

MONCOFA, ES

DUBAI, UAE

DUBAI, UAE

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CONSTRUCTION

Endress manufactures mobile and stationary power generationunits from 2-2,500 kVA in Germany. With its Duplex technology,these generators are able to run differenttypes of load like sensitive consumersand heavy load appliances at the sametime. Endress products have beendesigned for the tough everyday use inrough operation. The company provides‘water-proof’ generators with IP54protection, so no matter whichconditions you face – ENDRESS will

always be the right choice for your power supply. The generatorscan be monitored and controlled over the internet using the E-

RMA monitoring software on anyweb-enabled device.

Besides the construction and rentalindustry, Endress is a well-known supplierof generators to the fire and rescuebusiness and military applications.

Visit www.endress-generator.com, or findEndress in the German pavillion at H5 178

African Review of Business and Technology - September 2013

Endress brings power to Africa

www.africanreview.com

Spanish tower crane manufacturer LindenComansa and its South African dealer

Tower Crane Services will co-exhibit together.The companies will erect a 21LC290 flat-

top crane at their stand, with a maximumload capacity of 12 tonnes and at a heightunder hook of 15.1 metres.

The tower crane belongs to the LC2100Series, which, having recently been reviewed

by Linden Comansa’s research anddevelopment team, will feature newimprovements at bauma, includingfrequency control on the slewing movement;electrical systems gathered in one singlecabinet; and the latest version of the ‘CabPlatform + Electrical Cabinet’ set, with easyinstallation to the slewing part for fastassembly.

Linden Comansa to exhibit 21LC290 tower crane

The 21LC290flat-top crane

bauma Africa

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HPE Africa, soledistributor of

Hyundai earthmovingequipment in SouthernAfrica, will be exhibitingmachines includingmini, tracked andwheeled excavatorsalongside backhoe,wheel and skid steerloaders. HPE Africa general manager Neil Sauls said, “Exhibiting at a highprofile event such as bauma will expose HPE Africa and its productline to some of the biggest names and decision-makers in thehighly lucrative African construction and mining industries – whichboth have considerable potential for sustained growth.”HPE will also be demonstrating its range of Astra articulated dumptrucks (ADTs) and rigid dump trucks (RDTs), as well as McCloskeyjaw crushers and screens.“I am confident that HPE Africa can enter new markets in East andWest Africa, while consolidating on its established presence inSouthern Africa - especially within the rapidly developing Zambianand Zimbabwean mining sectors,” Sauls concluded. HPE Africa will be exhibiting at stand D 21.

The inaugural baumaAfrica is on the doorstepof South African heavyequipment manufacturerBell Equipment, and thecompany plans to make astrong impact locally byshowcasing its strides ininnovation with the debutof its 60-tonne articulated dump truck, the B60D.Following in the footsteps of the company's flagship B50D, which wasreleased for export at bauma Munich in 2004, the B60D opens upopportunities for the company in a domain that was previously onlycontested by rigid haulers. The B60D has full articulation and oscillationsteering but differs from a traditional ADT in that it has two driven axles,giving it 4x4 capability. With a 60-tonne payload the company believes itwill be able to move considerably more dirt than a regular ADT, at a lowercost per tonne than comparative rigid haulers. At the same time the truckoffers much better off-road capability than a rigid hauler and has theability to work in worse underfoot conditions to increase days in production.Bell Equipment marketing manager, Stephen Jones said, “We're excitedto be able to showcase our cutting-edge products at a show of thismagnitude on the African continent. Apart from our B60D, we will alsobe displaying our new B50D Ejector as well as the E-series ADT andupgraded Fleetm@tic fleet monitoring system, which were very wellreceived at bauma Germany earlier this year.”

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Telestack has announced it will showcase its Mobile Radial Telescopicconveyors at bauma Africa at stand D 40 together with its partnersELB Equipment .Telestack have a number of these units available in Africa which areused for stockpiling/reclaiming in the pit or port and loading vesselsat inland river terminals/sea ports.The equipment is suitable for handling a wide range of materials fromheavy ores to aggregates to coal, grain, fertiliser and biomass.These locations do not have adequate infrastructure to cost effectivelytransport the commodity from pit to an inland river terminal/sea port. Miners have to invest a lot in infrastructure to get the material to theport and then load it onto the ship.Telestack has designed and implemented a number of rapiddeployment solutions using a range of self powered mobile conveyors

and hopper/feedersthat allows miners atlow costs to rapidlystack and reclaimmaterial at the mine. Telestack stated thattheir new solutions aredesigned to ensure thatthe customer can veryquickly be generatingrevenue streams.

HPE Africa to display comprehensiveproduct range

The Mobile Radial Telescopic conveyors can handlematerials including coal, grain, fertiliser and biomass

The Hyundai 220LC-9 hybrid excavator

African Review of Business and Technology - September 2013

Debut for Bell B60D

Telestack at bauma Africa

www.africanreview.com

Bell’s 60-tonne articulateddump truck, the B60D

bauma AfricaCONSTRUCTION

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Italian-based Merlo, manufacturer ofproducts for the construction, mining and

agricultural sectors, has been recognised asa market leader with its DBM range of self-loading concrete mixers, being among thetop players in the telehandlers market.The company produces telehandlers(front loading, with stabilisers and withrotating platform) and concrete mixers(DBM), it said.In the African continent Merlo set-up its firstself-loading concrete mixers in 1966 andthe last generation of this line-up has four-wheel drive with hydrostatic transmission,portal axles, three-function steering systemand large water and fuel tanks ensuringvehicle disengagement on all terrains andlonger autonomy. The DBM are particularly appreciated wheremorphological conditions require versatile,reliable and sturdy off-road vehicles. The telehandlers range is made using morethan 50 different models with boom reachfrom six to 30 metres and capacity from 2.5to 12 tonnes.

Merlo S.p.A launchesDBM range

Merlo S.p.A’s telehandlers range is formed of morethan 50 different models

Technical Mechanical Services (TMS), asupplier of spare parts for miningoperations, has expanded worldwide, witha portfolio of 42mn part-numbers. The company supplies transmissionsystems, engines, filters and seals formining, drilling machines, cranes, forkliftsand tracks. “We have been around for almost 20 years.The African side of the operation is well-established and I have been travelling theresince 1997,’’ explained managing directorJohn Rogerson. “We started by supplying the gold mines inGhana, Copper in Zambia, Bauxite in SierraLeone and Diamonds in Botswana, and wecontinue to capitalise on the wealth ofopportunities Africa Holds.’’TMS, which has its headquarters in Liege,Belgium, is able to use substantial facilitiesin the region, making it an ideal location,Rogerson said.

“All parts are funnelled through ourBelgium warehouse and shipped directly tothe end user wherever they happen to be,“he stated.“We have invested a lot in our supplieraccessibility and if one doesn’t have thepart, we have another that probably does.’’TMS has an IT system, TMS Soft, whichenables the smooth running of the creationof quotes, stores to be assessed andlogistics to be organised, the company said. According to Rogerson, the company isnow also a supplier for various industrybrands, working alongside MTG, a supplierof GET (Ground Engagement Tools); Berco,which is engaged in all aspects ofundercarriages; and Rockmore, whichsupplies percussive rock drilling tool.‘’Our five-year plan is to cover Africa inspare parts: that’s the goal andeverything we do works towardsachieving it,’’ he added.

Shantui Equipment Southern Africa director and vice general manager for Shandong ShantuiConstruction Machinery Import and Export Co. Ltd., Dylan Chicken, has announced that newconstruction products will be launched by the company at bauma Africa.At the exhibition, which will welcome more than 500 exhibitors and 15,000 visitors from theconstruction and mining sectors, Shantui will be demonstrating a range of new machinery.New products will include the Shantui SD32W bulldozer and Shantui SD22W bulldozer alongwith the Shantui SG21-3 motor grader.“Shantui's substantial 800-square metre exhibition area will see the launch of a number of thecompany's latest product and network developments,” Chicken commented. Shandong Shantui Construction Machinery Import & Export is a subsidiary of ShantuiConstruction Machinery, specialising in the import and export of Shantui parts and products.

African Review of Business and Technology - September 2013

Shantui to launch newconstruction machinery

TMS expands spare parts database

www.africanreview.com

CONSTRUCTIONbauma Africa

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Bonfiglioli has been designing reliable, tried and tested drumrotation solutions for cement mixer trucks for many years. Earlier

this year at bauma Munich, Stefano Baldi, worldwide sales managerat Bonfiglioli Trasmital explained, “The cement mixer truck markethas always been an important one for us, and we have always doneour best to offer key account customers superbly reliable, highperformance solutions. As the result of a co-engineering project withone of our major customers, CIFA-Zoomlion, a world leader incement mixer trucks, Bonfiglioli is now launching a hybrid systemthat will change the future of cement mixer drum rotation. We areextremely proud of this new product because we are convinced thatelectromobility solutions will play a major role in the future ofconstruction site and quarry machines.“We are also delighted that CIFA-ZOOMLION chose us as theirpartner in this project. It shows that we have the professionalism andcompetence they need.”The solution designed by Bonfiglioli in conjunction with CIFA-Zoomlion comprises a gearbox of Bonfiglioli’s historical 500 Seriescoupled to an AC electric motor that provides normal power and aDC electric motor for emergency use.This new solution not only guarantees greater energy efficiency andreduced fuel consumption, but also helps cut cement mixer truckoperating costs (for example by extending service intervals and

making servicing simpler than on hydraulic drive solutions). Performance is improved too: rotation speed control is moreaccurate, operating noise levels are significantly lower (thanks to theelectric motor and the helical tooth profile of the high speedgearbox stage).Finally, functionality remains higher in the event of a failure: thepresence of a second, backup DC motor gives reassuringredundancy and eliminates the risks and potentially hazardoussituations caused by failures of the drum emptying system (if thedrum cannot rotate, the cement can solidify and put the mixer truckout of action).The new Bonfiglioli solution is designed for use with medium tolarge mixer trucks that have medium to long delivery distances totravel. Drum rotation speed is between 15 and 22 revolutions perminute and capacity between six and 14 cubic metres.To give some basic technical details, the gearbox of the new solutionhas a reduction ratio of 1:220 (1:2200 in emergency mode) and cantransmit a maximum torque of 35,000 Nm (rated torque of 21,500Nm). The main motor has a power rating of 40 kW, is liquid cooledand has an index of protection of IP66.This new Bonfiglioli solution will be on display at the baumaexhibition, at the Bonfiglioli stand and on a mixer truck displayeddirectly by CIFA-Zoomlion.

Kobelco Cranes, a subsidiary of Kobe Steel, has launched KobelcoBMS1200HD, a new foundation crane.The construction machinery manufacturer, which specialises in crawlercranes, said its stand at bauma Munich had a key focus on newfoundation cranes. The Kobelco BMS1200HD crane is equipped with a high-performanceengine and the MTU 12V2000 Diesel engine, which has 12 cylindersin V-design and provides 634 kW of rugged rated power at 1,800revolutions per minute. According to Kobelco, the crane has so far been set up for use onconstruction and foundation projects outside of the European Union. The crane has been designed for the global foundation industry andis equipped with high performance winches, high line speed, highspooling capacity, high flow hydraulic outlet, the company said. The BMS 1200 HD features KOBELCO’s latest full-colour 12-inch displaymonitor with touch screen and ISO symbols. Further features include the combination of the moment limiter andthe machine condition monitors, providing easy access to liftinginformation and machine status. The auxiliary sheave has a maximum combined line pull in doublerope operation of main winch and auxiliary winch of 319 kN (32.5tf ).The BMS1200HD, successor of the BM1299, can be used on bargesand a reduced lifting table for working on barges is also available,Kobelco said.

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Cement mixer trucks from Bonfiglioli

African Review of Business and Technology - September 2013

Kobelco Cranes launchesnew crane

www.africanreview.com

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Genie Europe has announced that it will be showcasing its latestofferings at bauma Africa.The company exhibited the Genie S-45 Trax telescopic booms atbauma Munich, which was held in April this year. The Genie S-45 Trax aims to reduce damage to sensitive groundsurfaces and is able to drive on almost any surface, with a lift heightof 14.2 metres, a vertical reach of 11.2 metres and a gross weight of7,927kg, Genie Europe said.Genie S-45 Trax telescopic features a patented track design whichallows for an independent triangular track at each corner and alsoincorporates patented active oscillating axles. The tracks are kept in contact with the ground on uneven andundulating surfaces to ensure maximum power, Genie Europe said.“The new Trax models provide increased useability and comfort,”said Scott Kriger, senior product manager at Terex Aerial WorkPlatforms (AWP).

Genie Europe will beexhibiting its latest offeringsat bauma Africa 2013

African Review of Business and Technology - September 2013

Genie Europe to showcase new products

www.africanreview.com

Ammann launches new rollerAmmann has announced the new Rammax1575 CI trench roller will be manufacturedat Langenthal in Switzerland.The previous model, the 1575C, waslaunched at bauma Munich earlier this year.Since then, the construction equipment

manufacturer has set out safety measureswhich will apply to the Rammax 1575 CI.Furthermore, compliance with the newstandards will ensure that safetyrequirements have been met, Amman said.The engine offers low fuel consumption,

which means reduced emissions, thecompany added.The new articulated trench roller features awater-cooled diesel engine from Yanmar,which is expected to improve reliability andreduce noise.

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Bell Equipment has deliveredthe first of its new E-seriesArticulated Dump Trucks toBallito Crushers in northernKwaZulu-Natal, which islooking forward to using thestate-of-the-art technologyof the B25E and its manysafety features to positivelyimpact their quarry business.Clive Damant, founder ofBallito Crushers said, “Wedidn’t realise our ADT wasthe first one to be deliveredin the country; it’s veryexciting. We’ve been runningold series B20Ds andalthough we’ve beenpleased with their productivity and performance, we have opted for theB25E because of the higher payload and related cost efficiencies. Ournew truck is also 6x6 as opposed to the 6x4 B20Ds, which will better suitour quarrying application going forward as we require good traction.”According to Damant the B25E, with its 100 per cent mechanicalavailability, will be the prime mover of material into the crusher jaw toensure that the operation runs seamlessly.Ballito Crushers supplies crusher dust, predominantly to the local blockyards, 19mm concrete stone, G2 and G5 road gravels as well as G7 naturaloverburden. The growth in the Ballito area has created a huge demandfor material from Ballito Crushers. Already the company has suppliedaggregates for the road infrastructure in the Simbithi Eco Estate,Brettonwood and Dunkirk estates as well as parts of the prestigiousZimbali development. “We’ve introduced a new fleet of crushers to increase our production,which currently sits at about 30,000 tons per month. Damant attributesthe increase in demand largely to the nearby King Shaka InternationalAirport. The airport has been a magnet to development. There are nowfour large shopping centres in the Ballito and surrounding areas thathave opened in the last 10 years along with industrial and residentialdevelopment.”To keep pace with development, investment into infrastructure is alsotaking place with a contract to widen the off-ramps on the N2 highwayat Ballito as well as a separate contract to double the existing roadthrough the now bustling coastal town.Meanwhile, complementing the B25E and B20D are two Bell L1506Wheeled Loaders and a Bell 1430 Excavator, to assist in loading roadtrucks and overburden respectively. The Bell fleet is fully serviced by BellUmhlali and Damant comments: "One breakdown has a ripple effectthroughout the operation so availability is critical. We’ve never had aproblem with downtime because of the good service we receive andthat is why we stick with Bell."

African Review of Business and Technology - September 2013

Bell delivers E-seriesequipment to Ballito Crushers

www.africanreview.com

Grant Barnard (customer supportrepresentative, Bell Umhlali) walks Clive

Damant through the technology andfeatures of his new Bell B25E

CONSTRUCTIONbauma Africa

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82 African Review of Business and Technology - September 2013 www.africanreview.com

Egyptian Transportation & Logistics (ETAL)recently transported six transformers from twoRed Sea ports to the Giza North Power Stationon Scheuerle InterCombi. Due to the preciseproject planning of ETAL and the safe andreliable equipment of Scheuerle, all obstaclescould be mastered and the transport arrivedin time at its destination safely.

Egyptian Transportation & Logistics (ETAL)transported six transformers from two RedSea ports to the Giza North Power Station onScheuerle InterCombi. Due to the preciseproject planning of ETAL and the safe andreliable equipment of Scheuerle, all obstaclescould be mastered and the transport arrivedin time at its destination safely.

EgyTrans, mother company to ETAL, hasprovided integrated global transportservices and solutions in Egypt since 1973. Inaddition to transporting cargo ofexceptional weight or dimensions, ETALprovides a number of services to itscustomers and guarantees an in-timetransport, even if the circumstances arechallenging. In this case they were in factdifficult – a first check proved, that the onlyway to get the transformers to the job siteinvolved partly barging over the Nile Riverfrom the Tibin jetty to the Khatatbatemporary jetty and finally transportingthem on Scheuerle InterCombi to the jobsite itself. The six transformers of 146.5 tonseach made the transport a tough task, dueto the difficult road situations. Especiallyuneven surfaces challenged the equipment– no problem for the InterCombi with its650mm axle compensation.

The transport started in Sokhna and

Adabiya Ports on the Red Sea. The firstdestination was Tibin jetty, where the 7.42 x4.31 x 5.10 metre-sized transformers werebrought to on 14 axle lines of SCHEUERLEInterCombi. At Tibin jetty, the transformerswere loaded on a river barge with a crawlercrane. The barge moved the transformers upthe Nile to Khatatba temporary jetty, anoffloading facility near Giza power station,built especially for ETAL. At Khatatbatemporary jetty, the transformers were storedand afterwards transported to the Giza Northpower station site.

Regardless uneven roads or extremetemperatures experienced in the desert -InterCombi platform trailers have beendesigned to deal with the challenge of both

long-distance transport on the road andspecial operating conditions. The modulardesign provides an extensive selection oftransportation solutions which are based ontwo- to eight-axle platform trailers. These canbe coupled both longitudinally and laterally.With a 36-ton technical axle load, theInterCombi is suitable for the safe transport ofheavy loads and offers sufficient reservesthrough the robust construction of the frame,also with extreme loads. As an extension ofthe InterCombi series, the InterCombi PB(Power Booster) is available which isequipped with activatable drive axles and, ifrequired, is driven likewise by a activatablePowerPack Unit (PPU), eg, for gradients -without the use of an additional tractor.

ETAL moves transformers with Scheuerle InterCombi

Offloading of the transformersat Giza North Power Station

Arrival at Tibin jetty onScheuerle InterCombi

Unevenness or extreme temperatures – theSCHEUERLE InterCombi can handle heavy

situations without any difficulties

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Applicators are constantly looking for solutions that meet the quality criteria of aesthetic concretes.Chryso FiniSol Brut is an essential supplement to the Chryso Deco range, since it offers a perfectfinish for exposed aggregate concretes and ensures long-term protection.Chryso FiniSol Brut is designed specially for exposed aggregate concrete works, and has a broadrange of properties:● Protection of the concrete mineral surface finish.● Application onto exposed aggregate concretes, immediately after washing (fresh and wet).● Proven protective qualities (stain-proof, abrasion, ageing, surface hardness).

Specially formulated in aqueous phase, it protects users and meets the new environmental buildingquality standards, which require increasingly environmentally friendly products to be used.Using Chryso FiniSol Brut does not alter the appearance of the surface of the concrete. Unlike wet-look protective products, it gives the concrete a perfectly natural aspect, without altering thecement matrix: it is not darkened and the aggregates do not shine.

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Throughout 2013, Power Curbers, Inc has beenactively engaged in 3-D technology research forcurb machines. The possibility of eliminatingthe setting of hubs and the labour-intensivesetting of stringline will revolutionise curb work.The use of common control systems for gradersand curb machines is an advancement ofunparallel proportions.The challenges include:● Data management, which must be fail-safe.

When 3-D models are created and thegeneral contractor gives the data disk to thecurb contractor after the earth-moving workis completed, the curb contractor must haveconfidence that the information on the disk iscorrect. If incorrect information isdownloaded into the curb machine and thereis a subsequent mistake in the placement ofconcrete, it is a significant loss.

● When curb contractors set stringline, anyprevious errors become evident. Withoutsetting stringline, you lose the visual control.

● 3-D technology must allow the curb machineto turn a tight radius, critical in today’smarket. With larger pavers used for mainlinepaving, radii are more sweeping, making it abetter fit for 3-D technology. Turning a 2-footradius in a parking lot with a curb machine isa challenge for 3-D technology.

● With GPS controls, a goal is to use thesame 3-D hardware for earthmovingoperations and the curb installation, thusreducing the price.

At Power Curbers, Stephen Bullock reportedearlier this year that the company is excitedabout the technology and its benefits, whileidentifying and addressing challenges.

Goscor Power Products (GPP) is focusing onthe renowned Subaru EX–OHC ‘commercialduty’ engine series this year, for newproducts which will be powered by the EX-Overhead cam engine, including waterpumps, fertiliser pumps, fire fighting pumpsand construction equipment. This'powerhouse engine' has a superior range offeatures and benefits when compared withother engines in its class according to GPPnational sales manager, Mark Bester.

“The Subaru EX-OHC is an all-purpose enginedesigned for heavy industrial use like on aconstruction site and for lighter work as in adomestic drum lawn mower,” he said.Applications include construction,agriculture, general industrial, lawn mowers,go-carts and fire-fighting.“Importantly, unlike other well-knownbrands, we offer a full three-year warranty onthe EX –Engine which is still unmatched inthis market,” Bester noted.

African Review of Business and Technology - September 2013

PowerCurbers 3-D technology

Chryso’s sealer for exposedaggregate concrete floors

Goscor set on Subaru engines

www.africanreview.com

LiuGong and ZFcelebrate first JV axle

bauma Africa exhibitor LiuGong recentlymarked the completion of a first

prototype JV axle (AP3000) with ZF, whichwas produced by their new Joint venturecompany, ZF Liuzhou Axle Co. Ltd. It is not the first time these two parties haveworked together to promote the progress ofconstruction industry. In 1995, LiuGong andZF started their long term relationship bysetting up ‘Liuzhou ZF Machinery’ toproduce construction transmissions andspare parts. It has been successfully servingjoint venture partner LiuGong and thirdparties with high quality constructionmachinery transmissions for years.After the continued success of the first JVwith ZF, LiuGong and ZF built a new jointventure together last September, focusingon wheel loader axles that are speciallytailored for the requirement of developingmarkets. Located in the same city togetherwith LiuGong, the new ZF Liuzhou Axle Co.Ltd. is targeting an increase in annualvolume to more than 30,000 units by 2018.“Liuzhou ZF Machinery has been a win-winexample in the industry for years. Today, wecome to another milestone with our new JVcompany, ZF Liuzhou Axle,” says WangXiaohua, chairman of the board for LiuGong.“I am very pleased to be here to unveil thebrand new AP3000 axle. It marks a new levelof our excellent cooperation with ZF, theworld’s leading automotive industrysupplier, demonstrating our determinationin the heavy machinery industry.”AP3000 was developed through the jointefforts of research teams from ZFheadquarters in Germany, ZF China andLiuGong.For more than 55 years, LiuGong MachineryCorporation has been a leader in China’sconstruction equipment manufacturingindustry. From building the country’s firstmodern wheel loader, LiuGong has evolvedto become one of the fastest growing,global, CE companies in the world offering afull line of extreme duty, intuitive machinesfor construction equipment ownersconstantly challenged to do more with less.ZF is a leading global automotive supplierfor Driveline and Chassis Technology with121 production companies in 27 countries.

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86 African Review of Business and Technology - September 2013 www.africanreview.com

The Goscor Group’s Port Elizabethoperations – which include Goscor Lift

Truck Company (GLTC) and GoscorCleaning Company (GCC) – officiallyopened the doors to its new headquartersin Deal Party in May 2013, afteroutstanding growth in the business meantthe company had grown too large for itsold premises. Branch manager for bothcompanies, Mike Burley, said that new,larger premises had become essential.

“Our growth has been phenomenal andthe increased space will make it easier forus to give our clients the kind of personal,comprehensive service they have come toexpect from Goscor,” Burley said. The newpremises are two-and-a-half times the sizeof the old premises in Neave township.They include larger warehouse space, amuch bigger and better structuredworkshop, more office space, and adedicated showroom area for the displayof Goscor’s wide range of top-qualityproducts – from vacuum cleaners to largelift trucks. Burley added that the move willmake it possible to bring more machinesinto the short-term rental fleet, and toincrease the number of parts instockholding, thereby improving partsavailability and readiness.

“The much bigger and better-structured workshop also means we willbe able to service more machines morequickly. This improved service capacitywill clearly translate into even lessdowntime and increased productivity forour customers,” Burley said.

With the change to larger premises, anadditional technician has also beenemployed, to cater for the increase involumes. GLTC managing director DarrylShafto, said that he was looking forward toeven better growth in the region, giventhe benefits of the new premises.

“Appropriate physical conditions arecrucial to our business and I know that thenew Deal Party premises will make asignificant difference,” he said. Shafto addedthat both the Cleaning and Lift Truckbusinesses provide world-class machinesand solutions, but that this would meannothing without world class customerservice and support.

Since the introduction of the Schmidt Hammer in the 1950s, Proceq has continuouslydeveloped its Schmidt Hammer portfolio to cover the entire range of compressive strengthclasses. With further improvements of the best-selling advanced rebound hammersSilverSchmidt and Digi-Schmidt and the re-introduction of the Schmidt OS-120 PendulumHammer, Proceq‘s concrete test hammer portfolio is the most comprehensive available.

The fully integrated digital Proceq SilverSchmidt concrete test hammer meets the newversion of the EN 12504-2:2012 standard. Experts throughout Europe recognize EN 12504-2which prescribes the common method for obtaining a reliable rebound value. This standard is afundamental requirement of EN 13791 for assessing in-situ compressive strength and isregularly referred to in specification sheets and contract documents.

Independent validation testing has shown that the SilverSchmidt’s patented opticaldetection technology for the rebound value Q has less dispersion than the classical hammersover the entire range. The SilverSchmidt features superior performance, unmatchedrepeatability and intuitive operation all in a rugged and ergonomic unit.

JLG Industries, Inc., an Oshkosh Corporationcompany and a global manufacturer of aerialwork platforms and telescopic materialhandlers, offers the JLG Mobile Analyzer – afirst of its kind in the industry, combining afree mobile application and a wireless accessmodule to provide technicians with remoteaccess to program, troubleshoot, calibrate, orcustomise JLG equipment performance.

“The JLG Mobile Analyzer is a Wi-Fi-enabledevolution of the JLG Analyzer Kit, allowingtechnicians to do the same analysis they arecurrently doing with the handheld kit.However, this new tool for Apple or Googleoperating system devices allows for an

extended operating range of up to 150 feet,”explained Chris Mellott, JLG vice president,customer support and aftermarketdevelopment. “Continuing to introduce newtechnologies that help our customers do theirjobs more efficiently is a key priority at JLG.We believe this app provides the flexibilityour customers need.”

Users can download the app at no chargeon mobile devices compatible with Apple iOS5.0 and up, as well as Android API 8 and up,through Apple iTunes and Google Play stores.Regular software updates ensure compatibilityto mobile devices. The app works with the JLGMobile Wireless Access Module.

Nowadays, radio technology makes thework of machine and crane operators a loteasier in many fields of application. Withever-expanding use, the occupancy ofavailable frequencies increases as well.HBC-radiomatic offers a whole set of cleverfrequency management procedures,specifically designed for “packed” radioareas with many simultaneous radio users.These procedures guarantee efficient anduninterrupted operation withoutfrequency conflicts.

The 2.4 GHz technology is an especiallyefficient option. Moving forward, thisoption will be available for many HBC radio

systems and offers several decisiveadvantages: the frequency management isalready included and works automatically.Manual frequency coordination and theinconvenient need to harmonise with otherradio users is no longer necessary, savingvaluable time and money. In addition, thistechnology is approved almost worldwideand is thus especially versatile for the usearound the globe.

For more than 60 years we havedeveloped and manufactured high-qualityradio control systems with the “made byHBC-radiomatic” seal of quality. Today, HBCradio controls are in demand worldwide.

Goscor sets out fromPort Elizabeth

JLG’s Mobile Analyzer providesremote access for troubleshooters

Proceq’s enhanced hammers

HBC-radiomatic’s 2.4 GHz tech

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Bauer Maschinen Group exhibits abroad spectrum of its specialist

foundation equipment at bauma Africa,showcasing new and innovative ideassuitable for Southern African markets. Thegroup is looking forward to welcominglarge numbers of visitors to its stand, E 20,in the outdoor area.

The BG series of rotary drilling rigs, forexample, is a core product in Bauer´sportfolio. It will be represented by a BG 20H. This machine is a compact, highlyversatile rotary drilling rig. Itsperformance characteristics are tailored tothe typical specifications for this class ofequipment. It shows the multifunctionalconcept of the BG rig series.

The RB 50 universal drill rig can handleborehole diameters of 108-1200mm anddrilling depths of up to 1,200 metres. Withits ability to adapt the rig to any drillingsystem, it is well-known in Angola,Namibia, South Africa and many othercountries where water wells have to besunk in remote areas.

Hausherr System Bohrtechnik developsand manufactures hydraulic drill rigs anddrilling accessories for the use in quarries,surface mining and the exploration ofnatural resources. The HSB 3000 is atypical and powerful representative ofHausherr´s 9 model range for constructingblastholes with a max. diameter of165mm to a depth of 45 m. It is poweredby a diesel engine in the range of 290-350kW and comes with an operating weightof approximately 25 tons.

Klemm Bohrtechnik, the specialist foranchor drill rigs, is demonstrating itscompetency by exhibiting the KR 909-1, arobust universal drilling rig in the 13 tonclass which is especially designed for themany and varied applications forcompact drilling rigs in the small-diameter drilling sector.

bauma Africa exhibitor Isoli recently delivered itsSlide 1 Slidebed platform model to Kigali,Rwanda.The platform, with a residual capacity ofapproximately 8,000kg, is installed on an 18-tonMAN truck and is equipped with a crane torecover damaged vehicles.

High Power Equipment (HPE) Africa hasexpanded its range of heavy-duty demolitionattachments, designed to complement itsexclusive selection of Hyundai machinery. HPEAfrica - the sole distributor of Hyundaiearthmoving equipment in Southern Africa -offers contractors the opportunity to save timeand money by investing in its exclusive range ofworld-class imported attachments, designedspecifically for the demolition industry.

For the past three years, HPE Africa has beenthe sole importer of Korean-built Soosanhammers and drills – ideal for any project thatrequires high volumes of rock to be brokenswiftly and safely. Added to this exclusiveselection is the Italian-crafted MB crusherbuckets – designed to meet internationaldemands for more goods to be recycled on site.

Although both products are still relativelyunknown in the South African market, there hasbeen a local surge in demand for theequipment, which is easily fitted to all ranges ofexcavators, skidsteers and wheel loaders, andcould save capital projects millions onexpenditure.

Peter Van Rensburg, sales representative atHPE Africa explains the advantages of the

Soosan range of hammers: “The Soosanproducts complement HPE Africa’s equipmentas it is a top quality brand – the Rolls Royce ofKorean hammers. The attachments are ideal forquarries, mines, demolition, plant hire, oranywhere where breakers and drills arenecessary. We only bring in the sturdier modelsto be fitted to our machinery, because they getabused in a very harsh local environment, sothey need to be extra strong.”

At bauma Germany and now at bauma Africa, Klemm Bohrtechnik GmbH marks its 50thaniversary with an exhibition of new and further developed products for the professional drillingworld. The focus of the exhibition will be on the varied applications for which compact drillingrigs can be utilised today. One may expect to see again the newly developed KR 702-2,specifically the KR 702-2RW for geothermal applications under extremely cramped conditions,the newly-developed compact KR 801-3FS as a modularly conceived drilling rig with Tier 4itechnology, as well as the KR 909-1 as a robust universal drilling rig. Other exhibits, already shownin Germany and likely to be seen in South Africa, include the recently designed KR 806-3F with‘vibro’ drill head unit, drill-rod magazine and Tier 4i prime mover as well as the KR 807-7F withfurther developed kinematics and control.

Bauer technology forspecialist engineering

Demolition made easy withcomplimentary attachments

Isoli Slidebed delivered to Rwanda

Five decades for Klemm

The BG series of rotary drilling rigs is a

core product in Bauer´s portfolio"

bauma AfricaCONSTRUCTION

Soosan’s range ofhammers complementHPE Africa’s equipment

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90 African Review of Business and Technology - September 2013 www.africanreview.com

South African distributor and Europeanmanufacturer signal intent to impressregional markets with a superior display ofequipment at bauma Africa.

This year has been one of rapid growth inbusiness done and in business prospects forBell Equipment, South African manufacturerand distributor of machinery for constructionand mining operations. And the company isin expansive mode. Arguably, amongst itsmost significant moves is a fresh commitmentto distribution in Southern African marketswith Terex Finlay's mobile crushing, screeningand recycling equipment.

The deal with Terex Finlay not onlyincreases the range of products handled byBell Equipment, but also increases Bell'sstrategic profile globally. Southern Africa is akey region to be in, and the distributionarrangement between these two enterprisesacts as a reference that Bell Equipment is acapable business partner, with viable salespresence and a focus on customer support.

Machines marketed across the region,through this collaborative venture, include

Finlay's tracked mobile crusher and screenerproduct line - which is proven in heavy-dutyand high-precision applications. Its versatilerange of crushers well-suited to the reductionand sizing of aggregates for constructionmaterials and mining, and for recycling waste.The Finlay tracked mobile screener productline features three-way-split, heavy-dutyforward-facing units, three-way- and four-

way-split inclined units and four-way-splithorizontal screening units.

Take a look at a prime example of a productsuited to the region. The Finlay J-1175 trackedmobile jaw crusher incorporates a JaquesJW42 jaw crusher and a heavy duty vibratinggrizzly feeder, and offers optimum productionin a range of applications. Compact and quickto set-up, easy to transport and simple to

A show of strength from Bell and Finlay

bauma AfricaCONSTRUCTION

S17b ATR Sep 2013 Report GB News 3_Layout 1 22/08/2013 17:20 Page 90

91African Review of Business and Technology - September 2013www.africanreview.com

maintain, the J-1175 is ideal for quarrying,mining, demolition and recycling applications- and it is available through Bell.

Then look at the Finlay I-100RS mobileimpact crusher, newly arrived to market andalready noted for its innovative design. The I-100RS was presented to customers inprototype form in Scotland, and is undergoingtrials in Europe ahead of its launch toward theend of 2013. A direct drive horizontal impactcrusher with variable speed, the I-100RSaffords operators the capability to achievesignificant levels of production in bothrecycling and quarrying applications. A great showcase at bauma Africa Speaking with key representatives from BellEquipment recently who had travelled fromSouth Africa to attend a customer eventheld by Terex Finlay in Scotland, AfricanReview gained an understanding of theanticipation that the inaugural baumaAfrica event generates. This is Bell's hometurf, and Finlay enables the South Africancompany to present a great showcase ofessential equipment for construction andmining firms of serious intent. The event willfeature Finlay and Bell in strength, with adisplay of the most versatile range ofequipment for Africa at its disposal, to showthat both firms are responding to the

requirements of an increasingly matureregion to serve small and mediumproducers and large quarries equally well.

“We will have a range of equipment -different crushers, different screens. We arebringing in different types of screeningapplications,” said Paul Lilley of Terex. “Wehave always seen Africans at shows aroundthe world, at CON-Agg, at bauma Germany, atbauma China, and they have always beeninterested in our range of products. That's

why we need a strong supplier in Africa, andthat's why we are working with Bell in Africaand exhibiting with Bell at bauma Africa.”

There is great potential in southern Africa,and Bell's team is acutely aware of this. SouthAfrica remains a dynamic and mature market- but there is a prospect of great returns forenterprises positioned to work in Namibia,Zimbabwe and a range of other markets, andBell is ready to provide the equipment andservices to support industry stakeholders.

Bell attended a demonstration of Finlay'srange at a global customer event held in

Scotland earlier this year

CONSTRUCTIONbauma Africa

S17b ATR Sep 2013 Report GB News 3_Layout 1 22/08/2013 18:18 Page 91

The Fayat Group is exhibiting at bauma Africaover 4,800 sq m across blocks F-1009 to1008/1 - with its road building equipmentdivision subsidiaries, which are presenting anextensive range of road life cycle equipmentas well as equipment for laying foundations.This all is rounded off by a demonstrationarea. The Fayat road building equipmentrange on display includes:● Road machines from Bomag.● Asphalt production plants by Marini.● Road maintenance equipment prodcued

by Breining-Secmair.● The foundation equipment of PTC.

Marini is exhibiting an eTower 2500. Thisnew version of the Top Tower is not justeconomical – it is also adaptable over time.Economical because the focus is ontransferability at reduced cost. Thedimensions of the eTower range are suchthat it can be transported using ordinarycarriers. No need for shuttles or exceptionalconvoys. Entrepreneurs want to be up andrunning promptly for small and medium-sized projects. Adaptable because while thebasic eTOWER version is a traditionalproduction machine, several technical kitsround off the range making the plantsuitable for various markets.

The asphalt pavilion is partially given overto the mobility and hypermobility of asphaltplants. The Fayat Group has extensiveexpertise in both continuous and batchsolutions, and the RoadBatch, RoadStar andRoadMaster are just some examples of thecompany’s international references. Themobility pavilion is presenting the range ofpossible solutions.

Bomag is presenting a large section of itsrange, broken down into:● Treatment and compaction of soils.● Asphalt compactors.● Asphalt pavers.● Road milling planers.● Small equipment.

Also on show is PTC, which has completedits range of free hanging vibrodrivers with arange of piling rigs. Advantages of the pilingrig solution compared with a traditional freehanging solution:● Higher productivity (centralised control

station, reduced handling, driving power).● Positioning and alignment of profiles

thanks to the adjustable mast, eliminatingthe need for the guide.

● Compactness: takes up less space (nocrane boom).

92 African Review of Business and Technology - September 2013

Fayat’s comprehensive range of road building equipment

www.africanreview.com

Fayat is presenting machinery fromOMAG, Marini, Breining-Secmair and PTC

bauma AfricaCONSTRUCTION

S17b ATR Sep 2013 Report GB News 3_Layout 1 22/08/2013 17:20 Page 92

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A key exhibitor at bauma Africa, Magni hasbeen run by a family of entrepreneurs inthe machinery industry since the 1950s.Pietro Magni, mechanic, repairer oftractors and manufacturer first ofagricultural vehicles then of tower cranesfor construction, established Fargh S.p.A in1972 along with sons Riccardo andGiorgio, and daughter Franca, for thepurpose of designing and buildinghydraulic cranes. In 1980, he designed andmade the first telescopic fork lift incontinental Europe, the Fargh 4000 FSwith patented boom.

A continuing tradition of innovationIn 1981, Riccardo Magni succeeded hisfather after his death in an accident atwork - and then developed the Fargh 5000RT and the Fargh 3000 RT from that firstprototype.Its pioneering models formed the basis ofa joint venture with the Manitou group

that lasted over 27 years and finally endedin May 2009. During this long period,Riccardo Magni was technical director andchairman of the board of directors ofManitou Italy, and contributed to thegrowth of that company, creating manyinventions for the account of Manitou,which have given life to more than 40national and international patents, ofwhich he is the designated inventor - allinvolving the rotating and fixed boomtelescopic forklifts, which have remainedin property of the French company.In the second half of 2012, unwilling toretire and full of new ideas fortelehandlers, Riccardo Magni repeated theaction accomplished by his father 30 yearsbefore which had led to the creation of theenterprise: he established MagniTelescopic Handlers s.r.l along with hissons Carlo and Eugenio, and daughtersCarlotta and Chiara.Riccardo Magni’s personal design

engineering experience, his constantcontacts with the customers, dealers andmechanics throughout these past 30 years,plus his contribution of new ideas haspaved the way for the second generationof rotating telescopic handlers.

Magni and EAZI on show at bauma AfricaMagni Telescopic Handlers will present itsranges of HTH and RTH machines to theAfrican market at bauma Africa 2013: infact, the Italian company will take part inthe show with its African partner, EAZISales & Service, which managesdistribution of Magni RTH and HTH rangesall over the continent. The 180-squaremetre stand will be in the outdoor area(stand number C 69) and two models ofmachines will be shown: a RTH 5.26, amachine for the construction and industrymarket, and a HTH 25.11, a machine formining, heavy industry and the oil andgas market.

Magni’s HTH machines will be displayed at bauma Africa

African Review of Business and Technology - September 2013

Magni’s innovative machines

www.africanreview.com

bauma AfricaCONSTRUCTION

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When it comes to safety, Doka takes a holistic,A-to-Z approach that runs all the way fromproduct development to safety consulting,and to its extensive range of safety productsand services. At Doka, solutions featuring all-round safety are an integral part of thecompany’s culture.It’s only when you feel safe that you canconcentrate on the job and perform at yourbest. An obvious truth, but one thatparticularly needs to be heeded inconstruction, where the accident rate is twiceas high as in other sectors. Study after studyhas shown that on safe jobsites, people workfaster. Quite apart from human suffering andloss of value-creation, accidents also causeheavy costs ranging from sick-leave to legalconsequences which may even include workon the site being stopped altogether. The oldobjection to installing safety systems is that it“means more work”; Doka has made thisobjection ever less relevant by developingquick and easy-to-operate safety innovationsfor every type of forming assignment.

Doka on safety

Donauer has won a contract for Africa's largest rooftop photovoltaic system –with integration into Namibia’s existing diesel and electricity grid

In a bid to significantly reduce its own energy prices, Namibia's largest brewery,Namibia Breweries Limited (NBL) is relying on a photovoltaic system for its ownindustrial consumption. Integrating the 1 MWp rooftop PV system into the existingelectricity grid with diesel generator will be made possible in the first place throughD:Hybrid Energy Management from Donauer in Gilching, Germany.Due to the high energy costs in Namibia the return on investment for this system isgiven in a very short period of time. Energy procurement costs when operating onthe public network will be reduced and more fuel-efficient operation will be ensuredduring backup operation together with the diesel generator. In each case, therenewable energy produced is consumed directly in Namibia Breweries´ productionand guarantees the company permanently low energy costs. Project Developer is theNamibian solar specialist O&L Energy, a subsidiary of the Ohlthaver & List Group ofCompanies.Donauer won out over the competition thanks to the convincing technical concept ofits D:Hybrid system, thus setting another milestone for expansion in the internationalprojects sector.As a pioneer, Donauer has specialised in the integration of photovoltaic systems intoexisting diesel networks, thus setting standards for a future-orientated energy supplyconcept. The focus is always on reducing operating costs while guaranteeing areliable power supply. Our services range from small hybrid systems, starting from100 kVA, to large-scale industrial plants.

96

Donauer’s contract for Africa’s largest PV system

The Terex CRH1316

African Review of Business and Technology - September 2013

New Terex HSI plant with unique crusher discharge design

www.africanreview.com

bauma AfricaCONSTRUCTION

Terex Minerals Processing Systems (Terex MPS) has expanded its CRSeries portable plant line with the addition of the Terex CRH1316horizontal shaft impact crushing plant. This large capacity, highlyportable, electric plant features a large undercrusher vibrating panfeeder to accept the high velocity crusher discharge material and conveyit to the straight-line product conveyor. This unique design eliminatesimpact damage to the conveyor belt and, maintains maximum belttension to prevent slippage, while providing a very large dischargeopening to prevent blockages. This new plant also offers a variety ofoptions including a self-cleaning magnet, electrical panel with hydrauliclift, hinged hopper extensions and hydraulic run-on jacks. To complement

the CRH1316, Terex MPS has also released the new CRC380X andCRC450X cone plants and the CRS6203V screen plant. These units canmatch up with the impactor plant to create a large capacity closedcircuit crushing and screening system without the need of additionalinterplant conveyors.Ed Sauser, product manager at Terex Minerals Processing Systems, stated,“This new plant addresses the issue of handling the high velocity dischargefrom impact style crushers. As with all of our new CR Series portableplants, it was developed with input from numerous customers. Our plantsinclude many design features that simplify maintenance and allow plantsto be mated and configured to meet various customer needs.”

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“South Africa is a market with a futurewhich offers great potential for the

construction machinery industry. MesseMünchen has demonstrated a high level ofexpertise in the sector, through theorganisation of construction machinerytrade fairs not only at its base in Munichbut also abroad. For this reason, too, thefeedback from the industry regarding sucha sector event has been very positive,” saidEugen Egetenmeir, managing director ofMesse München GmbH, which is organisingbauma Africa.

The allocation of space and expectation ofvisitors for the show has already beenupgraded twice, and will now cover 50,000square metres, playing host to more than400 exhibitors. It will certainly be anexciting start for the event, and promises tobe an excellent chance for companies fromall over the world to show Africa what theyhave to offer.Spiroll will be exhibiting at the show, andlooking to meet potential customers fromall over Africa. With our machines alreadyrunning for a number of years in South

Africa, there is no reason to suggest thatinvestors cannot produce hollowcore withlasting success across the continent. Visitorswill be able to see the company at H3 359.Representing Spiroll will be managingdirector Stephen Carr. He will be joined onthe stand by Coreslab, the company’s SouthAfrican partner, which is making a greatsuccess of producing hollowcore withSpiroll machinery. Also co-exhibiting will beApollo Infratech, partners to Spiroll in Indiaand manufacturers of concreteconstruction equipment.

98

South African company ELB Equipment (ELB), a supplier ofearthmoving, construction, mining and quarrying equipment, isgeared up to exhibit its range of equipment at the first baumaAfrica exhibition to be held at Gallagher Estate near Johannesburgin September.As an acknowledged market leader in its sector, ELB will beshowing world-renowned brands such as Sumitomo, Kawasaki,Powerscreen, Terex, Furukawa, Ditch Witch and Dressta, to name afew, at this prestigious event. Arranged by Messer MűnchenInternational, well known for organising the bauma Exhibitions inGermany, India, China and now, South Africa, visitors can beassured this exhibition will be a world-class event.Visitors to ELB’s stand can look forward to seeing first-hand somenew models of equipment. These include the new Terex TLB890backhoe loader, the Mustang 2056 skid-steer loader, the TelestackTS542 radial telescopic conveyor, the Powerscreen XH320X impactcrusher and Warrior 800 mobile screen. The Dressta TD-25E extracrawler dozer, introduced last year by ELB to South Africa, will alsobe on display.“As one of a few South African companies offering such a broadrange of equipment and top brands, we constantly tracktechnological developments and market trends worldwide tosource products, that are suited to, or can be modified to suitSouth African conditions, and will assist our client base in

significantly adding value and optimising the productivity of theiroperations,” said Desmond van Heerden, divisional director of ELB.

Designed to meet market needs“bauma Africa provides us with the ideal platform from which toshowcase these products, demonstrating our commitment toalways staying ahead of the market in bringing the latestdevelopments to our customer base.“ELB Equipment’s staff and its overseas principals will be on thestand (outdoor stand numbers D.36 and D.40), and we lookforward to meeting and discussing, first hand, our products withvisitors,“ noted van Heerden.ELB Equipment represents a number of world-renownedmanufacturers whose products are designed to meet the strictemission and safety control regulations that apply to theindustrialised first-world countries. Offering industry a wideselection of equipment for construction, earthmoving, mining,quarrying and recycling equipment, ELB Equipment is based inBoksburg, South Africa and has branches in South Africa in Brits,Cape Town, Durban, East London, George, Kathu, Kimberley andWolmaransstad, as well as a well-established dealer networkthroughout South Africa. In southern Africa ELB have dealers inBotswana, Lesotho, Mozambique, Namibia, Swaziland, Zimbabweand Zambia (including the DRC).

Spiroll set for bauma Africa showcase

African Review of Business and Technology - September 2013

ELB to launch exciting new products at bauma Africa

www.africanreview.com

The intralogistics professional Beumer has expanded its product portfolio with the rotatingfilling machine Beumer fillpac R. This machine, designed for capacities of 300 to 6,000 bags perhour, can fill all types of valve bags. The complementary bag placing technology for all commonbag types rounds out the product portfolio. The weight accuracy of the bags is guaranteed by acalibratable weighing unit.Together with a special bag placer, the Beumer fillpac R can fill even woven polypropylene bags.The three-position cylinder that regulates the coarse and fine flow is protected from dust,because it is positioned vertically and outside of the dirty area. The cylinder for bag dischargingis also located in the dust-free zone above the filling spout.

Filling all types of bags

The Beumer system is also equipped with an ergonomiccontrol panel

bauma AfricaCONSTRUCTION

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LOWER COST PER TON

The new Cat® Wheel Loader 986H:

A new solution for load & carry tasks and to load on- and off-highway trucks, the 986H is a perfect option between the 980H and 988H. The 986H is engineered to deliver durable performance at a low cost per ton:

• Increase operator productivity right away with easy-to-use, intuitive operator interface

• Get maximum uptime with our field proven lift arms that provide excellent visibility to the work area through a Z-bar design

• Move more with a safe and spacious operator station• Make more with highly durable structures that achieve multiple life

cycles and withstand the toughest loading conditions

For more information contact your local Cat dealer.

© 2013 Caterpillar • All Rights Reserved

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

980H 986H 988H

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Sullair has announced that it has launched HPL 1500, a newlubricant that aims to meet the rising demands of higher

pressure portable air compressors. The company is a manufacturer of portable air power compressors,contractors' air tools, stationary air power compressors, compressedair treatment equipment and vacuum systems.HPL 1500 is suitable for high pressure rotary screw portablecompressors, which are used in applications such as down-the-holepercussive hammer; deep water well and geothermal drilling;pipeline testing; oil and gas well servicing; sandblasting; rockdrilling; and pile driving, the company said. Sullair’s new lubricant product uses processed synthetichydrocarbon fluid, which enables easier cold weather startingand faster warm up.HPL 1500 can withstand temperatures from -20°F to 125°F, whileproviding protection.The new HPL 1500 lubricant has taken two years to develop andtest, according to Sullair.

100

PMSA has put significant preparation into itsoutdoor and indoor 300-square metreexhibition space to accommodate its newproducts.PMSA marketing and sales manager QuintinBooysen said, “The outdoor stand has beendesigned to be a demonstration area toshowcase the capabilities of acomprehensive range of PMSA machinery,including; the Fiori self loading concretebatching vehicle, the automated RE600concrete brick and block making machines,in addition to a wide range of HTC floorgrinding and polishing machinery andaccessories with live polishing and grindingdemonstration. PMSA will also host all of itsinternational suppliers at its indoor stand, inorder to provide expert advice and insightto visiting guests.”This year’s event will bring together morethan 500 exhibitors and 15,000 visitors tothe Gallagher Convention Centre.“bauma is globally recognised as a premierconstruction show, and by hosting theevent in South Africa, it provides localaudiences with the opportunity toexperience the new technical offerings andproducts from companies that wouldtraditionally be out of reach, due to the factthat the event in Germany is costly to travelto for most companies based in Africa,”Booysen said.

PMSA manufactures and delivers equipmentwhich represents several European concreteequipment manufacturers to complementthe company's own concrete equipmentportfolio, Booysen said."Equipment that is manufactured in Europeto the highest standards has been selectedby PMSA to suit the harsh African climateand terrain. This equipment is backed upwith dedicated after-sales and technicalsupport, which has made PMSA a tried-and-

trusted name in the industry.”Booysen noted that the African concreteindustry is being affected by the skillsshortage, adding that more trainingprogrammes need to be rolled in theconstruction sector, in order to increaseexpertise of staff in the industry. "The skills shortage is prevalent across theindustry and continent, and PMSA iscommitted to providing in-house trainingand technical support that willmakeemployees a more valuable asset to thecompany," added Booysen.PMSA sales and marketing manager said itexpects that there will be a significant rise indemand for PMSA’s concrete equipment andtechnology throughout sub-Saharan Africa,as trade and investment rises across Africa. “PMSA prides itself on assisting itscustomers in being successful in everyaspect of their business, by consistentlydelivering on its promises. With strongeconomic growth forecast for Sub-SaharanAfrica in particular, PMSA plans to be at thegrassroots of that development bysupplying all associated concreteequipment, technology and solutions to thevarious projects through the PMSA Group ofCompanies,” he concluded.PMSA will exhibit its product offering atstands D 26 and H5 111 during the entireduration of the bauma Africa Trade Fair.

Quintin Booysen, PMSA marketing and sales manager

The new lubricant aims to meet the demands of higher

pressure portable air compressors.

African Review of Business and Technology - September 2013 www.africanreview.com

PMSA to showcase new technology at bauma

bauma AfricaCONSTRUCTION

The new HPL 1500 lubricant hastaken two years to develop and test”

Sullair launches air compressor solution

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CONSTRUCTION

102 African Review of Business and Technology - September 2013 www.africanreview.com

If you’re at all involved in themining, quarrying, recycling,contracting, metal working andadvanced material technologyindustries, then you willundoubtedly already have heard ofthis highly reputable brand.Sandvik is an innovative, high-technology engineering groupspanning an impressive 130countries, and known for its state-of-the-art equipment. The Miningand Construction division of thecompany accounts forapproximately one third of theentire Sandvik Group, and covers abroad range of fields, includingdemolition, excavation, road-building, recycling, quarrying andtunnelling. The company has anextremely well-earned reputationas a favoured supplier ofmachinery to the mining industry,within South Africa and overseas.Pilot Crushtec Internationaldistributes Sandvik mobilecrushing and screeningequipment, and is responsible for

stocking and introducing a vastrange of products to apredominantly South Africanaudience. Thus far, Sandvikmachines have been extremelywell received, both within SA andin neighbouring countries as well.Sales have exceeded the R60mn(US$6mn) mark and theequipment has been employed fora wide range of applications, eachtime, with positive feedback fromsatisfied consumersSome of the industries employingSandvik equipment include alluvialdiamond mining, civil engineering,coal and copper mining andbuilding and construction.Sandvik may provide themachinery, but Pilot Crushtecprovides the service and together,the two are an unstoppable force.Pilot Crushtec International isdedicated to assisting consumerswith every aspect of theirmachinery, from installation toafter-sales service, maintenanceand repairs.

Scale modelling of Sennebogen’sbalancer machine

Pilot Crushtec and Sandvik

Sennebogen has always seen itself asan innovation leader and is always

looking for new product developments.With its first balancer material handlingmachine, the 8130 EQ, Sennebogen haslaunched a machine that impresses inevery respect. The latest productdevelopment from Sennebogen isconsistently balanced in any situation andguarantees minimal energy and runningcosts in daily use.For both the show case and desk, thecompany has prepared a 1:50 scalemodel of the machine for the exhibition.Fully functional and balanced, the scalemodel can be moved completely,including the counterweight.Like the original, the 8130 EQ is alwaysbalanced thanks to an adjustable counterweight and the centre ofgravity stays in the middle. Due to this equilibrium concept, themachine stays constantly balanced. Two versions of the undercarriage,on tracks or as a stationary solution, offer variety.The reproduction of the maXcab industry cabin has now also beenused for the first time on a scale model. In addition to the longequipment including the clamshell, the elaborate uppercarriage isrotatably seated on a 15cm-high pylon. A climb leads up to the walk-inpower pack that provides a view into the engine compartment.

The Sennebogen 8130 EQ comes inattractive packaging and isdelivered in completely assembledand user-friendly form

bauma Africa

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Trimble offers the Loadrite X2350Payload Management System for

excavators, a dynamic onboardweighing system to optimise bucketloads, track load out tonnage, andmonitor cycle times. Now availablethrough the Sitech Technology dealernetwork, the Trimble Loadrite X2350system expands Trimble's heavy civilconstruction portfolio to includeaccurate, measured payload data fromexcavators, helping contractorsmaximise productivity with less rework.

Managing materials more efficientlyThe Trimble Loadrite X2350 Systemimproves excavator productivity byefficiently weighing the material in thebucket and displaying the payloadinformation on an easy-to-read indicatorin the cab. The system can improveoperational efficiencies for manyexcavator loading applications,including mass earthworks, remote sandpit load out, quarry and mining.The X2350 helps keep the entireearthworks excavation loadoutoperation running at capacity and caneliminate the cost of additionalmachines and trucks to support theexcavator. On a typical loadout project, acontractor can save thousands of dollarsjust by eliminating one wheel loader orone truck to haul material away.Without the Loadrite system, anexcavator operator must gauge themaximum load on a truck based onexperience and feedback from theweigh bridge (truck scale) at the finaldestination; however, at that point it istoo late to prevent an overload ticket orwasted fuel, time, and truck capacitydue to an under-loaded truck. Using theTrimble LOADRITE X2350 system tooptimise payload at the excavatorreduces the risk of double handlingmaterials and turnarounds at the truckweigh station due to over or under-loading. It can also reduce costly finesfor overloading haul trucks andunnecessary under-loaded truck cyclesthat waste fuel and time.

104

A hitch-free work process is particularlyimportant in order to ensure quality andcost-efficiency in road construction. All worksteps must be perfectly coordinated. For thisreason, Joseph Vögele AG produces not onlyindividual technologies, but also completesystems which follow logically one from theother: material management, machineoperation, feeding the paver with mix,machine and screed technology, andprocess management all form a single unitin Vögele's quality philosophy.

Vögele feeder technologyUninterrupted asphalt paving is based on the material management of the VögelePowerFeeder. High daily laydown rates with outstanding quality can only be realised inthis way. Vögele's attention focuses particularly on ensuring that the mix is transferred tothe paver with absolute precision and reliability, and without contact.Automatic distance control helps the paver operator to concentrate entirely on thetransfer of mix. Additional safety is assured by the collision protection system: if there isany risk of a collision, the paver following behind the feeder is automatically stopped anda potential collision prevented.Special technical solutions have been developed to prevent segregation of the mix as it isbeing transferred to the paver's material hopper. Conical worm conveyors in thereceiving hopper of the feeder and the trough-shaped belt conveyor serve tohomogenize the mix.

Transfer of the mix with "PaveDock Assistant" and "PaveDock""PaveDock Assistant" and "PaveDock" push-rollers from VÖGELE make a perfectcombination, ensuring maximum process safety when transferring mix in roadconstruction projects without feeder. "PaveDock Assistant" is a simple and reliablecommunication system permitting optimum coordination between paver operator andfeed vehicle driver. The signal lights mounted on the right and left of the paver's hardtopand the associated controls on the paver operator's ErgoPlus 3 console are key elements.The sprung "PaveDock" push-rollers efficiently absorb any jolts produced as the feedvehicle docks on.

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African Review of Business and Technology - September 2013

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S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:00 Page 104

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S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:01 Page 105

The advantages of pontoons for the dewatering of open pitoperations have become apparent to a number of minesthroughout Africa. This increased awareness is a result of the

efforts of Weir Minerals Africa, which has highlighted the many costand efficiency benefits of this technology to the local market.

Howard Jones, Weir Minerals Africa’s rental and submersiblemanager, said, “This is in line with the growth of our entiredewatering division and underlines the popularity of African-engineered technology.”

Weir Minerals Africa’s design centre, one of three design centreswithin the global Weir Group, has customised the design of pontoonsproduced by its Australian counterparts to suit African conditions.

“There is an unprecedented need for more cost-effective andoperationally efficient dewatering solutions in the African miningindustry,” Jones added. He added that conventional dewateringsolutions are less effective and require expensive civil works, whereaspontoons are installed at the source, making pumping more efficient.Another major advantage is being able to migrate the pump whereverit is needed, compared to the alternative, in which a new pump stationwould have to be developed.

Built to endureIn its approach to the design, Weir Minerals Africa has factored in theharsh conditions found on mine sites. “Pump pontoons not only needto be impervious to corrosion, but also need to be stable and rigid.During the re-engineering of specific pontoons for the African market,we simultaneously broadened the product offering for use in otherregions such as Russia, South America and Australia,” says Ian Farquhar,Weir Minerals Africa dewatering manager.

Farquhar points out that in addition to extensive input from itsmechanical engineers, the company seconded the services ofstructural engineers to ensure the structural integrity of the pontoons.

Construction materials vary from complete steel pontoon barges tolinear low density polyethylene flotation devices with steel frames forlighter applications, where mobility from one pond to another isrequired. The designs can handle most Weir Minerals pump offerings,with a load bearing capacity from 500 kg to 10 tonnes, including thestructure. The floating walkway holds the cable and piping from the

docking station to the shore and provides ready access to the pumps.Jones says that while the majority of the pontoons used in Africa are

medium-sized units, Weir Minerals Africa has the ability to produceunits for larger applications which can include workshops andsleeping quarters for personnel.

“Our pontoons range up to 10 metres in length and five metresin width. In addition, our engineered solutions can accommodateextended walkways. Our larger barges can cater for large ponds,dams and alluvial sea applications, as well as situations whereharbours or tailings dams require desilting,” says Jones.

In addition to their use in open pit dewatering, the pontoons aresuitable for dewatering applications in which migration of containmentponds takes place in line with rainfall, or for alluvial applications. Thelarge pontoon can also be used in acid mine drainage (AMD)applications for dewatering underground shafts. Diesel driven self-priming pumps, installed on lightweight pontoons, are used for desiltingsettling tanks and dams in the platinum and iron ore industries.

Time frame is criticalLongevity and durability are important factors in the selection of apontoon for Weir Minerals Africa.

“We are continually innovating to provide solutions for our customers’changing needs, thus ensuring the growth and sustainability of ourpontoons business. We are currently engineering a product for thedesilting of small craft harbours, as well as assisting in the desilting ofmajor ports,” Farquhar concludes. ■

PontoonsMINING

106

Custom-made pontoonsfor easy accessibilityWeir Minerals Africa provides a cost-effective solution for dewatering atopen pits

A Multiflo trailer mounted dieseldriven Warman DWU pump set

African Review of Business and Technology - September 2013 www.africanreview.com

Longevity and durability are important factors in the selection of a

pontoon; the initial construction of thepontoon obviously plays a critical role

S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:01 Page 106

MININGExcavation

107

Trommels take it all

African Review of Business and Technology - September 2013www.africanreview.com

Specialised equipment supplierMultotec is a leading manufacturer oftrommel screens to the global mining

industry, having supplied these products tomining operations around the world for thepast two decades, including many remoteareas.

“We’ve literally supplied our trommels toall four corners of the earth,” Anthony Yell,Multotec screening product manager, says.“What differentiates us in the marketplace isthat we review each application and harnessFinite Element Analysis (FEA) to design ourtrommels for a fatigue life of five years. Butthe reality is that, provided customersmaintain the polyurethane or rubber liningsin good condition, our trommels can lastwell in excess of this period.

“These trommel frames are not throwawayitems - they are designed to last for years incustomer specific applications and duties,and we’ve been able to establish a strongtrack record of longstanding units in thefield, because FEA allows us to design to suitspecific operating conditions accurately. Ourframes comply with the industry standard BS7608:1993, which focuses on fatigue designand assessment of steel structures, and aredesigned to function below these maximumstress levels to optimise fatigue life.

“Increasingly mines are commissioningsingle stream plants to reduce capital costs.The downside of this is that equipmentneeds to be very reliable and run for periodsof 12 to 14 weeks without stopping. Mills areincreasing in size and tonnages are climbingto achieve higher throughputs and to reduceoperating costs, especially in the coppersector. This makes it critical to correctlymanage peripheral speed and installtrommel panels that can go the distance forthese extended operating periods.”

Earlier this year, the company supplied itssingle biggest trommel order — two 52 tonself-driven trommel screens to a mineralsands project in Senegal, West Africa. Theseself-driven trommel screens have insidediameters of 3 365 mm and are 16 544 mmin length. Each unit is capable of handling 4375 tons per hour of solids feed, or 12 888cubic metres per hour of pulp. And acompany in Saudi Arabia processing materialwith a low pH level recently orderedtrommels comprising a combination ofheavy duty wedgewire and laser cut wear

resistant steel panels to screen out thematerial. Butyl rubber lining was alsoselected to handle the highly corrosiveenvironment.

“The diversity of these orders proves thatMultotec is able to respond to a spectrum ofspecific customer requirements by designingpurpose-built trommels in the most costeffective and efficient manner,” says Yell. ■

The self-driven trommel screens supplied by Multotec to amineral sands project in West Africa have inside diameters

of 3 365 mm and are 16 544mm in length

S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:01 Page 107

P&H Mining, part of Joy Global, is theworld’s largest manufacturer of above-ground mining equipment. Its electric

rope shovels, with capacity up to 90.8 tonnes,are used for high production loading insurface mines; its draglines have bucketcapacities to 122 cubic metres.

P&H also produces blasthole drills, mobilemining crushers and other mining equipment.The company does business on everycontinent, except Antartica. In Africa, supportis provided from Johannesburg, South Africa.

Economic factorsDue to the global demands for metals andpower, mines are required to operate at fullcapacity. Mine operations cannot afford anycritical assets to shutdown unexpectedly;downtime for a single shovel can be as muchas US$500,000 per hour.

Electric rope shovels are one of the mostcritical assets in open pit mining. They arevery large, complex machines with DC or ACmotors, multiple reduction gearboxes andmultiple large rolling element bearings. Thiscomplexity, combined with the tough 24/7

service, results in too much unplanned shoveldowntime, which can affect the entiredownstream process.

Monitor or wait for shutdown?Some mining equipment manufacturers andmining companies do not monitor themechanical health of their shovels, choosinginstead to wait for scheduled shutdownperiods. P&H chooses to monitor the healthof shovels on a regular basis, using vibrationanalysis. For some time, progressive minesand P&H did this using portable monitoringequipment, but recently they have begun todo it automatically. This article will go overvibration monitoring and explain how P&H isnow using it to maximise uptime and preventunexpected equipment failures.

Why vibration monitoring is usefulA mining shovel is difficult to monitorbecause of its mechanical complexity. For thisreason, vibration analysis tends to be the besttechnology to determine its health. Vibrationsensors can be attached at the bearinglocations on the shovel’s complex gearboxes

and motors, either for the duration of the testor put in place permanently. Analysis of thesignals from the sensors can identifylubrication issues, early bearing defects, earlysigns of gear defects, alignment issues,structural issues, manufacturing defects andmore. With early detection of developingproblems, maintenance actions can beplanned with minimal productioninterruptions, and minor issues can becorrected before they become major faults.And if the analysis indicates that a majorcomponent will soon need replacement,there is enough time to make plans and orderthe replacement before a failure occurs.

However, an electric rope shovel is not aneasy application for vibration analysis. Theshovels are variable-speed systems with shortcycle times, complex gearing arrangementsand high background vibration levels — not tomention that they tend to be located in someof the most remote places on the planet.

First application of vibration monitoringP&H Mining Equipment was the first shovelmanufacturer to successfully apply predictive

ShovelsMINING

108

Monitoring electricshovels onlineTechnological advances make operational analysis in mining much easierand less expensive

P&H Mining’s electric rope shovels havecapacities up to 100 tons and are used for high

production loading in surface mines.

African Review of Business and Technology - September 2013 www.africanreview.com

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 23/08/2013 11:31 Page 108

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S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 109

ShovelsMINING

110

technologies and services to its electric ropeshovels and other mining assets. Thisinvolved not only portable vibration analysisbut also infrared examination, lubricating oilanalysis and ultrasonic testing.

From these service offerings grew the P&HMinePro service organisation. For the portablevibration analysis, MinePro used technologyfrom Emerson Process Management’s CSIPortable Technologies and Machinery HealthManagement (MHM) business, includingPeakVue analysis software.

This is designed to pick out and identify thehigh-frequency components of a vibrationsignal, which provide early indications ofdeveloping bearing faults. These include innerand outer race defects, ball defects, lubricationproblems and any type of “impacting” fault,where metal is contacting metal. PeakVue alsoprovides early failure warning of thoseexpensive gearbox components.

Vibration sensors are moved from point topoint on various parts of the shovel andconnected by portable data-gatheringequipment; during which the shovel is thenoperated through a consistent sequence ofmotions of the swing, hoist and crowdsystems. This is done about once a month,and involves taking the shovel out ofproduction for two to four hours while it goesthrough simulated operation.

Advantages of the automated approachA shutdown can cost up to a million USdollars. In addition, sending personnel tomonitor the working parts of the shovel,which must be in motion during many partsof the data acquisition, raises safety concerns.For example, a common test procedureinvolves making the shovel rotate in a circlefor 20 minutes with two extra people onboard to do the monitoring.

On top of this, simply planning for thatmonthly outage can be a Herculean task,requiring coordination among productiondepartment, maintenance department, the on-site safety manager and specialised personnelwhere needed. It is not unusual to have to waittwo weeks to get a shutdown scheduled.

If a vibration monitoring system could bepermanently mounted to the shovel andoperate automatically it could gatherinformation as the shovel is operating, withno shutdown. And it would not need to bescheduled in advance or coordinated with theproduction department.

Checking out online monitoringTo evaluate, P&H MinePro selected Emersonto put a vibration monitoring system on one

of their 4100XPC shovels used at ChileanCopper Corporation (Codelco)’s RadomiroTomic copper and molybdenum mine,located at an elevation of about 3,048metres in the Atacama desert in northernChile. This involved a CSI 6500 MachineryHealth Monitor that would continuouslymonitor the health of the shovel’s swingand hoist systems. Depending on userpreference and the availability of resources,the data can be analysed on site or sent viasatellite to P&H headquarters.

The online vibration monitoring systems onP&H’s Centurion controlled shovels isintegrated to the shovel’s PreVail RemoteMonitoring System to send vibrationinformation directly to P&H headquarters. Ashovel will generally have one or two CSI6500 systems, one handling 24 channels andthe other 48 channels, to monitor hoist,crowd and swing systems; a dragline mayhave as many as eight. Emerson’s AMSMachinery Manager is also installed on-boardthe shovel. Accelerometers (the sensor of

The online vibrationmonitoring systems on

P&H’s Centurioncontrolled shovels is

integrated to sendvibration information

directly to P&Hheadquarters

African Review of Business and Technology - September 2013 www.africanreview.com

P&H draglines have bucket capacities to 160 cubic yards (122 cubic metres) A failed gear can be detected through vibration analysis

Accelerometres are mounted to bearing locations on the shovel.

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 110

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ShovelsMINING

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choice) are mounted to bearing locations onthe shovel. Data is collected under the sameconditions for both trending and analysis.

PeakVue is a measurement technique thatdetects and analyses stress waves usingpeak value analysis. It allows for earlydetection of bearing and gear defects byfiltering out background and non-repetitive

vibration to produce repeatable andtrendable data. The vibration levels ingearboxes and motors vary with speed anddirection. So in order to get meaningfuldata, it is necessary to measure when theshovel is making particular movements atparticular speeds. For the CSI 6500 this issimply a matter of setting the equipment towatch for those conditions to occur and onlythen take data. This may mean that, out ofperhaps 300 cycles that a shovel completesin one eight-hour shift, only three will meetthe criteria for gathering data, but that ismore than enough — especially comparedto the previous once-a-month regime.

Staged testingA stage test PreVail is done per shift; thesystem then operates the swing, crowd andhoist systems in a pre-set pattern longenough for a test. This is generally done

during idle time, so it takes no productiontime. When data collection is complete thesystem informs the operator.

Proof of Concept Test – Phase 1 ResultsOn the first automatic vibration monitoringinstallation the system was able to triggerand collect data both during staged test andduring digging operations. Repeatable datawas collected at 1000 Hz/3200 LOR (lines ofresolution) each cycle during dipper latching.The data was found to be repeatable.

African Review of Business and Technology - September 2013 www.africanreview.com

Basics of vibration analysisJust as we subconsciously compare theway our cars sound and feel to a baseline,and an experienced mechanic can oftentell what is wrong with a vehicle just bydriving it, a form of listening can apply toindustrial machinery.

Most industrial equipment has numeroussources of vibration. These can includeimbalance, in which the centre of mass is notthe centre of rotation; mis-alignment, in whichtwo masses spin on coupled axes that are notcollinear; bearing failure, which can occur inboth rolling element and sleeve bearings;gear vibration, often caused by tooth damage;structural resonance or looseness; influencesfrom the process itself, electrical influence,and many more.

Measuring VibrationVibration, as the movement of an object, canbe measured in three ways: displacement,velocity or acceleration, and there aresensors for each. Displacement probesactually monitor shaft motion, and are thepreferred probes for monitoring the sleevebearings used in turbines. These are also themost difficult type to install, and usually themost expensive.

Velocity probes are self-powered, and aretypically seen on large steam turbines for“absolute vibration” measurement. They’renot commonly used any more due to theirsize and cost to manufacture.

Accelerometers are the most commonsensor type used for industrial rolling elementbearing applications. Newer devices markedas “Velometers” are actually accelerometerswith integration circuitry built in.

Types of Vibration DataThe simplest way to perform vibrationanalysis is to measure its overall level,generally without regard to frequency. Thisis commonly done using overall monitoringinstruments (vibration pens), vibration tripsystems, online vibration protectionsystems and vibration transmitters with 4-20 mA output. Overall vibration monitoringis easy to use; it gives an empiricalindication of overall condition and canprovide a good indication of the overallhealth of the machine as well as provideinsight into process issues. On the otherhand, as it is insensitive to frequency it isunable to isolate background vibration oridentify specific sources of vibration. Ingeneral, it gives the analyst an overall viewof the machine condition but it is difficult todiagnose specific machinery faults usingoverall data and it may only assist indetecting faults in late stages.

Parameter Banding, Alarms and TrendingBy breaking the frequency spectrum ofvibration into different bands, then taking thefrequency ranges separately and trending andassigning an alarm level to each, it is generallypossible to localise a particular vibrationsignal to a particular source. A commonpractice is to choose narrow bands, eachcentred on a harmonic of some fundamentalsystem frequency like shaft rpm. As analternative, each band can be centred on afrequency characteristic of a certaincomponent. On a rolling-element bearing, forexample, the frequencies of vibration thatwould be produced by various types ofdamage — to the outer race, inner race,

rolling-elements or cage — can be calculatedin advance from the characteristics of thebearing. During analysis the frequency bandassociated with each can be monitored andtrended over time. This method providesbetter picture of the overall health of theequipment; the trending gives an indicationof problem severity and time to repair: anincreasing trend is easy to understand. On theother hand, it still does not fully identify faultsand can be misleading. Therefore, other more“advanced” analysis techniques (beyond thescope of this sidebar), may be required.

Spectral AnalysisSpectral Analysis involves displaying thereceived data in the frequency domain,which is obtained by Fast Fourier Transform(FFT) applied to the time-domain data. Thismethod can identify faults withconsiderable precision and determine faultseverity, but it is time-consuming (requiringthe calculation of four expected frequenciesfor each rolling-element bearing, plusadditional calculations for gears), and itrequires special training and experience.

A balance of technologyAll the methods described are useful inmachine maintenance. Arguably the bestapproach is to first establish a baseline on allequipment using spectral analysis; then useparameter banding and trending as ascreening tool to identify areas that will needadditional attention. Finally, detailed analysisshould be performed only on equipmentwith alarms or increasing trends. Thesimplest method, overall vibration, can beused as a trip setting.

Vibration, as themovement of an object,

can be measured in threeways: displacement,

velocity or acceleration

Wireless data is downloaded in a pickup truck on-site,which will take it back to the shop for analysis

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 112

PaybackThe installed cost of a CSI 6500-basedmonitoring system for a typical mining shovelis on the order of US$200,000 to US$250,000,which is recovered when the first hour ofunplanned downtime is prevented. Of coursethis depends on the material (ore and orequality) being mined.

ResultsResults have been good. Data is nowcollected more often than daily, with nooutage needed, meaning no revenue lost.

Future plansPlans call for the vibration monitoringequipment to download its data wirelesslyto a pickup truck parked nearby, which willthen take the data back to the shop foranalysis. And that can happen via PreVail

shipping the information back via satellite.Wireless communication systems continueto improve in the mining pit and will soonremove the pickup truck from the process,sending the data directly to themaintenance engineer’s desk. No user hasyet reached the point that it will allow the

vibration analysis to automatically trigger arepair order, insisting that an analyst toreview it first. While artificial intelligence isprogressing, nobody is yet ready to allowthe equipment to make a decision that willinvolve shutting a machine down withouthaving a human in the loop. ■

MININGShovels

113African Review of Business and Technology - September 2013

Vibration measurements on a shaft with rolling-element bearings. The top chart, in the frequency domain showsvibration peaks at the harmonics of the frequency at which the rolling elements pass any particular spot on thebearing’s outer race. These indicate that there is a defect on the outer race of the bearing, and it will soon fail

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Nobody is ready to allow equipment to make a

decision that will involveshutting down without

human interference

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 113

Redpath Mining South Africa managingdirector Ockert Douglas has beenpersonally undertaking a series of

roadshows at all of the company's seven sitesand projects in Africa, in order to promote theimportance of safety in the workplace tomore than 600 employees.

“Safety is a core value of our business andthe Fatality Prevention Programme contributestowards a sustainable future for the currentand future employees of our business, and thisinitiative is fully endorsed by my managementteam and I," he explained.

Douglas gave a presentation on theRedpath Fatality Prevention Programme inMay 2013 to more than 100 workers at theGhaghoo diamond mine in Botswana, wherethe company is currently in the process ofcompleting the construction of a R67-million(US$6.5mn) sand tunnel at an inclination of 8°to a vertical depth of 87m below surface.

Here, he highlighted the main objectives of

the Programme, which includes; commitmentfrom leaders to implement the Programme;to engage all employees in the process offatality prevention; and to ensure universal

compliance with Redpath’s Cardinal Rulesand Fatal Risk Elimination Protocols.

"The Fatality Prevention Programme ismultifaceted, and has been developed towork with, and enhance existing safetysystems. Fatality prevention components arenow prominently embedded within several ofour existing safety systems, along with anumber of new tools," says Douglas.

Despite the fact that Redpath alreadyboasts a comprehensive Safety Programme,Douglas points out that industry wide,occupational fatality rates have in fact risenafter more than a decade of downward trend."In recent history, we have seen a steadydecline in the number of injuries, but simplylooking at the falling injury rates as way ofmeasuring safety performance is deceiving."

Douglas reveals that a low or decreasinginjury rate does not guarantee that fatal risksare being adequately managed. "A moreformal and standardised global programme

SafetyMINING

114

Engaging employees inprocesses for preventionContract mining firm continues to stress worker safety through the officialroll-out of a 'Fatality Prevention Programme' at sites and projects across thecontinent

African Review of Business and Technology - September 2013 www.africanreview.com

Redpath Mining South AfricaMD Ockert Douglas

Redpath Mining South Africa continues toplace a strong emphasis on worker safety

S20 ATR Sep 2013 Report ID IE Mining_Layout 1 23/08/2013 11:35 Page 114

S20 ATR Sep 2013 Report ID IE Mining_Layout 1 22/08/2013 18:31 Page 115

SafetyMINING

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refines our fatality prevention efforts and willimprove results, with the ultimate goal beingthe elimination of fatal risks and fatalities inthe workplace."

Bearing this in mind, the Redpath FatalityPrevention Programme has developed thefollowing protocol of ten 'Cardinal Rules'that should be adhered to by all employeesat all times:● Never move or operate machinery or

equipment without the appropriatetraining and authorisation.

● Never tamper with, or make a safetydevice inoperable.

● Always correctly isolate equipment from allenergy sources before working on it.

● Never remove another person’s personalunderground access tag or personal lock.

● Never enter an area that has accessprohibiting barricades or signs withoutauthorisation.

● Never work or travel under unsupportedground or suspended loads.

● Never work at height above the site’sprescribed distance or within the site’sprescribed distance from open holeswithout suitable fall protection.

● Always comply with explosives, blastingand re-entry procedures.

● Never operate heavy equipment withinten metres of any pedestrian without firstestablishing and then maintainingpositive contact.

● Always park equipment securely so that itcannot move in an uncontrolled way.

Risk management protocolsDouglas indicates that the 'Fatal RiskElimination' protocol is the second majornew component of the Fatality PreventionProgramme.

"The idea of the protocols is to establish theminimum requirements for the managementof these fatal risks consistently across ourbusiness, and they have been developed towork in conjunction with local legislation or

other external requirements."If a breach of a Cardinal Rule is suspected

to have occurred with no resultant fatality,Douglas explained that the incident will befully investigated. "It is important tounderstand the causes behind violations, andthe reasons why people fail to meetperformance standards, from the outset."

Identifying the source of fatalitiesAccording to Douglas, the first step indetermining potentially fatal situations, is tofirst identify the types of work most prone tofatalities. From here, he states the importanceof identifying the employees most likely to beinvolved in a fatal or serious incident.

"New and temporary employees arealways at a greater risk, due to the fact thatthey are less likely to be familiar with thecompany’s safety procedures, and are lesslikely to be more closely supervised.Employees who work more hours oftentrade off the benefit of added productionwith fatigue and an increased likelihood ofincidents," he continued.

Douglas believes that job observations

are an effective tool to assess potentiallyfatal situations.

"Unplanned inspections and workplacevisits should be undertaken to observeworkers on the job. It is also of the utmostimportance to ensure quality over quantity,when observations are involved."

Fighting complacency and maintaininga sense of vulnerability is anotherimportant mindset for employees toadopt, added Douglas.

"Proactive close call reporting is key tofatality prevention, and an individual will notbe penalised, criticised or embarrassed forproactively reporting close calls."

Douglas concluded by adding thateverybody within the organisation has arole to play in the prevention of fatalities."Deviations or delays from the projectedschedule and performance, due to timespent making sure that the work is donesafely, are justified and supported byRedpath management. With this in mind, Ibelieve that we have the ability andexperience to conduct work withoutinjuries and fatalities in 2013." ■

African Review of Business and Technology - September 2013 www.africanreview.com

Zambian emeralds earn US$1.8mnZambia earned a total of US$1.89mn from theauctioning of emeralds conducted recently,the country’s mines minister, Christoper Yalumahas disclosed. Gemfields Plc, the 75 per centowners of Kagem Mining Limited, the country’sbiggest emeralds producer, recently held anauction of high grade emeralds, attracting 37foreign companies.’’The auction was amongst the most successfulauctions that the company has ever held,’’ theminister said. The company sold 583,448 caratsof rough stones at its first high-quality emerald

auction in the Zambian capital, ploughing inUS$31.5mn. The company realised an averageprice of US$54 per carat its highest in an auction.‘’As a country, we have also earned US$1.89mnin mineral royalty from this auction,’’ he noted.Earlier this year, the Zambian governmentdirected that all auctioning of emeralds minedin the country be held locally as their sale inforeign markets contributes to capital flight.Gemfield, which changed the venue to Lusakafor an auction which was initially earmarkedfor Singapore, was selling the green stones

from Kagem mine outside the country untilthe government directive was effected.‘’The results from this auction demonstrateZambia’s potential to becoming yet anothermarket where not only Kagem but othergemstone producers in the country canprofitably sell their products,’’ Yaluma said.Gemfields CEO Ian Harebottle said this recentauction underscored Lusaka as a key hub inthe international emerald trade.

Nawa Mutumweno

Douglas gave a presentation on theRedpath Fatality Prevention Programme

in May 2013 to more than 100 workers atthe Ghaghoo diamond mine in Botswana

S20 ATR Sep 2013 Report ID IE Mining_Layout 1 22/08/2013 18:31 Page 116

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S21 ATR Sep 2013 Report Solutions A B_Layout 1 22/08/2013 18:37 Page 117

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SOLUTIONS

Professional Development

The Murray & Roberts CementationTraining Academy carries the exclusive

distinction of being the only trainingfacility of its kind in South Africa that isISO 9001:2000, ISO 14001:2004 andOHSAS 18001:1999 certificated. It has alsobeen accredited by the MiningQualifications Authority, the country’sMining and Minerals Sector EducationTraining Authority, effectively licensingthe facility to provide training inengineering, mineral extraction,occupational health & safetyrepresentative skills and ABET.

With a current capacity intake of 450learners per day, the Training Academy hasplans to extend its services beyond Murray& Roberts Cementation employees, to theSouth African mining industry at large.The Academy also recently applied to theMQA for scope extension into the widerfield of occupational health & safety atNational Qualification (NQ) level 2 and 3.

“This is a world class mining contractingtraining facility,” Tony Pretorius, riskmanager at the Murray & RobertsCementation Training Academy, says. “Wehave all the necessary resources and

competencies to deliver world classtraining to industry personnel. Our rangeof capabilities in occupationally directededucation, training and developmentincludes ancillary soft skills programmes,basic engineering, conventional andtrackless mining and development,mining services and shaft sinking as wellas adult basic education and training anda host of other SHEQ-related programmes

“Our training methodology incorporatesa wide range of technology such as e-learning, conventional and miningservices mock-ups, trackless mechanisedsimulation, visual based training and massintegrated assessment based training.We’re also able to provide accommodationfor our trainees for the duration of theircourses.”

Based near Carletonville, South Africa,the Murray & Roberts CementationTraining Academy was established inNovember 2005, originally to provideemployees with company induction andspecial skills training. Over subsequentyears, and as a result of substantialinvestment into the facility, its offering hasexpanded and evolved to occupy a

foremost position in the mining trainingarena. In 2012, a multi-million randupgrade to the facility made it possible forthe training team to implementcomponents of the necessary skillstransfer across all stages of Murray &Roberts Cementation’s new shaft sinkingmethod. The new shaft sinking method,proven in the Canadian mining industry, isa complete move away from thetraditional South African approach toshaft sinking. All activities in the sinkingcycle are handled in line - no two jobs takeplace simultaneously.

At the Murray & Roberts CementationTraining Academy, each of the fourexisting six metre diameter training shaftshas been modified to replicate a specificphase of the new shaft sinking cycle. Thisensures that every team member actuallypractices the procedures repeatedly todevelop end user proficiency skills beforebeing deployed to a project site. Insupport of applied competency, alllearners undergo stringent assessment toensure skills programme exit leveloutcomes are met across foundational,reflexive and practical competency levels.

African Review of Business and Technology - September 2013 www.africanreview.com

A unique facility for aspirational miners

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EnvironmentA commitment to sustainable water infrastructureSubstantial investment and decades of international experiencehas placed global engineering consultancy firm SMEC as afrontrunner in ensuring the continued development and upgradeof water infrastructure in Africa. The international SMEC Groupwater division is undertaking projects worldwide to the value ofan estimated US$40mn, and SMEC general manager for water andenvironment, Pula Herath points out that the division boasts ageographical footprint across 13 countries in Africa."Water is a scarce resource worldwide, nowhere more so thanAfrica. To ensure that this precious commodity is efficientlymanaged on a local level, SMEC places a high priority onlocalisation. It is one of only a few international consultancies thathas established a permanent presence in Africa, thereby ensuringa better overall offering to the local market," he explained.Herath indicated that the SMEC water division specialises in threemain areas of water management, namely; water resources andcatchment management, conveyance and treatment."Water resources and catchment management involves planning,developing, distributing and managing the optimum use of waterresources, while conveyance involves the transport of water fromdams to facilities where water is treated, stored and distributedto consumers.”In South Africa, Herath noted that the SMEC water division hasundertaken the bulk of its work on water optimisation andrehabilitation."Although South Africa has a solid water infrastructure, wastageis a major concern, with up to 35 per cent of all water supply beingunaccounted for on a continuous basis."Herath explained that unaccounted for water is water that theauthority pays for, but does not generate revenue from."This can result from leakages or poor management strategies,and has a considerably negative environmental and financial impacton communities. As a result, SMEC is committed to assisting localauthorities in water delivery optimisation."Rehabilitation of water pipelines in Johannesburg and Soweto hasalso been a focus for SMEC, whereby the company identifies andrectifies leakages. With focus on dirty water treatment, Herathnotes that SMEC is currently in the process of developing a planfor upgrading the largest sewerage plant in Kenya. Looking furtherafield, the company is also currently involved in Australia’s threelargest desalination plants in Adelaide, Melbourne and Sydneyrespectively.With economic growth and investment in Africa is increasing at arapid rate, Herath believes that the private sector will play afundamental role in funding water infrastructure projects thatmany governments cannot afford, especially as the clean supplyof drinking water becomes a scarce and valuable resource asdemand increases.

"Private investment is essential in ensuring that Africaninfrastructure continues to develop towards international standards.Water management has become an integral aspect of everydaylife for both private citizens and businesses, and SMEC combinesits substantial water design and engineering capabilities to helpefficiently address the demand for sustainable long term watermanagement," he said.

SMEC general manager for water and environment, Pula Herath

African Review of Business and Technology - September 2013 www.africanreview.com

Water is a scarce resource worldwide, nowhere more so than

Africa. To ensure that this preciouscommodity is efficiently managed on alocal level, SMEC places a high priority

on localisation. It is one of only a fewinternational consultancies that hasestablished a permanent presence in

Africa, thereby ensuring a betteroverall offering to the local market.”

- SMEC general manager for water and environment, Pula Herath

S21 ATR Sep 2013 Report Solutions A B_Layout 1 22/08/2013 18:37 Page 120

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SOLUTIONS

Consultancy

Rope access specialist Skyriders and plant care engineeringconsulting expert Carab Tekniva have successfully completed

the inspection of a 210-metre high smoke stack and variousboiler pressure components at the Paiton power station inIndonesia. Skyriders specialises in providing rope accessinspection, non-destructive testing and work-at-heightmaintenance solutions to numerous industries, while CarabTekniva is a multi-faceted engineering software solution andservice provider that specialises in plant care and physical assetmanagement. The two South African-based companies haveundertaken inspection and maintenance work at the Paitonpower station through a joint partnership since 2004, andrecently completed the latest project on the smoke stack and the700 MW Unit 7 boiler.

International inspectionSkyriders marketing manager Mike Zinn believes that the twocompanies continue to be selected to undertake inspection workon international projects such as Paiton, due to the fact that theyoffer a world class service at highly competitive prices.

"Although similar services are provided by companies basedin Europe, North America and Australia, Skyriders and CarabTekniva provide the same internationally recognised andaccredited offering at a rate that is substantially lower than ourinternational competitors, without ever compromising on safety

or quality," he explains.Zinn noted that a team

of six rope accesstechnicians and boilerinspectors from Skyridersworked together with aboiler engineer andengineering technicianfrom Carab Tekniva toundertake inspections onthe wall blowers, waterwall tube, superheater,reheater tubes and screentubes, in addition to othermechanical componentslocated inside the boilersand the smoke stack.

"This was a highly demanding project that had to becompleted within ten days. Skyriders was responsible for allphysical inspection work, while Carab Tekniva captured andanalysed the data, before dictating the required scope of workand advising on a maintenance strategy. As a result of a strongworking relationship and mutual understanding between thetwo companies, the project was successfully completed withinthe specified timeframe," he said.

South African engineering continues to impress Indonesian energy operatives

African Review of Business and Technology - September 2013 www.africanreview.com

The smoke stack at Paiton power station

Paiton power station

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SOLUTIONS

ConsultancyCarab Tekniva boiler engineer Jan Hendrik Fourie, who acted

as project manager for the duration of the inspection process,indicates that the company's Boiler Health Care Programmesoftware solution was utilised to monitor the condition of theboiler components, and to proactively monitor the condition ofthe plant through trend analysis in order to implementmaintenance strategies.

"What's more, the solution also provides a legacy for futureengineers to build onto and to work from."

Explaining erosionFourie explains that the wear experienced in Indonesian boilersis mostly due to rubbing or fretting of tubes, as a result ofretaining lugs or support plates that have broken loose, causingthe pressure parts to fret during operation.

“Compared to South African boilers where fly ash erosion andsootblower erosion are large contributors to tube failures, thecoal used by Paiton has a far lower fly ash content compared toSouth African coal. This means that less sootblowing is requiredon the superheater, economiser and reheater elements, whichdecreases tube material loss rates considerably due to lesssootblowing. The calorific value of the Indonesian coal is higherthan South African coal, with the result being that coalconsumption is less in their boilers to produce the same amountof heat,” explains Fourie.

The humid climate and close proximity of the Paiton powerstation to the ocean proved to be challenging for the inspectionteam, noted Skyriders’ rope access team leader Progress Malang."The close proximity to the ocean results in a large amount ofcorrosion that has to be dealt with on a regular basis, while thehigh humidity is physically draining. These challenges were,however, overcome thanks to the in-depth experience andcommitment from the entire team."

Although the language barrier also had an impact on effectivecommunication, Malang points out that this bridge was gappedwith the assistance of a translator, in addition to two Indonesianinspection assistants. Skyriders and Carab Tekniva have formed aunique partnership that has provided value-added services tovarious power generation projects worldwide for more than nineyears, and Zinn is confident of the potential future outlook forthe partnership moving forward.

"Skyriders and Carab Tekniva have proven capabilities thathave resulted in both companies being commissioned toundertake regular inspection and maintenance services forprojects across Africa and Asia. The economic boom taking placein both these regions has resulted in the demand for moreenergy, and ultimately more power plants. Having established anunrivalled track record in this industry, I am optimistic ofachieving measurable growth in the long term future," heconcluded.

African Review of Business and Technology - September 2013 www.africanreview.com

Paiton power station structural steel

Paiton power station, Probolinggo, Indonesia

Skyriders technician working on the Paiton smokestack

Aerial view from Paiton power station smoke stack

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126 African Review of Business and Technology - September 2013

A Healthy Workplace Project introduced toSouth Africa has been designed to educate andencourage employers to help their staff reducethe risk of cross contamination of germs intypical office hot spots such as desks,boardrooms, reception canteens and other hightraffic areas, through a simple wash, wipe andsanitise protocol that enhances hand hygienein the workplace. Now, due to the fact thathospitals are far more specialised working areaswith greater exposure to germs and bacteria,KCP has developed a custom-made HealthyHospitals Project. KCP South Africa end-usermanager Nthato Malope said, "Patientsecondary infections is a growing problemwithin South African hospitals, usually as a resultof unhygienic practises and alarmingly poorpersonal hygiene habits. The issue of patientinfections in health care facilities is a growingscourge and is very unfortunate, and there aremany alarming statistics coming out from bothstate and private healthcare facilities, where

patients are coming out with more infectionsthan they went in with."Malope added that this type of infection usuallyoccurs when healthcare providers do not takecare of their own personal hygiene and are notfollowing the correct procedures, such aswashing their hands directly before and directlyafter touching patients, and thus are spreadinggerms between patients and puttingthemselves in danger too."The Healthy Hospitals Project is a uniquelySouth African hand hygiene programme andwas designed as a response to the issues ofsecondary infections being spread by healthcareprofessionals to their patients. Kimberly Clarkalready boasts a rich presence in the healthcareindustry in South Africa, both from the surgicalareas as well as from the infection control areas,and has developed strong relationships withinthis industry, which it aims to provide withfurther value added services through this newand exciting initiative," he said.

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SOLUTIONS

Patient secondary infections is a growing problem inAfrican hospitals

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